DECLARATION

I SHILPA BATHLA, 3rd Sem of VAISH COLLEGE OF ENGG. do hereby declare that
the project report titled “A STUDY ON MUTUAL FUND” is a genuine research work
undertaken by me and it has not been published anywhere earlier.
 ACKNOWLEDGEMENT

Acknowledgements are a bit like acceptance speeches; Predictable but

from the heart so here is some predictable prose direct from the heart.

I take this opportunity to express my sincere gratitude to “Karvy Stock Broking Ltd.”
for providing me an opportunity to undertake the study for degree of Master of Business
Administration.

On the onset I would like to thank Mr. KRISHAN GOPAL, Branch Head of Karvy
Stock Broking Ltd. at Rohtak Branch, who gave me the opportunity to work on this project
which helped me with immense learning.

I am grateful to Mr. KRISHAN GOPAL, Miss DIVYA, Miss EKTA who not only
guided me, but also supported and gave me required time and advice to complete the project.

The report would have been incomplete without the cooperation & support of my faculty
members and my friend (colleagues).

And lastly I would like to thanks to the staff of Karvy Stock Broking Ltd. who during
my stay in the office have made me feel a part of them and made my stay comfortable in the
office.

2
 PREFACE

The project study has been conducted in lieu of requirement laid down by
MAHARSHI DAYANAND UNIVERSITY, ROHTAK for the degree of MBA(BE) Under
this requirement, every student is supposed to undergo summer training or to write to a
project report an industrial or commercial organization. It enables the students to understand
the practical aspect of the conceptual studies learnt by them in the commerce subject. The
purpose of providing on the training to student is to supplement their academic knowledge
with the practical knowledge and acquaint them with the intricate problem, which are faced
while applying the theory into practice. In the mercantile world, there happen so many
practices, which are not warranted under the law. On the training enables the student to draw
a via Media through which law can be implemented by twisting the same in favor of the
circumstances, without of course, violating the basis spirit of law. Thus, the importance of
providing on the training is immense and can’t be under scared by any stretch of imagination.

3
4
COMPANY PROFILE

5
 Company Profile

Karvy was established as karvy and company by five chartered accountants during the year
1979-80, and then its work was confined to audit and taxation only. Later on it diversified
into financial and accounting services during the year 1981-82 with a capital of rs.150000. it
achieved its first milestone after its first investment in technology. Karvy became a known
name during the year 1985-86 when it forayed into capital market as registrar.

Evolution of KARVY:

It is well said that success is a journey not a destination and we can see it being proved by
karvy. Under this section we will see that how this “karvy and company” of 1980 became
“karvy” of 2008. Karvy blossomed with the setting up of its first branch at Mumbai during
the year 1987-88. The turning point came in the year 1989 when it decided to enter into one
of the not only emerging rather potential field too i.e; stock broking. It added the feather of
stock broking into its cap. At the same time it became the member of Hyderabad Stock
Exchange through associate firm karvy securities ltd and then karvy never looked
back……..it went on adding services one after another, it entered into retail stock broking in
the year 1990. Karvy investor service centers were set up in the year 1992. Karvy which
already enjoyed a wide network through its investor service centers, entered into financial
product distribution services in the year 1993. One year more and karvy was now dealing
into mutual fund services too in the year 1994 but it didn’t stopped there, it stepped into
corporate finance and investment banking in the year 1995.

Karvy’s strategy has always been being the first entrant in the market. Karvy again hit the
limelight by becoming the first registrar in the country to be awarded ISO 9002 in the year
1997. Then it stepped into the other most happening sector i.e; IT enabled services by
establishing its own BPO units and at a gap of just 1 year it took the path of e-Business
through its website www.karvy.com . Then it entered into insurance services in the year 2001
with the launch of its retail arm “karvy- the finapolis: your personal finance advisor”. Then

6
in the year 2002 it launched its PCG(Private Client Group) which looks after its High
Networth Individuals .and maintain their portfolio and provides them with other financial
services. In the year 2003, it commenced secondary debt and WDM trading.

