SUMMER INTERNSHIP REPORT

ON

“CUSTOMER PREFERENCE ON
MUTUAL FUNDS”

Submitted To Partial Fulfillment of

Masters of Business Administration (MBA)

At

CAREER POINT UNIVERSITY (KOTA)

SUBMITTED TO: SUBMITTED BY:

AJAY SIR JYOTI AGARWAL

(INDIA NIVESH SECURITIES LTD.) (K14790)
MBA 3RD SEM

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 EXECUTIVE SUMMARY

Mutual Funds have gained popularity as an investment vehicle over the past few years. It is a
professionally managed type of collective investment scheme that pools money from many
investors and invest it in stocks, bonds, short term money market instruments and other
securities. Though technically, must have been in India since 1963 through Unit Trust of
India, the industry has gained importance only recently after new private sector funds and
funds backed by global investment houses set up shop in India.

Mutual funds have often been associated with equity markets. While that is industry, the debt
or fixed income side has also gained prominence in the recent past. In fact, now mutual funds
offer schemes for all type of investors from the risk averse to high risk takers.

This report lays a great stress on investor education. The primary objective is to explain in
clear and simple language, the benefits and pitfalls of investing in mutual funds. There is a
gap in the market about quality information on mutual funds. Most of the information is
inadequate or biased towards a particular scheme/fund or a particular strategy. This report
attempts to look at the subject from the point of view of an ordinary investor who has little
time to get into the technical details of mutual funds.

This report will help to know about the preferences of the investors for investment in mutual
funds means are they prefer any particular asset management company (AMC), which type
of product they prefer, which option they prefer (Growth or Dividend) or which investment
strategy they follow (systematic investment plan or one time plan). This report as a whole can
be divided into four parts.

The first part of the report explains the overview of India Nivesh securities ltd.

The second part deals with the basics of Mutual Fund Including the history, types of mutual
funds, basis of selection, types of investors and the recent trends in the industry.

The third portion deals with doubts and questions that arise in investors mind about Mutual
Funds and investors point of view towards Mutual Funds.

And the fourth and last part includes conclusion and recommendations, references and
bibliography.

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 ACKNOWLEDGEMENT

First of all, I praise the almighty God for his abundant blessings showered upon me without
which this report work would never have been possible.

I would like to thank India Nivesh Securities Ltd. and CAREER POINT UNIVERSITY
for giving me an opportunity to learn and pursue my Summer Internship.

I would like to express my sincere gratitude to Prof. UPASNA TYAGI School of Studies in
Commerce and Management, Head of the Department, Career Point University Kota. My
guide and mentor for accepting me and for her constant encouragement and support which to
me is wordless to explain. I am proud to record that her immense knowledge and expertise
have benefited me in each and every sphere of the report work.

Lastly, I would like to acknowledge the contribution of those whose names have not been
mentioned but who have, nevertheless, played their part in making this report work
successful.

THANK YOU.

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 TABLE OF CONTENTS

SR.NO TOPIC PAGE NO.

1 INTRODUCTION OF COMPANY 7-17

1.1 Vision and Mission 8

1.2 Core Values 9
1.3 Brand Identity 10
1.4 Leadership Team 11
1.5 Services Provided By India Nivesh 12-15
1.6 Trading With India Nivesh 16
1.7 Tariff structure 17
2 INTRODUCTION ON MUTUAL FUNDS 18-36
2.1 Organization Of Mutual Funds 19-20
2.2 History Of Mutual Funds 21-22
2.3 Classification of Mutual Funds Schemes 23-25
2.4 Mutual Funds For Whom? 26
2.5 Why Mutual Funds? 27-28
2.6 Types of investors 29-30
2.7 Marketing Strategies Adopted By Mutual Funds 31-32
2.8 Marketing of Mutual funds 33-35
3 RESEARCH METHODOLY 37-38

4 DATA ANALYSIS AND INTERPRETATION 39-45

5 CONCLUSION 46

6 RECOMMENDATION 47
7 APPENDICES 48-50

8 BIBLIOGRAPHY 51

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 LIST OF FIGURE:

Figure 1: Classification as per gender

Figure 2: Classification as per age
Figure 3: Profile of investors on the basis of income
Figure 4: Reason for not investing in mutual funds
Figure 5: Awareness level of mutual funds investors
Figure 6: Source of information for investors
Figure 7: Key factors that affect investors
Figure 8: Preferable mode of investment in MF
Figure 9: Intermediaries in Mutual Fund

LIST OF TABLE:

Table 1: Ranking of AMC’s as per Investors.

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 OVERVIEW OF INDIA NIVESH SECURITIES LIMITED

(1) INTRODUCTION

India Nivesh is a fully fledged financial services company having a strong network of
branches spread across India. The story of India Nivesh is in sync with the growth of India.

As the country’s economy has involved, so have the needs of investors and business. With
over 11 years of existence and organizational experience of over 300 years, company has a
deep understanding of financial market. More importantly, India Nivesh combines objectivity
with its expertise to offer its services with a personalized approach. Company’s sales force
has been acclimatized to deliver world class services resulting in customers enjoying a
pleasant experience while fulfilling their goals.

The onset of the technology revolution in financial services industry saw the emergence of
India Nivesh as an electronic custodian registered with National securities Depository Ltd.
(NSDL) and Central Securities Depository Ltd. (CDSL). India Nivesh set standards enabling
further comfort to the investor by promoting paperless trading across the country. Offering a
wide trading platform with a dual membership at both NSDL and CDSL, they are a powerful
medium for trading and settlement of dematerialized shares.

Their daily report provides up-dated information on market trends, investment options, etc.
Thus empowering the investor to base every financial move on rational thought and prudent
analysis and embark on the path to wealth creation.

To ensure effective solutions for its customers, company’s experienced team has
conceptualized and deployed technological tools that have been custom-built to analyze
markets incisively and holistically.

At India Nivesh, they maintain the highest standards of ethos, client service and
professionalism while keeping the interest of their stakeholders foremost.

India Nivesh motto is “Trust, We Earn It” and they continuously earn trust by following their
core principles and by excelling in delivery of product and service.

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 1.1
VISION

To be the trusted, change catalyzing and value enhancing financial services group of
India.

