1

BUNDELKHAND UNIVERSITY, JHANSI

SUMMER TRAINING PROJECT REPORT

ON

MUTUAL FUND OF MOTILAL OSWAL

MASTER OF BUSINESS ADMINISTRATION

(FINANCIAL MANAGEMENT)

(2017-2019)

Under The Guidance of:

Shilpa mishra

Submitted By:-

RINKESH PRAJAPATI

Roll No.171145095034

MBA (FM) 3rd SEM

Submitted TO
DEPARTMENT OF BANKING, ECONOMICS AND FINANCE,BUNDELKHAND UNIVERSITY
JHANSI (UP)
 2

A PROJECT REPORT

ON

“A DETAILED ANALYSIS OF AN

MUTUAL FUND OF MOTILAL OSWAL FINANCIAL SERVICES”

Submitted to

Bundelkhand University, Jhansi (UP)

Summer Training Report

Submitted in partial fulfillment for the degree of

MASTER OF BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Submitted by

Mr .Rinkesh prajapati

Roll no 171145095034

UNDER SUPERVISION OF

MRS :Shilpa mishra

INSTITUTE OF BANKING, ECONOMICS AND

FINANCE

BUNDELKHAND UNIVERSITY,

JHANSI - (UP)

(2017-2019)
 3

DECLARATION

I, Rinkesh prajapati, hereby declare that the Summer Training

Report, entitled “A Study on the Analysis of mutual fund of
Motilal oswal financial services , submitted to the Institute of
Economic & Finance, Bundelkhand University in partial
fulfillment of the requirements for the award of the Degree of
(Financial Management)is a record of original training undergone
by me during the period 7 june 2018- 25 August 2018 under the
supervision and guidance of ms shilpa mishra , Institute of Economic
& Finance, Bundelkhand University and it has not formed the basis
for the award of any Degree/Fellowship or other similar title to any
candidate of any university.

PLACE:JHANSI RINKESH PRAJAPATI

DATE: MBA(FM) 3rd SEM

 4

INSTITUTE OF BANKING, ECONOMICS AND FINANCE

BUNDELKHAND UNIVERSITY, JHANSI - (UP)

CERTIFICATE

This is to certify that the Summer Training Report entitled “A Study on the Analysis of
mutual fund of Motilal oswal financial services, in partial fulfillment of the requirements
for the award of the Degree of Master of Business Administration is a record of original
training undergone by Rinkesh prajapati ( Roll .No171145095034 ) during the year 2017-
19 of his study in the Institute of Economic & Finance, Bundelkhand University, under
my supervision and the report has not formed the basis for the award of any
Degree/Fellowship or other similar title to any candidate of any University.

Place: Jhansi Guide name:Ms Shilpa mishra

Designation :Assistant professor
Date: Signature :

Institute of Economic and Finance,

Bundelkhand University, Jhansi
 5

AKNOWLEDGEMENT

Training is essential to supplement theoretical knowledge with practical

knowledge and to include Right attitude and conduct regarding the profession, it
improve efficiency, and acts as a driving force in focusing our goals. As we all
are aware of t he most sought after work is “success”, everybody wants it and
some never realize when they have got it. Concentration, dedication hard work
and application are essential but not the only factor to achieve the desired goal.
Those must be supplemented by the guidance and cooperation of experts to
make it success.

Behind every study their stands a myriad of people whose people and
contribution make it successful. Firstly, I would hereby like to offer my sincere
thanks to Dr. C.B. Singh (HOD) of Institute of Banking, Economics and
Finance, Bundelkhand University, Jhansi who provided me an opportunity to
work in dissertation report.

Secondly, I would like to offer my thankful regard to my project guide and

mentor Mrs. Lecture name (position) institute of Banking, Economics And
Finance, Bundelkhand University. Who helped me as a torch bearer a friend and
a guide my entire project duration .I deem it to be proud privilege to work under
the guidance of

I came across and availed one such opportunity by undergoing my summer

internship Training at Net ambit Private limited , Noida which has been a great
learning as well as learning ,experience, certainly would have not been possible
without sincere guidance, cooperation and lectured by Mr. Rohit gupta (HR)
of company.

