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8/7/2019 1 Important of financial advisor for mutual fund investors karvy final (2)
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SUMMER TRAINING REPORT
On
IMPORTANCE OF FINANCIAL ADVISOR FOR MUTUAL
FUND INVESTORS
Submitted in the partial fulfillment of the Requirements
of Master of Business Administration
FromGautam Buddh Technical University (GBTU), Lucknow(Formerly known U.P. Technical University, Lucknow)
(Batch: 2009-11)
Guided By: PresentedBy:
Mr. Abhishek chand Pankaj kr. shuklaKarvy consultants ltd. Roll no: 0901670070Lucknow
Submitted at:
Rakshpal Bahadur Management Institute, Bareilly
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PREFACE
The successful completion of this project was a unique experience for me because by
visiting many place and interacting various person, I achieved a better knowledge about
sales . The experience which I gained by doing this project was essential at this turning
point of my career this project is being submitted which content detailed analysis of the
research under taken by me.
The research provides an opportunity to the student to devote his/her skills knowledge and
competencies required during the technical session.
The research is on the topic:
"Importance of financial advisor for mutual fund investors "
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ACKNOWLEDGEMENT
I would like to begin in the name ofGOD - THE ALMIGHTY without of whose
grace and blessing, the present work would not have taken this shape.
I would like to express my deep gratitude and sincere regards for all those people
who helped in the completion of this report. First of all I would like to thank my
project guide Mr. Abhishek chand for their valuable support and guidance.
I would like to make a special mention ourProf. and my faculty guidance Mr. for
giving me their valuable time input that helpful me in giving final touch to this report.
At last, but not least, I own the opportunity to thank my parents, family members and
friends for supporting me at every step and bearing with me.
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Contents
1-Executive summary
2-Introduction
3-Evolution of Mutual Funds
4-Benefits/Risks involved in investing Mutual Funds
5-Types of Mutual Funds
6-Organisation of Mutual Funds
7-History of Indian Mutual Fund Industry
8-Performance of Mutual Funds in India
9-Global Scenario relating to Mutual Funds
10-Karvy Mutual Fund
11- Objective of research
12-Reserch Methodology
13- FINDINGS:
14- RECOMMENDATIONS AND SUGGESTIONS
15- LIMITATIONS
16-Bibiliography
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EXECUTIVE SUMMARY
This project has been a great learning experience for me; at the same time it gave me
enough scope to implement my analytical ability. This project as a whole can be divided into
two parts:
The first part gives an insight about the mutual funds and its various aspects. It is purely
based on whatever I learned at Karvy . One can have a brief knowledge about Mutual funds
and all its basics through the project. Other than that the real servings come when one
moves ahead. Some of the most interesting questions regarding mutual funds have been
covered. Apart from Mutual Funds a light has also been through on Share trading.
All the topics have been covered in a very systematic way. The language has been kept
simple so that even a layman could understand. All the datas have been well analyzed with
the help of charts and graphs.
The second part consists of data and their analysis, collected through a survey done on
100 people. It covers the topic Awareness and Impact level among people about Mutual
Funds and Life Insurance Policies. The data collected has been well organized and
presented. Hope the research findings and conclusions will be of use. It has also covered
why people dont want to go in invest? The advisors can take further steps to approach
more and more people and indulge them for taking their advices.
About the Project
This project gives a Detail study of Importance of financial advisor for mutual fund
investors in relation to Karvy Stock Broking Limited.
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INTRODUCTION
A financial adviser (UK spelling) or financial advisor, is a professional who renders
financial services to individuals, businesses and governments. This can involve investment
advice, which may include pension planning, and/or advice on life insurance and other
insurances such as income protection insurance, critical illness insurance etc, and/or advice
on mortgages
Ideally, the financial adviser helps the client maintain the desired balance of investment
income, capital gains, and acceptable level ofrisk by using properasset allocation. Financial
advisers use stock, bonds, mutual funds, real estate investment trusts (REITs), options,
futures, notes, and insurance products to meet the needs of their clients. Many financial
advisers receive a commission payment for the various financial products that they broker,
although "fee-based" planning is becoming increasingly popular in the financial services
industry.
A further distinction should be made between "fee-based" and "fee-only" advisers. Fee-
based advisers often charge asset based fees but may also collect commissions. Fee-only
advisers do not collect commissions or referral fees paid by other product or service
providers.
Some investment advisors only charge a fee based on the assets managed for the client.
Typically they charge about 1.0 to 1.5% per year to make the investment decisions for the
client. They do not collect commissions.
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ROLEOFFINANCIALADVISOR
The main purpose of a financial adviser is to assist clients in the planning and arrangement
of their financial affairs, such as savings, retirement provisions, tax treatment and wills. To
ensure ethical practices, financial advisers must understand a client's financial situation as
well as their need for financial stability. Finance can be complicated and any adviser has
responsibilities ethically to see that a client's risk is minimized, and monetarily, that money is
maximized within the established risk boundaries.
RETIREMENTPLANNING
One of the major services that financial advisers offer is retirement planning. A financial
adviser should have knowledge of budgeting, forecasting, taxation, asset allocation, and
financial tools and products to establish realistic goals and the strategy by which to reach
them. In the United States, this will include the use of several investment tools such as
401(k)/403(b) Roth account(s), Individual Retirement Accounts/Roth IRAs, mutual funds,
stocks, bonds and CDs.
The financial adviser determines what percentage of the available income is necessary
taking into account tax liabilities, expected inflation, and projected return on investmentto
meet a minimum balance by the client's target age of retirement. This is a fairly
straightforward calculation, and many automated tools do this. The financial adviser's
greatest contribution is asset allocation: determining how to maximize the return on
investment while satisfying the client's risk tolerance.
INVESTING
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Financial advisers may help their clients invest for both long and short term goals. It is the
financial adviser's duty to determine the clients' goals and risk tolerance and then to
recommend appropriate investments. Generally, a long time horizon allows for the advisor to
recommend more volatile investments with potentially greater risks and rewards. Such
investments include direct investment in stocks or through collective investment products
such as mutual funds and unit investment trusts/unit trusts.
If the client has shorter term goals, the adviser should recommend less volatile investments
with shorter time spans. Such investments could include cash deposits, certificates of
deposit, and short term bonds. While these types of investment generally have lower returns
there is less volatility and there is less likelihood of losing principal capital. Although short-
term investments can guard against loss of capital, their value can be eroded by inflation
over longer periods of time.
