Final Project on Mutual Funds

8/6/2019 Final Project on Mutual Funds

1/63

A PROJECT ON

MUTUAL FUNDS IS THE BETTER INVESTMENT PLAN

NAME: RAJESH KUMAR

SECTION: FI-1

ROLL NO.: 49

SUBMITTED TO: PROF. PANKAJ UPADHYAY.

DATE OF SUBMISSION:27.05.11


2/63

CONTENT:-

1. INTRODUCTION.

2. COMPANY PROFILE.

3. OBJECTIVE AND SCOPE.

4. RESEARCH METHODOLOGY.

5. DATA ANALYSIS AND INTREPRETATION.

6. FINDINGS AND CONCLUSIONS.


3/63


4/63

L ABOUT MUTUAL FUNDSAT IS MUTUAL FUNDSTRUCTURENATUREUITY FUNDBT FUNDSINVESTMENT OBJECTIVEHER SCHEMESOS & CONS OF INVESTING IN MUTUAL FUNDSVANTAGES OF INVESTING MUTUAL FUNDSADVANTAGES OF INVESTING MUTUAL FUNDS

TUAL FUNDS INDUSTRY IN INDIAJOR PLAYERS OF MUTUAL FUNDS IN INDIATORY OF THE INDIAN MUTUAL FUND INDUSTRY

TEGORIES OF MUTUAL FUNDSESTMENT STRATEGIESRKING OF A MUTUAL FUNDDELINES OF THE SEBI FOR MUTUAL FUND

MPANIES DISTRIBUTION CHANNELSES FUND PERFORMANCE AND RANKING PERSIST?RTFOLIO ANALYSIS TOOLS


5/63

Chapter - 1ntroduction


6/63

TRODUCTION TO MUTUAL FUND AND ITS VARIOUSPECTS.ual fund is a trust that pools the savings of a number of investors who share amon financial goal. This pool of money is invested in accordance with a statedctive. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to allstors. The money thus collected is then invested in capital market instruments suchhares, debentures and other securities. The income earned through thesestments and the capital appreciations realized are shared by its unit holders inortion the number of units owned by them. Thus a Mutual Fund is the mostble investment for the common man as it offers an opportunity to invest in a

rsified, professionally managed basket of securities at a relatively low cost. Aual Fund is an investment tool that allows small investors access to a well-rsified portfolio of equities, bonds and other securities. Each shareholdercipates in the gain or loss of the fund. Units are issued and can be redeemed ased. The funds Net Asset value (NAV) is determined each day.stments in securities are spread across a wide cross-section of industries andors and thus the risk is reduced. Diversification reduces the risk because all stocksnot move in the same direction in the same proportion at the same time. Mutualissues units to the investors in accordance with quantum of money invested by

m. Investors of mutual funds are known as unit holders.


7/63

n an investor subscribes for the units of a mutual fund, he becomes part owner ofssets of the fund in the same proportion as his contribution amount put up with theus (the total amount of the fund). Mutual Fund investor is also known as a mutualshareholder or a unit holder.change in the value of the investments made into capital market instruments (such

entures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV

fined as the market value of the Mutual Fund scheme's assets net of its liabilities.V of a scheme is calculated by dividing the market value of scheme's assets by the

number of units issued to the investors.


8/63

VANTAGES OF MUTUAL FUND

folio Diversification

essional management

uction / Diversification of Risk

idity

ibility & Convenience

uction in Transaction cost

ty of regulated environment

ce of schemes

sparency

ADVANTAGE OF MUTUAL FUND

ontrol over Cost in the Hands of an Investor

ailor-made Portfolios

aging a Portfolio Funds

culty in selecting a Suitable Fund Scheme


9/63

TORY OF THE INDIAN MUTUAL FUND INDUSTRYmutual fund industr y in India started in 1963 with the formation of Unit Trust ofa, at the initiative of the Government of India and Reserve Bank. Though the

wth was slow, but it accelerated from the year 1987 when non-UTI players enteredndustry.e past decade, Indian mutual fund industry had seen a dramatic improvement, bothities wise as well as quantity wise. Before, the monopoly of the market had seen anng phase; the Assets Under Management (AUM) was Rs67 billion. The privateor entry to the fund family raised the Aum to Rs. 470 billion in March 1993 and tilll 2004; it reached the height if Rs. 1540 billion.Mutual Fund Industry is obviously growing at a tremendous space with the mutual

industry can be broadly put into four phases according to the development of theor. Each phase is briefly described as under.t Phase 1964-87

