INTRODUCTION

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 INTRODUCTION OF FINANCE

DEFINITION OF FINANCE :-

Finance is a field that deals with the study of investments. It includes the dynamics
of assets and liabilities over time under conditions of different degrees of uncertainty and
risk. Finance can also be defined as the science of money management. Finance aims to price
assets based on their risk level and their expected rate of return. Finance can be broken into
three sub-categories: public finance, corporate finance and personal finance.
Financial management refers to the efficient and effective management of money
(funds) in such a manner as to accomplish the objectives of the organization. It is the
specialized function directly associated with the top management. The significance of this
function is not seen in the 'Line' but also in the capacity of 'Staff' in overall of a company. It
has been defined differently by different experts in the field.
The term typically applies to an organization or company's financial strategy, while personal
finance or financial life management refers to an individual's management strategy. It
includes how to raise the capital and how to allocate capital, i.e. capital budgeting. Not only
for long term budgeting, but also how to allocate the short term resources like current
liabilities. It also deals with the dividend policies of the share holders.

IMPORTANCE OF FINANCIAL MANAGEMENT CYCLE:

Finance is the lifeblood of business organization. It needs to meet the requirement of the
business concern. Each and every business concern must maintain adequate amount of
finance for their smooth running of the business concern and also maintain the business
carefully to achieve the goal of the business concern. The business goal can be achieved only
with the help of effective management of finance. We can’t neglect the importance of finance
at any time at and at any situation. Some of the importance of the financial management is as
follows:
Financial Planning.
Financial management helps to determine the financial requirement of the business concern
and leads to take financial planning of the concern. Financial planning is an important part of
the business concern, which helps to promotion of an enterprise

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Acquisition of Funds.
Financial management involves the acquisition of required finance to the business concern.
Acquiring needed funds play a major part of the financial management, which involve
possible source of finance at minimum cost.
Proper Use of Funds.
Proper use and allocation of funds leads to improve the operational efficiency of the business
concern. When the finance manager uses the funds properly, they can reduce the cost of
capital and increase the value of the firm.
Financial Decision.
Financial management helps to take sound financial decision in the business concern.
Financial decision will affect the entire business operation of the concern. Because there is a
direct relationship with various department functions such as marketing, production
personnel, etc.
Improve Profitability.
Profitability of the concern purely depends on the effectiveness and proper utilization of
funds by the business concern. Financial management helps to improve the profitability
position of the concern with the help of strong financial control devices such as budgetary
control, ratio analysis and cost volume profit analysis.

Increase the Value of the Firm.

Financial management is very important in the field of increasing the wealth of the investors
and the business concern. Ultimate aim of any business concern will achieve the maximum
profit and higher profitability leads to maximize the wealth of the investors as well as the
nation.
Promoting Savings.
Savings are possible only when the business concern earns higher profitability and
maximizing wealth. Effective financial management helps to promoting and mobilizing
individual and corporate savings.
Now days financial management is also popularly known as business finance or corporate
finances. The business concern or corporate sectors cannot function without the importance
of the financial management.

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Functions of Financial Management
1. Estimation of capital requirements: A finance manager has to make estimation with
regards to capital requirements of the company. This will depend upon expected costs
and profits and future programmes and policies of a concern. Estimations have to be
made in an adequate manner which increases earning capacity of enterprise.
2. Determination of capital composition: Once the estimation have been made, the
capital structure have to be decided. This involves short- term and long- term debt
equity analysis. This will depend upon the proportion of equity capital a company is
possessing and additional funds which have to be raised from outside parties.
3. Choice of sources of funds: For additional funds to be procured, a company has
many choices like-
a. Issue of shares and debentures
b. Loans to be taken from banks and financial institutions
c. Public deposits to be drawn like in form of bonds.
Choice of factor will depend on relative merits and demerits of each source and period
of financing.
4. Investment of funds: The finance manager has to decide to allocate funds into
profitable ventures so that there is safety on investment and regular returns is possible.
5. Disposal of surplus: The net profits decision have to be made by the finance
manager. This can be done in two ways:
a. Dividend declaration - It includes identifying the rate of dividends and other
benefits like bonus.
b. Retained profits - The volume has to be decided which will depend upon
expansional, innovational, diversification plans of the company.
6. Management of cash: Finance manager has to make decisions with regards to cash
management. Cash is required for many purposes like payment of wages and salaries,
payment of electricity and water bills, payment to creditors, meeting current
liabilities, maintainance of enough stock, purchase of raw materials, etc.
7. Financial controls: The finance manager has not only to plan, procure and utilize the
funds but he also has to exercise control over finances. This can be done through
many techniques like ratio analysis, financial forecasting, cost and profit control, etc.

