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Scope Of The Study:
Indian Stock market has undergone tremendous changes over the years. Investment in Mutual
Funds has become a major alternative among Investors. The project has been carried out to have
an overview of Mutual Fund Industry and to understand investors perception about Mutual
Funds in the context of their trading preference, explore investors risk perception & find outtheir preference over Top Mutual funds.
Objective Of The Study:
To study the Mutual funds industry in detail
To study the Investment procedure in Mutual funds
To study in brief various Mutual funds promoted by different AMC
To study the investors Preference regarding Investment in Mutual Funds
RESEARCH METHODOLOGY
The methodology used was data collection using Schedule.
Secondary data was collected from Internet and Books. Primary Data was collected through
survey among existing clients along with the other investors. The procedure adopted to select
sample was simple random sampling
The research design is analytical in nature. A questionnaire was prepared and distributed to
Investors. The investors profile is based on the results of a questionnaire that the Investors
completed. The Sample consists of 60 investors from various brokers premises. The target
customers were Investors who are investing in mutual fund. The area of survey was restricted to
people residing in chikamagalore.
SOURCE OF DATA COLLECTION
Both Primary and Secondary data are required
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Primary data
Is the first hand information collected directly from the respondents . The tool used here is
questionnaire. Primary Data is collected through survey among existing clients along with the
other investors
Secondary data
Is collected through internet , books
I had prepared a questionnaire for collecting information about second part of the project.
Sample size: Sample size for the survey is 60.
Breakup of the sample
20 Service Class
20 Business class
20 Professionals
Age Group: Between 25 to 55 years of age
Research Instrument: - Questionnaire
Type of sampling: Stratified Random &Convenience sampling technique is used for collecting
the primary data. The data is collected only from the respondents of Chikmagalore who have
invested in Mutual Funds.
Data Analysis Procedures
The major focus is on the results of the questionnaire survey.
(1) I will screen all the questionnaires in order to gain a first overview over the data gathered.
(2) The analysis of the data generated during the study with the help of various statistical tools
like bar charts & pie charts.
(3) At the last I will draw conclusion regarding customers preferences and satisfaction aboutmutual funds.
Limitations:
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Management System Standard BS 7799-2-2002 certification for its BSE On-line Trading System
(BOLT).
BSE continues to innovate. In recent times, it has become the first national level stock exchange
to launch its website in Gujarati and Hindi to reach out to a larger number of investors. It hassuccessfully launched a reporting platform for corporate bonds in India christened the ICDM or
Indian Corporate Debt Market and a unique ticker-***-screen aptly named 'BSE Broadcast'
which enables information dissemination to the common man on the street.
In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic
Reporting System) to facilitate information flow and increase transparency in the Indian capital
market. While the Directors Database provides a single-point access to information on the boards
of directors of listed companies, the ICERS facilitates the corporates in sharing with BSE their
corporate announcements.
BSE also has a wide range of services to empower investors and facilitate smooth transactions:
Investor Services: The Department of Investor Services redresses grievances of investors. BSE
was the first exchange in the country to provide an amount of Rs.1 million towards the investor
protection fund; it is an amount higher than that of any exchange in the country. BSE launched a
nationwide investor awareness programme- 'Safe Investing in the Stock Market' under which 264
programmes were held in more than 200 cities.
The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen
based trading in securities. BOLT is currently operating in 25,000 Trader Workstations located
across over 450 cities in India.
BSEWEBX.com: In February 2001, BSE introduced the world's first centralized exchange-based
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Internet trading system, BSEWEBX.com. This initiative enables investors anywhere in the world
to trade on the BSE platform.
Surveillance: BSE's On-Line Surveillance System (BOSS) monitors on a real-time basis the
price movements, volume positions and members' positions and real-time measurement of
default risk, market reconstruction and generation of cross market alerts.
BSE Training Institute: BTI imparts capital market training and certification, in collaboration
with reputed management institutes and universities. It offers over 40 courses on various aspects
of the capital market and financial sector. More than 20,000 people have attended the BTI
programs.