MISSION

To provide customized and innovative financial solutions, while managing internal

and external risks and challenges.

To enhance professional competencies continuously with new technologies and game

changing alliances.

To encourage entrepreneurship amongst the people, within their value system.

To exceed client expectations in all their endeavors.

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 1.2 CORE VALUES

1. EXCELLENCE

2. INTEGIRTY

3. ESTEEM

4. LEADERSHIP

5. ENTERPRENEURSHIP

6. SOCIAL RESPONSIBILITY

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 1.3 BRAND IDENTITY

India Nivesh brand identity says it all. A HANDSHAKE represents partnership and trust. A
SHIELD represents security and longevity. A HANDSHAKE and SHIELD together
represent-

PARTNERHIP - Long term association with their stakeholders.

TRUST- Which company clients bestow on them.

SECURITY- Preservation of capital

LONGEVITY- Creation of wealth.

At India Nivesh, they strive to earn the trust of their clients while protecting their wealth.
They believe that winning the trust and protecting the wealth of their clients is more
important than achieving personal targets. It is certain that growth is never by mere chance it
is the core thought that has helped us transform into a progressive financial services group
not only in the country, but across the globe.

India Nivesh understands the customer needs and lifestyle in the context of present earning
and provides adequate advisory services that will necessarily help in creating wealth. The
investment planning for each customer is done with an unbiased attitude so that the service is
truly customized.

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 1.4 LEADERSHIP TEAM

Rajesh Nuwal
(Founder of the IndiaNivesh Group and Managing Director)

Rajesh Nuwal has a deep understanding of financial markets across asset classes. His forte
lies in identifying investment opportunities and providing innovative solutions that meet the
requirements of diverse client segments. Rajesh is a Chartered Accountant and Cost and
Works Accountant.

Dinesh Nuwal
(Co-founder of India Nivesh group, Managing Director and
Head of Risk)

His forte is in operations, risk management, taxation, corporate affairs and regulatory
compliances associated with markets, investments and trading. He is also the trustee of
Charitable Trust, Parmarth Seva Samiti, Mumbai. He is a Chartered Accountant.

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 1.5 SERVICES PROVIDED BY INDIA NIVESH

A. BROKERAGE AND DISTRIBUTION SERVICES

At India Nivesh, they have a holistic offering of products and services driven by ‛client-first’
approach. They provide broking services in equities, derivatives, commodities and currencies.
Their offerings also include distribution of IPOs, mutual funds, portfolio management
services, debt instruments and insurance products.

They have a presence across 175 cities including 22 branches through which they offer
personalized relationship support system.

PRODUCTS OF INDIA NIVESH

EQUTIES MUTUAL FUNDS

IPO/OFS
DERIVATIVES

CURRENCIES INSURANCE

COMMODITIES LAS & MTF

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B. INSTITUTIONAL EQUITIES

Institutional Equities refers to the highest standards of research quality and client
service. Their experienced research, sales and trading professionals aim to exceed
client expectations through a content-led platform.

a) RESEARCH
India nivesh also provides extensively researched thematic notes and company
and industry surveys. Their research focuses on accuracy, timeliness so as to
enable their clients make well informed investment decisions.

b) SALES
Their institutional platform is backed by sales professionals with extensive
experience and is designed to help clients gain instant access to news, domestic
and global economic development, information on stock markets, individual
stocks and sectors, and other relevant updates.

c) TRADING
At India Nivesh trades are carried out efficiently, objectively, and with total
confidently.

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C. PMS, PE AND STRATEGIC INVESTMENT

a) PORTFOLIO MANAGEMENT SERVICES

India Nivesh portfolio management services (PMS) is a SEBI-registered portfolio
manager. The aim of PMS is capital preservation and long term wealth creation
through various portfolio strategies. Their current offering “SPROUT” portfolio,
focuses on small and micro-cap companies that have a sustainable business model.

b) PRIVATE EQUITY
India Nivesh growth and special situations fund is of Rs. 150 crore private equity

funds aimed at creating high growth direct investment opportunities.

c) STRATEGIC INVESTMENT

India Nivesh has made strategic investments in distressed assets. In fact, India Nivesh
has a good track record in converting distressed assets into hugely profitable
investment opportunities.

D. INVESTMENT BANKING AND CORPORATE ADVISORY

a) CAPITAL RAISING

India Nivesh plays an important role in raising capital from domestic as well as
international sources.

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b) CORPORATE FINANCE
India Nivesh corporate finance activities are largely advisory in nature and mostly
geared towards meeting the funding requirements of SME businesses, from domestic
& international markets.

Broadly their services include the following:

 Preparing for project reports.

 Enabling raising of capital to finance growth or working capital requirement.

This covers equity and debt financing.

 Arranging funding for special situations and promoter requirement.

 Mergers and Acquisitions in India and overseas.

E. WEALTH MANAGEMENT

Wealth management services of India Nivesh are tailored to protect and create wealth
according to the risk taking capacity of each client. They use diverse set of tools and
analytics to design strategies and solutions for every client.

They help individuals, trusts, as well as corporate treasuries with their wealth
management needs. Their recommended products are based on a systematic selection of
the asset sponsor.

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 1.6 TRADING WITH INDIA NIVESH

This section will introduce you about the process and instruments used to help a customer or
a client to trade with India Nivesh securities. This process is almost similar to any other
trading firm but there will be some differences in the cost of brokerage commission.

Trading:

It is a process by which a customer is given facility to buy and sell shares, this buying and
selling can only be done through some broker and this is where India Nivesh helps its
customers.

A customer willing to trade with any brokerage house need to have a Demat account, trading
account with a brokerage firm. Anyone having following document can open all the above
mentioned account and can start trading.

DOCUMENT REQUIRED:

 3 Photographs
 Photo Identification Proof – any of the following – Voter ID/Driving
License/Passport.
 Address proof any of the following - Voter ID/Driving license/Passport/Bank
statement/BSNL landline bill.
 A Crossed cheque favoring “INDIA NIVESH SECURITIES LTD.” Of the required
amount

 Copy of PAN card is mandatory.

BASIC REQUIREMENT FOR DOING TRADING:

Trading requires opening a Demat account. Demat refers to dematerialized account.