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INTRODUCTION TO 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. Investors of
mutual funds are known as unit holders.

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The flow chart below describes broadly the working of a Mutual Fund.

A Mutual Fund is a body corporate registered with the Securities and Exchange
Board of India (SEBI) that pools up the money from individual/corporate investors and
invests the same on behalf of the investors/unit holders, in Equity shares, Government
securities, Bonds, Call Money Markets etc, and distributes the profits. In the other words, a
Mutual Fund allows investors to indirectly take a position in a basket of assets.
Mutual Fund is a mechanism for pooling the resources by issuing units to the investors and
investing funds in securities in accordance with objectives as disclosed in offer document.
Investments in securities are spread among a wide cross-section of industries and sectors
thus the risk is reduced. Diversification reduces the risk because all stocks may not move in
the same direction in the same proportion at same time. Investors of mutual funds are
known as unit holders.

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  SCHEMES

1. Mutual funds are allowed to start and operate both closed-end and open-end
schemes;
2. Each closed-end schemes must have a Minimum corpus (pooling up) of Rs 20 crore.
3. Each open-end scheme must have a Minimum corpus of Rs 50 crore.
4. In the case of a Closed –End scheme if the Minimum amount of Rs 20 crore or
60% of the target amount, whichever is higher is not raised then the entire
subscription has to be refunded to the investors.
5. In the case of Open-Ended schemes, if the Minimum amount of Rs 50 crore or 60
percent of the targeted amount, whichever is higher, is not raised then the entire
subscription has to be refunded to the investors.

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  ADVANTAGES OF MUTUAL FUND:-

• Portfolio Diversification
• Professional management
• Reduction / Diversification of Risk
• Liquidity
• Flexibility & Convenience
• Reduction in Transaction cost
• Safety of regulated environment
• Choice of schemes
• Transparency

 DISADVANTAGE OF MUTUAL FUND:-

• No control over Cost in the Hands of an Investor

• No tailor-made Portfolios
• Managing a Portfolio Funds
• Difficulty in selecting a Suitable Fund Scheme

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 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 Anum 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.

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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). HDFC Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (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 20014, representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. The second is the UTI Mutual Fund Ltd, sponsored by HDFC,
PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. Consolidation and growth. As at the end of September, 2004, there were
29 funds, which manage assets of Rs.153108 crores under 421 schemes.

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11
ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizational set up
of a Mutual Fund:

Mutual Funds diversify their risk by holding a portfolio of instead of only one asset. This is
because by holding all your money in just one asset, the entire fortunes of your portfolio
depend on this one asset. By creating a portfolio of a variety of assets, this risk is
substantially reduced.

Mutual Fund investments are not totally risk free. In fact, investing in Mutual Funds
contains the same risk as investing in the markets, the only difference being that due to
professional management of funds the controllable risks are substantially reduced. A very
important risk involved in Mutual Fund investments is the market risk. However, the
company specific risks are largely eliminated due to professional fund management.

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IMPORTANT CHARACTERISTICS OF A MUTUAL FUND

 A Mutual Fund actually belongs to the investors who have pooled their Funds. The
ownership of the mutual fund is in the hands of the Investors.

 A Mutual Fund is managed by investment professional and other service providers who
earns a fee for their services from the funds.

 The pool of Funds is invested in a portfolio of marketable investments.

 The value of the portfolio is updated every day.

 The investor’s share in the fund is denominated by “units”. The value of the units
changes with change in the portfolio value, every day.

 The value of one unit of investment is called net asset value (NAV).

