Untitled

CHAPTER-1
INTRODUCTION
At the top of the customer base pyramid where the accounts are huge, marketing a
nd sales must make joint decisions about product, price, brand, and all kinds of
support.
— Benson Shapiro
1.1) GENERAL INTRODUCTION
1.1(A) Market:
A market is a social arrangement that allows buyers and sellers to discover info
rmation and carry out a voluntary exchange of goods or services. It is one of th
e two key institutions that organize trade, along with the right to own property
. In everyday usage, the word "market" may refer to the location where goods are
traded, sometimes known as a marketplace, or to a street market
Types of markets:
.
Although many markets exist on the traditional sense--such as a flea market--the
re are various other types of markets and various organizational structures to a
ssist their functions.
A market can be organized as an auction, as a shopping center, as a complex inst
itution such as a stock market, and as an informal discussion between two indivi
duals.
In economics, a market that runs under laissez-faire policies is a free market.
It is "free" in the sense that the government makes no attempt to intervene thro
ugh taxes, subsidies, minimum wages, price ceilings, etc. Market prices may be d
istorted by a seller or sellers with monopoly power, or a buyer with monophony p
ower. Such price distortions can have an adverse effect on market participant's
welfare and reduce the efficiency of market outcomes. Also, the level of organiz
ation or negotiation power of buyers, markedly affects the functioning of the ma
rket. Markets where price negotiations do not arrive at efficient outcomes for b
oth sides are said to experience market failure.
Most markets are regulated by state wide laws and regulations. While barter mark
ets exist, most markets use currency or some other form of money.
Markets of varying types can spontaneously arise whenever a party has interest i
n a good or service that some other party can provide. Hence there can be a mark
et for cigarettes in correctional facilities, another for chewing gum in a playg
round, and yet another for contracts for the future delivery of a commodity. The
re can be black markets, where a good is exchanged illegally and virtual markets
, such as eBay, in which buyers and sellers do not physically interact. There ca
n also be markets for goods under a command economy despite pressure to repress
them.
1.1(B) FINANCIAL MARKETS:
The term financial markets can be a cause of much confusion.
Financial markets could mean:
1. Organizations that facilitate the trade in financial products. i.e. Stock exc
hanges facilitate the trade in stocks, bonds and warrants.
2. The coming together of buyers and sellers to trade financial products. i.e. s
tocks and shares are traded between buyers and sellers in a number of ways inclu
ding: the use of stock exchanges; directly between buyers and sellers etc.
In academia, students of finance will use both meanings but students of economic
s will only use the second meaning.
Financial markets can be domestic or they can be international.
Types of financial markets:
The financial markets can be divided into different subtypes:
• Capital markets which consist of:
o Stock markets, which provide financing through the issuance of shares or
common stock, and enable the subsequent trading thereof.
o Bond markets, which provide financing through the issuance of Bonds, and
enable the subsequent trading thereof.
• Commodity markets, which facilitate the trading of commodities.
• Money markets, which provide short term debt financing and investment.
• Derivatives markets, which provide instruments for the management of fin
ancial risk.
o Futures markets, which provide standardized forward contracts for tradin
g products at some future date; see also forward market.
• Insurance markets, which facilitate the redistribution of various risks.
• Foreign exchange markets, which facilitate the trading of foreign exchan
ge.
The capital markets consist of primary markets and secondary markets. Newly form
ed (issued) securities are bought or sold in primary markets. Secondary markets
allow investors to sell securities that they hold or buy existing securities.
Raising capital
To understand financial markets, let us look at what they are used for, i.e. wha
t is their purpose?
Without financial markets, borrowers would have difficulty finding lenders thems
elves. Intermediaries such as banks help in this process. Banks take deposits fr
om those who have money to save. They can then lend money from this pool of depo
sited money to those who seek to borrow. Banks popularly lend money in the form
of loans and mortgages.
More complex transactions than a simple bank deposit require markets where lende
rs and their agents can meet borrowers and their agents, and where existing borr
owing or lending commitments can be sold on to other parties. A good example of
a financial market is a stock exchange. A company can raise money by selling sha
res to investors and its existing shares can be bought or sold.
The following table illustrates where financial markets fit in the relationship
between lenders and borrowers:
Relationship between lenders and borrowers
Lenders Financial Intermediaries
Financial Markets Borrowers
Individuals
Companies Banks
Insurance Companies
Pension Funds
Mutual Funds Interbank
Stock Exchange
Money Market
Bond Market
Foreign Exchange Individuals
Companies
Central Government
Municipalities
Public Corporations
Lenders
Many individuals are not aware that they are lenders, but almost everybody does
lend money in many ways. A person lends money when he or she:
• puts money in a savings account at a bank;
• contributes to a pension plan;
• pays premiums to an insurance company;
• invests in government bonds; or
• invests in company shares.
Companies tend to be borrowers of capital. When companies have surplus cash that
is not needed for a short period of time, they may seek to make money from thei
r cash surplus by lending it via short term markets called money markets.
There are a few companies that have very strong cash flows. These companies tend
to be lenders rather than borrowers. Such companies may decide to return cash t
o lenders (e.g. via a share buyback.) Alternatively, they may seek to make more
money on their cash by lending it (e.g. investing in bonds and stocks.)
Borrowers
Individuals borrow money via bankers' loans for short term needs or longer term
mortgages to help finance a house purchase.
Companies borrow money to aid short term or long term cash flows. They also borr
ow to fund modernization or future business expansion.
Governments often find their spending requirements exceed their tax revenues. To
make up this difference, they need to borrow. Governments also borrow on behalf
of nationalized industries, municipalities, local authorities and other public
sector bodies. In the UK, the total borrowing requirement is often referred to a
s the public sector borrowing requirement (PSBR).
Governments borrow by issuing bonds. In the UK, the government also borrows from
individuals by offering bank accounts and Premium Bonds. Government debt seems
to be permanent. Indeed the debt seemingly expands rather than being paid off. O
ne strategy used by governments to reduce the value of the debt is to influence
inflation.
Municipalities and local authorities may borrow in their own name as well as rec
eiving funding from national governments. In the UK, this would cover an authori
ty like Hampshire County Council.
Public Corporations typically include nationalized industries. These may include
the postal services, railway companies and utility companies.
Many borrowers have difficulty raising money locally. They need to borrow intern
ationally with the aid of Foreign exchange markets.
Derivative products
During the 1980s and 1990s, a major growth sector in financial markets is the tr
ade in so called derivative products, or derivatives for short.
In the financial markets, stock prices, bond prices, currency rates, interest ra
tes and dividends go up and down, creating risk. Derivative products are financi
al products which are used to control risk or paradoxically exploit risk. It is
also called financial economics.
Currency markets
Seemingly, the most obvious buyers and sellers of foreign exchange are importers
/exporters. While this may have been true in the distant past, whereby importers
/exporters created the initial demand for currency markets, importers and export
ers now represent only 1/32 of foreign exchange dealing, according to BIS,
The picture of foreign currency transactions today shows:
• Banks and Institutions
• Speculators
• Government spending (for example, military bases abroad)
• Importers/Exporters
• Tourists
Analysis of financial markets
Much effort has gone into the study of financial markets and how prices vary wit
h time. Charles Dow, one of the founders of Dow Jones & Company and The Wall Str
eet Journal, enunciated a set of ideas on the subject which are now called Dow T
heory. This is the basis of the so-called technical analysis method of attemptin
g to predict future changes. One of the tenets of "technical analysis" is that m
arket trends give an indication of the future, at least in the short term. The c
laims of the technical analysts are disputed by many academics, who claim that t
he evidence points rather to the random walk hypothesis, which states that the n
ext change is not correlated to the last change.
The scale of changes in price over some unit of time is called the volatility. I
t was discovered by Benoît Mandelbrot that changes in prices do not follow a Gau
ssian distribution, but are rather modeled better by Lévy stable distributions.
The scale of change, or volatiliy, depends on the length of the time unit to a p
ower a bit more than 1/2. Large changes up or down are more likely that what one
would calculate using a Gaussian distribution with an estimated standard deviat
ion.
1.1(C) MARKETING:
Marketing is a societal process that is needed to discern consumers' wants; focu
sing on a product/service to those wants, and to mould the consumers towards the
products/services. Marketing is fundamental to any businesses growth. The marke
ting teams (Marketers) have the task to create the consumer awareness of the pro
ducts/services through marketing techniques; if a business does not pay attentio
n to their products/services and their consumers' demographics, the business wou
ld not be able to endure longevity.
Marketing tends to be seen as a creative industry, which includes advertising, d
istribution and selling. It is also concerned with anticipating the customers' f
uture needs and wants, often through market research.
Two levels of marketing
Strategic Marketing attempts to determine how an organization competes against i
ts competitors in a market place. In particular, it aims at generating a competi
tive advantage relative to its competitors.
Operational Marketing executes marketing functions to attract and keep customers
and to maximize the value derived for them, as well as to satisfy the customer
with prompt services and meeting the customer expectations. Operational Marketin
g includes the determination of the marketing mix
1”…an organizational function and a set of processes for creating communicating,
and delivering value to customers for managing customer relationship in ways th
e benefits the organization and its stakeholders.”
2. “Human activity directed at satisfying needs and wants through exchange proce
sses.” Philip Kotler
3. “…the ongoing process of moving people closer to making a decision to purchas
e, use, follow, refer, upload, download, obey, reject, conform, become complacen
t to someone else’s products, services or values. Simply, if it doesn’t facilita
te a sale then it’s not a marketing.”
4. “….the thing process of anticipating, identifying, and satisfying customer re
quirement profitably” Chartered Insitute of Marketing.
1.1(D) SERVICE:
A service is any act of performance that one party can offer to another to that
is essentially intangible and does not result in ownership of anything. Its pro
duction may or may not be tied to a physical product.
Categories of service mix:
A company’s offering to the market place often includes some services. The servi
ce component can be a minor or major part of the total offering. Five categories
of offerings are:
• Pure tangible good
• Tangible good with accompanying services
• Hybrid
• Major service with accompanying minor goods and services
• Pure services
Three types of marketing in service industry