COMPENSATION
FEE-ONLY
As defined by the review materials for the Certified Financial Plannerexam and the National
Association of Personal Financial Advisors, fee-only financial advisors, such as an
investment advisor, are compensated solely by the client, typically achieved through a
combination of hourly fees (including retainers), financial planning fees, and asset
management fees. Neither advisors nor affiliates may receive commissions, rebates,
awards, finders fees, bonuses or other forms of compensation from others as a result of a
clients implementation of the individuals planning recommendations. [2] The fee-only model
of compensation reduces the potential forconflicts of interest between the advisor and the
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client in that the advisor is not beholden to insurance companies, particular investments,
and other financial companies.
A clear distinction should be made between brokers, who often refer to themselves as "fee-
based" (receiving both fees and commissions) and "fee-only" (someone who never receives
compensation or incentives from a third party.)
A fee-only advisor may reduce conflicts of interest such as:
Advising a client to buy products and make investments when holding cash and other
liquid assets may have been a more suitable recommendation at that time.
An incentive to generate commissions through the unnecessary buying and/or selling
of securities (also known as churning).
An incentive to convert non-cash assets such as real estate and collectibles to cash
and securities so that the advisor can generate a commission.
An incentive to make recommendations that pay higher sales commissions to the
advisor when a less expensive alternative may have been available.
Working on a fee-only basis allows the advisor to:
Customize an investment portfolio that is designed to help the client realize short-
term and long-term investment goals.
Provide simplified performance reporting, making it easy for clients to monitor their
accounts.
Support the client with ongoing professional advice, timely information about
accounts and updates on the worlds financial markets.
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Manage a client's portfolio and make investment changeswithout commissionsas
a client's objectives or the economic climate changes.
COMMISSION-BASED
Many financial advisers receive a commission payment for the various financial products
that they broker, although "fee-based" planning is becoming increasingly popular in the
financial services industry.
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INVESTOR PERCEPTION
INVESTOR PERCEPTION ANDREALITY
In the case of visual Investor Perception , some people can actually see the percept shift in
theirmind's eye[4]. Others, who are not picture thinkers, may not necessarily perceive the
'shape-shifting' as their world changes. The 'esemplastic' nature has been shown by
experiment: an ambiguous image has multiple interpretations on the perceptual level. The
question, "Is the glass half empty or half full?" serves to demonstrate the way an object can
be perceived in different ways.
Just as one object can give rise to multiple percepts, so an object may fail to give rise to any
percept at all: if the percept has no grounding in a person's experience, the person may
literally not perceive it.
The processes of Investor Perception routinely alter what humans see. When people view
something with a preconceived concept about it, they tend to take those concepts and see
them whether or not they are there. This problem stems from the fact that humans are
unable to understand new information, without the inherent bias of their previous knowledge.
A persons knowledge creates his or her reality as much as the truth, because the human
mind can only contemplate that to which it has been exposed. When objects are viewed
without understanding, the mind will try to reach for something that it already recognizes, in
order to process what it is viewing. That which most closely relates to the unfamiliar from our
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past experiences, makes up what we see when we look at things that we dont comprehend.
[5]
This confusing ambiguity of Investor Perception is exploited in human technologies such as
camouflage, and also in biological mimicry, for example by European Peacock butterflies,
whose wings bear eye markings that birds respond to as though they were the eyes of a
dangerous predator. Perceptual ambiguity is not restricted to vision. For example, recent
touch Investor Perception research Robles-De-La-Torre & Hayward 2001 found that
kinesthesia based haptic Investor Perception strongly relies on the forces experienced
during touch.[6]
Cognitive theories of Investor Perception assume there is a poverty ofstimulus. This (with
reference to Investor Perception ) is the claim that sensations are, by themselves, unable to
provide a unique description of the world. Sensations require 'enriching', which is the role of
the mental model. A different type of theory is the perceptual ecology approach ofJames J.
Gibson. Gibson rejected the assumption of a poverty of stimulus by rejecting the notion that
Investor Perception is based in sensations. Instead, he investigated what information is
actually presented to the perceptual systems. He and the psychologists who work within this
paradigm detailed how the world could be specified to a mobile, exploring organism via the
lawful projection of information about the world into energy arrays. Specification is a 1:1
mapping of some aspect of the world into a perceptual array; given such a mapping, no
enrichment is required and Investor Perception is direct Investor Perception .
Preconceptions can influence how the world is perceived. For example, one classic
psychological experiment showed slower reaction times and less accurate answers when a
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deck ofplaying cards reversed the color of the suit symbol for some cards (e.g. red spades
and black hearts).[7]
There is also evidence that the brain in some ways operates on a slight "delay", to allow
nerve impulses from distant parts of the body to be integrated into simultaneous signals. [8]
INVESTOR PERCEPTION -IN-ACTION
An ecological understanding of Investor Perception derived from Gibson's early work is that
of "Investor Perception -in-action", the notion that Investor Perception is a requisite property
of animate action; that without Investor Perception action would be unguided, and without
action Investor Perception would serve no purpose. Animate actions require both Investor
Perception and motion, and Investor Perception and movement can be described as "two
sides of the same coin, the coin is action". Gibson works from the assumption that singular
entities, which he calls "invariants", already exist in the real world and that all that the
Investor Perception process does is to home in upon them. A view known as social
constructionism (held by such philosophers as Ernst von Glasersfeld) regards the continual
adjustment of Investor Perception and action to the external input as precisely what
constitutes the "entity", which is therefore far from being invariant. [9]
Glasersfeld considers an "invariant" as a target to be homed in upon, and a pragmatic
necessity to allow an initial measure of understanding to be established prior to the updating
that a statement aims to achieve. The invariant does not and need not represent an
actuality, and Glasersfeld describes it as extremely unlikely that what is desired or feared by
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an organism will never suffer change as time goes on. This social constructionist theory thus
allows for a needful evolutionary adjustment. [10]
A mathematical theory of Investor Perception -in-action has been devised and investigated
in many forms of controlled movement, and has been described in many different species of
organism using the General Tau Theory. According to this theory, tau information, or time-
to-goal information is the fundamental 'percept' in Investor Perception .
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MUTUAL FUND
A Mutual Fund is a body corporate registered with SEBI (Securities Exchange Board of
India) that pools money from individuals/corporate investors and invests the same in a
variety of different financial instruments or securities such as equity shares, Government
securities, Bonds, debentures etc.Mutual funds can thus be considered as financial
intermediaries in the investment business that collect funds from the public and invest on
behalf of the investors. Mutual funds issue units to the investors.The appreciation of the
portfolio or securities in which the mutual fund has invested the money leads to an
appreciation in the value of the units held by investors.The investment objectives outlined by
a Mutual Fund in its prospectus are binding on the Mutual Fund scheme. The investmentobjectives specify the class of securities a Mutual Fund can invest in. Mutual Funds invest in
various asset classes like equity, bonds, debentures, commercial paper and government
securities. The schemes offered by mutual funds vary from fund to fund. Some are pure
equity schemes; others are a mix of equity and bonds. Investors are also given the option of
getting dividends, which are declared periodically by the mutual fund, or to participate only in
the capital appreciation of the scheme.
