CHAPTER-1

INTRODUCTION TO MUTUAL FUNDS Mutual Funds are investment institutions set up to manage money pooled in from the public. The advantages of investing in Mutual Funds are the professional expertise they employ coupled with the variations offered on the basis of asset classification and the diversification of the chosen portfolio aimed at optimizing the risk for the required return. The benefits that can be accrued from Mutual Funds are

The schemes could be added to the portfolio with online updates for monitoring the performance of your investments in Mutual Funds.

The comprehensive search, which gets you the fund matching your criteria. The comparison of various schemes of different Mutual Funds based on the critical and most sought after investment criteria.

The analysis of different schemes and the outlook for the same. List of new launches in the market provided continuously.

Basically, Mutual funds are trusts that are formed to mobilize the savings from the people and pool them together to invest within the securities markets. The main advantage of mutual funds is that it is professionally managed. And the general idea is for investors to contribute small

amounts into units in the various schemes, which in turn is deployed in the various markets. This way, any investor who is not in a position to directly invest in the markets can take advantage of this route. UTI is the oldest of Indian mutual funds, having entered the arena with the launch of the Unit Scheme - 64 in 1964, hence the alphanumeric name. It was only in 1998 that other public sector banks were allowed to enter into the segment which was followed by a whole range of Asset Management companies including almost all the leading international portfolio managers including Merrill Lynch, Templeton, and Prudential among others.

There are several different ways one can diversify a portfolio, such as the different categories of the Morningstar style box, which contain several different asset classes. But another common way to diversify is between the various sectors of the economy. This is usually accomplished with mutual funds that concentrate in one of the major sectors, such as natural resources or utilities. This article will examine the nature and composition of sector funds and the advantages and disadvantages that they present to investors.

OBIECTIVES

1. PRIMARY OBJECTIVE 1. TO know about the current Mutual funds available in India

2. SECONDARY OBJECTIVE

1. TO know how mutual funds are investing the funds in different sector 2. To suggest the investor about which mutual fund should be invest in better sector
3. To study the benefits of investing in different Mutual funds 4. To know how to invest in mutual funds

CHAPTER-2

METHODLOGY A Research work requires a lot of information to be gathered. This information can be gathered through 2 sources. 1. Primary source of data collection: In this method, we collect the data for the first time i.e., first hand information through surveys, observations etc., 2. Secondary source of data collection: In this method , we collect the information which is readily available. The present project work is depending on secondary sources of information gathering. 1. DATA COLLECTION In the present project work the data as been collected from readily available source that is secondary data like websites newspapers and magazines the sample size taken for study 5 companies

THE WEB SITE VISITED 1. WWW.AMFI.COM. 2. MONEY.REDIFF.COM. 2. DATA ANALYSIS The present project work as been analyzed using time series analysis with graphical presentation the formula applied in the calculation or as follows FOR MUTUAL FUNDS NAV RETURNS 1. AVG RETURNS=ri/n

2. RISK RETURNS=

NEED AND SCOPE At the present trend in mutual funds investor are investing in different sectors .it is a good advantage for the investors and also benefit for the investors and investor can reduce risk

in mutual fund. In the sectorial funds we have diversified companies and sectors funds of bank .the investor must choose and invest the funds in the different sectors and the companies the finance manager as to suggest the investor there is no relationship between the funds. You can invest in any funds Now a days good scope is their for the mutual funds .the financial managers as to decide whether he as to invest in share stock, bonds and sectors to get the more benefits for funds so invest in good profitability sector. Then the financial manager can reduce the risk from the investors. The scope of study is confirmed to the sectorial funds available in India mutual fund market

LIMITATIONS :
The following are the limitations of the study. The study is based on the secondary data which is available from various websites. The study is limited to only 10 securities.
The time taken to undertake the project work is very short; hence only 10securities were

chosen for the study.

