Introduction

Mobilization of financial resources plays a catalytic role in accelerating the pace of economic transformation. It is much more significant that investors have profitable avenues for channelizing their investments. Inculcating investment habit to the rural and semi-urban segments becomes essential to ensure participation of a majority of the people in the development process who lack awareness, expertise and are found risk-prone. Corporatisation with the help of mass participation in which albeit the small savers get an opportunity to make corporate investment is the main theme that we find in the Mutual Funds.

Associations or trusts of public members who wish to make investments in the financial instruments or assets of the business or corporate sector for the mutual benefits of its members are known as mutual funds. The funds collected from the members are invested in a diversified portfolio of financial assets with the motto of reducing risks and maximizing income. Thus, we find Mutual Fund a concept of mutual help of subscribers for portfolio investment and management of these investments by the experts. We find it an important link between savings and capital market.

The accelerated pace of economic transformation paves avenues for the mobilization of savings. The small savers in particular are found unaware of the avenues where they can channelize their savings. They have almost dismal risk bearing capacity. This necessitates expertise which they do not have. Thus, to cater to the increasing needs of the savings market, we find emergence of mutual funds services. Of course, it is not a new proposition in the Indian context because it was way back in 1964 that Unit Trust of India engineered a foundation for mutual funds services which since late 1980s have been found gaining popularity when the public sector banks following an amendment in Banking Regulation Act in 1983 empowered the RBI to permit the banks to carry on non-banking business and the process started in 1987. The beginning of 1990s opened new avenues for mutual funds when in 1993, it was found open even for private and foreign sectors.

New avenues, new institutions, big foreign players and the increasing financial requirements have made the business environment much more competitive. When we have new challenges and new opportunities, we find an acid test of our professional excellence. Since the results of economic transformation appear to be positive, the marketers by exercising their excellence can capitalize on the profitable opportunities. Informing, sensing, sensitizing, persuading and transforming the potential small and rural investors into actual investors appears to be a challenging task particularly in the Indian perspective where insensitivity is found of high order. The marketing professionals with world-class excellence can turn the negatives into positives.

The emerging positive trends in the Mutual Funds, particularly generated and mobilised by the private and foreign players, are a testimony to this proposition that in the markets of today, the organisations facing the image problem suffer and contrary to it, the organisations protecting and promoting the interests of their customers thrive. Since the beginning of the 21st century, a number of new developments took place in the business environment of mutual funds. The three different categories of institutions engaged in the business of mutual funds such as UTI, Public sector and Private sector during the first seven years of 21st century show a surprising result. If we make an analysis of the results, we find private sector contributing 82.5% Gross, 84.1 % Net, Public sector contributing 11% Gross and 11.4% Net and UTI contributing 6.4% Gross and 4.2% Net to the process of resource mobilisation. What happened to UTI; what happened to public sector, of course their results create so many doubts in our minds. If we make an anatomy of their functional behaviour, it is almost clear that due to managerial deficiency and also due to their involvement in scams; they experienced an image problem and investors had a ready-made better option which turned things in their favour.

The above-mentioned facts make it clear that both the UTI and public sector need to conceptualise innovative marketing practices. Since we find positive trends in the Indian economy, they have a profitable market. Opportunities are already in the MFs market and opportunities will remain there even in future. Capitalising on the opportunities in a right fashion requires priority attention of UTI and public sector. They, of course, need professionalised approach, dedicated and committed efforts of fund managers and sincere and honest team of agents and advisors. The image problem is to be removed on a priority basis. The people of almost all the echelons of UTI and Public Sector Banks and insurance need an attitudinal change. If we do something concrete and if we contribute something positive; our efforts for sensitisation and persuasion are found result-oriented.

The innovative marketing practices thus may be an effective prescription. Let's hope that mutual funds marketers realize the problems in a right perspective and make sincere and honest efforts to conceptualize marketing with the help of professionals having world-class excellence. The mounting uncertainties in the national economy have been tempting savers for future investments. The mutual funds houses need to capitalize on the same.

Types of Mutual Funds

In the mutual funds houses, we find different types of mutual funds. The organizations issue them with diverse objectives. Some of the mutual funds are found close-ended. This focuses our attention on the mutual funds in which contributions from members are collected during a definite time-frame which may be for a few days or even for a few months. The "Cangrowth" was for a few days whereas the "Dhanraksha" of "LIC" was for a few months.

