19

PROJECT REPORT
A STUDY ON CONSUMER BEHAVIOR TOWARDS MUTUAL FUNDS
SUBMITTED BY
Name : GARIMA Roll NO :
MASTERS IN BUSINESS ADMINSTRATION
YEAR.
SUBMITTED TO
KARNATAKA STATE OPEN UNIVERSITY,
MYSORE
EDUPRO! INSTITUTE OF PROFESSIONAL STUDIES
LC CODE-..
SECTOR-7 DWARKA
NEW DELH
19

STUDENT DECLARATION
hereby declare that the Dessertation
EntitledCONSUMER BEHAVOUR TOWARDS MUTUAL FUNDS.
Submitted in partial fulfillment
E"ECUTIVE MASTERS OF BUSINESS ADMINISTRATION

De#$ee P$o#$am
F$om KARNATAKA STATE OPEN UNIVERSITY,
is my original work and not submitted for the award of any other degree, diploma, fellowship, or
any other similar title or prizes
Pla%e:&&&& S'#(&&&&&
Da)e&&&&&& Re#No&&&&
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CERTIFICATE
This is to certify that the report entitled "A STUDY ON CONSUMER BEHAVOR TOWARDS
MUTUAL FUNDS is submitted in partial fulfillment
E"ECUTIVE MASTERS OF BUSINESS ADMINISTRATION
De#$ee F$om
F$om KARNATAKA STATE OPEN UNIVERSITY,
Garima is the student of E*+,$o- I(.)')+)e O/ P$o/e..'o(al S)+*'e..Has worked under my
supervision and guidance .He/She has successfully completed the Project and report submitted
is satisfactory.
No part of this report has been submitted for the award of any other degree,diploma,fellowship
or the other similar titles or prizes and the work has not been published in any journal or
Magazine.
Re#'.)$a)'o( No&&&&&& 0HOD A%a*em'%.1
19

E"AMINER2S CERTIFICATION
The Dessertation submitted entitled "Consumer Behaviour Towards Mutual Funds
is approved and is acceptable in quality and form.

(nternal Examiner) (External Examiner)
19

STANDARD CHARTERED BANK
EDUPRO! INSTITUTE OF PROFESSIONAL STUDIES
PREPARED BY: Garima
ROLL NO :
TABLE OF CONTENTS
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TOPIC PAGE NO
ACKNOWLEDGEMENT 2
STANDARD CHARTERED BANK 3
RECENT ALLANCES AND DVELOPMENT 5
NTRODUCTON TO MUTUAL FUNDS 9
WHAT S A MUTUAL FUND 11
ORGANSATON OF A MUTUAL FUNDS 13
CHARACTERSTCS & OBJECTVES OF MUTUAL FUNDS 15
STRUCTURE OF A MUTUAL FUND 16
HSTORY OF MUTUAL FUNDS N NDA 17
TYPES OF MUTUAL FUNDS 19
ADVANTAGES OF MUTUAL FUNDS 24
DSADVANTAGES OF MUTUAL FUNDS 25
MUTUAL FUNDS NVESTNG STRATEGES 26
RSK ASSOCATED WTH MUTUAL FUNDS 27
METHODS OF MEASURNG RSK 29
HOW TO CALCULATE VALUE OF A MUTUAL FUND 30
RETURNS 33
TAX TREATMENT 38
How s A Mutual Fund Set Up? 42
ASSOCATON OF MUTUAL FUNDS 43
TPS ON BUYNG MUTUAL FUNDS 45
STANDARD CHARTERED MUTUAL FUND 46
PROBLEM DEFNTON 48
RESEARCH METHODOLOGY 74
ANALYSS OF THE REPORT 75
FNDNGS AND OBSERVATON 135
QUESTONNARE 149
BBLOGRAPHY 155
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ACKNOWLEDGEMENT
, Ms. Garima do hereby declare that the project report titled 3CONSUMER BEHAVIOUR
TOWARDS MUTUAL FUNDS4 is a genuine research work undertaken by me and it has not
been published anywhere earlier.
The project has been done by me during the summer training part of thecourse PGDM offered
by EDUPRO! INSTITUTE OF PROFESSIONAL STUDIES.
would like to thanks Mr. Bhupesh Harjai, Assistant Manager, Consumer Transaction Banking,
Standard Chartered Bank, for his continuous support and motivation during the summer training
and making of this project.
19

S)a(*a$* C5a$)e$e* Ba(6
S)a(*a$* C5a$)e$e* Ba(6 is a British bank headquartered in London with operations in more
than seventy countries. t operates a network of over 1,700 branches and outlets (including
subsidiaries, associates and joint ventures) and employs 73,000 people.
Because the bank's history is entwined with the development of the British Empire its operations
lie predominantly in former British colonies, though over the past two decades it has expanded
into countries that have historically had little British influence. t aims to provide a safe
regulatory bridge between these developing economies.
t now focuses on consumer, corporate, and institutional banking, and on the provision of
treasury servicesareas in which the Group had particular strength and expertise.
Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock
Exchange and is a constituent of the FTSE 100 ndex. ts largest shareholder is Temasek
Holdings.
The Early Years
The name Standard Chartered comes from the two original banks from which it was founded
and which merged in 1969 The Chartered Bank of ndia, Australia and China, and The
Standard Bank of British South Africa.
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The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal
Charter by Queen Victoria in 1853, while The Standard Bank was founded in the Cape Province
of South Africa in 1862 by another Scotsman John Paterson. Both companies were keen to
capitalize on the huge expansion of trade and to earn the handsome profits to be made from
financing the movement of goods from Europe to the East and to Africa.
n those early years, both banks prospered. Chartered opened its first branches in Bombay,
Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.
[2]
With the
opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871,
Chartered was well placed to expand and develop its business.
n South Africa, Standard, having established a considerable number of branches was
prominent in financing the development of the diamond fields of Kimberley from 1867 and later
extended its network further north to the new town of Johannesburg when gold was discovered
there in 1885. Half the output of the second largest gold field in the world passed through The
Standard Bank on its way to London.
Both banks at that time still quite separate companies survived the First World War and the
Depression, but were directly affected by the wider conflict of the Second World War in terms of
loss of business and closure of branches. There were also longer term effects for both banks as
countries in Asia and Africa gained their independence in the '50s and '60s.
Each had acquired other small banks along the way and spread their networks further. n 1969,
the banks decided to merge, and to counterbalance their existing network by expanding in
Europe and the United States, while continuing their expansion in their traditional markets in
Asia and Africa. All appeared to be going well, when in 1986 Lloyds Bank of the United Kingdom
made a hostile takeover bid for the Group.
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After having defeated the bid, Standard Chartered entered a period of change. t made
provisions against Third World debt exposure and loans to corporations and entrepreneurs who
could not meet their commitments. t also began a series of divestments notably in the United
States and South Africa, and entered into a number of asset sales.
Recent alliances and developments
n 2000, Standard Chartered acquired Grind lays Bank from ANZ Bank, increasing its presence
in private banking and further expanding its operations in ndia and Pakistan. Standard
Chartered retained Grind lays' private banking operations in London and Luxembourg and the
subsidiary in Jersey, all of which it integrated into its own private bank. This now serves high net
worth customers in Hong Kong, Dubai, and Johannesburg under the name Standard Chartered
Grind lays Offshore Financial Services. n ndia, Standard Chartered integrated most of Grind
lays' operations, making Standard Chartered the largest foreign bank in the country, despite
Standard Chartered having cut some branches and having reduced the staff from 5500 to 3500
people.
On 15 April 2005, the bank acquired Korea First Bank, beating HSBC in the bid. Since then the
bank has rebranded the branches as SC First Bank.
Standard Chartered completed the integration of its Bangkok branch and Standard Chartered
Nakornthon Bank in October, renaming the new entity Standard Chartered Bank (Thailand).
Standard Chartered also formed strategic alliances with Fleming Family & Partners to expand
private wealth management in Asia and the Middle East, and acquired stakes in ACB Vietnam,
Travelex, American Express Bank in Bangladesh and Bohai Bank in China.
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On 9 August 2006 Standard Chartered announced that it had acquired an 81% shareholding in
the Union Bank of Pakistan in a deal ultimately worth $511 million. This deal represented the
first acquisition by a foreign firm of a Pakistani bank and the merged bank, Standard Chartered
Bank (Pakistan), is now Pakistan's sixth largest bank.
On 22 October, 2006 Standard Chartered announced that it has received tenders for more than
51 per cent of the issued share capital of Hsinchu nternational Bank ("Hsinchu), established in
1948 in Hsinchu province in Taiwan. Standard Chartered, which had first entered Taiwan in
1985, acquired majority ownership of the bank, Taiwan's seventh largest private sector bank by
loans and deposits as at 30 June, 2006. Standard Chartered merged its existing three branches
with Hsinchu's 83, and then delisted Hsinchu nternational Bank, changing the bank's name to
Standard Chartered Bank (Taiwan) Limited). Prior to the merger, Hsinchu had suffered
extensive losses on defaulted credit card debt.
n 2007, Standard Chartered opened its Private Banking global headquarters in Singapore.
On 23 August, 2007 Standard Chartered entered into an agreement to buy a 49 percent of an
ndian brokerage firm (UT Securities) for $36 million in cash from Securities Trading
Corporation of ndia Ltd., with the option to raise its stake to 75 percent in 2008 and, if both
partners agree, to 100 percent by 2010. UT Securities offers broking, wealth management and
investment banking services across 60 ndian cities.
On 29 February 2008, Standard Chartered PLC announced it has received all the required
approvals leading to the completion of its acquisition of American Express Bank Ltd (AEB) from
the American Express Company (AXP). The total cash consideration for the acquisition is US$
823 million.
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Standard Chartered Buys American Express Bank
Standard Chartered paid $1.1bn (550m) to buy American Express's banking arm, which has a
customer base of institutions and wealthy individuals largely concentrated in emerging markets.
The deal will gave Standard Chartered access to 10,000 private banking clients with assets of
$22.5bn under management. t gave the group branch licences in ndia and Taiwan and takes it
into new territories such as Kazakhstan and Egypt.
American Express Bank (AEB) dates back to 1919 and predates the introduction of American
Express credit cards. But the American financial group has decided that its future lies in
payments, processing and cards.
A Standard Chartered spokesman said: "This is a very good fit with our own footprint. t's strong
in Hong Kong, Singapore, ndonesia and ndia."
Under the terms of the deal, Standard Chartered is paid $300m plus AEB's net asset value of
$860m. The transaction was financed from Standard Chartered's cash resources.
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Standard Chartered has made a string of recent purchases to bolster its banking presence in
emerging markets. t bought Taiwan's Hsinchu nternational Bank for 650m in September and
snapped up Pakistan's Union Bank for $511m. The group has bought stakes in banking
operations in ndonesia and China.
AEB's financial institutions group, which provides clearing and transaction services to other
banks, employs 700 people while the private banking arm has 400 staff. The Miami-based bank
has occasionally attracted the interest of regulators.
AEB agreed to forfeit $55m and pay $10m penalties in a settlement with the US Justice
Department over allegations that it had failed to maintain an effective anti-money laundering
program against international drug cartels. Standard Chartered's shares rose 61p to 15.30.
Standard Chartered Acquired 49% Stake in UT Sec for Rs 147 crore
Standard Chartered Bank has agreed to acquire 49 per cent stake in UT Securities from the
Securities Trading Corporation of ndia (STC) for Rs 147 crore in cash.
Under the arrangement, Standard Chartered Bank had the option to raise its stake by another
25 per cent in 2008 and gradually buy out 100 per cent of UT Securities by 2010, subject to
regulatory approvals.
"Under the arrangement, Standard Chartered has the option to increase its stake to 75 per cent
at a fixed price. n 2010, the bank can purchase the balance stake at a price based on a
formula, which caps the minimum and maximum price, said Mr Neeraj Swaroop, CEO-ndia,
Standard Chartered Bank.
O(l'(e ,la)/o$m
19

