ACKNOWLEDGEMENT

A project is never successfully completed without the assistance and guidance from appropriate persons .So, it is a time to express my sincere gratitude towards all persons who have helped me to complete this project. I wish to express my heartfelt thanks to Mr. Venkatesh branch manager of DHANLAXMI BANK, their cheerful induction of my first visit to companys office helped me to know about Investments as a product and the activity I had to perform. I want to give my genial and sincere thanks to Mr.________.

Director ______________. I would like to sincerely thank Mr._________my mentor (guide in this project.) For his valuable suggestion and guidance and making it possible for us to accomplish the project. Above all, I thanks for giving me patience and Strength to overcome the difficulties, which crossed my way in the accomplishment of this endeavor.

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1.EXECUTIVE SUMMARY OF PROJECT

My name is __________and I am a PGDM student of ________________________________________. As a part of our PGDM program, I have done a live project at Dhanlaxmi Bank and undergone through the SALES STUDY OF MUTUAL FUND AND INSURANCE. And based on my understanding I am preparing a project report describing my work. I was trained and imparted with the knowledge about various investment tools like Insurance and Mutual funds by my mentor at the initial stage of my project. I was provided with the following products: General Insurance and Mutual funds of ICICI Prudential, Bajaj ALLIANZ, KOTAK and HDFC. My responsibility was to approach and entertain different clients so as to make them understand the products and to advise them on the matter of financial planning. The title of my project is:

Investment Banking

1.1.

Duration of Study The study was carried out for a period of 45

days, from 15th Feb to 31st Mar 2011

1.2.

Objective: - The study emphasizes on the sales study of mutual fund

and insurance. how it works. Concept of mutual funds and various mutual fund schemes and understanding of insurance. How the mutual funds work and how to get the maximum benefits out of mutual funds. What are the companies dealing in mutual fund? And a brief explanation of insurance.

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1.3.

Methodology Used: - The project required interacting with the

industry persons to get all the relevant information about the mutual funds and insurance and I tried selling some of the products to get industry experience.

The various sources of data collection are:

Primary Data Interviews, internship, selling of mutual fund and insurance in internship Secondary Data Internet, magazines and brochures.

1.4.

Duration of Study The study was carried out for a period of 45

days, from 26th May to 6th July 2010.

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2.Industry Profile

2.1.

Indian Banking Industry

Indias Banking Scene: Indias banking sector is growing at a fast pace. India has become one of the most preferred banking destinations in the world. The reasons are economy is growing at a rate of 8.5%, Bank credit is growing at 30% per annum and there is an ever-expanding middle class of between 250 and 300 million people (larger than the population of the US) in need of financial services. All this enables double-digit returns on most asset classes which is not so in a majority of other countries worldwide. Foreign banks in India are also achieving a return on assets and are keen in expanding their businesses. Indian markets provide growth opportunities, which are unlikely to be matched by the mature banking markets around the world. Some of the high growth potential areas to be looked at are the market for consumer finance of about 2%-3% of GDP, compared with 25% in some European markets, the real estate market in India is growing at 30% annually and is projected to touch $50 billion by 2008, the retail credit is expected to cross Rs 5,70,000 crore by 2010 from the current levels of Rs 2,00,000 crore and huge SME sector which contributes significantly to Indias GDP. Major strengths of the Indian banking industry, which have helped mark its place on the global banking arena, are our Regulatory Systems, Economic Growth Rate, Technological Advancement, Risk Assessment Systems and Credit Quality. Banks are also increasingly getting attracted towards cross selling mutual funds, insurance policies, offering credit cards to suit different categories of customers,
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services such as wealth management and equity trading. These are indeed proving to be more profitable for banks than plain lending and borrowing. The following figure indicates such opportunities.

2.2. Growth
The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs 40,90,000 crores. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side.