Another type of mutual funds is open-ended under which units are purchased and sold throughout the year and a member can enter the scheme any time or walk out of it also any time. We find those schemes of perpetual nature without an end in which each individual member enjoys the benefits of expert investment in the form of income growth, such as the UTI scheme of 1964.

The mutual funds can also be classified into three more parts such as income-oriented, growth-oriented and income-cum-growth oriented. In the income-oriented mutual funds schemes, the motives of the members are confined to the maximization of income whereas in the growth-oriented mutual funds schemes, we find focus on capital appreciation. In the third type of mutual funds scheme, we find a fair blending of both the motives because the members not only get the benefit of capital appreciation but in addition, they also get the income.

Even these funds can also be classified into various types, specially based on the pattern of investment, such as some of the mutual funds are invested in debentures alone or fixed interest securities like the government bonds and treasury bills whereas others may be invested in variable dividend securities like equities or shares of companies. A few may confine their investments in government and semi-government bonds; whereas a few may also confine to the real estate. In addition, we also find scope for investment in Art fund. The different types of mutual funds help marketers in identifying the defined objectives of members.

Mutual funds marketing: The concept

The conceptual exposition of Mutual funds marketing focuses our attention on the two different terminologies. When we talk about the mutual funds our focus is on trusts or associations of public members acting as an intermediary, regulated by the Indian Trusts Act with the motto of saving-mobilization, investment penetration and income generation meant for both the national and offshore investors.

With the use of word Marketing, we find a change in the conceptual framework. Thus, the Mutual Funds Marketing draws our attention on the conceptualization of marketing principles in the mutual funds operation. The professionals implementing the principles will be known as Mutual Funds Marketer and their operations will be called mutual funds marketing. Because we find Mutual Funds working as an industry, it is imperative that marketing of the services of Mutual Funds is given due weightage. The marketers bear the responsibility of sensitizing the users and potential users of services. In addition, they are also supposed to protect and promote the interests of customers. In the Indian context where we find lack of awareness, the sensitization process occupies a place of outstanding significance. The users of services and the potential users are to be educated, particularly those living in rural and semi-urban areas need an intensive care. In addition, it is also essential that organizational interests are well protected. Almost all categories of investors expect protection of money and further they also want profitable returns. The investors as well as the intermediaries have a legitimate right of promoting fair practices for multiplying their saving and investments. This task can be successfully done by the professionals having world-class excellence helps in accomplishing the organizational goals. Serving the customers and sub-serving organizations are the two opposite considerations which require a professional touch which can be made possible by the marketers. In the marketing process, we find interests of customers at the top and even in the mutual funds marketing, the interests of customers (members) are to be at the top. Satisfying the customers and creating and widening the market help mutual funds marketers in making the profits. The customers expect innovative services (product), they prefer cost-effective services and both are to be possible with the application of marketing.

In the Mutual Funds Marketing, we find correlation matrix significant where we find organization, product and customer affecting the process. Sensitizing and persuading the savers, channelizing their investments into the saver: to cycle and recycle productive heads, generating the targeted returns and passing back the same the process are the areas to be successfully conceptualized by the service marketers.

Marketing Mix 

Product

In any organization, we find product assuming a place of outstanding significance. The mutual funds houses offer financial services found of tangible nature. This in a very natural way complicates the functional responsibility of marketing professionals. The business environment for mutual funds is found to be much more volatile. This is primarily due to the fact that in the stock market operations we find the intensity of competition almost at its peak. The rivals also make the market operations a place for unhealthy competition. The three big providers through which we find mutual funds operations are UTI, Public Sector Commercial Banks and LICI and GICI. In addition, we also find entry of private domestic and foreign players. While offering different types of schemes considered as the product of mutual funds industry, the intermediaries need to consider the interests of investor's on a priority basis. On the one hand, the protection of invested funds and on the other hand, profitable returns on the invested funds make it essential that portfolio managers have made use of their expertise and professional excellence. Unlike banks and insurance companies, the mutual funds houses are supposed to shoulder a number of functional responsibilities. They do not have operational freedom as we find in banks and insurance companies.

