ASUMMER INTERNSHIP PROJECT REPORT

on

“A Study on Awareness About Mutual Fund In Rajkot City”

ForKotak Asset Management Company Ltd

Submitted By

Abhimanyu Singh RajputEnrolment No.: 147340592001

Marwadi Education Foundation’s Group of Institutions- Rajkot

Industry Overview The mutual fund industry in India started in 1963 with the formation of Unit Trust of India,

at the initiative of the Govt. of India and Reserve Bank.

It pools the money of several investors and invests this in stocks, bonds, money market instruments and other types of securities.

There are 46 Mutual Fund Companies are operating in the sector, approximately 80 % of the AUM concentrated with 8 of the leading players in the market

An asset managed by the Indian mutual fund industry has grown from Rs. 9.91 trillion in May 2014 to Rs. 12.26 trillion in May 2015.

Advantages Of Mutual Fund from customers’ perspective

• Return on investment• Systematic saving• Value for money• Good option as compared to other investment

avenues• Average ROI (dependent upon market

performance)• Tax saving

Company Overview

• Kotak Mahindra group, established in 1985 by Uday Kotak, is one of India’s leading financial services conglomerates

• Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned subsidiary of Kotak Mahindra bank Limited (KMBL), is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF).

• KMAMC started operations in December 1998 and has approximately 7.5 Lac investors in various schemes.

• KMMF offers schemes catering to investors with varying risk - return profiles and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.

• The company is present in 76 cities and has 79 branches.

Research Objective

Primary objective

To measure the awareness of customers towards mutual funds

Secondary objectives

To study which modes of investments are preferred by the customers.

To understand important determinants which affect the selection of mutual fund

To examine the performance of mutual funds and to give suggestions.

Review of literatureS Prassanna & S Kumar (2014) mention that the general knowledge & awareness level among the individual investors are so good. Mutual funds are cornering the maximum attention of the investors in today’s scenario be it individual or corporate investors.

Desai & Joshi (2013) note that majority of the mutual fund investors invest in insurance sector which emphasize their demand for safety and security of their funds. Majority of the mutual fund investors consider balanced funds as a highly important type whereas the least preferred type is the tax saving funds.

Singh and Vanita (2002) The findings of the study were that the investors' preferred to invest in public sector mutual funds with an investment objective of getting tax exemptions and stayed invested for a period of 3-5 years and the investors evaluated past performance. The study further concludes by stating that majority of the investors were dissatisfied with the performance of their mutual fund and belonged to the category who held growth schemes.

Research MethodologyResearch Design Descriptive Research

Sampling Method Convenience Sampling

Sample Size 100

Source Of The Data Primary :- QuestionnaireSecondary :- Fact sheet , pamphlets, websites, Journal.

Data Collection Instrument Questionnaire

Data Processing Microsoft Excel is used for Statistical Data processing

Analysis Of Data1) You belong to which of the following Category:

7%8%

20%

20%

45%

Profession

Government EmployeeSelf EmployedProfessionalBussiness PersonAgriculturistPrivate firm Employee

2)What is percentage of savings from your total income ?

< 25 % < 50 % < 75 % Others0%

10%20%30%40%50%60%70%80%90% 81%

17%2%

0%

% of Savings

3)What are the factors to which you give priority when you invest ?

52%30%

11%

5% 2%

Factors

Safety

High Return

Liquidity

Less Risk

Markeability

4) Do you know about Mutual fund ?

Yes No0%

10%

20%

30%

40%

50%

60%

70%

66%

34%

Awareness

Awareness

5) Do you Invest in Mutual fund ?

Yes No 0%

10%

20%

30%

40%

50%

60%45%

55%

6) What is your investment pattern ?

Monthly Lump Sum SIP/Lumpsum0%

10%

20%

30%

40%

50%

60%

18%

33%

49%

Investment Pattern

Investment Pattern No. Of Investors

Monthly 11

Lump Sum 23

SIP/Lumpsum 34

7) What do you look before investing in particular mutual funds?

NAV Ratings AMC Expert advise

0%

10%

20%

30%

40%

50%

60%

56%

4%

32%

8%

Criteria

CriteriaNo. Of

Investors

NAV 21

Ratings 4

AMC 11

Expert advise 2

8) You have invested in which type of Mutual fund Scheme ?

68%

15%

17%

Mutual Schemes

Equity Fund

Debt Fund

Hybrid Fund

9) Is there any need for creating awareness among the public of Rajkot about the benefits of Mutual Fund ?

98%

2%

Need For Creating awareness

Yes No

10)You have not invested in Mutual fund because :

A B C D E F0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

4% 3% 2%

34%

42%

15%

Reason for not investingSr. No Reason for not investing

No. Of Investors

A It’s not lucrative investment instrument  4

BNo satisfactory return on investment compared to others 3

C No safety for funds invested 2D

Risky investment instrument  34

E No knowledge about how to invest  42

F It is related to share market So, it is risky and returns are not guaranteed  15

Findings In majority of the respondents the knowledge level is confined to good knowledge.

Approximately 34% of the respondents do not have proper knowledge about Mutual funds and 66% of respondents are aware about mutual funds.

Most of the investors are aware about mutual fund but they are not investing in mutual fund because of several reasons , some are not investing because it is related to share market and it is a risky investment instrument

The investors in Rajkot are potential to invest to in mutual fund they only need proper guidance and information about mutual fund

Limitations

Time constraint

Biased answers

Research limited for Rajkot city only

Sample size could have been expanded given more time

Suggestions Mutual fund companies should try to educate the investors to invest in mutual funds through

regular awareness programs

Mutual Fund Agencies should spread the information about all the aspects of investing in mutual funds.

Make investors aware about the benefits of investing mutual fund with their investment objective. Retail participation in mutual funds is very low. It is therefore, required to increase the reach by offering solutions to the investors based on their needs

Conclusion Majority of the mutual fund investors invest Savings bank and Fixed Deposits which

emphasizes their demand for safety and security of their funds.

68% of investors shows their preference in Equity Schemes which shows that Equity funds are more preferred by Investors than Debt & Hybrid funds

We can conclude that from the responses I received that there is a lack of proper information about the mutual funds and government and mutual fund provider companies should create more awareness about mutual fund’s benefits.

BibliographyKumar, S., & Kumar, S. (n.d). “Awareness and Knowledge Of Mutual Fund among the Investors with reference to Chennai” 2(4), 4-4. doi:2014

Desai, D., & Joshi, M. (n.d). “A Study about Awareness of Mutual Funds Among the Investors Of Navsari District.” 3(1), 13-13. doi:January 2013

Singh, and Vanita, (n.d). "Mutual Fund Investors' Perceptions and Preferences-A Survey.“3(1), d.o.i:2002

www.kotak.comwww.assetmanagement.kotak.com www.amfiindia.com www.moneycontrol.com www.valueresearchonline.com

Thank You