It was a decade which saw many Indian companies going global…..so why the largest
financial service provider of India should lag behind? Hence, karvy launched “karvy global
services limited” after entering into a joint venture with Computershare, Australia in the year
2004.the year 2004 also saw karvy entering into commodities marketing through karvy
comtrade.

Year 2005 saw karvy establishing a separate branch for its insurance services under the head
“ karvy insurance broking ltd” and in the same year, after being impressed
with the rapid growth of karvy stock broking limited, PCG group of Hong
Kong acquired 25% stake at KSBL. In the year 2006, karvy entered into one
of the hottest sector of present time i.e real estate through Karvy realty&
services (India) ltd. hence , we can see now karvy being established as the
lagest financial service provider of the country.

7
 Karvy Group Co’s

 Karvy Consultants Ltd.

 Karvy Stock Broking Ltd.
 Karvy Investor & Services Ltd.
 Karvy Computer Share Pvt. Ltd.
 Karvy Global Services Ltd.
 Karvy Commodities Broking Pvt. Ltd.
 Karvy Insurance Broking Pvt. Ltd.
 Karvy Inc.

8
QUALITY POLICY

To achieve $ retain leadership, Karvy shall aim for complete satisfaction, by combining it’s
human $ technological resources, to provide superior quality financial services. In the
process, Karvy will stive to exceed customers expectations.

QUALITY OBJECTIVES

As per the quality policy ,Karvy will.

1. Build in- house processes that will ensure transparent

• Harmonious relationship with its clients& investors to provide high quality of
services.
• Establish a partner relationship with its investors service agent & vendors that will
help in keeping up its commitments to the customers.
• Provide high quality of work life for all its employees & equip them with adequate
knowledge & skills so as to respond to customers needs.
• Continue to uphold the values of honesty &integrity & strive to establish unparalleled
standards in b/s ethics.
• Use state -of-the art information tech. In developing new & innovative financial
products & services to meet the changing needs of investors & clients.
• Strive to be a reliable source of value- added financial products & services &
constantly guide the individuals & institution in making a judicious choice of same.
• Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers
& regulatory authorities) proud & satisfied.

9
MUTUAL FUND

10
 Mutual Funds

In the financial industry the talk of the day is “Mutual Funds”. Of late MFs have
become a hot favorite of millions of people all over the world.

A MF is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is invested by the fund manager in different types of
securities depending upon the objective of the scheme. These could range from shares to
debentures to money market instruments. The income earned through these investments and
the capital appreciation realized by the scheme are shared by its unit holders in proportion to
the number of units owned by them (pro-rata). Thus a MF is the most suitable investment for
the common man as it offers an opportunity to invest in a diversified, professionally
managed portfolio at a relatively low cost. Anybody with an investible surplus of as little as a
few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined
investment objectives and strategy.

Hence Mutual Fund is nothing but a form of collective investment made at a high level, to
enjoy the economies of large-scale operations

The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly
calculated daily based on the total value of the fund divided by the number of shares
currently issued and outstanding. The value of all the securities in the portfolio in calculated
daily. From this, all expenses are deducted and the resultant value divided by the number of
units in the fund is the fund’s NAV.

NAV = Total value of the fund……………….

No. of shares currently issued and outstanding

11
HISTORY AND GROWTH
OF
MUTUAL FUND

12
HISTORY AND GROWTH OF MUTUAL FUNDS IN INDIA

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India,
at the initiative of the Government of India and Reserve Bank. The history of mutual funds in
India can be broadly divided into four distinct phases.

First Phase – 1964-87

An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs.6, 700 crores of assets under management.

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

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990. At the end of 1993, the mutual fund industry had assets under
management of Rs.47, 004 crores.

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

13
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of
Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under
management was way ahead of other mutual funds.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs.29, 835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation
of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth. As at the
end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores
under 421 schemes

14
Working of a mutual fund

15
STRUCTURE

OF

MUTUAL FUND

16
 Mutual Fund structure and constituents

All mutual funds comprise four constituents – Sponsors, Trustees, Asset Management
Company (AMC) and Custodians.

