ADITYA BIRLA Sun Life MUTUAL FUNDS

Summer Internship Project Report on
"COMPREHENSIVE OVERVIEW OF MUTUAL FUNDS IN

INDIA (WITH SPECIFIC REFERENCE TO ADITYA BIRLA
SUN LIFE MUTUAL FUNDS)"
Submitted for the Partial Fulfillment of the Degree of

Bachelor of Business Administration
Submitted by:
Harsh Vardhan Jain
Y22180517
BBA Hons. 5 th Semester
Under the guidance of:

Dr. Babita Yadav
Assistant Professor
Department of Business Management
Dr. Harisingh Gour Vishwavidyalaya

Sagar (M.P.)
Session 2024-25
DECLARATION
I HARSH VARDHAN JAIN, the student of BACHELOR OF BUSINESS

ADMINISTRATION HONORS Semester V (2024-25) hereby declare that I have
completed this project on “COMPREHENSIVE OVERVIEW OF MUTUAL FUNDS IN
INDIA WITH SPECIFIC REFERENCE TO ADITYA BIRLA SUN LIFE MUTUAL
FUNDS”. The information submitted is true & original to the best of my knowle dge.
Student's Signature:
(i)
CERTIFICATE
This is to certify that the summer internship project report is a result of the Bonafede
research work caried out by Harsh Vardhan Jain under my supervision and guidance. No
part of this report has been submitted for award of any other degree, diploma, fellowship
or other similar titles or prizes. The work has also not been published in any
journals/magazines.
Date:
Place:
Signature of the Faculty Guide: ……………………….
Signature of the Head of the Department: ……………………….
Signature of the Examiner:……………………………..
(iii)
ACKNOWLEDGEMENT
Before we get into thick of things, I would like to add a few words of appreciation for the
people who have been a part of this project right from its inception. The writing of this
project has been one of the significant academic challenges I have faced a nd without the
support, patience, and guidance of the people involved, this task would not have been
completed. It is to them I owe my deepest gratitude. It gives me immense pleasure in
presenting this project report on "COMPREHENSIVE OVERVIEW OF MUTUAL
FUNDS IN INDIA WITH SPECIFIC REFERENCE TO ADITYA BIRLA SUN LIFE
MUTUAL FUNDS". It has been my privilege to have a project guide who have assisted
me from the commencement of this project. The success of this project is a result of sheer
hard work, and determination put in by me with the help of my project guide.
I hereby take this opportunity to add a special note of thanks Dr. Babita Yadav, who
undertook to act as my mentor despite his many other professional commitments. His
wisdom, knowledge, and commitment to the highest standards inspired and motivated me.
Without his insight, support, and energy, this project wouldn't have kick -started, and
neither would have reached fruitfulness. I also feel the heartiest sense of obligation to all
the staff members & seniors present there, who helped me in this internship. The project
is dedicated to all those people who helped me while doing this project.
(iv)
PREFACE
This report delves into the dynamic and rapidly growing mutual fund industry in India,
with a specific focus on Aditya Birla Sun Life Mutual Funds. The study explores the
fundamental workings of mutual funds, their benefits and challenges, and their role in
shaping investment habits in India. As a significant component of the financia l ecosystem,
mutual funds have gained traction among retail and institutional investors alike, owing to
their flexibility, professional management, and potential for wealth creation.
The purpose of this report is to provide a comprehensive understanding of mutual funds,
their evolution in India, and their current market landscape. It aims to highlight key
aspects, including the structure of mutual funds, regulatory frameworks, investme nt
processes, and challenges faced by industry. A special emphasis has been placed on the
role of Aditya Birla Sun Life Mutual Funds in contributing to this growth through their
diverse product offerings and investor-focused strategies.
This study has been meticulously crafted to serve as an informative resource for financial
enthusiasts, researchers, and prospective investors. By combining data, analysis, and
insights, it aims to enhance awareness about mutual funds and their potential t o foster
financial inclusion and economic growth in India. Through this endeavor, the report
aspires to empower readers to make informed investment decisions and contribute to the
mutual fund industry's journey toward greater milestones.
Harsh Vardhan Jain

BBA Hons. 5 th Semester (Finance)
Y22180517
(v)
INDEX
Declaration ……………………………………………...….…………….....………………….. i
Certificate by the Company.………….………………….………………......………………... ii
Certificate...........................……..……………………………….………....…….....….…… iii
Acknowledgment……………...…………………….……...………………...….………......... iv
Preface……………….......……………………………...….……………...……..……………...v
Ch. Title Page No.

1. Introduction 1-6
1.1 Mutual Funds in India
1.2 Objectives of Mutual Fund
1.3 Advantages and Disadvantages of Mutual Funds
1.4 Types of Mutual Funds
1.5 Opportunities for Mutual Fund Industry in India
1.6 Challenges for Mutual Fund Industry in India
2. Review Literature 7-8
3. Company Profile: Aditya Birla Sunlife Mutual Funds 9-25
3.1 Introduction
3.2 Vision and Values
3.3 Types of Funds
3.4 Popular Funds
3.5 Top Performing Funds
3.6 Competitive Landscape
4. Research Methodology 26-27
4.1 Objectives of the study
4.2 Research Design
4.3 Need for and Importance of the study
4.4 Data Collection
4.5 Scope of the study
4.6 Limitations of the study
5. Understanding Mutual Funds in India: Operations and Insights 28-35
5.1 How Mutual Funds Works?
5.2 Structure of Mutual Funds
5.3 SEBI and its Role in Mutual Funds
5.4 Association of Mutual Funds in India (AMFI)
5.5 Why Do People Buy Mutual Funds?
5.6 Documents Required to Invest in Mutual Funds
5.7 Ways of Investing in Mutual Funds
5.8 Risks of Mutual Funds
5.9 Taxation of Mutual Funds
6. Data Interpretation 36-38
7. Major Findings and Suggestions 39-40
8. Conclusion 41
9. Bibliography and References 42
CHAPTER 1
INTRODUCTION
A mutual fund is an investment vehicle that pools money from several investors to invest in
a mix of assets like stocks, bonds, government securities, and even gold. Mutual funds allow
investors to achieve portfolio diversification and professional management, with returns and
risks based on the performance of the fund’s investments.
The funds are managed by financial experts called fund managers. These professionals have
the skills to analyze and make investment decisions. To manage the fund, the AMC charges a
fee, known as the expense ratio. The gains generated from this fund investm ent are distributed
proportionately amongst the investors after deducting applicable expenses, by calculating the
Net Asset Value.
1.1 MUTUAL FUNDS IN INDIA

The first introduction of a mutual fund in India occurred in 1963, when the Government of
India launched the Unit Trust of India (UTI). Mutual funds are broadly categorized into three
segments: equity funds, hybrid funds, and debt funds.
The first introduction of a mutual fund in India occurred in 1963, when the Government of
India launched the Unit Trust of India (UTI). Mutual funds are broadly categorised into three
segments: equity funds, hybrid funds, and debt funds.
MUTUAL FUND STATISTICS

Indian Mutual Fund Industry’s Average Assets Under Management (AAUM) stood at
₹ 66.04 Lakh Crore (INR 66.04 trillion).
• Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the
month of August 2024 stood at ₹ 66,04,057 crore.
• Assets Under Management (AUM) of Indian Mutual Fund Industry as on August 31, 2024,
stood at ₹ 66,70,305 crore.
• The AUM of the Indian MF Industry has grown from ₹10.13 trillion as on August 31,
2014, to ₹66.70 trillion as on August 31, 2024, more than 6-fold increase in a span of 10
years.
• The Industry’s AUM had crossed the milestone of ₹10 Trillion (₹10 Lakh Crore) for the
first time in May 2014 and in a short span of about three years, the AUM size had increased
more than two folds and crossed ₹ 20 trillion (₹20 Lakh Crore) for the first time in August
2017. The AUM size crossed ₹ 30 trillion (₹30 Lakh Crore) for the first time in November
2020. The Industry AUM stood at ₹66.70 Trillion (₹ 66.70 Lakh Crore) as on August 31,
2024.
The mutual fund industry has crossed a milestone of 10 crore folios during the month of May
2021.
The total number of accounts (or folios as per mutual fund parlance) as on August 31, 2024,
stood at 20.45 crore (204.5 million), while the number of folios under Equity, Hybrid and
Solution Oriented Schemes, wherein the maximum investment is from retail s egment stood at
about 16.35 crore (163.5 million).
Growth of AUM of Indian mutual fund industry in last 5 years
ADITYA BIRLA CAPITAL |1

Despite a worldwide slowdown of the financial markets in the past five years that were marked
by COVID19 pandemic and the turbulence and wars in Europe and Middle East, the Indian
mutual fund industry has shown incredible resilience and significant growth. The mf industry
AUM doubled in the past five years as it grew from Rs. 22.26 lakh crore in 2019 -20 to Rs.
54.1 lakh crore in 2023-24.
The growth of Indian mutual fund industry can be assessed by the mutual fund AUM at the
end of each of the past five financial years as recorded here:
Rs. 22.26 lakh crore in 2019-20
Mutual fund category breakup

• AUM of Equity funds – ₹20.33 lakh crore (US$240 billion) (November 2023)
• AUM of Hybrid funds – ₹6.90 lakh crore (US$83 billion) (January 2024)
• AUM of Debt funds – ₹11.97 trillion (US$140 billion) (March 2020)
TOP ASSET MANAGEMENT COMPANIES IN

INDIA
S. No. AMC Assets Managed (as on 31.3.2024)
1. SBI Mutual Fund ₹ 919,519.99 crores
2. ICICI Prudential Mutual Fund ₹ 716,867.52 crores
3. HDFC Mutual Fund ₹ 614,665.43 crores
4. Nippon India Mutual Fund ₹ 438,276.85 crores
5. Kotak Mahindra Mutual Fund ₹ 381,239.57 crores
6. Aditya Birla Sun Life Mutual Fund ₹ 353,517.69 crores
7. UTI Mutual Fund ₹ 286,593.27 crores
8. Axis Mutual Fund ₹ 266,826.23 crores
9. Mirae Asset Mutual Fund ₹ 1,73,787 crores
10. DSP Mutual Fund ₹ 138,986.33 crores
1.2 OBJECTIVES OF MUTUAL FUND

Mutual funds seek to fulfil the following objectives for their unitholders:
• Diversification: It is usually advised not to put all your eggs in one basket. Doing so can
disproportionately increase your risk. Mutual funds are inherently diversified. They
diversify across securities, assets, and even geographies. Hence, they help lower the risk.