Rinkesh prajapati

Roll no 171145095034

MBA(FM) : 3rd SEM

6
 7

CHAPTER CONTENTS PAGE NO

No
Declaration 3
Certificate 4
Acknowledgement 5

CHAPTER-1 Company profile 8

Introduction to
CHAPTER-2 Mutual fund 20
Objectives & scope
CHAPTER-3 30

CHAPTER-4 Research methodology 33

CHAPTER -5 Data Analysis and interpretation 37

CHAPTER-6 Findings &Conclusion 41

 8

CHAPTER 1

Company profile
 9

. Motilal Oswal Financial Services Ltd. (MOFSL) was founded in 1987 as a

small sub-broking unit, with just 2 people running the show. Focus on
customer-first attitude, ethical and transparent business practices, respect for
professionalism, research-based value investing and implementation of cutting-
edge technology has enabled us to blossom into an over 5000 member team.

Today we are a well-diversified financial services firm offering a range of

financial products and services such as Private Wealth Management, Retail
Broking and Distribution, Institutional Broking, Asset Management, Investment
Banking, Private Equity, Commodity Broking, Currency Broking, and Home
Finance

We have a diversified client base that includes retail customers (including High
Net worth Individuals), mutual funds, foreign institutional investors, financial
institutions and corporate clients. We are headquartered in Mumbai and as of
September 2018, had a network spread over 600 cities and towns comprising
2400+ Business Locations operated by our Business Partners and us and
10,00,000+ customers.

Research is the solid foundation on which MOFSL advice is based. Almost 10%
of revenue is invested on equity research and we hire and train the best
resources to become our advisors. At present we have 25 research analysts
researching over 263 companies across 21 sectors. From a fundamental,
technical and derivatives research perspective, Motilal Oswal`s research reports
have received wide coverage in the media.

Our consistent efforts towards quality equity research have reflected in an

increase in the ratings and rankings across various categories in the AsiaMoney
Brokers Poll over the years. We have also been awarded the Best Performing
Equity Broker (National) at the CNBC TV18 Financial Advisor Awards for six
years in a row.
 10

Key people

Mr. Raamdeo Agrawal

Chairman

Raamdeo Agrawal is the Joint Managing Director of Motilal Oswal Financial

Services Limited (MOFSL) and the driving force behind the company’s
approach to investing. MOFSL is a well-diversified financial services firm
offering a range of products and services in securities, commodities, investment
banking, asset management and venture capital.

As Chairman of Motilal Oswal Asset Management Company Ltd. (MOAMC),

one of the fastest growing Asset Management Company in India, Mr. Agrawal
has created the “QGLP” (Quality Growth Longevity & favorable Price)
Investment Process and its ‘Buy Right, Sit Tight’ investing philosophy.

Mr Agrawal is also the driving force behind the MOFSL Groups highly
awarded research. He has been authoring the annual Motilal Oswal Wealth
Creation Study since its inception in 1996.
 11

Mr. Agrawal is an Associate of Institute of Chartered Accountant of India and a

member of the National Committee on Capital Markets of the Confederation of
Indian Industry. He has also featured on ‘Wizards of Dalal Street on CNBC TV
18’. In 1986, he wrote the book Corporate Numbers Game, along with co-
author Mr. Ram K Piparia. He has also authored the book “The Art of Wealth
Creation” which compiles insights from 20 “Wealth Creation Studies” authored
by him

Mr. Agrawal has been awarded the Rashtriya Samman Patra by Central Board
of Direct Taxes for a consistent track record of highest integrity in tax payments
for a period of 5 years from FY95-FY99.

Mr. Kanu Doshi

Director

Mr. Doshi is an Independent Director of Motilal Oswal Asset Management

Company Limited. He has more than 45 years of varied experience. He
specializes in corporate taxation and has got insight into financial matters of
corporates particularly companies setting up new projects and seeking financial
assistances from financial institutions. He is also a Director on the Board of
various Companies.
 12

Investment products of Motilal Oswal.

Equities

Long-Term Wealth Creation

Equities as an asset class provide you the dual advantage of protecting your
wealth from inflation along with enhancing your purchasing power. The key to
successful equity investments lies in investing with a long-term perspective and
keeping away from day-to-day uncertainties. Historical Data proves that equity
as an asset class has performed better than any other asset class over the years.

