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Submitted in Partial fulfillment of award of MBA degree of
GGSIPU, New Delhi

Submitted By
Name : Shikha
Enrollment No. : 07015603916
Semester/Batch :MBA3rdSem.

Northern India Engineering College

(Affiliated To GGSIPU)
FC-26, Shashtri Park, Delhi-110053

The successful completion of the project would be incomplete without the mention of the people
who made it possible.

I would like to take the opportunity to thank and express my deep sense of gratitude of my
corporate mentor, Mr. Ravi Verma. I am greatly indebted to them for providing their valuable
guidance at all stages of the study at Sharekhan Ltd., their advice, constructive suggestions,
positive and supportive attitude and continuous encouragement, without which it would have not
been possible to complete the project.

I would also like to thank Project guide, Ms. Swati Khanna (Assistant Professor) and Head of
Department Dr. Divya Gangwar who in spite of busy schedule has co-operated with me
continuously and needed, her valuable contribution and guidance have been certainly
indispensable for my project work.

I am thankful to Mr. Ravi Verma for giving me the opportunity to work with Sharekhan
Private Limited, Delhi.

I owe my whole hearted thanks and appreciation to the entire staff of the company for their
cooperation and assistance during the course of my project.

I hope that I can build upon the experience and knowledge that I have gained and make a
valuable contribution towards this industry in coming future.

ROLL NO: - 07015603916

MBA 3rd Semester

Table of Contents


1 Objective 1

2 Introduction 2

3 Company Profile 13

4 Review of Literature 17

5 Research methodology 19

6 Data analysis 21

7 Findings & Conclusion 34

8 Recommendation 36

9 References & Bibliography _

10 Annexure _

To analyze the profile and investment objectives of Mutual Fund Investor at Sharekhan.

To study about Customer perception towards Mutual Funds as an investment at


To identify investors behavior while selecting a Mutual Fund at Sharekhan.

To determine the portfolio preferred by the investors most at Sharekhan.


A mutual fund is a professionally-managed trust that pools the savings of many investors and
invests them in securities like stocks, bonds, short-term money market instruments and
commodities such as precious metals. Investors in a mutual fund have a common financial goal
and their money is invested in different asset classes in accordance with the funds investment
objective. Investments in mutual funds entail comparatively small amounts, giving retail
investors the advantage of having finance professionals control their money even if it is a few
thousand rupees.

Mutual funds are pooled investment vehicles actively managed either by professional fund
managers or passively tracked by an index or industry. The funds are generally well diversified
to offset potential losses. They offer an attractive way for savings to be managed in a passive
manner without paying high fees or requiring constant attention from individual investors.
Mutual funds present an option for investors who lack the time or knowledge to make traditional
and complex investment decisions. By putting your money in a mutual fund, you permit the
portfolio manager to make those essential decisions for you.

How is a mutual fund set up?

A mutual fund is set up in the form of a trust that has a Sponsor, Trustees, Asset Management
Company (AMC). The trust is established by a sponsor(s) who is like a promoter of a company
and the said Trust is registered with Securities and Exchange Board of India (SEBI) as a Mutual
Fund. The Trustees of the mutual fund hold its property for the benefit of unit holders. An Asset
Management Company (AMC) approved by SEBI manages the fund by making investments in
various types of securities.

The trustees are vested with the power of superintendence and direction over the AMC. They
monitor the performance and compliance of SEBI regulations by the mutual fund. The trustees
are vested with the general power of superintendence and direction over AMC. They manage the
performance and compliance of SEBI Regulations by the mutual fund.

How does a mutual fund operate?

A mutual fund company collects money from several investors, and invests it in various options
like stocks, bonds, etc. This fund is managed by professionals who understand the market well,
and try to accomplish growth by making strategic investments. Investors get units of the mutual
fund according to the amount they have invested. The Asset Management Company is
responsible for managing the investments for the various schemes operated by the mutual fund.
It also undertakes activities such like advisory services, financial consulting, customer services,
accounting, marketing and sales functions for the schemes of the mutual fund.

What is Net Asset Value?

Net Asset Value (NAV) is the total asset value (net of expenses) per unit of the fund and is
calculated by the AMC at the end of every business day. In order to calculate the NAV of a
mutual fund, you need to take the current market value of the fund's assets minus the liabilities, if
any and divide it by the number of shares outstanding. NAV is calculated as follows:

For example, if the market value of securities of a Mutual Fund scheme is 500 lakh and the
Mutual Fund has issued 10 lakh units of 10 each to investors, then the NAV per unit of the fund
is 50.