• Capital protection: Some mutual funds, such as money-market funds and liquid funds,
aim to protect your capital. However, while they are relatively safer, they also have lower
returns.
• Capital growth: Certain mutual funds, such as equity funds, focus on growth to protect
your investment against inflation. These funds invest in stocks and have higher returns but
also come with higher risks.
• Saving tax: A certain class of mutual funds, called equity-linked savings schemes (ELSS)
or tax-saving funds, also provide income-tax deductions up to Rs 1.5 lakh in a financial
year in the old income-tax regime.
1.3 ADVANTAGES OF MUTUAL FUNDS

• Professional Management: One of the top advantages of mutual fund investment is the
expertise that comes with it. Funds are managed by professionals who analyse market
conditions and individual securities to make informed decisions.
• Diversification: Mutual funds invest in a range of securities, spreading out the risk. These
benefits of mutual funds mean that if one security underperforms, its impact is cushioned
by the performance of other securities, minimising potential losses.
• Affordability: Mutual fund advantages also include economies of scale. When purchasing
large volumes of securities, transaction costs are spread out, reducing the cost per
individual investor.
• Liquidity: With most mutual funds, investors can redeem their shares any day the market
is open, providing easy access to cash.
• Flexibility: Through features like Systematic Investment Plans (SIPs) and Systematic
Withdrawal Plans (SWPs), mutual funds offer great flexibility in investment and
redemption.
• Transparency: Mutual funds are regulated by governing bodies, ensuring transparency.
They are required to publish their portfolio regularly, allowing investors to know where
their money is invested.
DISADVANTAGES OF MUTUAL FUNDS

• Costs: While mutual funds provide the benefit of professional management, they also
come with associated fees and expenses. These can include management fees,
administrative charges, and other expenses, which, over time, can eat into potential
returns.
• No Control for Investors: Investors in mutual funds trust their money with the fund
managers, giving up control over where their money is invested. For those who like to be
hands-on, this can be a drawback.
• Potential for Over-diversification: While diversification reduces risk, overdoing it might
dilute potential returns. If a fund spreads its investments too thin, it might not benefit
significantly from a particular security’s stellar performance.
• Fluctuating Returns: Mutual funds’ returns can swing widely, particularly over brief
periods. Being exposed to market uncertainties means the invested capital can either rise
or fall depending on the market’s behaviour.

1.4 TYPES OF MUTUAL FUNDS
There are multiple ways in which mutual funds can be categorized, for example, the way they
are structured, the kind of securities they hold, their investment strategies, etc. The Securities
and Exchange Board of India (SEBI) has classified mutual funds based on where they invest,
some of which we have listed below:
Based on the structure:
1. Open-ended funds are mutual funds that allow you to invest and redeem investments at
any time, i.e. they are perpetual in nature. They are liquid in nature and don’t come with
a specific investment period.
2. Close-ended schemes have a fixed maturity date. You can only invest at the time of the
new fund offer and redemption can only be done on maturity. You cannot purchase the
units of a close-ended mutual fund whenever you please.
3. Interval Mutual Funds allow you to invest or redeem at intervals. These are essentially
close-ended funds with windows in between where you can enter or exit the fund.
Based on asset classes:

1. Equity Mutual Funds invest at least 65% of their assets in stocks of companies listed on
the stock exchange. They are more suitable as long-term investments (> 5 years) as stocks
can be volatile in the short term. They have the potential to offer higher returns but also
come with high risk.
2. Debt Mutual Funds primarily invest in fixed-income instruments like Government
securities, corporate bonds, and other debt instruments. They are not affected by stock
market volatility and hence, can offer more stable returns compared to equity mutual
funds. The types of debt mutual funds are differentiated on the basis of the maturity period
of the securities they hold.
3. Hybrid Mutual Funds invest in both equity and debt in varying proportions depending
on the investment objective of the fund. Thus, hybrid funds give you diversified exposure
to various asset classes. Hybrid funds are categorized on the basis of their allocation to
equity and debt.
Based on Investment Objectives:

1. ELSS (Equity Linked Saving Scheme) Funds offer equity market returns and tax
savings. They have a 3-year lock-in period and are eligible for tax deduction under Section
80C up to Rs 1.5 lakh.
2. Liquid Funds are debt funds focused on providing the safety of principal and steady
returns. They invest in short-term debt securities with a maturity of up to 90 days. These
funds are suitable for short-term investors seeking flexibility and better returns than bank
deposits.
3. Capital Protection Funds focus on protecting the principal amount invested. They invest
mostly in debt and a small portion in equities, providing protection against market
downturns while allowing for capital appreciation.
4. Fixed-Maturity Plans come with a fixed lock-in period and invest in debt securities that
mature with the scheme’s tenure. They are closed-ended funds suitable for short-term
investors seeking lower risk.

5. Pension Funds or retirement funds, come with a lock-in period of at least five years or
until retirement. They aim to build a substantial corpus for retirement by investing in
stocks and debt instruments.
6. Income Funds primarily invest in debt securities like corporate and government bonds.
They aim to maximize wealth through capital appreciation and regular dividend payments.
7. Growth Funds invest in companies with high growth potential, aiming for maximum
capital appreciation. They carry high risk and are suited for aggressive investors.
8. Money Market Funds invest in short-term debt securities and are considered low risk.
They are ideal for investors looking to park surplus funds for a short duration with higher
returns than traditional FDs.
9. Fund of Funds (FoF) invests in other mutual fund schemes rather than directly in equities
or debts. They offer diversification across different categories by investing in one scheme.
10. Gold Funds invest in gold ETFs, replicating the performance of gold prices in India. They
provide a hedge against inflation and are a good addition to a diversified portfolio.
Based on Portfolio Management:

1. Active Mutual Funds are where the fund manager continuously seeks better returns
through buying and selling stocks.
2. Passive Mutual Funds track a specific index, reflecting the index composition in their
portfolio.
Based on Specialty:
1. Sectoral Funds invest at least 80% of their corpus in a particular sector of the economy,
like pharma or technology.
2. Index Funds replicate the performance of an underlying index, holding the same shares
in the same proportion.
3. Real Estate Funds invest in companies from the real estate sector, focusing on equities
of real estate developers.
4. Asset Allocation Funds also known as Balanced Advantage Funds, these invest in a mix
of stocks and debt instruments, dynamically managed based on market conditions.
5. International Funds invest in companies listed on foreign stock exchanges, offering
geographical diversification.
6. Global Funds invest in companies from all over the world, unlike international funds
which exclude the investor’s home country.
7. Exchange-traded funds (ETFs) can be traded on the stock exchange in real time like
stocks. They typically track an index or a commodity like gold.
Based on Risk Appetite:

1. Low-Risk Funds invest in high-quality bonds and are suitable for gradual growth with
minimal risk, such as liquid funds and ultra-short duration funds.
2. Medium-Risk Funds strike a balance between risk and return, often including hybrid
schemes with multiple asset classes.
3. High-Risk Funds can be extremely volatile, and suitable for investors willing to take
higher risks, like pure equity funds.

1.5 OPPORTUNITIES FOR MUTUAL FUND
INDUSTRY IN INDIA
• Increasing Inclination Towards Mutual Funds: As of 2023, only 8% of the Indian
population invests in mutual funds, a relatively low figure compared to developed
countries. Despite this, there are 74.4 million Systematic Investment Plan (SIP) accounts,
with SIP contributions rising nearly 25% in 2022-23. This growing interest presents a
significant opportunity for the industry to capitalize on by offering innovative products
and catering to diverse investment goals.
• Rising Number of Millennials and Youth: The mutual fund industry can benefit greatly
from India's growing population of millennials and youth. This demographic is tech -savvy
and has increasing disposable incomes, making them potential investors in mutual funds.
• Adoption of Technology: Technology is set to be a major enabler for the mutual fund
industry. Embracing fintech solutions can enhance accessibility, convenience, and
efficiency, reshaping the industry's landscape and making it more inclusive. Technologies
like mobile apps, robo-advisors, and data analytics can significantly improve investor
experience.
• Expansion to Untapped Markets: While urban centres have seen significant
participation, there's a vast opportunity to expand mutual funds' reach to smaller towns
and rural areas. The industry can tap into this untapped market by building a robust
distribution network and tailoring strategies to meet different regions' unique needs and
preferences.
1.6 CHALLENGES FOR MUTUAL FUND

INDUSTRY IN INDIA
• Perception of Risk: Mutual funds are often perceived as high-risk investments, deterring
potential investors who favor safer options like fixed deposits and gold. Educating the
public about the risk-return spectrum, benefits of diversification, and tailored schemes can
help shift this perception. Transparency about historical returns, risk management, and
long-term benefits is essential to build trust.
• Expanding to Tier 2 and 3 Cities: Limited financial literacy and access to financial
services in smaller towns and villages present significant barriers. Localized educational
initiatives, regional language campaigns, and products tailored to the financial needs of
these populations are critical for tapping into this untapped market.
• Enhancing Investor Confidence: Building trust requires high standards of transparency,
governance, and customer service. Regular updates on fund performance, personalized
advice, prompt grievance redressal, and success stories can foster confidence and
strengthen investor relationships.
• Simplified Operational Processes: Streamlining processes like Know Your Customer
(KYC) and integrating Aadhar with PAN can make mutual fund investments more
accessible and user-friendly, reducing entry barriers for new investors.
• Regulatory Challenges: Adapting to changes in taxation rules, compliance requirements,
and investment guidelines poses challenges for fund managers. Staying abreast of
regulatory changes is crucial for maintaining operational efficiency and investor
confidence.

