Report on Sip

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Awareness about systematic

investment plan: A Best

instrument for investment in

mutual fund

(With special reference to

(With special reference to motilal oswal)

motilal oswal)

report SUBMITTED BY: report SUBMITTED BY:

Dipak prajapati

Roll

Roll no. no. – 14 – 14 mba.iimba.ii

report SUBMITTED to; report SUBMITTED to;

Mr.kamlesh K PATEL Mr.kamlesh K PATEL

Summer placement coordinator Summer placement coordinator

S.K.SCHOOL OF BUSINESS MANAGEMENT S.K.SCHOOL OF BUSINESS MANAGEMENT PATAN

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S.K.

SCHOOL OF BUSINESS MANAGEMENT,

HEMCHANDRACH

ARYA

NORTH GUJARAT

UNIVERSITY,

PATAN

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DECLARATION

II, , MMr. r. DiDippaak k PPrarajajappaatti i ddo o hheererebby y ddeeccllaare re ththaat t ththe e pprorojjeecct t rereppoorrt t tititltleedd

“AWA

“AWARENESRENESS S ABOUABOUT T SYSTSYSTEMATIEMATIC C INVESINVESTMENTMENT T PLAN:PLAN:AA INSTRUMENT FOR INVESTMENT IN MUTUAL FUND”

INSTRUMENT FOR INVESTMENT IN MUTUAL FUND” is a genuineis a genuine research work undertaken by me and it has not been published anywhere earlier.

research work undertaken by me and it has not been published anywhere earlier.

Date: 25/7/2009 Date: 25/7/2009 Place: Patan Place: Patan Dipak Prajapati Dipak Prajapati SKSBM, Patan SKSBM, Patan

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PREFACE

It is true that the world outside your cozy home is many a time quite

different from what you have perceived. Similarly, it is possible that the

the

theore

oretic

tical

al kno

knowl

wledg

edge

e acq

acquir

uired

ed in

in the

the cla

classr

ssroo

oom

m may

may dif

differ

fer fro

from

m the

the

practical knowledge.

In order to make an individual aware of the practical implication of

what he has learned. He is enriched with the practical training. I as a

student of M.B.A. got this opportunity to know what is

student of M.B.A. got this opportunity to know what is actually happening

actually happening

in a company. The main areas covered during the training period are:

Marketing department, HR department, Financial department, Customer

care department and Technical department,

I have take

I have taken training at Mo

n training at Motilal Oswal

tilal Oswal Securities Ltd.

Securities Ltd. I have sincer

I have sincerely

ely

acquired all the necessary information for my project report during my

training period. I hope that this

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Acknowledgement



 “Chain of mistakes leads towards failures, chain of failures leads to experience and chain of “Chain of mistakes leads towards failures, chain of failures leads to experience and chain of experience leads to success.” That’s what a life’s path is.

experience leads to success.” That’s what a life’s path is.



 Same is applicable to my research work. I do not claim that I have a complete knowledge of Same is applicable to my research work. I do not claim that I have a complete knowledge of the subject. There are many persons who directly or indirectly helped me during our project. the subject. There are many persons who directly or indirectly helped me during our project.



 I am really thankful to Mr. Vijay Patel a CEO of I am really thankful to Mr. Vijay Patel a CEO of MotilaMotilal Oswal Securities Ltd, Mehsana himl Oswal Securities Ltd, Mehsana him kind co-operation throughout the project.

kind co-operation throughout the project. 

 I would like to also thankful to Mr. Mahesh Makvana and other back office staff and tradingI would like to also thankful to Mr. Mahesh Makvana and other back office staff and trading dealer staff for their continuous support.

dealer staff for their continuous support. 

 I would like to thank with utmost gratitude to Mr. Kamalesh K Patel, the current Proffesor I would like to thank with utmost gratitude to Mr. Kamalesh K Patel, the current Proffesor and Co- ordinator of project and

and Co- ordinator of project and other faculty membeother faculty members for rs for guiding me time to guiding me time to time during thetime during the project.

project. 

 I would like also thankfuI would like also thankful to Mr.Jay Oza l to Mr.Jay Oza they have to providithey have to providing fully Informatng fully Information regardingion regarding Mutual Fund theoretically as well as practically.

Mutual Fund theoretically as well as practically. 

 I am also thankful to Mr. Ajay Patel, Mr. Sanjay Patel, Mr. Jay Pandya and other staff.I am also thankful to Mr. Ajay Patel, Mr. Sanjay Patel, Mr. Jay Pandya and other staff.



 I take a great pleasure in expressing deep sense of gratitude towards him for having given usI take a great pleasure in expressing deep sense of gratitude towards him for having given us opportunity to do a project on market analysis of Motilal Oswal Securities Ltd.

opportunity to do a project on market analysis of Motilal Oswal Securities Ltd.

Executive summary:

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In

In InIndidia, a, SeSecucuriritities es mamarkrket et is is a a vevery ry boboomomining g sesectctoror. . ThTherere e arare e mamany ny plplayayerers- s-( Brokers Or

Sub-( Brokers Or Sub-brokers ) brokers ) comes in this markecomes in this market. They have cut-tt. They have cut-through compehrough competition totition to cover more & more market. They provide different kind of services in mutual fund. So I cover more & more market. They provide different kind of services in mutual fund. So I basically prefer securities market & specially Mutual Fund. I cover following main topic in basically prefer securities market & specially Mutual Fund. I cover following main topic in this project which show all the information of Mutual Fund & Motilal Oswal Securities this project which show all the information of Mutual Fund & Motilal Oswal Securities Limited.

Limited.



 Indian financial systemIndian financial system



 About Indian stock market BSE & NSEAbout Indian stock market BSE & NSE



 Company’s BackgroundCompany’s Background



 Mutual Fund Services Provided by MOSLMutual Fund Services Provided by MOSL



 Discussion about systematic investment plansDiscussion about systematic investment plans



 Questionnair Data Analysis & InterpretationQuestionnair Data Analysis & Interpretation



 Finding & SuggestionFinding & Suggestion



 Testing hypothesisTesting hypothesis

Motilal Oswal Securities Limited is a brand name of in Securities market. It is specially Known Motilal Oswal Securities Limited is a brand name of in Securities market. It is specially Known for its successful research ideas. Mutual fund is basically dependent on research, so I can say for its successful research ideas. Mutual fund is basically dependent on research, so I can say that mutual fund of different AMC’s provided by Motilal Oswal is really very successful and that mutual fund of different AMC’s provided by Motilal Oswal is really very successful and gives more return. Company has gotten “Best Local Brokerage House” by Asia money Pole gives more return. Company has gotten “Best Local Brokerage House” by Asia money Pole 2005.

2005.

I included different kind of AMC’s Mutual fund provided by MOSL & their schemes & I included different kind of AMC’s Mutual fund provided by MOSL & their schemes & features.

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I did a live survey on awareness of Mutual fund with 100 sample size. I included 14 questions in I did a live survey on awareness of Mutual fund with 100 sample size. I included 14 questions in my questioner and found that the

my questioner and found that the market of Mehsana city is very potential for mutual fund. Butmarket of Mehsana city is very potential for mutual fund. But they have not proper information and guideline. I also found that they believe that Mutual fund they have not proper information and guideline. I also found that they believe that Mutual fund is gives more return.

is gives more return.