What are the different types of mutual fund schemes?

Based on the maturity period

Open-ended Fund
An open-ended fund is a fund that is available for subscription and can be redeemed on a
continuous basis. It is available for subscription throughout the year and investors can buy and
sell units at NAV related prices. These funds do not have a fixed maturity date. The key feature
of an open-ended fund is liquidity.

Close-ended Fund
a close-ended fund is a fund that has a defined maturity period, e.g. 3-6 years. These funds are
open for subscription for a specified period at the time of initial launch. These funds are listed on
a recognized stock exchange.

Interval Funds
Interval funds combine the features of open-ended and close-ended funds. These funds may trade
on stock exchanges and are open for sale or redemption at predetermined intervals on the
prevailing NAV.

Based on investment objectives

Equity/Growth Funds

Equity/Growth funds invest a major part of its corpus in stocks and the investment objective of
these funds is long-term capital growth. When you buy shares of an equity mutual fund, you
effectively become a part owner of each of the securities in your funds portfolio. Equity funds
invest minimum 65% of its corpus in equity and equity related securities. These funds may invest
in a wide range of industries or focus on one or more industry sectors. These types of funds are

Suitable for investors with a long-term outlook and higher risk appetite.

Debt/Income Funds
Debt/ Income funds generally invest in securities such as bonds, corporate debentures,
government securities (gilts) and money market instruments. These funds invest minimum 65%
of its corpus in fixed income securities. By investing in debt instruments, these funds provide
low risk and stable income to investors with preservation of capital. These funds tend to be less
volatile than equity funds and produce regular income. These funds are suitable for investors
whose main objective is safety of capital with moderate growth.

Balanced Funds
Balanced funds invest in both equities and fixed income instruments in line with the pre-
determined investment objective of the scheme. These funds provide both stability of returns and
capital appreciation to investors. These funds with equal allocation to equities and fixed income
securities are ideal for investors looking for a combination of income and moderate growth. They
generally have an investment pattern of investing around 60% in Equity and 40% in Debt

Money Market/ Liquid Funds

Money market/ Liquid funds invest in safer short-term instruments such as Treasury Bills,
Certificates of Deposit and Commercial Paper for a period of less than 91 days. The aim of
Money Market /Liquid Funds is to provide easy liquidity, preservation of capital and moderate
income. These funds are ideal for corporate and individual investors looking for moderate returns
on their surplus funds.

Gilt Funds
Gilt funds invest exclusively in government securities. Although these funds carry no credit risk,
they are associated with interest rate risk. These funds are safer as they invest in government

Some of the common types of mutual funds and what they typically invest in:

Type of Fund Typical Investment

Equity or Growth Equities like stocks


Fixed Income Fund Fixed income securities like government and corporate bonds

Money Market Fund Short-term fixed income securities like treasury bills

Balanced Fund A mix of equities and fixed income securities

Sector-specific Fund Sectors like IT, Pharma, Auto etc.

Index Fund Equities or Fixed income securities chosen to replicate a specific Index for example
S&P CNX Nifty

Fund of funds Other mutual funds

Other Schemes

Tax-Saving (Equity linked Savings Schemes) Funds

Tax-saving schemes offer tax rebates to investors under specific provisions of the Income Tax
Act, 1961. These are growth-oriented schemes and invest primarily in equities. Like an equity
scheme, they largely suit investors having a higher risk appetite and aim to generate capital
appreciation over medium to long term.

Index Funds

Index schemes replicate the performance of a particular index such as the BSE Sensex or the
S&P CNX Nifty. The portfolio of these schemes consist of only those stocks that represent the

Index and the weightage assigned to each stock are aligned to the stocks weightage in the index.
Hence, the returns from these funds are more or less similar to those generated by the Index.

Sector-specific Funds

Sector-specific funds invest in the securities of only those sectors or industries as specified in the
Scheme Information Document. The returns in these funds are dependent on the performance of
the respective sector/industries for example FMCG, Pharma, IT, etc. The funds enable investors
to diversify holdings among many companies within an industry. Sector funds are riskier as their
performance is dependent on particular sectors although this also results in higher returns
generated by these funds.

Benefits of investing in mutual funds:

Professional Management
when you invest in a mutual fund, your money is managed by finance professionals.
Investors who do not have the time or skill to manage their own portfolio can invest in
mutual funds. By investing in mutual funds, you can gain the services of professional fund
managers, which would otherwise be costly for an individual investor.