CHAPTER 2
LITERATURE REVIEW
1. The paper titled "A Study on the Growth and Pattern of Indian Mutual Fund Industry" by
Das and Shil explores the development, trends, and performance of mutual funds in India.
It analyzes the evolution of the industry, patterns in Assets Under Management (AUM),
and factors influencing investor preferences. The study also examines challenges faced by
industry and highlights opportunities for growth, particularly through innovation and
enhanced financial literacy (Das & Shil, 2017)
2. The paper "Performance of Mutual Funds in India" by Bilal Pandow evaluates the
performance of Indian mutual funds using various statistical tools to analyze returns, risk,
and fund manager efficiency. Drawing from a comprehensive dataset of multiple schemes
across time periods, the study finds significant variation in fund performanc e, with some
outperforming market benchmarks while others lag behind. It highlights the critical role
of fund manager expertise and market conditions in influencing outcomes, offering
valuable insights for investors and policymakers in making informed deci sions about
mutual fund investments (Pandow, 2017).
3. The “The Management of Mutual Funds” by Sekhar discusses topics in financial analysis,
specifically focusing on mutual fund performance and investment evaluation strategies. It
examines different financial metrics used to measure risk and return, with an emphasis on
their application in assessing mutual fund performance. The study contributes to the
broader understanding of investment strategies and fund management, highlighting key
challenges and considerations for investors (Sekhar, 2017).
4. The study titled "Performance Evaluation of Mutual Funds: A Study on Selected Equity
Mutual Funds in India" by Dr. J. Murthy, Dr. M. S. R. Anjaneyulu, Mrs. Himresha Bhatt,
and Mr. Dadi Srimanth Kumar evaluates the performance of Indian mutual funds from
April 2019 to March 2022. Utilizing daily closing Net Asset Values (NAVs) of various
schemes, the researchers calculated returns and employed the NSE Nifty as the market
benchmark. The evaluation incorporated risk and return analysis, standard deviation,
Sharpe Index, Treynor Index, and ANOVA. Findings indicate that most mutual funds
yielded positive returns during the study period, reinforcing mutual funds as a favourable
investment avenue in the capital market ( Murthy et al., 2022).
5. The research “Growth and performance of Indian mutual fund industry during past
decades” by V Ramanujam, A Bhuvaneswari discusses the growth and performance of
Microfinance Institutions (MFIs), focusing on their financial sustainability, impact on
poverty alleviation, and challenges in scaling operations. It evaluates the efficiency of
MFIs in delivering financial services to underserved populations and examines various
metrics to assess their performance (Ramanujam & Bhuvaneswari, 2015).
6. The study titled "Comparative Study of Mutual Funds of Selected Indian Companies" by
Adhav & Chauhan evaluates the performance of mutual fund schemes (equity, debt, and
hybrid) of 15 Indian companies from 2009-10 to 2013-14. The research analyzes 390
schemes using metrics like return, risk (standard deviation), and Sharpe ratio, comparing
them with their benchmarks. The findings indicate that sector funds performed best among
equity schemes, while ultra-short-term debt funds outperformed other debt funds. The
study concludes that mutual funds generally performed better than their respective
benchmarks (Adhav & Chauhan, 2015).
7. The study “Performance evaluation of mutual funds in India” discusses the necessity of
innovation in the financial sector, focusing on the role of banking in providing growth and

development. It highlights how banks foster societal progress through investments and
supporting market needs. The study also stresses the importance of measuring investment
performance and assessing risk for long-term profitability (Alagappan, 2019).
8. The article titled "A Study on the Growth and Pattern of Indian Mutual Fund Industry" by
Mahajan and Saxena provides an in-depth analysis of the evolution and trends within
India's mutual fund sector. It examines the industry's growth trajectory, investment
patterns, and the factors influencing these developments. The study also delves into the
challenges faced by the mutual fund industry and explores potential opportunities for
future expansion (Mahajan & Saxena, 2015).
9. The paper "Indian Mutual Fund Industry: An Analysis of Pre-Covid Scenario" by Dr.
Pooja Srivastava examines the performance and trends of India's mutual fund industry
during the two years preceding the COVID-19 pandemic. It highlights the growth in
Quarterly Average Assets Under Management (QAUM), investor behavior patterns, and
demographic insights, while discussing regulatory developments and the introduction of
new financial products. The study provides a comprehensive overview of the industry's
growth trajectory, challenges, and market dynamics during this period, serving as a
benchmark to evaluate the pandemic's impact on the sector (Srivastava, 2022).

CHAPTER 3
COMPANY PROFILE: ADITYA BIRLA
SUN LIFE MUTUAL FUND
AUM- ₹3,53,517 Cr No. of schemes- 94 AMC Age- 29 yrs
3.1 INTRODUCTION
Aditya Birla Sun Life Asset Management Company Ltd. (ABSLAMC), formerly known
as Birla Sun Life Asset Management Company Limited, is an investment managing company
registered under the Securities and Exchange Board of India. It is a joint venture
between Aditya Birla Capital of India and Sun Life Financial Inc. of Canada. The company
offers sector-specific equity schemes, fund of fund schemes, hybrid and monthly income
funds, debt and treasury products and offshore funds.
Aditya Birla Capital Limited (“ABCL”) is the holding company for the financial services
businesses of the Aditya Birla Group.
As of June 30, 2024, Aditya Birla Capital Limited manages aggregate assets under
management of Rs. 4.63 Lakh Crore with a consolidated lending book of Rs 1.27 Lakh Crore
through its subsidiaries/JVs.
Aditya Birla Capital Limited is a part of the US$66 billion global conglomerate Aditya Birla
Group, which is in the league of Fortune 500. Anchored by an extraordinary force of over
187,000 employees belonging to 100 nationalities, the Group is built on a strong foundation
of stakeholder value creation.
Aditya Birla Sun Life AMC offers 94 mutual fund schemes.
• This includes 43 equity schemes, 34 debt schemes, 13 hybrid schemes, and 4 others
(including commodity schemes).
• The top schemes in terms of AUM are ABSL Liquid Fund, ABSL Frontline Equity Fund,
and ABSL Money Manager Fund.
History
Aditya Birla Sun Life AMC Limited (ABSLAMC) was incorporated in the year 1994. Aditya
Birla Capital Limited and Sun Life (India) AMC Investments Inc. are the promoters and major
shareholders of the Company.
ABSLAMC is primarily the investment manager of Aditya Birla Sun Life Mutual Fund, a
registered trust under the Indian Trusts Act, 1882. ABSLAMC also operates multiple alternate
strategies including Portfolio Management Services, Real Estate Investments and Alternative
Investment Funds. ABSLAMC is one of the leading asset managers in India, servicing around

9.4 million investor folios with a pan India presence across 300 plus locations and overall,
AUM of Rs. 3,676 billion for the quarter ending June 30, 2024, under its suite of Mutual Fund
(excluding domestic FoFs), Portfolio Management Services, Alternative Investment Funds,
Offshore and Real Estate offerings.
Aditya Birla Sun Life Mutual Fund - Total AAUM, Debt AAUM and Equity AAUM
and rate of growth over the last three years
Financial Debt AAUM % Equity % Total AAUM %

Year (Rs. In change AAUM (Rs. change (Rs. In change
crores) In crores) crores)
2021-2022 1,77,086.50 10.76 1,16,191.70 36.45 2,93,278.20 19.69
2022-2023 1,61,275.53 -8.93 1,19,969.59 3.25 2,81,245.13 -4.10
2023-2024 1,74,151.32 7.98 1,39,636.94 16.39 3,13,788.26 11.57
Interpretation: The figures show the performance of Aditya Birla Sun Life AMC’s Assets
Under Management (AUM) across debt, equity, and total categories over three financial years.
Debt AUM showed recovery in 2023-2024 after a decline in 2022-2023, reflecting shifting
investor preferences in response to market conditions. Equity AUM consistently grew, with
strong performance in 2021-2022 and a notable rebound in 2023-2024, driven by bullish
market trends. Overall, total AUM demonstrated resilience, with an 1 1.57% growth in 2023-
2024, showcasing the AMC's ability to adapt to changing market dynamics while maintaining
investor confidence.
About Sun Life
Sun Life is a leading international financial services organization providing asset

management, wealth, insurance and health solutions to individual and institutional Clients.
Sun Life has operations in a number of markets worldwide, including Canada, the United
States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India,
China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30, 2024, Sun Life
had total assets under management of $1.46 trillion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE)
stock exchanges under the ticker symbol SLF.
Aditya Birla Sun Life Asset Management Company Limited

Company type Public
Founded 1994
Headquarters Mumbai, Maharashtra, India
Key people A. Balasubramanian (CEO)
ADITYA BIRLA CAPITAL | 10

Services • Investment management
• Asset management
• Risk management
• Mutual funds
• Exchange-traded funds
Revenue ₹1,641 crore (US$200 million) (2024)
Owners Aditya Birla Capital (45%), Sun Life Financial (30%)
3.3 VISION AND VALUES

"To be a leader and role model in a broad-based and integrated financial services
business."
The 4 pillars of our vision that will help us achieve it are:
• To be a leader – we are committed to being a leader in all facets of our businesses, rather
than being just another participant in this race.
• To be a role model – we will not become leaders by cutting corners or making
compromises. Whatever we do, we will strive to be the best in class. And if we are the
best, then our customer will have no reason to go elsewhere – therefore our leadership is
assured, on pure merit.
• To be a broad-based player – we are committed to meeting all the felt and unfelt needs
of our target customer. And thereby, we can retain him or her across their needs and life -
stages.
• We aim to be an integrated player –we believe that this approach gives us a competitive
edge through sharing of best practices, deriving cross – business synergies & providing
talent pool with world of opportunity to grow.
3.4 TYPES OF FUNDS

Equity Funds:
• Aditya Birla Sun Life Frontline Equity Fund: A diversified equity fund investing across
sectors and market capitalizations, primarily in large-cap stocks.
• Aditya Birla Sun Life Tax Relief 96: An ELSS (Equity Linked Savings Scheme) offering
tax benefits under Section 80C with a lock-in period of 3 years.
• Aditya Birla Sun Life Digital India Fund: Invests primarily in companies in the
technology sector.
• Aditya Birla Sun Life Small Cap Fund: Invests primarily in small-cap companies,
aiming for high growth potential.
Debt Funds:
• Aditya Birla Sun Life Corporate Bond Fund: Focuses on high-quality corporate bonds
with an aim to generate regular income.

• Aditya Birla Sun Life Short Term Fund: Targets short-term income by investing in a
diversified portfolio of debt and money market instruments.
• Aditya Birla Sun Life Liquid Fund: Provides high liquidity and safety by investing in
money market instruments with a very short duration.
• Aditya Birla Sun Life Medium Term Plan: Aims to generate income and capital
appreciation by investing in medium-duration debt securities.
Hybrid Funds:
• Aditya Birla Sun Life Equity Hybrid '95 Fund: A balanced fund investing in both
equities and debt instruments to provide capital growth and income.
• Aditya Birla Sun Life Arbitrage Fund: Seeks to generate income through arbitrage
opportunities between cash and derivative markets.
• Aditya Birla Sun Life Balanced Advantage Fund: Dynamically manages its allocation
between equity and debt based on market conditions.
• Aditya Birla Sun Life Regular Savings Fund: Focuses on generating regular income
through a mix of debt and equity investments.
Index Funds and ETFs:

• Aditya Birla Sun Life Nifty 50 Index Fund: Passively managed fund that mirrors the
composition of the Nifty 50 Index.
• Aditya Birla Sun Life Gold ETF: Tracks the price of gold and allows investors to invest
in gold in an electronic format.
Solution-Oriented Funds:
• Aditya Birla Sun Life Retirement Fund: Aimed at providing investors with a retirement
planning solution through a mix of equity and debt investments.
• Aditya Birla Sun Life Children's Future Fund: Designed to help investors build a
corpus for their child's future education and other needs.
Sectoral/Thematic Funds:
• Aditya Birla Sun Life Banking & Financial Services Fund: Invests primarily in
companies in the banking and financial services sector.
• Aditya Birla Sun Life Pharma & Healthcare Fund: Focuses on investments in the
pharmaceutical and healthcare sectors.
• Aditya Birla Sun Life Commodities Fund: Aims to provide returns by investing in
commodity-related sectors.
International Funds
• Aditya Birla Sun Life Global Emerging Opportunities Fund: Invests in equity and
equity-related securities of companies in emerging markets around the world.
• Aditya Birla Sun Life Global Excellence Equity Fund: Focuses on investing in leading
global companies across various sectors.

