TOPIC : MUTUAL FUND FROM

INVESTOR’S POINT OF VIEW

INTRODUCTION OF MUTUAL FUND AND ITS VARIOUS
ASPECTS

Mutual fund is a trust that pools the savings of a number of investors who share a common financial
goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the
fund is thus “Mutual”, i.e. the fund belongs to all investors. The money thus collected is then invested
in capital market instruments
suchas shares, debentures and other securities. The income earned through theseinvestments and the
capital appreciations realized are shared by its unit holders in proportion the number of units owned by
them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a relatively low
cost. A Mutual Fund is an investment tool that allows small investor access to a well
diversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or
loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is
determined each day. Investments in securities are spread across a wide cross-section of industries and
sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in
the same direction in the same proportion at the same time. Mutual fund issues units to the investors in
accordance with quantum of money invested by them. Investors of mutual funds are known as unit
holders.

When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the
fund in the same proportion as his contribution amount put up with the corpus (the total amount of the
fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder. Any change
in the value of the investments made into capital market instruments (such as shares, debentures etc) is
reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the Mutual Fund
scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing the market value
of scheme's assets by the total number of units issued to the investors.
ADVANTAGES OF MUTUAL FUND

1. Portfolio Diversification
2. Professional management
3. Reduction / Diversification of Risk
4. Liquidity
5. Flexibility & Convenience
6. Reduction in Transaction cost
7. Safety of regulated environment
8. Choice of schemes
9. Transparency

DISADVANTAGE OF MUTUAL FUND

 No control over Cost in the Hands of an Investor

 No tailor-made Portfolios
 Managing a Portfolio Funds
 Difficulty in selecting a Suitable Fund Scheme
HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY
The mutual fund industry in India started in 1963 with the formation of Unit Trust of I n d i a , a t
the initiative of the Government of India and Reserve Bank. Though the
growth was slow, but it accelerated from the year 1987 when non-UTI players entered the Industry. In
the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise
as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the
Assets Under Management (AUM) was Rs67 billion. The private sector entry to the fund
family raised the Aum to Rs. 470 billion in March 1993 and till April 2004; it reached the height if
Rs. 1540 billion. The Mutual Fund Industry is obviously growing at a tremendous space with the
mutual fund industry can be broadly put into four phases according to the development of the
sector. Each phase is briefly described as under.

 First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament 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 andadministra
tive 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 InsuranceCorporation 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 (Jun90), 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)
 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 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions
under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were
33mutual funds with total assets of Rs. 1,21,805 crores.

 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
January2003, representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. 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.
Consolidation and growth. As at the end of September, 2004, there were 29 funds,
which manage assets of Rs.153108 crores under 421 schemes.

CATEGORIES OF MUTUAL FUND:

Mutual funds can be classified as follow:

Based on their structure:

Open-ended funds: Investors can buy and sell the units from the fund, at any
point of time.
Close-ended funds: These funds raise money from investors only once. Therefore, after the
offer period, fresh investments cannot be made into the fund. If the fund is listed on a stocks exchange
the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, most of the New
Fund Offers of close-ended funds provided liquidity window on a periodic basis such as monthly or
weekly. Redemption of units can be made during specified intervals. Therefore, such funds have
relatively low liquidity.

Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments. With fluctuating
share prices, such funds show volatile performance, even losses. However, short term fluctuations in
the market, generally smoothens out in the long term, there by offering higher returns at relatively
lower volatility. At the same time, such funds can yield great capital appreciation as,
historically, equities have out performed all asset classes in the long term. Hence, investment in
equity funds should be considered for a period of at least 3-5 years. It can be further classified as:

i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is
tracked. Their portfolio mirrors the benchmark index both in terms of composition and individual stock
weightages.

ii) Equity diversified funds- 100% of the capital is invested in equities spreading across
different sectors and stocks.

iii) Dividend yield funds- It is similar to the equity diversified funds except that they invest in
companies offering high dividend yields.

iv) Thematic funds- Invest 100% of the assets in sectors which are related through some theme
e.g. -An infrastructure fund invests in power, construction, cements sectors etc.

v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will
invest in banking stocks.

vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

BALANCED FUND:
Their investment portfolio includes both debt and equity. As a result, on the risk-return ladder, they fall
between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who
prefer spreading their risk across various instruments. Following are balanced funds classes:

i) Debt-oriented funds -Investment below 65% in equities.

ii) Equity-oriented funds-Invest at least 65% in equities, remaining in debt.

