PROJECT REPORT

ON
“ MUTUAL FUND”
BACHELOR OF BANKING AND INSURANCE
SEMESTER – V

SUBMITTED TO
In partial fulfullment of the requirment for the award of
DEGREE Of BACHELOR OF BANKING AND
INSURANCE

SUBMITTED BY
RUSHIKESH PAWAR
ROLL NO. 171524

VEDANTA COLLEGE OF MANAGEMENT AND

INFROMATION TECHNOLOGY
ULHASNAGAR 03.
 VEDANTA college of Management
& information technology
Vithalwadi Railway Station Road, Vithalwadi (W) Ulhasnagar 421003, Ph: 0251-2705865

CERTIFICATE
This is to certify that RUSHIKESH KALURAM
PAWAR has satisfactorily completed the project work on
MUTUAL FUND for partial fulfillment of the three year full
time course Bachelor of Banking and Insurance (Sem-V) of the
University Of Mumbai for the academic year 2017-18 under the
guidance of Prof. TANISH HAZARI.

Course coordinator

Internal Examiner

External Examiner Principal

 DECLARATION

I RUSHIKESH PAWAR student of VEDANTA COLLEGE OF

MANAGEMENT AND INFROMATION TECHNOLOGY studying

in THIRD YEAR of BACHELOR OF BANKING AND

INSURANCE hereby declare that I have completed the project on “

MUTUAL FUND” in the Academic year 2016-17.

The information submitted is true and original to the best of my

knowledge.

RUSHIKESH PAWAR
 ACKNOWLEGEMENT

The urge and need to complete this project successfully was not possible

without helping hands of people. I take this opportunity to thank all of

them who played a major role in completing this project.

I express my deep gratitude towards Prof. Tanish Hazari for

encouraging me to work on this project.

Finally, my heartfelt appreciations to all those who worked behind the

curtains to make this project a success.

 CONTENTS

SR No. Name of the concept

Introduction
Need of the study
I Objectives of the study
Scope of the study
Methodology of the study

II Review of Literature
III History of Mutual Fund
IV Types of Mutual Fund
V Impact of demonetization
VI List of Mutual Fund Companies
VII Findings, suggestion & Conclusion

VIII Questionnaire

IX
Bibliography
 I - INTRODUCTION

INTRODUCTION

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. 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 to 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.

The project idea is to project mutual funds as the better avenue for investment. Mutual fund is
productive package for a lay-investor with limited finances. Mutual fund is a very old practice in
U.S., and it has made a recent entry into India. Common man in India still finds ‘Bank’ as a safe
door for investment. This shows that mutual funds have not gained a strong foot-hold in his life.
The project creates an awareness that the mutual fund is worthy investment practice. The various
schemes of mutual funds provide the investor with a wide range of investment options according
to his risk-bearing capacities and interest. Besides, they also give a handy return to the investor.
The project analyses various schemes of mutual fund by taking different mutual fund schemes
from different AMC’S. The future challenges for mutual funds in India are also considered.
NEED OF THE STUDY

The study basically made to educate the investors about Mutual Funds. Analyze the various
schemes to highlight the risk and return of diversity of investment that mutual funds offer. Thus,
through the study one would understand how a common man could fruitfully convert a pittance
into great penny by wisely investing into the right scheme according to his risk- taking abilities.

A small investor is the one who is able to correctly plan & decide in which profitable & safe
instrument to invest. To lock up one’s hard earned money in a savings bank’s account is not
enough to counter the monster of inflation. Using simple concepts of diversification, power of
compound interest, stable returns & limited exposure to equity investment, one can maximize his
returns on investments & multiply one’s savings.
Investment is a serious proposition one has to look into various factors before deciding on the
instruments in which to invest. To save is not enough. One must invest wisely & get maximum
returns. One must plan investment in such a way that his investment objectives are satisfied. A
sound investment is one which gives the investor reasonable returns with a proper profitable
management
This report gives the details about various investment objectives desired by an investor, details
about the concept & working of mutual fund.

OBJECTIVES OF THE STUDY

• To understand the concept of Mutual Funds.

• To study the different Sectoral Mutual Funds in India.

• To analyse the performance of different sectoral mutual funds.

• To identify the best Sectoral Mutual Funds to invest in India.

• To suggest the best mutual funds for investors.

SCOPE OF THE STUDY

Now a days, there is a lot of scope for the mutual funds. The Financial managers have to decide
whether to invest in the Shares, bonds, debentures, real estate, gold and other Commodities to
get the maximum benefits for funds. The financial managers
should also reduce the risk from the Investments. The scope of the study is confirmed to the
sectoral funds available in Indian mutual funds.

RESEARCH METHODOLOGY

In the present project work the data as been collected from available source that is
secondary data like websites, Newspapers and magazines. The sample size taken is of 7 different
sectoral funds
Sampling Design

Sampling method use is non probabilistic judgmental sampling. The Mutual Fund
Scheme for the study have been selected based on following 3 criteria
1 Type of the scheme Open-ended Sectoral Funds(growth)

2 Minimum Assets Under Mgmt. Rs. 500 Crore

3 Inception Date Prior to 1st April, 2006
Growth option for the entire selected scheme has been considered.

Research Design

1. Benchmark Index: For this study the 50 shares market index S&P CNX NIFTY has
been used as the market index.
 II- REVIEW OF LITERATURE

Mutual Funds:

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is invested by the fund manager in
different types of securities depending upon the objective of the scheme. These could
range from shares to debentures to money market instruments. The income earned
through these investments and the capital appreciations realized by the scheme are shared
by its unit holders in proportion to the number of units owned by them (pro rata). 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 portfolio at a relatively low
cost. Anybody with an investible surplus of as little as a few thousand rupees can invest
in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and
strategy.
A mutual fund is the ideal investment vehicle for today’s complex and modern financial
scenario. Markets for equity shares, bonds and other fixed income instruments, real estate,
derivatives and other assets have become mature and information driven. Price changes in
these assets are driven by global events occurring in faraway places. A typical individual is
unlikely to have the knowledge, skills, inclination and time to keep track of events,
understand their implications and act speedily. An individual also finds it difficult to keep
track of ownership of his assets, investments, brokerage dues and bank transactions etc.
A mutual fund is the answer to all these situations. It appoints professionally qualified and
experienced staff that manages each of these functions on a full time basis. The large pool
of money collected in the fund allows it to hire such staff at a very low cost to each
investor.
In effect, the mutual fund vehicle exploits economies of scale in all three areas - research,
investments and transaction processing. While the concept of individuals coming together to
invest money collectively is not new, the mutual fund in its present form is a 20th century
phenomenon.

