fyp mutual fund akhilesh

8/10/2019 Fyp Mutual Fund Akhilesh

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AC,NO1LED%EMENT

With regard to my Project with Mutual Fund would li!e to than! each and every one

who offered help" guideline and support whenever re#uired.

First and foremost would li!e to e$press gratitude to Manager S% !anwali

&oad 'ehradoon and other staffs for their support and guidance in the Project wor!..

am e$tremely grateful to my guide"CA S.a ad C.au.an for their valuable guidanceand timely suggestions. would li!e to than! all faculty members of (ttam Sugar Mills

)imited for the valuable guidance* support.

would also li!e to e$tend my than!s to my members and friends for their

support specially .M+A Anuj Panday officer .,.(ttam Sugar Mills )imited Sharanpur

* Mr. &ajeev -oyal consultant" Sales ta$" income ta$ .And lastly" would li!e toe$press my gratefulness to the parent s for seeing me through it all.

A,HILESH MISHRA

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CERTIFICATE

,his is to certify that Mr. A!hilesh Mishra a student of M,/+') -ha0ibad has completed

project wor! on MUTUAL FUNDS IS THE BETTER INVESTMENTS PLAN under myguidance and supervision.

certify that this is an original wor! and has not been copied from any source.

Signature of -uide

1ame of Project -uideCA S.a ad C.au.an

'ate/



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DECLERATION

hereby declare that this Project &eport entitled 2,34 M(,(A) F(1' S %4,,4&

154S,M41, P)A1 in S% Mutual Fund submitted in the partial fulfillment of there#uirement of Master of %usiness Administration 6M%A7 of 1S, ,(,4 8FMA1A-4M4, ,4+318)8-9" -3A: A%A' is based on primary * secondarydata found by me in various departments" boo!s" maga0ines and websites * +ollected by me in under guidance of +.A. Sharad +hauhan.

'A,4; A?@> BC



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E2ECUTIVE SUMMAR&

n few years Mutual Fund has emerged as a tool for ensuring one s financial well

being. Mutual Funds have not only contributed to the ndia growth story but have also

helped families tap into the success of ndian ndustry. As information and awareness is

rising more and more people are enjoying the benefits of investing in mutual funds.

,he main reason the number of retail mutual fund investors remains small is that nine

in ten people with incomes in ndia do not !now that mutual funds e$ist. %ut once

people are aware of mutual fund investment opportunities" the number who decide to

invest in mutual funds increases to as many as one in five people. ,he tric! for

converting a person with no !nowledge of mutual funds to a new Mutual Fund

customer is to understand which of the potential investors are more li!ely to buy

mutual funds and to use the right arguments in the sales process that customers will

accept as important and relevant to their decision.

,his Project gave me a great learning e$perience and at the same time it gave me

enough scope to implement my analytical ability. ,he analysis and advice presented in

this Project &eport is based on mar!et research on the saving and investment practices

of the investors and preferences of the investors for investment in Mutual Funds. ,his

&eport will help to !now about the investors Preferences in Mutual Fund means Are



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they prefer any particular Asset Management +ompany 6AM+7" Which type of Product

they prefer" Which 8ption 6-rowth or 'ividend7 they prefer or Which nvestment

Strategy they follow 6Systematic nvestment Plan or 8ne time Plan7. ,his Project as a

whole can be divided into two parts.

,he first part gives an insight about Mutual Fund and its various aspects" the +ompany

Profile" 8bjectives of the study" &esearch Methodology. 8ne can have a brief

!nowledge about Mutual Fund and its basics through the Project.

,he second part of the Project consists of data and its analysis collected through survey

done on >@@ people. For the collection of Primary data made a #uestionnaire and

surveyed of >@@ people. also ta!en interview of many People those who were coming

at the S% %ranch where done my Project. visited other AM+s in 'ehradoon to get

some !nowledge related to my topic. studied about the products and strategies of

other AM+s in 'ehradoon to !now why people prefer to invest in those AM+s. ,his

Project covers the topic 2,34 M(,(A) F(1' S %4,,4& 154S,M41, P)A1.

,he data collected has been well organi0ed and presented. hope the research findings

and conclusion will be of use.



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CONTENTS

Ac!nowledgement

'eclaration

4$ecutive Summary

+hapter / ? 1,&8'(+, 81

+hapter / > +8MPA19 P&8F )4

+hapter / D 8%E4+, 54S A1' S+8P4

+hapter / &4S4A&+3 M4,38'8)8-9

+hapter / = 'A,A A1A)9S S A1' 1,4&P&4,A, 81

+hapter / F 1' 1-S A1' +81+)(S 81S

+hapter / G S(--4S, 81S * &4+8MM41'A, 81S



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% %) 8-&AP39

MUTUAL FUNDS

ALL ABOUT MUTUAL FUNDS

1HAT IS MUTUAL FUND

B& STRUCTURE

B& NATURE

E3UIT& FUND

DEBT FUNDS

B& INVESTMENT OBJECTIVE

OTHER SCHEMES

PROS 4 CONS OF INVESTIN% IN MUTUAL FUNDS

ADVANTA%ES OF INVESTIN% MUTUAL FUNDS

DISADVANTA%ES OF INVESTIN% MUTUAL FUNDS



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MUTUAL FUNDS INDUSTR& IN INDIA

