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CONTENTS

CHAPTER CONTENTS PAGE

NO

1Introduction

1.1Introduction 1

1.2 Problem statement 4

1.3 Objective of the Study 5

1.4 Scope of the study 6

1.5 Research Methodology 7

1.6 Limitations of the study 9

1.7 Industry Profile 10

1.8 Company Profile 14

2 Review of Literature 16

3 Analysis and Interpretation 23

4 Findings & Suggestions 34

5 Conclusion 35

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INTRODUCTION

Financial markets are the backbone of an economic system and aid allocation of

scarce capital across the productive sectors of the economy. While Indian economic growth is

in evitable, stability and dynamism of the financial system is essential for proper allocation

of resources, which in turn helps sustain a healthy climate for saving and investing. In fact,

the financial system has to be more dynamic than the real system as it has to continuously

respond to the needs of the real economy to help in achieving its goals.

Financial system implies a set of complex and closely connected or interlinked

institutions, agents, practices, markets, transactions and liabilities in the economy. The

financial system is concerned about money, credit and finance. The three terms are intimately

related yet different from each other. Money refers to the current medium of exchange or

means of payment. Credit or loans is the sum of money to be returned, normally with

interest- it refers to a debt of economic unit. Finance is monetary resource comprising of debt

and ownership funds of the state, company or person.

The financial system helps bring together sewers and users of capital. Hence, the

efficiency of financial markets is essential for facilitating optimal intermediation between

households and firms. The Indian financial system has always had a well-defined institutional

structure. While it has been dominated by government sponsored financial institutions and

nationalized commercial banks, in recent years, the private sector has been showing steady

growth in the areas of asset management and financial services. Today India can boast of

having world-comparable capital market and money markets.

1

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A financial market can be defined as a market in which financial assets are created or

transferred. These markets are classified as Money Market and Capital Market.

My project is related to SBI MUTUAL FUND RISK AND RETURN. The reason for

selecting this particular project in SBI MUTUAL FUND since Mutual fund is an emerging

trend in the financial market.

The main objective is to know the rate of risk and return for customers who invest in

mutual funds and also to know more facts, figures, the impact and the fluctuation of mutual

funds in the market.

I had made a comparison study ofSBI MUTUAL FUND with KOTAK MUTUAL FUND

and HDFC MUTUAL FUND.

My primary studies from 50 investors in and around Chennai will provide as a

conclusive proof for my study. The actual duration to complete the project was 2 months.

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FINANCIAL SYSTEM AND FINANCIAL MARKET:

Financial system is essential for proper allocation of resources, which in turn helps

sustain a healthy climate for saving and investing. In fact, the financial system has to be more

dynamic than the real system as it has to continuously respond to the needs of the real

economy to help in achieving its goals.. The financial system is concerned about money,

credit and finance. The three terms are intimately related yet different from each other.

Money refers to the current medium of exchange or means of payment. Credit or loans is the

sum of money to be returned, normally with interest- it refers to a debt of economic unit.

Finance is monetary resource comprising of debt and ownership funds of the state, company

or person.

The financial system has been dominated by government sponsored financial

institutions and nationalized commercial banks, in recent years, the private sector has been

showing steady growth in the areas of asset management and financial services. Today India

can boast of having world-comparable capital market and money markets.

A financial market can be defined as a market in which financial assets are created or

transferred. These markets are classified as Money Market and Capital Market.

Maturity Period, Liquidity, Good Rates of Returns, Trust Worthy and Able

Management.

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Problem statement

The current emerging trend is in financial market that has more attraction in the insurance

and mutual fund market these two ahs growing in the market with high rate in I have taken two

months study to analyze the investor risk and return preferences about the insurance and mutual

fund

Method such as percentage method and weighted average method has used to find out

the effective result.