Trust of India (UTI) was established on 1963 by an Act of Parliament by therve Bank of India and functioned under the Regulatory and administrative control

he Reserve Bank of India. In 1978 UTI was de-linked from the RBI and thestrial Development Bank of India (IDBI) took over the regulatory andnistrative control in place of RBI. The first scheme launched by UTI was Unit


10/63

me 1964. At the end of 1988 UTI had Rs.6,700 crores of assets underagement.nd Phase 1987-1993 (Entry of Public Sector Funds)

7 marked the entry of non- UTI, public sector mutual funds set up by public sectorks and Life Insurance Corporation of India (LIC) and General Insurance

oration of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fundblished in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab Nationalk Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (JunBank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June

9 while GIC had set up its mutual fund in December 1990.At the end of 1993, theual fund industry had assets under management of Rs.47,004 crores.

d Phase 1993-2003 (Entry of Private Sector Funds) was the year in which the first Mutual Fund Regulations came into being, underh all mutual funds, except UTI were to be registered and governed. The erstwhile

hari Pioneer (now merged with Franklin Templeton) was the first private sectorual fund register ed in July 1993.1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensiverevised Mutual Fund Regulations in 1996. The industry now functions under theI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33

ual funds with total assets of Rs. 1,21,805 crores.rth Phase since February 2003


11/63

ebruary 2003, following the repeal of the Unit Trust of India Act 1963 UTI wasrcated into two separate entities. One is the Specified Undertaking of the Unit Trustndia with assets under management of Rs.29,835 crores as at the end of January, representing broadly, the assets of US 64 scheme, assured return and certain

r schemessecond is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It istered with SEBI and functions under the Mutual Fund Regulations. consolidationgrowth. As at the end of September, 2004, there were 29 funds, which managets of Rs.153108 crores under 421 schemes.


12/63

TEGORIES OF MUTUAL FUND:


13/63

tual funds can be classified as follow :ed on their structure:n-ended fundsestors can buy and sell the units from the fund, at any point

me.

se-ended fundsese funds raise money from investors only once. Therefore,

the offer period, fresh investments can not be made into the fund. If the fund isd on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanleywth Fund). Recently, most of the New Fund Offers of close-ended funds provideddity window on a periodic basis such as monthly or weekly. Redemption of unitsbe made during specified intervals. Therefore, such funds have relatively lowdity.

ed on their investment objective:uity funds

e funds invest in equities and equity related instruments. Withuating share prices, such funds show volatile performance, even losses. However,t term fluctuations in the market, generally smoothens out in the long term, therebying higher returns at relatively lower volatility. At the same time, such funds can

d great capital appreciation as, historically, equities have outperformed all assetes in the long term. Hence, investment in equity funds should be considered for a

od of at least 3-5 years. It can be further classified as:


14/63

ndex fundsthis case a key stock market index, like BSE Sensex or Nifty is

ked. Their portfolio mirrors the benchmark index both in terms of compositionndividual stock weightages.quity diversified funds-

% of the capital is invested in equities spreadingss different sectors and stocks.Dividend yield funds-similar to the equity diversified funds except that theyst in companies offering high dividend yields.

Thematic funds-

st 100% of the assets in sectors which are related throughe theme.An infrastructur e fund invests in power, construction, cements sectors etc.

ector funds-st 100% of the capital in a specific sector. e.g. - A banking sectorwill invest in banking stocks.