In mehsana when in the field or survey I note that many people know about In mehsana when in the field or survey I note that many people know about

The

The systematic systematic investment investment plan plan of of mutual mutual fund fund and and they they have have a a good good knowledge aboutknowledge about this instrument there is a big scope for brokers and mutual funds company.

this instrument there is a big scope for brokers and mutual funds company.

I learn lost of things and quality of manager with practical experience. I learn lost of things and quality of manager with practical experience.

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Organization overview

•

Introduction

Mo

Motitilalal l OsOswawal l SeSecucuriritities es LtLtd. d. (M(MOSOSt) t) is is a a leleadadining g rereseseararch ch anandd advisory based stock broking house of India, with a dominant position in both advisory based stock broking house of India, with a dominant position in both

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institutio

institutional equities and nal equities and retail wealth retail wealth managemanagement. Our ment. Our serviceservices s include equities,include equities, derivatives, e-broking, portfolio management, mutual funds, commodities, IPO’s derivatives, e-broking, portfolio management, mutual funds, commodities, IPO’s and depository services.

and depository services.

In March 2006, AQ Research, a firm that analyses the accuracy of a In March 2006, AQ Research, a firm that analyses the accuracy of a broker’s research call, declared Motilal Oswal Securities the best research house broker’s research call, declared Motilal Oswal Securities the best research house

for Indian stocks. for Indian stocks.

Research is the solid foundation on which Motilal Oswal Securities Research is the solid foundation on which Motilal Oswal Securities advice is based. Almost 10% of revenue is invested on equity research and we hire advice is based. Almost 10% of revenue is invested on equity research and we hire and train the best resources to become advisors. At present we have over 35 and train the best resources to become advisors. At present we have over 35 an

analalysysts ts rereseseararchchining g ovover er 15 15 sesectctorors. s. FrFrom om a a fufundndamamenentatal, l, tetechchninicacal l anandd derivatives research perspective; Motilal Oswal's research reports have received derivatives research perspective; Motilal Oswal's research reports have received wide coverage in the media (over a 1000 mentions last year).

wide coverage in the media (over a 1000 mentions last year).

Motilal Oswal Securities has witnessed rapid organic growth due to Motilal Oswal Securities has witnessed rapid organic growth due to favorable market conditions as well as efforts put in by the company itself. FY05 favorable market conditions as well as efforts put in by the company itself. FY05 an

and d FY0FY06 6 sasaw w the the cocompampany ny grogrow w ininororgaganicnicallally y thrthrouough gh acacququisiisitiotion n of of fifiveve significant regional broking firms from Andhra Pradesh, Karnataka, Kerala, Gujrat significant regional broking firms from Andhra Pradesh, Karnataka, Kerala, Gujrat and

and UP. UP. OveOver r a a periperiod od of of time time many many more more regregionaional l brobrokinking g firmfirms s may may bebe acquired to gain solid footing in various regions of India.

acquired to gain solid footing in various regions of India.

The company has also established a base in the UAE to address the needs of the The company has also established a base in the UAE to address the needs of the overseas audience.

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Motilal Oswal Securities Ltd. was founded in 1987 as a small Motilal Oswal Securities Ltd. was founded in 1987 as a small sub- broking unit, with just two people running the show. Focus on broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, attitude, ethical and transparent business practices, respect for professionalism, rese

researcarch-bah-based sed valuvalue e inveinvestinsting g and and implimplemenementatitation on of of cuttcuttinging-edg-edge e techtechnolonologygy have enabled us to blossom into an almost two thousand-member team.

have enabled us to blossom into an almost two thousand-member team.

Our institutional business unit has relationships with almost all leading foreign Our institutional business unit has relationships with almost all leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report we were rated as one of the top-10 brokers in terms of business media report we were rated as one of the top-10 brokers in terms of business transacted for FIIs

transacted for FIIs

The retail business unit provides equity investment solutions to more The retail business unit provides equity investment solutions to more than 1,75,000 investors through over 1000 outlets spanning 375 cities and 24 than 1,75,000 investors through over 1000 outlets spanning 375 cities and 24 states. These solutions are provided by a force of over 2000 employees and over states. These solutions are provided by a force of over 2000 employees and over 10

1000 00 BuBusinsiness ess AsAssosociaciatestes. . We We proprovivide de adadvicvice-be-basased ed brbrokoking ing (e(eququitiities es andand de

derivrivatativeives), s), poportfrtfololio io manmanagagememenent t seservrviceices s (PM(PMS)S), , e-Be-Brorokinking, g, dedepopositsitororyy services, commodities trading, IPO and mutual fund investment advisory services. services, commodities trading, IPO and mutual fund investment advisory services.

Our Value PMS Scheme has demonstrated very strong performance Our Value PMS Scheme has demonstrated very strong performance backed by our single-minded focus on research-based value

backed by our single-minded focus on research-based value

investing and the experience and management of Mr. Raamdeo Agrawal – an investing and the experience and management of Mr. Raamdeo Agrawal – an acknowledged expert in value investing.

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Our unique Wealth Creation Study, authored by Mr. Raamdeo Agrawal, Our unique Wealth Creation Study, authored by Mr. Raamdeo Agrawal, Managin

Managing Director, is g Director, is now in now in its eleventh year. Investors keenly await this its eleventh year. Investors keenly await this annualannual study for the wealth of information it has on how companies created wealth during study for the wealth of information it has on how companies created wealth during the preceding five years.

the preceding five years.

The organization finds its strength in its team of young, talented and The organization finds its strength in its team of young, talented and confident individuals. Qualified professionals carry out different functions under confident individuals. Qualified professionals carry out different functions under th

the e abable le leleadaderershship ip of of itits s prpromomototerers, s, MrMr. . MoMotitilalal l OsOswawal l anand d MrMr. . RaRaamamdedeoo Agrawal. Stringent employee selection process, focus on continuous training and Agrawal. Stringent employee selection process, focus on continuous training and adoption of best management practices drive the quest to achieving our Core adoption of best management practices drive the quest to achieving our Core Purpose and Values.

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•

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MOSt Guiding Principles & Core Values

:-Customer interest is paramount Customer interest is paramount

Ethical and transparent business practices Ethical and transparent business practices

Respect for professionals, associates and business partners Respect for professionals, associates and business partners Research based value investing

Research based value investing

Cutting edge technology to ensure world-class customer service Cutting edge technology to ensure world-class customer service

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MOSt History & Milestones MOSt History & Milestones

The story of Motilal Oswal Securities Ltd (MOSt) goes back many The story of Motilal Oswal Securities Ltd (MOSt) goes back many years, when Mr. Motilal Oswal and Mr. Raamdeo Agrawal met each other as years, when Mr. Motilal Oswal and Mr. Raamdeo Agrawal met each other as students in a Mumbai suburban hostel in the early eighties. Both the young chartered students in a Mumbai suburban hostel in the early eighties. Both the young chartered accountants hailing from a rural & an unpretentious background had a common accountants hailing from a rural & an unpretentious background had a common dream viz 'to build a professional organization with strong value systems, to provide dream viz 'to build a professional organization with strong value systems, to provide reliable & honest investment advice to investors'. Thus was born their first enterprise reliable & honest investment advice to investors'. Thus was born their first enterprise called "Prudential Portfolio Services" in 1987.

called "Prudential Portfolio Services" in 1987.