DEBT FUND:
They invest only in debt instruments, and are a good option for investor savers to idea of taking risk
associated with equities. Therefore, they invest exclusively in fixed-income instruments like
bonds, debentures, Government of India securities ;and money market instruments such as
certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these
debt funds depending on your investment horizon and needs.
i) Li qu id fu nd s - These funds invest 100% in money market instr uments, a
large portion being invested in call money market.

ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills.

iii) Floating rate funds- Invest in short-term debt papers. Floaters invest in debt
instruments which have variable coupon rate.

iv) Arbitrage fund-They generate income through arbitrage opportunities due to mis-pricing
between cash market and derivatives market. Funds are allocated to equities, derivatives and money
markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage
opportunities.

v) Gilt funds LT- They invest 100% of their portfolio in long-term government securities.

vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term
debt papers.

vii) MIPs - Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-
30% to equities.

viii) FMPs-fixed monthly plans invest in debt papers whose maturity is in line with
that of the fund.
 MUTUAL FUNDS FOR WHOM?

These funds can survive and thrive onl y if they can live up to the hopes and trusts of
their individual members. These hopes and trusts echo the peculiarities which support the emergence
and growth of such insecurity of such investors wh o come to the rescue of such investors who
face following constraints while making direct investments:

(a) Limited resources in the hands of investors quite often take them away from
stock market transactions.

(b) Lack of funds forbids investors to have a balanced and diversified portfolio.

(c) Lack of professional knowledge associated with investment business unable investors to
operate gainfully in the market. Small investors can hardly afford to have ex-pensive
investment consultations.

(d) To buy shares, investors have to engage share brokers who are the members of
stock exchange and have to pay their brokerage.

(e) They hardly have access to price sensitive information in time.

(f) It is difficult for them to know the development taking place in share market
and corporate sector.

(g) Firm allotments are not possible for small investors on when there is a trend of over -
subscription to public issues.
 WHY MUTUAL FUNDS?

M ut ual Funds are b ecom i ng a v er y pop ul ar form of i nvest m ent chara ct eri z ed b y
m an y advantages that they share with other forms of investments and what they possess
uniquely themselves. The primary objectives of an investment proposal would fit into one or
combination of the two broad categories, i.e., Income and Capital gains. How mutual fund is
expected to be over and above an individual in achieving the two said objectives, is what
attracts investors to opt for mutual funds. Mutual fund route offers several important advantages.

Diversification:
A proven principle of sound investment is that of diversification, which is the idea of not putting all
your eggs in one basket. By investing in many companies the mutual funds can pr ot ect
t hem s el ves from unex pect ed drop i n val ues of som e shares. The sm al l investors can
achieve wide diversification on his own because of many reasons, mainly funds at his disposal.
Mutual funds on the other hand, pool funds of lakhs of investors and thus can participate in a
large basket of shares of many different companies. Majority of people consider diversification as the
major strength of mutual funds.

Expertise Supervision:
Making investments is not a full time assignment of investors. So they hardly have a professional
attitude towards their investment. When investors buy mutual fund scheme, an essential
benefit one acquires is expert management of the money he puts in the fund. The
professional fund managers who supervise fund’s portfolio take desirable decisions v i z .,
what s cri p’s ar e t o be bought , what i nvest m ent s are t o be sol d and m ore
appropri at e decision as to timings of such buy and sell.