ELSSuity Linked Saving Scheme provides tax benefit to the investors.

anced fund

investment portfolio includes both debt and equity. As a result, onisk-return ladder, they fall between equity and debt funds. Balanced funds are the idealal funds vehicle for investors who prefer spreading their risk across various instruments.wing are balanced funds classes:

ebt-oriented funds -stment below 65% in equities.quity-oriented fundsst at least 65% in equities, remaining in debt.


15/63

t fund

y invest only in debt instruments, and are a good option for investorsse to idea of taking risk associated with equities. Therefore, they invest exclusivelyxed-income instruments like bonds, debentures, Government of India securities;money market instruments such as certificates of deposit (CD), commercial paperand call money. Put your money into any of these debt funds depending on your

stment horizon and needs.iquid funds-e funds invest 100% in money market instruments, a largeon being invested in call money market.

ilt funds ST-y invest 100% of their portfolio in government securities of andlls.Floating rate funds -st in short-term debt papers. Floaters invest in debtuments which have var iable coupon rate.

Arbitrage fund-y generate income through arbitrage opportunities due to mis-ng between cash market and derivatives market. Funds are allocated to equities,

vatives and money markets. Higher proportion (around 75%) is put in moneykets, in the absence of arbitrage opportunities.

Gilt funds LT-y invest 100% of their portfolio in long-term governmentrities.


16/63

ncome funds LT-cally, such funds invest a major portion of the portfolio in-term debt papers.MIPs-thly Income Plans have an exposure of 70%-90% to debt and ansure of 10%-30% to equities.FMPs-

d monthly plans invest in debt papers whose maturity is in line withof the fund.


17/63

VESTMENT STRATEGIESystematic Investment Plan:r this a fixed sum is invested each month on a

d date of a month. Payment is made through post dated cheques or direct debitities. The investor gets fewer units when the NAV is high and more units when the

V is low. This is called as the benefit of Rupee Cost Averaging (RCA)ystematic Transfer Plan:r this an investor invest in debt oriented fund andinstructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the

e mutual fund.ystematic Withdrawal Plan:

omeone wishes to withdraw from a mutual fundhe can withdraw a fixed amount each month.


18/63

K V/S. RETURN:


19/63

Chapter 2Company Profile

TRODUCTION TO SBI MUTUAL FUNDFunds Management Pvt. Ltd. is one of the leading fund houses in the

tr y with an investor base of over 4.6 million and over 20 years of rich


20/63

rience in f und management consis tently deliver ing value to its investors.Funds Management Pvt. Ltd. is a joint ventur e between 'The State B ank of

a' one of India's largest banking enterprises, and Socit Gnr ale A ssetagement ( France), one of the w orld's leading f und management companiesmanages over US$ 500 Billion w orldwide.ay the f und house manages over Rs 28500 cr or es of assets and has a diversele of inves tors actively parking their investments acr oss 36 active s chemes.

20 years of oper ation, the f und has launched 38 schemes and successfullyeemed 15 of them, and in the process, has rewarded our investor s withistent retur ns. Schemes of the Mutual Fund have time after timeer for med benchmar k indices, honor ed us with 15 awar ds of per formance

have emerged as the pr ef err ed investment for millions of investors . The trus tosed on us by over 4.6 million investor s is a genuine tribute to our expertisend management.Funds Management Pvt. Ltd. ser ves its vast f amily of inves tors thr ough a

ork of over 130 points of acceptance, 28 I nvestor Service Centres, 46estor S er vice Desks and 56 District Organizers .Mutual is the first bank-sored fund to launch an offshore fund Resurgent India Opportunities Fund.

wth through innovation and stable investment policies is the SBI MF credo.