In fact, mutual funds gained popularity only after the Second World War. Globally, there are
thousands of firms offering tens of thousands of mutual funds with different investment
objectives. Today, mutual funds collectively manage almost as much as or more money as
compared to banks.
A draft offer document is to be prepared at the time of launching the fund. Typically, it pre
specifies the investment objectives of the fund, the risk associated, the costs involved in the
process and the broad rules for entry into and exit from the fund and other areas of operation. In
India, as in most countries, these sponsors need approval from a regulator, SEBI (Securities
exchange Board of India) in our case. SEBI looks at track records of the sponsor and its financial
strength in granting approval to the fund for commencing operations.
A sponsor then hires an asset management company to invest the funds according to the
investment objective. It also hires another entity to be the custodian of the assets of the fund and
perhaps a third one to handle registry work for the unit holders (subscribers) of the fund.
In the Indian context, the sponsors promote the Asset Management Company also, in which it
holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset Management
Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset
Management Company Ltd., which has floated different mutual funds schemes and also acts as
an asset manager for the funds collected under the schemes
 III - History of Mutual Fund in India
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 the. The history of mutual funds in India
can be broadly divided into four distinct phases

First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up 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.6,700crores 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
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.47,004crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 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.
The number of mutual fund houses went on increasing, with many foreign mutual funds setting
up funds in India and also the industry has witnessed several mergers and acquisitions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805crores. The
Unit Trust of India with Rs.44,541crores of assets under management Pioneer (now merged with
Franklin Templeton) was the first private sector mutual fund was way ahead of other mutual
funds.

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.29,835crores as at the end of January 2003, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of
Unit Trust of India, functioning under an administrator and under the rules framed by
Government of India and does not come under the purview of the Mutual Fund Regulations.
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. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs.76,000crores of assets under management
and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund
Regulations, and with recent mergers taking place amongdifferent private sector funds, the
mutual fund industry has entered its current phase of consolidation and growth. As at the end of
March, 2006, there were 29 funds.
Future Scenario

The asset base will continue to grow at an annual rate of about 30 to 35 % over the next few
years as investor’s shift their assets from banks and other traditional avenues. Some of the older
public and private sector players will either close shop or be taken over.

Out of ten public sector players five will sell out, close down or merge with stronger players in
three to four years. In the private sector this trend has already
Started with two mergers and one takeover. Here too some of them will down their shutters in
the near future to come.
But this does not mean there is no room for other players. The market will witness a flurry of
new players entering the arena. There will be a large number of offers from various asset
management companies in the time to come. Some big names like Fidelity, Principal, Old
Mutual etc. are looking at Indian market seriously. One important reason for it is that most major
players already have presence here and hence these big names would hardly like to get left
behind.
The mutual fund industry is awaiting the introduction of derivatives in India as this would enable
it to hedge its risk and this in turn would be reflected in its Net Asset Value (NAV).
SEBI is working out the norms for enabling the existing mutual fund schemes to trade in
derivatives. Importantly, many market players have called on the Regulator to initiate the process
immediately, so that the mutual funds can implement the changes that are required to trade in
Derivatives.

Recent trends in mutual fund industry

The most important trend in the mutual fund industry is the aggressive expansion of the foreign
owned mutual fund companies and the decline of the companies floated by nationalized banks
and smaller private sector players.
Many nationalized banks got into the mutual fund business in the early nineties and got off to a
good start due to the stock market boom prevailing then. These banks did not really understand
the mutual fund business and they just viewed it as another kind of banking activity.
Few hired specialized staff and generally chose to transfer staff from the parent organizations.
The performance of most of the schemes floated by these funds was not good. Some schemes
had offered guaranteed returns and their parent organizations had to bail out these AMCs by
paying large amounts of money as the difference between the guaranteed and actual returns.
The service levels were also very bad. Most of these AMCs have not been able to retain staff,
float new schemes etc. and it is doubtful whether, barring a few exceptions, they have serious
plans of continuing the activity in a major way. The experience of some of the AMCs floated by
private sector Indian companies was also very similar. They quickly realized that the AMC
business is a business, which makes money in the long term and requires deep-pocketed support
in the intermediate years. Some have sold out to foreign owned companies, some have merged
with others and there is general restructuring going on.
The foreign owned companies have deep pockets and have come in here with the expectation of
a long haul. They can be credited with introducing many new practices such as new product
innovation, sharp improvement in service standards and disclosure, usage of technology, broker
education and support etc. In fact, they have forced the industry to upgrade itself and service
levels of organizations like UTI have improved dramatically in the last few years in response to
the competition provided by these.
IV -Types of Mutual Fund
Mutual fund schemes may be classified on the basis of its structure and its investment objective.

By Structure:

Open-ended Funds
An open-end fund is one that is available for subscription all through the year. These do not have
a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV")
related prices. The key feature of open-end schemes is liquidity.

Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years.
The fund is open for subscription only during a specified period. Investors can invest in the
scheme at the time of the initial public issue and thereafter they can buy or sell the units of the
scheme on the stock exchanges where they are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to the Mutual Fund
through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one
of the two exit routes is provided to the investor.

Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They are open for
sale or redemption during pre-determined intervals at NAV related prices.