The suitability of a product depends on the emerging market conditions. The schemes of mutual funds are to be investment-oriented. This necessitates a careful designing of the mutual funds schemes. The emerging trends in the stock markets need priority attention of marketers because a minor mistake in studying and understanding the market conditions may result in major losses. What are the existent trends in the stock markets and what trends are expected to emerge; the marketers need a right diagnosis. Besides, the emerging trends in the savings markets also draw attention of marketers. The segment to be targeted and the savings potentials of that segment need due weightage. The professionals need to establish a correlation between the market segments and investment instruments. The new product of mutual funds not considering savings and investment behavior would be found much more risky. The different segments have different levels of expectations, such as some of them expect high rate of return whereas some of the segments expect regular income. We also find segments interested in getting the tax reliefs.

In some of the segments, we find investors expecting much more safety to their funds. The marketers need to identify avenues that how and in what way, they can fulfill the expectations of investors. Since we find SEBI regulating the operations of mutual funds, it is also to be made sure that provisions of regulations are given due weightage while formulating the product mix.

In the process of designing a sound product, it is pertinent that mutual funds marketers intensify market research to develop their awareness of the changing levels of expectations of investors. The future trends are to be forecasted specially related to the stock markets. The emerging trends in national economy, the political activities, global relationships, stability or instability of government, pace of corporatization are some of the factors guiding the behavior of stock market. The marketers on the basis of intensive research of different segments would be in a position to forecast the future trend.

The different processes for the development of product are to be followed before final launching of the product. Right from the screening of ideas to the testing product, the marketers need an intensive care. Since we find SEBI imposing controls on the mutual funds, the professionals have to make it sure that schemes and their provisions are not making an invasion on regulations. The emerging trends in demand and the changing attitudes of investors would help marketers in different ways.

Professionals also need to show their excellence while selecting a brand name. The related segments, inherent benefits of the schemes, objectives of investment and loyalty of customers are found important in the very context. In a true sense, the name of a product will convey the segment for which the product is meant. If the products are related to the child segment, the brand name explains it, viz., Children's Gift Growth Fund Unit Scheme for the segment of children, Unit Offshore Funds, India Growth Fund for Non-resident Indians, Can Gift of Canara Bank. Unit Scheme 1981 for Charitable Trusts and Registered Societies are some of them. The marketers need to realise that name conveys the features, the properties, the benefits so that the task of promotion becomes easier.

The marketing professionals cannot undermine the interests of tax payers who invest with the motto of getting the tax reliefs. They have to follow the provisions of SEBI and to offer product under the different sections covering tax benefits. The timing of launching of the product is found significant in this context.

In the process of formulating a sound product mix, the marketers are required to divert their attention also on the rural segment so that mass participation in the resource mobilization and investment channelization help accelerating the process of national economic transformation.

The product mix must be innovative and competitive. The elimination and inclusion process need due care. The regulatory barriers cannot be undermined. The multi-faceted interests of different segments are required to be protected and promoted.

Promotion 

The mutual funds marketers need to develop their awareness of the promotional measures so that they are efficacious of informing, sensing, sensitizing, persuading and transforming the potential investors into actual and habitual investors. It is not only sufficient that the innovative and competitive schemes equipped with so many features are launched and available. It is much more impact generating that we activate the promotional measures and for that purpose develop a sound promotion mix. Effectiveness and cost-effectiveness are the two important considerations in the development of a sound promotion mix. It is natural that the investors of different segments are not equally sensitive and receptive. Highly educated segment and rural segment cannot be equally receptive. The child segment would expect in a different way and the senior citizens would expect in a different way. Keeping in view their levels of sensitivity, the creative promotional measures are to be adopted.

While advertising, it is to be made sure that messages, posters, campaigns have a correlation with the segment. If we find the scheme for the women segment, the selection of magazines, newspapers in tune with the taste and temperament of women is found essential. If we find our schemes for the child and senior citizens; we should advertise in the concerned magazines preferred by them. The print media, of course, have an edge over others specially when we talk about promoting the mutual funds services. The sensitization process would be found much more effective if we make use of electronics media specially for the rural segment. The marketers need to make it sure that advertisement materials make available to the investors all the required information they need. The timing and selection of media need due care of professionals.

In the mutual funds promotion, the marketers also need to practice publicity because this will help them in many ways. The outstanding features of a particular scheme need to be narrated. The academics and media people are to be impressed. The characters having a positive image are to be approached. The public relations activities have a special bearing on the transformation process. Because we find it a non-paid.form of persuasive communication, the marketers need to make use of this component even for the mutual funds industry.

The schemes for sales promotion need much more precautions. The incentives to investors and agents or advisors must be in tune with the regulatory provisions. The marketing people promoting the business need to furnish right information to the investors and potential investors.