3.5 POPULAR FUNDS
The BEST ADITYA BIRLA SUN LIFE MUTUAL FUNDS (Assets Under Management or
AUM). Larger AUM often indicates investor confidence and the popularity of the fund:
1. Aditya Birla Sun Life Liquid Fund Direct Growth

Debt Liquid Fund Moderate Risk
AUM: ₹ 44,520.60 Crore NAV: ₹ 409.85
(as of November 30, 2024) (as of 15 December 2024)
CAGR: 6.92% Rating: 5
Provides high liquidity by investing in money market instruments with a very short duration,
suitable for parking short-term funds.
PORTFOLIO (Major Holdings)

Retail % of Net Assets
Punjab National Bank 3.35 %
IIFL Finance Ltd. 3.00 %
State Bank of India 2.80 %
Reserve Bank of India 2.68 %
SECTOR HOLDINGS

2. Aditya Birla Sun Life Frontline Equity Fund Direct Growth
Equity Large Cap Fund Very High Risk
AUM: ₹ 29323.25 Crore NAV: ₹ 574.36

A diversified equity fund that invests in large-cap stocks across various sectors, aiming for
long-term capital growth.

HDFC Bank Ltd. 7.77 %
ICICI Bank Ltd. 7.70 %
Infosys Ltd. 6.36 %
Larsen & Toubro Ltd. 4.95 %
Reliance Industries Ltd. 4.75 %
Housing Development Finance Corporation Ltd. 3.60 %
SECTOR HOLDINGS

3. Aditya Birla Sun Life Money Manager Fund Direct Growth
Debt Money Market Fund Moderate Risk
AUM: ₹ 24,594.62 Crore NAV: ₹ 358.95

ABSL Money Manager Fund is an open-ended debt scheme investing in money market
instruments. A relatively low-interest rate risk and moderate credit risk.

State Bank of India 4.03 %
Housing Development Finance Corporation Ltd. 3.33 %
Punjab National Bank 3.15 %
Small Industries Devp. Bank of India Ltd. 2.96 %
Reserve Bank of India 2.47 %
SECTOR HOLDINGS

4. Aditya Birla Sun Life Corporate Bond Fund Direct Growth
Debt Corporate Bond Fund Moderate Risk
AUM: ₹ 23714.74 Crore NAV: ₹ 109.59


GOI 11.26 %
Aditya Birla Sun Life Liquid Fund Direct-Growth 4.47 %
Union Bank of India 3.60 %
Small Industries Devp. Bank of India Ltd. 2.93 %
Bajaj Housing Finance Ltd. 2.35 %
National Bank For Agriculture & Rural Development 2.06 %
SECTOR HOLDINGS

5. Aditya Birla Sun Life Flexi Cap Fund Direct Growth
Equity Large Cap Fund Moderate Risk
AUM: ₹ 22440.17 Crore NAV: ₹ 1964.45


ICICI Bank Ltd. 7.70 %
Infosys Ltd. 5.38 %
HDFC Bank Ltd. 4.03 %
Kotak Mahindra Bank Ltd. 3.47 %
SECTOR HOLDINGS

Why AUM Matters:
• Liquidity: Larger funds tend to have higher liquidity, which can make it easier for
investors to enter or exit the fund without impacting the fund's performance significantly.
• Stability: Funds with larger AUM may have more stability due to the diverse and larger
pool of investors and assets.
• Economies of Scale: Larger funds can benefit from economies of scale, potentially leading
to lower expense ratios.
These funds are popular due to their performance, management quality, and the trust they
have garnered from investors over time. As always, it's important to consider your financial
goals, risk appetite, and investment horizon before choosing a fund.
3.6 TOP PERFORMING FUNDS

Following are the Top-performing Aditya Birla Sun Life Mutual Funds based on 5-year
returns. These funds have consistently delivered strong performance over the past five years:
1. Aditya Birla Sun Life Infrastructure Fund Direct Growth

Equity Sectoral Fund Very High Risk

The Scheme seeks to provide medium to long-term capital appreciation, by investing
predominantly in a diversified portfolio of equity and equity related securities of companies
that are participating in the growth and development of Infrastructure in India .
Annualised returns 1Y 3Y 5Y All
Fund returns 35.1% 27.7% 28.7% 17.2%
Category average 37.2% 27.9% 28.5% NA

Rank with in category 14 14 14 NA
Interpretation: 5Y annualised returns higher than category average by 0.19%, but

consistently lower annualised returns than category average for the past 1Y and 3Y.
2. Aditya Birla Sun Life Pharma & Healthcare Fund Direct Growth
Equity Sectoral Fund High Risk
The scheme provides long term capital appreciation by investing in equity/equity related
instruments of the companies in the Pharmaceuticals, Healthcare and Allied sectors in India.
Fund returns 38.3% 19.9% 25.8% 25.0%
Rank with in category 8 7 6 NA
Interpretation: Lower expense ratio: 0.93%, but consistently lower annualised returns than
category average for the past 1Y, 3Y and 5Y and low rating i.e., 2.
3. Aditya Birla Sun Life Midcap Fund Direct Growth

Equity Mid Cap Fund Very High Risk

The scheme aims at long-term growth of capital at controlled level of risk by investing
primarily in mid-cap stocks, to generate returns higher than a fund focused on large and liquid
stocks.
Fund returns 32.6% 19.4% 25.1% 18.1%
Rank within category 23 24 22 NA
Interpretation: Lower expense ratio: 1.07%, but consistently lower annualised returns than
category average for the past 1Y, 3Y, 5Y and 10Y.
4. Aditya Birla Sun Life Dividend Yield Fund Direct Growth

Equity Thematic Fund Very High Risk
CAGR: 15.13% Rating: NA

The scheme aims to generate returns by investing in high dividend paying companies. It would
aim to build a portfolio that provides high dividend yield, substantial capital protection and a
strong possibility of capital gains.

Fund returns 31.0% 23.9% 25.3% 15.1%
Interpretation: Consistently higher annualised returns than category average for the past 1Y,
3Y and 5Y.
5. Aditya Birla Sun Life Small Cap Fund Direct Growth

Equity Small Cap Fund Very High Risk

The Scheme seeks to generate consistent long-term capital appreciation by investing
predominantly in equity and equity related securities of small cap companies.
Fund returns 29.4% 19.2% 26.2% 18.6%

Interpretation: Consistently lower annualised returns than category average for the past 1Y,
3Y, 5Y and 10Y.

Considerations:
• Risk Profile: High returns often come with higher risks. Ensure that the fund's risk level
aligns with your investment goals and risk tolerance.
• Investment Horizon: These funds are generally suited for investors with a longer
investment horizon (5+ years) to ride out market volatility.
• Diversification: Investing in a mix of funds across different categories (large -cap, small-
cap, sectoral, etc.) can help manage risk.
As always, past performance is not indicative of future results, and it is advisable to consult
with a financial advisor to align your investments with your financial goals.
3.7 COMPETITIVE LANDSCAPE
ADITYA BIRLA SUN LIFE AMC

Online Mutual Fund Investment in India
1994 • Mumbai (India) • Unfunded
Funding of competitors
Rank Active Competitors
of Aditya Birla Sun Life
6 th 44 AMC
Among 44 active 1 Funded / 10 Exited / 5 $35.2M
Competitors Public / 5 Acquired
2 Funding Rounds

LEADING ASSET MANAGEMENT COMPANIES IN
INDIA:
1. SBI Funds Management Ltd

Provider of mutual funds management and advisory services
Founded Year: 1987 Stage: Public

Location: Mumbai (India) AUM: ₹ 10,81,854.42 Cr
(As on Jul 2024)
No. of schemes: 488
Provider of mutual funds management and advisory services. It offers various mutual fund
schemes and investment options.
As a joint venture between the State Bank of India (SBI) and the AMUNDI, the SBI Mutual
Fund was founded in 1987. The fund house uses SBI's extensive distribution network and
AMUNDI's fund management competence to provide top-tier service and solutions to all its
investors.
The goal of SBI Mutual Fund is to become the most dependable and admired asset manager.
The fund house's primary goal is to beat the benchmark through actively managing client
portfolios and research-supported investment in Indian stocks.
Since its launch, it has made its place as a Top AMC in India and is also known as the largest
mutual fund in India.
2. ICICI Prudential Asset Management Company Limited

Real estate fund focused on multiple strategies

(As on Jul 2024)
No. of schemes: 755
In 1998, ICICI Bank and Prudential Plc formed a joint venture (JV) to create ICICI Prudential
Mutual Fund. The fund house takes advantage of its parent companies' and sponsors' extensive
financial knowledge and experience. It is one of the oldest and most profitable Mutual Funds.
ICICI Prudential is widely known as the best AMC in India.
To become one of the top AMCs in India, it has leveraged a fantastic combination of investing
competence, resource capacity, and process focus.
It provides a wide selection of mutual fund schemes in the equity, debt, and hybrid categories,
along with exchange-traded funds and solution-oriented schemes.