CHAPTER-3

LITERATURE SURVEY

UNDERSTANDING MUTUAL FUND Mutual fund is a trust that pools money from a group of investors (sharing common financial goals) and invest the money thus collected into asset classes that match the stated investment objectives of the scheme. Since the stated investment objectives of a mutual fund scheme generally form the basis for an investor's decision to contribute money to the pool, a mutual fund can not deviate from its stated objectives at any point of time.

Every Mutual Fund is managed by a fund manager, who using his investment management skills and necessary research works ensures much better return than what an investor can manage on his own. The capital appreciation and other incomes earned from these investments are passed on to the investors (also known as unit holders) in proportion of the number of units they own.

When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the fund in the same proportion as his contribution amount put up with the corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder. Any change in the value of the investments made into capital market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's assets by the total number of units issued to the investors.

For example: A. If the market value of the assets of a fund is Rs. 100,000 B. The total number of units issued to the investors is equal to 10,000. C. Then the NAV of this scheme = (A)/(B), i.e. 100,000/10,000 or 10.00 D. Now if an investor 'X' owns 5 units of this scheme E. Then his total contribution to the fund is Rs. 50 (i.e. Number of units held multiplied by the NAV of the scheme)

ADVANTAGES OF MUTUAL FUND S. Advantage No. Mutual Funds invest in a well-diversified portfolio of securities which Portfolio 1. Diversification amount of investment is big or small). Fund manager undergoes through various research works and has better Professional 2. Management than what he can manage on his own. Investors acquire a diversified portfolio of securities even with a small 3. Less Risk investment in a Mutual Fund. The risk in a diversified portfolio is lesser than investing in merely 2 or 3 securities. Due to the economies of scale (benefits of larger volumes), mutual funds pay lesser transaction costs. These benefits are passed on to the investors. investment management skills which ensure higher returns to the investor enables investor to hold a diversified investment portfolio (whether the Particulars

4. Low Transaction

Costs An investor may not be able to sell some of the shares held by him very 5. Liquidity easily and quickly, whereas units of a mutual fund are far more liquid. Mutual funds provide investors with various schemes with different Choice of 6. Schemes having a correlation between its investment objectives and their own financial goals. These schemes further have different plans/options Funds provide investors with updated information pertaining to the markets 7. Transparency and the schemes. All material facts are disclosed to investors as required by the regulator. Investors also benefit from the convenience and flexibility offered by Mutual Funds. Investors can switch their holdings from a debt scheme to an equity 8. Flexibility scheme and vice-versa. Option of systematic (at regular intervals) investment and withdrawal is also offered to the investors in most open-end schemes. Mutual Fund industry is part of a well-regulated investment environment 9. Safety where the interests of the investors are protected by the regulator. All funds are registered with SEBI and complete transparency is forced. investment objectives. Investors have the option of investing in a scheme

DISADVANTAGES OF MUTUAL FUND S. Disadvantage No. Investor has to pay investment management Costs Control fees and fund distribution costs as a Not in the 1. Hands of an (as long as he holds the units), irrespective of Investor the performance of the fund. The portfolio of securities in which a fund invests is a decision taken by the fund manager. Investors have no right to interfere No Customized 2. Portfolios manager, which some investors find as a constraint in achieving their financial objectives. Many investors find it difficult to select one Difficulty in Selecting a 3. Suitable Fund may have to take advice from financial Scheme planners in order to invest in the right fund to achieve their objectives. TYPES OF MUTUAL FUNDS General Classification of Mutual Funds Open-end Funds | Closed-end Funds option from the plethora of funds/schemes/plans available. For this, they in the decision making process of a fund percentage of the value of his investments Particulars

Open-end Funds Funds that can sell and purchase units at any point in time are classified as Open-end Funds. The fund size (corpus) of an open-end fund is variable (keeps changing) because of continuous selling (to investors) and repurchases (from the investors) by the fund. An open-end fund is not required to keep selling new units to the investors at all times but is required to always repurchase, when an investor wants to sell his units. The NAV of an open-end fund is calculated every day.