The personal selling measures need due attention of marketing professionals because the agents or advisors play a very effective role in influencing the investors and promoting the business. They need high communicative ability to narrate facts and influence investors. The confusions regarding the schemes must be removed. Because the intensity of competition is high, it is pertinent that this component of promotion draws priority attention of UTI, Banks, LICI and GICI so that their agents and advisors initiate and activate the promotional measures in an effective way.

Promoting through telemarketing cannot be undermined because the telemarketers with the sophisticated audiovisual facilities would only not furnish the required information but would also be helpful in removing the confusions of potential investors.

The word-of-mouth promotion moves in its own way. If the mutual funds product/schemes or services are found offering to the investor's profitable returns, the concerned investors become your promoters. They virtually start acting as a hidden sales-force. In addition, the behavioral profile of your agents and advisors directly related to the investors also influence the word-of-mouth promotion. This speaks of the fact that fund managers and portfolio managers play a decisive role in the mutual funds operations. The decisions they have taken and the responses they get prove to be an indicator for activating the word-of-mouth communication.

The promotional measures must be effective and cost-effective. Creativity needs an intensive care specially when we find the potential investors very conscious. Sensitizing the target investors is found significant in the very context. The marketers need to keep into consideration the motives or hidden motives of investors and potential investors. The emerging trends indicate that a majority of the investors have been found interested in getting the tax reliefs. It is also found that some of the investors have developed their temptation for long-term investments fetching profitable returns. The risk bearing capacity of investors is also found moving upward.

The marketing professionals need to develop a sound promotion mix. The weightage of a particular component of promotion depends on the situational requirements. But it is almost clear that in an age of advanced print technology, the print media can be useful to professionals in many ways. Either for transmitting information or for persuasion, the print media have an edge over others specially for the mutual funds industry.

Price

In the marketing process, the pricing decisions assume an important position. We find mutual funds houses, of course, taking the shape of an industry but the results coming from the investments are influenced by a myriad of factors found instrumental in the business environment. The SEBI governs the operations of mutual funds and therefore we do not find much more options before the marketers to influence the process. The purchasing and selling prices of units/shares are the important dimensions of pricing policy of mutual funds. The RBI guidelines clarify that the maximum spread between the purchase and selling prices of units or shares should not be more than 5%. Further, it is also mentioned that the total cost of managing any scheme under a fund, including management fees and other administrative costs should be kept within 5% of the total income of the scheme. The SEBI regulations clarify that the Asset Management Company may charge the mutual fund with investment management and advisory fees which should have been disclosed fully in the prospectus subject to the following ceilings:

a) 1.25% of the weekly average net assets outstanding in the current year for the scheme concerned as long as the net assets do not exceed 100 crore, and

b) 1% of the excess amount over 100 crore where net assets so calculated exceed 100 crore. 

In addition, the Asset Management Company may charge the MFs with the following expenses: 

a) mutual issue costs of sponsoring the fund and its schemes,

b) recurring expenses including:

i) marketing and selling expenses, agent's commission, if any, 

ii) brokerage and transaction cost, and

iii) registrar services for transfer of shares sold or redeemed.

The fees payable to the trustees shall be charged to the mutual funds and the fees payable to the custodian for safe keeping of fund assets and related matter shall be charge to the mutual fund. The initial issue expenses should not exceed 6% of the funds raised under each scheme. In any case, the total of all the expenses charged to the fund except the initial issue expenses should not exceed 3% of the weekly average net assets outstanding during the current year and the same shall be disclosed through advertisement, accounts, etc. All expenses should be clearly identified and appropriately attributed to the individual schemes. All mutual funds must distribute a minimum of 90% of their profits in any given year.

It is right to mention that the prices of mutual funds are inextricably linked with returns. In this context, it is also important to know about the face value of the units of mutual funds. In the pricing, we include incentives, brokerages, agency commission and other expenses such as registrar services, marketing and selling expenses. The value of a share of the mutual fund known as the NAV (Net Asset Value) is calculated on the daily basis on the total value of the fund divided by the number of shares purchased by investors.5 Calculating NAV of mutual fund is found easy. At the outset, we take the current market value of the fund's net assets which are securities held by the fund minus any liabilities and divide by the number of shares outstanding. SEBI has approved a standard format for prospectus and specified the procedures of calculating the NAV.

NAV = (Market Value of Securities held under scheme - liabilities of the scheme)/Number of units outstanding under the scheme.