MAJOR PLA&ERS OF MUTUAL FUNDS IN INDIA

HISTOR& OF THE INDIAN MUTUAL FUND INDUSTR&

CATE%ORIES OF MUTUAL FUNDS

INVESTMENT STRATE%IES

1OR,IN% OF A MUTUAL FUND

%UIDELINES OF THE SEBI FOR MUTUAL FUND

COMPANIES DISTRIBUTION CHANNELS

DOES FUND PERFORMANCE AND RAN,IN% PERSIST5

PORTFOLIO ANAL&SIS TOOLS

RESEARCH REPORT

OBJECTIVE OF RESEARCH

SCOPE OF THE STUD&

DATA SOURCES

SAMPLIN%

DATA ANAL&SIS

3UESTIONNAIRE



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+hapter / ?

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INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS

ASPECTS6

Mutual fund is a trust that pools the savings of a number of investors who share a

common financial goal. ,his pool of money is invested in accordance with a stated

objective. ,he joint ownership of the fund is thus 2Mutual" i.e. the fund belongs to all

investors. ,he money thus collected is then invested in capital mar!et instruments such

as shares" debentures and other securities. ,he income earned through these



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investments and the capital appreciations reali0ed are shared by its unit holders in

proportion the number of units owned by them. ,hus a Mutual Fund is the most

suitable investment for the common man as it offers an opportunity to invest in a

diversified" professionally managed bas!et of securities at a relatively low cost. A

Mutual Fund is an investment tool that allows small investors access to a well/

diversified portfolio of e#uities" bonds and other securities. 4ach shareholder

participates in the gain or loss of the fund. (nits are issued and can be redeemed asneeded. ,he funds 1et Asset value 61A57 is determined each day.

nvestments in securities are spread across a wide cross/section of industries and

sectors and thus the ris! is reduced. 'iversification reduces the ris! because all stoc!s

may not move in the same direction in the same proportion at the same time. Mutual

fund issues units to the investors in accordance with #uantum of money invested bythem. nvestors of mutual funds are !nown as unit holders.



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When an investor subscribes for the units of a mutual fund" he becomes part owner of

the assets of the fund in the same proportion as his contribution amount put up with the

corpus 6the total amount of the fund7. Mutual Fund investor is also !nown as a mutual

fund shareholder or a unit holder.

Any change in the value of the investments made into capital mar!et instruments 6such

as shares " debentures etc7 is reflected in the 1et Asset 5alue 61A57 of the scheme.

1A5 is defined as the mar!et value of the Mutual Fund schemeHs assets net of its

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liabilities. 1A5 of a scheme is calculated by dividing the mar!et value of schemeHs

assets by the total number of units issued to the investors.

ADVANTA%ES OF MUTUAL FUND

Portfolio 'iversification

Professional management

&eduction I 'iversification of &is!

)i#uidity

Fle$ibility * +onvenience

&eduction in ,ransaction cost

Safety of regulated environment

+hoice of schemes

,ransparency

DISADVANTA%E OF MUTUAL FUND

1o control over +ost in the 3ands of an nvestor



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1o tailor/made Portfolios

Managing a Portfolio Funds

'ifficulty in selecting a Suitable Fund Scheme

HISTOR& OF THE INDIAN MUTUAL FUND INDUSTR&

,he mutual fund industry in ndia started in ?C D with the formation of (nit ,rust of

ndia" at the initiative of the -overnment of ndia and &eserve %an!. ,hough the

growth was slow" but it accelerated from the year ?CBG when non/(, players entered

the ndustry.

n the past decade" ndian mutual fund industry had seen a dramatic improvement" both

#ualities wise as well as #uantity wise. %efore" the monopoly of the mar!et had seen an

ending phaseJ the Assets (nder Management 6A(M7 was &s G billion. ,he private

sector entry to the fund family raised the Aum to &s. G@ billion in March ?CCD and till

April >@@ J it reached the height if &s. ?= @ billion.



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,he Mutual Fund ndustry is obviously growing at a tremendous space with the mutual

fund industry can be broadly put into four phases according to the development of the

sector. 4ach phase is briefly described as under.

Fi 0t P.a0e 7 89:;*


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?CBC while - + had set up its mutual fund in 'ecember [email protected] the end of ?CCD" the

mutual fund industry had assets under management of &s. G"@@ crores.

