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INTRODUCTION Any product that can be used for commerce or an article of commerce which is traded on an authorized Mutual funds exchange is known as Mutual funds. The article should be movable of value, something which is bought or sold and which is produced or used as the subject or barter or sale. In order to be a successful trader, we must understand the true realities of the markets. We must learn how the professionals make money and what is possible. Most traders come into Mutual funds, lose a substantial portion of their capital and then leave trading without ever having a correct perception of what good trading is all about. When talking about Mutual funds futures, it is very easy for people to associate it with risks. Yes, a Mutual funds future trading involves greater risks than buying stocks. However, we would like to inform you that we will experience a Mutual funds market in the next decade or so. Mutual funds prices in the coming years will be influenced by two the forces of deflation and inflation. If deflationary forces dominate, commodity prices will tend to decrease; if inflationary forces dominate, commodity prices will tend to increase. However, this is not always and necessarily the case. The job of the person who wants to trade Mutual funds rationally and prudently is to ignore the promises of those promoting pie-in-the-sky prediction mechanisms and concentrate on finding and in futures contracts are similar to Options. Both represent actions that occur in future. But Options are contract on the underlying futures contract where as futures are either to accept or deliver the actual physical commodity. To make a decision between using a futures contract or an options contract, producers need to evaluate both alternatives.
Aims and Objective To know the organization Know the importance of Mutual funds Know the various Mutual funds To analysis the various trading transactions
Methodology: Methodology is the systematic method or an activity, which is used to collect the information required to complete this project work. The data is collected by 2 methods: 1. Primary data 2. Secondary data. Primary data Is collected through personal interaction with franchise owner of Kotak mutual funds and office staff, opinion collected from traders in Bangalore city Secondary data, This is secondary in nature i.e. already, collected information. This secondary data is collected through-
Limitations of the study 1. The study is limited to only Kotak Mutual funds 2. The study is limited to opinion of branch officer and respondent
Analysis 1. Most of customers are not aware of the mutual funds 2. Form the analysis we found that most of the individual traders they know the advantages of commodities and are aware of risk of trading in commodity. 3. Every contract generally ends on the 20th of month 4. Most of the traders are satisfied with the services offered by Kotak Mutual fund Ltd. 5. Some of the traders expect some more services form Kotak 6. From the analysis we came to know that most of the individual traders are merchants 7. Agriculture products only trade in seasonal wise 8. Commodity services remain isolated to the traders Conclusion 1. Traders are aware about the risk involved in commodity feature contract 2. Heavy risk involved in mutual fund feature contract 3. Agriculture products only trade in seasonal wise 4. Contracts are only one month validity Recommendation 1. Advertising should be done 2. Kotak commodity should take step to educate traders about the profitability and liquidity of the commodity 3. Network development is most essential of this type of organization. 4. If company is seeking to grow their profits , they have to spend considerable time and resources 5. Day today trading activities should be implemented. 6. Kotak should advertise their services regularly 7. The company should maintain a good relationship in reality and improve quick services.
Our Corporate Identity
1.1 GENERAL INTRODUCTION
In today’s market people invest money to gain more. So when they take into account, they mostly look out for Investment Company where they can get more income. Investment companies can be classified into closed-end and open-end investment companies. Closed-end is when it is readily transferable in the market. Open-end funds sell their own shares to investors and ready to buy back their old shares. If we talk about the investment options today, in India we have so many investment companies like UTI, LIC etc, all have their own special ways of servicing the customers. The investors also feel that they are worth to be the part of that company. These days’ people mainly look for avoiding tax so normally they look out for some investments which can help them in doing so. When it comes to this point of view, people mainly look out for mutual fund. Mutual fund is a pool of funds which is divided into units of equal value and sold to investing public and the funds so collected are utilized for collective investments in various capitals and money market instrument. The project “Investment Options for Investors in Mutual Funds” was undertaken in Kotak Mahindra Asset Management Co Ltd (KMAMCL). This is one of the leading players in the Mutual Fund market with different schemes. This company was established as a trust under the Indian Trust Act, 1882.
1.2 THEORETICAL BACKGROUND
MUTUAL FUND The Indian MF industry is at a point of strategic inflection. It was founded with the establishment of UTI in 1964. The private sector MF entered the Scene in early 1990 s and introduced better service standards and wider product choices. The Indian MF industry has not performed up to the mark in gaining investor confidence. The assets have been garnered based on performance rather than confidence of investor.
CONCEPT AND ORIGIN OF MF Personnel investing involve a clear understanding of the investment environment; Investing means the committing of money for the purchase of assets, based on a careful analysis of risks and rewards anticipated over a period of time. Depending upon the characteristics of individuals there exists a broad spectrum of purposes for Investors seeking monetary returns. Investors have a wide variety of opportunity to commit funds various types of saving plans involving bonds, preferred stocks and common stocks and other types of portfolio are available. In contrast to the large investors who can engage experienced investment Advisors in the selection and supervision of there funds, the small investors, by there nature and other limitations cannot construct and successfully manage investment Portfolio. They lack the proper technical knowledge of the capital market and the share market transactions and consequently may suffer heavy losses. The basic principles of investment trusts are diversifying the securities purchased for the trust and expert management. It reduces the risks of capital depreciations and poor dividends. At the same time the investors are given the benefit of expert management through trained experienced and specialized personnel, which are the ordinary investors usually lacks.
