SUMMER Training REPORT

of
AXIS BANK

On Topic

“MUTUAL FUND”
In the partial fulfillment of requirements for the award of degree of
Bachelor of Business Administration

Session[2016-19]

Submitted by: Parveen Submitted to: Dr. Ajay Mittal

Class:BBA Final Year

Reg. no.1617460049
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 DECLARATION

I PARVEEN student of BBA 3rd year Hindu College, hereby declare that the research project report
entitled on “MUTUAL FUNDS” is an original research work and same has not been submitted to any other
institute for the award of other degree. A summer training project report was submitted on 4/10/ 2018 and
the suggestions as approved by the faculty were duly incorporated.

Signature of student
Parveen
1617460049 ..............................

FACULTY

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 Acknowledgement

I wish to express my gratitude to the management of AXIS BANK, for giving me an opportunity to be a part
of their esteem organization and enhance my knowledge by granting permission to do my summer training
project under their guidance.
I am grateful to Dr.Ajay Mittal ,my guide, for his invaluable guidance and cooperation during the course of
the project. He provided me with his assistance and support whenever needed that has been instrumental in
completion of this project.

I take this opportunity to express my sincere gratitude towards AXIS BANK, SONIPAT for giving me this
opportunity to complete my training.
I would also thank all the others Employee, of the AXIS BANK, for being extremely cooperative and
guiding me throughout my project.

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 EXECUTIVE SUMMARY

In few years Mutual Fund has emerged as a tool for ensuring one’s financial well being. Mutual Funds have
not only contributed to the India growth story but have also helped families tap into the success of Indian
Industry. As information and awareness is rising more and more people are enjoying the benefits of
investing in mutual funds. The main reason the number of retail mutual fund investors remains small is that
nine in ten people with incomes in India do not know that mutual funds exist. But once people are aware of
mutual fund investment opportunities, the number who decide to invest in mutual funds increases to as many
as one in five people. The trick for converting a person with no knowledge of mutual funds to a new Mutual
Fund customer is to understand which of the potential investors are more likely to buy mutual funds and to
use the right arguments in the sales process that customers will accept as important and relevant to their
decision.

This Project gave me a great learning experience and at the same time it gave me enough scope to
implement my analytical ability. The analysis and advice presented in this Project Report is based on market
research on the saving and investment practices of the investors and preferences of the investors for
investment in Mutual Funds. This Report will help to know about the investors’ Preferences in Mutual Fund
means Are they prefer any particular Asset Management Company (AMC), Which type of Product they
prefer, Which Option (Growth or Dividend) they prefer or Which Investment Strategy they follow
(Systematic Investment Plan or One time Plan). This Project as a whole can be divided into two parts.

The first part gives an insight about Mutual Fund and its various aspects, the Company Profile, Objectives of
the study, Channel Management and Research Methodology. One can have a brief knowledge about Mutual
Fund and its basics through the Project.

The second part of the Project consists of data and its analysis collected through survey done on 200 people.
For the collection of Primary data I made a questionnaire and surveyed of 200 people. I also taken interview
of many People those who were coming at the Axis Bank Branch where I done my Project. I visited other
AMCs to get some knowledge related to my topic. I studied about the products and strategies of other
AMCs to know why people prefer to invest in those AMCs. This Project covers the topic “Channel
Management Of Axis Mutual Fund And Analysing Preferences Of The Investors For Investment In Mutual

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Funds” The data collected has been well organized and presented. I hope the research findings and
conclusion will be of use.

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 TABLE OF CONTENTS

CHAPTER – 1 CONCEPT OF MUTUAL FUND

CHAPTER – 2 COMPANY PROFILE

CHAPTER – 3 OBJECTIVE

CHAPTER – 4 CHANNEL MANAGEMENT OF AXIS AMC

CHAPTER – 5 RESEARCH METHODOLOGY

CHAPTER –6 DATA PRESENTATION AND ANALYSIS

CHAPTER – 7 SUGGESTIONS AND RECOMMENDATIONS

CHAPTER – 8 LIMITATION AND SCOPE

CHAPTER – 9 CONCLUSION

CHAPTER – 10 BIBLIOGRAPHY

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 Chapter-1

MUTUAL FUND CONCEPT

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 appreciation realized is 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 flow chart below describes broadly the working of a mutual
fund:

The flow chart below describes broadly the working of a mutual fund:

A Mutual Fund is a trust that pools the savings of a number of investors who share common financial
goal; investments may be in shares, debt securities, money market securities or a combination of these.
Those securities are professionally managed on behalf of the unit-holders, and each investor holds a pro-rata
share of the portfolio i.e. entitled to any profits when the securities are sold, but subject to any losses in
value as well.

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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.
Reasons to invest in mutual funds :
 Expert on your side: When you invest in a mutual fund, you buy into the experience and skills of a
fund manager and an army of professional analysts

 Limited risk: Mutual funds are diversification in action and hence do not rely on the performance of
a single entity.

 More for less: For the price of one blue chip stock for instance, you could get yourself a number of
units across a number of companies and industries when you invest in a fund!

 Easy investing: You can invest in a mutual fund with as little as Rs. 5,000. Salaried individuals also
have the option of investing in a monthly savings plan. Convenience: You can invest directly with a
fund house, or through your bank or financial adviser, or even over the internet.

 Investor protection: A mutual fund in India is registered with SEBI, which also monitors the
operations of the fund to protect your interests.

 Quick access to your money: It's good to know that should you need your money at short notice, you
can usually get it in four working days.

 Transparency: As an investor, you get updates on the value of your units, information on specific
investments made by the mutual fund and the fund manager's strategy and outlook.

 Low transaction costs: A mutual fund, by sheer scale of its investments is able to carry out cost-
effective brokerage transactions.

 Tax benefits: Over the years, tax policies on mutual funds have been favourable to
investors and continue to be so.

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Organization of a Mutual Fund

Sponsor :

Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual
fund. The sponsor of a fund is akin to promoter of a company as he gets the fund registered with SEBI. The
sponsor will form a Trust and appoint a Board of Trustees. The sponsor will also generally appoint as Asset
Management Company as fund managers. The sponsor, either directly or acting through the Trustees, will
also appoint a Custodian to hold the fund asset. All these appointments are made in accordance with SEBI
Regulations.

Sponsor must contribute at least 40% of the net worth of the Investment Managed and meet the eligibility
criteria prescribed under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.The
Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes
beyond the initial contribution made by it towards setting up of the Mutual Fund.

Trust :

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The Mutual Fund in India is constituted in the form of a public Trust created under the Indian Trustees Act,
1882. The fund sponsor acts as the settler of the trust, contributing to its initial capital, and appoints Trustees
to hold the asset of the Trust for the benefit of the unit holders, who are the beneficiaries of the Trust. The
fund then invites investors to contribute their money in the common pool, by subscribing to ‘’Units’’ issued
by various schemes established by the trust, units being the evidence of their beneficial interest in the fund.