"The partnership will enable Standard Chartered to broaden its product offering in wealth
management and private banking within ndia and the non-resident product portfolio in footprint
countries, he added.
UT Securities offers retail broking, online trading, depository services, portfolio management
services, equities research, investment banking, fixed income securities and distribution of third
party financial products across 60 cities in ndia.
"One of the reasons why UT Securities was appealing to Standard Chartered Bank is its strong
online trading platform, said Mr G. Narayanan, Managing Director, STC.
C+.)ome$ 7a.e
STC, one of the leading primary dealers in the country, had bought 100 per cent of UT
Securities from the Administrator of the Specified Undertaking of the Unit Trust of ndia in
February 2006, for Rs 265 crore.
UT Securities reported a net profit of Rs 6.5 crore in 2006-07 and received Rs 65 crore in
revenues. The company has 41 branches and 174 franchises.
UT securities has 40,000 clients and around 70 per cent of the business comes from retail
broking. "UT Securities will provide us with a customer base in retail business and help us tap
the growing affluent segment of population. We would also like to grow the institutional business
with overseas linkages, Mr. Swaroop said.
The composition of the board of UT Securities will have four members from STC, three
members from Standard Chartered Bank and one or more independent members.
19

I(8e.)me() Se$8'%e.
E9+'): Sol+)'o(.
At Standard Chartered, we believe in an end to end approach to banking we believe that our
success is directly linked to helping you succeed. We offer you the full range of investment
products from the simple and classic options to the more evolved and structure ones.
With our ability to provide you a range of products that suit your customised needs, we give you
enormous opportunity to meet both your current and long term financial needs.
Mutual Funds
At Standard Chartered we put forward choice of over 300 funds offered by more than 15 fund
managers. We help you identify a suitable mix of Mutual Fund schemes spreading across
Equity, Balanced, Fixed ncome and Liquid Funds.
Equity Mutual Funds
Equity funds are schemes where more than 65% of the investments are done in equity and
equity related securities of various companies. However, the returns from these funds are
directly linked to the stock market and are more volatile as compared to those from fixed income
funds.
Balanced Funds
Balanced funds are schemes that invest in equity and debt instruments in varying proportions.
These funds supplement capital appreciation from equities with a steady return from debt
instruments. To a large extent, the returns depend on the performance of the equity portion in
the portfolio. There is some flexibility in changing the asset composition between equity and
debt and fund managers exploit this to buy the best asset class at each time.
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Tax Saving Funds
Tax savings funds are special products offered by mutual funds. The Equity Linked Savings
Schemes (ELSS) as they are popularly known give their investors the option of saving tax while
participating in the growth of the capital market. These funds have a lock-in-period of three
years.
Equity PMS
Standard Chartered Bank will assist you for Portfolio Management Services (PMS) by referring
to our partner Asset Management Companies. Our partner Asset Management Companies
conducts detailed and scientific analysis of various investment avenues to help you invest your
money suiting your customised needs
F';e* I(%ome Sol+)'o(.
Fixed Income Funds
These funds invest primarily in government and corporate debt. While fund holdings may
appreciate in value, the primary objective of these funds is to provide a steady cash flow to
investors.
Bonds
We offer a wide range of Fixed ncome solutions denominated in ndian Rupees such as:
Short dated securities like Commercial Paper, Bank Certificates of Deposits and
Government of ndia Treasury Bills (Tenors shorter than 1 year)
Long dated securities like Private Sector and Public Sector Corporate Bonds and
Government of ndia securities (Tenors longer than 1 year)
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Non Discretionary Portfolio Management Service (NDPMS) for Fixed ncome by referring
to Standard Chartered Securities ndia.
This enables you to customize your nvestments portfolio by leveraging the yield differentials
across different tenors as well as different ssuers. n simple terms, you can now invest in a
wide variety of securities in the relatively safe Fixed ncome space.
iquid Funds
Liquid Funds are schemes investing in short-term money market instruments including treasury
bills, commercial paper and certificates of deposit. These funds are distributed by Standard
Chartered Bank.
!eposits
Standard chartered bank offers wide variety of deposit options to suit different needs, including
Short Term Deposit, Reinvestment Deposit, and Simple Fixed Deposit.
oan "gainst Securities
The Loan Against Securities is Standard Chartered Bank's immediate overdraft facility against
Shares and Mutual Funds. t offers you a convenient and immediate line of credit just when you
want it. What's more, you pay for it only when you actually use it.
Al)e$(a)e Sol+)'o(.
Structured #otes
Rather than the traditional buy-and-hold approach, these products use derivatives and option
strategies to provide structured payouts. Certain structured products also offer the benefit of
capital protection.
19

Private Equity Funds
We partner with leading specialists to help you invest in private equity funds. These products
can help you to further diversify your portfolio while gaining from the long term benefits of
investing in prudently selected securities.
Real Estate Funds
We work with leading fund managers to help you invest in real estate funds unlike direct
purchase of property, these funds can participate in the entire life cycle of real estate projects
through dedicated experts. These can either be development or yield based.
A*8'.o$: < Re.ea$%5
Ris$ Pro%iling
To start with, we take you through a simple, easy-to-fill questionnaire; we gauge your appetite
for risk, for specific investment products and for your entire portfolio. So whether you should be
investing heavily into equity or in cash, whether that hot biotech fund is suitable for you, our
profiling gives you the right answers.
"sset "llocation "dvice
Our well established and robust investment process is specially designed to give you the best
possible investment experience. We understand your financial and risk profile through need
analysis and then help you select the right asset allocation and products to match your needs
followed by regular portfolio review and rebalancing. Our advisors help you create sound
portfolios and identify thematic opportunities across varied market cycles.
19

Mar$et &utloo$
To help equip clients with the latest insight, SCB WM team provides outlook on various markets
and asset classes to our esteemed clients. Our regular publications include Weekly Market View
and Monthly Market View covering global & local markets.
Mutual Fund Star Rating
One of our regular publications available to our valued clients includes our in house SCS Star
Ratings - A Concise, Pertinent Analysis on Mutual Funds. The rating system designed is based
on the combination of key performance metrics including nformation Ratio, Downside Risk and
Jenson's Alpha, providing a bird's eye view on key mutual funds across common parameters.
INTRODUCTION TO MUTUAL FUNDS
The ndian mutual fund industry in recent years has exponential growth and yet it is still at a
very nascent stage. We believe that the mutual fund industry has grown in terms of size or
choices available, but is a long distance from being regarded as a mature one. To understand
this one has to look at the global scenario. f one look at the global mutual fund industry, one
has see that assets have grown by 185% between 2000 and 2006. n comparison, ndian
assets outgrew at a staggering 446%, where as the US only grew by 158% and Europe by
242%.
As our economy continues to grow at a spectacular rate there is a huge amount of wealth
creating opportunities surfacing everywhere. Financial Planners have an immensely responsible
19

role to play by identifying these opportunities and channelling them into wealth creating
initiatives that would enable people to address their financial needs. To give an overview of a
recent study conducted by nvest ndia, there are about 321.8 millions paid workers in ndia. Of
this only 5.3 millions have an exposure to mutual funds. This is less than 2% of total work force.
Even more interesting fact is that 77% of them reside in super metros and Tier cities. Again,
about 4 millions come in the Rs 90,000-5 lack income bracket. The penetration among the less
than Rs 90,000 and more than Rs 5 lack income bracket is very low. The need for the hour is to
expend the market boundaries and expand scope in Tier and Tier cities.
ndia is also one of the fastest growing markets for mutual funds, attracting a host of global
players. Hence, investors will have an even wider range of products to choose from. The
combination of the increase in number of fund houses along with new schemes and the
increase in the number of people parking their saving in mutual funds has resulted in per cent
during April-December 2007. This now stands at Rs 30314 billion as against Rs 13476 billion for
the corresponding period last year.
As on January 31, 2008, ndian assets stood at $ 137 billion and are growing. We already have
many experts expressing their concentration at the frequency of NFO launches. Yet we have
less than 1000 schemes in ndia, compared to 15000 in the US and 36000 in Europe. The gap
is significant and has to be filled up with unique and better priced products.
There has also been a rapid rise in the HN segment. ndia stands only second-best to Korea in
the Asia- Pacific region in terms of percentage growth. The total HNW (High Net Worth
ndividual) assets stood at about Rs 12 trillion and their assets are distributed over various
assets classes. To top them MFs will have to come up with structured products, real estate
funds, commodity based funds, art funds and the like.
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ndian households have also increased their exposure to the capital market. Very interestingly,
the MF proportion in this has increased. n fact, there has been more than 2000% growth in the
assets coming to MFs in the last 3 years. Statistics reveal that a higher portion of investors'
savings is now invested in market-linked avenues like mutual funds as compared to earlier
times.
PASSING THROUGH THE GROWTH PHASE
We have always read that fund industry has seen three phases the UT phase, the public
sector phase and the post UT phase. But if we study a bit more closely, there have been four
clear stages.
- UT Phase (1964 1987)
- Public sector phase (1987 1993), during which the likes of SB,BOB and Canara Bank
comes in to existence
- The emergence phase (1993 2003), when international players come in to ndia. Some
have wound up their operations and a few of them are looking for re-entry.
- Post UT phase (2003 2007), when domestic players along with some global players
have consolidated the MF industry.
And now we are entering Phase V of the industry, when not only are newer players readying to
enter the market but are also looking at penetration and market expansion. All in all, this is a
win-win situation for ndian investors. We have also come up a long way from plain vanilla
equity funds to hybrid funds, from balanced funds to arbitrage funds, from sectoral funds to
quant strategies.
CHANGING INVESTOR PROFILE
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Today's investor is quite young and very unlike the older generation. He follows a contrarian's
approach. He buys when the market flips and books profit when it rallies. While the market
corrected by almost 22% during the January mayhem, mutual funds were net buyers to the tune
of Rs 4,200 crores. Much of this support came from domestic investors. The retail participation
in equity schemes has also increased tremendously. The total AUM of 330 schemes in
December last year stood at Rs 2,157 billion as compared to 197 schemes and Rs92 billions n
march 2000. Also in the last three years, mobilizations from NFOs stood at Rs 95,000 crores.
Although many complain that the industry is still brokerage driven, the trends clearly suggest
that investors prefer NFOs to enter equities.
Our economy is booming, we have now a sustained GDP growth of 8%, which is likely to remain
at this level for years to come, our per capita income is about to touch $ 1000 by the end of
2008. The number of AMCs is increasing. Their presence across ndia is expending. Distributors
too are expanding their networks. Besides, the regulator has taken up measures to safeguard
investor interests. These are all drivers for the fund industry. Together, these greet investor
warmly. The need of the investor populace has changed, resulting in a change in asset
management styles. n a way, this is leading to the design of new and competitively-priced
products, implying greater emphasis on higher quality of intermediation. This in itself is both an
opportunity and a challenge. As our economy continuous to grow at a spectacular rate there is a
huge amount of wealth creating opportunities surfacing everywhere. Financial Planners have an
immensely responsible role to play by identifying these opportunities and channeling them into
wealth creating initiatives that would enable people to adequately address their financial needs.
19

WHAT IS A MUTUAL FUND
A m+)+al /+(* is a professionally-managed form of collective investments that pools money
from many investors and invests it in stocks, bonds, short-term money market instruments,
and/or other securities. n a mutual fund, the fund manager, who is also known as the portfolio
manager, trades the fund's underlying securities, realizing capital gains or losses, and collects
the dividend or interest income. The investment proceeds are then passed along to the
individual investors. The value of a share of the mutual fund, known as the net asset value per
share (NAV) is calculated daily based on the total value of the fund divided by the number of
shares currently issued and outstanding.
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Legally known as an "open-end company" under the nvestment Company Act of 1940(the
primary regulatory statute governing investment companies), a mutual fund is one of three basic
types of investment companies available in the United States. Outside of the United States (with
the exception of Canada, which follows the U.S. model), mutual fund may be used as a generic
term for various types of collective investment vehicle. n the United Kingdom and Western
Europe (including offshore jurisdictions), other forms of collective investment vehicle are
prevalent, including unit trusts, open-ended investment companies (OECs), SCAVs and
unitized insurance funds. n Australia and New Zealand the term "mutual fund" is generally not
used; the name "managed fund" is used instead.
Mutual funds belong to the class of firms known as investment companies. While companies
may offer a "family" of funds under a single umbrella name and common administration - for
example, the Vanguard Group, Fidelity nvestments, or Strong Funds - each fund offered is a
separately incorporated investment company. These are entities that pool investor money to buy
the securities that make up the fund's portfolio. The idea behind this pooling of investor
money is to give each investor the benefits that come from the ownership of a diversified
portfolio of securities chosen and monitored daily by experience, professional advisers.
The funds create and sell new shares on demand. nvestors` shares represent a portion of the
fund's portfolio and income proportional to the number of shares they purchase. ndividual
shareholders of the mutual funds have voting rights in the operation of the fund, just as most
holders of common stocks in corporations have the right to vote on certain issues involving the
running of the company. The key attribute of a mutual fund, regardless of how it is structured, is
that the investor is entitled to receive on demand, or within a specified period after demand, an
amount computed by reference to the value of the investor's proportionate interest in the net
19

assets of the mutual fund. This means that the owner of mutual fund shares can "cash in," or
redeem his or her shares at any time.
Mutual funds, therefore, are considered a liquid investment. The investor's selling (redemption)
price may be higher or lower than the purchase price. t all depends on the performance of the
fund's portfolio. The fund has an adviser who charges a fee for managing the portfolio. The
adviser decides when and what securities to buy and sell, and is responsible for providing or
causing to be provided all services required by the mutual fund in carrying on its day-to-day
activities. All fund investors get this built-in portfolio management whether they own 50 shares
or 10,000.The adviser generally purchases many different securities for the portfolio, since
investment theory holds that diversification reduces risk. t is this diminished risk that is one of
the attractions of mutual funds. The fund also has a custodian, usually a financial institution
such as a bank, which holds all cash and securities for the fund.
19