Company
Internal marketing External marketing
Employee’s interactive marketing custom

ers
SERVICE QUALITY MODEL

World of mouth communication personnel needs
past experience
Expected services
Gap 5
Perceived ser
vices
Consumer
Market
service delivery gap4 external
Comm.
Gap 3 to consumers
Gap 1
Translation
of
Perceptions i
nto
Service quali
ty
Specificatio
ns
Gap 2
Management
Perceptions
of
Consumer expe
ctation
1.2) OBJECTIVE OF STUDY

The main objective of research was to measure the level of awareness about syste
matic investment plan among people.
An attempt has been made to measure various variables playing in the mind of pe
ople who invest in mutual funds in terms of safety, liquidity, services, returns
, cost of investment, tax efficiency etc.
1.3) INDUSTRY PROFILE
Established in 1985, The Kotak Mahindra group has long been one of India s most
reputed financial organizations. In February 2003, Kotak Mahindra Finance Ltd, t
he group s flagship company was given the license to carry on banking business b
y the Reserve Bank of India (RBI). This approval creates banking history since K
otak Mahindra Finance Ltd. is the first company in India to convert to a bank.
The complete bank
At Kotak Mahindra Bank, we address the entire spectrum of financial needs for in
dividuals and corporates. we have the products, the experience, the infrastructu
re and most importantly the commitment to deliver pragmatic, end-to-end solution
s that really work.
* A license authorising the bank to carry on banking business has been obtained
from the Reserve Bank of India in terms of Section 22 if the Banking Regulation
Act, 1949. It must be distinctly understood, however, that in issuing the licens
e, the Reserve Bank of India does not undertake any responsibility for the finan
cial soundness of the bank or the correctness of any of the statements made or o
pinion expressed in this connection.
In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford
Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahin
dra (FCKM) held by Kotak Group.
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Li
mited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & C
ompany. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986,
and that s when the company changed its name to Kotak Mahindra Finance Limited.
Since then it s been a steady and confident journey to growth and success.
1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting
1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market
1990 The Auto Finance division is started
1991 The Investment Banking Division is started. Takes over FICOM, one of Ind
ia’s largest financial retail marketing networks
1992 Enters the Funds Syndication sector
1995 Brokerage and Distribution businesses incorporated into a separate compa
ny - Kotak Securities. Investment Banking division incorporated into a separate
company - Kotak Mahindra Capital Company
1996 The Auto Finance Business is hived off into a separate company - Kotak M
ahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak M
ahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for fin
ancing Ford vehicles. The launch of Matrix Information Services Limited marks th
e Group’s entry into information distribution.
1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Ma
nagement Company.
2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance busin
ess.
Kotak Securities launches its on-line broking site (now www.kotaksecurities.com)
. Commencement of private equity activity through setting up of Kotak Mahindra V
enture Capital Fund.
2001 Matrix sold to Friday Corporation
Launches Insurance Services
2003 Kotak Mahindra Finance Ltd. converts to a commercial bank – the first In
dian company to do so.
2004 Launches India Growth Fund, a private equity fund.
2005 Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra P
rime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kot
ak Mahindra.
Launches a real estate fund
Our Corporate Identity
Kotak Group Companies

Kotak Mahindra Bank
The Kotak Mahindra Group’s flagship company, Kotak Mahindra Finance Ltd which wa
s established in 1985, was converted into a bank – Kotak Mahindra Bank Ltd in Ma
rch 2003 becoming the first Indian company to convert into a Bank. It’s banking
operations offers a central platform for customer relationships across the group
’s various businesses. The bank has a presence in the Commercial Vehicles, Retai
l Finance, Corporate Banking, Treasury and Housing Finance.
Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India s premier Investment Bank
and a Primary Dealer (PD) approved by the RBI. KMCC s core business areas inclu
de Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Ser
vices, Fixed Income Securities and Principal Business.
Kotak Securities
Kotak Securities Ltd., is one of India s largest brokerage and securities distri
bution house in India. Over the years Kotak Securities has been one of the leadi
ng investment broking houses catering to the needs of both institutional and non
-institutional investor categories with presence all over the country through fr
anchisees and co-ordinators. Kotak Securities Ltd. offers online (through www.ko
taksecurities.com) and offline services based on well-researched expertise and f
inancial products to the non-institutional investors.
Kotak Mahindra Prime
Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limi
ted) has been formed with the objective of financing the retail and wholesale tr
ade of passenger and multi utility vehicles in India. KMP offers customers retai
l finance for both new as well as used cars and wholesale finance to dealers in
the automobile trade. KMP continues to be among the leading car finance companie
s in India.
Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra
Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages f
unds in excess of Rs 11,000 crores and offers schemes catering to investors with
varying risk- return profiles. It was the first fund house in the country to la
unch a dedicated gilt scheme investing only in government securities.
Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited, is a joint venture between Kot
ak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers t
o take important financial decisions at every stage in life by offering them a w
ide range of innovative life insurance products, to make them financially indepe
ndent
CHAPTER-2
PROFILE OF THE ORGANIZATION
2.1) ORIGIN OF ORGANIZATION
The Kotak Mahindra Group
Kotak Mahindra is one of India s leading financial conglomerate, offering comple
te financial solutions that encompass every sphere of life. From commercial bank
ing, to stock broking, to mutual funds, to life insurance, to investment banking
, the group caters to the financial needs of individuals and corporate.
The group has a net worth of over Rs. 5,230 crore, employs around 15,300 people
in its various businesses and has a distribution network of branches, franchisee
s, representative offices and satellite offices across 340 cities and towns in I
ndia and offices in New York, London, Dubai, Mauritius and Singapore. The Group
services around 3.2 million customer accounts.
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Li
mited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & C
ompany. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986,
and that s when the company changed its name to Kotak Mahindra Finance Limited.
GOING GLOBAL: Uday wants to ultimately