T.i d P.a0e 7 899>*?@@> -Ent ( #" P i ate Se+t# Fund0/

?CCD was the year in which the first Mutual Fund &egulations came into being" under

which all mutual funds" e$cept (, were to be registered and governed. ,he erstwhile

@@D" there were D

mutual funds with total assets of &s. ?">?"B@= crores.

F#u t. P.a0e 7 0in+e Feb ua ( ?@@>

n February >@@D" following the repeal of the (nit ,rust of ndia Act ?C D (, was

bifurcated into two separate entities. 8ne is the Specified (nderta!ing of the (nit ,rust

of ndia with assets under management of &s.>C"BD= crores as at the end of Eanuary

>@@D" representing broadly" the assets of (S scheme" assured return and certain

other schemes



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,he second is the (, Mutual Fund )td" sponsored by S% " P1%" %8% and ) +. t is

registered with S4% and functions under the Mutual Fund &egulations. consolidation

and growth. As at the end of September" >@@ " there were >C funds" which manage

assets of &s.?=D?@B crores under >? schemes.

CATE%ORIES OF MUTUAL FUND)



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Mutual funds can be classified as follow ;

Ba0ed #n t.ei 0t u+tu e)

8pen/ended funds; nvestors can buy and sell the units from the fund" at any point of

time.

+lose/ended funds; ,hese funds raise money from investors only once. ,herefore"

after the offer period" fresh investments can not be made into the fund. f the fund is

listed on a stoc!s e$change the units can be traded li!e stoc!s 64.g." Morgan Stanley

-rowth Fund7. &ecently" most of the 1ew Fund 8ffers of close/ended funds provided

li#uidity window on a periodic basis such as monthly or wee!ly. &edemption of units

can be made during specified intervals. ,herefore" such funds have relatively low

li#uidity.

Ba0ed #n t.ei in e0tment #b e+ti e)E uit( "und0 ; ,hese funds invest in e#uities and e#uity related instruments. With

fluctuating share prices" such funds show volatile performance" even losses. 3owever"

short term fluctuations in the mar!et" generally smoothens out in the long term" thereby

offering higher returns at relatively lower volatility. At the same time" such funds canyield great capital appreciation as" historically" e#uities have outperformed all asset

classes in the long term. 3ence" investment in e#uity funds should be considered for a

period of at least D/= years. t can be further classified as;



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i/ Inde "und0 / n this case a !ey stoc! mar!et inde$" li!e %S4 Sense$ or 1ifty is

trac!ed. ,heir portfolio mirrors the benchmar! inde$ both in terms of composition

and individual stoc! weightages.

ii/ E uit( di e 0i"ied "und0* ?@@K of the capital is invested in e#uities spreading

across different sectors and stoc!s.

iii / Di idend (ie!d "und0* it is similar to the e#uity diversified funds e$cept that theyinvest in companies offering high dividend yields.

i / T.emati+ "und0* nvest ?@@K of the assets in sectors which are related through

some theme.

e.g. /An infrastructure fund invests in power" construction" cements sectors etc.

/ Se+t# "und0* nvest ?@@K of the capital in a specific sector. e.g. / A ban!ing sector

fund will invest in ban!ing stoc!s.

i/ ELSS / 4#uity )in!ed Saving Scheme provides ta$ benefit to the investors.

Ba!an+ed "und ) ,heir investment portfolio includes both debt and e#uity. As a result" on

the ris!/return ladder" they fall between e#uity and debt funds. %alanced funds are the idealmutual funds vehicle for investors who prefer spreading their ris! across various instruments.

Following are balanced funds classes;

i/ Debt*# iented "und0 * nvestment below =K in e#uities.



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ii/ E uit(*# iented "und0 - nvest at least =K in e#uities" remaining in debt.

Debt "und ) ,hey invest only in debt instruments" and are a good option for investors

averse to idea of ta!ing ris! associated with e#uities. ,herefore" they invest e$clusively

in fi$ed/income instruments li!e bonds" debentures" -overnment of ndia securitiesJ

and money mar!et instruments such as certificates of deposit 6+'7" commercial paper

6+P7 and call money. Put your money into any of these debt funds depending on your

investment hori0on and needs.

i/ Li uid "und0* ,hese funds invest ?@@K in money mar!et instruments" a large

portion being invested in call money mar!et.

ii/ %i!t "und0 ST* ,hey invest ?@@K of their portfolio in government securities of and

,/bills.

iii/ F!#atin$ ate "und0 * nvest in short/term debt papers. Floaters invest in debt

instruments which have variable coupon rate.

i / A bit a$e "und* ,hey generate income through arbitrage opportunities due to mis/

pricing between cash mar!et and derivatives mar!et. Funds are allocated to e#uities"

derivatives and money mar!ets. 3igher proportion 6around G=K7 is put in money

mar!ets" in the absence of arbitrage opportunities.