Reduced risks:
Risk in investment is as to recovery of the principal amount and as to ret urn on i t . M utual
fund i nves t m ent s o n bot h front s provi de a com fort abl e si t uat i on for investors. The
expert supervision, diversification and liquidity of units ensured in mutual funds reduce the risks.
Investors are no longer expected to come to grief by falling prey to misleading and motivating
‘headline’ leads and tips, if they invest in mutual funds.
Liquidity of Investment:
A distinct advantage of a mutual fund over other investments is that there is always a market for its
unit/ shares. Moreover, Securities and Exchange Board of India (SEBI) requires the mutual funds in
India have to ensure liquidity. Mutual funds units can either be sold in the share market as SEBI
has made it obligatory for closed-ended schemes to list themselves on stock exchanges. For
open-ended schemes investors can always approach the fund for repurchase at net asset value (NAV)
of the scheme. Such repurchase price and NAV is advertised in newspaper for the convenience of
investors.

Safety of Investment:
Besides depending on the expert supervision of fund managers, the legislation in a country
(like SEBI in India) also provides for the safety of investments. Mutual funds have to broadly
follow the laid down provisions for their regulations, SEBI acts as a watchdog and attempts whole
heatedly to safeguard investor’s interests.

Tax Shelter:
Depending on the scheme of mutual funds, tax shelter is also available. As per the Union Budget-
2003, income earned through dividends from mutual funds is 100% tax -free at the hands of the
investors.

Minimize Operating Costs:

Mutual funds having large invisible funds at their disposal avail economics of scale. The
brokerage fee or trading commission may be reduced substantially. The reduced operating
costs obviously increase the income available for investment.

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.

INVESTMENT OPTION
Growth Schemes
Growth mutual funds as the name implies invest in “growth stocks “. Growth schemes are known as
equity schemes. This scheme objectives at providing higher return from medium to long run. These
schemes normally invest a major part of their fund in equities and are willing to bear short term decline
in value for possible future appreciation. Growth schemes like reliance growth fund, HDFC growth
fund.

Dividend payout
The dividend payout ratio is the amount of dividends paid to stockholders relative to the amount of
total net income of a company. The amount that is not paid out in dividends to stockholders is held by
the company for growth. The amount that is kept by the company is called retained earnings.

Dividend re- investment

A dividend reinvestment program or dividend reinvestment plan (DRIP) is an equity investment option
offered directly from the underlying company. The investor does not receive
quarterly dividends directly as cash; instead, the investor's dividends are directly reinvested in the
underlying equity.
 COMPANY PROFILE
OVERVIEW OF COMPANY

Sharekhan limited by BNP Paribas is one of the top retail brokerage houses in India with a
strong online trading platform. Sharekhan is the 3rd largest retail broker in India and a leading mutual
funds distributor. The company provides equity based products (research, equities, derivatives,
depository, margin funding, etc.). It has one of the largest networks in the country with 1200+ share
shops in 400 cities and India’s premier online trading portal www.sharekhan.com. With their research
expertise, customer commitment and superior technology, they provide investors with end-to-end
solutions in investments. They provide trade execution services through multiple channels - an Internet
platform, telephone and retail outlets.

Sharekhan was established by Morakhia family in 1999-2000 and Morakhia family, continues to
remain the largest shareholder. It is the retail broking arm of the Mumbai-based SSKI [SHRIPAL
SHEWANTILAL KANTILAL ISWARNATH LIMITED] Group. SSKI which is 1established in
1930 is the parent company of Sharekhan ltd. With a legacy of more than 80 years in the stock
markets, the SSKI group ventured into institutional broking and corporate finance over a decade ago.
Presently SSKI is one of the leading players in institutional broking and corporate finance activities.
Sharekhan offers its customers a wide range of equity related services including trade execution on
BSE, NSE, and Derivatives. Depository services, online trading, Investment advice, Commodities, etc.
Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 and now it is having all
the rights of SSKI. The company was awarded the 2005 Most Preferred Stock Broking Brand by
Awaaz Consumer Vote. It is first brokerage Company to go online. The Company's online trading and
investment site - www.Sharekhan.com - was also launched on Feb 8, 2000. This 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 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.