Closed-end Funds Funds that can sell a fixed number of units only during the New Fund Offer (NFO) period are known as Closed-end Funds. The corpus of a Closed-end Fund remains unchanged at all times. After the closure of the offer, buying and redemption of units by the investors directly from the Funds is not allowed. However, to protect the interests of the investors, SEBI provides investors with two avenues to liquidate their positions: 1. Closed-end Funds are listed on the stock exchanges where investors can buy/sell units from/to each other. The trading is generally done at a discount to the NAV of the scheme. The NAV of a closed-end fund is computed on a weekly basis (updated every Thursday). 2. Closed-end Funds may also offer "buy-back of units" to the unit holders. In this case, the corpus of the Fund and its outstanding units do get changed. Load Funds | No-load Funds Load Funds Mutual Funds incur various expenses on marketing, distribution, advertising, portfolio churning, fund manager's salary etc. Many funds recover these expenses from the investors in the form of

load. These funds are known as Load Funds. A load fund may impose following types of loads on the investors:

Entry Load - Also known as Front-end load, it refers to the load charged to an investor at the time of his entry into a scheme. Entry load is deducted from the investor's contribution amount to the fund.

Exit Load - Also known as Back-end load, these charges are imposed on an investor when he redeems his units (exits from the scheme). Exit load is deducted from the redemption proceeds to an outgoing investor.

Deferred Load - Deferred load is charged to the scheme over a period of time. Contingent Deferred Sales Charge (CDSC) - In some schemes, the percentage of exit load reduces as the investor stays longer with the fund. This type of load is known as Contingent Deferred Sales Charge.

No-load Funds All those funds that do not charge any of the above mentioned loads are known as No-load Funds. Tax-exempt Funds | Non-Tax-exempt Funds Tax-exempt Funds Funds that invest in securities free from tax are known as Tax-exempt Funds. All open-end equity oriented funds are exempt from distribution tax (tax for distributing income to investors). Long term capital gains and dividend income in the hands of investors are tax-free.

Non-Tax-exempt Funds Funds that invest in taxable securities are known as Non-Tax-exempt Funds. In India, all funds,

except open-end equity oriented funds are liable to pay tax on distribution income. Profits arising out of sale of units by an investor within 12 months of purchase are categorized as short-term capital gains, which are taxable. Sale of units of an equity oriented fund is subject to Securities Transaction Tax (STT). STT is deducted from the redemption proceeds to an investor.

BROAD MUTUAL FUND TYPES

1. Equity Funds Equity funds are considered to be the more risky funds as compared to other fund types, but they also provide higher returns than other funds. It is advisable that an investor looking to invest in an equity fund should invest for long term i.e. for 3 years or more. There are different types of equity funds each falling into different risk bracket. In the order of decreasing risk level, there are following types of equity funds:
a. Aggressive Growth Funds - In Aggressive Growth Funds, fund managers aspire for

maximum capital appreciation and invest in less researched shares of speculative nature. Because of these speculative investments Aggressive Growth Funds become more volatile and thus, are prone to higher risk than other equity funds.
b. Growth Funds - Growth Funds also invest for capital appreciation (with time horizon of

3 to 5 years) but they are different from Aggressive Growth Funds in the sense that they invest in companies that are expected to outperform the market in the future. Without entirely adopting speculative strategies, Growth Funds invest in those companies that are expected to post above average earnings in the future.
c. Speciality Funds - Speciality Funds have stated criteria for investments and their

portfolio comprises of only those companies that meet their criteria. Criteria for some speciality funds could be to invest/not to invest in particular regions/companies. Speciality funds are concentrated and thus, are comparatively riskier than diversified funds.. There

are following types of speciality funds:

i.

Sector Funds: Equity funds that invest in a particular sector/industry of the market are known as Sector Funds. The exposure of these funds is limited to a particular sector (say Information Technology, Auto, Banking, Pharmaceuticals or Fast Moving Consumer Goods) which is why they are more risky than equity funds that invest in multiple sectors.

ii.