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/ %i!t "und0 LT* ,hey invest ?@@K of their portfolio in long/term government

securities.

i/ In+#me "und0 LT* ,ypically" such funds invest a major portion of the portfolio in

long/term debt papers.

ii/ MIP0* Monthly ncome Plans have an e$posure of G@K/C@K to debt and an

e$posure of ?@K/D@K to e#uities.

iii/ FMP0* fi$ed monthly plans invest in debt papers whose maturity is in line with

that of the fund.



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INVESTMENT STRATE%IES

86 S(0temati+ In e0tment P!an) under this a fi$ed sum is invested each month on a

fi$ed date of a month. Payment is made through post dated che#ues or direct debit

facilities. ,he investor gets fewer units when the 1A5 is high and more units when the

1A5 is low. ,his is called as the benefit of &upee +ost Averaging 6&+A7

?6 S(0temati+ T an0"e P!an) under this an investor invest in debt oriented fund and

give instructions to transfer a fi$ed sum" at a fi$ed interval" to an e#uity scheme of the

same mutual fund.

>6 S(0temati+ 1it.d a a! P!an) if someone wishes to withdraw from a mutual fund

then he can withdraw a fi$ed amount each month.



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RISK V/S. RETURN:



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+hapter L >+ompany Profile

INTRODUCTION TO SBI MUTUAL FUND

S% Funds Management Pvt. )td. is one of the leading fund houses in the

country with an investor base of over . million and over >@ years of rich

e$perience in fund management consistently delivering value to its investors.



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S% Funds Management Pvt. )td. is a joint venture between H,he State %an! of

ndiaH one of ndiaHs largest ban!ing enterprises" and Soci t - n rale Asset

Management 6France7" one of the worldHs leading fund management companies

that manages over (SN =@@ %illion worldwide.

,oday the fund house manages over &s >B=@@ crores of assets and has a diverse

profile of investors actively par!ing their investments across D active schemes.

n >@ years of operation" the fund has launched DB schemes and successfully

redeemed ?= of them" and in the process" has rewarded our investors with

consistent returns. Schemes of the Mutual Fund have time after time

outperformed benchmar! indices" honored us with ?= awards of performance

and have emerged as the preferred investment for millions of investors. ,he

trust reposed on us by over . million investors is a genuine tribute to our e$pertise in fund management.

S% Funds Management Pvt. )td. serves its vast family of investors through a

networ! of over ?D@ points of acceptance" >B nvestor Service +entres"

nvestor Service 'es!s and = 'istrict 8rgani0ers.S% Mutual is the first ban!/

sponsored fund to launch an offshore fund L &esurgent ndia 8pportunities Fund.

-rowth through innovation and stable investment policies is the S% MF credo.

PRODUCTS OF SBI MUTUAL FUND



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4#uity schemes

,he investments of these schemes will predominantly be in the stoc! mar!ets

and endeavor will be to provide investors the opportunity to benefit from the

higher returns which stoc! mar!ets can provide. 3owever they are also e$posed

to the volatility and attendant ris!s of stoc! mar!ets and hence should be

chosen only by such investors who have high ris! ta!ing capacities and are

willing to thin! long term. 4#uity Funds include diversified 4#uity Funds"

Sectoral Funds and nde$ Funds. 'iversified 4#uity Funds invest in various

stoc!s across different sectors while sectoral funds which are speciali0ed 4#uity

Funds restrict their investments only to shares of a particular sector and hence"

are ris!ier than 'iversified 4#uity Funds. nde$ Funds invest passively only in

the stoc!s of a particular inde$ and the performance of such funds move withthe movements of the inde$.

Magnum +8MMA Fund

Magnum 4#uity Fund

Magnum -lobal Fund

Magnum nde$ Fund

Magnum Midcap Fund

Magnum Multicap Fund

Magnum Multiplier plus ?CCD



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Magnum Sectoral Funds (mbrella

MSF(/ 4merging %usiness Fund

MSF(/ , Fund

MSF(/ Pharma Fund

MSF(/ +ontra Fund

MSF(/ FM+- Fund

S% Arbitrage 8pportunities Fund

S% %lue chip Fund

S% nfrastructure Fund / Series

S% Magnum ,a$gain Scheme ?CCD

S% 814 ndia Fund

S% ,AO A'5A1,A-4 F(1' / S4& 4S

'ebt schemes

'ebt Funds invest only in debt instruments such as +orporate %onds"

-overnment Securities and Money Mar!et instruments either completely

avoiding any investments in the stoc! mar!ets as in ncome Funds or -ilt Funds

or having a small e$posure to e#uities as in Monthly ncome Plans or +hildrenHs

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Plan. 3ence they are safer than e#uity funds. At the same time the e$pected

returns from debt funds would be lower. Such investments are advisable for the

ris!/averse investor and as a part of the investment portfolio for other investors.