Awards
The World Council of Corporate Governance has awarded the Golden Peacock Global CSR
Award for BSE's initiatives in Corporate Social Responsibility (CSR). The Annual Reports and
Accounts of BSE for the year ended March 31, 2006 and March 31 2007 have been awarded the
ICAI awards for excellence in financial reporting.
The Human Resource Management at BSE has won the Asia - Pacific HRM awards for its
efforts in employer branding through talent management at work, health management at work
and excellence in HR through technology Drawing from its rich past and its equally robust
performance in the recent times, BSE will continue to remain an icon in the Indian capital
market.
Financial Services Industry
Financial services organizations are striving to achieve increasingly ambitious profit and
growth targets against a background of heightened risk, regulation and market pressures. As of
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2004, the financial services industry represented 20% of the market capitalization of the S&P
500 in the United States.
Financial services refer to services provided by the finance industry. The finance industry
encompasses a broad range of organizations that deal with the management of money. Among
these organizations are banks, credit card companies, insurance companies, consumer finance
companies,stock brokerages,investment funds and some government sponsored enterprises.
Customer needs and expectations are evolving in the face of increasing personal wealth,
more private funding of pensions and healthcare and the desire for ever more accessible and
personalized financial products and services. In turn, intense competition has squeezed industry
margins and forced organizations to cut costs while still seeking to enhance the quality of clientchoice and service. The battle for talent is also heating up as companies seek to enhance
innovation, customer loyalty and investment returns
The corollary of this market evolution is increasing risk as products become more complex,
organisations more diffuse and the business environment ever more uncertain. Regulation is also
tightening in the wake of public and government pressure for improved governance,
transparency and accountability.
In this environment, the winners will be companies that can turn the challenges into
opportunities to build stronger and more enduring customer relationships; sharpen process
efficiency; unlock talent and creativity; use improved risk management processes to deliver more
sustainable returns; and use new regulatory demands as a catalyst for strengthening the business
and enhancing market confidence.
Organizations will also need to identify and concentrate on core competencies where they can
exert maximum competitive advantage, be this a particular product, service, process or
geographical territory. For some this will require a strategic re-orientation towards becoming a
specialist niche provider. Even larger groups will need to differentiate their offering and by
implication the associated brand
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2. The coming together of buyers and sellers to trade financial securities. i.e. stocks and shares
are traded between buyers and sellers in a number of ways including: the use of stock
exchanges; directly between buyers and sellers etc.
Types of Financial Markets
The financial markets can be divided into different subtypes:
Capital Market which is the market forsecurities, where companiesand governments can
raise long term funds. The capital market includes the stock market and thebond market.
Financial regulators, such as theU.S. Securities and Exchange Commission, oversee the
capital markets in their designated countries to ensure that investors are protected
against fraud. The capital markets consist of the primary market, where new issues are
distributed to investors, and thesecondary market, where existing securities are traded.
CAPITAL MARKETS WHICH CONSIST OF:
Stock Markets :- which provide financing through the issuance of shares orcommon stock,
and enable the subsequent trading thereof.
Bond Markets :- which provide financing through the issuance ofBonds, and enable the
subsequent trading thereof.
Commodity Markets:- which facilitate the trading of commodities.
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Sharekhan won the award by vote of customer around the country, as part of India largest
consumer study cover 7000 respondents 21 product and service across 21 major cities. the study
initiated by awaaz India first dedicated consumer channel and member of the world wide CNBC
network and ac Nielsen org marg was aimed at understanding the brand preference of the
consumer and to decipher what are the most important loyalty criteria for the consumer in each
vertical
In order to select the award recipient spontaneous responses rather than prompted responses were
garnered with an intention to glean unbiased preferences.
The reason behind the preferences for brands were unveiled by examines the following:
Tangible features of product /service
Softer, intangible features like imagery, equity driving preference
Tactical measures such as promotional /pricing schemes
The India Infoline group, comprising the holding company, India Infoline Limited and itswholly-owned subsidiaries, straddle the entire financial services space with offerings rangingfrom Equity research, Equities and derivatives trading, Commodities trading, PortfolioManagement Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other smallsavings instruments to loan products and Investment banking. India Infoline also owns and
manages the websites http://www.indiainfoline.com/and http://www.5paisa.com/
The company has a network of 758 business locations (branches and sub-brokers) spread across346 cities and towns. It has more than 800,000 customers
India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both
the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and
Portfolio Management Services. It offers broking services in the Cash and Derivatives segments
of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL
as a depository participant, providing a one-stop solution for clients trading in the equities
market. It has recently launched its Investment banking and Institutional Broking business.