Foreign Securities Funds: Foreign Securities Equity Funds have the option to invest in one or more foreign companies. Foreign securities funds achieve international diversification and hence they are less risky than sector funds. However, foreign securities funds are exposed to foreign exchange rate risk and country risk.

iii.

Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower market capitalization than large capitalization companies are called Mid-Cap or Small-Cap Funds. Market capitalization of Mid-Cap companies is less than that of big, blue chip companies (less than Rs. 2500 crores but more than Rs. 500 crores) and Small-Cap companies have market capitalization of less than Rs. 500 crores. Market Capitalization of a company can be calculated by multiplying the market price of the company's share by the total number of its outstanding shares in the market. The shares of Mid-Cap or Small-Cap Companies are not as liquid as of Large-Cap Companies which gives rise to volatility in share prices of these companies and consequently, investment gets risky.

iv.

Option Income Funds*: While not yet available in India, Option Income Funds write options on a large fraction of their portfolio. Proper use of options can help

to reduce volatility, which is otherwise considered as a risky instrument. These funds invest in big, high dividend yielding companies, and then sell options against their stock positions, which generate stable income for investors. d.
e. Diversified Equity Funds - Except for a small portion of investment in liquid money

market, diversified equity funds invest mainly in equities without any concentration on a particular sector(s). These funds are well diversified and reduce sector-specific or company-specific risk. However, like all other funds diversified equity funds too are exposed to equity market risk. One prominent type of diversified equity fund in India is Equity Linked Savings Schemes (ELSS). As per the mandate, a minimum of 90% of investments by ELSS should be in equities at all times. ELSS investors are eligible to claim deduction from taxable income (up to Rs 1 lakh) at the time of filing the income tax return. ELSS usually has a lock-in period and in case of any redemption by the investor before the expiry of the lock-in period makes him liable to pay income tax on such income(s) for which he may have received any tax exemption(s) in the past.
f. Equity Index Funds - Equity Index Funds have the objective to match the performance

of a specific stock market index. The portfolio of these funds comprises of the same companies that form the index and is constituted in the same proportion as the index. Equity index funds that follow broad indices (like S&P CNX Nifty, Sensex) are less risky than equity index funds that follow narrow sectoral indices (like BSEBANKEX or CNX Bank Index etc). Narrow indices are less diversified and therefore, are more risky.
g. Value Funds - Value Funds invest in those companies that have sound fundamentals and

whose share prices are currently under-valued. The portfolio of these funds comprises of

shares that are trading at a low Price to Earning Ratio (Market Price per Share / Earning per Share) and a low Market to Book Value (Fundamental Value) Ratio. Value Funds may select companies from diversified sectors and are exposed to lower risk level as compared to growth funds or speciality funds. Value stocks are generally from cyclical industries (such as cement, steel, sugar etc.) which make them volatile in the short-term. Therefore, it is advisable to invest in Value funds with a long-term time horizon as risk in the long term, to a large extent, is reduced.
h. Equity Income or Dividend Yield Funds - The objective of Equity Income or Dividend

Yield Equity Funds is to generate high recurring income and steady capital appreciation for investors by investing in those companies which issue high dividends (such as Power or Utility companies whose share prices fluctuate comparatively lesser than other companies' share prices). Equity Income or Dividend Yield Equity Funds are generally exposed to the lowest risk level as compared to other equity funds. 2. Debt / Income Funds
Funds that invest in medium to long-term debt instruments issued by private companies, banks, financial institutions, governments and other entities belonging to various sectors (like infrastructure companies etc.) are known as Debt / Income Funds. Debt funds are low risk profile funds that seek to generate fixed current income (and not capital appreciation) to investors. In order to ensure regular income to investors, debt (or income) funds distribute large fraction of their surplus to investors. Although debt securities are generally less risky than equities, they are subject to credit risk (risk of default) by the issuer at the time of interest or principal payment. To minimize the risk of default, debt funds usually invest in securities from issuers who are rated by credit rating agencies and are considered to be of

