Mutual Fun Birla Sun Life

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MUTUALFUN SCHEMESBIRLA SUN LIFE MUTUALFUND

Purpose of this report is to we aware about mutual fund and its schemes so that we

learned which is helpful for us.

2011

Birla sun life mutual

9/19/2011


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A PROJECT REPORT ON

TO KNOW THE MUTUALFUND SCHEMES

PREPERED AT

SUBMITTED TO

Prof. Mahipal Sir

MARWADI EDUCATION FOUNDATION GROUPOF

INSTITUTIONS

PREPARED BY

Jignesh shingala

Mayank Bhimani

(PGDM)

ACADEMIC YEAR2010-2012


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HISTORY OF MUTUAL FUNDS

The history of mutual fund in India can be divided into 5 important phases

A. 19631987:

The Unit Trust Of India was the sole player in the industry. Created by an Act of Parliament in 1963, UTI

launched its first product, the unit Scheme 1964, which is even today the single largest mutual fund scheme.

UTI created a number of products such as monthly income plans, childrens plans, equity oriented schemes and

offshore funds during this period. UTI managed assets of Rs 6700 crores at the end of this phase.

B. 1987 1993:

In 1987 public sector banks and financial institutions entered in mutual fund industry. SBI mutual fund was the

first non-UTI fund to be set up in 1987. Significant shift of investors from deposits to mutual fund industry

happened during this period. Most funds were growth-oriented closed-ended funds. By the end of this period,

assets under UTIs management grew to Rs 38247 crores and public sector funds managed Rs. 8750 crores.

C. 1993 - 1996:

In 1993, the mutual fund industry was open to private sector player, both Indian and foreign. SEBIs first set of

regulations for the industry were formulated in 1993, and substantially revised in 1996. Significant innovations

in servicing, product design and information disclosure

Happened in this phase, mostly initiated by private sector players.

D. 1996- 1999:

The implementation of the new SEBI regulations and the restructuring of the mutual fund industry late to

rapid growth Bank mutual funds were re-cast according to the SEBI recommended structure, and UTI camevoluntary SEBI supervision.

E. 1999 2002:

This phase was marked by very rapid growth in the industry, and significant increase in market shares of private

sector players. Assets crossed Rs. 100000 crores. The tax break offered to mutual funds in 1999 created

arbitrage opportunities for a number of institutional players. Bond funds and liquid funds registered the highest

growth in this period, accounting for nearly 60% of the assets. UTIs share of the industry dropped to nearly

50%.


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Mutual Fund Operation Flow Chart

Pass back to

Returns INVESTOR

Generates Mutual Fund Pull their money with

Operation Flow

Security Fund manager

Invest in

From the above cycle, it can be observed that how the money from the investors flow and they get returns out

of it. With a small amount of fund, investors pool their money with the funds managers. Taking into

consideration the market strategy the funds managers invest this pool of money into reliable securities. With ups

and downs in market returns are generated and they are passed on to the investors. The above cycle should be

very clear and also effective.

The fund manager while investing on behalf of investors takes into consideration various factors like time, risk,

return, etc. so that he can make proper investment decision.


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STRUCTURE OF INDIAN MUTUAL FUNDSThe mutual funds structure in the company form is as depicted in the following chart

A mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset Management Company

(AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter

of a company. The trustees of the mutual fund hold its property for the benefit of the unit holders. AMCapproved by SEBI manages the fund by making investments in various types of securities. A custodian,

who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees

are vested with the general power of superintendence and direction over AMC. They monitor the

performance and compliance of SEBI regulations by the mutual fund.


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BIRLA SUNLIFE MUTUAL FUND


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HISTORY:- Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of Birla Sun

Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Services

Inc. of Canada.

Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading flagships ofMutual Funds business managing assets of a large investor base.

They offer a range of investment options, including diversified and sector specific equity schemes, fundof fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and

offshore funds. Birla Sun Life Asset Management Company has one of the largest team of research analysts in the

industry, dedicated to tracking down the best companies to invest in.

It provides transparent, ethical and research-based investments and wealth management services.

GEOGRAPHICAL COVERAGE:

Today, BSLAMC is present in 111 locations, including 180 branches.

PRODUCT OFFERING:

Birla Sun Life Mutual Fund offers a range of investment options, which include diversified and sector specific

equity schemes, fund-of-fund schemes, hybrid and monthly income funds, a wide range of debt and treasury

products and offshore funds. BSLAMC also provides Private Wealth Management services.

INNOVATIONS:Birla Sun Life Mutual Fund was the first to launch Birla Cash Plus, a liquid fund.

Birla Dividend Yield Plus which is a dividend yield fund.

Birla Bond Index Fund (a debt index fund) which replicates the CRISIL Composite Bond Fund Index, has been

assigned AAAF rating by CRISIL.


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VISION:-To be a leader and role model in a broad based and integrated financial services business.

To be the most trusted name in investment and wealth management, to be the preferred employer in the

industry and to be a catalyst for growth and excellence of the asset management business in India.

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

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

VALUES:- Integrity Commitment Passion Seamlessness Speed

PHILOSOPHY:-Birla Sun Life Asset Management Company follows a long-term, fundamental research based

approach to investment. The approach is to identify companies, which have excellent growth prospects and

strong fundamentals. The fundamentals include the quality of the companys management, sustainability of its

business model and its competitive position, amongst other factors.


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TYPES OF SCHEMES

Different types of mutual fund schemes


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Schemes according to Maturity Period:A mutual fund scheme can be classified into open-ended scheme or close-ended scheme

depending on its period.

Open-ended Fund/ Scheme:

An open-ended fund or scheme is one that is available for subscription and repurchase on a

continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently

buy and sell units at Net Asset Value (NAV) related prices, which are declared on a daily basis.