Mutual funds provide the benefit of diversification across different sectors and companies.
Mutual funds widen investments across various industries and asset classes. Thus, by
investing in a mutual fund, you can gain from the benefits of diversification and asset
allocation, without investing a large amount of money that would be required to build an
individual portfolio.

Mutual funds are usually very liquid investments. Unless they have a pre-specified lock-in
period, your money is available to you anytime you want subject to exit load, if any.
Normally funds take a couple of days for returning your money to you. Since they are well
integrated with the banking system, most funds can transfer the money directly to your bank

account. 7
Investors can benefit from the convenience and flexibility offered by mutual funds to invest
in a wide range of schemes. The option of systematic (at regular intervals) investment and
withdrawal is also offered to investors in most open-ended schemes. Depending on ones
inclinations and convenience one can invest or withdraw funds.

Low transaction cost

Due to economies of scale, mutual funds pay lower transaction costs. The benefits are
passed on to mutual fund investors, which may not be enjoyed by an individual who enters
the market directly.

Funds provide investors with updated information pertaining to the markets and schemes
through factsheets, offer documents, annual reports etc.

Mutual funds in India are regulated and monitored by the Securities and Exchange Board of
India (SEBI), which endeavors to protect the interests of investors. All funds are registered
with SEBI and complete transparency is enforced. Mutual funds are required to provide
investors with standard information about their investments, in addition to other disclosures
like specific investments made by the scheme and the quantity of investment in each asset

What are the risks involved in investing in mutual funds?

Mutual funds invest in different securities like stocks or fixed income securities, depending upon
the funds objectives. As a result, different schemes have different risks depending on the
underlying portfolio. The value of an investment may decline over a period of time because of
economic alterations or other events that affect the overall market. Also, the government may
come up with new regulations, which may affect a particular industry or class of industries. All
these factors influence the performance of Mutual Funds.

Risk and Reward:

The diversification that mutual funds provide can help ease risk by offsetting losses from some
securities with gains in other securities. On the other hand, this could limit the upside potential
that is provided by holding a single security.

Lack of Control:
Investors cannot determine the exact composition of a funds portfolio at any given time, nor can
they directly influence which securities the fund manager buys.

History of mutual fund


The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India (UTI) at the initiative of the Reserve Bank of India (RBI) and the Government
of India. The objective then was to attract small investors and introduce them to
market investments. Since then, the history of mutual funds in India can be broadly
divided into six distinct phases.

Phase I (1964-87): Growth Of UTI:

In 1963, UTI was established by an Act of Parliament. As it was the only entity
offering mutual funds in India, it had a monopoly. Operationally, UTI was set up by
the Reserve Bank of India (RBI), but was later delinked from the RBI. The first
scheme, and for long one of the largest launched by UTI, was Unit Scheme 1964.

Later in the 1970s and 80s, UTI started innovating and offering different schemes to
suit the needs of different classes of investors. Unit Linked Insurance Plan (ULIP) was

Launched in 1971. The first Indian offshore fund, India Fund was launched in August 1986. In
absolute terms, the investible funds corpus of UTI was about Rs 600 crores in 1984. By 1987-88,
the assets under management (AUM) of UTI had grown 10 times to Rs 6,700 crores.

Phase II (1987-93): Entry of Public Sector Funds:

The year 1987 marked the entry of other public sector mutual funds. With the opening up of the
economy, many public sector banks and institutions were allowed to establish mutual funds. The
State Bank of India established the first non-UTI Mutual Fund, SBI Mutual Fund in November
1987. This was followed by Canbank Mutual Fund,LIC Mutual Fund, Indian Bank Mutual Fund,
Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. From 1987-88 to 1992-
93, the AUM increased from Rs 6,700 crores to Rs 47,004 crores, nearly seven times. During this
period, investors showed a marked interest in mutual funds, allocating a larger part of their
savings to investments in the funds.

Phase III (1993-96): Emergence of Private Funds:

A new era in the mutual fund industry began in 1993 with the permission granted for the entry of
private sector funds. This gave the Indian investors a broader choice of 'fund families' and
increasing competition to the existing public sector funds. Quite significantly foreign fund
management companies were also allowed to operate mutual funds, most of them coming into
India through their joint ventures with Indian promoters.

The private funds have brought in with them latest product innovations, investment management
techniques and investor-servicing technologies. During the year 1993-94, five private sector fund
houses launched their schemes followed by six others in 1994-95.