Magnum +hildren s benefit Plan

Magnum -ilt Fund

Magnum ncome Fund

Magnum nsta +ash Fund

Magnum ncome Fund/ Floating &ate Plan

Magnum ncome Plus Fund

Magnum nsta +ash Fund /)i#uid Floater Plan

Magnum Monthly ncome Plan

Magnum Monthly ncome Plan/ Floater

Magnum 1& nvestment Fund

S% Premier )i#uid Fund

%A)A1+4' S+34M4S

Magnum %alanced Fund invests in a mi$ of e#uity and debt investments. 3ence

they are less ris!y than e#uity funds" but at the same time provide

commensurately lower returns. ,hey provide a good investment opportunity to

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investors who do not wish to be completely e$posed to e#uity mar!ets" but is

loo!ing for higher returns than those provided by debt funds.

Magnum %alanced Fund

COMPETITORS OF SBI MUTUAL FUND

Some of the main competitors of S% Mutual Fund in 'ehradoon are as

Follows;

i6 + + Mutual Fund

ii6 &eliance Mutual Fund

iii6 (, Mutual Fund

i 6 %irla Sun )ife Mutual Fund

6


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iii6 ) + Mutual Fund

i 6 Principal

6 Fran!lin ,empleton

A1ARDS AND ACHIEVEMENTS

S% Mutual Fund 6S% MF7 has been the proud recipient of the +&A 8nline Award / B

times" +1%+ ,5 / ?B +risil Award >@@ / Awards" ,he )ipper Award 69ear >@@=/

>@@ 7 and most recently with the +1%+ ,5 / ?B +risil Mutual Fund of the 9ear Award

>@@G and = Awards for our schemes.

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+hapter / D

8bjectives and scope



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OBJECTIVES OF THE STUD&

?. ,o find out the Preferences of the investors for Asset Management

+ompany.

>. ,o !now the Preferences for the portfolios.

D. ,o !now why one has invested or not invested in S% Mutual fund

. ,o find out the most preferred channel.

=. ,o find out what should do to boost Mutual Fund ndustry.



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S+#pe #" t.e 0tud(

A big boom has been witnessed in Mutual Fund ndustry in resent times. A largenumber of new players have entered the mar!et and trying to gain mar!et share in this

rapidly improving mar!et.

,he research was carried on in 'ehradoon. had been sent at one of the branch of State

%an! of ndia 'ehradoon where completed my Project wor!. surveyed on my

Project ,opic 2A study of preferences of the nvestors for investment in Mutual Fundon the visiting customers of the S% %oring +anal &oad %ranch.

,he study will help to !now the preferences of the customers" which company"

portfolio" mode of investment" option for getting return and so on they prefer. ,his

project report may help the company to ma!e further planning and strategy.



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+hapter L



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&esearch Methodology

RESEARCH METHODOLO%&

,his report is based on primary as well secondary data" however primary data

collection was given more importance since it is overhearing factor in attitude studies.

8ne of the most important users of research methodology is that it helps in identifying

the problem" collecting" analy0ing the re#uired information data and providing an

alternative solution to the problem . t also helps in collecting the vital information that

is re#uired by the top management to assist them for the better decision ma!ing both

day to day decision and critical ones.



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Data 0#u +e0)

&esearch is totally based on primary data. Secondary data can be used only for the

reference. &esearch has been done by primary data collection" and primary data has

been collected by interacting with various people. ,he secondary data has been

collected through various journals and websites.

Du ati#n #" Stud()

,he study was carried out for a period of two months" from D@th May to D@th Euly >@@B.

Samp!in$)

Samp!in$ p #+edu e)

,he sample was selected of them who are the customersIvisitors of State %an! if ndia"

%oring +anal &oad %ranch" irrespective of them being investors or not or availing theservices or not. t was also collected through personal visits to persons" by formal and

informal tal!s and through filling up the #uestionnaire prepared. ,he data has been

analy0ed by using mathematicalIStatistical tool.



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Samp!e 0iGe)

,he sample si0e of my project is limited to >@@ people only. 8ut of which only ?>@

people had invested in Mutual Fund. 8ther B@ people did not have invested in Mutual

Fund.

Samp!e de0i$n)

'ata has been presented with the help of bar graph" pie charts" line graphs etc.

Limitati#n)



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Some of the persons were not so responsive.

Possibility of error in data collection because many of investors may have not

given actual answers of my #uestionnaire.

Sample si0e is limited to >@@ visitors of State %an! of ndia " %oring +anal &oad

%ranch" 'ehradoon out of these only ?>@ had invested in Mutual Fund. ,hesample.

si0e may not ade#uately represent the whole mar!et.

Some respondents were reluctant to divulge personal information which can

affect the validity of all responses.

,he research is confined to a certain part of 'ehradoon.



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+hapter L ='ata Analysis

*nterpretation



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ANAL&SIS 4 INTERPRETATION OF THE DATA

86 -a/ A$e di0t ibuti#n #" t.e In e0t# 0 #" De. ad##n

Age -roup Q D@ D?/D= D / @ ?/ = /=@ R=@

1o. ofnvestors

?> ?B D@ > >@ ?