It should be understood that a mutual fund is just ‘’ a pass-through’’ vehicle. Under the Indian trusts Act, or
the fund has no independent legal capacity itself, rather it is the Trustee or Trustees who have the legal
capacity and therefore all acts in relation to the trust are taken on its behalf by the Trustees. The Trustees
hold the unit holder’s money in a fiduciary capacity, i.e the money belongs to the unit – holders and is
entrusted to the fund for the purpose of investment. In legal parlance, the investor or the unit-holders are the
‘’beneficial owners’’ of the investment held by the Trust, even as these investments are held in the name of
the trustees on a day – to - day basis.

Being public Trusts, mutual fund can invite any number of investors as beneficial owners in their investment
schemes.

Trustee:

The trust – the mutual fund – may be a Board of Trustees – a body of individuals, or a Trust company – a
corporate body. Most of the funds in India are managed by Board of Trustees. While the board of Trustees is
governed by the provisions of the Indian Trusts Act, where the Trustee is a corporate body, it would also be
required to comply with the provisions of the companies Act, 1956. The Board or the Trustee Company, as
an independent body, act as protector of the unit – holder’s interests. The Trustee doesn’t directly manage
the portfolio of securities. For this specialist function, they appoint an Asset Management Company. They
ensure that the fund is managed by the AMC as per the defined objectives and in accordance with the Trust
Deed and SEBI regulations.

The trust is created through a document called the Trust Deed that is executed by the fund sponsor in favour
of the Trustees. Trust Deed is required to be stamped as registered under the provisions of the Indian
Registration Act and registered with SEBI. Clauses in the Trust Deed, inter alia, deal with the establishment
of the Trust, the appointment of Trustees, their powers and duties, and the obligations of the Trustees
towards the unit-holders and AMC. These clauses also specify activities that the fund/ AMC cannot
undertake. The third schedule of the SEBI (MF) Regulations, 1996 specifies the contents of the Trust Deed.

The Trustees being the primary guardians of the unit-holders’ funds and assets, a Trustee has to be a person
of high repute and integrity. SEBI has laid down a set of conditions to be fulfilled by the individuals being
proposed as trustees of mutual funds – independent and non - independent. Besides specifying the
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‘’disqualifications’’, SEBI has also set down the Right and obligations of the Trustees. Broadly, the Trustees
must ensure that the investors’ interests are safeguarded and that the AMC’s operations are along
professional lines. They must also ensure that the management of the fund is in accordance with SEBI
Regulations. To ensure the independence of the trustee company, SEBI mandates a minimum of two-third
independent directors on the board of the trustee company.

Asset Management Company (AMC) :

The role of an AMC is to act the investment manager of the Trust. The sponsors or the trustees, if so
authorized by the Trust Deed, appoint the AMC. The AMC so appointed is required to be approved by
SEBI. Once approved, the AMC functions under the supervision of its own Board of Directors, and also
under the directions of the Trustees and SEBI. The Trustees are empowered to terminate the appointment of
the AMC and appoint a new AMC with the prior approval of SEBI and unit-holders

The AMC would, in the name of the Trust, float and then manage the different investment ‘’schemes’’ as
per SEBI Regulations and as per the Investment Management Agreement it signs with the Trustees. Mutual
fund Regulations,1996 describes the issues relevant to appointment, eligibility criteria, and restrictions on
business activities and obligations of the AMC.

The AMC of a mutual fund must have a net worth of at least Rs. 10 crores at all times. Directors of the
AMC, both independent and non independent, should have adequate professional experience in financial
services and should be individuals of high moral standing, a condition also applicable to other key personnel
of the AMC. The AMC cannot act as a trustee of any other mutual fund. Besides its role as the fund
manager, it may undertake specified activities such as advisory services and financial consulting, provided
these activities are run independently of one another and the AMC’s resources are properly segregated by
activity. The AMC must always act in the interest of the unit-holders and report to the trustees with respect
to its activities. To ensure the independence of the asset management company, SEBI mandates that a
minimum of 50% of the directors of the board of the asset management company should be independent
directors.

Registrar and Transfer Agent :

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund.
The Registrar processes the application form; redemption requests and dispatches account statements to the
unit holders. The Registrar and Transfer agent also handles communications with investors and updates
investor records.

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Custodian :

Mutual funds are in the business of buying and selling of securities in large volumes. Handling these
securities in terms of physical delivery and eventual safekeeping is therefore a specialized activity. The
custodian is appointed by the Board of Trustees for safe keeping of physical securities or participating in any
clearing systemthrough approved depository companies on behalf of mutual fund in case of dematerialized
securities. A custodian must fulfill its responsibilities in accordance with its agreement with the mutual fund.
The custodian should be an entity independent of the sponsers and is required to be registered with SEBI.

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 MUTUAL FUND INDESTRY IN INDIA

Origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the
year 1963. In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities
as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets under
Management (AUM) were Rs. 67bn. The private sector entry to the fund family raised the AUM to Rs. 470
bn in March 1993 and till April 2004; it reached the height of 1,540 bn.

Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than the deposits
of SBI alone, constitute less than 11% of the total deposits held by the Indian banking industry.

The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large
sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility
of all mutual fucompanies, to market the product correctly abreast of selling.

The Indian mutual funds industry was non – existent till 1960s. in 1963, the govt. of India took the initiative
by passing the UTI Act, under which the Unit Trust of India (UTI) was set –up as a statutory body. The
designated role of UTI was to act as a mutual fund. This was expanded in 1985 to make UTI a financial
institution as well.

UTI’s first scheme, called the US-64, which was an open –end scheme, was launched in 1964. It
subsequently launched a number of schemes to suit the differing needs of the investors. Till 1987, UTI was
the only mutual fund in the market since no one else was legally allowed to set –up mutual fund. In 1987,
other public sector institutions like banks, financial institutions and insurance companies started establishing
mutual fund, following the government’s decision to allow them to do so. State Bank of India became the
first one to launch a mutual fund when it launched the SBI Mutual fund in November, 1987. It was followed
by the Can bank mutual fund, LIC Mutual fund, etc. In this regulated era, UTI was acting more as a vehicle
for the implementation of the economic policies and the developmental activities of the government, than as
an investment vehicle for the investors.

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Finally in 1992, the government allowed private sector players to set-up mutual funds. A few of them are,
Kothari pioneer MF, ICICI MF, Birla MF, Morgan Stanley MF, Tauras MF, ect. As the number of mutual
funds increased giving a choice to the competition in the industry increased, thus jolting the hitherto
complacent public sector mutual fund into action. As a result, the investors not only had a wider choice
regarding the kind of schemes and the sponsor of the mutual fund, they started getting better service even
from the old players. These private sector funds provided an added advantage to the investors. These were
generally set-up in partnership with foreign mutual funds, with the letter providing the technology and the
experience in managing funds. The investors could thus derive the consequent benefits by investing in these
funds.

As the industry developed, the need was felt to regulate it. From the beginning, UTI was governed by the
provisions of the UTI Act 1963.Till 1987, as there were no other players in the market, the need to come out
with specific regulations for investment companies did not arise. With the government allowing banks,
financial institutions and insurance companies to set-up mutual funds in 1987, a set of regulations was also
needed. However, till 1989, the only regulations in place were those which required banks to obtain RBI’s
permission before setting up a mutual fund.