Phase IV (1996-99): Growth and SEBI Regulation:

Since 1996, the mutual fund industry scaled newer heights in terms of mobilization of
funds and number of players. Deregulation and liberalization of the Indian economy
had introduced competition and provided impetus to the growth of the industry. A

Comprehensive set of regulations for all mutual funds operating in India was
introduced with SEBI (Mutual Fund) Regulations, 1996. These regulations set
uniform standards for all funds. Erstwhile UTI voluntarily adopted SEBI guidelines
for its new schemes. Similarly, the budget of the Union government in 1999 took a big
step in exempting all mutual fund dividends from income tax in the hands of the
investors. During this phase, both SEBI and Association of Mutual Funds of India
(AMFI) launched Investor Awareness Programme aimed at educating the investors
about investing through MFs.

Phase V (1999-2004): Emergence of a Large and Uniform Industry:

The year 1999 marked the beginning of a new phase in the history of the mutual fund
industry in India, a phase of significant growth in terms of both amount mobilized
from investors and assets under management. In February 2003, the UTI Act was
repealed. UTI no longer has a special legal status as a trust established by an act of
Parliament. Instead it has adopted the same structure as any other fund in India - a
trust and an AMC.

UTI Mutual Fund is the present name of the erstwhile Unit Trust of India (UTI).
While UTI functioned under a separate law of the Indian Parliament earlier, UTI
Mutual Fund is now under the SEBI's (Mutual Funds) Regulations, 1996 like all other
mutual funds in India. The emergence of a uniform industry with the same structure,
operations and regulations make it easier for distributors and investors to deal with
any fund house. Between 1999 and 2005 the size of the industry has doubled in terms
of AUM which has gone from above Rs 68,000 crores to over Rs 1,50,000 crores.

Phase VI (From 2004 Onwards): Consolidation and Growth: The industry has
lately witnessed a spate of mergers and acquisitions, most recent ones being the
acquisition of schemes of Allianz Mutual Fund by Birla Sun Life, PNB Mutual Fund
by Principal, among others. At the same time, more international players continue to
enter India including Fidelity, one of the largest funds in the world.



1. Don't just look at the NAV, also look at the risk:

Alliance Buy India and Alliance Equity both have 3 stars. That does mean their NAV is identical.
In fact, the NAV of Alliance Equity is 91.66 while that of Buy India is 16.05.

However, Alliance Buy India took an average risk and delivered an average return, while
Alliance Equity took an above average risk to get the above average returns. Hence their stars are
identical, despite one having a higher NAV.

2. Higher rating does not mean better returns:

A fund with more stars does not indicate a higher return when compared with the rest. All it
means is that you will get a good return without putting your money at too much risk.

Birla Equity Plan has a 4-star rating while Alliance Tax Relief '96 has a 2-star rating. However,
the fund with the 2-star rating has a higher NAV (131.96) than the one with the 4-star rating

3. Higher rating does not mean more risk:

Birla Advantage has an NAV of 67.09 while Franklin India Prima has an NAV of 122.92. This
does not necessarily mean that Franklin India Prima is offering a higher risk since the return is
higher. In fact, according to our ratings, Franklin India Prima is a 5-star fund while (risk is below
average) while Birla Advantage is a 2-star fund (risk is above average).


Sharekhan is a leading online broker in India. Sharekhan is actually a brand name from SSKI
Securities. In India if you are planning to trade in shares, buy sell stocks, trade in stock market
derivatives like future and options, or invest in commodities like gold etc. you should know
about Sharekhan. You can also open a Sharekhan Demat Account. A demat account is an account
which you need in India to buy and sell shares.


To be the best retail broking brand in the Indian Equity Markets.

Indias leading stock broker firm of SSKI group.
Sharekhan.com was launched in 2000.
More than 175 broking firms in over 80cities. Into broking industry since 80 years.

The company has more than eighty years experience in brokering business it was earlier known
as SSKI Group. The owner of the company is Mr. Dinesh Murikya.
Sharekhan is one of the leading retail brokerage firms in the country. It is the retail broking arm
of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock
broking business. Sharekhan offers its customers a wide range of equity related services
including trade execution on BSE, NSE, Derivatives, depository services, online trading,

Investment advice (Mutual Funds) etc. the firms online trading and investment site-
www.sharekhan.com-was launched on Feb 8, 2000. The site gives access to superior content and
transaction facility to retail customers across the country. Known for its jargon-free, investor
friendly language and high quality research, the site has a registered base of over 4 lakh

Currently accounts for just over 1 per cent of the daily trading in stocks in India, Sharekhan
alone accounts for 22 per cent of the volumes traded online. The content-rich and research
oriented portal has stood out among its contemporaries because of its steadfast dedication to
offering customers best-of-breed technology and superior market information.

