CONTENTS

1. Acknowledgement 2. Certificate 3. Objectives 4. Introduction 5. Main Text 6. Research Methodology 7. Limitations 8. Scope and Significance of the study 9. Analysis and Findings
10. Suggestions and Conclusions 11. Annexure 12. Bibliography

INTRODUCTION

The most important factor shaping in today's global economy is the process of globalization. Indian companies are moving in search of low-cast markets, technology is driving growth in production and competition is becoming more intense. A second factor is the fastest growth in private capital flows, mainly short-term flows by banks and financial institutions, portfolio flows by mutual funds and pension funds and foreign direct investment into India. A third factor is the increasing share of India and other emerging market economies in world trade. The outburst in communication technology has led to greater integration of Indian financial markets across the world. The impact of these changes could be felt from the extremely buoyant activity in Indian stock markets. A number of foreign financial service providers have entered into the Indian financial market like Morgan Stanley, Templeton, and Goldman Sachs. Currently FII investment is at $ 6.5 Billion compared to $ 2 Billion in 2001. The stock market is booming with Sensex hovering around 16000-17000. SEBI has put in place appropriate guidelines and controls to regulate the markets in tune with the changing environment and attendant risks. All this is happening because of large amounts of investment in the country

People often invest in various asset classes to:

* To beat Inflation * To fund future needs * To meet contingencies * To maintain same standard of living after retirement All these factors matters a lot to the investors and the mutual fund route is one way through which people can meet these needs.

What Is a Mutual Fund?

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

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

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the Industry. In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets under Management (AUM) was Rs67 billion. The private sector entry to the fund family raised the Aim to Rs. 470 billion in March 1993 and till April 2004; it reached the height if Rs. 1540 billion. The Mutual Fund Industry is obviously growing at a tremendous space with the mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under. First Phase 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under Management.

Second Phase 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores. Third Phase 1993-2003 (Entry of Private Sector Funds) 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. Fourth Phase since February 2003 In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.

CATEGORIES OF MUTUAL FUND:

Mutual funds can be classified as follow:

Based on their structure:

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

 Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments. With
fluctuating share prices, such funds show volatile performance, even losses. However, short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have outperformed all asset classes in the long term. Hence, investment in equity funds should be considered for a period of at least 3-5 years. It can be further classified as: 1) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weight ages. ii) Equity diversified funds- 100% of the capital is invested in equities spreading across different sectors and stocks. iii|) Dividend yield funds- it is similar to the equity diversified funds except that they invest in companies offering high dividend yields. IV) Thematic funds- Invest 100% of the assets in sectors which are related through some theme. e.g. -An infrastructure fund invests in power, construction, cements sectors etc. v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will invest in banking stocks. vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

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

Following are balanced funds classes:

I) Debt-oriented funds -Investment below 65% in equities. ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt. Debt fund: They invest only in debt instruments, and are a good option for investors averse to idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income instruments like bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds depending on your investment horizon and needs. I) Liquid funds- These funds invest 100% in money market instruments, a large portion being invested in call money market. ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and Tbills. iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate. iv) Arbitrage fund- They generate income through arbitrage opportunities due to miswriting between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities. v) Gilt funds LT- They invest 100% of their portfolio in long-term government securities. vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term debt papers. vii) MIPS- Monthly Income Plans have an exposure of 70%-90% to debt and an Exposure of 10%-30% to equities. viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.

INVESTMENT STRATEGIES

1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of a month. Payment is made through post dated cheques or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA) 2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund. 3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month

Why Mutual Funds not Individual Securities?

People prefer mutual fund and not individual securities because first, a great deal of time and expertise is required to analyze a companyits prospects for earnings growth, its performance over the short and long term in comparison to its competitors, its debt level and creditworthiness, its new products in the pipeline, and technological changes looming that might harm or improve business. Second, purchasing individual securities involves higher transaction costs. Even when you use a discount broker, the commissions you pay to buy and sell are not cheap. Third, owning individual stocks means you are less likely to have proper diversification. To diversify a stock portfolio, you need to own at least 10 to 20 different companies in different industries, which could cost very much. For the same price you might pay for 100 shares of one security, you can buy units in a fund that owns 100 securities. Diversification lowers your investment riskif one or two stocks plunge, others may gain in value, offsetting the loss.

INVESTMENT OBJECTIVE

 Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these schemes is to provide capital appreciation over medium to long term. These schemes normally invest a major part of their fund in equities and are willing to bear short-term decline in value for possible future appreciation. Income Schemes: Income Schemes are also known as debt schemes. The aim of these schemes is to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital appreciation in such schemes may be limited. Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. These schemes invest in both shares and fixed income securities, in the proportion indicated in their offer documents (normally 50:50). Money Market Schemes: Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer, short-term instruments, such as treasury bills, certificates of deposit, commercial paper and inter-bank call money.

OTHER SCHEMES

 Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate.

Index Schemes: Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only those stocks that constitute the index. The percentage of each stock to the total holding will be identical to the stocks index weight age. And hence, the returns from such schemes would be more or less equivalent to those of the Index. Sector Specific Schemes: These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. E.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds.

Pros & cons of investing in mutual funds:

For investments in mutual fund, one must keep in mind about the Pros and cons of investments in mutual fund.

Advantages of Investing Mutual Funds:

1. Professional Management - The basic advantage of funds is that, they are professional managed, by well qualified professional. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is considered to be relatively less expensive way to make and monitor their investments. 2. Diversification - Purchasing units in a mutual fund instead of buying individual stocks or bonds, the investors risk is spread out and minimized up to certain extent. 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. 3. Economies of Scale - Mutual fund buy and sell large amounts of securities at a time, thus help to reducing transaction costs, and help to bring down the average cost of the unit for their investors. 4. Liquidity - Just like an individual stock, mutual fund also allows investors to liquidate their holdings as and when they want. 5. Simplicity - Investments in mutual fund is considered to be easy, compare to other available instruments in the market, and the minimum investment is small. Most AMC also have automatic purchase plans whereby as little as Rs. 2000, where SIP start with just Rs.50 per month basis.