In 1989, RBI came out with comprehensive guidelines applicable to mutual funds promoted by banks.
Following this, the Central Government came out with guidelines applicable to all mutual funds in June,
1990. The letter was to be administered by SEBI. SEBI was initially established as an interim body under
the Ministry of Finance in April, 1988 to regulate and develop the capital markets. It was later converted
into a statutory body under the SEBI Act, 1992 and given wide ranging powers. Mutual funds were one of
the players SEBI was authorized to regulate.

In August, 1990, SEBI ruled that the guidelines would only supplement those issued by the Central
Government. Hence the mutual funds sponsored by banks were required to fulfill obligations under both sets
of regulations. After allowing private sectors to enter the industry, the Government came out with a fresh set
of comprehensive guidelines for all the players in February, 1992. These guidelines superseded the earlier
guidelines of the government and RBI. All mutual funds except money market mutual fund (those investing
exclusively in the money market) and offshore mutual funds were governed by these guidelines. While the
former were governed by guidelines issued by RBI, the latter were governed by the Deportment of
Economics Affairs under the Ministry of Finance.

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Subsequently, SEBI issued even more detailed, comprehensive and stringent Mutual Funds Regulations in
1993, which replaced the guidelines issued by the government in 1992. These were further revised and
replaced by Mutual Funds Regulations, 1996.

In October, 1999, the administration of Money Market Mutual Funds was handed over by RBI to SEBI.
With effect from March 7, 2000, RBI has withdrawn its guidelines on Money Market Mutual Funds.
Accordingly, such money market mutual fund schemes, like any other mutual fund schemes, would
exclusively be governed by the SEBI (Mutual Fund) Regulations, 1996.

The fact that UTI, which is the biggest mutual fund in the country, does not fall under the purview of SEBI,
result in ineffective regulation by the latter. Besides, as compare the performance of UTI’s schemes with
other mutual funds’ schemes. To avoid this, SEBI tried for a long time to bring UTI under its purview.
However, UTI being a statutory body, it was finally ruled that it cannot be regulated by another statutory
body. As a result of further efforts on both sides, finally an arrangement was arrived at between SEBI and
UTI whereby the latter agreed to voluntarily comply with SEBI’ s regulations for certain schemes.

The mutual fund industry grew tremendously during 1998 to 2000. the total net assets of Rs. 97,228 crore
managed by 34 mutual funds through their 259 schemes as on march 31,1998 increased to 1,02,434.52 crore
managed by 39 mutual funds including UTI, through their 550 schemes as on February 28,2001.

The year 2001 was a watershed year in the history of the Indian mutual funds industry. In July, that year,
UTI froze purchase and sale of units of its flagship scheme US-64 for a period of six months, causing panic
among many individual as well as large institutional investors. Shelving its assured returns quality, US-64
became a market – return NAV based mutual fund in January 2002. Its opening NAV was Rs. 5.81 against
the face value of Rs. 10.In January 2003, the Government of India bifurcate the UTI into UTI I and UTI II.
UTI I is now managed by a public administrator, while UTI II was handed over to the State Bank of India,
Panjab National Bank, Bank of Baroda and the Life Insurance Corporation, with each institutions having an
equal share in the company. It also came under the ambit of regulation by SEBI. UTI II was renamed UTI
mutual fund in February 2003. As on 31 March 2003, UTI AMC had under its management, 42 SEBI
complaints schemes and 4 offshore funds, aggregating to a corpus of more than Rs. 15,000crore from about
10 million investor accounts.

In August, 2004 the mutual fund industry had Rs.155, 845crore wroth of asset under its management. Of this
Rs.20, 256crore were those of UTI, Rs.1, 23,258.04 were those of the private sector, and Rs.12, 171.20 were
those of the other public sector. More than 75% of the total assets under management were managed by the
private sector mutual funds.
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Major Mutual Fund Companies in India:

 Axis Asset Management Company

 AIG Global Investment Group Mutual Fund

 Birla Sun Life Mutual Fund

 Bank of Baroda Mutual fund

 DBS Chola Mutual Fund

 Fraanklin Templeton India Mutual Fund

 HDFC Mutual fund

 ICICI Prudential Mutual fund

 ING Mutual fund

 JM Financial Mutual fund

 JP Morgan Mutual fund

 Kotak Mahindra Mutual fund

 LIC Mutual fund

 Reliance Mutual fund

 Sahara Mutual fund

 State Bank of India Mutual fund

 Standard Charted Mutual fund

 Sundaram BNP Paribas Mutual fund

 Tata Mutual fund

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  Unit Trust of India Mutusl fund

Association of Mutual Funds in India (AMFI)

With the increase in mutual fund players in India, a need for mutual fund association in India was generated
to function as a non-profit organisation. Association of Mutual Funds in India (AMFI) was incorporated on
22nd August, 1995. AMFI is an apex body of all Asset Management Companies (AMC) which has been
registered with SEBI. Till date all the AMCs are that have launched mutual fund schemes are its members.
Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a professional and
healthy market with ethical lines enhancing and maintaining standards.

The Objectives of Association of Mutual Funds in India

The Association of Mutual Funds of India works with 30 registered AMCs of the country. It has certain
defined objectives which supports the guidelines of its Board of Directors. The objectives are as follows:

 This mutual fund association of India maintains high professional and ethical standards in all areas of
operation of the industry.

 It also recommends and promotes the top class business practices and code of conduct which is
followed by members and related people engaged in the activities of mutual fund and asset
management. The agencies who are by any means connected or involved in the field of capital
markets and financial services also involved in this code of conduct of the association.

 AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund industry.

 Association of Mutual Fund of India does represent the Government of India, the Reserve Bank of
India and other related bodies on matters relating to the Mutual Fund Industry.

 It develops a team of well qualified and trained Agent distributors. It implements a programme of
training and certification for all intermediaries and other engaged in the mutual fund industry.

 AMFI undertakes all India awareness programme for investor’s in order to promote proper
understanding of the concept and working of mutual funds.

 At last but not the least association of mutual fund of India also disseminate information’s on Mutual
Fund Industry and undertakes studies and research either directly or in association with other bodies.

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STUCTURE OF THE INDIAN MUTUAL FUNDINDUSTRY:

Structure wise mutual fund industry can be classified into three categories:

Unit trust of India

The Indian mutual fund industry is dominated by the unit trust of India, which has a total corpus of 51000 crore collected from
over 20 million investors. The UTI has many fund/ schemes in all categories in equity, balanced, debt, money market etc. With
some being open ended and some being closed ended. The unit scheme 1964 commonly referred to as US64,which is a
balanced fund, is the biggest scheme with a corpus of about 10000 crore.
Public sector mutual fund
The second largest categories of mutual funds are the ones floated by nationalized banks .can bank asset management floated by
canara bank and sbi funds management floatedby state bank of india are the largest of these. Gicamc floated by general
Insurance Corporation.
On line trading is a great idea to reduce management expenses from the current 2%of total assets to about 0.75%of the total
asset.
72% of the crore-customer base of mutual fund in the top 50-broking firms in theus is expected to trade on line by 2003
Private Sector Mutual fund
The third largest categories of mutual funds are the ones floated by the private sector domestic mutual funds and the private
sector foreign mutual funds. The largest of these in private sector domestic mutual funds are Reliance mutual fund, JM
capital management company ltd. Tata mutual, Axis mutual fund, Birla sun life asset management pvt. Ltd. and in private
foreign mutual funds these are alliance capital asset management private ltd, Franklin Templeton Investments, Sun F&C
asset management private ltd, Lurich asset management company pvt ltd. The aggregate corpus of the assets managed by
this category of amc’s is about 42000 cr.