We need to open Demat account if we want to buy or sell stock. So it is just like a bank
account where actual money is replaced by shares.

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 1.7 TARIFF STRUCTURE FOR DEPOSITORY SERVICES

S.NO SERVICE INDIVIDUAL CORPORATE

1 DEMATERIALISATION 40/- 40/-
(For Every 50 Certificate)
2 REMATERIALISATION Rs.10/- for every 100 shares subject to
maximum 5 lacs
3 EQUITY 0.03% 0.03%
Transfer Fees-Market & Off Market
(Per Transaction minimum of Rs. 15/-)
4 PLEDGE Rs. 100/- or 0.02% Rs. 100/- or
Creation/Confirmation/Closure/Invocation) Whichever is higher 0.02%
Whichever is
higher
5 Account Maintenance Charges Rs. 75/- per quarter Rs. 75/- per
(Per Quarter pro-rata upfront) quarter

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 (2) INTRODUCTION ON MUTUAL FUNDS

Mutual Funds refer to funds which collect money from investors and put this money in
stocks, bonds and other securities to gain financial profit. Persons whose money is used by
the Mutual Fund Manager to buy stocks, bonds and other securities, get a percentage of the
Profit earned by the mutual fund in return of their Investments. In this way, the mutual fund
offers benefit to both parties. 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.

A mutual fund is a type of financial intermediary that pools the funds of investors who seek
the same general investment objectives and invests them in a number of different types of
financial claims (e.g. equity shares, bonds, money market instruments). These pooled funds
provide thousands of investors with proportional ownership of diversified portfolios
managed
by professional investment managers. The term “mutual” is used in the sense that all its
returns, minus expenses, are shared by the fund’s unit holders.

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 2.1 ORGANISATION OF MUTUAL FUNDS IN INDIA

Sponsors:
They are the individuals who think of starting a mutual fund. The Sponsor approaches SEBI,
the market regulator and also the regulator for mutual funds. Not everyone can start a mutual
fund. SEBI will grant a permission to start a mutual fund only to a person of integrity, with
significant experience in the financial sector and a certain minimum net worth. These are just
some of the factors that come into play.

Trustee:
Once SEBI is satisfied with the credentials and eligibility of the proposed Sponsors, the
Sponsors then establish a Trust under the Indian Trust Act 1882. Trusts have no legal identity
in India and thus cannot enter into contracts. Hence the Trustees are the individuals
authorized to act on behalf of the Trust. Contracts are entered into in the name of the
Trustees. Once the Trust is created, it is registered with SEBI.

Asset Management Company:

Asset Management Company is the one which will manage the asset (money collected to
invest on company shares) of its customers by appointing a manager under several schemes.
Every scheme will have a specific objective, which is framed at the time of introducing the
scheme. A manager is to be appointed under the scheme to keep up the objectives framed. He
should take care that the investment on specific scheme should not affect the customer's asset.
The schemes being introduced by the Asset Management Companies is known as Mutual
Fund Scheme. As per the Mutual Fund definition, the Asset is the money received towards a
collective investment plan. This will help the small investors to increase their asset with the
help of Asset Management Companies. Anyhow an investor cannot blame AMC, for its
under performance. We need to have a quick review on the performance of the fund in which
we invest, at least once in 3 months. The AMC will help in providing the various investment
plans. We should select the suitable plan from it which can meet our requirement. So risks are
based on our decisions.

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 Top Asset Management Companies in India:

As it is very tough to find the best one AMC among the list, with the past performance and
the returns of the schemes they have, many are suggesting the following the AMC as top
among the 44. It is not in order from the first to last, all may have same importance.

1) Axis AMC ltd.

2) Reliance Capital AMC Ltd.

3) SBI Funds Management Ltd.

4) HDFC Asset Management Co. Ltd.

5) ICICI Prudential AMC Ltd.

6) Franklin Templeton AMC (I) Pvt. Ltd.

7) Birla Sun Life AMC Ltd.

8) UTI AMC Ltd.

9) Tata Asset Management Ltd.

10) DSP Blackrock Investment Managers Pvt. Ltd.

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 2.2 HISTORY OF MUTUAL FUNDS

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 of India. The history of mutual
funds in India can be broadly divided into four distinct phases.

First Phase: 1964 – 87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs.6, 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 Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990.

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

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996.

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The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions.
As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805
crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way
ahead of other mutual funds.

Fourth Phase: Since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs.29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations. The second is the UTI Mutual Fund, sponsored by SBI, PNB,
BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.
With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000
crores of assets under management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place
among different private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth.

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 2.3 CLASSIFICATION OF MUTUAL FUNDS SCEMES

Any mutual fund has an objective of earning income for the investors and/ or getting
increased in value of their investments. To achieve these objectives mutual funds
adopt different strategies and accordingly offer different schemes of investments.
On this basis the simplest way to categorize schemes would be to group these into two
broad classifications:

OPERATIONAL CLASSIFICATION AND PORTFOLIO CLASSIFICATION:

Operational classification
Highlights the two main types of schemes, i.e., open-ended and close-ended which are
offered by the mutual funds.

Portfolio classification
Projects the combination of investment instruments and invest avenues available to mutual
funds to manage their funds. Any portfolio scheme can either open ended or close ended.

OPERATIONAL CLASSIFICATION

OPEN ENDED SCHEMES:

As the name implies the size of the scheme is open-not specified or predetermined. Entry to
the fund is always open to the investor who can subscribe at any time. Such funds stand ready
to buy or sell its securities at any time. It implies that the capitalization of the fund is
constantly changing as investors sell or buy their shares. Further the shares or units are
normally not traded on the stock exchange but are repurchased by the fund at announced
rates.

Open ended schemes have comparatively better liquidity despite the fact that these are not
listed. No minute to minute fluctuations in rates haunt the investors. The portfolio mix of
such schemes has to be invested, which are actively traded in the market. Otherwise it will
not be possible to calculate NAV. This is the reason that generally open-ended schemes are
equity based. Thus success of the open ended schemes to a great extent depends on the
efficiency of capital market and the selection and equity of the portfolio.

