Comprensive Project

Chapter 1 Mohak
Consultancy
Chapter 1
1.1
Company name Mohak consultancy
Registered 102,Nirmal complex, Station Road , Nr.HDFC Bank ,Navsri,

Address Dist.:Navsari (Guj)
Pin-code 396445
Establishing year 2016
Legal status of Partnership limited company

firm
Contact no 9879684987
Recognized Prabhudas liladhar private limited, Mumbai based share brokers

Sub- broker of
Company profile
Mohak Consultancy is a private limited Company .It is recognized as sub-broker private limited
and it is registered Company.
Background of the Company
 Mohak consultancy was established in the year 2016 by partners Hamagini Desai,Viral
Naik and Dhaval Desai. Mohak consultancy private limited is a recognized sub-broker
of Prabhudas liladhar private limited, Mumbai Based share brokers. Strat firm with the
capital of 1:1:1.
 Mohak consultancy accommodation when they started their business activities was of
150 sq. Ft of their own.
 Mohak consultancy aim is full satisfaction of their valued customers and their motto
“come and make a covenant with us and you will never regret”
 Mohak consultancy helping their client to reach their financial goals and live fuller
richer and more satisfying lives. Based on the principle of inspiring trust the journey of
decades has been based on strong adherence to ethics, uncompromising dedication to
quality and an attitude of excellence.
 Mohak consultancy suggested investment options based on their complete knowledge

if Mutual Fun, insurance, bonds, fixed deposits and real estate.
 They are currently operated at 4 location in Gujarat that are Bardoli Branch, Surat
Branch, Viyara Branch, Navsari Branch.
 Mohak Consultancy purpose is to provide fast track salutation and thereby make people
enjoy a secured retirement life.
Vision, Mission and Quality policy
VISION
 “To be recognized as one of the leading financial and management consultants in
Gujarat”.
 For the faster development they explore and continuously research and development.
MISSION
 “To provides a comprehensive set of financial and management advisory services to
budding as well as large organisation with greater quality, efficiency and creativeness”.
Products segments:
1. IPO
2. Equity retail
3. PMS (portfolio management system)
4. Mutual Fund
An Initial public offering (IPO) is the first time that the stock of a private company is offered
to the public. IPOs are often issued by smaller, younger companies seeking capital to expand,
but they can also be done by large privately owned companies looking to become publicly
traded.
Portfolio Management Service (PMS) is a sophisticated investment vehicle that offers

customized investment strategies to capitalise on opportunities in the market. Efficient
Investment Management requires time, knowledge, understanding, expertise and constant
monitoring of developments in micro and macroeconomic environment. That is difficult for
investors because of involvement in its own business profession and other activities. Those
who need an expert to help to manage their investments, PMS is the right answer. Experienced
Fund Manager consider your financial goal and market environment to form a right investment
strategy that is best suitable for your portfolio. Given the unpredictable nature of the markets,
Our fund manager's experience and skill set along with strong research back up make your
investment to grow over the period and help you to achieve your financial goals. Systematic
PMS provide you access to an Institutional process of money management with higher
flexibility and dynamic approach.
A Mutual fund is an investment security that enables investors to pool their money together
into one professionally managed investment. Mutual funds can invest in stocks, bonds, cash or
a combination of those assets. The underlying security types, called holdings, combine to form
one mutual fund, also called a portfolio.
In simpler terms, mutual funds are like baskets. Each basket holds certain types of stocks, bonds
or a blend of stocks and bonds to combine for one mutual fund portfolio.
Major competitors
 Share khan stock exchange
 Religare sam. investment
 Patel investments
 Marwadi shares& finance security
 LKP securities
Organisation charts:
Dealers
 Jignsh bhavshar
 Divyash mahiad
 Dhenash modi
 Anial shah
Back office
 Hetal more
 Annant modi
Fess charges for investor’s investment:

 Equity delivery – 0.45%
 Trading – 0.05%
 Future an option -0.03%
 Mutual fund – as per AMC format
Chapter 2 About the topic
Mutual Fund Definition
A mutual fund is an investment security that enables investors to pool their money together
into one professionally managed investment. Mutual funds can invest in stocks, bonds, cash or
a combination of those assets. The underlying security types, called holdings, combine to form
one mutual fund, also called a portfolio.
In simpler terms, mutual funds are like baskets. Each basket holds certain types of stocks, bonds
or a blend of stocks and bonds to combine for one mutual fund portfolio.
Characteristics:
 A mutual fund actually belongs to the investors who have pooled their funds.
 A mutual fund is managed by investment professionals and other service providers,

who earn a fee for their services, from the fund.
 The pool of funds is invested in a portfolio of marketable investments. The value of the
portfolio is updated every day.
 The investors share in the fund is denominated by “units”. The value of the units
changes with change in the portfolio’s value, every day. The value of one unit of
investment is called the Net Asset Value or NAV.
What is a mutual fund?
Mutual fund is an investment company that pools money from shareholders and invests in a
variety of securities, such as stocks, bonds and money market instruments. Most open-end
Mutual funds stand ready to buy back (redeem) its shares at their current net asset value, which
depends on the total market value of the fund's investment portfolio at the time of redemption.
Most open-end Mutual funds continuously offer new shares to investors. Also known as an
open-end investment company, to differentiate it from a closed-end investment company.
Mutual funds invest pooled cash of many investors to meet the fund's stated investment
objective. Mutual funds stand ready to sell and redeem their shares at any time at the fund's
current
Net Asset value: total fund assets divided by shares outstanding.
Investment Flow:
Figure 1 investment flow

In Simple Words, Mutual fund is a mechanism for pooling the resources by issuing units to the
investors and investing funds in securities in accordance with objectives as disclosed in offer
document.
Investments in securities are spread across a wide cross-section of industries and sectors and
thus the risk is reduced. Diversification reduces the risk because all stocks may not move in
the same direction in the same proportion at the same time. Mutual fund issues units to the
investors in accordance with quantum of money invested by them.
Investors of Mutual funds are known as unit holders. The profits or losses are shared by the
investors in proportion to their investments. The Mutual funds normally come out with a
number of schemes with different investment objectives which are launched from time to time.
In India, A Mutual fund is required to be registered with Securities and Exchange Board of
India (SEBI) which regulates securities markets before it can collect funds from the public. In
Short, a Mutual fund is a common pool of money in to which investors with common
investment objective place their contributions that are to be invested in accordance with the
stated investment objective of the scheme.
The investment manager would invest the money collected from the investor in to assets that
are defined/ permitted by the stated objective of the scheme. For example, an equity fund would
invest equity and equity related instruments and a debt fund would invest in bonds, debentures,
gilts etc. Mutual fund is a 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 mutual fund industry in India:
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India
(UTI) at the initiative of the Reserve Bank of India (RBI) and the Government of India. The
objective then was to attract small investors and introduce them to market investments. Since
then, the history of mutual funds in India can be broadly divided into six distinct phases.
Phase I (1964-87): Growth Of UTI:

In 1963, UTI was established by an Act of Parliament. As it was the only entity offering mutual
funds in India, it had a monopoly. Operationally, UTI was set up by the Reserve Bank of India
(RBI), but was later delinked from the RBI. The first scheme, and for long one of the largest
launched by UTI, was Unit Scheme 1964.
Later in the 1970s and 80s, UTI started innovating and offering different schemes to suit the
needs of different classes of investors. Unit Linked Insurance Plan (ULIP) was launched in
1971. The first Indian offshore fund, India Fund was launched in August 1986. In absolute
terms, the investible funds corpus of UTI was about Rs 600 crores in 1984. By 1987-88, the
assets under management (AUM) of UTI had grown 10 times to Rs 6,700 crores.
Phase II (1987-93): Entry of Public Sector Funds:

The year 1987 marked the entry of other public sector mutual funds. With the opening up of
the economy, many public sector banks and institutions were allowed to establish mutual funds.
The State Bank of India established the first non-UTI Mutual Fund, SBI Mutual Fund in
November 1987. This was followed by Canbank Mutual Fund,LIC Mutual Fund, Indian Bank
Mutual Fund, Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. From
1987-88 to 1992-93, the AUM increased from Rs 6,700 crores to Rs 47,004 crores, nearly
seven times. During this period, investors showed a marked interest in mutual funds, allocating
a larger part of their savings to investments in the funds.
Phase III (1993-96): Emergence of Private Funds: The year 1987 marked the entry of other
public sector mutual funds. With the opening up of the economy, many public sector banks and
institutions were allowed to establish mutual funds. The State Bank of India established the
first non-UTI Mutual Fund, SBI Mutual Fund in November 1987. This was followed by Can
bank Mutual Fund, LIC Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund,
GIC Mutual Fund and PNB Mutual Fund. From 1987-88 to 1992-93, the AUM increased from
Rs 6,700 crores to Rs 47,004 crores, nearly seven times. During this period, investors showed
a marked interest in mutual funds, allocating a larger part of their savings to investments in the
funds.
Phase III (1993-96): Emergence of Private Funds:

A new era in the mutual fund industry began in 1993 with the permission granted for the entry
of private sector funds. This gave the Indian investors a broader choice of 'fund families' and
increasing competition to the existing public sector funds. Quite significantly foreign fund
management companies were also allowed to operate mutual funds, most of them coming into
India through their joint ventures with Indian promoters.
The private funds have brought in with them latest product innovations, investment
management techniques and investor-servicing technologies. During the year 1993-94, five
private sector fund houses launched their schemes followed by six others in 1994-95.
Phase IV (1996-99): Growth and SEBI Regulation:

Since 1996, the mutual fund industry scaled newer heights in terms of mobilization of funds
and number of players. Deregulation and liberalization of the Indian economy had introduced
competition and provided impetus to the growth of the industry.
A comprehensive set of regulations for all mutual funds operating in India was introduced with
SEBI (Mutual Fund) Regulations, 1996. These regulations set uniform standards for all funds.
Erstwhile UTI voluntarily adopted SEBI guidelines for its new schemes. Similarly, the budget
of the Union government in 1999 took a big step in exempting all mutual fund dividends from
income tax in the hands of the investors. During this phase, both SEBI and Association of
Mutual Funds of India (AMFI) launched Investor Awareness Programme aimed at educating
the investors about investing through MFs.
Phase V (1999-2004): Emergence of a Large and Uniform Industry:

The year 1999 marked the beginning of a new phase in the history of the mutual fund industry
in India, a phase of significant growth in terms of both amount mobilized from investors and
assets under management. In February 2003, the UTI Act was repealed. UTI no longer has a
special legal status as a trust established by an act of Parliament. Instead it has adopted the
same structure as any other fund in India - a trust and an AMC.
UTI Mutual Fund is the present name of the erstwhile Unit Trust of India (UTI). While UTI
functioned under a separate law of the Indian Parliament earlier, UTI Mutual Fund is now under
the SEBI's (Mutual Funds) Regulations, 1996 like all other mutual funds in India.
The emergence of a uniform industry with the same structure, operations and regulations make
it easier for distributors and investors to deal with any fund house. Between 1999 and 2005 the
size of the industry has doubled in terms of AUM which have gone from above Rs 68,000
crores to over Rs 1, 50,000 crores.
Phase VI (From 2004 Onwards): Consolidation and Growth:

The industry has lately witnessed a spate of mergers and acquisitions, most recent ones being
the acquisition of schemes of Allianz Mutual Fund by Birla Sun Life, PNB Mutual Fund by
Principal, among others. At the same time, more international players continue to enter India
including Fidelity, one of the largest funds in the world
Concept of the mutual fund
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at
a relatively low cost. The flow chart below describes broadly the working of a mutual fund:
Figure 2 concept of mutual fund

Organisation of mutual fund
Figure 3 organisation of mutual fund
The structure of mutual fund:

The fund sponsor:
The Fund Sponsor is the first layer in the three-tier structure of Mutual Funds in India. SEBI
regulations say that a fund sponsor is any person or any entity that can set up a Mutual Fund to
earn money by fund management. This fund management is done through an associate
company which manages the investment of the fund. A sponsor can be seen as the promoter of
the associate company. A sponsor has to approach SEBI to seek permission for a setting up a
Mutual Fund. Once SEBI agrees to the inception, a Public Trust is formed under the Indian
Trust Act, 1882 and is registered with SEBI. Trustees are appointed to manage the trust and an
asset management company is created complying with the Companies Act, 1956.
There are eligibility criteria given by SEBI for the fund sponsor:
The sponsor must have experience in financial services for a minimum of five years with a
positive net worth for all the previous five years.
The net worth of the sponsor in the immediate last year has to be greater than the capital
contribution of the AMC.
The sponsor must show profits in at least three out of five years which includes the last year as
well.
The sponsor must have at least 40% share in the net worth of the asset management company.
Any entity that fulfils the above criteria can be termed as a sponsor of the Mutual Fund.
Trust and trustees:

Trust and trustees form the second layer of the structure of Mutual Funds in India. A trust is
created by the fund sponsor in favour of the trustees, through a document called trust deed. The
trust is managed by the trustees and they are answerable to investors. They can be seen as
primary guardians of fund and assets. Trustees can be formed by two ways – a Trustee
Company or a Board of Trustees. The trustees work to monitor the activities of the Mutual
Fund and check its compliance with SEBI (Mutual Fund) regulations. They also monitor the
systems, procedures, and overall working of the asset management company. Without the
trustees’ approval, AMC cannot float any scheme in the market. The trustees have to report to
SEBI every six months about the activities of the AMC.
Asset management companies:

Asset management companies are the third layer in the structure of Mutual Funds. The asset
management company acts as the fund manager or as an investment manager for the trust. A
small fee is paid to the AMC for managing the fund. The AMC is responsible for all the fund-
related activities. It initiates various schemes and launches the same. The AMC is bound to
manage funds and provide services to the investor. It solicits these services with other elements
like brokers, auditors, bankers, registrars, lawyers, etc. and works with them. To ensure that
there is no conflict between the AMCs, there are certain restrictions imposed on the business
activities of the companies.
Other components in the structure of mutual funds
Custodian:
A custodian is responsible for the safekeeping of the securities of the Mutual Fund. They
manage the investment account of the Mutual Fund, ensure the delivery and transfer of the
securities. They also collect and track the dividends & interests received on the Mutual Fund
investment.
Registrar and transfer agents (RTAS):
These are the entities who provide services to Mutual Funds. RTAs are more like the
operational arm of Mutual Funds. Since the operations of all Mutual Fund companies are
similar, it is economical in scale and cost effective for all the 44 AMCs to seek the services of
RTAs. CAMS, Karvy, Sundaram, Principal, Templeton, etc. are some of the well-known RTAs
in India. Their services include
 Processing investors’ application
 Keeping a record of investors’ details
 Sending out account statements to the investors
 Sending out periodic reports
 Processing the pay-outs of the dividends
Updating the investor details i.e. adding new members and removing those who have
withdrawn from the fund.
Auditor:
Auditors audit and scrutinise record books of accounts and annual reports of various schemes.
Each AMC hires an independent auditor to analyse the books so as to keep their transparency
and integrity intact.
Process of mutual fund:
Prospective investors who wish to invest in mutual funds have to contact a distributor/agent
of mutual funds. Any good agent/distributor would be able to suggest you the appropriate
funds from the plethora of funds available.
The normal procedure is to fill-up the required application form and submit it along with a
cheque for the amount of investment. Cheques and Demand Drafts are accepted. Payment by
cash is not allowed. The agent/distributor would submit the application form with the cheque
to the mutual fund company. The mutual fund company would issue you an Account
Statement with 4 working days from the date of investment.
In the above graph shows how mutual fund works and how investors earns money by investing
in the mutual fund investors pit their saving as an investment in mutual fund .the fund manager
who is a person who takes the decisions where the money should be invested in securities
according to the scheme’s objective. Securities include Equities, Debentures, Govts.securities,
Bonds, and commercial paper etc. these securities generates returns to the fund manager .the
fund manager passes back return to the investors.
How to invest in mutual fund?
Mutual fund normally come out with an advertisement in newspapers punishing the date of
lunch of the new schemes .investors can also contact the agent and distributors of mutual fund
who are spread all over the country for necessary information and application forms can be
deposited with mutual fund through the agents and distributors who provide such services.
Now days, the post offices and bank also distributes the units of mutual funds. However, the
investors may please note that the mutual funds shames being marketed by bank and post
officers should not be taken as their own schemes and no assurance if returns is given by them.
The only role of bank and post office is help in. distribution of mutual fund schemes to the
investors. Investors should not be carried away by commission/gifts given by agent/distributors
for investing in a particular scheme. On the other hand they must consider the track record of
the mutual fund and should take objective decision.
 One time investment (lumsum)
The amount that has to be invested in one time to known as one time investment .the
investors has to pay the whole amount at once. The minimum amount Rs.5000and
maximums as per the investor’s choice. This investment is generally preferred for the
business man who is able to pay at once time.
 Systematic investment plan(SIP)

The amount that has to be invested through same monthly instalment is known as
systemic investment plan. The investment has to pay the minimum amount Rs.1000
monthly for all equity and balance scheme like that for 6 months. And Rs.500 monthly
for tax saver scheme like that for 12 months. The minimum amount that the investors
has to invest is Rs. 6000 and maximum as per their choice .this type of investment is
generally preferred for the salaried people.
Making mutual fund investing is one of the most favoured ways to create wealth, especially for
beginners who want to have exposure to financial markets. Mutual funds are a collection of
stocks and bonds managed by investment professionals. If you are planning to start investing
in mutual funds be prepared to take these important broad steps – having necessary documents
in hand, knowing the purpose of investment and selecting the right mutual fund schemes.
However, beginners in mutual fund investing need to know few more things to help them take
a right decision. Here is a list of things you should know:
Know your purpose of investment

The purpose of doing an investment should be well defined – buying a car, buying a home,
child education planning, wedding planning, retirement planning, etc. Even if you don’t have
any goal, you should be clear on how much wealth you are targeting to create and in what time
frame.
Keep documents handy
Every transaction you make needs to be well documented. The first thing you need is to become
KYC compliant. This is nothing but a due diligence of your personal details like the submission
of the address proof, your photograph, date of birth certificate and your PAN card. Added that
you need to fill up the form of respective scheme where you are going to make your
investments. If you have a PAN card, you are qualified to invest in Mutual Funds. “An Aadhaar
card can make account/folio creation easy through completely paperless e-KYC, else one-time
paper KYC process can also be done,” he said.
Risk factor should always be considered

If you are a new investor, you need to know that there are several types of mutual funds
available in India based on catering one’s risk appetite. One should select the scheme as per
their risk-taking capacity. “Remember, higher return expectation means associated risk. Mutual
Funds possibly have an answer to all investment needs. Choose wisely, it is your money and
your future,”
“You should think about your exposure to equities in a simple way. If you’re not comfortable
with the value of your equity investments falling, then you shouldn’t be in equities at all,”
Selection of scheme and mode of investment

It is always advisable to plan for long-term financial goals. “One should take the help of a
qualified mutual fund advisor. They can list down schemes (Liquid, Debt, Hybrid or Equity),
option (growth, Dividend Pay-out or reinvestment), strategy (SIP, Lump sum, STP, SWP, etc.)
as per your preferences,”
Do not only chase past performance of a fund

Anil Rego, founder, and CEO, Right Horizons said that past performance is not a guide to
future performance. For instance, look at pharma and IT funds that were among the best wealth
creators in previous 5 to 10 years but are down in the last 1 year. What any fund has earned in
the past is no guarantee for what it will generate in the future. However, the past returns can be
a good starting point to select a mutual fund. A fund that has performed well in the past has a
better chance of performing well in the future as well, as compared to a fund that hasn't done
so well historically. “Investors should actually study how a fund has done over various market
cycles. The returns tell you how good is the fund manager both during up, down and volatile
times. If a fund has consistently beaten its benchmark and category average, that is a great
fund,”
Select while the option
Selecting options - Dividend or Growth - becomes very important when you are defining the
purpose of your financial goal. If you aim to fulfil a goal where you need a huge capital, you
should opt for growth option whereas if you need some profits from time to time as and when
a company gains from the market, you should select dividend option.
“Many mutual funds choose to distribute their profits to shareholders in the form of dividends,
while others choose to use their profits to reinvest in the growth of the company. Your selection
of dividends or growth plans should be based on how often you need the money,”
Have a balanced portfolio as per your age

One needs to check the time horizon of their financial goal and invest accordingly. However,
there is no hard-and-fast rule, but in general, as you get older and closer to retirement, you
should reduce your exposure to stocks in order to preserve your capital. “As a rule of thumb,
subtract your age from 110 to find the percentage of your portfolio that should be in stocks,
and adjust this up or down based on your individual willingness to take risks,”
Finally, keep the costs low.

When possible, pick a direct plan. Every mutual fund in India comes in two flavours: Regular
– where a regular commission is paid to your bank or advisor, out of your investments; and
Direct – where no commission is paid to anyone.
Types of mutual fund schemes:
Types of Mutual Funds based on structure

Open – ended schemes
The units offered by these schemes are available for sale and repurchase on any business day
at NAV based prices. Hence, the unit capital of the schemes keeps changing each day. Such
schemes thus offer very high liquidity to investors and are becoming increasingly popular in
India. Please note that an open-ended fund is NOT obliged to keep selling/issuing new units at
all times, and may stop issuing further subscription to new investors. On the other hand, an
open-ended fund rarely denies to its investor the facility to redeem existing units.
Closed – ended schemes
The unit capital of a close-ended product is fixed as it makes a one-time sale of fixed number
of units. These schemes are launched with an initial public offer (IPO) with a stated maturity
period after which the units are fully redeemed at NAV linked prices. In the interim, investors
can buy or sell units on the stock exchanges where they are listed. Unlike open-ended schemes,
the unit
Capital in closed-ended schemes usually remains unchanged. After an initial closed period, the
scheme may offer direct repurchase facility to the investors. Closed-ended schemes are usually
more illiquid as compared to open-ended schemes and hence trade at a discount to the NAV.
This discount tends towards the NAV closer to the maturity date of the scheme.
Interval schemes
These schemes combine the features of open-ended and closed-ended schemes. They may be
traded on the stock exchange or may be open for sale or redemption during pre-determined
intervals at NAV based prices.
Types of Mutual Funds based on investment objective