ORGANISATION OF A MUTUAL FUND
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There are many entities involved and the diagram below illustrates the organizational set up of
a Mutual Fund:
Mutual Funds diversify their risk by holding a portfolio of instead of only one asset. This is
because by holding all your money in just one asset, the entire fortunes of your portfolio
depend on this one asset. By creating a portfolio of a variety of assets, this risk is substantially
reduced.
Mutual Fund investments are not totally risk free. n fact, investing in Mutual Funds contains
the same risk as investing in the markets, the only difference being that due to professional
management of funds the controllable risks are substantially reduced. A very important risk
involved in Mutual Fund investments is the market risk. However, the company specific risks
are largely eliminated due to professional fund management.
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IMPORTANT CHARACTERISTICS OF A MUTUAL FUND
A Mutual Fund actually belongs to the investors who have pooled their Funds. The
ownership of the mutual fund is in the hands of the nvestors.
A Mutual Fund is managed by investment professional and other Service providers, who
earns a fee for their services, from the funds.
The pool of Funds is invested in a portfolio of marketable investments.
The value of the portfolio is updated every day.
The investor's share in the fund is denominated by "units. The value of the units changes
with change in the portfolio value, every day. The value of one unit of investment is called
net asset value (NAV).
The investment portfolio of the mutual fund is created according to the stated nvestment
objectives of the Fund.
OBJECTIVES OF A MUTUAL FUND
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To provide an opportunity for lower income groups to acquire without much difficulty,
property in the form of shares.
To Cater mainly of the need of individual investors, whose means are small?
To manage investors portfolio that provides regular income, growth, Safety, liquidity, tax
advantage, professional management and diversification.
STRUCTURE OF A MUTUAL FUND
19

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19

T5e E8ol+)'o(
The formation of Unit Trust of ndia marked the evolution of the ndian mutual fund industry in
the year 1963. The primary objective at that time was to attract the small investors and it was
made possible through the collective efforts of the Government of ndia and the Reserve Bank
of ndia. The history of mutual fund industry in ndia can be better understood divided into
following phases:
P5a.e = E.)a7l'.5me() a(* G$o>)5 o/ U(') T$+.) o/ I(*'a ? =@AB?CD
Unit Trust of ndia enjoyed complete monopoly when it was established in the year 1963 by an
act of Parliament. UT was set up by the Reserve Bank of ndia and it continued to operate
under the regulatory control of the RB until the two were de-linked in 1978 and the entire
control was transferred in the hands of ndustrial Development Bank of ndia (DB). UT
launched its first scheme in 1964, named as Unit Scheme 1964 (US-64), which attracted the
largest number of investors in any single investment scheme over the years.
UT launched more innovative schemes in 1970s and 80s to suit the needs of different
investors. t launched ULP in 1971, six more schemes between 1981-84, Children's Gift Growth
Fund and ndia Fund (ndia's first offshore fund) in 1986, Master share (ndia's first equity
diversified scheme) in 1987 and Monthly ncome Schemes (offering assured returns) during
1990s. By the end of 1987, UT's assets under management grew ten times to Rs 6700 crores.
P5a.e II E()$: o/ P+7l'% Se%)o$ F+(*. ? =@CD?=@@E
The ndian mutual fund industry witnessed a number of public sector players entering the
market in the year 1987. n November 1987, SB Mutual Fund from the State Bank of ndia
became the first non-UT mutual fund in ndia. SB Mutual Fund was later followed by Canara
bank Mutual Fund, LC Mutual Fund, ndian Bank Mutual Fund, Bank of ndia Mutual Fund, GC
19

Mutual Fund and PNB Mutual Fund. By 1993, the assets under management of the industry
increased seven times to Rs. 47,004 crores. However, UT remained to be the leader with about
80% market share.
=@@F?
@E
Amo
+()
Mo7'l
'.e*
A..e).
U(*e$
Ma(a#e
me()
Mo7'l'.a
)'o( a.
G o/
#$o..
Dome.)'
%
Sa8'(#.
UTI
11,05
7
38,247 5.2%
P+7l'%
Se%)o$
1,964 8,757 0.9%
To)al
13,02
1
47,004 6.1%
P5a.e III Eme$#e(%e o/ P$'8a)e Se%)o$ F+(*. ? =@@E?@A
The permission given to private sector funds including foreign fund management companies
(most of them entering through joint ventures with ndian promoters) to enter the mutual fund
industry in 1993, provided a wide range of choice to investors and more competition in the
industry. Private funds introduced innovative products, investment techniques and investor-
servicing technology. By 1994-95, about 11 private sector funds had launched their schemes.
19

P5a.e IV G$o>)5 a(* SEBI Re#+la)'o( ? =@@A?FHHB
The mutual fund industry witnessed robust growth and stricter regulation from the SEB after the
year 1996. The mobilization of funds and the number of players operating in the industry
reached new heights as investors started showing more interest in mutual funds.
nventors' interests were safeguarded by SEB and the Government offered tax benefits to the
investors in order to encourage them. SEB (Mutual Funds) Regulations, 1996 was introduced
by SEB that set uniform standards for all mutual funds in ndia. The Union Budget in 1999
exempted all dividend incomes in the hands of investors from income tax. Various nvestor
Awareness Programmes were launched during this phase, both by SEB and AMF, with an
objective to educate investors and make them informed about the mutual fund industry.
n February 2003, the UT Act was repealed and UT was stripped of its Special legal status as a
trust formed by an Act of Parliament. The primary objective behind this was to bring all mutual
fund players on the same level. UT was re-organized into two parts: 1. The Specified
Undertaking, 2. The UT Mutual Fund
P5a.e V G$o>)5 a(* Co(.ol'*a)'o( ? FHHB O(>a$*.
The industry has also witnessed several mergers and acquisitions recently, examples of which
are acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund and
PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more international mutual fund
players have entered ndia like Fidelity, Franklin Templeton Mutual Fund etc. There were 29
funds as at the end of March 2006. This is a continuing phase of growth of the industry through
consolidation and entry of new international and private sector players.
19

T:,e. o/ M+)+al F+(*.
= S%5eme. a%%o$*'(# )o Ma)+$'): Pe$'o*:?
A mutual fund scheme can be classified into open-ended scheme or close-ended
scheme depending on its maturity period.
O,e(?e(*e* F+(*I S%5eme:-
19

An open-ended fund or scheme is one that is available for
subscription and repurchase on a continuous basis. These
schemes do not have a fixed maturity period. nvestors can
conveniently buy and sell units at Net Asset Value (NAV)
related prices which are declared on a daily basis. The key
feature of open-end schemes is liquidity.
Clo.e?e(*e* F+(*I S%5eme:-
A close-ended fund or scheme has a stipulated maturity
period e.g. 5-7 years. The fund is open for subscription only
during a specified period at the time of launch of the scheme.
nvestors can invest in the scheme at the time of the initial
public issue and thereafter they can buy or sell the units of the
scheme on the stock exchanges where the units are listed. n
order to provide an exit route to the investors, some close-
ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related
prices. SEB Regulations stipulate that at least one of the two
exit routes is provided to the investor i.e. either repurchase
facility or through listing on stock exchanges. These mutual
funds schemes disclose NAV generally on weekly basis.
2. S%5eme. a%%o$*'(# )o I(8e.)me() O7Je%)'8e:-
A scheme can also be classified as growth scheme, income scheme,
or balanced scheme considering its investment objective. Such
19

schemes may be open-ended or close-ended schemes as described
earlier. Such schemes may be classified mainly as follows:
Growth / Equity Oriented Scheme:-
The aim of growth funds is to provide capital appreciation over the
medium to long- term. Such schemes normally invest a major part of
their corpus in equities. Such funds have comparatively high risks.
These schemes provide different options to the investors like
dividend option, capital appreciation, etc. and the investors may
choose an option depending on their preferences. The investors
must indicate the option in the application form. The mutual funds
also allow the investors to change the options at a later date. Growth
schemes are good for investors having a long-term outlook seeking
appreciation over a period of time.
ncome / Debt Oriented Scheme:-
The aim of income funds is to provide regular and steady income to
investors. Such schemes generally invest in fixed income securities
such as bonds, corporate debentures, Government securities and
money market instruments. Such funds are less risky compared to
equity schemes. These funds are not affected because of
fluctuations in equity markets. However, opportunities of capital
appreciation are also limited in such funds. The NAVs of such funds
are affected because of change in interest rates in the country. f the
interest rates fall, NAVs of such funds are likely to increase in the
19

short run and vice versa. However, long term investors may not
bother about these fluctuations.
Balanced Fund:-
The aim of balanced funds is to provide both growth and regular
income as such schemes invest both in equities and fixed income
securities in the proportion indicated in their offer documents. These
are appropriate for investors looking for moderate growth. They
generally invest 40-60% in equity and debt instruments. These funds
are also affected because of fluctuations in share prices in the stock
markets. However, NAVs of such funds are likely to be less volatile
compared to pure equity funds.
Money Market or Liquid Fund:-
These funds are also income funds and their aim is to provide easy
liquidity, preservation of capital and moderate income. These
schemes invest exclusively in safer short-term instruments such as
treasury bills, certificates of deposit, commercial paper and inter-
bank call money, government securities, etc. Returns on these
schemes fluctuate much less compared to other funds. These funds
are appropriate for corporate and individual investors as a means to
park their surplus funds for short periods.
Gilt Fund:-
19

These funds invest exclusively in government securities. Government
securities have no default risk. NAVs of these schemes also fluctuate due
to change in interest rates and other economic factors as is the case with
income or debt oriented schemes.
ndex Funds :-
ndex Funds replicate the portfolio of a particular index such as the BSE
Sensitive index, S&P NSE 50 index (Nifty), etc these schemes invest in the
securities in the same weight age comprising of an index. NAVs of such
schemes would rise or fall in accordance with the rise or fall in the index,
though not exactly by the same percentage due to some factors known as
"tracking error" in technical terms. Necessary disclosures in this regard are
made in the offer document of the mutual fund scheme.
E Se%)o$ .,e%'/'% /+(*.I.%5eme.:?
These are the funds/schemes which invest in the securities of only those sectors
or industries as specified in the offer documents. E.g. Pharmaceuticals, Software,
Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in
these funds are dependent on the performance of the respective
sectors/industries. While these funds may give higher returns, they are more risky
compared to diversified funds. nvestors need to keep a watch on the performance
of those sectors/industries and must exit at an appropriate time. They may also
seek advice of an expert.
B Ta; Sa8'(# S%5eme.:?
19

