CHAPTER 1

EXECUTIVE SUMMARY
The topic is selected for the project work is “Investors Buying Behavior” A
mutual fund is an investment vehicle made up of a pool of money collected from
many investors for the purpose of investing in securities such as stocks, bonds,
money market instruments and other assets. Mutual funds are operated by
professional money managers, who allocate the fund's investments and attempt to
produce capital gains and/or income for the fund's investors. A mutual
fund's portfolio is structured and maintained to match the investment
objectives stated in its prospectus. Thus being an essential part of company’s
business, study of market position and preferences has a great deal of role to play.
I seek immense opportunity for my career and it is strong reason for choosing this
topic. The proper analysis of “Investors Behavior” study gives an idea about the
investors response and opinion about product (Mutual Fund).

As Mutual fund industry is a booming industry and are in trend which has only
3% of penetration, people are likely to invest in mutual fund.

Reason for selecting Aditya Birla Sun Life AMC Ltd is, it is one of the growing
company. With a far reaching network of 150 branches and other distribution
channels, ABSLMF is committed to deepening mutual fund penetration in the
country. The company is ceaselessly working to enhance the appeal of mutual
funds across a wider set of investors and advisors across India and is ranked 3 rd
this year compared to the other AMCs.

So this gave us the opportunity to conduct a business survey and analyze the
investors behavior in market for them and help the company to achieve their goal
with our small and useful contribution.

[1]
The project was conducted in Nasik city for a period of 2 months i.e. 15 May to 15
July.

While at the start I observed the Walk-in Investors, Distributors and National
Distributors investing in the Mutual Fund.

PHASE 2- I communicated with them about the schemes, risk and returns.

PHASE 3-Questionnaire was prepared and observation was done.

PHASE 4- Questions were asked and Questionnaire was filled by the investors.

The data was collected and analyzed.

RESULT- After conducting the analysis the company is now known to its
drawback, weakness, strength, competitors and which specific schemes is
preferred the most by the investors.

[2]
 CHAPTER 2

OBJECTIVES
 To study the customer buying behavior towards Mutual Fund.
 To study the different attitude of people regarding risk, rate of return, period of
investment.
 To study the investment behavior of investors in mutual fund regarding
schemes.

CHAPTER 3
[3]
 COMPANY PROFILE
COMPANY NAME:-ADITYA BIRLA SUN LIFE AMC LTD

MISSION/VISSION:-

"To be a leader and role model in a broad-based and integrated financial services
business"
The 4 pillars of our vision that will help us achieve it are:

 To be a leader – We are committed to being a leader in all facets of our

businesses, rather than being just another participant in this race.
 To be a role model – We will not become leaders by cutting corners or
making compromises. Whatever we do, we will strive to be the best in class. And
if we are the best, then our customer will have no reason to go elsewhere –
therefore our leadership is assured, on pure merit.
 To be a broad-based player – We are committed to meeting all the felt
and unfelt needs of our target customer. And thereby, we can retain him or her
across their needs and life-stages.
 We aim to be an integrated player – We believe that this approach
gives us a competitive edge through sharing of best practices, deriving cross –
business synergies & providing talent pool with world of opportunity to grow.

LOCATION:-MUMBAI

PRODUCT RANGE:-

[4]
 Aditya Birla Sun Life Frontline Equity Fund.
 Aditya Birla Sun Life Equity Fund.
 Aditya Birla Sun Life Tax Relief.
 Aditya Birla Sun Life Equity Advantage Fund.
 Aditya Birla Sun Life Focused Equity Fund.
 Aditya Birla Sun Life Arbitrage Fund.
 Aditya Birla Sun Life Pure Value Fund.
 Aditya Birla Sun Life MNC Fund.
 Aditya Birla Sun Life Midcap Fund.
 Aditya Birla Sun Life Banking And Finance Service Fund
 Aditya Birla Sun Life Dividend Yield Plus
 Aditya Birla Sun Life Digital India Fund
 Aditya Birla Sun Life Infrastructure Fund
 Aditya Birla Sun Life Liquid Fund
 Aditya Birla Sun Life Savings Fund
 Aditya Birla Sun Life Corporate Bond Fund
 Aditya Birla Sun Life Medium Term Plan
 Aditya Birla Sun Life Low Duration Fund
 Aditya Birla Sun Life Credit Risk Fund
 Aditya Birla Sun Life Dynamic Bond Fund
 Aditya Birla Sun Life Money Manager Fund
 Aditya Birla Sun Life Banking And PSU Debt Fund
 Aditya Birla Sun Life Floating Rate Fund
 Aditya Birla Sun Life Short Term Opportunities Fund
 Aditya Birla Sun Life Income Fund
 Aditya Birla Sun Life Government Securities Fund
 Aditya Birla Sun Life Equity Hybrid '95 Fund