Disadvantages of Investing Mutual Funds:

1. Professional Management- Some funds dont perform in neither the market, as their management is not dynamic enough to explore the available opportunity in the market, thus many investors debate over whether or not the so-called professionals are any better than mutual fund or investor himself, for picking up stocks.

2. Costs The biggest source of AMC income is generally from the entry & exit load which they charge from investors, at the time of purchase. The mutual fund industries are thus charging extra cost under layers of jargon. 3. Dilution - Because funds have small holdings across 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. 4. 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-gain 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.

REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA

The structure of mutual funds in India is guided by the SEBI. Regulations, 1996.These regulations make it mandatory for mutual fund to have three structures of sponsor trustee and asset management company. The sponsor of the mutual fund and appoints the trustees. The trustees are responsible to the investors in mutual fund and appoint the AMC for managing the investment portfolio. The AMC is the business face of the mutual fund, as it manages all the affairs of the mutual fund. The AMC and the mutual fund have to be registered with SEBI.

WHO CAN BE THE SPONSOR? WHAT DOES THE SPONSOR DO?

1. Sponsor appoints the trustees, custodians and AMC with prior approval of SEBI. 2. Sponsor must have at least 5 year track record. Of business interest in the financial market. 3. Sponsor must have been profit making in 3 out of the above 5 years. 4. Sponsor must contribute at least 40% of the capital of the AMC.

WHO ACTUALLY MANAGES THE MUTUAL FUND?

The sponsors acting through the trustees appoint all the functionaries required for managing the investors money. These are: Asset Management Company. Registrars and transfer agents. Brokers Selling agents and distributors. Custodians Depository participants. Bankers. Legal advisors. Auditors.

TRUSTEES: The mutual fund which is a trust is either managed by a trust company or a board of trustee and trust companies are governed by the provisions of the Indian Trust Act. If a trustee is a company then it is also regulated by the provisions of the Indians companies act. The AMC and the other functionary are functionally responsible to the investors. The sponsor executes and registers a trust deed in favour of the trustees. The appointment of all the trustees has to be done with prior approval of SEBI. REGISTRAR AND TRANSFER AGENTS: These are responsible for the investor servicing function, as they maintain the records of investors in mutual funds. They process investors applications, record details provided but the investors sent on application forms send details regarding investment in the mutual fund process dividend payout, send out information on the performance of mutual funds. Keep the investors record up to date. BROKERS: They support the investment management function. By enabling the investment managers to buy and sell securities. Brokers are registered members of stock exchanges. They manage to buy and sell securities. They charge a commission for their services. They also provide information on the performance of the various companies and industrial sectors and investment recommendations. SELLING AND DISTRIBUTING AGENTS. Mutual fund products reach across the country through selling agents and distributors. Selling agents are usually individuals who bring in investors funds for a commission .Distributors are the institutions that appoint agents and other mechanisms to mobilize funds from investors. Banks tend to offer mutual fund products to their choose customers. CUSTODIANS: They are responsible for the securities held in the mutual funds portfolio. They discharge an important back office function, by ensuring that securities that are bought are delivered and transferred to the books of mutual fund and that the funds are paid out when a mutual fund buy securities. They also track corporate actions

like bonus issues, right offers offer for sale, buy back and open offers for acquisitions. On the advice of the fund managers, they act on these corporate actions. LEGAL ADVISORS AND AUDITORS: They advise on regulatory and taxation issues. Every mutual fund has a compliance officer who works under the advice of legal advisors. The accounts of the mutual funds are actually the accounts of the pool in which investors have invested.

Summarized below are the short-term and long-term financial investment options available For Indian investors... Short-term investing
1. Savings bank account Use only for short-term (less than 30 days) surpluses 2. Money market funds Offer better returns than savings account without compromising liquidity 3. Bank fixed deposits For investors with low risk appetite, best for 6-12 months investment period

Long-term investing
1. Post Office savings Low risk and no TDS 2. Public Provident Fund Best fixed-income investment for high tax payers 3. Company fixed deposits Option to maximize returns within a fixed-income portfolio 4. Bonds and debentures Option for large investments or to avail of some capital gains tax rebates

The Risk-Return Trade-off:

The most important relationship to understand is the risk-return trade-off. Higher the risk greater the returns/loss and lower the risk lesser the returns/loss. Hence it is up to you, the investor to decide how much risk you are willing to take. In order to do this you must first be aware of the different types of risks involved with your investment decision. 1. Market Risk: Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting the market in general lead to this. This is true, may it be big corporations or smaller mid-sized companies. This is known as Market Risk. A Systematic Investment Plan (SIP) that works on the concept of Rupee Cost Averaging (RCA) might help mitigate this risk. 2. Credit Risk: The debt servicing ability (may it be interest payments or repayment of principal) of a company through its cash flows determines the Credit Risk faced by you. This credit risk is measured by independent rating agencies like CRISIL who rate companies and their paper. An AAA rating is considered the safest whereas a D rating is considered poor credit quality. A well-diversified portfolio might help mitigate this risk. 3. Inflation Risk: Things you hear people talk about: "Rs. 100 today is worth more than Rs. 100 tomorrow." "Remember the time when a bus ride costed 50 paisa?" "Mehangai Ka Jamana Hai." The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot of times people make conservative investment decisions to protect their capital but end up with a sum of money that can buy less than what the principal could at the time of the investment. This happens when inflation grows faster than the return on your investment. A well-diversified portfolio with some investment in equities might help mitigate this risk. 4. Interest Rate Risk: In a free market economy interest rates are difficult if not impossible to predict. Changes in interest rates affect the prices of bonds as well as equities. If interest rates rise the prices of bonds fall and vice versa. Equity might be negatively affected as well in a rising interest rate environment. A well-diversified portfolio might help mitigate this risk.