Evolution of Mutual Fund
The first investment trust (now called mutual fund) began in the Netherlands in the early
1800s. The first in the U.S. was the New York Stock Trust, which started in 1889. Since
Boston was the economic center of the nation until the turn of the century, the majority of
funds started thereFidelity, Pioneer and Putnum Fund, to name a few. A fund that was
comprised of both stocks and bonds (the Wellington Fund) started in 1928 and is still part of
Vanguard. As the 20's crashed to a close, there were 10 mutual funds in the nation.
The Sixties saw the growth in aggressive (high risk) funds that were labeled, in the
vernacular of the times, "hot-shot" or "go-go" funds. They were sexy and fast, there were a
hundred of them by the late Sixties and a lot of people dumped a lot of money in them until
the bearish times of 1969 freaked everybody out: investors yanked out their money and
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have been kicking themselves ever since, because some funds increased in value by more
than 9,000%.
Until this time, people had been paying sales commissions on their funds. In the '70s, no-
load funds were invented, and the biggest today. Vanguard Funds, wasfounded in 1977. Atthe end of the Sixties, there were nearly 250 different mutual funds;today, they number over
6,000. But here's the thing: the last time a mutual fund went bankrupt was 1940. And mutual
funds often outperform the stock market.
Benefits involved in investing Mutual Fund
There are several benefits from investing in a Mutual Fund:
Small investments
Mutual funds help you to reap the benefit of returns by a portfolio spread across a wide
spectrum of companies with small investments.
Professional Fund Management
Professionals having considerable expertise, experience and resources manage the pool
ofmoney collected by a mutual fund. They thoroughly analyse themarkets and economy to
pick good investment opportunities.
Spreading Risk
An investor with limited funds might be able to invest in only one or two stocks/bonds, thus
increasing his or her risk. However, a mutual fund will spread its risk by investing a number
of sound stocks or bonds. A fund normally invests in companies across a wide range of
industries, so the risk is diversified.
Transparency
Mutual Funds regularly provide investors with information on the value of their investments.
Mutual Funds also provide complete portfolio disclosure of the investments made by various
schemes and also the proportion invested in each asset type.
Choice
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The large amount of Mutual Funds offer the investor a wide variety to choose from. An
investor can pick up a scheme depending upon his risk/ return profile.
Regulations
All the mutual funds are registered with SEBI and theyfunction within the provisions of strict
regulation designed to protect the interests of the investor.
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TYPES OF MUTUAL FUNDS
Mutual funds are classified in the following manner:
(a) On the basis of Objective
Equity Funds/ Growth Funds
Funds that invest in equity shares are called equity funds. They carry the principal objective
of capital appreciation of the investment over the medium to long-term. They are best suited
for investors who are seeking capital appreciation. There are different types of equity funds
such as Diversified funds, Sector specific funds and Index based funds.
Diversified funds
These funds invest in companies spread across sectors. These funds are generally meant
for risk-averse investors who want a diversified portfolio across sectors.
Sector funds
These funds invest primarily in equity shares of companies in a particular business sector or
industry. These funds are targeted at investors who are bullish or fancy the prospects of
a particular sector.
Index funds
These funds invest in the same pattern as popular market indices like S&P CNX Nifty or
CNX Midcap 200. The money collected from the investors is invested only in the stocks,
which represent the index. For e.g. a Nifty index fund will invest only in the Nifty 50 stocks.
The objective of such funds is not to beat the market but to give a return equivalent to the
market returns.
Tax Saving Funds
These funds offer tax benefits to investors under the Income Tax Act. Opportunities
provided under this scheme are in the form of tax rebates under the Income Tax act.
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Debt/Income Funds
These funds invest predominantly in high-rated fixed-income-bearing instruments like
bonds, debentures, government securities, commercial paper and other money market
instruments. They are best suited for the medium to long-term investors who are averse to
risk and seek capital preservation. They provide a regular income to the investor.
Liquid Funds/Money Market Funds
These funds invest in highly liquid money market instruments. The period of investment
could be as short as a day. They provide easy liquidity. They have emerged as an
alternative for savings and shortterm fixed deposit accounts with comparatively higher
returns. These funds are ideal for corporates,institutional investors and business houses
that invest their funds for very short periods.
Gilt Funds
These funds invest in Central and State Government securities. Since they are Government
backed bonds they give a secured return and also ensure safety of the principal amount.
They are best suited for the medium to long-term investors who are averse to risk.
Balanced Funds
These funds invest both in equity shares and fixed-income-bearing instruments (debt) in
some proportion. They provide a steady return and reduce the volatility of the fund while
providing some upside for capital appreciation. They are ideal for medium to long-term
investors who are willing to take moderate risks.
b) On the basis of Flexibility
Open-ended Funds
These funds do not have a fixed date of redemption. Generally they are open for
subscription and redemption throughout the year. Their prices are linked to the daily net
asset value (NAV). From the investors' perspective, they are much more liquid than closed-
ended funds.
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Close-ended Funds
These funds are open initially for entry during the Initial Public Offering (IPO) and thereafter
closed for entry as well as exit. These funds have a fixed date of redemption. One of the
characteristics of the close-ended schemes is that they are generally traded at a discount to
NAV; but the discount narrows as maturity nears. These funds are open for subscription
only once and can be redeemed only on the fixed date of redemption. The units of these
funds are listed on stock exchanges (with certain exceptions), are tradable and the
subscribers to the fund would be able to exit from the fund at any time through the
secondary market.
Different investment plans that Mutual Funds offer
The term investment plans generally refers to the services that the funds provide to
investors offering different ways to invest or reinvest.The different investment plans are an
important consideration in the investment decision, because they determine the flexibility
available to the investor. Some of the investment plans offered by mutual funds in India are:
Growth Plan and Dividend Plan
A growth plan is a plan under a scheme wherein the returns from investments are
reinvested and very few income distributions, if any, are made. The investor thus only
realizes capital appreciation on the investment. Under the dividend plan, income is
distributed from time to time. This plan is ideal to those investors requiring regular income.
Dividend Reinvestment PlanDividend plans of schemes carry an additional option for reinvestment of income distribution.
This is referred to as the dividend reinvestment plan. Under this plan, dividends declared by
a fund are reinvested in the scheme on behalf of the investor, thus increasing the number of
units held by the investors.