"Investment Grade". Debt funds that target high returns are more risky. Based on different investment objectives, there can be following types of debt funds:

a. Diversified Debt Funds - Debt funds that invest in all securities issued by entities

belonging to all sectors of the market are known as diversified debt funds. The best feature of diversified debt funds is that investments are properly diversified into all sectors which results in risk reduction. Any loss incurred, on account of default by a debt issuer, is shared by all investors which further reduces risk for an individual investor.
b. Focused Debt Funds* - Unlike diversified debt funds, focused debt funds are narrow

focus funds that are confined to investments in selective debt securities, issued by companies of a specific sector or industry or origin. Some examples of focused debt funds are sector, specialized and offshore debt funds, funds that invest only in Tax Free Infrastructure or Municipal Bonds. Because of their narrow orientation, focused debt funds are more risky as compared to diversified debt funds. Although not yet available in India, these funds are conceivable and may be offered to investors very soon.
c. High Yield Debt funds - As we now understand that risk of default is present in all debt

funds, and therefore, debt funds generally try to minimize the risk of default by investing in securities issued by only those borrowers who are considered to be of "investment grade". But, High Yield Debt Funds adopt a different strategy and prefer securities issued by those issuers who are considered to be of "below investment grade". The motive behind adopting this sort of risky strategy is to earn higher interest returns from these issuers. These funds are more volatile and bear higher default risk, although they may earn at times higher returns for investors.

d. Assured Return Funds - Although it is not necessary that a fund will meet its objectives

or provide assured returns to investors, but there can be funds that come with a lock-in period and offer assurance of annual returns to investors during the lock-in period. Any shortfall in returns is suffered by the sponsors or the Asset Management Companies (AMCs). These funds are generally debt funds and provide investors with a low-risk investment opportunity. However, the security of investments depends upon the net worth of the guarantor (whose name is specified in advance on the offer document). To safeguard the interests of investors, SEBI permits only those funds to offer assured return schemes whose sponsors have adequate net-worth to guarantee returns in the future. In the past, UTI had offered assured return schemes (i.e. Monthly Income Plans of UTI) that assured specified returns to investors in the future. UTI was not able to fulfill its promises and faced large shortfalls in returns. Eventually, government had to intervene and took over UTI's payment obligations on itself. Currently, no AMC in India offers assured return schemes to investors, though possible.
e. Fixed Term Plan Series - Fixed Term Plan Series usually are closed-end schemes having

short term maturity period (of less than one year) that offer a series of plans and issue units to investors at regular intervals. Unlike closed-end funds, fixed term plans are not listed on the exchanges. Fixed term plan series usually invest in debt / income schemes and target short-term investors. The objective of fixed term plan schemes is to gratify investors by generating some expected returns in a short period.

COMPANY PROFILE

OVERVIEW

Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $7.1 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image.

Mahindra is the only Indian company among the top tractor brands in the world. It is today a full-range player with a presence in almost every segment of the automobile industry, from two-wheelers to CVs, UVs, SUVs and sedan. Mahindra recently acquired a majority stake in REVA Electric Car Co Ltd. (now called Mahindra REVA), strengthening its position in the Electric Vehicles domain.

The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam.

Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.

HISTORY

Few groups can identify as closely with India's destiny and industrial progress as the Mahindra Group. In fact, Mahindra is like a microcosm of India. Both were born around the same time, had the same aspirations and both experienced the inevitable troughs and crests in the journey towards their goals. And both continue to march on the path to progress and global recognition.

The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United States of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a vehicle that had proved its invincibility on the battlefields of World War II be ideal for India's rugged terrain and its kutcha rural roads?

Swift action followed this thought. The Mahindra brothers joined hands with a distinguished gentleman called Ghulam

Mohammed & on October 2nd, 1945, Mahindra & Mohammed was set up as a franchise for assembling Jeeps from Willys, USA.

Two years later, India became an independent nation and Mahindra & Mohammed changed its name to Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan postpartition and became the first Finance Minister of Pakistan.