These schemes offer tax rebates to the investors under specific provisions of the
ncome Tax Act, 1961 as the Government offers tax incentives for investment in
specified avenues. E.g. Equity Linked Savings Schemes (ELSS). Pension
schemes launched by the mutual funds also offer tax benefits. These schemes are
growth oriented and invest pre-dominantly in equities. Their growth opportunities
and risks associated are like any equity-oriented scheme.
K F+(* o/ F+(*. 0FoF1 .%5eme:?
A scheme that invests primarily in other schemes of the same mutual fund or other
mutual funds is known as a FoF scheme. A FoF scheme enables the investors to
achieve greater diversification through one scheme. t spreads risks across a
greater universe.
A Loa* o$ (o?loa* F+(*:?
A Load Fund is one that charges a percentage of NAV for entry or exit. That is,
each time one buys or sells units in the fund, a charge will be payable. This charge
is used by the mutual fund for marketing and distribution expenses. Suppose the
NAV per unit is Rs.10. f the entry as well as exit load charged is 1%, then the
investors who buy would be required to pay Rs.10.10 and those who offer their
units for repurchase to the mutual fund will get only Rs.9.90 per unit. The investors
should take the loads into consideration while making investment as these affect
their yields/returns. However, the investors should also consider the performance
track record and service standards of the mutual fund which are more important.
Efficient funds may give higher returns in spite of loads. A no-load fund is one that
does not charge for entry or exit. t means the investors can enter the
19

fund/scheme at NAV and no additional charges are payable on purchase or sale of
units.
ADVANTAGES OF MUTUAL FUND
S
No
A*8a()a#
e
Pa$)'%+la$.
=
Po$)/ol'o
D'8e$.'/'%
a)'o(
Mutual Funds invest in a well-diversified portfolio of securities
which enables investor to hold a diversified investment
portfolio (whether the amount of investment is big or small).
F
P$o/e..'o
(al
Ma(a#em
e()
Fund manager undergoes through various research works
and has better investment management skills which ensure
higher returns to the investor than what he can manage on his
own.
E
Le..
R'.6
nvestors acquire a diversified portfolio of securities even with
a small investment in a Mutual Fund. The risk in a diversified
portfolio is lesser than investing in merely 2 or 3 securities.
B Lo>
T$a(.a%)'
Due to the economies of scale (benefits of larger volumes),
mutual funds pay lesser transaction costs. These benefits are
19

o( Co.). passed on to the investors.
K L'9+'*'):
An investor may not be able to sell some of the shares held
by him very easily and quickly, whereas units of a mutual fund
are far more liquid.
A
C5o'%e o/
S%5eme.
Mutual funds provide investors with various schemes with
different investment objectives. nvestors have the option of
investing in a scheme having a correlation between its
investment objectives and their own financial goals. These
schemes further have different plans/options
D
T$a(.,a$
e(%:
Funds provide investors with updated information pertaining
to the markets and the schemes. All material facts are
disclosed to investors as required by the regulator.
C Fle;'7'l'):
nvestors also benefit from the convenience and flexibility
offered by Mutual Funds. nvestors can switch their holdings
from a debt scheme to an equity scheme and vice-versa.
Option of systematic (at regular intervals) investment and
withdrawal is also offered to the investors in most open-end
schemes.
@ Sa/e):
Mutual Fund industry is part of a well-regulated investment
environment where the interests of the investors are protected
by the regulator. All funds are registered with SEB and
complete transparency is forced.
19

D'.a*8a()a#e. o/ I(8e.)'(# T5$o+#5 M+)+al F+(*.
S
No
D'.a*8a
()a#e
Pa$)'%+la$.
=
Co.).
Co()$ol
No) '(
)5e
Ha(*. o/
a(
I(8e.)o$
nvestor has to pay investment management fees and fund
distribution costs as a percentage of the value of his
investments (as long as he holds the units), irrespective of
the performance of the fund.
F
No
C+.)om'
-e*
Po$)/ol'o
.
The portfolio of securities in which a fund invests is a
decision taken by the fund manager. nvestors have no right
to interfere in the decision making process of a fund
manager, which some investors find as a constraint in
achieving their financial objectives.
E D'//'%+l):
'(
Sele%)'(
Many investors find it difficult to select one option from the
plethora of funds/schemes/plans available. For this, they
may have to take advice from financial planners in order to
19

# a
S+')a7le
F+(*
S%5eme
invest in the right fund to achieve their objectives.
M+)+al F+(* I(8e.)me() S)$a)e#'e.
Systematic nvestment Plan (SPs):
These are best suited for young people who have started their careers and need to build their
wealth. SPs entail an investor to invest a fixed sum of money at regular intervals in mutual fund
scheme the investor has chosen. For instance an investor opting for SP in xyz mutual fund
scheme will need to invest a certain sum of money every month / quarter /half year in the
scheme.
Systematic Withdrawal Plan (SWPs):
19

These plans are best suited for people nearing retirement. n these plans an investor invests in
a mutual fund scheme and is allowed to withdraw a fixed sum of money at regular intervals to
take care of expenses.
Systematic Transfer Plan (STPs):
They allow the investors to transfer on a periodic basis a specified amount from one scheme to
another within the same fund family meaning two schemes belonging to the same mutual fund.
A transfer will be treated as redemption of units from the scheme from which the transfer is
made .Such redemption or investment will be at the applicable NAV. This service allows the
investor to manage his investment actively to achieve his objectives. Many funds do not even
charge even any transaction fee for this service an added advantage for the active investor.
Pe$/o$ma(%e E8al+a)'o(
PARAMETERS OF MUTUAL FUND EVALUATION:
Risk
Returns
Liquidit
E!"ense Rati#
$#m"#siti#n #f P#rtf#li#
19

Risks Associated With Mutual Funds
nvesting in mutual funds as with any security, does not come without risk. One of the most
basic economic principles is that risk and reward are directly correlated. n other words, the
greater the potential risk, the greater the potential return. The types of risk commonly associated
with mutual funds are:
Market Risk:
Market risk relate to the market value of a security in the future. Market prices fluctuate and are
susceptible to economic and financial trends, supply and demand, and many other factors that
cannot be precisely predicted or controlled.
Political Risk:
Changes in the tax laws, trade regulations, administered prices etc. is some of the many
political factors that create market risk. Although collectively, as citizens, we have indirect
control through the power of our vote, individually as investors, we have virtually no control.
nflation Risk:
nflation or purchasing power risk, relates to the uncertainty of the future purchasing power of
the invested rupees. The risk is the increase in cost of the goods and services, as measured by
the Consumer Price ndex.
nterest Rate Risk:
nterest Rate risk relates to the future changes in interest rates. For instance, if an investor
invests in a long term debt mutual fund scheme and interest rate increase, the NAV of the
scheme will fall because the scheme will be end up holding debt offering lowest interest rates.
Business Risk:
19

Business Risk is the uncertainty concerning the future existence, stability and profitability of the
issuer of the security. Business Risk is inherent in all business ventures. The future financial
stability of a company cannot be predicted or guaranteed, nor can the price of its securities.
Adverse changes in business circumstances will reduce the market price of the company's
equity resulting in proportionate fall in the NAV of mutual fund scheme, which has invested in
the equity of such a company.
Economic Risk:
Economic Risk involves uncertainty in the economy, which, in turn can have an adverse
effect on a company's business. For instance, if monsoons fall in a year, equity stocks of
agriculture bases companies will fall and NAVs of mutual funds, which have invested in such
stocks, will fall proportionately.
Me)5o*. o/ Mea.+$'(# R'.6
There are 3 different methods with the help of which we can measure the risk.
I Be)a Coe//'%'e() Mea.+$e O/ R'.6 :
Beta relates a fund's return with a market index. t basically measures the sensitivity of funds
return to changes in market index.
f Beta = 1
Fund moves with the market i.e. Passive fund
f Beta < 1
19

Fund is less volatile than the market i. e Defensive Fund
f Beta > 1
Funds will give higher returns when market rises & higher losses when market falls i.e.
Aggressive Fund.
II E; LMa$6. o$ R?.9+a$e* Mea.+$e O/ R'.6 :
Ex Marks represents co relation with markets. Higher the Ex-marks lower the risk of the fund
because a fund with higher Ex-marks is better diversified than a fund with lower Ex-marks.
III S)a(*a$* De8'a)'o( Mea.+$e O/ R'.6 :
t is a statistical concept, which measures volatility. t measures the fluctuations of fund's
returns around a mean level. Basically it gives you an idea of how volatile your earnings are. t
is broader concept than BETA. t also helps in measuring total risk and not just the market risk
of the portfolio.
Ho> )o Cal%+la)e )5e Val+e o/ a M+)+al F+(*:
The investors' funds are deployed in a portfolio of securities by the fund manager. The value of
these investments keeps changing as the market price of the securities change. Since investors
are free to enter and exit the fund at any time, it is essential that the market value of their
investments is used to determine the price at which such entry and exit will take place. The net
assets represent the market value of assets, which belong to the investors, on a given date.
19

Net Asset Value or NAV of a mutual fund is the value of one unit of investment in the fund, in net
asset terms.
NAV M Ne) A..e). o/ )5e .%5eme I N+m7e$ o/ U('). O+).)a(*'(#
Where Net Assets are calculated as:-
(Market value of investments + current assets and other assets + Accrued income current
liabilities and other liabilities less accrued expenses) / No. of Units Outstanding as at the NAV
date
NAV of all schemes must be calculated and published at least weekly for closed-end schemes
and daily for open-end schemes.

The major factors affecting the NAV of a fund are:
Sale and purchase of securities
Sale and repurchase of units
Valuation of assets
Accrual of income and expenses
19

SEB requires that the fund must ensure that repurchase price is not lower than 93% of NAV
(95% in the case of a closed-fund). On the other side, a fund may sell new units at a price that
is different from the NAV, but the sale price cannot be higher than 107 % of NAV. Also the
difference between the repurchase price and the sale price of the unit is not permitted to exceed
7% of the sale price.
Mea.+$'(# M+)+al F+(* Pe$/o$ma(%e:
We can measure mutual fund's performance by different method:
A7.ol+)e Re)+$( Me)5o*:
Percentage change in NAV is an absolute measure of return, which finds the NAV appreciation
between two points of time, as a percentage.
E .g: f NAV of one fund changes from Rs.20 to Rs.22 in 12 months then
A7.ol+)e $e)+$( = (22 20)/20 X 100 =10%

S'm,le A((+al Re)+$( Me)5o* :
Converting a return value for a period other than one year, into a value for one year, is called as
animalisation. n order to annualize a rate, we find out what the return would be for a year, if the
return behaved for a year, in the same manner it did, for any other fractional period.
19

E .g: f NAV of one fund changes from Rs.20 to Rs.22 in 6 months then
A((+al Re)+$( = (22 20) /20 X 12/6 X 100 = 20%
To)al Re)+$( Me)5o*:
The total return method takes into account the dividends distributed by the mutual fund, and
adds it to the NAV appreciation, to arrive at returns.
To)al Re)+$( =
(Dividend distributed + Change in NAV)/ NAV at the start X 100
E .g: f NAV of one fund changes from Rs.20 to Rs.22 in 6 months if in between dividend of Rs.
4 has been distributed then
To)al Re)+$( = {4 + (22 20)}/20 X 100 = 30%
To)al Re)+$( >5e( *'8'*e(* '. $e'(8e.)e*:
This method is also called the return on investment (RO) method. n this method, the dividends
are reinvested into the scheme as soon as they are received at the then prevailing NAV (ex-
dividend NAV).
= ((Value of holdings at the end of the period/ value of the holdings at the beginning) 1)*100
E.g. an investor buys 100 units of a fund at Rs. 10.5 on January 1, 2007. On June 30, 2007 he
receives dividends at the rate of 10%. The ex-dividend NAV was Rs. 10.25. On December 31,
2007, the fund's NAV was Rs. 12.25.
Value of holdings at the beginning period= 10.5*100= 1050
Number of units re-invested = 100/10.25 = 9.756
End period value of investment = 109.756*12.25 = 1344.51 Rs.
19

Re)+$( o( I(8e.)me() = ((1344.51/1050)-1)*100
= 28.05%
Com,o+(*e* A8e$a#e A((+al Re)+$( Me)5o*:
This method is basically used for calculating the return for more than 1 year. n this method
return is calculated with the following formula:
A = P X (1 + R / 100)
N
Where P = Principal invested
A = maturity value
N = period of investment in years
R = Annualized compounded interest rate in %
R = {(Nth root of A / P) 1} X 100
E. g: f amount invested is Rs. 100 & in the end we get return of Rs. 200 & period of investment
is 10 years then annualized compounded return is
200 = 100 (1 + R / 100)
10

Ra)e = 7.2 %
RETURNS
Returns have to be studied along with the risk. A fund could have earned higher return than the
benchmark. But such higher return may be accompanied by high risk. Therefore, we have to
compare funds with the benchmarks, on a risk adjusted basis. William Sharpe created a metric
for fund performance, which enables the ranking of funds on a risk adjusted basis.
19

S5a$,e Ra)'o = Risk Premium
Funds Standard Deviation
T$e:(o$ Ra)'o = Risk Premium
Funds Beta
R'.6 P$em'+m = Difference between the Fund's Average return and Risk free return on
government security or treasury bill over a given period .
LINUIDITY'
Most of the funds being sold today are open-ended. That is, investors can sell their existing
units, or buy new units, at any point of time, at prices that are related to the NAV of the fund on
the date of the transaction. Since investors continuously enter and exit funds, funds are actually
able to provide liquidity to investors, even if the underlying markets, in which the portfolio is
invested, may not have the liquidity that the investor seeks.
E"PENSE RATIO'
Expense ratio is defined as the ratio of total expenses of the fund to the average net assets of
the fund. Expense ratio can actually understate the total expenses, because brokerage paid on
transactions of a fund are not included in the expenses. According to the current SEB norms,
brokerage commissions are capitalized and included in the cost of the transactions.
E;,e(.e $a)'o = Total Expenses
Average Net Assets
COMPOSITION OF THE PORTFOLIO:
19

