A PROJECT REPORT ON Perception and satisfaction level among investors investing in liquid funds or others: A Comparative study AT BIRLA

SUN LIFE MUTUAL FUND (CITY CENTRE, GWALIOR)

Submitted to Jiwaji University Gwalior For the partial fulfillment of the award of Master of Business Administration (2011-2013) Submitted by Uday Chauhan

PRESTIGE INSTITUTE OF MANAGEMENT GWALIOR (M.P.)

1

DECLARATION
This is declare that the project Report entitled Perception and satisfaction level among investors Investing in liquid funds or others has been accomplished by Uday Chauhan and being submitted partial fulfillment of requirement for the award of the degree of Master of Business Administration from Prestige Institute of Management, Gwalior affiliates to Jiwaji University, Gwalior. This work has not been submitted by us anywhere else for the award of any degree or diploma. All sources of information and help have been mentioned and acknowledged.

Date: - 25/07/2012 Place:-Gwalior

Uday Chauhan M.B.A. Roll-No-58(E)

CERTIFICATE
This is to certify that Uday Chauhan students of MBA 2ND semester, Prestige Institute of Management have successfully completed her project report Entitled Perception and satisfaction level among investors investing in liquid funds or others For the partial fulfillment of requirement for the award of the degree of Master of Business Administration. She had made her report under my guidance and supervision with utmost sincerity & loyalty.

Ravidera Pathak (Faculty Guide)

ACKNOWLEDGEMENT
We are extremely grateful and remain indebted to our guide Mr. Puneet Sharma (Branch Manager of Birla Sun Life Mutual Fund) and Mr. Mohd. Nayyar for giving me opportunity to work under his guidance on project report on Perception and satisfaction level among investors Investing in liquid funds or others . I am grateful to him for giving me the valuable time & suggestion in the execution of project work. I also acknowledge & convey thanks to the BIRLA SUN LIFE MUTUAL FUND for their kind and valuable support.

Uday Chauhan M.B.A. 2ND SEM

TABLE OF CONTENT:
S.NO. TOPIC 1 Companys profile: (i) (ii) (iii) (iv) (v) 2 History of the organization & objectives Companys vision Companys mission Values Position PAGE NO.

Personnel: (i) (ii) (iii) (iv) recruitment selection training and development welfare activities

Production/operations: (i) (ii) (iii) (iv) products/services offered layout of the facility quality control present & future of the company

Marketing:

(i) (ii) (iii) (iv) (v) 5 6

Areas of operation Major competitors Market share Outlets in country Market strategy

Strengths of the organization OTHERS: a) Key personnel b) Awards c) About mutual funds CHAPTER 1 : INTRODUCTION CHAPTER 2 : METHODOLOGY (a) Objectives (b) Research methodology (c) The tools: (i) For data analysis.

CHAPTER 3 : RESULTS CHAPTER 4 : SUGGESTIONS AND IMPLICATION CHAPTER 5 : CONCLUSION ANNEXURE: (i) Questionnaire

(ii) (iii)

glossary references

1) COMPANYS PROFILE
HISTORY:

Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Services Inc. of Canada. The joint venture brings together the Aditya Birla Group's experience in the Indian market and Sun Life's global experience. Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading flagships of Mutual Funds business managing assets of a large investor base. Our solutions offer a range of investment options, including diversified and sector specific equity schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds. Birla Sun Life Asset Management Company has one of the largest team of research analysts in the industry, dedicated to tracking down the best companies to invest in. BSLAMC strives to provide transparent, ethical and research-based investments and wealth management services.

HERITAGE:
The Aditya Birla Group: The Aditya Birla Group is one of India's largest business houses. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The group operates in 26 countries India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, UAE, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia, Bahrain and Korea. A US $29 billion corporation in the League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary work force of 130,000 employees, belonging to 40 different nationalities. Over 60 per cent of its revenues flow from its operations across the world. The Aditya Birla Group is a dominant player in all its areas of operations viz; Aluminum, Copper, Cement, Viscose Staple Fiber, Carbon Black, Viscose Filament Yarn, Fertilizers, Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual Funds, Software and Telecom. The Group has strategic joint ventures with global majors such as Sun Life (Canada), AT&T (USA), the Tata Group and NGK Insulators (Japan), and has ventured into the BPO sector with the acquisition of TransWorks, a leading ITES/BPO company.

Sun life financial: Sun Life Financial Inc is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial Inc and

its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.

VISION:
To be the most trusted name in investment and wealth management, to be the preferred employer in the industry and to be a catalyst for growth and excellence of the asset management business in India.

MISSION:
To consistently pursue investor's wealth optimization by:

Achieving superior and consistent investment results. Creating a conducive environment to hone and retain talent. Providing customer delight. Institutionalizing system-approach in all aspects of functioning.
Upholding highest standards of ethical values at all times

VALUES:

Integrity Commitment Passion Seamlessness Speed

POSITION: Today it is ranked at 5th position among the 42 asset management company
(AMC) in the country.

2) PERSONNEL
RECRUITMENT:
Recruitment is the processes of selection for prospective employees simulating them for apply for job in the organization. In other words it is linking activity bearing to gather with jobs, selection jobs. Recruitment makes it possible to acquire the number and type of people necessary to ensure the continued operation of the organization. Recruitment is the process of searching for prospective employee and stimulating encouraging them to apply for jobs in an organization. There are two sources of recruitment: (1) Internal sources: It includes promotion, transfer and demotion. (2) External sources: It includes advertisement, employment, on campus requirement, employee recommendation In Birla sun life mutual fund they are using internal as well as external sources. Their policies for external sources is such that first they give advertisement in newspaper and they have also contact with employment exchange through these source first of all collect application, separated and then after appropriate candidates are called for the interview.

SELECTION:
After creating if application of required number of employees secured through different sources of recruitment the selection process begins. The main purpose of selection process is it finds the right man for each job. The efficiency and profitability of the concern depends mainly on proper selection of the personnel.
Company select employees through commercial made of three numbers. One is the work manager, second is of manager and the third is the head department in which company exists.

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TRAINING AND DEVELEOPMENT PROCESS:

It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance of employees. The system model consists of five phases and should be repeated on a regular basis to make further improvements. The training should achieve the purpose of helping employee to perform their work to required standards. The steps involved in System Model of training are as follows: 1. Analyze and identify the training needs i.e. to analyze the department, job, employees requirement, who needs training, what do they need to learn, estimating training cost, etc The next step is to develop a performance measure on the basis of which actual performance would Be evaluated. 2. Design and provide training to meet identified needs. This step requires developing objectives of training, identifying 3. Develop- This phase requires listing the activities in the training program that will assist the participants to learn, selecting delivery method, examining the training material, validating information to be imparted to make sure it accomplishes all the goals & objectives. 4. Implementing is the hardest part of the system because one wrong step can lead to the failure of whole training program. 5. Evaluating each phase so as to make sure it has achieved its aim in terms of subsequent work performance. Making necessary amendments to any of the previous stage in order to remedy or improve failure practices.

WELFARE ACTIVITIES:
The Group actively involves itself in several community development initiatives in particular around its manufacturing location. The group also supports development activities in areas like healthcare, education, sustainable livelihood, infrastructure and social causes. The group's philanthropic activities are guided by Mrs. Rajashree Birla.[14] It works in 3,700 villages, reaching out to 7 million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development. It runs 45 schools and 18 hospitals

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3) PRODUCTION/OPERATIONS:
PRODUCTS/SERVICES OFFERED:
SERVICES: Birla Sun Life offers extensive and thoughtfully devised financial services to its large base of customers across the globe to help them manage their finance in the most effective way. We can benefit a lot from its wide array of financial services in the areas of wealth management, mutual funds and insurance plans. The mutual fund products and services are provided by investment managers of the Birla Sun Life Asset Management Company Ltd. (BSLAMC). The company has been formed by the joint efforts of Aditya Birla group and the sun life financial services Inc. of Canada. The wealth management services are exclusively handled by the Birla Sun Life Distribution Company Limited (BSDL). This is the subsidiary company of Aditya Birla Nuvo Ltd. The life insurance business is taken care of by the Birla Sun Life Insurance Company Limited (BSLI). The tie-up between Aditya Birla Group and Canada-based Sun Life Financial Inc resulted in the existence of this one of the topnotch insurance companies in India. PRODUCTS:

Direct Equity Mutual Funds Structured Products Portfolio Management System (PMS) Alternate Asset Products Loan Against Securities and Mutual Funds Real Estate

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Life Insurance Gold

SERVICES BY BIRLA SUN LIFE MUTUAL FUND:

1. Highly proactive services 2. Online Portfolio Access 3. Regular Portfolio Reviews 4. Financial planning 5. Research PRODUCTS OF BIRLA SUN LIFE MUTUAL FUND: Equity Schemes
o o o

Diversified Fund Theme Based Fund Sectoral Fund

Debt Schemes
o o o o o o o

Interval Income Funds Fixed Maturity Plan Fixed Term Funds Short Term Fund Long Term Fund Floating Fund Gilt Fund

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Cash Fund

Hybrid Schemes
o o o o

Capital Protection Fund Balanced Fund Fund of Funds

MIP

Products offered:
Scheme Code 295D 298D 296D 202RD 202RG 295G 231G 935G 02 Subscription Redemption Price 11.5792 9.2865 15.5049 12.8914 12.8914 11.5792 13.4 9.74 75.32 15.7132 Price 11.4634 9.1936 15.3499 12.5047 12.5047 11.4634 13.4 9.64 75.32 15.2418

Scheme Name Birla Sun Life Small And Midcap Fund Dividend Birla Sun Life International Equity Fund - Plan B Dividend Birla Sun life Pure Value Fund Dividend Bsl Commodity Equities Fund-global Precious Metals Plan-retail-dividend Bsl Commodity Equities Fund-global Precious Metals Plan-retail-growth Birla Sun Life Small And Midcap Fund Growth Birla Sun Lifetax Plan Growth Birla Sun Life India Reforms Fundgrowth Bsl Tax Relief 96 Dividend

NAV Date 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012

NAV (Rs.) 11.57920 9.28650 15.50490 12.89140 12.89140 11.57920 13.40000 9.74000 75.32000 15.71320

203RD Bsl Commodity Equities Fund-global 24/06/2012

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Agri Plan-retail-dividend 203RG 297G 935D 02G 299G 299G 299D 296G 204RG 204RD 298G 297D 201D 201G 261D Bsl Commodity Equities Fund-global Agri Plan-retail-growth Birla Sun Life International Equity Fund-plan A growth Birla Sun Life India Reforms Funddividend Birla Sun Lifetaxrelief 96 - Growth Birla Sun Life Special Situations Fund Growth Birla Sun Life Special Situations Fund Growth Birla Sun Life Special Situations Fund Dividend Birla Sun life Pure Value Fund Growth Bsl Commodity Equities Fund-global Multi Commodity Plan-retail-growth Bsl Commodity Equities Fund-global Multi Commodity Plan-retail-dividend Birla Sun Life International Equity Fund -plan B-growth Birla Sun Life International Equity Fund-plan A dividend Birla Sun Life Advantage Fund Dividend Birla Sun Life Advantage Fund Growth Birla Sun Life Dividend Yield Plus Dividend 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 15.71320 9.63850 9.74000 10.68000 9.34310 9.34310 9.34310 16.54790 13.24970 13.24970 9.28650 9.63850 76.64000 149.79000 13.08000 15.7132 9.6385 9.74 10.68 9.3431 9.3431 9.3431 16.5479 13.2497 13.2497 9.2865 9.6385 76.64 149.79 13.08 15.2418 9.6385 9.64 10.68 9.2497 9.2497 9.2497 16.3824 12.8522 12.8522 9.1936 9.6385 76.26 149.04 12.95

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261G 251D 251G 291D 291G 292D 292G 293D 293G 221D 221G 211D 211G 241D 241G 231D 281D 281G

Birla Sun Life Dividend Yield Plus Growth Birla Sun Life Midcap Fund -plan ADividend Birla Sun Life Midcap Fund -plan A Growth Birla Sun Life India Generation Next Fund Dividend Birla Sun Life India Generation Next Fund Growth Birla Sun Life Top 100 Fund Dividend Birla Sun Life Infrastructure Fund Plan A dividend Birla Sun Life Infrastructure Fund Plan A-growth Birla Sun Life Mnc Dividend Birla Sun Life Mnc Growth Birla Sun Life India Opportunities Fund Dividend Birla Sun Life India Opportunities Fund Growth Birla Sun Life Index Fund - Dividend Birla Sun Life Index Fund - Growth Birla Sun Life Tax Plan - Dividend Birla Sun Life Freedom Fund Dividend Birla Sun Life Freedom Fund Growth

24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012

83.96000 21.19000 104.50000 14.04000 24.89000 13.83230 22.45730 10.68000 15.51000 79.41000 210.86000 16.04000 50.73000 20.86770 53.98360 44.16000 15.13000 32.14000

83.96 21.19 104.5 14.04 24.89 13.8323 22.4573 10.68 15.51 79.41 210.86 16.04 50.73 20.8677 53.9836 44.16 15.13 32.14

83.12 20.98 103.46 13.9 24.64 13.7631 22.345 10.57 15.35 78.62 208.75 15.96 50 20.7634 53.7137 44.16 14.98 31.82

Birla Sun Life Top 100 Fund - Growth 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012

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271D A AG 21 23 22 11 12

Birla Tax plan 98 Birla Sun Life 95 Fund - Dividend Birla Sun Life 95 Fund Growth Birla Sun Life Basic Industries Fund Dividend Birla Sun Life Basic Industries Fund Dividend Trigger Birla Sun Life Basic Industries Fund Growth Birla Sun Life Buy India Fund Dividend Birla Sun Life Buy India Fund Growth

