Академический Документы
Профессиональный Документы
Культура Документы
2009
BY
RAJESH BOHRA
IBS AHMEDABAD
08BS0002545
1
Project Final Report
ON
STUDY OF AWARENESS LEVEL OF SMALL SAVING OPTIONS AND
KNOWING THE CUSTOMER PREFERENCES AND KNOWLEDGE
ABOUT THESE PLANS
BY
RAJESH BOHRA
IBS AHMEDABAD
08BS0002545
Submitted to:s
Mr. Prashant Saxena
2
Mr. Nayan Maniyar
Contents
Acknowledgments......................................................................................................4
Abstract........................................................................................ ................................5
Introduction to company............................................................................................6
INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS ASPECTS.................................7
ADVANTAGES OF MUTUAL FUND.................................................................................9
DISADVANTAGE OF MUTUAL FUND.............................................................................9
CATEGORIES OF MUTUAL FUND:.................................................................................10
Introduction to Project..............................................................................................11
Need of Small Savings Plans....................................................................................12
Category of small saving Investment................................................................13
Detail Study of Small saving plan.............................................................................14
Objective of the project:...........................................................................................24
Methodology for Project....................................................................................... .....25
Limitations of project:........................................................................................ .......25
PLAN ANALYSIS OF CUSTOMER SURVEY............................................................26
Analysis of project:............................................................................. ......................27
Interpretation from all graphs made:........................................................................49
Conclusion:.................................................................................................. .............51
References............................................................................................................ ....52
Executive Summary..............................................................................................53
Attachments........................................................................................... ..................54
3
Acknowledgments
Rajesh Bohra
08bs002545
IBS, Ahmedabad
4
Abstract
Investing money is a freater than earning money,
especially in market slow down and with so many options available
(mutual fund, FDs, Insaurances, Post office savings.)
Today saving plans play an important role in the
econmy. India's high savings rate has been a crucial driver of its
economic boom, providing productive capital and helping to fuel a
virtuous cycle of higher growth. Indian mutual fund market has high
proportion and about 5-10% of the Indian population is in mutual fund
investment.
My project is ‘Study of awareness level of small
saving options and knowing the customer Preferences and knowledge
about these plans’. The purpose of the project is to know about the
small savings options and how customer prefers these plans. Today
around 27% of total investment is covered by small saving plans.
Secondary data will be used for getting knowledge about these plans
and customer’s preferences will be known by the Primary sources/data.
Primary data is collected from the market survey
through the questionnaire. After that social economic class (SEC) A, B,
C is formed on the basis of profession and education. Data entry is
done in SPSS software. Analyzing is done on the basis of hypothesis
formed. Finally through this analyzing we get to know about how
people invest acc. to their income and age.
5
Introduction to company
No. of schemes 66
No. of schemes including options 178
Equity Schemes 24
Debt Schemes 126
Short term debt Schemes 8
6
Equity & Debt 3
7
7
fund. Units are issued and can be redeemed as needed. The funds Net Asset
value (NAV) is determined each day.
Investments in securities are spread across a wide cross-section of
industries and sectors and thus the risk is reduced. Diversification reduces
the risk because all stocks 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 quantum of money invested by them. Investors of mutual
funds are known as unit holders.
8
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 (the total amount of the fund).
Mutual Fund investor is also known as a mutual fund shareholder or a unit
holder.
Any change in the value of the investments made into capital market
instruments (such as shares, debentures etc) is reflected in the Net Asset
Value (NAV) of the scheme. NAV is defined as the market value of the Mutual
Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by
dividing the market value of scheme's assets by the total number of units
issued to the investors.
9
• Managing a Portfolio Funds
• Difficulty in selecting a Suitable Fund Scheme
10
CATEGORIES OF MUTUAL FUND:
11
Introduction to Project
12
Need of Small Savings Plans
13
Category of small saving Investment
1. Variable return: - In this the return totally depends on the market like
mutual fund investments. In this SIP(systematic investment plan) can
be taken as small saving plan.SIP helps the customers to b shares of
mutual fund by making regular payments-usually as little as Rs500.
2. Fixed return: - In this the return is being fixed earlier by the
government. The chances of change in the rate of interest are less.
This contain:-
14
Detail Study of Small saving plan
Following are details of the saving plans which are considered in project:-s
Advantages:-
Disadvantages:-
Product Availability:-
Advantages:-
Disadvantages:-
Product Availability:-
16
g) Tax Benefits—Yes
Advantages:-
Disadvantages:-
Product Availability:-
Advantages:-
17
• Money is paid monthly, acc. to investment and interest.
• Deposit may be made in cash or cheque or demand draft
• Mostly liked by old age people.
Disadvantages:-
Product Availability:-
Advantages:-
Disadvantages:-
Product Availability:-
18
• Through agents and all post offices
Advantages:-
Disadvantages:-
Product Availability:-
Advantages:-
Disadvantages:-
Product Availability:-
Advantages:-
Disadvantages:-
Product Availability:-
Advantages:-
Disadvantages:-
Product Availability:-
Below is the interest rate of HDFC Bank.It can be taken as the for other
banks also. They have same pattern as HDFC Bank.