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OBJECTIVE OF THE STUDY

Primary objectivePrimary objective

1. To analyze the investors preference towards mutual fund.

Secondary objectiveSecondary objective

1. To examine the investors preference towards of various mutual fund scheme.

2. To identify the factor influence to invest in mutual fund.

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PURPOSE & SCOPE OF STUDY

Purpose of the Study

This study draws its parameters on the investors knowledge of investment in general

with prominence to mutual funds. An attempt is also made to know the investors preference

To analyze the opinion of investors about mutual fund and insurance where do they

place them among the various other investment alternatives. What is that they would like

mutual funds to provide them, and what steps do they feel is necessary to rank the mutual

fund as one of the best investment alternative.

Scope of the Study

The study is focused only on mutual fund and insurance that exists in India. This

study seeks to explain a practical approach to evaluate the preference of mutual fund and

investor investments it would serve as a guide for Investment Advisors in advising investors

regarding the Mutual Fund Investments, the returns they would fetch for the risk a client is

willing to take. The study is concentrated on the interest related areas of investors, in risk and

return such as:

1. What is that they see in mutual fund and insurance compared to other available alternative

sources of investment?

2. What is that they would expect from their investment?

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RESEARCH METHODOLOGY

Definition of research:

Research means a Search for Knowledge. Research is a systematic and objective

investigation of a subject or a problem, in order to discover relevant information or principal.

According to Clifford Woody research comprises, defining and redefining problems,

formulating hypothesis or suggested solution; collecting, organizing and evaluating data;

making deductions and reaching conclusions; and at last carefully testing the conclusion to

determine whether or suit the formulated hypothesis.Research can either be exploratory or

descriptive. Exploratory research seeks to extend the boundaries of knowledge in a given

area and with no necessary immediate application to existing problem. Descriptive research

on the other hand, attempts to use existing knowledge as an aid to the solution of some give

problem/set of problems.

Research Design

A research design is purely and simply the framework or plan for a study that guides

the collection and analysis of data. C.R.KOTHARI. It is a blueprint that is followed in

completing the study. This study is basically descriptive in nature. The study mainly relies on

the interrogation or respondents and data available by necessary sources. Thus descriptive

research only suits the purpose appropriately.

Population

The population for this project includes investor in Chennai city.

Sampling Frame:

The sample used for this project was selected by the researcher from the whole

population of investors in Chennai city.

Sample Size

The sample size taken for this project is 150, taken from the whole population of

investors in Chennai city.

Sampling Method:

The sampling method adopted in this project is random sampling.

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Project Steps:

Step 1: This is the phase where primary data was collected by means of judgmental and

convenience sampling.

Research Instrument: The questionnaire was used here as the main source of data collection

from the investor. Due to the busy schedule of the above mentioned, the researchers noted

down the responses of the respondents and got their authorization at the end of the interview.

Step 2: In this phase survey by means of questionnaire was conducted. As the research is

concerned with the income patter and the broad area of saving and instruments the sampling

in the survey was judgmental and convenience sampling. It was based on samples residing in

Chennai.

Step 3: The data collected were scrutinized, transformed into tables and finally were

converted and analyzed with the help of graphs, statistical tools and illustrations.

Statistical tool were used to find out the solution:

Weighted average method = Wxi

Wxi

Percentage analysis = Xt-X(t-1)*100

Xt

LIMITATIONS

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The survey conducted in Chennai only.

The sample size only 150.

The study has taken which is top in the industry like such as SBI, FRANKLIN, UTI,

ICICI SUDARAM CAPITAL, RELIANCE, HSBC and HDFC.

The study has revealed based on only the samples response.

INDUSTRY PROFILE

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The origin of mutual fund industry in India is with the introduction of the concept of

mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the

year 1987 when non-UTI players entered the industry.

In the past decade, Indian mutual fund industry had seen dramatic improvements, both

quality wise as well as quantity wise. Before, the monopoly of the market had seen an ending

phase; the Assets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund

family raised the AUM to Rs. 470bn in March 1993 and till April 2004; it reached the height of

1,540 bn.

Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is

less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the

Indian banking industry.

The main reason of its poor growth is that the mutual fund industry in India is new in

the country. Large sections of Indian investors are yet to be intellectuated with the concept.

Hence, it is the prime responsibility of all mutual fund companies, to market the product

correctly abreast of selling.

The mutual fund industry can be broadly put into four phases according to the

development of the sector. Each phase is briefly described as under.

First Phase - 1964-87.

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Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up

by the Reserve Bank of India and functioned under the Regulatory and administrative control of

the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial

Development Bank of India (IDBI) took over the regulatory and administrative control in place

of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had

Rs.6, 700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds).

Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Canbank

Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund

(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC

in 1990. The end of 1993 marked Rs.47, 004 as assets under management.

Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund

industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in

which the first Mutual Fund Regulations came into being, under which all mutual funds, except

UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with

Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive

and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI

(Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds

setting up funds in India and also the industry has witnessed several mergers and acquisitions. As

at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores.

The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of

other mutual funds.

Fourth Phase - since February 2003

This phase had bitter experience for UTI. It was bifurcated into two separate entities.

One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29, 835 crores (as

on January 2003). The Specified Undertaking of Unit Trust of India, functioning under an

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administrator and under the rules framed by Government of India and does not come under the

purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is

registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of

the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of AUM and with the

setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with

recent mergers taking place among different private sector funds, the mutual fund industry has

entered its current phase of consolidation and growth. As at the end of September 2004, there

were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

GROWTH IN ASSETS UNDER MANAGEMENT

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The major players in the Indian Mutual Fund Industry are:

ABN AMRO MUTUAL FUND

BIRLA SUN LIFE MUTUAL FUND

BANK OF BARODA MUTUAL FUND

HDFC MUTUAL FUND

HSBC MUTUAL FUND

ING VYSYA MUTUAL FUND

PRUDENTIAL ICICI MUTUAL FUND

SAHARA MUTUAL FUND

STATE BANK OF INDIA MUTUAL FUND (SBI)

TATA MUTUAL FUND

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COMPANY PROFILE

The Company

ITI FSL is one of the countrys fastest growing integrated financial services organizations

backed by a reputed and unblemished track record of almost 60 years.

Promoted by Investment Trust of India, ITI FSL has been recently acquired by Mr G.S.

Ganesh who also heads the Advisory firm, INGA Advisors Private Limited. With proven

experience in Financial Services, G.S. Ganesh - a professional with keen business acumen and a

career spanning over 20 years in the field macro-directs ITI FSL.

Managed by experienced professionals dedicated to high levels of excellence and

uncompromising standards of integrity, ITI FSLs mission is to deliver Value with commitment.

Emerging as one of the front-line Brokerage Houses and a dominant force in the Distribution

arena we are continuously engaged in the assessment of market conditions to balance risk and

reward as so optimize returns to our investors.

The Wealth Manager you will choose. The Financial Services Provider you will trust.

Because, Trust indeed is our middle name.

With the objective to tap the growing potential in our capital markets, ITI FSL has been set up toengage in

Stock Broking

Institutional Broking

Derivatives

Depository Services

Distribution of Investment Products

Distribution of Insurance

Commodities Broking*

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*Activity conducted through the companys subsidiary ITI Investor Services Limited

Companys Presence

Headquartered in Chennai, ITI FSL has a growing network of offices across several states to

ensure easy accessibility to our clients wherever they are.

ITIFSL has over90 Branch Offices spread across the country to offer better reach and service to

the investor. The company currently marks its presence in the following regions:

1. Andhra Pradesh2. Delhi

3. Karnataka4. Kerala

5. Madhya Pradesh

6. Maharashtra7. Tamil Nadu

8. West Bengal

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REVIEW OF LITERATURE

A Mutual Fund is a pool of money, collected from investors, and is invested

according to certain investment objectives.