There are two main types of investment companies. The first group is variously called Management investment trust or a closed end companies in U.S.A And Japan. The second is the unit trust type and by far the more important one. These Are referred to as open end investment companies or as mutual funds as they are Usually called. These may be either fixed or flexible. MEANING OF MUTUAL FUNDS Mutual fund is a pool of funds which is divided into units of equal value and sold to investing public and the funds so collected are utilized for collective investment in various capital and money market instrument DEFINITIONS Different persons in different words have defined mutual fund. The SEBI (MF) Regulations, 1993 defines mutual fund as “A fund established in the form of a trust by a sponsor to raise monies by the trustees through the sale of units to the public under one or more schemes for investing in securities in accordance with these regulations.” CHARACTERISTICS OF MF a) A mutual fund actually belongs to the investors who have pooled their funds. The ownership of the MF is in the hands of the investors. b) A MF is managed by investment professionals and other service providers, who earn a fee for their services from the fund. c) The pool of funds is invested in a portfolio of marketable investment. The value of the portfolio is updated every day. d) The investor’s share in the fund is denominated by units. The value of the units changes with change in the portfolio’s value, every day. The value of one unit of investment is called as the net assets value or NAV. e) The investment portfolio of the Mutual fund is vested according to the slated Investment objectives of the fund
Meaning of Investment The use of money for the purpose of making more money, to gain income, increase capital or both.
Definition of Investment Physical investment is the current product set aside during a given period to be used for future production. Investment Company A company or trust that uses its capital to invest in other companies. There are two principal types – closed-ended and the open-ended. Shares in closed-ended investment companies, some of which are listed on the New York Stock Exchange are readily transferable in the open market and are bought and sold like other shares. Capitalization of these companies remains the same unless action is taken to change, which is seldom. An open-ended fund sells their own shares to investors; stands ready to buy back their old shares and are not listed. These funds are so called because their capitalization is not fixed; they issue more shares as people want them.
Financial Institutions Indian financial system is dominated by state sponsored financial institutions. Recognizing the role of state in the planned development of the economy, government of India has established specialized financial institutions, often called as “Development Banks” or Term lending institutions. These financial institutions are expected to mobilize medium and long term savings from the public and arrange for extending term loans for industry, commerce and trade. The financial institutions can be broadly classified as Investment companies, who mobilize small savings from surplus units and Loan companies, who extend variety of financial assistance to different enterprises.
Investment Options The different investment options in the market include Equity, Financial Institution bond, Co-operate debenture, Company fixed deposit, LIC, Public Provident Fund, Gold, Real Estate, Mutual Fund, Bank Deposits etc. A comparison of different investment options with respect to their Performance is as shown in the following table.
Options Equity FI Bond Debenture Company FD PPF LIC Gold Real Estate Mutual Fund Bank Deposit
Volatilit y High Moderate
High/Low Moderate Moderate Low Low Moderate Low Moderate Low High High High Low Moderate High Moderate Low Low High High
Cooperate Moderate Moderate Moderate Moderate Low Moderate High Low High High Low High Moderate High Low Low Low Moderate
Moderate High High Low Moderate Low
STRUCTURE OF THE INDIAN MUTUAL FUND INDUSTRY Structure wise Mutual fund Industry can be classified in to three categories: Unit Trust of India The Indian Mutual Fund industry is dominated by the Unit Trust of India, which has a total corpus of Rs.51,100 crore collected from over 20 million investors. The UTI has many funds/ schemes in all categories i.e. Equity, Balanced, Debt, Money Market etc. With some being open ended and some being closed ended. The Unit scheme 1964 commonly referred to as US 64, which is a balanced fund, is the biggest scheme with a corpus of about 10,000 crore. Public Sector Mutual Funds The second largest categories of mutual funds are the ones floated by nationalized banks. Can bank asset management floated by Canara Bank and SBI Funds Management floated by State Bank of India are the largest of these. GIC AMC floated by General Insurance Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the other prominent ones. The aggregate corpus of the funds managed by this category of AMC’s is around Rs. 8,300 crore. Private Sector Mutual fund The third largest categories of mutual funds are the ones floated by the Private Sector Domestic Mutual funds and the Private Sector Foreign Mutual Funds. The largest of these in Private Sector Domestic Mutual funds are Cholamandalam Asset Management Co.Ltd., J.M Capital Management Co. Ltd., Escort Asset Management Ltd., Birla Sun Life Asset Management Pvt.Ltd., and in Private Sector Foreign Mutual Funds these are Alliance Capital Asset Management Pvt.Ltd., Prudential ICICI Management Co. Ltd., Sun F&C Asset Management Pvt.Ltd., and Zurich Asset Management Co.Pvt.Ltd. The aggregate corpus of the assets managed by this category of AMC’s is about Rs. 42,200 crore.
CONSTITUENTS OF MUTUAL FUND There are many entities involved and the diagram below illustrates the constitu tion of a mutual fund:
Organization of a Mutual Fund 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), de-fault 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 welldefined 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 holders 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 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.