1. Growth Schemes.
Aim to provide capital appreciation over the medium to long term. These schemes normally
invest a majority of their funds in equities and are willing to bear short term decline in value
for possible future appreciation.
These schemes are not for investors seeking regular income or needing their money back in the
short term. Ideal for: Investors in their prime earning years. Investors seeking growth over the
long term.
Ideal for: These schemes are ideal for investors seeking growth over long term.
2. Income Schemes.
Aim to provide regular and steady income to investors. These schemes generally invest in fixed
income securities such as bonds and corporate debentures. Capital appreciation in such
schemes may be limited.
Ideal for: Retired people who need regular income and capital protection.
3. Balanced Schemes.
Aim to provide both growth and income by periodically distributing a part of the income and
capital gains they earn. They invest in both shares and fixed income securities in the proportion
indicated in their offer documents. In a rising stock market, the NAV of these schemes may
not normally keep pace or fall equally when the market falls.
Ideal for: Investors looking for a combination of income and moderate growth.
4. Money Market/Liquid Schemes
Aim to provide easy liquidity, preservation of capital and moderate income. These schemes
generally invest in safer, short term instruments such as treasury bills, certificates of deposit,
commercial paper and interbank call money. Returns on these schemes may fluctuate,
depending upon the interest rates prevailing in the market
Ideal for: Corporates and individual investors as a means to park their surplus funds for short
periods or awaiting a more favourable investment alternative.
Other Schemes
Tax saving schemes
Investors are being encouraged to invest in equity markets through Equity Linked Savings
Scheme (“ELSS”) by offering them a tax rebate. Units purchased cannot be assigned /
Transferred/ pledged / redeemed / switched – out until completion of 3 years from the date of
allotment of the respective Units. The Scheme is subject to Securities & Exchange Board of
India (Mutual Funds) Regulations, 1996 and the notifications issued by the Ministry of Finance
(Department of Economic Affairs), Government of India regarding ELSS. Subject to such
conditions and limitations, as prescribed under Section 88 of the Income-tax Act, 1961.
Index schemes
The primary purpose of an Index is to serve as a measure of the performance of the market as
a whole, or a specific sector of the market. An Index also serves as a relevant benchmark to
evaluate the performance of mutual funds. Some investors are interested in investing in the
market in general rather than investing in any specific fund. Such investors are happy to receive
the returns posted by the markets. As it is not practical to invest in each and every stock in the
market in proportion to its size, these investors are comfortable investing in a fund that they
believe is a good representative of the entire market. Index Funds are launched and managed
for such investors.
Sector specific schemes
Sector Specific Schemes generally invests money in some specified sectors for example: “Real
Estate” Specialized real estate funds would invest in real estate’s directly, or may fund real
estate developers or lend to them directly or buy shares of housing finance companies or may
even buy their securitized assets
Advantages of mutual funds:
Simplicity: Mutual Funds Are Easy to Understand

Anything can be made into something more complex than it needs to be and mutual funds are
no exception to this truth. However, mutual funds require no experience or knowledge of
economics, financial statements, or financial markets to be a successful investor.
For beginners, here is a simple definition of mutual fund: A mutual fund is an investment
security type that enables investors to pool their money together into one professionally
managed investment. Mutual funds can invest in stocks, bonds, cash and/or other assets. These
underlying security types, called holdings combine to form one mutual fund, also called a
portfolio.
In different words, Mutual funds can be considered baskets of investments. Each basket holds
dozens or hundreds of security types, such as stocks or bonds. Therefore, when an investor
buys a mutual fund, they are buying a basket of investment securities.
There are many things to know about mutual funds but compared to the broad world of
financial products, mutual funds are quite easy to use and understand.
Accessibility: Mutual Funds Are Easy to Buy

Mutual funds are offered at brokerage firms, discount brokers online, mutual fund companies,
banks, and insurance companies.
Even beginning investors can easily open an account at a no-load mutual fund company, such
as Vanguard Investments, and open an account within minutes.
Diversity: Mutual Funds Have Broad Market Exposure

One mutual fund can invest in dozens, hundreds, or even thousands of different investment
securities, making it possible to achieve diversification by investing in just one fund. However,
it is smart to diversify into several different mutual funds.
Variety: Mutual Funds Come In Many Different Categories and Types

As you grow your portfolio of mutual funds, you will want to diversify into various mutual
fund categories and types. You can invest in mutual funds that cover the main asset classes
(stocks, bonds, and cash) and various sub-categories or you can even venture into specialized
areas, such as sector funds or precious metals funds.
Affordability: Mutual Funds Have Low Minimums

Most mutual funds have minimum initial investment requirements of $3,000 or less. In many
cases, if the investor initiates a systematic investment program, where they have a fixed dollar
amount or fixed number of shares purchased once per month, the initial investment can be as
low as $1,000.
Frugality: Mutual Funds Cost Less to Manage Than Other Portfolio Types
Costs as a percentage of assets in the portfolio are usually lower for an actively-managed
mutual fund when compared to an actively-managed portfolio of individual securities.
When you add up transaction costs, annual fees paid to a brokerage firm, and the cost for
research tools or investment advice, mutual funds are less expensive than the typical portfolio
of stocks. Other variables influence the cost of managing a portfolio, such as the amount of
trading activity, the size of transaction, and taxes.
Professional Management: Mutual Funds Have a Team of Professionals Researching and

Analysing Investments So You Don't Have To!
Perhaps the greatest benefit of all is that investors can save countless hours of time, energy and
frustration involved with the research and analysis required to find quality investments to hold
in a portfolio. That's not to speak of the skill, desire and patience required to do a job well in
any professional pursuit. Mutual funds enable investors to do more of the things in life they
enjoy rather than spending time and energy on investment matters.
Flexibility: Mutual Funds Have Several Uses and Applications