How your Rs.100 would have grown in asset classes over the years

Trade & invest in Cash & Margin products, ETF 's and Stock SIP 's across BSE,
NSE & MSEI

Multiple trading options: Desktop, Web, Mobile, Call & Trade Desk and
Dedicated Advisors *

All platforms integrated with LIVE market feeds, advanced tools and MOSL
research & advice

Customized investment strategies & actionable advice across time horizons &
risk profiles

Portfolio Restructuring based on risk profile with model portfolios and

benchmark comparisons

30 years of wealth creation experience driven by the philosophy of Solid

Research, Solid Advice

Best Performing Equity Broker (National) by UTI-CNBC TV18 Financial

Advisor Awards, 4 years in a row
 13

Derivatives
Derivatives do away with the need to invest a large amount of capital upfront
and allowing you to benefit from market movements. This gives you greater
liquidity than most other assets. They are an excellent avenue to help you
leverage on anticipated market movements and an effective tool to hedge your
risks, speculate and earn returns in a relatively shorter duration.

Option to trade in Futures and Options across NSE and BSE

Future Plus, an excellent leverage product for intraday traders with limited
margin
Multiple trading options: Desktop, Web, Mobile, Call & Trade and Dedicated
Advisors *
Dedicated technical research desk providing insightful daily & monthly reports
Customized actionable strategies as per risk profiles and time horizons
Exclusive in-house tools designed for faster decision making & single click
execution
Flexible brokerage plans and advance brokerage schemes based on your trading
profile
 14

Commodities

commodity trading brings a basket full of diverse avenues for investment, away
from the traditional avenues of equity, bonds and real estate. Based on the
historical data, adding commodities exposure to your existing portfolio helps
you increase the returns while lowering the risk. Commodities have very little
or negative correlation with other asset classes

Option to trade across Bullion, Base Metals, Energy, Agro and other
commodities
Customized offerings for Investors, Traders, Hedgers, Speculators or
Arbitrageurs
Availability of structured products, inter-commodity spreads etc
Value Plus, an excellent leverage product for intraday traders with limited
margin
Alternative investments like E-Gold, E-Silver with DEMAT options
Multiple trading options: Desktop, Web, Mobile, Call & Trade and Dedicated
Advisors
Specialized Research desk providing customized strategies, insightful reports
and market updates
 15

Currencies

World 's Largest Market - Driven By Fundamentals

A market that attracts about $5.2 trillion in daily volume, recognized as world 's
largest market, accessible globally 24 hours a day - that is exactly what the
Currency market is made up of! The advantage of small margin requirements
and lower entry barriers makes it an important part of a retail investor 's
portfolio. What 's more, you can trade in currencies through your existing equity
account.

Trade in Futures, Options and Inter-currencies across NSE-CD, MCXSX-CD &

BSE-CD
Option to utilize your margins and collaterals across Equity, F&O, Currency
segments
Multiple trading options: Desktop, Web, Mobile, Call & Trade and Dedicated
Advisors *
Specialized Research desk providing customized strategies, insightful reports
and market updates
Dedicated local & central advisory desks to suggest timely investment strategies
as per your needs.
 16

Mutual Funds
Convenient Way Into The Stock Markets

Mutual funds are ideal for investors who want to invest in various kinds of
schemes with different investment objectives but do not have sufficient time
and expertise to pick winning stocks. Mutual funds give you the advantage of
professional management, lower transaction costs, and diversification, liquidity
and tax benefits

Option to invest in 9,000 schemes across 40 AMC 's

Investment options across Equity, Debt, Balanced, Tax Saving fund Lump sum,
SIP, STP and SWP facility to help you manage your investments wisely

Multiple ways to invest: Desktop, Web, Mobile, Call & Trade and Dedicated
Advisors *

Dedicated relationship managers to provide timely recommendations

Online tracking tools with in-built portfolio restructuring recommendations

Model portfolios based on risk profile with benchmark comparisons, research
views etc
 17

Portfolio management service

Portfolio Management Service offers professional management of your

investments with an aim to deliver consistent returns. It relieves you from all
monitoring hassles with benefits like regular reviews, strong risk management
flexibility and makes it an ideal investment avenue for high net worth investors

India 's leading PMS service providers, with approx Rs. 9,519 Cr. of Assets
Under Management
More than 18,383 active accounts and client base spanning across 140 different
cities
Various themes like large cap, small & mid cap, flexi cap etc. to suit varied
investment needs
Value PMS, our flagship product has consistently outperformed its benchmark
over 13 years and is quarterly rated by Morningstar, an international reputed
agency.
18
 19

Mission &Vision of Motilal Oswal .