provide global products for global customers
The erstwhile Sponsor company, Kotak Mahindra Finance Limited (KMFL) was convert
ed into Kotak Mahindra Bank Limited (Kotak Bank) in March 2003 after being grant
ed a banking license by the Reserve Bank of India. Thus, the Sponsor of the Fund
is Kotak Bank. KMFL promoted by Mr. Uday S. Kotak, Mr. S. A. A. Pinto and Kotak
& Co., was incorporated on November 21, 1985 under the name Kotak Capital Manag
ement Finance Limited. In early 1986, the promoters were joined by Late Mr. Hari
sh Mahindra and Mr. Anand G. Mahindra and the Company s name was changed to Kota
k Mahindra Finance Limited. Kotak & Co. (now Kotak & Co. Limited) is a highly re
spected trading company of Mumbai, with international business.
Mr. Uday Kotak, a scion of the Kotak family, was an outstanding student through
school, Sydenham College (Bombay University) and Jamnalal Bajaj Institute of Man
agement Studies (Bombay University). Mr. S. A. A. Pinto, trained as a lawyer, ha
s held senior positions in well-known organisations like ICI and Grindlays Bank.
For instance, he was part of the team in Grindlays Bank, which started the firs
t merchant banking unit in India in 1968. Mr. Harish Mahindra was an industriali
st of repute and had played a prominent role in social service and public life,
thereby earning him high esteem. Mr. Anand Mahindra, an MBA from Harvard Univers
ity, is the Managing Director of one of India s most reputed industrial firms, M
ahindra & Mahindra Limited. KMFL started with a capital base of Rs. 30.88 lakh.
From being a provider of a single financial product, KMFL grew substantially dur
ing the seventeen years of its existence into a highly diversified financial ser
vices company and has now converted into a Bank. As on September 30, 2005, the n
et worth of Kotak Bank is around Rs. 800 crore and combined with its subsidiarie
s, the Group net worth (before minority interest) is around Rs. 2,000 crore. The
re are over 47,000 shareholders of Kotak Bank. The Sponsor and its subsidiaries
/ associates offer wide ranging financial services such as loans, lease and hire
purchase, consumer finance, home loans, commercial vehicles and car finance, in
vestment banking, stock broking, primary market distribution of equity and debt
products and life insurance. The group has offices in over 88 Indian cities and
also present internationally in Mauritius, London, Dubai and New York. Kotak Mah
indra (UK) Limited, an ultimate subsidiary of Kotak Bank, is the first company o
wned from India to be registered with the Financial Services Authority in UK. Ko
tak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak
Bank and Old Mutual Plc based in the UK and with large presence in the South Afr
ican insurance market. Some of the other subsidiaries of Kotak Bank are Kotak Ma
hindra Securities Limited, Kotak Mahindra Prime Limited, Kotak Mahindra Internat
ional Limited, Kotak Mahindra Private-Equity Trustee Limited, Kotak Mahindra Inv
estments Limited, Kotak Mahindra Inc., and Kotak Forex Brokerage Limited. The Sp
onsor has been consistently profitable and dividend paying company since incepti
on. All group companies are professionally run companies, employing over 5,000 p
rofessional staff including CA’s, MBA’s and Engineers
The Jamnalal Bajaj Institute of Management Studies (JBIMS) in Mumbai is one of t
he most prestigious business schools in the country. Leading international and I
ndian companies send their teams with offers to students graduating from the 40-
year-old institute. This year was no different. Global majors including McKinsey
& Co, Accenture, Bristlecone Consulting, IBM Consulting, Citibank, HSBC, Standa
rd Chartered, JP Morgan Chase, Hewlett Packard, Intel, TCS, Infosys and Wipro ca
me headhunting. Also in the fray were Indian banks such as the State Bank of Ind
ia, ICICI Bank, Kotak Mahindra, and UTI Bank. Expectedly, banks and financial in
stitutions - Bajaj has a tradition of being the hunting ground for topnotch bank
ing and financial whiz-kids - were the biggest recruiters, hiring 37 per cent of
the batch
of 2006.The Indian retail banking industry, growing at a breathtaking pace, has
indeed shown a huge appetite for MBA’s graduating out of India s top business sc
hools. With India s burgeoning middle-class, and a relatively young population -
about 500 million Indians are below the age of 24 -there is growing hunger for
credit cards, auto and consumer loans, and a host of other products. And banks,
especially the new crop of private sector institutions, have been feeding this m
onstrous demand for credit with a slew of innovative products. India s retail ba
nking industry grew by a whopping 120
per cent in 2005, and total asset size has topped $65 billion. According to McKi
nsey & Co, the retail banking business grew by a compounded annual growth rate o
f 30.5 per cent between 1999 and 2004. The industry is expected to continue grow
ing at 30 per cent and above, and retail assets of lenders are likely to touch $
300 billion by 2010.The retail banking industry has attracted many international
majors. GE Capital, a subsidiary of General Electric, aims to grow its business
from $1.5 billion at present to $10 billion in about four years. But the bigges
t gainers from this retail banking boom have been private Indian banks like Kota
k Mahindra Bank (KMB).Says Uday Kotak, executive vice-chairman and managing dire
ctor: "When we (the Kotak Mahindra group) set up the bank about three years ago,
we had just 1,500
people. Today, we have 8,000, and by early next year, we will have a branch netw
ork of 110, and almost 10,000 people."
This would be much higher than any other international bank in India. For a thre
e-year-old bank, KMB has done exceptionally well. It ranks No 3 in terms of mark
et capitalisation (of about $2.1 billion), next only to ICICI Bank
($10.5 billion), and State Bank of India (about $5.3 billion).KMB s net profit z
oomed by 125 per cent during first quarter of the current fiscal (April-June 200
6), way ahead of other competitors, including HDFC Bank (48.4 per cent), UTI Ban
k (30.14 per cent) and ICICI Bank (17 per cent).Not surprisingly, the company s
stocks have gained by 50 per cent since mid-June on the Bombay Stock Exchange, t
hough analysts such as JP Morgan Stanley have cautioned that the current spike i
n prices is unjustified.
The Kotak Mahindra group, which was established in 1985, is today one of India s
leading financial institutions, covering the entire gamut of services from comm
ercial banking to stock broking, mutual funds, life insurance and investment ban
king. The group has a net worth of $600 million, offices and branches in over 25
0 Indian cities, besides a presence in New York, London, Dubai and Mauritius. Th
e group, which was started initially by Uday Kotak (later industrialists Harish
Mahindra and Anand Mahindra of automobile major Mahindra & Mahindra Ltd, also bo
ught stakes in the group), has had some interesting international partners, incl
uding Goldman Sachs and Ford Credit. Earlier this year, the group acquired the 2
5 per cent stake that Goldman Sachs had in it; last year, it had restructured th
e arrangements with Ford, both going their separate ways.Uday, 47, believes the
time is ripe for Indian financial sector players to stride the international are
na. "For the first time we are noticing a change in the mindset of Indian busine
sses," says he. "We are going away from incremental to a more inspirational role
. We see a greater commitment to build scale and quality."
In the 1990s, many were scared of globalisation, but today an increasing number
of Indian businesses have stated embracing globalisation, avers Uday Kotak. Indi
an corporate have realised that setting up an office or facility in Singapore or
Dubai is no different from establishing a presence in Kolkata or Chennai. There
has also been a paradigm shift in international investor sentiments about India
. "The India story is finally happening," he points out. "In a sense, India as a
n asset class has become centre-stage today, just as Japan became an independent
asset class in the 1970s. And India as an asset class is no longer an option; i
t has become an integral part of an investor s global portfolio."
KMB sees tremendous opportunities in this new environment, and foresees a signif
icant role for itself in three distinct areas: providing Indian products for Ind
ian customers, Indian products for global customers (including foreign instituti
onal investors and multinational corporations), and global products for Indian c
ustomers (including Indian companies setting up shop abroad). Of course, Uday s
ultimate aim is to provide global products for global customers,
and he is confident this could happen in about five years. He sees the next big
leap for the bank in enhancing its presence (or setting up operations) in cities
across the globe, including London, New York, Dubai, Singapore and Tokyo. Ameri
can financial institutions have expanded globally as they pursued US based compa
nies in their overseas foray, notes Kotak. Similarly, with many Indian companies
going in for international acquisitions, he envisages domestic banks to expand
significantly abroad. The Kotak group is planning to raise an additional $425 mi
llion - including $350 million from the overseas markets - for its real estate v
enture fund. It has already raised about $100 million and plans to make an aggre
ssive foray into the business, promoting special economic zones, townships, shop
ping malls, and residential and office complexes. With a phenomenal track record
over the past two decades - an investment of $2,100 in 1985, when the group was
established, would have expanded to a mind-boggling $26.5 million today, says U
day, who made it to the Forbes Billionaire s list earlier this year - KMB is now
gearing up to ride the crest of the retail banking wave that will sweep across
this country of 1.1 billion people over the coming years………………
VISION:
THE GLOBAL INDIAN FINANCIAL SERVICES BRAND: OUR CUSTOMER WILL ENJOY THE BENEFIT
OF DEALING WITH THE GLOBAL INDIAN BRAND THAT BEST UNDERSTAND THEIR NEEDS AND DEL
IVERS customized pragmatic solutions across multiple platforms. We will be a wor
ld class financial services group services group. Our technology and best pract
ices will be benchmarked along international lines while our understanding of cu
stomers will be uniquely Indian. We will be more than a repository of our custom
er’s savings. We, the group, will be a single window to every financial services
in a customer’s universe.
THE MOST PREFERRED EMPLOYER IN FINANCIAL SERVICES:
A culture of empowerment and a spirit of enterprise attracts bright minds with a
n entrepreneurial streak to join us and stay with us. Working with a home- grown
, professionally-managed company, which has partnership with international leade
rs, gives our people a perspective that is universal as well as unique.
THE MOST TRUSTED FINANCIAL SERVICES COMPANY: We will create an ethos of trust a
cross all our constituents. Adhering to high standards of compliance and corpora
te governance will be an integral part of building trust.
VALUE CREATION: Value creation rather than size alone will be our business drive
r
2.2) GROWTH AND DEVELOPMENT OF ORGANIZATION
About the part of growth and development of KOTAK MAHINDRA BANK there are some n
ews letters and articles which I got from different websites as well as from Bus
iness Today’s magazines:
Kotak Mahindra Bank mops up $100 mn through GDS
Mumbai - Kotak Mahindra Bank, a new age private sector bank, said Monday it had
raised nearly $100 million through issue of global depository shares to fund its
expansion plans. Mumbai - Kotak Mahindra Bank, a new age private sector bank, s
aid Monday it had raised nearly $100 million through issue of global depository
shares to fund its expansion plans.
The Mumbai-headquartered bank launched the sale of 15 million global depository
shares last Wednesday. The issue closed Saturday, said a statement issued by the
bank to the Bombay Stock Exchange.
The shares will be listed on the Luxemburg Stock Exchange and underlying equity
shares will be listed on the Bombay Stock Exchange and the National Stock Exchan
ge of India. Each global depository share of Kotak Mahindra Bank represented one
underlying equity share of Rs.10 each.
The share was priced at $6.66, at a premium of 4.5 percent to the closing market
price of the bank s equity shares on last Wednesday, when it was launched.
The issue was oversubscribed by over four times, said the bank adding it receive
d a good response from investors in all geographical regions including the US, E
urope and Asia. Kotak Investment Banking and Citigroup acted as global co-coordi
nators, book runners and lead managers for the offering.
Kotak Mahindra-UCO Bank tie-up for product distribution Kolkata - Kotak Mahindra
Mutual Fund, set up by the Kotak Mahindra Bank Limited, Friday entered into an
alliance with UCO Bank to use the bank s network to distribute its products. Kol
kata - Kotak Mahindra Mutual Fund, set up by the Kotak Mahindra Bank Limited, Fr
iday entered into an alliance with UCO Bank to use the bank s network to distrib
ute its products.
UCO Bank with its huge network of 1,739 branches across the country and four ov
erseas branches will serve as a far- reaching distribution channel for the schem
es and products of Kotak Mutual Fund, said Sandesh Kirkire, the mutual fund s C
EO.
Kotak Mutual Fund s corpus stands at Rs.130 billion at present. We are looking
at new product lines and exploring opportunities for launching a short-term clos
e-ended fund, Kirkire said. UCO Bank executive director S. Bhatt, who signed th
e agreement on behalf of the bank, said the tie-up would help its customers dive
rsify the asset base.
ACHEIVEMENTS
Awards 2007
• Awarded the 10th Best Employer in the recently conducted Hewitt’s Best E
mployers in India 2007 Study
• Best Investment Bank in India by Finance Asia
• Most Popular Investor Relation Website for the Asia/Pacific Region condu
cted by IR Global Rankings
• Emerged winner in 16 categories in the Euromoney Private Banking Poll 20
07, including the Best local Private Bank
2006
• “IT Team of the Year” award at the annual Banking Technology Awards 2006
• Runner’s up in the “Best Payments Initiative” category at the annual Ban
king Technology Awards 2006
• Kotak Securities was ranked The Most Customer Responsive Company for 200
6 (Category - Financial Services) by Avaya Global connect
• Awarded the Best Domestic Investment Bank and the Best Equity House in T
he Asset Triple A Country Awards
• Awarded Voice of Customers Award for the Best Passenger Vehicle Finance
Company in India in 2006 by Frost & Sullivan
• Winner in 33 categories in the Asia money Private Banking Poll 2006 incl
uding the Best Private Bank award in Southern Asia
• Ranked no. 1 in six categories in the Annual Euro money Private Banking
Survey Poll for 2006 for India
• Ranked # 1 in the league table for Book runner/ Lead Manager in public e
quity offerings in terms of the value of transactions completed during fiscal 20
06 according to Prime Database
• Best Broker in India by Finance Asia
• Topped the Asia money 2006 Brokers Poll as the Best Local Broker
• Adjudged the best Mutual Fund House in the NDTV Business Leadership Awar
d 2006
• Best Bond Fund Group over Three Years by Lipper Fund Awards India
• Ranked the best debt fund over 5 years by Lipper for the Kotak Bond Regu
lar Plan
• Ranked ICRA-MFR1 and was the recipient of the Silver Award by ICRA for t
he Kotak Bond Regular Plan
2005
• Ranked as the top mergers & acquisitions advisor in India in terms of th
e value of mergers & acquisitions deals announced from January to December 2005,
according to Bloomberg
• Topped the India Advisory Partners Indata League table in terms of the v
alue of deals announced for the calendar year 2005
• Best Broker in India by Finance Asia
• Best Equity House in India by Euro money
2004
• Best Investment Bank in India by Global Finance
• India’s Best Equity House in India by Finance Asia
• Best Equity House in India by Asia money
• Best India Equity House by IFR
2003
• • Ranked # 1 in the league table for Book runner/ Lead Manager in public
equity offerings in terms of the value of transactions completed during fiscal
2003, according to Prime Database
• Best Equity House in India by Asia money
MARKETING ORIENTED ARCHITECTURE