Credit quality of the portfolio is measured by looking at the credit ratings of the investments in
the portfolio. Mutual Fund fact sheets show the composition of the portfolio and the investments
in various asset classes over time.
Portfolio turnover rate is the ratio of lesser of asset purchased or sold by funds in the market to
the net assets of the fund.
f Portfolio ratio is 100% means portfolio has been changed fully. When Portfolio ratio is high
means expense ratio is high.
Po$)/ol'o Ra)'o = Total Sales & Purchase
Net Assets of fund
n order to meaningfully compare funds some level of similarity in the following factors has to be
ensured:
Size of the funds
nvestment objective
Risk profile
Portfolio composition
Expense ratios
Fund evaluation against (enchmar$:
Funds can be evaluated against some performance indicators which are known as benchmarks.
19

There are 3 types of benchmarks:
Relative to market as whole
Relative to other comparable financial products
Relative to other mutual funds
Relative to mar$et as )hole'
There are different ways to measure the performance of fund w.r.t market as
E9+'): F+(*.
I(*e; F+(* An ndex fund invests in the stock comprising of the index in the same ratio. This
is a passive management style.
For example,
Market ndex Fund - BSE Sensex
Nifty ndex Fund - NFTY
The difference between the return of this fund and its index benchmark can be explained by
"TRACKNG ERROR.
A%)'8e E9+'): F+(*.:
19

The fund manager actively manages this fund. To evaluate performance in such case we have
to select an appropriate benchmark.
Large diversified equity fund - BSE 100
Sector fund - Sectoral ndices
De7) F+(*.:
Debt fund can also be judged against a debt market index e.g. -BEX
Rela)'8e )o o)5e$ %om,a$a7le /'(a(%'al ,$o*+%).:
19

S%5eme. Re)+$(
Co(8e('e(%e
Sa/e): Vola)'l'): L'9+'*'):
Equity High
Moderate
Low High High
F Bonds Moderate
High
High Moderate Moderate
Corporate
Debentures
Moderate
Low
Moderate Moderate Low
Company Fixed
Deposits
Moderate
Moderate
Low Low Low
Bank Deposits Low
High
High Low High
PPF Moderate
High
High Low Moderate
Life nsurance Low
Moderate
High Low Low
19

Gold Moderate
Low
High Moderate Moderate
Real Estate High
Low
Moderate High Low
Mutual Funds High High Moderate High
S%5eme. I(8e.)me()
O7Je%)'8e
R'.6
Tole$a(%e
I(8e.)me()
Ho$'-o(
Equity Term Capital Appreciation High Long
F Bonds ncome Low Medium to Long
term
Corporate
Debentures
ncome High Moderate Medium to Long
term
Company Fixed
Deposits
ncome Moderate Low Medium
Bank Deposits ncome Generally Flexible all terms
PPF ncome Low Long
Life nsurance Risk Cover Low Long
19

Gold nflation Hedge Low Long
Real Estate nflation Hedge Low Long
TA" TREATMENT FOR THE INVESTORS 0UNITHOLDERS1:?
Ta; 7e(e/'). o/ '(8e.)'(# '( )5e M+)+al F+(*
As per the taxation laws in force as at the date of the Offer Document, some broad income tax
implications of investing in the units of the Scheme are stated below. The information so stated
is based on the Mutual Fund's understanding of the tax laws in force as of the date of the Offer
Document, which have been confirmed by its auditors. The information stated below is only for
the purposes of providing general information to the investors and is neither designed nor
19

intended to be a substitute for professional tax advice. As the tax consequences are specific to
each investor and in view of the changing tax laws, each investor is advised to consult his or her
or its own tax consultant with respect to the specific tax implications arising out of his or her or
its participation in the Scheme.
Im"li%ati#ns #f t&e In%#me'ta! A%t( )*+) as amended , t&e Finan%e A%t( -..+
To )5e U(') 5ol*e$.
0a1 Ta; o( I(%ome
n accordance with the provisions of section 10(35) (a) of the Act, income received by all
categories of unit holders in respect of units of the Fund will be exempt from income-tax in their
hands.
Exemption from income tax under section 10(35) of the Act would, however, not apply to any
income arising from the transfer of these units.
(71 Ta; o( %a,')al #a'(.:
As per the provisions of section 2(42A) of the Act, a unit of a Mutual Fund, held by the investor
as a capital asset, is considered to be a short-term capital asset, if it is held for 12 months or
less from the date of its acquisition by the unit holder. Accordingly, if the unit is held for a period
of more than 12 months, it is treated as a long-term capital asset.
*omputation o% capital gain
19

Capital gains on transfer of units will be computed after taking into account the cost
of their acquisition. While calculating long-term capital gains, such cost will be indexed by using
the cost inflation index notified by the Government of ndia.
ndividuals and HUFs, are granted a deduction from total income, under section 80C of the Act
upto Rs. 100,000, in respect of specified investments made during the year (please also refer
paragraph d).
ong+term capital gains
As per Section 10(38) of the Act, long-term capital gains arising from the sale of
unit of an equity oriented fund entered into in a recognized stock exchange or sale of such unit
of an equity oriented fund to the mutual fund would be exempt from income-tax, provided such
transaction of sale is chargeable to securities transaction tax.
Pursuant to an amendment made in the Finance Act, 2006, effective 1 April 2006, companies
would be required to include such long term capital gains in computing the book profits and
minimum alternated tax liability under section 115JB of the Act.
Short +term capital gains
As per Section 111A of the Act, short-term capital gains from the sale of unit of an
equity oriented fund entered into in a recognized stock exchange or sale of such unit of an
equity oriented fund to the mutual fund would be taxed at 10 per cent, provided such transaction
of sale is chargeable to securities transaction tax.
The said tax rate would be increased by a surcharge of:
19

- 10 per cent in case of non-corporate Unit holders, where the total income exceeds
Rs.1,000,000,
- 10 per cent in case of resident corporate Unit holders, and
- 2.5 per cent in case of non-resident corporate unit holders irrespective of the amount of
taxable income.
Further, an additional surcharge of 2 per cent by way of
education cess would be charged on amount of tax inclusive of surcharge.
n case of resident individual, if the income from short term
capital gains is less than the maximum amount not chargeable to tax, then there will be no tax
payable.

Further, in case of individuals/ HUFs, being residents, where the total income excluding short-
term capital gains is below the maximum amount not chargeable to tax1, then the difference
between the current maximum amount not chargeable to tax and total income excluding short-
term capital gains, shall be adjusted from short-term capital gains. Therefore only the balance
short term capital gains will be liable to income tax at the rate of 10 percent plus surcharge, if
applicable and education cess.
#on+residents
n case of non-resident unit holder who is a resident of a country with which ndia has
signed a Double Taxation Avoidance Agreement (which is in force) income tax is payable at the
rates provided in the Act, as discussed above, or the rates provided in the such agreement, if
any, whichever is more beneficial to such non-resident unit holder.
19

Investment (y Minors
Where sale / repurchase is made during the minority of the child, tax will be levied on
either of the parents, whose income is greater, where the said income is not covered by the
exception in the proviso to section 64(1A) of the Act. When the child attains majority, such tax
liability will be on the child.
osses arising %rom sale o% units
- As per the provisions of section 94(7) of the Act, loss arising on transfer of units,
which are acquired within a period of three months prior to the record date (date
fixed by the Fund for the purposes of entitlement of the unit holder to receive the
income from units) and sold within a period of nine months after the record date,
shall not be allowed to the extent of income distributed by the Fund in respect of
such units.
- As per the provisions of section 94(8) of the Act, where any units ("original units")
are acquired within a period of three months prior to the record date (date fixed by
the Fund for the purposes of entitlement of the unit holder to receive bonus units)
and any bonus units are allotted (free of cost) based on the holding of the original
units, the loss, if any, on sale of the original units within a period of nine months
after the record date, shall be ignored in the computation of the unit holder's
taxable income. Such loss will however, be deemed to be the cost of acquisition of
the bonus units.
19

--Each Unit holder is advised to consult his / her or its own professional tax advisor
before claiming set off of long-term capital loss arising on sale / repurchase of
units of an equity oriented fund referred to above, against long-term capital gains
arising on sale of other assets.
- Short-term capital loss suffered on sale / repurchase of units shall be available
for set off against both long-term and short-term capital gains arising on sale of
other assets and balance short-term capital loss shall be carried forward for set off
against capital gains in subsequent years.
- Carry forward of losses is admissible maximum upto eight assessment years.
0%1 Ta; >')55ol*'(# o( %a,')al #a'(.
Capital gains arising to a unit holder on repurchase of units by the Fund
should attract tax withholding as under:
- No tax needs to be withheld from capital gains arising to a F on the basis of the
provisions of section 196D of the Act.
- n case of non-resident unit holder who is a resident of a country with which ndia
has signed a double taxation avoidance agreement (which is in force) the tax
should be deducted at source under section 195 of the Act at the rate provided in
the Finance Act of the relevant year or the rate provided in the said agreement,
whichever is beneficial to such non-resident unit holder. However, such a non-
resident unit holder will be required to provide appropriate documents to the Fund,
to be entitled to the beneficial rate provided under such agreement.
19

- No tax needs to be withheld from capital gains arising to a resident unit holder on
the basis of the Circular no. 715 dated 8 August 1995 issued by the CBDT.
Subject to the above, the provisions relating to tax withholding in respect of gains arising from
the sale of units of the various schemes of the fund are as under:
- No tax is required is to be withheld from long term capital gains arising from sale
of units in equity oriented fund schemes, that are subject to securities transaction
tax.
- n respect of short-term capital gains arising to foreign companies (including
Overseas Corporate Bodies), the Fund is required to deduct tax at source at the
rate of 10.46 per cent (10 per cent tax plus 2.5 per cent surcharge thereon plus
additional surcharge of 2 per cent by way of education cess on the tax plus
surcharge). n respect of short-term capital gains arising to non-resident individual
unit holders, the Fund is required to deduct tax at source at the rate of 11.22 per
cent (10 per cent tax plus 10 per cent surcharge thereon2 plus additional
surcharge of 2 per cent by way of education cess on the tax plus surcharge).
0*1 Weal)5 Ta;
19

Units held under the Schemes of the Fund are not treated as assets within the
meaning of section 2(ea) of the Wealth Tax Act, 1957 and therefore, not liable to wealth-tax.
0e1 Se%+$')'e. T$a(.a%)'o( Ta;
Nature of Transaction Current tax rate Tax rate effective (%) 1 June 2006 (%)
Delivery based purchase transaction in equity shares or units of equity oriented fund entered in
a recognized stock exchange 0.1 0.125 Delivery based sale transaction in equity shares or units
of equity oriented fund entered in a recognized stock exchange 0.1 0.125 Non-delivery based
sale transaction in equity shares or units of equity oriented fund entered in a recognized stock
exchange. 0.02 0.025 Sale of units of an equity oriented fund to the mutual fund 0.2 0.25 Value
of taxable securities transaction in case of units shall be the price at which such units are
purchased or sold.
A deduction in respect of securities transaction tax paid is not
permitted for the purpose of computation of business income or capital gains.
However, if the total income of an assessee includes any
business income arising from taxable securities transactions, he shall be entitled to a rebate3
from income-tax of an amount equal to the securities transaction tax paid by him in respect of
the taxable securities transactions entered during the course of his business.
The maximum amounts of total income, not chargeable to tax are as under:
Type of person Maximum amount of income not chargeable to tax
Women Rs. 135,000
Senior citizens Rs. 185,000
Other individuals and HUFs Rs. 100,000
Ho> I. A M+)+al F+(* Se) U,O
19

A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset management
company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor
who is like promoter of a company. The trustees of the mutual fund hold its property for the
benefit of the unit holders. Asset Management Company (AMC) approved by SEB manages the
funds by making investments in various types of securities. Custodian, who is registered with
SEB, holds the securities of various schemes of the fund in its custody. The trustees are vested
with the general power of superintendence and direction over AMC. They monitor the
performance and compliance of SEB Regulations by the mutual fund.
SEB Regulations require that at least two thirds of the directors of trustee company or board of
trustees must be independent i.e. they should not be associated with the sponsors. Also, 50% of
the directors of AMC must be independent. All mutual funds are required to be registered with
SEB before they launch any scheme.
A..o%'a)'o( o/ M+)+al F+(*. '( I(*'a 0AMFI1
19