The key feature of open-ended schemes is liquidity.

Close-ended Fund/Scheme:

A close-ended fund or scheme has a stipulated maturity period e.g. 5 -7 years. The fund is open

for subscription only during a specified period at the time of launch of the scheme. Investors can

invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the

units of the scheme on the stock exchanges where the units are listed. In order to provide an exit

route to the investors, some close-ended funds give an option of buying back the units to the

mutual fund at NAV related price.

Regulations stipulate that at least one of the two exit routes is provided to the investor i.e. either

repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose

NAV generally on weekly basis.

Schemes according to Investment Objective: A scheme can also be classified as growth scheme, income scheme or balanced scheme considering its

investment objective. Such schemes may be open-ended or close ended schemes as described earlier. Such

schemes may be classified mainly as follows


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Growth / Equity Oriented Scheme: The aim of growth funds is to provide capital appreciation over the medium to long term. Such

schemes normally invest a major part of their corpus in equities. Such funds have comparatively

high risks. These schemes provide different options to the investors like dividend option, capital

appreciation, etc. and the investors may choose an option depending on their preferences. The

investors must indicate the option in the application form. The mutual funds also allow the

investors to change the options at a later date. Growth schemes are good for investors having a

long-term outlook seeking appreciation over a period of time.

Income / Debt oriented Scheme:The aim of income funds is to provide regular and steady income to investors. Such schemes

generally invest in fixed income securities such as bonds, corporate debentures, Governmentsecurities and money market instruments. Such funds are less risky compared to equity schemes.

These funds are not affected because of fluctuations in equity markets. However, opportunities

of capital appreciation are also limited in such funds. The NAVs of such funds are affected

because of change in interest rates in the Country. If interest rates fall, NAVs of such funds are

likely to increase in the short run and vice versa. However, long term investors may not bother

about these fluctuations.

Balanced Fund:The aim of balanced funds is to provide both growth and regular income as such schemes invest

both in equities and fixed income securities in the proportion indicated in their o ffer documents.

These are appropriate for investors looking for moderate growth. They generally invest 40-60%

in equity and debt instruments. These funds are also affected because of fluctuations in share

prices in the stock markets. However NAVs of such funds are likely to be less v olatile compared

to pure equity funds.

Money Market or Liquid Fund: These funds are also income funds and their aim is to provide easy liquidity, preservation of

capital and moderate income.These schemes invest exclusively in safer short-term instruments

such as treasury bills, certificates of deposit, commercial paper and inter-bank call money,


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government securities, etc. Returns on these schemes fluctuate much less compared to other

funds. These funds are appropriate for corporate and individual investors, as a means to park

their surplus funds for short periods.

Gilt Fund:

These funds invest exclusively in government securities. Government securities have no default

risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic

factors as is the case with income or debt oriented schemes.

Index Funds: Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P

NSE 50 index (Nifty), etc. These schemes invest in the securities in the same weightage

comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or

fall in the index, though not exactly by the same percentage due to some factors known as

"tracking error" in technical terms. Necessary disclosures in this regard are made in the offer

document of the mutual fund scheme.

There are also exchange traded index funds launched by the mutual funds which are traded on

the stock exchanges.

Sector specific funds: These are the funds/schemes, which invest in the securities of only those sectors or industries as

specified in the offer documents. E.g. Pharmaceuticals, Software, Fast Moving Consumer Goods

(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of

the respective sectors/industries. While these funds may give higher returns, they, are more

risky compared to diversify funds? Investors need to keep a watch on the performance of those

sectors/industries and must exit at an appropriate time. They may also seek advice of an expe rt.


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Tax Saving Schemes: These schemes offer tax rebates to the investors under specific, provisions of the Income Tax

Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g.

Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also

offer tax benefits. These schemes are growth oriented and invest predominantly in equities. Their

growth opportunities and risks associated are like any equity- oriented scheme.

Asset Class Investment Sector Liquidity Trading Strategy Investment Strategy Security Selection


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BIRLA MUTUAL FUND PRODUCTS

Growth Schems Balance Schemes

Birla Sun Life Advantage Fund Birla Sun Life Freedom Fund

Birla Sun Life Dividend Yield Plus Birla Sun Life 95 Fund

Birla Sun Life Midcap Fund

Birla Sun Life MNC Fund Fund of Fund Schemes

Birla Sun Life India Oppprtunities Fund Birla Sun Life Assest Allocation Fund

Birla Sun Life Infrastructure Fund

Birla Sun Life India GetNext Fund Income Schemes

Birla Sun Life Index Fund Birla Sun Life MIP

Birla Sun Life Top 100 Fund Birla Sun Life MIP

Birla Sun Life Equity Fund Birla Sun Life Monthly Income

Birla Sun Life Frontline Equity Fund Birla Sun Life Income Plus

Birla Sun Life Buy India Fund Birla Sun Life Income Fund

Birla Sun Life New Millenium Fund Birla Sun Life Gilt Plus

Birla Sun Life Basic Industries Fund Birla Sun Life Govt. Securities Fund

Birla Sun Life International Equity Fund Birla Sun Life Dynamic Bond Fund

Birla Sun Life Special Situations Fund Birla Sun Life Short Term Opp. Fund

Birla Sun Life Commodity Equity Fund Birla Sun Life Cash Plus

Birla Sun Life Enhancedd Arbitrage Fund Birla Sun Life Savings Fund

Birla Sun Life Tax Plan Birla Sun Life Ultra Shortt Term Fund

Birla Sun Life Tax Relife 96 Birla Sun Life Floating Rate Fund

Birla Sun Life Small & Midcap Fund Birla Sun Life Cash Manager

Birla Sun Life Pure Value Fund

Birla Sun Life India Reforms Fund

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Mutual Fun Birla Sun Life