31/03/2010 24/06/2012 24/06/2012 24/06/2012 29/06/2011 24/06/2012 24/06/2012 24/06/2012

207.78000 105.53000 308.73000 24.91000 10.86000 94.45000 21.55000 40.84000

0 105.53 308.73 24.91 10.86 94.45 21.55 40.84

207.78 104.47 305.64 24.66 10.75 93.51 21.44 40.64

Birla Sun Life Equity Fund - Growth 205RD 205ID 205RG 52 91 92 15 Birla Sun Life Enhanced Arbitrage Fund -retail Plan dividend Birla Sun Life Enhanced Arbitrage Fund -institutional Plan dividend Birla Sun Life Enhanced Arbitrage Fund -retail Plan growth Birla Sun Life Equity Fund - Dividend Birla Sun Life Frontline Equity Fund Plan A Dividend Birla Sun Life Frontline Equity Fund Plan A Growth Birla Sun Life New Millennium Fund Dividend

24/06/2012 24/06/2012 16/08/2011 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012

246.81000 10.78910 10.16280 11.04800 62.17000 20.68000 86.03000 12.38000

246.81 10.7891 10.1628 11.048 62.17 20.68 86.03 12.38

244.34 10.7082 10.0866 10.9651 61.55 20.47 85.17 12.26

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16 294D 294G 292RD

Birla Sun Life New Millennium Fund Growth Birla Sun Life Long Term Advantage Fund Dividend Birla Sun Life Long Term Advantage Fund Growth Birla Sun Life Top 100 Fund - Dividend Reinvest Birla Sun Life Freedom Fund - Dividend Reinvest Bsl Special Situations Fund - Dividend Reinvest Bsl Frontline Equity Fund - Plan B Dividend Birla Sun Life Infrastructure Fund -plan A - Dividend Reinvest Birla Sun Life Basic Industries Fund Dividend Reinvest Bsl Cef - Global Precious Metals Planretail Dividend Reinvest Bsl Cef - Global Multi Commodity Planretail Dividend Reinvest Birla Sun Life '95 Fund - Dividend Reinvest Birla Sun Life Equity Fund - Dividend Reinvest Birla Sun Life Infrastructure Fund-plan B-dividend

24/06/2012 24/06/2012 24/06/2012 24/06/2012 11/02/2012 24/06/2012 24/06/2012 11/02/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 11/02/2012

18.96000 12.72000 13.77000 13.83230 12.51000 15.13000 9.34310 12.50000 10.68000 24.91000 12.89140 13.24970 105.53000 9.74000 62.17000 10.97000

18.96 12.72 13.77 13.8323 12.51 15.13 9.3431 12.5 10.68 24.91 12.8914 13.2497 105.53 9.74 62.17 10.97

18.77 12.72 13.77 13.7631 12.38 14.98 9.2497 12.38 10.57 24.66 12.5047 12.8522 104.47 9.64 61.55 10.86

251HD Bsl Midcap Fund - Plan - B - Dividend 281RD 299RD 91D 293RD 21D 202DD 204DD AD

935DR Bsl India Reforms Fund -div Reinvest 52D 293F

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02D 11D 221RD 203DD 91BD 251DD 293E 297RD 205DD 91G 202DD 21D 293RD 91D 299RD

Tax Relief '96 Fund-less - Dividend Reinvest Birla Sun Life Buy India Fund - Dividend Reinvest Birla Sun Life Mnc Fund - Dividend Reinvest Bsl Cef Global Agri Plan-retail Dividend Reinvest Birla Sun Life Frontline Equity Fund -plan B- Dividend Reinvest Birla Sun Life Midcap Fund -plan BDividend Reinvest Birla Sun Life Infrastructure Fund-plan B-growth Bsl International Equity-plan-a -dividend Reinvest Birla Sun Life Enhanced Arbitrage Fund - Retail - Dividend Reinvest Bsl Frontline Equity Fund - Plan B Growth Bsl Cef - Global Precious Metals Planretail Dividend Reinvest Birla Sun Life Basic Industries Fund Dividend Reinvest Birla Sun Life Infrastructure Fund -plan A - Dividend Reinvest Birla Sun Life Frontline Equity Fund Plan B Dividend Birla Sun Life Special Situations Fund Dividend Reinvest

24/06/2012 24/06/2012 24/06/2012 24/06/2012 11/02/2012 11/02/2012 11/02/2012 24/06/2012 24/06/2012 11/02/2012 24/06/2012 24/06/2012 24/06/2012 11/02/2012 24/06/2012

75.32000 21.55000 79.41000 15.71320 12.50000 12.51000 11.43000 9.63850 10.78910 12.50000 12.89140 24.91000 10.68000 12.50000 9.34310

75.32 21.55 79.41 15.7132 12.5 12.51 11.43 9.6385 10.7891 12.5 12.8914 24.91 10.68 12.5 9.3431

75.32 21.55 78.62 15.2418 12.38 12.38 11.32 9.6385 10.7082 12.38 12.5047 24.66 10.57 12.38 9.2497

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281RD 251HD 91DD 291RD 15D

Birla Sun Life Freedom Fund - Dividend Reinvest Birla Sun Life Midcap Fund - Plan - B Dividend Birla Sun Life Frontline Equity Fund -plan A- Dividend Reinvest Birla Sun Life India Gen next Fund Dividend Reinvest Birla Sun Life New Millennium Fund Dividend Reinvest Bsl International Equity Fund -plan-b Dividend Reinvest

24/06/2012 11/02/2012 24/06/2012 24/06/2012 24/06/2012 11/02/2012 24/06/2012

15.13000 12.51000 20.68000 14.04000 12.38000 12.51000 9.28650

15.13 12.51 20.68 14.04 12.38 12.51 9.2865

14.98 12.38 20.47 13.9 12.26 12.38 9.1936

251HG Bsl Midcap Fund - Plan B - Growth 298RD

OFFSHORE Scheme Code IAF NAV (US$) 210.7700 0 Subscription Redemption Price 210.77 Price 210.77

Scheme Name India Advantage (offshore) Fund

NAV Date 22/06/2012

DEBT

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Scheme Code 352G 31AP 913RD 332DD 353G 303G 351D 352D 332MD 75ID 83FD 912IG 341ID 303QD

Scheme Name Birla Sun Life Capital Protection Oriented Fund (5 Year)-growth Birla Sun Life Income Fund Discipline Advantage Plan Birla Sun Life Fixed Term Retail Af Dividend Birla Sun life Savings Fund-institutional Plan-daily Dividend Bsl Capital Protection Oriented Fund Series 1 Growth Birla Sun Life Medium Term Plan - Retail Growth Birla Sun Life Capital Protection Oriented Fund (3 Year)-dividend Birla Sun Life Capital Protection Oriented Fund (5 Year)-dividend Birla Sun life Savings Fund-institutional Plan -monthly Dividend Birla Sun Life Govt.securities Short Term Instl-dividend Birla Sun Life Short Term Fund Fortnightly-dividend Bsl Ftp Institutional Series Ba - Growth Birla Sun Life Short Term Opportunities Fund Instl Dividend Plan Birla Sun Life Medium Term Plan - Retail - Quarterly Dividend

NAV Date 24/06/2012 24/06/2012 27/08/2012 24/06/2012 24/06/2012 24/06/2012 03/08/2012 24/06/2012 11/02/2012 24/06/2012 24/06/2012 13/08/2010 24/06/2012 11/02/2012

NAV (Rs.)

Subscription Redemption Price Price 12.5295 11.1738 9.7 10.0068 10.5696 11.5403 10 12.5295 10.3099 10 10.3568 10.8977 10.3306 10.1736

12.52950 12.5295 11.22990 11.2299 10.00000 10 10.00680 10.0068 10.56960 10.5696 11.56920 11.5692 10.00000 10 12.52950 12.5295 10.30990 10.3099 10.00000 10 10.38280 10.3828 11.12010 11.1201 10.35650 10.3565 10.19910 10.1991

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911IG 331WD 304QD 341IG 303MD 760RG 85DD 512DD 913ID 912RD 304WD

Bsl Ftp Instl Series Az Growth Birla Sun life Savings Fund-retail- Weekly Dividend Birla Sun Life Medium Term Plan Institutional - Quarterly Dividend Birla Sun Life Short Term Opportunities Institutional Growth Birla Sun Life Medium Term Plan - Retail - Monthly Dividend Birla Sun Life Equity Linked Fmp-series A-retail-growth Birla Sun Life Short Term Fund Instl Daily Dividend Birla Sun life Floating Rate Fund-long Term Plan-daily Dividend Birla Sun Life Fixed Term Instl Af Dividend Bsl Ftp Retail Series Ba - Dividend Birla Sun Life Medium Term Plan -institutional - Weekly Dividend Birla Sun Life Medium Term Plan Institutional - Quarterly Dividend Birla Sun Life Govt.securities Short Term Instl-daily Dividend Birla Sun Life Income Plus Discipline Advantage Plan Bsl Ftp Instl Series Az Dividend Bsl Ftp Institutional Series Ba - Dividend

28/07/2010 24/06/2012 11/02/2012 24/06/2012 24/06/2012 22/06/2012 24/06/2012 11/02/2012 27/08/2011 13/08/2010 24/06/2012

11.12150 0 10.01760 10.0176 10.21730 10.2173 11.45330 11.4533 10.29220 10.2922 12.34180 12.3418 10.00550 10.0055 10.00500 10.005 10.00000 10 10.00000 10 10.04310 10.0431

10.8991 10.0176 10.1918 11.4247 10.2665 12.095 9.9805 9.98 9.7 9.8 10.018

304QD 75IDD 301AP 911ID 912ID 303MD

11/02/2012 06/11/2010 24/06/2012 28/07/2010 13/08/2010

10.21730 10.2173 10.00000 10 11.22390 11.2239 10.00000 0 10.00000 10 10.29220 10.2922

10.1918 10 11.1958 9.8 9.8 10.2665

Birla Sun Life Medium Term Plan - Retail - 24/06/2012

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Monthly Dividend 760RG 85DD 331MD 75IWD 914RG 911RD 304G 914IG 332WD 512DD 913ID 912RD 304WD 331DD 321MD 761ID 304FD Birla Sun Life Equity Linked Fmp-series A-retail-growth Birla Sun Life Short Term Fund Instl Daily Dividend Birla Sun life Savings Fund-retail -monthly Dividend Birla Sun Life Govt.securities Short Term Instl-weekly Dividend Birla Sun Life Ftp-retail-series Bb-growth Ftp Retail Series Az Dividend Birla Sun Life Medium Term Plan Institutional Growth Birla Sun Life Ftp-instl-series Bb-growth Birla Sun life Savings Fund-institutional Plan-weekly Dividend Birla Sun life Floating Rate Fund-long Term Plan-daily Dividend Birla Sun Life Fixed Term Instl Af Dividend Bsl Ftp Retail Series Ba - Dividend Birla Sun Life Medium Term Plan -institutional - Weekly Dividend Birla Sun Life Savings Fund-retail Daily Dividend Birla Sun Life Dynamic Bond Fund - Retail Plan Monthly Dividend Birla Sun Life Equity Linked Fmp-series B-instl-dividend 22/06/2012 24/06/2012 11/02/2012 28/08/2010 08/09/2010 28/07/2010 24/06/2012 08/09/2010 24/06/2012 11/02/2012 27/08/2011 13/08/2010 24/06/2012 24/06/2012 24/06/2012 04/09/2009 12.34180 12.3418 10.00550 10.0055 10.28480 10.2848 10.00000 10 11.11150 11.1115 10.00000 0 11.22780 11.2278 11.15880 11.1588 10.01860 10.0186 10.00500 10.005 10.00000 10 10.00000 10 10.04310 10.0431 10.00680 10.0068 10.58530 10.5853 0 0 12.095 9.9805 10.2848 10 10.8893 9.8 11.1997 10.9356 10.0186 9.98 9.7 9.8 10.018 10.0068 10.5324 0 10.2034

Birla Sun Life Medium Term Plan - 24/06/2012

10.22900 10.229

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Institutional - Fortnightly Dividend 75DD 913IG 304MD 914RG 83DD 351G 911RG 301QD 301G 311MD 311MP 311G 312MD 312MP 312G 313MD 313MP 313G 401QD 401AD 401G 403QD Birla Sun Life Govt Securities Short Term Retail Daily Dividend Birla Sun Life Medium Term Plan Institutional - Monthly Dividend Birla Sun Life Ftp-retail-series Bb-growth Birla Sun Life Short Term Fund -retail Plan -daily Dividend Birla Sun Life Capital Protection Oriented Fund (3 Year)-growth Bsl Ftp Retail Series Az-growth Birla Sun Life Income Plus - Quarterly Dividend Birla Sun Life Income Plus - Growth Birla Sun Life Mip Dividend Birla Sun Life Mip Payment Birla Sun Life Mip Growth Birla Sun Life Mip Saving 5 - Dividend Birla Sun Life Mip Saving 5 - Payment Birla Sun Life Mip Saving 5 - Growth Birla Sun Life Mip Wealth 25 - Dividend Birla Sun Life Mip Wealth 25 - Payment Birla Sun Life Mip Wealth 25 - Growth Birla Sun Life Gilt Plus - Liquid Quarterly Dividend Birla Sun Life Gilt Plus - Liquid - Annual Dividend Birla Sun Life Gilt Plus - Liquid - Growth 24/06/2012 10.00310 10.0031 12.33150 12.3315 10.24890 10.2489 11.11150 11.1115 10.00550 10.0055 11.70580 11.7058 11.06350 0 11.92600 11.926 44.50290 44.5029 11.29460 11.2946 26.70100 26.701 26.70100 26.701 11.26850 11.2685 17.80750 17.8075 17.80750 17.8075 11.26370 11.2637 17.99200 17.992 17.99200 17.992 10.42090 10.4209 10.29820 10.2982 22.74780 22.7478 10.27550 10.2755 10.0031 11.9616 10.2233 10.8893 9.9805 11.7058 10.8422 11.8962 44.3916 11.2664 26.6342 26.6342 11.1558 17.6294 17.6294 11.1511 17.8121 17.8121 10.4209 10.2982 22.7478 10.2755