Days/years
Interest/annum
7-15 days
3.00%
15-29 days
3.50%
30-45 days
4.00%
46-60 days
4.50%
61-90 days
5.00%
91-180 days
5.50%
180-195 days
7.00%
196—285 days
7.00%
286.365Days
7.25%
22
286-365 days (1 year)
7.25%
1-5 year
8.00%
>5 years
8.00%
Advantages:-
Disadvantages:-
Product Availability:-
Disadvantages:-
Advantages:-
Disadvantages:-
Product Availability:-
24
• Through advertisements, Word of mouth and internet
26
a) Their preference acc. to their requirement and their age.
3. Sample plan:
Limitations of project:
1. Limited areas- As due to limited area covering, so behavior of of
investors is different at other regions.
2. Limited samples- Each investor has different psychology so study
becomes biased and sample may not help to gather depth
knowledge.
3. Lack of time- Due to limited time it is not possible to make depth
study of these plans.
4. Investor’s behavior is affected.
5. Market condition also effect the survey i.e. investment depends on
market condition.
27
PLAN ANALYSIS OF CUSTOMER
SURVEY
28
Analysis of project:
• Survey from customer
SEC
A 46
B 42
C 17
• Interpretation
1. Survey shows that people has more qualification and are more
professional, also take keen interest in small saving plans.
2. Small saving plans are not for the one category, it is for every
category.
return Return
sec 13 10 2
A 3
29
sec 21 3 17
B
sec 8 2 4
C
• Interpretation
1. SEC A wants to invest in both type of return because of good
knowledge of financial investments.
2. Due to low investment by SEC C, their respondents are also low.
• Interpretation
1. Mostly respondents believe in both type of return.
2. Highest no. of respondents is from SIP.
4. Saving plans investment in accordance to social economic class (SEC)
31
• Interpretation
1. SEC A is more inclined towards the SIP because they believe quick
and good return.
2. Respondent take FD as the safe investment.
3. Kisan vikas patra has fewer respondents because of long time
investment.
• Interpretations
1. Respondents having income less than <1 lakh have least
investment.
32
2. Respondents having income 1-2 lakh are more interested in fixed
returns.
3. Respondents having income 2-5 lakh are more inclined towards the
SIP,NSC and PPF(for tax saving).
4. Respondents having income >5 lakh are more inclined to equity
market and SIP.
• Interpretation
1. SIP is the best investment for the youth.
2. Highest investment is upto the age of 40.
• Interpretation
1. Respondent having income 2-5 lakh has invested upto 40%.
2. More income more investment.
3. More than 50% investment is from respondent who invest around
40 thousand.
• Interpretation
1. Customer who invests more is inclined towards the SIP.
2. They invest in FD (for safe side) and in NSC &PPF (for tax saving).
3. Time of return plays an important role in investment.
9. Sources for knowledge about these plans.
custom % age
ers
newspape 21 20.79
rs
agents 40 39.6
word of 72 71.28
mouth
others 8 7.9
• Interpretation
1. Word of mouth and agents plays an important role for investment
by the customer.
35
10.Customer consults whom for investment.
• Interpretation
1. For consultation agent and friends plays an important role.
2. People consult agent because of knowledge and experience.
kisan vikas 21
36
patra
public provident fund 50
national saving 46
certificate
fixed deposits 57
post office saving 20
account
post office monthly 26
income
post office term 6
deposits
senior citizen saving 6
scheme
recurring deposit 24
account
RBI bonds 14
pay roll saving scheme 2
SIP 65
• Interpretation
1. SIP has highest investment because of good return.
2. Other investment is acc. to the customer income and preference.
12. Schemes in which customer has invested in past and willing to reinvest
in future
fixed deposits 42
SIP 58
equity market 10
recurring deposit 15
account
public provident fund 29
national saving 29
certificate
37
kisan vikas 7
patra
Life insaurance 26
post office monthly 18
income
post office term 2
deposits
ULIP 2
senior citizen saving 0
scheme
• Interpretation
1. If their income is same than they want to continue with that
only, otherwise they want their investment to extended.
2. Respondent are more inclined to market dependent investment
.i.e. SIP.
3. They are interested in small time return.
38
post office monthly 7 10 1
income
post office term 0 1 1
deposits
ULIP 1 1 0
senior citizen saving 0 1 1
scheme
• Interpretation
1. Age play an important role on future investment.
2. Customer up to age of 40 is inclined to the variable and market
dependent investment.
3. Age group 31-50 takes everything into mind while investing i.e.
return, tax and services.
• Interpretation
1. Inclination towards SIP is more.
2. If their income is same than they want to continue with that only, otherwise
they want their investment to extended.
Present
Future
• Interpretation
1. For their future reinvestment people are willing to invest acc. to
their present situation. Their present income plays a crucial role
for their future investment.