2009

::

--Motilal Oswal Securities Ltd. enters 'Limca Book of Records' for Motilal Oswal Securities Ltd. enters 'Limca Book of Records' for creating India's largest dealing room in Mumbai MOSL was 'Rated No.1 – Best creating India's largest dealing room in Mumbai MOSL was 'Rated No.1 – Best recommen

recommendations Mid & Small Caps' and dations Mid & Small Caps' and won awards in 3 won awards in 3 out of 4 out of 4 categoricategories at thees at the Starmine India Broker Rankings 2009 from Thomson Reuters

Starmine India Broker Rankings 2009 from Thomson Reuters

2008 2008

:-MOSL creates one of India's largest Equity Dealing & Advisory rooms, MOSL creates one of India's largest Equity Dealing & Advisory rooms, sp

spreread ad ovover er 2626,0,000 00 sq sq ft ft in in MaMalalad, d, MuMumbmbai ai MoMotitilalal l OsOswawal'l's s InIndidia a BuBusisinenessss Excellence Fund raised

Excellence Fund raised USD 125 million, 25% USD 125 million, 25% higher higher than the initial target than the initial target of USDof USD 100 million D & B survey rates MOSL as India's top Broking House in terms of 100 million D & B survey rates MOSL as India's top Broking House in terms of

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total number of trading terminals MOSL alliance with IDBI Bank to offer Online total number of trading terminals MOSL alliance with IDBI Bank to offer Online Trading Servic

Trading Services Asia es Asia Money Brokers poll 2007 rates Motilal Money Brokers poll 2007 rates Motilal Oswal Securities Ltd.Oswal Securities Ltd. - Best Overall Country Research - Local Brokerage

- Best Overall Country Research - Local Brokerage

2007 2007

:-The Strategic partnership between MOSL and SBI The Strategic partnership between MOSL and SBI - EZtrade

- EZtrade - reache- reaches an imps an important ortant milestomilestone i.e. In ne i.e. In less thaless than a yean a year it has r it has managemanagedd to sign up more tha

to sign up more than n 10,000 cus10,000 customers Startomers Starts Knowledge Fts Knowledge First campaigirst campaign Motilaln Motilal Oswal was percieved as the most Research driven stock trading player - Starcom Oswal was percieved as the most Research driven stock trading player - Starcom Mediavest Survey Introduces a separate brand for Private Client Group - Purple Mediavest Survey Introduces a separate brand for Private Client Group - Purple Motilal Oswal Commodities Broker Pvt Ltd (MOCBPL) bagges Globoil India's Motilal Oswal Commodities Broker Pvt Ltd (MOCBPL) bagges Globoil India's prestigious 'Outstanding Commodity Broking House 2007' Award Motilal Oswal prestigious 'Outstanding Commodity Broking House 2007' Award Motilal Oswal

Financial Services ltd. gets listed on the BSE & NSE. Financial Services ltd. gets listed on the BSE & NSE.

Mr

Mr. . MoMotitilalal l OsOswawal l - - ChChaiairmrman an anand d MaMananagiging ng DiDirerectctor or hahas s bebeenen appointed as a member of the Managing Committee of Indian Merchant Chambers. appointed as a member of the Managing Committee of Indian Merchant Chambers. Motilal Oswal Financial Services Ltd files RHP with SEBI for an IPO Motilal Motilal Oswal Financial Services Ltd files RHP with SEBI for an IPO Motilal Oswal Financial Services Ltd. features as a case study in Harvard Business School Oswal Financial Services Ltd. features as a case study in Harvard Business School Motilal Oswal Financial Services Ltd ties up with Punjab National Bank to offer Motilal Oswal Financial Services Ltd ties up with Punjab National Bank to offer online trading to its customers.

online trading to its customers.

2006 2006

:-•• Organizes the second India Conference with Bear Stearns New York featuringOrganizes the second India Conference with Bear Stearns New York featuring di

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manage

management of ment of Indian companies in Indian companies in bankingbanking, , technolotechnology, healthcare, consumer, oilgy, healthcare, consumer, oil and gas, infrastructure and other key sectors.

and gas, infrastructure and other key sectors.

• Launches the India Business Excellence Fund (IBEF), a US$ 100 mn India focused • Launches the India Business Excellence Fund (IBEF), a US$ 100 mn India focused Private Equity Fund.

Private Equity Fund.

• Investment Banking business advises Aban in their majority controlling stake of • Investment Banking business advises Aban in their majority controlling stake of Sinvest ASA – one of the largest investment banking deals of 2006.

Sinvest ASA – one of the largest investment banking deals of 2006.

• Places 9.29% with two leading private equity investors - New Vernon Private • Places 9.29% with two leading private equity investors - New Vernon Private Equity Limited and Bessemer Venture Partners.

Equity Limited and Bessemer Venture Partners.

• Issues 14% of company’s equity to employees as ESOPs. • Issues 14% of company’s equity to employees as ESOPs. • Acquires a

• Acquires a leading south Indian brokeraleading south Indian brokerage firm ge firm - Peninsular Capital Markets. Also- Peninsular Capital Markets. Also acquires 3 more brokerage firms in UP and Gujarat.

acquires 3 more brokerage firms in UP and Gujarat.

• Enters Private Equity and Investment Banking businesses. • Enters Private Equity and Investment Banking businesses.

• Value PMS gives 390% returns to its investors between Feb 2003 and March 2006. • Value PMS gives 390% returns to its investors between Feb 2003 and March 2006. • Relaunches its e-Broking service through a nationwide campaign. First • Relaunches its e-Broking service through a nationwide campaign. First advice- based online trading proposition in the Indian markets.

based online trading proposition in the Indian markets.

• Another milestone in distribution – over 1000 outlets, over 375 cities, serving over • Another milestone in distribution – over 1000 outlets, over 375 cities, serving over 1,75,000 customers.

1,75,000 customers.

• Employee base crosses 2000 and Business Associate base crosses 1000. • Employee base crosses 2000 and Business Associate base crosses 1000.

2005 2005

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:-•• Organises the first India Conference with Bear Stearns in New York. India’sOrganises the first India Conference with Bear Stearns in New York. India’s largest such conference of its kind in the US.

largest such conference of its kind in the US. •

• AsiAsia a monmoney ey BroBrokerkers s PoPoll ll 202005 05 ratrates es MoMotiltilal al OswOswal al SeSecucuritrities ies - - BeBest st LoLocacall Brokerage, MOSt Independent Research House, Best in Sales and Service.

Brokerage, MOSt Independent Research House, Best in Sales and Service. •

• LaLaununchches es twtwo o nenew w PoPortrtfofolilio o MaMananagegemement nt ScSchehememes s - - VaValulue e HeHedgdgining g fofor r derivatives and Discover Value for the Rs. 5 lakh to Rs. 50 lakh category.

derivatives and Discover Value for the Rs. 5 lakh to Rs. 50 lakh category.

• Acquires local brokerage Gayatri Capitals from Andhra Pradesh and Varghese • Acquires local brokerage Gayatri Capitals from Andhra Pradesh and Varghese from Karnataka.

from Karnataka.

• Deepest distribution in the stock broking segment with 700 outlets in 320 cities and • Deepest distribution in the stock broking segment with 700 outlets in 320 cities and 1,20,000 customers.

1,20,000 customers.

2004 2004

:-•• Presence expanded to 270 outlets in 150 cities and 20 states.Presence expanded to 270 outlets in 150 cities and 20 states.