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3.COMPANY PROFILE
3.1. Introduction
Incorporated in November 1927 at Thrissur, Kerala by a group of ambitious entrepreneurs, Dhanlaxmi Bank Ltd. started business with Rs. 11,000 as capital and seven employees. It became a Scheduled Commercial Bank in 1977, and in 2009, was awarded approvals by the Reserve Bank of India for opening 66 branches. The Bank's Board of Directors is comprised of eminent professionals who provide leadership and guidance to a strong, multi skilled management team. Its comprehensive range of banking and financial services and its extensive nationwide presence has set the stage for an era of unprecedented growth.

3.1.1.

Branches & ATMs

Dhanalakshmi Bank boasts of a network of 181 branches and 26 Extension Counters, which have been spread over the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Delhi and West Bengal. At the same time, it has installed 72 networked ATMs in all those centers where high banking activity takes place. The main aim behind this is to provide easy banking access to the clients.

3.1.2.

Financial Highlights

Till 31st March 2009, Dhanalakshmi Bank had serviced a business (subject to audit) of Rs. 8212 crores. In this were included Deposits of Rs.4969 crores and Advances of Rs. 3243 crores. In the nine-month period ending on 31st
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December 2008, the bank had made a profit of Rs. 35.20 crores, while, on the same date, its Capital Adequacy ratio was 14.33 percent and the outstanding amount under micro credit was Rs.130.55 crores.

3.2. Vision & Mission

" To become a strong and innovative bank with integrity and social responsibility and to maximize customer satisfaction and the satisfaction of its employees, shareholders and the community."

3.3.

Achievements, Affiliations and Milestones

Achievements Serviced business worth Rs. 12,155 crores as on 31 March 2010, comprising deposits worth Rs. 7098 crores and advances worth Rs. 5056 crores. Earned a net profit of Rs. 23.30 crores for the financial year ended 31st March 2010, with a capital adequacy ratio of 12.99% (Basel II) during the same period. Put in place the Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) systems to facilitate large value payments and settlements online in real time, on a transaction-by-transaction basis. Set up NRI Boutiques (Relationship Centres) across nine locations in Kerala and Tamil Nadu, with plans to open specialized NRI outlets at potential locations with emphasis on impeccable service levels. Dispensed Micro Credit among private and public banks in Kerala, the Bank's outstanding under micro credit was Rs. 270.62 crores at the end of March 2009. Attained ISO 9001-2000 certification for the Bank's corporate office at Thrissur and industrial finance branch at Kochi. Affiliations Registered & Corporate Office
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Dhanlaxmi Bank Ltd, Dhanalakshmi Buildings Naickanal, Thrissur - 680 001, Kerala. Phone : 91-487-6617000, Fax : 91-487-6617222 Company Secretary Ravindran K. Warrier Auditors M/S Walker Chandiok & Co., New Delhi M/S Shah Gupta & Co., Mumbai Foreign Correspondent Banks Deutsche Bank Trust Company Americas Wachovia Bank NA - Wells Fargo Company Commerzbank AG National Westminster Bank PLC Stock Exchanges National Stock Exchange (NSE) Bombay Stock Exchange (BSE) Cochin Stock Exchange (CSE) Insurance Partner BajajAllianz Broking Partner Destimony Securities Pvt Ltd. Mutual Fund Partners ICICI Prudential AMC Ltd, Kotak Mahindra Asset Management Co, Ltd. UTI Mutual Funds, HDFC Asset Management Co, Ltd. ATM Services AGS Infotech Pvt Ltd. Major Exchange Houses UAE Exchange Centre LLC Al Ahalia Money Exchange Bureau