3. HDFC Asset Management Co Ltd
Provider of mutual fund services focused on investment management

(As on Jul 2024)
No. of schemes: 410
Investors: KKR, Brand Capital and 1 Other
A joint venture between the Housing Development Finance Corporation Limited (HDFC) and
abrdn plc created the HDFC Mutual Fund in 1999 (SLI).
With the aid of specific and easily accessible investment products, methodical transactions,
remarkably steady administration, and a robust digital business presence, the fund house has
become one of India's largest and most lucrative mutual fund managers.
Along with fund of fund schemes and exchange-traded funds, it provides a full range of mutual
fund schemes in the equity, debt, and hybrid categories.
The company aims to offer successful investment options so investors can invest without being
concerned about market volatility. It is also known as the top Asset Management Company in
India.
4. Nippon Life India Asset Management Limited

Private equity firm and fund of funds focused on multiple sectors
Founded Year: 1995 Stage: Unfunded

Location: India AUM: ₹ 5,50,787.80 Cr
(As on Jul 2024)
No. of schemes: 761
In 1995, Nippon India Mutual Fund was founded to introduce fund schemes that would allow
investors to invest in a variety. It is India's largest and fastest-growing AMCs in terms of AUM.
The fund house provides a wide selection of exchange-traded funds, retirement funds, and
mutual fund schemes in the equities, debt, and balanced categories.
With a focus on customer service and a culture of good corporate governance, it strives to
become a respected wealth generator on a worldwide scale.
Some of its endeavours to provide value to investors include innovative product offers and
customer service programs. As a result, Nippon India is considered the best asset management
company in India.

5. Kotak Mahindra Asset Management Co Ltd
Founded Year: 1998 AUM: ₹ 4,79,964.13 Cr

(As on Jul 2024)
No. of schemes: 497
To provide mutual funds that meet the needs of investors with different risk -return profiles,
Kotak Mahindra Mutual Fund was founded in 1998. It started small but has become one of
India's top AMCs.
The fund house has produced many investor folios thanks to an exceptional selection of
investment products across asset classes. Along with fund of fund schemes and exchange -
traded funds, it provides a broad selection of mutual fund schemes in the equity, debt, and
hybrid categories. Moreover, to ensure customer satisfaction, the fund firm works to
consistently outperform the benchmark across all of its products.
In addition, it strives to be an ethical competitor in the Indian mutual fund market. As a result,
it is touted as a critical market member and has been in the Top 10 AMC in India 2024 for the
past many years.
6. UTI Asset Management Co Ltd
Founded Year: 2003 AUM: ₹ 3,15,771.42 Cr

(As on Jul 2024)
No. of schemes: 638
UTI Mutual Fund was founded in 2003 to give investors chances to build wealth via
participation in the capital market. With industry-led best practices, a long-term outlook, and
a robust business strategy, the fund company has emerged as one of India's top AMCs.
In addition to domestic mutual funds, portfolio management services, international business,
retirement solutions, venture funds, and alternative investment funds are among the several
investment options it provides.
The fund house strives to provide best-in-class services focusing on country growth while
continuing to be the most popular mutual fund.

CHAPTER 4
RESEARCH METHODOLOGY
4.1 OBJECTIVE OF THE STUDY:

• Observe the fund management process of Mutual Fund.
• To study leading Mutual Fund companies.
• To study the various Mutual Fund Schemes of Aditya Birla Sun Life Mutual Funds.
• To discuss about the market trends of Mutual Funds Investment.
• To give an idea of the types of schemes available in India.
• To know about the benefits available from Mutual Fund investment.
4.2 RESEARCH DESIGN:

It is a descriptive study done to acquire general information about the Aditya Birla Capitals
particularly Aditya Birla Sun Life Mutual Funds. A descriptive study is one in which
information is collected without changing the environment (i.e., nothing is m anipulated).
4.3 NEED FOR AND IMPORTANCE OF THE

STUDY:
• The main purpose of doing this project was to know about mutual fund and its functioning.
• This study provides the comprehensive overview of Mutual Fund Industry right from its
inception stage, growth and future prospects.
• It also helps in understanding different schemes of Mutual Funds. Because my study
depends upon prominent funds of Aditya Birla Sun life Mutual Funds and their schemes
like equity, debt, hybrid as well as the returns associated with those schemes.
• Providing data-driven insights into fund performance, assisting investors in selecting
funds that align with their goals.
• Ultimately this would help in understanding the benefits of Mutual Funds to investors.
4.4 DATA COLLECTION:

The following study is based on secondary data which is collected from various resources
available online and offline. Potential sources include:
• Official company reports: Annual reports, financial statements, sustainability reports.
• Industry reports and market studies.
• Academic publications and journal articles related to Mahindra automobiles.
• News articles, press releases, and media coverage.
• Government publications and regulatory bodies.

4.5 SCOPE OF THE STUDY
The study aims to provide a comprehensive analysis of mutual funds, focusing on the Aditya
Birla Sun Life Mutual Fund. It examines various schemes, including equity, debt, and hybrid
funds, their performance metrics, and market trends. The scope includes u nderstanding fund
management processes, evaluating returns, and identifying benefits for investors.
Additionally, the study highlights the opportunities for mutual fund growth in India, such as
increasing financial literacy, leveraging technology, and expanding to tier-2 and tier-3 cities.
4.6 LIMITATIONS OF THE STUDY

1. Secondary Data Dependence: The analysis relies on secondary data, which may not
reflect real-time market dynamics.
2. Market Volatility: Results are influenced by market conditions during the study period
and may not be universally applicable.
3. Geographical Focus: The study emphasizes Indian markets, limiting generalizability to
global contexts.
4. Investor Diversity: The varying risk profiles and preferences of individual investors are
not exhaustively addressed.
5. Time Constraints: The study covers a specific timeframe, which might not capture long -
term trends or anomalies.

CHAPTER 5
UNDERSTANDING MUTUAL FUNDS IN
INDIA: OPERATIONS AND INSIGHTS
INTERNSHIP 6-WEEK (45 DAYS) SCHEDULE:
Week 1: Introduction to Mutual Funds
• Day 1-2: Basics of mutual funds: definition, structure, and functioning.
• Day 3: History of mutual funds in India and their growth.
• Day 4-5: Types of mutual funds: equity, debt, hybrid, and others.
• Day 6: Mutual fund advantages and disadvantages.
• Day 7: Regulatory framework: SEBI and AMFI roles.
Week 2: Mutual Fund Investment Process

• Day 1-2: How mutual funds work and key concepts (NAV, AUM).
• Day 3: Investment methods: SIPs, lump sums, direct vs. regular plans.
• Day 4: Documentation required for investment.
• Day 5-6: Risks in mutual funds: market risk, credit risk, and others.
• Day 7: Taxation of mutual funds (STCG, LTCG, and dividend tax).
Week 3: Mutual Fund Schemes

• Day 1-2: Understanding different schemes: ELSS, liquid funds, and sectoral funds.
• Day 3: Index funds, ETFs, and fund-of-funds.
• Day 4-5: Hybrid funds and their classification.
• Day 6: Evaluating scheme objectives based on investor goals.
• Day 7: Popular mutual fund schemes in India.
Week 4: Performance Metrics and Fund Evaluation

• Day 1-2: Key performance metrics: Sharpe ratio, Treynor ratio, Jensen’s alpha.
• Day 3: Risk-adjusted returns and diversification benefits.
• Day 4: Comparing schemes using benchmark indices.
• Day 5: Analyzing mutual fund reports and performance data.
• Day 6-7: Case studies of top-performing funds in India.
Week 5: Market Trends and Opportunities

• Day 1-2: Current trends in mutual fund investments.

• Day 3: Role of technology in mutual fund accessibility (e.g., robo-advisors).
• Day 4-5: Expanding mutual funds to tier-2 and tier-3 cities.
• Day 6: ESG (Environmental, Social, Governance) funds.
• Day 7: Challenges in the mutual fund industry.
Week 6: Advanced Topics and Review

• Day 1-2: Portfolio management and dynamic allocation strategies.
• Day 3: Mutual funds in global markets vs. Indian markets.
• Day 4: Impact of regulatory changes on mutual funds.
• Day 5: Group discussions or mock presentations on learnings.
• Day 6-7: Final review and self-assessment through quizzes or practice case studies.
5.1 HOW MUTUAL FUNDS WORKS?

A mutual fund pools money from multiple investors to invest in a diversified portfolio of
assets, such as stocks, bonds, or other securities. Following is the step-by-step overview of
how mutual funds work:
1. Pooling Money: Investors buy shares or units of the mutual fund, contributing their money
to the fund. This collective pool of money is managed by professional fund managers.
2. Investment Strategy: The fund manager uses the pooled money to buy a variety of assets
according to the fund’s investment objectives and strategy. For example, a stock fund
might invest in a range of companies, while a bond fund might invest in various
government or corporate bonds.
3. NAV Calculation: The Net Asset Value (NAV) is the value of one share or unit of the
mutual fund. It is calculated by dividing the total value of the fund’s assets minus any
liabilities by the number of outstanding shares or units. NAV changes daily based on the
performance of the fund’s investments.
4. Value Changes: As the prices of the assets within the fund fluctuate, the NAV also
changes. If the investments perform well, the NAV goes up; if they perform poorly, the
NAV goes down.
5. Returns to Investors: Investors can earn returns through capital gains (when the fund
sells investments at a profit) and income distributions (such as dividends or interest from
the fund’s holdings). These returns are typically reinvested or paid out to investors,
depending on the fund’s policies.
6. Buying and Selling: Investors can buy or redeem (sell) their mutual fund shares at the
NAV price at the end of each trading day. This means the value you receive when you sell
your shares is based on the NAV at that day’s market close.
7. Fees: Mutual funds charge fees for managing the investments. These fees can include
management fees, administrative costs, and sometimes exit load. It’s important to
understand these fees as they can affect your overall returns.
8. Tax Implications: Mutual fund returns are subject to capital gains tax (short -term and
long-term capital gains). When the fund generates capital gains, those gains are distributed
to investors, who then pay taxes on them.