Birla Sun Life Fixed Term Instl Af Growth 27/08/2011 24/06/2012 08/09/2010 24/06/2010 03/08/2012 28/07/2010 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012

Birla Sun Life Gilt Plus - Pf Plan - 24/06/2012

24

Quarterly Dividend 403AD 402AG 404QD 404AD 404G 512MD 512G 331FD 331G 332FD 332G 321QD 321G 341QD 341G 402IG Birla Sun Life Gilt Plus - Pf Plan - Annual Dividend Birla Sun Life Gilt Plus - Regular Plan -quarterly Dividend Birla Sun Life Gilt Plus - Regular Plan Annual Dividend Birla Sun Life Gilt Plus - Regular Plan Growth Birla Sun Life Floating Rate Fund - Long Term Plan Dividend Birla Sun Life Floating Rate Fund - Long Term Plan Growth Birla Sun life Savings Fund-retail Dividend- Fortnightly Birla Sun Life Savings Fund - Institutional Dividend Birla Sun Life Savings Fund - Institutional Growth Birla Sun Life Dynamic Bond Fund - Retail Quarterly Dividend Birla Sun Life Dynamic Bond Fund - Retail Growth Birla Sun Life Short Term Opportunities -quarterly Dividend Birla Sun Life Short Term Opportunitiesgrowth 11/02/2012 18.48120 18.4812 25.27430 25.2743 12.11710 12.1171 23.75520 23.7552 32.34760 32.3476 10.58760 10.5876 17.17220 17.1722 11.33760 11.3376 18.55260 18.5526 10.90920 10.9092 19.04100 19.041 11.48620 11.4862 16.67870 16.6787 10.51060 10.5106 15.64310 15.6431 25.27430 25.2743 18.4812 25.0216 12.1171 23.7552 32.3476 10.5611 17.1293 11.3376 18.5526 10.9092 19.041 11.4288 16.5953 10.4843 15.604 25.0216

Birla Sun Life Gilt Plus - Pf Plan - Growth 24/06/2012 24/06/2012 11/02/2012 24/06/2012 11/02/2012 24/06/2012 11/02/2012

Birla Sun Life Savings Fund-retail Growth 24/06/2012 11/02/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012

Birla Sun Life Gilt Plus - Pf Plan - Growth- 24/06/2012

25

Instand-gain 77 78 75 76 31 32 33 34 35 36 37 61 62 63 83 84 512WD Birla Sun Life Govt. Securities Long Term Dividend Birla Sun Life Govt. Securities Long Term Growth Birla Sun Life Govt Securities Short Term Retail Dividend Birla Sun Life Govt. Securities Short Term Retail Growth Birla Sun Life Income Fund - Half Yearly Dividend Birla Sun Life Income Fund - Growth Birla Sun Life Income Fund - 54ea Dividend Birla Sun Life Income Fund - 54eb Dividend Birla Sun Life Income Fund - Quarterly Dividend Birla Sun Life Monthly Income - Monthly Dividend Birla Sun Life Monthly Income - Quarterly Dividend Birla Sun Life Monthly Income - Growth Birla Sun Life Short Term Fund - Monthly Dividend Birla Sun Life Ultra Short Term Fund Growth 24/06/2012 24/06/2012 11/02/2012 24/06/2012 11/02/2012 24/06/2012 11/02/2012 11.36880 11.3688 28.70160 28.7016 10.20170 10.2017 19.36990 19.3699 11.75350 11.7535 36.57580 36.5758 10.64570 10.6457 35.29860 35.2986 15.57080 15.5708 35.07630 35.0763 11.33700 11.337 11.28770 11.2877 11.91260 11.9126 36.97670 36.9767 10.80680 10.8068 18.05750 18.0575 10.00780 10.0078 11.3688 28.7016 10.2017 19.3699 11.6947 36.3929 10.5925 35.1221 15.4929 34.9009 11.2803 11.1748 11.7935 36.6069 10.7798 18.0124 9.9828

Birla Sun Life Income Fund - 54ea Growth 11/02/2012 11/02/2012

Birla Sun Life Income Fund - 54eb Growth 11/02/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 11/02/2012 24/06/2012

Birla Floating Rate Fund-long Term Plan- 24/06/2012

26

weekly Dividend 31D 953G 403A 957G 331M 953D 934G 950G 966G 968G 969G 982G 970D 403Q 401Q Birla Sun Life Income Fund - Half Yearly Dividend Reinvest Birla Sun Life Short Term Fmp - Series 6 Growth Birla Sun Life Gilt Plus - Pf- Annual Dividend Reinvest Birla Sun Life Fixed Term Plan Series Cq Growth Birla Sun Life Savings Fund-retail-monthly Dividend Reinvest Birla Sun Life Short Term Fmp - Series 6 Dividend Bsl Fixed Term Plan Series Cd - Growth Birla Sun Life Fixed Term Plan - Series Cm Growth Birla Sun Life Short Term Fmp Series 11 Growth Birla Sun Life Fixed Term Plan Series Cv Growth Birla Sun Life Short Term Fmp Series 13 Growth Birla Sun Life Short Term Fmp Series 16 Growth Birla Sun Life Fixed Term Plan Series Cw Dividend Birla Sun Life Gilt Plus - Pf- Quarterly Dividend Reinvest Bsl Gilt Plus-liquid-quarterly Dividend Reinvestment 11/02/2012 28/04/2012 11/02/2012 24/06/2012 11/02/2012 28/04/2012 05/04/2012 24/06/2012 08/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 11.75350 11.7535 10.22920 10.2292 18.48120 18.4812 10.34300 10.343 10.28480 10.2848 10.00000 10 10.66630 10.6663 10.38690 10.3869 10.24710 10.2471 10.26250 10.2625 10.27240 10.2724 10.03940 10.0394 10.26430 10.2643 10.27550 10.2755 10.42090 10.4209 11.6947 10.2292 18.4812 10.343 10.2848 10 10.6663 10.3869 10.2471 10.2625 10.2724 10.0394 10.2643 10.2755 10.4209

27

952D 984G 341WD 966D 33D 952G 936D 512ID 404Q 982D 401A 303Q 971D 967D 312M 983D 602DD

Birla Sun Life Fixed Term Plan - Series Cn Dividend Bsl Short Term Fmp Series 18 Growth Birla Sun Life Short Term Opportunities Fund-retail-weekly Dividend Birla Sun Life Short Term Fmp Series 11 Dividend Birla Sun Life Income Fund - 54ea Dividend Reinvest Birla Sun Life Fixed Term Plan - Series Cn Growth Bsl Fixed Term Plan Series Ce - Dividend Bsl Floating Rate- Lt- Instl Dd Birla Sun Life Gilt Plus - Regular Quarterly Dividend Reinvest Birla Sun Life Short Term Fmp Series 16 Dividend Birla Sun Life Gilt Plus - Liquid - Annual Dividend Reinvest Bsl Medium Term Plan - Retail - Quarterly Dividend Reinvest Birla Sun Life Fixed Term Plan Series Cx Dividend Birla Sun Life Short Term Fmp Series 12 Dividend Birla Sun Life Mip Ii - Savings 5 Plan Monthly Dividend Reinvest Bsl Short Term Fmp Series 17 Dividend

24/06/2012 24/06/2012 24/06/2012 08/06/2012 11/02/2012 24/06/2012 24/06/2012 24/06/2012

10.36390 10.3639 10.00430 10.0043 10.01110 10.0111 10.00000 10 10.64570 10.6457 10.36390 10.3639 10.55100 10.551 10.00000 10 12.11710 12.1171 10.03940 10.0394 10.29820 10.2982 10.19910 10.1991 10.22630 10.2263 10.00000 10 11.26850 11.2685 10.03510 10.0351 28.11260 28.1126

10.3639 10.0043 9.9861 10 10.5925 10.3639 10.551 9.975 12.1171 10.0394 10.2982 10.1736 10.2263 10 11.1558 10.0351 28.1126

24/06/2012 24/06/2012 24/06/2012 11/02/2012 24/06/2012 15/06/2012 24/06/2012 24/06/2012

Birla Sun Life Asset Allocation Fund - 24/06/2012

28

Moderate Plan - Dividend Reinvest 963G 954G 968G 969G 948G 951G 601DD 951D 75D 964G 954D 512M 932G 957D 61D Bsl Capital Protection Oriented Fund Series 5 Growth Birla Sun Life Fixed Term Plan Series Co Growth Birla Sun Life Fixed Term Plan Series Cv Growth Birla Sun Life Short Term Fmp Series 13 Growth Bsl Capital Protection Oriented Fund Series 3-growth Birla Sun Life Short Term Fmp - Series 5 Growth Birla Sun Life Asset Allocation Fund Aggressive Plan - Dividend Reinvest Birla Sun Life Short Term Fmp - Series 5 Dividend Birla Sun Life Govt. Securities Short Term - Retail - Dividend Reinvest Birla Sun Life Fixed Term Plan Series Ct Growth Birla Sun Life Fixed Term Plan Series Co Dividend Birla Sun Life Floating Rate Fund - Retail Long Term - Monthly Dividend Reinvest Bsl Fixed Term Plan-series C B-growth Birla Sun Life Fixed Term Plan Series Cq Dividend Birla Sun Life Monthly Income - Monthly Dividend Reinvest 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 21/04/2012 24/06/2012 21/04/2012 11/02/2012 24/06/2012 24/06/2012 11/02/2012 24/06/2012 24/06/2012 24/06/2012 10.10620 10.1062 10.36960 10.3696 10.26250 10.2625 10.27240 10.2724 10.56720 10.5672 10.22710 10.2271 33.65690 33.6569 10.00000 10 10.20170 10.2017 10.30640 10.3064 10.12520 10.1252 10.58760 10.5876 10.97250 10.9725 10.34300 10.343 11.28770 11.2877 10.1062 10.3696 10.2625 10.2724 10.5672 10.2271 33.6569 10 10.2017 10.3064 10.1252 10.5611 10.9725 10.343 11.1748

29

61D 512IG 321Q 958D 956G 958G 321AP 964D 967G 966D 601DD 951D 75D 948G 951G

Birla Sun Life Monthly Income - Monthly Dividend Reinvest Bsl Floating Rate Fund Long Term Institutional Plan Growth Birla Sun Life Dynamic Bond Fund - Retail - Quarterly Dividend Reinvest Birla Sun Life Short Term Fmp Series 8 Dividend Birla Sun Life Fixed Term Plan Series Cp Growth Birla Sun Life Short Term Fmp Series 8 Growth Bsl Dynamic Bond Fund Discipline Advantage Plan Growth Birla Sun Life Fixed Term Plan Series Ct Dividend Birla Sun Life Short Term Fmp Series 12 Growth Birla Sun Life Short Term Fmp Series 11 Dividend Birla Sun Life Asset Allocation Fund Aggressive Plan - Dividend Reinvest Birla Sun Life Short Term Fmp - Series 5 Dividend Birla Sun Life Govt. Securities Short Term - Retail - Dividend Reinvest Bsl Capital Protection Oriented Fund Series 3-growth Birla Sun Life Short Term Fmp - Series 5 Growth

24/06/2012 24/06/2012 24/06/2012 19/05/2012 24/06/2012 19/05/2012 24/06/2012 24/06/2012 15/06/2012 08/06/2012 24/06/2012 21/04/2012 11/02/2012 24/06/2012 21/04/2012

11.28770 11.2877 11.81140 11.8114 11.48620 11.4862 10.00000 10 10.35500 10.355 10.24550 10.2455 11.53740 11.5374 10.30640 10.3064 10.24290 10.2429 10.00000 10 33.65690 33.6569 10.00000 10 10.20170 10.2017 10.56720 10.5672 10.22710 10.2271

11.1748 11.7819 11.4288 10 10.355 10.2455 11.4797 10.3064 10.2429 10 33.6569 10 10.2017 10.5672 10.2271

30

956D 37D 968D 62D 603DD 931G 954G 959G 970G 971G 301Q 965G 354G 984D 83D 977D 969D

Birla Sun Life Fixed Term Plan Series Cp Dividend Birla Sun Life Income Fund - Quarterly Dividend Reinvest Birla Sun Life Fixed Term Plan Series Cv Dividend Birla Sun Life Monthly Income - Quarterly Dividend Reinvest Birla Sun Life Asset Allocation Fund Conservative Plan - Dividend Reinvest Bsl Fixed Term Plan-series C A-growth Birla Sun Life Fixed Term Plan Series Cr Growth Birla Sun Life Fixed Term Plan Series Cw Growth Birla Sun Life Fixed Term Plan Series Cx Growth Birla Sun Life Income Plus - Quarterly Dividend Reinvest Birla Sun Life Fixed Term Plan Series Cu Growth Bsl Capital Protection Oriented Fund Series 2 Growth Bsl Short Term Fmp Series 18 Dividend Birla Sun Life Short Term Fund - Retail Monthly Dividend Reinvest Birla Sun Life Fixed Term Series Db Dividend

24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 08/06/2012

10.35500 10.355 11.33700 11.337 10.26250 10.2625 11.91260 11.9126 20.87820 20.8782 10.93220 10.9322 10.36960 10.3696 10.33270 10.3327 10.26430 10.2643 10.22630 10.2263 11.92600 11.926 10.27230 10.2723 10.14740 10.1474 10.00430 10.0043 10.80680 10.8068 10.10310 10.1031 10.11520 10.1152