• Value PMS delivers a whopping 160% post tax returns for the period ended April • Value PMS delivers a whopping 160% post tax returns for the period ended April • Bulls Eye PMS - A momentum based PMS launched.

• Bulls Eye PMS - A momentum based PMS launched. • Start of the Solid Research Solid Advice campaign. • Start of the Solid Research Solid Advice campaign.

2003 2003

:-•• Enters the mutual fund and IPO distribution business.Enters the mutual fund and IPO distribution business.

• MOSt Portfolio Management Services launched with Mr. Raamdeo Agrawal as the • MOSt Portfolio Management Services launched with Mr. Raamdeo Agrawal as the Portfolio Manager. Uniquely structured performance related fees.

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•

• InInququirire e teteam am is is susuccccesessfsful ul in in cacaptptururining g ththe e upuptrtrenend d in in BaBanknkining, g, AuAuto to anandd Infrastructure sectors.

Infrastructure sectors.

• Received the Asia Money award for the Best Overall Domestic Research • Received the Asia Money award for the Best Overall Domestic Research House-Mega funds.

Mega funds.

• Crossed 15,000 Depository accounts. • Crossed 15,000 Depository accounts.

• 9 own branches setup at 7 cities to provide Equity Advisory Services. More in the • 9 own branches setup at 7 cities to provide Equity Advisory Services. More in the pipeline.

pipeline.

• 150 outlets in 110 cities across 18 states & one Union Territory in India manned by • 150 outlets in 110 cities across 18 states & one Union Territory in India manned by 1000 people servicing over 15,000 Retail and Institutional Investors.

1000 people servicing over 15,000 Retail and Institutional Investors.

2002 2002

:-•• Mr. Navin Agarwal, Head of Equity Research & Institutional sales, inducted in theMr. Navin Agarwal, Head of Equity Research & Institutional sales, inducted in the Board of Directors.

Board of Directors. •

• MOMOSt St coconsnsololididatates es itits s rretetaiail l opopereratatioions ns & & upupgrgradades es itits s IT IT / / BaBack ck OfOffificece infrastructure to cater to its growing network of branches, Franchisees and Channel infrastructure to cater to its growing network of branches, Franchisees and Channel Partners.

Partners.

• Received the Asia Money Award - 2nd Best among Indian Brokerage firms. • Received the Asia Money Award - 2nd Best among Indian Brokerage firms. • Retail network completes coverage of 100 cities in India.

• Retail network completes coverage of 100 cities in India. • Direct servicing of HNI clients is initiated.

• Direct servicing of HNI clients is initiated. • Crosses 10,000 Depository accounts.

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2001 2001

:-•• Legendary marketing guru Shunu Sen’s services taken to revitalise retail marketingLegendary marketing guru Shunu Sen’s services taken to revitalise retail marketing strategy and branding efforts.

strategy and branding efforts.

• Starts offering Derivatives products and advisory services on both BSE as well as • Starts offering Derivatives products and advisory services on both BSE as well as NSE.

NSE.

2000 2000

:-•• Received the Asia Money award for the Best Domestic Equity house.Received the Asia Money award for the Best Domestic Equity house.

• Both Mr. Motilal Oswal and Mr. Raamdeo Agrawal receive Rashtriya Samman • Both Mr. Motilal Oswal and Mr. Raamdeo Agrawal receive Rashtriya Samman Patra from Central Board of Direct Taxes for being amongst the top 50 tax payers in Patra from Central Board of Direct Taxes for being amongst the top 50 tax payers in India from FY94-FY98.

India from FY94-FY98.

• Acquires its 100th Franchisee / Channel Partner and emerges as a leading player in • Acquires its 100th Franchisee / Channel Partner and emerges as a leading player in the Indian Broking Sector.

the Indian Broking Sector. •

• BecBecomomes es a a DeDepopositsitory ory PaPartirticicipapant nt of of CenCentratral l DepDeposositoitory ry SeServrviceices s LimLimiteitedd (CDSIL).

(CDSIL).

1999 1999

:-•

• Mr. Mr. RaamRaamdeo deo AgrAgrawal awal stastarts rts atteattendinnding g legelegendandary ry billbillionaionaire ire invinvestoestor r WarWarrenren Buffett’s Annual General Meetings of Berkshire Hathway Inc. He still continues to Buffett’s Annual General Meetings of Berkshire Hathway Inc. He still continues to attend it every year.

attend it every year. •

• ThThe e WeWealalth th CreCreatation ion StuStudy dy stastarterted d in in 191996 96 cuculmilminanatetes s ininto to WeWealalth th CreCreatiationon Seminar and Awards function in 1998.

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• First Stock Broking house to brand its services as a research and advice based • First Stock Broking house to brand its services as a research and advice based broker.

broker.

• “Wealth Creation” Campaign started. • “Wealth Creation” Campaign started.

• www.MotilalOswal.com launched. First broking house in India to go on the web. • www.MotilalOswal.com launched. First broking house in India to go on the web. •

• BecoBecomes mes a a DepoDepositository ry PartParticipicipant ant of of NatiNational onal SecSecuriturities ies DepoDepositository ry LimiLimitedted (NSDL).

(NSDL).

• Inducts Mr. Ivan Mathias, former country head of Watson Wyatt Worldwide, on its • Inducts Mr. Ivan Mathias, former country head of Watson Wyatt Worldwide, on its Board to Directors to shape HR initiatives.

Board to Directors to shape HR initiatives.

1998 1998

:-•• Mr. Motilal Oswal joins the Governing Board of The Stock Exchange, Mumbai.Mr. Motilal Oswal joins the Governing Board of The Stock Exchange, Mumbai.

1996 1996

:-•• Wealth Creation Study started. First of its kind study initiated to identify biggestWealth Creation Study started. First of its kind study initiated to identify biggest and fastest wealth creating companies in Indian Stock markets.

and fastest wealth creating companies in Indian Stock markets.

1995 1995 :-• “

• “Motilal Oswal” gets incorporated as Motilal Oswal Securities Ltd.Motilal Oswal” gets incorporated as Motilal Oswal Securities Ltd.

1994 1994

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:-•• MOSt acquires NSE Membership and plans for major expansion of its retailMOSt acquires NSE Membership and plans for major expansion of its retail network.

network.

• Inquire (Indian Equity Research) is formally created at a 2500 sq. ft office in South • Inquire (Indian Equity Research) is formally created at a 2500 sq. ft office in South Mumbai with bigger and better quality infrastructure than the corporate office. Since Mumbai with bigger and better quality infrastructure than the corporate office. Since then nearly 20% of revenue is allocated to research. First Domestic Stock broking then nearly 20% of revenue is allocated to research. First Domestic Stock broking house to have such a strong Research focus.

house to have such a strong Research focus.

• ”Motilal Oswal” enters Institutional Broking business. • ”Motilal Oswal” enters Institutional Broking business.

1990 1990

:-•• AfAfteter r jujust st ththreree e yeyearars s in in ththe e bubusisinenessss, , ”M”Mototililal al OsOswawal” l” is is foformrmed ed ththrorougughh acquisition of membership on The Bombay Stock Exchange (BSE). Three more acquisition of membership on The Bombay Stock Exchange (BSE). Three more memberships taken in later years.

memberships taken in later years.