With the increase in mutual fund players in ndia, a need for mutual fund association in ndia
was generated to function as a non-profit organization. Association of Mutual Funds in ndia
(AMF) was incorporated on 22nd August; 1995.AMF is an apex body of all Asset Management
Companies (AMC) which has been registered with SEB. Till date all the AMCs are that have
launched mutual fund schemes are its members. t functions under the supervision and
guidelines of its Board of Directors.
Association of Mutual Funds ndia has brought down the ndian Mutual Fund ndustry to a
professional and healthy market with ethical lines enhancing and maintaining standards. t
follows the principle of both protecting and promoting the interests of mutual funds as well as
their unit holders.
T&e #,/e%ti0es #f Ass#%iati#n #f Mutual Funds in India: '''
The Association of Mutual Funds of ndia works with 30 registered AMCs of the country. t has
certain defined objectives which juxtaposes the guidelines of its Board of Directors. The
objectives are as follows:-
This mutual fund association of ndia maintains a high professional and ethical
standard in all areas of operation of the industry.
t also recommends and promotes the top class business practices and code of
conduct which is followed by members and related people engaged in the activities of
mutual fund and asset management. The agencies who are by any means connected
or involved in the field of capital markets and financial services also involved in this
code of conduct of the association.
AMF interacts with SEB and works according to SEBs guidelines in the mutual fund
industry.
Association of Mutual Fund of ndia do represent the Government of ndia, the
Reserve Bank of ndia and other related bodies on matters relating to the Mutual
Fund ndustry.
19

t develops a team of well qualified and trained Agent distributors. t implements a
programme of training and certification for all intermediaries and other engaged in the
mutual fund industry.
AMF undertakes all ndia awareness programme for investors in order to promote
proper understanding of the concept and working of mutual funds.
At last but not the least association of mutual fund of ndia also disseminate information on
Mutual Fund ndustry and undertakes studies and research either directly or in association with
other bodies.
T&e s"#ns#rers #f Ass#%iati#n #f Mutual Funds in India: '''
- Bank Sponsored
- SB Fund Management Ltd.
- BOB Asset Management Co. Ltd.
- Canara bank nvestment Management Services Ltd.
- UT Asset Management Company Pvt. Ltd.
Instituti#ns '
- GC Asset Management Co. Ltd.
- Jeevan Bima Sahayog Asset Management Co. Ltd.
Pri0ate Se%t#r: '
ndian -
- Benchmark Asset Management Co. Pvt. Ltd.
- Cholamandalam Asset Management Co. Ltd.
- Credit Capital Asset Management Co. Ltd.
- Escorts Asset Management Ltd.
- JM Financial Mutual Fund
- Kotak Mahindra Asset Management Co. Ltd.
- Reliance Capital Asset Management Ltd.
- Sahara Asset Management Co. Pvt. Ltd
- Sundaram Asset Management Company Ltd.
- Tata Asset Management Private Ltd.
- Predominantly ndia Joint Ventures:-
- Birla Sun Life Asset Management Co. Ltd.
19

- DSP Merrill Lynch Fund Managers Limited
- HDFC Asset Management Company Ltd.
Predominantly Foreign Joint Ventures:-
- ABN AMRO Asset Management () Ltd.
- Alliance Capital Asset Management (ndia) Pvt. Ltd.
- Deutsche Asset Management (ndia) Pvt. Ltd.
- Fidelity Fund Management Private Limited
- Franklin Templeton Asset Mgmt. (ndia) Pvt. Ltd.
- HSBC Asset Management (ndia) Private Ltd.
- NG nvestment Management (ndia) Pvt. Ltd.
- Morgan Stanley nvestment Management Pvt. Ltd.
- Principal Asset Management Co. Pvt. Ltd.
- Prudential CC Asset Management Co. Ltd.
- Standard Chartered Asset Mgmt Co. Pvt. Ltd
T',. O( B+:'(# M+)+al F+(*.:?
1. Determine #ur finan%ial #,/e%ti0es and &#1 mu%& m#ne #u &a0e t# in0est2 Make sure the
fund's objectives coincide with your own. Don't change your objectives or exceed the amount
set aside for investment unless you have good reason.
2. Al1as #,tain all a0aila,le inf#rmati#n ,ef#re #u in0est2 Request the prospectus, the
Statement of Additional nformation and the latest shareholder report from each fund you are
considering.
3. Ne0er in0est in "eri#di% "ament "lans unless #u are 0irtuall %ertain t&at #u 1ill n#t &a0e
t# redeem earl2 f you redeem early or do not complete the plan, you may have to pay sales
charges of up to 51% of your investment.
4. 3e #n t&e alert f#r in%#r"#rati#n , referen%e2 You will have "no excuse" for not knowing this
information, if a problem arises. You may be legally presumed to know materials incorporated
by reference in a prospectus or other documents.
19

5. Al1as determine all sales %&ar4es( fees and e!"enses ,ef#re #u in0est2 Fees such as 12b-
1 fees can cost you dearly and charges for reinvestment of dividends and capital gains
distributions can substantially add to your costs. Shop around among the many funds offered
and compare the various fees and costs connected with funds that appeal to you.
6. Learn t&e %#sts #f redem"ti#n2 Sometimes investors are surprised to learn that they have to
pay to get out of funds through back-end loads or redemption fees. Find out the redemption
costs before you invest so you won't be unpleasantly surprised when you redeem your shares.
7. Ne0er treat t&e risks #f in0estment in a fund li4&tl2 Weigh the risks of the funds you want to
buy against your ability to tolerate the ups and downs of the market and your investment goals.
Be extra cautious when considering investing in funds with high yield/high risk portfolios. Junk
bond problems, for example, invariably affect the fund's performance.
8. D#n5t ,e misled , t&e name #f a fund2 Some funds have been given names denoting safety,
stability and low risk, despite the fact that the underlying investments in the portfolio are volatile
and highly risky.
19

S)a(*a$* C5a$)e$e* M+)+al F+(*
Standard Chartered mutual fund is promoted by banking giant Standard Chartered and
exclusively focuses on debt schemes. The fund started as ANZ Grind lays Mutual Fund and was
later renamed as Standard Chartered Mutual Fund after the takeover of Grind lays Bank by
Standard Chartered.
Standard Chartered Bank is a truly global bank with employees representing 80 nationalities.
The bank has a strong brand presence in ndia and is well entrenched in developing markets of
Asia Pacific region.
The sponsor of the fund is Standard Chartered Bank. The AMC of the fund is Standard
Chartered Asset Management Company Private Limited. The sponsor holds a 75 per cent stake
in the company and the balance is held by Atul Choksey of Apcotex. As of Aug 2006, the fund
has assets of over Rs.15, 551 crore under management.
Here is a list of mutual funds of Standard Chartered which includes Equity and Debt.
La)e.) NAV
19

S%5eme Name NAV 0Ne) A..e)
Val+e1
Da)e
DFC CF-Plan C-Daily Dividend 10.0025 14-Jun-2009
DFC CF-Plan C-Growth 10.8234 14-Jun-2009
DFC CF-Plan C-Monthly Dividend 10.0444 14-Jun-2009
DFC CF-Plan C-weekly Dividend 10.0526 14-Jun-2009
DFC GSF - Short Term Growth 13.6007 12-Jun-2009
DFC GSF - Short Term - Quarterly Dividend 10.1491 12-Jun-2009
DFC Dynamic Bond Fund Growth 18.0118 12-Jun-2009
DFC Dynamic Bond Fund - Annual Dividend 11.5758 12-Jun-2009
DFC Dynamic Bond Fund - Quarterly Dividend 10.9937 12-Jun-2009
DFC GSF - Short Term - Monthly Dividend 10.0254 12-Jun-2009
DFC - SSF - nvestment Plan - Annual Dividend 11.3001 12-Jun-2009
DFC - SSF - nvestment Plan - Growth Option 21.7029 12-Jun-2009
DFC - SSF - nvestment Plan - Half Yearly Dividend 11.0217 12-Jun-2009
DFC - SSF - nvestment Plan - Quarterly Dividend 10.7888 12-Jun-2009
DFC Arbitrage Fund - Plan A Dividend 10.3060 12-Jun-2009
DFC Arbitrage Fund - Plan A Growth 11.9215 12-Jun-2009
DFC Arbitrage Fund - Plan B - Dividend 10.4471 12-Jun-2009
DFC Arbitrage Fund - Plan B Growth 12.0704 12-Jun-2009
DFC Classic Equity Fund-Plan A- Dividend 12.1278 12-Jun-2009
DFC Classic Equity Fund-Plan A- Growth 16.7593 12-Jun-2009
DFC mperial Equity Fund-Plan A - Dividend 12.7631 12-Jun-2009
DFC mperial Equity Fund-Plan A - Growth 15.4392 12-Jun-2009
DFC Premier Equity Fund-Plan A - Dividend 17.5076 12-Jun-2009
DFC Premier Equity Fund_Plan A - Growth 19.5061 12-Jun-2009
DFC Arbitrage Plus Fund -A-DVDEND 10.3619 12-Jun-2009
DFC Arbitrage Plus Fund -A-GROWTH 10.7582 12-Jun-2009
DFC Arbitrage Plus Fund -B-DVDEND 10.3947 12-Jun-2009
DFC Arbitrage Plus Fund -B-GROWTH 10.7609 12-Jun-2009
DFC GSF - Short Term - Weekly Dividend 10.0226 18-May-2009
DFC GSF - Short Term -Plan B Growth 10.1877 12-Jun-2009
DFC Dynamic Bond Fund -PLAN B GROWTH 10.5067 12-Jun-2009
DFC GSF - Short Term -Plan B Weekly Dividend 10.0217 12-Jun-2009
DFC-SSF-nvestment Plan B- GROWTH 10.4165 12-Jun-2009
DFC Dynamic Bond Fund -PLAN B DVDEND 10.4666 12-Jun-2009
DFC-SSF-nvestment Plan B DVDEND 10.2851 12-Jun-2009
DFC Tax Advantage (ELSS) Fund - Dividend 14.0476 12-Jun-2009
DFC Tax Advantage (ELSS) Fund - Growth 14.0436 12-Jun-2009
19

DFC mperial Equity Fund-Plan B - Dividend 13.5006 12-Jun-2009
DFC GSF - Short Term -Plan B Quarterly Dividend 10.0855 12-Jun-2009
DFC Premier Equity Fund-Plan B - Dividend 14.4873 12-Jun-2009
DFC mperial Equity Fund-Plan B - Growth 13.3093 12-Jun-2009
DFC Premier Equity Fund_Plan B - Growth 14.3843 12-Jun-2009
DFC-SSF-nvestment Plan C- DVDEND 10.0542 12-Jun-2009
DFC-SSF-nvestment Plan C- GROWTH 10.0546 12-Jun-2009
DFC Enterprise Equity Fund Dividend 12.0101 10-Jun-2009
DFC Enterprise Equity Fund-A-Growth
19

PROBLEM DEFINITON
1) TO GAN NSGHT AS TO WHAT S THE CONSUMER BEHAVOUR TOWARDS MUTUAL
FUNDS.
2) TO KNOW AS TO WHAT A CONSUMER WANTS N A MUTUAL FUND.
19

RESEARCH METHODOLOGY
SAMPLE SZE:- 60
THE DATA HAS BEEN COLLECTED THROUGH PRMARY DATA COLLECTON
METHODS.
THE DATA THUS COLLECTED HAS BEEN ANALYSED USNG STATSTACAL
PRACTCES FOR SOCAL SERCVE SOFTWARE (S.P.S.S.)
19

ANALYSIS OF THE REPORT
19

QUESTON 1
Do you have a mutual fund?
Yes No
f yes then which asset management company/companies?
------------------------------------------------------------------------
------------------------------------------------------------------------
------------------------------------------------------------------------
-----------------------------------------------------------------------
19

Holding Mutual Funds
n Terms Of Annual ncome
E?K LAKHS K?D LAKHS D?@ LAKHS ABOVE @
LAKHS
HOLDING0YES1 40% 80% 29% 66%
NOT HOLDING
0NO1 60% 20% 71% 34%
TOTAL G 100% 100% 100% 100%
n Terms Of Gender
19