10.355 11.2803 10.2625 11.7935 20.8782 10.9322 10.3696 10.3327 10.2643 10.2263 11.8962 10.2723 10.1474 10.0043 10.7798 10.1031 10.1152

Birla Sun Life Fixed Term Plan Co Grwth 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 11/02/2012 24/06/2012

Birla Sun Life Short Term Fmp Series 13 24/06/2012

31

Dividend 341IW 961G 983G 77D 934G 341Q 404A 303F 965D 949G 961D 311M Birla Sun Life Short Term Opportunities Fund-instl-weekly Dividend Birla Sun Life Fixed Term Plan Series Cs Growth Bsl Short Term Fmp Series 17 Growth Birla Sun Life Govt. Securities Long Term Dividend Reinvest Bsl Fixed Term Plan Series Cd - Growth Birla Sun Life Short Term Opportunities Fund-retail Dividend Reinvest Birla Sun Life Gilt Plus - Regular - Annual Dividend Reinvest Bsl Medium Term Plan -retail- Fortnightly Dividend Reinvest Birla Sun Life Fixed Term Plan Series Cu Dividend Bsl Capital Protection Oriented Fund Series 4-growth Birla Sun Life Fixed Term Plan Series Cs Dividend Birla Sun Life Mip - Monthly Dividend Reinvest 24/06/2012 24/06/2012 24/06/2012 24/06/2012 05/04/2012 24/06/2012 11/02/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 10.01110 10.0111 10.30220 10.3022 10.03510 10.0351 11.36880 11.3688 10.66630 10.6663 10.51060 10.5106 23.75520 23.7552 10.22730 10.2273 10.27230 10.2723 10.36900 10.369 10.30220 10.3022 11.29460 11.2946 9.9861 10.3022 10.0351 11.3688 10.6663 10.4843 23.7552 10.2017 10.2723 10.369 10.3022 11.2664

CASH Scheme Code 513G NAV (Rs.) Subscription Price Redemption Price 13.2748

Scheme Name Birla Sun Life Floating Rate Fund - Short Term - Ip Growth

NAV Date 26/06/2012

13.27480 13.2748

32

513DD 513FD 513WD 501DD 501G 502DD 502WD 502FD 502G 503DD 503WD 503FD 503MD 503G 504DD 511DD

Birla Sun Life Floating Rate Fund - Short Term - Ip - Daily Dividend Birla Sun Life Floating Rate Fund - Short Term - Ip - Fortnightly Dividend Birla Sun Life Floating Rate Fund - Short Term - Ip - Weekly Dividend Birla Sun Life Cash Plus - Retail- Daily Dividend Birla Sun Life Cash Plus - Retail Growth Birla Sun Life Cash Plus - Institutional Plan - Daily Dividend Birla Sun Life Cash Plus - Institutional Plan - Weekly Dividend Birla Sun Life Cash Plus - Institutional Plan - Fortnightly Dividend Birla Sun Life Cash Plus - Institutional Plan Growth Birla Sun Life Cash Plus - Institutional Premium Plan - Daily Dividend Birla Sun Life Cash Plus - Institutional Premium Plan - Weekly Dividend Birla Sun Life Cash Plus - Institutional Premium Plan - Fortnightly Dividend Birla Sun Life Cash Plus - Institutional Premium Plan - Monthly Dividend Birla Sun Life Cash Plus - Institutional Premium Plan Growth Birla Sun Life Cash Plus Sweep Plan Dividend

26/06/2012 11/02/2012 26/06/2012 26/06/2012 26/06/2012 26/06/2012 26/06/2012 11/02/2012 26/06/2012 26/06/2012 26/06/2012 11/02/2012 11/02/2012 26/06/2012 07/05/2011

10.00200 10.002 10.00000 10 10.01260 10.0126 16.36940 16.3694 26.41360 26.4136 10.80230 10.8023 10.81180 10.8118 10.82100 10.821 26.91620 26.9162 10.01950 10.0195 10.02720 10.0272 10.00000 10 10.00000 10 16.01920 16.0192 10.11750 10.1175 10.00150 10.0015

10.002 10 10.0126 16.3694 26.4136 10.8023 10.8118 10.821 26.9162 10.0195 10.0272 10 10 16.0192 10.1175 10.0015

Birla Sun Life Floating Rate Fund - Short 26/06/2012

33

Term Plan - Daily Dividend 511G 511WD 44 43 47 45 46 977G Birla Sun Life Floating Rate Fund - Short Term Plan Growth Birla Sun Life Floating Rate Fund - Short Term Plan - Weekly Dividend Birla Sun Life Cash Manager - Weekly Dividend Birla Sun Life Cash Manager - Growth Birla Sun Life Cash Manager - Institutional Daily Dividend Birla Sun Life Cash Manager - Institutional Weekly Dividend Birla Sun Life Cash Manager - Institutional Plan Growth Birla Sun Life Fixed Term Series Db Growth 26/06/2012 26/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 24/06/2012 16.47310 16.4731 10.37970 10.3797 10.00950 10.0095 24.31630 24.3163 10.00300 10.003 10.00990 10.0099 16.76430 16.7643 10.10310 10.1031 16.4731 10.3797 10.0095 24.3163 10.003 10.0099 16.7643 10.1031

FMP Scheme Code 854D 846D 851D 846G 824D 851G Scheme Name Birla Fixed Term Plan-quarterly Series 18dividend Birla Ftp - Quarterly Series 14-dividend Birla Fixed Term Plan-24 Months-dividendretail Birla Ftp-quarterly-series 14-growth Birla Fixed Term Plan-24 Months-growthretail NAV Date 13/09/2008 06/08/2008 10/06/2010 06/08/2008 NAV (Rs.) Subscription Price Redemption Price 9.95 9.95 9.6 10.2067 10.7392 11.5834

10.00000 0 10.00000 0 10.00000 0 10.25800 0 11.18670 0 12.06600 0

Birla Fixed Term Plan - Series P - Dividend 08/05/2009 10/06/2010

34

847D 853D 893RG 872D 856G 847G 854G 906RD 906IG 906ID 910IG 853G 890G 890D 877G 857G 857D 906RG 893IG

Birla Ftp-quarterly Series 15-dividend Birla Fixed Term Plan-quarterly Series 17dividend Birla Ftp Retail Series Aj - Growth Birla Sun Life Fixed Term Plan-series Ac Institutional-dividend Birla Fixed Term Plan-retail-series X Growth Birla Ftp -quarterly-series 15-growth Birla Fixed Term Plan-quarterly Series 18growth Birla Ftp Retail Series Au Dividend Birla Ftp Instl Series Au Growth Birla Ftp Instl Series Au Dividend Birla Ftp Instl Series Ay Growth Birla Fixed Term Plan-quarterly Series 17growth Birla Sun Life Quarterly Interval Fundseries 5- Growth Birla Sun Life Quarterly Interval Fundseries 5-dividend Birla Sun Life Interval Income Fund-retailmonthly Plan-series I-growth Birla Sun Life Fixed Term Plan-instl-series X Dividend Birla Sun Life Fixed Term Plan-instl- Series X Dividend Birla Ftp Retail Series Au Growth Birla Ftp Instl Series Aj Growth

16/08/2008 06/09/2008 28/04/2010 10/10/2009 07/07/2009 16/08/2008 13/09/2008 14/05/2010 14/05/2010 14/05/2010 03/07/2010 06/09/2010 06/01/2011 06/01/2011 16/11/2010 07/07/2009 07/07/2009 14/05/2010 28/04/2011

10.00000 0 10.00000 0 11.11700 0 10.00000 0 10.91790 0 10.24780 0 10.22120 0 10.00000 10 10.94000 10.94 10.00000 10 11.02690 0 10.21990 0 11.92750 11.9275 10.00000 10 11.45240 11.4524 10.96060 0 10.00000 0 10.92120 10.9212 11.15270 0

9.95 9.95 10.8947 9.6 10.5904 10.1966 10.1701 9.8 10.7212 9.8 10.8064 10.1688 11.8082 9.9 11.3951 10.6318 9.7 10.7028 10.9296

35

AAF Scheme Code 881G NAV (Rs.) Subscription Redemption Price Price 10.7924

Scheme Name Birla Sun Life Fixed Term Plan -retailseries Ae- Growth Birla Sun Life Fixed Term Plan -instl-series Ae- Dividend Birla Sun Life Fixed Term Plan -instl-series Ae- Growth Birla Sun Life Quarterly Interval Fund Series 1-growth Birla Fixed Term Plan-retail-series Aagrowth Birla Sun Life Fixed Term Plan-instl-series Aa-growth Birla Sun Life Cash Plus-discipline

NAV Date

20/04/2010

11.24210 0

882D

20/04/2010

10.00000 0

9.6

882G

20/04/2010

11.29080 0

10.8392

883RG

02/06/2010

11.31200 11.312

11.1989

861G

26/08/2009

10.89870 0

10.4628

862G

26/08/2010

10.94290 0

10.5052

501AP

Advantage Fund Birla Sun Life Short Term Fund-discipline Advantage Fund

26/06/2012

11.05340 11.0534

11.0534

83AP 862D

24/06/2012

11.21610 11.2161 10.00000 0

11.1881 9.6

Birla Sun Life Fixed Term Plan-instl-series 26/08/2009

36

Aa-dividend 878G Birla Sun Life Interval Income Fundinstitutional-monthly Plan-series I-growth Birla Sun Life Quarterly Interval Fund Series 1-dividend Birla Fixed Term Plan-retail-series Aadividend Birla Sun Life Quarterly Interval Fund Series 2-dividend Birla Sun Life Quarterly Interval Fund Series 2 growth Birla Sun Life Asset Allocation Fund Aggressive Plan Dividend Birla Sun Life Asset Allocation Fund Aggressive Plan Growth Birla Sun Life Asset Allocation Fund Conservative Plan Dividend Birla Sun Life Asset Allocation Fund Conservative Plan Growth Birla Sun Life Asset Allocation Fund Moderate Plan Dividend Birla Sun Life Asset Allocation Fund Moderate Plan Growth 16/10/2010 11.42830 11.4283 11.3712

883RD

02/06/2010

10.00000 10

9.9

861D

26/08/2009

10.00000 0

9.6

884RD

27/11/2010

10.00000 10

9.9

884RG

27/11/2010

11.50310 11.5031

11.3881

601D

24/06/2012

33.65690 33.6569

33.6569

601G

24/06/2012

33.65690 33.6569

33.6569

603D

24/06/2012

20.87820 20.8782

20.8782

603G

24/06/2012

20.87820 20.8782

20.8782

602D

24/06/2012

28.11260 28.1126

28.1126

602G 331AP

24/06/2012

28.11260 28.1126 11.10690 11.1069

28.1126 11.1069

Birla Sun Life Savings Fund - Discipline 24/06/2012

37

Advantage Plan

LAYOUT OF THE FACILITY:

Mobile Investment facility: Birla Sun Life Mutual Fund (BSLMF) is offering a facility to its customers for management of their portfolio investments on the move via their mobile phones. BSLMF has launched a new platform called Mobile Investment Manager in partnership with MCHEK India Payment Systems Pvt. Ltd (mChek). This service will be available to existing Birla Sun Life customers and can be used for accessing portfolio information, making additional purchases, registering for SIPs and also for switches and redemptions. Online investment facility: Birla Sun life Mutual Fund introduces the online investment facility. This would help to invest your funds through Click of a Mouse. The Step by Step demo for investing online is available to guide to invest.

38

Dividend sweep facility: Birla Sun Life Mutual Fund has announced the introduction of Dividend Sweep Facility. Under the facility, one can opt for switching the dividend earned under Open ended Debt Schemes into any other Open Ended Equity or Balanced Scheme of the fund.

Systematic investment plan facility: SIP allows investors to invest small amounts of money in schemes of Birla Sun Life Mutual Fund on a regular basis

Systematic transfer plan facility: STP allows the Investors to invest by transfer of a fixed amount from any of the following schemes to any open ended scheme of Birla Sun Life Mutual Fund. Since the amount is fixed per month the investor gets the benefit of Rupee Cost Averaging.

Systematic withdrawal plan facility: A Systematic Withdrawal Plan (SWP) is a financial plan that allows an investor to withdraw money from an existing mutual fund portfolio at predetermined intervals

Electronic clearance system facility: Our Electronic Clearance System (ECS) is one of our many initiatives of making financial planning a simple and hassle-free undertaking for you.

QUALITY CONTROL:
BSLAMC follows a long term approach to investment, which is based on identifying companies that have good credit-worthiness & are fundamentally strong. It places emphasis on quality of management & risk control. This is done through extensive analysis that includes factory visits & field research. It has one of the largest team of research analysis in the industry.

PRESENT AND FUTURE OF THE COMPANY:

1) Birla sun life asset management company ltd joint venture with Aditya Birla group currently they are in 6th position in a financial industry in India.

39

2) 3)

Birla Sun Life Mutual Fund follows a conservative long-term approach to investment. Recently it crossed AUM of Rs. 10,000 cores.100% growths in the last 6 years. Numbers of foreign AMCs are in the queue to enter the Indian markets like Fidelity Investments, US based, with over US$1trillionassets under management worldwide.

4) Our saving rate is over 23%, highest in the world. Only canalizing these savings in mutual funds sector is required. 5) In future they want to introduce more number of open ended and close ended Schemes to become competitive in the market and to increase there market Share. 6) December 2007, Indian mutual fund industry reached Rs 1, 50,537 7) It is estimated that by 2010 March-end, the total assets of all Scheduled commercial banks should be Rs 40, 90,000 cores. 8) The annual composite rate of growth is expected 13.4% during the Rest of the decade. 9) In the last 5 years we have seen annual growth rate of 9%. 10) According to the current growth rate, by year 2010, mutual fund Assets will be double.10. End of 2007- Mutual fund industry had assets under management of Rs.1, 50,537 cores.