INTRODUCTION TO SBI MUTUAL FUND

SBI Funds Management Pvt. Ltd. is one of the leading fund houses in the country with an investor base of over 4.6 million and over 20 years of rich experience in fund management consistently delivering value to its investors. SBI Funds Management Pvt. Ltd. is a joint venture between 'The State Bank of India' one of India's largest banking enterprises, and Society General Asset Management (France), one of the world's leading fund management companies that manages over US$ 500 Billion worldwide. Today the fund house manages over Rs 28500 crores of assets and has a diverse profile of investors actively parking their investments across 36 active schemes. In 20 years of operation, the fund has launched 38 schemes and successfully Redeemed 15 of them, and in the process, has rewarded our investors with consistent returns. Schemes of the Mutual Fund have time after time outperformed benchmark indices, honored us with 15 awards of performance and have emerged as the preferred investment for millions of investors. The trust reposed on us by over 4.6 million investors is a genuine tribute to our expertise in fund management. SBI Funds Management Pvt. Ltd. serves its vast family of investors through a network of over 130 points of acceptance, 28 Investor Service Centers, 46 Investor Service Desks and 56 District Organizers. SBI Mutual is the first bank sponsored fund to launch an offshore fund Resurgent India Opportunities Fund. Growth through innovation and stable investment policies is the SBI MF credo.

PRODUCTS OF SBI MUTUAL FUND

Equity schemes
The investments of these schemes will predominantly be in the stock markets and endeavor will be to provide investors the opportunity to benefit from the higher returns which stock markets can provide. However they are also exposed to the volatility and attendant risks of stock markets and hence should be chosen only by such investors who have high risk taking capacities and are willing to think long term. Equity Funds include diversified Equity Funds, Sectorial Funds and Index Funds. Diversified Equity Funds invest in various stocks across different sectors while Sectorial funds which are specialized Equity Funds restrict their investments only to shares of a particular sector and hence, are riskier than Diversified Equity Funds. Index Funds invest passively only in the stocks of a particular index and the performance of such funds move with the movements of the index. Magnum COMMA Fund Magnum Equity Fund Magnum Global Fund Magnum Index Fund SBI Blue chip Fund etc

Debt schemes
Debt Funds invest only in debt instruments such as Corporate Bonds, Government Securities and Money Market instruments either completely avoiding any investments in the stock markets as in Income Funds or Gilt Funds or having a small exposure to equities as in Monthly Income Plans or Children's Plan. Hence they are safer than equity funds. At the same time the expected returns from debt funds would be lower. Such investments are advisable for the Risk-averse investor and as a part of the investment portfolio for other investors.

Magnum Childrens benefit Plan Magnum Gilt Fund Magnum Income Fund Magnum Insta Cash Fund Magnum Income Fund- Floating Rate Plan Magnum Income plus Fund Magnum Insta Cash Fund -Liquid Floater Plan Magnum Monthly Income Plan Magnum Monthly Income Plan - Floater

BALANCED SCHEMES
Magnum Balanced Fund invests in a mix of equity and debt investments. Hence they are less risky than equity funds, but at the same time provide commensurately lower returns. They provide a good investment opportunity to investors who do not wish to be completely exposed to equity markets, but is looking for higher returns than those provided by debt funds.

COMPETITORS OF SBI MUTUAL FUND

Some of the main competitors of SBI Mutual Fund are as Follows: I. ICICI Mutual Fund Ii. Reliance Mutual Fund iii. UTI Mutual Fund iv. Birla Sun Life Mutual Fund V. Kotak Mutual Fund And many more

Main branch of SBI

MUMBAI

AWARDS AND ACHIEVEMENTS

SBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award 8 times, CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 20052006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award 2007 and 5 Awards for our schemes.

Introduction to Reliance Mutual Fund

Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with Assets Under Management (AUM) of Rs. 79,974 crores (AUM as on 31st Oct 07) and an investor base of over 40.28 Lakhs Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the fastest growing mutual funds in the country. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 115 cities across the country. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd. Reliance Capital Ltd. is one of Indias leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services.

Reliance Mutual Fund is one of the fastest growing fund houses in the industry
By For a common man interested in the meteoric rise of the Indian stock market, there is no better financial instrument than a mutual fund to get all the advantages of investing in the markets directly at a lower cost, without having to worry about the expertise required to invest in stocks. A mutual fund is a trust that pools the savings of investors who share a common financial goal. The money thus collected is then invested in shares, debentures and other such capital market instruments. Mutual fund schemes cater to needs like financial position, risk tolerance and return expectations of investors. The income earned and the capital appreciation realized is then shared with the investors in the proportion of units owned by them.

HOW IT ALL BEGAN

The mutual fund industry as we know today is a little over a decade old in India. However, the inception of mutual funds in India began with the setting up of the Unit Trust of India by an Act of Parliament in 1963. This was the single mutual fund till the year 1987, when other public sector mutual funds such as SBI Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund and Can bank Mutual Fund entered the market. Insurance players such as Life Insurance Corporation of India (LIC) and General Insurance Company (GIC) also ventured into the asset management space in the early 1990s. By the end of 1993 the mutual fund had Rs 47,000 crores as assets under management. It was in 1993 that a new era in the mutual fund industry started with the entry of private sector funds. The erstwhile Kothari Pioneer, now merged with Franklin Templeton, was the first private sector mutual fund registered in July 1993. As of today there are around 37 asset management companies that are yet to penetrate the market as would be ideally desirable.

THE GROWTH PATH

The fund house has been able to earn the repute of being one of the fastest growing fund houses in the industry owing to its aggressive strategies, especially in its flagship fund Reliance Vision Fund and is offering five year returns of 25.14% as compared to the category average of 21.87%. Another category out performer in the equity diversified fund from the house of Reliance Mutual Fund is Reliance Growth Fund that has given five year returns of 30.17% against the category average of 25%. The fund house is also a leader in sector-specific funds and is running five sector funds Reliance Banking Fund, Reliance Diversified Power Sector Fund, Reliance Pharma Fund, Reliance Media and Entertainment Fund and the recently launched Reliance Infrastructure Fund - the highest number of Sectorial funds in the industry. Also, Reliance Diversified Power Sector Fund (with an NAV of Rs 78) is the best performing fund among the top 10 funds in the five year category having yielded returns of 44.04% over the last five years.

