A PROJECT REPORT

ON
“Study of Consumer Awareness,
Perception and Practice Regarding
of Mutual Fund Investment”

SUBMITTED TOWARDS THE PARTIAL FULFILLMENT
OF
POST GRADUATE DIPLOMA IN
BUSINESS MANAGEMENT
ACCADEMIC SESSION

Submitted To:- Submitted by:-





ACKNOWLEDGEMENMT

To test the student’s academic knowledge in practical conditions of industry,
eight weeks summer training has been included in the PGDM course. I express
my gratitude of …….. for allowing me to undergo summer training in SBI
Funds Management Pvt. Ltd.

I have the honour to express my sincere thanks to the management of SBI
Funds Management for providing me the opportunity to pursue my training in
their esteemed organization. I place on record my thanks to ……… for giving
me every sort of help and guidance.

My summer training has added to my practical knowledge and build up my
confidence. I thank once again all the staff members of SBI Funds Management
with the active support ot whom I was able to complete my project report
successfully. I am also greatful to …………. New Delhi and the faculty who
have supported a lot and given me the permission of Summer Training in SBI
Funds Management Pvt. Ltd.
Also I would like to give regards to my Parents, seniors, friends who have
helped a lot in completing this project.








TO WHOM IT MAY CONCERN

This is to certify that …….. student of ……….. has done his live Summer
training project under my guidance and supervision from 13
th
May 2008 to 27
th

June 2008.

He has completed the project titled “Study of Consumer Awareness,
Perception and Practice Regarding of Mutual Fund Investment” towards
the partial fulfillment of PGDBM under my supervision.

During his project he was found to be very sincere and attentive to small
details whatsoever told to him.

I wish him luck and success in future.















TABLE OF CONTENTS

CONTENT PAGE

EXECUTIVE SUMMARY 1-2

INTRODUCTION TO MUTUAL FUND 3-9

 Structure consists of Sponsor
 Asset Management Company (AMC)
RISK-RETURN TRADE-OFF 10-17
 Return
 Risk
BENEFIT OF MUTUAL FUND INVESTMENT 18-27
 Recent trends in mutual fund industry
 Structure of the Indian mutual fund industry
 Mutual Fund Companies in India
 Major Mutual Fund Companies in India
ASSOCIATION OF MUTUAL FUND IN INDIA (AMFI) 28-33
 The objectives of AMFI
 Net Asset Value (NAV)
TYPES OF MUTUAL FUNDS SCHEMES 34-35
 Open-end Funds
 Closed-ended Funds
INVESTMENT OBJECTIVE 36-40
 Equity Oriented Schemes
 Debt Based Schemes
 Hybrid Schemes
 Special Schemes
 Tax Saving schemes
 Liquid Income Schemes
 Money Market Schemes

SNAPSHOT OF MUTUAL FUND SCHEMES 41

THE OFFER DOCUMENT 42-47
What is an Offer Document?
 Contents
 Regulation and Investors' Rights
 SEBI Guidelines

Where to Obtain the Updated Offer Documents? 47-48
 Investor’s rights & Obligations
 Rights - Legal Limitations
 Obligations

CHOOSING A FUND 49-52
 Benchmark returns
 Time period
 Market conditions
 Final checklist
Compare funds that are similar 52-53


HISTORY OF INDIAN MUTUAL FUNDS INDUSTRY 54-58

 First Phase – 1964-87
 Second Phase – 1987-1993 (Entry of Public Sector Funds)
 Third Phase – 1993-2003 (Entry of Private Sector Funds)
 Fourth Phase – since February 2003

BROKERAGE 59-66
Asset Management Business:
 Broking
 Mutual Fund
 Trends
 Nothing Speaks like Money
 Larger than Life
When do you take a
this a Sales Call?
 Fund Manager
 Research
 Marketing
 Sales
 Dealing
 Operations
 Technology
SBI MUTUAL FUNDS 67-73

 Introduction
 Company Profile
 Product Profile
 Equity Schemes
 DEBT Schemes
 BALANCED SCHEMES


SBIMF WAS FOUNDED WITH A VISION 74-76

 Vision


METHODOLOGY 77

 Research Methodology

SOURCE OF DATA COLLECTION 78

 Primary data
 Secondary data

DATA ANALYSIS & INTERPRETATION 79-94
 Interpretation

People who invest in mutual fund 95-95

People who do not invest in mutual fund 97

LIMITATION 98

RECOMMENDATION 99

CONCLUSIONS 100

QUESTIONNIRE SURVEY 101-105