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Religare Enterprises Limited (REL), is one of the leading integrated financial services groups of
India. RELs businesses are broadly clubbed across three key verticals, the Retail, Institutional
and Wealth spectrums, catering to a diverse and wide base of clients.
REL offers a multitude of investment options and a diverse bouquet of financial services and has
a pan India reach in more than 1550 locations across more than 460 cities and towns.
As part of its recent initiatives, the group has also started expanding globally and has acquired
Londons oldest brokerage & investment firm, Hichens, Harrison & Co. plc. Following this
acquisition Religare now proposes to operate out of 10 countries. With a view to expand,
diversify and introduce offerings benchmarked against global best practices, Religare has entered
into joint ventures with the global major- Aegon for its Asset Management and Life Insurance
businesses in India.
Religares wealth management subsidiary is now rechristened as Religare Macquarie Wealth
Management Limited, following a joint venture with the Australia based financial services
major, Macquarie Bank. Religare has also partnered with Vistaar Entertainment to launch Indias
first Film Fund.
The vision is to build Religare as a globally trusted brand in the financial services domain and
present it as the Investment Gateway of India. All employees of the group guided by an
experienced and professional management team are committed to providing financial care,
backed by the core values of diligence and transparency.
Indiabulls is Indias leading Financial Services and Real Estate company having over 640
branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers
with its wide range of financial services and products from securities, derivatives trading,
depositary services, research & advisory services, consumer secured & unsecured credit, loan
against shares and mortgage & housing finance. With around 4000 Relationship Managers,Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group
companies has entered Indian Real Estate business in 2005. It is currently evaluating several
large-scale projects worth several hundred million dollars.
Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay StockExchange and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around
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Strength :
A well-known name in Financial
Companies.
Wide Experience in this field.
Dedicated Employees.
Tie up with many financial institutions.
Ever growing distribution network.
Good Infrastructure.
Experienced Fund Managers.
Easy access to the branch.
Weakness :
No access to rural market.
No direct link between investors & the
AMC.
Opportunity :
Positive outlook of people towards mutual
funds.
Untapped market.
Threat :
Highly volatile and uncertain market
conditions.
Large number of financial giants present in
this field.
Mutual Funds
Structure of the Indian Mutual Fund industry
The largest categories of Mutual Funds are the ones floated by the private sector and by Foreign
Asset Management Companies. The largest of these are Prudential ICICI AMC and Birla Sun
Life AMC. The aggregate corpus of assets managed by this category of AMCs is in excess of
Rs.350 bn.
Earlier the Indian Mutual Fund industry was dominated by the Unit Trust of India which has a
total corpus of Rs.700 bn collected from more than 20 million investors. The UTI has many
funds/schemes in all categories i.e. equity, balanced, income etc. with some being open-ended
and some being closed-ended. The Unit Scheme 1964 commonly referred to as US 64, which is a
balanced fund, is the biggest scheme with a corpus of about Rs.200 bn. UTI was floated by
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their portfolio by investing in instruments of varied maturity profiles. Since there is no penalty
on pre-mature withdrawal, as in the cases of fixed deposits, debt funds provide enough liquidity.
Moreover, mutual funds are better placed to absorb the fluctuations in the prices of the securities
as a result of interest rate variation and one can benefits from any such price movement.
Next come the risk takers. Risk takers by their very nature, would not be averse to investing in
high-risk avenues. Capital markets find their fancy more often than not, because they have
historically generated better returns than any other avenue, provided, the money was judiciously
invested. Though the risk associated is generally on the higher side of the spectrum, the return-
potential compensates for the risk attached.