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Types Of mutual funds

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1. Open-end funds:-
Open-end mutual funds must be willing to buy back their shares from their investors
at the end of every business day at the net asset value computed that day. Most open-end
funds also sell shares to the public every business day; these shares are also priced at net asset
value.
2. Closed-end funds:-
Closed-end funds generally issue shares to the public only once, when they are
created through an initial public offering. Their shares are then listed for trading on a stock
exchange. Investors who no longer wish to invest in the fund cannot sell their shares back to
the fund (as they can with an open-end fund).
3. Unit investment trusts:-
Unit investment trusts or UITs issue shares to the public only once, when they are
created. UITs generally have a limited life span, established at creation. Investors can redeem
shares directly with the fund at any time (as with an open-end fund) or wait to redeem upon
termination of the trust. Less commonly, they can sell their shares in the open market.
4. Exchange-traded funds:-
A relatively recent innovation, the exchange-traded fund or ETF is often structured as
an open-end investment company, though ETFs may also be structured as unit investment
trusts, partnerships, investments trust, grantor trusts or bonds (as an exchange-traded note).
ETFs combine characteristics of both closed-end funds and open-end funds.

5. Investments and classification:-

Mutual funds are normally classified by their principal investments, as described in
the prospectus and investment objective. The four main categories of funds are money market
funds, bond or fixed income funds, stock or equity funds and hybrid funds.
6. Money market funds:-
Money market funds invest in money market instruments, which are fixed income
securities with a very short time to maturity and high credit quality. Investors often use
money market funds as a substitute for bank savings accounts, though money market funds
are not government insured, unlike bank savings accounts.

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7. Bond funds:-
Bond funds invest in fixed income or debt securities. Bond funds can be sub classified
according to the specific types of bonds owned (such as high-yield or junk bonds,
investment-grade corporate bonds, government bonds or municipal bonds) or by the maturity
of the bonds held (short-, intermediate- or long-term).
8. Stock or equity funds:-
Stock or equity funds invest in common stocks which represent an ownership share
(or equity) in corporations. Stock funds may invest in primarily U.S. securities (domestic or
U.S. funds), in both U.S. and foreign securities (global or world funds), or primarily foreign
securities (international funds). They may focus on a specific industry or sector.

9. Hybrid funds:-
Hybrid funds invest in both bonds and stocks or in convertible securities. Balanced
funds, asset allocation funds, target date or target risk funds and lifecycle or lifestyle funds
are all types of hybrid funds.

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MUTUAL FUND INVESTING STRATEGIES

1. Systematic Investment Plans (SIPs)

These are best suited for young people who have started their careers and need to build
their wealth. SIPs entail an investor to invest a fixed sum of money at regular intervals in
the Mutual fund scheme the investor has chosen, an investor opting for SIP in xyz Mutual
Fund scheme will need to invest a certain sum on money every month/quarter/half-year in
the scheme.

2. Systematic Withdrawal Plans (SWPs)

These plans are best suited for people nearing retirement. In these plans, an investor invests
in a mutual fund scheme and is allowed to withdraw a fixed sum of money at regular
intervals to take care of his expenses

3. Systematic Transfer Plans (STPs)

They allow the investor to transfer on a periodic basis a specified amount from one scheme
to another within the same fund family – meaning two schemes belonging to the same
mutual fund. A transfer will be treated as redemption of units from the scheme from which
the transfer is made. Such redemption or investment will be at the applicable NAV. This
service allows the investor to manage his investments actively to achieve his objectives.
Many funds do not even charge any transaction fees for his service – an added advantage
for the active investor.

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COMPANY PROFILE

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 COMPANY PROFILE

HDFC Bank (Housing Development Finance Corporation) is an Indian banking and

financial services company headquartered in Mumbai, Maharashtra. It has about 87,555
employees and has a presence in Bahrain, Hong Kong and Dubai. HDFC Bank is the second
largest private bank in India as measured by assets. It is the largest bank in India by market
capitalization as of February 2016. It was ranked 69th in 2016 BrandZTM Top 100 Most
Valuable Global Brands.