Inte p etati#n)



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According to this chart out of ?>@ Mutual Fund investors of 'ehradoon the most are in

the age group of D / @ yrs. i.e. >=K" the second most investors are in the age group of

?/ =yrs i.e. >@K and the least investors are in the age group of below D@ yrs.

-b/6 Edu+ati#na! 3ua!i"i+ati#n #" in e0t# 0 #" De. ad##n

Edu+ati#na! 3ua!i"i+ati#n Numbe #" In e0t# 0

-raduateI Post -raduate BB

(nder -raduate >=

8thers G

,otal ?>@



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Inte p etati#n)

8ut of ?>@ Mutual Fund investors G?K of the investors in 'ehradoon are

-raduateIPost -raduate" >DK are (nder -raduate and K are others 6under 3S+7.

+/6 O++upati#n #" t.e in e0t# 0 #" De. ad##n

.


O++upati#n N#6 #" In e0t# 0-ovt. Service D@Pvt. Service =

%usiness D=Agriculture

8thers


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Inte p etati#n)

n 8ccupation group out of ?>@ investors" DBK are Pvt. 4mployees" >=K are

%usinessman" >CK are -ovt. 4mployees" DK are in Agriculture and =K are inothers.

-d/6 M#nt.!( Fami!( In+#me #" t.e In e0t# 0 #" De. ad##n6

In+#me % #up N#6 #" In e0t# 0Q?@"@@@ =?@"@@?/?="@@@ ?>?="@@?/>@"@@@ >B>@"@@?/D@"@@@ DRD@"@@@ D>



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Inte p etati#n)

n the ncome -roup of the investors of 'ehradoon" out of ?>@ investors" D K

investors that is the ma$imum investors are in the monthly income group &s.>@"@@? to &s. D@"@@@" Second one i.e. >GK investors are in the monthly

income group of more than &s. D@"@@@ and the minimum investors i.e. K

are in the monthly income group of below &s. ?@"@@@

-?/ In e0t# 0 in e0ted in di""e ent ind #" in e0tment06

Mutual Fund ?>@



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Post office 61S+7 G=

SharesI'ebentures =@-oldISilver D@ &eal 4state =

Inte p etati#n) From the above graph it can be inferred that out of >@@ people"

CG.=K people have invested in Saving AIc" G K in nsurance" G K in Fi$ed 'eposits"

@K in Mutual Fund" DG.=K in Post 8ffice" >=K in Shares or 'ebentures" ?=K in

-oldISilver and D>.=K in &eal 4state.

>6 P e"e en+e #" "a+t# 0 .i!e in e0tin$



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Factors 6a7 )i#uidity 6b7 )ow &is! 6c7 3igh &eturn 6d7 ,rust

1o. of

&espondents

@ @ D

Inte p etati#n)

8ut of >@@ People" D>K People prefer to invest where there is 3igh &eturn" D@K prefer

to invest where there is )ow &is!" >@K prefer easy )i#uidity and ?BK prefer ,rust

;6 A a ene00 ab#ut Mutua! Fund and it0 Ope ati#n0



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Inte p etati#n)

From the above chart it is inferred that GK People are aware of Mutual Fund and its

operations and DDK are not aware of Mutual Fund and its operations.


&esponse 9es 1o 1o. of &es pondents ?D= =


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6 S#u +e #" in"# mati#n "# +u0t#me 0 ab#ut Mutua! Fund

S#u +e #" in"# mati#n N#6 #" Re0p#ndent0Advertisement ?B

Peer -roup >=%an! D@

Financial Advisors >

Inte p etati#n)

From the above chart it can be inferred that the Financial Advisor is the most

important source of information about Mutual Fund. 8ut of ?D= &espondents" K!now about Mutual fund ,hrough Financial Advisor" >>K through %an!" ?CK

through Peer -roup and ?DK through Advertisement.



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. In e0t# 0 in e0ted in Mutua! Fund

Re0p#n0e N#6 #" Re0p#ndent0

94S ?>@ 18 B@

,otal >@@

Inte p etati#n)

8ut of >@@ People" @K have invested in Mutual Fund and @K do not have invested

in Mutual Fund.



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=6 Rea0#n "# n#t in e0ted in Mutua! Fund

Rea0#n N#6 #" Re0p#ndent0

1ot Aware :3igher &is!

1ot any Specific &eason 8@

Inte p etati#n)

8ut of B@ people" who have not invested in Mutual Fund" B?K are not aware of Mutual

Fund" ?DK said there is li!ely to be higher ris! and K do not have any specific

reason.



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Inte p etati#n)

8ut of == investors of S% MF K have invested because of its association with

%rand S% " >GK invested on Agent s Advice" CK invested because of better return.