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CLOSE ENDED SCHEMES:

Such schemes have a definite period after which their shares/ units are redeemed. Unlike
open-ended funds, these funds have fixed capitalization, i.e., their corpus normally does not
change throughout its life period. Close ended fund units trade among the investors in
the secondary market since these are to be quoted on the stock exchanges. Their price
is determined on the basis of demand and supply in the market. Their liquidity depends on the
efficiency and understanding of the engaged broker. Their price is free to deviate from NAV,
i.e., there is every possibility that the market price may be above or below its NAV. If one
takes into account the issue expenses, conceptually close ended fund units
cannot be traded at a premium or over NAV because the price of a package of
investments, i.e., cannot exceed the sum of the prices of the investments constituting
the package. Whatever premium exists that may exist only on account of speculative
activities. In India as per SEBI (MF) Regulations every mutual fund is free to launch any or
both types of scheme.

Portfolio Classification of Funds:

Following are the portfolio classification of funds, which may be offered. This
classification may be on the basis of (A) Return, (B) Investment Pattern, (C) Specialized
sector of investment, (D) Leverage and (E) Others.

(A) Return based classification:

To meet the diversified needs of the investors, the mutual fund schemes are made to
enjoy a good return. Returns expected are in form of regular dividends or
capital appreciation or a combination of these two.

1. INCOME FUNDS
For investors who are more curious for returns, Income funds are floated. Their
objective is to maximize current income. Such funds distribute periodically the
income earned by them. These funds can further be spitted up into categories: those that
stress constant income at relatively low risk and those that attempt to achieve maximum
income possible, even with the use of leverage. Obviously, the higher the expected returns,
the higher the potential risk of the investment.

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2. GROWTH FUNDS

Such funds aim to achieve increase in the value of the underlying investments through capital
appreciation. Such funds invest in growth oriented securities which can appreciate through
the expansion production facilities in long run. An investor who selects such funds are able to
assume a higher than normal degree of risk.

(B) Investment based classification:

1. BOND FUNDS

Such funds have their portfolio consisted of bonds, debentures, etc. this type of fund is
expected to be very secure with a steady income and little or no chance of capital
appreciation. Obviously risk is low in such funds. In this category we may come across
the funds called ‘Liquid Funds’ which specialize in investing short-term money market
instruments. The emphasis is on liquidity and is associated with lower risks and low returns.

2. BALANCED FUND:

The funds, which have in their portfolio a reasonable mix of equity and bonds, are
known as balanced funds. Such funds will put more emphasis on equity share
investments when the outlook is bright and will tend to switch to debentures when the future
is expected to be poor for shares.

(C) Sector Based Funds:

There are number of funds that invest in a specified sector of economy. While such funds do
have the disadvantage of low diversification by putting all their all eggs in one basket, the
policy of specializing has the advantage of developing in the fund managers an intensive
knowledge of the specific sector in which they are investing. Sector based funds are
aggressive growth funds which make investments on the basis of assessed bright future for a
particular sector. These funds are characterized by high viability, hence more risky.

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 2.4 MUTUAL FUNDS FOR WHOM?

These funds can survive and thrive onl y if they can live up to the hopes and
trusts of their individual members. These hopes and trusts echo the peculiarities which
support the emergence and growth of such insecurity of such investors who come to
the rescue of such investors who face following constraints while making direct
investments:

(a) Limited resources in the hands of investors quite often take them away
from stock market transactions.

(b) Lack of funds forbids investors to have a balanced and diversified portfolio.

(c) Lack of professional knowledge associated with investment business unable

investors to operate gainfully in the market. Small investors can hardly afford to have
ex-pensive investment consultations.

(d) To buy shares, investors have to engage share brokers who are the members
of stock exchange and have to pay their brokerage.

(e) They hardly have access to price sensitive information in time.

(f) It is difficult for them to know the development taking place in share
market and corporate sector.

(g) Firm allotments are not possible for small investors on when there is a trend
of over-subscription to public issues.

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 2.5 WHY MUTUAL FUNDS?

M ut ual Funds ar e becom i n g a v er y popul ar form of i nvest m ent

chara ct eri z ed b y m an y advantages that they share with other forms of
investments and what they possess uniquely themselves. The primary objectives of an
investment proposal would fit into one or combination of the two broad categories, i.e.,
Income and Capital gains. How mutual fund is expected to be over and above an
individual in achieving the two said objectives, is what attracts investors to opt for
mutual funds. Mutual fund route offers several important advantages.

Diversification:
A proven principle of sound investment is that of diversification, which is the idea of not
putting all your eggs in one basket. By investing in many companies the mutual
funds can prot ect t hem sel ves from un ex pect ed drop i n val ues of som e
s hares . The sm al l investors can achieve wide diversification on his own because of many
reasons, mainly funds at his disposal. Mutual funds on the other hand, pool funds of
lakhs of investors and thus can participate in a large basket of shares of many different
companies. Majority of people consider diversification as the major strength of mutual
funds.

Expertise Supervision:
Making investments is not a full time assignment of investors. So they hardly have a
professional attitude towards their investment. When investors buy mutual fund
scheme, an essential benefit one acquires is expert management of the money he
puts in the fund. The professional fund managers who supervise fund’s portfolio
take desirable decisions vi z ., what scr i p’s are t o be bought , w hat i nvest m ent s
are t o be sol d and m ore approp ri at e decision as to timings of such buy and sell.

Reduced risks:
Risk in investment is as to recovery of the principal amount and as to ret urn on i t .
M ut ual fund i nvest m ent s on bot h front s provi de a com fo rt abl e si t uat i on
for investors. The expert supervision, diversification and liquidity of units ensured in mutual

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funds reduce the risks. Investors are no longer expected to come to grief by falling prey to
misleading and motivating ‘headline’ leads and tips, if they invest in mutual funds.

Liquidity of Investment:
A distinct advantage of a mutual fund over other investments is that there is always a market
for its unit/ shares. Moreover, Securities and Exchange Board of India (SEBI) requires the
mutual funds in India have to ensure liquidity. Mutual funds units can either be sold in the
share market as SEBI has made it obligatory for closed -ended schemes to list
themselves on stock exchanges. For open-ended schemes investors can always approach the
fund for repurchase at net asset value (NAV) of the scheme. Such repurchase price and NAV
is advertised in newspaper for the convenience of investors.