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Rights that are available to a Mutual Fund holder in India
As per SEBI Regulations on Mutual Funds, an investor is entitled to:
1. Receive Unit certificates or statements of accounts confirming your title within 6 weeks
from the date your request for a unit certificate is received by the Mutual Fund.2. Receive information about the investment policies, investment objectives, financial
position and general affairs of the scheme.
3. Receive dividend within 42 days of their declaration and receive the redemption or
repurchase proceeds within 10 days from the date of redemption or repurchase.
4. The trustees shall be bound to make such disclosures to the unit holders as are essential
in order to keep them informed about any information, which may have an adverse bearing
on their investments.
5. 75% of the unit holders with the prior approval of SEBI can terminate the AMC of the
fund.
6. 75% of the unit holders can pass a resolution to wind-up the scheme.
7. An investor can send complaints to SEBI, who will take up the matter with the concerned
Mutual Funds and follow up with them till they are resolved.
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ORGANISATION OF A MUTUAL FUND
There are many entities involved and the diagram below illustrates the organisational set up of
a mutual fund:
Mutual funds have a typical organisation in which five key parlies or players or special
bodies or constituents are involved. They are:
The sponsors, the Board of Trustees (EOT) or Trust Company (TC)
The Asset Management Company (AMC)
The custodian, and
The unit-holders
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They are usually formed by an investment adviser or manager or sponsor who selects and
appoints a BOT, which, in turn, hires or contracts a separate AMC which is run by
professional managers. The AMC conducts the necessary research, and based on it,
manages the fund or portfolio. It is responsible for floating, managing, redeeming the
schemes; it also handles the administrative chores. It receives the fees for the services
rendered by it. The custodian is responsible far coordination with brokers, the actual transfer
and storage of stocks, and handling the property of the trust. He is answerable to the
AMC.As per the current regulations in force in India, every MF proposed by a sponsor has to
be setup as a trust under the Indian Trust Act, 1882 (and not as a company under the
Companies Act, 1956). The UT1, however, was set up under a special UTI Act, 1963. All
MFs have to be registered with the SEBI. It is required that the first four constituents of the
MF should maintain an arm's length relationship among themselves in order to reduce
conflict of interests, and to safeguard the interests of the investors.Mutual funds can sell
their units directly to the investors or they may employ the sales forced brokers and agents
for that purpose. Some MFs in the US charge their investors a sales fee for the costs
involved in selling the fund, and they are known as "load funds". Those who do not charge,
such a fee arc known as "no-load funds". All funds charge their shareholders a management
fee which is paid out of the fund's income.
Sponser
The sponsor is the promoter of the mutual fund. He sponsor establishes the mutual
fund
Sponsor appoints the trustees .custodians and the AMC with prior approval of
SEB1,and in and registers the same with SEB1.accordance with regualation.
Sponsor must have at least 5 years track record of business interest in the financial
markets,
Sponsor must have been profit making in at least 3 of the above 5 years-
Sponsor must contribute at least 40% of the capital of the AMC.
Trustee
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The mutual fund, which is a trust,is managed either by a trust companies or a board of
trustees and governed by the provisions of the Indian Trust Act. The AMC and other
functionaries are functially accountable to trustees.
The sponsor executes and registers a trust deed in favour of the trustees .the thirdschedule of SEB1 regulation specifies the contents of the trust deed.
The appointment of all trustees has to be done with prior approval of SEB1
There must be at least 4 members in the board of trustees must be independent.
Trustees of one mutual fund cannot be trustees of another mutual fund, unless he is
an independent trustees in both cases, and has the approval of both the boards.
Asset Management Company
The trustees on the advise of the sponsors, usually appoint the AMC. The AMC has to be
SEB1 registered entity and should have a minimum net worth management agreement with
the AMC.which spells out the functions of the AMC.
The following are various types of AMC's we have in India:
AMC's owned by banks.
AMC's owned by the Indian private sector companies
AMC's owned by the financial institutions.
AMC's owned by the foreign institution investors.
AMC's owned jointly by Indian and foreign sponsors.
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AUDIT
Legal advisor advise mutual fund on regulatory and taxation issues. Every mutual fund has
an employee designated as compliance officer, who works under the advise of the legal
advisor. The AMC aiso has its accounts and annual reports, these two sets of accounts are
required to be statutory audited. SEB1 regulation stipulate that auditors of the fund can not
also be the auditors of the AMC- the two sets of accounts have to be
audited by to separate auditing firms. audotors charge a fee from the mutual fund for these
services.
TRANSFER
As the fund stands ready to redeem the unit on any working day, the transfer facility is
found redundant. However, if a transferee becomes a holder of scheme's units in an official
capacity by operation of law or is a scheduled bank/ financial institution upon enforcement of
a pledge, then the trustee shall subject to production of necessary evidence, procide to
affect the transfer, if the intended transferee is otherwise in line with terms of the schemes
-In case any pledge/charge over the scheme's units is the registered with the trustee,
transfer will be affected in accordance with the procedure outlined in the detailed offer
document.
BANKERS
A Fund's activities involve dealing with money on a continuous basis primarily with respects
to buying and selling units, paying for investment made, receiving the proceeds on sale of
investment and discharging its obligations towards operating expenses. A fund's bankers
therefore play.
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STRUCTURE OF A MUTUAL FUND
Sponsor
Mutual
fundTrustee
s
ASSET
MANAGEMENT
COMPANY
Custodia
n
Registra
r
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How Mutual Fund Works
The flow chart below describes broadly the working of a mutual fund.
DEMATERIALIZED TRADING
Indian investor community has undergone sea changes in the past few years.
India now has a very large investor population and ever increasing volumes of
trades. However, this continuous growth in activities has also increased
problems associated with stock trading. Most of these problems arise due to
the intrinsic nature of paper based trading and settlement, like theft or loss of
share certificates. This system requires handling of huge volumes of paper
leading to increased costs and inefficiencies. Risk exposure of the investor due
to this trading in paper.
Some of these risks are:
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1. Delay in transfer of shares.
2. Possibility of forgery on various documents leading to bad deliveries,
legal disputes etc.
3. Possibility of theft of share certificates in the market.
4. Multiplication or loss of share certificates in transit.
5. Prevalence of fake certificates in the market.
The physical from of holding and trading in securities also acts as a
bottleneck for broking community in capital market operations.