Sponsors: The sponsors initiate the idea to set up a mutual fund. It could be a registered
company, scheduled bank or financial institution. A sponsor has to satisfy certain conditions,
such as capital, record (at least five years’ operation in financial services), default free
dealings and general reputation of fairness. The sponsors appoint the Trustee, AMC and
Custodian. Once the AMC is formed, the sponsor is just a stakeholder.

Trust/Board of Trustees: Trustees hold a fiduciary responsibility towards unit holders

by protecting their interests. Trustees float and market schemes, and secure necessary
approvals. They check if the AMC’s investments are within well-defined limits, whether the
fund’s assets are protected, and also ensure that unit holders get their due returns. They also
review any due diligence by the AMC. For major decisions concerning the fund, they have to
take the unit holder’s consent. They submit reports every six months to SEBI; investors get
an annual report. Trustees are paid annually out of the fund’s assets – 0.5 percent of the
weekly net asset value.

Fund Managers/AMC: They are the ones who manage money of the investors. An
AMC takes decisions, compensates investors through dividends, maintains proper accounting
and information for pricing of units, calculates the NAV, and provides information on listed
schemes. It also exercises due diligence on investments, and submits quarterly reports to the
trustees. A fund’s AMC can neither act for any other fund nor undertake any business other
than asset management. Its net worth should not fall below Rs. 10 crore. And, its fee should
not exceed 1.25 percent if collections are below Rs. 100 crore and 1 percent if collections are
above Rs. 100 crore. SEBI can pull up an AMC if it deviates from its prescribed role.

Custodian: Often an independent organization, it takes custody of securities and other

assets of mutual fund. Its responsibilities include receipt and delivery of securities, collecting
income distributing dividends, safekeeping of the units and segregating assets and

17
settlements between schemes. Their charges range between 0.15-0.2 percent of the net value
of the holding. Custodians can service more than one fund.

Risk v/s. return:

18
 TYPES

OF

MUTUAL FUND

19
 TYPES OF MUTUAL FUND

Schemes according to Maturity Period

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.

Open-ended Fund/ Scheme

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. Investors 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.

Close-ended Fund/ Scheme

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.
Investors 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. In
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.
SEBI 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.

Schemes according to Investment Objectives

20
A scheme can also be classified as growth scheme, income scheme, or balanced scheme

considering its investment objective. Such 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.

Income / 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. If the interest rates fall, NAVs
of such funds are likely to increase in the 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.

21
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

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.

Index Funds

Index 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 weightage
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.
There are also exchange traded index funds launched by the mutual funds, which are traded
on the stock exchanges.

Sector specific funds

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 these schemes offer
tax rebates to the investors under specific provisions of the Income 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

22
benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their
growth opportunities and risks associated are like any equity-oriented scheme

Load or no-load Fund

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.
A no-load fund is one that does not charge for entry or exit. It means the investors can enter
the fund/scheme at NAV and no additional charges are payable on purchase or sale of units.

INVESTMENT
STRATEGIES

23
 Investment strategies:

1. Systematic Investment Plan: under this a fixed sum is invested each month on a
fixed date of a month. Payment is made through post dated cheques or direct debit facilities.
The investor gets fewer units when the NAV is high and more units when the NAV is low.
This is called as the benefit of Rupee Cost Averaging (RCA)

2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and
give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same
mutual fund.

3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund

then he can withdraw a fixed amount each month.

24
ADVANTAGES

OF

MUTUAL FUND

25
 Why should one Invest in Mutual Funds?

Mutual Funds offer a whole variety of benefits for their investors. These benefits have helped
mutual funds achieve such outstanding success in developed markets like UK and US. This
section explains the key benefits offered by mutual funds.

Affordability
A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the
investment objective of the scheme. An investor can buy in to a portfolio of equities, which
would otherwise be extremely expensive. Each unit holder thus gets an exposure to such
portfolios with an investment as modest as Rs.500/-. Thus it would be affordable for an
investor to build a portfolio of investments through a mutual fund rather than investing
directly in the stock market.