Future of Mutual Funds in India

Financial experts believe that the future of Mutual Funds in India will be very bright. AUM of 41 mutual
fund houses in India rose to Rs681,708crore at the end of March, 2011 and Rs.664,824 crore in 2012,
according to AMFI data. In the coming 10 years the annual composite growth rate is expected to go up by
13.4%. Since the last 5 years, the growth rate was recorded as 9% annually. Based on the current rate of
growth, it can be forecasted that the mutual fund assets will be double by 2015.

GLOBAL SCENARIO OF MUTUAL FUND:

 The money market mutual fund segment has a total corpus of 1.48 trillion in theU.S.

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  Out of the top 10 mutual fund worldwide, eight are worldwide sponsored. Only fidelity and capital are non-bank mutual
funds in this group.

 In the U.S. the total numbers of schemes is higher than that of the listed companies

 Internationally, mutual funds are allowed to go short. In India fund managers do nothave such leeway.

 In the U.S. about 9.7 million households will manage their assets online by the year2003, such a facility is not yet of
avail in India and jeevanbimasahayogamc floated bythe LIC are some of the other prominent ones. The aggregate
corpus of the fundsmanaged by this category of amc’s is around 8300 cr.

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 Chapter-2
Company Profile

Axis Asset Management Company

Company Overview
Axis Asset management Company Limited is a privately owned investment manager. The firm manages
mutual funds for its clients. It invests in the public equity and fixed income market of india. The firm also
invest in gold for some of its funds. It is based in Mumbai, India. Axis Asset Management Company
Limited operates as a subsidiary of Axis Bank Limited.

Name of the Mutual Fund Axis Mutual Fund

Date of set up of Mutual Fund September 4, 2009
Name of Sponsor Axis Bank Limited
Name of the Asset Management Axis Asset Management Company Limited
Company
Date of Incorporation of AMC January 13, 2009
Website www.axismf.com
Registrar and Transfer Agent KarvycomputersharePvt. Ltd.

Assets under management 8,815 (Rs.Cr)

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 Board of Directors

Axis Mutual Fund Trustee Limited:

Dr T C Nair, Chairman, Independent Director
Mr. B Gopalakrishnan, Associate Director
Mr.Kedar Desai, Independent Director
Mr.Uday M Chitale, Independent Director

Axis Asset Management Company Limited:

Mr. Rajiv Anand, MD & CEO of Axis AMC, Associate Director
Mr. R. K. Bammi, Associate Director
Ms.Shikha Sharma, Chairperson, Associate Director
Mr. T S Narayanasami, Independent Director
Mr.PraneshMisra, Independent Director
Mr. U R Bhat, Independent Director

OUR KEY BUSINESS PEOPLE

Mr.Chandresh Nigam, Head – Investments

Karan Datta, National Sales Head
Mr.PankajMurarka, Senior Fund Manager – Equity
R. Sivakumar, Head – Fixed Income & Products
Praveen Bhatt, Head – Operations
MitenChawda, Head – Compliance & Company Secretary
JineshGopani, Fund Manager – Equity
SudhanshuAsthana, Fund Manager – Equity
AshishNaik, Analyst – Equity
Viresh Joshi, Chief Trader – Equity
NinadDeshpande, Fund Manager – Fixed Income

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Anurag Mittal, Credit Analyst – Fixed Income

SPONSOR OF AXIS AMC

Axis Bank Limited:

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of
India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of
the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National
Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd.
and United India Insurance Company Ltd.

The Bank as on 31st March, 2011 is capitalized to the extent of ` 410.54 crores with the public holding
(other than promoters and GDRs) at 53.60%.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a
very wide network of more than 1281 branches (including 169 Service Branches/CPCs as on 31st March,
2011). The Bank has a network of over 6270 ATMs (as on 31st March, 2011) providing 24 hrs a day
banking convenience to its customers. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry
practices internationally in order to achieve excellence.

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 VISION
To be the preffered financial solutions provider excelling in customer delivery through insight, empowered
employees and smart use of technology.

CORE VALUE
 Customer Centricity
 Ethics
 Transparency
 Teamwork
 Ownership

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 BUSINESS PHILOSOPHY

Our business will be built on three pillars. These are:

Outside-in View

 Investor at the heart of every single decision.

 Communicate in his language, not in ours.

Enduring Wealth Creation

 Play a serious and credible role in investor's money basket.

 Encourage investors to build a long-term perspective of the mutual fund category.

Long-term Relationships

 Leverage the equity of the 'Axis' brand

 Aim at building relationships rather than being transactional.

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 SWOT Analaysis of Axis AMC

STRENGTHS:
 Professional investment management
Mutual funds hire full-time, high-level investment professionals. Funds can afford to do so as they
manage large pools of money. The managers have real-time access to crucial market information and
are able to execute trades on the largest and most cost-effective scale.
 Diversification
Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect
of a possible decline in the value of any one security..

 Low Cost
A mutual fund let's you participate in a diversified portfolio for as little as Rs.5,000/-, and sometimes
less. And with a no-load fund, you pay little or no sales charges to own them.

 Convenience and Flexibility

You own just one security rather than many, yet enjoy the benefits of a diversified portfolio and a
wide range of services.

 Personal Service
One call puts you in touch with a specialist who can provide you with information you can use to
make your own investment choices.

 Liquidity
In open-ended schemes, you can get your money back promptly at net asset value related prices from
the mutual fund itself.

 Transparency
You get regular information on the value of your investment in addition to disclosure on the specific
investments

WEAKNESS

Risk is defined as short-term price variability. But on a long-term basis, risk is the possibility that your
accumulated real capital will be insufficient to meet your financial goals. And if you want to reach your
financial goals, you must start with an honest appraisal of your own personal comfort zone with regard to
risk.

26
Individual tolerance for risk varies, creating a distinct "investment personality" for each investor. Some
investors can accept short-term volatility with ease, others with near panic. So whether you consider your
investment temperament to be conservative, moderate or aggressive, you need to focus on how comfortable
or uncomfortable you will be as the value of your investment moves up or down.

OPPORTUNITIES
As per the BLOOM BERG survey India's total disposable income will increase to 40% by 2015,along with
total income of an average Indian family will be 450000.
As people are getting aware of the fact of investment and want to invest more with specialized assistant
mutual funds have a great opportunities.
As the risk is diversified and funds are available as per the different objective people can invest as per their
requirement.
Maximum money is invested in equity market and as the GDP is growing studily this is a great opportunity
for the companies to go ahead and invest more in to the market.