Capital markets interest people, albeit not all for there are several problems associated. First
issue is that of expertise. While investing directly into capital market one has to be analytical
enough to judge the valuation of the stock and understand the complex undertones of the stock.One needs to judge the right valuation for exiting the stock too. It is very difficult for a small
investor to keep track of the movements of the market. Entrusting the job to experts, who watch
the trends of the market and analyze the valuations of the stocks will solve this problem for an
investor. Mutual funds specialize in identification of stocks through dedicated experts in the field
and this enables them to pick stocks at the right moment. Sector funds provide an edge and
generate good returns if the particular sector is doing well.
Next problem is that of funds/money. A single person cant invest in multiple high-priced stocks
for the sole reason that his pockets are not likely to be deep enough. This limits him from
diversifying his portfolio as well as benefiting from multiple investments.
Here again, investing through MF route enables an investor to invest in many good stocks and
reap benefits even through a small investment. This not only diversifies the portfolio and helps in
generating returns from a number of sectors but reduces the risk as well. Though identification of
the right fund might not be an easy task, availability of good investment consultants and
counselors will help investors take informed decision.
How are the Mutual Funds Structured?
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Conditions under which an AMC can be taken over:
SEBI approval is required for the change of ownership and unit holders have to be informed of
the takeover.
Scheme take over:
If an existing mutual fund scheme is taken over by another AMC, it is called as scheme take
over. The two mutual funds continue to exist. Trustee and SEBI approval and notification of the
unit holders are required for scheme take over.
CUSTODIAN
A custodian handles the investment back office of a mutual fund. Its responsibilities includereceipt and delivery of securities, collection of income, distribution of dividends and segregation
of assets between the schemes. It also track corporate actions like bonus issues, right offers, offer
for sale, buy back and open offers for acquisition. The sponsor of a mutual fund cannot act as a
custodian to the fund. This condition, formulated in the interest of investors, ensures that the
assets of a mutual fund are not in the hands of its sponsor. For example, Deutsche Bank is a
custodian, but it cannot service Deutsche Mutual Fund, its mutual fund arm.
BROKERS
Role of Brokers in a Mutual Fund:
They enable the investment managers to buy and sell securities.
Brokers are the registered members of the stock exchange.
They charge a commission for their services.
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intermediaries cannot be ignored. It is just that Mutual Funds are going to change the way banks
do business in the future
TYPES OF MUTUAL FUNDS
Mutual fund schemes may be classified on the basis of its structure and its investment objective.
By Structure:
Open-ended Funds
An open-end fund is one that is available for subscription all through the year. These do not have
a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV")
related prices. The key feature of open-end schemes is liquidity.
Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years.
The fund is open for subscription only during a specified period. Investors can invest in the
scheme at the time of the initial public issue and thereafter they can buy or sell the units of the
scheme on the stock exchanges where they are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to the Mutual Fund
through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one
of the two exit routes is provided to the investor.
Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They are open for
sale or redemption during pre-determined intervals at NAV related prices.
By Investment Objective:
Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such
schemes normally invest a majority of their corpus in equities. It has been proven that returns
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from stocks, have outperformed most other kind of investments held over the long term. Growth
schemes are ideal for investors having a long-term outlook seeking growth over a period of time.
Income Funds
The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures and Government
securities. Income Funds are ideal for capital stability and regular income.
Balanced Funds
The aim of balanced funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents. In a rising stock market, the NAV
of these schemes may not normally keep pace, or fall equally when the market falls. These are
ideal for investors looking for a combination of income and moderate growth.
Money Market Funds
The aim of money market funds is to provide easy liquidity, preservation of capital and moderate
income. These schemes generally invest in safer short-term instruments such as treasury bills,
certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes
may fluctuate
depending upon the interest rates prevailing in the market. These are ideal for Corporate and
individual investors as a means to park their surplus funds for short periods.
Load Funds
A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or
sell units in the fund, a commission will be payable. Typically entry and exit loads range from
1% to 2%. It could be worth paying the load, if the fund has a good performance history.
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The most important relationship to understand is the risk-return trade-off. Higher the risk
greater the returns/loss and lower the risk lesser the returns/loss.
Hence it is up to you, the investor to decide how much risk you are willing to take. In order to do
this you must first be aware of the different types of risks involved with your investment
decision.