Equity funds
An equity fund is a type of mutual fund that invest money primarily in stocks. There are both
actively or passively managed funds.
Debt funds
A debt fund is a type of Mutual Fund that invests in fixed-income securities. Under this fund,
your money will be invested in short-term bonds, long-term bonds, securitized funds, floating
rate debt, and money market instruments.
Diversified Funds
This type of Mutual Fund allows you to invest your money in diverse sector or industries. You
can spread your investment across various industries in the market.
Gilt funds
These funds allocate money to securities that are offered by the state and central governments.
These funds come without any default risk.
Liquid Mutual Funds
Liquid Mutual Funds are investment plans that will allocate funds primarily money market
instruments such as treasury bills, Term deposits, certificate of deposits, commercial papers, etc.
These funds come with a lower maturity period.

By Investment Objective:-

Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to longterm. Such
schemes normally invest a majority of their corpus in equities. It has been proven that returns
from stocks, have outperformed most other kind of investments held over the long term. Growth
schemes are ideal for investors having a long-term outlook seeking growth over a period of time.

Income Funds
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 and Government
securities. Income Funds are ideal for capital stability and regular income.

Balanced Funds
The aim of balanced funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents. In a rising stock market, the NAV
of these schemes may not normally keep pace, or fall equally when the market falls. These are
ideal for investors looking for a combination of income and moderate growth.
Money Market Funds
The aim of money market funds is 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. Returns on these schemes
may fluctuate depending upon the interest rates prevailing in the market. These are ideal for
Corporate and individual investors as a means to park their surplus funds for short periods.

Load Funds
A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or
sell units in the fund, a commission will be payable. Typically entry and exit loads range from
1% to 2%. It could be worth paying the load, if the fund has a good performance history.

No-Load Funds
A No-Load Fund is one that does not charge a commission for entry or exit. That is, no
commission is payable on purchase or sale of units in the fund. The advantage of a no load fund
is that the entire corpus is put to work.

Other Schemes:-

Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the Indian Income
Tax laws as the Government offers tax incentives for investment in specified avenues.
Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed
as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to
investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the
capital asset has been sold prior to April 1, 2000 and the amount is invested before September
30, 2000.
Special Schemes

• Industry Specific Schemes

Industry Specific Schemes invest only in the industries specified in the offer document. The
investment of these funds is limited to specific industries like InfoTech, FMCG, and
Pharmaceuticals etc.

• Index Schemes

Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or
the NSE 50

• Sectoral Schemes

Sectoral Funds are those, which invest exclusively in a specified industry or a group of industries
or various segments such as 'A' Group shares or initial public offerings.

• Commodities Funds
Commodities funds specialize in investing in different commodities directly or through
commodities future contracts. Specialized funds may invest in a single commodity or a
commodity group such as edible oil or rains, while diversified commodity funds will spread their
assets over many commodities
Benefits of Mutual Fund investment

1. Professional Management:
Mutual Funds provide the services of experienced and skilled professionals, backed by a
dedicated investment research team that analyses the performance and prospects of
companies and selects suitable investments to achieve the objectives of the scheme.

2. Diversification:
Mutual Funds invest in a number of companies across a broad cross-section of industries and
sectors. This diversification reduces the risk because seldom do all stocks decline at the same
time and in the same proportion. You achieve this diversification through a Mutual Fund
with far less money than you can do on your own.

3. Convenient Administration:
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as
bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds
save your time and make investing easy and convenient.

4. Return Potential:
Over a medium to long-term, Mutual Funds have the potential to provide a higher return as
they invest in a diversified basket of selected securities.

5. Low Costs: Mutual Funds are a relatively less expensive way to invest compared to
directly investing in the capital markets because the benefits of scale in brokerage,
custodial and other fees translate into lower costs for investors.
6. Liquidity:
In open-end schemes, the investor gets the money back promptly at net asset value related
prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock
exchange at the prevailing market price or the investor can avail of the facility of direct
repurchase at NAV related prices by the Mutual Fund.

7. Transparency:
Investors get regular information on the value of your investment in addition to disclosure on
the specific investments made by the scheme, the proportion invested in each class of assets
and the fund manager's investment strategy and outlook.

8. Flexibility:
Through features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans, one can systematically invest or withdraw funds according to your needs
and convenience.

9. Affordability:
Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual
fund because of its large corpus allows even a small investor to take the benefit of its
investment strategy
10.Well Regulated:

All Mutual Funds are registered with SEBI and they function within the provisions of strict
regulations designed to protect the interests of investors. The operations of Mutual Funds are
regularly monitored by SEBI.
Limitation of Mutual Fund Investment

1. No Control Over Cost:

An Investor in mutual fund has no control over the overall costs of investing. He pays an
investment management fee (which is a percentage of his investments) as long as he remains
invested in fund, whether the fund value is rising or declining. He also has to pay fund
distribution costs, which he would not incur in direct investing.

However this only means that there is a cost to obtain the benefits of mutual fund services.
This cost is often less than the cost of direct investing.

2. No Tailor-Made Portfolios:

Investing through mutual funds means delegation of the decision of portfolio composition to
the fund managers. The very high net worth individuals or large corporate investors may find
this to be a constraint in achieving their objectives.
However, most mutual funds help investors overcome this constraint by offering large no. of
schemes within the same fund.
3. Managing A Portfolio Of Funds:

Availability of large no. of funds can actually mean too much choice for the investors. He
may again need advice on how to select a fund to achieve his objectives.
AMFI has taken initiative in this regard by starting a training and certification program for
prospective Mutual Fund Advisors. SEBI has made this certification compulsory for every
mutual fund advisor interested in selling mutual fund.
4. Taxes:

During a typical year, most actively managed mutual funds sell anywhere from 20 to 70
percent of the securities in their portfolios. If your fund makes a profit on its sales, you will
pay taxes on the income you receive, even if you reinvest the money you made.