THREATS
A new competitor in your home market
Price wars with competitors
Competitor has new innovative product or service
Taxation

Schemes of Axis Mutual Fund

 Equity Funds:
 Axis Equity Fund
 Axis Long Term Equity Fund
 Axis Midcap Fund
 Axis Focused 25 Fund

27
  Fixed Income Funds:
 Axis Liquid Fund
 Axis Treasury Advantage Fund
 Axis Short Term Fund
 Axis Dynamic Bond Fund

 Hybrid Funds:
 Axis Triple Advantage Fund
 Axis Income Saver

 Gold Funds:
 Axis Gold Fund
 Axis Gold ETF

Axis Equity Fund:

An Open-ended Growth Scheme

To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of
equity and equity related securities including derivatives. However, there can be no assurance that the
investment objective of the scheme will be achieved.

Key Features

 A diversified equity fund that invests primarily in the Indian equity markets
 Provides the opportunity to capitalize on India's high paced growth
 Supported by a strong investment management team at Axis Mutual Fund
 Suitable for an investment horizon of 5 years or more
 With no entry load
28
  EasyCall facility available

Axis Long Term Equity Fund:

An Open-ended Equity-Linked Saving Scheme with a 3 year lock in.

To generate income and long term capital appreciation from a diversified portfolio of predominantly equity
and equity related securities.

Key Features

 A diversified equity fund that invests in the Indian equity markets

 Provides the opportunity to capitalize on India’s high paced growth
 Also provides tax benefits under section 80C of the Income Tax Act, 1961
 Lock-in period of only 3 years is the lowest amongst all section 80C options available today
 Suitable for an investment horizon of 5 years or more
 With no entry load
 Flexibility to invest across market caps in high growth stocks

Axis Midcap Fund:

An Open-ended Equity Scheme

To achieve long term capital appreciation by investing predominantly in equity and equity related
instruments of mid size companies. The focus of the fund would be to invest in relatively larger companies
within this category.

Key Featurs

 An equity fund that invests primarily in midsized companies to capitalise on their fast paced growth
 Amongst the midsized companies, it has a preference for the larger ones that carry relatively lower
risk
 It is suitable for an investment horizon of 5 yrs or more
 It is suitable when you want to plan for a bigger home, better holidays, bigger cars, etc.

29
Axis Focused 25 Funds:
An Open-ended Equity Scheme
Axis Focused 25 Fund - a fund that attempts to unearth and invests exclusively in just these quality
companies. The reassurance of quality companies who have not just weathered storms over time but
prospered and bloomed even in adverse times.

Key Features

 Suitable for an investment horizon of 5 years or more

 Focus in the best ideas at any point of time
 Nurtures companies over their business cycle without being affected by short term market volatility
 Professional fund management with established track record
 With no entry load.

Axis Liquid Fund:

An open-ended Liquid Scheme

To provide a high level of liquidity with reasonable returns commensuration with low risk through a
portfolio of money market and debt securities.

Key Features

 An extremely low risk fund suitable for an investment horizon of 1 day – 90 days
 Returns are calculated for the number of days you remain invested
 No entry or exit loads
 High liquidity - Under normal circumstances, we will endeavour to ensure that an investor gets his
money back one day after putting in a valid redemption request

Axis Treasury Advantage Fund:

An open-ended Debt scheme

To provide optimal returns and liquidity to the investors by investing primarily in a mix of money market
and short term debt instruments which results in a portfolio having marginaly higher maturity as compared
to a liquid fund at the same time maintaining a balance between safety and liquidity.

Key Features
30
  A low risk fund suitable for an investment horizon of 1 day to 90 days
 Returns are calculated for the number of days you remain invested
 No entry or exit loads
 High liquidity - Under normal circumstances, we will endeavour to ensure that an investor gets his
money back one day after putting in a valid redemption request
 Tax efficient as dividends are tax-free in your hands (post deduction of 14.1625% dividend
distribution tax for individual investors - inclusive of cess and surcharge)

Axis Short Term Fund:

An Open-ended Debt Scheme

To Generate stable returns with a low risk strategy while maintaining liquidity through a portfolio
comprising of debt and money market instruments.

Key Features

 A low risk fund suitable for an investment horizon of 6 months or more

 Aims to provide stable returns by investing in debt and money market instruments
 Returns are calculated for the number of days you remain invested
 EasyCall facility available
 High liquidity - Under normal circumstances, we will endeavour to ensure that an investor gets his
money back one day after putting in a valid redemption request
 Tax efficient as dividends are tax-free in your hands (post deduction of 14.1625% dividend
distribution tax for individual investors - inclusive of cess and surcharge)

Axis Dynamic Bond Fund:

An Open-ended Debt Scheme

To generate optimal returns while maintaining liquidity through active management of a portfolio of debt
and money market instruments.

Key Features

 A low risk fund suitable for an investment horizon of 1 year or more

 Dynamic asset allocation policy across fixed income assets
31
  Seeks to exploit market opportunities & manage risk
 Able to invest across all segments of fixed income
 Flexibility to invest only in high conviction ideas
 Does not track benchmarks, i.e. can be invested in money market during rising rate environment

Axis Triple Advantage Fund:

An Open-ended Hybrid Fund

To generate long term capital appreciation by investing in adiversified portfolio of equity and equity related
instruments, fixed income instruments and gold exchange traded funds.

Key Features

 Suitable for an investment horizon of 3 years or more

 Provides diversification across three asset classes viz. equity, fixed income and gold thereby leading
to reduction in risk
 Returns potential not compromised even with reduced risk levels
 Returns more stable than pure equity or gold investments over the long term
 Offers convenience. Now one single application is sufficient for investment in three asset classes.
 20 - 30% of investment in gold. Gold is a good hedge against financial crises.

Axis Income Saver:

An Open-ended Income Fund

To generate regular income through investments in debt and money market instruments, along with capital
appreciation through limited exposure to equity and equity related instruments. It also aims to manage risk
through active asset allocation.

Key Features

 A low to medium risk fund suitable for an investment horizon of 2 – 4 years

32
  Brings stability to your portfolio by investing primarily in fixed income instruments
 Offers the potential for capital growth through limited exposure to equity instruments
 Adopts a quantitative asset allocation strategy for risk management
 Open-ended nature allows you to buy or sell units of the scheme at any point of time subject to
applicable loads
 Scheme managed by an experienced team of fund managers

Axis Gold Fund:

Key Features

 Systematically invest in gold each month through SIPs

 Buy gold in amounts as small as Rs 1000 without having to worry about purity
 No demat account required
 Buy/sell units of Axis Gold Fund on any business day at NAV based prices
 No storage charges , no making charges, no safe-keeping worries

Axis Gold ETF:

Axis Gold ETF offers a simple way of investing in gold. It is a mutual fund scheme that lets you buy gold
without the necessity of taking physical delivery or of the associated risks of physical storage or of
impurities.