Safety of Investment:
Besides depending on the expert supervision of fund managers, the legislation in a
country (like SEBI in India) also provides for the safety of investments. Mutual
funds have to broadly follow the laid down provisions for their regulations, SEBI acts as a
watchdog and attempts whole heatedly to safeguard investor’s interests.

Tax Shelter:
Depending on the scheme of mutual funds, tax shelter is also available. As per the Union
Budget-2003, income earned through dividends from mutual funds is 100% tax -free
at the hands of the investors.

Minimize Operating Costs:

Mutual funds having large invisible funds at their disposal avail economics of
scale. The brokerage fee or trading commission may be reduced substantially. The
reduced operating costs obviously increase the income available for investment.

27 | P a g e
 2.6 TYPES OF INVESTORS

The ET survey on equity investors in the secondary market has identified different categories
of investors based on their characteristics. Many questions are raised about the behavior of
the small investors under different circumstances. The answer too many of these questions
and similar others is not difficult to interpret once we identify the different types of retail
investors in the stock markets.

The survey shows that there are 5 kinds of investors: “intellectuals”, “carvaliers” “
reactivists” and “gamblers”. This classification is based on the attitudes of investors towards
secondary market investments. Let’s explain each type of investors and understand psyche
and behavioral patterns:

INTELLECTUALS:

This investor group forms around 17% of the total investment class. They are the
intelligent investors who follow an intelligent, individualist approach to investment planning
and a well-defined and deliberate strategy for stock investment. These investors are self
reliant good stock pickers and try to monetize market knowledge. Giving proof of their
intelligence, they consider low-risk; low–gain guaranteed return avenues as passé. Also, they
believe in and work towards a well-planned. Asset allocation and seek the right mix of
stability and reliability of returns. The ‘intellectuals’ are unaffected by short–term
fluctuations and prefer long–term investments. Moreover, t he y are di sci p l i ned
enough t o observ e profi t t arge t s whi ch t he y hav e set for themselves. And as
they invest for the long term, they are not concerned with short term losses. They manager
their money themselves and understand the industry/sector before investing.

CAVALIERS:

As high as 49% of the investors are ‘cavaliers’. They are those who have lost money in ‘fly-
by –night ‘schemes. Therefore, much of their investments are driven by the desire to recover
past losses and make profits in the future. However, they will also invest in FDs and
insurance as a precautionary measure. They get tempted to speculate in t he

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secondary market and once in a while, they actually speculate but with smaller amounts.
The cavaliers try to gather all available information and compare it with opinions from
experts in the media, but will trust their own judgment before making decisions.

REACTIVISTS:

About 5% of the investors fall under this category. These investors basically short-term
investors, are impulsive info addicts who are vulnerable to external influences and as such,
they have no specific investment patterns, They believe that dynamic and ad hoc
investments will result in better profits and are prompted to act on popular opinion
rather than systematic.

GAMBLERS

This class perceives all securities as tradable commodities to be bought and sold in the
short term. However, they know completely about the risk factors and therefore,
have a tendency to invest only as much as they are willing to lose. As a part, of the
game and this does not act as a hindrance for future investments. They do not trust
brokers, but will secretly verify their suggestions for fear of missing an opportunity. They
ascertain fair val ue of st ocks on gut feel i ng rat h er t han an y fi nanci al anal ys i s
and us e s udden dow nward fluctuations as buying opportunities.

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 2.7 MARKETING STRATEGIES ADOPTED BY MUTUAL FUNDS

(A)
DIRECT MARKETING

This constitutes 20% of the total sales of mutual funds. Some of the important tools used in
this type of selling are:

Personal selling: in this case the customer support officer or relationship Manager of the
fund at a particular branch takes appointment from the potential prospect. The conversation
rate in this mode of selling is in between 30%-40%.

Telemarketing: In this case the emphasis is to inform the people about the fund. The names
and phone numbers of the people are picked random form telephone directory. Some fund
houses have their database of investors and they cross sell their products. Generally the
conversation rate in this form of marketing is 15%-20%.

Direct mail: This one is the most common method followed by all mutual funds. Addresses
of people are picked at random from their telephone directory, business directory,
professional directory etc.

Advertising in newspapers and magazines: the funds regularly advertise in business

newspapers and magazines besides in leading national dailies. The purpose to keep investors
aware about the schemes offered by the fund. The funds are aggressively giving their
advertisements in TV and FM channels to promote their funds.

Hoardings and Banners: in this case the hoardings and banners of the fund are put at
important locations of the city where the movement of the people is very high. The hoarding
and banner generally contains information either about one particular scheme of brief
information about all schemes of fund.

30 | P a g e
 (B)
SELLING THROUGH INTERMIARIES

Intermediaries contribute towards 80% of total sales of mutual funds. These are the
people/distributers who are in direct tough with the investors. They do a commendable job in
convincing investors to invest in mutual funds. A lot depends on the after sale services
offered by the intermediary to the customer. Customers prefer to work with those
intermediaries who give them right information about the fund and keep them abreast with
the latest changes taking place in the market especially if they have any bearing on the fund
in which they have invested.

Regular meeting with distributors:

Most of the funds conduct monthly/by-monthly meetings with their distributers. The
objective is to hear their complaints regarding service aspects from funds side and other
queries related to the market situation. Sometimes, special training programmes are also
conducted for the new agents/distributers. Training involves giving details about the products
of the fund, their present performance in the market, what the competitors are doing and what
they can do to increase the sales of the fund.

(C)
JOINT CALLS
This generally done when the prospectus seems to be a high net worth investor. The
convers i on r at e i s v er y hi gh i n t hi s si t uat i on, gen er al l y, aro und 60%. Bot h
t h e fund and t he a ge nt provi de even a ft e r sal e servi ces i n t hi s particular case.