ODUCTS OF SBI MUTUAL FUNDity schemes


21/63

investments of these schemes w ill pr edominantly be in the stock marketsendeavor will be to pr ovide investor s the opportunity to benefit fr om theer r eturns w hich stock markets can provide. However they ar e also exposedhe volatility and attendant r isks of stock mar kets and hence should been only by such investors who have high r isk taking capacities and ar eng to think long ter m. Equity Funds include diversif ied Equity Funds,or al Funds and Index Funds. Diver sified Equity Funds inves t in var iousks across diff er ent sector s w hile sectoral f unds which are specialized Equityds restrict their investments only to s hares of a par ticular sector and hence,r iskier than Diver sified Equity Funds . I ndex Funds invest passively only instocks of a particular index and the per formance of such funds move w ith

movements of the index.gnum COM MA Fundgnum Equity Fundgnum Global Fundgnum Index Fundgnum Midcap Fundgnum Multicap Fundgnum Multiplier plus 1993gnum Sectoral Funds Umbr ellaFU- Emerging B usiness FundFU- IT F und


22/63

FU- Phar ma FundFU- Contr a FundFU- FMC G Fund

Arbitr age Opportunities FundB lue chip FundI nf rastructure F und - Ser ies IM agnum Taxgain Scheme 1993O NE India FundTAX ADVANTAGE FU ND - SER IES I

t schemest Funds invest only in debt instr uments s uch as Corpor ate B onds,

ernment Securities and Money Mar ket instruments either completelyding any investments in the stock mar kets as in I ncome F unds or Gilt Fundsaving a small exposur e to equities as in Monthly Income Plans or C hildren's. Hence they ar e safer than equity funds. At the s ame time the expectedrns fr om debt funds would be lower. Such inves tments are advis able f or the

k-aver se investor and as a part of the investment portfolio f or other investor s.

gnum Childrens benef it Plan

num G ilt Fund


23/63

num I ncome Fund

num I nsta C ash Fund

num Income Fund- Floating Rate Plan

num I ncome Plus F und

num I nsta C ash Fund -Liquid Floater Plan

num M onthly I ncome P lan

num M onthly I ncome P lanater

num N RI Investment Fund

P remier Liquid Fund

LANCED SCHEMESnum Balanced Fund invests in a mix of equity and debt investments. Hence

ar e less risky than equity funds, but at the s ame time provide

mensurately lower r eturns. They provide a good investment opportunity tostors w ho do not w ish to be completely exposed to equity markets, but ising f or higher r eturns than thos e pr ovided by debt funds.

num Balanced Fund


24/63

MPETITORS OF SBI MUTUAL FUNDe of the main competitors of SB I Mutual Fund in Dehr adoon are as

ows:CIC I Mutual Fund

eliance Mutual FundUTI Mutual Fund

ir la Sun Life Mutual Fundotak Mutual Fund

HDFC Mutual Fund

daram M utual Fund

LIC Mutual Fundr incipalanklin Templeton

WARDS AND ACHIEVEMENTS


25/63


26/63

Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award - 8s, CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-

6) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award7 and 5 Awards for our schemes.


27/63


28/63


29/63

Chapter - 3Objectives and scope


30/63

JECTIVES OF THE STUDYfind out the Preferences of the investors for Asset Management

mpany.know the Preferences for the portfolios.

o know why one has invested or not invested in SBI Mutual fundfind out the most preferred channel.

o find out what should do to boost Mutual Fund Industry.


31/63

ope of the studyg boom has been witnessed in Mutual Fund Industr y in resent times. A largeber of new players have entered the market and trying to gain market share in thisdly improving market.research was carried on in Dehradoon. I had been sent at one of the branch of Statek of India Dehradoon where I completed my Project work. I surveyed on myect Topic A study of preferences of the Investors for investment in Mutual Fundhe visiting customers of the SBI Boring Canal Road Branch.

study will help to know the preferences of the customers, which company,folio, mode of investment, option for getting return and so on they prefer. This

ect report may help the company to make further planning and strategy.


32/63

Chapter 4Research Methodology


33/63

SEARCH METHODOLOGYreport is based on primary as well secondary data, however primary data

ction was given more importance since it is overhearing factor in attitude studies.of the most important users of research methodology is that it helps in identifyingproblem, collecting, analyzing the required information data and providing annative solution to the problem .It also helps in collecting the vital information thatquired by the top management to assist them for the better decision making bothto day decision and critical ones.

a sources:arch is totally based on primary data. Secondary data can be used only for theence. Research has been done by primary data collection, and primary data has

collected by interacting with various people. The secondary data has beencted through various journals and websites.

ation of Study:study was carried out for a period of two months, from 30to 302008.