Sharekhan has one of the best states of art web portal providing fundamental and statistical information
across equity, mutual funds and IPOs. One can surf across 5,500 companies for in- depth information,
details about more than 1,500 mutual fund schemes and IPO data. One can also access other market
related details such as board meetings, result announcements, FII transactions, buying/selling by
mutual funds and much more.
Sharekhan's management team is one of the strongest in the sector and has positioned Sharekhan to
take advantage of the growing consumer demand for financial services products in India through
investments in research, pan-Indian branch network and an outstanding technology platform. Further,
Sharekhan's lineage and relationship with SSKI Group provide it a unique position to understand and
leverage the growth of the financial services sector. We look forward to providing strategic counsel to
Sharekhan's management as they continue their expansion for the benefit of all shareholders.

SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong
research-driven focus. Their team members are widely respected for their commitment to transactions
and their specialized knowledge in their areas of strength. The team has completed over US$5 billion
worth of deals in the last 5 years - making it among the most significant players raising equity in the
Indian market. SSKI, a veteran equities solutions company has over 8 decades of experience in the
Indian stock markets. If we experience their language, presentation style, content or for that matter the
online trading facility, we'll find a common thread; one that helps us make informed decisions and
simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all about.
"Sharekhan has always believed in collaborating with like-minded Corporate into forming strategic
associations for mutual benefit relationships" says Jaideep Arora, Director - Sharekhan Limited.
Sharekhan is also about focus. Sharekhan does not claim expertise in too many things. Sharekhan's
expertise lies in stocks and that's what he talks about with authority. So when he says that investing in
stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting
on a single horse, it is something that is spoken with years of focused learning and experience in the’
stock markets. And these beliefs are reflected in everything Sharekhan does for us! Sharekhan is a part
of the SSKI group, an Indian financial services power house, with strong presence in Retail equities
Institutional equities Investment banking.

In Ahmedabad, It is having the branch at Dynamic house, opp. Child care hospital, Navrangpura road
and over 40 franchisees in Ahmedabad. We have been given the centre at Navrangpura road,
Ahmedabad.

Sharekhan business
Brokering business.

Vision Of Sharekhan
To be the best retail broking brand in the retail business of the stock market.

Mission Of Sharekhan
To educate and empower the individual investor to make better investment decisions through quality advices
and superior services.

SHAREKHAN RETAIL BROKING

1. Among the top three branded retail services providers (Rs 856 crores average daily volume).
2. NO. 2 player in online business
3. Large network of branded broking outlets in the country servicing around 5,45, 000 Clients

MANAGEMENT TEAM

Mr. Jaideep Arora Shankar Vailay

BOARD OF DIRECTORS
 Benefits of investing through Sharekhan
 Free Depository A/c
 Secure Order by Voice Tool Dial-n-Trade.
 Automated Portfolio to keep track of the value of your actual purchases.
 24x7 Voice Tool access to your trading account.
 Personalized Price and Account Alerts delivered instantly to your Cell Phone & E-mail address.
 Special Personal Inbox for order and trade confirmations.
 Online Customer Service via Web Chat.
 Anytime Ordering.
 NSDL Account
 Instant Cash Tranferation
 Multiple Bank Option
 Enjoy Automated Portfolio
 Buy or sell even single share.

Branch - Head Office

A-206, Phoenix House, 2nd Floor, Senapati Bapat Marg, Lower Parel, Mumbai- 400 013. Telephone
No: 67482000

Email: myaccount@sharekhan.com

PRODUCTS OF SHAREKHAN
1. CLASSIC ACCOUNT
This account allows the client to trade through the website www.sharekhan.com and is suitable for the retail
investor who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently.

It allows investor to buy and sell stocks online along with the following features like multiple watch lists,
Integrated Banking, De-mat and Digital contracts, Real-time portfolio tracking with price alerts and Instant
money transfer.