Product Classification Profile Of Mutual Fund Industry 0 In all, investors have a choice of 397 funds to choose from covering
the gamut of financial offerings. Types include income, growth, balanced, liquid or money market, gilt and equity linked tax savings schemes. 1 2 Income funds constitute the largest category with assets under management of Rs 52,300 crore or 54 per cent. Balanced schemes account for Rs 19,500 crore or 20 per cent, and growth funds Rs 13,800 crore or 14 per cent. 3 4 Liquid or money market funds account for 6 per cent or Rs 6,000 crore; gilt funds have AUM of Rs 2,900 crore or 3 per cent and equity-linked tax savings funds account for Rs 2,300 crore or 2.4 per cent of the industry's assets. Growth of Mutual Funds Industry in India The Indian Mutual fund Industry has passed through three phases. The first phase was between 1964 and 1987 and the only player was the Unit Trust of India, which had a total asset of Rs. 6,700/- crores at the end of 1988. The second phase is between 1987 and 1993 during which period 8 funds were established (6 by banks and one each by LIC and GIC). The total assets under management had grown to Rs. 61,028/- crores at the end of 1994 and the numbers of schemes were 167. The third phase began with the entry of private and foreign sectors in the Mutual fund industry in 1993. Kothari Pioneer Mutual fund was the first fund to be established by the private sector in association with a foreign fund. As at the end of financial year 2006 (31st March) 32 funds were functioning with Rs. 1, 13,005 crore as total assets under management. As on August end 2000, there were 33 funds with 391 schemes and assets under management with Rs. 1,02,849 crore and on 31st December 2006, it was 1,01,600 crore. Asset under management has been because, declining because
of US-64 scam, which is the one of the balanced scheme under Unit Trust of India held a large amount of Asset Under Management. Several private sector Mutual Funds were launched in 1993 and 1994. The share of the private players has risen rapidly since then. Currently there are 36 Mutual Fund organizations in India managing over Rs. 1, 02,000/- crore. Competition in the Mutual Fund Industry Mutual Fund is the industry which is facing severe competition from the other financial Products. The four Types of competition in the Mutual Fund Industry are as follows: Inter-industry Competition Intra-industry Competition Competition between the different Mutual fund schemes Competition between the different Assent Management Company. 0 Global Scenario Of Mutual Fund Industry. The money market mutual fund segment has a total corpus of $ 1.48 trillion in the U.S. Out of the top 10 mutual funds worldwide, eight are banksponsored. Only Fidelity and Capital are non-bank mutual funds in this group. In the U.S. the total number of schemes is higher than that of the listed companies. Internationally, mutual funds are allowed to go short. In India fund managers do not have such leeway. In the U.S. about 9.7 million households will manage their assets online by the year 2005, such a facility is not yet of avail in India.
On- line trading is a great idea to reduce management expenses from the current 2 % of total assets to about 0.75 % of the total assets.
72% of the core customer base of mutual funds in the top 50-broking firms in the U.S. is expected to trade on-line by 2005.
ADVANTAGES OF MUTUAL FUNDS: If mutual funds are emerging as the favorite investment vehicle, it is because of the many advantages they have over other forms and avenues of investing, particularly for the investor who has limited resources available in terms of capital and ability to carry out detailed research and market monitoring. The following are the major advantages offered by mutual funds to all investors: Portfolio diversification: Mutual Funds normally invest in a well-diversified portfolio or securities. Each investor in a fund is a part owner of all of the fund’s assets. This enables him to hold a diversified investment portfolio even with a small amount of investment that would otherwise require big capital. Professional Management: Even if and investor has a big amount of capital available to him, he benefits from the professional management skills brought in the management of the investor’s portfolio. The investment management skills, along with the needed research into available investment options, ensure a much better return than what an investor can manage on his own. Few investors have the skills and resources of their own to succeed in today’s fast moving, global and sophisticated markets.
Reduction/Diversification of Risk: An investor in a mutual fund acquires a diversified portfolio, no matter how small his investment. Diversification reduces the risk of loss, as compared to investing directly in one or two shares or debentures or other instruments. When and investor invests directly, all in the pool of funds with other investors, any loss on one or two securities is also shared with other investors. This risk reduction is one of the most important benefits of a collective investment vehicle like the mutual fund.
Reduction of transaction cost: What is true of risk is also true of the transaction costs. A direct investor bears all the costs of investing such as brokerage or custody of securities. When going through a fund. He has the benefit of economies of scale; the funds pay lesser costs because of larger volumes, a benefit passed on to its investors. 0 1 Liquidity: 2 3 Often, investors hold shares or bonds they cannot directly, easily and quickly sell. Investment in a mutual fund, on the other hand, is more liquid. An investor can liquidate the investment, by selling the units to the fund if open-end or selling them in the market if the fund is closed-end, and collect funds at the end of a period specified by the mutual fund or the stock market. Convenience and Flexibility:
Mutual Fund management companies offer many investor services that a direct market investor cannot get. Investors can easily transfer their holdings from one scheme to the other; get updated market information, and so on. RISK FACTORS ASSCIATED WITH MUTUAL FU NDS 1. Mutual funds & securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the Scheme will be achieved. 2. Past performance of the Sponsor or that of existing Schemes of the Fund does not indicate the future performance of the Schemes. 3. As with any securities investment, the NAV of the Units issued under the scheme can go up or down depending on the factors and forces affecting the capital and money market. 4 .Tax laws may change, affecting the return on investment in Units.
1.3 TYPES OF MUTUAL FUND SCHEMES 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 funds 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 Objective: 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 the 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. Balance Fund The aim of balance 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.
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 are 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 weight age comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as “tracking error” in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.
There are also exchange traded index funds launched by the mutual funds, which are traded on the stock exchanges.
2.1 OBJECTIVES OF THE STUDY
1. To track investor’s attitude, performance and behavior with respect to financial institutions and financial products.
2. To find new and more effective ways of ensuring customer satisfaction and to find efficient ways of communicating it. 3. To conduct the study with references to Kotak Mahindra products and the competitive scenario in which Kotak Mahindra operates.
2.2 SCOPE OF THE STUDY
The study includes investors, financial institutions, investors who are interested in Kotak Mahindra Asset Management Company’s mutual fund and also the individuals who are interested in the investment on the mutual fund. Mainly this study was conducted in two districts of Kerala, Ernakulam and Kottayam. The individuals without investment are also included in the scope of the study.
2.3 STATEMENT OF THE PROBLEM
The investment objective of Kotak Mahindra Asset Management Co is “to generate capital appreciation from a diversified portfolio of predominantly equity and equity related securities or securities issued by central and state government”. Despite this objective, the reasons like mutual fund investments are subject to market risk, there is no assurance or guarantee that the objective of the scheme can be achieved and also the Net
Asset Value (NAV) of the units can go up or down depending on factors affecting the capital and money market, many of the investors tend not to invest in the mutual fund investment.