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3.4. Milestones
1927 - Founded on 14 November, 1927, at Thrissur, Kerala 1975 - Set up the first branch outside the home state of Kerala, at Chennai Mount Road 1977 - Designated as Scheduled Commercial Bank by the Reserve Bank of India (RBI) 1980 - 100-strong branch network 1986 - Total business of Rs. 100 crores 1996 - First public issue. Total business of Rs. 1,000 crores 2000 - Installed the first ATM 2002 - First Rights Issue 2002 - Platinum Jubilee year 2007 - Total business of Rs. 5,000 crores. 80th Anniversary year 2008- Total business of Rs. 7,500 crores. Second Rights Issue 2009/10- Expanded branch network to 270 branches. Total business surpassed Rs. 12,000 crores

3.5. Financial Inclusion Initiatives

Surpassed the RBI's benchmark of priority sector lending of 40% by advancing Rs. 1,409 crores as at March end 2010, representing 43.61%. Surpassed RBI's recommended norm of 18% advances with respect to agricultural credit by lending Rs.601.99 crores as as at March end 2010, representing 18.62%. Outstanding of Rs. 477.14 crores were under weaker sections, representing 10.31% as against the RBI benchmark of 10% as at March end 2010. Outstanding in the area of micro credit totalled Rs. 270.62 crores as at March end 2010.
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 Credit facilities availed by SHGs stood at Rs.60.97 crores as at March end 2010. Kissan Credit Cards for Rs. 3.82 crores were issued to 1200 farmers as at March end 2010. Opened 1,00,010 no-frills accounts with outstanding of Rs. 23.46 crores as at March end 2010, as part of financial inclusion initiatives. Our Branch Correspondent (BC) locations and branches opened are as follows: Sr. No Location Name 1. Pallickathodu 2. Thalanadu 3. Ramapuram 4. Kanakkary 5. Poovarani 6. Malam 7. Channanikadu 8. Urualikunnam 9. Kaarukachal 10. Pathanadu 11. Koruthodu Attached to Palai Palai Palai Palai Palai Kottayam Kottayam Kottayam Changanacherry Perunna Chirakadavu

3.6. Board of Directors

Mr.Amitabh Chaturvedi
Managing Director & CEO

Amitabh was appointed to the Board of Dhanlaxmi Bank on 10th October 2008, and took on the dual responsibilityof Managing Director and Chief Executive Officer on 13th October 2008. A veteran in the banking and finance industry, he has 18 years of invaluable experience in all areas of finance including banking, asset management, investment banking, life insurance, general insurance and broking and distribution. His logical ability and his capabilities in both business planning and execution have helped Mr. Chaturvedi steer high performing teams, ensure
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results within aggressive timeliness, and experiment with new ideas successfully and effortlessly. Mr.Ghanshyam Das
Independent Director

Mr.K.Srikanth Reddy
Independent Director

Mr.Sateesh Kumar Andra

Independent Derector

Mr.V.Rao Chalasani
Independent Director

Mr.G.N.Bajpai
Chairman

Mr.Santhanakrishnan
Independent Director

Mr.Shailesh Haribhakti
Independent Directo

3.7. Partnerships
The Dhanlaxmi Bank has an agreement with Bajaj Alliance Insurance Company Ltd, as their corporate agent. The bank is also a depository participant of NSDL (National Security Depository Limited) offering Demat services through selected branches.

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3.8. Performance

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3.9. Market Share

Our banks growth during year 2009-10 was well ahead of the industrys growth on a continuous basis under both deposits and advances. The banks market share in the deposits increased from 0.119% to 0.153% while that in advances rose from 0.111% to 0.153% during the period. The following table captures the above performance.

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3.10.

Shareholding Pattern Share Holding Pattern as on 31/12/2010

Sr. No. 1 Banks 2 3 4 5 6 7 8 9 10 11

Description 3

Cases 97 7 63 502 2 989 10 980 47180 5 49838

Shares 206967 176426 96500 33864614 717124 497277 12780926 5076299 4413292 27303030 2680 85135135

% Equtiy 0.24 0.21 0.11 39.78 0.84 0.58 15.01 5.96 5.18 32.07 0 100

Clearing Members Directors Foreign Institutional Investor HUF Insurance Companies Bodies Corporates Mutual Funds Non Resident Indians ResidentIndividuals Trusts Total:

3.11.