FEATURES
 Online trading account for investing in Equity and Derivatives via www.sharekhan.com
 Live Terminal and Single terminal for NSE Cash, NSE F&O, BSE & Mutual Funds (online and offline).
 Integration of Online trading, Saving Bank and De-mat Accounts.
 Instant cash transfer facility against purchase & sale of shares.
 Competitive transaction charges.
 Instant order and trade confirmation by E-mail.
 Cash & Derivatives
 Personalized market watch.
 Provision to enter price trigger and view the same online in market watch.

2. TRADE TIGER
TRADE TIGER is an internet-based software application which is the combination of EQUITY &
COMMODITIES, that enables you to buy and sell share and well as commodities item instantly. It is ideal for
every client of SHAREKHAN LTD.

FEATURES
 Integration of EQUITY & COMMODITIES MARKET.
 Instant order Execution and Confirmation.
 Single screen trading terminal for NSE Cash, NSE F&O & BSE & Commodities.
 Technical Studies.
 Multiple Charting.
 Real-time streaming quotes
 Market summary
 Alerts and reminders.
 Back-up facility to place trades on Direct Phone lines.

3. DIAL-N-TRADE
Along with enabling access for your trade online, the CLASSIC and TRADE TIGER ACCOUNT also gives you
our Dial-n-trade services. With this service, all you have to do is dial our dedicated phone lines which are 1800-
22-7500, 3970-7500.

4. PORTFOLIO MANAGEMENT SERVICES

Sharekhan is also having Portfolio Management Services for Exclusive clients.

1. PROPRIME - Research & Fundamental Analysis.

Ideal for investors looking at steady and superior returns with low to medium risk appetite. This portfolio
consists of a blend of quality blue-chip and growth stocks ensuring a balanced portfolio with relatively medium
risk profile. The portfolio will mostly have large capitalization stocks based on sectors & themes that have
medium to long term growth potential.

2. PROTECH - Technical Analysis.

Protech uses the knowledge of technical analysis and the power of derivatives market to identify trading
opportunities in the market. The Protech lines of products are designed around various risk/reward/ volatility
profiles for different kinds of investment needs.

1. THRIFTY NIFTY: Nifty futures are bought and sold on the basis of an automated trading system that
generates calls to go long/short. The exposure never exceeds value of portfolio i.e. there is no leveraging; but
being short in Nifty allows you to earn even in falling markets and there by generates linear

2. BETA PORTFOLIO: Positional trading opportunities are identified in the futures segment based on
technical analysis. Inflection points in the momentum cycles are identified to go long/short on stock/index
futures with 1-2 month time horizon. The idea is to generate the best possible returns in the medium term
irrespective of the direction of the market without really leveraging beyond the portfolio value. Risk protection
is done based on stop losses on daily closing prices.

3. STAR NIFTY: Trailing Stops Momentum trading techniques are used to spot short term momentum of 5-10
days in stocks and stocks/index futures. Trailing stop loss method of risk management or profit protection is
used to lower the portfolio volatility and maximize returns. Trading opportunities are explored both on the long
and the short side as the market demands to get the best of both upwards & downward trends.

3. PROARBITRAGE - Exploit price analysis

Online ipo's and mutual funds advisory is available.

PROCESS OF ACCOUNT OPENING

LEAD MANAGEMENT SYSTEM (LMS) / REFERENCES

CONTACT

TELEPHONE AND PRESONAL VISIT

APPOINTMENT

DEMONSTRATION

AGREE DISAGREE (CLOSE)

DOCUMANTATION
 FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDING THE ACCOUNT OPENING KIT TO THE CUSTOMER FOR TRADING

OBJECTIVES OF THE STUDY

 To study the level of awareness of mutual funds

 To analyze the perception of investors towards mutual funds.
 To study the factors considered by the investors and those which ultimately influence
him while investing.
 To determine the type of mutual fund investor prefers the most.
 RESEARCH METHODOLOGY

Meaning of research
Research refers to the systematic method consisting of theory and enunciating the problem,
formulating the hypothesis, collecting the facts or data, and reaching the conclusion.
Research methodology define as the systematic plan, design, collection, analysis and reporting of data
and findings relevant to a specific marketing situation facing the company

Data Source:
This report is based on primary as well as secondary data. The study aims at finding out the attitude of
the investors towards Mutual fund. This study was based mainly on primary sources. The primary data
was collected from the investors of mutual funds with help of the questionnaire. The secondary data
were collected from the books, records and journals. The essential data were collected with the help of
questionnaire.