The firms online trading and investment site-www.sharekhan.com-was launched on Feb 8, 2000.
The site gives access to superior content and transaction facility to retail customers across the
country. Known for its jargon-free, investor friendly language and high quality research, the site
has a registered base of over 4 lakh customers. The number of trading members currently stands
at over 3 Lacs. While online trading currently accounts for just over 1 per cent of the daily
trading in the stocks in India, Sharekhan alone accounts for 22 per cent of the volumes traded

The content-rich and research oriented portal has stood out among its contemporaries because of
its steadfast dedication to offering customers best-of-breed technology and superior market
information. The objective has been to let customers make informed decisions and to simplify
the process of investing in stocks.

On April 17, 2002 Sharekhan launched SpeedTrade, a net-based executable application that
emulates the broker terminals along with host of other information relevant to the Day Traders.
This was for the first time that a net-based trading station of this caliber was offered to the
traders. In the last six months SpeedTrade has become over the net. Sharekhans ground network
includes over 250 centers in 123 cities in India, of which 20 are fully-owned branches.

Sharekhan has always believed in investing in technology to build its business. The company has
Used some of the best-known names in the IT industry, like Sun Microsystems, Oracle,
Microsoft, Cambridge Technologies, Nexgenix, Vignette, VeriSign Financial Technologies India
Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The Morakhia family holds
a majority stake in the company. HSBC, Intel & Carlyle are the other investors.

With a legacy of more than 80 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. Presently SSKI is one of the leading
players in institutional broking and corporate finance activities. SSKI holds a sizeable portion of
the market in each of these segments. SSKIs institutional broking arm accounts for 7% of the
market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional
portfolio investment in the country. It has 60 institutional clients spread over India, Far East, UK
and US. Foreign Institutional Investors generate about 65% of the organizations revenue, with a
daily turnover of over US$ 2 million. The Corporate Finance section has a list of very prestigious
clients and has many firsts to its credit, in terms of the size of deal, sector tapped etc. The group
has placed over US$ 1 billion in private equity deals. Some of the clients include BPL Cellular
Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shoppers Stop.

Services provided by sharekhan:

Equity and Derivatives trading
Depository services
Mutual Funds
Commodities trading
Portfolio Management
Fundamental Research
Technical Research
Among the top 3 branded retail service providers (Rs 650 crs avg. daily volume-Apr
No. 1 player in online business.
Largest network of branded broking outlets in the country servicing 7, 00,000 clients.


Dr. Geeta Kesavaraj (2015), the researcher carried out the study with the aim to measure the
Customer Perception towards various types of Mutual Funds". It focuses its attention towards
the possibilities of measuring the expectations and satisfaction level of more mutual fund
products. It also aims to suggest techniques to improve the present level of perception. The study
will help the firm in understanding the expectations, future needs and requirements and
complaints of the consumers. The study had been dedicated mainly towards the promotion of
product or concept in the Chennai Market. The researcher used the Descriptive type of research
design in her study.

Prof Gauri Prabhu, Dr N.M. Vechalekar (2014), Mutual Funds provide a platform for a
common investor to participate in the Indian capital market with professional fund management
irrespective of the amount invested. The Indian mutual fund industry is growing rapidly and this
is reflected in the increase in Assets under management of various fund houses. Mutual fund
investment is less risky than directly investing in stocks and is therefore a safer option for risk
adverse investors.

Gaurav Agrawal & Dr. Mini Jain (2013), in todays competitive environment, different kinds
of investment avenues are available to the investors. All investment modes have advantages &
disadvantages. An investor tries to balance these benefits and shortcomings of different
investment modes before investing in them. Among various investment modes, Mutual Fund is
the most suitable investment mode for the common man, as it offers an opportunity to invest in a
diversified and professionally managed portfolio at a relatively low cost.

R Padmaja (2013), a mutual fund is a type of professionally-managed collective investment

vehicle that pools money from many investors to purchase securities. As there is no legal
definition of mutual fund, the term is frequently applied only to those collective investments that
are regulated, available to the general public and open-ended in nature. Mutual funds have both
advantages and disadvantages compared to direct investing in individual securities. Today they
play an important role in household finances.


Dr. Ravi Vyas (2012), conducted study on mutual fund investors behavior and perception in
Indore city It was found that mutual funds were not that much known to investors, still investor
rely upon bank and post office deposits, most of the investor used to invest in mutual fund for
not more than 3 years and they used to quit from The fund which was not giving desired results.

Equity option and SIP mode of investment were on top priority in investors list. It was also
found that maximum number of investors did not analyze risk in their investment and they were
depending upon their broker and agent.