5. Cost of Churn:

The portfolio of fund does not remain constant. The extent to which the portfolio changes is
a function of the style of the individual fund manager i.e. whether he is a buy and hold type
of manager or one who aggressively churns the fund. It is also dependent on the volatility of
the fund size i.e. whether the fund constantly receives fresh subscriptions and redemptions.
Such portfolio changes have associated costs of brokerage, custody fees etc. which lowers
the portfolio return commensurately.

6. No Control Over Cost:

An Investor in mutual fund has no control over the overall costs of investing. He pays an
investment management fee (which is a percentage of his investments) as long as he remains
invested in fund, whether the fund value is rising or declining. He also has to pay fund
distribution costs, which he would not incur in direct investing.

However this only means that there is a cost to obtain the benefits of mutual fund services.
This cost is often less than the cost of direct investing.

7. No Tailor-Made Portfolios:

Investing through mutual funds means delegation of the decision of portfolio composition to
the fund managers. The very high net worth individuals or large corporate investors may find
this to be a constraint in achieving their objectives.
However, most mutual funds help investors overcome this constraint by offering large no. of
schemes within the same fund.
8. Managing A Portfolio Of Funds:

Availability of large no. of funds can actually mean too much choice for the investors. He
may again need advice on how to select a fund to achieve his objectives.
AMFI has taken initiative in this regard by starting a training and certification program for
prospective Mutual Fund Advisors. SEBI has made this certification compulsory for every
mutual fund advisor interested in selling mutual fund.

9. Taxes:

During a typical year, most actively managed mutual funds sell anywhere from 20 to 70
percent of the securities in their portfolios. If your fund makes a profit on its sales, you will
pay taxes on the income you receive, even if you reinvest the money you made.

10.Cost of Churn:

The portfolio of fund does not remain constant. The extent to which the portfolio changes is
a function of the style of the individual fund manager i.e. whether he is a buy and hold type
of manager or one who aggressively churns the fund. It is also dependent on the volatility of
the fund size i.e. whether the fund constantly receives fresh subscriptions and redemptions.
Such portfolio changes have associated costs of brokerage, custody fees etc. which lowers
the portfolio return commensurately.
TIPS FOR MUTUAL FUND INVESTORS: (SUGGESTIONS)
These are the few exact as regards investment in MF’s taken from the book with “Marketing for
the 90’s” given by the Wall Street.
1. Check your letter of offer of funds prospectus to guard yourselves against any hidden fees.
2. Ensue that the funds track record is the same as that of the current management

3. Avoid MF’s that charge exit fees at he back end door (fee s charged by MF from the unit
holders at he time to redemption of the units.)
4. Buy the funds with no sale charged loads.(a load is a charge by the fund when investor buys
it is called the entry load or when he sells is called the exit load.)
5. If the charge it’s heavy by the M F to discourage the investors from taking short positions in
the funds units because too many investors sell their units at a time then the fund has to sell
its holdings to meet the obligations that yield into vital of the fines overall return. Most short
funds like guilt funds (these are the funds the invest only in government securities and
treasury bills thus the investors have an opportunities to buy risk free securities). These funds
yield a better return than a money market fund. It is good for the investors who desire safety
of principal amount). Money market funds (these funds in views in money market
instruments such as treasury bills, govt. bonds, certificates of bank deposits, commercial
deposits). They charge no loads, however loads are limited by SEBI to 7%.

6. Check fund’s performance in bear as well a the bull market.

7. Guard fund risk by checking its portfolio for diversification volatility.

 V-Impact of demonetization on Mutual Funds
On Nov 8, 2016, the Indian government declared that all the 500 and 1000 rs notes will cease to
be legal tender from next day. The bold step, meant to remove the fake currency and clean up the
black money, had many expected and unexpected effects on the overall economy. These
economical developments can be observed to predict the impact of demonetization on mutual
funds in India.

 Banks got 11.5 lakhcrore deposited within 4 weeks.

 Most of the banks reduced FD interest rates by 25-50 basis points
 Overall liquidity got reduced by 7.5 lakh crore
 Retailers who were accepting the old currency saw a surge in sales whereas the ones who are not
accepting saw a sharp decline
 Business activity across country slowed down
What is expected to happen as a result –

 Interest rates are expected to lower down by 1-2% in next 3-12 months
 Inflation is expected to go down by almost 2% in next 1 year
 Growth rate is expected to go down to 5-6% from current ~7.5%
The impact of demonetization on the overall economy is well summarized here. At a sector level,
the demonetization impact is expected to be

Demonetization impact on mutual funds

Let’s see how demonetization is likely to impact the growth of the various categories of Mutual
Funds.

Large Cap Funds

Portfolio – invests in a diversified basket of equity stocks of companies whose market

capitalization is at least equal to or more than the least market capitalized stock of BSE 100
Index.

Expected impact: Slightly Negative in short term, but positive in long term
Since the growth rate is expected to come down for next 1-2 years, this would reflect in the
overall performance of Large Cap stocks. In long term, the demonetization impact on India
growth story is very positive.

Birla Sun Life Treasury Optimizer Plan

This fund has performed consistently in past 3-5 years giving 10-12 % annualized. Average
maturity is ~5 years whereas Yield to maturity is ~7.6%. Composition consists of ~ 40% is SOV
and ~30% AAA.
 Someother small investment saving instruments compared with Mutual Fund

 National saving certificate(NSC)

Features of National Saving Certificate

1. No maximum limit for investment with 0% tax deduction at source.

2. Impressive interest rate at 8.50% (NSC-VIII issue) and 8.80% (NSC-IX issue).
3. Tax savings per 80C of Income Tax Act for investments in excess of Rs.1,00,000 per annum.
4. Very attractive returns, a nominal investment of Rs.100 will yield Rs.234.35 in 10 years.
5. These certificates can be transferred from person to another once through the lifetime of the
certificate.
6. The tenure of an NSC portfolio is 5 and 10 years for the NSC VIII Issue and NSC IX Issue
respectively.
7. The interest accumulated annually is reinvested in line with the provisions of Section 80C of
IT Act. Interest compounded on a half-yearly basis.
8. Can be used as collateral when applying for a bank loan.