Schemes of mutual funds of reliance

Equity/Growth Schemes The aim of growth funds is to provide capital appreciation over the medium to longterm. Such schemes normally invest a major part of their corpus in equities. 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. Debt/Income Schemes The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. These funds are not affected because of fluctuations in equity markets.. Sector Specific Schemes These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. E.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. Exchange Traded Funds (ETFs) Exchange Traded Funds (ETFs) are usually passively managed mutual fund schemes tracking a benchmark index and reflect the performance of that index. These schemes are listed on the stock exchange and therefore have the flexibility of trading like a share on the stock exchange Fixed Maturity Plans (FMPs) Fixed Maturity Plans (FMPs) are basically debt oriented investment schemes with a prespecified tenure offered by mutual funds. The primary objective of a FMP is to generate income while aiming to protect the capital by investing in a portfolio of debt and money market securities.

Tata Mutual Fund

Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsors for Tata Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The investment manager is Tata Asset Management Limited and its Tata Trustee Company Pvt. Limited. Tata Asset Management Limited's is one of the fastest in the country with more than Rs. 7,703 crores (as on April 30, 2005) of AUM Tata TD Waterhouse Asset Management Private Limited is a Joint Venture between Tata group and Canadian Major TD Waterhouse. TD Waterhouse is known as one of the best asset managers, managing assets over $ 100 Bn. Tata Asset Management is a part of the Tata group. The Shareholders of TAM are Tata Sons Limited, Tata Investment Corporation Limited and Tata Finance Limited. Tata Investment Corporation Ltd. (TICL) was promoted by Tata Sons Limited (TSL) in 1937, with the main objective of being an investment company. Tata Sons Limited (TSL) is the principal investment holding company of TATAs. Through its operating consultancy divisions Tata Consultancy Services, Tata Consulting Engineers, Tata Economic Consultancy Services and Tata Financial Services, it provides a wide range of services in the areas of information technology, engineering, and financial services.

Tata Systematic Investment Plan Invest as little as Rs. 500 a month.

When it comes to financial planning, we normally think of accumulating a certain amount first and investing the savings in a lump sum. This however may not be feasible since certain expenses assume priority over savings. For example, it is not possible to plan overnight for a childs education or marriage. These are heavy expenses which require adequate time and planning, without feeling the pinch at the time of expense. In the Systematic Investment Plan (SIP), you periodically invest a fixed sum of money, as low as Rs. 500/- per month, into a specific investment vehicle, for a pre-determined period. If you are considering investing for a long term then SIP makes perfect sense.

Key Benefits of SIP

Light on the wallet If you cannot put aside large sums of money as investment on a monthly basis, the SIP route will trigger your mutual fund investment with an amount as low as Rs 500.

Makes market timing irrelevant Most investors are not experts on stocks and are even more out-of-sorts with stock market oscillations. With an SIP investment, disciplined investing over the long term sees to it that an investor is not guided by the market-timing strategy.

Helps you build for the future Most of us have needs that involve significant amounts of money, like child s

education, daughter's marriage, buying a house or a car. By saving a small amount every month through SIPs for some purpose, you actually subscribe to a far more scientific process of building wealth.

Compounds return The early bird gets the worm is not just a part of the jungle folklore. Even the 'early' investor gets a lion's share of the investment booty vis--vis the investor who comes in later. This is mainly due to a thumb rule of finance called compounding. By starting early, you give more time for your investment to perform for you, leaving you with a sizably larger corpus compared to the late investor.

Lowers the average cost SIPs work better because of rupee-cost averaging. Under rupee-cost averaging an investor typically buys more mutual fund units when prices are low. On the other hand, he will buy fewer mutual fund units when prices are high. This is a good discipline since it forces the investor to commit cash at market lows, when other investors around him are wary and exiting the market. Investors may even be pleased when prices fall because the fixed rupee investment would now fetch more units

The convenience of SIP

You can easily enroll yourself for SIP by submitting post dated cheques at time of investment. We will deposit the cheques on the requested date, credit the units to your account and will send you a confirmation for the same.

Unit Trust of India Mutual Fund

UTI Asset Management Company Private Limited, established in Jan 14, 2003, manages the UTI Mutual Fund with the support of UTI Trustee Company Private Limited. UTI Asset Management Company presently manages a corpus of over Rs.20000 Crores. The sponsors of UTI Mutual Fund are Bank of Baroda (BOB), Punjab National Bank (PNB), State Bank of India (SBI), and Life Insurance Corporation of India (LIC). The schemes of UTI Mutual Fund are Liquid Funds, Income Funds, Asset Management Funds, Index Funds, Equity Funds and Balance Funds.

Our mission is to make UTI Mutual Fund:

The most trusted brand, admired by all stakeholders The largest and most efficient money manager with global presence The best in class customer service provider The most preferred employer The most innovative and best wealth creator A socially responsible organisation known for best corporate governance

Assets under Management

UTI Asset Management Company presently manages a corpus of over Rs. 56,854 Crores as on 31st Dec 2007 (source: www.amfiindia.com) . UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizenry. It has a nationwide network consisting 79 UTI Financial Centers (UFCs) and UTI International offices in London, Dubai and Bahrain.

We have a well-qualified, professional fund management team, who has been highly empowered to manage funds with greater efficiency and accountability in the sole interest of unit holders. The fund managers are also ably supported with a strong in-house securities research department. To ensure better management of funds, a risk management department is also in operation.

Reliability
UTIMF has consistently reset and upgraded transparency standards. All the branches, UFCs and registrar offices are connected on a robust IT network to ensure cost-effective quick and efficient service. All these have evolved UTI Mutual Fund to position as a dynamic, responsive, restructured, efficient and transparent SEBI compliant entity.

Various awards won by UTI

UTI MF wins CNBC TV18-CRISIL Award UTI MF sweeps ICRA mutual fund Award 2009 UTI MF wins the Best Debt Fund House Award Etc

Careers
UTI AMC, a pioneer in the mutual fund industry is executing an ambitious plan to expand professionals its to marketing support our activities efforts in in empowering India. people. To realize these plans, the Company is now looking for energetic, self-paced At UTI AMC, we are committed to provide a work environment where our employees take pride in what they do. We provide a nurturing environment that gives ample scope to grow professionally and personally. If you have the passion to see beyond the obvious, we have a place for you. We are seeking passionate professionals to be a part of our team.