HISTORY

The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as
a Scheduled Commercial Bank in January 1995. The Housing Development Finance
Corporation (HDFC) was amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalization of the Indian Banking Industry in 1994.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 1416 branches spread over 550 cities across India. All branches are linked on
an online real–time basis. Customers in over 500 locations are also serviced through
Telephone Banking. The Bank also has a network of about over 3382 networked ATMs
across these cities.
The promoter of the company HDFC was incepted in 1977 is India's premier housing
finance company and enjoys an impeccable track record in India as well as in international
markets. HDFC has developed significant expertise in retail mortgage loans to different
market segments and also has a large corporate client base for its housing related credit
facilities. With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a
bank in the Indian environment.
The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares ( ADS ) are listed on the
New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange.

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On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory
approval process. As per the scheme of amalgamation, shareholders of CBoP received 1
share of HDFC Bank for every 29 shares of CBoP.
The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and
net advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would
be over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in
terms of increased branch network, geographic reach, and customer base, and a bigger pool
of skilled manpower.
In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was
merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two
private banks in the New Generation Private Sector Banks. As per the scheme of
amalgamation approved by the shareholders of both banks and the Reserve Bank of India,
shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times
Bank.
HDFC Bank offers a wide range of commercial and transactional banking services
and treasury products to wholesale and retail customers. The bank has three key business
segments:
Wholesale Banking Services – The Bank's target market ranges from large, blue–chip
manufacturing companies in the Indian corporate to small & mid–sized corporates and agri–
based businesses.
Retail Banking Services – The objective of the Retail Bank is to provide its target market
customers a full range of financial products and banking services, giving the customer a one–
stop window for all his/her banking requirements.
Treasury – Within this business, the bank has three main product areas – Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities. The
Treasury business is responsible for managing the returns and market risk on this investment
portfolio.

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 PRODUCTS & SERVICES

Personal Banking

 Savings Accounts
 Salary Accounts
 Current Accounts
 Fixed Deposits
 Demat Account
 Safe Deposit Lockers
 Loans
 Credit Cards
 Debit Cards
 Prepaid Cards
 Investments & Insurance
 Forex Services
 Payment Services
 Net Banking
 Insta Alerts
 Mobile Banking
 Insta Query
 ATM
 Phone Banking

NRI Banking

 Rupee Savings Accounts

 Rupee Current Accounts
 Rupee Fixed Deposits
 Foreign Currency Deposits
 Accounts for Returning Indians
 Quic kremit (North America, UK, Europe, Southeast Asia)
 India Link (Middle East, Africa)
 Cheque Lock Box
 Telegraphic / Wire Transfer

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 Funds Transfer through Cheques / DDs / TCs
 Mutual Funds
 Private Banking
 Portfolio Investment Schemes
 Loans
 Payment Services
 Net Banking
 Insta Alerts
 Mobile Banking
 Insta Query
 ATM
 Phone Banking

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OBJECTIVES OF THE STUDY

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 OBJECTIVES OF THE STUDY

 To analyze the awareness of Mutual Funds amongst investors.

 To study the risk and benefits involved in Mutual Funds.

 To study the benefits of HDFC Mutual Funds schemes.

 To study the mutual fund schemes and analysis them.

 To evaluate financial position and growth of the company.

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HYPOTHESIS

25
 HYPOTHESIS

 Equity funds are more beneficial compared with debt fund.

 Mutual funds have the potential to provide higher returns.

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RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY

What is research :-

A broad definition of research is given by Godwin Colibao: "In the broadest sense of
the word, the definition of research includes any gathering of data, information, and facts for
the advancement of knowledge."

Another definition of research is given by John W. Creswell, who states that

"[r]esearch is a process of steps used to collect and analyze information to increase our
understanding of a topic or issue". It consists of three steps: pose a question, collect data to
answer the question, and present an answer to the question.

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.

Research Methodology decides the territory of proposed study and gives information
to the readers about adopted process of analysis for the respective study. This includes aims
for which the study is undertaken. This also clarify time, scope, data sources etc. of proposed
study. Another significant aspect is tools and techniques which are used for the study. In brief
this chapter helps to the researcher to decide his path of research work.