VISION

To achieve excellence in all our endeavors while delivering superior value to

stakeholders & delighting them

MISSION

Invest all resources and energies in delivering high quality Products and
services through Innovation, capability, Enhancement & people Initiatives,
based on the foundation of our core values.

AWARDS AND ACHIEVEMENT

1:Motilal Oswal wins marketing team of the Year at ACEF ASIAN LEADERSHIP
AWARDS.

2: BEST REAL ESTATE PRODUCT 2018

MORE Investment Advisors Awarded "Best Real Estate Product 2018" At The
India Wealth Awards 2018 by Association of International Wealth Management
of India

3: The International Business Awards®

MOFSL wins gold in Marketing Campaign of the Year (Financial Products &
Services Category) and bronze in Communication Department of the year
Category at 2018 IBA Awards (Stevie Awards).

4: Think Equity.

Think Motilal Oswal awarded as the Best ATL Campaignin Financial Service
category at the Masters of Modern Marketing Awards 2018.
 20

Chapter 2
Introduction
OF Mutual Fund
 21

INTRODUCTION TO MUTUAL FUND AND ITS VARIOUs

ASPECTS.

Mutual fund is a trust that pools the savings of a number of investors who
share a common financial goal. This pool of money is invested in accordance
with a stated objective. The joint ownership of the fund is thus “Mutual”, i.e.
the fund belongs to all investors. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities.
The income earned through these investments and the capital appreciations
realized are shared by its unit holders in proportion the number of units owned
by them. Thus a Mutual Fund is the most suitable investment for the common
man as it offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost. A Mutual Fund is an
investment tool that allows small investors access to a well-diversified
portfolio of equities, bonds and other securities. Each shareholder participates
in the gain or loss of the fund. Units are issued and can be redeemed as
needed. The funds Net Asset value (NAV) is determined each day.

Investments in securities are spread across a wide reduced. Diversification

reduces the risk because all stocks may not move in the same direction in the
same proportion at the same time. Mutual fund issues units to the investors in
accordance with quantum of money invested by them. Investors of mutual
fund are know as unit holder.
22
 23

ADVANTAGES OF MUTUAL FUND

• Portfolio Diversification

• Professional management

• Reduction / Diversification of Risk

• Liquidity

• Flexibility & Convenience

• Reduction in Transaction cost

• Safety of regulated environment

• Choice of schemes

• Transparency

DISADVANTAGE OF MUTUAL FUND

• No control over Cost in the Hands of an Investor

• No tailor-made Portfolios

• Managing a Portfolio Funds

• Difficulty in selecting a Suitable Fund Scheme

 24

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India, at the initiative of the Government of India and Reserve Bank.
Though the growth was slow, but it accelerated from the year 1987 when non-
UTI players entered the Industry.

In the past decade, Indian mutual fund industry had seen a dramatic
improvement, both qualities wise as well as quantity wise. Before, the
monopoly of the market had seen an ending phase; the Assets Under
Management (AUM) was Rs67 billion. The private sector entry to the fund
family raised the Aum to Rs. 470 billion in March 1993 and till April 2004; it
reached the height if Rs. 1540 billion.

The Mutual Fund Industry is obviously growing at a tremendous space with the
mutual fund industry can be broadly put into four phases according to the
development of the sector. Each phase is briefly described as under.

First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by

the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked
from the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI. The first scheme
launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700
crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI
Mutual Fund established in June 1987 followed by 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
 25

in December 1990.At the end of 1993, the mutual fund industry had assets
under management of Rs.47,004 crores.

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

1993 was the year in which the first Mutual Fund Regulations came into being,
under which all mutual funds, except UTI were to be registered and governed.
The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the
first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry
now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of
January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805
crores.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities. One is the Specified Undertaking of
the Unit Trust of India with assets under management of Rs.29,835 crores as at
the end of January 2003, representing broadly, the assets of US 64 scheme,
assured return and certain other schemes

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It
is registered with SEBI and functions under the Mutual Fund Regulations.
consolidation and growth. As at the end of September, 2004, there were 29
funds, which manage assets of Rs.153108 crores under 421 schemes.
 26

Mutual funds can be classified as follow :

Based on their structure:

• Open-ended funds: Investors can buy and sell the units from the fund, at
any point of time.