Work culture:
We believe in providing an environment that encourages employees to achieve and fulfill personal goals and that of the company. When the combined force of both, the employees and the company flow in one direction, there is ample amount of possibilities, opportunities and growth. The work culture at UTI Mutual Fund is simple work is priority and the rest follows. Our relationship with our employees works both ways, they give their best and we give them the best, we strike the right balance at work.

Employee Benefits

Competitive salaries Comfortable work environment Career opportunities Insurance benefits Recreational amenities

Scope of the study

A big boom has been witnessed in Mutual Fund Industry in recent times. A large number of new players have entered the market and trying to gain market share in this rapidly improving market. The research was carried on in Ludhiana. I had been sent at various banks where I completed my Project work. I surveyed on my Project Topic A study of preferences of the Investors for investment in Mutual Fund schemes of various companies. The study will help to know the preferences of the customers, which company, portfolio, mode of investment, and option for getting return and so on they prefer. This project report may help the company to make further planning and strategy.

RESEARCH METHODOLOGY
This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones.

Data sources:
Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites.

Duration of Study:
The study was carried out for a period of two months, from 30th Oct to 30th Dec 2008.

Sampling:
Sampling procedure: The sample was selected of them who are the customers/visitors of various banks, irrespective of them being investors or not or availing the services or not. It was also collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool. Sample size: The sample size of my project is limited to 5o people only. Sample design: Data has been presented with the help of bar graph, pie charts, line graphs etc.

Limitation:

1. Some of the persons were not so responsive. 2. Possibility of error in data collection because many of investors may have not given actual answers of my questionnaire. 3. Sample size is limited to 50 visitors 4. Size may not adequately represent the whole market. 5. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 6. The research is confined to a certain part of Ludhiana.

CONCLUSIONS

1. It has been interpreted that male investors are more than the female investors investing in the schemes of mutual funds of various companies. 2. In Occupation group out of 50investors, 16% are Pvt. Employees, 60% are Businessman, 14% are Govt. Employees, 0% is in Agriculture and 10% are in others. 3. Out of 50 Mutual Fund investors 52% of the investors in Ludhiana are Graduate/Post Graduate, 28% are Under Graduate and 20% are others (under HSC). 4. It is inferred that 86% People are aware of Mutual Fund and its operations and 14% are not aware of Mutual Fund and its operations. 5. It can be concluded that the advertisements is the most important source of information about Mutual Fund. Out of 50 Respondents, 26% know about Mutual fund through internet, 8% through Bank, 12% through magazines and 54% through Advertisement. 6. In Ludhiana most of the Investors preferred SBI and TATA Mutual Fund. Out of 50 Investors 64% have invested in each of them, only 20% have invested in RELIANCE and 16% in UTI.

7. Out of 21 investors of SBI Mutual Funds 38.o9% have invested because of its association with Brand SBI, 19.05% invested on Agents Advice, 42.86% invested because of better return. 8. Out of 29 people who have not invested in SBI Mutual Funds, 10.345% were not aware with SBI Mutual Funds, 58.620% do not have invested due to less return and 31.035% due to Agents Advice.

9. Out of 50 Investors 48% preferred to invest through brokers, 32% through agents, 14% through trustees and 6% through registrars. 10. Out of 50 Investors 46% preferred One time Investment and 54 % Preferred through Systematic Investment Plan. 11. It has been concluded that 30% preferred Equity Portfolio, 36% preferred Balance and 34%preferred Debt portfolio 12. It has been inferred 46% preferred Growth Option, 20% preferred Dividend Payout and 24% preferred Dividend Reinvestment Option. 13. Out of 50 investors, 48% investors do not prefer to invest in Sectorial Fund and 52% prefer to invest in Sectorial Fund. 14. It has been inferred that 54% of investors want to invest their money for their children education, 18% wants to invest for their children marriage and 28% have invested their money to pay off their future loans. 15. It has been inferred that 14% gets return monthly, 34% gets quarterly. 28% gets semi annually and 24% gets return annually. 16. It has been interpreted that 34% have invested in retirement benefit pension fund, 48% have invested their money in fixed maturity plan and 20% have invested their money in liquid funds.

17. It has been inferred that 78% of investors thinks that the company in which they are investing are really reliable and gives good return to them but 22% investors does not think so

18. It has been interpreted that 74% investors thinks that any cyclic variation in the economy really influence their decision while investing in mutual funds but 26% investors thinks that it does not matter their decision for investment 19. It has inferred that 68% investors thinks that their income level really influence their decision while investing in various schemes of mutual funds but 32% does not think so. 20. Out of 50 investors, 42% feels that SBI is the most reliable company to invest in.

21. Out of 50 investors, 34% investors fells that UTI has more risk factors as compared to any other companies. 22. It has been inferred that 78% investors are really satisfied with their investments relating to the particular companies but 22% investors are not satisfied with their investment.

1. SEX
SEX MALE FEMALE NO. OF INVESTORS 34 16 PERCENTAGE % 68 % 32 %

80% 70% 60% 50% 40% 32% 30% 20% 10% 0% MALE FEMALE MALE FEMALE 68%

Analysis
According to this chart it has been interpreted that male investors are more than the female investors investing in the schemes of mutual funds of various companies.

2. Occupation

OCCUPATION GOVT. SERVICE PVT. SERVICE BUSINESS AGRICULTURE OTHERS

NO. OF RESPONDENTS 7 8 30 0 5

PERCENTAGES % 14% 16% 60% 0% 10%

OCCUPATION

0%

10%

14% 16% GOVT. SERVICE PVT. SERVICE BUSINESS AGRICULTURE OTHERS

60%

Analysis
In Occupation group out of 50investors, 16% are Pvt. Employees, 60% are Businessman, 14% are Govt. Employees, 0% is in Agriculture and 10% are in others.

3. Qualification
QUALIFICATION NO. OF RESPONDENTS PERCENTAGES %

GRADUATE UNDER GRADUATE OTHERS

26 24 10

52 % 28 % 20 %

QUALIFICATION

20%

GRADUATE 52% UNDER GRADUATE OTHERS 28%

Analysis
Out of 50 Mutual Fund investors 52% of the investors in Ludhiana are Graduate/Post Graduate, 28% are Under Graduate and 20% are others (under HSC).