•

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Mr. Motilal Oswal

Chairman and Managing Director

Mr. Motilal Oswal is the promoter of Motilal Oswal Securities Ltd. He is an

membe

member of r of InstitutInstitute of e of CharteChartered Accountants of India and started the red Accountants of India and started the business along with the co-business along with the

co- p

promromoteoter r MrMr. . RaRaamamdeo deo AgaAgarwrwal al in in 1981987.B7.Busiusineness ss AdAdmimininistrstratiation on is is hihis s forforte, te, HoHonesnestyty,,

transparency and client goodwill form the core of his business practice.

“Service is required in everything, in research, in execution and in settlement. It is

going to be the key to survival. If you give good service and value to your clients, it ill translate

into good business.”

This has been a

This has been a strong belief of Mr. Motilal Oswal and he has not strong belief of Mr. Motilal Oswal and he has not only practiceonly practiced itd it

himsel

himself but f but also made efforts to also made efforts to inculcatinculcate similar values in e similar values in the employees of the the employees of the organizatorganization. Heion. He

had been elected as a Director of BSE and joined its governing board in 1998. He is currently a

member of various committees of CDSIL and SEBI

member of various committees of CDSIL and SEBI. He is currently a member of the NSE. He is currently a member of the NSE committee for F&O.

committee for F&O.

Mr. Raamdeo Agrawal

Joint Managing Director

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Mr. Raamdeo Agrawal is the co-promoter of Motilal Oswal Securities Ltd. A Mr. Raamdeo Agrawal is the co-promoter of Motilal Oswal Securities Ltd. A membe

member of r of the Institute of Chartered Accountantthe Institute of Chartered Accountants of s of India & an India & an equity research stalwequity research stalwart, he is art, he is thethe man

man behibehind nd the the strostrong ng reseresearch arch capcapabilability ity at at MOSMOSt. He t. He is is resprespectected ed by by all all in in the the resresearcearch h andand broking industry for his valuable insights on issues related to equity research. His firm belief in broking industry for his valuable insights on issues related to equity research. His firm belief in “Value-Investing”, as practiced by the legendary Warren Buffett and Charlie Munger, forms the “Value-Investing”, as practiced by the legendary Warren Buffett and Charlie Munger, forms the core of MOSt investment philosophy. He is a member of the National Committee on Capital core of MOSt investment philosophy. He is a member of the National Committee on Capital Markets of the Confederation of Indian Industry.

Markets of the Confederation of Indian Industry.

H

He e aauutthhoorrs s tthhe e aannnnuuaal l MMoottiillaal l OOsswwaal l WWeeaalltth h CrreeaattiioC on n SSttuuddy y .. He has also featured on Wizards of Dalal Street on CNBC TV18 and is much sought after by the He has also featured on Wizards of Dalal Street on CNBC TV18 and is much sought after by the media for his expert views on the markets.

media for his expert views on the markets.

Mr. Navin Agrawal

Director

Mr. Navin Agarwal is on the Board of Motilal Oswal Financial Services Limited. He is a Mr. Navin Agarwal is on the Board of Motilal Oswal Financial Services Limited. He is a member of Institute of Chartered Accountants of India, Institute of Cost & Works Accountants member of Institute of Chartered Accountants of India, Institute of Cost & Works Accountants o

of f IInnddiiaa, , aannd d IInnssttiittuutte e oof f CCoommppaannyySSeeccrreettaarriieessooffIInnddiiaa..

He heads the Institutional Broking business and has been

He heads the Institutional Broking business and has been instruminstrumental in building aental in building a market leading position with

market leading position with domestidomestic c and foreign and foreign instituinstitutional investors. Under his tional investors. Under his leadershleadership,ip, the firm has been rated as The Best Indian Brokerage House by Asia money 2005. Leveraging the firm has been rated as The Best Indian Brokerage House by Asia money 2005. Leveraging on the dominant positioning in institutional business, he has also been instrumental in building on the dominant positioning in institutional business, he has also been instrumental in building

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an Institutional Derivatives business when derivative products were introduced in the Indian an Institutional Derivatives business when derivative products were introduced in the Indian markets. Here again, a market leading position has been established by MOSL.

markets. Here again, a market leading position has been established by MOSL.

As a member of the board, Mr. Agarwal believes in leveraging the core strengths of As a member of the board, Mr. Agarwal believes in leveraging the core strengths of a strong brand, a vast distribution network and unmatched research capabilities and has been a strong brand, a vast distribution network and unmatched research capabilities and has been closely involved in the creation of the investment banking and private equity businesses. He closely involved in the creation of the investment banking and private equity businesses. He believes that the core strengths of the firm can be further leveraged to establish itself as the most believes that the core strengths of the firm can be further leveraged to establish itself as the most

p

prreeffeerrrreed d IInnddiiaan n ffiinnaanncciiaal l sseerrvviiccees s oorrggaanniissaattiioonn.. He has recently authored ‘Money Monarchs’ – a book on the stock markets.

He has recently authored ‘Money Monarchs’ – a book on the stock markets.

Management Team

MO

MOSt St mamananagegemement nt teteam am is is reregugulalarlrly y enengagageged d in in fifindndining g waways ys to to imimprprovovee operational efficiencies and customer satisfaction.

operational efficiencies and customer satisfaction.

You will find CAs, CFAs, ICWAs, CSs, MBAs and IT professionals managing You will find CAs, CFAs, ICWAs, CSs, MBAs and IT professionals managing crucial functions, to bring you best products and services - from research & advice to trade crucial functions, to bring you best products and services - from research & advice to trade execution & settlement. At MOSt we practice meritocracy and each of the team members is execution & settlement. At MOSt we practice meritocracy and each of the team members is provided extensive training.

provided extensive training.

Training & Manpower Development

MOSt conducts various training and development programs regularly to enhance

the capabilities of its team. As much as 5% of the salary bill is spent on such programs, which is

amongst the highest for a broking organization in India. MOSt is truly a learning organization with

lead being taken by

lead being taken by the Directors, who regularly participatthe Directors, who regularly participate in e in top management learning programstop management learning programs

like Strategic Management Program at Indian School of Business, Hyderabad, Strategy Summits

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wi

with th ManManageagemement nt GurGurus us lilike ke ToTom m PePeteters rs and and DrDr. . LeLestester r ThThururow, ow, DeDean, an, SlSloan oan ScSchoohool l of of

Management, (MIT) and Brand Management Seminar by Al Ries etc.

MOSt Wealth Creation Study and Awards function

MOSt Wealth Creation Study and Awards function has become a key event in the

Indian Capital Market. The Wealth Creation Study, initiated, in 1996 is widely appreciated in the

investment community and the Indian Corporate Sector. This annual study identifies the fastest

and the biggest wealth creators in the

and the biggest wealth creators in the Indian marketIndian markets over s over the last 5 the last 5 years and felicitatyears and felicitates them at es them at aa

public event, attended by several leading investors and equity specialists. The 9th Wealth Creation

Awards function was held at the Grand Hyatt, Mumbai on January, 2005.