The SEBI has made it mandatory the mutual funds houses to publish NAV weekly.

The above-mentioned facts make it clear that the pricing decisions in the mutual funds industry are governed by a number of factors. As and when we find an increase in the different costs as mentioned above, its direct impact would be on the pricing decisions. Since the market is competitive, it is pertinent that fund managers regulate the expenses. Making the process cost-effective appears to be an effective prescription for minimising the cost vis-à-vis the price.

There are a number of measures which may bring down the costs on the management of mutual funds. So far as the costs on agent's commission and brokerage are concerned, we cannot make an advocacy in favour of a drastic cut because they actually play a decisive role in pooling the money from the pockets of investors. But we find avenues for minimising the establishment costs. The fees to be paid to the trustees are also to be rationalised. In addition, the fees payable to the custodians for safe keeping of fund assets and related matters also draw our attention. The main thing is to bring down the costs to the extent it is not going to influence the processes of savings mobilisation vis-à-vis the investments channelisation.

Place

The mutual funds services pass through different channels. The fund managers play an important role particularly while pooling the money from the pockets of investors/customers. They need to play a role of professional so that the investors are found satisfied and impressed upon. The impulse investment acts as a stimulant for persuasion. The investors in a very natural way are interested in getting high rate of returns from their investments. An in-depth study of portfolio is found significant in the very context. The portfolio managers with the help of Sharpe Index Model would be in a position to assess that which of the investments would provide high rate of returns. The fund managers are supposed to know about the potentials existent in a portfolio. Actually, we find Sharpe Index Model also helping an investor in knowing the fate of their investments.

We are well aware of the fact that success rate of mutual funds is considerably influenced by the channel of distribution selected for channelising the investments. The providers of services are the UTI, LICI, GICI and the Public Sector Commercial Banks and the private sector companies. They with the help of fund managers, portfolio managers make available the services to the investors. On the other hand, they are also supposed to have a correct idea of the changing market behaviour specially to diagnose that which of the portfolio is to get the profitable returns. We also find one more stage when the profitable returns are passed back to the investors.

Thus, we find both upward and downward behaviour of channels for offering the mutual funds services. We cannot negate that the study of changing market behaviour helps fund managers and portfolio managers in coming to a right conclusion. With the help of following figure, we can perceive the channels for the distribution of mutual funds services.

Thus, the most important role in the collection process is played by the agents and advisors of the concerned organisation. They bear the responsibility of motivating the investors and potential investors. After the selection of mutual funds schemes by the investors, the fund managers and portfolio managers play an outstanding role. With the help of sound market information system, they can help investors in the decision-making process.

Process

The mutual funds services are processed with the help of a team of people at different levels and stages. The services start from the providers who are UTI, LIC, GIC public sector banks and private companies and reach to the ultimate users considered as members who buy the product normally through agents and advisors. This is one way of processing. Another way is related to the payment of returns to the users of services. The money invested by the users in the mutual funds schemes are channelised into shares, securities, debentures and bonds. Here, we also find processing determining the future of mutual funds. The fund managers with the help of expertise services of portfolio managers invest in portfolio expected to be profitable. Now, the last process is found related with the payment of returns to the members. The concerned users get the returns from the providers where the funds have been invested.

This makes it clear that the mutual funds services considerably depends on the performance of intermediaries involved in the process. The marketing professionals bear the responsibility of managing the intermediaries in such a way that the users feel themselves satisfied. Of course, we also find use of technologies for the processing of services, especially when the investors' funds reach to the providers. But the most important thing in the processing is related to the instrumentality of agents or advisors working for the providers. The role of funds manager and the involvement of agents or advisors and in addition their behavioural profile plays a significant role in determining the services quality. But different to other industries, we find processing of mutual funds services sizeably governed by the efficiency of people working in different capacities.

Right processing, time-honoured processing, techno-supported processing, information-based processing of mutual funds services draw priority attention of professionals.

Physical evidence and attractions

Because the services are delivered by the agents and advisors at the doorsteps of the users, we find this submix of marketing mix not so much significant to the mutual funds services. However, we can make them partially effective specially when we talk about the role of exteriors and interiors or the physical surroundings of the offices where services take a shape. The users occasionally may visit the offices where the surroundings may create a positive impression. The agents and advisors and the marketing people having face-to-face communication with the users need to look impressive. The dresses used by them, their body language and physique throw a positive impact on the users of services. They should assign due weightage to the different dimensions of personal care instrumental in adding additional attractions to the services. The impression of your organisation depends on the impression that you create with the help of personal care services.