In the light of the above, the research study has been undertaken to study the selected
banks to know, what policies, structural and procedural changes taken place in these selected
banks and how these changes made impact on these banks. The other individual benefit of
undertaking this research to the researcher is to grab an opportunity to meet and discuss with
Academic Professional, Govt. Officials, regulatory Bodies of Government, Practical Bankers,
Business and Industry, Executives, State Government Officials, Researchers and Policy
Makers on various issues related to the banking sector reforms and their impacts in India.

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 Size of Sample:-

The sample size of my project is limited to 200 people only. Out of which only
100 people had invested in Mutual Fund. Other 100 people did not have invested in
Mutual Fund.

Research Universe:-

It has been assumed that HDFC mutual funds of whole Customer.

Research Design:-

Application of Research:-

 Pure Research
 Applied Research

Objective of Research:-

 Descriptive
 Correlation
 Explanatory

Inquiry Mode of Research:-

 Structured Approach
 Unstructured Approach

Research type:-

It is design to describe something the characteristics of users of a given product; the

degree to which product use varies with income, ages, sex, and other characteristics. It
should not be concluded that such studies should be simply fact gathering expeditions.

Sampling Design:-

Data has been presented with the help of Bar graph, Pie charts, Line graphs etc.

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 METHOD OF DATA COLLECTION:-

Data collection carried out by way of personal interview of customers of

HDFC Bank at Nagpur Branch, questionnaires and literature review. The literature
review carried out through records of bank, customer feedbacks, journals and other
publications.

 Tools of Analysis:

The following statistical tools were used to analyze the data

1. Cross Tabulations.
2. Frequency distribution.
3. Percentage Analysis

The main purpose of any data collection method is to enhance the decision
making ability of a decision maker; obviously, data collection methods may be
many.

The information we collect about you comes from the following sources:

1. Internet.
2. Banking websites.
3. Based Questionnaire.

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  SOURCES OF DATA COLLECTION:-

There are several ways of collecting the appropriate data which differ considerably in
context of money, cost, time and other sources at the disposable of the researcher.
These are two types of data.

1. Primary Data

2. Secondary Data

1. Primary Data:-

Primary data are those which are collected afresh and for the first time, and thus
happen to be original in character. In case of descriptive research, researcher performs
survey whether sample survey or census survey, thus we obtain primary data either
through

 Primary data collected by discussing with Questionnaire .

 Primary data collected by discussing with company officer .

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2. Secondary Data:-

Secondary data are those which have already been collected by someone else and
have already been passed through statistical process. In this project report, both types
of data have been used. Mainly, secondary data is used such as annual reports.
 Annual Reports

 Internet

 Company journal

 Various books

 Books

 Company Annual Report

Secondary data all the method of data collected can supply quantitative data or
qualitative data. Qualitative data may often be presented in tabular or
graphical form. Secondary data is that data which has already been collected
by someone else for different purpose to yours.

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DATA ANALYSIS AND INTERPRETATION:-

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 DATA ANALYSIS AND INTERPRETATION:-

1. The respondents were asked to invest in mutual fund or not?

RESPONSE NO.OF INVESTOR

YES 100
NO 0
TOTAL 100

NO.OF INVESTOR

YES
NO

Interpretation:-
All the investor who are asked to fill the questionnaire have invested in mutual fund.
According to above chart out of 100 mutual fund investors the 100% respondents who
invested in mutual fund.

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 2. What is the Age of investors who invest in mutual fund ?

AGE LESS 31-35 36-40 41-45 46-50 MORE

GROUP THAN THAN
30 50
NO OF 12 18 30 24 20 16
INVESTORS

Interpretation:-According to this chart out of 100 Mutual fund investors the most are in the
age group of 36-40 yrs.i.e.25% the second most investors are in the group of 41-45 yrs i.e.
20% and the last investors are in the age group of below 30 yrs.

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3. What is the Educational qualification of investors?

EDUCATIONAL Number of Investors

QUALIFICATION
GRADUATE /POST GRADUATE 68
UNDER GRADUATE 25
OTHERS 07
TOTAL 100

Number of Investors

GRADUATE /POST
GRADUATE
UNDER GRADUATE
100
68
OTHERS

TOTAL
25
7

Interpretation:-

Out of 100 Mutual Fund investors 71% Of the investors are Graduate/ Post Graduate
23% are under graduate and 6% are others.