Key Features

 Protects against inflation

 Allows you to take advantage of Gold as an investment opportunity
 Investors bear no risk of storage and safekeeping of gold
 Get 99.5% purity at prevailing market prices without premium charges

33
34
 Chapter-3

Objective

OBJECTIVES OF THE STUDY

1. To find out the physiology of investors in India towards investment in mutual funds.
2. To know the Preferences for the portfolios.
3. To know why one has invested or not invested in Axis Mutual fund
4. To find out the most preferred channel.
5. To find out what should do to boost Mutual Fund Industry.
6. It is to understand the concept of mutual funds as well as to know the scope of various schemes.
7. To Study and analyze the Economic impacts of growth of the Mutual Funds industry in India.
8. The main objective of this project is concerned with getting the opinion of people regarding
mutual funds and what they feel about availing the services of financial advisors.
9. I have tried to explore the general opinion about mutual funds. It also covers why/ why not
investors are availing the services of financial advisors.

35
 Chapter-4
Channel Management

CHANNEL MANAGEMENT OF THE AXIS

ASSET MANAGEMENT COMPANY

AXIS AMC

BUSINESS CORPORATION

INSTITUTIONAL RETAIL COMPANY PARTNERSHIP HUF

BANKS

IFA’s

1. BUSINESS
Under the category of business there are two sub-divisions.
1.1 INSTITUTIONAL
National distributors come under it. They are more viable in nature. Have more business generating
capacity.
1.2 RETAIL
Under the category of retail mainly Banks and IFA’s have major role.

1.2.1 BANKS

36
 There banks acts as a mediator between investors and asset management companies through that they
help in promoting various schemes. On the basis of their business generating capability they got
commission.
1.2.2 IFA’s
Individual financial agencies are the distributors who work for selling mutual funds directly to the
investors.

2. CORPORATION

2.1 COMPANY

2.2 PARTENRSHIP
It is a relationship between persons who have agreed to share the profits of a business.

2.3 HINDU UNDIVIDED FAMILY

UNDER CHANNEL MANAGEMENT OF AXIS AMC

1. Empannelise Distributors (IFA’s) From Jaipur (Rajasthan) first of all I started with empanelling or adding
new distributors from Jaipur according to their AUM in other AMC’s. My mentor helped me in collecting
this data. I have to prepare database related to it, where I synchronised the data of those distributors
according to highest AUM. After getting the data I was supposed to do cold calls to all those distributors and
convince them to do business with Axis AMC.

2.Retail Business While doing the work of empanelment, I have also started concentrating on existing IFA’s.
I gave presentations in front of many of them and even they appreciated my work. The main focus was on
SIP as there was an incentive based proposition came for IFA’s till the limited period.

Under Banking channel I mate with relationship managers and convinced them regarding the schemes and I
was in regular contact with them in case of any query.

37
 Chapter-5

Research Methodology

RESEARCH METHODOLOGY

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

Data sources:

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

Duration of Study:

The study was carried out for a period of one months, from 1st june to 1st july 2018.

38
 Sampling:

Sampling procedure:

The sample was selected of them who are the customers/visitors of Axis Bank, Malviya Nagar and
Vaishali Nagar Branch, irrespective of them being investors or not or availing the services or not. It
was also collected through personal visits to persons, by formal and informal talks and through filling
up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool.

Sample size:

The sample size of my project is limited to 200 people only. Out of which only 120 people had
invested in Mutual Fund. Other 80 people did not have invested in Mutual Fund.

Sample design:

Data has been presented with the help of bar graph, pie charts, line graphs etc.

Limitations of the study

The following are the major limitations of the study.

 The sample was restricted to specified region only.
 The sample collected may not represent the entire population and the result may not be a true
representation of total universe.

39
 Chapter-6

Data Presentation and Analysis

ANALYSIS & INTERPRETATION OF THE DATA

1. a) Age distribution of the Investors

Age Group <= 30 31-35 36-40 41-45 46-50 >50

No. of 12 18 30 24 20 16
Investors

35
Investors invested in Mutual Fund

30

25

20

15 30
24
10 20
18 16
5 12

0
<=30 31-35 36-40 41-45 46-50 >50

Age group of the Investors

40
Interpretation:
According to this chart out of 120 Mutual Fund investors of Jaipur the most are in the age
group of 36-40 yrs. i.e. 25%, the second most investors are in the age group of 41-45yrs i.e.
20% and the least investors are in the age group of below 30 yrs.

b). Educational Qualification of investors:

Educational Qualification Number of Investors

Graduate/ Post Graduate 35

Under Graduate 18

Others 7

Total 60

6%
23%

71%

Graduate/Post Graduate Under Graduate Others

41
 Interpretation:

Out of 120 Mutual Fund investors 71% of the investors are Graduate/Post Graduate, 23% are
Under Graduate and 6% are others (under HSC).

c). Occupation of the investors:

Occupation No. of Investors

Govt. Service 30
.
Pvt. Service 45
Business 35
Agriculture 4
Others 6

50
45
No. of Investors

40
35
30
25
20 45
15 35
30
10
5 6
0 4
Govt. Service Pvt. Service Business Agriculture Others

Occupation of the customers

42
Interpretation:

In Occupation group out of 120 investors, 38% are Pvt. Employees, 25% are
Businessman, 29% are Govt. Employees, 3% are in Agriculture and 5% are in others.

d). Monthly Family Income of the Investors:

Income Group No. of Investors

<=10,000 5
10,001-15,000 12
15,001-20,000 28
20,001-30,000 43
>30,000 32

50
45
40
No. of Investors

35
30
25
20 43
15 32
28
10
5 12
5
0
<=10 10-15 15-20 20-30 >30

Income Group of the Investorsn (Rs. in Th.)

43
 Interpretation:

In the Income Group of the investors, out of 120 investors, 36% investors that is the
maximum investors are in the monthly income group Rs. 20,001 to Rs. 30,000,
Second one i.e. 27% investors are in the monthly income group of more than Rs.
30,000 and the minimum investors i.e. 4% are in the monthly income group of
below Rs. 10,000

e). Percentage (%) of Annual Savings:

9.17
15.83

Less then
10%
10-20%
35
21-30%

31-40%
40

Less than 0% 10-20% 21-30% 31-40%

19 48 42 11

44
Interpretation
Everybody saves some proportion of the income looking at the present and future needs. The pie chart
shows that major proportion that is 40 % investors have annual savings ranging from 10 -20% whereas 35%
investors annual saving ranges from 21-30%.

f). Risk-Taking Ability Of Investors:

High-Risk

Reluctant

Low risk

Careful

0 10 20 30 40 50

Careful Low risk Reluctant to risk High risk

33 49 24 14

Interpretation
There are very few investors who believe in avoiding risk while investing in different avenues. The major
proportion is those of low risk taker here the investors invest their wealth mainly in mutual funds, fixed
deposits etc.

45
 (2) 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

65
Kinds of Investment

30
50
75
120
152
148
195
0 100 200 300

No.of Respondents

46
Interpretation:

From the above graph it can be inferred that out of 200 people, 97.5% people have invested in Saving
A/c, 76% in Insurance, 74% in Fixed Deposits, 60% in Mutual Fund, 37.5% in Post Office, 25% in
Shares or Debentures, 15% in Gold/Silver and 32.5% in Real Estate.