The introduction of NSE and BOLT has increased the reach of capital market
manifolds. The increase in number of investors participating in the capital
market has increased the possibility of being hit by a bad delivery. The cost
and time spent by the brokers for rectification of these bad deliveries tends to
be higher with the geographical spread of the clients. The increase in trade
volumes lead to exponential rise in the back office operations thus limiting the
growth potential of the broking members. The inconvenience faced by
investors (in areas that are far flung and away from the main metros) in
settlement of trade also limits the opportunity for such investors, especially in
participating in auction trading. This has made the investors as well as broker
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wary of Indian capital market. In this scenario, dematerialized trading is
certainly a welcome move.
What is Dematerialization?
Dematerialization or Demat is a process whereby your securities like shares,
debentures etc, are converted into electronic data and stored in computers by
a Depository. Securities registered in your name are surrendered to depository
participant (DP) and these are sent to the respective companies who will
cancel them after Dematerialization and credit your depository account with
the DP. The securities on Dematerialization appear as balances in your
depository account. These balances are transferable like physical shares. If at
a later date, you wish to have these Demat securities converted back into
paper certificates; the Depository helps you to do this.
Dematerialization is the process of converting the securities held in physical
form (certificates) to an equivalent number of securities in electronic form and
crediting the same to the investors Demat account. Dematerialized securities
do not have any certificate numbers or distinctive numbers and are dealt only
in quantity i.e.; the securities are fungible.
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Dematerialization of your holdings is not mandatory. You can hold your
securities either in demat form or in physical form. You can also keep part of
your holdings (in the same scrip) in demat form & part in physical form.
However, securities specified by SEBI can be delivered only in demat form in
the stock exchanges connected to NSDL and / or CDSL.
WHAT IS DEPOSITORY?
Depository functions like a securities bank, where the dematerialized physical
securities are traded and held in custody. This facilitates faster, risk free and
low cost settlement. Depository is much like a bank and performs many
activities that are similar to a bank. Following table compares the two.
BANK DEPOSITORY
HOLDSFUNDSINACCOUNTS HOLDSSECURITIESINACCOUNTTRANSFERS FUNDS BETWEEN
ACCOUNTS
Transfers securities between
accounts
Transfers without handling
money
Transfers without handling
securities
Safekeeping of money Safekeeping of securities
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NSDL and CDSL
At present there are two depositories in India, National Securities Depository
Limited (NSDL) and Central Depository Services Limited (CDSL). NSDL is the
first Indian depository; it was inaugurated in November 1996. NSDL was set up
with an initial capital of US$28mn, promoted by Industrial Development Bank of
India (IDBI), Unit Trust of India (UTI) and National Stock Exchange of India Ltd.
(NSEIL). Later, State Bank of India (SBI) also became a shareholder.
The other depository is Central Depository Services (CDS). It is still in the
process of linking with the stock exchanges. It has registered around 20 DPs
and has signed up with 40 companies. It had received a certificate of
commencement of business from Sebi on February 8, 1999.
These depositories have appointed different Depository Participants (DP) for
them. An investor can open an account with any of the depositories DP. But
transfers arising out of trades on the stock exchanges can take place only
amongst account-holders with NSDLs DPs. This is because only NSDL is
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linked to the stock exchanges (nine of them including the main ones-National
Stock Exchange and Bombay Stock Exchange).
In order to facilitate transfers between investors having accounts in the two
existing depositories in the country the Securities and Exchange Board of India
has asked all stock exchanges to link up with the depositories. Sebi has also
directed the companies registrar and transfer agents to effect change of
registered ownership in its books within two hours of receiving a transfer
request from the depositories. Once connected to both the depositories the
stock exchanges have also to ensure that inter-depository transfers take place
smoothly. It also involves the two depositories connecting with each other. The
NSDL and CDSL have signed an agreement for inter-depository connectivity.
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WHAT IS A DP?
A depository is like a bank where securities are held in electronic
(dematerialized) form. In India, there are two Depositories National securities
Depositories Limited (NSDL) and Central Depository Services Limited (CSDL).
Under the Depositories Act, investors can avail of the services of the
Depositories through Depository Participants (DP) such as ICICI bank. DPs
are like bank branches wherein shares in physical form need to be deposited
for converting the same to electronic (Demat) form.
NSDL carries out its activities through various functionaries called business
partners who include Depository Participants (DPs), issuing corporate and their
Registrars and Transfer Agents, Clearing corporations/Clearing Houses etc.
NSDL is electronically linked to each of these business partners via a satellite
link through Very Small Aperture Terminals (VSATs). The entire integrated
system (including the VSAT linkups and the software at NSDL and each
business partners end) has been named as the NEST [National Electronic
Settlement & Transfer] system.
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The investor interacts with the depository through a depository participant of
NSDL. A DP can be a bank, financial institution, a custodian or a broker.
Just as one opens a bank account in order to avail of the services of a bank,
an investor opens a depository account with a depository participant in order to
avail of depository facilities.
SAVINGS
Trading in dematerialized shares results in substantial savings for the
investors. Following tables gives an idea about these savings.
Savings for a person who buy shares for long term investment
(On a purchase of Rs10000)
ItemPhysical
(Rs)
Depository (demat)
(RS)Savings (Rs)
Brokerage 75-100 50-75 25-50
*Stamp Duty 50 - 50
Postal Charges 10-30 - 10-30
Company Objection (courier
etc.)
10-30 - 10-30
Settlement charges - 5-10 -(5-10)
#Custody (5 years) - 10-50 -(10-50)
Total 35-100
* Stamp duty of 0.5%
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# Custody charge of 0.05%- 0.1%
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Savings for an investor who sells dematerialized shares
(For a sale of Rs10000)
Item Physical (Rs)Depository (demat)
(Rs)
Savings
(Rs)
*Brokerage 75-100 50-75 25-50
Company Objection (courier,
etc.)
10-30 - 10-30
Settlement charges - -(5-10) -(5-10)
Total 25-75
Many brokers offer reduced brokerage for selling of dematerialized securities
since they will not have the fear of bad delivery.
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Savings for a trader who buys and sells very often.
(For a trader who turns over his portfolio of Rs10000 ten times in a year.)
Item Physical (Rs) Depository (demat) (Rs) Savings (Rs)
*Brokerage 750-1000 500-750 250-500
Settlement charges - 50-100 -(50-100)
Custody (5 years) - 2-10 -(2-10)
Total 140-390
* Many brokers offer reduced brokerage for sell of dematerialized securities
since they would not have fear of bad delivery.
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BANK ACCOUNTS
How to open a bank account with a DP
Opening a depository account is as simple as opening a bank account. You
can open a depository account with any DP convenient to you.
To open an account you have to:
Fill up the account opening form, which is available with the DP.
Sign the DP-client agreement, which defines the rights and duties of the DP
and the person wishing to open the account.