Share listing

The Banks existing equity shares are listed on: The Cochin Stock Exchange Limited The Stock Exchange Mumbai. (Code:532180) The National Stock Exchange. (Code:DHANBANK)

The equity shares are available for dematerialization with ISIN No.INE 680A01011.

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4.Products and Services of Dhanlakshmi Bank Ltd

The products and services of the Dhanlakshmi Bank can be categorized into following types: Personal banking-accounts, loans, lockers, depository services & forex services Corporate banking-cash management, credit, salary account and forex & trade services NRI banking-accounts & deposits, money transfer, NRI home loans and investment services Microfinance services-Dhanam Kissan Vahana (vehicle loan), Dhanam Kissan Card, Agri Gold Loan, Micro Credit-MFI, Micro Credit SHG

PERSON AL BANKIN G

CORPORA TE BANKING

NRI BANKIN G

FINANCIA L PLANNIN G

MICRO &AGRO BANKING

Apart from these, Dhanalakshmi Bank foray into Insuranse and Mutual

Fund Business as well for the benefit of its customers.

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4.1. Insurance 4.1.1.

MEANING OF INSURANCE

Insurance is not necessarily an investment from which one expects to get one's money back. Nor is it gambling. A gambler takes risks, while insurance offers protection against risks that already exist. Insurance is a way to share risk with others. Since ancient times, communities have pooled some of their resources to help individuals who suffer loss. "Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event." Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected.

4.1.2.

Unit Linked Insurance Plan (ULIP)

A policy, which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. ULIP is life insurance solution that provides for the benefits of protection and Flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). ULIP came into play in the 1960s and became very popular in Western Europe and Americas. The reason that is attributed to the wide spread popularity of ULIP is because of the transparency and the flexibility which it offers. As times progressed the plans were also successfully mapped along with life insurance need to retirement planning. In todays times, ULIP provides
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solutions for insurance planning, financial needs, financial planning for childrens future and retirement planning.

Through our partnership with Bajaj Allianz, one of the leading Indian Insurance companies, we bring to you a suite of products which take into consideration market dynamics and addresses your life insurance needs. Bajaj Allianzs specific insurance plans ensure a robust product portfolio that meets all your life-stage needs, along with right investment strategies that help you plan for a secured future. Be it retirement, investments, savings, health or term assurance we have a unique solution for you.

Insurance Partner

4.2. BAJAJ ALLIANZ GENERAL INSURANCE COMPANY

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE. Bajaj Allianz General Insurance maintained its premier position in the industry by garnering a premium income of Rs. 2578 crore, achieving a growth of 43 % over the last year. Bajaj Allianz has made a profit before taxes of Rs. 167 crore and is the first company to cross the Rs.100 crores mark in profit after tax by generating Rs. 105 crores. In the first quarter of 2008-09, the company garnered a gross premium of Rs.733.53 crores against Rs.573.73 core last year for the same period registering a growth of 28%. Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. all the offices are interconnected with the Head Office at Pune.
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4.2.1.

VISION To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry. To be the number one insurer for creating shareholder value

4.2.2.

PRODUCTS Bajaj Allianz Insurance Life Insurance

Retirement Policy
The market-linked retirement plans provide you complete retirement solutions to build a corpus and draw a regular income.

Life Policy
We help you achieve your aspirations - be it providing a secure and stable future to your family or helping you save for your retirement with Baja Allianzs unique life insurance solutions.

Protection Policy
Provide comprehensive protection for your family at a nominal cost with a wide range of protection plans

Savings Policy

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Plan ahead for the long term with our savings plans. The savings plans give you the flexibility of changing the proportion of savings and protection in line with your needs.

Child Policy
Bajaj Allianzs child plans help you prepare for your childrens education with bonus units and regular income.