Since then, Mahindra & Mahindra has grown steadily in size and stature and evolved into a Group that occupies a premier position in almost all key sectors of the economy. The Group's history is studded with milestones. Each one taking the Group forward. In fact, today, its total turnover is about 6.3 billion dollars.

Mahindra is a group in a hurry, engaged in an ambitious, sustained and prolonged penetration into the global arena. Its spirit can be encapsulated in the words of the poet Robert Frost, a favourite of India's first Prime Minister, Pandit Jawaharlal Nehru:

"The But And

woods I miles

are have to

lovely, go

dark I

and to

deep, keep,

promises before

sleep,

And miles to go before I sleep."

For Mahindra & Mahindra, this translates into many more milestones to be set up before it rests. If ever.

BOARDS OF DIRECTORS

The Board of Directors of the Company has, as its members, eminent persons from Industry, Finance, Investment and other branches of business, who bring diverse experience and expertise to the Board.

The Company's current Board of Directors is as follows:

NAME

DESIGNATION

1. Mr. Mahindra

KeshubChairman

2. Mr.

Anand

G.Vice

Chairman

and

Mahindra

Managing Director

3. Deepak Parekh

ShantilalDirector

4. Nadir Godrej

BurjorjiDirector

5. M. M. Murugappan Director

6. Bharat Doshi

NarotamExecutive Group

Director

&

Chief

Financial

Officer (Group CFO)

7. Arun Kumar Nanda Executive Director

8. Narayanan Vaghul Director

9. Dr. Ashok SekharDirector Ganguly

10. R. K. Kulkarni

Director

11. Anupam Puri

PradipDirector

12. Arun Dasgupta

KantiNominee of LIC

MAHENDRA FINANCE The US $6.7 billion Mahindra Group is among the top ten industrial houses in India and is the only Indian company among the top three tractor manufacturers in the world. The Mahindra group has, over the years, established a significant presence in all the crucial sectors of the Indian economy. Consistently setting new standards, it is now considered to be one of the key performers of the country. The company was originally set up in 1945 as Mahindra & Mohammed. Later, after the partition of India, Ghulam Mohammad returned to Pakistan and became the nation's first finance minister. Hence the name was changed from Mahindra & Mohammed to Mahindra & Mahindra in 1948. While retaining its core values of introducing rural India to technological advancements, the company has steadily transformed itself into a group that caters to the Indian and overseas markets with a presence in various business sectors: Automotive, Farm Equipment, Financial Services, Systech, AfterMarket, Information Technology, Specialty Business, Infrastructure

Development, Trade, Retail and Logistics. Steered by Chairman Keshub Mahindra and Managing Director Anand Mahindra, Mahindra & Mahindra has constantly grown in size and stature and evolved into a group that occupies premier position in almost all the sectors in which they operate. Making state-of-the-art technology an accessible and affordable commodity is what takes the company from strength to strength with every passing year. With over 62 years of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution which are vital to its evolution as a customer-centric organisation. The group employs over 75,000 people and has several state-of-the-art facilities in India and overseas. The US $6.7 billion Mahindra Group is among the top ten industrial houses in India and is the only Indian company among the top three tractor manufacturers in the world. The Mahindra group has, over the years, established a significant presence in all the crucial sectors of the Indian economy. Consistently setting new standards, it is now considered to be one of the key performers of the country. The company was originally set up in 1945 as Mahindra & Mohammed. Later, after the partition of India, Ghulam Mohammad

returned to Pakistan and became the nation's first finance minister. Hence the name was changed from Mahindra & Mohammed to Mahindra & Mahindra in 1948. While retaining its core values of introducing rural India to technological advancements, the company has steadily transformed itself into a group that caters to the Indian and overseas markets with a presence in various business sectors: Automotive, Farm Equipment, Financial Services, Systech, AfterMarket, Information Technology, Specialty Business, Infrastructure Development, Trade, Retail and Logistics. Steered by Chairman Keshub Mahindra and Managing Director Anand Mahindra, Mahindra & Mahindra has constantly grown in size and stature and evolved into a group that occupies premier position in almost all the sectors in which they operate. Making state-of-the-art technology an accessible and affordable commodity is what takes the company from strength to strength with every passing year. With over 62 years of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution which are vital to its evolution as a customer-centric organisation. The group employs over 75,000 people and has several state-of-the-art facilities in India and overseas.