2. For fixed return plan they want to continue but for short time.
• From Distributor
mutual fund 37
saving 45
plans
insurance 40
bank 30
financial
40
others 2
Data from survey:-
• Interpretation
1. Mostly agents work on all type of investments.
2. Market condition also made their investment way.
41
• Interpretation
1. Distributors who are working for more than 5 years will put
suggest for returns and risk appetite.
2. More experience more expose for the customer to invest.
kisan vikas 31
patra
public provident fund 37
national saving 37
certificate
fixed deposits 44
post office saving 30
account
post office monthly 31
income
post office term 30
deposits
senior citizen saving 32
scheme
recurring deposit 33
account
RBI bonds 15
pay roll saving scheme 3
SIP 39
• Interpretation
1. From graph distributor is working with all type of investment.
42
4. Saving plans advice by distributor
Life insurance 19
SIP 34
fixed deposits 18
post office monthly 23
income
recurring deposit 26
account
national saving 18
certificate
public provident fund 9
equity market 2
kisan vikas 7
patra
ULIP 6
• Interpretation
1. Distributor advice on the basis of customer interest, amount
of investment and what type return he wants.
43
credibili 0 1 7 4
ty
simplici 0 3 8 15
ty
others 0 0 1 0
• Interpretation
1. Mostly distributor suggests return and service.
• Interpretation
1. Acc. to customer income investment depends.
2. Customer income will suggest distributor to invest in saving
plans.
3. In variable return SIP is the best option.
For Distributors/Agents
1) Mostly agents deal in all type of financial products.
2) They mainly look at the factors like risk appetite and returns while
suggesting for the investments.
3) Their suggestions for investment are according to the customers need.
4) Customers having income less than 1 lakh, than agent will suggest for
recurring deposits and LIC policies.
5) Customers having income up to 2 lakh than Agent will suggest for NSC,
POMIS and SIP.
6) Customers having income more than 2 lakh than Agent will suggest for
mutual fund, equity market and long term high investments.
46
Conclusion:
Small saving options are not just like a small savings only
but a high investment can be made. It is a safe and right type of
investment. The plans which are described state that how the
small savings are useful to the developing country like India.
Addition of rupee to rupee makes a huge amount and it is very
useful to the country’s economy.
47
After losing their investments in stock markets in the past,
small investors prefer risk-free small savings schemes, which saw
27.33 per cent surge in collection of money. Customer prefers
these small savings plan because the return is fixed and there is
no risk.
References
1. Internet
• www.tnsmallsavings.com
• www.finance.mapsofworld.com
• www.mutualfundindia.com
• www.kotakmutual.com
• www.wikipedia.org
• www.savingwala.com
48
• www.hinduonnet.com
• www.mpsmallsavings.nic.in
• www.thehindu.com
• www.timesofindia.indiatimes.com
2. Search engines
www.google.com
3. Other sources:-
• Pamphlet of Indian post office containing saving plans.
• Investment knowledge about financial products from
distributor/agents.
• Market survey.
Executive Summary
Attachments:-
50
Questionnaires for customer and distributors
1. For customer
Questionnaire
Sir/madam, I am student of ICFAI Business School, Ahmedabad.I
am doing a project on ‘Small Saving Options available and the
customer preference about these options’. The Project is purely
academic and this project will help us in analyzing the customer
preferences towards these plans. I need your co-operation and
your precious time.
51
6) Whom do you consult before investing?
a) Agent c) Family
b) Friends d) other
specify___________
7) Are you aware of small savings plans?
a) Yes b) No
Personnel Details:-
a) Name:-___________________________
b) Address:_____________________________________________________
_____________________________________________________________
_
c) Age:-_____
d) Family Members:-_____
e) Contact Number:-__________________
f) Education:-_______________________
53
2. For distributor
Questionnaire
Sir/madam, I am student of ICFAI Business School, Ahmedabad.I
am doing a project on ‘Small Saving Options available and the
customer preference about these options’. The Project is purely
academic and it will help in analyzing the distributor’s preference
towards these plans for their customers. I need your co-operation
and your precious time.
1) Since how many years you are in this profession?
a) 1-2 years c) 5-10 years
b) 2-5 years d) >10 years
2) Which of the financial products you deal in:
a) Mutual Fund d) Saving plans
b) Insurance e) Bank financial
products
c) Other specify:____________
3) What are the factors which you look in, while
suggesting the investment products to customer?
54
a) Time frame d) Risk
appetite
b) Tax savings e) Return
c) Other: specify_____________
4) Which of the following small saving plans you deal
with:
a) Kisan Vikas Patra h) Public Provident
Fund(PPF)
b) National Savings Certificate i) Fixed Deposits
c) Post office saving Account j) Post Office Monthly
Income Scheme
d) Post Office Term Deposit j) Senior Citizen
saving Schemes
e) Recurring Deposit Account l) RBI Bonds
f) Pay Roll Saving Scheme g) Systematic
Investment plan (SIP)
Personnel Details:-
a) Name:-___________________________
b) Address:_____________________________________________________
_________________________________________________________
c) Age:-_____
d) Contact Number:-__________________
e) Education:-_______________________
56