SERVICES PROVIDING BY MOSL

Motilal Oswal Securities Ltd. providing differ

Motilal Oswal Securities Ltd. providing different kind of ent kind of serviceservices to s to its clients. theyits clients. they are as followed

are as followed



 Advised based Broking on BSE / NSE ( Cash & Derivatives )Advised based Broking on BSE / NSE ( Cash & Derivatives )



 Portfolio Management Services ( PMS )Portfolio Management Services ( PMS )



 Internet Trading ( E Broking )Internet Trading ( E Broking )



 Timely & Researched based Investment and Trading IdeasTimely & Researched based Investment and Trading Ideas



 Depository Services ( MODES )Depository Services ( MODES )



 Advised based Mutual FundAdvised based Mutual Fund



 CommoditiesCommodities



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•

Advise Based Broking

Motilal Oswal Securities Ltd. providing advice based equity trading to

its clients. MOSL providing NSE, BSE and F & O trading facility to its customers. It

provides mainly b

provides mainly broking premier Brokerage roking premier Brokerage Service based Service based on fundamental on fundamental research.research.

Deri

Derivativatives ves (Fu(Futuretures s & & OptiOptionsons) ) are are ideaideal l instinstrumeruments nts to to protprotect ect youyour r portportfolifolioo ag

agaiainsnst t risrisk. k. YoYou u cacan n tratrade de witwith h inindedex x momovevemenments, ts, hehedgdge e anand d levleveraerage ge yoyour ur portfolio by limiting risk but keeping your upside unlimited.

portfolio by limiting risk but keeping your upside unlimited.

Its research based advice is very successful in market. They use Orian Its research based advice is very successful in market. They use Orian software for trading, and get connectivity through V-sat facility. They are used Bharti software for trading, and get connectivity through V-sat facility. They are used Bharti Televenture’s V-sat connection. MOSL have NSE, BSE registration

Televenture’s V-sat connection. MOSL have NSE, BSE registration..

•

Depository Services

In the times of T+2

In the times of T+2 having a demat account linked to your trading having a demat account linked to your trading account becomes reallyaccount becomes really convenient. The non-trading members also can avail of our Depository services. You convenient. The non-trading members also can avail of our Depository services. You receive regular account reports and an efficient service at all times. MOSt is a member of receive regular account reports and an efficient service at all times. MOSt is a member of both NSDL and CDSL and the service is available at all our outlets in India

both NSDL and CDSL and the service is available at all our outlets in India..

Depository Service Provided By MODES

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Account Opening Account Opening Dematerialization Dematerialization Re materialization Re materialization Account Transfer Account Transfer Transmission Transmission Nomination Nomination

Pledging And Hypothecation Pledging And Hypothecation Account Closures

Account Closures

•

.

MOSt E-Broking

There is nothing more exhilarating , more daring and more rewarding than making

the right trade at the right time. Welcome to our E-Broking platform which brings you a world

class experience of online investing. Buying and selling of shares is now just a click

class experience of online investing. Buying and selling of shares is now just a click awayaway..

A

A mulmultittitude ude of of resoresourceurces s like live like live quotquotes, es, charcharts, ts, reseresearcharch, , adviadvice ce and and onlionlinene

assistance helps you take informed decisions. Our robust risk management system and 128 bit

encryption gives you a complete security about money, shares, and transaction documents.

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•

MOStPMS

Motilal Oswal Securities runs three types of PMS schemes meant for investors with different Motilal Oswal Securities runs three types of PMS schemes meant for investors with different investment preferences. While our values PMS scheme is meant for investors with long-term investment preferences. While our values PMS scheme is meant for investors with long-term interest in the market, our

interest in the market, our Bull’s Eye PMSBull’s Eye PMS scheme is meant for investors who want to takescheme is meant for investors who want to take moderate risk and generate healthy returns from the equity market from time to time. Discover moderate risk and generate healthy returns from the equity market from time to time. Discover Value PMS Scheme is create wealth for investors, which comes through Consistent over long Value PMS Scheme is create wealth for investors, which comes through Consistent over long term.

term.

Its clients, investor community and some of the most prestigious publications like Its clients, investor community and some of the most prestigious publications like Asia money and Institutional Investors amongst others acknowledge Motilal Oswal Securities as Asia money and Institutional Investors amongst others acknowledge Motilal Oswal Securities as one of the

one of the leading research based equity brokinleading research based equity broking house in g house in India. With about 15% of our India. With about 15% of our revenuerevenue in

invesvesteted d in in our our resreseaearcrch h cacapabpabililitity, y, we we hahave ve somsome e of of ththe e shasharperpest st reresousourcrces es ththat at proproducducee excellent research insights on companies. The same is then passed to our highly rated portfolio excellent research insights on companies. The same is then passed to our highly rated portfolio management and investment advisory team that works on its personalized investment strategy. management and investment advisory team that works on its personalized investment strategy.

•

• MOSt CommoditiesMOSt Commodities

Investors looking for a fast-paced dynamic market with excellent liquidity can NOW trade in Investors looking for a fast-paced dynamic market with excellent liquidity can NOW trade in Commodity Futures Market. The Commodity Exchange is a Public Market forum and anyone Commodity Futures Market. The Commodity Exchange is a Public Market forum and anyone can play in these vital Commodity Markets. Motilal Oswal Commodities Broker (P) Ltd can can play in these vital Commodity Markets. Motilal Oswal Commodities Broker (P) Ltd can certain

certainly be ly be your point of entry to your point of entry to the Commodity Marketthe Commodity Markets. MOCB is a s. MOCB is a registerregistered trading-cum-ed trading-cum-clearing member of NCDEX. Participation is not difficult. All you need

clearing member of NCDEX. Participation is not difficult. All you need

is to open an account with us. MOCB shall offer you advice on investments & strategy, provide is to open an account with us. MOCB shall offer you advice on investments & strategy, provide research and contact you regularly with trading advice.

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•

• MOSt MutualMOSt Mutual

To enable clients

To enable clients diversifdiversify their y their investminvestments Motilal Oswal Securities Limited has ents Motilal Oswal Securities Limited has added MOStadded MOSt mutual team is in close contact with

mutual team is in close contact with various fund houses and another product in its various fund houses and another product in its bouquet andbouquet and will now offer mutual funds.

will now offer mutual funds.

MOSt mutual team is in close contact with various fund houses and interactive sessions are held MOSt mutual team is in close contact with various fund houses and interactive sessions are held with fund managers. We will provide you regular updates on products and

with fund managers. We will provide you regular updates on products and new schemes. Beingnew schemes. Being one of the stock brokers we keep a close watch on the markets. Based on your risk appetite, one of the stock brokers we keep a close watch on the markets. Based on your risk appetite, investment horizon and your existing investments we will suggest investment in mutual fund investment horizon and your existing investments we will suggest investment in mutual fund schemes, whic

schemes, which are h are best, suited to you. The best, suited to you. The fund and scheme selection is done fund and scheme selection is done after an in-depthafter an in-depth research on parameters like risk adjusted returns, rolling returns, volatility and portfolio churn. research on parameters like risk adjusted returns, rolling returns, volatility and portfolio churn. We advise a mature and long-term view on mutual fund investments.

We advise a mature and long-term view on mutual fund investments.

MOSt Mut

MOSt Mutual doesn't stual doesn't stop at just that, we go a steop at just that, we go a step further to ensurp further to ensure that e that you getyou get the right NAV, your dividends are credited on time and your account statements are regularly the right NAV, your dividends are credited on time and your account statements are regularly received. You will also receive our monthly newsletter on Mutual Funds "MOSt Mutual".

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•

ABOUT MUTUAL FUND.