A Mutual fund is created when investors put their money together. It is therefore a

pool of the investors funds. The most important characteristic of a mutual fund is that the

contributors and the beneficiaries; of the fund are the same class of people, namely the

investors. The term mutual means that investors contribute to the pool, and also benefit from

the pool. The pool of funds held mutually by investors is the mutual fund.

A mutual funds business is to invest the fund thus collected, according to the wishes

of the investors who created the pool. In money markets these wishes area articulated as

investment mandates. Usually, the investors appoint professional investment managers, to

manage their fund. The same objective is achieved when professional investment managers

create a product, and offer it for investment to the investors.

IMPORTANT CHARACTERISTICS OF A MUTUAL FUND

a) A mutual fund actually belongs to the investors who have pooled their funds. The

ownership of the mutual fund is in the hands of investors.

b) Investment professionals and other service providers, who earn a fee for their services, for

the fund, manage a mutual fund.

c) The pool of funds is invested in a portfolio of marketable investments. The value of the

portfolio is updated every day.

d) The investors share in the fund is denominated by units. The value of the units changes

with the change in the portfolios value, every day. The value of one unit of investment is

called as the Net Asset Value or NAV.

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ADVANTAGES OF MUTUAL FUNDS

If mutual funds are emerging as the favorite investment vehicle, it is because of the

many advantages they have over other forms and avenues of investing, particularly for the

investor who has limited resources available in terms of capital and ability to carry out

detailed research and market monitoring. The following are major advantages offered by

mutual funds to all investors:

Professional Management

Mutual Funds provide the services of experienced and skilled professionals, backed by a

dedicated investment research team that analyses the performance and prospects of companies

and selects suitable investments to achieve the objectives of the scheme.

Diversification

Mutual Funds invest in a number of companies across a broad cross-section of industries

and sectors. This diversification reduces the risk because seldom do all stocks decline at the same

time and in the same proportion. You achieve this diversification through a Mutual Fund with far

less money than you can do on your own.

Convenient Administration

Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such

as bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds

save your time and make investing easy and convenient.

Return Potential

Over a medium to long-term, Mutual Funds have the potential to provide a higher return

as they invest in a diversified basket of selected securities.

Low cost

Mutual Funds are a relatively less expensive way to invest compared to directly investing

in the capital markets because the benefits of scale in brokerage, custodial and other fees translate

into lower costs for investors.

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Liquidity

In open-end schemes, the investor gets the money back promptly at net asset value related

prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock exchange at

the prevailing market price or the investor can avail of the facility of direct repurchase at NAV

related prices by the Mutual Fund.

Transparency

You get regular information on the value of your investment in addition to disclosure on

the specific investments made by your scheme, the proportion invested in each class of assets and

the fund manager's investment strategy and outlook.

FlexibilityThrough features such as regular investment plans, regular withdrawal plans and dividend

reinvestment plans, you can systematically invest or withdraw funds according to your needs and

convenience.

Affordability

Investors individually may lack sufficient funds to invest in high-grade stocks. A mutualfund because of its large corpus allows even a small investor to take the benefit of its investment

strategy.

Choice of Schemes

Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.

Well-regulated

All Mutual Funds are registered with SEBI and they function within the provisions of

strict regulations designed to protect the interests of investors. The operations of Mutual

Funds are regularly monitored by SEBI.

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Disadvantages of Mutual Funds:

Costs

Mutual funds don't exist solely to make your life easier--all funds are in it for a profit.

The mutual fund industry is masterful at burying costs under layers of jargon. Because funds

have smallholdings in so many different companies, high returns from a few investments

often don't make much difference on the overall return. Dilution is also the result of a

successful fund getting too big. When money pours into funds that have had strong success,

the manager often has trouble finding a good investment for all the new money.

Taxes

When making decisions about your money, fund managers don't consider your

personal tax situation. For example, when a fund manager sells a security, a capital-gain tax

is triggered, which affects how profitable the individual is from the sale. It might have been

more advantageous for the individual to defer the capital gains liability.