Receive your client account number (client ID).
This client ID along with your DP ID gives you a unique identification in the
depository system.
There is no restriction on the number of depository accounts a person can
open. However, if your existing physical shares are in joint names, you have to
open the account in the same order of names before you submit your share
certificates for demat. A sole holder of the share certificates cannot add more
names as joint holders at the time of dematerializing his share certificates.
However, if the investor wants to transfer the ownership from his individual
name to a joint name, he should first open an account as the sole holder
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(account A) and dematerialize the share certificates. He should then open
another depository account (account B) in which he is the first holder and the
other person is the second holder and make an off market transfer of the
shares from the account A to account B. The investor will incur a charge on
this transaction. Alternatively, the certificates can be transferred to the joint
ownership and then sent for Dematerialization.
Right now, as per the Companies Act, there is no nomination facility for shares
(whether in the physical or in the electronic form). The nomination facility for
shares can be availed of only when the relevant provisions in the Companies
Act are amended. NSDL captures the details of the nominee when the account
is opened so as to offer the facility as soon as the relevant amendments are
effected in the Law.
A client can choose to open more than one account with same DP. In addition
to this, he has a choice of opening accounts with more than one DP. However
a broker can open just one Clearing Member account per card/ stock exchange
for clearing purpose, but he can still open multiple beneficiary accounts
Beneficiary is the personal account wherein brokers can keep their personal
holdings.
A broker has only one Clearing Member-pool-account. One Clearing Member
pool account is opened per card/ stock exchange to settle trades in the
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dematerialized form. The Clearing Corporation/ House just deals with one
designated account for pay-in and payout and the broker's clients know to
which account they have to deliver and receive securities from.
A clearing member cannot hold his personal holdings in his clearing member
account. A broker may deal in the depository system as a clearing member
only through a special account, known as the Clearing Member account. This
account can be used only for clearing purposes and not for holding his own
securities in it. As this is a transitory account, the securities held in this account
are not eligible for corporate actions. Therefore, the broker will have to open a
separate beneficiary owner account to hold his investments.
There is no compulsion for the client to open his account with the same DP as
that of his broker. Even if he has an account with another DP, he can carry out
normal business with his broker. There is no loss in operational efficiency. But
it is possible that opening account with his broker's DP may work out to his
advantage, as some DPs may offer special charge structure if the broker and
his clients are dealing through him.
How to choose a DP
Following are the few aspects that you should consider before choosing a DP:
1. Branch-level service.
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Most DPs offer depository services from their main branch as well as through
other branches and franchisees. Higher the number of branches your DP has,
(which offer depository services) greater will be the geographical convenience
you will have.
Recently Department of Telecommunications has allowed the DPs (only bank-
DPs at present) to connect their entire internal network to NSDL. The NSDL is
making changes in its software for DPs to meet the DoT conditions. After it is
done DPs will be able to execute your instructions directly at the branch level
thus saving time and improving efficiency. So check before opening an account
whether your DP (if it is a bank-DP) intends to interconnect its branch network
with that of NSDL. Before opening an account with a DP you should also check
whether the DP is offering all the services through its branches.
DPs mandate a time limit for submission of debit instructions before settlement
pay-in time. It should be checked whether the time limit applies equally to all
the branches (or franchisees) of the DP or whether it varies.
Backup facilities
Having an adequate backup system is extremely necessary for a DP. In case
of a system failure all the data could be lost if backup facilities are not present.
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Although depositories too have the data with them but a strong system with
your DP ensures no risks and hassles.
So before opening an account get details from your DP about its computer
system's technical specifications and backup facilities.
Safe procedures.
Your securities account can get debited only if you submit to your DP a duly
filled and signed 'delivery instruction' (debit instruction) form (separate for
market trades and off-market transfers) that authorizes the DP to debit your
account. You will execute this form only when you have sold shares. But you
could have worries that some one else can forge your signature on such a
form, which your DP will not be able to detect, and your account will get
debited .To get rid of these worries you should check that delivery instruction
form book that you get from your DP must be serial-numbered with numbers
unique to your account and recorded in the DP's system.
Whenever there is a debit or credit in an a/c the DP is supposed to send a
transaction statement and a holding statement to the investors within a
fortnight. In case there have been no transactions they generate just a holding
statement every quarter. So check for the statements regularly since all DPs
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are not very punctual about sending transaction and holding statements. These
statements will ensure that youre a/c is proper.
There is an additional safety feature available with the DPs. You can freeze
your account on the debit side if you do not want to sell the shares from your
account, this will ensure that no debit is done in your account. Your account
will continue to receive credits arising from fresh purchases but no debit will be
permitted. A special form that you can get from the DP is executed that
instructs your DP to freeze your account (only for the debit side or completely).
When you want to sell your shares you can execute the same form to unlock
your account.
Customer Service
DPs should have adequate customer service facilities. This is one of the most
important aspects while deciding your DP. At some time or other you will need
some information on your account. Your DP should be able to provide you
quick service, so check whether your DP has a dedicated customer service
department.
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If you are not happy with the service, you get from your DP or you are not sure
that your shares will be safe you should not think twice of taking your shares to
another DP.
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However, securities that have to be mandatorily settled in demat form (both by
institutional investors & all category of investors) cannot be settled in physical
form. Also for securities that have to be mandatorily settled in demat form by all
categories of investors the concept of market lot is eliminated ie the tradable lot
is one share from the date they become compulsory.
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exchanges. All trading members of stock exchanges are clearing
members of clearing houses. In addition, for settlement of institutional
trades, custodians are also allowed to act as clearing members.
Clearing members of clearing house, dealing in dematerialized securities
are expected to open a clearing account with any DP for the purpose of
settling trades in dematerialized securities. As, in the mixed (unified)
segment, there is a possibility for all clearing members to receive
dematerialized securities, they are expected to open clearing accounts.
If there is any short delivery at the time of pay-in of securities, these short
positions are auctioned in the Demat segment as done in the Unified
(erstwhile-physical) segment.
For trades executed on Wednesday (TD 1):
Final/ Net obligation statement download - Friday (T+2nd working day)
Settlement day (SD 1) ie pay in and pay out of funds and securities - next
Wednesday (T+5th working day)
Auction trade day (ATD 1) - next Thursday (T+6th working day)
Auction settlement day (ASD 1) - Monday (2nd working day from auction
trade day ie T+8th working day)
Similarly, for trades executed on Thursday (TD 2):
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Final/ Net obligation statement download - Monday (T+2nd working day)
Settlement day (SD 2) - next Thursday (T+5th working day)
Auction trade day (ATD 2) - next Friday (T+6th working day)
Auction settlement day (ASD 2) - Tuesday (2nd working day from auction
trade day ie T+8th working day)
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CHARGES
NSDL Charges for DPs
NSDL does not charge the investor directly but charges its DPs, who are free
to charge their clients.