General Insurance
Health policy
Designed to ensure that you are cushioned against financial adversity by providing you all support that you need.

Car insurance Policy

Discover convenience with immediate policy issuance and claim survey in 24hrs.

Travel Insurance
Experience peace of mind with 24 hrs emergency cashless services and a host of other benefits.

House and Shop Policy

Flexibility to decide on the plan options with minimum documentation for claim settlement.

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4.3. Mutual 4.3.1.

Funds

Introduction

A mutual fund is financial intermediary that pools a savings of number of investors who share a financial goal. The money then invested in capital markets instruments such as shares, debentures and other securities. Thus mutual fund is the most suitable investment for common means it offers opportunity in diversified manner at relatively cost. The flow chart below describes broadly the working of mutual funds. The flow chart explain how money flow in mutual fund first the investors invest money with the help of fund manager in securities and after whatever return is earned in that security is giving back to the investor. More than 80 million people, or one half of the households in America, invest in mutual funds. That means that, in the United States alone many people investing means buying mutual funds. After all, its common knowledge that investing in mutual funds is better than simply letting your cash waste away in a savings account, but, for most people, that's where the understanding of funds ends. It doesn't help that mutual fund salespeople speak a strange language that is interspersed with jargon that many investors don't understand.
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One can make money from a mutual fund in three ways: a. Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all of the income it receives over the year to fund owners in the form of a distribution. b. If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass on these gains to investors in a distribution. c. If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. You can then sell your mutual fund shares for a profit. The list of top 10 performing mutual fund companies is as follows: UTI mutul fund HDFC Mutual Fund Tata Mutual Fund Reliance Mutual Fund DSP BlackRock Mutual Fund Kotak Mutual Fund Principal Mutual Fund Sundaram BNP Paribas Mutual Fund Franklin Templeton Mutual Fund Birla Sun Life Mutual Fund

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4.3.2.

Concept Of Mutual Fund

4.3.3.

Advantages of Mutual Funds:

Professional Management: - The primary advantage of funds (at least theoretically) is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolios. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.

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Diversification: - By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you (think about Enron). Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn't be possible for an investor to build this kind of a portfolio with a small amount of money.

Economies of Scale: - Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions. Liquidity: - Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time. Simplicity: - Buying a mutual fund is easy! Pretty well any bank has its own line of mutual funds, and the minimum investment is small. Most companies also have automatic purchase plans whereby as little as $100 can be invested on a monthly basis.

4.3.4.Organization of Mutual Fund

4.3.4.1. Mutual funds Mutual fund is vehicle that enables a number of investors to pool their money and have it jointly managed by a professional money manager.
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4.3.4.2. Sponsor Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund. 4.3.4.3. Trustee Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders and ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. 4.3.4.4. Asset Management Company (AMC) The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. At least 50% of the directors of the AMC are independent directors who are not associated with the Sponsor in any manner. The AMC must have a net worth of at least 10 crores at all times. 4.3.4.5. Transfer Agent The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records.

4.3.5. An investor can choose from the following ways for Mutual Fund Investment
LUMPSUM Here investor has to pay the amount according to his choice at lumsum means at a single time depositing the amount accpording to the plan.

SIP

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Systematic Investment plan is an investment philosophy that encourages you to invest small amounts that works towards realising the goals of your life. SIP instills a discipline that requires us to set aside an affordable amount of money every month that gets invested in a mutual fund of your choice (that is best suited to meet your objective). SIP helps you to start investing at an early age to meet the greater expenses of your life. Saving a small sum of money regularly makes money work with greater power of compounding with significant impact on wealth accumulation. Systematic Investment Plan (SIP) is a convenient way to accumulate wealth in a disciplined manner over a long-term period. It helps you to invest regularly in small installments and thereby build wealth over a period of time.

4.3.6.

TYPES OF MUTUAL FUND

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On the basis of their structure and objective, mutual funds can be classified into following major types: Closed-end funds A closed-end mutual fund has a set number of shares issued to the public through an initial public offering.