All of the above benefits of mutual funds overlap into simplicity and flexibility. You can invest
in just one fund or invest in a wide variety. Automatic deposit, systematic withdrawal, 401(k)
plans, annuity sub-accounts, dividends, short-term savings, long-term savings, and nearly
limitless investment strategies make mutual funds the best overall investment type for both
beginners and advanced investors.
Regulatory of mutual fund in India
• SEBI
The capital market regulates the mutual funds in India. SEBI requires all mutual funds to be
registered with them. SEBI issues guidelines for all mutual funds operations-investment,
accounts, expenses etc. Recently, it has been decided that Money Market Mutual Funds of
registered mutual funds will be regulated by SEBI through (Mutual Fund) Regulations 1996.
• RBI
RBI, a supervisor of the Banks owned Mutual Funds-As banks in India come under the
regulatory Jurisdiction of RBI, banks owned funds to be under supervision of RBI and SEBI.
RBI has supervisory responsibility over all entities that operate in the money markets.
• Ministry of finance (MOF)
Ministry of Finance ultimately supervises both the RBI and the SEBI and plays the role of apex
authority for any major disputes over SEBI guidelines.
• Company low board
Registrar of companies is called Company Low Board. AMCs of Mutual Funds are companies
registered under the companies Act 1956 and therefore answerable to regulatory authorities
empowered by the Companies Act.
• Stock exchange
Stock Exchanges are Self-regulatory organizations supervised by SEBI. Many closed ended
funds of AMCs are listed as stock exchanges and are traded like shares.
• Office of the public trustee
Mutual Fund being public trust is governed by the Indian Trust Act 1882. The Board of trustee
or the Trustees Company is accountable to the office of public trustee, which in turn reports to
the Charity commissioner.
How to reduce risk while investing?
Any kind of investment we make is subject to risk. In fact we get return on our investment
purely and solely because at the very beginning we take the risk of parting with our funds, for
getting higher value back at a later date. Partition itself is a risk.
Well known economist and Nobel Prize recipient William Sharpe tried to segregate the total
risk faced in any kind of investment into two parts - systematic (Systemic) risk and
unsystematic (Unsystematic) risk.
Systematic risk is that risk which exists in the system. Some of the biggest examples of
systematic risk are inflation, recession, war, political situation etc.
Inflation erodes returns generated from all investments e.g. If return from fixed deposit is 8 per
cent and if inflation is 6 per cent then real rate of return from fixed deposit is reduced by 6 per
cent.
Similarly if returns generated from equity market is 18 per cent and inflation is still 6 per cent
then equity returns will be lesser by the rate of inflation. Since inflation exists in the system
there is no way one can stay away from the risk of inflation.
Economic cycles, war and political situations have effects on all forms of investments. Also
these exist in the system and there is no way to stay away from them. It is like learning to walk.
Anyone who wants to learn to walk has to first fall; you cannot learn to walk without falling.
Similarly anyone who wants to invest has to first face systematic risk; there can never make
any kind of investment without systematic risk.
Another form of risk is unsystematic risk. This risk does not exist in the system and hence is
not applicable to all forms of investment. Unsystematic risk is associated with particular form
of investment.
Suppose we invest in stock market and the market falls, then only our investment in equity gets
affected OR if we have placed a fixed deposit in particular bank and bank goes bankrupt, than
we only lose money placed in that bank.
While there is no way to keep away from risk, we can always reduce the impact of risk.
Diversification helps in reducing the impact of unsystematic risk. If our investment is
distributed across various asset classes the impact of unsystematic risk is reduced.
If we have placed fixed deposit in several banks, then even if one of the banks goes bankrupt
our entire fixed deposit investment is not lost.
Similarly if our equity investment is in Tata Motors, HLL, Infosys, adverse news about Infosys
will only impact investment in Infosys, all other stocks will not have any impact.
To reduce the impact of systematic risk, we should invest regularly. By investing regularly we
average out the impact of risk.
Mutual fund, as an investment vehicle gives us benefit of both diversification and averaging.
Portfolio of mutual funds consists of multiple securities and hence adverse news about single
security will have nominal impact on overall portfolio.
SEBI registered mutual fund
1. FORTIS Mutual fund
2. Alliance Capital Mutual fund,
3. AIG Global Investment Group Mutual fund
4. Benchmark Mutual fund,
5. Baroda Pioneer Mutual fund
6. Birla Mutual fund
7. Bharti AXA Mutual fund
8. CanaraRobeco Mutual fund
9. CRB Mutual fund (Suspended)
10. DBS Chola Mutual fund,
11. Deutsche Mutual fund
12. DSP Blackrock Mutual fund,
13. Edelweiss Mutual fund
14. Escorts Mutual fund,
15. Franklin Templeton Mutual fund
16. Fidelity Mutual fund
17. Goldman Sachs Mutual fund
18. HDFC Mutual fund,
19. HSBC Mutual fund,
20. ICICI Securities Fund,
21. IL & FS Mutual fund,
22. ING Mutual fund,
23. ICICI Prudential Mutual fund
24. IDFC Mutual fund,
25. JM Financial Mutual fund
26. JP Morgan Mutual fund
27. Kotak Mahindra Mutual fund,
29. LIC Mutual fund
31. Morgan Stanley Mutual fund
32. Mirae Asset Mutual fund
33. Principal Mutual fund
34. Quantum Mutual fund,
35. Reliance Mutual fund
36. Religare AEGON Mutual fund
37. Sahara Mutual fund,
38. SBI Mutual fund
39. Shriram Mutual fund
40. Sundaram BNP Paribas Mutual fund,
41. Taurus Mutual fund
42. Tata Mutual fund,
43. UTI Mutual fund
Disadvantages of mutual funds
Professional Management
Did you notice how we qualified the advantage of professional management with the word
"theoretically"? Many investors debate over whether or not the so-called professionals are any
better than you or I at picking stocks. Management is by no means infallible, and, even if the
fund loses money, the manager still takes his/her cut. We'll talk about this in detail in a later
section.
Costs
Mutual funds don't exist solely to make your life easier--all funds are in it for a profit. The
Mutual fund industry is masterful at burying costs under layers of jargon. These costs are so
complicated that in this tutorial we have devoted an entire section to the subject.
Dilution
It’s possible to have too much diversification (this is explained in our article entitled "Are You
over Diversified?"). Because funds have small holdings in so many different companies, high
returns from a few investments often don't make much difference on the overall return. Dilution
is also the result of a successful fund getting too big. When money pours into funds that have
had strong success, the manager often has trouble finding a good investment for all the new
money.
Taxes
When making decisions about your money, fund managers don't consider your personal tax
situation. For example, when a fund manager sells a security, a capital-gain tax is triggered,
which affects how profitable the individual is from the sale. It might have been more
advantageous for the individual to defer the capital gains liability.
Equity funds
If selected in the right manner and in the right proportion, have the ability to play an important
role in achieving most long-term objectives of investors in different segments. While the
selection process becomes much easier if you get advice from professionals, it is equally
important to know certain aspects of equity investing yourself to do justice to your hard earned
money.
Chapter: 2
Author Name: S. Prasanna Kumar &, S. Raj Kumar, (2014)
Research Scholar, R & D Centre, Dept. of Commerce, Bharathiar University, Coimbatore.
Asst. Prof., Dept .of Commerce, Loyola College, Chennai. Asst. Prof. Department of
management Studies, Pachaiyappas College, Chennai
Topic Name: Awareness and Knowledge of Mutual Fund among the Investors with Special
Reference to Chennai – A Critical Study
Objective:
1. To evaluate the knowledge level of investors about mutual fund and its terms;
2. To evaluate the awareness level among investors;
3. To find out how the investor is influenced to make investment in Mutual Fund;
Aim: To know about awareness and knowledge of mutual fund among the investors in
Chennai.
Research Methodology:
a. Sample Design: - The survey was conducted during the three months among 250 respondents
as per simple random sampling.
b. Data Collection Method: - The Primary data was collected by the researcher through
Questionnaire. The secondary data was from Journals, Books, Magazines and few other
website.
Findings of the study: -
a. In majority of the respondents the knowledge level is confined to good knowledge.
Approximately 10% of the respondents do not have proper knowledge about Mutual funds.
b. The respondents are well acquainted with mutual fund terms and many respondents do not
know technical terms like entry load, exit load, open-ended & close-ended.
c. Table 4 shows that more than 50% of respondents are educated about mutual funds through
advertisements, friends and relatives.
d. The respondents’ awareness level shows that many people have knowledge about Growth
and Income Schemes rather than Balanced and Dividend Schemes.
e. Many Respondents have clear knowledge about the potential advantages of investing in
mutual funds.
f. Bankers play the vital role in influencing the respondents to invest in mutual funds and they
make the investor to invest in their banks mutual fund schemes.
Author Name: G.prathap (ph. D research scholar Dept. of Business Administration,
Annumalai University), (2013)
Dr .a .rajamohan (professor Dept. of Business administration Annamalai University, Nagpur.
Topic Name: A study on status of awareness among mutual fund investors in Tamil Nadu
Objective:
1. To analyse the investors awareness regarding mutual fund investment
2. To measure the investors‟ level of satisfaction towards mutual fund investment
Aim:
To evaluate the investor’s awareness and satisfaction towards the mutual fund investments.
Sampling design
The sample size covered 500 investors of Tamil Nadu who were spread through five different
districts namely Cuddlier, Coimbatore, Chennai, Madurai and Trichy districts of Tamil Nadu.
These districts where large numbers of MFs investors are available are identified for this study
using Purposive Sampling Method. In order to collect referred information from the retail
investors, the sampling design was carefully decided and properly chosen for the study. From
each identified districts, five approved brokers of were chosen and twenty MF investors were
contacted with the help of brokers. Thus, this study was based on the responses by 500 selected
respondents.
Collection of data
The researcher was used survey method for data collection. This study gathered the desired
data through primary sources. Primary data were collected through a structured questionnaire
from the retail investors living in selected districts of Tamil Nadu and invested in MF schemes
Investigation outline that mostly the investors have high level awareness and positive approach
towards investing in mutual fund ,this study based on satisfaction has been studied relating to
various issues like factors that attract them to invest in MF like rate of return ,liquidity, safety
etc..,
Author Name: Sachin Abda, Assistant Professor, SGJ Institute of Management and IT,
Mandvi, Gujarat (India), (06, June 2016)
Topic Name: A Study on Awareness of Mutual Funds among the Investors of Kutch District
Objective:
1. To study the level of awareness about mutual funds among investors of Kutch
2. To find out most important factors affecting decision regarding investment in mutual funds
3. To identify the objectives of investors for their investment in mutual funds
Aim:
To know about awareness and knowledge of mutual fund among the investors in mandvi.
The data mainly used in the research is primary data collected through questionnaire, after
collecting responses through questionnaire, it is analysed and classified.
The method used for collecting data is convenience sampling.
Sample size for said research is 150 investors from rural and urban areas of Kutch district
First objective it was inferred that still there is not much awareness about the mutual funds
among the population of the kutch and more mutual funds awareness centres and service
centres are needed to spread the education and awareness about mutual funds. Most of the
respondents are influenced by professional management and diversification advantages offered
by mutual funds, while deciding about investment in mutual funds most of the respondents
replied they check past performance of mutual funds before investing in the same. Most of the
respondents said their objective to invest in mutual fund is to earn high return at low risk as
mutual funds offer diversification and funds are managed professionally
Author Name: Simaran saint, Dr.bimal anjum, ramandeep saint, (1, May 2011)
Topic Name: Investors’ awareness and perception about mutual funds
Objective:
1. To study the growth of mutual fund industry in India.
2. To analyse the investors awareness and perception regarding investing in mutual funds.
3. To find out the investors opinion regarding major deficiencies in the working of the mutual
fund industry
4. To find out the suggestions from the investors that can help in plugging out these
deficiencies
Aim:
Evaluate the performance of mutual fund and perception towards mutual fund
Data collection methods
For the purpose of the study two sets of data has been used. The first set of data is the primary
data. This type of data has been collected from the investors with the help of a Questionnaire.
The second set of data used for the study is the secondary data. The secondary data relating to
net resources mobilized by banks and financial institution sponsored mutual funds, assets under
management, investors mix etc. is collected for a period of 1999-2008. This type of data is
collected from different investment periodicals, magazines, various newspapers, RBI reports,
AMFI reports, SEBI annual reports; securities market reviews, study of existing literature of
different authors in the related field etc.
The main Findings of the study relating to the perception of the investors regarding different
aspects of mutual funds such as their main objective behind investing in mutual funds, their
knowledge about SIP, sources of information, perception about financial advisors and brokers,
method of performance evaluation are summarized as under:
Author Name: Prof. Priya Vasagadekar, (6, June-2014)
Topic Name: A research paper on investment awareness among Indian working women with
reference to pune region
Objective:
1. To find out the investment habits of the Indian working women.
2. To know the role of Indian working women in making investment decisions.
3. To know the investment avenues that the Indian working women usually prefer.
4. To find out the risk bearing capacity of the Indian working women while making investment
decisions.
Aim:
To know how much awareness of mutual fund among women investors in pune
The research work was carried out in Pune & its outskirts. Working women in different industry
sectors were interviewed for this purpose. Working professionals were from banks, corporate,
LICs and other small firms. Structured questionnaire was provided to them & their responses
were noted.
Findings of the study:
1. It has been found out that 85% of the respondents are aware of investment. 2. It has been
found out that 15% of the respondents are not aware of all the financial instruments & they are
not much bothered about savings & investment.
3. It has been found out that out of these 85% respondents who are well aware of investment;
65% are not ready to take risks while making investments. They prefer safe modes of
investment like FDs, SIPs, bonds, Post office schemes. Only 20% respondents want to invest
in equities/stock where high risk is involved.
4. It has also been found out that 85% of the respondents are ‘Long term Investors’. Out of
remaining 15%, 8% are ‘Conservative Investors’ & 7% are a combination of ‘Trader’ &
‘Speculator’ type of investors.
5. It has been observed strongly that 90% of the respondents rely on their husbands for taking
investment decisions. And remaining 10% respondents take their investment decisions by
themselves.
6. It has been found out that 85% of the respondents don’t possess detailed knowledge about
all the financial instruments. Only 15% respondents have the sufficient knowledge about the
financial instruments.
Author Name: Mr. C. Praveen Kumar Reddy1, Prof. A. Sudhakar, (Sep. 2016)
Topic Name: The Perception of Individual Investors towards the Performance of Mutual Funds
Objective:
The objective of the research is to analyse the perception of individual investors towards the
performance of mutual funds. The area under study includes twin cities of Hyderabad
Aim:
Analyse the perception of individual investors towards the performance of mutual funds.
To analyse the perception of investors towards mutual funds necessary data are collected by
administering a structured questionnaire to 200 randomly selected investors based on simple
random sampling method. Respondents are screened and the inclusion is purely on the basis of
their knowledge about Financial Markets, especially the Mutual Fund. The analysis of primary
data collected through administering a structured questionnaire from investors have been made
by making use of statistical tools like tabulation, percentage, ranking and Chi Square test etc.
The analysis reveals that the demographic profile of investors has a significant impact on the
investors’ decisions related to investments and particularly mutual fund investments. From the
analysis it is noted that most of the sample respondents are male respondents belonging to the
higher income class earning more than Rs. 3, 00,000 a year. Most of the respondents are
employed (42 percent), belonging to the age group of 31years to 45 years. Majority of the
respondents are under graduates (73 percent), married (73 percent), and saving below Rs.
20,000 per month (54 percent). Investors expressed high preference towards financial need
(refer Table 2) to invest in long term savings (78.5 percent) with the investment objective of
safe growth oriented investments (45.5 percent), but intend to play it somewhat safe for time
period of 6-10 years (a time period of less than 5 years (59.5 percent)). Investors prefer bank
deposits than other investment avenues and they are willing to take modest risk for higher
returns in little volatility.
Author Name: V. Rathnamani, M.B.A, M.Phil, Research Scholar National College
(Autonomus) Trichy 620001 Tamilnadu, India. (Jan. Feb. 2013)
Topic Name: Investor’s Preferences towards Mutual Fund Industry in Trichy
Objective:
1. To analyse to what extend the mutual fund is effective as an investment mode to the
investors.
2. To study the growth of mutual fund industry in India.
3. To analyse the investors awareness and perception regarding Mutual fund investment.
4. To find preference of investors about different investment avenue
5. To find out which factors attracts investors to invest in mutual fund
Aim:
To know Growth of mutual fund industry in India
This part explain the methodology used in this study. The methodology includes data and
sources of data, sample size, area of the study and framework of analysis. The study is based
on primary and secondary data. Primary data have been collected from 100 respondents
through a questionnaire covering different groups of peoples in Trichy city area. The secondary
data have been collected from various books, magazine, journals, newspapers and websites.
Sampling For the purpose of this study 100 respondents have been chosen on a randomly
convenient base in Trichy city. Out of 100 respondent 90 respondents provided full
information which is required for this study. The respondents are segregated on the basis of
different variables such as income, age, occupation gender, family size, academic qualification
and annual saving. All required information from investors of mutual funds have been collected
based on their knowledge, information source and investment decision factors related to their
selection of a particular scheme fund
The present study says about the investors preferences towards mutual funds in trichy. The
study explains that many investors are preferred to invest in mutual fund in order to have high
return at low level of risk, safety liquidity. The world of investment has been changing day to
day, so investor’s preferences toward investment pattern also changed. In the demographic
profile most of the investors are willing to invest only 10% in their annual personal income,
around 39% of investors belongs to age range of 31 to 40 years. In this study investors are
willing to take moderate and low level risk, most of the investors belong to moderate
investment style. In order to have more investors to invest in mutual funds, mutual fund
companies have to bring some awareness program about the benefits of investing in mutual
funds, and the safety and security provided my mutual fund companies in this changing stock
market situation.
Author Name: Neha choudhary, Royal School Business, Guwahati, India,
Topic Name: A study on the awareness level of investors about mutual fund investment
Objective:
1. To measure the awareness level of the retail investors about mutual fund investment.
2. To see whether there exists any difference in the awareness level among the investors
with different demographic profile.
Aim:
Differences were observed in knowledge level of male and female investors and the investors
with different education level, in mutual fund.
The study is based on the primary data collected through a structured questionnaire. However,
secondary sources are also used for scale development. The statements relating to the
awareness level were developed through literature survey keeping the features of mutual fund
in mind. A total of 20 statement were developed. All these statement were measured in a five
point scale in terms of their level of agreement and disagreement to these statement. The sample
units considered were the retail investors who have not invested any amount in mutual fund
schemes. Convenience method of sampling was used for sampling. A sample of 119 respondent
were chosen from Tempura area for data collection out of which 99 filled up questions were
found suitable for analysis. The scale reliability was measures with the help of Cronbach’s
Alpha.
Hypothesis was tested with Kruskal Wallis Test. The collected dada was analysed with the help
of descriptive statistics like mean and standard deviation.
Based on the findings, it can be concluded that there exists low level of awareness among the
investors about mutual fund investment. The investors have relatively high level of
awarenessAbout risk involved in debt and equity products. The level of awareness in respect
of mutual fund schemes, fund houses and SIP is moderate. In respect of all other aspects
considered in the present study, the awareness level was found to be very low. Thus, overall
awareness is low among the investors. This corroborates the findings of (Bhowal & Paul, 2012)
who also observed low level of awareness of among the investors. Moreover, differences were
observed in knowledge level of male and female investors and the investors with different
education level. No differences were observed among the investors with different age groups
and profession. Thus, gender and education level have an influence in the awareness level of
mutual fund investment. The awareness programs adopted by the fund houses seem to be less
effective.
Author Name: BYJU.K, Ph.D. Research Scholar, Department of Commerce Sree Narayana
Guru College (2016)
Topic Name: A study on awareness of investment opportunities in mutual funds - special
Significance on SIP
Objective:
1. To study the attitude of the investors towards mutual funds
2. To analyse the various sources that influences the respondents in selecting mutual funds
and SIP.
3. To measure the level of awareness of the respondents about mutual funds and SIP.
4. To analyse the factors influencing investors awareness.
5. To offer suggestion for the improvement on investment in mutual funds
Aim:
Measure the level of awareness in mutual fund
The study is mainly based on the primary data and the required primary data were collected
through the structured questionnaires from the 200 sample respondents who were selected
through the convenience random sampling method. In order to find out the association between
the various independent variables and the dependent variables analysed by using statistical
tools like Simple percentages, Chi - square test and ANOVA.
1. 30% (Majority) of respondents belongs to the age group of 25 to 34 and 21% belongs
to 18 to 24.
2. The gender wise distribution of sample unit reveals that the number of male respondents
exceeds female sample respondents.
3. On marital status wise distribution 62% of sample respondents are married.
4. The distribution of sample unit by education explains that majority of the respondents
32% Post Graduate qualification. (Ref: Table.4) • The occupation of sample unit is
largely distributed between employment (28%) and Business (20%).
5. The study indicated that 44% of the respondents have the income Between 25001 to
50000.
6. The study indicates that 36% of the respondents get information through friends.
7. It is observed that 69% of the respondents know SIP and its relevance.
8. It is observed from the study majority of the respondents (38%) take investment
decision their own.
Author Name: Karuna Bajaj, Asst Professor, Sadhu Vaswani Institute of Management Studies
for Girls6, (July 2016)
Topic Name: Awareness & Attitude towards Mutual Funds in Sangli Region– A Critical Study
Objective:
1. To identify extent of investment in mutual funds amongst the residents of Sangli district.
2. To gauge the level of awareness of mutual funds among the residents of Sangli district
3. To examine the influence of demographic factors such as age and qualification on the
financial literacy
Aim:
To know awareness with help of demographic factors like age, income, education etc.
Sampling design: The study is based on convenience sampling. The study was carried out on
100 residents of Sangli district. Male and females of varied demographics- age, income level,
profession, and educational qualifications were considered
1. Most respondents hold investment in FDs, gold and insurance. They commented that they
are not happy with the returns from FDs. Most people do not invest in shares due to risk
associated with the equity markets indicative of an underlying potential for mutual funds as an
investment avenue amongst the sample in Sangli district.
2. During preliminary discussion with female respondents it was discovered that most women
were involved in investment decision for the family and hence as such were not interested in
mutual funds.
3. Only 25% of the respondents were fully aware about the concepts, terminologies and
different types of MF schemes. Few respondents shared that low levels of disposable income
is accountable for low awareness about mutual funds.
4. Many respondents revealed about the state of confusion in their minds owing to availability
of plenty of schemes and their variants and hence decided to stay away from mutual funds.
5. Over the years MF industry has evolved and now offered several schemes and variation in
asset class.
Author Name: Ms.Deepthi George, Dr.JagadeesChandra, (July. 2016)
Topic Name: A Study on Women’s Preference To wards Mutual Fund Investments with
Special Reference to Cochin
Objective:
1. To understand the women investors preference for Mutual Funds.
2. To find out the reasons for the selection of Mutual Fund as an investment alternative.
3. To assess their perception regarding Mutual Fund.
4. To understand the potential customers and their requirements.
Aim:
To know awareness of women investors in mutual fund in Cochin
The study has been conducted on the basis of primary data and secondary data. Primary data
for the study were collected through distributing structured questionnaire to 30 women
investors in Kochi city. Convenient sampling was used to select the sample respondents.
Secondary data for the study were collected mainly through journals, books, and websites.
1. 40% of the respondents fall in the group below 30.More than half of the respondents
are private employees, 47% of investors are earning an income of 2-5 lakhs. And
majority of them are married.
2. 27.72% of investors have invested in Mutual Fund. The preference for mutual fund
shows the gained popularity among the women investors.
3. Majority of the investors invested 10-30% of their incomes.
4. More than half of investors opined better return and safety are the motives behind their
investment.
5. Majority of the investors monitored the investment to stay updated and to act
accordingly.
6. 44.44% of investor invested with a view of wealth creation.
7. Half of investors prefer to receive return through Growth in NAV. But none insist on
Dividend re investment.
8. Depending on the purpose of investment, investors are ready to invest in short, medium,
long term investment plan.
9. Only minor group of investors are ready to undertake high level of risk. And rest of
them preferred to play a safe game.
10. More than half of investors belong on category of satisfied level of return.
11. 43.33% of investors were aware only of specific scheme of investment. But none of
them is totally ignorant.
12. Majority of investors are satisfied with return of long term investment.
13. It proved that there is a significant relationship between period of investment and return
Author Name: Prof Gauri Prabhu, Associate Professor AISSMS Institute of Management,
Pune, Dr N.M. Vechalekar, Associate Dean, IndSearch, Pune,
Topic Name: Perception of Indian Investor towards investment in mutual funds with special
reference to MIP Funds
Objective:
1. To study the investment pattern of Indian Investor.
2. To find out the awareness level of investors regarding mutual funds.
3. To find the type of scheme of mutual fund preferred by investor.
4. To find out the importance of factors like liquidity, higher return, company reputation and
other factors that influence investment decision of mutual fund holder.
5. To find out awareness level of investors regarding Monthly Income Plan fund.
6. To ascertain the most preferred factor for investing in MIP fund
Aim:
To find out the awareness level of investors regarding mutual funds.
Investor’s main objective is to earn higher returns keeping in mind the risk and liquidity factor.
With this objective in mind, an investor is looking out for various investment avenues. Mutual
funds offer comparatively better returns and have less risk as compared to direct investment in
stock market. In this research paper, an attempt has been made to evaluate the perception of
investors regarding mutual fund investment with special emphasis on Monthly Income Plan
funds. A survey was conducted in Pune city during the period June 2013 to September 2013.
A sample of 150 individual mutual fund investors were surveyed through a pre-tested
questionnaire. The investors were selected on the basis of those who have made prior
investment in mutual funds and have some knowledge about the basic terminologies involved
with mutual funds. An attempt has been made to find out the perception of investors regarding
mutual fund investment and to identify the factors considered to be important by the investors
before investing in any mutual fund. The awareness level of investors regarding Monthly
Income Plan funds and their benefits is also studied.
The study conducted shows that most of the investors are aware of various schemes of mutual
funds. The Mutual Fund investors mainly belong to the age group from 19 years to 55 years
and fall in the income group of Rs 30,000 to Rs 70,000 and above. Diversification of portfolio
and tax benefit are the main factors of mutual fund that allure the investors. Most of the
investors are aware of MIP Funds and the preferred reason for investing in MIP fund is
consistent returns given by these funds
Author Name: Priti Mane, Assistant Professor, MGM Institute of Management, Aurangabad,
Maharashtr, (2, February 2016)
Topic Name: A Study of Investors Perception towards Mutual Funds in the City of
Aurangabad
Objective:
1. To know investor view towards Mutual fund
2. To know the awareness of mutual fund in Aurangabad people
3. To know the preference of people for investment
Aim:
Aurangabad investors view to words investing in mutual fund
1. Source of Data The present study is based on primary data which was collected using
questionnaire method.
2. Sample Size Thirty investors of Aurangabad city
3. Data Collection The data was collected using questionnaire from professionals like
those who wants invest in mutual funds and other investment option.
4. Sample Unit The research was conducted in Aurangabad city.
5. Statistical Tools the tools used in this study are: 1. Chi Square Test for Association
Three hypotheses were made in this study and hypothesis testing was done using Chi
square for association using IBM SPSS software. Both hypotheses were tested with
95% confidence level i.e. at 5% significant level
1. The objective which is set to study the investors view towards mutual fund as per the
sample size and test which is applied to the study. found that the investors are not
choosing or feeling confident in investing in mutual fund because they think that mutual
fund is risky than other investment option.
2. The awareness level of mutual fund among the investors are very low because of only
having the partial knowledge about the mutual fund which prevent them to invest in
mutual fund to avoid risk bearing factor and fear of losing money
3. The most preference of the investors are the fixed deposit because they feel it is the
safest and returns are fixed and not having fear of losing the money
4. Apart from these found that there are investors facing various problems in selecting
mutual fund as an investment option because of share market uncertainties and risk
associated with it so investors avoid the investing in mutual fund
5. Mutual fund are link with share market and investors are not taking advice from expert
advisor to guide them for their investment in mutual fund so it creates the difficulty to
select the mutual fund scheme beneficial for them.
Author Name: Dr. T. Unnamalai, Assistant Professor, Department of Commerce,
(2, February 2016)
Topic Name: A study on awareness of investors about the mutual fund investments in musiri
taluk
Objective:
1. To know the reasons for preferring to invest in mutual fund
2. To know the way in which the awareness created among the investors about Investment
Avenue of mutual fund industries
3. To know the barriers faced by the investors while invest in mutual fund
4. To offer some suggestions to the mutual fund industries and the investors
Aim:
To know the awareness level of investors about mutual fund
Both Primary data and secondary data have been collected for the study. Secondary data
collected from books, journals, websites etc. A structured questionnaire is used to collect the
primary data from 250 investors used convenient random sampling techniques. The data are
analysed using percentage analysis and chi square test at 5 percent level of significant
confidence level.
1. Age of the respondent clearly explains their experience and their maturity level of them.
Due to this reason only age of the respondents has been collected.64 of them are from
the age group of below 30, 53 of them are from the age group of 30-40, 89 of them from
the age group of 40- 50, 33 of them from the age group of 50-60 and remaining 11 of
them are from the age group of above 60.Maority of them are from the age group of 30-
40.
2. According to their educational level 54 of them have completed their higher secondary
level, 135 of them are completed their under graduate programme 115 of them
completed their post graduate level, 11 of them completed their professional degree and
7 of them are completed their Diploma courses, Certificate courses like this.
3. Responsibilities have been increased after their marriage. Due to this reason data have
been collected. Majority of them 64 per cent of the respondents got married, and 36 of
them are unmarried.
4. 15 of the respondent are house wife, 137 of them are employed in private, government,
and public ltd companies, 82 of them are doing their own business, and 16 of them
retired from their employment.
5. 97 of the respondents belong to the monthly income of below 10000 and 112 of them
belong to 10000 - 20000 as their income level and 11% of respondent are getting
20000- 30000 and 14 of them are getting more than 30000 per month as their income.
Author Name: -Dr. Binod Kumar Singh, (2, March-2012)
Topic Name: A study on investors’ attitude towards mutual funds as an investment option
Objective:
1. To study and analyse the impact of various demographic factors on investors’ ’ attitude
towards mutual fund.
2. to study about the factors (on the basis of rank) responsible for the selection of mutual funds
as an investment option
Aim:
To know investors’ attitude towards fund as investment option
The study is basically an analytical study based on primary research as well as also related to
the analysis of the attitude of investors’ ’ towards mutual funds. In order to conduct this study,
250 investors’ in Ranchi region have been selected by sampling method and mainly
questionnaire has been used for collecting the data.
All the data required for this analytical study has been obtained mainly from primary sources,
but at times, secondary sources of data have also been considered.
The data collection method used to obtain the desired information from primary sources has
been through direct interview and questionnaire has been used as an instrument.
The study 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 investors’ ’ attitude towards mutual funds. On the
other hand the other two demographic factors like age and occupation have not been found
influencing the attitude of investors’ ’ towards mutual funds.
Author Name: Dr. Bhavsinh M. Dodiya, Assistant Professor, Smt. B.V. Dhanak Arts,
Commerce, Science & Mgt. College, Bagasara, Gujarat , (2015)
Topic Name: A study on the attitude of the Investors towards Investment in Mutual Fund
Objective:
1. To study and analyse the influence of various demographic factors on investors’ attitude
towards mutual funds.
2. To study and rank the variables affecting or responsible for the selection of mutual funds as
an investment option.
Aim:
To know the attitude of the Investors towards Investment in Mutual Fund
1. Null Hypothesis (Ho): Demographic variables like age, income, gender, education level and
occupation of the respondents and their attitude towards mutual funds are independent of each
other.
2. Collection of Data: This research paper is mainly based on primary data collected through
structured questionnaire. For this 300 respondents of Ahmedabad City were surveyed.
3. Analysis of Data: The data collected was analysed by using simple statistical tools like chi-
square test. To measure the reliability of the data Cranach Alpha test has been used. To reduce
the width Bartlett’s Test and factor analysis has been used.
Today investors are investing in various investment options available to them. Even mutual
fund industry is getting positive response in India as an investment option. In compare to other
investment options, the investment in mutual fund is safe and yields more return on the
investment. This research study reveals that the financial literacy among the new investors is
vital to promote mutual fund industry. Hence, the fund manager should create awareness
among the investors regarding mutual fund so that they can diversify saving of the household
to their industry.
Author Name: Sanjay Das,