 National Saving Scheme(NSS)

Features of National Saving Scheme

1. Income tax exemption on principal amount as well as earned interest upto Rs.9,000.
2. Interest compounded annually.
3. Cannot be pledged as security when applying for any bank loan.
4. Impressive interest rate of 9% per annum.
5. The tenure of an NSS portfolio is four years.

 Public Provident Fund (PPF)

A potent financial instrument that is tuned at savings in general and tax savings in particular,
the PPF concept was floated by the National Savings Institute, Finance Ministry of India, in
1968. The PPF scheme offers a plethora of features and benefits that make it a popular option
in its class.
1. Interest rate of 8.70% p.a is compounded annually.
2. Minimum yearly investment of just Rs.500 to a maximum of Rs.1,50,000.
3. The maturity period of a PPF account is 15 years. However, this can be extended for upto 5
additional years.
4. A maximum of 12 deposits can be made in a financial year. Lump sum payments are also an
option.
5. Joint accounts aren’t possible, plus, PPF accounts cannot be closed before the maturity period.
6. PPF accounts can be moved from one bank/post-office to another.
7. Accumulated interest is completely tax free.
8. PPF accounts save tax under Sec. 80C of the IT Act.
9. Applicant can avail loan with the PPF account as collateral from the 3rd financial year.
  Post Office Saving Scheme

In the Indian context, the legendary Indian Postal system has always played a key role in helping
inculcate the habit of financial savings amongst the Indian public. The local post office is seen as
more approachable (especially amongst the semi-urban and rural folks) and more customer
friendly in terms of higher returns and limited inherent procedures. The Post Office Saving
Schemes include a plethora of products that offer the reliability associated with a government
run savings portfolio, and the full-scale treatment that is characteristic of most high-end saving
and investment schemes in India. A fair list of such products are as follows-

1. Post Office Savings Account

2. 5 Years Post Office Recurring Deposit Account
3. Post Office Time Deposit Account
4. Post Office Monthly Income Account Scheme
5. Senior Citizens Saving Scheme
6. 15 Years Public Provident Fund Account
7. National Savings Certificates (NSC)- 5 Years NSC (VIII Issue) and 10 Years NSC (IX Issue)
8. KisanVikasPatra (KVP)
9. SukanyaSamriddhi Account

 KisanVikasPatra (KVP)

First launched in 1988, the KisanVikasPatra (KVP) is one of the premier and popular saving
scheme offering from the Indian Postal Department. This product has had a very chequered
history- initially successful, deemed a product that could be misused and thus terminated in
2011, followed by a triumphant return to prominence and popular consumption in 2014. The
salient features of KVP are as follows-

1. The grand USP- Money invested by the applicant doubles in 100 months (8 years, 4 months).
2. KVPs are available in the following denominations- Rs.1000, Rs.5000, Rs.10,000 and
Rs.50,000.
3. The minimum purchase value for the KVP is Rs.1000. There is no maximum limit.
4. KVPs are available at all departmental post offices across India.
5. These certificates can be prematurely encashed after 2 ½ years from the point of issue.
6. KVPs can be transferred from one individual to another and from one post office to another.
Mutual Fund Helps to Diversify Investors Money

One rule of investing, for both large and small investors, is asset diversification. Diversification
involves the mixing of investments within a portfolio and is used to manage risk. For example,
by choosing to buy stocks in the retail sector and offsetting them with stocks in the industrial
sector, you can reduce the impact of the performance of any one security on your entire portfolio.
To achieve a truly diversified portfolio, you may have to buy stocks with
different capitalizations from different industries and bonds with varying maturities from
different issuers. For the individual investor, this can be quite costly.

By purchasing mutual funds, you are provided with the immediate benefit of instant
diversification and asset allocation without the large amounts of cash needed to create individual
portfolios. One caveat, however, is that simply purchasing one mutual fund might not give you
adequate diversification - check to see if the fund is sector or industry specific. For example,
investing in an oil and energy mutual fund might spread your money over fifty companies, but if
energy prices fall, your portfolio will likely suffer.

The Bottom Line

As with any investment, there are risks involved in buying mutual funds. These investment
vehicles can experience market fluctuations and sometimes provide returns below the overall
market. Also, the advantages gained from mutual funds are not free: many of them carry loads,
annual expense fees and penalties for early withdrawal.
Investor looks out for information on mutual funds

Almost all the mutual funds have their own web sites where you can access information on their
schemes, NAVs, half-yearly results and portfolios.

Association of Mutual Funds in India (AMFI), the mutual fundindustry body, runs its website
www.amfiindia.com. You can visit this website to learn more about mutual funds, check out
details about various funds, download various forms related to the industry.

In India, two ministries - finance and corporate affairs - are responsible for having a safe market
place. Of these, the ministry of corporate affairs takes the pivotal role in making investors aware
of their rights and duties. You can go to the ministry's website at www.mca.gov.in and click on
'Investor Services', and as per your interest select the sites linked to it. Links to several useful
sites are available here which are related to educating investors, making them aware of their
rights and duties, addressing investor grievances etc.

Another website managed by the ministry is watchoutinvestors.com, a very useful national web-
based registry, lists entities like companies, intermediaries and individuals indicted for economic
defaults, have been non-compliant of laws and guidelines or are no longer in the specified
activity - that is among the scores of vanishing companies.

