PROJECT REPORT

ON

INVESTORS PERCEPTION TOWARDS MUTUAL FUNDS

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF
DEGREE IN BACHELOR OF BUSINESS ADMINISTRATION ( B.B.A)

SUBMITTED BY:BY NAME: - ANKITA SHARMA Reg. No :- 2007.GHM /A.4 Session:-2007-2010 Director:-DR A.S. DUA GURU HARGOBIND INSTITUTE OF MANAGEMENT AND IT (DELHI) GURU NANAK DEV UNIVERSITY,
AMRITSAR

ACKNOWLEDGEMENT

I express my deepest gratitude to the people without whose guidance and support this work would not have been possible. I am highly thankful to my project guide MR. AJAY PRADHAN under whose guidance and kind support I could complete my training. It is of no use if I do not pay my sincere thanks to all faculty members for their cooperation to complete my project in time.

At last I would like to thank my internal project guide.

MRS. AMANDEEP KAUR (Project guide)

2

INDEX
o Acknowledgement o Certificate Chapter-1 o Company profile o Profile of the mutual fund industry Evolution of mutual fund Constituents of mutual fund Investment strategies of the mutual fund Important milestones in the mutual fund industry in India Names of mutual funds registered by SEBI Chapter-2 o Introduction of the mutual funds Meaning of mutual fund Different investment product Comparison of investment product Advantages of mutual fund Disadvantages of mutual fund Types of mutual fund Top 5 mutual funds Chapter-3 o Research methodology Objective of the study Scope of the study Chapter-4 o Analysis and suggestions Analysis Suggestions Limitations of the study Conclusion
3

 Questionnaire bibliography

CHAPTER - 1 COMPANY PROFILE AND INDUSTRY PROFILE

********

VISION
TO BE WELL DIVERSIFIED FINANCIAL SHOP FOR WEALTH CREATOIN AND BEING AN IDEAL SERVICE PROVIDER IN OUR DOMAIN OF BUSINESS

CORPORATE PHILOSOPHY
BECOMING

AN EXPERT AT ANYTHING TAKES A STRONG WILL, UNYIELDING DETERMINATION AND PURE ABILITY

MISSION
TO ALWAYS EARN THE RIGHT TO BE OUR CLIENTS FIRST CHOICE THROUGH PERSONAL AND SOCIAL WEALTH MAXIMIZATOIN

Firm overview
Incorporated in the year 1994 by master trust limited. Very strong presence in northern India. 4500+trading clients, 70000+depository accounts with a 500+ branches including sub broker /franchisee network. SEBI registered portfolio manager. Full fledged money changer. Group companies member of BSE ,NSE, NSDL ,CDSL , NCDEX AND MCX

Online presence through www.mastermarts.com providing state of the art e-broking services.
6

Network and reach

Customers can access over the phone, the internet, at their branches or via relationship managers. Optimum use of technology allows them to provide seamless service across channels. Wide reach across India which they plan to increase further.

State 0wn Franchisee/sub City presence offices broker presence 18 20 450+ 120+

Master trust group companies

Master trust limited Master capital services limited MTL share and stock brokers limited Master commodity services limited Master insurance brokers Master portfolio services limited
8

PRODUCTS
o STOCK BROKING o COMMODITY BROKING o DEPOSITORY SERVICES o INTERNET TRADING o FUND MOBILIZATION o FOREX o INSURANCE BROKING o PORTFOLIO MANAGEMENT SERVICES o RESEARCH AND ADVISORY o MERCHANT BANKING
9

Stock broking Their group facilitates trading in equities and derivatives on national stock exchange of India Ltd. (NSE) and Bombay stock exchange Ltd. (BSE) through its group company ; Master Capital Services Ltd., corporate member of NSE and BSE.

Commodity broking Their group company namely Master Commodity Services ltd. Is corporate member of national commodities and derivatives exchange of India ltd. (NCDEX) and multi commodity exchange of India ltd. (MCX)?