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

Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments.
With fluctuating share prices, such funds show volatile performance, even
losses. However, short term fluctuations in the market, generally smoothens
out in the long term, thereby offering higher returns at relatively lower
volatility. At the same time, such funds can yield great capital appreciation as,
historically, equities have outperformed all asset classes in the long term.
Hence, investment in equity funds should be considered for a period of at least
3-5 years. It can be further classified:
 27

i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is
tracked. Their portfolio mirrors the benchmark index both in terms of
composition and individual stock weightages.

ii) Equity diversified funds- 100% of the capital is invested in equities spreading
across different sectors and stocks.

iii|) Dividend yield funds- it is similar to the equity diversified funds except that
they invest in companies offering high dividend yields.

iv) Thematic funds- Invest 100% of the assets in sectors which are related
through some theme.

e.g. -An infrastructure fund invests in power, construction, cements sectors

etc.

v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking
sector fund will invest in banking stocks.

vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

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

i) Debt-oriented funds -Investment below 65% in equities.

ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.

 28

RISKS VS RETURN
 29

INVESTMENT STRATEGIES

1. Systematic Investment Plan: under this a fixed sum is invested each month
on a fixed date of a month. Payment is made through post dated cheques or
direct debit facilities. The investor gets fewer units when the NAV is high and
more units when the NAV is low. This is called as the benefit of Rupee Cost
Averaging (RCA)

2. Systematic Transfer Plan: under this an investor invest in debt oriented fund
and give instructions to transfer a fixed sum, at a fixed interval, to an equity
scheme of the same mutual fund.

3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual

fund then he can withdraw a fixed amount each month.
 30

CHAPTER :3
OBJECTIVES AND
SCOPE
 31

OBJECTIVES OF THE STUDY

1. To find out the Preferences of the investors for Asset Management

Company.

2. To know the Preferences for the portfolios.

3. To know why one has invested or not invested in Motilal oswal Mutual

fund.

4. To find out the most preferred channel.

5. To find out what should do to boost Mutual Fund Industry.

 32

Scope of the study

A big boom has been witnessed in Mutual Fund Industry in resent 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 New delhi. I had been sent at one of the branch
of motilal Oswal in new delhi where I completed my Project work. I surveyed
on my Project Topic “A study of preferences of the Investors for investment in
Mutual Fund” on the visiting customers of the Motilal Oswal franchise in
Dwarka sector 4 market.

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.
 33

CHAPTER:4

RESEARCH
METHODOLOGY.
 34

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

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

Duration of Study:
The study was carried out for a period of two months, from 1st June to 30 july.
 35

Sampling:

Sampling procedure:

The sample was selected of them who are the customers/visitors of motilal
oswal connaught place 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.
 36

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 Motilal Oswal financial

services, Connaught place branch new delhi 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 new delhi.

 37

Chapter – 5

Data Analysis
&
Interpretation
 38

1. (a) Age distribution of the Investors of Dehradoon

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 18 20
16
5 12

0
<=30 31-35 36-40 41-45 46-50 >50
Age group of the Investors

Interpretation:

According to this chart out of 120 Mutual Fund investors of Dehradoon 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.
 39

Educational Qualification of investors of NEW Delhi .

Educational Qualification Number of Investors

Graduate/ Post Graduate 88

Under Graduate 25

Others 7

Total 120

Interpretation:
Out of 120 Mutual Fund investors 71% of the investors in New Delhi are
Graduate/Post Graduate, 23% are Under Graduate and 6% are others (under
HSC).
 40

). Occupation of the investors of New Delhi

Occupation No. of Investors

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

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.

 41

Chapter – 6
Findings and
Conclusion
 42

Findings

In New Delhi in 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.

In New Delhi 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, MOMF places after
ICICI Prudential according to the Respondents.
 43

Out of 55 investors of MOMF 64% have invested due to its association

with the Brand MOMF 27% Invested because of Advisor’s Advice and 9% due
of MOMF, 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, SBIMF 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.

Most of the Investors did not want to invest in Sectoral Fund, only 21%
wanted to invest in Sectoral Fund.
 44

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 New Delhi 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, SBIMF, 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 penalty load. Only those people invest directly who know well
about mutual fund and its operations and those have time.