34/63

mpling:pling procedure:sample was selected of them who are the customers/visitors of State Bank if India,ng Canal Road Branch, irrespective of them being investors or not or availing theces or not. It was also collected through personal visits to persons, by formal and

rmal talks and through filling up the questionnaire prepared. The data has beenyzed by using mathematical/Statistical tool.ple size:sample size of my project is limited to 200 people only. Out of which only 120le had invested in Mutual Fund. Other 80 people did not have invested in Mutual

d.

ple design:has been presented with the help of bar graph, pie charts, line graphs etc.


35/63

mitation:e of the persons were not so responsive.ibility of error in data collection because many of investors may have notn actual answers of my questionnaire.ple size is limited to 200 visitors of State Bank of India , Boring Canal Road

nch, Dehradoon out of these only 120 had invested in Mutual Fund. Theple.may not adequately represent the whole market.e respondents were reluctant to divulge personal infor mation which cant the validity of all responses.

research is confined to a certain part of Dehradoon.


36/63

Chapter 5Data Analysis

&nterpretation


37/63

ALYSIS & INTERPRETATION OF THE DATAa) Age distribution of the Investors of DehradoonGroup 50of8 30 24 20 16stors

0 16

0 31-35 36-40 41-45 46-50 >50group of the Investors

rpretation:


38/63

ording to this chart out of 120 Mutual Fund investors of Dehradoon the most are inge group of 36-40 yrs. i.e. 25%, the second most investors are in the age group of5yrs i.e. 20% and the least investors are in the age group of below 30 yrs.

Educational Qualification of investors of Dehradooncational Qualification Number of Investors

duate/ Post Graduate 88er Graduate 25rs 7l 120


39/63

duate/Post Graduate Under Graduate Others

rpretation:


40/63

of 120 Mutual Fund investors 71% of the investors in Dehradoon areduate/Post Graduate, 23% are Under Graduate and 6% are others (under HSC).

Occupation of the investors of Dehradoonupation No. of Investorst. Service 30Service 45ness 35culture 4rs 6

5

.

ness Agriculture Othersiceice

upation of the customers


41/63

rpretation:ccupation group out of 120 investors, 38% are Pvt. Employees, 25% arenessman, 29% are Govt. Employees, 3% are in Agriculture and 5% are inrs.

Monthly Family Income of the Investors of Dehradoon.ome Group No. of Investors0,000

01-15,000

01-20,000

01-30,000

000

0 10-15 15-20 20-30 >30me Group of the Investorsn (Rs. in Th.)

rpretation:e Income Group of the investors of Dehradoon, out of 120 investors, 36%stors that is the maximum investors are in the monthly income group Rs.


42/63

01 to Rs. 30,000, Second one i.e. 27% investors are in the monthlyme group of more than Rs. 30,000 and the minimum investors i.e. 4%n the monthly income group of below Rs. 10,000

Investors invested in different kind of investments.d of Investments No. of Respondents

ng A/C

ed deposits 148rance 152ual Fund 120

office (NSC) 75res/Debentures 50d/Silver 30l Estate 65

100 150 200 250f Respondents


43/63

rpretation:m the above graph it can be inferred that out of 200 people,% people have invested in Saving A/c, 76% in Insurance, 74% in Fixed Deposits,

in Mutual Fund, 37.5% in Post Office, 25% in Shares or Debentures, 15% ind/Silver and 32.5% in Real Estate.

reference of factors while investingors (a) Liquidity (b) Low Risk (c) High Return (d) Trustof0 64 36pondents

%%%%uidity Low Risk High Return Trust

rpretation:


44/63

of 200 People, 32% People prefer to invest where there is High Return, 30% prefervest where there is Low Risk, 20% prefer easy Liquidity and 18% prefer Trust

Awareness about Mutual Fund and its Operationsponse Yes Noof Respondents 135 65

No


45/63

rpretation:m the above chart it is inferred that 67% People are aware of Mutual Fund and itsations and 33% are not aware of Mutual Fund and its operations.