Depository services They are depository participants with National securities depository Ltd. (NSDL) and Central depository services Ltd. (CDSL).

10

Internet trading They are providing platform to their customers to trade online through internet from any location with user friendly technology. They thrive to take big leap forward through internet based services by widening their reach.

Fund mobilization They are one of the leading mobilizer of funds for all the issuing companies for IPOs, FPOs, Mutual funds, bonds and tax saving instrument.

Forex - As Reserve Bank of India (RBI) approved full-fledged money changer; they are providing hassle free services for sale / purchase of foreign currency, traveler cheques to individuals, corporate customers, NRIs etc. from their office and their franchisees.
11

Insurance broking They are acting as brokers to all leading companies for providing Life and General insurance and helping their individuals and corporate customers for optimum risk coverage.

Portfolio management services They are managing wealth of their clients as a SEBI registered Portfolio Manager on the basis of discretionary portfolio management model. They take in to account the risk profile and investment objectives of their clients before designing portfolio for him.

12

Research and advisory It is another tool by which their group aspires to create more wealth for their customers. A dedicated research team is in place to advice customers on all financial products. Research team strives continuously to work on new ideas, strategies and innovative products.

Merchant banking They provide consultancy to their corporate customers as category-I merchant bankers for public/rights issues and manager under take over code and merger and acquisitions. They also provide consultancy services for project appraisals, loan syndication and financial restructuring.

13

PROFILE OF MUTUAL FUND INDUSTRY

EVOLUTION OF FUNDS

Mutual funds came to existence in England during 19th century.Then eventually the fund went public in 1928. The formation of UTI (unit trust of India) marked the evolution of Indian Mutual fund industry in the year 1963. The primary objective at that time was to attract the small investors and it was possible only through the collective efforts of the Government of India and the Reserve Bank of India.

14

Phase 1- (1964-87): Growth of Unit Trust of India The first scheme launched by UTI was Unit Scheme 1964. It was the first open-ended scheme in the country.

Phase 2 (1987-93): Entry of Public Sector Funds State bank of India established the first non-UTI mutual fund-SBI mutual fund in November 1987. At that time the Mutual funds set up by public sector Banks, life insurance Corporation of India

15

and General Insurance Corporation of India entered the market.

Phase 3 (1993-96): Emergence of Private Funds Private and foreign fund houses were permitted to set up Mutual funds in India. Kothari Pioneer was the first private sector fund.

Phase 4 1996-99: Growth and SEBI Regulations A set of regulations for all mutual funds operating in India was introduced with SEBI (Mutual Fund) regulations, 1996. The Industry now functions under the SEBI (mutual fund regulations 1996.
16

Phase 5 (1999-2004): Emergence of a large and uniform industry In February 2003, UTI Act was repealed, UTI was split into two and UTI no longer had a special legal status and it also adopted the same structure as any other fund in India. UTI Mutual Fund is the present name of the erstwhile Unit Trust of India.

Phase 6 (2004 onwards): Period of Consolidation & Growth In this period the industry has witnessed a spate of mergers and takeovers. Also more and more new international and private sector players are
17

entering the fray. This period also saw the growth of the industry.

Constituents of mutual fund

Sponsor Promoter of the mutual fund Creates a trust under Indian trust act, 1882 and registers it with office of public trustee Appoints board of trustees/trustee company Creates AMC under Indian company act,1956 Fulfills necessary formalities and applies to SEBI for registration of the trust as a mutual fund. Trustee Appointed by sponsor with SEBI approved Have registered ownership of investments Formed either as board of trustees or trustee company
18

 Power to appoint all other constituents Appoint AMC through the investment management agreement and delete powers.

AMC Required to be registered with SEBI Appointed as investment manager of the mutual fund Appointed by trustees via an investment manager agree Net worth of atleast Rs.10 crore at all times Atleast half of the board members must be independent Trust Mutual fund in India constituted as a public trust under Indian trust act, 1882 The trust is registered with the office of public trustee The trust or the fund has no independent legal capacity itself

19

 Treated as a separate entity and a pass through vehicle Has its own auditors, separate from the AMC.