4) MARKETING
AREA OF OPERATION:
BSLAMC is working in mutual funds means their main area of operation is mutual fund. A mutual fund is professionally managed type of collective investment scheme that pools money from many investors typically in investment securities.

MAJOR COMPETITORS:
1. Reliance mutual fund

40

2. ICICI mutual fund 3. UTI mutual fund 4. HDFC mutual fund

MARKET SHARE:
Birla sun life asset Management Company having 10.33% market Share.

Market share of asset management companies

OUTLETS IN COUNTRY: Today BSLAMC is present in 152 locations, including 32

branches. They have branches in major cities like Mumbai, Nagpur, Calcutta, etc.

COMPANY STRATEGY:
1. Pricing strategy:-In the mutual fund pricing strategy is very simple & easy to understand. In the case of mutual fund there are two funds are available open ended & close ended. The cost of this two type of fund is fixed open ended Rs.5000 & close ended fund Rs.3000. in the case of BSLAMC they have fixed Pricing strategies. They provide installment facility also. 2. Marketing strategy:-BSLAMC is one of the reputed companies in asset management only because of there marketing strategy they reached at this level. There marketing strategy is

41

very simple o understand. BSLAMC is joint venture with ADITY BIRLA GROUP. They used this tie up links for there marketing strategy.
3. Promotion strategy;- They give there advertisements on T.V. ,hording &banner. They use their links for this purpose.

STRENGTHS OF THE ORGANISATION:

Excellent is next to nothingand here at Birla everybody tries their best to offer excellent services through its offerings maintaining the Birla culture which includes: a) Controlled and low cost service culture: maximization of avoidable cost. b) Large volume processing capability: Being the largest financial service provider in the country, it has the unique distinction of operating its activities on a large scale which benefits all the parties cordially. c) Adherence to strict time schedule: Birla knows that time is money and tries it best to finish the task with in the stipulated time schedule. d) Expertise in coordinating multi-location responses: Birla has got a wide network and hence one can find its branches at most of the places in India. Thus it enjoys its presence everywhere and coordinates among itself in solving the queries and in responding to any situation. e) Expertise in managing independent entities such as banks, post- office etc: The work culture of Birla and the ethics followed inside Birla makes its workforce compatible with everybody. f) Pooling of group resources: Birla group consist of eight subsidiaries, so it can easily pool up its resources for accomplishment of its goals, whenever needed. The groups can help each other whenever there are peaks and lows, and even in the case when they have huge targets just we saw a few year back, Tata group pooling its resources to acquire corus.
42

Birla is there to serve its client at the

minimum possible cost. It controls its cost by various cost cutting techniques and

OTHERS:
KEY PERSONNELS:

SENIOR MANANGEMNET: Mr. A Bal Subramanian, Chief Executive Officer BSLAMC, Mr. Navin Tewari, Head-Sales and Customer Engagement BSLAMC, Mr. Sarb Preet Singh, Head Institutional Sales BSLAMC, Mr. Ashok Suvarna, COO BSLAMC, Mr. Manoj Kumar Gandhi, Head Finance and Strategy BSLAMC, Ms. Rama Vasantharajan - Head-Compliance & Risk Management BSLAMC, Mr. Rajesh Srivastava - Head Human Resources, BSLAMC Mr. Rahul Parikh, Head Business Development BSLAMC, Mr. Rahul Parikh, Head Business Development BSLAMC, Ms. Molly Kapoor, Head Customer Service BSLAMC Mr. Bhavdeep Bhatt, Head Products BSLAMC Mr. Rajiv Joshi, Head - Legal, Compliance and Secretarial BSLAMC, Mr. Thrivikram Iyer, Head Risk Management BSLAMC Mr. Maneesh Dangi - Head - Fixed Income, Mr. Mahesh Patil - Head Equity - Domestic Assets Mr. Satyabrata Mohanty - Head Mixed Assets, Mr. Ajay Argal - Head Equity Offshore

BOARD OF DIRECTORS:
Birla Sun Life Trustee Company Pvt Ltd: Mr. Prafull Anubhai (Independent Director) 72 years / B.Com, B.Sc. (Econ.) from London School of Economics Mr. Gurcharan Das (Independent Director) 66 years / Graduated with honors from Harvard University and later attended Harvard Business School (AMP)

43

Dr. V.Arunachalam (Independent Director) 66 years / Graduated with honors from Harvard University and later attended Harvard Business School (AMP) Mr. Suresh Talwar (Associate Director) 72 years / B.Com., LL.B., Solicitor & Advocate Mr. B.N.Puranmalka (Associate Director) 74 years / F.C.A., F.C.S., LL.B Birla Sun Life Asset Management Company Ltd: Mr. Kumar Mangalam Birla (Associate Director & Chairman) 43 years / C.A., M.B.A. (London Business School) Mr. Ajay Srinivasan (Associate Director) 46 years / B.A. Economics (Hons.), PGDM, IIM -Ahmedabad Mr. Ashok Goenka (Independent Director) 79 years / B.A. (Hons), M.B.A.(Wharton School, University Of Pennsylvania, USA) Mr. S.S. Raman (Independent Director) 73 years / B.Com (Hons.), C.A., Post Graduate in Business Management Mr. Donald Stewart (Associate Director) 63 years / FIA, FCIA Mr. N.N.Jambusaria (Independent Director 76 years / M. Com, Fellow of the Institute of Actuaries, London. F.A.S.I. (Fellow of the Actuarial Society of India) Mr. N.C.Singhal (Independent Director) 73 years / Postgraduate in Economics, Statistics and Administration. He has received professional education from institutes like IIM (Ahmedabad, Calcutta), IIT Kanpur, and ISI Calcutta Mr. Dikran Ohannessian (Associate Director) 57 yrs / Fellow of the Society of Actuaries and the Canadian Institute of Actuaries. Mr. Sandeep Asthana (Associate Director) 43 years / B. Tech from IIT Mumbai, MBA from IIM Lucknow. Mr. Ravindra Chandra Bhargava (Independent Director) 76 years / Msc, MA (Dev. Economics)

44

Mr. R Vaidyanathan (Independent Director) 58 years / M. Stat, PhD in Finance Mr. Pankaj Razdan (Associate Director) 42 years / B.Tech (Electronics), B.SC (Electronics)

AWARDS:
ICRA Mutual Fund Awards 2010 - 2011

BSL Government Security Fund - Long Term won 7 Staraward in the Open ended Gilt category for its one year performance

BSL Dynamic Bond Fund - Retail won 5 Star award in the Open ended Debt short term category for its 3 year performance

BSL MNC Fund won two 5 star awards for its one year and three year performance respectively in the Open ended diversified Equity defensive category

BSL Dividend Yield Plus won 5 star awards for its one year performance in the Open ended diversified Equity aggresive category and another 5 star award for its three year performance in the Open ended diversified Equity defensive category.

Outlook Money Awards 2010 - 2011

Best Debt Fund House Best Fund House - Runner's up

MUTUAL FUNDS:
WHAT ARE MUTUAL FUNDS?
A mutual fund is a managed group of owned securities of several corporations. These corporations receive dividends on the shares that they hold and realize capital gains or losses on their securities traded. Investors purchase shares in the mutual fund as if it was an individual security.

45

After paying operating costs, the earnings (dividends, capital gains or losses) of the mutual fund are distributed to the investors, in proportion to the amount of money invested. Investors hope that a loss on one holding will be made up by a gain on another. Heeding the adage "Don't put all your eggs in one basket" the holders of mutual fund shares are able collectively to gain the advantage by diversifying their investments, which might be beyond their financial means individually. A mutual fund may be either an open-end or a closed-end fund. An open-end mutual fund does not have a set number of shares; it may be considered as a fluid capital stock. The number of shares changes as investors buys or sell their shares. Investors are able to buy and sell their shares of the company at any time for a market price. However the open-end market price is influenced greatly by the fund managers. On the other hand, closed-end mutual fund has a fixed number of shares and the value of the shares fluctuates with the market. But with close-end funds, the fund manager has less influence because the price of the underlining owned securities has greater influence.

FOUR PHASES OF MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust India, at the initiative of the Government of India and Reserve Bank. The history of mutual funds in India can be broadly divided into four distinct phases: FIRST PHASE 1964-87: Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the reserve bank of India. In 1987 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 Crores of assets under management. SECOND PHASE 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS) : 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund

46

was the first non- UTI Mutual Fund established in June 1987 followed by the following. At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores. THIRD PHASE-1993-2003(ENTRY OF PRIVATE SECTOR FUNDS) : With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 cores. The Unit Trust of India with Rs.44, 541 Crores of assets under management was way ahead of other mutual funds. FOURTH PHASE-SINCE FEBRURARY 2003: In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29, 835 Crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.

HISTORY OF MUTUAL FUNDS

History of Mutual Funds has evolved over the years and it is sure to appear as something very interesting for all the investors of the world. In present world, mutual funds have become a main form of investment because of its diversified and liquid features. Not only in the developed world, but in the developing countries also different types of mutual funds are gaining popularity very fast in a tremendous way. But, there was a time when the concept of Mutual Funds was not present in the economy. There is an ambiguity about the fact that when and where the Mutual Fund Concept was introduced for the first time. According to some historians, the mutual funds were first
47

introduced in Netherlands in 1822. But according to some other belief, the idea of Mutual Fund first came from a Dutch Merchant ling back in 1774. In 1822, that idea was further developed. In 1822, the concept of Investment Diversification was properly incorporated in the mutual funds. In fact, the Investment Diversification is the main attraction of mutual funds as the small investors are also able to allocate their little Funds in a diversified way to lower Risks. After 1822 in Netherlands, the Mutual Funds Concept came in Switzerland in 1849 and thereafter in Scotland in the 1880s. After being popular in Great Britain and France, Mutual fund concept traveled to U.S.A in the 1890s. In 1920s and 1930s, the Mutual Fund popularity reached a new high. There was record investment done in mutual funds. But, before 1920s, the mutual funds were not like the modern day mutual funds. The modern day mutual funds came into existence in 1924, in Boston. Massachusetts Investors Trust introduced the Modern Mutual Funds and the funds were available from 1928. At present this Massachusetts Investors Trust is known as MFS Investment Management Company. After the glorious year of 1928, Mutual fund ideas expanded to different levels and different regulations came for well functioning of the funds. Still today, the funds are evolving and improving in order to offer people much wider choices and better advantages for fulfillment of their various investment needs and financial objectives.

BRIEF DESCRIPTION OF MUTUAL FUNDS:

Mutual Fund is a mechanism for pooling the resources by issuing units to the investors and investing in securities in accordance with objective as disclosed in the offer document. Mutual funds are money-managing institutions set up to professionally invest the money pooled in from the public. These schemes are managed by Asset Management Companies (AMC), which are sponsored by different financial institutions or companies. Each unit of these schemes reflects the share of investor in the respective fund and its appreciation is judged by the Net Asset Value (NAV) of the scheme. The NAV is directly linked
48

to the bullish and bearish trends of the markets as the pooled money is invested either inequity shares or in debentures or treasury bills. Indian Mutual Funds unveils this multidimensional avenue, with its intricacies, in a fashionable manner as mutual funds up-hold ample scope of generating decent returns by some thoughtful investment. The flow chart below describes broadly the working of a mutual fund:

ORGANISATION OF MUTUAL FUND:

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

49

TYPES OF MUTUAL FUNDS:

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry. 1. By Structure a. Open - Ended Schemes b. Close - Ended Schemes c. Interval Schemes 2. By Investment Objective a. Growth Schemes b. Income Schemes c. Balanced Schemes d. Money Market Schemes 3. Other Schemes

50

a. Tax Saving Schemes b. Special Schemes i. Index Schemes

ii. Sector Specific Schemes

Advantages & Disadvantages of Mutual Fund

The advantages of investing in a Mutual Fund are: 1. Professional Management 2. Diversification 3. Convenient Administration 4. Return Potential 5. Low Costs 6. Liquidity 7. Transparency 8. Flexibility 9. Choice of schemes 10. Tax benefits 11. Well regulated The disadvantages of investing in a Mutual Fund are: 1. Cost control not in the hands of an investor 2. Mutual Funds Have Hidden Fees 3. Mutual Funds Have High Sales Charges 4. Mutual Funds and Poor Trade Execution 5. All Mutual Funds Have High Capital Gains Distributions.

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6. Mutual Funds Lack Liquidity

INTRODUCTION OF TOPIC:
LIQUID FUND
There are two categories of funds that have caught the imagination of investors these days -liquid and liquid-plus funds. Though, at present, most of the money in these funds comes from institutional investors, the retail investor is slowly beginning to realize their benefits. These funds can prove to be useful for the retail investor to manage their short-term surpluses. Liquid funds are used primarily as an alternative to short-term fix deposits. Liquid funds invest with minimal risk (like money market funds). Most funds have a lock-in period of a maximum of three days to protect against procedural (primarily banking) glitches, and offer redemption proceeds within 24 hours. The minimum investment size in a liquid fund varies from Rs. 25,000 to Rs 1 lakh. Liquid funds invest in short-term debt instruments with maturities of less than one year. Therefore, they invest in money market instruments, short-term corporate deposits and treasury. The maturity of instruments held is between three and six months. A liquid fund provides good liquidity, low interest rate risk and the prevailing yield in the market. Liquid funds have the restriction that they can only have 10 per cent or less mark-to-market component, indicating a lower interest rate risk. Liquid funds have an exit load if the investor redeems before the lock-in period. But in most cases, the lock-in period is quite low - varying from 7 to 10 days. Liquid funds score over short term fix deposits. Banks give a fixed rate in the range 5%-5.5% p.a. for a term of 15-30 days. Returns from deposits are taxable depending on the tax bracket of the investor, which considerably pulls down the actual return. Dividends from liquid funds are tax-free in the hands of investor, which is why they are more attractive than deposits. The sole disadvantage liquid funds are that investors cannot take the advantage of higher returns being offered by long-term instruments.