Kotak Mahindra Bank has consciously positioned itself to cater to the new and em
erging high net worth family and business segments. The Kotak group has a net wo
rth of over Rs 32 billion and employs around 10,800 people. The group services a
round 2.6 million customer accounts. The bank has developed new marketing strate
gies with the help of technology to serve these customers. Vibha Singh spoke to
Manpreet Kochar, Deputy Vice President – Marketing, about the future plans of th
e bank. A report:
Kotak Mahindra Bank has posted significant growth in the last one year, with dep
osits having grown 56%. Disbursement of loans - car finance, corporate finance,
personal loans and home loans - has also seen a considerable increase during the
year. The bank’s CAGR stands at 51% growth for 2003 - 2007. Bank accounts too h
ave seen a significant rise - 77% increase in customer base. This shift is slow
but subtle and is expected to change the financial landscape. The bank has regis
tered a profit of Rs 1.41 billion in the last fiscal.
The bank effectively uses technology for its marketing functions. It aims at sea
mless application integration, improved customer experience and a consistent vie
w of the customer data so that its staff could improve productivity and launch s
uccessful campaigns.
The bank offers several value added services to customers including netc@rds, be
st compliments cards, Les Concierges, bill payments, home banking services, mutu
al funds on net, electronic fund transfer on net, mutual fund on phone and other
investment platforms. The bank’s experience has been that different customers p
artake these at different magnitude, depending on their comfort for risk appetit
e and technology friendliness.
Says Manpreet Kochar, deputy vice president, marketing of the bank: “We dissemin
ate the value-added service information through our monthly account statements,
SMS, outbound calls, merchandise, posters in branches, etc. The mode of contact
also depends on the past history of services availed of by the customer. In gene
ral, the customers do look for such value-added services apart from the plain va
nilla banking services offered. Nearly 75,000 SMS messages are sent on daily bas
is for different services. Also, for our marketing initiative we utilize the int
ernet providing information about the new products and services.”
The bank’s Taxshax.com is a perfect combination of precision, flexibility and ea
se-of-use. It enables the customer to systematically put together everything tha
t is needed to file tax returns by seeking small bits of relevant information on
each screen in a simple question-answer format. In addition, the customer’s fin
ancial details are kept safe behind 128-bit encryption and password security.The
bank has an arrangement with Indian Airlines to sell airline tickets. Indian Ai
rlines has enabled e-ticketing on its website, www.indian-airlines.in, and the b
ank is the first private sector bank to offer its payment gateway service on the
website. The service is free for all customers registered for Kotak Bank Paymen
t Gateway service. Kochar says the bank get nearly 350 customers for the service
on a monthly basis.
The bank’s internet banking users can, besides purchasing Indian Airlines ticket
s, also transfer money to Kotak Securities account, make purchases on more than
3000 merchant websites, pay VISA credit card bills online, transfer money online
to any VISA debit card within the country, phay utility bills, make donations a
nd pay for subscriptions online across more than 60 billers.
The bank has a ‘best compliments card’, a prepaid fixed-denomination card that c
an be bought from any of the bank’s branches. Available in denominations of Rs 5
00 and above and in multiples of Rs 500 (to a maximum of Rs 25,000), the card ca
n be used like a debit and credit card at any Visa outlet across the country. It
provides freedom and convenience both to the purchaser as well as the recipient
. It can be bought by anyone, including non-customers, from any of the bank’s br
anches.
The bank has arrangements with UTI Bank and HDFC Bank under which its customers
can use several hundreds of ATMs of these banks across the city. There is a mino
r cost involved in the service. But the arrangement has brought in savings for t
he bank by way of infrastructure costs. The bank has plans to accept all VISA ca
rds free of cost.
The bank has tied up with payments gateway services provider Avenues India to in
troduce a service whereby the bank’s customers can buy goods and services and bo
ok hotel rooms at over 4,000 merchant sites recognized by Avenues. Customers can
directly pay through their Kotak Mahindra Bank Net Banking account. The bank wi
ll use Avenues’ platforms, CCAvenue.com, which is India’s largest neutral online
payment gateway and ResAvenue.com, which is a reservation engine with built-in
payment gateway for the hospitality industry, for the service.
The bank has been investing heavily in technology from day one. It has earmarked
Rs 1 billion for such investment and so far expended 35% of this for expanding
its branch network. Kochar says the bank has built its technology around a singl
e customer number irrespective of the number of accounts held by the customer. T
he bank’s primary focus for the year is to expand its network through branch and
ATM launches. In addition, it is focusing on CRM implementation, enhancing anal
ytical tools and launching priority banking products for the SME sector. .
Ixsight Scrubbix and DeDuplix to identify unique individual and household custo
mer relationships for merging 8 different entities to form a new bank.
The Customer
Kotak Mahindra is one of India s leading financial institutions, offering divers
e finance solutions, that encompass every sphere of life. From Corporate Finance
to Retail Finance to Investment Banking, to Mutual Fund, to Life Insurance, the
y meet the everyday financial needs of an individual as well as a corporate gian
t.
Kotak Mahindra has international partnerships with Goldman Sachs (one of the wor
ld s largest investment banks and brokerage firms), Ford Credit (one of the worl
d s largest dedicated automobile financiers) and Old Mutual (a large insurance,
banking and asset management conglomerate). The Group operates in over 50 cities
in India and the USA, UK and UAE, employing over 1100 dedicated professionals a
nd services a client base of over a half million customers.
To offer prompt and efficient service to its clients, the Group has been structu
red into three SBUs of Wealth Management, Knowledge Management and Asset Managem
ent. Through 8 companies created for the purpose of the above, Kotak Mahindra ha
s operations in the areas of Retail Broking, Mutual Funds, Investment Banking ,
Debt Trading, Auto Finance, Corporate & Technology Finance and Consumer Finance
to name a few.
Kotak Mahindra Finance Ltd. (KMFL) would be shortly converting itself into a Com
mercial Bank bringing all its operations under a single head. The new Bank is du
e to be launched by the last quarter of the current fiscal, and is expected to o
ffer a wide range of services to retail and corporate customers across India
As part of its IT strategy, one of Kotak Mahindra s early initiatives was to com
bine the various customer databases across the various companies into a single c
entral repository containing unique individuals and other business and family re
lationships. The Data server was on an Oracle / Unix Platform. In order to gain
an early advantages the Group needed to meet critical time-frames.
The Challenge
1. To identify and extract relevant data from as many as 8 host systems.
2. To be able to get from the IT managers in each of the 8 companies, the v
arious non-address static information regarding the data.
3. To understand and solve the anomalies represented by this data in the sh
ort available time of no more than 6 weeks.
4. To generate a single database consisting of cleansed, deduped and enrich
ed data consisting of unique corporate and individual customers.
5. To map and combine entire data (address and non-address) across the vari
ous systems into a single destination system on Oracle running on Unix.
The Solution
Kotak Mahindra deployed Datafix solutions from Spectrum Business Support Limited
(now part of Ixsight Technologies Pvt. Ltd.) in understanding data-related issu
es, anomalies and exceptions in the data and resolving them. The Ixsight team pr
ovided its considerable experience and knowledge of working with data related is
sues to identify problem sources and fixes.
Ixsight tools were used to cleanse, standardize and dedupe the data of over 1 mi
llion in a short span of 25 days, and to provide a unique base of Individuals an
d Households. The data covered more than 25 metros and mini-metros including som
e from rural India as well. Customised rules were generated and provided for the
various types of data depending on customer type (Corporate or Individual), cu
stomer location and customer address.
Ixsight leveraged the full power of its automated routines, data-sensitised manp
ower, comprehensive master tables and experience in the financial domain to unde
rtake this task as a time-critical mission. The project also included an increme
ntal deduplication round at the very end, to match new records added in the inte
rim while the cleansing process was going on, with the already matched data.
In addition to name and address information, non-address information like marita
l status, date of birth was also extracted.
2.3) COMPARISON MATRIX:

PARAMETERS ICICI HDFC KOTAK ING VYSA H.S.B.C
All India Branches 580 535 134 14000 63
No. of Branches in Bangalore 30 25 6 77 12
All India ATM’s 1800 1313 238+ accessible to H.D.F.C. A.T.M. 4342
123
No. of ATM’s in Bangalore 133 110 8 91 2
24-hr Branches NO NO NO YES(airports) NO
Average Quarterly Balance Depend upon product Depend upon product
Depend upon product Depend upon product Depend upon product
Free Financial Statements Monthly Quarterly Monthly Pass Book Entry
Quarterly
Maximum ATM Withdrawal 25000 15000 25,000 up to 75,000 (acc. To product fea
ture) 15000 25000
Charges For Domestic Debit Card (primary holder) Free Free Free
Free 1st Year
free
Charges For Domestic Debit Card (joint holder) Free Free Free Free
1st Year
Debit Card Fees (international) Free Free Free Free 1st Year
Bill Payment Of Utilities Airtel, BSNL’ LIC Orange,
LIC,MTNL,BPL Airtel, BSNL’ LIC, Vodafone, No No
Phone Banking Timings 24hr 24hr 24hr 24hr 24hr
Overdraft Facility No Yes By default No Yes
Mobile Phone Banking Yes Yes Yes No No
Free Demat Account Yes Yes No No No
Value Added Savings Account Yes No Yes Yes No
INVESTMENT ACCOUNT On request On request By default No
No
2.4) PRESENT STATUS OF ORGANIZATION
The Kotak Mahindra Group has since its inception ,been a leader in providing new
products and services to clients .Its belief that –“As boundaries diminish , fi
nancial markets will evolve towards a new world order .It will not longer be num
bers that will distinguish one company from other the IDEAS will be the key diff
erence .
The Group has a net worth of over Rs.2000 Crores, and employs more than 6000 peo
ple in its business. It services a customer base of over 10, 00,000.
Its has a distribution network of Branches, franchisees, Representative offices
and satellite offices across 216 cities and towns in India and offices in New Yo
rk, London, Dubai and Mauritius.
Some of the IDEAS Kotak Mahindra has put into action are:
India’s first Gilt Fund : K GILT
India’s first pre-approved consumer finance brand : K VALUE
India’s first book building for an IPO :HUGES
The first safety net for investors : GODREJ SOAPS
Kotak mahindra has diversified its business in many segments that is:
A. Kotak Mahindra Bank Ltd.
B. Kotak Mahindra Primus Ltd
C. Old Mutual Life insurance ltd
D. Kotak Securities Ltd
E. Kotak Mahindra Capital Company Ltd
A. Kotak Mahindra Asset Management company ltd(KMAMC)
Kotak Mahindra asset management Company ltd (KMAMC) a wholly owned subsidiary Ko
tak Mahindra bank ltd and the asset manager for Kotak Mahindra mutual funds (KMM
F). (KMAMC) started operations in Dec, 1998 and has over 4, 20,000 investors in
various schemes. KMMF offers schemes catering to investors with varying risk-ret
urn profiles and was the first house in the country to launch a dedicated gilt s
cheme investing only in government securities.
India Kotak Mahindra bank plans issue, hires Citi India s Kotak Mahindra Bank (K
TKM.BO: Quote, Profile, Research) plans to issue up to 17 million shares, for wh
ich Citigroup (C.N.: Quote, Profile, Research) is one of the managers, Chief Fin
ancial Officer Jaimin Bhatt said on Monday. But he declined to comment on a repo
rt in the Economic Times daily that the bank was set to raise about $400 million
through a qualified institutional offering.
The newspaper said on Monday the bank was in talks with investors including priv
ate equity and foreign insurance firms, funds of billionaire Warren Buffett as w
ell as T Rowe Price. "We have shareholders approval for 17 million shares. Citi
bank is one of the bankers," Bhatt told Reuters, without elaborating. The privat
e-sector bank had got the approval in July to issue the shares in domestic and/o
r international markets.
The Economic Times had said, citing unidentified sources, the bank was looking t
o place the shares at around 1,050 rupees ($26.65) per share.
It said the bank had already held road shows in the United States, Europe, Hong
Kong and Singapore. Shares in Kotak Mahindra were down 6.7 percent at 895 rupees
at 0915 GMT in a weak Mumbai market. Indian banks have been raising funds to me
et robust demand for loans from consumers and companies. State Bank of India (SB
I.BO: Quote, Profile, Research), the biggest lender, has said it plans to raise
at least $2.5 billion in a share sale around the end of the year. Second ranked
ICICI Bank (ICBK.BO: Quote, Profile, Research)(IBN.N: Quote, Profile, Research)
raised $4.9 billion this year in India s biggest-ever share sale. ($1=39.4 rupee
s)
2.5) FUTURE PLANS AND FORECASTS
Earnings set to show 24% CAGR during FY06-09F
We believe swift changes in capital market conditions might have affected market
earnings growth expectations for KMB. This is reasonable, in our view, given th
e dominance of capital market revenues and profits in the bank s performance so
far. However, we believe medium-term earnings prospects could benefit from the b
uild up of the commercial banking and life insurance franchises and the restruct
uring of minority interests in various subsidiaries. We forecast a 24% earnings
CAGR during FY06-09F. Significant improvement in the quality of earnings and red
uced concerns about execution risks of the growth strategy should drive up confi
dence on KMB s growth prospects.
Seems to be migrating towards a less volatile earnings profile
KMB s commercial banking and life insurance businesses should play a dominant ro
le in shaping earnings for FY07 through FY09. Consumer bank distribution should
achieve critical mass by FY07, based on the bank s expansion targets. We expect
the deposit franchise and wealth management to gain significant momentum thereaf
ter.
Demand for new loans remains strong. We believe the life insurance business will
continue to expand its distribution, leading to strong growth in first-year pre
miums (FYP). Capital markets should continue to contribute significantly to cons
olidated revenues and earnings but their dominance is set to decline over the me
dium term, in our view.
Maintain Buy; target raised by 33% to Rs306

Sustained earnings momentum, rising confidence in future earnings growth and red
uced concerns about execution risks should drive KMB s stock price performance h
igher. We maintain our Buy recommendation on the stock and raise our target pric
e to Rs306 (from Rs230), with 27% potential upside from the current price. Our t
arget price upgrade reflects value accruing from the buyout of minority interest
s by KMB in its subsidiaries as well as the upgrade to earnings. We have upgrade
d our earnings forecasts for FY07 and FY08 by 56% and 38%, respectively. Key ris
ks to our recommendation, forecast and target price include a sharp decline in r
evenues and profits from capital markets and volatility inherent to the life ins
urance business.
Earnings set to show 24% CAGR during FY06-09F
Market consensus would probably expect KMB’s earnings growth prospects to change
in FY07, given the volatility in the Indian equity capital markets since May 20
06. This expectation would seem reasonable, given the dominance of the capital m
arkets in KMB’s performance over the last two years. Capital-market operations c
ontributed 64% of consolidated earnings before minority interests in FY06 up fro
m 57.5% a year ago. KMB’s earnings grew 90% in FY06, but earnings from capital-m
arkets operations grew 129%. The dominance has been so overwhelming it would see
m logical to expect an adverse impact if the market sees significant volatility
with declining volumes.
However, we believe there will be upside to the current street estimates. This s
hould surprise market expectations positively. We believe KMB’s consolidated ear
nings will show a 24% CAGR from FY07 through FY09. Earnings are set to rise 56.5
% in FY07F and should show a 17% CAGR during FY08-09F. The key reasons why we ex
pect earnings to rise strongly in FY07 are:
■ The current secondary market trading volumes appear depressed compared to thos
e seen from March-May 2006, but they are significantly higher than those seen du
ring 1H06. We expect this to yield further upside in terms of revenue and profit
s in FY06 for the securities business.
■ Restructuring minority interests (JVs with Goldman Sachs and Ford Credit) shou
ld yield upside to consolidated earnings after minority interests. The minority
interest attributable to the JV partner in the capital markets businesses amount
ed to Rs731m in FY06.This should accrue fully to KMB shareholders now. The buyou
t of Ford Credit’s interest in the auto financing company should enable KMB to i
mprove returns from the capital employed. We estimate this will yield upside of
Rs460m to KMB shareholders.
■ While the strong performance of the capital-markets businesses attracted
attention and overshadowed the performance of other businesses, the profits of l
ending, commercial banking and life insurance have grown 49% in FY06. We expect
the commercial banking and life insurance businesses to show strong traction in
their operating performance. We forecast profits from these businesses will rise
by 45%. We expect earnings from the capital markets businesses to peak by FY07
and the dominance of these businesses in revenues and profits to decline thereaf
ter. We forecast earnings from the capital-markets businesses will grow 2-3% dur
ing FY08-09
and we see profits from lending, commercial banking and life insurance growing s
trongly (41% in FY08 and 37% in FY09).
Upgrading estimates for FY07 and FY08
What does all this mean for KMB? We upgrade our consolidated earnings forecast f
or the bank by 56% for FY07 and by 38.5% for FY08, given the changes in the oper
ating businesses and the buyout of minority interests. As discussed elsewhere in
this note, the upside to our FY07 expectations arises mainly from the restructu
ring of the ownership of KMB’s key subsidiaries. The upside to our FY08 expectat
ion comes from stronger performance in commercial banking and lending. We are ah
ead of consensus estimates by 25% for FY07 and 17% for FY08. We believe the curr
ent IBES consensus estimate does not reflect fully the benefits from the restruc
turing of the ownership of key subsidiaries. We are ahead of consensus estimates
by 25% for FY07 and 17% for FY08. We believe the current IBES consensus estimat
e does not reflect fully the benefits from the restructuring of the ownership of
key subsidiaries. The focus of the market has shifted to sustainability of reve
nues and profits. Therefore, we advise investors to focus on the following issue
s:
■ Earnings will likely surprise expectations on the upside, driven by positive c
hanges in the business mix of core lending and banking activity. The market may
believe KMB’s prospects will be adversely affected with the changes in capital m
arket conditions, without discounting the positive changes in the bank’s other b
usinesses. With a decline in the volatile constituent of earnings, the sustainab
ility of growth rates should be less of a concern. Despite a challenging operati
ng environment, KMB’s prospect should compare favourably to those of its peers.
■ Our medium-term outlook for ROE has improved from 12-13% forecast earlier to a
bout 16-16.5% now. The upside to the return ratios arises mainly from restructur
ing the ownership structure of key subsidiaries. We believe the bank has more ca
pacity to gear the balance sheet and boost returns. However, its ability to alte
r its capital structure seems constrained in the medium term.
■ KMB has the potential to deliver an ROE of well over 22-24% in the long run, i
n our view, through the optimal utilisation of excess capital available within t
he group. We estimate the bank’s excess capital was around Rs7bn as of 31 March
K O T A K M A H I N D R A B A N K 1 9 J U N E 2 0 0 6 12
I N V E S T M E N T V I E W
2006. Without going into details, excess capital available can be estimated from
the following:
■ Proceeds realised from sale of KMB’s interest in Hutchison Essar Telecom
amounting to Rs3.8bn; the proceeds are currently invested in capital gains
tax-saving bonds and have a lock-in of three years.
■ We estimate the excess capital available with the investment bank and the
securities company to be Rs3bn-3.5bn. Currently, this is being utilised for
arbitrage trading. Clearly, the capital could be put to optimal use by bringing
it
up to the parent level. Excess capital available within the group should further
increase as the capital markets continue to generate strong returns without req
uiring significant investment.
Management has many times affirmed its commitment to improve the ROE of the cons
olidated entity. We believe the buyout of minority interests in key subsidiaries
and the sale of non-strategic investments shows management’s commitment. Furthe
r restructuring over the medium term could be constrained by regulatory conditio
ns, which we believe could ease in the next three to five years.
Maintain Buy; target set at Rs306
We value KMB at Rs306 using a three-stage DDM methodology, assuming a COE of 13.
6% (Rf of 7.5%, MRP of 5.5% and stock beta of 1.1x), a dividend payout ratio of
10% and a terminal growth rate of 12% beyond the explicit growth period. Our ass
umptions about a sustainable growth rate take into account the strong position K
MB enjoys in the capital markets businesses, the bank’s ability to achieve econo
mies of scale in commercial banking and life insurance and access to capital the
group has to fund future growth. Our target yields 27% potential upside from th
e current prices
PRODUCT AND SERVICES PROFILE OF THE ORGANIZATION:
ACE SAVINGS ACCOUNT
• Free access at all domestic and international VISA ATMs
• Free investment account
• Dedicated relationship manager
• Online trading account
• At-Home services
Kotak Mahindra Bank s Ace Savings Account has been designed as a gateway to a wo
rld of financial benefits and privileged banking transactions. The account carri
es benefits ranging from personal investment advisory services to concierge serv
ices to free banking transactions. You will find that this package of services a
nd privileges is unmatched by any other savings account in the market.
Features & Benefits
Free access at all domestic and international VISA ATMs You no longer have to wo
rry about locating your Bank or Partner Bank ATM - Use the first VISA ATM that y
ou spot, for free cash withdrawal or balance enquiry transactions. So walk into
any VISA ATM in India or abroad to withdraw cash or for balance enquiry.
Multiple access channels Access your account anytime through your land line, mob
ile phone or internet to get information on your account balance or track your t
ransactions. You can even transfer funds through Phone Banking or Net Banking.
Financial payments facilitated through the savings account Use the free Kotak Pa
yment Gateway to make online payments for your utility bills, credit cards, onli
ne trading of shares or even online shopping. All this at the click of a mouse!
Quick and easy funds transfer Transfer funds easily and with speed, to a benefic
iary account at another bank. You can avail of this facility by walking into any
of our branches or by simple logging on to Net Banking. You also get a free mul
ti-city cheque book so that money from your account is transferred to the benefi
ciary s account at any of our branch locations, in the fastest possible time.
Free banking transactions You can issue demand drafts or send cheques for collec
tion at all our branches for no extra charge.
Free At-Home services Use our At-Home services to make your Utility Bill payment
s like electricity, telephone, mobile phone bills etc. You can also get your doc
uments picked up from your business place. This facility is available at select
cities absolutely free of cost!
Attractive returns Earn better returns in your savings account, with our 2-Way S
weep facility that automatically sweeps out idle funds, above a threshold, from
your account into Term Deposits. These Term Deposits sweep back into your accoun
t to meet fund requirements when your withdrawals exceed the balance available i
n your account, thereby providing you maximum liquidity.
Free investment account Use the Net Banking facility to purchase/redeem mutual f
unds online while directly debiting / crediting your bank account. Further, you
get a free investment account for tracking your investments with the Bank. This
account provides you a consolidated view of all your mutual fund investments acr
oss schemes with updated returns status, latest NAV information and research rep
orts.
Dedicated relationship manager You get a one point contact for all your banking
related queries and transactions. Your relationship manager is qualified to help
you with financial planning and sound investment decisions in order to meet you
r financial goals.
Family Savings Account The Kotak ACE Savings package allows you to extend the Ko
tak banking experience to three of your family members. The Family Savings Accou
nt comes equipped with all the benefits of a regular savings account with a spec
ial average quarterly balance of Rs.5000/- only.
Online trading account Link your savings account to your online trading with Kot
ak Securities to enable transfer of funds from your bank account to your account
with KS and vice versa.
EDGE SAVINGS ACCOUNT