Diversification
Simply means that you must spread your investment across different securities (money
market instruments, bonds, stocks, real estate, fixed deposits etc.) and different sectors
(banking, textile, IT, etc.). This kind of a diversification may add to the stability of returns, so
as to offset any underperformance by any one sector or instrument and help the investor meet
his investment objective.

26
Variety
Mutual funds offer a whole variety of schemes. This variety is beneficial in two ways: first,
it offers different types of schemes to investors with different needs and risk appetites;
secondly, it offers an opportunity to an investor to invest sums across a variety of schemes,
both debt and equity. For example, an investor can invest his money in a debt scheme and an
equity scheme depending on his risk appetite to create a balanced portfolio easily or simply
just buy a Balanced Scheme.

Professional Management

Qualified investment professionals seek to maximize returns and minimize risk monitor
investor's money. In a mutual fund, the investor is handling his money to an investment
professional that has experience in making investment decisions. It is then the Fund
Manager's job to (a) find the best securities for the fund, given the fund's stated investment
objectives; and (b) keep track of investments and changes in market conditions and adjust the
mix of the portfolio, as and when required.

Liquidity
One is free to take his money out of open-ended mutual funds whenever required. Most
open-ended funds mail your redemption proceeds, which are linked to the fund's prevailing
NAV (net asset value), within three to five working days of putting in request.

Regulations

Securities and Exchange Board of India ("SEBI"), the Capital Markets regulator has clearly
defined rules, which govern mutual funds. These rules relate to the formation, administration
and management of mutual funds and also prescribe disclosure and accounting requirements.
Such a high level of regulation seeks to protect the interest of investors.

27
DISADVANTAGES

OF

MUTUAL FUND

28
Disadvantages of investing through mutual funds:

While the benefits of investing through mutual funds far outweigh the disadvantages, an
investor and the advisor will do well to be aware of a few shortcomings of using the mutual
fund as an investment vehicle.

1. No Control over Costs: An investor in a mutual fund has no control over the
overall cost of investing. He pays investment management fees as long as he remains with
the fund, albeit in return for the professional management and the research. He is also
supposed to pay fund distribution costs, which he would not incur in direct investing.

2. No Tailor Made Portfolios : Investing through mutual funds means

delegation of the portfolio to the fund manager. The very high net worth individuals and the
large corporate investors may find this to be a constraint in achieving their objectives.

3. Managing a Portfolio of funds : Availability of a large variety of funds can

actually mean too much choice for an investor. He may again need advice on how to select a
fund to achieve his investment objectives, quite similar to the situation when he has to select
individual shares or bonds to invest in.

29
OBJECTIVES

OF THE

RESEARCH

30
 OBJECTIVE OF THE STUDY

The main objective is to analyze the market potential of financial products and services
provided by “KARVY STOCK BROKING LTD.” At Rohtak branch. To achieve the overall
objective, various sub-object have been established.

These are :

 To study the feature of various financial product and service provided by KARVY
STOCK BROKING LTD.
 To analyse the market potential of the Mutual Fund & Financial product and service.
 To know about the future prospective of the Mutual Fund & KARVY STOCK
BROKING LTD.
 To know more and more about mutual fund and stock market.

Totally I can say that I want to know more and more about financial product like Mutual
Fund, Stock market, Insurance, Demat Account.

So that I choose the KARVY STOCK BROKING LTD. for my summer training.

31
 REVIEW

OF

LITERATURE

32
 Review of existing literature

Almost all the mutual fund companies conduct surveys whenever they are about to launch a
new fund in the market. To know the performance of the present schemes of the companies
their fact sheets was gone through. Various magazines and newspapers were also consulted to
get the secondary data for the study and also the information is accessed through internet.

33
 RESEARCH

METHODOLOGY

34
.

Research Methodology

Type of research

Explanatory research

Universe and survey population

The universe of the survey was the investor of Rohtak city. The survey population was 100.

Research design

A lot of research has been conducted on this issue earlier so the research design adopted was
descriptive and field study.