Topic Name: Small investor’s perceptions on mutual funds in Assam: an empirical analysis
Objective:
The objectives of the study are to identify the small investor’s perceptions on MFs; to analyse
the influence of demographic factors on MFs; to analyses factors influencing with the MFs; to
analyse the objectives behind investing in MFs, to study the problems of MF investment and
finally, to analyse the factors affecting investors’ perception and the choice of public and
private sector MFs
Aim:
To find out Small investor’s perceptions on mutual funds in Assam
The research design for the study is descriptive in nature. The researcher collected primary data
from the small investors living in Assam and invested in MF schemes during the period
between June and July, 2011 through a structured questionnaire. The sample size covered 250
small investors of Assam who were spread through five different business centres in Nagaon,
Kamrup, Tezpur, Cachar and Dibrugrah districts of Assam. The important business centres,
where large numbers of MFs investors are available, are identified for this study using
Purposive Sampling Method. In order to collect referred information from the small investors,
the sampling design was carefully decided and properly chosen for the study. From each
identified Investment Centre, ten approved brokers of were chosen and five MF investors were
contacted with the help of brokers. Thus, this study was based on the responses by 250 selected
respondents. To analyse the primary data simple statistical tools like percentage method, cross
tabulation and Chi-Square analysis were used. Further, to study the opinion of the MF investors
regarding the problems of Mutual Fund investment with five point scale viz. Strongly Agree -
4, Agree -3, Neutral -2, Disagree-1, Strongly Disagree -0. Similarly to study the factors
affecting investors’ perception towards mutual funds four point scale is fitted and again to study
the factors influencing with the MFs, three point scales is fitted
It is concluded that the MFs business in Assam is still in as embryonic stage. So, concerted
efforts are needed for its success. The success depend upon high returns, professional
competence of Fund managers, a MF brings together a group of people and invests their
Money in stocks, bonds and other securities, it have so many advantages such as professional
management, economics of scale. The MF should be easy to buy and sell through broker or
directly in the market. It also has some draw backs such as low awareness, too many
formalities, difficult to select. Finally, the MF should be great transparency, prudent accounting
norms, less transaction cost, low management fees. It is very attractive between sub urban and
rural areas, it have innovative schemes and efficient administrative system. The present study
analyses the MF investments in relation to investor’s behaviour.
Author Name: Gaurav Agrawal, Dr. Mini Jain, (2013)