4. Awareness about Mutual Fund and its Operations

AWARENESS YES NO. OF RESPONDENTS 43 PERCENTAGES % 86 %

NO

14 %

AWAR EN ESS AB OUT MU TU AL FUN DS

NO
RESPONSE

14%

YES

86%

0.2

0.4

0.6

0.8

Analysis

PERCENTAGES

From the above chart it is inferred that 86% People are aware of Mutual Fund and its operations and 14% are not aware of Mutual Fund and its operations.

5. Source of information for customers about Mutual Fund

SOURCES INTERNETS ADVERTISEMENTS MAGZINES BANKS RESPONDENTS 13 27 6 4 PERCENTAGES% 26% 54 % 12 % 8%

SOURCES OF INFORMATION

8% 12%

BANKS

MAGZINES

54%
26% PERCENTAGES%

ADVERTISEMENTS

INTERENTS

Analysis
From the above chart it can be inferred that the advertisements is the most important source of information about Mutual Fund. Out of 50 Respondents, 26% know about Mutual fund through internet, 8% through Bank, 12% through magazines and 54% through Advertisements.

6. Investors invested in different Assets Management Co. (AMC)

NAME OF COMPANY SBI UTI RELIANCE TATA NO. OF RESPONDENTS 21 8 10 11 PERCENTAGES % 42 % 16 % 20 % 22 %

C OMPAN IES PR EFER R ED B Y IN VESTOR S

45% 40% 35% PERCENTAGES 30% 25% 20% 15% 10% 5% 0% S BI UTI RELIA NCE TA TA NAM E OF CO M P ANIES 16% 22% 20% P E RCENTAGE S % 42%

Analysis
In Ludhiana most of the Investors preferred SBI and TATA Mutual Fund. Out of 50 Investors 64% have invested in each of them, only 20% have invested in RELIANCE and 16% in UTI.

7. Reason for investing in SBI Mutual Funds

REASONS ASSOCIATED WTTH SBI BETTER RETURN NO. OF RESPONDENTS 8 9 PERCENTAGES % 38.09 % 42.86 %

AGENTS ADVICE

19.05 %

R EASON S FOR INVESTMEN T

19.05%

38.09% ASSOCIA TED W TTH SBI BETTER RETURN AGENTS ADVICE

42.86%

Analysis
Out of 21 investors of SBI Mutual Funds 38.o9% have invested because of its association with Brand SBI, 19.05% invested on Agents Advice, 42.86% invested because of better return.

8. Reason for not invested in SBI Mutual Funds

REASONS NOT AWARE LESS RETURN AGENTS ADVICE NO. OF RESPONDENTS 13 17 9 PERCENTAGES % 10.345 % 58.620 % 31.035 %

REASONS FOR NOT INVESTING

58.62% 60.00% 50.00% 40.00% PERCENTAGES 30.00% 20.00% 10.00% 0.00% NOT AWARE LESS RETURN REASONS AGENTS ADVICE 10.35% 31.04%

PERCENTAGES%

Analysis
Out of 29 people who have not invested in SBI Mutual Funds, 10.345% were not aware with SBI Mutual Funds, 58.620% do not have invested due to less return and 31.035% due to Agents Advice.

9. Channel Preferred by the Investors for

CHANNEL NO. OF RESPONDENT PERCENTAGE % BROKER 24 48 % AGENTS 16 32 %

Mutual Fund Investment

TRUSTEE 7 14 % REGISTRAR 3 6%

C H AN N E L FOR IN V E S TME N T
60% 50% 40% 30% 20% 10% 0% B ROK E R 6% A G E NTS CHANNEL RE GIS TRA R TRUTE E 32% 48%

PERCENTAGE

14%

Analysis
Out of 50 Investors 48% preferred to invest through brokers, 32% through agents, 14% through trustees and 6% through registrars.

10. Mode of Investment Preferred by the Investors MODE OF RESPONDENTS NO. OF RESPONDENT PERCENTAGES % ONE TIME INVESTMENT 23 46 % SYSTEMATIC INVESTMENT 27 54 %

M O D E O F IN V E S T M E N T

54% 54% 52% 50% P ERC EN T AG 48% ES 46% 44% 42% O N E TIM E IN V E S TM E N T S Y S TE M A TIC IN V E S TM E N T 46%

Analysis
Systematic Investment Plan.

Out of 50 Investors 46% preferred One time Investment and 54 % Preferred through

11. Preferred Portfolios by the Investors

PORTFOLIO DEBT BALANCED EQUITY

NO. OF INVESTORS 17 18 15

PERCENTAGES % 34 % 36 % 30 %

P OR TF OLIO

30%

34% DE B T B A LA NCE D E QUITY

36%

Analysis
From the above graph 30% preferred Equity Portfolio, 36% preferred Balance and 34%preferred Debt portfolio

12.Option for getting Return Preferred by the Investors

OPTIONS NO. OF DIVIDENT PAYOUT 10 DIVIDENT REINVESTMENT 17 34 % GROWTH IN NAV 23 46 %

RESPONDENTS PERCENTAGES% 20 %

V AR IOU S OP TION S
50% 45% 40% PERCENTAGES 35% 30% 25% 20% 15% 10% 5% 0% DIV IDE ND PA Y OUT DIV IDE ND RE INV E S TM E NT PE RCE NTA GE S % GROW TH IN NA V 20% 34% 46%

Analysis
and 24% preferred Dividend Reinvestment Option.

From the above graph 46% preferred Growth Option, 20% preferred Dividend Payout

13.Preference of Investors whether to invest in Sectorial Funds

RESPONSE YES NO NO OF RESPONDENTS 26 24 PERCENTAGES % 52 % 48 %

P R E F E R E N C E O F IN V E S T O R S

NO

48%

RESPONSE

P E R C E N TA G E S

YES

52%

Analysis
prefer to invest in Sectorial Fund.