Investment strategies of mutual funds

SIP (systematic investment plan) This is a fixed sum 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 NAV is high but more units when NAV is low. STP (systematic transfer plan) - Under this strategy 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 fund.

20

SWP (systematic withdrawal plan) If someone wants to withdraw voluntarily from a mutual fund then he can withdraw a fixed amount each month.

Important Milestones in the MF history in India

1963: Unit Trust of India (special privileges assured return schemes, guarantees, loans) 1987: 1993: Public Sector Mutual Private Sector Mutual

1995: AMFI was set-up (internal checks & balances, representation to the
21

government and consumer education publish a book titled Making Mutual Funds Work for you an Investors Guide)

1996:

SEBI (Mutual fund) Regulations

1999: Dividend income made tax free in the hands of investor

2003: Unit Trust of India Act repealed (level playing field, Unit trust of India split, UTIMF created).

22

2004-onwards: Consolidation & Growth (AUM at the end of FY 2004-05 was approximate Rs.153, 000 crores).

Names of Mutual Funds registered by SEBI

ALIANCE CAPITAL MUTUAL FUND AIG GLOBAL MUTUAL FUND INVESTMENT GROUP

BENCHMARK MUTUAL FUND BARODA PIONEER MUTUAL FUND

23

 BIRLA MUTUAL FUND BHARTI AXA MUTUAL FUND CANARA ROBECO MUTUAL FUND

DBS CHOLA MUTUAL FUND DEUTSCHE MUTUAL FUND DPS BLACKROCK MUTUAL FUND EDELWEISS MUTUAL FUND ESCORTS MUTUAL FUND

24

 FORTIS MUTUAL FUND FRANKLIN TEMPLETON MUTUAL FUND FIDELITY MUTUAL FUND

GOLDMAN SACHS MUTUAL FUND HDFC MUTUAL FUND HSBC MUTUAL FUND ICICI SECURITIES FUND ING MUTUAL FUND

25

 ICICI PRUDENTIAL MUTUAL FUND IDFC MUTUAL FUND JM FINANCIAL MUTUAL FUND

JP MORGAN MUTUAL FUND

KOTAK MAHINDRA MUTUAL FUND

LIC MUTUAL FUND

MORGAN STANLEY MUTUAL FUND

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 PRINCIPAL MUTUAL FUND

RELIGARE MUTUAL FUND

SBI MUTUAL FUND

CHAPTER - 2

INTRODUCTION OF
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MUTUAL FUNDS *****************

MEANING OF MUTUAL FUND

Mutual fund was established during 19thcentuary and it started with the formation of Unit Trust of India. UTI functioned under the regulatory and administrative control of the Reserve Bank of India.

28

A Mutual fund is nothing more than a collection of stocks and /or bonds. We can think of a mutual fund as a company that brings together a group of people and invest their money in stocks, bonds and other securities. Each investor owns shares, which represent a portion of the holdings of the fund.

We can make money from a mutual fund in three different ways

Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all of the income it receives over the year to fund owners in the form of a distribution.

29

 If the fund sells securities that have increased in price. The fund has a capital gain. Most funds also pass on these gains to investors in a distribution. If fund holdings increase in price but are not sold by the Fund Manager, the funds shares increase in price. We can sell our mutual fund shares for a profit. Funds also give us the choice that whether we want to receive a check for distribution or we want to reinvest the earnings and get more shares.

Different investment products

Gold and real estate These are the physical assets available for investing. Gold is seen as a hedge against inflation or a means of security in bad times.

30

Capital market securities These are the securities which include equity / preference shares, bonds / debentures issued by companies or financial institutions.

Money market instruments It includes commercial paper or certificate of deposits. Individual investors can buy capital market instruments but have no direct access to money market instruments.

Company fixed deposits it is another avenue available but is unsecured and generally carry high rate of interest.

Public provident fund PPF is a government obligation which is risk free and carries 8 % rate of interest p.a. compounded annually
31

but only one account per individual is allowed.