2.4 OPERATIONAL DEFINITIONS OF CONCEPTS
NET ASSET VALUE (NAV): Net Asset Value (NAV) denotes the performance of particular scheme of a mutual fund Mutual Funds invest he money collected from the investors in securities markets. In simple words, Net Asset Value is the market value of the securities held by the scheme. Since market value of securities changes every day, NAV of a scheme also varies on day-to-day basis. The NAV per unit is market value of securities of scheme divided by the total number of units of the scheme on any particular date. Formula of the calculation of Net Asset Value: Market Value of Investments Net Asset Value = -----------------------------------------No. of units Outstanding However, most people refer loosely to the NAV per unit as NAV, ignoring the "per unit".
2.5 REVIEW OF LITERATURE
The research required primary and secondary source of data. The primary data is obtained through structured questionnaires designed Secondary Data’s are the one which is collected from web site of Kotak Mahindra, investors and company records. It also includes
Albert J Fredman, How Mutual Funds Work, Eastern Economy Edition, Prentice Hall of India Pvt Ltd, New Delhi 0 1 Week 15/01/2007 (Regarding Mutual Fund Investment) Financial Chartered Analyst 01/09/2006
2.6 RESEARCH METHODOLOGY
Research Problem A pilot study was conducted to make the definition of the problem and an understanding of the environment. This helped to concentrate on important areas of the problem of various factors that affect consumer behavior.
Research Design A research design calls for developing the most efficient plan for gathering the needed information. The design of research study is based on the purpose of the study.
A research design is the specification of methods and procedures for acquiring the information needed. Its overall and operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedures.
TYPES OF RESEARCH 1. Exploratory Research 2. Descriptive Research 3. Casual Research
It is done to generate new ideas. Respondents should be given sufficient freedom to express themselves. Sometimes group of respondents is brought together and focuses group interview is held.
An exploratory study is generally based on the secondary data that are readily available. It does not have a formal and rigid design as to change focus or direction, depending on the availability of new ideas and relationships among variables. This study is in nature of preliminary investigation wherein the researcher himself is not sufficiently knowledgeable and is, therefore unable to frame detail research questions.
It is undertaken in many circumstances. When the researcher is interested in knowledge, the characteristics of certain groups such as age, sex, educational level, occupation or income, interested in knowing the proportion of in a given population who have behaved in particular manner, making the projections of certain things, or determining the relationships between two or more variables, descriptive study may be necessary. Descriptive data are commonly used as directed bases of marketing decisions. These studies are well structured.
Design in such studies that must be rigid and not flexible and must focus attention on the following. • • • • • What the study is about and why is it made? What techniques of gathering data will be adopted? How much material will be needed? Where can be the required data found? Processing and analyzing of data?
Reporting the findings?
Descriptive study has been followed with the help of qualitative research design. QUANTITATIVE RESEARCH DESIGN
If descriptive information is needed, then a quantitative study is likely to be needed. The choice of data collection methods for this study includes
Observation By watching people, observational researches gain a better understanding of what product symbolizes to a customer, and greater insight into the bond between people and products that is essence of brand loyalty.
Experimentation It is possible to test the relative sales appeal of many types of such variables such as package, prices, promotional offers or copy themes-through experiments designed to identify causes and effect.
Surveys If researchers wish to ask consumers about their purchase preferences they do if through survey, which are of three types - Personal interview - Telephone surveys - Mail surveys : through correspondence : through telephone : through posts
The research design adopted in this study is descriptive research in order to produce descriptive information such as awareness about various
attributes attached to Kotak. The survey has been conducted personal interview through structured questionnaire
Casual Research Design It aims to determine cause and affect relationship between variables. The aim is to understand why things happen, and thereby to control what happens. For example, find factors, which cause customers to buy that particular product.
2.7 SAMPLING METHOD
Sample Profile Simple Random Sampling method has been adopted for the study consisting of 100 samples. The respondents were selected from all the categories.
Sample Size The sample size was fixed at 100 respondents.
2.8 DATA ANALYSIS TOOL
Primary data collected through questionnaire was tabulated and analyzed using statistical techniques such as factor analysis; analysis of variance etc and using standard analytical tools such as mean score analysis, percentage analysis etc.
2.9 OVERVIEW OF THE REPORT
In Chapter 1 this report bring out the General Introduction and explains the theoretical background of the organization
Chapter 2 includes the Design of the study. It covers the objectives, scope, statement of the problem, Review of literature, operational definitions, Research Methodology, statement of hypothesis, sampling methods, Data Analysis tool, overview of the Report and the limitations.
Chapter 3 includes the profile of the organization, profile of the study unit, organizational chart and functional department of the organization. Chapter 4 includes the analysis. It covers the Analysis & Interpretation Chapter 5 includes the summary, which covers findings, contribution of the study, Suggestions, Conclusion, Questionnaire and Bibliography.
2.10 LIMITATIONS OF THE STUDY
1. A descriptive research was undertaken for the purpose of project. But descriptive research has its own limitations regarding the selection of sample size of sample unit. 2. Some of the data gathered from the mutual fund holders may not be reliable. 3. Time limit was also a constraint while conducting the study. So, the study does not give a picture of the whole market.