3. Preference of factors while investing:

Factors (a) Liquidity (b) Low Risk (c) High Return (d) Trust

No. of 40 60 64 36
Respondents

18% 20%

32% 30%

Liquidity Low Risk High Return Trust

Interpretation:

Out of 200 People, 32% People prefer to invest where there is High Return, 30% prefer to
invest where there is Low Risk, 20% prefer easy Liquidity and 18% prefer Trust

47
 4. Awareness about Mutual Fund and its Operations:

Response Yes No
No. of Respondents 135 65

33%

67%

Yes No

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.

48
 5. Source of information for customers about Mutual Fund:

Source of information No. of Respondents

Advertisement 18
Peer Group 25
Bank 30
Financial Advisors 62

80

60
No. of Respondents

40
62
20
25 30
18
0
Advertisement Peer Group Bank Financial Advisors

Source of Information

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 135 Respondents, 46% know about Mutual
fund Through Financial Advisor, 22% through Bank, 19% through Peer Group and 13%
through Advertisement.

49
 6. Investors invested in Mutual Fund:

Response No. of Respondents

YES 120
NO 80
Total 200

No
40%

Yes
60%

Interpretation:

Out of 200 People, 60% have invested in Mutual Fund and 40% do not have invested in
Mutual Fund.

50
7.Reason for not invested in Mutual Fund:

Reason No. of Respondents

Not Aware 65
Higher Risk 5
Not any Specific Reason 10

13% 6%

81%

Not Aware Higher Risk Not Any

Interpretation:

Out of 80 people, who have not invested in Mutual Fund, 81% are not aware of Mutual Fund,
13% said there is likely to be higher risk and 6% do not have any specific reason.

51
 8. Investors invested in different Assets Management Co. (AMC):

Name of AMC No. of Investors

AxisMF 55
UTI 75
HDFC 30
Reliance 75
ICICI Prudential 56
Kotak 45
Others 70

Others
70
HDFC
30
Name of AMC

Kotak
45
AxisMF
55
ICICI
56
Reliance
75
UTI
75
0 20 40 60 80

No. of Investors

Interpretation:

Most of the Investors preferred UTI and Reliance Mutual Fund. Out of 120 Investors 62.5%
have invested in each of them, only 46% have invested in AxisMF, 47% in ICICI Prudential,
37.5% in Kotak and 25% in HDFC.

52
9. Reason for invested in AxisMF:

Reason No. of Respondents

Associated with Axis 35
Better Return 5
Agents Advice 15

27%

9% 64%

Associated with AXIS Better Return Agents Advice

Interpretation:

Out of 55 investors of AxisMF 64% have invested because of its association with Brand
AXIS, 27% invested on Agent’s Advice, 9% invested because of better return.

53
 10. Reason for not invested in AxisMF

Reason No. of Respondents

Not Aware 25
Less Return 18
Agent’s Advice 22

34% 38%

28%

Not Aware Less Return Agent's Advice

Interpretation:

Out of 65 people who have not invested in AxisMF, 38% were not aware with AxisMF, 28%
do not have invested due to less return and 34% due to Agent’s Advice.

54
 11. Preference of Investors for future investment in Mutual Fund

Name of AMC No. of Investors

AxisMF 76
UTI 45
HDFC 35
Reliance 82
ICICI Prudential 80
Kotak 60
Others 75

Others 75

Kotak 60
Name of AMC

ICICI Prudential 80

Reliance 82

HDFC 35

UTI 45

AxisMF 76

0 20 40 60 80 100

No. of Investors

Interpretation:

Out of 120 investors, 68% prefer to invest in Reliance, 67% in ICICI Prudential, 63% in
AxisMF, 62.5% in Others, 50% in Kotak, 37.5% in UTI and 29% in HDFC Mutual Fund.

55
12. Channel Preferred by the Investors for Mutual Fund Investment

Channel Financial Advisor Bank AMC

No. of Respondents 72 18 30

25%

15% 60%

Financial Advisor Bank AMC

Interpretation:

Out of 120 Investors 60% preferred to invest through Financial Advisors, 25% through AMC
and 15% through Bank.

56
13. Mode of Investment Preferred by the Investors

Mode of Investment One time Investment Systematic Investment Plan (SIP)

No. of Respondents 78 42

35%

65%

One time Investment SIP

Interpretation:

Out of 120 Investors 65% preferred One time Investment and 35 % Preferred through
Systematic Investment Plan.

57
 14. Preferred Portfolios by the Investors

Portfolio No. of Investors

Equity 56
Debt 20
Balanced 44

37% 46%

17%

Equity Debt Balance

Interpretation:

From the above graph 46% preferred Equity Portfolio, 37% preferred Balance and 17%
preferred Debt portfolio

58
15. Option for getting Return Preferred by the Investors

Option Dividend Payout Dividend Growth

Reinvestment
No. of Respondents 25 10 85

21%
8%
71%

Dividend Payout Dividend Reinvestment Growth

Interpretation:

From the above graph 71% preferred Growth Option, 21% preferred Dividend Payout and 8%
preferred Dividend Reinvestment Option..

59
 Chapter-7

Suggestions and Recommendation

Suggestions and Recommendations

 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.
 Mutual funds offer a lot of benefit 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 mindsets.
The advisors should target for more and more young investors. Young investors as
well as persons at the height of their career would like to go for advisors due to lack
of expertise and time.
 Mutual Fund Company needs to give the training of the Individual Financial
Advisors about the Fund/Scheme and its objective, because they are the main source
to influence the investors.
 Before making any investment Financial Advisors should first enquire about the risk
tolerance of the investors/customers, their need and time (how long they want to
invest). By considering these three things they can take the customers into
consideration.
 Younger people aged under 35 will be a key new customer group into the future, so
making greater efforts with younger customers who show some interest in investing
should pay off.

60
  Customers with graduate level education are easier to sell to and there is a large
untapped market there. To succeed however, advisors must provide sound advice and
high quality.

Systematic Investment Plan (SIP) is one the innovative products launched by Assets Management
companies very recently in the industry. SIP is easy for monthly salaried person as it provides the facility of
do the investment 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.

61
 Chapter-8

Limitations and Scope

Limitation:

 Some of the persons were not so responsive.

 Possibility of error in data collection because many of investors may have not given actual
answers of my questionnaire.
 Sample size is limited to 200 visitors of Axis Bank ,Malviya Nagar and Vaishali Nagar out of
these only 120 had invested in Mutual Fund. The sample size may not adequately represent the
whole market.
 Some respondents were reluctant to divulge personal information which can affect the validity
of all responses.
 The research is confined to a certain part of Jaipur.

62
 Scope of the study

A big boom has been witnessed in Mutual Fund Industry in recent times. A large number of new
players have entered the market and trying to gain market share in this rapidly improving market.

The research was carried on in Jaipur. I had been sent at one of the branch Axis bank where I
completed my Project work. I surveyed on my Project Topic “Channel Management of Axis Mutual
Fund and Analysing Preferences of The Investors For Investment In Mutual Funds” on the visiting
customers of the AxisMalviya Nagar and Vaishali Nagar Branch.