Source of information for customers about Mutual Fundrce of information No. of Respondentsertisement 18Group 25

k 30ncial Advisors 62

5 30

ertisementPeer Group Bank Financialsors

ce of Information

rpretation:

m the above chart it can be inferred that the Financial Advisor is the mostortant source of information about Mutual Fund. Out of 135 Respondents, 46%w about Mutual fund Through Financial Advisor, 22% through Bank, 19%ugh Peer Group and 13% through Advertisement.


46/63

estors invested in Mutual Fundponse No. of Respondents

12080l 200

rpretation:

of 200 People, 60% have invested in Mutual Fund and 40% do not have investedutual Fund.


47/63

son for not invested in Mutual Fundson No. of Respondents

Aware

her Risk

any Specific Reason

% 6%

%Aware Higher Risk Not Any

rpretation:of 80 people, who have not invested in Mutual Fund, 81% are not aware of Mutuald, 13% said there is likely to be higher risk and 6% do not have any specific reason.

nvestors invested in different Assets Management Co. (AMC)


48/63

me of AMC No. of Investors

MF

FC

ance

CI Prudential

ak

rsers

FC

ak

MF

CI

ance

40 60 80of Investors

rpretation:ehradoon most of the Investors preferred UTI and Reliance Mutual Fund. Out of

Investors 62.5% have invested in each of them, only 46% have invested in SBIMF,in ICICI Prudential, 37.5% in Kotak and 25% in HDFC.


49/63

Reason for invested in SBIMFson No. of Respondentsociated with SBI 35er Return 5nts Advice 15

ociated with SBI Better Return Agents Advice

rpretation:of 55 investors of SBIMF 64% have invested because of its association with

nd SBI, 27% invested on Agents Advice, 9% invested because of better return.

Reason for not invested in SBIMF


50/63

son No. of RespondentsAware 25Return 18

nts Advice 22

Aware Less Return Agent's Advice

rpretation:of 65 people who have not invested in SBIMF, 38% were not aware with SBIMF,do not have invested due to less return and 34% due to Agents Advice.

Preference of Investors for future investment in Mutual Fundme of AMC No. of Investors

MF

FC

ance

CI Prudential


51/63

ak

rsers

ak

CI Prudential

ance

FC

MF

40 60 80 100of Investors

rpretation:of 120 investors, 68% prefer to invest in Reliance, 67% in ICICI Prudential, 63%

BIMF, 62.5% in Others, 50% in Kotak, 37.5% in UTI and 29% in HDFC Mutuald.

Channel Preferred by the Investors for Mutual Fund Investmentnnel Financial Advisor Bank AMCof Respondents 72 18 30


52/63

%%%

ncial Advisor Bank AMC

rpretation:of 120 Investors 60% preferred to invest through Financial Advisors, 25% throughC and 15% through Bank.

Mode of Investment Preferred by the Investorse of Investment One time Investment Systematic Investment Plan (SIP)of Respondents 78 42


53/63

time Investment SIP

rpretation:of 120 Investors 65% preferred One time Investment and 35 % Preferred throughematic Investment Plan.

Preferred Portfolios by the Investors

tfolio No. of Investorsty 56t 20nced 44


54/63

ity Debt Balance

rpretation:m the above graph 46% preferred Equity Portfolio, 37% preferred Balance and 17%erred Debt portfolio

Option for getting Return Preferred by the Investorson Dividend Payout Dividend

wthvestment

of Respondents 25 10 85


55/63

%%%dend Payout Dividend Reinvestment Growth

rpretation:m the above graph 71% preferred Growth Option, 21% preferred Dividend Payout8% preferred Dividend Reinvestment Option.