Topic Name: Investor’s preference towards mutual fund in comparison to other investment
avenues
Objective:
1. To find out the most preferred Investment Avenue of the investors of Mathura.
2. To analyse the investor’s preference towards investment in mutual funds when other
investment avenues are also available in the market.
3. To find the main bases of different investment avenues, an investor thinks before
investing. To find out the overall criterion of investors regarding investment
Aim:
Study the investor’s preference towards mutual fund in comparison to other investment
avenues
Universe of the Study: Mathura in which Chowk Bazar, Dampier Nagar, Moti Kunj, Bank
Colony, Krishna Nagar and Radha Puram was covered.
Sample Size: 300 Investors.
Sampling Unit: Small & Big Investors.
Sampling Procedure: Snowball Sampling.
Sampling Time-frame: August, 2013 – October, 2013.
Research Instrument: Structured Questionnaire.
Investment Avenues covered in this paper: Banks, LIC, PPF, Bonds, Mutual Funds, Real estate,
Commodity Market, Gold, Equity Shares, Futures & Options and instruments of Post Office
like NSC, KVP, MIS and others.
1. 100% investors are aware of Banks & LIC, while 96% aware about Mutual Funds followed
by 95% for the Real Estate, 80% for the NSC 80%, 78% each for Gold & KVP, 76 % for
PPF, 68% each for Equity Shares & Bonds, 64% for MIS, 56% for Others, and the least aware
is Commodity Market & Futures & Options, which clearly indicates that Banks, LIC, Mutual
Funds, Real Estate & NSC are the most popular investment avenues among the investors of
Mathura.
2. 46% of the investors’ overall and main criterion for investment is Return followed by Tax
Planning (26%), and Safety (22%). It implies that investors generally invest their money for
the return.
3. More than 50% of the investors prefer Banks, LIC & MIS for Safety, while more than 35%
of the investors prefer Real Estate, Equity Shares, Commodity Market, and Mutual Funds for
Return, while more than 30% investors prefer NSC, LIC, and Mutual Funds for Tax Planning.
4. If the investors have been provided more funds, 50% of the investors would like to invest in
Real Estate, 23% in Mutual Funds and only 12% in Equity Shares
Chapter: 3
RESEARCH
METHODOLOGY
Problem statement:
“To study the awareness of mutual fund among investors in Bardoli region.”
Research objectives:
Primary objective:
 Study of awareness about mutual funds among investors of Bardoli.
Secondary objective:
 To know reasons for preferring to invest in mutual fund.
 To examine the influence of demographic factors such as age and qualification on the
financial literacy.
Sampling methodology:
 Population definition:
The target population was the investors and non –investors of Bardoli area.
 Sample Design: -
For the purpose of this study 100 respondents have been chosen on a randomly
convenient base.
 Data Collection Method:

The Primary data was collected by the researcher through Questionnaire.
The Primary data was collected by through Questionnaire. The secondary data was from
Journals, Books, Magazines and few other websites
Research design:
Descriptive study is used to study the situation .this study helps to descriptive the situation .a
detail descriptive about present situation can be found out by the descriptive study it involves
the analysis of the situation using primary data descriptive studies are under taken in many
circumstances. When the researcher is interested in knowing the characteristic of certain groups
such as age, gender, occupation, education, level or income, a descriptive study may be
necessary other cases when descriptive study could be taken up are when researcher is
interested in knowing the properties of people in a given population who are investing in mutual
fund a particular manner or determine the relationship between two or more variables.
Chapter 4
Q.1 Are you aware about the mutual fund?
1. Yes [ ] 2. No [ ]
If No, please directly fill up the demographic information.
Statistics
Aware
Valid 100
N
Missing 0
Aware
Frequency Percent Valid Percent Cumulative
Percent
Yes 79 79.0 79.0 79.0
Valid No 21 21.0 21.0 100.0
Total 100 100.0 100.0

Interpretation:
The statistics table shows that there are no missing values. This means that I have all
information about the awareness of mutual fund in Bardoli region.
The Awareness table shows that out of 100 respondents in my dataset, 79 respondent are
aware about mutual fund and rest of 21 respondents are not aware about mutual fund in
Bardoli region. Also pie chart shows big part of chart people are aware and one forth
respondents are not aware about mutual fund.
Q.2 Form which source you come to know about Mutual fund? (Multiple
choice)
1. [ ] Broker 2. [ ] Bank 3. [ ] AMC (Assets management company)
4. [ ] Newspaper/T.V 5. [ ] Friend/Relatives 6. [ ] Other
Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Respondents 79 79.0% 21 21.0% 100 100.0%
Which source you come to know about mutual fund?
Responses Percent of
N Percent Cases
Broker 25 22.3% 31.6%
Bank 16 14.3% 20.3%
Respondents AMC 14 12.5% 17.7%
Newspaper/T.V 24 21.4% 30.4%
Friends/Relatives 33 29.5% 41.8%