3.1 PROFILE OF THE ORGANISATION
Kotak Mahindra Mutual Fund (KMMF) has been established as a Trust under the Indian Trusts Acts, 1882. the trust Deed establishing KMMF and the Deed of Amendment have been registered under the Registration Act, 1908 by the office of the Sub-Registrar of Assurances at Mumbai. KMMF has been registered with SEBI vide registration number MF/038/98/1 dated 23rd June 1998. The sponsor company, Kotak Mahindra Finance Limited (KMFL), was converted into Kotak Mahindra Bank Limited (Kotak Bank) in March 2003 DER BEING GRANTED A BANKING LICENSE BY THE reserve Bank of India. KMFL promoted by Mr. Uday S Kotak, Mr. S.A.A.Pinto and Kotak & Co., was incorporated on November 21, 1985, under the name Kotak Capital Management Finance Limited. In early 1986, the promoters were joined by Late Mr.Harish Mahindra and Mr. Anand G Mahindra and the Company’s name was changed to Kotak Mahindra Finance Limited. Kotak & Co is a highly respected trading company of Mumbai, with international business. KMFL started with a capital base of Rs.30.88 lakhs. The sponsor and its subsidiaries/associates offer wide ranging financial services such as loans, lease and hire purchase, consumer finance, commercial vehicles and car finance, investment banking, stock broking, primary market distribution of equity and debt products and life insurance. The group has offices in over 50 Indian cities as also in Dubai, Mauritius, London and New York. Kotak Mahindra (UK) Ltd, an ultimate subsidiary of Kotak bank, is the first company owned from India to be registered with the securities and futures authority in London. Kotak Mahindra Capital Company Limited and Kotak Securities Limited are joint ventures between Kotak Bank and Goldman Sachs, the latter being one of he largest global investment banks. Kotak Mahindra Primus Limited and Ford edit Kotak Mahindra Limited are joint ventures between Kotak Bank and Ford Credit International, the global car-financing arm of Ford Motor Company. OM Kotak Mahindra Life Insurance
Company Limited is a joint venture between Kotak Bank and Old Mutual Plc based in the UK and with large presence in the South African insurance market. Some of the other subsidiaries of Kotak bank are Kotak Mahindra Securities Limited, Kotak Mahindra International Limited, Kotak Mahindra Private-Equity Trustee Limited, Kotak Mahindra Investments Limited, Kotak Mahindra Inc, and Kotak Forex Brokerage Limited. The Sponsor has been a consistently profitable and dividend paying company since inception. All group companies are professionally run companies, employing over 1800 professionals including CAs, MBAs and engineers.
3.2 PROFILE OF THE STUDY UNIT
Kotak Mahindra Asset Management Company Limited, a company registered under the Companies Act, 1956, has been appointed to act as the investment Manager of Kotak Mahindra Mutual Fund vide investment Management Agreement dated 20th May, 1996, as amended up to date. It is wholly owned subsidiary of the Sponsor, Kotak Mahindra Bank Limited. An approval has been granted to the Company by the Division of Funds, Investment Management Department of SEBI for undertaking Portfolio Management Service under the SEBI (Portfolio Manager) Regulations, 1993. However the company has not begun such activity.
Scheme details about Kotak Mahindra Asset Management Company 1. KOTAK 30
Objective: - The investment objective is to generate capital appreciation from a generally not more than 30 stock. portfolio of predominantly equity and equity related securities with investment in,
Open Ended Equity Growth Scheme
Entry load: - 2% for purchase amounts less than Rs 50 lakhs, Nil for purchase amounts greater than or equal to Rs 50 lakhs 2% for purchase amounts less than Rs 2 crores, Nil for purchase amounts greater than or equal to Rs 2 crores
Exit Load: -
Minimum investment: - Rs 5,000
2. KOTAK TECH
Objective: - The investment objective is to generate capital appreciation from a Predominantly equity and equity related securities issued by multinational co. Structure: - Open Ended Equity Growth Scheme. Entry load:-2% for purchase amounts less than Rs 50 lakhs, Nil for purchase amounts greater than or equal to Rs 50 lakhs. 2% for purchase amounts less than Rs 2 crores, Nil for purchase amounts greater than or equal to Rs 2 crores Exit Load: - NIL Minimum investment: - Rs 5,000
3. KOTAK MNC
Objective: - The investment objective is to generate capital appreciation from a portfolio of predominantly equity and equity related securities issued by multinational companies. Structure: Open Ended Equity Growth Scheme
Entry load:- 2% for purchase amounts less than Rs 50 lakhs , Nil for purchase amounts greater than or equal to Rs 50 lakhs 2% for purchase amounts less than Rs 2 crores, Nil for purchase amounts greater than or equal to Rs 2 crores Exit Load: - NIL Minimum investment: - Rs 5,000
4. KOTAK BALANCE
Objective: - The investment objective is to achieve growth by investing in Equity and equity related instruments, balanced with income generation by Investing in debt and money market instruments Structure: Open Ended Balanced Scheme.
Entry load: - 2% for purchase amounts less than Rs 50 lakhs, Nil for purchase amounts greater than or equal to Rs 50 lakhs 2% for purchase amounts less than Rs 2 crores, Nil for purchase amounts greater than or equal to Rs 2 crores Exit Load: - NIL Minimum investment: - Rs 5,000
5. KOTAK INCOME PLUS
Objective: Structure: Entry load: Exit load: To enhance returns over a portfolio of debt instruments with a moderate exposure in Equity & Equity related instruments Open Ended Income Scheme NIL 0.50% for redemptions within 6 months where investment amount is Less than Rs 25 lakhs. Nil for investment amount greater than or equal to 25 lakhs
Minimum Investment: - Rs 5,000
6. KOTAK GILT
Objective: To generate risk free returns through investments in sovereign Securities issued by the central government and / or a state government and / or reverse repose in such securities Open Ended Dedicated Gilt Scheme
Entry Load: - NIL Exit Load: NIL
Minimum Investment: - Savings & investment Plan; Rs 5,000 Serial Plans; Rs 10 lakhs
7. KOTAK BOND
Objective: To create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity Horizon & different kinds of issuers in the debt market Kotak Bond Short Term Plan To provide reasonable returns and high level of liquidity by investing In debt & money market instruments of different maturities, So as to spread the risk across different kinds of issuers in the debt market. Open Ended Debt Scheme
Entry load: - NIL Exit Load: Deposit Plan; 0.50% for exits within 6 months of investment else no Load Wholesale Plan & Short term plan; No exit load Wholesale Plan Annual Dividend Option: 0. 75% for exits Within three months of investment, else no exit load Wholesale plan Bonus Option; 0.25% for exits within 60 Days of investments Else no exit load
Minimum Investment: - Deposit Plan Rs 5,000 Wholesale Plan: Rs 1 lakh Short Term Plan: Rs5, 000 Institutional Plan; Rs 1 crore
8 KOTAK LIQUID
Objective; - To provide reasonable returns and high level of liquidity by Investing in debt and money market instruments of different Maturities so as to spread the risk across different kinds of Issuers in the debt markets Structure; - Open Ended Debt Scheme Entry load; - NIL Exit load: - NIL Minimum Investment: - Rs 5,000 Institutional plan: Rs 1 crore Institutional Premium Plan: Rs 20 crores
9 KOTAK FLOATER
Objective: - To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market Instruments and using appropriate derivatives Structure: Open Ended Debt Scheme
Entry Load: - NIL Exit Load: - NIL Minimum Investment: Rs 5,000.