Sample size

35
 The sample constituted 100 respondents. The respondents were of various age
groups, varying income groups and having different occupations.

The investment decisions are influenced by a no of variables. The income, no of

dependents,&various motivating factors like advertisement, reputation of the firm are some
of the factors which have an impact upon the decision of making investment. As there occurs
some change in these variables the decisions of investment changes accordingly.

COLLECTION OF DATA

For the purpose of conducting study, data has been collected from two sources viz;
Primary Source and Secondary Source. For collecting primary data an appropriate interview
method & questionnaire method has been used. The questionnaire consisted of questions
related to the their awareness about MFs and their views regarding Mutual Fund industry.

It consisted of both open ended and close-ended questions.Seecondary data consists of data
collected from annual reports, files relating to mutual funds,newspapers and many other from
internet

36
 DATA

ANALYSIS

37
1. which type of investment you would preferred ?

Investment Percentage of investment

Bank 30
Insurance 35
Mutual funds 20
Share market 15

40

35

30

25

20

15

10

0
Bank Insurance Mutual Fund Stock market

Interpretation

The graph show that the mostly people like to invest in insurance which % is 35%, because
mostly people want risk cover in their life because future is uncertain because policy holder

38
want after his death his nominee tet the insurance money so that their family will face any
problem. Other investments of people are 30% banks, 20% mutual funds, 15% stock market.

2. Do you know about mutual fund?

Response Percentage of respondent

Yes 60
No 40

70

60

50

40

30

20

10

0
Yes No

Interpretation

The graphshow that mostly people heard about mutual funds which is 60%,

39
40% people don’t heard about mutual fund.

3. You believe in investment in which sector of mutual funds?

sector Percentage of respondent

Public 60
Private 40

70
60
60

50
40
40

30

20

10

Public sector Private sector

40
Interpretation

The graph show that 60 of people believe in public sector and 40 believe in private sector,

So people like to invest in government organizations.

4. Which factor motivate you to invest in mutual funds?

Advertisement 25
Operation staff 20
Executives 30
Credibility of mutual fund companies 25

41
 Advertisement credibility of M.F. CO.

25% 25%

20%
30%

Executives Operation staff

Interpretation

The graph show that 30% of executive motivate investors to invest in mutual funds, because
sales manager and IC have a art to attract the customer to invest in mutual funds,
advertisement play 25% role because today it is a most attractive tool to convince the
customers, operational staff and credibility of mutual funds, companies part is 20%-
25%,because most of the people believe its credibility most.

5. In which category do you belong?

Category Percentage of respondent

Small investors 30
Businessmen 30
Professional 20
Servicemen 10

42
 Others 10

Interpretation

The graph shows that the maximum number of persons are small investors & businessmen
its % I s 30-30 who prefer the mutual funds as compare to serviceman professionals and
servicemen’s part in it is 10% & 20% .in others there are daily wage worker and children are
here.

6. which type of mutual fund would you prefer to invest ?

Types Percentage of preference

Close ended mutual fund 30
Open ended mutual fund 24
Pure growth fund 27

43
 Balanced fund 19

Interpretation

The graph show that 24% of the people invest in open ended mutual funds and 30% people
prefer to invest in close ended mutual funds. 27% invest in Pure growth fund and 30%
invest in balanced fund.

7. which factor you consider more to invest in mutual funds ?

Fectors Percentage
Safety 35

44
 Tax benefits 20
More returns 25
Intrest rate 20

Interpretation

The graph shows that safety is the major factor in the mind of people while investing in
mutual funds because people want to secure their investment, its share is 35%, other fector
are more returns, tax benefits, interest rate 25%, 20%& 20% respectively.

8. Does goodwill of the company effect the investors to invest in mutual funds?

Goodwill effect Percentage

Yes 70
No 30

45
Interpretation

It is clear that goodwill of the company effect the investors to invest in mutual funds its share
is 70% while the other one is just 30%.