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Mutual Funds: Different Types of Funds

No matter what type of investor you are there is bound to be a mutual fund that fits

your style. There are new fund offer from various AMC. That means there are more mutual

funds than stocks. It is important to understand that each mutual fund has different risks and

rewards. In general, the higher the potential returns, the higher the risk of loss. Although

some funds are less risky than others are, all funds have some level of risk--it is never

possible to diversify away all risk.

This is a fact for all investments. Each fund has a predetermined investment objective

that tailors the fund's assets, regions of investments, and investment strategies. At the

fundamental level, there are three varieties of mutual funds:

1) Equity funds (stocks)

2) Fixed-income funds (bonds)

3) Money market funds

All mutual funds are variations of these three asset classes. For example, while that

invest in fast-growing companies are known as growth funds, equity funds that invest only in

companies of the same sector or region are known as specialty funds.

Let's go over the many different flavors of funds. Well start with the safest and then

work through to the more risky.

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Equity Funds

Funds that invest in stock represent the largest category of mutual funds. Generally,

the investment objective of this class of funds is long-term capital growth with some income.

There are, however, many different types of equity funds because there are many different

types of equities. A great way to understand the universe of equity funds is to use a style box,

an example of which is below.

The idea is to classify funds based on both the size of the companies invested in and the

investment style of the manager. The term "value" refers to a style of investing that looks for

high quality companies that are out of favor with the market. These companies are

characterized by low P/E ratios, price-to-book ratios, and high dividend yields, etc. The

opposite of value is growth, which refers to companies that have had (and are expected tocontinue to have) strong growth in earnings, sales, and cash flow, etc.

A compromise between value and growth is "blend," which simply refers to

companies that are neither value nor growth stocks and so are classified as being somewhere

in the middle.

For example, a mutual fund that invests in large-cap companies who are in strong

financial shape but have recently seen their share price fall would be placed in the upper left

quadrant of the style box (large and value). The opposite of this would be a fund that invests

in startup technology companies with excellent growth prospects. Such a mutual fund would

reside in the bottom right quadrant.

Bond/Income Funds

Income funds are named appropriately: their purpose is to provide current income on

a steady basis. When referring to mutual funds, the terms "fixed-income," "bond," and

"income" are synonymous. These terms denote funds that invest primarily in government and

corporate debt. While fund holdings may appreciate, the primary objective of these funds is

to provide a steady cash flow to investors. As such, the audience for these funds consists of

conservative investors and retirees.

Bond funds are likely to pay higher returns than certificates of deposit and money market

investments, but bond funds aren't without risk. Because there are many different types of

bonds, bond funds can vary dramatically depending on where they invest.

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For example, a fund specializing in high-yield junk bonds is much more risky than a fund

that invests in government securities; also, nearly all bond funds are subject to interest rate

risk, which means that if rates go up the value of the fund goes down.

Balanced Funds

The objective of these funds is to provide a "balanced" mixture of safety, income, and

capital appreciation. The strategy of balanced funds is to invest in a combination of fixed-

income and equities. A typical balanced fund might have a weighting of 60% equity and 40%

fixed-income. The weighting might also be restricted to a specified maximum or minimum

for each asset class.

A similar type of fund is known as an asset allocation fund. Objectives are similar to

those of a balanced fund, but these kinds of funds typically do not have to hold a specified

percentage of any asset class. The portfolio manager is therefore given freedom to switch the

ratio of asset classes as the economy moves through the business cycle.

Money Market Funds

The money market consists of short-term debt instruments, mostly T-bills. This is a

safe place to park your money. You will not get great returns, but you won't have to worry

about losing your principal. A typical return is twice the amount you would earn in a regular

checking/savings account and a little less than the average certificate of deposit (CD). We

have a whole tutorial on the money market if you'd like to learn more about it.