Life insurance It is available from Life Insurance Company and many private players but most policies require a fixed premium to be paid by the investor.

Comparison of investment products

Equity FI bonds Corporate debentures Company FDs

32

 Bank deposits PPF Life insurance (traditional) Life insurance (ULIPs) Gold Real estate Mutual fund

Investors perspective
Investment Objective Equity FI Bonds Corp Debentures Company FDs Capital Appreciation Income Income Income Risk Tolerance Investment Horizon High Low HighModerate-Low HighModerate-Low Long Term Medium-Long Term Medium-Long Term Medium

33

Bank Deposits PPF Life Insurance (Traditional) Life Insurance (ULIPs)

Income Income Risk Cover Risk Cover, Capital Growth, Income

Low Low Low HighModerate-Low

Short-MediumLong Term Long Term Long Term Medium-Long Term

Gold Real Estate Mutual Funds

Inflation hedge Low Capital Growth, Income Capital Growth, Income Low-Moderate HighModerate-Low

Medium-Long Term Long Term Short-MediumLong Term

Advantages

of Mutual

Funds

Professional Management - The primary advantage of funds (at least theoretically) is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolios. A mutual fund is a relatively inexpensive way for a small investor to get a fulltime manager to make and monitor investments.
34

 Diversification - By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you (think about Enron). Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn't be possible for an investor to build this kind of a portfolio with a small amount of money. Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions. Liquidity - Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time.
35

 Simplicity - Buying a mutual fund is easy! Pretty well any bank has its own line of mutual funds, and the minimum investment is small. Most companies also have automatic purchase plans whereby as little as $100 can be invested on a monthly basis.

Disadvantages of Mutual Funds

Professional Management - Did you notice how we qualified the advantage of professional management with the word "theoretically"? Many investors debate whether or not the socalled professionals are any better than you or I at picking stocks. Management is by no means
36

infallible, and, even if the fund loses money, the manager still takes his/her cut. We'll talk about this in detail in a later section.

Costs - Mutual funds don't exist solely to make your life easier - all funds are in it for a profit. The mutual fund industry is masterful at burying costs under layers of jargon. These costs are so complicated that in this tutorial we have devoted an entire section to the subject.

Dilution - It's possible to have too much diversification. Because funds have small holdings in so many different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

37

 Taxes - When making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gains tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability.

Types of Funds
By structure Open-ended funds -

An open-ended fund is one that sells and repurchases units at all times. Investor buys into the scheme and redeems from the fund house
38

directly. Subscription at all times is not mandatory. Redemption must be permitted within certain obvious conditions. The corpus changes everyday. Open ended funds are subject to higher redemption pressure. The scheme calculates its NAV on a daily basis. Close ended funds

A close-ended fund Close Ended Funds have a fixed tenure of say 1/2/3/4/5 etc years. After the closure of its NFO, no new units of M.F are available for sale from the fund house directly. Exit option is available to investors in two ways: a) exit window or b) listing on a stock Exchange Units are repurchased by the fund itself through intermittent periodic exit windows. The fund corpus in such a case can only reduce. The units of listed funds are traded usually at discount to its NAV. The Unit capital of such a fund remains constant, thus there is no redemption pressure.

By investment objectives
39

Money market fund

The money market consists of short-term debt instruments, mostly Treasury bill this is a safe place to park your money. You won't get great returns, but you won't have to worry about losing your principal. A typical return is twice the amount you would earn in a regular checking/savings account and a little less than the average certificate of deposit (CD).

Bond/Income

Funds

Income funds are named appropriately: their purpose is to provide current income on a steady basis. When referring to mutual funds, the terms "fixed-income," "bond," and "income" are synonymous. These terms denote funds that invest primarily in government and corporate debt. While fund holdings may appreciate in value, the primary objective of these funds is to provide a steady cash flow to investors. As such, the audience

40

for these funds consists of conservative investors and retirees. Bond funds are likely to pay higher returns than certificates of deposit and money market investments, but bond funds aren't without risk. Because there are many different types of bonds, bond funds can vary dramatically depending on where they invest. For example, a fund specializing in high-yield junk bonds is much more risky than a fund that invests in government securities. Furthermore, nearly all bond funds are subject to interest rate risk, which means that if rates go up the value of the fund goes down.