Total 112 100.0% 141.8%
Interpretation:
The statistics table shows that there are 21 missing values. This means that 21 respondents are
not awareness about the mutual fund in Bardoli region.
The source you come to know about mutual fund shows that out of 79 respondents in my
dataset, 79 respondent are aware and source where they come to know about mutual fund and
rest of 31.6% respondents are aware about mutual fund from broker,20.3% respondents are
aware about mutual fund from Bank,17.7% respondents in percentages are aware about
mutual fund from AMC,30.4% respondent in percentage are aware about mutual fund from
newspaper/T.V and 41.8% respondents in percentage are aware about mutual fund from
friends/Relatives . And percent of cases is more than 100% because of respondents have
multiple choice. Also pie chart shows same.
Q.3 Have you ever invested in Mutual fund?
1. [ ] Yes 2. [ ] No
If NO, please directly fill up the Q no 9.
Statistics
Invested
Valid 79
N
Missing 21
Invested

Percent
Yes 59 59.0 74.7 74.7
Valid No 20 20.0 25.3 100.0

Total 79 79.0 100.0
Missing System 21 21.0
Total 100 100.0
Interpretation:
The statistics table shows that there are 21 missing values. This means that 21 people are not
aware about mutual fund.
The Ever invested table shows that out of 79 respondents in my dataset, 59 respondents are
ever invested and rest of 20 respondents are not ever invested in mutual fund. Also pie chart
shows big part of chart people are ever invested in mutual fund and 20 people are not
invested.
Q.4 If yes, out of the following in which mutual fund you have invested?
(Multiple choice)
1. Reliance [ ] 2. SBIMF [ ]
3. HDFC [ ] 4. Aditya Birla [ ]
5. Kotak [ ] 6. Axis [ ]
7. ICICI [ ] 8. Others:-
Case Summary
Cases
Valid Missing Total
In which mutual fund you have invested? 59 59.0% 41 41.0% 100 100.0%
In which mutual fund you have invested?
Responses Percent of
N Percent Cases
Reliance 33 25.8% 55.9%
SBI 9 7.0% 15.3%
HDFC 34 26.6% 57.6%
Respondents Aditya Birla 9 7.0% 15.3%
Kotak 8 6.3% 13.6%
Axis 16 12.5% 27.1%
ICICI 19 14.8% 32.2%

Total 128 100.0% 216.9%
Interpretation:
The statistics table shows that there are 41 missing values, because of people are not aware
about mutual fund are 21 and people are not ever invested in mutual fund are 20 in the all 100
respondents convenient sampling.
The In which mutual fund you have invested? shows that out of 59 respondents in my
dataset, 59 respondent are whoever invested in mutual fund and rest of 41 respondents are
whoever not invested in mutual fund.26.56% respondents are invested in HDFC,25.78%
respondents are invested in RELIANCE ,14.84% respondents are invested in ICICI,12.50%
respondents are invested in AXIS and only 6.25% respondents are invested in KOTAK . And
percent of cases is more than 100% because of respondents not only invested in one options
they prefer one than more options. Also pie chart shows in simple way of understanding.
Q.5 Are you aware about the way of investing in mutual fund?
(If no, skip the next question)
1. Yes [ ] 2.No [ ]
Statistics
Way
Valid 59
N
Missing 41
Ways of investing

Percent
Yes 51 51.0 86.4 86.4
Valid No 8 8.0 13.6 100.0
Total 59 59.0 100.0

Total 100 100.0
Interpretation:
The ways of investing table shows that out 59 of respondents in my dataset, 51 respondent
are aware about way of investing in mutual fund and rest of 8 respondents are not aware
about ways if investing in mutual fund in Bardoli region. Also pie chart shows big part of
chart people are aware about ways of investing and only 8respondents are not aware about
ways of investing in the all 59 respondents who ever invested in mutual fund.
Q.6 If yes, which options of mutual fund investment you prefer most?
1. S.I.P [ ] 2. Lump sum [ ]
Statistics
Prefer
Valid 51
N
Missing 49
Prefer

Percent
SIP 46 46.0 90.2 90.2
Valid lump sum 5 5.0 9.8 100.0
Total 51 51.0 100.0

Total 100 100.0
Interpretation:
The statistics table shows that there are 49 missing values. Because of people are not aware
about mutual fund are 21, people are not ever invested in mutual fund are 20 and people are
not aware about way of investing in mutual fund are 8 in the all 100 respondents convenient
sampling.
The which options prefer most table shows that out of 51 respondents in my dataset, 46
respondent are prefer investing in SIP ways of mutual fund and rest of 21 respondents are
prefer lump sum investment ways of mutual fund in Bardoli region. Also pie chart shows big
part of chart people are prefer SIP and only 21 respondents are prefer lump sum in ways of
mutual fund.
Crosstabs: Prefer * Age Cross tabulation
Case Processing Summary
Cases
Valid Missing Total
Prefer * Age 51 51.0% 49 49.0% 100 100.0%
Prefer * Age Cross tabulation
Age Total
=<25 26-35 36-45 46-55 56-65
Count 17 11 14 4 0 46
SIP
Expected Count 17.1 11.7 12.6 3.6 .9 46.0
Prefer
Count 2 2 0 0 1 5
lump sum
Expected Count 1.9 1.3 1.4 .4 .1 5.0
Count 19 13 14 4 1 51
Total
Expected Count 19.0 13.0 14.0 4.0 1.0 51.0
Interpretation:
The case processing summary table shows that there are 49 missing values. Because of
people are not aware about mutual fund are 21, people are not ever invested in mutual fund
are 20 and people are not aware about way of investing in mutual fund are 8 in the all 100
The Prefer * Age Cross tabulation table reveals that there are three rows and five columns.
The row variable has two categories: SIP and Lump sum, the two rows represent frequency
and percentages of SIP and lump sum. The third row represents the total of row statics for each
preference. The column variable has five categories: =<25, 26-35, 36-45, 46-55, 56-65.the first
five columns represent the count and percentage of respondents. The sixth column represents
the total of column statistics. Prefer*Age cross tabulations table can be interpreted as there are
17 respondents is prefer SIP in age between =<25, 11 respondents in age between 26-53 ,14
respondents are in age between 36-45 ,4 respondents are in age between 46-55 and 0 respondent
in age between 56-65.last column shows that out of 51 respondents,46 respondents are prefer
SIP . Similarly there are total 5 respondents are prefer to invest in lump sum.
Prefer * Education Cross tabulation
Case Processing Summary
Cases
Valid Missing Total
Prefer * Education 51 51.0% 49 49.0% 100 100.0%
Prefer * Education Cross tabulation
Education Total
12th standard Graduation Post- Other

or below Graduation
Count 9 19 16 2 46
SIP
% of Total 17.6% 37.3% 31.4% 3.9% 90.2%
Prefer
Count 2 2 1 0 5
lump sum
% of Total 3.9% 3.9% 2.0% 0.0% 9.8%
Count 11 21 17 2 51
Total
% of Total 21.6% 41.2% 33.3% 3.9% 100.0%
Interpretation:
The case processing summary table shows that there are 49 missing values. Because of
people are not aware about mutual fund are 21, people are not ever invested in mutual fund are
20 and people are not aware about way of investing in mutual fund are 8 in the all 100
The Prefer * Education Cross tabulation tables that there are three rows and five columns.
The row variable has two categories: SIP and Lump sum the two rows represent frequently and
percentage of SIP and lump sum the third row represent the total of row statics for each
preference. The variable has five categories: 12th stander or below, Graduation, Post-
Graduation and Other .the sixth column represent the total of column statics. Prefer * Education
Cross tabulation table can be interpreted as there are 9 respondents is prefer SIP who education
12 stander or below, 19 respondents who education is graduation,16 respondents who’s
education is post-graduation, and only 2 respondents who’s education is other. Similarly there
are total 5 respondent are prefer to lump sum.
Q.7 Are you aware about tax benefit of investing into mutual fund?
1. Yes [ ] 2. No [ ]
Statistics
Tax benefit
Valid 59
N
Missing 41
Tax benefit

Percent
Yes 54 54.0 91.5 91.5
Valid No 5 5.0 8.5 100.0
Total 59 59.0 100.0

Total 100 100.0
Interpretation:
The tax benefit table shows that out 59 of respondents in my dataset, 54 respondent are aware
about the tax benefit in mutual fund and rest of 5 respondents are not aware about the tax benefit
in mutual fund in Bardoli region. Also pie chart shows big part of chart people are aware about
the tax benefit in mutual fund and only 5 respondents are not aware about the tax benefit in
mutual fund in the all 59 respondents who know about tax benefit invested in mutual fund
Q.8 Rate the following factors that affect your decision for investing in
Mutual fund.
Least Not Neutral Important Most
important important Important
Safety
Liquidity
Fund
performance
Dividend
Risk factor
Diversification
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
Safety 59 4.29 .852 .111

Liquidity 59 3.78 .984 .128
Fund performance 59 4.29 .966 .126
Dividend 59 3.92 .772 .101
Risk factor 59 4.34 .710 .092
Diversification 59 4.29 .832 .108
Ho = safety is most important factors which affect decision

H1 = safety is not most important factors which affect decision
Ho = liquidity is most important factors which affect decision
H1 = liquidity is not most important factors which affect decision
Ho = Fund performance is most important factors which affect decision
H1 = Fund performance not is most important factors which affect decision
Ho = Dividend is most important factors which affect decision
H1 = Dividend is not most important factors which affect decision
Ho = Risk factor is most important factors which affect decision
H1 = Risk factor not is most important factors which affect decision
Ho = Diversification is most important factors which affect decision
H1 = Diversification not is most important factors which affect decision
One-Sample Test
Test Value = 5
t Df Sig. (2-tailed) Mean 95% Confidence Interval of the

Difference Difference
Lower Upper
-6.418 58 .000 -.712 -.93 -.49

Safety
-9.528 58 .000 -1.220 -1.48 -.96

Liquidity
-5.662 58 .000 -.712 -.96 -.46

Fund performance
-10.791 58 .000 -1.085 -1.29 -.88

Dividend
-7.153 58 .000 -.661 -.85 -.48

Risk factor
-6.576 58 .000 -.712 -.93 -.50

Diversification
Interpretation:
T –test followed by two tables- One-Sample Statistics and One-Sample Test. The one sample
statistics table displays the summary measures of variables selected, for the one sample T–test
for the all variables.
H0: factors are most important which affect decisions
H1: factors are not most important which are not affect the decisions
The above table shows that there is significant difference between the hypothesized mean and
the sample mean, since t –statistics is safety is -6.418 on other hand diversification -6.576 and
its p values are 0.00 and 0.00 which is more than 0.05, which means reject the null
hypothesis.
Q.9 You have not invested in mutual funds because? (Multiple choice)
1. [ ]It’s not a lucrative investment instrument
2. [ ]No satisfactory return on investment when compared to other
investment instruments.
3. [ ]No safety for funds invested
4. [ ]Risky investment instrument
5. [ ]No / Less Liquidity
6. [ ]No knowledge about how to invest
7. [ ]No knowledge about where to invest / investment centres
8. [ ]No Mutual Fund investors’ education & service centres in Bardoli
9. [ ]It is related to share market, so it is very risky and the returns are
not guaranteed
Case Summary
Cases
Valid Missing Total
Not invested in mutual funds 21 21.0% 79 79.0% 100 100.0%

because?
Not invested in mutual funds because?
Responses Percent of Cases
N Percent
Lucrative 1 2.4% 4.8%
No satisfactory 1 2.4% 4.8%
No safety 4 9.5% 19.0%
Risky 9 21.4% 42.9%
No knowledge 13 31.0% 61.9%