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In the last one year, liquid funds have returned between 7.7 per cent and 8.85 per cent. Liquidplus funds, on the other hand, have slightly higher returns between 8.4 and 11.29 per cent. Obviously, that makes them a better choice as against money earning a dismal 3-3.5 per cent in your savings account. Let us look at these two options in detail. 1. LIQUID FUNDS: These funds invest in short-term debt instruments with maturities of less

than one year. A liquid fund would normally provide good liquidity, low interest rate risk and the prevailing yield in the market. Therefore, they invest in money market instruments, short-term corporate deposits and treasury. The maturity of instruments held is between three and six months. Liquid funds have the restriction that they can only have 10 per cent or less mark-tomarket component, indicating a lower interest rate risk. As far as costs go, they have an exit load, if the investor redeems before the lock-in period. But these periods are rather low -- in most cases, around 7-10 days. The only disadvantage liquid funds has is that investors cannot take the advantage of higher returns being offered by long-term instruments. But the biggest benefit is that though the returns are lower, the risk is nominal, making it an ideal instrument for parking short-term funds. 2. LIQUID-PLUS FUNDS: These funds were launched to cater to those with a stomach for slightly higher risk, and as a result higher returns. A typical liquid-plus fund will have similar investments like a liquid fund, but around 30 per cent of the corpus is invested in instruments with longer maturity period. They do not have any restriction on the mark-to-market component (liquid funds can have only up to 10 per cent) and there is no lock-in period for the liquid-plus funds category. Also, liquidplus funds are a hit as they are more tax-efficient. The dividend distribution tax works out to 14.16 per cent as against 28.33 per cent for liquid funds. As it can been seen, the positioning of these two categories is quite different. That is, they provide an option between short-term liquid funds and other long-term debt funds. They are, hence, attractive for those who want a slightly higher return without going all the way with only higher tenure investment options.

53

Though the performance of these two funds is similar, in a rising interest rate regime, long-term maturity papers are observed to be riskier and their value reduces. This leads to loss of returns of liquid-plus funds. In the recent times, tough market conditions and the fear in investors have hit the assets under management of both these funds. Especially, corporate investors have been cautious. This has led to a negative impact of the expense ratio on the returns. As the tax treatment of liquid-plus funds is better, they would still outperform, considering the net-of-tax parameter. This is why retail investors can consider this as a more sensible option, albeit at higher risk, to invest their money in the short term

DIFFERENCE BETWEEN LIQUID FUND AND LIQUID PLUS FUND

The main difference between pure liquid and liquid plus funds is the tenure of the securities held. The instruments held by liquid plus funds have a longer tenure than liquid funds. In terms of tax implications, there is a dividend distribution tax of 28.33% on liquid funds, whereas 14.16% is levied on liquid plus funds (in case of individual investors).

ADVANTAGES OF LIQUID FUND

A lucrative means of parking money for the short term and earning reasonable returns is to invest in liquid funds. Liquid funds have no entry and exit loads in most cases. Liquidation is easy. Investors can liquidate at an NAV (net asset value) which they consider to be lucrative, as against a normal mutual fund where an NAV just has a notional value.

WHY TO INVEST IN A LIQUID FUND?

54

The main reason for investing in Liquid funds should be Liquidity factor; these funds are most liquid and least volatile... So if you need to have liquidity in your portfolio, always invest some money in Liquid funds, any extra money lying in your Saving Account above your 1 month requirement should be in Liquid fund.

TAX EFFICIENCY:
Dividends from liquid funds are tax-free in the hands of investor, which is why they are more attractive than deposits. Returns from deposits are taxable depending on the tax bracket of the investor, which considerably pulls down the actual return (unless of course the interest earned does not exceed the 80 L limit). Let's take an example of two investors `A' and `B' who invest in fixed deposit and Liquid fund respectively. Both are in the highest tax bracket and invest for a tenure of 30 days.`A' makes a deposit of Rs 500,000 in HDFC Bank at the rate of 5% p.a. for a tenure of 30 days and `B' invests in `Birla sun life (I) Liquid fund' for the same period and amount. A's investment HDFC Bank Investment *Return (y) Tax paid (30.6%) (z) Actual return (y-z) (Return is considered @ of 5% p.a. for 30 days) B's investment BSL Liquid Fund (Dividend) Amount (Rs) Investment *Return (y) Tax paid (30.6%) (z) Actual return (y-z) 500,000 2,000 2,000 Amount (Rs) 500,000 2,000 612 1,388

Return on Investment (30 days) 0.28%

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Return on Investment (30 days) 0.40% (*Return is considered on the dividend declared in last 30 days) The above example shows that B gains more than A when tax is taken into consideration.

LIQUIDITY:
Deposits marginally score over liquid funds as far as liquidity is concerned. In bank deposits the investor's bank account is credited as soon as his FDR (fixed deposit receipt) is surrendered to the bank. However, in case of liquid funds the investor has to give a redemption request to the fund within the cut off time to receive that days NAV and the Cheque is issued to him on the next working day. However, some funds give the facility of crediting the investor's bank account e.g. BSL gives this facility to the HDFC bank account holders. Factoring in all these factors, liquid funds do emerge as a better option as compared to fixed deposits. However, while investing money in these funds investors need to carefully evaluate the fund's performance. There is a possibility that liquid funds may not deliver in terms of expected returns owing to market factors. Therefore, if you have Rs 100 to invest, you should probably split the money between a liquid fund and a fixed deposit. A recent study conducted by Crisil Fund Services has pronounced liquid funds, an attractive alternative to retail investors for parking funds lying idle in their savings bank accounts. Reason: they offer higher post-tax returns, are liquid and provide a reasonable degree of safety in terms of the principal invested. Over the last 5 years, liquid funds (Crisil Fund Rank 1 index for liquid funds) have given an annualized post-tax return of 5.78% as compared to 2.5% given by a savings bank account. Despite this disparity in returns, a majority of Indians continue to park a large amount of funds in savings bank accounts. As of March 31, 2010, money in such accounts in scheduled commercial banks stood at Rs 11.36 trillion. According to Mukesh Agarwal, senior director, Crisil Research: "Beyond returns, liquid funds also have advantages in terms of liquidity, safety and portability. They can be redeemed within 24 hours and have no exit load. Further, liquid funds invest in securities with a maximum

56

maturity of 91 days, which cuts down the credit risk. Most liquid fund schemes are also highly rated (P1+f), signifying very strong protection against losses from credit defaults." Within liquid funds the dividend option is more tax-efficient. This option would be more suitable for investors who fall within the 20 and 30% tax brackets, as it attracts a lower dividend distribution tax of 12.5%. Post tax deductions, liquid funds yield better returns as compared to savings accounts and fixed deposits, wherein the interest earned would be taxed based on an individual's tax slab Tarun Bhatia, director, capital markets, Crisil Research, added: "It is important to note that liquid funds are not totally risk-free and an investor must carry out basic checks before investing. Factors such as the fund house and the scheme vintage, overall assets under management (AUM) of the mutual fund, consistent performance over a longer period and comparison of the scheme with appropriate benchmarks can be looked at for selecting the right fund

BIRLA SUN LIFE LIQUID FUNDS:

Scheme Name Birla Sun Life Cash Plus Inst Premium (Div-D) Birla Sun Life Cash Plus Inst Premium (G) Birla Sun Life Cash Plus Inst (Div-D) Birla Sun Life Cash Plus Inst Premium (Div-W) Birla Sun Life Cash Plus Inst (G) Birla Sun Life Cash Plus Retail (Div-D) Birla Sun Life Cash Plus Inst (Div-W)

1m % 3m % 9.0 8.6 8.0 6.5 8.2 8.3 6.3 9.2 8.8 8.6 8.1 8.6 8.7 7.9

1y % 7.9 7.8 7.7 7.6 7.4 7.3 7.3

Asset Date: 25-Jun-2012 3y Fund Size (Rs. % Cr) 6.9 6.7 6.4 6.7 6.3 5.9 6.3 6,801 6,801 6,801 6,801 6,801 6,801 6,801

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Birla Sun Life Cash Plus Retail (G) Birla Sun Life Cash Plus (Discpln Advats Plan)

8.1 7.8

8.4 8.0

7.2 6.8

6.0 NA

6,801 6,801

TOP LIQUID FUNDS:

Ranked on the basis of their performance (%) as on Jul 22, 2011. Click on 'Time Period' to rank funds on a particular period of your choice

Performance
RANK SCHEME NAME Escorts Liquid Plan - Growth Sahara Liquid Fund - VP - Growth SBI Magnum Insta Cash Fund Liquid Floater - Growth Sahara Liquid Fund - Fixed Pricing Option - Growth IDFC Liquid Fund - Plan A - Growth JM High Liquidity - Growth Kotak Floater - ST - Growth Quantum Liquid Fund - Growth IDBI Liquid Fund - Growth Baroda Pioneer Liquid Fund Growth Reliance Liquidity Fund - Growth IDFC Liquid Fund - Plan D - Growth PRINCIPAL Cash Mgmt Fund Growth DATE 1month 3month 6month 1Yr 6Yrs

1 2 3 4 5 6 7 8 9 10 11 12 13

Jul 22, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011

0.82 0.74 0.71 0.74 0.75 0.73 0.72 0.69 0.72 0.73 0.72 0.73 0.72

2.52 2.22 2.17 2.20 2.16 2.18 2.17 2.15 2.15 2.17 2.16 2.11 2.15

5.04 4.54 4.33 4.50 4.57 4.28 4.36 4.24 4.23 4.25 4.29 4.47 4.25

9.34 8.06 8.02 8.01 7.94 7.90 7.87 7.84 7.78 7.78 7.75 7.75 7.71

7.89 7.25 6.63 7.16 6.16 6.58 6.37 6.64 N/A 6.16 6.71 N/A 6.51

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14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

HDFC Cash Mgmt Fund - Savings Plan - Growth SBI Magnum Insta Cash - Cash Plan Daiwa Liquid Fund - Ret - Growth Axis Liquid Fund - Ret - Growth Taurus Liquid Fund - Growth BNP Paribas Overnight Fund Growth DSP BlackRock Liquidity Fund Regular Plan - Growth Tata Money Market Fund - Growth JPMorgan India Liquid Fund - Ret Growth L&T Liquid Fund - Reg - Growth HDFC Liquid Fund - Growth Reliance Liquid Fund - Cash Plan Growth ING Liquid Fund - Growth LIC Nomura MF Liquid Fund Growth Reliance Liquid Fund - TP - Retail Growth Templeton India TMA - Growth Tata Liquid Fund - RIP - Growth AIG India Liquid Fund - Ret - Growth IDFC Cash Fund - Plan A - Growth DWS Insta Cash Plus Fund - Growth

Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011

0.72 0.71 0.73 0.69 0.70 0.71 0.70 0.69 0.71 0.70 0.71 0.72 0.69 0.65 0.69 0.70 0.69 0.67 0.69 0.67

2.14 2.11 2.17 2.08 1.94 2.11 2.11 2.10 2.09 2.09 2.13 2.17 2.04 1.97 2.09 2.05 2.08 2.04 2.06 2.02

4.26 4.15 4.24 4.13 4.04 4.17 4.14 4.22 4.08 4.12 4.20 4.31 4.04 4.01 4.17 4.04 4.08 4.05 4.05 4.04

7.68 7.66 7.66 7.58 7.58 7.58 7.56 7.55 7.55 7.53 7.52 7.49 7.45 7.40 7.35 7.34 7.33 7.31 7.29 7.27

6.63 6.34 N/A N/A 5.74 6.65 5.97 6.39 N/A 6.22 6.41 5.10 6.23 6.73 6.40 6.21 6.19 6.11 6.14 6.39

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34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53

IDFC Liquid Fund - Plan F - Growth Religare Liquid Fund - Regular Growth UTI Money Market - Ret - Growth Peerless Liquid Fund - Ret - Growth Fidelity Cash Fund - Retail - Growth Birla Sun Life Cash Plus - Retail Growth UTI Liquid Fund - Cash Plan Growth DWS Treasury Fund - Cash - Reg Growth Kotak Liquid - Regular - Growth Templeton India TMA Liquid Plan Growth Canara Robeco Liquid - Growth ICICI Prudential Liquid Plan - Growth Birla Sun Life Cash Plus - Retail DAP Edelweiss Liquid Fund - Ret Growth Tata Liquidity Management Fund Growth Bharti AXA Liquid Fund - Reg Growth HSBC Cash Fund - Reg - Growth ICICI Prudential Sweep Plan - Cash Option - Growth HDFC Cash Mgmt Fund - Call Plan Growth Sundaram Money Fund - Growth

Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 22, 2011

0.68 0.66 0.68 0.60 0.69 0.68 0.68 0.58 0.66 0.68 0.67 0.66 0.65 0.68 0.59 0.65 0.60 0.72 0.60 0.60

1.96 1.97 2.02 1.77 2.02 2.08 2.01 1.77 2.00 1.99 1.98 1.97 1.97 2.01 1.74 1.86 1.81 2.07 1.83 1.77

4.16 3.89 4.01 3.80 3.98 4.05 3.96 3.83 4.02 3.91 3.89 3.89 3.82 3.79 3.58 3.57 3.60 3.65 3.40 3.43

7.26 7.25 7.25 7.22 7.21 7.17 7.15 7.12 7.11 7.07 7.05 6.95 6.78 6.63 6.55 6.55 6.53 6.52 6.35 6.22

N/A 6.17 6.40 N/A 5.84 5.96 6.11 N/A 5.96 5.95 6.22 5.90 N/A N/A 4.74 5.58 4.83 5.51 5.16 5.50

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54 55 56 57 58 59 60

PRINCIPAL Money Manager Fund Growth Mirae Asset Cash Management Fund - Growth Religare Overnight Fund - Growth ICICI Prudential Sweep Plan Mirae Asset Liquid Fund - Reg Growth Pramerica Liquid Fund - Growth Union KBC Liquid Fund - Growth

Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011 Jul 24, 2011

0.56 0.56 0.55 0.66 0.53 0.72 0.70

1.61 1.64 1.63 1.91 1.54 2.13 N/A

3.04 3.07 3.00 3.28 2.88 4.26 N/A

6.14 5.89 5.84 5.71 5.43 N/A N/A

2.75 N/A 4.19 4.74 0.88 N/A N/A

METHODOLOGY:
(a) OBJECTIVES:
The main objective of this project is concerned with the satisfaction level of investors invested in liquid funds. To generate awareness among various sectors about liquid funds and to know the perception towards it. To know the preference of investors while investing with respect to risk, return, liquidity, wealth, tax and short term parking of funds.