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 4. What is the Occupation of investors?

OCCUPATION NO. OF INVESTORS

GOVT. SERVICE 20
PRIVATE SERVICE 45
BUSINESS 25
AGRICULTURE 4
OTHERS 6

Interpretation:-In Occupation group of 100 investors ,38% are private Employees, 25% are
Business man, 29% are Govt. employees, 3% are in Agriculture and 5% are in others.

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5. What is Monthly family income of the investors?

INCOME GROUP NO. OF INVESTORS

LESS THAN 10000 5
10001-15000 12
15001-20000 18
20001-30000 43
MORE THAN 30000 22

Interpretation:-

In the income group of investors out of 100 investors 36% investors that is the
maximum investors are in the monthly income group Rs 20001 to Rs 30000, Second
one i.e. 275 investors are in the monthly income group of more than 30000 and the
minimum investors i.e. 4% are in the monthly group of below Rs 10000.

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 6. Is Investors invested in different kind of investments.?
KIND OF INVESTMENTS NO. OF RESPONDENTS
SAVING A/C 195
FIXED DEPOSITS 148
INSURANCE 152
MUTUAL FUND 120
POST OFFICE (NSC) 75
SHARES / DEBENTURES 50
GOLD / SILVER 30
REAL ESTATE 65

Interpretation:-From the above graph it can be inferred that out of 120 people, 97.5%
people have invest in saving A/C, 76% in insurance, 74% in fixes deposits, 60% in mutual
fund, 37.5% in post office, 25% in shares or Debentures, in 15% in Gold/Silver and 32.5% in
Real Estate.

39
7. Which is Preference of factors while investing of the respondents?

FACTORS (A)LIQUIDITY (B)LOW (C)HIGH (D)TRUST

RISK RETURNS
NO. OF 40 60 64 36
RESPONDENTS

Interpretation

Out of 100 people, 32% people prefer to invest where there is high return, 30% prefer
to invest where there is low risk, 20% prefer easy liquidity & 18% prefer trust.

40
8. How many respondents are awareness about mutual fund & its
operations?

RESPONSE YES NO
NO. OF 67 33
RESPONDENTS

Interpretation:-

From the above chart it is inferred that 67% people are aware of mutual fund and its
operations and 33% are not aware of mutual fund and its operations.

41
9. Is Investors invested in Mutual Fund?

RESPONSE NO. OF
RESPONDENTS
YES 120
NO 80
TOTAL 200

Interpretation:-

Out of 100 people, 60% have invested in Mutual Fund and 40% do not have invested
in Mutual Fund.

42
 10. How do you know about mutual fund?

KNOW FROM NO. OF INVESTOR

ADVERTISEMENT 9
BANK 22
FRIENDS & PEER 27
FINANCIAL ADVISOR 42
TOTAL 100

45 42
40
35
30 27
25 22
20
15
9
10
5
0
ADVERTISEMENT BANK FRIENDS & PEER FINANCIAL ADVISOR

ADVERTISEMENT BANK FRIENDS & PEER FINANCIAL ADVISOR

Interpretation:-
From the above chart it can be inferred that the financial advisor is the most important
source of information about mutual fund. Out of 100 respondents 42 know about mutual
fund through financial advisor, 27% through friends & peer, 22 through bank and 9 through
advertisement.

43
11. Which mutual fund scheme have you invested?

SCHEME NO. OF INVESTOR

OPEN ENDED 17
CLOSE ENDED 53
SECTOR FUND 9
GROWTH 21
TOTAL 100

NO. OF INVESTOR
60

50 53

40
OPEN ENDED

30 CLOSE ENDED
SECTOR FUND
20
21 GROWTH
17
10
9
0
OPEN ENDED CLOSE ENDED SECTOR FUND GROWTH

Interpretation:-
From above graph it show that there are out of 100 investor 53 investor are likely to invest in
close ended mutual fund scheme , 21 are in growth fund ,17 are open ended fund and other
are invest in sector fund. It means investors are more like to invest for long term for security
and like to want good return from investment.