P ER C EN T A G ES

Out of 50 investors, 48% investors do not prefer to invest in Sectorial Fund and 52%

14.Purpose of investing in UTI Mutual Funds

PURPOSE CHILDREN EDUCATION

NO. OF RESPONDENTS 27

PERCENTAGES% 54 %

CHILDREN MARRIAGE LIABILITY TO PAY FUTURE LOANS

9 14

18 % 28 %

PURPOSE OF INVESTING IN UTI MUTUAL FUNDS

60% 50% PERCENTAGE 40% 30% 20% 10% 0% CHILDREN EDUCATION 18% 28% PERCENTAGES% 54%

Analysis

CHILDREN MARRIAGE PURPOSE

LIABILITY TO PAY FUTURE LOANS

It has been inferred that 54% of investors want to invest their money for their children education, 18% wants to invest for their children marriage and 28% have invested their money to pay off their future loans.

15.Type of return investors get while investing in Mutual Funds of TATA Company
TIME PERIOD MONTHLY QUARTERLY SEMI ANNUAL NO OF RESPONDENTS 7 17 14 PERCENTAGES % 14 % 34 % 28 %

ANNUAL

12

24 %

TIME PERIOD

ANNUAL 24%

MONTHLY 14%

SEMI ANNUAL 28%

QUARTERLY 34%

Analysis
It has been inferred that 14% gets return monthly, 34% gets quarterly. 28% gets semi annually and 24% gets return annually.

16.Preference of various schemes in Reliance Mutual Funds

PREFERENCE RETIREMENT BENEFIT PENSION FUND 17 FIXED MATURITY PLAN 23 46 % LIQUID FUND 10 20 %

NO. OF RESPONDENTS PERCENTAGES% 34 %

P R E F E R E N C E S O F IN V E S T O R S R E L AT IN G T O R E L IAN C E M U T U AL FUND SCHEMES

20% 34%

RE TIR E M E NT B E N E F IT P E NS IO F U ND F IXE D M A TU RITY P LA N LIQ UID F U ND

46%

Analysis
It has been interpreted that 34% have invested in retirement benefit pension fund, 48% have invested their money in fixed maturity plan and 20% have invested their money in liquid funds.

17.Companies reliability of giving good returns to the investors

RELIABILITY YES NO NO. OF RESPONDENTS 39 11 PERCENTAGE % 78 % 22 %

R ELIAB ILITY OF TH E C OMPAN IE S TO GIV E GOOD R E TU R N TO TH E IN V E STOR S

78% 80% 70% 60% 50% P ERCENTAGES 40% 30% 20% 10% 0% YES RELIABILITY NO 22%

Analysis
It has been inferred that 78% of investors thinks that the company in which they are investing are really reliable and gives good return to them but 22% investors does not think so.

18. Influence of cyclic variation on the investors who are investing in

various companies
INFLUENCE NO. OF RESPONDENTS PERCENTAGES % YES 37 74 % NO 13 26 %

IN F L U E N C E O F C Y C L IC V A R IA T IO N S O N IN V E S T O R S
80 % 70 % 60 % PERCENTAGES 50 % 40 % 30 % 20 % 10 % 0% YES NO IN F L U EN C E 2 6% 74 %

P E R C E N TA G E S %

Analysis

It has been interpreted that 74% investors thinks that any cyclic variation in the economy really influence their decision while investing in mutual funds but 26% investors thinks that it does not matter their decision for investment.

19. Income level of various people affecting their investment plan

INFLUENCE NO. OF RESPONDENTS PERCENTAGE %

YES 34 68 %

NO 16 32 %

IN F U E N C E O N IN V E S T O R S

32% INFLENCE NO YES 68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Analysis

P ER C EN T A G E

It has inferred that 68% investors thinks that their income level really influence their decision while investing in various schemes of mutual funds but 32% does not think so.

20. Company reliable in giving good return to the investors

COMPANIES NO. OF

SBI 21

UTI 8 16 %

RELIANCE 10 20 %

TATA 11 22 %

RESPONDENTS PERCENTAGE% 42 %

C O M P A N IE S R E L IA B IL IT Y
45 % 40 % 35 % 30 % PERCENTAGES 25 % 20 % 15 % 10 % 5% 0% SBI U TI R E L IA N C E C O M P A N IE S TA TA 20% 16 % 22 % 42%

P E R C E N TA G E %

Analysis

Out of 50 investors, 42% feels that SBI is the most reliable company to invest in.

21. Company in which risk factor is more COMPANIES NO. OF RESPONDENTS PERCENTAGES% SBI 3 6% UTI 17 34 % RELIANCE 16 32 % TATA 14 28 %

R IS K F A C T O R O F V A R IO U S C O M P A N IE S
40% 35% 30% PERCENTAGES 25% 20% 15% 10% 5% 0% SBI U TI R E L IA N C E C O M P A N IE S TA TA 6% P E R C E N TA G E S 34% 32% 28%

Analysis
any other companies.

Out of 50 investors, 34% investors fells that UTI has more risk factors as compared to

22. Satisfaction of investors relating to their investments

SATISFACTION NO.OF RESPONDENTS PERCENTAGE %

YES 39 78 %

NO 11 22 %

S A T IS F A C T IO N O F IN V E S T O R S
7 8%

8 0% 7 0% 6 0% 5 0% P ER C EN T A G ES 4 0% 3 0% 2 0% 1 0% 0%

2 2%

P E R C E N TA G E %

YES

NO S A T IS F A C T IO N

Analysis

It has been inferred that 78% investors are really satisfied with their investments relating to the particular companies but 22% investors are not satisfied with their investment.

PREFACE
This work is essentially the result of final year project which is mandatory to be under taken on the partial fulfillment of the course Bachelors in Business Administration.

The topic selected is PREFERENCES OF THE INVESTORS FOR INVESTMENT IN MUTUAL FUND SCHEMES OF VARIOUS COMPANIES. It aims at the study of investment attitude of investors who are investing in various companies of mutual fund. The study was made to know the preferences of the customers, which company, portfolio, mode of investment, and option for getting return and so on they prefer. This project report may help the company to make further planning and strategy. Thus, it is a result oriented project work, the spite of the best endeavors, the report is not a work of excellence as it is a students attempt to watch, record and understand the business activities and practical aspect of business by applying theoretical knowledge and concept.