PRIMARY DATA:-
Primary data are collected by a study specifically to fulfill the data needs of the problem at hand. Such
data are original in character and are generated in large number of surveys conducted mostly by
government and also by individual, institution, and research bodies.

METHODS OF COLLECTING PRIMARY DATA:-

 Direct personal interviews
 Indirect oral interviews.
 Information from correspondence.
 Mail questionnaire method.

SECONDARY DATA:-
Data which are not originally collected but rather obtained from published and unpublished sources are
known as secondary data.

SOURCES OF SECONDARY DATA:-

 Published sources
 Unpublished sources

Sampling procedure:
By adopting convenience sampling, approximately 50 respondents were selected for this study. The
essential data were collected with the help of questionnaire.

It was collected through filling up the questionnaire prepared. The data has been analyzed by using
Statistical tool.

Sample design:

Data has been presented with the help of bar graph, pie charts, line graphs, etc.

Mathematical and statistical tools used for data analysis:

 Percentage method
 Average method.

Limitation:

The following were the limitation that were there during the course of study:
I. Limited time period, as the clients were busy with their own duty, they could give me little
time.
II. Biasness of the respondent.
III. Clients were not able to give proper time due to their busy schedule and time constraints.
IV. Clients may have given wrong answers fearing the adverse consequences.
V. Some respondents were reluctant to divulge personal information which can affect the validity
of all responses.

CHAPTER:-3
 DATA ANALYSIS & INTREPRETATION

TABLE:-1

1. Occupation wise classification:-

Occupation No. of respondents Percentage

Professional 15 10%
Business man 99 66%
Employee 12 8%
Govt.employees 18 12%
Student 06 4%
Total 150 100%

Occupation wise classification

160

140

120
Occupation
100
No. of respondents
80
percentage

60 1 2 3 4 5 6
Categories of occupation
40

Figure:- 1 20

0
Inference:-

 66% of respondent were belonging to businessman category.

 4% of respondent were belonging to students category.

TABLE NO.-2

Income wise classification:-

Income level NO. of respondents Percentage

5000-10000 18 12%
10000-15000 45 30%
15000-20000 63 42%
More than 20000 24 16%
Total 150 100%

Fig:- 2

Income wise classification

No.of repondents

160

140

120 NO. of respondents

100 Percentage

80
5000- 10000- 15000- More Total
60
10000 15000 20000 than
40 20000
Income levels
20

Inference:-
0

 42% of respondent are having income of 15000-20000

 12% of respondents are having income of 5000-10000

TABLE NO.-3

Savings:-

Saving No. of respondents Percentage

1000-4000 27 18%
4000-7000 23 15%
7000-10000 72 48%
More than 10000 28 19%
Total 150 100%

Fig:-8

Monthly saving

160
No. of respondents

140

120 percentage

No. of respondents
100

80

60 4000-7000 7000-10000 More than Total

10000
40 saving

20

Inference:-
1000-4000

 48% of respondent are saving 7000-10000

 15% of respondents are saving 4000-7000

TABLE NO.-4

Awareness of mutual fund among General mass:-

Attributes No. of respondent Percentage

Yes 135 9o%
No 15 10%
Total 150 100%

Figure:-9
135

9o%

Inference:-

 90% of respondents was aware of mutual fund

 10% was not aware of mutual fund

TABLE NO.-5

Where do you want to invest most:-

Investment alternatives No. of respondents Percentage

Bank deposits 51 34%

Stock market 14 9.5%

Insurance 38 25.5%

Mutual fund 29 19.5%

Debenture 5 3.5%

Derivatives 13 9%

Total 150 100%

Fig:-10

Investment pattern

350
No.of respondents

300
Percentage
250
No. of respondents

200

150

100

50 Invstment alternatives

Inference:-
 34% of respondents liked to invest in bank deposit.