5.2 STRUCTURE OF MUTUAL FUNDS
The mutual fund operates within a three-tiered structure, consisting of the sponsor, trustees,
and AMC. All mutual funds are established as trusts under "The Indian Trust Act, 1882," and
their activities are governed by the "SEBI (Mutual Funds) Regulations 1996." Among the
three entities, the trustees play the most critical role, followed by the sponsor, who initiates
the fund, and the AMC, who assumes the role of the investment manager.
Tier 1: Fund Sponsor
In the three-tier mutual fund structure in India, the fund sponsor occupies the first layer. The
sponsor is an individual or entity authorized to establish a mutual fund with the goal of
generating income through fund management. This responsibility is often executed by an
associate company, which handles the fund's investments. The sponsor also a cts as a promoter
of this associate company. To set up a mutual fund, the sponsor must seek approval from
SEBI and create a Public Trust under the Indian Trust Act, 1882, which must be registered
with SEBI. As the primary driver of the mutual fund’s promotion and the overseer of public
funds, the sponsor plays a critical role in the process.
Tier 2: Trust and Trustees
The second layer consists of the Trust and Trustees, who act as the protectors of the fund.
Appointed by the sponsor, trustees are tasked with ensuring the safety of investors' interests
and monitoring the fund's growth. A Trust is established by the sponsor in Favor of the trustees
through a trust deed. Trustees manage the trust and its assets, remaining accountable to
investors. They serve as the guardians of the fund, upholding transparency and trust within
the system.
Tier 3: Asset Management Companies (AMCs)
The third layer is formed by Asset Management Companies (AMCs), which act as operational
managers for the trust. AMCs are responsible for introducing and managing mutual fund
schemes, working closely with sponsors and trustees. They oversee fund management and
hire associate services, such as brokers, registrars, bankers, and lawyers, to support the fund’s
operations. Before functioning, AMCs must register with the Government of India. Together,
the AMCs ensure efficient management and execution of mutual fund schemes.
OTHER PARTICIPANTS IN THE STRUCTURE OF MUTUAL FUNDS:

The other participants in the structure of mutual funds in India are as follows:
• Custodian: A Custodian is an entity entrusted with the secure storage of securities. These
Custodians are registered with SEBI and hold the responsibility for facilitating the transfer
and delivery of units and securities. Additionally, they play a crucial role in he lping
investors update their holdings at specific intervals and keep track of their investments.
Apart from their primary task of safekeeping, Custodians also manage the collection of
corporate benefits, including bonus issues, interest, dividen ds, and other related matters.
• Registrar And Transfer Agent: RTAs (Registrar and Transfer Agents) serve as
intermediaries connecting Fund Managers and Investors. These SEBI -registered entities
are responsible for handling various tasks, including processing mutual fund applications,
assisting with investor KYC (Know Your Customer), managing and providing periodic
investment statements or reports, updating investor records, and processing investor
requests.
• Auditor: The auditor verifies AMC records to ensure proper use of collected funds and
certifies the absence of fraud. The AMC can choose its auditor and determine their

compensation, but it must adhere to appointment rules, publish the auditor's report, and
fulfil other obligations under the Companies Act.
• Broker: Brokers, authorised by SEBI and licensed to manage trading accounts, act as
intermediaries connecting investors to the stock market. AMCs rely on brokers to execute
trades, and some brokers also provide research reports that AMCs use for due diligence
purposes.
• Intermediaries: The intermediary can be anyone, such as agents, bankers, distributors,
and more. They play a role as a bridge connecting retail investors and AMCs. These
intermediaries recommend mutual funds to investors and receive commissions from the
AMC as compensation. They shall be registered intermediaries only.
5.3 SEBI AND ITS ROLE IN MUTUAL FUNDS

In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The
objectives of SEBI are – to protect the interest of investors in securities and to promote the
development of and to regulate the securities market.
As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual funds
to protect the interest of the investors. SEBI notified regulations for the mutual funds in 1993.
Thereafter, mutual funds sponsored by private sector entities were allowed to enter the capital
market. The regulations were fully revised in 1996 and have been amended thereafter from
time to time. SEBI has also issued guidelines to the mutual funds from time to time to protect
the interests of investors.
All mutual funds whether promoted by public sector or private sector entities including those
promoted by foreign entities are governed by the same set of Regulations. There is no
distinction in regulatory requirements for these mutual funds and all are su bject to monitoring
and inspections by SEBI. The risks associated with the schemes launched by the mutual funds
sponsored by these entities are of similar type.
5.4 ASSOCIATION OF MUTUAL FUNDS IN

INDIA (AMFI)
Association of Mutual Funds in India (AMFI) is a non-profit industry body of the asset
management companies (AMCs) of all Mutual Funds in India that are registered with
Securities and Exchange Board of India (SEBI).
AMFI was incorporated on August 22, 1995, under section 25 of the Companies Act, 1956
(corresponding Section 8 of the new Companies Act, 2013), as a non -profit organisation.
AMFI is dedicated to developing the Indian Mutual Fund industry on professional, healthy
and ethical lines, and to enhance and maintain standards in all areas in the best interest of
investors and other stake holders.
The ‘Mutual Funds Sahi Hai’ campaign, a nationwide investor awareness media outreach in
various languages initiated by AMFI in 2017 under SEBI’s guidance, is one of the key efforts
of AMFI to spread awareness about mutual funds as a distinct asset class. T he MFSH
campaign with simple, but very clear messaging through advertisements in different
languages has helped dispel the myths associated with mutual funds and popularise mutual
fund investments among retail investors and has helped the industry in addin g significant
number of investor accounts as well as investments.

OBJECTIVES OF ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI):
• To define and maintain high professional and ethical standards in all areas of operation of
mutual fund industry.
• To recommend and promote best business practices and code of conduct to be followed by
members and others engaged in the activities of mutual fund and asset management
including agencies connected or involved in the field of capital markets and financial
services.
• To interact with the Securities and Exchange Board of India (SEBI) and to represent to
SEBI on all matters concerning the mutual fund industry.
• To represent to the Government, Reserve Bank of India and other bodies on all matters
relating to the Mutual Fund Industry.
• To undertake nation-wide investor awareness programme so as to promote proper
understanding of the concept and working of mutual funds.
• To disseminate information on Mutual Fund Industry and to undertake studies and research
directly and/or in association with other bodies.
• To take regulate conduct of distributors including disciplinary actions (cancellation of
ARN) for violations of Code of Conduct.
• To protect the interest of investors/unit holders.
5.5 WHY DO PEOPLE BUY MUTUAL FUNDS?

Mutual funds are a popular choice among investors because they generally offer the following
features:
• Professional Management: The fund managers do the research for you. They select the
securities and monitor the performance.
• Diversification or “Don’t put all your eggs in one basket”: Mutual funds typically
invest in a range of companies and industries. This helps to lower your risk if one company
fails.
• Affordability: Most mutual funds set a relatively low dollar amount for initial investment
and subsequent purchases.
• Liquidity: Mutual fund investors can easily redeem their shares at any time, for the
current net asset value (NAV) plus any redemption fees.
5.6 WAYS OF INVESTING IN MUTUAL

FUNDS
Numerous pathways exist for investors to channel their money into mutual funds:
• Lump Sum Investment: Investors can invest a sizable sum into their preferred mutual
fund. This method is apt for those with a substantial amount ready for immediate
investment.
• Systematic Investment Plan (SIP): Here, investors allocate a consistent sum periodically,
perhaps monthly or quarterly, to a mutual fund. SIPs are favoured because they foster
consistent saving habits and let investors capitalise on the advantages of rupee cost
averaging.

• Direct vs Regular Plans: Investors can invest directly with the mutual fund company
(direct plan) or through intermediaries like brokers or agents (regular plan). Direct plans
generally have lower expense ratios as they exclude commission costs.
• Online Platforms : Various online platforms and apps offer mutual fund investments.
Angel One allows you to compare, choose, and invest in mutual funds seamlessly.
• Through Banks: Many banks have tie-ups with mutual fund houses and offer their
products to customers.
5.7 DOCUMENTS REQUIRED TO INVEST IN

MUTUAL FUNDS
The documents for KYC (Know Your Client) include proof of address and proof of identity.
Here is a list of officially valid documents (OVD) admissible.
• PROOF OF IDENTITY :
PAN Card (Mandatory), Voter ID Card, Driving License, Passport, Aadhaar Card, or any
other valid identity card issued by the Central or State Government
• PROOF OF ADDRESS :
Voter ID Card, Driving License, Passport, Ration Card, Aadhaar Card, Bank account
statement or bank passbook, Utility bills like electricity or gas bills.
It takes about 3–5 working days to get your KYC verified as the verification is done by
government-certified agencies.
5.8 RISKS OF MUTUAL FUNDS

Mutual funds, although popular and beneficial in many aspects, do come with their own set
of risks. Understanding these risks is crucial for any investor before diving into mutual fund
investments:
• Market Risk: This is the primary risk associated with mutual funds. It refers to the risk
of the market performing poorly. If the overall stock or bond market drops, it can impact
the fund’s returns, regardless of the quality of the securities in the fund’s portfolio .
• Credit Risk: This risk is specific to bond funds or debt funds. It refers to the likelihood
that a debt issuer will default on their obligations, impacting the fund’s returns.
• Interest Rate Risk: Mostly associated with bond funds, interest rate risk implies that if
interest rates rise, bond prices may fall, and vice versa. Thus, the value of mutual funds
holding these bonds might decrease.
• Liquidity Risk: Some mutual funds invest in securities that aren’t traded frequently. In
such cases, selling these securities at a fair price might be challenging, especially during
market downturns.
• Managerial Risk: The success of actively managed mutual funds depends on the skill of
the fund managers. Inadequate choices by the manager can result in the fund not meeting
its targets.
• Inflation Risk: In the long run, a mutual fund’s return rate might lag behind inflation,
diminishing the value of the invested sum.

5.9 TAXATION OF MUTUAL FUNDS
Variables Determining the Taxation for Mutual Funds
The principles of Mutual Fund taxation are much simpler to understand when they are further
broken down into smaller pieces.
• Types of Funds: Mutual Funds are divided into various groups for tax purposes like
Equity-Oriented Mutual Funds, Debt-Oriented Mutual Funds, and so on.
• Capital Gains: When you sell a capital asset for more money than it costs to purchase,
you make a profit, known as a Capital Gain.
• Dividend: A dividend is a portion of accumulated profits that the Mutual Fund house
distributes to the scheme's investors; investors do not need to sell their assets to receive a
dividend.
• Holding Period: The tax you will pay on your capital gains depends on the Holding
Period. Therefore, less tax will be due if your Holding Period is longer. Because India's
income tax laws encourage longer holding times, keeping your investment longer lowers
your tax burden.
Taxation of Capital Gains Provided by Mutual Funds

The holding period and type of Mutual Funds affect the tax rate on capital gains for Mutual
Funds. The holding period is the time an investor holds units of a mutual fund. Put simply,
the holding period is the time between the date of buying and selling Mu tual Funds units.
The following categories apply to capital gains realized on the sale of Mutual Fund units -
STCG LTCG
Fund Categories Pre-Budget Post-Budget Pre-Budget Post-Budget

2024 2024 2024 2024
Indian Equity 15% 20% 10% (on gains 12.5% (on gains
Funds/ETFs & above Rs 1 lakh) above Rs 1.25
Equity-oriented lakh)
hybrids
Debt funds/ETF & Slab rate Slab rate Slab rate Slab rate
debt-oriented
hybrids*
All FOFs (that hold Slab rate Slab rate if Slab rate 12.5% if held for
less than 65% in held for less over 2 years
debt)/International/g than 2 years
old funds/ETFs
Certain presumptions have been made due to a few grey areas.