MALES FEMALES
HOLDING0YES1 64% 38%
NOT HOLDING 0NO1 36% 62%
TOTAL G 100% 100%
% OF HOLDNGS N VAROUS COMPANES
UTI MF SBI MF HDFC MF BIRLA
MF
RELIANCE MF KOTAK MF
G
HOLDINGS
20% 24% 25% 16% 38% 5%
19

QUESTON 2
Rank the following as per you preferences to investment in a financial year:
a. Shares
b. Mutual Funds
c. Life nsurance
d. Government Bonds
19

19

SHARES
n Terms Of Annual ncome
E?K LAKHS K?D LAKHS D?@ LAKHS ABOVE @
LAKHS
= 0% 7% 13% 27%
F 7% 7% 47% 47%
E 40% 20% 13% 0%
B 53% 66% 27% 26%
TOTAL G 100% 100% 100% 100%
n Terms Of Gender
19

MALES FEMALES
= 10% 10%
F
20% 35%
E
30% 20%
B
40% 35%
TOTAL G 100% 100%
MUTUAL FUNDS
n Terms Of Annual ncome
E?K LAKHS K?D LAKHS D?@ LAKHS ABOVE @
LAKHS
= 20% 26% 33% 27%
F 40% 40% 27% 27%
E 27% 27% 33% 33%
B 13% 7% 7% 13%
TOTAL G 100% 100% 100% 100%
n Terms Of Gender
19

MALES FEMALES
= 28% 25%
F
35% 30%
E
25% 40%
B
12% 5%
TOTAL G 100% 100%
LFE NSURANCE
n Terms Of Annual ncome
E?K LAKHS K?D LAKHS D?@ LAKHS ABOVE @
LAKHS
= 73% 20% 7% 0%
F 33% 40% 20% 7%
E 47% 13% 27% 13%
B 33% 13% 47% 7%
TOTAL G 100% 100% 100% 100%
19

n Terms Of Gender
MALES FEMALES
= 50% 40%
F
23% 20%
E
20% 30%
B
7% 10%
TOTAL G 100% 100%
GOVERNMENT BONDS
n Terms Of Annual ncome
E?K LAKHS K?D LAKHS D?@ LAKHS ABOVE @
19

LAKHS
= 7% 33% 7% 7%
F 33% 13% 13% 20%
E 27% 34% 27% 26%
B 33% 20% 53% 47%
TOTAL G 100% 100% 100% 100%
n Terms Of Gender
MALES FEMALES
= 5% 32%
F
23% 16%
E
38% 11%
B
34% 41%
TOTAL G 100% 100%
QUESTON 3
19

What is your primary objective for your investment?
a. Preservation of Principal
b. Current ncome
c. Growth and ncome
d. Conservative Growth
e. Aggressive Growth
PRMARY OBJECTVEOF SAVNG
I( Te$m. O/ A((+al I(%ome
19

E?K
LAKHS
K?D LAKHS D?@ LAKHS ABOVE @
LAKHS
PRESERVATION OF
PRINCIPAL 13% 7% 7% 13%
CURRENT INCOME 7% 20% 47% 0%
GROWTH AND
INCOME 53% 60% 20% 53%
CONSERVATIVE
GROWTH 14% 6% 20% 13%
AGGRESSIVE
GROWTH 13% 7% 6% 21%
TOTAL G 100% 100% 100% 100%
IN TERMS OF GENDER
MALES FEMALES
PRESERVATION OF PRINCIPAL 8% 15%
CURRENT INCOME 15% 25%
GROWTH AND INCOME 45% 50%
CONSERVATIVE GROWTH 15% 5%
AGGRESSIVE GROWTH 17% 5%
TOTAL G 100% 100%
19

QUESTON 4
When it comes to investing in stock or bond mutual funds (or individual stocks or bonds),
would describe myself as a/an...?
VERY NEXPERENCED
NVESTOR
SOMEWHAT
NEXPERENCED
NVESTOR
SOMEWHAT
EXPERENCED
NVESTOR
VERY EXPERENCED
NVESTOR
EXPERENCED
NVESTOR
EXPERENCE LEVEL OF NVESTOR
n Terms Of Annual ncome
19

E?K
LAKHS
K?D
LAKHS
D?@ LAKHS
ABOVE @
LAKHS
VERY INE"PERIENCED 7% 0% 7% 0%
SOMEWHAT
INE"PERIENCED
40% 7% 27% 7%
SOMEWHAT
E"PERIENCED
40% 60% 27% 7%
E"PERIENCED 13% 27% 33% 27%
VERY E"PERIENCED 0% 6% 6% 13%
TOTAL G 100% 100% 100% 100%
IN TERMS OF GENDER
E?K LAKHS K?D LAKHS
VERY INE"PERIENCED 3% 5%
SOMEWHAT INE"PERIENCED 15% 30%
SOMEWHAT E"PERIENCED 48% 40%
19

E"PERIENCED 27% 20%
VERY E"PERIENCED 7% 5%
TOTAL G 100% 100%
QUESTON 5
s there any substitute of Mutual Funds?
Yes No
f yes then what: _________________________________________________
__________________________________________________
19

SUBSTTUTE OF MUTUAL FUNDS
n Terms Of Annual ncome
E?K LAKHS K?D LAKHS D?@ LAKHS ABOVE @
LAKHS
YES 7% 27% 7% 20%
YES
93% 73% 93% 80%
TOTAL G 100% 100% 100% 100%
IN TERMS OF GENDER
19

MALES FEMALES
YES 15% 15%
NO
85% 85%
TOTAL G 100% 100%
SUBSTTUTES OF MUTUAL FUNDS
19

QUESTON 6
When making an investment, plan to hold the investment for...
a) 1 to 2 years
b) 3 to 4 years
c) 5 to 6 years
d) 7 to 8 years
e) more than 8 years
19

TME PEROD
n Terms Of Annual ncome
E?K
LAKHS
K?D
LAKHS
D?@ LAKHS
ABOVE @
LAKHS
=?F YEARS 0% 7% 7% 7%
E?B YEARS 40% 26% 13% 20%
K?A YEARS 27% 47% 27% 40%
D?C YEARS 13% 13% 33% 33%
ABOVE C YEARS 20% 7% 20% 0%
TOTAL G 100% 100% 100% 100%
IN TERMS OF GENDER
19

MALES FEMLAES
=?F YEARS 5% 5%
E?B YEARS 20% 35%
K?A YEARS 28% 50%
D?C YEARS 30% 10%
ABOVE C YEARS 17% 0%
TOTAL G 100% 100%
QUESTON 7
According to you is investing in mutual funds a Safer option or not?
Yes No
19

SAFETY OPTON
n Terms Of Annual ncome
E?K LAKHS K?D LAKHS D?@ LAKHS ABOVE @
LAKHS
YES 87% 87% 93% 100%
YES
13% 13% 7% 0%
TOTAL G 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
19

MALES FEMALES
YES 88% 95%
NO
12% 5%
TOTAL G 100% 100%
QUESTON 8
According to you which company has more demand in the market?
a) Reliance mutual fund
b) HDFC mutual fund
c) Birla sun life mutual fund
d) Kotak Mahindra mutual fund
e) S.B. Mutual Fund
f) Others
19

19

DEMAND of DFFRENT MUTUAL FUNDS
n Terms Of Annual ncome
E?K La65. K?D La65. D?@ la65. A7o8e @ la65.
RELIANCE 27% 40% 40% 47%
HDFC 20% 27% 27% 13%
BIRLA 13% 7% 13% 13%
KOTAK 0% 7% 13% 0%
SBI 27% 12% 0% 20%
OTHERS 13% 7% 7% 7%
TOTAL G 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
MALES FEMLAES
RELIANCE 43% 30%
HDFC 15% 35%
19

BIRLA 13% 10%
KOTAK 3% 10%
SBI 16% 10%
OTHERS 10% 5%
TOTAL G 100% 100%
QUESTON 9
Which of the following source of mutual funds information do you like to opt for?
1. Professional advisory
2. Company advisory
3. Mutual fund prospects
4. Newspaper, magazine, television
5. Mutual fund rating service
19

SOURCE
n Terms Of Annual ncome
E?K La65. K?D La65. D?@ la65. A7o8e @ la65.
PROFESSIONAL
ADVISORY 27% 27% 33% 33%
COMPANY ADVISORY 27% 33% 27% 40%
MUTUAL FUND
PROSPECTS 46% 33% 20% 27%
MEDIA 0% 7% 10% 0%
MF RATING SERVICES 0% 0% 10% 0%
TOTAL G 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
19

MALES FEMLAES
PROFESSIONAL ADVISORY 27% 35%
COMPANY ADVISORY 35% 25%
MUTUAL FUND PROSPECTS 30% 35%
MEDIA 5% 5%
MF RATING SERVICES 3% 0%
TOTAL G 100% 100%
QUESTON 10
When you want to invest which type of mutual funds would you choose?
Having only Debt Portfolio
Having only Equity
Portfolio
Having Debt & Equity
Portfolio
19

TYPE OF MUTUAL FUNDS
n Terms Of Annual ncome
E?K La65. K?D La65. D?@ la65. A7o8e @ la65.
DEBT PORTFOLIO 20% 20% 7% 20%
ENUITY PORTFOLIO 33% 20% 33% 13%
DEBT < ENUITY
PORTFOLIO 47% 60% 60% 67%
TOTAL G 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
19

MALES FEMALES
DEBT PORTFOLIO 15% 20%
ENUITY PORTFOLIO 30% 15%
DEBT < ENUITY PORTFOLIO 55% 65%
TOTAL G 100% 100%
QUESTON 11
would invest in a mutual fund based solely on a brief conversation with a friend, co-worker
or relative.
STRONGLY
DSAGREE
DSAGREE
SOMEWHAT
AGREE
AGREE
STRONGLY
AGREE
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CONVERSATON
n Terms Of Annual ncome
E?K La65. K?D La65. D?@ la65. A7o8e @ la65.
SRONGLY
DISAGREE 0% 0% 0% 0%
DISAGREE 0% 0% 13% 0%
SOMEWHAT AGREE 40% 7% 47% 27%
AGREE 33% 73% 13% 46%
STRONGLY AGREE 27% 20% 27% 27%
TOTAL G 100% 100% 100% 100%
MALES FEMLAES
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SRONGLY DISAGREE 0% 0%
DISAGREE 3% 5%
SOMEWHAT AGREE 30% 30%
AGREE 35% 55%
STRONGLY AGREE 32% 10%
TOTAL G 100% 100%
QUESTON 12
Generally, prefer investments with little or no fluctuation in value, and am willing to accept
the lower returns associated with these investments.
STRONGLY
DSAGREE
DSAGREE
SOMEWHAT
AGREE
AGREE
STRONGLY
AGREE
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FLUCTUATON N VALUE
n Terms Of Annual ncome
E?K La65. K?D La65. D?@ la65. A7o8e @ la65.
SRONGLY DISAGREE 0% 13% 20% 0%
DISAGREE 20% 33% 47% 20%
SOMEWHAT AGREE 67% 27% 33% 73%
AGREE 13% 27% 0% 7%
STRONGLY AGREE 0% 0% 0% 0%
TOTAL G 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
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MALES FEMLAES
SRONGLY DISAGREE 13% 0%
DISAGREE 15% 60%
SOMEWHAT AGREE 58% 30%
AGREE 14% 10%
STRONGLY AGREE 0% 0%
TOTAL G 100% 100%
QUESTON 13
Which channel do you prefer for investing in mutual funds?
F'(a(%'al A*8'.o$ AMC Ba(6
19

CHANNEL OF PREFRENCE
n Terms Of Annual ncome
E?K La65. K?D La65. D?@ la65. A7o8e @ la65.
FINANCIAL ADVISOR 20% 47% 33% 20%
AMC 40% 40% 40% 33%
BANK 40% 13% 27% 47%
TOTAL G 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
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MALES FEMALES
FINANCIAL ADVISOR 25% 40%
AMC 45% 25%
BANK 30% 35%
TOTAL G 100% 100%
QUESTON 14
How would you like to receive Dividend every year?
D'8'*e(* Pa:o+) D'8'*e(* Re?'(8e.)me() G$o>)5 '( NAV
19