The regulator for the mutual fund and stock markets is Securities and Exchange Board of India,
in short Sebi. Here, one of the most used sections is 'Investor Complaints', and when you click on
it, it will take you directly to scores.gov.in, a site maintained by the regulator itself.
 VI-LIST OF MUTUAL FUND COMPANIES OF INDIA

( Asset Management Company) Website of the AMC

Axis Asset Management Company Ltd. www.axismf.com
Baroda Pioneer Asset Management Company Ltd www.barodapioneer.in
Birla Sun Life Asset Management Company Ltd www.birlasunlife.com
BNP Paribas Asset Management India Pvt Ltd www.bnpparibasmf.in
BOI AXA Investment Managers Pvt Ltd www.boiaxa-im.com
CanaraRobeco Asset Management Company Ltd www.canararobeco.com
Daiwa Asset Management (India) Pvt Ltd www.daiwafunds.in
Deutsche Asset Management (India) Pvt. Ltd. www.dws-india.com
DSP BlackRock Investment Managers Pvt. Ltd. www.dspblackrock.com
Edelweiss Asset Management Ltd www.edelweissmf.com
Escorts Asset Management Ltd www.escortsmutual.com
FIL Fund Management Private Ltd fidelity.co.in
Franklin Templeton Asset Management (India) Pvt Ltd. www.franklintempletonindia.com
Goldman Sachs Asset Management (India) Pvt Ltd. www.gsam.in
HDFC Asset Management Company Ltd www.hdfcfund.com
HSBC Asset Management (India) Pvt. Ltd. www.assetmanagement.hsbc.com/in
ICICI Prudential Asset Management Company Ltd www.icicipruamc.com
IDBI Asset Management Ltd. www.idbimutual.co.in
IDFC Asset Management Company Ltd www.idfcmf.com
India Infoline Asset Management Co. Ltd. www.iiflmf.com
Indiabulls Asset Management Company Ltd. www.indiabullsmf.com
ING Investment Management (India) Pvt. Ltd. www.ingim.co.in
JM Financial Asset Management Pvt Limited www.jmfinancialmf.com
JPMorgan Asset Management India Pvt. Ltd. www.jpmorganmf.com
Kotak Mahindra Asset Management Company Ltd. www.kotakmutual.com
L&T Investment Management Ltd. www.lntmf.com
LIC NOMURA Mutual Fund Asset Management Company Ltd. www.licnomuramf.com
Mirae Asset Global Investments (India) Pvt. Ltd. www.miraeassetmf.co.in
Morgan Stanley Investment Management Pvt.Ltd. www.morganstanley.com/indiamf
MotilalOswal Asset Management Company Ltd. www.motilaloswal.com/
Peerless Funds Management Co. Ltd. www.peerlessmf.co.in
Pine Bridge Investments Asset Management Company (India)
www.aiginvestments.co.in
Pvt. Ltd.
Pramerica Asset Managers Private Ltd www.pramericamf.com
Principal PNB Asset Management Co. Pvt. Ltd. www.principalindia.com
Quantum Asset Management Company Private Ltd. www.QuantumAMC.com
Reliance Capital Asset Management Ltd. www.reliancemutual.com
Religare Asset Management Company Private Ltd. www.religaremf.com
Sahara Asset Management Company Private Ltd www.saharamutual.com
SBI Funds Management Private Ltd. www.sbimf.com
Sundaram Asset Management Company Ltd www.sundarammutual.com
Tata Asset Management Ltd www.tatamutualfund.com
Taurus Asset Management Company Ltd www.taurusmutualfund.com
Union KBC Asset Management Company Pvt Ltd www.unionkbc.com
UTI Asset Management Company Ltd www.utimf.com
 INTRODUCTION OF MUTUAL FUND IN SBI

SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record
in judicious investments and consistent wealth creation.

The fund traces its lineage to SBI - India’s largest banking enterprise. The institution has grown
immensely since its inception and today it is India's largest bank, patronized by over 80% of the
top corporate houses of the country.

SBI Mutual Fund is a joint venture between the State Bank of India and Society General Asset
Management, one of the world’s leading fund management companies that manages over
US$ 500 Billion worldwide.
SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country with an investor
base of over 5.8 million. With over 20 years of rich experience in fund management, SBI MF
brings forward its expertise in consistently delivering value to its investors. SBI MF draws its
strength from India's Largest Bank State Bank of India and Society General Asset Management,
France.
Comparison with Other Investment Avenues
TAX
Investment
Liquidity Safety Returns Volatility CONVENIENCE
Avenues
BENEFIT

Fixed Deposits Low Low Moderate Low No Moderate

Moderate
Equity shares Low Uncertain High No Moderate
to high

Co.Debenture Low Moderate Moderate Moderate No Low

Co. Deposit Low Moderate Low Low No Low

Life Insurance Low High Low Low Yes Moderate

Mutual Funds
High Moderate Moderate High No High
(Open ended)

Mutual Funds
High Moderate Moderate High Yes High
(close ended )

RBI Bonds Moderate High Moderate Low Yes Moderate

Bank Fixed
High High Low Low No High
Deposit

PPF Low High Moderate Low Yes Moderate

Post Office High High Good Low Yes Moderate

NSC Low High Moderate Low Yes Moderate

Gold High High Moderate Moderate No High

Infrastructure
Moderate High Moderate Low No Low
Bonds

Real Estate Low Moderate Variable High Yes High

Public sec. & FII

Moderate High Moderate Moderate No High
Bonds

National Savings
Low High Moderate Low Yes Moderate
Certificate
 Birla Sun Life Mutual Fund

Birla Sun Life Asset Management Company Limited, the investment manager of Birla Sunlife
Mutual Fund, is a joint venture between the Aditya Birla Group and Sun Life Financial Services,
leading international financial services organization.

Established in 1994, Birla Sunlife AMC provides investors a range of 18 investment options,
which include diversified and sector specific equity schemes, a wide range of debt and treasury
products, and two offshore funds.

Both the sponsors have equal stakes in the AMC. In recognition to its high quality investment
products, Birla Sun Life Asset Management Company became India's first asset management
company to be awarded the coveted ISO 9001:2000 certification by DNV Netherlands.