Balanced

Funds

The objective of these funds is to provide a balanced mixture of safety, income and capital appreciation. The strategy of balanced funds is to invest in a combination of fixed income and equities. A typical balanced fund might have a weighting of 60% equity and 40% fixed income. The weighting might also be restricted to a specified maximum or minimum for each asset class.
41

A similar type of fund is known as an asset allocation fund. Objectives are similar to those of a balanced fund, but these kinds of funds typically do not have to hold a specified percentage of any asset class. The portfolio manager is therefore given freedom to switch the ratio of asset classes as the economy moves through the business cycle.

Equity funds

Funds that invest in stocks represent the largest category of mutual funds. Generally, the investment objective of this class of funds is long-term capital growth with some income. There are, however, many different types of equity funds because there are many different
42

types of equities.

Top 5 mutual funds period (last 5 years)

RANK SCHEME NAME LAST 5 YEARS%

1. 2.

SBI Magnum Tax Gain Scheme 93 SBI Magnum Sector Umbrella Contra Fund

34.9153

34.0515

43

3 4. 5.

Reliance

Growth

31.1493 29.0848 27.7543

Sundaram BNP Paribas Tax saver Sundaram BNP Paribas Select

From the above data we can conclude that a mutual fund is the best investment product as it is a safe investment in comparison to others. Any person can invest in mutual funds even if he belongs to a middle class. Investing in equity may involve some risk but in debt negligible risk.

CHAPTER - 3

44

RESEARCH METHODOLOGY *************

Research methodology

Research methodology can be defined as a systematic process of collecting and analyzing the information and then arriving at the conclusion. Information is needed by all the organizations of their internal and external parties as it helps in policy formation and to get the feedback their ongoing plans.

45

Data can be collected from different sources. Before deciding about the sources of data one has to be clear about the purpose of his/her enquiry.

This report is based on primary as well as secondary data; however primary data is given more importance. It helps in collecting the vital information that is required by the top management to assist them in decision in both day to- day decisions and critical ones.

Different sources of collecting the data are as follows

Internal data External data

46

In which external data can be classified as Primary data Secondary data Sample size of the study was 100 units.

Internal data Some organizations and government departments have their regular function of generating the data as a source of internal data. Internal data can be available in the organizations about production, sales, gross profit, wages, salary etc. such type of data is always available in the organizations in the form
47

of manuals, regular reports etc. government departments like railways, roadways, social welfare etc. do generate a lot of internal information which helps them in the process of decision making.

External data Information that has been collected from the external sources or outside the organizations can be called as external data. External data sources are categorized as primary data and secondary data.

Primary data Primary data are obtained by a study specifically designed 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 some individuals, institutions and research bodies.
48

For example data obtained in a population census by the office of the registrar general and census commissioner, ministry of home affairs, are primary data. Secondary data Data which are not originally collected but rather obtained from published or unpublished sources are known as secondary data. For example for the office of the registrar general and census commissioner the census data are primary whereas for all others, who use such data, they are secondary. If the secondary data are available they are much quicker to obtain than primary data. Primary data sources Primary data may be obtained by applying any one of the following methods Direct personal interviews,
49

 Indirect oral interviews , Information from correspondents, Mailed questionnaire method, and Schedules sent through enumerators. Direct personal interviews Under this method of collecting data, there is a face-to-face contact with the persons from whom the information is to be obtained. The interviewer asks them questions pertaining to the survey and collects the desired information.

Indirect oral interviews Under this method of collecting data, the investigator contacts third parties called witnesses capable of supplying the necessary information. The method is generally adopted in those cases where the information to be
50

obtained is of a complex nature and the informants are not inclined to respond if approached directly.