Dr. Binod Kumar (2012), Singh In this paper, structure of mutual fund, operations of mutual
fund, comparison between investment in mutual fund and bank and calculation of NAV etc. have
been considered. In this paper, the impacts of various demographic factors on investors attitude
towards mutual fund have been studied. For measuring various phenomena and analyzing the
collected data effectively and efficiently for drawing sound conclusions, Chi-square ( ) test has
been used and for analyzing the various factors responsible for investment in mutual funds,
ranking was done on the basis of weighted scores and scoring was also done on the basis of

Dr. Shantanu Mehta, Charmi (2012), Shah The survey is undertaken of 100 educated investors
of Ahmedabad and Baroda city and the major findings reveal the major factors that influence
buying behavior mutual funds investors, sources that investor rely more while making
investment and preferable mode to invest in mutual funds market. The study will be immensely
useful to the AMC'; s, Brokers, distributors and to the other potential investors and last but not
least to academician as well.


For the solution of any problem a systematically established method is required. Same as in case
of solution of the research problem scientifically, a systematic method is required which is
known Research Methodology. The research methodology of the selected topic follows to these

The present research is EXPLORATARY and DESCIPTIVE in nature.
The Exploratory Study is a study based on observation and experience alone, it is also known
as data based research Exploratory research design does not aim to provide the final and
conclusive answers to the research questions, but merely explore the research topic with varying
level of depths. Exploratory research tends to tackle new problem on which no previous
research has been done. Exploratory research is the initial research, which forms the basis of
more conclusion research.
The Descriptive Study is a study which describes a situation, problem, service or program. It
does not answer questions about how/when/why the characteristics occurred rather it addresses
the what question.

Data were collected through both primary and secondary data sources. Primary data was
collected through questionnaires. The study was done in the form of direct personal interviews
and filling up of questionnaire through various officials.

A primary data is a data which is collected afresh and for the first time, and thus happen in
original in character. The primary data with the help of questionnaire is collected from various


Secondary data consist of information that already exists somewhere, have been collected.
Secondary data is collected from various websites, Annual Reports, Financial Reports.

To justify the research without any basis, the researcher has selected a sample of 100.

New Delhi

The sampling technique used is NON-RANDOM SAMPLING and under this Snowball
SAMPLING is used to collect the primary data. A convenience sampling is one in which
researcher users his or her own convince regarding the selection of samples.


MS-Excel is used to analyze the data collected from various officials.


The tools used for presentation of response from various officials are Pie-Charts and Bar Graphs.


The major limitations of the study are as under:

During the study, on many occasions the respondent groups were not willing to answer.
The respondents from whom primary data was gathered Many times displayed complete
ignorance about the complete branded range, which was being studied.
Lack of time is the basic limitation in the project.
Money played a vital factor in the whole project duration.
Lack of proper information and experience due to short period of time.


1. Investors Age at the time of Investment in mutual fund at Sharekhan.

Age 20-40 40-60 Above 60

% of investors 55% 40% 5%

Table 7.1
Fig. 7.2

INTERPRETATION: This Pie chart shows that 55% of people were at 20-40 age, 40% of
people were at 40-60 age and 5% people were above 60 at the time of investment.

2. Occupation of Mutual Fund investors.

Occupation Business Service Professional Others

man man
% of investors 30% 24% 26% 20%
Table 7.2

Fig. 7.2
INTERPRETATION: This pie chart shows that 30% of respondents are businessman,
24%are serviceman, 26% are professional and rest are others services.


3. Monthly Income level of the Mutual Fund investors.

Income level Below 15000 15000-20000 20000-30000 Above 30000

% of investors 5% 8% 27% 60%

Table 7.3

Fig. 7.3
INTERPRETATION: This pie chart shows that 5% respondents earns below 15000, 8%
earns between15000-20000, 27% earn between20000-30000, 60% earn above 30000.


. 4. Investors objective behind Investment in mutual fund.

Basis Growth in Tax Saving Earning Future

Income high Expense
% of investors 28% 18% 30% 24%
Table 7.4

Fig. 7.4
INTERPRETATION: The given pie chart shows 28% invest for growth in income,
18%invest for tax savings, 30% invest for earning high returns and rest for saving for future

5. Perception of investors towards mutual fund as a safe investment option

BASIS % of
Highly agree 35%

Agree 28%
Average 15%
Disagree 12%

Highly 10%
Table 7.5

Fig. 7.5
Interpretation: -
As shown in pie chart, we found that 35% Investors Highly agree , 28% Investors only agree,
15% are Average, 12% Investors are disagree, and 10% Investors are highly disagree with mutual
fund is completely safe as an investment option.