Meetings with HNI’s:

This is a special feature of all the funds. Whenever a top official visits a particular branch
office, he devotes at least one to two hours in meeting with the HNI’s of that particular area.
This generally develops a faith among the HNI’s towards the fun

31 | P a g e
 2.8 MARKETING OF MUTUAL FUNDS

Inv es t m ent i n m ut ual fund i s not a one -t i m e act i vi t y. It i s a cont i nuous

act i vi t y. The sam e i nvest or, i f sat i sfi ed, wi l l com e t o t he fund agai n and
agai n. W hen t he i nvest or sends hi s application, it is not only an application,
but it also contains vital information. Most of this information if tabulated and
analyzed would provide important insights into invest or needs, preferences and
behavior and enables us to target customers need more accurately, to achieve better
penetration, deeper loyalty and reduced costs. It is in this context that direct
marketing will assume increased importance. Knowing the customer thoroughly is of utmost
importance. Unlike the consumer goods industry, it is not possible for mutual fund
industry to test market and have pi l ot proj ect s befor e l aunch. At t he sam e
t i m e, focusi ng and c oncent rat i n g on a particular geographic area where the fund has
a strong presence and proven marketing network, can help reduce network, can help
reduce issue expenses and ultimately translate into higher returns for the investor.
Very little research on investor preference is available, but the industry can collectively have
a data bank, and share the information for appropriate use.

Market Segmentation Different segments of the market have different risk-return criteria, on
the basis of which they take investment decisions. Not only that, in a particular segment also
there could be different sub-segments asking for yet different risk-return attributes,
and differential preference for various investments attributes of financial product. Different
investment attributes an investor expects in a financial product are:

➢Liquidity,

➢Capital appreciation,

➢Safety of principal,

➢Tax treatment,

➢Dividend or interest income,

➢Regulatory restrictions,

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➢Time period for investment, etc
On the basis of these attributes the mutual fund market may be broadly segmented into five
main segments as under:

1) Retail Segment
This segment characterizes large number of participants but low individual volumes. It
consists of individuals, Hindu Undivided Families, and firms. It may be further sub-divided
into:
i. Salaried class people;
ii. Retired people;
iii. Businessmen and firms having occasional surpluses;
iv. HUF’s for long term investment purpose.

These may be further classified on the basis of their income levels. It has been
observed that prospe ct s i n di ffe rent cl as ses of i ncom e l evel s have di f fer ent
pat t erns of pref ere nces of investment. Similarly, the investment preferences for
urban and rural prospects would differ and therefore the strategies for tapping this
segment would differ on the basis of differential life style, value and ethics, social
environment, media habits, and nature of work. Broadly, this class requires security of the
principal, liquidity, and regular income more than capital appreciation. It lacks specialized
investment skills in financial markets and highly susceptible to mob behavior.

The m arket i n g st rat eg y i nvol vi n g i ndi rect sel l i ng t hrou gh agenc y net wo rk
and cre at i ng awareness through appropriate media would be more effective in this
segment.

2) Institutional Segment:
This segment characterizes less number of participants, and large individual volumes. It
consists of banks, public sector units, financial institutions, foreign institutional
investors, insurance c orporat i ons, provi dent and pensi on funds. Thi s cl as s
norm al l y l ooks for m ore speci al i z ed professional investment skills of the fund
managers and expects a structured product than a ready-made product. The tax features
and regulatory restrictions are the vital considerations in their investment decisions. Each
class of participants, such as banks, provides a niche to the fund managers in this segment.

33 | P a g e
 3) Trusts :
This is a highly regulated, high volumes segment. It consists of various types of trusts,
namely, ch ari t abl e t r ust s, rel i gi ous t rust , educat i onal t rust , fam i l y t rus t ,
s oci al t rust , et c. e a ch wi t h different objectives. Its basic investment need would be
safety of the principal, regular income and hedge against inflation rather than liquidity
and capital appreciation. This class offers vast potential to the fund managers, if
the regulators relax guidelines and allow the trusts to invest freely in mutual funds.

4) Non-Resident Indians
This segment consists of very risk sensitive participants, at times referred as ‘fair
weather friends.’ They need the highest cover against political and exchange risk. They
normally prefer easy exit with repatriation of income and principal. They also hold a strategic
importance as they bring in crucial foreign exchange – a crucial input for developing country
like ours. Marketing to this segment requires special kind of products for groups of foreign
countries depending upon the provisions of tax treaties. The range of suitable
products is required to design to divert the funds flowing into bank accounts. The
latest flavor in the mutual fund industry is exclusive schemes for non-resident Indians
(NRI’s).SBI MF has already launched an exclusive scheme for NRI’s. ICICI Prudential and
JM Mutual are in process of finalizing details and some more funds have also confirmed that
they are planning such schemes. The MF industry is also looking to tap the vast NRI funds
of about $5 billion that were transferred to the local banks as FCNR and NRE
deposits on the redemption of the Resurgent India Bonds in October, 2003. HDFC was one of
the first to launch a fixed maturity plan to NRI’s after the RIB redemption .The schemes had
collected Rs. 176-17 crores. Sundaram and HDFC are currently in the process of
strengthening distribution net-works overseas, especially in the Middle East. Sanjay
Santhanam, Vice President Marketing &Sales of Sundaram MF says, “We are
intensifying our efforts at tapping NRI money. To begin with, we are looking at a
representative office and a distribution network in Dubai. Then we will work out
specialized products and asset allocation models. NRI are used to seeing low interest
rates so their return expectations are different from domestic investors. The large
South Indian population in the Middle East will surely connect with the Sundaram
brand.”

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 5) Corporates
Generally, the investment need of this segment is to park their occasional surplus funds that
earn return more than what they have to pay on account of holding them. Alternatively, they
also get surplus fund due to the seasonality of the business, which typically become due for
the payment within a year or quarter or even a month. They need short term parking
place for their fund. This segment offers a vast potential to specialized money market
managers. Given the relaxation in the regulatory guidelines, fund managers are expected
design products to this segment. Thus, e ach s egm ent and sub -se gm ent has t hei r
own ri s k ret urn pr efer enc es form i ng ni ches i n t he market. Mutual funds
managers have to analyze in detail the intrinsic needs of the prospects and design a variety of
suitable products for them. Not only those, the products are also required to be marketed
through approximately different marketing strategies.