MARKET RISK
Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting the
market in general lead to this. This is true, may it be big corporations or smaller mid-sized
companies. This is known as Market Risk. A Systematic Investment Plan (SIP) that works on
the concept of Rupee Cost Averaging (RCA) might help mitigate this risk.
CREDIT RISK
The debt servicing ability (may it be interest payments or repayment of principal) of a company
through its cashflows determines the Credit Risk faced by you. This credit risk is measured byindependent rating agencies like CRISIL who rate companies and their paper. An AAA rating
is considered the safest whereas a D rating is considered poor credit quality. A well-diversified
portfolio might help mitigate this risk.
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Escorts Mutual Fund
Escorts Mutual Fund was setup on April 15, 1996 with Escorts Finance Limited as its sponsor.
The Trustee Company is Escorts Investment Trust Limited. Its AMC was incorporated on
December 1, 1995 with the name Escorts Asset Management Limited.
Alliance Capital Mutual Fund
Alliance Capital Mutual Fund was setup on December 30, 1994 with Alliance Capital
Management Corp. of Delaware (USA) as sponsorer. The Trustee is ACAM Trust Company Pvt.
Ltd. and AMC, the Alliance Capital Asset Management India (Pvt.) Ltd. with the corporateoffice in Mumbai.
Benchmark Mutual Fund
Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services Pvt. Ltd. as
the sponsorer and Benchmark Trustee Company Pvt. Ltd. as the Trustee Company. Incorporated
on October 16, 2000 and headquartered in Mumbai, Benchmark Asset Management Company
Pvt. Ltd. is the AMC.
Canbank Mutual Fund
Canbank Mutual Fund was setup on December 19, 1987 with Canara Bank acting as the sponsor.
Canbank Investment Management Services Ltd. incorporated on March 2, 1993 is the AMC. The
Corporate Office of the AMC is in Mumbai.
Chola Mutual Fund
Chola Mutual Fund under the sponsorship of Cholamandalam Investment & Finance Company
Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee Companyand AMC is Cholamandalam AMC Limited.
LIC Mutual Fund
Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It contributed
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Lack of knowledge about m utual funds
Enjoys investing in other options
No trust over the fund managers
Reason for not investing in mutual funds
Pies sh ow counts
no
12 out of 60 total respondents say they are not investing their money in mutual fund the main
reason behind it they enjoys investing in other options except this investors didnt have trust over
the fund manager of the AMC companies . And very few respondents says they have lack of
knowledge about mutual funds.
3. Please rank the following investment instruments according to your preference. (On the
basis of risk and return concept)
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Preference for fixed instruments Case Processing Summary
Cases
Valid Missing TotalN Percent N Percent N Percent
Respondent's
occupation *Investment prefrence
for fixed instrument
57 91.9% 5 8.1% 62 100.0%
Respondent's occupation * Investment prefrence for fixed instrument Crosstabulation
Count
Investment prefrence for fixed
instrument Total
Respondent's
occupation
1st
prefrence
2nd
preference
3rd
prefrence
1st
prefrence
Job 8 6 6 20Business 4 5 9 18Professional 7 3 9 19
Total 19 14 24 57
Respondent's occupation
ProfessionalBusinessJob
Count
10
8
6
4
2
0
Bar Chart
3rd prefrence
2nd prefrence
1st prefrence
Investment prefrence
for fixed instrument
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Respondent's occupation
ProfessionalBusinessJob
Count
12
10
8
6
4
2
0
Bar Chart
3rd prefrence
2nd prefrence
1st prefrence
Investment prefrencefor mutual funds
Above graph suggests that the respondents who are in the job or they are professional person the
ratio of giving 1st preference to mutual fund is same where as the ratio of the respondents who
are doing business is more . All the three type of respondents wants to earn some good return so
they choose mutual fund as their 1st preference.
6. Please rank the following investment instruments according to your preference. (On the
basis of risk and return concept)
Respondents preference for direct equity
Case Processing Summary
Cases
Valid Missing TotalN Percent N Percent N Percent
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Nowadays everybody have television at home and it became most used medium of marketing for
any company. And AMC companies uses for advertise their investment product so the
respondents who choose it is very less influential and the respondents who choose it is most
influence for their purchase decision is very low but the ratio of 2 and 3 rank preferred by
respondents is very high.