8@6 Rea0#n "# n#t in e0ted in SBIMF

Rea0#n N#6 #" Re0p#ndent0 1ot Aware >=)ess &eturn ?B

Agent s Advice >>



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Inte p etati#n)

8ut of = people who have not invested in S% MF" DBK were not aware with S% MF"

>BK do not have invested due to less return and D K due to Agent s Advice.

886 P e"e en+e #" In e0t# 0 "# "utu e in e0tment in Mutua! Fund

Name #" AMC N#6 #" In e0t# 0S% MF G

(, =3'F+ D=

&eliance B>+ + Prudential B@


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Inte p etati#n)

8ut of ?>@ investors" BK prefer to invest in &eliance" GK in + + Prudential" DK

in S% MF" >.=K in 8thers" =@K in


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Inte p etati#n)

8ut of ?>@ nvestors @K preferred to invest through Financial Advisors" >=K through

AM+ and ?=K through %an!.

8>6 M#de #" In e0tment P e"e ed b( t.e In e0t# 0



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Mode of nvestment 8ne time nvestment Systematic nvestment Plan 6S P7

1o. of &espondents GB >

Inte p etati#n)

8ut of ?>@ nvestors =K preferred 8ne time nvestment and D= K Preferred through

Systematic nvestment Plan.



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8;6 P e"e ed P# t"#!i#0 b( t.e In e0t# 0

P# t"#!i# N#6 #" In e0t# 04#uity ='ebt >@

%alanced

Inte p etati#n)

From the above graph K preferred 4#uity Portfolio" DGK preferred %alance and ?GK

preferred 'ebt portfolio



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8 6 Opti#n "# $ettin$ Retu n P e"e ed b( t.e In e0t# 0

8ption 'ividend Payout 'ividend

&einvestment

-rowth

1o. of &espondents >= ?@ B=

Inte p etati#n)



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8ut of ?>@ investors" GCK investors do not prefer to invest in Sectoral Fund because

there is ma$imum ris! and >?K prefer to invest in Sectoral Fund.

+hapter L

Findings and

+onclusionPlease send your feedback to [email protected] and send more projects tous and we upload it to www.projectsworlds.blogspot.co m and you can share theprojects and help other to participate.


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Most of the investors who did not invested in S% MF due to not

Aware of S% MF" the second most due to Agent s advice and rest due

to )ess &eturn.

For Future investment the ma$imum &espondents preferred

&eliance Mutual Fund" the second most preferred + + Prudential"

S% MF has been preferred after them.@K nvestors preferred to nvest through Financial Advisors" >=K

through AM+ 6means 'irect nvestment7 and ?=K through %an!.

=K preferred 8ne ,ime nvestment and D=K preferred S P out of

both type of Mode of nvestment.

,he most preferred Portfolio was 4#uity" the second most was

%alance 6mi$ture of both e#uity and debt7" and the least preferred

Portfolio was 'ebt portfolio.

Ma$imum 1umber of nvestors Preferred -rowth 8ption for returns"

the second most preferred 'ividend Payout and then 'ividend

&einvestment.

Most of the nvestors did not want to invest in Sectoral Fund" only

>?K wanted to invest in Sectoral Fund.



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C#n+!u0i#n

&unning a successful Mutual Fund re#uires complete understanding of the

peculiarities of the ndian Stoc! Mar!et and also the psyche of the small

investors. ,his study has made an attempt to understand the financial

behavior of Mutual Fund investors in connection with the preferences of

%rand 6AM+7" Products" +hannels etc. observed that many of people

have fear of Mutual Fund. ,hey thin! their money will not be secure in



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Mutual Fund. ,hey need the !nowledge of Mutual Fund and its related

terms. Many of people do not have invested in mutual fund due to lac! of

awareness although they have money to invest. As the awareness and

income is growing the number of mutual fund investors are also growing.

2%rand plays important role for the investment. People invest in those

+ompanies where they have faith or they are well !nown with them. ,here

are many AM+s in 'ehradoon but only some are performing well due to

%rand awareness. Some AM+s are not performing well although some of

the schemes of them are giving good return because of not awareness

about %rand. &eliance" (, " S% MF" + + Prudential etc. they are well

!nown %rand" they are performing well and their Assets (nder

Management is larger than others whose %rand name are not well !nown

li!e Principle" Sunderam" etc.

'istribution channels are also important for the investment in mutual fund.

Financial Advisors are the most preferred channel for the investment in

mutual fund. ,hey can change investors mind from one investment option

to others. Many of investors directly invest their money through AM+



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because they do not have to pay entry load. 8nly those people invest

directly who !now well about mutual fund and its operations and those

have time.



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+hapter L G

SuggestionsAnd

&ecommendations

Su$$e0ti#n0 and Re+#mmendati#n0



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,he most vital problem spotted is of ignorance. nvestors should be

made aware of the benefits. 1obody will invest until and unless he

is fully convinced. nvestors should be made to reali0e that

ignorance is no longer bliss and what they are losing by not

investing.