Open-end funds Open end funds are operated by a mutual fund house which raises money from shareholders and invests in a group of assets

Large cap funds Large cap funds are those mutual funds, which seek capital appreciation by investing primarily in stocks of large blue chip companies

Mid-cap funds Mid cap funds are those mutual funds, which invest in small / medium sized companies. As there is no standard definition classifying companies

Equity funds Equity mutual funds are also known as stock mutual funds. Equity mutual funds invest pooled amounts of money in the stocks of public companies.

Balanced funds Balanced fund is also known as hybrid fund. It is a type of mutual fund that buys a combination of common stock, preferred stock, bonds, and short-term bonds

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Growth funds Growth funds are those mutual funds that aim to achieve capital appreciation by investing in growth stocks.

No load funds Mutual funds can be classified into two types - Load mutual funds and No-Load mutual funds.

Exchange traded funds Exchange Traded Funds (ETFs) represent a basket of securities that is traded on an exchange, similar to a stock. Hence, unlike conventional mutual funds

Value funds Value funds are those mutual funds that tend to focus on safety rather than growth, and often choose investments providing dividends as well as capital appreciation.

Money market funds A money market fund is a mutual fund that invests solely in money market instruments. Money market instruments are forms of debt that mature in less than one year and are very liquid.

International mutual funds International mutual funds are those funds that invest in non-domestic securities markets throughout the world.

Regional mutual funds

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Regional mutual fund is a mutual fund that confines itself to investments in securities from a specified geographical area, usually, the fund's local region.

Sector funds Sector mutual funds are those mutual funds that restrict their investments to a particular segment or sector of the economy.

Index funds An index fund is a a mutual fund or exchange-traded fund) that aims to replicate the movements of an index of a specific financial market.

Fund of funds A fund of funds (FoF) is an investment fund that holds a portfolio of other investment funds rather than investing directly in shares, bonds or other securities.

4.3.7.How Mutual Funds Works

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Every mutual fund has a goal - either growing its assets (capital gains) and/or generating income (dividends) for its investors. Distributions in the form of capital gains (short-term and long-term) and dividends may be passed on (paid) to shareholders as income or reinvested to purchase more shares. For tax purposes, keep track of your distributions and cost basis of purchased/reinvested shares. Like any business, mutual funds have risks and costs associated with returns. As a shareholder, the risks of a fund and the expenses associated with fund's operation directly impact your return.

4.3.7.1.

Returns

As an investor, you want to know the fund's return-its track record over a specified period of time. So what exactly is "return?" A mutual fund's return is the rate of increase or decrease in its value over a specific period of time usually expressed in the following increments: one, three, five, and ten year, year to date, and since the inception of the fund. Since return is a common measure of performance, you can use it to evaluate and compare mutual funds within the same fund category. Generally expressed as an annualized percentage rate, return is calculated assuming that all distributions from the fund are reinvested Since average returns can sometimes "hide" short-term highs and lows, you should evaluate returns for a time period of several yearsnot just one year or less. A fund that has a high return in one year may have experienced losses in other years-these fluctuations may not be apparent in its average return. While a fund's return shows its track record, keep in mind that past performance is no guarantee of future results. When using returns to

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compare funds, always use net returns. Net returns are the true returns of both load and no-load funds after deducting all costs and expenses.

o Types of returns from a Mutual Fund

Mutual Funds give returns in two ways - Capital Appreciation or Dividend Distribution Capital Appreciation: An increase in the value of the units of the fund is known as capital appreciation. As the value of individual securities in the fund increases, the fund's unit price increases. An investor can book a profit by selling the units at prices higher than the price at which he bought the units. Dividend Distribution: The profit earned by the fund isdistributed among unit holders in the form of dividends. Dividend distribution again is of two types. It can either be re invested in the fund or can be on paid to the investor.

4.3.7.2.