6. Perception of investors towards Mutual Fund on the basis of returns:
BASIS Percentage of
High 33%
Satisfactory 30%
Average 15%
Dissatisfactory 12%

High 10%
Total 100%
Table 7.6
Fig. 7.6
After study , we found that 33% Investors Highly satisfactory, 30% Investors only satisfactory,
15% are Average, 12% Investors are dissatisfactory, and 10% Investors are highly dissatisfactory
towards Mutual Fund as an investment option on the basis of return.

7. Percentage of features of Mutual Fund allures respondent most.

Basis % of investors
Diversification 25%

Regular income 10%

Better return & Safety 30%

Tax benefit 20%

Reduction in risk & 15%

Transaction cost

Total 100

Table 7.7
Fig. 7.7

INTERPRETATION: This pie chart shows that,30% investors consider the better return &
safety feature of mutual fund ,25%consider diversification, 10% consider Regular income,20%
consider tax benefit, 15% consider reduction in risk & transaction .

8. Tenure of investors investment in mutual fund:
Year % of investors

Less than 1 5%
1-2 15%
2-3 25%
More than 55%
3 year
Table 7.8
Fig. 7.8
The given pie chart shows that, 5% respondents invested for less than 1 year, 15% for 1-2year,
25% for 2-3 year, 55% more than 3 year in Mutual fund.


9. Different type of mutual fund scheme chooses by investors :

BASIS Percentage
Of investors
Open 73%
Close 12%
Interval 15%
Total 100%
Table 7.9

Fig. 7.9
As shown in the pie chart, 73% Investor invested in the Open ended scheme while 12%
Investor invested in the Close ended scheme and 15% in the Interval Fund.

10.Different type of funds chooses by mutual fund investors:

BASIS Percentage
Of investors
Equity 63%
Debt 15%
Hybrid 22%
Table 7.10
Fig. 7.10

As shown in the pie chart, 63% Investor invested in Equity fund, 15% investor invested in Debt
fund and 22% Investor Invested in Hybrid Fund.


11. If Equity Funds then, in which category

BASIS Percentage Of Customers
Diversified Equity Funds 49%

Mid-Cap Funds 22%

Sector Specific 11%

Tax Savings Funds 18%

Table 7.11

Fig. 7.11

As shown in the pie chart, 49%investors invest in diversified equity mutual fund, 22% in Mid-
Cap Fund, 11% in Sector Specified Fund, 18% in Tax Saving fund of Equity fund.

12. If Debt Funds then, in which category.
Fund Type % of investors
Gilt Fund 35%

Income Funds 28%

MIPs Short Term 12%
Plans (STPs)

Liquid Funds 25%

Table 7.12

Fig. 7.12

As shown in Pie chart, 35% investors invest in Gilt Fund, 28% in Income Fund, 12% in Short
Term Plans and rest is in Liquid Fund of the Debt Fund.



Mostly investors are 20-40 age group and mostly Businessman Participate more in
Mutual Funds than any other occupant.
Investors whose Income is Rs. 30000 or above likes to go for the Mutual Funds.
Investors invest in Mutual Fund for earning high return most.
Most of the Investor Perceive that Mutual fund is completely safe as an investment option
and highly satisfactory on the return basis.
Better Return & Safety allure the Mutual fund investors most.
Most of the investors invest in Mutual Fund for more than 5 years.
Most of Investors prefer to invest their money in Open Ended Schemes of Mutual Funds.
Equity funds are the most preferred choice amongst the investors as these are safer,
highly liquid and easier to understand compared with Equity.
Investors choose diversified Equity Fund in equity funds and Gilt fund in Debt Fund most
in Mutual Fund.



The main five reasons for investment in mutual funds are high returns, Risk, tax
exemption, Regular income and diversification.
Looking at the past developments and combining it with the current trends it can be
concluded that the future of Mutual Funds in India has lot of positive things to offer to its
The investors have shown interest towards the Mutual Funds. This fact is certainly
identified by the Mutual Fund companies as the number of schemes with various options
and benefits they are tailoring it certainly seems that the wave of Mutual Fund investment
is taking over.
Drivers of purchase of Mutual funds were found to be tax benefits, consistency in fund
performance and brand equity.
Looking at the past developments and combining it with the current trends it can be
concluded that the future of Mutual Funds in India has lot of positive things to offer to its

The investors have shown interest towards the Mutual Funds. This fact is certainly
identified by the Mutual Fund companies as the number of schemes with various options
and benefits they are tailoring it certainly seems that the wave of Mutual Fund investment
is taking over.