 3.5% liked to invest in debenture.

TABLE NO.-6

Do you want to invest?

Attributes No. of respondents Percentage

Yes 120 80%
No 30 20%
Total 150 100%

Yes
Fig:-11
No

Inference:-

 80% of respondents want to invest.

 20 % don’t want to invest

TABLE NO.-7

Reason to invest in mutual fund:-

Reason No. of respondents Percentage

More return 36 24%

Safety 25 16.5%

Limited risk 27 18%

Capital appreciation 39 26%

Systematic investment 23 15.5%

Total 150 100%

Fig:-12

reason to select MF

160
No.of respondents

140

120 Series1

100 Series2

80

60
More return

Safety

Limited risk

appreciation

Total
investment
Systematic

40
Capital

20

0 Benefits of MF

Inference:-

 26% of respondent would like to invest in mutual fund because of capital

appreciation.
 15.5% of respondents would like to invest in mutual fund for systematic investment.
TABLE NO.-8

Investment amount in Mutual fund:-

Amount No. of respondents Percentage

1000-4000 10 6.7%
4000-7000 18 12%
7000-10000 75 50%
More than 10000 47 31.3%
Total 150 100%

investment amount in MF

160

140

120

100 No. of respondents

Percentage
80

60
1000- 4000- 7000- More than Total
40 10000 10000
4000 7000
20 Amount
Fig:-13
0

Inference:-

 50% of respondents wants to invest 7000-10000

 6.7% respondents wants to invest 1000-4000

TABLE NO.-9

PREFERRED FUND IN MF

S.NO. FUND NO. OF PERCENTAGE

RESPONDENTS
1 EQUITY FUND 51 34%
2 DEBT. FUND 24 16%
3 BALANCED FUND 44 29%
4 ELSS SCHEME 41 21%
TOTAL 150 100%

Source : PRIMARY DATA

Fig:-14

Inference:-

 34% of respondents prefer equity scheme of mutual fund.

 16% of respondents prefer debt scheme of mutual fund.

TABLE NO.-15

Have you invested in any other mutual fund?

Attributes No. of respondents Percentage

Yes 18 15%

No 102 85%

Total 120 100%

Fig:-20

Yes

1
Inference;-
2

 85% of respondents haven’t invested in other mutual fund.

 15% of respondents have invested in other mutual fund

TABLE NO.-16

In which mutual fund have you invested?

Names No. of respondents Percentage

Prudential ICICI mutual fund 2 10.5%

Reliance mutual fund 6 33.3%

Birla sun life mutual fund 3 16.6%

SBI mutual fund 4 22.6%

Others 0 0%

Total 18 100%

Fig:-21

investment in other MF

18
16
14
12
10 No. of respondents

8 Percentage
Birla sun Others
6 life
mutual
4
2 fund
Other MF COs
0

Prudential
ICICI
Inference:-
mutual

fund
 33.3% of respondents have invested in Reliance mutual fund
TABLE NO.-18

For which benefit will you suggest others to invest in Mutual fund?

Benefits No of respondents Percentage

Good return 20 20.8%

Tax benefit 28 29.9

Future benefit 39 40.7%

Capital appreciation 9 9.6%

Total 120 100%

Fig:-23

120

100

No of respondents

tage
80
20

Good return Tax Future Capital Total

60
0 Benefit Bbene Appreciation
fit

40
Inference:-

 40.7% of respondents would like to suggest others for future benefits.