Risk

Every type of investment, including mutual funds, involves risk. Risk refers to the possibility that you will lose money (both principal and any earnings) or fail to make money on an investment. A fund's investment objective and its holdings are influential factors in determining how risky a fund is. Reading the prospectus will help you to understand the risk associated with that particular fund. Generally speaking, risk and potential return are related.

Products from the Partners:

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4.3.8.ICICI Prudential Mutual Fund

4.3.8.1. Product Profile The mutual fund of ICICI is a joint venture with Prudential Plc. Of America, one of the largest life insurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13th of October, 1993 with two sponsors, Prudential Plc. and ICICI Ltd. The Trustee Company formed is Prudential ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management Company Limited incorporated on 22nd of June, 1993. Mutual Fund Setup Date Incorporation Date Sponsor Trustee Chairman ICICI Prudential Mutual Fund Oct-13-1993 Jun-22-1993 Prudential Plc and ICICI Bank Ltd. ICICI Prudential Trust Ltd. Ms. Chanda Kochhar

ICICI Prudential Mutual Fund is the product of ICICI Prudential Asset Management Company that is one of the largest in the world. ICICI Prudential Mutual Funds India has gained a pre-eminent position of high returns and growth plans in the Indian investment markets. Instigating operations in 1998 with just 2 funds, the product count from ICICI Prudential Mutual Fund has risen to 35 already along with an exponential increase in the customer bank as well.

4.3.8.2. Some of the mutual funds from ICICI Prudential Asset Management Company include:
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1) Equity Funds:
Equity schemes endeavor to provide potential for high growth and returns with a moderate to high risk by investing in shares. Such schemes are either actively or passively (replicate indices) managed, and are best suited for investors with a long term investment horizon.

i.

ICICI Prudential Focused Bluechip Equity Fund: ICICI Prudential Focused Equity Fund, an open-ended equity scheme, aims to maximize long-term total returns, from a focused and optimally diversified portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain. This strategy has the potential to generate positive returns from being overweight on certain high conviction stock picks.

ii.

ICICI Prudential Dynamic Plan ICICI Prudential Dynamic Plan is a diversified equity fund that could be your ideal choice to make the most of dynamic changes in the market. It has the agility to capture upside opportunities across value and growth, large-cap and mid-cap, index and non-index stocks. On the flip side it also has ability to move into cash as markets get overvalued .

iii.

ICICI Prudential Infrastructure Fund ICICI Prudential Infrastructure Fund is an open-ended equity fund, focused on capturing the opportunity presented by the long-term growth and development potential of the Indian Infrastructure Sector. It invests

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across various infra-sectors such as Power, Cement, Telecommunications, Oil and Gas, Banking, Transportation and other beneficial infrastructures.

iv.

ICICI Prudential Discovery Fund ICICI Prudential Discovery Fund is an open-ended diversified equity fund, invests in companies that are well managed, fundamentally strong, and chosen based on in-depth research. As these companies are bought at a discount to their fair value, there is also a margin of safety in the value portfolio.

2) Fixed Income Funds

Fixed Income Schemes primarily invests in bonds and other debt instruments, and will suit investors who want to optimize current income assuming low to moderate levels of risk.

3)

Balanced Funds
Hybrid Schemes or balanced schemes bridge the gap between equity and debt schemes. This category is characterized by a portfolio that is made up of a mix of equity stocks and bonds and will suit investors looking for debt plus returns with higher levels of risk than fixed income schemes.

4) Advisory Fund
Advisory Series is an open ended asset
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allocation fund, in the nature of a Fund of Funds. Its five investment plans have been specifically designed to suit the varying needs of different investor categories based on their risk profiles, return expectations and investment goals. By investing in the specified Plans under the Fund, an investor can balance investments across a mix of three asset classes viz., Equity, Debt and Gold and take advantage of the benefits of diversification.