44
 12. Which features of mutual fund you prefer most?

FEATURES NO. OF INVESTOR

DIVERSIFICATION 20
BETTER RETURN 55
REDUCTION IN RISK 10
REGULAR INCOME 9
TAX BENEFIT 6
TOTAL 100

NO. OF INVESTOR
DIVERSIFICATION BETTER RETURN REDUCTION IN RISK
REGULAR INCOME TAX BENEFIT

55

20
10 9
6

DIVERSIFICATION BETTER RETURN REDUCTION IN RISK REGULAR INCOME TAX BENEFIT

Interpretation :-
From above data and chart it show that people who are invest in mutual fund are invest for
better return from mutual fund company i.e 55 investor and after that 20 investor like
diversification feature of mutual fund. Some investor invest due to there are less risk factor or
generate regular income from mutual fund.

45
 13. When you invest in mutual fund which mode of investment would
you prefer?

MODE OF INVESTMENT NO. OF INVESTOR

ONE TIME INVESTMENT 40
SYSTEMATIC PLAN 60

TOTAL 100

NO. OF INVESTOR
70

60

50

40
ONE TIME INVESTMENT
30
SYSTEMATIC PLAN
20

10

0
ONE TIME INVESTMENT SYSTEMATIC PLAN

Interpretation:-
Out of 100 investors 40% preferred one time investment and 60% preferred through SIP for
regular saving habit with good return.

46
 14. Are you satisfied by the service of the company’s employee/people
behavior?
SERVICE NO. OF INVESTOR
HIGHLY SATISFACTORY 15
SATISFACTORY 35
AVERAGE 30
DISSATISFACTORY 15
HIGHLY DISSATISFACTORY 5
TOTAL 100

NO. OF INVESTOR

5% 15%
15%
HIGHLY SATISFACTORY
SATISFACTORY

35% AVERAGE
30%
DISSATISFACTORY
HIGHLY DISSATISFACTORY

Interpretation:-

There are more no. of investor said that the services provide by company to them regarding
investment are very good i.e 15 investor,35% are satisfied , 30% said that average service.
There are less no of investor that they are dissatisfied.

47
15. Do You Know The Various Mutual Fund Schemes Provided By
HDFC ?

YES 76

NO 24

24%

Yes No

76%

Interpretation:

From the above chart 76% people know the various mutual fund schemes provided by
HDFC and 24% people know the various mutual fund schemes provided by HDFC?

48
CONCLUSION

49
 CONCLUSION

The conclusion allows you to have the final say on the issues you have raised in your
paper, to summarize your thoughts, to demonstrate the importance of your ideas, and
to propel your reader to a new view of the subject. It is also your opportunity to make
a good final impression and to end on a positive note.

The following Conclusion are draw on the basis of data analysis and data
Interpretation.

1. From data interpretation we can say mutual fund is a best investment vehicle for old,
retired, business people as well as youngster and those who want regular returns on
their investment.
2. Mutual fund is also better and preferable for those who want their capital
appreciation.
3. Both the companies are doing considerable achievement in mutual fund industry.
4. There are also so many competitors involved those effect on both companies.
5. Many of people do not have invested in mutual fund due to lack of awareness,
although they have money to invest.
6. Brand plays important role for the investment. People invest in those companies
where they have faith or they are well known with them.
7. As the awareness and income is growing the number of mutual fund investors are
also growing.
8. Distribution channels are also important for the investment in mutual funds.
Financial advisors are the most preferred channel for the investment in mutual fund .

50
LIMITATIONS

51
 LIMITATIONS: -

 The primary data collection will be done in Nagpur city only and the findings may not
be applicable to the entire country.
 Time constraint serves will be the main limitation for the study.
 The study is limited only to the analysis of mutual funds and its suitability to
different investors according to their risk-taking ability.
 The primary data given by the respondents is assumed to be true. But the respondents
may not behave exactly in a way they have expressed.
 This study contains only the mutual funds scheme of HDFC not other fund family.
 This study contains only of HDFC mutual funds its limited to Nagpur City only.