FINANCIAL SERVICES

Finance is a major impetus for the growth of automotive products and this led to the Groups foray into financial services through Mahindra Finance and its subsidiary. Together, a cluster of these companies forms the Trade and Financial Services Sector of the Mahindra Group.

Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is one of 's leading non-banking finance companies focused on providing finance for utility vehicles, tractors and cars in the rural and semi-urban sector. Mahindra Finance currently has the largest network of over 436 branches . It has entered into more than 600,000 customer contracts and has disbursements of around Rs. 21000crore since inception. Mahindra Insurance Brokers, a wholly owned subsidiary of Mahindra Finance, is one of the few insurance broking

companies in to receive the ISO 9001:2000 Certification for Quality Management Systems. It provides direct insurance broking for retail and corporate customers with a wide and comprehensive range of plans for Life and Non-life Insurance segments. Under the Non-life Insurance category, Personal, Industrial, Commercial, Social and Liability products are available. Mahindra Rural Housing Finance Ltd (MRHFL) is a wholly owned subsidiary of Mahindra & Mahindra Financial Services (MMFSL). It has been recently set up with an objective of meeting the housing finance needs of the rural/semi urban customers across the country.

Mahindra Finance About MMFSL

Mahindra Services

and

Mahindra is one

Financial of Indias

Limited

leading non-banking finance companies. Through a vast network of branches, we provide personalized finance for the widest range of utility vehicles, tractors

and cars, focusing on the rural and semiurban sector.

MMFSLs rural financing is considered as the cornerstone of poverty reduction, rural development and inclusive growth in many parts of the country. With a majority of our countys population living in rural India, our loans to over 900,000 customers belonging to the low income groups have proved to be a catalyst in helping rural India surge ahead in a big way. Our unique business model is socially inclusive as we help customers who are at the bottom of the income or social pyramids to grow by providing them loans based on their future earning capacities. It is also our continuous endeavor to develop skill sets at the local level. We currently provide employment to over 6200 people who belong to the areas in which we serve, ensuring that our employees truly understand their customers. Since 1945, we, at the Mahindra Group, have remained and will continue to remain partners in the progress of rural India, through both growth and turbulence. We salute the spirit of every Indian living off the land and move ahead, trying to understand the financial needs of rural India and tapping into this vast market of unbounded opportunities. Our goal is to be the preferred provider of retail financing services in the rural and semi-urban areas of India, while our

strategy is o provide a range of financial products and services to our customers through our nationwide distribution network.

Our Vision
To be leading financial services provider in semi-urban and rural India MAHENDRA INSURANCE BROAKERS * Legal Entity Mahindra & Mahindra Financial Services Limited Overview

Mahindra Insurance Brokers Ltd. is one of the few insurance broking companies in India who have been awarded the prestigious ISO 9001:2000 Certification for Quality Management Systems. MIBLs aim is to play a predominant role in the insurance broking industry in India while focusing on providing innovative solutions, greater value to customers, superior quality of service and professional manpower keeping in mind the spirit of social responsibility.

Committed to maintaining a high standard of excellence, MIBL has empanelled itself with various public and private insurance companies to offer highly customised solutions to its customers. A determined, dynamic and highly competitive insurance broking company, MIBLs core asset is the delivery of timely and cost-effective insurance solutions.

MIBL was granted a Direct Broker License by the Insurance Regulatory and Development Authority (IRDA) on May 2004 for undertaking direct insurance

broking in Life and Non-Life businesses.

MIBL undertakes direct insurance broking business, both in the Life and Non-Life insurance segments with a focus on Retail and Commercial lines of businesses.

Our Vision:

To be among Indias leading Insurance Brokers.