Inspired Marketing will help Mutual Funds walk away with the bank Deposits

Bankers better watch out! The Indian mutual fund industry will soon start relieving the
banking system of its prized deposits. Innovative distribution, marketing and aggressive
concept selling will drive savings into the lap of the Indian Mutual Fund industry in the
next millennium. Fund chiefs predicted that ease of t r ansact i ons, t hanks t o
t echnol og y and i ncr eased aw ar eness, w oul d l ead t o m ore invest ors put t i ng
t hei r m one y i nt o m ut ual funds. The da y was not far, t he y sa i d, when sm al l
s avi ngs account s too began moving into mutual funds. Significantly, fund chiefs were
unanimous that the credibility gap which the industry suffered f o r t h e p a s t f e w
years did not exist anymore. All the fund chiefs were unanimous
t h a t performance, service and support were all imperative for growth.
“Performance, transparency and after sales service and genuine retail investor interest as
opposed to hot corporate money, an i m p o r t a n t c o n t r i b u t o r t o m a n y m u t u a l
f u n d s c h e m e s , w i l l d r i v e t h e i n d u s t r y g r o w t h . “Performance, transparency,
after sales customer service and genuine retail investor interest are opposed to hot
corporate money, an important contributor to many mutual funds schemes will drive
the industry growth, On the state of market in general, fund chiefs attempted to allay fears
that an overvalued market may pose hurdles to stock picking.

35 | P a g e
 (3) RESEARCH METHODOLOGY
Meaning of research
Research refers to the systematic method consisting of theory and enunciating the problem,
formulating the hypothesis, collecting the facts or data, and reaching the conclusion.

Research methodology define as the systematic plan, design, collection, analysis and
reporting of data and findings relevant to a specific marketing situation facing the company

Data Source:
This report is based on primary as well as secondary data. The study aims at finding out the
attitude of the investors towards Mutual fund. This study was based mainly on primary
sources. The primary data was collected from the investors of mutual funds with help of the
questionnaire. The secondary data were collected from the books, records and journals. The
essential data were collected with the help of questionnaire.

PRIMARY DATA:-
Primary data are collected by a study specifically to fulfill the data needs of the problem at
hand. Such data are original in character and are generated in large number of surveys
conducted mostly by government and also by individual, institution, and research bodies.

METHODS OF COLLECTING PRIMARY DATA:-

 Direct personal interviews
 Indirect oral interviews.
 Information from correspondence.
 Mail questionnaire method.

SECONDARY DATA:-
Data which are not originally collected but rather obtained from published and unpublished
sources are known as secondary data.

SOURCES OF SECONDARY DATA:-

 Published sources

36 | P a g e
  Unpublished sources

Sampling procedure:
By adopting convenience sampling, approximately 50 respondents were selected for this
study. The essential data were collected with the help of questionnaire.

It was collected through filling up the questionnaire prepared. The data has been analyzed by
using Statistical tool.

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

Mathematical and statistical tools used for data analysis:

 Percentage method

 Average method.

Limitation:
The following were the limitation that were there during the course of study:
I. Limited time period, as the clients were busy with their own duty, they could give me
little time.
II. Biasness of the respondent.
III. Clients were not able to give proper time due to their busy schedule and time
constraints.
IV. Clients may have given wrong answers fearing the adverse consequences.
V. Some respondents were reluctant to divulge personal information which can affect
the validity of all responses.
VI. The research is confined only to the city KOTA.

37 | P a g e
 (4) DATA ANALYSIS AND INTERPRETATION

This section will provide results obtained from the survey, which have been examined and
evaluated through data analysis techniques. This chapter evaluates investor’s perception
towards mutual fund.

GENERAL INFORMATION

Total number of respondents is 50 out

GENDER of which 85% are male and 15% are
female respondents. Hence we can say
that the majority of our respondents are
male.

Figure 1: Classification as per gender

35 This shows that majority of the

respondents are young and they have
30
just started their career. It might be
25
possible that these respondents do not
20
No. of have complete knowledge of mutual
15 investors
fund and they might be investing in
10 various avenues according to the
5 advices given by their brokers and

0 agents.
Less 31-40 41-50 More
than 30 than 50

38 | P a g e
 Figure 2: Classification as per age

Majority of the respondents i.e. 59%

Distribution on the basis lie in the slab of annual income
of income between Rs. 3-5 lakhs. 34% of the
respondents have an income ranging
from Rs. 5-15 lakhs, while a minor
3-5 lakhs portion of 7% and 0% of the
5 -15 lakhs
respondents have an annual income of
15-25 lakhs
Rs. 15-25 lakhs and above Rs. 25
Above 15 lakhs
lakhs respectively.

Figure 3: Profile of investors on the basis of income

Question 1: Have you ever invested money in mutual fund?

This chart mainly talks about the

Have you ever invested in respondents‟ interest in investing in
mutual funds? Mutual Fund. Out of 50 people
surveyed it is seen that 75% of the
people are investing or invested their
money in MF whereas just 25% of
YES the people are not investing in MF.
NO This shows that mutual fund is
considered as a good option for
investment by most of the
respondents.

Figure 4: No. of investors who invest in mutual funds

39 | P a g e
Question 2: If you do not invest in mutual fund then why?

It clearly shows that 50% of people

Reason for not investing who don’t invest in mutual fund are
in mutual funds due to lack of awareness and
knowledge. And second most
Not aware about important reason is risk factor it is seen
MF
Higher risk
that 40% people think that mutual fund
is a risky investment. Also 6% people
Difficult to
think that it is difficult to understand
understand
Not any specific and 4% of people don’t give any
reason specific reason for it.

Figure 4: Reason for not investing in mutual funds

Question 3: Where do you find yourself as a mutual fund Invest?

It is seen that only 12% people are

Level of awareness in fully aware about mutual fund, where
mutual investors as 32% people are fully ignorant and
it seems that they invest their money
Totally
ignorant in mutual fund as per their advice of
their financial advisor. Around 16%
Partial
knowledge of people are aware only about specific
MF scheme in which they have invested
Aware about
their money and 40% are having
specific
schemes partial knowledge about mutual fund.
Fully aware

Figure 5: Awareness level of mutual funds investors

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Question 4: How do you come to know about various mutual funds scheme?