*Investments made before April 1, 2023, will attract a 12.5% tax if sold after 2 years.
New rule applies from April 1, 2025. Redemptions made before will be taxed at your slab
rate.

Taxation of Dividends Provided by Mutual Funds
The fund houses that announced dividends deducted dividend distribution tax (DDT) before
paying them to the Mutual Fund investors. The investor must pay taxes on the entire dividend
income according to the income tax bracket under the heading "Income from Other Sources."
The Mutual Fund scheme's dividend is also subject to TDS (tax deducted at source). The AMC
is now required to deduct 10% TDS under Section 194K from the dividend that the Mutual
Fund distributes to its investors when the rules have changed if the total div idend paid to an
investor during a financial year exceeds ₹5,000. You can claim the 10% TDS that the AMC
has already taken out when you pay your taxes and only pay the remaining amount.
Taxation of Capital Gains Provided by Equity Funds

Mutual Funds classified as equity funds have an equity exposure of at least 65%. As
previously stated, when you redeem your equity fund units within a holding period of one
year, you realize short-term capital gains.
When you sell your equity fund units after holding them for at least a year, you realize long -
term capital gains. These capital gains are tax-free, up to Rs 1.25 lakh per year.
Any long-term capital gains over this threshold are subject to a 12.5% LTCG tax, with no
benefit of indexation.
Taxation of Capital Gains Provided by Debt Funds

Debt mutual funds have entirely different taxation. If a debt investment is sold within 3 years,
it will be deemed as STCG. This STCG will be added to the income of the investor and would
be liable to be taxed according to the tax slab under which the investor falls.
If debt investments have a holding period of more than 3 years, they will be termed LTCG.
They will attract an LTCG tax as per the individual's tax slab rate with no indexation benefits.
Note: Indexation applies to only LTCG that's earned on non-equity-oriented mutual funds.
Another important thing to note is that the fund manager will levy an STT of 0.001% if you
plan to sell your equity fund units. STT does not apply to the sale of units in debt funds.
It is essential to remember that debt funds no longer have the benefit of LTCG. The capital
gains that arise from such funds will be liable to be taxed according to the tax slab rate under
which an investor falls in.
Taxation of Capital Gains Provided by Hybrid Funds

Whether a Hybrid Fund is equity-focused or debt-focused determines how the Mutual Fund
taxes it. All other hybrid funds are debt-focused, while those with equity exposure over 65%
are considered equity-focused schemes.
Depending on their equity exposure, hybrid funds may or may not be subject to the same tax
regulations as Equity or Debt Funds.
Securities Transaction Tax or STT

The Securities Transaction Tax is separate from the Capital Gains and Dividend Taxes. When
you buy or sell Mutual Fund units of an Equity Fund or a Hybrid Equity-Oriented Fund, the
government (Ministry of Finance) will assess an STT of 0.001%. On the other hand, the sale
of Debt Fund units is exempt from STT.

CHAPTER 6
DATA INTERPRETATION
Popular Funds:
• Aditya Birla Sun Life Mutual Funds offers a wide range of investment products designed
to meet the diverse financial goals and risk preferences of investors. Among its most
popular funds, the Aditya Birla Sun Life Liquid Fund Direct Growth stands out as a
preferred option for those seeking short-term liquidity and stability. With an AUM of
₹44,520.60 crore and a CAGR of 6.92%, this fund invests in short-duration money market
instruments, making it an ideal choice for parking surplus funds with minimal risk.
• For investors aiming for long-term capital appreciation, the Aditya Birla Sun Life
Frontline Equity Fund Direct Growth provides exposure to large-cap equity stocks across
various sectors. With an AUM of ₹29,323.25 crore and a CAGR of 15.67%, it is well-
suited for high-risk investors looking to build wealth over an extended period. Similarly,
the Aditya Birla Sun Life Flexi Cap Fund Direct Growth, with an AUM of ₹22,440.17
crore and a CAGR of 17.68%, offers dynamic allocation across large, mid, and small -cap
stocks, making it an excellent option for investors seeking diversified equity exposure.
• The Aditya Birla Sun Life Money Manager Fund Direct Growth, which focuses on money
market instruments, and the Aditya Birla Sun Life Corporate Bond Fund Direct Growth,
which invests in high-quality corporate bonds, cater to moderate-risk investors. With
AUMs of ₹24,594.62 crore and ₹23,714.74 crore, respectively, these funds provide
stability and consistent returns, making them suitable for medium -term financial goals.
• Aditya Birla Sun Life Mutual Funds showcases a strong portfolio of offerings, balancing
liquidity, growth, and stability. While the liquid and debt funds appeal to conservative and
medium-term investors, the equity and flexi-cap funds target aggressive investors with a
long-term horizon. By providing a mix of high-quality options, the fund house reinforces
its commitment to addressing diverse investor needs and ensuring sustainable returns. As
always, it is vital for investors to consider their risk toleran ce, investment horizon, and
financial objectives when selecting a mutual fund.
Top performing funds:

• Aditya Birla Sun Life Mutual Funds features several top -performing schemes that have
consistently delivered strong returns over time. Among these, the Aditya Birla Sun Life
Infrastructure Fund Direct Growth is a standout, with a five -year CAGR of 17.16%. This
sectoral fund invests primarily in infrastructure-related companies and is ideal for
investors with a long-term horizon and a high-risk appetite, seeking exposure to India’s
growing infrastructure sector.
• Another high-performing option is the Aditya Birla Sun Life Pharma & Healthcare Fund
Direct Growth, which focuses on companies within the pharmaceutical and healthcare
sectors. With a five-year CAGR of 24.98%, this fund offers long-term capital appreciation
potential for investors willing to accept higher risks in a specialized industry. However,
its returns over shorter horizons, such as one and three years, have slightly underperformed
the category average, suggesting the need for a patient, long -term investment approach.
• For those seeking mid-cap exposure, the Aditya Birla Sun Life Midcap Fund Direct
Growth offers a five-year CAGR of 18.15%. This fund targets companies with growth
potential in the mid-cap segment, aiming for higher returns compared to large-cap funds.

While it has underperformed its category average in recent years, it remains a suitable
choice for investors looking to diversify their equity portfolio with moderate risk.
• The Aditya Birla Sun Life Dividend Yield Fund Direct Growth stands out in the thematic
fund category, offering a five-year CAGR of 15.13%. This fund focuses on high-dividend-
yielding companies, providing a combination of income and capital appreciation. It has
consistently outperformed category averages over one, three, and five -year horizons,
making it a compelling choice for income-focused investors.
• Lastly, the Aditya Birla Sun Life Small Cap Fund Direct Growth delivers a five -year
CAGR of 18.58%. This fund invests in small-cap companies with high growth potential,
catering to aggressive investors who are comfortable with higher market volatility. Despite
underperforming the category average in recent years, it remains a viable option for long -
term wealth creation.
Competitive Landscape:
• The mutual fund industry in India is highly competitive, with several prominent Asset
Management Companies (AMCs) vying for market share. Aditya Birla Sun Life Mutual
Funds, ranked sixth in terms of Assets Under Management (AUM), operates in a landscape
dominated by major players like SBI Mutual Fund, ICICI Prudential AMC, and HDFC
AMC. Each of these competitors leverages distinct strengths, such as extensive
distribution networks, innovative product offerings, and strong customer engagement, to
maintain their leadership positions.
• SBI Mutual Fund, the largest AMC in India with an AUM of ₹10,81,854.42 crore as of
2024, benefits significantly from its parent organization’s vast banking network, offering
unparalleled reach, particularly in tier 2 and 3 cities. Its leadership position is reinforced
by a wide array of mutual fund schemes and a reputation for reliability. Similarly, ICICI
Prudential AMC leverages the financial expertise of its parent organizations to offer a
comprehensive range of mutual funds across equity, debt, and hybrid categories, making
it one of the most profitable AMCs in India.
• HDFC AMC, another leading player with an AUM of ₹7,63,757.33 crore, distinguishes
itself through robust fund performance and a strong digital presence. Its focus on offering
investor-friendly products, along with seamless online investment platforms, enhances its
appeal among tech-savvy millennials. Nippon Life AMC, ranked fourth, has seen rapid
growth due to its innovative product offerings and strong governance practices, with an
AUM of ₹5,50,787.80 crore. It also benefits from its association with Nippon Life, a
globally recognized financial services provider.
• Aditya Birla Sun Life AMC, with an AUM of ₹3,15,777.58 crore as of 2024, ranks sixth.
The AMC differentiates itself through a diversified portfolio of 94 schemes, including
equity, debt, hybrid, and sectoral funds. Its joint venture with Sun Life Financial adds
global expertise to its operations, enabling innovative product development. However, to
climb higher in the competitive rankings, it must further expand its distribution network,
enhance digital capabilities, and strengthen its presence in underserv ed markets, such as
rural and semi-urban areas.
Key Observations:
1. Sectoral and Thematic Funds: Funds like the Pharma & Healthcare and Infrastructure
funds excel in offering specialized exposure, but they carry higher risks and require a
longer investment horizon.

2. Equity Focus: Funds like the Midcap and Small Cap funds provide robust returns but are
subject to market volatility, making them suitable for experienced investors seeking higher
growth.
3. Dividend Yield Fund: This thematic fund balances income generation with capital
growth, offering consistent outperformance in its category.
4. Leadership Strengths: Industry leaders like SBI Mutual Fund and ICICI Prudential AMC
leverage their parent companies’ extensive networks and financial expertise, providing
them with significant competitive advantages.
5. Market Diversification: Top players offer a wide range of funds, from equity to hybrid
and sectoral, catering to diverse investor needs.
6. Technological Integration: Leading AMCs like HDFC AMC and Nippon Life AMC excel
in integrating digital platforms, ensuring seamless customer experiences and capturing
younger demographics.
7. Challenges for Mid-Tier Players: Aditya Birla Sun Life AMC faces tough competition
from larger players and needs to focus on improving market penetration in untapped
regions and promoting innovative schemes to grow its market share.