10. KOTAK DYNAMIC INCOME
Objective: To maximize returns through an active management of a portfolio of debt and securities. Structure: Open Ended Debt Scheme
Entry Load: - NIL Exit Load: - NIL Minimum Investment: Rs 5,000
11. KOTAK GLOBAL INDIA
Objective: To generate capital appreciation from a diversified portfolio of predominantly equity and equity related securities issued by globally competitive Indian Companies.
Highlights Investment in a diversified equity portfolio of Globally Competitive Indian Companies. Tax advantage Recurring Investment Facility available during continuous offer. Redemption on all Working days.
3.3 ORGANIZATIONAL CHART
Fixed Income Division
Relationship Manger Customer Relationship Manger Equity Division
Assistant Manger Operations
2 The entire investment management process is depicted in the following chart
Understanding the Investor Profile
Monitoring & Performance Evaluation Investment Management Process
Throughout the process, open lines of communication are maintained to ensure that the portfolio remains structured to continually meet customer’s needs. As investor profiles are dynamic i.e. change as an investor progresses in his lifecycle; it becomes imperative to make suitable adjustments to the portfolio from time to time.
4.1ANALYSIS AND INTERPRETATION
TABLE NO.1 – TO SEE THE RESPONDENT IS AN INCOME TAX ASSESSEE. Sl. No. 1 2 Attributes Yes No Total No. of respondents 76 24 100 Percentage 76 24 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 76% of the respondents say that they are income tax assesses and the rest 24% say that they are not. This is illustrated in the following graph.
GRAPH NO.1 – TO SEE THE RESPONDENT IS AN INCOME TAX ASSESSEE.
80 70 60 50 40 30 20 10 0
Source: - Table No: 1
TABLE NO 2. TO SEE WHETHER REPONDENTS INVEST FOR TAX EXEMPTION OR TAX SAVINGS
Sl. No. 1 2
Attributes Yes No Total
No. of respondents 70 30 100
Percentage 70 30 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 70% of the respondents say that they invest for tax exemption and the rest 30% say that they do not. This is illustrated in the following graph.
GRAPH NO 2. TO SEE WHETHER REPONDENTS INVEST FOR TAX EXEMPTION OR TAX SAVINGS
80 70 60 Percentage 50 40 30 20 10 0 Yes Attributes
Source: Table No: 2
TABLE NO 3. INVESTMENT PREFERENCE OF RESPONDENTS
Sl. No. 1 2 3 4 5
Attributes Fixed Deposits Real Estate Insurance Mutual Fund Gold Total
No. of respondents 33 21 27 9 9 100
Percentage 33 21 27 9 9 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 33% of the respondents invest in fixed deposits, 21% invest in Real Estate, 27% in Insurance, 9% in Mutual Fund and the rest 9% say that they invest in gold. This is illustrated in the following graph.
GRAPH NO 3. INVESTMENT PREFERENCE OF RESPONDENTS
35 30 25 Percentage 20 15 10 5 0
33 27 21
In su ra nc e M ut ua lF un d
st at e
R ea lE
Source: Table No: 3
TABLE NO 4. REASONS OF INVESTMENT PREFERENCE OF RESPONDENTS
G ol d
Sl. No. 1 2 3 4 5
Attributes Less Risk Good Returns Liquidity Assured Returns Other Reasons Total
No. of respondents 28 21 12 36 3 100
Percentage 28 21 12 36 3 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 28% of the respondents prefer investment due to less risk, 21% due to good returns, 12% due to liquidity, 36% due to assured returns and the rest 3% do it due to other reasons. This is illustrated in the following graph.
GRAPH NO 4. REASONS OF INVESTMENT PREFERENCE OF RESPONDENTS
40 35 30 Percentage 25 20 15 10 5 0
Less Risk Good Returns Liquidity
Assured Returns Other Reasons
Source: Table No: 4
TABLE NO 5. CURRENT INVESTMENT PORTFOLIO OF RESPONDENTS Sl. No. 1 2 3 Attributes Govt securities and bonds Mutual funds & company FD’s Equity Shares Total No. of respondents 61 18 21 100 Percentage 61 18 21 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 61% of the respondents invest in Govt securities and bonds, 18% in Mutual funds and company fixed deposits and the rest 21% in equity shares. This is illustrated in the following graph:
GRAPH NO 5. CURRENT INVESTMENT PORTFOLIO OF RESPONDENTS
70 60 Percentage 50 40 30 20 10 0
Govt Mutual funds Equity Shares securities and & company bonds FD’s Attributes
Source: Table No: 5
TABLE NO 6. NATURE OF INVESTMENT THAT THE RESPONDENTS LIKE Sl. No. 1 2 3 Attributes Steadily At average rate Fast Total No. of respondents 61 27 12 100 Percentage 61 27 12 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 61% of the respondents like their investment to grow steadily, 27% in an average rate and the rest 12% in a fast rate. This is illustrated in the following graph.