Preference of Investors whether to invest in Sectoral Fundsponse No. of Respondents25

95


56/63

%%No

rpretation:of 120 investors, 79% investors do not prefer to invest in Sectoral Fund becausee is maximum risk and 21% prefer to invest in Sectoral Fund.

Chapter 6


57/63

Findings andConclusion

ndingsDehradoon in the Age Group of 36-40 years were more in

mbers. The second most Investors were in the age group of 41-45rs and the least were in the age group of below 30 years.

Dehradoon most of the Investors were Graduate or Post Graduatebelow HSC there were very few in numbers.


58/63

Occupation group most of the Investors were Govt. employees, theond most Investors were Private employees and the least wereciated with Agriculture.

amily Income group, between Rs. 20,001- 30,000 were more inmbers, the second most were in the Income group of more than30,000 and the least were in the group of below Rs. 10,000.ut all the Respondents had a Saving A/c in Bank, 76% Investedixed Deposits, Only 60% Respondents invested in Mutual fund.stly Respondents preferred High Return while investment, theond most preferred Low Risk then liquidity and the least preferredst.y 67% Respondents were aware about Mutual fund and itsrations and 33% were not.ong 200 Respondents only 60% had invested in Mutual Fund and

% did not have invested in Mutual fund.of 80 Respondents 81% were not aware of Mutual Fund, 13%there is not any specific reason for not invested in Mutual Fund6% told there is likely to be higher risk in Mutual Fund.


59/63

st of the Investors had invested in Reliance or UTI Mutual Fund,CI Prudential has also good Brand Position among investors,MF places after ICICI Prudential according to the Respondents.

of 55 investors of SBIMF 64% have invested due to itsciation with the Brand SBI, 27% Invested because of Advisorsice and 9% due to better return.

st of the investors who did not invested in SBIMF due to notare of SBIMF, the second most due to Agents advice and rest dueess Return.Future investment the maximum Respondents preferred Relianceual Fund, the second most preferred ICICI Prudential, SBIMFbeen preferred after them.

% Investors preferred to Invest through Financial Advisors, 25%ugh AMC (means Direct Investment) and 15% through Bank.

% preferred One Time Investment and 35% preferred SIP out ofh type of Mode of Investment.

most preferred Portfolio was Equity, the second most wasance (mixture of both equity and debt), and the least preferredfolio was Debt portfolio.


60/63

ximum Number of Investors Preferred Growth Option for returns,second most preferred Dividend Payout and then Dividend

nvestment.st of the Investors did not want to invest in Sectoral Fund, only

% wanted to invest in Sectoral Fund.

onclusionning a successful Mutual Fund requires complete understanding of the

uliarities of the Indian Stock Market and also the psyche of the smallstors. This study has made an attempt to understand the financial


61/63

avior of Mutual Fund investors in connection with the preferences ofnd (AMC), Products, Channels etc. I observed that many of peoplee fear of Mutual Fund. They think their money will not be secure inual Fund. They need the knowledge of Mutual Fund and its related

ms. Many of people do not have invested in mutual fund due to lack ofreness although they have money to invest. As the awareness andme is growing the number of mutual fund investors are also growing.

and plays important role for the investment. People invest in thosempanies where they have faith or they are well known with them. Theremany AMCs in Dehradoon but only some are performing well due tond awareness. Some AMCs are not performing well although some ofschemes of them are giving good return because of not awarenessut Brand. Reliance, UTI, SBIMF, ICICI Prudential etc. they are wellwn Brand, they are performing well and their Assets Undernagement is larger than others whose Brand name are not well knownPrinciple, Sunderam, etc.ribution channels are also important for the investment in mutual fund.

ancial Advisors are the most preferred channel for the investment inual fund. They can change investors mind from one investment option


62/63

thers. Many of investors directly invest their money through AMCause they do not have to pay entry load. Only those people investctly who know well about mutual fund and its operations and thosee time.


63/63

Final Project on Mutual Funds

Documents

Transcript of Final Project on Mutual Funds