CHAPTER 7
MAJOR FINDINGS AND SUGGESTIONS
• Aditya Birla Sun Life AMC, established in 1994, is a prominent player in India’s mutual
fund industry, offering 94 schemes across equity, debt, hybrid, and sectoral categories. It
emphasizes a customer-centric approach with a robust AUM of ₹3.5 trillion as of 2024.
Its vision focuses on leadership, ethical practices, and comprehensive financial solutions,
supported by a global partnership with Sun Life Financial.
• In a competitive landscape, Aditya Birla Sun Life Mutual Fund ranks sixth among Indian asset
management companies, with SBI Mutual Fund and ICICI Prudential leading the market. The
AMC's diverse portfolio and focus on investor-centric solutions have positioned it as a strong
contender, even amidst challenges posed by economic and regulatory dynamics.
• Mutual funds serve as an investment tool by pooling resources from multiple investors to
invest in diversified assets like stocks, bonds, and gold. The Indian mutual fund industry
has demonstrated remarkable growth, with its AUM reaching ₹66.7 trillion in 2024—a
sixfold increase in a decade. The industry offers benefits like diversification, professional
management, and tax-saving opportunities but faces challenges like risk perception,
regulatory hurdles, and limited financial literacy in tier 2 and 3 citi es. Opportunities for
growth include leveraging technology and appealing to younger demographics.
• Investor participation has grown significantly, as evidenced by the total number of folios reaching
20.45 crore in August 2024. Retail investors contributed substantially to this growth, particularly
in equity, hybrid, and solution-oriented schemes. This demonstrates a shift in investor confidence
toward mutual funds as a viable investment option.
• Mutual funds in India operate through a three-tiered structure consisting of sponsors,
trustees, and Asset Management Companies (AMCs). Sponsors initiate and promote the
fund, trustees oversee the fund’s operations and ensure investor interests are protect ed,
and AMCs handle the day-to-day management and investment of pooled resources. These
entities are governed under SEBI regulations, which provide a robust framework to ensure
transparency, investor protection, and market compliance.
• The investment process in mutual funds involves pooling money from investors to create
diversified portfolios aligned with the fund’s objectives. Investors buy units of the fund,
and the Net Asset Value (NAV), which changes daily based on asset performance , reflects
the value of their investment. Professional fund managers strategize and manage these
investments to maximize returns while mitigating risks.
• SEBI plays a crucial role in regulating mutual funds, ensuring market stability and
protecting investor interests. The Association of Mutual Funds in India (AMFI)
complements this by promoting ethical standards in the industry and increasing investor
awareness through campaigns like "Mutual Funds Sahi Hai," which have significantly
boosted participation.
• Investors have multiple methods to invest in mutual funds, including Systematic
Investment Plans (SIPs), lump sum investments, and choosing between direct and regular
plans. Accessibility has been further enhanced through online platforms, mobile apps,
partnerships with banks, and intermediaries like brokers. These options make investing in
mutual funds flexible and user-friendly.
• Documentation and compliance, specially completing the Know Your Customer (KYC)
process, are critical for investing in mutual funds. Accepted documents include PAN cards,

Aadhaar cards, and voter ID, ensuring authenticity and transparency. Efficient completion
of KYC is vital for streamlining the investment journey and fostering investor trust.
• Despite the industry's growth, challenges remain. Market volatility and the perception of mutual
funds as high-risk investments hinder their adoption among certain segments. Regulatory
changes, such as adjustments to long-term capital gains (LTCG) and dividend taxation, have
also affected investor confidence and returns.
SUGGESTIONS
1. Expand Investor Awareness: Organize educational campaigns focusing on the benefits,
risks, and tax implications of mutual funds, especially in tier -2 and tier-3 cities.
2. Leverage Technology: Enhance digital platforms with user-friendly interfaces and mobile
apps to simplify investments and increase accessibility.
3. Improve Data Availability: Incorporate more real-time data in analyses to provide
actionable insights.
4. Offer Tailored Products: Develop schemes catering to specific investor needs, such as
low-risk funds for conservative investors and sectoral funds for risk -tolerant investors.
5. Strengthen After-Sales Support: Build trust by improving post-investment services like
regular updates, personalized consultations, and grievance redressal mechanisms.
6. Promote Sustainable Investing: Introduce ESG (Environmental, Social, and
Governance) funds to attract socially responsible investors.

CHAPTER 8
CONCLUSION
The Indian mutual fund industry is a dynamic and rapidly evolving sector, demonstrating
resilience and significant growth despite global economic uncertainties. With a total AUM of
₹66.7 trillion as of 2024, the industry has solidified its role as a vital component of India ’s
financial ecosystem. Market leaders such as SBI Mutual Fund, ICICI Prudential AMC, and
HDFC AMC continue to dominate the landscape, leveraging robust distribution networks,
innovative products, and strong governance practices. Mid-tier players like Aditya Birla Sun
Life AMC have also established a firm presence with a diversified portfolio and customer -
focused strategies.
Despite its achievements, the industry faces challenges, including the perception of high risk,
limited penetration in rural and semi-urban markets, and the need for enhanced financial
literacy. Regulatory complexities and the evolving preferences of young er, tech-savvy
investors further demand strategic agility from AMCs. To maintain sustainable growth, it is
imperative for mutual fund companies to focus on innovative product offerings, seamless
digital integration, and localized outreach efforts.
Aditya Birla Sun Life AMC, with its global expertise and diversified offerings, is well -
positioned to capitalize on growth opportunities. By addressing its competitive challenges —
such as expanding its distribution network and tapping into underserved markets —the AMC
can strengthen its market position. The mutual fund industry as a whole must continue
fostering investor trust, simplifying investment processes, and promoting financial education
to unlock its full potential.
In conclusion, the mutual fund sector in India is poised for sustained growth, driven by
increasing investor participation, technological advancements, and economic reforms. With a
focus on transparency, innovation, and inclusivity, the industry can contin ue to play a pivotal
role in shaping India’s investment landscape and empowering individuals to achieve their
financial goals.

CHAPTER 9
BIBLIOGRAPHY
• https://aliceblueonline.com/structure-of-mutual-funds-in-india/
• https://www.etmoney.com/learn/mutual-funds/taxation-in-mutual-funds/
• https://cleartax.in/s/mutual-fund-types
• https://www.sebi.gov.in/sebi_data/docfiles/20616_t.html
• https://mutualfund.adityabirlacapital.com/about-us/companyprofile-amc
• https://groww.in/blog/top-amc-asset-management-company-india-biggest
• https://groww.in/stocks/aditya-birla-sun-life-amc-ltd/peer-comparison
• https://groww.in/blog/top-10-mutual-fund-houses-india
• https://www.valueresearchonline.com/funds/fund-house/
• https://www.smallcase.com/learn/growth-of-mutual-funds-in-india/
• https://www.etmoney.com/learn/personal-finance/best-investment-options-in-india-to-
invest/
• https://www.5paisa.com/blog/mutual-fund-industry-challenges-and-opportunities
• https://www.bajajfinserv.in/investments/mutual-fund-industry/
REFERENCES:
1. Das, J., & Shil, P. (2017). A study on the growth and pattern of Indian mutual fund
industry. International Journal of Applied Management Research, 4(1), 136 -151.
2. Pandow, B. (2017). Performance of Mutual Funds in India. Available at SSRN 2925049.
3. Sekhar, G. S. (2017). The Management of Mutual Funds. Springer International
Publishing.
4. Murthy, J., Anjaneyulu, M. S. R., Bhatt, M. H., & Kumar, M. D. S. (2022). Performance
evaluation of mutual funds: A study on selected equity mutual funds In India. Journal of
Positive School Psychology, 6(9), 1124-1132.
5. Ramanujam, V., & Bhuvaneswari, A. (2015). Growth and performance of Indian mutual
fund industry during past decades. International Journal of Advance Research in Computer
Science and Management Studies, 3(2), 283-290.
6. Adhav, M. S. M., & Chauhan, P. M. (2015). Comparative study of mutual funds of selected
Indian companies. International Journal of Science, Technology & Management, 4(2), 44 -
51.
7. Alagappan, S. M. (2019). Performance evaluation of mutual funds in India. Journal of
Emerging Technologies and Innovative Research, 6(6), 229 -236.
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9. Srivastava, P. (2022). Indian Mutual Fund Industry: An Analysis of Pre Covid -Scenario.
Journal on Banking Financial Services & Insurance Research, 12(9).

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Summer Internship Project Report on

"COMPREHENSIVE OVERVIEW OF MUTUAL FUNDS IN

Submitted for the Partial Fulfillment of the Degree of

Under the guidance of:

Department of Business Management

Dr. Harisingh Gour Vishwavidyalaya

I HARSH VARDHAN JAIN, the student of BACHELOR OF BUSINESS

Signature of the Faculty Guide: ……………………….

Signature of the Head of the Department: ……………………….

Signature of the Examiner:……………………………..

Harsh Vardhan Jain

Ch. Title Page No.

1.1 MUTUAL FUNDS IN INDIA

MUTUAL FUND STATISTICS

Growth of AUM of Indian mutual fund industry in last 5 years

ADITYA BIRLA CAPITAL |1

Mutual fund category breakup

TOP ASSET MANAGEMENT COMPANIES IN

1.2 OBJECTIVES OF MUTUAL FUND

ADITYA BIRLA CAPITAL |2

1.3 ADVANTAGES OF MUTUAL FUNDS

DISADVANTAGES OF MUTUAL FUNDS

ADITYA BIRLA CAPITAL |3

Based on asset classes:

Based on Investment Objectives:

ADITYA BIRLA CAPITAL |4

Based on Portfolio Management:

Based on Risk Appetite:

ADITYA BIRLA CAPITAL |5

1.6 CHALLENGES FOR MUTUAL FUND

ADITYA BIRLA CAPITAL |6

ADITYA BIRLA CAPITAL |7

ADITYA BIRLA CAPITAL |8

AUM- ₹3,53,517 Cr No. of schemes- 94 AMC Age- 29 yrs

ADITYA BIRLA CAPITAL |9

Financial Debt AAUM % Equity % Total AAUM %

About Sun Life

Sun Life is a leading international financial services organization providing asset

Aditya Birla Sun Life Asset Management Company Limited

Headquarters Mumbai, Maharashtra, India

Key people A. Balasubramanian (CEO)

ADITYA BIRLA CAPITAL | 10

Revenue ₹1,641 crore (US$200 million) (2024)

Owners Aditya Birla Capital (45%), Sun Life Financial (30%)

3.3 VISION AND VALUES

3.4 TYPES OF FUNDS

ADITYA BIRLA CAPITAL | 11

Index Funds and ETFs:

ADITYA BIRLA CAPITAL | 12

1. Aditya Birla Sun Life Liquid Fund Direct Growth

PORTFOLIO (Major Holdings)

ADITYA BIRLA CAPITAL | 13

AUM: ₹ 29323.25 Crore NAV: ₹ 574.36

PORTFOLIO (Major Holdings)

ADITYA BIRLA CAPITAL | 14

AUM: ₹ 24,594.62 Crore NAV: ₹ 358.95

PORTFOLIO (Major Holdings)

ADITYA BIRLA CAPITAL | 15

AUM: ₹ 23714.74 Crore NAV: ₹ 109.59