NSDL charges its DPs under the following heads:
2.6(a)-1: Transaction Fees :
1. Market Trade :
Sale - nil;
Purchase - 5 basis points (i.e. 0.05% of the value of net receipts to a clearing
members account)
2. Off Market Trade:
Sale - nil;
Purchase - 10 basis points (i.e. 0.1% of value of securities).
2.6(a)-2: Custody Fees :
3.5 basis points p.a.(i.e. 0.035% p.a. of average value of securities)
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COMPANY PROFILE
OVERVIEW
KARVY, is a premier integrated financial services provider, and ranked among
the top five in the country in all its business segments, services over 20 million
individual investors in various capacities, and provides investor services to
over 300 corporates, comprising the who's who of Corporate India. KARVY
covers the entire spectrum of financial services such as Stock broking,
Depository Participants, Distribution of financial products like mutual funds,
bonds, fixed deposit, Merchant Banking & Corporate Finance, Insurance
Broking, Commodities Broking, Realty Services, Personal Finance Advisory
Services, placement of equity, IPOs, among others. Karvy has a professional
management team and ranks among the best in technology, operations, and
more importantly, in research of various industrial segments.
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Karvy Early Days
The birth of Karvy was on a modest scale in 1981. It began with the vision and
enterprise of a small group of practicing Chartered Accountants who founded
the flagship company Karvy Consultants Limited. We started with consulting
and financial accounting automation, and carved inroads into the field of
registry and share accounting by 1985. Since then, we have utilized our
experience and superlative expertise to go from strength to strengthto better
our services, to provide new ones, to innovate, diversify and in the process,
evolved Karvy as one of Indias premier integrated financial service enterprise.
Thus over the last 20 years Karvy has traveled the success route, towards
building a reputation as an integrated financial services provider, offering a
wide spectrum of services. And we have made this journey by taking the route
of quality service, path breaking innovations in service, versatility in service
and finallytotality in service.
Our highly qualified manpower, cutting-edge technology, comprehensive
infrastructure and total customer-focus has secured for us the position of an
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emerging financial services giant enjoying the confidence and support of an
enviable clientele across diverse fields in the financial world.
Our values and vision of attaining total competence in our servicing has served
as the building block for creating a great financial enterprise, which stands
solid on our fortresses of financial strength - our various companies.
With the experience of years of holistic financial servicing behind us and years
of complete expertise in the industry to look forward to, we have now emerged
as a premier integrated financial services provider.
And today, we can look with pride at the fruits of our mastery and experience
comprehensive financial services that are competently segregated to service
and manage a diverse range of customer requirements.
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The Karvy Credo
Our Clients. Our Focus
Clients are the reason for our being.
Personalized service, professional care; pro-activeness are the values that
help us nurture enduring relationships with our clients.
espect for the individual
Each and every individual is an essential building block of our
organization.
We are the kiln that hones individuals to perfection. Be they our employees,
shareholders or investors. We do so by upholding their dignity & pride,
inculcating trust and achieving a sensitive balance of heir professional and
personal lives.
Teamwork
None of us is more important than all of us.
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Each team member is the face of Karvy. Together we offer diverse services
with speed, accuracy and quality to deliver only one product: excellence.
Transparency, co-operation, invaluable individual contributions for a collective
goal, and respecting individual uniqueness within a corporate whole, is how we
deliver again and again.
Responsible Citizenship
A social balance sheet is as rewarding as a business one.
As a responsible corporate citizen, our duty is to foster a better environment in
the society where we live and work. Abiding by its norms, and behaving
responsibly towards the environment, are some of our growing initiatives
towards realizing it.
Integrity
Everything else is secondary.
Professional and personal ethics are our bedrock. We take pride in an
environment that encourages honesty and the opportunity to learn from failures
than camouflage them. We insist on consistency between works and actions.
KARVY CONSULTANTS LIMITED
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As the flagship company of the Karvy Group, Karvy Consultants Limited has
always remained at the helm of organizational affairs, pioneering business
policies, work ethic and channels of progress.
Having emerged as a leader in the registry business, the first of the businesses
that we ventured into, we have now transferred this business into a joint
venture with Computershare Limited of Australia, the worlds largest registrar.
With the advent of depositories in the Indian capital market and the
relationships that we have created in the registry business, we believe that we
were best positioned to venture into this activity as a Depository Participant.
We were one of the early entrants registered as Depository Participant with
NSDL (National Securities Depository Limited), the first Depository in the
country and then with CDSL (Central Depository Services Limited). Today, we
service over 6 lakhs customer accounts in this business spread across over
250 cities/towns in India and are ranked amongst the largest Depository
Participants in the country. With a growing secondary market presence, we
have transferred this business to Karvy Stock Broking Limited (KSBL), our
associate and a member of NSE, BSE and HSE.
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IT enabled services
Our Technology Services division forms the ideal platform to unleash our
technology initiatives and make our presence felt on the Internet. Our past
achievements include many quality websites designed, developed and
deployed by us. We also possess our own web hosting facilities with dedicated
bandwidth and a state-of-the-art server farm (data center) with services
functioning on a variety of operating platforms such as Windows, Solaris, Linux
and Unix.
The corporate website of the company, www.karvy.com, gives access to in-
depth information on financial matters including Mutual Funds, IPOs, Fixed
Income Schemes, Insurance, Stock Market and much more. A link called
Resource Center, devoted solely to research conducted by our team of
experts on various financial aspects like Sector Research, deals exclusively
with in-depth analysis of the key sectors of the Indian economy. Besides, a
host of other links like My Portfolio which acts as a personalized and
customized financial measure, makes this site extremely informative about
investment options, market trends, news as also about our company and each
of the services offered here.
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KARVY STOCK BROKING LIMITED
Stock Broking Services | Distribution of Financial Products | Depository
Participants | Advisory Services | Research | Private Client Group
Member - Natio nal Stock Exchange (NSE), The Bombay Stock Exchange
(BSE), and The Hyderabad Stock Exchange (HSE).
Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice,
flows freely towards attaining diverse goals of the customer through varied
services. Creating a plethora of opportunities for the customer by opening up
investment vistas backed by research-based advisory services. Here, growth
knows no limits and success recognizes no boundaries. Helping the customer
create waves in his portfolio and empowering the investor completely is the
ultimate goal.
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STOCK BROKING SERVICES
It is an undisputed fact that the stock market is unpredictable and yet enjoys a
high success rate as a wealth management and wealth accumulation option.