Introduction

A Mutual Fund is a

A Mutual Fund is a trust that pools the savings of trust that pools the savings of a number of investors who sharea number of investors who share a common financial goal. The

a common financial goal. The money thus collected is money thus collected is then invested in then invested in capital market instrumecapital market instrumentsnts such as shares, debentures and other

such as shares, debentures and other securitisecurities. The income earned through these es. The income earned through these investminvestments andents and the capital apprecia

the capital appreciation realised are shared by its unit tion realised are shared by its unit holders in proportion to the number of unitsholders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

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Mutual Fund Operation Flow Chart.

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:

organisational set up of a mutual fund:

Organisation of a Mutual Fund

ADVANTAGES OF MUTUAL FUNDS ADVANTAGES OF MUTUAL FUNDS

The advantages of investing in a Mutual Fund are: The advantages of investing in a Mutual Fund are:

Professional Management Professional Management

Diversification Diversification

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Convenient Administration Convenient Administration Return Potential Return Potential Low Costs Low Costs Liquidity Liquidity Transparency Transparency Flexibility Flexibility Choice of schemes Choice of schemes Tax benefits Tax benefits Well regulated Well regulated

··

How you can invest in a mutual fund

There are two ways in which you can invest in a mutual fund. There are two ways in which you can invest in a mutual fund. 1

1..

A one-time outright payment

If you invest directly in the fund, you just hand over the cheque and you If you invest directly in the fund, you just hand over the cheque and you get your fund units depending on the value of the units on that particular get your fund units depending on the value of the units on that particular day.

day.

Let's say you want to invest Rs 10,000. All you have to do is approach the Let's say you want to invest Rs 10,000. All you have to do is approach the fund and buy units worth Rs 10,000. There will be two factors determining fund and buy units worth Rs 10,000. There will be two factors determining how many units you get.

how many units you get. Entry load

Entry load

This is the fee you pay on the amount you invest. Let's say the entry load This is the fee you pay on the amount you invest. Let's say the entry load is 2%. Two percent on Rs 10,000* would Rs 200. Now, you have just Rs is 2%. Two percent on Rs 10,000* would Rs 200. Now, you have just Rs 9,800 to invest.

9,800 to invest. NAV

NAV

The Net Asset Value is the price of a unit of a fund. Let's say that the NAV The Net Asset Value is the price of a unit of a fund. Let's say that the NAV on the day you invest is Rs 30.

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So you will get 326.67 units (Rs 9800 / 30). So you will get 326.67 units (Rs 9800 / 30).

2.

2. Periodic investmentsPeriodic investments

This is referred to as a SIP. This is referred to as a SIP.

That means that, every month, you commit to investing, say, Rs 1,000 in That means that, every month, you commit to investing, say, Rs 1,000 in your fund. At the end of a year, you would have invested Rs 12,000 in your fund. At the end of a year, you would have invested Rs 12,000 in your fund.

your fund.

Let's say the NAV on the day you invest in the first month is Rs 20; you Let's say the NAV on the day you invest in the first month is Rs 20; you will get 50 units.

will get 50 units.

The next month, the NAV is Rs

The next month, the NAV is Rs 25. You will get 40 units.25. You will get 40 units. The following month, the NAV is Rs 18. You

The following month, the NAV is Rs 18. You will get 55.56 units.will get 55.56 units.

So, after three months, you would have 145.56 units. On an average, you So, after three months, you would have 145.56 units. On an average, you would have paid around Rs 21 per unit. This is because, when the NAV is high, would have paid around Rs 21 per unit. This is because, when the NAV is high, you get fewer units per Rs 1,000. When the NAV falls, you get more units per Rs you get fewer units per Rs 1,000. When the NAV falls, you get more units per Rs 1,000.

1,000.

What's a mutual fund SIP?

SIP is an investment option that is presently available only with mutual SIP is an investment option that is presently available only with mutual

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deposit schemes from Post office and banks. Basically, under an SIP deposit schemes from Post office and banks. Basically, under an SIP option an investor commits making a regular (monthly) investment in a option an investor commits making a regular (monthly) investment in a particular mutual fund

particular mutual fund..

Why you should invest in a

Why you should invest in a Systematic Investment

Systematic Investment

Plan?

1.

1. DisciplineDiscipline

The cardinal rule of building your corpus is to stay focused, invest regularly and The cardinal rule of building your corpus is to stay focused, invest regularly and maintain discipline in your investing pattern. A few hundreds set aside every month maintain discipline in your investing pattern. A few hundreds set aside every month will not pinch your monthly disposable income too much. You will also find it easier will not pinch your monthly disposable income too much. You will also find it easier to part with a few hundreds every month rather than investing a big lump sum in to part with a few hundreds every month rather than investing a big lump sum in one go.

one go.

2.

2. Power of compoundingPower of compounding

Investment gurus always recommend that one must start investing early in life. Investment gurus always recommend that one must start investing early in life. One of the main reasons for doing that is the benefit of compounding. To explain One of the main reasons for doing that is the benefit of compounding. To explain with an example. Person A started investing Rs 10,000 per year at the age of 30. with an example. Person A started investing Rs 10,000 per year at the age of 30. Person B started investing the same amount every year at the age of 35. When Person B started investing the same amount every year at the age of 35. When they attained the age of 60 respectively, person A had built a corpus of Rs 12.23 they attained the age of 60 respectively, person A had built a corpus of Rs 12.23 lakh while person B’s corpus was Rs 7.89 lakh. A rate of return of

lakh while person B’s corpus was Rs 7.89 lakh. A rate of return of 8% compounded8% compounded has been assumed. So the difference of Rs 50,000 in amount invested made a has been assumed. So the difference of Rs 50,000 in amount invested made a difference of more than Rs 4 lakh to their end corpus. That difference is due to the difference of more than Rs 4 lakh to their end corpus. That difference is due to the effect of compounding. The longer the

effect of compounding. The longer the compoundincompounding period, the better g period, the better for you.for you. Now instead of investing Rs 10,000 each year, suppose person A invested Rs Now instead of investing Rs 10,000 each year, suppose person A invested Rs 50,000 after every 5 years, starting at the age of 35. The total amount invested, 50,000 after every 5 years, starting at the age of 35. The total amount invested, thus remains the same, which is Rs 3 lakh. However, when he is 60, his corpus will thus remains the same, which is Rs 3 lakh. However, when he is 60, his corpus will be Rs 10.43 lakh. Again, he loses the advantage of compounding in the early be Rs 10.43 lakh. Again, he loses the advantage of compounding in the early years.

years.

3.

3. Rupee cost averagingRupee cost averaging

This is especially true for investments in equities. When you invest the same This is especially true for investments in equities. When you invest the same amount in a fund at regular intervals over time, you buy more units when the price amount in a fund at regular intervals over time, you buy more units when the price is lower. Thus, you would reduce your average cost per share or per unit over is lower. Thus, you would reduce your average cost per share or per unit over time. This strategy is called 'rupee cost averaging'. With a sensible and long-term time. This strategy is called 'rupee cost averaging'. With a sensible and long-term

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investment approach, rupee cost averaging can smooth out the market's ups and investment approach, rupee cost averaging can smooth out the market's ups and downs and reduce the risks of

downs and reduce the risks of investing in volatile marketsinvesting in volatile markets..