Global/International Funds

An international fund (or foreign fund) invests only outside your home country.

Global funds invest anywhere around the world, including your home country. It's tough to

classify these funds as either riskier or safer. On the one hand they tend to be more volatile

and have unique country and/or political risks. But, on the flip side, they can, as part of awell-balanced portfolio, actually reduce risk by increasing diversification.

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KINDS OF INVESTMENT

CHART SHOWING KINDS OF INVESTMENT

S.NO Investments No of investors Percentage

1 INSURANCE 90 30%

2 SHARES 50 16%

3 MUTUAL FUND 70 23%

4 FIXED DEPOSIT 40 13%

5 ULIP 10 3%

6 REAL ESTATE 40 13%

7 OTHERS 5 2%

TOTAL 305

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INVESTMENT HOLDING DURATION

S.NO Duration No of respondents PERCENTAGE

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1 0-6 months 20 28.5%

2 6 months-1 year 25 35.71%

3 1 year-1.5 year 15 21.42%

4 Above 2 year 10 14.28%

GRAPH- HOLDING DURATION

FINDINGS

The 28.5% of the investors were invested in 6 month duration, following35.71% of the

investors were invested in 6 months-1 year duration, the 21.42% of the investors were invested

in year-1.5 year duration, the 14.28% of investors were invested in above 2-year duration.

INVESTORS CHOISE OF INVESTING COMPANIES

S.NO Mutualfund

companies

No of respondents Percentage

1 SBI 12 18.46%

2 FRANKLIN TEMPLETON 10 15.35%

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3 RELIANCE CAPITAL 10 15%

4 SUNDRAM CAPITAL 5 8%

5 UTI 10 15.%

6 ICICI 9 14%

7HSBC

7 11%8 HDFC 2 3%

GRAPH SHOWING CHOISE OF INVESTORS

FINDINGS

The19% of the investors were invested in SBI, following 15% of the investors were invested in

FRANKLIN, the 15% of the investors were invested in RELIANCE CAPITAL, the 8% of investors

Were invested in SUNDRAM CAPITAL, The 15% of the investors were invested in UTI, the 14%of the investors were invested in ICICI, the 11% of the investors were invested in HSBC , the

3 % of the investors were invested in HDFC.

INESTMENT SCHEME

S.NO Scheme type Percentage1 OPEN ENDED 64%

2 CLOSE ENDED 36%

CHART SHOWING PREFERENCE INVESTMENT SCHEME

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FINDINGS

The 64 % of the investors are invested in open ended scheme following 36% of the investors are

invested in close ended scheme.

TYPES OF CAPITAL INVESTMENT

S.NO Investment type Average weight

1 EQUITY 11.67

2 DEBT 03 BALANCED 15.83

GRAPH SHOWING TYPES OF CAPITAL INVESTMENT

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FINDINGS

The 11.67 of the investors are invested in EQUITY scheme, following 0 of the investors are

invested in DEPT scheme, the 15.83of the investors are invested in BALANCED scheme.

TYPE OF INVESTMENT

GRAPH SHOWING TYPE OF INVESTMENT

S.NO Investment type Average weight

1 SHARE 18.67

2 MUTUAL FUND 12

3 INSURANCE 16

4 FIXED DEPOSIT 5.33

5 REAL ESTATE 5.33

6 ULIP 8.67

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FINDINGS

The 18.67 of the investors are invested in SHARE scheme, following 12 of the investors are

invested in MUTUAL FUND scheme, the 16 of investors are invested in INSURANCE scheme,the 5.33 of the investors are invested in FIXED DEPOSIT scheme, following 5.33 of the

investors are invested in REAL ESTATE scheme, the 8.67 of investors are invested in ULIP

scheme.