Information from correspondents Under this method, the investigator appoints local agents or correspondents in different places to collect information. These correspondents collect and transmit the information to the central office where the data are processed.

Mailed questionnaire method Under this method, a list of questions pertaining to the survey is prepared and sent to the various informants by post. The questionnaire contains questions and provides space for answers.
51

Schedules sent through enumerators Another method of collecting information is that of sending schedules through the enumerators or interviewers. The enumerators contact the informants, get replies to the questions contained in a schedule and fill them in their own handwriting in the questionnaire form. Secondary data sources The sources of secondary data can broadly be classified under two heads Published sources Unpublished sources Published sources The various sources of published data are 1.Reports and official publications of international bodies, central and state
52

governments and reports of the committees and commissions appointed by government. 2.Semi official publications of various local bodies such as municipal corporations and district boards. 3.Publication of autonomous and private institutes such as trade and professional bodies, financial and economic journals annual reports of joint stock companies and corporations. Unpublished sources There are various sources of unpublished data such as records maintained by various government and private offices, studies made by research institutions, scholars etc.

Objectives of the study

To know the investors perspective towards mutual funds.

53

To find out how much the investors are aware about the schemes of the mutual funds.

To conduct a comparison of mutual funds with other investment products/

To know why one has invested or not invested in mutual funds.

To find out what should we do to boost mutual fund industry?

Scope of the study

54

A big boon has been witnessed in mutual fund industry in recent times. Large number new investors have entered the market and they try to gain market share in this rapidly improving market. I have prepared my project report on investors perception towards mutual fund by taking the view point of different people. The study will help us to know that how much people are aware of the mutual fund. The study will also help us to know the preferences of the customers, mode of investment, option for getting return and so on they prefer. This project report may help company to make further planning and strategy.

55

Chapter 4 Analysis And Suggestions ***********

Analysis and suggestions

56

Q1. Are you aware of the mutual funds?

AWARENESS ABOUT MUTUAL FUNDS

20% YES NO 80%

Analysis: 80% people are not aware. 20% people are aware. Q2. From which source you came to know about mutual funds?

57

NO OF RESPONDENTS

70 60 50 40 30 20 10 0
ad ve rti se m

62

18

25

30

ba nk

pe er

SOURCE OF INFORMATION

Analysis: 18% people from advertisement. 25% people from peer group. 30% people from banks. 62% people from financial advisors.

Q3. Have you ever invested in mutual funds?

fin an ci al

ad vi so rs

en t

gr ou p

58

INVESTMENTS IN MUTUAL FUND

80% 60% 40% 20% 0% YES Series1 NO 35% 65%

Analysis: 35% people have invested in mutual funds. 65% people have not invested in mutual funds.

Q4. What is the reason behind not investing in mutual funds?

59

reasons of not investing in mutual funds

70 60 50 40 30 20 10 0

65 5 not aware 10 no specific reason reasons responses

Analysis: 65% people are not aware of the mutual funds. 5% people think that it involves high risk. 10% people have no specific reason. Q5. What is the age distribution of the investors?

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AGE DISTRIBUTION OF THE INVESTORS

NO. OF RESPONDENTS 40 30 20 10 0
<= 30 31 -3 5 36 -4 0 41 -4 5 46 -5 0 >5 0

No. of respondents

AGE GROUP

Analysis: 12% people are below the age of 30 years 18% people are in the age group of 31-35 30% people are in the age group of 36-40 24% people are in the age group of 41-46 20% people are in the age group of 46-50 16% people are above the age of 50 years.

Q6. What is the educational qualification of the investors?

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educational qualification of the investors

17 15 78

graduate/postgra duate undergraduate others

Analysis: 78% people are graduates/postgraduate. 15% people are undergraduates. 17% people fall in the category of others.

62

Q7. Instead of general mutual funds, would you like to invest in sectoral funds?

Instead of general mutual fund, investments in sectoral funds

35 yes no

65

Analysis: 65% people would like to invest in sectoral funds. 35%people would not like to invest in sectoral funds

63

Q8. What would you like to invest in- equity or debt?

where would you like to invest Equity or Debt mutual funds?