Respondents No knowledge about where to 10 23.8% 47.6%
invest?
No mutual fund investor’s 1 2.4% 4.8%

education & service centres in
Bardoli
It is related to share market 3 7.1% 14.3%

Total 42 100.0% 200.0%
Interpretation:
The statistics table shows that there are 79 missing values. This means that 79 people are not
invested in mutual fund.
The Not invested in mutual funds because shows that out of 21 respondents in my dataset,
21 respondents are not invested in mutual fund ,79 respondents are invested their money in
mutual fund .30.95% respondents are no knowledge about mutual fund,23.81% respondents
no knowledge about where to invest ,21.43% respondents think that mutual fund is risky.
GENDER: [ ] Male [ ] Female
Statistics
Gender
Valid 100
N
Missing 0
Gender

Percent
Male 64 64.0 64.0 64.0
Valid Female 36 36.0 36.0 100.0
Total 100 100.0 100.0

Education: [ ] 12th standard or below [ ] Graduation
[ ] Post – Graduation [ ] Other
Statistics
Education
Valid 100
N
Missing 0
Education

Percent
12th std or below 31 31.0 31.0 31.0
Graduation 35 35.0 35.0 66.0

Valid Post-Graduation 30 30.0 30.0 96.0
Other 4 4.0 4.0 100.0
Total 100 100.0 100.0
OCCUPATION:
Service [ ] Business [ ] Professional [ ]
Student [ ] Others [ ]
Statistics
Occupation
Valid 100
N
Missing 0
Occupation

Percent
service 37 37.0 37.0 37.0
business 28 28.0 28.0 65.0
professional 7 7.0 7.0 72.0

Valid
student 16 16.0 16.0 88.0
others 12 12.0 12.0 100.0
Total 100 100.0 100.0

HOUSEHOLD INCOME: (RS PER YEAR)
Up to 100000 [ ] 100001 -200000 [ ] 200001- 300000 [ ]
300001-400000 [ ] 400001-500000 [ ] above 500000 [ ]
Statistics
Household income
Valid 100
N
Missing 0
Household income

Percent
up to 100000 26 26.0 26.0 26.0

100001-200000 29 29.0 29.0 55.0
200001-300000 17 17.0 17.0 72.0
Valid 300001-400000 11 11.0 11.0 83.0
400001-500000 9 9.0 9.0 92.0
above 500000 8 8.0 8.0 100.0
Total 100 100.0 100.0

Chapter: 5
Chapter: 5
Findings and conclusion
Findings of the Research
 Among the 100 all respondents 79 respondents are aware of mutual fund rest of the 21
respondents are not aware of mutual fund in Bardoli region.
 Respondents get information about mutual fund from many sources like 31.6%
respondents are aware through a broker, 20.3% respondents are aware about mutual
fund from a bank.
 There are only 59 respondents ever invested their money in mutual fund in all 100
respondents convenient sampling, 21 respondents not aware about mutual fund and 20
respondents are aware but not invested in mutual fund.
 More respondents prefer to invest their money in HDFC or Reliance with cases of
26.56% and 25.78%.
 59 respondents know about ways of mutual fund investment whoever invested in

mutual fund.
 Most of the young respondents who’s age is between =<25 to 36-45 respondents are
mostly prefer SIP ways to invested in mutual fund ,only fewer respondents who old in
age people prefer to invest in lump sum, in India middle- class people are more so they
prefer to invest in small parts also they don’t won’t take risk .
 The Tax benefit out 59 respondent, 54 respondents are aware about tax benefit only 5
respondents are not aware about tax benefit which is very good.
 There is significant difference between the hypothesized mean and the sample mean,
since t –statistics is safety is -6.418 on other hand diversification -6.576 and its p
values are 0.00 and 0.00 which is more than 0.05, which means reject the null
hypothesis.
 Respondents are also like to invest in other investment options like in 59

respondents,25.86% respondents are like to invest their money in stocks because in
stocks return is very high in, comparison stocks with post office 4.31% only like to
invest their money because returns is very less.
 Who not invested in mutual fund but aware because they have mostly no knowledge
about mutual fund also respondents no knowledge about where to invest
SUGESSIONS
 Company should also spared awareness among who don’t knowledge

about mutual fund, also many people who won’t to invest their money but
not have proper knowledge about mutual fund.
 The company should also attract the low income people by showing them
the benefit of the liquidity funds for the short term to attract them.
 Company should organise seminar to give information about mutual fund,
as well as give advisement in Bardoli local newspaper.
CONCLUSION
After making the whole report concluding that this project measure the
Awareness of mutual fund and its service. It is also good for who want to make
their future in it. For that the only thing you need is to give time to your money
to grow, they will surely give good returns and the other thing is the knowledge
of all products and schemes.
As there is lesser number of people investing in the mutual fund in comparison

of other instrument of the investment like saving a/c, so there is good chance of
its growing. Even mutual fund is also having the product as substitute of it, so
the industry can get the benefit of it.
The industry can aware more investors to invest in mutual fund. They can do
these through seminars, advertisement etc. They can also increase their sales by
collaborating with many banks. They can also make more advisors by giving
them more commission.
Bibliography:
 Website
http://moneycontroal.com/
https://www.investopedia.com/terms/m/mutualfund.asp
https://www.sebi.gov.in/
 Literature review:
1. Awareness and Knowledge of Mutual Fund among the Investors with Special Reference to
Chennai – A Critical Study
http://www.irdindia.in/journal_ijrdmr/pdf/vol2_iss4/1.pdf
2. A study on status of awareness among mutual fund investors in Tamil Nadu
http://jems.net.in/A%20STUDY%20ON%20STATUS%20OF%20AWARENESS%20AMO
NG%20MUTUAL%20FUND%20INVESTORS%20IN%20TAMILNADU.pdf
3. A Study on Awareness of Mutual Funds among the Investors of Kutch District
http://rhimrj.com/admin/upload/Sachin%20Abda.pdf
4. Investors’ awareness and perception about mutual funds
http://www.zenithresearch.org.in
5. A research paper on investment awareness among Indian working women with reference to
Pune region
https://www.ijser.org/researchpaper/A-RESEARCH-PAPER-ON-INVESTMENT-
AWARENESS-AMONG-INDIAN.pdf
6. The Perception of Individual Investors towards the Performance of Mutual Funds
http://www.iosrjournals.org/iosr-jbm/papers/Vol18-issue9/Version-1/B1809010914.pdf
7. Investor’s Preferences towards Mutual Fund Industry in Trichy
http://iosrjournals.org/iosr-jbm/papers/Vol6-issue6/F0664855.pdf
8. A study on the awareness level of investors about mutual fund investment
https://www.ermt.net/docs/papers/Volume_5/7_July2016/V5N5-188.pdf
9. A study on awareness of investment opportunities in mutual funds - special Significance on
SIP
http://ijariie.com/AdminUploadPdf/A_study_on_awareness_of_investment_opportunities_in
_mutual_funds_%E2%80%93_special__Significance_on_SIP_c_1228.pdf
10. Awareness & Attitude towards Mutual Funds in Sangli Region– A Critical Study
https://www.ermt.net/docs/papers/Volume_5/7_July2016/V5N5-188.pdf
11. A Study on Women’s Preference To wards Mutual Fund Investments with Special
Reference to Cochin
http://www.iosrjournals.org/iosr-jhss/papers/Vol.%2021%20Issue7/Version-
7/D2107072328.pdf
12. Perception of Indian Investor towards investment in mutual funds with special reference to
MIP Funds
http://www.iosrjournals.org/iosr-jef/papers/icsc/volume-1/8.pdf
13. A Study of Investors Perception towards Mutual Funds in the City of Aurangabad
http://www.thesij.com/papers/IFBM/2016/February/IFBM-04020060202.pdf
14. A study on awareness of investors about the mutual fund investments in musiri taluk
http://www.iaeme.com/MasterAdmin/UploadFolder/IJM_07_02_013/IJM_07_02_013.pdf
15. A study on investors’ attitude towards mutual funds as an investment option
http://rspublication.com/ijrm/march%2012/6.pdf
16. A study on the attitude of the Investors towards Investment in Mutual Fund
http://www.rhimrj.com/admin/upload/May-2015.pdf
17. Small investor’s perceptions on mutual funds in Assam: an empirical analysis
https://www.abhinavjournal.com/images/Commerce_&_Management/Aug12/2.pdf
18. Investor’s preference towards mutual fund in comparison to other investment avenues
http://mujournal.mewaruniversity.in/JIR%201-4/15.pdf
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Chapter 1 Mohak

Registered 102,Nirmal complex, Station Road , Nr.HDFC Bank ,Navsri,

Legal status of Partnership limited company

Recognized Prabhudas liladhar private limited, Mumbai based share brokers

 Mohak consultancy suggested investment options based on their complete knowledge

Portfolio Management Service (PMS) is a sophisticated investment vehicle that offers

Fess charges for investor’s investment:

 A mutual fund is managed by investment professionals and other service providers,

Figure 1 investment flow

Phase I (1964-87): Growth Of UTI:

Phase II (1987-93): Entry of Public Sector Funds:

Phase III (1993-96): Emergence of Private Funds:

Phase IV (1996-99): Growth and SEBI Regulation:

Phase V (1999-2004): Emergence of a Large and Uniform Industry:

Phase VI (From 2004 Onwards): Consolidation and Growth:

Figure 2 concept of mutual fund

Figure 3 organisation of mutual fund

The structure of mutual fund:

Trust and trustees:

Asset management companies:

Other components in the structure of mutual funds

 Systematic investment plan(SIP)

Know your purpose of investment

Risk factor should always be considered

Selection of scheme and mode of investment

Do not only chase past performance of a fund

Have a balanced portfolio as per your age

Finally, keep the costs low.

Types of Mutual Funds based on structure

Types of Mutual Funds based on investment objective

Simplicity: Mutual Funds Are Easy to Understand

Accessibility: Mutual Funds Are Easy to Buy

Diversity: Mutual Funds Have Broad Market Exposure

Variety: Mutual Funds Come In Many Different Categories and Types

Affordability: Mutual Funds Have Low Minimums

Professional Management: Mutual Funds Have a Team of Professionals Researching and

Flexibility: Mutual Funds Have Several Uses and Applications

Author Name: Sanjay Das,

Author Name: Gaurav Agrawal, Dr. Mini Jain, (2013)

 Data Collection Method:

Yes 79 79.0 79.0 79.0

Valid No 21 21.0 21.0 100.0

Total 100 100.0 100.0

Valid Missing Total

N Percent N Percent N Percent

Respondents 79 79.0% 21 21.0% 100 100.0%

Which source you come to know about mutual fund?

Broker 25 22.3% 31.6%

Bank 16 14.3% 20.3%

Respondents AMC 14 12.5% 17.7%

Newspaper/T.V 24 21.4% 30.4%

Friends/Relatives 33 29.5% 41.8%

Frequency Percent Valid Percent Cumulative

Yes 59 59.0 74.7 74.7

Valid No 20 20.0 25.3 100.0

Valid Missing Total

N Percent N Percent N Percent

In which mutual fund you have invested?

Reliance 33 25.8% 55.9%

SBI 9 7.0% 15.3%

HDFC 34 26.6% 57.6%

Respondents Aditya Birla 9 7.0% 15.3%

Kotak 8 6.3% 13.6%