The study will help to know the preferences of the customers, which company, portfolio, mode of
investment, option for getting return and so on they prefer. This project report may help the company
to make further planning and strategy.

63
 Chapter-9

Conclusion

Findings

 The Age Group of 36-40 years were more in numbers. The second most Investors were
in the age group of 41-45 years and the least were in the age group of below 30 years.
 Most of the Investors were Graduate or Post Graduate and below HSC there were very
few in numbers.
 In Occupation group most of the Investors were Govt. employees, the second most
Investors were Private employees and the least were associated with Agriculture.
 In family Income group, between Rs. 20,001- 30,000 were more in numbers, the second
most were in the Income group of more than Rs.30,000 and the least were in the group
of below Rs. 10,000.
 About all the Respondents had a Saving A/c in Bank, 76% Invested in Fixed Deposits,
Only 60% Respondents invested in Mutual fund.
 Mostly Respondents preferred High Return while investment, the second most
preferred Low Risk then liquidity and the least preferred Trust.
 Only 67% Respondents were aware about Mutual fund and its operations and 33% were
not.
 Among 200 Respondents only 60% had invested in Mutual Fund and 40% did not have
invested in Mutual fund.
 Out of 80 Respondents 81% were not aware of Mutual Fund, 13% told there is not any
specific reason for not invested in Mutual Fund and 6% told there is likely to be higher
risk in Mutual Fund.
 Most of the Investors had invested in Reliance or UTI Mutual Fund, ICICI Prudential
has also good Brand Position among investors, AxisMF places after ICICI Prudential
according to the Respondents.
 Out of 55 investors of Axis MF 64% have invested due to its association with the Brand
Axis, 27% Invested because of Advisor’s Advice and 9% due to better return.

64
 Most of the investors who did not invested in Axis MF due to not Aware of Axis MF,
the second most due to Agent’s advice and rest due to Less Return.
 For Future investment the maximum Respondents preferred Reliance Mutual Fund, the
second most preferred ICICI Prudential, Axis MF has been preferred after them.
 60% Investors preferred to Invest through Financial Advisors, 25% through AMC
(means Direct Investment) and 15% through Bank.
 65% preferred One Time Investment and 35% preferred SIP out of both type of Mode
of Investment.
 The most preferred Portfolio was Equity, the second most was Balance (mixture of both
equity and debt), and the least preferred Portfolio was Debt portfolio.
 Maximum Number of Investors Preferred Growth Option for returns, the second most
preferred Dividend Payout and then Dividend Reinvestment.

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 Conclusion

Running a successful Mutual Fund requires complete understanding of the peculiarities of the Indian
Stock Market and also the psyche of the small investors. This study has made an attempt to understand
the financial behavior of Mutual Fund investors in connection with the preferences of Brand (AMC),
Products, Channels etc. I observed that many of people have fear of Mutual Fund. They think their
money will not be secure in Mutual Fund. They need the knowledge of Mutual Fund and its related
terms. Many of people do not have invested in mutual fund due to lack of awareness although they
have money to invest. As the awareness and income is growing the number of mutual fund investors
are also growing.

“Brand” plays important role for the investment. People invest in those Companies where they have
faith or they are well known with them. There are many AMCs in Jaipur but only some are performing
well due to Brand awareness. Some AMCs are not performing well although some of the schemes of
them are giving good return because of not awareness about Brand. Reliance, UTI,AxisMF, ICICI
Prudential etc. They are well known Brand, they are performing well and their Assets Under
Management is larger than others whose Brand name are not well known like Principle, Sunderam,
etc.

Distribution channels are also important for the investment in mutual fund. Financial Advisors are the
most preferred channel for the investment in mutual fund. They can change investors’ mind from one
investment option to others. Many of investors directly invest their money through AMC because they
do not have to pay entry load. Only those people invest directly who know well about mutual fund and
its operations and those have time.

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 QUESTIONNAIRE

1. Personal details:

(a). Name:-

(b). City: - contact no:-

(c). Age:-

(d). Qualification:-

Graduation/pg Under graduate Others

(e). Occupation. Pl tick (√)

Govt. Ser Pvt.Ser Business Agriculture Others

(f). What is your monthly family income approximately? Pl tick (√).

Up to Rs. 10,001 to Rs. 15,001 to Rs. 20,001 to Rs. 30,001

rs.10,000 15000 20,000 30,000 and above

(g). What much do you think you will be able to save on an annual basis as a % of your total annual income?

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 Less than 10% 10-20% 20-30% More than 30%

(h). How would you honestly describe yourself as a risk-taker?

Careful Low risk taking capability

Extremely reluctant to risk High risk taking capability

2. What kind of investments you have made so far? Pl tick (√). All applicable.

A. Saving account B. Fixed deposits C. Insurance D. Mutual fund

E. Post office-nsc, etc F. G. Gold/ silver H. Real estate
Shares/debentures

3. While investing your money, which factor will you prefer?

.
(a) liquidity (b) low risk (c) high return (d) trust

4. Are you aware about mutual funds and their operations? Pl tick (√).
a) yes b) no

5. If yes, how did you know about mutual fund?

A. Advertisement B. Peer group C. Banks D. Financial advisors

6. Have you ever invested in mutual fund? Pl tick (√).

a) yes b) no

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 7. If not invested in mutual fund then why?

(a) not aware of mf (b) higher risk (c) not any specific reason

8. If yes, in which mutual fund you have invested? Pl. Tick (√).All applicable.

A. B. UTI C. D. E. Kotak F. Other specify

AxisMF HDFC Reliance

9. If invested in axis mf, you do so because (pl. Tick (√), all applicable).

A. Axismf is associated with axis bank

B. They have a record of giving good returns year after year.
C. Agent’ advice

10. If not invested in axis mf, you do so because (pl. Tick (√) all applicable).

A. You are not aware of axis mf.

B. Axis mf gives less return compared to the others.
C. Agent’ advice

11. When you plan to invest your money in asset managementco. Which AMC will you prefer?

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 Assets management co.
A. Axis mf
B. Uti
C. Reliance
D. Hdfc
E. Kotak
F. Icici

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

(a) financial advisor (b) bank (c) AMC

13. When you invest in mutual funds which mode of investment will you prefer? Pl. Tick (√).

A. One time investment B. Systematic investment plan (sip)

14. When you want to invest which type of funds would you choose?

A. Having only debt B. Having debt & equity C. Only equity portfolio.
portfolio portfolio.

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 CHAPTER - 10

BIBLIOGRAPHY

BIBLIOGRAPHY

i. News papers

ii. Outlook money

iii. Television channel (cnbcaawaj)

iv. Mutual fund hand book

v. Fact sheet and statement

vi. www.axismf.com

vii. www.moneycontrol.com

viii. www.amfiindia.com

ix. www.onlineresearchonline.com

x. www. mutualfundsindia.com

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 xi. financial management by D.K goyal

xii. indian mutual funds by Sundar shankran

xiii. www.slideshare.com

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