[5]
 Aditya Birla Sun Life Balanced Advantage fund
 Aditya Birla Sun Life Index Fund
 Aditya Birla Sun Life Gold Fund
 Aditya Birla Sun Life Sensex ETF
 Aditya Birla Sun Life NIFTY ETF
 Aditya Birla Sun Life Gold ETF

LIST OF COMPETITORS:-

 Reliance Mutual Fund

 UTI Mutual Fund
 SBI Mutual Fund
 HDFC Mutual Fund
 ICICI Prudential

 Franklin Templeton

COMPANY LOGO:-

[6]
COMPANY OFFICE:-

One India Bulls Centre, Tower 1, 17th Floor, Jupiter Mill, 841, S.B. Marg,
Elphinstone Rd. Mum - 400 013

Ph:- 022-43568000

Email:- www.birlasunlife.com

BRANCH OFFICE:-

Shop no.1 Samruddhi Residency Tilak Wadi, Nasik, Maharashtra.

Ph:- 0253-6450132

HISTORICAL DEVELOPMENT OF THE COMPANY:-

[7]
Established in 1994, Aditya Birla Sun Life AMC Limited (ABSLAMC, formerly
known as Birla Sun Life Asset Management Company Limited), is a joint venture
between the Aditya Birla Capital Limited and Sun Life (India) AMC Investments
Inc.

ABSLAMC is primarily the investment manager of Aditya Birla Sun Life Mutual
Fund, a registered trust under the Indian Trusts Act, 1882. Additionally,
ABSLAMC has various other business lines such as Portfolio Management
Services, Real Estate Investments and alternative Investment Funds. The Portfolio
Management Service is a highly customised service designed to seek consistent
long-term results by adopting a research based, methodical approach to investing.
The Real Estate Investment Advisory (REIA) business is a platform that enables
investors to access 'Real Estate Investments' opportunities meant for investors on a
private placement basis. Lastly, ABSLAMC also acts as an investment manager to
Aditya Birla Sun Life AIF Trust – I, which is formed as a Trust under Category III
alternative Investment Fund (AIF). ABSLAMC has its subsidiaries in Dubai,
Mauritius and Singapore.

Aditya Birla Capital Limited (ABCL), the holding company, is a universal

financial solutions provider and one of the largest financial services players in
India. It is committed to serving the end-to-end financial needs of its retail and
corporate customers under a unified brand — Aditya Birla Capital. Delivering a
wide range of money solutions for protecting, investing and financing, Aditya
Birla Capital serves millions of customers across the country.

Apart from asset management, ABCL has a significant presence across several
business sectors including NBFC, life insurance, health insurance, housing
finance, private equity, general insurance broking, wealth management, broking,
online personal finance management and pension fund management. Aditya Birla
Capital, through its subsidiaries and joint ventures, manages aggregate assets

[8]
worth Rs. 2,813 billion and has a lending book of Rs.447 billion as of 30
September 2017.

ACHIEVEMENT:-

 In pursuit of our leadership vision

o We are among the Top 5 Private Diversified NBFCs in India

o We are one of the largest Private Life Insurance Companies in India

o We are one of the largest Asset Management Companies in India

o We are one of the largest General Insurance Brokers in the country

 

 In pursuit of our desire to be a role model

o We are renowned for risk management, people practices, sales

management, investor education, product innovation & fund management
capabilities

o We are among the best 3 financial services players to work for [As
per a study by Great Place to Work Institute, 2016]
 

 We have continued to build a Broad based & Integrated financial

services business

o We continue to be one of the few players in the industry with a

diversified portfolio that allows us to meet almost any customer need across
the entire spectrum of his / her lifecycle

o Our integrated play has helped us gain a competitive edge by

allowing us to share best practices, derive cross-business synergies & provide

[9]
 our talent pool an opportunity to grow their career through cross-functional and
cross-sectoral experience

o Our distributors and partners see tremendous value in association

with our businesses

o We are successfully expanding the market for our offerings, along

with our market share in each of our businesses.