The difference between unpredictability and a safety anchor in the market is
provided by in-depth knowledge of market functioning and changing trends,
planning with foresight and choosing ones options with care. This is
what we provide in our Stock Broking services.
We offer services that are beyond just a medium for buying and selling stocks
and shares. Instead we provide services which are multi dimensional and
multi-focused in their scope. There are several advantages in utilizing our
Stock Broking services, which are the reasons why it is one of the best in the
country.
We offer trading on a vast platform ; National Stock Exchange, Bombay Stock
Exchange and Hyderabad Stock Exchange. More importantly, we make trading
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safe to the maximum possible extent, by accounting for several risk factors and
planning accordingly. We are assisted in this task by our in-depth research,
constant feedback and sound advisory facilities. Our highly skilled research
team, comprising of technical analysts as well as fundamental specialists,
secure result-oriented information on market trends, market analysis and
market predictions. This crucial information is given as a constant feedback to
our customers, through daily reports delivered thrice daily ; The Pre-session
Report, where market scenario for the day is predicted, The Mid-session
Report, timed to arrive during lunch break , where the market forecast for the
rest of the day is given and The Post-session Report, the final report for the
day, where the market and the report itself is reviewed. To add to this
repository of information, we publish a monthly magazine Karvy ; The
Finapolis, which analyzes the latest stock market trends and takes a
close look at the various investment options, and products available in the
market, while a weekly report, called Karvy Bazaar Baatein,
keeps you more informed on the immediate trends in the stock market. In
addition, our specific industry reports give comprehensive information on
various industries. Besides this, we also offer special portfolio analysis
packages that provide daily technical advice on scrips for successful portfolio
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Our foray into commodities broking has been path breaking and we are in the
process of converting existing traders in commodities into the more organized
mainstream of trading in commodity futures, both as a trading and risk hedging
mechanism.
In the future, our focus will be on the emerging businesses and to meet this
objective, we have enhanced our manpower and revitalized our knowledge
base with enhances focus on Futures and Options as well as the commodities
business.
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Depository Participants
The onset of the technology revolution in financial services Industry saw the
emergence of Karvy as an electronic custodian registered with National
Securities Depository Ltd (NSDL) and Central Securities Depository Ltd
(CSDL) in 1998. Karvy set standards enabling further comfort to the investor
by promoting paperless trading across the country and emerged as the top 3
Depository Participants in the country in terms of customer serviced.
Offering a wide trading platform with a dual membership at both NSDL and
CDSL, we are a powerful medium for trading and settlement of dematerialized
shares. We have established live DPMs, Internet access to accounts and an
easier transaction process in order to offer more convenience to individual and
corporate investors. A team of professional and the latest technological
expertise allocated exclusively to our demat division including technological
enhancements like SPEED-e, make our response time quick and our delivery
impeccable. A wide national network makes our efficiencies accessible to all.
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The paradigm shift from pure selling to knowledge based selling drives the
business today. With our wide portfolio offerings, we occupy all segments in
the retail financial services industry.
A 1600 team of highly qualified and dedicated professionals drawn from the
best of academic and professional backgrounds are committed to maintaining
high levels of client service delivery. This has propelled us to a position among
the top distributors for equity and debt issues with an estimated market share
of 15% in terms of applications mobilized, besides being established as the
leading procurer in all public issues.
To further tap the immense growth potential in the capital markets we
enhanced the scope of our retail brand, Karvy the Finapolis , thereby
providing planning and advisory services to the mass affluent. Here we
understand the customer needs and lifestyle in the context of present earnings
and provide adequate advisory services that will necessarily help in creating
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wealth. Judicious planning that is customized to meet the future needs of the
customer deliver a service that is exemplary. The market-savvy and the
ignorant investors, both find this service very satisfactory. The edge that we
have over competition is our portfolio of offerings and our professional
expertise. The investment planning for each customer is done with an
unbiased attitude so that the service is truly customized.
Our monthly magazine, Finapolis, provides up-dated market information on
market trends, investment options, opinions etc. Thus empowering the investor
to base every financial move on rational thought and prudent analysis and
embark on the path to wealth creation.
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Under our retail brand Karvy the Finapolis', we deliver advisory services to a
cross-section of customers. The service is backed by a team of dedicated and
expert professionals with varied experience and background in handling
investment portfolios. They are continually engaged in designing the right
investment portfolio for each customer according to individual needs and
budget considerations with a comprehensive support system that focuses on
trading customers' portfolios and providing valuable inputs, monitoring and
managing the portfolio through varied technological initiatives. This is made
possible by the expertise we have gained in the business over the years.
Another venture towards being investor-friendly is the circulation of a monthly
magazine called Karvy - the Finapolis'. Covering the latest of market news,
trends, investment schemes and research-based opinions from experts in
various financial fields.
Advisory Services
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MUTUAL FUND SERVICES
We have attained a position of immense strength as a provider of across-the-
board transfer agency services to AMCs, Distributors and Investors.
Nearly 40% of the top-notch AMCs including prestigious clients like Deutsche
AMC and UTI swear by the quality and range of services that we offer. Besides
providing the entire back office processing, we provide the link between
various Mutual Funds and the investor, including services to the distributor, the
prime channel in this operation.
Carrying the limitless' ideology forward, we have explored new dimensions in
every aspect of Mutual Fund servicing right from volume management, cost
effective pricing, delivery in the least turnaround time, efficient back-office and
front-office operations to customized service. We have been with the AMCs
every step of the way, helping them serve their investors better by offering
them a diverse and customized range of services. The first to market'
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Karvy has been a customer centric company since its inception. Karvy offers a
single platform servicing multiple financial instruments in its bid to offer
complete financial solutions to the varying needs of both corporate and retail
investors where an extensive range of services are provided with great
volume-management capability.
Today, Karvy is recognized as a company that can exceed customer
expectations which is the reason for the loyalty of customers towards Karvy for
all his financial needs. An opinion poll commissioned by The Merchant Banker
Update and conducted by the reputed market research agency, MARG
revealed that Karvy was considered the Most Admired in the registrar
category among financial services companies.
We have grown from being a pure transaction processing business, to one of
complete shareholder solutions.
CORPORATE SHAREHOLDER SERVICES
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KARVY GLOBAL SERVICES LIMITED
The specialist Business Process Outsourcing unit of the Karvy Group. The
legacy of expertise and experience in financial services of the Karvy Group
serves us well as we enter the global arena with the confidence of being able
to deliver and deliver well.
Here we offer several delivery models on the understanding that business
needs are unique and therefore only a customized service could poss