52
SUGGESTIONS

53
 SUGGESTIONS

In my study I have found some limitation. For that I can suggest both the company following
suggestions or area of improvement.

1. HDFC MFs bank should try to provide better returns to its investors.
2. HDFC MFs should try to invest in better securities for better profit.

3. HDFC MFs should try to satisfy their customer by better customer service or by
improving customer relationship management.

4. Investor should be made fully aware of the concept of mutual fund and all the term
and condition. The most vital problem spotted is of ignorance. Investors should be
made aware of the benefits. Nobody will invest until and unless he is fully
convinced. Investors should be made to realize that ignorance is no longer bliss and
what they are losing by not investing.

5. Mutual funds offer a lot of benefits which no other single option could offer. But most
of the people are not even aware of what actually a mutual fund is? They only see it as
just another investment option. So the advisors should try to change their mindset.
The advisors should target for more and more young investors. Young investors as
well as persons at the high of their career would like to go for advisors due to lack of
expertise and time.

6. Mutual Fund Company needs to give the training of the individual financial advisor
about the fund/scheme and its objective, because they are the main source of influence
the investors.

7. Before making any investment financial advisors should first enquire about the risk
tolerance of the investors/customers, their need and time. By considering these three
things they can take the customers into consideration.

54
8. Younger people aged under 35 will be new key customer group into the future, so
making greater efforts with younger customers who show some interest in investing
should pay off.

9. Customers with graduate level education are easier to sell and there is a large
untapped market there. To succeed however, advisors must provide sound advice and
high quality.

10. Systematic investment plan (SIP) is one of the innovative product launched by
AMC’s very recently in the industry. SIP is easy for monthly salaried person as it
provides the facility of do the investments in EMI. Though most of the prospects and
potential investors are not aware about the SIP. There is a large scope for the
companies to tap the salaried persons.

55
BIBLIOGRAPHY

56
 BIBLIOGRAPHY

1. Annual Report of HDFC Bank

2. Research Methodology, 2004, C.P. KOTHARI, new age international publishers.
3. Financial Markets and Service, 2009,E .Gordon &K. Natragan , Himalaya
Publishing House.
4. Financial service management,2014,thakur publication.
5. Invest India by Dr.Uma Shashikant
6. A guide for mutual funds by HDFC Bank
7. Offer documents of HDFC magnum mid cap fund

Websites:-

1. www.HDFCmf.com

2. www.amfindia.com

3. www.mutualfundindia.com

4. www.google.com

57
ANNEXURE

58
 ANNEXURE

QUESTIONNAIRE

Name: Mobile No:

Age Sex: M/F:

Educational Qualification:

Profession:

Address:

1) The respondents were asked to invest in mutual fund or not?

Yes

No

2) What is the Age of investors who invested in mutual fund?

Less than 30

31-35

36-40

41-45

46-50

More than 50

59
3) What is the educational Qualification of the investors?

Graduate /Post Graduate

Under Graduate

Others

4) What is occupation of the investors?

Private job

Govt. job

Business

Retired

5) What is Monthly family income of the investors?

Less than 10000

10001-15000

15001-20000

20001-30000

More than 30000

6) Is Investors invested in different kind of investments.?

Yes

No

60
7) Which is Preference of factors while investing?

LIQUIDITY

LOW RISK

HIGH RETURNS

TRUST

8) How many respondents are awareness about mutual fund & its
operations?

67

33

9) Is Investors invested in Mutual Fund?

Yes

No

10) How do you know about mutual fund?

Advertisement

Bank

Friends and peer

Financial advisor

61
11) Which mutual fund scheme have you invested?

Open ended

Close ended

Sector fund

Growth fund

12) Which features of mutual fund you prefer most?

Diversification

Better return

Reduction in risk

Regular income

Tax benefit

13) When you invest in mutual fund which mode of investment would
you prefer?

One time investment

Systematic Investment Plan (SIP)

62
14) Are you satisfied by service of the company’s employee/people
behavior?

Highly satisfactory

Satisfactory

Average

Dissatisfactory

Highly dissatisfactory

15) Do you know the various mutual fund schemes provided by HDFC?

Yes

No

63