 Financial Achievements as of March 31, 2017

o AUM - Rs. 2,463 billion has registered 34% y-o-y growth

o Our Consolidated Lending Book has grown over 40% Y-o-Y to Rs

388 billion.

SWOT ANALYSIS:-

Strength:-

1. Has network of 600 branches and advisors spread over 1500 towns in India
having over 1,30,000 advisors.
2. Backed by Aditya Birla Brand and Sun Life Financial Services.
3. Emphasis on customer satisfaction through transparent functioning.
4. Strong capital base.

Weakness:-

1. Low presence in Rural Market.

2. Lesser advertising as compared to competitors.

Opportunities:-

1. Growing potential in the Rural Market.

[10]
2. Alignment with government schemes.
3. Better awareness among people for getting insurance.

Threats:-

1. Economic crises and economic instability.

2. Entry of new competitors in the sector.

[11]
 CHAPTER 4

THEORETICAL BACKGROUND
Consumer Behavior is the study of individuals, groups, or organizations and all
the activities associated with the purchase, use and disposal of goods and services,
including the consumer's emotional, mental and behavioral responses that precede
or follow these activities. Consumer behavior emerged in the 1940s and 50s as a
distinct sub-discipline in the marketing area. In order to succeed in today’s
dynamic and rapidly evolving marketplace, marketers need to know everything
about consumers - what they need, what they think, how they work, how they
spend their money and time. They need to identify the influencing forces that
affect consumer decision. Consumer behavior is an inter-disciplinary social
science that blends elements
from psychology, sociology, social anthropology, ethnography, marketing
and economics, especially behavioral economics. It examines how emotions,
attitudes and preferences affect buying behavior. Characteristics of individual
consumers such as demographics, personality lifestyles and behavioral variables
such as usage rates, usage occasion, loyalty, brand advocacy, willingness to
provide referrals, in an attempt to understand people's wants and consumption are
all investigated in formal studies of consumer behavior. The study of consumer
behavior also investigates the influences, on the consumer, from groups such as
family, friends, sports, reference groups, and society in general.

The study of consumer behavior is concerned with all aspects of purchasing

behavior - from pre-purchase activities through to post-purchase consumption,
evaluation and disposal activities. It is also concerned with all persons involved,

[12]
either directly or indirectly, in purchasing decisions and consumption activities
including brand-influencers and opinion leaders.

Walters (1974) defines consumer behavio0r as: " the process whereby individuals
decide whether, what, when, where, how, and from whom to purchase goods and
services.

Mowen (1993) provides a different definition by explaining consumer behavior

as: "the study of the buying units and the exchange processes involved in
acquiring, consuming, and disposing of goods, services, experiences, and ideas".
This definition focuses on buying units in an attempt to include not only the
individual but also groups that purchase products or services.

Decision-making Process

Figure 4.1

Step 1: Identify the decision

[13]
You realize that you need to make a decision. Try to clearly define the nature of
the decision you must make. This first step is very important.

Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what
information is needed, the best sources of information, and how to get it. This
step involves both internal and external “work.” Some information is internal:
you’ll seek it through a process of self-assessment. Other information is
external: you’ll find it online, in books, from other people, and from other
sources.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of
action, or alternatives. You can also use your imagination and additional
information to construct new alternatives. In this step, you will list all possible
and desirable alternatives.

Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you
carried out each of the alternatives to the end. Evaluate whether the need
identified in Step 1 would be met or resolved through the use of each
alternative. As you go through this difficult internal process, you’ll begin to
favor certain alternatives: those that seem to have a higher potential for
reaching your goal. Finally, place the alternatives in a priority order, based
upon your own value system.

Step 5: Choose among alternatives

[14]
Once you have weighed all the evidence, you are ready to select the alternative
that seems to be best one for you. You may even choose a combination of
alternatives. Your choice in Step 5 may very likely be the same or similar to the
alternative you placed at the top of your list at the end of Step 4.

Step 6: Take action

You’re now ready to take some positive action by beginning to implement the
alternative you chose in Step 5.