80 60 40 20 0 equity debt 25 Series1 75

Analysis: 25% people would like to invest in equity. 75% people would like to invest in debt.

64

Q9. Which is the best mode of investment preferred by investors?

Mode of investment
80 60 40 20 0 one time investment SIP 42 No. of respondents 78

Analysis: 72% people would like to invest through one time investment. 8% people would like to invest in SIP.

65

Q10. Have you ever heard about master capital services ltd.?

Heard about Master Capital Services Ltd.

8% yes no 92%

Analysis: 8% people have heard about master capital services ltd. 92% people have never heard about master capital services ltd.

66

Suggestions

The most important problem of not investing in mutual funds is that the People are not aware about the mutual funds. Nobody will invest unless and until they are not fully convinced.

Mutual funds offer a lot of benefits but people are not even aware of what actually a mutual fund is? They only see it as just another investment Option.

People should be advised about the fund schemes and its objectives by the financial advisors because they are the only people who can Influence the investors.

67

 Before making any investment they should be made aware of the risk Factor and their risk tolerance.

Younger people who are below the age of 35 should invest in equity as they have the chance to tolerate risk as advised by the financial Advisor.

Systematic investment plan (SIP) is one of the innovative products Launched by asset management company (AMC) very recently in the Industry. By investing monthly wise the average comes out to be a profit.

Limitations of the study

Although I have put in all my efforts to make the result of the survey as accurate as possible, but the survey undergone through some limitations-

68

Some of the people are not responsive.

Possibility of error in data collection may occur due to the reason that many investors may have not given actual answers of my questionnaire. Due to the busy schedules, people are not willing to give answers. Personal meetings cannot be held as it is time consuming and costly affair. The research is confined only to one department of the company.

Conclusion
Running a successful mutual fund requires complete understanding of the Indian stock market and also the psyche of the small investors.

69

In the recent times mutual fund industry has gained a lot of importance but the investors or the change in investment is not as phenomenal as it could have been. I observed that many of the people have some fear in their minds about the Mutual funds. They think that their money will not be secure in mutual funds so they need complete knowledge of the mutual funds and its related terms. As the awareness among the people and their income is growing so as the Number of mutual fund investors is growing. People would like to invest in those companies on whom they can trust or they are well known. For any Company to have investors they should have maintained goodwill in the Market. Some of the top five brands are performing well. Now lastly I would like to talk about the channels of distribution in which the most important ones are the financial advisors for investment in mutual funds. Financial advisors can easily influence the minds of the investors.

Questionnaire
Q1. Are you aware of the Mutual funds? o Yes o no
70

Q2. From which source you came to know about mutual funds? o Advertisement o Peer group o Bank o Financial advisors Q3. Have you ever invested in Mutual funds? o Yes o No Q4. What is the reason behind not investing in Mutual funds? o Not aware o High risk o No specific reason Q5. What is the age distribution of the investors? o <=30 o 31-35 o 36-40 o 41-45 o 46-50 o >50 Q6. What is the educational qualification of the investors? o Graduate/post graduate
71

o Undergraduate o Others Q7. Instead of general Mutual funds, would you like to invest in sectoral funds? o Yes o No Q8. What would you like to invest in? o Equity o debt Q9. Which is the best mode of investment preferred by investors? o One time investment o SIP Q10. Have you ever heard about Master Capital Services Ltd.? o Yes o No
NAME- ADDRESS- . CONTACT NO.- SUGGESTIONS-.

BIBLIOGRAPHY
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SITES REFERRED WWW.GOGGLE.COM WWW.MONEYCONTROL.COM WWW.AMFINDIA.COM WWW.YAHOO.COM WWW.MUTUALFUNDSINDIA.COM

BOOKS REFERRED STATISTICAL METHODS BY DR. S.P GUPTA FINANCIAL MANAGEMENT BY SHASHI K. GUPTA

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