No. of schemes 71
No. of schemes including options 219
Gilt Fund 16
Equity Schemes 64
Debt Schemes 106
Short term debt Schemes 17
Equity & Debt 10
Money Market 0

Corpus Under Management: Rs.49983.17 Crs. as on Feb 28, 2009

Key Personnel: Mr. Donald Stewart (Chairman), A Balasubramanian (CEO), Ashok Suvarna
(COO), AbhayPalnitkar (CFO), Sanjay Singal (CMO), Bhavdeep Bhatt (Head Products).
 For Performance Comparison we take three Mutual Fund Schemes of Company:
 Birla Sun Life Equity Fund (Growth)
 Birla Sun Life Income Fund (Growth)
 Birla Sun Life Tax Plan (Growth)

The Monthly NAV & Returns of above three Mutual Fund Schemes as Follows:-
1. Birla Sun Life Equity Fund (Growth)

Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Annual

2017 13.7 4.6 - - -
2016 -2.6 9.4 14.3 -7.6 16.0
2015 5.3 -3.3 -0.1 -0.3 3.7
2014 8.0 29.3 2.4 9.3 57.3
2013 -9.8 -0.4 -0.8 15.7 6.0
 Kotak Mahindra Mutual Fund

The fund is promoted by Kotak Mahindra Bank, one of India's leading financial institutions that
offer financial solutions ranging from commercial banking, stock broking, life insurance and
investment banking. Kotak Mahindra Asset Management Company Limited, a wholly owned
subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra mutual fund.
The company is headed by UdayKotak of Kotak Bank as chairman and the fund management
function is headed bySandeshKirkire, chief executive officer. Kotak Mahindra mutual fund
launched its schemes in December 1998 and today manages assets of 4, 34,504 investors in
various schemes. Kotak Mahindra mutual fund was the first fund house in the country to launch
a dedicated gilt scheme investing only in government securities.

No. of schemes 50
No. of schemes including options 119
Equity Schemes 22
Debt Schemes 74
Short term debt Schemes 8
Equity & Debt 1
Money Market 0
Gilt Fund 7

Corpus Under Management: Rs.36776.2375 Crs. as on May 31, 2010

Key Personnel:Uday S Kotak (Chairman), SandeshKirkire (CEO), Alroy Lobo (Chief Strategist
& Global Head Equities Asset Mgmt), V R Narasimhan (CCO), R. Krishnan (COO,
SandeepKamath (Compliance), R. Chandrasekaran (IRO)
Escorts Mutual Fund

Escorts Mutual Fund is promoted by the business conglomerate Escorts group. Escorts Asset
Management Limited acts as the AMC to the mutual fund. Escorts Mutual Fund usually offers
open ended schemes and the fund category is Equity- balanced fund.
The fund is a member of the Escort Group of Companies, which deals with a number of high
growth industries like construction and material handling equipment, farm machinery, two
wheelers, auto ancillary products and financial Services.
No. of schemes 13
No. of schemes including options 30
Equity Schemes 13
Debt Schemes 7
Short term debt Schemes 4
Equity & Debt 4
Money Market 0
Gilt Fund 2

Corpus Under Management: Rs.195.75 Crs. as on May 31, 2010 Key Personnel: Rajan
Nanda (Chairman & MD), Lalit K Khanna (CEO & Compliance), SanjayArora (CIO), Mohini
Sharma (IRO).

Fund Managers: Mr. Jagveer Singh Fauzdar , Mr. Sanjeev Sharma.

ICICI Prudential Mutual Fund

Prudential ICICI Mutual Fund is the largest private sector mutual fund in India with assets of
over Rs.34,119 crore under management as of Aug 2006.
The asset management company, Prudential ICICI Asset Management Company Limited, is a
joint venture between Prudential Plc, Europe's leading insurance company and ICICI Bank,
India's premier financial institution. Prudential Plc holds 55 per cent of the asset management
company and the balance by ICICI Bank.

No. of schemes 98
No. of schemes including options 317
Equity Schemes 59
Debt Schemes 213
Short term debt Schemes 23
Equity & Debt 4
Money Market 0
Gilt Fund 7

Corpus Under Management: Rs.68324.057017781 Crs. as on May 29, 2009

Key Personnel: Ms. ChandaKochhar (Chairman), Nimesh Shah (CEO & CIO), SupriyaSapre
(Compliance), KamaljeetSaini (IRO)
Reliance Mutual Fund

Reliance mutual fund, promoted by the Anil DhirubhaiAmbani (ADAG) group, is one of the
fastest growing mutual funds in India having doubled its assets over the last one year. In March,
2006, the Reliance mutual fund emerged as the largest private sector fund house in the country,
overtaking Prudential ICICI which has been holding that position for many years.
The sponsor of the fund is Reliance Capital Limited, the financial services arm of ADAG.
Reliance Capital Asset Management Limited, a wholly owned subsidiary of Reliance Capital
Limited, acts as the AMC to the fund. Directors of the company include Amitabh Jhunjhunwala,
a senior executive of ADAG.

No. of schemes 57

No. of schemes including options 185

Equity Schemes 60

Debt Schemes 100

Short term debt Schemes 15

Equity & Debt 2

Money Market 0

Gilt Fund 6
Corpus Under Management: Rs.109485.69 Crs. as on May 31, 2010
Key Personnel: SundeepSikka (CEO), MadhusudanKela (Hd-Equity), Rajesh Derhgawen
(Head HRD), HimanshuVyapak (Sales &Dist), MilindNesarikar (IRO).

Interpretation of the Funds Performance

Particular Average Return Sharp Index Ratio Rank
Reliance Equity Fund-Growth 4.3241 % 0.0831 II
Plan-(Growth Option)
Reliance Income Fund-Retail 0.5111 % -1.9719 III
Plan - Growth Plan - Growth
Reliance Tax Saver (ELSS) 5.9666 % 0.2613 I
Fund-Growth Plan- (Growth
Option)

Average Return
7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%
Reliance Equity Fund-Growth Reliance Income Fund-Retail Reliance Tax Saver (ELSS) Fund-
Plan-(Growth Option) Plan - Growth Plan - Growth Growth Plan- (Growth Option)
HDFC MUTUAL FUND

HDFC Mutual Fund has been one of the best performing funds in recent years. The sponsors of
the fund are housing finance major HDFC and British investment company Standard Life
Investments. The paid up capital of the AMC is Rs. 25.161 crore.