GRAPH NO 6. NATURE OF INVESTMENT THAT THE RESPONDENTS LIKE
70 61 60 50 Percentage 40 30 20 12 10 0 Steadily At average rate Attributes
Source: Table No:6
TABLE NO 7. DURATION OF INVESTMENT OF RESPONDENTS
Sl. No. 1 2 3
Attributes Upto 1 year 1 - 5 years 5 - 10 years and above Total
No. of respondents 6 39 55 100
Percentage 6 39 55 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 6% of the respondents go for the investment whose duration is upto 1 year, 39% for 1 to 5 years and the rest 5-10 years and above. This is illustrated in the following graph.
GRAPH NO 7. DURATION OF INVESTMENT OF RESPONDENTS
0 Upto 1 year 1 - 5 years Attribute Source: Table No: 7 5 - 10 years and above
TABLE NO 8.. PERCENTAGE OF INCOME THAT THE RESPONDENTS INVEST
Sl. No. 1 2 3
Attributes 5% 5% - 10% More than 10% Total
No. of respondents 24 37 39 100
Percentage 24 37 39 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 24% of the respondents invest 5% of their total incomes, 37% invest 5-10% and the rest 39% invest more than 10%. This is illustrated in the following graph.
GRAPH NO 8.. PERCENTAGE OF INCOME THAT THE RESPONDENTS INVEST
45 40 35 30 Percentage 25 20 15 10 5 0 5% 5% - 10% Attribute Source: Table No: 8 More than 10% 24 39 37
TABLE NO 9. TO SEE WHETHER THE RESPONDENT IS AN INVESTOR OF MUTUAL FUND Sl. No. 1 Attributes Yes No. of respondents 27 Percentage 27
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, only 27% of the respondents are investors of mutual funds and the rest 73% are not. This is illustrated in the following graph.
GRAPH NO 9. TO SEE WHETHER THE RESPONDENT IS AN INVESTOR OF MUTUAL FUND
80 73 70 60 50 40 30 20 10 0 Yes Attribute No 27
Source: Table No.9
TABLE NO 10. REASONS FOR NOT INVESTING IN MUTUAL FUNDS
Sl. No. 1 2 3
Attributes Awareness Risky Returns not assured Total
No. of respondents 15 58 27 100
Percentage 15 58 27 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 15% of the respondents do not invest in mutual funds because of lack of awareness, 58% as it is risky and the rest 27% as the returns are not assured. This is illustrated in the following graph.
GRAPH NO 10. REASONS FOR NOT INVESTING IN MUTUAL FUNDS
70 60 50 Percentage 40 30 20 10 0 Awareness Risky Attribute
Source: Table No.10
Returns not assured
TABLE NO 11. REASONS FOR INVESTING IN MUTUAL FUNDS Sl. No. 1 2 Attributes Less Risky Liquidity No. of respondents 21 30 Percentage 21 30
Professional Mgmt Fast Appreciation Total
24 25 100
24 25 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 21% of the respondents feel that investing in mutual funds are less risky and hence they invest, 30% invest due to liquidity, 24% due to Professional management and the rest 25% due to fast appreciation. This is illustrated in the following graph.
GRAPH NO 11. REASONS FOR INVESTING IN MUTUAL FUNDS
25 21 Percentage 20
0 Less Risky Liquidity Professional Fast Mgmt Appreciation
Attribute Source: Table No.11
TABLE NO 12. KIND OF MUTUAL FUND THAT THE RESPONDENTS PREFER
Sl. No. 1 2
Attributes Open-ended Closed-ended Total
No. of respondents 57 43 100
Percentage 57 43 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 57% of the respondents prefer open-ended mutual funds and the rest 43% closed-ended ones. This is illustrated in the following graph.
GRAPH NO 12. KIND OF MUTUAL FUND THAT THE RESPONDENTS PREFER
50 43 40 Percentage
0 Open-ended Closed-ended Attributes Source: Table No.12
TABLE NO 13. TYPE OF SCHEME THE RESPONDENTS PREFER
Sl. No. 1 2 3
Attributes Equity Debit Balance Total
No. of respondents 49 42 9 100
Percentage 49 42 9 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 49% of the respondents prefer equity type of scheme, 42% prefer debit type of scheme and the rest 9% due to balance type of scheme. This is illustrated in the following graph.
GRAPH NO 13. TYPE OF SCHEME THE RESPONDENTS PREFER
42 40 Percentage
0 Equity Debit Attributes Source: Table No.!3 Balance
TABLE NO 14. THE PREFERENCE AMONG DIFFERENT MUTUAL FUNDS Sl. No. 1 2 3 4 5 Attributes UTI Kotak HDFC Templeton LIC Total No. of respondents 15 15 30 19 21 100 Percentage 15 15 30 19 21 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 15% of the respondents prefer UTI mutual funds, 15% prefer Kotak, 30% prefer HDFC, 19% Templeton and the rest 21% prefer LIC. This is illustrated in the following graph.
GRAPH NO 14. THE PREFERENCE AMONG DIFFERENT MUTUAL FUNDS
35 30 Percentage 25 20 15 10 5 0
Ko ta k
19 15 15
et on Te m pl
Source: Table No.14
TABLE NO 15. IMMEDIATE REACTION IN CASE OF DROP DOWN OF STOCK MARKET Sl. No. Attributes No. of respondents Percentage
1 2 3
Would withdraw the investment Would wait and watch Would invest more in it Total
39 55 6 100
39 55 6 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 39% of the respondents would withdraw the investment, 55% would wait and watch the show and the the rest 6% say that they would invest more. This is illustrated in the following graph.