Step 7: Review your decision & its consequences

In this final step, consider the results of your decision and evaluate whether or
not it has resolved the need you identified in Step 1. If the decision has  not met
the identified need, you may want to repeat certain steps of the process to make
a new decision. For example, you might want to gather more detailed or
somewhat different information or explore additional alternatives.

Role of Consumers –

Product Feedback

The consumer also plays a role in the feedback-gathering process after a

company’s offering hits the market. After implementing your marketing plan and
releasing the product or service, you need to track results and continually monitor
consumer needs so you can improve on the offering in the future. For instance,
software developers seek feedback from consumers regularly to help them develop
new and improved versions of programs.

[15]
Bring in New Consumers

Consumers also can act as agents to further the effects of your marketing plan.
With word-of-mouth marketing, consumers who have used your product review it
both offline and online and can refer other consumers to the product. This
marketing is free and very effective, as individuals tend to trust the word of people
they know when it comes to trying new products and services.

Attitudes & Decision making

The functional theory of attitudes explains that attitudes facilitate behavior and so
affects the decision making process. 

Attitudes in marketing is a lasting, general evaluation of people, objects,

advertisements, or issues.
Endure over time
Help determine a lot.
Suggestive.
Positive or negative.

What is the importance of attitudes?

Attitude Functions
UTILITARIAN FUNCTION
VALUE-EXPRESSION FUNCTION
EGO-DEFENSIVE FUNCTION
KNOWLEDGE FUNCTION
ABC Model of Attitudes
AFFECT: describes how a consumer feels about an attitude object.
BEHAVIOR: refers to the intentions to take action about it.
COGNITION: what the consumer believes to be true about the attitude object

[16]
Perspectives on Decision Making
Rational, we calmly and carefully integrate as much information as possible with
what we already know about a product, weigh the pluses and minuses of each
alternative, and make a satisfactory decision.
Behavioral influence, the view that consumer decisions are learned responses to
environmental cues.

Decision Making Process

1. How we recognize the problem, or need for a product
2. How we search for information about product choices
3. How we evaluate alternatives to arrive at a decision

Mutual Funds

A mutual fund is an investment vehicle made up of a pool of money collected

from many investors for the purpose of investing in securities such
as stocks, bonds, money market instruments and other assets. Mutual funds are
operated by professional money managers, who allocate the fund's investments
and attempt to produce capital gains and/or income for the fund's investors. A
mutual fund's portfolio is structured and maintained to match the investment
objectives stated in its prospectus.

It is a professionally managed investment fund that pools money from many

investors to purchase securities. These investors may be retail or institutional in
nature.

Mutual funds have advantages and disadvantages compared to direct investing in

individual securities. The primary advantages of mutual funds are that they
provide economies of scale, a higher level of diversification, they provide

[17]
liquidity, and they are managed by professional investors. On the negative side,
investors in a mutual fund must pay various fees and expenses.

Primary structures of mutual funds include open-end funds, unit investment trusts,

and closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit
investment trusts that trade on an exchange. Mutual funds are also classified by
their principal investments as money market funds, bond or fixed income funds,
stock or equity funds, hybrid funds or other. Funds may also be categorized
as index funds, which are passively managed funds that match the performance of
an index, or actively managed funds. Hedge funds are not mutual funds; hedge
funds cannot be sold to the general public and are subject to different government
regulations.

[18]
 Figure 4.2

Concordia St. P

CHAPTER 5

RESEARCH METHODOLOGY

DURATION OF THE RESEARCH STUDY:

[19]
This study was carried out for duration of 2 month.

DEFINITION OF RESEARCH METHODOLOGY:

Research is a careful, systematic and objective investigation conducted to obtain

valid facts, draw conclusions and established principles regarding an identifiable
problem in some field of knowledge.

STAGE 1 – Gathering information and inputs to frame the necessary questions

for the survey.

STAGE 2 – Collecting data using the survey method, by getting the sample
employees fill the questionnaire.

RESEARCH DESIGN: The research design used is descriptive and the

information collected through personal interaction and observation and analyzing
the result.

DIFFERENT METHODS OF DATA SOURCES

1. PRIMARY DATA

Primary Data is the information collected during the course of an experiment

through the-

Questionnaire method

 It can also be obtained through, Observations

[20]
  Survey interviews-Direct communication with the customer by performing
surveys or descriptive research.