People

Like other services, the mutual funds services also rest on the levels of efficiency of people serving the mutual funds operations in different capacities at the different stages. Particularly when the users of services majority are found unaware of the product (schemes), the marketers are supposed to play a meaningful role. In a of the cases, we find users of mutual funds services lacking right information about the profitable avenues for investments and the degree of risk involved in the investment. Inadequate information regarding the portfolio makes it essential that the people working as intermediaries and agents and advisors make available to them the right information on time. This is possible when they have an in-depth knowledge of portfolio. Thus, the first thing that we find essential for people focuses our attention on the knowledge bank of intermediaries. The emerging trends in the share markets, the fair and unfair practices in the markets, the portfolio bearing high potentials and the portfolio bearing high magnitude of risks are some of the key factors for communicating and motivating the investors. The thematically competence of marketers simplifies the process of persuasion.

The agents and advisors working for mutual funds services play the role of an informer. This is the first stage from where we find investors and potential investors knowing about the product of mutual funds houses. If the performance level of past investments is satisfactory and the investors are found satisfied with the returns they have received in past, the task of agents and advisors is found easier. Contrary to it, they find it difficult to persuade the investors when the organisation has been facing the image problem due to unfair practices or scams. The agents and advisors virtually act as a personal seller. This makes it essential that marketing professionals organise short-term training programmes or refresher courses to brush up their knowledge. The agents or advisors find it difficult to persuade the investors coming from rural background or semi-urban town and cities. If they have done their home task of building relationships with the investors, the persuasion process is found effective. The agents and advisors need to verse themselves preferably in the regional languages which would help them in showing personal-touch-in-service. The sincerity and honesty, personal commitment, personal-touch-in-service high communicative ability and high degree of resistance power help them in persuading the investors.

The fund managers responsible for managing funds coming from different schemes also play an important role. They need coordination with the agents and advisors as well as with the portfolio managers. The time-lag between the funds coming from the investors and getting them channelised in the shares and securities need to be minimised. With the help of information system, they can document information received from different sources. The fund managers act as an important intermediary.

Portfolio managers are the professionals rendering services for the management of portfolio of anybody, namely, clients or customers with the help of experts in Investment Advisory Services. An individual or an organisation can make use of the services of portfolio managers. The organisations offering mutual funds services also use the services of portfolio managers. In this context, we need not to forget the guidelines of SEBI which has given permission to Merchant Bankers of category I to do portfolio management. Only those who are registered and pay the required license fee are eligible to operate as portfolio managers. SEBI has prohibited the portfolio managers to assume any risk on behalf of the client. They are also not permitted to assure any fixed return to the client. The SEBI has imposed a number of obligations and a code of conduct on them.

In the management of people for the mutual funds services, we cannot negate the outstanding role of portfolio managers. The providers of the services lack expertise in the concerned areas. In this context, it is pertinent that they make use of the services of portfolio managers who would help them in many ways. In the mutual funds operations, the portfolio managers evaluate the performance of portfolio and identify the sources of strengths and weaknesses. The evaluation of portfolio provides a feedback about the performance to evolve a better management strategy. Of course, the evaluation of the performance of portfolio is found to be the last stage in the process but it makes ways for future investments. A number of managed portfolios are found in the capital market.

The above-mentioned facts make it clear that mutual funds houses need to have quality people because only a team of dedicated and committed people can help them in the process of persuading investors, getting funds from them, channelising their investments and making available to them the profitable returns. The users appear interested in getting the profitable returns. Making use of professionalised services in such a manner that they are further induced and the processes of savings mobilisation and investments channelisation keep on moving.

The government policy makers are also interested in promoting mutual funds operations. It is against this background that we find provisions for tax reliefs. The recently announced Equity Linked Savings Scheme (ELSS) is a staunch testimony to this proposition. The LIC and GIC have additional benefits of insurance cover. Now, the UTI has also received equal status for tax purposes. Thus, we find tremendous opportunities in the markets.

Despite fluctuating trends in the stock markets, we find good auguries in the national economy of India. In the face of mounting uncertainties in the economy, the masses are found tempted to savings. The people working in different capacities determine the speed of savings mobilisation. The professionals are required to show their excellence which would be an acid test of their managerial proficiency. If they keep on moving the process of maximising their returns, the channelisation of investments cannot be denied.