(b) RESEARCH METHODOLOGY:

The population of the study was Gwalior. Here, total 72 respondents were selected to give their responses on in the different question s asked in the questionnaire. The respondents belong to different categories like (chartered accountant, doctors, and businessman). The samples were selected by contacting the individual sample element.

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(c) TOOLS: For data analysis: T test (independent sample t test) was used to find out differences in the
perception and satisfaction level of different samples. Independent sample t test: Independent sample t-test is a statistical technique that is used to analyze the mean comparison of two independent groups. In independent samples t-test, when we take two samples from the same population, then the mean of the two samples may be identical. But when samples are taken from two different populations, then the mean of the sample may differ. In this case, independent sample t-test is used to draw conclusions about the means of two populations, and used to tell whether or not they are similar

DATA ANALYSIS:
HYPOTHESIS: Null (H01): The means of the two groups (businessman and chartered accountant) are not significantly different. Alternate: The means of the two groups are significantly different SPSS Output:

1) Following is a sample output of an independent samples T test. We compared

the mean satisfaction level for liquid funds between businessman (group-1) and chartered accountant (group-2).
Group Statistics Grouping total
dimension1

1.00 2.00

N 12 12

Mean 40.0833 43.1667

Std. Deviation 5.38446 6.80686

Std. Error Mean 1.55436 1.96497

Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-2 is higher than that of the group-1. That is, satisfaction level for liquid fund has, on average, higher in case of chartered accountant than businessman.

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Independent Samples Test Levene's Variances

Test t-test for Equality of Means 95% Interval Sig. (2- Mean Difference -3.08333 -3.08333 Confidence of the

for Equality of

total

Equal

F variances 1.577

Sig. .222

t -1.231 -1.231

df 22 20.893

tailed) .231 .232

Std. Error Difference Difference Lower Upper 2.50542 -8.27926 2.11260 2.50542 -8.29528 2.12861

assumed Equal variances not assumed

Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is not significant. Here, we see that the significance is .222, which is greater than .05. We can assume that the variances are approximately equal. Finally, we see the results of the Independent Samples T Test. Based on the results of our Levene's test; T value is -1.231 We have 22 degrees of freedom. Sig. level is .231 i.e. 23.1 % Therefore we fail to reject the null hypothesis (H01) and there is no significant difference between the two groups (the significance is greater than .05).Therefore, we can say that there is no significant difference between the satisfaction level between businessman and chartered accountant invested in liquid funds. HYPOTHESIS: Null (H02): The means of the two groups (chartered accountant and doctors) are not significantly different. Alternate: The means of the two groups are significantly different

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SPSS Output: 2) Following is a sample output of an independent samples T test. We compared the mean satisfaction level for liquid funds between chartered accountant (group-2) and doctors (group-3)

Group Statistics grouping total

dimension1

2.00 3.00

N 12 12

Mean 43.1667 32.5833

Std. Deviation 6.80686 2.53909

Std. Error Mean 1.96497 .73297

Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-2 is higher than that of the group-3. That is, satisfaction level for liquid fund has, on average, higher in case of chartered accountant than doctors.
Independent Samples Test Levene's Variances

Test t-test for Equality of Means 95% Sig. (2- Mean Difference 10.58333 10.58333 Std. Confidence Interval of the Error Difference Difference Lower Upper 2.09723 6.23395 14.93271 2.09723 6.08532 15.08135

for Equality of

total

Equal

F Sig. variances 12.863 .002

t 5.046 5.046

df 22

tailed) .000

assumed Equal variances not assumed

14.003 .000

Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is significant. Here, we see that the significance is .002, which is not greater than .05. We can assume that the variances are not approximately equal.Finally; we see the results of the Independent Samples T Test. Based on the results of our Levene's test;

T value is 5.046

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We have 14.003 degrees of freedom. Sig. level is .000 i.e. 0 % Therefore we reject the null hypothesis (H02) and there is significant difference between the two groups (the significance is not greater than .05). Therefore, we can say that there is significant difference between the satisfaction level between doctors and chartered accountant invested in liquid funds. HYPOTHESIS: Null (H03): The means of the two groups (businessman and doctors) are not significantly different. Alternate: The means of the two groups are significantly different SPSS Output: 3) Following is a sample output of an independent samples T test. We compared the mean satisfaction level for liquid funds between businessman (group-1) and doctors (group-3)
Group Statistics grouping total
dimension1

1.00 3.00

N 12 12

Mean 40.0833 32.5833

Std. Deviation 5.38446 2.53909

Std. Error Mean 1.55436 .73297

Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-1 is higher than that of the group-3. That is, satisfaction level for liquid fund has, on average, higher in case of businessman than doctors

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Independent Samples Test Levene's Variances

Test t-test for Equality of Means 95% Interval Sig. (2- Mean Difference 7.50000 7.50000 Std. Confidence of the

for Equality of

Total Equal

F variances 3.661

Sig. .043

t 4.364 4.364

df 22

tailed) .000

Difference 1.71851 1.71851

Error Difference Lower Upper 3.93602 11.06398 3.85051 11.14949

assumed Equal variances not assumed

15.662 .001

Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is significant. Here, we see that the significance is .043, which is not greater than .05. We can assume that the variances are not approximately equal. Finally, we see the results of the Independent Samples T Test. Based on the results of our Levene's test; T value is 4.364 We have 15.662 degrees of freedom. Sig. level is .001 i.e. 0.1% Therefore we reject the null hypothesis (H03) and there is significant difference between the two groups (the significance is not greater than .05). Therefore, we can say that there is significant difference between the satisfaction level between businessman and doctors invested in liquid funds. HYPOTHESIS: Null (H04): The means of the two groups (businessman and doctors) are not significantly different. Alternate: The means of the two groups are significantly different

SPSS Output:

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4) Following is a sample output of an independent samples T test. We compared the mean perception for investing in liquid funds between businessman (group-1) and doctors (group3)

Group Statistics grouping total

dimension1

1.00 2.00

N 12 12

Mean 43.2500 41.5833

Std. Deviation 2.52713 6.22982

Std. Error Mean .72952 1.79839

Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-1 is higher than that of the group-2. That is, perception for investing in liquid fund has, on average, higher in case of businessman than chartered accountant.
Independent Samples Test Levene's Variances Test t-test for Equality of Means 95% Sig. total Equal F Sig. variances 11.774 .002 t .859 .859 df 22 tailed) .400 (2- Mean Difference 1.66667 1.66667 Std. Confidence Interval of the Error Difference Difference Lower Upper 1.94073 -2.35815 5.69148 1.94073 -2.48171 5.81505

for Equality of

assumed Equal variances not assumed

14.525 .404

Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is not significant. Here, we see that the significance is .002, which is not greater than .05. We can assume that the variances are not approximately equal. Finally, we see the results of the Independent Samples T Test. Based on the results of our Levene's test; T value is 0.859

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We have 14.525 degrees of freedom. Sig. level is .404 i.e. 40.4 % Therefore we fail to reject the null hypothesis and there is no significant difference between the two groups (the significance is greater than .05). Therefore, we can say that there is no significant difference between the perception for investment in liquid fund between businessman and chartered accountant. HYPOTHESIS: Null (H05): The means of the two groups (chartered accountant and doctors) are not significantly different. Alternate: The means of the two groups are significantly different SPSS Output: 5) Following is a sample output of an independent samples T test. We compared the mean perception for investing in liquid funds between chartered accountant (group2) and doctors (group-3)
Group Statistics grouping total
dimension1

2.00 3.00

N 12 12

Mean 41.5833 38.9167

Std. Deviation 6.22982 3.89541

Std. Error Mean 1.79839 1.12451

Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-2 is higher than that of the group-3. That is, perception for investing in liquid fund has, on average, higher in case of chartered accountant than doctors.

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Independent Samples Test Levene's Variances

Test t-test for Equality of Means 95% Interval Sig. (2- Mean Difference 2.66667 2.66667 Std. Confidence of the

for Equality of

total

Equal

F variances 4.110

Sig. .055

t 1.257 1.257

df 22

tailed) .222

Difference 2.12102 2.12102

Error Difference Lower Upper -1.73207 7.06540 -1.78147 7.11481

assumed Equal variances not assumed

18.461 .224

Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is significant. Here, we see that the significance is .055, which is greater than .05. We can assume that the variances are approximately equal.Finally, we see the results of the Independent Samples T Test. Based on the results of our Levene's test; we know that we have approximately equal variance, so we will read the top line. T value is 1.257 We have 22 degrees of freedom. Sig. level is .222 i.e. 22.2% Therefore we fail to reject the null hypothesis and there is no significant difference between the two groups (the significance is greater than .05). Therefore, we can say that there is no significant difference between the perception for investing in liquid fund between doctors and chartered accountant. HYPOTHESIS: Null (H06): The means of the two groups (businessman and doctors) are not significantly different. Alternate: The means of the two groups are significantly different

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SPSS Output: 6) Following is a sample output of an independent samples T test. We compared the mean perception for investing in liquid funds between businessman (group-1) and doctors (group-3)

Group Statistics grouping total

dimension1

1.00 3.00

N 12 12

Mean 43.2500 38.9167

Std. Deviation 2.52713 3.89541

Std. Error Mean .72952 1.12451

Firstly, we see the descriptive statistics for the two groups. We see that the mean for the group-1 is higher than that of the group-3. That is, perception for investing in liquid fund has, on average, higher in case of businessman than doctors.
Independent Samples Test Levene's Variances

Test t-test for Equality of Means 95% Sig. (2- Mean Difference 4.33333 4.33333 Std. Confidence Interval of the Error Difference Difference Lower Upper 1.34042 1.55348 7.11319 1.34042 1.52646 7.14021

for Equality of

Total Equal

F variances 2.232

Sig. .149

t 3.233 3.233

df 22

tailed) .004

assumed Equal variances not assumed

18.866 .004

Secondly, we see the Levene's Test for Equality of Variances. Here the Levene's test is not significant. Here, we see that the significance is .149, which is greater than .05. We can assume that the variances are approximately equal. Finally, we see the results of the Independent Samples T Test. Based on the results of our Levene's test; T value is 3.233
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We have 22 degrees of freedom. Sig. level is .004 i.e. 0.4% Therefore we reject the null hypothesis and there is significant difference between the two groups (the significance is not greater than .05). Therefore, we can say that there is significant difference between the perception for investing in liquid funds between businessman and doctors.

RESULTS:
Firstly, from the above statistical independent sample T test it is calculated that there is no difference in satisfaction level between the businessman and chartered accountant invested in liquid funds. Both are approximately equally satisfied with the returns, tax savings and past performance of their funds. But there is a difference between businessman and doctors who invested in liquid funds as from the above test it is calculated that businessman are more satisfied with returns, tax saving and past performance of their fund than doctors. Also in the case of comparison with chartered accountant and doctors there is a difference between satisfaction levels as chartered accountant are more satisfied than doctors. Secondly, if we see the result of investors who do not invest in liquid funds stated in above statistical calculation that, there is a difference between businessman and doctors perception to enjoy advantages of liquid funds. As businessman are more interested than doctors. But there is no difference between the perception of chartered accountant and doctors and same in case of comparison between businessman and chartered accountant.

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SUGGESTIONS:
The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. Mutual funds offer a lot benefit which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is? So the advisors should try to change their mindsets. The advisor should target more n more of young investors and the persons at the height of their career would like to go for advisors due to lack of expertise and time. The advisors may try to highlight some of the value added benefit, rupee cost averaging, and the systematic transfer plan, rebalancing etc. these options are not offered by other options single-handedly. So these are the enough to drive the investors towards mutual funds. Investors could also try to increase the spectrum of services offered. Now the most important reason for not availing the services of advisors was spotted of being expensive. The advisor should try to charge nominal fees at the beginning or they can offer more services and benefits at existing rate. They should also follow the decency and follow the code of ethics so that the investor could trust upon them.

IMPLICATIONS:
In todays complex financial environment, investors have unique needs which are derived from their risk appetite and financial goals. But regardless of this, every investor seeks to maximize his returns and safety on his investments without capital erosion. And investment in liquid funds has advantages in terms of liquidity, safety and portability. They can be redeemed within 24 hours and have no exit load.