REASONS FOR INVESTMENTS

S.NO Reasons No

of

respondents

Percentage

1 High Return 20 29 %2 Diversification of risk 18 26 %

3 Tax Benefit 7 10 %

4 Capital Gain 25 35 %

CHART SHOWING REASONS FOR INVESTMENTS

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FINDINGS

The 29 % of the investors are invested in HIGH RETURN scheme, following 26% of theinvestors are invested in DIVERSIFICATION OF RISK scheme, the 10% of investors are

invested in TAX BENEFIT scheme, and the 35% of investors are invested in CAPITAL GAIN

RISK ASSOCIATED WITH INVESTMENTS

CHART SHOWING RISK LEVEL

S.No Investment type Average weight

1 DEBT 18.33

2 EQUITY 56

3 BALANCED 26.67

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FINDINGS

The 18.33 of the investors are invested in DEPT scheme, following 56 of the investors are

invested in EQUITY scheme, the 26.67 of investors are invested in BALANCED scheme.

RETURN ASSOCIATED WITH INVESTMENTS

S.NO Investment type Average weight

1 DEBT 13.33

2 EQUITY 55.833

3 BALANCED 41.67

CHART SHOWING RISK LEVEL

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FINDINGS

The 13.33 of the investors are invested in DEPT scheme, following 55.833 of the investors are

invested in EQUITY scheme, the 41.67 of investors are invested in BALANCED scheme.

REASONS FOR CHOOSING MUTUAL FUND INVESTMENTS

S.NO Reasons Average weight

1 Tax Benefit 3

2 High Dividend 18

3 High Return 114 Diversified Risk 17

5 ProfessionalFund management 14

6 Assure return 0

7 Sound investment strategy 14

8 Liquidity 31

CHART SHOWINGREASONS FOR CHOOSING MUTUAL FUNDS

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0

5

10

1520

25

30

35

Series 1

Series 1

FINDINGS

The 3 investors are invested in Tax Benefit scheme, following 18 investors are invested in HighDividend scheme, and the 11 investors are invested in High Return scheme, and the 17 investors areinvested in Diversified Risk , and the 14 investors are invested in Professional Fund

management .Scheme, following 0 investors are invested in Assure return scheme, and the 14

investors are invested in Sound investment strategy scheme, and the 31 investors are invested inLiquidity .

INVESTORPREFERENCEABOUT RISK-RETURN COMPENSATION

S.No

Risk

Return Preference

No

of

respondents

Percentage

1 YES 59 59%

2 NO 41 41%

CHART SHOWING RISK-RETURN PREFERENCE

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FINDINGS

The 59% of investors believes their risk level compensating by their fund return and 41% of

investors believes their risk level not compensating by their fund return.

FINDINGS AND SUGGESTIONS

From the primary analysis I found LIC of India have more awareness than BAJAJ and

HDFC among general public

From the primary analysis I found LIC of India have better opinion than others.

ULIP has less customer than the general customer

The customers and non customer have more investment plan in future

They have more interest to invest in insurance than fixed deposit

Company has to bring out good return through ULIP investment plan

Company has good image among the general public so they have to concentrate on

marketing strategy

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CONCLUSION:

From the above research of ITI FINANANCIAL SERVICES LTD with special

reference to Unit Linked Endowment Plan, most of the peoples were satisfied of this

product because of its good returns and flexible premium payment systems, and

withdrawn options.

The customers were satisfied on this project and as well asITI FINANANCIAL

SERVICES. So, they have given third position to ITI FINANANCIAL SERVICES LTD

in all India survey.

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According to the study, customers views and suggestions to improve the product

is ITI FINANANCIAL SERVICES has to increase the advertisement and Advisory

Service.

BIBLIOGRAPHY

BOOKS

The Little Book Of Common Sense Investing John C Bogle.

The Handbook O Fixed Income Sucurities Frank Fabossi.

Mutual Fund Eric Tyson

Investing 101 Karthi Krystof

WEBSITES

www.itifsl.co.in

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www.google.com

www.amfi.com

INTRODUCTION

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PROFILE OF

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COMPANY

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SUGGESTIONS

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REFERENCE