 9.6% respondents would suggest for capital appreciat

 FINDINGS
 66% of respondent were belonging to businessman category. (refer Table no.1)
 42% of respondent are having income of 15000-20000 (refer Table no.2)
 48% of respondent are saving 7000-10000 (refer Table no.3)
 90% of respondents was aware of mutual fund (refer Table no.4)
 34% of respondents liked to invest in bank deposits. (refer Table no.5)
 80% of respondents want to invest. (refer Table no.6)
 26% of respondent would like to invest in mutual fund because of capital
appreciation. (refer Table no.7)
 50% of respondents want to invest 7000-10000. (refer Table no.9)
 85% of respondents haven’t invested in other mutual fund. (refer Table no.15)
 33.3% of respondents have invested in Reliance mutual fund. (refer Table no.16)

 40.7% of respondents would like to suggest others for future benefits. (refer Table
no.18)
 RECCOMENDATIONS

 There is need to build awareness of the new funds among the investors with constantly
being in contact with them.

 Proper training should be given to the advisor so that they will solve the question of
the customer mind.

 Some of investors have asked for periodical market report about stock market so that
they can get the knowledge properly.

 AMCs should go for increasing more awareness about different facilities of investment
such as SIP among investors.

 The AMC should advertise their tax saving plan more so that they can gain more
customers.
 The promotional activities play a vital role. So it should be given importance for
creating more awareness among the people.
 To provide some kind of curriculum at the school/college level to create awareness
regarding Mutual Fund

CONCLUSION

Finally I would like to conclude my study by saying that the STANDARD CHARTERED
Mutual fund is one of the fastest growing mutual fund company in India which fulfills the
needs of new and existing investors. The STANDARD CHARTERED Mutual fund also
gives a way to forthcoming investors.

Mutual fund is an emerging investment alternative which has grown so fatly in few decades
and definitely it will be the powerful industry in future.

The mutual fund is one of the safe investment alternative in which the new investor, who
belong to limited salaried group, like to invest in these kind of mutual for steady and limited
yield with limited risk, tax benefit.
From the above responses of questionnaire we can say that

 Investors are still not very much aware about mutual fund.
 Equity fund is most preferable fund.
 Advertisement is one of the ways to explore mutual fund.
 AMC should be more focuses on fund performance.
 The tax benefits on mutual funds made a turning point to its investors.
 Company should reduce the initial amount of mutual fund schemes so, it covers lot of
customers.
 Banks is most preferable investment on the basis of safety.
BIBLIOGRAPHY

Websites:

www.mutualfundsindia.com

www.amfi.com

www.mutualfunds.com

www.bseindia.com

www.sebi.com

www.sebi.gov.in

www.capitalmarket.com

www.moneycontrol.com

www.alliancecapitalindia.com
 QUESTIONNAIRE

1) Name:-

2) Occupation:-

3) Your monthly income:-

a) 5000-10000

b) 10000-15000
c) 15000-20000
d) More than 20000
4) How much are you saving?

a) 1000-4000

b) 4000-7000
c) 7000-10000
d) More than 10000
5) Do you want to invest?

a) Yes
b) No
c) Cannot say
6) Do you know about mutual fund?

a) Yes

b) No
7) Where do you want to invest?

a) Bank deposit
b) Stock market
c) Insurance
d) Mutual fund
e) debenture
f) Derivatives
g) Bonds
8) If you want to invest in mutual fund, why ?

a) More return

b) Safety

c) Limited risk

d) Capital appreciation

e) Systematic investment

9) How much do you want to invest in

mutual fund? a) 1000-4000

b) 4000-7000

c) 7000-10000

d) More than 10000

10) In which scheme you have invested?

a) Equity scheme

b) Debt scheme

c) Balanced fund scheme

d) Equity linked saving scheme

11) Have you invested in any other mutual fund?

a) Yes

b) No

12) If you have invested in mutual fund, then in which mutual fund you have invested?

a) Prudential ICICI mutual fund

b) Reliance mutual fund

c) Birla sun life mutual fund

d) STANDARD CHARTERED Mutual fund

e) SBI mutual fund

f) Others