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Liquid funds, an attractive alternative for parking funds lying idle in savings bank accounts. Reason: they offer higher post-tax returns, are liquid and provide a reasonable degree of safety in terms of the principal invested. The study is useful for: Investors who are in higher tax bracket and prefer short term parking of fund can evaluate through my research the advantages and satisfaction level of other investors investing in liquid funds. Organization can evaluate the satisfaction level and perception of investors and can improve the products facilities to attract more investors. It will help the students to know the fundamental and technical aspect about liquid funds. It is also beneficial for the institutional investors to know the investors outlook towards liquid fund.

CONCLUSION:
Hence, from the above research it can be analyzed that overall businessman and chartered accountant are more satisfied than doctors and businessman and chartered accountant are equally satisfied. secondly, there is no significant difference between the perception of businessman and chartered accountant and same with chartered accountant and doctors but the perception of businessman and doctors are varies.

ANNEXURE:
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QUESTIONNIARE

GENERAL QUESTION Where do you generally prefer to invest in?

1. public provident fund 2. fixed deposit 3. Mutual fund 4. Real estate 5. Gold 6. Life insurance . For how much period you would prefer to invest? 1. Short term ( 0-5) (b) long term (5& above)

Rate the following items affecting your investment decisions on a scale of 1-5 where 1 stands for maximum agreement and 5 stands for maximum agreement.

1. How far do you invest according to taxable income?

2. Up to what extent you have done tax planning?

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3. How much does return on investment matter to you?

4. How much does lock-in-period matter to you?

5. Up to what extent your investment allows tax exemption benefits?

6. Your attitude towards risk?

7. Are you aware of liquid funds? 1. Yes [ ] (b) No [ ]

IF YES:
8. Up to what extent you are satisfied with returns?

9. Up to what extent you are enjoying taxation benefits?

10. Your satisfaction level with past performance of your fund?

11. Rate the risk factor. 75

12. Your satisfaction level in comparison to bank FDs?

13. Up to what extent you are planning to invest in?

IF NO:
14. Up to what extent would you like to invest in scheme with short tenure say no lock-in-period?

15. If you are in a higher tax bracket, up to what extent you like to gain maximum tax efficient returns?

5
investment?

16 Up to what extent would you like to enjoy easy liquidity of your

5
Benefits?

17. How far do you invest in a scheme with good returns, low risk and taxation

18. Would you go for the product with short tenure and great tax benefit to invest in to meet short term goals?

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GLOSSARY:
1. Account Statement: Statement issued by the mutual fund, in lieu of the unit certificate, giving details of transactions and holdings of an investor in the different schemes of the fund. 2. Adjusted NAV: The Net Asset Value after adjusting for all changes caused due to dividend declaration, bonus etc. assuming reinvestment of distributions made to the investors at the prevailing NAV. 3. Annual Report: The yearly record of scheme's performance, and is distributed to investors and/or shareholders under SEBI regulations. 4. Applicable NAV: It is the NAV that will be applied for a transaction depending upon the cutoff time specified by the Mutual Fund. All investments or redemptions are processed at that particular NAV. A different NAV holds if received after the cutoff time. 5. Asset Allocation: The distribution of total funds available with the scheme into instruments of various types such as stocks, bonds etc. based on the scheme's investment objective as detailed in the offer document. 6. Asset Management Company: It is the investment manager for the mutual fund. It is a company set up primarily for managing the investment of mutual funds and makes investment decisions in accordance with the scheme objectives, deed of Trust and other provisions of the Investment Management Agreement. For Tata Mutual Fund, Tata Asset Management Limited is the Asset Management Company. 7. Benchmark: The investment performance of the scheme needs to be compared in relative terms against some indicator, which is called as the benchmark for the scheme. For example, the performance of an equity fund is benchmarked against the BSE Sensex.

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8. BSE Sensex: A index reflecting the stock prices of 30 companies listed on the Bombay Stock Exchange (BSE) which is taken to be representative of the stock market movement. 9. Capital Gains: The profit realizations on sale of securities and certain other capital assets (including units of mutual funds) are called capital gains. The gains can be classified into long-term, if the investments are held for more than one year, or shortterm, otherwise, and are charged at different tax rates. 10. Close ended schemes: Schemes have a pre-specified maturity period and investments in these schemes can be made at the time of the IPO and thereafter at market price through the stock exchange on which the same is listed. The market price is generally at a discount to the NAV depending upon market perception and expectations of the scheme. The Fund may also offer an exit route by offering to repurchase at NAV related prices. 11. Compliance Officer SEBI regulations require that an officer be appointed by the AMC to comply with various regulatory requirements and to redress investor grievances associated with the funds. 12. Current Load: It refers to the load structure applicable currently on any fund. Funds keep revising the load structures from time to time. 13. Current Yield: The ratio of coupon interest to the actual market price, prevailing in the market, of the bond expressed as a percentage: annual interest/ current market value = current yield. 14. Custodian: SEBI mandates that a Custodian be appointed for safekeeping of a fund's securities and other assets. 15. Cutoff time: Investments and redemptions are processed at a particular NAV. This NAV is a function of the cutoff times specified by the fund. For example a fund may 10.00 am as the cutoff time in the Liquid Fund for previous day NAV. Investment Applications received after the cutoff time of 10.00 am will get same day NAV, while applications received before 10 am will get previous day NAV, assuming that there are no holidays/Sundays involved in between.
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16. Debt Fund: Funds that invest predominantly in fixed income bearing instruments such as corporate debentures, PSU bonds, gilts, treasury bills, certificates of deposit and commercial papers. These funds are the least risky and are generally preferred by riskaverse investors. However they are prone to interest rate risk. 17. Diversification/Spreading the risk: Diversification, i.e. investing across a number of asset classes, assets within a asset class, helps in reducing the risk. 18. Dividend Plan: Generally a scheme has two plans, Growth Plan and Dividend plan. In the latter earnings of the scheme are declared as dividends, as and when there is a distributable surplus available with the scheme as per the Trustees. 19. Dividend Payout: Under the Dividend plan of a scheme there are two options available to the investor, viz. Dividend Payout option and Dividend Reinvestment option. Under the Dividend Payout option, the dividend declared is also actually distributed i.e. given to the investor. 20. Dividend Reinvestment: Under the Dividend plan of a scheme there are two options available to the investor, viz. Dividend Payout option and Dividend Reinvestment option. Under the Dividend Reinvestment option, the dividend declared is not distributed i.e. given to the investor. but reinvested in the scheme itself. 21. Dividend yield: It refers to the dividend earned per unit in Rupees of a scheme at the prevailing NAV. 22. Duration: This is a tool used to calculate the average holding period of the assets in a debt scheme, and can help, particularly Modified Duration, in estimating the sensitivity of a fund to incremental yield movements. 23. Entry Load: It is the load charged by the fund when one invests into the fund. It increases the price of the units to more than the NAV and is expressed as a percentage of NAV. For example a 1 % entry load will increase the NAV from Rs 11 to Rs 11.11 and therefore the number of units allotted will be lesser to that extent.

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24. Expense Ratio: The Expenses of a scheme include management fees and all the fees associated with the scheme's daily operations. Expense Ratio refers to the annual percentage of fund's assets that is paid out in expenses and can effect the performance of the scheme. 25. Exit Load: It is the load charged by the fund when one redeems the units from the fund. It reduces the price of the units to less than the NAV and is expressed as a percentage of NAV. 26. Face Value: The original issue price of one unit of a scheme, generally Rs 10. 27. First In First Out: It is an accounting method which assumes that the units purchased first are the units sold/redeemed first. 28. Fund Manager: H/She is the person who makes all the investment decisions for deployment of the funds of a scheme. 29. Gilts/Government Securities: Securities created and issued by the Central Government and/or a State Government, and may include securities unconditionally guaranteed by the Government. The coupon on these securities is determined by an auction process. 30. Gilt Funds: Gilt Funds are those schemes which as per their offer document can invest only in government securities of different maturities. They offer lower returns as the credit risk is virtually absent and there are no chances of government defaulting on its payment obligations. This effectively reduces the yield on them. They are still subject to the interest rate risk. 31. Growth Plan: The Growth plan of a scheme retains/ploughs back the earnings, instead of declaring dividends of the scheme. The returns from the investor's point of view are accumulated within the scheme. Growth Plan is different from the Dividend Reinvestment Option as in the latter dividends are declared but not distributed, while in the Growth Plan the dividends are not declared. There are differing implications for tax computation.

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32. Guaranteed Returns: Returns from mutual fund schemes are subject to market and other investment risks. As such there are no assured/guaranteed returns in mutual funds. This applies even to debt schemes. The launch of scheme/fund offering guaranteed returns is now subject to certain restrictions imposed by the SEBI, and generally SEBI does not allow guaranteed returns. 33. Index Funds: A type of mutual fund in which the portfolios are constructed to mirror a specific market index. Securities are purchased in the same proportions as in the selected Index. Index funds are expected to provide a rate of return over time that will approximate or match, but not exceed, that of the index which they are mirroring. The focus is on passive investment style. 34. Indexation: The capital gains arising out of selling mutual fund units are taxed at Long Term Capital Gains rate if they are held for more than one year. The Long term capital gains rate can be computed either as 10 % flat or 20 % with indexation benefit. For this the government has specified an index linked to the wholesale price index. The indices of two years (year of purchase and the year of sale) are used for the purpose of computing capital gains tax. The purchase price is multiplied by the index of the year of sale and the product is divided by the index of the year of purchase. This indexed purchase price is deducted from the sale price to calculate the indexed capital gains. The tax rate of 20 % is applied to the indexed capital gains. 35. Inflation: The rise in prices of goods and services over a period of time. 36. Inflation Risk: The probability of the value of an asset being eroded on account of inflation. 37. Liquid Funds: Funds, as per their offer documents, investing only in short-term money market instruments including treasury bills, commercial paper and certificates of deposit. The objective is to provide liquidity and preserve the capital. 38. Liquidity: From the Fund management point of view, the cash and cash equivalent assets available with a fund to meet expenses and immediate redemption requirements of the investors. It refers to the ability to buy or sell an asset quickly or the ability to convert to

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cash quickly. From the Investor point of view, it reflects the ease and speed with which an investor can convert his/her unit holdings into cash. 39. Lock-in period: The cooling period after investment in fresh units during which the investor cannot redeem the units. 40. Management Fee: The fees charged to a scheme for investment management of the funds under the scheme, usually expressed as percentage of assets, and is subject to limits prescribed by SEBI. 41. Market Risk: It refers to the risk posed by the market in itself i.e. the risk that the price of a security will rise or fall due to changing economic, political, or market conditions. 42. Money Market: It refers to a market for very short-term securities less than a year, such as Treasury Bills and Call Money make up the bulk of trading in the money markets. 43. Mutual Funds: An investment company/trust that pools money from unit holders and invests that money into a variety of securities, including stocks, bonds, and moneymarket instruments as defined in the offer document of the specific mutual fund. 44. Net Asset Value: The value of fund's portfolio at market value less current liabilities and other accrued expenses divided by the number of units outstanding. Net asset value is normally computed daily. 45. No Load: It refers to the fund that does not charge any load for buying or selling its units, i.e. the investor can transact at the NAV. 46. Non Performing Assets: Assets that do not provide returns are classified as NPAs as per the provisions of SEBI regulations. 47. Offer Document: It is the official document issued by mutual funds prior to the launch of a fund describing the characteristics of the proposed scheme/fund to all its prospective investors. It contains information required by SEBI pertaining to issues such as investment objective and policies, services, and fees.

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48. Open Ended Fund/Scheme: It is a type of a scheme/fund where purchase or sale of units is offered on a continued basis at NAV related prices. 49. Redemption: An investor wishing to withdraw his/her investment from a scheme/fund gives a redemption transaction. The investor is paid a NAV linked price. 50. Risk Adjusted Returns: For the purpose of comparing returns across schemes involving varying levels of risk, the returns are adjusted for the level of risk before comparison. Such returns (reduced for the level of risk involved) are called risk-adjusted returns. 51. Sale Price: The price at which a fund offers to sell one unit of its scheme to investors. This NAV is grossed up with the entry load applicable, if any. 52. Sponsors: A sponsor is the person who, acting alone or in combination with another body or corporate, establishes a mutual fund and applies to SEBI for its registration. As per SEBI regulations, the sponsor has to contribute a minimum of 40% of the net worth of the AMC. 53. Systematic Investment Plan (SIP): It is a plan offered to facilitate systematic investments at regular intervals so that an investor can give post-dated cheques to the mutual fund to allot fresh units at specified intervals (usually monthly or quarterly). On the specified dates, the Cheque are realized by the mutual fund and additional units at the prevailing NAV are allotted to the investor. SIP helps investors to average the cost of acquisition. 54. Systematic Withdrawal Plan (SWP): It is the opposite of SIP and facilitates regular withdrawals. This helps investors in meeting their regular financial needs. 55. Total Return: Return on investment, calculated after taking into account capital appreciation, dividends or interest, and individual tax considerations adjusted for present value and expressed on an annualized basis. 56. Trustee: The Trustees comprise the Trust and having an overall supervisory authority over the AMC. They ensure that the AMC follow the trust deed, the SEBI regulations and the offer document and the assets of the funds are held safely.

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57. Yield Curve: The curve gives the relationship between yields on a group of fixedincome securities with varying maturities viz. treasury bills, notes, and bonds. The curve typically slopes upward since longer maturities normally have higher yields, although it can be flat or even inverted. 58. Yield to Maturity: Used to determine the rate of return an investor will receive if a longterm, interest-bearing investment, such as a bond is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield and the time between interest payments.

REFERENCES:
www.birlamutualfund.com www.mutualfundindia.com www.moneycontrol.com www.theeconomictime.com www.ineindia.com www.valuesearchonline.com www.investopidia.com Fatchsheets and statements of Birla sun life The economics times

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