DVDENT
n Terms Of Annual ncome
E?K La65. K?D La65. D?@ la65. A7o8e @ la65.
DIVIDEND PAYOUT 33% 47% 60% 47%
DIVIDEND RE?
INVESTMENT 40% 33% 33% 33%
GROWTH IN NAV 27% 20% 7% 20%
TOTAL G 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
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MALES FEMALES
DIVIDEND PAYOUT 50% 40%
DIVIDEND RE?INVESTMENT 35% 35%
GROWTH IN NAV 15% 25%
TOTAL G 100% 100%
QUESTON 15
Do you view following factor/sources of information important while investing in MF?
Extremely
mportant
mportant Neutral
Unimporta
nt
Highly
important
a) Safety
b) Liquidity
c) Return earned
d) Tax savings
e) Performance of
past schemes
f) Rating of MF by
Agencies
g) Advertisements
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h) Recommendation
of friends and
relatives.
SAFETY
n Terms Of Annual ncome
E?K La65. K?D La65. D?@ la65. A7o8e @ la65.
E"TERMELY IMPORTANT 73% 93% 67% 87%
IMPORTANT 27% 7% 33% 13%
NEUTRAL 0% 0% 0% 0%
UNIMPORTANT 0% 0% 0% 0%
TOTAL G 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
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MALES FEMALES
E"TERMELY IMPORTANT 80% 75%
IMPORTANT 20% 25%
NEUTRAL 0% 0%
UNIMPORTANT 0% 0%
TOTAL G 100% 100%
LQUDTY
n Terms Of Annual ncome
E?K La65. K?D La65. D?@ la65. A7o8e @ la65.
E"TERMELY IMPORTANT 20% 33% 27% 7%
19

IMPORTANT 40% 60% 40% 40%
NEUTRAL 27% 0% 13% 20%
UNIMPORTANT 13% 7% 20% 33%
TOTAL G 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
MALES FEMALES
E"TERMELY IMPORTANT 25% 15%
IMPORTANT 40% 55%
NEUTRAL 15% 15%
UNIMPORTANT 20% 15%
TOTAL G 100% 100%
RETURNS EARNED
n Terms Of Annual ncome
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E?K
LAKHS
K?D
LAKHS
D?@
LAKHS
ABOVE @ LAKHS
E"TREMLY IMPORTANT 67% 53% 20% 53%
IMPORTANT 26% 47% 60% 40%
NEUTAL 0% 0% 20% 7%
UNIMPORTANT 7% 0% 0% 0%
TOTAL 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
MALES FEMALES
E"TERMELY IMPORTANT 67% 15%
IMPORTANT 28% 70%
NEUTRAL 5% 10%
UNIMPORTANT 0% 5%
TOTAL G 100% 100%
TAX SAVNGS
n Terms Of Annual ncome
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E?K
LAKHS
K?D
LAKHS
D?@
LAKHS
ABOVE @ LAKHS
E"TREMLY IMPORTANT
6% 13% 13% 13%
IMPORTANT
27% 40% 46% 46%
NEUTAL
47% 40% 34% 34%
UNIMPORTANT 20% 7% 7% 7%
TOTAL 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
MALES FEMALES
E"TERMELY IMPORTANT 43% 30%
IMPORTANT 45% 60%
NEUTRAL 12% 10%
UNIMPORTANT 0% 0%
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TOTAL G 100% 100%
PAST PERFORMANCE
n Terms Of Annual ncome
E?K
LAKHS
K?D
LAKHS
D?@
LAKHS
ABOVE @ LAKHS
E"TREMLY IMPORTANT
7% 13% 13% 13%
IMPORTANT
27% 40% 46% 46%
NEUTAL
46% 40% 33% 33%
UNIMPORTANT 20% 7% 8% 8%
TOTAL 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
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MALES FEMALES
E"TERMELY IMPORTANT 10% 15%
IMPORTANT 40% 40%
NEUTRAL 38% 40%
UNIMPORTANT 12% 5%
TOTAL G 100% 100%
MUTUAL FUNDS RATNG BY COMPANES
n Terms Of Annual ncome
E?K
LAKHS
K?D
LAKHS
D?@
LAKHS
ABOVE @ LAKHS
E"TREMLY IMPORTANT
0% 7% 7% 20%
IMPORTANT
26% 46% 13% 40%
NEUTAL
53% 26% 47% 13%
UNIMPORTANT 21% 21% 33% 27%
TOTAL 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
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MALES FEMALES
E"TERMELY IMPORTANT 10% 5%
IMPORTANT 28% 40%
NEUTRAL 34% 40%
UNIMPORTANT 28% 15%
TOTAL G 100% 100%
MUTUAL FUNDS RATNG BY COMPANES
n Terms Of Annual ncome
E?K
LAKHS
K?D
LAKHS
D?@
LAKHS
ABOVE @ LAKHS
E"TREMLY IMPORTANT
7% 7% 7% 20%
IMPORTANT
20% 40% 27% 20%
NEUTAL
20% 40% 33% 40%
UNIMPORTANT 53% 13% 33% 20%
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TOTAL 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
MALES FEMALES
E"TERMELY IMPORTANT 13% 5%
IMPORTANT 23% 30%
NEUTRAL 38% 25%
UNIMPORTANT 26% 40%
TOTAL G 100% 100%
RECOMMENDATON BY FRENDS & RELATVES
n Terms Of Annual ncome
E?K
LAKHS
K?D
LAKHS
D?@
LAKHS
ABOVE @ LAKHS
19

E"TREMLY IMPORTANT
20% 27% 20% 47%
IMPORTANT
53% 53% 27% 33%
NEUTAL
20% 13% 27% 13%
UNIMPORTANT 7% 7% 26% 7%
TOTAL 100% 100% 100% 100%
I( Te$m. O/ Ge(*e$
MALES FEMALES
E"TERMELY IMPORTANT 33% 20%
IMPORTANT 45% 35%
NEUTRAL 13% 30%
UNIMPORTANT 9% 15%
TOTAL G 100% 100%
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FINDINGS
AND
OBSERVATIONS
19

a) From the total population 55% OF the people were holding mutual funds and the rest
45% were not holding mutual funds.
b) Out of the 55% people who were holding mutual funds, 20% were holding in UT, 24%in
SB, 25% in HDFC, 16% in Birla, 38% in RELANCE and 5% in KOTAK.
c) The population was asked to rank shares, mutual funds, life insurance and government
bonds in order of preference as to in which they would like to invest their money. 48%
people prefer Life insurance, 28% prefer mutual funds, 14% bonds and 10% people will
prefer Government Bonds to invest their money.
19


d) 15% of the population would like to prefer financial safety, 35% of the population returns
12% company's reputation for treating policy holders fairly, 10% company's history, and
28% would prefer all the above criteria.
e) The population was asked as what they think about their level of investment. 4% consider
themselves as very inexperienced investor, 20% as somewhat experienced, 45 % as
somewhat experienced, 25% as experienced and 6% as very experienced.
19

f) Now the population was whether they thought mutual funds had a substitute or not. 18% of
the people said yes and rest 82% said no
g) 36% people think shares as a substitute of mutual funds, 54% fixed deposits and 10% life
insurance.
19

h) While making an investment 5% of the population would like to hold their investment for 1-2
years, 25% for 3-4 years, 35% for 5-6 years, 24% for 7-8 years, and 11% for more than 8
years.
i) 90% of the total population think it is safe to invest in mutual funds and rest 10% consider
mutual funds an unsafe option.

19

j) According to the participants reliance mf has more demand in the market with 38%, HDFC
22%, Birla sun MF 10%, SB MF 8%, Kotak Mahindra 5% and other with 17%.
k) 30% of the population would like to take advice from professional advisory, 32% from
company advisory, 32% from mutual funds Prospects, 4% from TV. newspaper , etc and 2%
from MF rating service.
19

l) 18% people would like to invest their money in a debt portfolio MF, 26% in Equity Portfolio
MF, and 66% in Debt and Equity portfolio.
m) 3% of the total population disagree to invest in MF based on a conversation with a relative
friend, or a co-worker, 30% somewhat agree, 43% agree and 24% strongly agree to the
19

point.
n) 9% of the population disagrees to prefer investments with little or no fluctuation in value,
and the lower returns associated with these investments, 30% somewhat agree, 50% agree
19

and 11% disagree to the point.
19

o) 30% of the people would like to invest with the help of a financial advisor, 30% with asset
management companies and 32% with a bank.
19

p) Now the people were asked how they would like to receive the returns of mutual fund. 48%
would like Dividend Payout, 35% Dividend Re-investment and 17% Growth in NAV.
19

q) 80% of the people consider safety extremely important and 20% important for investing their
money in mutual funds.
19

r) 22% of the total population consider liquidity as extremely important, 45% important, 15%
neutral and 18% unimportant factor while investing in mutual funds.
19

s) 48% people consider Returns earned as an extremely important factor, 42% important
factor, 8% are neutral and 2% unimportant factor to invest in mutual funds.
19

t) Tax saving is extremely important factor for 40% of the population, important for 52% neutral
for 5% and 3% consider it as an unimportant factor.
19

u) Tax saving is extremely important to 12% of the people, for 40% important, for 38% neutral
and for 10% it is unimportant factor while investing in Mutual funds.
19

v) Ratings of MF by agencies are extremely important to8% population, for 32% it is important,
for 35% it is neutral factor and for 25% it is an unimportant factor.
w) Advertisements of mutual funds are extremely important to 10% of the population, for 30%
its important, for 34% it is neutral, and for 26% it is unimportant
19

x) Recommendation of Mutual Funds by friends and relatives is extremely important for 29% of
the population, for 42% it is important, 20% people are neutral and for 9% it is an
19

unimportant factor.
19

*onsumer (ehaviour to)ards mutual %unds
NUESTIONNAIRE
Before you proceed to the questionnaire please fill some personal information
Name : __________________________________________________
Age : ____years
Gender:________
Marital Status: ____________________
Highest level of Education:
__________________________________________________
Company you are currently Employed:
_________________________________________
Work Experience: ______________
Annual ncome: ___________________________
19

No. of family members:_____
No. of People Earning in your Family:_______
1) Do you have a mutual fund?
Yes No
f yes then which asset management company/companies?
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3) Please rank the following as per you preferences to investment in a financial year:
a. Shares
19

b. Mutual Funds
c. Life nsurance
d. Government Bonds
3) What is your primary objective for your investment?
f. Preservation of Principal
g. Current ncome
h. Growth and ncome
i. Conservative Growth
j. Aggressive Growth
4) When it comes to investing in stock or bond mutual funds (or individual stocks or bonds),
would describe myself as a/an...
VERY
NEXPERENCED
NVESTOR
SOMEWHAT
NEXPERENCED
NVESTOR
SOMEWHAT
EXPERENCED
NVESTOR
EXPERENCED
NVESTOR
VERY
EXPERENCED
NVESTOR
5) s there any substitute of Mutual Funds?
Yes No
f yes then what:
_____________________________________________________________________

_____________________________________________________________________
6) When making a investment, plan to hold the investment for...
19

y) 1 to 2 years
z) 3 to 4 years
aa)5 to 6 years
bb)7 to 8 years
cc) more than 8 years
7) According to you is investing in mutual funds a Safer option or not?
Yes No
8) According to you which company has more demand in the market?
g) Reliance mutual fund
h) HDFC mutual fund
i) Birla sun life mutual fund
j) Kotak Mahindra mutual fund
k) Other
9) Which of the following source of mutual funds information do you like to opt for?
6. Professional advisory
7. Company advisory
8. Mutual fund prospects
9. Newspaper, magazine, television
10. Mutual fund rating service
10. When you want to invest which type of mutual funds would you choose?
19

Having only Debt Portfolio
Having only Equity
Portfolio
Having Debt & Equity
Portfolio
11) would invest in a mutual fund based solely on a brief conversation with a friend, co-worker
or relative.
STRONGLY
DSAGREE
DSAGREE
SOMEWHAT
AGREE
AGREE
STRONGLY
AGREE
12)Generally, prefer investments with little or no fluctuation in value, and am willing to accept
the lower returns associated with these investments.
STRONGLY
DSAGREE
DSAGREE
SOMEWHAT
AGREE
AGREE
STRONGLY
AGREE
13)Which channel do you prefer for investing in mutual funds?
F'(a(%'al A*8'.o$ AMC Ba(6
14)How would you like to receive Dividend every year?
D'8'*e(* Pa:o+) D'8'*e(* Re?'(8e.)me() G$o>)5 '( NAV
15)Do you view following factor/sources of information important while investing in MF?
Extremely
mportant
mportant Neutral Unimporta
nt
Highly
important
Safety
Liquidity
Return earned
Tax savings
Performance of past
19

schemes
Rating of MF by
Agencies
Advertisements
Recommendations
of friends and
relatives.
BIBLOGRAPHY
www.google.com
www.wikipedia.com
www.sc.com
19