9. In which private mutual fund company you would like to invest ?

Private mutual fund companies Percentage

Reliance mutual fund 30
Tata mutual fund 20
Birla mutual fund 20

46
 Others 30

Interpretation

30% of the people like to invest in reliance mutual fund because it is a reputed organization
as compare to others and it is brand name as compare to tata mutual fund 20% ,Birla 20%
and others are 30%.

10. According to you which mutual fund sector is more beneficial to investors ?

Mutual fund sector Percentage

47
 Public sector 40
Private sector 60

Interpretation

The graph shows that 60% of the people think that private sector is more beneficial for the
investors while 40% people think that public sector is more beneficial for the investors.

11. According to you which mutual fund sector is growing in all over India ?

Mutual fund sector Percentage

Public sector 45
Private sector 55

48
Interpretation

The graph shows that 55% of people thinks that the private sectro is growing more as
compare to public sectoer which is 45%.

49
LIMITATIONS
OF THE
STUDY

50
 LIMITATIONS

World has so many things, all things have two aspects one is advantages and another is
disadvantages, according to this my project also has some limitation that are given below:

1. Limited time: There was limited time in which this project has to be completed.
Therefore it was a major limitation of the study.

2. Sample Size : The sample size was only limited to one branch.

3. Limited Area :The area covered in this project was only Rohtak, not whole Haryana.

4. Few interaction : There was few interaction with the people as we were only
limited within an area.

5. Communication Problem : Faced problem while communicating.

6. Respondent Response : Some time respondent does not gave the proper
response.

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FINDINGS

OF THE

STUDY

52
 FINDINGS

 UTI was the first mutual fund company which entered in India in 1963.
 Kothari pioneer mutual fund was the first private sector mutual fund company which
entered in India in 1993.
 Private sector mutual fund’s NAV is higher than public sector mutual fund.
 Public and private mutual funds are growing but the private mutual fund sector at a
rate higher then the rate of public sector mutual funds.
 Private sector mutual fund provides more benefits to investors as compare to public
sector mutual funds.
 People think the public sector mutual funds are more secure.
 Mutual funds are mostly preferred by small investors

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 Suggestions

&

Recommendations

54
 Suggestions & Recommendations :

(i) Karvy should concentrates on others countries also rather than concentrating
on Germany, U.S.A, U.K.
(ii) Karvy should use more sales force for capturing the contracts from abroad
and also within the country.
(iii) Time to time demonstration should be provided regarding their products so
that people may remain more in contact.
(iv) More qualified key personnel should be adopted for full growth &
development.

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ANNEXURE

56
 QUESTIONNAIRE

1. Where do you invest (Save) your money?

A) Bank B) Insurance

C) Mutual Fund D) Stock Market

3. Do you know about mutual fund?

Yes No

4. Does you ever think to invest in mutual fund?

Yes No

5. If known about mutual fund, upto how much will you like to invest?

a) below 50,000 b) 50,000 – 1,00,000 c) 1,00,000 - above

6. Through which company & of which company would you like to invest?

a) Tata Mutual Fund b) SBI Mutual Fund c) Fidelity Mutual Fund

7. Is it gives / provides you tax benefit?

Yes No

8. Upto how much percentage of it saves your income?

a) 20% b) 30% c) Above 30%

9. Which category of gender mostly invests in mutual fund?

a) Male b) Female

10. On the basis of others saying will you like to invest in mutual fund?

Yes No

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11. Do you know about Karvy Consultant Ltd.?

Yes No

12. Do you know that mutual fund can give more return then bank deposit?

Yes No

13. How do you think this will benefit you?

___________________________________________________________

14. On the basis of the reputation of the company would you like to invest in that’s
company mutual fund?

________________________________________________________________

Name ………………………….

Address ………………………….

………………………….

Occupation ………………………….

Contact No. ………………………

58
BIBLIOGRAPHY

59
 BIBLIOGRAPHY

 Kothari,C.R.Research Methodology” New Delhi Vishwa parkashan Pvt.Ltd.

 www.karvy.com
 www.amfi.com

Magazines:-
 Business Today
 Business In

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