5) Exchange Traded Funds

Advisory Series is an open ended asset allocation fund, in the nature of a Fund of Funds. Its five investment plans have been specifically designed to suit the varying needs of different investor categories based on their risk profiles, return expectations and investment goals. By investing in the specified Plans under the Fund, an investor can balance investments across a mix of three asset classes viz., Equity, Debt and Gold and take advantage of the benefits of diversification.

ICICI Prudential Mutual Funds have proven to be good investment opportunities with minimum risks and high returns as indicated in the past investments with the company by the customers. Funds like ICICI Prudential Infrastructure Fund, Power Fund, Discovery Fund, Fusion Fund Series i, ii, iii, that are long-term diversified equity investment schemes, have gained unexpected support from the investors.For further details on other products by ICICI Prudential or ICICI Bank India, browse through our subsequent pages on each. For details of the above-mentioned policies and plans refer to an ICICI Prudential fund manager.

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4.3.9. KOTAK

MUTUAL FUND

Kotak 30 (Now Kotak 50) Kotak Lifestyle Kotak Equity Arbitrage Fund Kotak Indo World Infrastructure Fund

Kotak Midcap Kotak Contra Kotak Emerging Equity Scheme Kotak Select Focus Fund

Kotak Opportunities Kotak Tax Saver Kotak Global Emerging Market Kotak Starkid Facility

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5.Organisational Structure
5.1.1. Organizational Structure (as a whole)
: : : : : : : : Mr. Amitabh Chaturvedi Mr. G.N Bajpai Mr. Ghanshyam Das Mr. k .Srikanth Reddy Mr. Sateesh Kumar Andra Mr. V. Rao Chalasani Mr. S. Santhana Krishnan Mr. Shailesh Haribhakti

Managing Director & CEO Chairman Independent Director Independent Director Independent Director Independent Director Independent Director Independent Director

5.1.2.

Organizational Structure (for peenya branch)

: Mr. Venkatesh : Mr. Sandeep Kumar sinha

Branch Manager Investment Manager

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6.SWOT ANALYSIS
6.1. STRENGHTS

Good Brand Image. Dedicated sales team.

Value added services. Dhanlaxmi Bank has professional, dedicated and well-trained manpower. It is fully computerized and techno-savvy. Dhanlaxmi Bank is complied with Capital Adequacy requirements and prudential norms. Opening new branches covering different geographical areas thus generating job opportunities and contributing to the economc development.

Partner with the most profitable pvt. life insurers in the market.

6.2. WEAKNESSES

Our bank has to compete with the Government Companies like LIC and UTI who has been very well established in this field. So they will have to attain the same trust of the public as it is in case of LIC and UTI.

Weak Customer Relations Management Although highly networked, the number of branches is limited.

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6.3. OPPORTUNITIES
Large Untapped Market. To face stiff competition, they can innovate new products and services and achieve high Customer satisfaction.

6.4. THREATS
Presence of very strong competitors. Aggressive marketing by competitors. Expansion of foreign banks in the post WTO era poses severe competition. RBI /GOI relaxation of FDI investment norms cause worry among the managements.

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7.Financial Reports
7.1. The Dhanlaxmi Bank Ltd.
Balanle Sheet as on 31st March 2010.

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7.2. THE DHANLAXMI BANK LIMITED

PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010

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8.Conclusion:Insurance sector has a good future. The companies will face more and more competition in future with domestic and foreign companies. One should not negligent insurance. Insurance sector can provide more and more job and so it can develop a nation.

After going through some investment plans in my project work. I got awareness about Mutual Funds. In this plan suitable for investment depends upon the customers, who willing to take risk. There are several factors that show high risk & low risk for who acquire more wealth they can enter into high risk in that they can earn more profit but less stability. In low risk factor moderate profit but stability this one suitable for monthly salary person between((10k-20k) from my point of view person have to allocate the amount for their essential then they can invest rest of the amount in Mutual Funds for their future requirements.

Thank You
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