GRAPH NO 15. IMMEDIATE REACTION IN CASE OF DROP DOWN OF STOCK MARKET
60 55 50
0 Would withdraw the investment Would wait and watch Attributes Would invest more in it
Source: Table No.15
TABLE NO 16. TO SEE WHETHER THE RESPONDENT HAS EVER LOST MONEY IN MUTUAL FUND Sl. No. 1 2 Attributes Yes No Total No. of respondents 36 64 100 Percentage 36 64 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 36% of the respondents have lost money in mutual fund and the rest 64% haven’t. This is illustrated in the following graph.
GRAPH NO 16. TO SEE WHETHER THE RESPONDENT HAS EVER LOST MONEY IN MUTUAL FUND
70 64 60
0 Yes Attributes Source: Table No.16
TABLE NO 17. REASONS FOR LOOSING MONEY IN MUTUAL FUNDS Sl. No. 1 2 3 4 Attributes Not aware Misguidance Entry at higher level Poor portfolio mgmt Total No. of respondents 12 37 24 27 100 Percentage 12 37 24 27 100
Source: Primary Data Interpretation: It is clear from the table that out of 100 respondents, 12% of the respondents are not aware of the reasons for loosing money in mutual funds, 37% loose it because of misguidance, 24% because of entry at higher level the rest 27% say that it is because of poor portfolio management. This is illustrated in the following graph.
GRAPH NO 17. REASONS FOR LOOSING MONEY IN MUTUAL FUNDS
40 35 30 Percentage 25 20 15 10 5 0
Entry at higher level
Poor portfolio mgmt
Source: Table No.17
TABLE NO 18. VIEWS ON KOTAK MF AND ITS SCHEMES Sl. No. 1 2 3 Attributes Good Moderate Not aware Total No. of respondents 15 36 49 100 Percentage 15 36 49 100
Source: Primary Data Interpretation: It is clear from the tables that out of 100 respondents, 15% of the respondents’ view that Kotak MF is good, and 36% feel that it is moderate and the rest 49% say that they are not aware. This is illustrated in the following graph.
GRAPH NO 18. VIEWS ON KOTAK MF AND ITS SCHEMES
40 36 Percentage
0 Good Moderate Attributes Not aware
Source: Table No.18
1. Majority of the respondents are income tax assesses.
2. Most of the respondents prefer to invest in Fixed Deposits and Insurance because of less risk and assured returns.
3. The investment portfolio of majority of the respondents is in govt securities and bonds.
4. Though mutual funds exist in the market, the people who tend to invest in it are very low compared to other investments. The reason behind is the high risk factor involved with Mutual Funds.
5. Majority of the people prefer open-ended equity scheme.
6. Many people have lost money in mutual funds.
5.2 CONTRIBUTION OF THE STUDY
From this study the financial institutions/Banks can improve in some of the following fields of services and communications: -
1. Help the financial institutions (KM) to provide goods and services in private sector and convenience factor offered by the public sector.
2. Help local banks/small institutions to have big market share (i.e. banks or institutions which are mot easily accessible gets more preference even if it is a local bank with out much brand image.)
3. Helps the bank and institutions to provide E-banking facility more effective and accurate towards investors or customers.
4. Help KM to find out, in Kotak Mahindra product perceived as being value for money.
5. Help KM to find out, is KM users are considering KM as one stop shop most of the time.
1. Proper care should be taken to give the correct guidance to the investors so that they will invest more.
2. Good campaigns can be arranged so that people will know more about Mutual Funds and will tend to invest in it.
3. Nice advertisements can be entertained so that people will get interest in Mutual Funds.
4. Kotak can come up with good, attractive schemes for its investors.
The study “Investment Options for Investors” was carried out on behalf of Mutual Funds of Kotak Mahindra Asset Management Company Ltd. The data was collected from various sources and also through the tools like questionnaires and relevant interactions with concerned persons.
The needs were identified in the form of findings and suitable suggestions were put forth in the form of recommendations to the concerned authorities for further discussions. A few recommendations have been considered for implementation.
Albert J Fredman, How Mutual Funds Work, Eastern Economy Edition, Prentice Hall of India Pvt Ltd, New Delhi Week 15/01/2005 (Regarding Mutual Fund Investment) Financial Chartered Analyst 01/09/2006
Please put tick on your answers for the following questions 1. Are you an Income Tax Assesse? Yes No No
2. Are you investing for tax exemption or tax savings? Yes No 3. What kind of invest options you prefer? Fixed Deposit Real Estate Insurance Mutual Fund Gold 4. Why you prefer the above option? Less Risk Good Returns Liquidity Assured Returns Other Reasons 5. Your current investment portfolio includes majority of Govt.securities and Bonds Mutual funds & company fixed deposits Equity shares
6. You would like your investment to grow Steadily At average rate Fast 7. How long have you been invested? Up to one year 1—5 year 5—10 years 8. What percentage of your income do you invest? Up to 5 % 5%--- 10% More than 10% 9. Are you an investor in mutual fund? Yes No 10. If answer is No, why you are not investing in mutual fund? Awareness Risky Returns not assured 11. If answer is Yes, why do you prefer mutual fund? Less risky Liquidity Professional mgt. Fast appreciation 12. What kind of mutual fund you prefer? Open- ended Closed-ended
13. What type of scheme do you prefer? Equity Debt Balance 14. If you are an investor of MF, which MF you have preferred always? UTI Kotak HDFC Templeton LIC 15. Imagine that, the stock market drops immediately after you invest in Equity scheme? I would withdraw my money I would wait & watch I would invest more in it. 16. Have you any time lost money by investing in MF? Yes No 17. Reason for losing? Not aware of the details of the portfolio investment Misguidance Entry at higher level Poor portfolio mgt. 18. Your views on Kotak mutual fund and its scheme? Good Moderate Not aware Thank you very much for your valuable time & co-operation.
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