Standard Life is one of the better known investment companies in the UK. The company offers
pension fund management, money market funds and private equity among other products. The
Standard Life group has a history of over 175 years and has over $190 billion in assets under
management globally.

The trustee of the fund is HDFC Trustee Company Limited, a subsidiary of HDFC Limited. The
chairman of the board of trustees is Anil Kumar Hirjee, vice chairman of Bombay Burmah
Trading Corporation. Other members of the board include KekiMistry of HDFC and James Aird
of Standard Life.

The AMC, HDFC Asset Management Company Limited, is owned between HDFC and Standard
Life with HDFC holding slightly more than 50 per cent of the shares. The board of directors has
among its members Alexander Crombie of Standard Life, former head of Kodak India
HDhanrajgir, former head of BASF India P M Thampi, and Renu S Karnad of HDFC. The
management of the AMC is headed by MilindBarve, managing director.

In 2003, HDFC Asset Management Company took over the asset management business of
Zurich India Mutual Fund. Subsequently, all the schemes of Zurich Mutual Fund in India had
been transferred to HDFC Mutual Fund and renamed as HDFC schemes
TATA MUTUAL FUND

Promoted by the Tata group, Tata MF is one of the better known private sector funds in the
country. The fund has over Rs.14,198crore under its management as of February 2007. The
sponsors of the fund are Tata Sons Limited and Tata Investment Corporation Limited.

The trustee of the fund is Tata Trustee Company Private Limited. The board of trustees is headed
by former HLL chief S M Data as chairman. J N Godrej of Godrej & Boyce and IshaatHussain
of Tata Sons are also on the board of trustees. Tata Sons and Tata Investment Corporation hold
equal stakes in the trustee company.

The AMC, Tata Asset Management Limited, has F K Karavana of Tata Sons as its chairman.
Other directors include A R Gandhi of Tata Sons and former executive director of IMF, S
SMarathe. The management of the AMC is headed by VedPrakashChaturvedi, managing
director. Tata Sons holds a majority stake in the AMC with the balance being held by Tata
Investment Corporation.

Fund management of equity schemes is headed by S Sankaranarayanan and that of debt funds by
Murthy Nagarajan.
VII- FINDINGS & CONCLUSION

FINDINGS

Rate of Return: Among the funds selected, UTI Banking Sector fund has given the
maximum rate of returns (39%) in the last one year followed by Franklin FMCG (33%).
Reliance Diversified Power Sector fund with a return of (7.5%) stood last in the table.
Among the funds selected, Reliance Diversified Power has given the maximum rate of
returns (37%) in the last five years followed by Tata Infrastructure (24%). UTI
Transportation and Logistics with a return of (16.98%) stood last in the table.

Total Risk (Standard Deviation)

UTI Banking Sector fund has the maximum standard deviation of 6.92 while

Franklin FMCG has the least standard deviation of 2.96

Systematic Risk (Beta) and Co - relation

UTI Banking Sector fund has the maximum Beta of 1.08 while UTI

Transportation and Logistics has the least Beta of 0.55.

UTI Banking Sector fund has the maximum co-relation of 1.07 while Franklin

FMCG has the least R-Squared of 0.65

Treynor& Sharpe Ratio:

UTI Banking Sector Fund has the maximum Treynor ratio of -0.19 while Reliance
Diversified fund has the least Treynor ratio of -0.85.
Franklin Infotech has the least Sharpe Ratio of -0.15 while ICICI Prudential Services has
the maximum sharpe ratio of 0.01
CONCLUSIONS

 Banking and FMCG sectors have fared well in the last one year and it is
suggested to invest in these sectors.

 It is advised to be keep away from infrastructure funds especially Reliance

Infrastructure fund.

 FMCG has the least risk and Banking has the highest risk among the sectors. It is
better to avoid Banking funds for people who want to avoid the risk.

 Investors who expect slow and steady returns are advised to for FMCG sector.

 UTI Banking Sector has a beta of greater than 1 (i.e market beta). This implies
that Banking Sector has a higher risk compared to the market portfolio.
 QUESTIONNAIRE

1. Where from you purchase mutual fund ?

Directly from the AMCs ( )

Brokers only ( )

Brokers/Sub-Brokers ( )

Other Sources ( )

2.In Which mutual fund you have invested?

A. SBI MF
B.UTI
C.HDFC
D .Reliance
E.ICICI Prudential funds
F. Other specify

3.When you invest in mutual fund which mode of investment will you prefer?

A. one time investment B. Systematic investment plan (SIP)

4.Which mutual funds scheme have you used?

Open-ended Close-ended

Liquid fund Mid cap

Growth fund Regular income fund

Long cap Sector fund

5.Have you ever invested your money in mutual fund?

Yes

No

6.In which kind of mutual you would like to invest?

Public ( ) Private ( )

7.while investing your money, which factor you prefer most? Any one

Liquidity Low Risk High Return Company Reputation

8.Which channel will you prefer while investing in mutual fund?

A. Financial Advisor

B. Bank

C. AMC
9.If yes, How did you know about mutual fund?

A. Advertisement

B. Peer Group

C. Banks

D. Financial Advisor

10. If invested in SBIMF , you do so because

A.SBIMF is Associated with state bank of India.

B.They have a record of giving good return year after year.

C. Agent’ Advice

11.If not invested in SBIMF, you do so because

A.You are not aware of SBIMF

B.SBIMF gives less return compared to others.

C.Agent Advice
VIII - BIBLIOGRAPHY

 www.Google.com
 www.money control.com
 www.wikipedia.com
 www.valueresearchonline.com