My consumer survey in Delhi has revealed the fact that the market for mutual fund is still
in its expansion stage. Hence the companies have to do a lot of things and activities to
develop the market for mutual fund in this capital city

Awareness of mutual fund products must be increased in this city.

As the awareness of mutual funds is still improving in this market, companies should
give focus on customer education.


Bogle J C (1992), Selecting Equity Mutual Fund, the Journal of Portfolio Management,
Vol. 18 No.2, PP. 94- 100.

James M. Dahle, MD, The White Coat Investor, White Coat Investor Publishers, 1 edition
(January 9, 2014)
Lu Zheng (1999), Is Money Smart? A study of mutual fund investors fund selection
ability, The Journal of Finance, Vol. LIV, No.3

Journals and Articles:

1. Dr. Geeta Kesavaraja (2015), Study on Customer Perception towards Various Types of
Mutual Funds in Chennai, Asia Pacific Journal of Research, Vol. i, No. x.

2. Gauri Prabhu & Dr. N.M. Vechalekar (2014), Perception of Indian Investor towards
Investment in Mutual Funds with Special Reference to MIP Funds, IOSR Journal of
Economics and Finance (IOSR-JEF), Pp. 6674.

3. Gaurav Agrawal & Dr. Mini Jain (2013), Investors Preference towards Mutual Fund in
Comparison to other Investment Avenues, Journal of Indian Research, Vol. 1, No.4, and
Pp. 115131.

4. R. Padmja (2013), A Study of Consumer Behavior towards Mutual Funds with special
reference to ICICI Prudential Mutual Funds, Vol. 2, No. 2.

5. Dr. Ravi Vyas (2012), Mutual Fund Investors Behaviour and Perception in Indore
City, Journal of Arts, Science & Commerce, Vol. 3, No, 3(1), Pp. 6775.

6. Dr. Binod Kumar Singh (2012), A Study on Investors Attitude towards Mutual Funds
as an Investment Option, International Journal of Research in Management, Vol. 2.

7. Dr. Shantanu Mehta & Charmi Shah (2012), Preference of Investors for Indian Mutual
Funds and its Performance Evaluation, Pacific Business Review International, Vol. 5,
No. 3, Pp. 6276.

1. http://www.bseindia.com
2. http://www.nseindia.com
3. http://www.moneycontrol.com
4. http://www.sharekhan.com
5. http://www.karvy.com
6. http://www.rbi.org


Please put a tick mark against the applicable option:

Questionnaire Response
(Tick the appropriate option)

Q1. What is your age?

a. between 20- 40 years
b. between 40- 60 years
c. Above 60

Q2. What is your occupation?

a. Businessman
b. Service man
c. Professional
d. Others

Q3. What is your monthly income level?

a. below Rs.15000
b. between Rs.15000 Rs.20000
c. between Rs.20000- Rs. 30000
e. Above 30000

Q4. What is your investment objective behind investment in Mutual Fund?

a. Growth in income
b. Tax Saving
c. Earning High Return
d. Future Expense

Q5.Do you perceived that Mutual Fund is safe as an investment option?

a. Highly Agree
b. Agree
c. Average
d. Disagree
e. Highly Disagree

Q6.What is your perception towards Mutual Fund on the Basis of Return?

a. High Satisfactory
b. Satisfactory
c. Average
d. Dissatisfactory
e. High Dissatisfactory

Q7. Which features of Mutual Fund allure you most?

a. Diversification
b. Regular Income
c. Better Return & Safety
e. Tax Benefit
f. Reduction in Risk & Transaction Cost

Q8. What is your Tenure period in Mutual Fund Investment?

a. Less than 1 year
b. 1-2 year
c. 2-3 year
d. More than 3 year

Q9. Which type of schemes do you prefer to invest?

a. Close Ended
b. Open Ended
c. Interval Ended
Q10. You have invested in which type of Mutual Fund Scheme?

a. Equity fund

b. Debt funds

c. Hybrid Funds

Q11. If Equity Funds then, in which category?

a. Diversified Equity Funds

b. Mid-Cap Funds

c. Sector Specific Funds

d. Tax Savings Funds

Q12. If Debt Funds then, in which category?

a. Gilt Funds

b .Income Funds

c. MIPs Short Term Plans (STPs)

d .Liquid Funds

For Further Assistance, Kindly provide your following details:-

Name _______________________________________________
Contact no. _______________________________________________
E-mail ID _______________________________________________