CERTIFICATE
This is to certify that the project work entitled PREFERENCES OF THE INVESTORS FOR INVESTMENT IN MUTUAL FUND SCHEMES OF VARIOUS

COMPANIES which is being submitted by Shikha Duggal a student of Final Year Bachelors of Business Administration of Khalsa College For Women under Punjab University, Chandigarh the requirements for the award of the degree of Bachelors in Business Administration in Punjab University under the supervision and guidance of Mrs. Nidhi Arora. It is certified that this bonafide work of the candidate and matter embedded in this project work has not been submitted to any other University earlier for the awards of any other degree to best of my knowledge. The data sources have been duly acknowledge.

MRS. NIDHI ARORA PROJECT GUIDE

ACKNOWLEGEMENT
It has been a great pleasure and privilege to conduct the survey on the PREFERENCES OF THE INVESTORS FOR INVESTMENT IN MUTUAL FUND SCHEMES OF VARIOUS COMPANIES. My sincere thanks and deep

gratitude towards MRS. AMAN GILL (HOD) AND MRS. NIDHI ARORA and all the lecturers of our B.B.A Department for the guidance, excellent spirit, encouragement and constant criticism which gave me the confidence to complete the project work effectively. Last but not the least I want to thank the various respondents who extended there whole hearted cooperation.

SHIKHA DUGGAL B.B.A 3RD YEAR

BIBLIOGRAPHY I am thankful to the various sites for providing me adequate sources for completing my project www.google.com

www.amfiindia.com www.valueresearchonline.com www.mutualfudsindia.com www.sharekhan.com WWW.SBIMF.COM WWW.MONEYCONTROL.COM

A STUDY OF PREFERENCE OF THE INVESTORS FOR INVESTMENT IN THE MUTUAL FUND SCHEMES OF VARIOUS COMPANIES

A PROJECT REPORT Submitted to the Punjab University in partial fulfillment of the requirement Of the degree of BACHELORS OF BUSINESS ADMINISTRATION (B.B.A)

Submitted to: MRS.NIDHI

Submitted by: Shikha Duggal B.B.A 3RD Year Roll no.3906

KHALSA COLLEGE FOR WOMEN, CIVIL LINES, LUDHIANA

SUGGESTIONS

The followings are some of the suggestions which the Mutual Fund Industry should follow in order to project its image successfully: 1. The investors are not willing to invest in mutual fund unless a minimum return is assured, it is very essential to create in the mind of the investors that mutual funds are market instruments which are associated with market risk & hence mutual fund could not offer guaranteed income. 2. All the mutual funds are operated only in the public sector; hence private sector must be allowed to float mutual funds, intensifying competition in this industry. 3. Steps should be taken for funds to make fair and truthful disclosures of information to the investors, so that subscribers know what risk they are taking by investing in fund. 4. Uniform coordinated regulations by a single agency would be formed to provide the shelter to the investors. 5. Mutual fund can penetrate rural areas like the Indian insurance industry with simple and limited products. 6. Mutual funds need to take advantage of modern technology like computer and telecommunications to provide service to the investors.

OBJECTIVES

Following are the various objectives which are considered while doing the survey:1. To study the general investment criteria of the people. 2. What an investor should consider for safe investment and better return. 3. To study the characteristics of mutual funds which attract the investors. 4. Relationship between demographics and risk tolerance. 5. To find out in which investment tool people invests most. 6. To find out which company is better for investment purpose. 7. To find out in which company risk factor is more.

QUESTIONNAIRE

I SHIKHA DUGGAL STUDENT OF BBA 3RD YR KINDELY REQUEST YOU TO FILL THE DETAILS ON THE TOPIC PREFERENCE OF THE INVESTORS FOR INVESTMENT IN THE MUTUAL FUND SCHEMES OF VARIOUS COMPANIES. 1. Name:2: Sex:3. Qualification:GRADUATE 4. Occupation. Pl tick () GOVT. SERVICE PVT. SERVICE BUSINESS AGRICULTURE OTHERS UNDER GRADUATE OTHERS

5. Are you aware about Mutual Funds and their operations? Pl tick (). YES NO 6. If yes, how did you come to know about Mutual Fund? INTERNENT ADVERTISEMENTS MAGZINES BANKS

7. In which company Mutual Fund you have invested? Pl. tick (). SBI UTI RELIANCE TATA

8. If invested in SBI mutual funds, you do so because (Pl. tick (), all a. SBI is associated with state bank of India b. They have a record of giving good return year after year c. Agents Advice

applicable).

9. If not invested in SBI mutual fund, you do so because (Pl. tick () all applicable).

a. You are not aware of SBI mutual funds b. Gives less return compared to others c. Agents Advice 10. Which Channel will you prefer while investing in Mutual Fund? BROKERS AGENTS TRUSTEES REGISTRARS

11. When you invest in Mutual Funds which mode of investment will you prefer? ONE TIME INVESTMENT SYSTEMATIC PLAN

12. When you want to invest which type of funds would you choose? a. Having only debt portfolio b. Having debt and equity portfolio c. Having only equity portfolio 13. How would you like to receive the returns every year? Pl. tick (). Dividend payout Dividend re- investment Growth in NAV

14. Instead of general Mutual Funds, would you like to invest in sectorial funds? YES NO 15. What type of return you are expecting while investing in mutual fund schemes of TATA Company? MONTHLY QUARTERLY SEMI ANNUAL ANNUAL

16. Main purpose of investing in UTI mutual funds? a. Childrens Education b. Childrens Marriage c. Liability to pay future loans 17. Which schemes of RELIANCE mutual fund would you prefer the most?

a. Retirement Benefit Pension Fund b. Fixed Maturity Plan c. Liquid Fund 18. Do you think the company in which you are investing the money is really reliable to give good returns? YES NO 19. Do you think any cyclic variation in the economy really influences your decision while investing in various companies? YES NO 20. Do you think income level of the people really affect their investment plan? YES NO 21. According to you, which company would you think is more reliable in giving well returns and profits? SBI UTI RELIANCE TATA

22. In which company would you think that the risk factor would be more? SBI UTI RELIANCE TATA

23. Are you really satisfied with your investments with particular company? YES NO ----- THANK YOU -----