• Wide ATM access
• Financial payments facilitated through the savings account
• Quick and easy funds transfer
Kotak Mahindra Bank´s Edge Savings Account is a complete financial package custo
mized to suit your individual banking needs. Our constant endeavour is to enable
regular financial transactions through our online platform so that most of your
payments can be made directly through your account or card.
Features & Benefits
Wide ATM access through the Kotak Mahindra Bank Debit Card You can walk into any
KOTAK or HDFC Bank ATMs to withdraw cash or enquire your balance at no extra ch
arge!
Multiple Access Channels Access your account through your phone, mobile phone or
internet to get information on your account balance or track your transactions.
You can even transfer funds through Phone Banking or Net Banking.
Financial payments facilitated through the savings account Use our free Payment
Gateway to make online payments for utility bills, credit cards, online trading
of shares or even online shopping.
Quick and easy funds transfer Quick funds transfer to a third party account with
another Bank is available across 15 locations through Net Banking. You also get
a multi-city cheque book so that money from account is received by the benefici
ary in the fastest possible time.
Free investment account You can open an investment account, and use the Net Bank
ing facility to purchase/redeem mutual funds online while directly debiting / cr
editing your Bank Account. Besides this you get a consolidated view of all your
mutual fund investments across schemes with updated returns status, latest NAV i
nformation and research reports.
PRO SAVINGS ACCOUNT
• Free ATM access all domestic VISA ATM network
• Free investment account
• Quick and easy funds transfer
• Dedicated relationship manager
Kotak Mahindra Bank´s Pro Savings Account is an account packed with powerful fea
tures to provide you a superior banking experience at a very comfortable balance
requirement. We provide you a relationship manager who will specifically take c
are of your banking and investment needs.
Try the benefits of this account and you will never want to bank elsewhere!
Features & Benefits
Free ATM access all domestic VISA ATM network Walk into any VISA ATM in India to
check your balance or withdraw cash absolutely free. You no longer have to worr
y about locating your Bank or Partner Bank ATM – Use the first VISA ATM that you
spot, for cash withdrawal or balance enquiry transactions.
Multiple access channels Access your account through your phone, mobile phone or
internet to get information on your account balance or track your transactions.
You can even transfer funds through Phone Banking or Net Banking.
Free investment account You can open an investment account, and use the Net Bank
ing facility to purchase/redeem mutual funds online while directly debiting / cr
editing your bank account. Besides this you get a consolidated view of all your
mutual fund investments across schemes with updated returns status, latest NAV i
nformation and research reports.
Financial payments facilitated through the savings account Use our free Payment
Gateway to make online payments for utility bills, credit cards, online trading
of shares or even online shopping.
Quick and easy funds transfer Quick funds transfer to a third party account with
another Bank is available across 15 locations through Net Banking. You also get
a multi-city cheque book so that money from account is received by the benefici
ary in the fastest possible time.
Dedicated relationship manager You get a one point contact for all your banking
related queries and transactions. Your relationship manager will also help you w
ith financial planning and sound investment decisions.
Free banking transactions You can issue demand drafts or send cheques for collec
tion on branch locations without any charge to your account.
Free At-Home services Use our At-Home services to make your Utility Bill payment
s like electricity, telephone, mobile phone bills etc. You can also get your doc
uments picked up from your business place. This facility is available at select
cities absolutely free of cost!
TERM DEPOSIT
• Ease and convenience of operation
• Liquidity through overdraft or sweep-in facility
• No penalty on pre-mature encashment
• Nomination facility available
Give your portfolio stability of returns and safety and liquidity. Invest in Kot
ak Bank Term Deposit. We offer attractive returns on term deposits and investing
in them is really simple and convenient.
Features & Benefits
Ease and convenience of operation If you are an existing customer, you can place
a term deposit through Phone Banking or Net Banking. What s more, you can even
renew this deposit by placing an instruction over phone. Needless to mention, he
can do all this and more by walking across into any of our branches.
Liquidity through overdraft or sweep-in facility Your deposit will be available
to you should you need them in case of an emergency. You can avail upto 85% over
draft against your term by paying 2% above your deposit rate. This facility is a
vailable for deposits above Rs.50,000 for a tenure of 181 days or more. You can
also choose to link your term deposit to your savings / current account, whereby
if need be, your term deposit will automatically be encashed to meet your withd
rawal requirement.
No penalty on pre-mature encashment In case your term deposit is pre-maturely en
cashed, you will earn interest at the rate prevailing on the date of deposit for
the withdrawn amount.
Nomination facility available You can choose to avail nomination at account leve
l i.e. nominate different persons for different term deposit accounts. If nothin
g is specified while booking a term deposit, nomination at the Customer ID level
will be applied. You can choose to change the nominee through a declaration in
the appropriate form to revise the nomination during the term of the deposit.
MUTUAL FUNDS
Kotak Mahindra Asset Management Company Limited (KMAMC)
Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned subsidia
ry of KMBL, is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC st
arted operations in December 1998 and has over 4 Lac investors in various scheme
s. KMMF offers schemes catering to investors with varying risk - return profiles
and was the first fund house in the country to launch a dedicated gilt scheme i
nvesting only in government securities.
We are sponsored by Kotak Mahindra Bank Limited, one of India s fastest growing
banks, with a pedigree of over twenty years in the Indian Financial Markets. Kot
ak Mahindra Asset Management Co. Ltd., a wholly owned subsidiary of the bank, is
our Investment Manager.
We made a humble beginning in the Mutual Fund space with the launch of our first
scheme in December, 1998. Today we offer a complete bouquet of products and ser
vices suiting the diverse and varying needs and risk-return profiles of our inve
stors.
We are committed to offering innovative investment solutions and world-class ser
vices and conveniences to facilitate wealth creation for our investors
OTC – SISTAMATIC INVESTMENT PLAN
Kotak Mahindra Old Mutual Life Insurance Ltd.
Kotak Mahindra Old Mutual Life Insurance is a 76:24 joint venture between Kotak
Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra Old Mutual Life Insurance
is one of the fastest growing insurance companies in India and has shown remarka
ble growth since its inception in 2001.
Old Mutual, a company with 160 years experience in life insurance, is an interna
tional financial services group listed on the London Stock Exchange and included
in the FTSE 100 list of companies, with assets under management worth $ 400 Bil
lion as on 30th June, 2006. For customers, this joint venture translates into a
company that combines international expertise with the understanding of the loca
l market.
Features Edge Savings Account Pro Savings Account Ace Savings Acco
unt
Enjoy unlimited free transactions at over 1 million ATMs worldwide Free tra
nsactions at Kotak and HDFC Bank ATMs Free transactions at over 18,000 ATMs in
India Yes
Cash withdrawal Limits at ATM/Shopping limits on the Debit Card Rs.25,000/Rs.25,
000 Rs.25,000/Rs.25,000 Rs.75,000/Rs.50,000
Savings account benefits to Family members at much lower balance requirements
No Yes - 1 account available to a family member Yes - 3 accounts availab
le to family members
Free Demand Drafts No Upto Rs.5 lac p.a. Upto Rs.30 lac p.a.
Personal Investment Advisor No Yes Yes
Free At-Home Services (Concierge services) No Yes Yes
Online Trading Account - Account opening fee Rs.750 Account opening fee of R
s.250 is reversible against brokerage charged in the first 4 months Account
opening fee of Rs.550 is reversible against brokerage charged in the first 4 mon
ths Account opening fee of Rs.550 is reversible against brokerage charged in
the first 4 months
Free Investment account Yes Yes Yes
Free Outstation cheque collection at Branch locations Yes Yes Yes
2 Way Sweep into a Term Deposit Yes Yes Yes
Free Online Payment facility (Includes funds transfer to another bank account or
a Debit Card or a Credit Card) Yes Yes Yes
Mutual Funds through Net Banking Yes Yes Yes
Free Multi City Cheque books Yes Yes Yes
Free Home Banking Yes Yes Yes
Average Quarterly Balance Requirement Rs.10,000 Rs.20,000 Rs.75,00
0
2.7) ORGANIZATION STRUCTURE:
A
KOTAK MAHINDRA BANK LTD [SPONSOR]
THREE
TYRE
KOTAK MAHINDRA TRUSTEE CO. LT
D [TRUSTE STRUCTURE
KOTAK MAHINDRA BANK LTD
BOARD OF DIRE
CTORS
CHAIRMAN PRESIDENT CH
IEF EXECTIVE OFFICER
/MANAGING DIRECTOR
SENIOR VICE PRESIDENT
MARKETING
SALES INVESTMENT MANAGEMENT
FUND MANAGEMENT TEAM
CHIEF INVESTMENT OFFICER COMPLIANCE OFFICER
INVESTOR SERVICE OFFICER
MANAGERS
REIGONAL MANAGERS
BRANCH MANAGERS
ASSISTANT BRANCH MANAGERS
CHAPTER-3
DISCUSSION ON TRAINING
3.1) STUDENT’S WORK PROFILE:
Working for KOTAK MAHINDRA BANK is a good experience as the company provides the
platform for its employees and it was being provided by the company for us also
. I am working here as asstt. Manager for the RETAIL LIABILITIES department
In the RETAIL LIABILITIES section we are suppose the market different products o
f the company. As Kotak group is known for its investments and the trading and m
ainly they concentrate with the people having high net income as we believe in q
uality
Promoting Different products are as follows:
• Saving accounts
• Kotak convenient household investment plan
• Kotak flexi plan
• Kotak securities product (De-mat, online trading account)
• Fixed deposits
The above mentioned products are the best in the category and gives good returns
for the customers
Approaching the customer:

Approaching the customer should be right as the customer is necessary as most of
the people make their mind of either purchasing or not to purchase that product
:
• Cold calling
• Through tele caller leads
• By calling on the data available
There are two types of the available data, one is known as compiled list and the
other one is known as reference list
What I found during my sales is like maximum of the population of Bangalore know
s Kotak as a investment company.
But I found response from the customer is very good about Kotak product’s
At the end of the day whatever be the sales I have done I have to give the whole
one to my senior
And then he has to do further work for the processing of those forms.
3.2) LIVE EXPERIENCE

The field of sales and marketing is not just as small as it seems so. Everyday e
very marketing person has different type of experience encountered at the end of
the day and it is such a field that the person continues in the learning proces
s, it does not stops at any point of time and we are getting something extra to
learn everyday.
Even in my part a lot of times I faced similar problems when the results didn’t
match the hard work and performances. Its not only that doing work only matters
but the thing is that the work should be done smartly.
That’s what I like to be, but always it does not work.
On the joining month, in first week of October, the initial training was being g
iven to me by my senior manager for about a week. Afterwards we were sent to the
field under the guidance of senior, for about a week I was shadowing my senior
because I was new to the field, my senior manager wants that I will learn as muc
h as possible
And under his guidance I have learnt a lot of things like how to know the custom
er well while prospecting him, how to identify the need of the customer, to pro
vide only with the solution that suits or meet the requirements of the customer.
While going for the call we met different people with different requirements, so
their we give a blend of the services available with us. Its very difficult to
provide the exact thing what the customer wants because he wants some offers bei
ng delivered to him which may or may not come under the category in which he is
investing. That is the tough situation for us as we have to retain the customer
also and cant go beyond the prescribed limit as both are the boundations for us.
Because the people are much fascinated with the brand that they are dealing wit
h, which is a professional group and much more known for the investments.
3.3) CONTRIBUTION TO ORGANIZATION:
I joined the organization from October 2007. A training regarding the system and
the product and the services was there. Then before sending me to field individ
ually I was sent with one colleague who was senior to me so that I can have a li
ve experience of what we were taught in the training room. Then I started going
alone to work in the field. During my fieldwork the contribution I made to the o
rganization was
• Queries handled = 40
• Contacts generated =32
• Leads generated = 27
• sales closed= 17
CHAPTER-4
STUDY OF SELECTED RESEARCH PROBLEM
4.1) STATEMENT OF RESEARCH OBJECTIVE:
The main objective of research was to measure the level of investments among peo
ple and the nature of the investments people are doing.
An attempt has been made to measure various variables playing in the mind of pe
ople who invest in mutual funds in terms of safety, liquidity, services, returns
, cost of investment, tax efficiency etc. involving the people of different age
group with different income.
4.2) STATEMENT OF RESEARCH PROBLEM:
Mutual fund industry has come a big way since its inception in 1963 in India .Th
ere are many AMC’s operating in competitive environment and trying to cater vari
ous needs of prudent investors so that they can have more and more market share
.However my motive was to find out how much the people are investing and in what
mode they are investing as in terms of growth or returns.
A sample of 100 people was taken for the study. The study is based on the inform
ation collected by administering a structured questionnaire given to the people.
The project has within its preview the analysis of the psychological mindset of
the respondents and gather’s the subjective and objective details from the respo
ndents, which in turn gives the condition prevailing in potential market.
4.3) RESEARCH DESIGN AND METHODOLOGY:
The research project commenced with exploratory research to obtain a deeper insi
ght of problem in hand. The exploratory research design was particularly helpful
in breaking broad and vague statements into smaller and more specific ones.
After the exploratory research was complete a descriptive research was also cond
ucted to study factors in sample of respondents. It focused on the percentages,
bar graphs, pie charts and histograms.
METHODOLOGY:
The study is based on survey technique. The study consists of analysis about
customer’s awareness and satisfaction of Kotak Mahindra Bank Ltd. For the purpos
e of the study 100 customers are picked up and their views solicited on differen
t parameters. The methodology adopted includes
Questionnaire
Random sample survey of customers
Discussions with the concerned
Personal interviews and informal discussions were held with Kotak Mahindra Bank
Ltd customers to ascertain the awareness and satisfaction level. Further applyin
g simple statistical techniques has processed the data collected.
POPULATION:
All individual residing in LAVELE ROAD and surrounding areas i.e. walk in custom
ers in KOTAK Mahindra bank.
SAMPLE SIZE:
For the purpose of market survey the sample constituted various people with diff
erent occupation and investment horizons. The sample size was 100 people who wer
e selected on convenience basis.
SAMPLING TECHNIQUE:
Convenience Sampling
SAMPLING PLAN:
Sampling since segment wise members of KOTAK Mahindra bank Ltd. are not
available for the overall members was considered for the study. 100% coverage wa
s difficult within the limited period of time. Hence sampling survey method was
adopted for the purpose of the study. Therefore the sampling was done as random
sampling.
Population: (universe) customers of KOTAK Mahindra bank Ltd.
Sample size: A sample of fifty was chosen for the purpose of the study.
Sample considers of the members of KOTAK Mahindra bank of category A, category B
, category C i.e. income wise we considered them.
Sampling Methods: Since due to time constraint non-probability sampling
was chosen for the study.
Sampling procedure: From large number of members of KOTAK Mahindra bank
Ltd. were randomly picked up.
Field Study: directly approached respondents.
DATA COLLECTION METHOD

The data used for the research work was primary data. It was collected by formul
ating a questionnaire to answer in the form of direct interviews. For this purpo
se structured, questionnaire was formed consisting questions which are of multip
le choices, rating scale and close ended in nature. Personal interviews were con
ducted on the basis of questionnaire. it included light from determining their c
urrent investment portfolio to their perception towards these products. Every ca
re was taken to record the true opinion of the respondents. A sample of the ques
tionnaire has been attached in the appendix.
STATISTICAL TOOLS USED
Statistical tools like mean score, percentage, average etc. were used in study f
or the purpose of analysis of data .Charts, figures and graphs were also used in
order to make the data more representable and easy to understand.
FIELD WORK
Great deal of fieldwork was undertaken for the collection of primary data and fi
xing of date and time of personal interviews. Adjustments were made to deal with
the problem of refusal to cooperate and bias of respondents.
4.4) PROCESSING AND ANALYSING THE DATA:

To make the project understandable to the readers the various data information h
as been edited and tabulated using simple statistical tools which is depicted by
diagrams such as charts, graphs, pie charts histograms and percentages so as to
make interpretations at a glance. Interpretations have been done on the data, d
rawing inferences. Relevant summary and conclusions are also drawn from the avai
lable data.
LEVEL OF INVESTMENTS done by different age group people
RESPONSE FREQUENCY PERCENTAGE
YES 62 45
NO 38 55
Table 1
So a sample of 100 was taken consisting of walk in customers in KOTAK M
ahindra bank. Out of the sample studied 62 people which comprised of 62% of the
sample responded that they are aware of mutual funds.
Rest 38%were not aware about the concepts of this industry of investment
.
Mode of investment PERCENTAGE
Bank Deposits 19.76
Shares 13.86
Bonds 12.4
Gold, Silver 17.07
Mutual Funds 14.7
Real Estate 16.47
Others 5.19
KIND OF INVESTMENT OPTION
Table 2
This survey gives indication that still Bank Deposits are the most popul
ar form of investing money, in investors .They want to be on safer side and 19.
76% of sample responds that they prefer this Principal+ interest assured instrum
ent to put their money especially in time when index is fluctuating.
Most popular according to survey has come out to be Gold & Silver which
may be due traditional way of investment.
13.86% of respondents prefer shares to invest money. In this those respo
ndents are also included which do invest for just arbitration. 12.40 % invest in
bonds.
14.70% prefer to put money in Mutual Funds and this is due to the return
and the portfolio they get in this instrument. In spite of risk of both Princip
al + interest this is popular due to fact that risk is diversified.
Rest 12.4% opt for Bonds and 5.19% were also there who put there money i
n other investment options and in real estate respectively.
MODES OF AWARENESS OF MUTUAL FUNDS(INVESTMENTS)
Source Of Information FREQUENCY PERCENTAGE
Newspaper 10 18.18
Friends 11 20
Financial Consultants 9 16.36
Banks 13 23.63
Advertisement 12 21.81
Table: 3
Source: Table 3
The most important source of awareness about mutual fund came out to be
Banks, 23.63 % is the percentage of awareness created by it i.e. 13 people out o
f 55.
Around 12 people out of 55 i.e. 21.81 % became aware through Advertiseme
nt.
20 % i.e. 11 people became aware through Friends.
For 10 people i.e. 18.18 % became aware through newspapers.
And 16.36% i.e. 9 became aware through Financial Consultant.
INVESTMENT PATTERN OF INVESTORS

Mode of Investment PERCENTAGE
Arbitration Type(Frequent buying and selling) 43.33
Short Term Investment 31.70
Long Term Investment 25.00
Table 4
Source: Table 4
So this survey showed good result for the mutual fund industry as most o
f the investors tend to invest for long term although sample give almost equal r
esult for the short term investors(less than 1 year) small term Liquid or Kotak
Short Term Floaters etc where ideal investment period is less than one year.
There are 25% of sample which do like to sell their instrument for profi
t frequently.
AWARENESS LEVEL OF DIFFERENT MUTUAL FUNDS (INVESTMENTS)
VARIOUS MUTUAL FUNDS FREQUENCY PERCENTAGE
HDFC 11 20.00
RELIANCE 5 09.09
KOTAK MAHINDRA 4 07.27
BIRLA 3 05.45
FRANFLIN TEMPLETON 10 18.18
PRUDENTIAL ICICI 4 07.27
SBI 9 16.36
UTI 6 10.90
TATA 1 01.81
OTHERS 2 03.63
Table 5
Source Field Work
Source: Table 5
Out of the sample of 100, out of which 55 were aware of Mutual Funds 11
people i.e. 20% were aware of HDFC Mutual Fund.
10 people were aware of Franklin Templeton M.F. i.e. 18.18% of people.
16.36% i.e. 9 people were aware of SBI M.F.
Birla & Tata had the least awareness level.
AWARENESS LEVEL OF MUTUAL FUND SCHEMES
SCHEMES FREQUENCY PERCENTAGE
EQUITY SCHEMES 12 21.81
BALANCED SCHEMES 6 10.90
DEBT SCHEMES 9 16.36
LIQUID SCHEMES 8 14.54
GILT SCHEMES 4 7.27
OPEN ENDED SCHEMES 10 18.18
CLOSE ENDED 6 10.90
Table 6
Source: Field work
Source Table 6
• Most popular according to research came out to be Equity Schemes with 21
.81% awareness level about them i.e. 12 people out of 55.
• Least popular came out to be Gilt Schemes with 7.27% awareness level.
PERCENTAGE OF INVESTMENT IN MUTUAL FUNDS
RESPONSE FREQUENCY PERCENTAGE
YES 30 54.54
NO 25 45.45
Table 7
Source: Field work
Source :Table 7
Out of 55 who were aware 30 people i.e. 54.54% said they were investing
in Mutual Funds.
And 25 people i.e. 45.45% said they were aware but not investing in it.
INVESTMENT LEVEL OF DIFFERENT MUTUAL FUNDS

VARIOUS MUTUAL FUNDS FREQUENCY PERCENTAGE
HDFC 14 25.45
RELIANCE 8 14.54
KOTAK MAHINDRA 4 7.27
BIRLA 0 0
FRANFLIN TEMPLETON 10 18.18
PRUDENTIAL ICICI 1 1.81
SBI 9 16.36
UTI 6 16.90
TATA 2 3.63
OTHERS 1 1.81
Table 8
Source: Field work
According to the survey HDFC Mutual Fund is tdocument_body=CHAPTER-1

INTRODUCTION
At the top of the customer base pyramid where the accounts are huge, marketing a
nd sales must make joint decisions about product, price, brand, and all kinds of
support.
— Benson Shapiro
1.1) GENERAL INTRODUCTION
1.1(A) Market:
A market is a social arrangement that allows buyers and sellers to discover info
rmation and carry out a voluntary exchange of goods or services. It is one of th
e two key institutions that organize trade, along with the right to own property
. In everyday usage, the word "market" may refer to the location where goods are
traded, sometimes known as a marketplace, or to a street market
Types of markets:
.
Although many markets exist on the traditional sense--such as a flea market--the
re are various other types of markets and various organizational structures to a
ssist their functions.
A market can be organized as an auction, as a shopping center, as a complex inst
itution such as a stock market, and as an informal discussion between two indivi
duals.
In economics, a market that runs under laissez-faire policies is a free market.
It is "free" in the sense that the government makes no attempt to intervene thro
ugh taxes, subsidies, minimum wages, price ceilings, etc. Market prices may be d
istorted by a seller or sellers with monopoly power, or a buyer with monophony p
ower. Such price distortions can have an adverse effect on market participant s
welfare and reduce the efficiency of market outcomes. Also, the level of organiz
ation or negotiation power of buyers, markedly affects the functioning of the ma
rket. Markets where price negotiations do not arrive at efficient outcomes for b
oth sides are said to experience market failure.
Most markets are regulated by state wide laws and regulations. While barter mark
ets exist, most markets use currency or some other form of money.
Markets of varying types can spontaneously arise whenever a party has interest i
n a good or service that some other party can provide. Hence there can be a mark
et for cigarettes in correctional facilities, another for chewing gum in a playg
round, and yet another for contracts for the future delivery of a commodity. The
re can be black markets, where a good is exchanged illegally and virtual markets
, such as eBay, in which buyers and sellers do not physically interact. There ca
n also be markets for goods under a command economy despite pressure to repress
them.
1.1(B) FINANCIAL MARKETS:
The term financial markets can be a cause of much confusion.
Financial markets could mean:
1. Organizations that facilitate the trade in financial products. i.e. Stock exc
hanges facilitate the trade in stocks, bonds and warrants.
2. The coming together of buyers and sellers to trade financial products. i.e. s
tocks and shares are traded between buyers and sellers in a number of ways inclu
ding: the use of stock exchanges; directly between buyers and sellers etc.
In academia, students of finance will use both meanings but students of economic
s will only use the second meaning.
Financial markets can be domestic or they can be international.
Types of financial markets:
The financial markets can be divided into different subtypes:
• Capital markets which consist of:
o Stock markets, which provide financing through the issuance of shares or
common stock, and enable the subsequent trading thereof.
o Bond markets, which provide financing through the issuance of Bonds, and
enable the subsequent trading thereof.
• Commodity markets, which facilitate the trading of commodities.
• Money markets, which provide short term debt financing and investment.
• Derivatives markets, which provide instruments for the management of fin
ancial risk.
o Futures markets, which provide standardized forward contracts for tradin
g products at some future date; see also forward market.
• Insurance markets, which facilitate the redistribution of various risks.
• Foreign exchange markets, which facilitate the trading of foreign exchan
ge.
The capital markets consist of primary markets and secondary markets. Newly form
ed (issued) securities are bought or sold in prima

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CHAPTER-1

Three types of marketing in service industry

Employee’s interactive marketing custom

SERVICE QUALITY MODEL

1.2) OBJECTIVE OF STUDY

Our Corporate Identity

Kotak Group Companies

Kotak Mahindra Capital Company

Kotak Mahindra Asset Management Company

Kotak Mahindra Old Mutual Life Insurance Limited

GOING GLOBAL: Uday wants to ultimately

MARKETING ORIENTED ARCHITECTURE

2.3) COMPARISON MATRIX:

Maintain Buy; target raised by 33% to Rs306

EDGE SAVINGS ACCOUNT

Approaching the customer:

3.2) LIVE EXPERIENCE

DATA COLLECTION METHOD

4.4) PROCESSING AND ANALYSING THE DATA:

INVESTMENT PATTERN OF INVESTORS

INVESTMENT LEVEL OF DIFFERENT MUTUAL FUNDS

According to the survey HDFC Mutual Fund is tdocument_body=CHAPTER-1

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