Some examples: Some examples:

HDFC MUTUAL FUND HDFC MUTUAL FUND SCHEME:

SCHEME: HDFC CHDFC CAPITAL BUILDEAPITAL BUILDER FUNDR FUND

PRU ICICI MUTUAL FUND PRU ICICI MUTUAL FUND SCHEME:

SCHEME: PRU ICICI PRU ICICI GROWTH GROWTH FUNDFUND

RELIANCE MUTUAL FUND RELIANCE MUTUAL FUND

SCHEME: RELIANCE GROWTH FUND SCHEME: RELIANCE GROWTH FUND

R

Reettuurrnnss SSIIPP NNoorrmmaall 5 5 yyeeaarr 4141..8811%% 1199..3399%% 3 3 yyeeaarr 6969..2288%% 5566..1155%% 1 1 yyeeaarr 8686..4477%% 4477..6622%% R

Reettuurrnnss SSIIPP NNoorrmmaall 5 5 yyeeaarr 2277..6600%% 77..3377%% 3 3 yyeeaarr 4444..8899%% 3355..33%% 1 1 yyeeaarr 5544..3399%% 1133..8899%% R

Reettuurrnnss SSIIPP NNoorrmmaall

5

5 yyeeaarr 5522..1177%% 2200..1199%% 1

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4. Convenience 4. Convenience

This is a very convenient way of investing. You have to just submit cheques with This is a very convenient way of investing. You have to just submit cheques with the completed enrollment form. The mutual fund will deposit the cheques on the the completed enrollment form. The mutual fund will deposit the cheques on the requested date and credit the units to one’s account and will send the confirmation requested date and credit the units to one’s account and will send the confirmation for the same.

for the same.

During the last year the economic crisis is their this particular time many people During the last year the economic crisis is their this particular time many people loose their money in capital market but which

loose their money in capital market but which person invest his or her money inperson invest his or her money in mutual fund’s SIP he or she keep a great return on his or

mutual fund’s SIP he or she keep a great return on his or her investmenther investment

We see t

We see the return

he return & perfo

& performance of

rmance of this SIP’s

this SIP’s during

during the

the

last

year

last

year

..

PERFORMANCE OF SIP’s PERFORMANCE OF SIP’s June2008-May2009 June2008-May2009

Birla Sun Life 95

Fund - Gr

Franklin India Flexi

Cap Fund - Gr

D

Daattee NNAAVV uunniitt DDaattee NNAAVV uunniitt 1 100//66//22000088 119966..0033 55..11 1010//66//22000088 2211..22999977 4466..9955 1 100//77//22000088 118811..9922 55..55 1010//77//22000088 2200..00446611 4499..8899 1 111//88//22000088 119988..2255 55..0044 1111//88//22000088 2211..33661188 4466..8811 1 100//99//22000088 119933..3333 55..1177 1010//99//22000088 2200..66330077 4488..4477 1 100//1100//22000088 114499..9988 66..6677 1010//1100//22000088 1155..88228822 6633..1188 1 100//1111//22000088 115511..5577 66..66 1100//1111//22000088 1155..994433 6622..7722 1 100//1122//22000088 114499..4444 66..6699 1100//1122//22000088 1144..779966 6677..5599 1 122//11//22000099 115522..6699 66..5555 1212//11//22000099 1144..33007755 6699..8899 1 100//22//22000099 115522..7711 66..5555 1010//22//22000099 1144..55334477 6688..88

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1 122//33//22000099 114400..7733 77..1111 1212//33//22000099 1122..55886644 7799..4455 13-04-2009 2009 1 17700..7733 55..8866 1133--004 4--2009 2009 1 166..33447788 6611..1177 1 111//55//22000099 118811..5566 55..5511 1111//55//22000099 1177..66994477 5566..5511 S Suummmmaarry y :: SSuummmmaarry y :: Amount Invested : Amount Invested : 1 122,,000000..0000 AAmmoouunnt t IInnvveesstteed d : : 1122,,000000..0000 Installment Amount : Installment Amount : 1,000.00 1,000.00 Installment Amount : Installment Amount : 1,000.00 1,000.00 N No o oof f MMoonntthhs s : : 1122 NNo o oof f MMoonntthhs s : : 1122 Total Amount : 15,958.00 Total Amount : 15,958.00 (as on 29/05/2009) (as on 29/05/2009)

Total Amount : 16,037.00 (as

on 29/05/2009) on 29/05/2009) R Reettuurrn n : : 7711..55%% RReettuurrn n : : 7733..0055%% H HDDFFC C GGrroowwtth h FFuunnd d GGrr HHDDFFC C TToop p 22000 0 - - GGrr.. D

Daattee NNAAVV uunniitt DDaattee NNAAVV uunniitt 1 100//66//22000088 5858..885511 1166..9999 1010//66//22000088 112277..001155 77..8877 1 100//77//22000088 5454..773366 1188..2277 1010//77//22000088 111199..226666 88..3388 1 111//88//22000088 6060..999933 1166..44 1111//88//22000088 113344..229922 77..4455 1 100//99//22000088 5959..774499 1166..7744 1010//99//22000088 113311..007722 77..6633 1 100//1100//22000088 4466..006633 2211..7711 1010//1100//22000088 9898..222288 1100..1188 1 100//1111//22000088 4455..663355 2211..9911 1010//1111//22000088 9898..7711 1100..1133 1 100//1122//22000088 4411..554444 2244..0077 1010//1122//22000088 9090..224411 1111..0088 1 122//11//22000099 3399..44 2255..3388 1212//11//22000099 8888..337788 1111..3322 1 100//22//22000099 3939..336611 2255..4411 1010//22//22000099 9900..773344 1111..0022

Report on Sip

Awareness about systematic

Awareness about systematic

investment plan: A Best

investment plan: A Best

instrument for investment in

instrument for investment in

mutual fund

mutual fund

(With special reference to

(With special reference to motilal oswal)

motilal oswal)

Dipak prajapati

Dipak prajapati

S.K.

S.K.

SCHOOL OF BUSINESS MANAGEMENT,

SCHOOL OF BUSINESS MANAGEMENT,

SCHOOL OF BUSINESS MANAGEMENT,

SCHOOL OF BUSINESS MANAGEMENT,

HEMCHANDRACH

HEMCHANDRACH

ARYA

ARYA

NORTH GUJARAT

NORTH GUJARAT

UNIVERSITY,

UNIVERSITY,

PATAN

CONTENTS:

CONTENTS:

DECLARATION

DECLARATION

PREFACE

PREFACE

It is true that the world outside your cozy home is many a time quite

It is true that the world outside your cozy home is many a time quite

different from what you have perceived. Similarly, it is possible that the

different from what you have perceived. Similarly, it is possible that the

the

theore

oretic

tical

al kno

knowl

wledg

edge

e acq

acquir

uired

ed in

in the

the cla

classr

ssroo

oom

m may

may dif

differ

fer fro

from

m the

the

practical knowledge.

practical knowledge.

In order to make an individual aware of the practical implication of

In order to make an individual aware of the practical implication of

what he has learned. He is enriched with the practical training. I as a

what he has learned. He is enriched with the practical training. I as a

student of M.B.A. got this opportunity to know what is

student of M.B.A. got this opportunity to know what is actually happening

actually happening

in a company. The main areas covered during the training period are:

in a company. The main areas covered during the training period are:

Marketing department, HR department, Financial department, Customer

Marketing department, HR department, Financial department, Customer

care department and Technical department,

care department and Technical department,

I have take

I have taken training at Mo