9. Internet influence for purchase decision
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Bars sh ow counts
Least infuential 2 3 4
Internet influencing factor for purchase
0
5
10
15
20
Count
Usage of internet is increasing very high but it still needs to increase people uses it for their
regular thing but few people manage their investment on internet. Above graph reflects that
respondents choose 1st and 2nd rank are more than other two ranks choose by respondents.
Internet is very convient option for investor and nowadays AMC companies are also promoting
it.
10. Newspaper influencing purchase decision
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Bars sh ow counts
2 3 4 M ost in fluential
Relation influencing factor for purchase
5
10
15
20
25
Count
Above graph reflects that friends/relation is still very influential tool which influence the
purchase decision. People still gave more preference to their friends/relative to ask before
purchasing their investment product.
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up to 15%
15%-25%
25%-35%
More than 35%
Return expected in percentage
Pies sh ow counts
31.03%
53.45%
8.62%
6.90%
If any person invested their money in any option which are available in the market they
obviously look for good return but if they want to earn high return than high risk is also
associated with it as above graph suggests that most of the respondents choose the return
between 15% to 25% because they knows that the current market condition its good return they
can get and very few respondents choose more than 35% return which is actually very difficult to
get.
18. Which type of Mutual funds do you prefer?
Case Processing Summary
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Cases
Valid Missing TotalN Percent N Percent N Percent
Respondent's
occupation * Type of
funds prefer by
repsondents
57 91.9% 5 8.1% 62 100.0%
Respondent's occupation * Type of funds prefer by repsondents Crosstabulation
Count
Type of funds prefer by respondents Total
Open ended
schemes
Close ended
Schemes
Open end
schemes
Respondent's
occupation
Job17 2 19
Business 19 1 20Professional 16 2 18
Total 52 5 57
Respondent'soccupation
ProfessionalBusinessJob
Count
20
15
10
5
0
Bar Chart
CloseendedSchemes
Openendedschemes
Typeof fundsprefer byrepsondents
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1st p refrence
2nd prefrence
4th prefrence5th prefrence
6th prefrence
7th prefrence
8th prefrence
Investment prefrence for sbi mutual fund
Pies sh ow counts
13.33%
10.00%
10.00%
13.33%
10.00%
10.00%
33.33%
Above graph suggest that the respondents gave 8the as their most preferred rank to SBI Mutual
Fund .The reason can be when share market was low SBI gives the bed return compare to other
investment companies. About other ranks its very mix kind of reply from respondents.
23. Rank the following companies according to your investment preference
For HDFC mutual fund
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Directly from the AMCsBrokers only
Brokers/sub b rokers
other sources
Where do they purchase?
Pies show counts
11.11%
72.22%
11.11%
5.56%
Brokers are very important role in the distribution channel of AMCS most of the respondents
buys their investment produts from brokers. This shows the importance of brokers and they also
want to earn money so they gave good service to their investors and in the return they gets good
business. Only few of the investors knows that they can buy directly for AMCS so they can save
their 2.25%.
32. Rank the following feature of the mutual funds that attracts you most.
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(14) Where do you find yourself as a mutual fund investor?
A. Totally ignorant
B. Partial knowledge of mutual funds
C. Aware only of any specific scheme in which you invested
D. Fully aware
(15) What is the major reason for using financial advisors?
A. Want help with asset allocation
B. Dont have time to make my own investment decision
C. To explain various investment options
D. Want to make sure I am investing enough to meet my financial goals
(16) From where do you purchase mutual funds?
A. Directly from the AMCs
B. Brokers only
C. Brokers/ sub-brokers
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D. Other sources
(17) Rank the following feature of the mutual funds that attracts you most.
(Where 1 is most preferable and 4th is less is preferable)
A. Diversification
B. Professional management
C. Reduction in risk and transaction cost
D. Helps in achieving long term goals
(18) According to you which is the most suitable stage to invest in mutual funds?
A. Young unmarried stage
B. Young Married with children stage
C. Married with older children stage
D. Pre-retirement stage
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