Figure 6 mainly talks about the source of

Source of information information for mutual fund investors. It is
clearly seen that the financial advisors stands
Advertisement
first as the main source of information that is

Peer groups 50% of sample size followed by banks (that

is 16% of sample) peer groups (that is 14%
Banks
of sample) and advertisement (that is 20% of
Financial sample). The point to be noted is that most
advisors
of the people prefer advice of their financial
advisor before investing in mutual fund
Figure 6 Source of information for investors

Question 5: Which feature of mutual fund attracts you most?

Figure 7 mainly talks about the key features

Features that attracts which attract investors towards mutual fund.
investors We can see that 40% of the respondents
have attracted because mutual fund provide
Diversification better returns and safety followed by tax
benefits (that is 36% of sample), regular
Better returns
and safety income (that is 12% of sample),
Regular diversification (that is 12% of sample.
income
Tax benefits

Figure 7: Key factors that affect investors

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Question 6: When you invest in mutual fund which mode of investment will you prefer?

Figure 8 shows the respondents‟ mode of

Mode of investment investment in mutual fund and it is seen
that 70% of people prefer systematic
investment plan and 30% people prefer one
One time
investment time investment in mutual fund.

Systematic
investment
plan

Figure 8: Preferable mode of investment in MF

Question 7: Where do you go to invest your money in mutual funds?

Intermediaries in
MF
Direct in AMC

Financial advisor

Distributor/Brok
er
Other source

Figure 9: Intermediaries in Mutual Fund

Figure 9 talks about who are the most effective intermediaries in mutual fund. It is clearly
seen that the financial advisors stands first as the main intermediaries that is 46% of sample
size followed by distributor/broker (that is 36% of sample) direct AMCs (that is 14% of
sample) and other source (that is 4% of sample).

42 | P a g e
Question 8: Which AMC’s would you like to prefer to invest your money?

NAME OF AMC NO. OF RESPONDENT RANK

ICICI Prudential Mutual Fund 37 1
HDFC Mutual Fund 28 2
Aditya Birla Sun Life Mutual Fund 26 3
Reliance Mutual Fund 22 4
SBI Mutual Fund 21 5
UTI Mutual Fund 19 6
Kotak Mahindra Mutual Fund 15 7
Axis Mutual Fund 10 8

TABLE NO. 1 Ranking of AMC’s as per Investors.

43 | P a g e
 (5) CONCLUSION

Even though the first mutual fund was introduced in year 1963, the awareness about mutual
fund is comparatively low among the Indian investors. Most of the Indians are unaware of a
financial option called mutual funds. Till now, the major part of saving goes into bank
deposits, postal deposits and insurance. In the competitive business environment good
performance of scheme of a particular mutual fund company plays a vital role in the minds of
the existing investors will deciding to invest than the brand name of the AMC.

Further this report shows that most of respondents are still confused about the mutual funds
and have not formed any attitude towards the mutual fund for investment purpose. It has been
observed that most of the respondents having lack of awareness about the various function of
mutual funds. Moreover, as far as the demographic factors are concerned, gender, income and
level of education have significantly influence the investor’s perception towards mutual
funds. As far as the benefits provided by mutual funds are concerned, return potential and
liquidity have been perceived to be most attractive by the investors followed by flexibility,
transparency and affordability. Apart from the above, in India there is a lot of scope for the
growth of mutual fund.

There are many improvements pending in the field and it has to happen as soon as possible so
as to call the MF industry as an Organized and well-developed sector.

44 | P a g e
 (6) RECOMMENDATIONS

 There is need to build awareness of the new funds among the investors with constantly
being in contact with them.

 Proper training should be given to the advisor so that they will solve the question of
the customer mind.

 Some of investors have asked for periodical market report about stock market so that
they can get the knowledge properly.

 AMCs should go for increasing more awareness about different facilities of investment
such as SIP among investors.

 The AMC should advertise their tax saving plan more so that they can gain more
customers.

 The promotional activities play a vital role. So it should be given importance for
creating more awareness among the people.

 To provide some kind of curriculum at the school/college level to create awareness

regarding Mutual Fund.

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 (7) APPENDICES

Questionnaire

 The Questionnaire given below is designed to conduct Primary research for measuring
perception of investors towards Mutual Funds.

 The Personal information will not be used/disclosed anywhere, It is solely used for
academic purpose only.

Section: 1
A) Name: _______________________________________________________

B) Age : _____________________ C) Gender: _________________

D) Yearly Income:
a. 3-5 Lakhs
b. 5-15 Laks
c. 15-25 Lakhs
d. Above 25 Lakhs

Section: 2

1) Have you ever invested money in mutual fund?

a. Yes ( )
b. NO ( )

If No,

2) If you do not invest in mutual fund then why?

a. Not aware of MF ( )
b. Higher Risk ( )
c. Difficult to Understand ( )
d. Not any specific Reason ( )
If Yes, Please Answer the below questions

46 | P a g e
 Section 3

3) Where do you find yourself as a mutual fund Investor?

a. Totally Ignorant ( )
b. Partial Knowledge of Mutual Fund ( )
c. Aware only of any specific scheme in which you invested ( )
d. Fully Aware ( )

4) How do you come to know about various mutual funds scheme?

a. Advertisement ( )
b. Peer Groups ( )
c. Banks ( )
d. Financial Advisors. ( )

5) Which feature of mutual fund allure you most?

a. Diversification ( )
b. Better Returns & Safety ( )
c. Regular Income ( )
d. Tax Benefits ( )

6) When you invest in mutual fund which mode of investment will you prefer?

a. One time investment ( )

b. Systematic investment plan ( )

7) Where do you go to invest your money in mutual funds?

a. Direct in AMCs ( )
b. Financial Advisor ( )
c. Distributor/Broker ( )
d. Other Source ( )

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8) Which AMC would you like to prefer to invest your money?

a. HDFC ( )
b. ICICI Prudential ( )
c. Reliance ( )
d. Aditya Birla Sun Life ( )
e. SBI MF ( )
f. Kotak Mahindra ( )
g. AXIS ( )
h. UTI MF ( )

48 | P a g e
 (8) BIBLIOGRAPHY

 www.amfiindia.com

 www.moneycontrol.com

 www.njgroup.in

 www.investopedia.com

 www.investor.sebi.gov.in

 www.bseindia.com

 www.nseindia.com

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