Mutual funds offer a lot of benefit which no other single optioncould offer. %ut most of the people are not even aware of what

actually a mutual fund is ,hey only see it as just another

investment option. So the advisors should try to change their

mindsets. ,he advisors should target for more and more young

investors. 9oung investors as well as persons at the height of their

career would li!e to go for advisors due to lac! of e$pertise and

time.

Mutual Fund +ompany needs to give the training of the ndividual

Financial Advisors about the FundIScheme and its objective"

because they are the main source to influence the investors.



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%efore ma!ing any investment Financial Advisors should first

en#uire about the ris! tolerance of the investorsIcustomers" their need

and time 6how long they want to invest7. %y considering these three

things they can ta!e the customers into consideration.

9ounger people aged under D= will be a !ey new customer group

into the future" so ma!ing greater efforts with younger customers

who show some interest in investing should pay off.

+ustomers with graduate level education are easier to sell to and

there is a large untapped mar!et there. ,o succeed however" advisors

must provide sound advice and high #uality.

Systematic nvestment Plan 6S P7 is one the innovative products

launched by Assets Management companies very recently in the

industry. S P is easy for monthly salaried person as it provides the

facility of do the investment in 4M . ,hough most of the prospects

and potential investors are not aware about the S P. ,here is a largescope for the companies to tap the salaried persons.



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BIBLIO%RAPH&

NEWS PAPERS

OUTLOOK MONEY

TELEVISION CHANNEL (CNBC AAWAJ)

MUTUAL FUND HAND BOOK

FACT SHEET AND STATEMENT

WWW.SBIMF.COM

WWW.MONEYCONTROL.COM

WWW.AMFIINDIA.COM

WWW.ONLINERESEARCHONLINE.COM

WWW. MUTUALFUNDSINDIA.COM

http://www.projectsworlds.blogspot.com/http://www.projectsworlds.blogspot.com/http://www.sbimf.com/http://www.moneycontrol.com/http://www.amfiindia.com/http://www.onlineresearch.com/mailto:[email protected]://www.projectsworld.co.cc/http://www.sbimf.com/http://www.moneycontrol.com/http://www.amfiindia.com/http://www.onlineresearch.com/mailto:[email protected]://www.projectsworld.co.cc/http://www.projectsworlds.blogspot.com/http://www.projectsworlds.blogspot.com/


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Mutua! Fund0



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A!! Ab#ut Mutua! Fund0%efore we understand what is mutual fund" it s very important to !now the area in whic

mutual funds wor!s" the basic understanding of stoc!s and bonds.

St#+ 0 ; Stoc!s represent shares of ownership in a public company. 4$amples of public companieinclude &eliance" 81-+ and nfosys. Stoc!s are considered to be the most common ownedinvestment traded on the mar!et.

B#nd0 ; %onds are basically the money which you lend to the government or a company" andreturn you can receive interest on your invested amount" which is bac! over predetermined amouof time. %onds are considered to be the most common lending investment traded on the mar!et. ,heare many other types of investments other than stoc!s and bonds 6including annuities" real estate" precious metals7" but the majority of mutual funds invest in stoc!s andIor bonds.

1.at I0 Mutua! Fund

A mutual fund is just the connecting bridge or a financial intermediary that allows a group oinvestors to pool their money together with a predetermined investment objective. ,he mutual fund



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will have a fund manager who is responsible for investing the gathered money into specific securiti

6stoc!s or bonds7. When you invest in a mutual fund" you are buying units or portions of the mutufund and thus on investing becomes a shareholder or unit holder of the fund.

Mutual funds are considered as one of the best available investments as compare to othersthey are very cost efficient and also easy to invest in" thus by pooling money together in a mutualfund" investors can purchase stoc!s or bonds with much lower trading costs than if they tried to do on their own. %ut the biggest advantage to mutual funds is diversification" by minimi0ing ris! *ma$imi0ing returns.

,hus a Mutual Fund is the most suitable investment for the common man as it offers anopportunity to invest in a diversified" professionally managed bas!et of securities at a relatively lcost. ,he flow chart below describes broadly the wor!ing of a mutual fund

Unit Trust of India is the rst Mutual Fund set up under a separate act

UTI !ct in "#$% and started its operations in "#$& 'ith the issue of

units under the sche(e US)$&.O e ie #" e i0tin$ 0+.eme0 e i0ted in mutua! "und +ate$# (

Wide variety of Mutual Fund Schemes e$ists to cater to the needs such as financial positioris! tolerance and return e$pectations etc. ,he table below gives an overview into the e$isting typeof schemes in the ndustry.

T(pe #" Mutua! Fund S+.eme0

B& STRUCTURE

Open Ended S+.eme0An open/end fund is one that is available for subscription all through the year. ,hese do not

have a fi$ed maturity. nvestors can conveniently buy and sell units at 1et Asset 5alue 6T1A5T7related prices. ,he !ey feature of open/end schemes is li#uidity.



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