Definition of primary data

Primary Data is that data which is collected fresh and for the first time. It is also
called basic data or original data.

Primary Data is also defined as, “the data, researcher collects to address the
specific problem at hand – the research questions”.

Primary sources mean original works of research or raw data without

interpretation or pronouncements that represent an official opinion or position.
Primary sources include, memos, letters, complete interviews or speeches, law,
regulations, court decisions and government data including, census, economic and
labor data as the most authoritative of all sources.

METHODS OF COLLECTING PRIMARY DATA

Observation method:

Definition:

Observation means viewing or seeing. We go on observing something or other

while we are awake. Most of such observations are just casual and have no

[21]
specific purpose. But observation as a method of data collection is different from
such casual viewing.

Interview method:

Definition:

A somewhat formal discussion between a hirer and an applicant or candidate

typically in person , in which information is exchanged, with the intention of
establishing the applicant’s suitability for a position

2. SECONDARY DATA
There are various methods of data gathering which involves the use of specific
recording forms. These are called tools or instruments of data collection.

During the course of conducting research, a researcher has to collect the data
through adopting one or the other method.

Definition of Secondary Data:

[22]
Secondary data pertains to those data that is already available on websites,
magzines, books etc. Also, it is that data, which has been used previously for some
research and is now in use for second time. In short, the data presented in research
reports when used again for further research is called “Secondary Data”.

SOURCES OF SECONDARY DATA:

 Websites
 Books
 Magazines
 Brochures etc.

Sample size:-

 100 respondents

Method of research:–

An observational study. Probability sampling is more reliable. It is more time and

money consuming. The sample size of consumers surveyed was 100 respondents.

TYPE OF RESEARCH DESCRIPTIVE

SAMPLING UNIT RESPONDENTS FROM NASHIK
SAMPLING AREA NASHIK CITY

[23]
 SAMPLING SIZE 100 RESPONDENTS
SAMPLING METHOD SIMPLE RANDOM SAMPLING
TYPE OF DATA PRIMARY AND SECONDARY
RESEARCH INSTRUMENT QUESTIONNAIRE
DATA COLLECTION METHOD STRUCTURED QUESTIONNAIRE
Table 5.1

Limitations-

 Results are just an indication of the present scenario and may not be
applicable in the future.
 As the study was conducted only in Nashik area, so it can be said that the
study was regional biased.
 Since sampling was done under the simple random sampling method, where
easily approachable respondents were picked up. So this may not represent
the whole universe.
 Respondent may fill the partially correct information in questionnaire.

CHAPTER 6

DATA ANALYSIS
Q1. Gender

Sr. No Gender No. of respondents Percentage

1. Male 63 63%
2. Female 37 37%
Total 100 100%

[24]
 Table 6.1

Gender

Female
37%

Male
63%

Graph 6.1

INTERPRETATION:-

As shown in the pie chart it is observed and interpreted that 63% are male and
37% are female.

Q2. Age

Sr. No Age No. of Respondent Percentage

1. 20-25 12 12%
2. 26-30 46 46%
3. 31-35 18 18%
4. 36-40 16 16%
5. Above 40 8 8%
Total 100 100%

[25]
 Table 6.2

Age
46
50
45
40
35
Respondent

30
25 18 16
20 12
15 8
10
5
0
20-25 26-30 31-35 36-40 Above 40
Age

Graph 6.2

INTERPRETATION:-

From the following table it is represented that people of the age of 26 to 30

are more in no. i.e 46%, for the investment in mutual fund.

Q3. What is your occupation

Sr. No. Occupation No. of respondent Percentage

1. Private 47 47%
2. Government 11 11%
3. Business 28 28%
4. Retired 14 14%
Total 100 100%

[26]
 Table 6.3

Occupation

Retired
14%

Private
47%
Business
28%

Government
11%

Graph 6.3

INTERPRETATION:-

The pie chart interpreted that people of Private Job, 45.71% are more compared to
the Government, Business and Retired jobs.

Q4.What is your annual income?

Sr. no Income No. of respondent Percentage

1. <1.5 Lac 14 14%
2. 1.5-5 Lac 44 44%
3. 5-10 Lac 20 20%
4. Above 10 Lac 22 22%
Total 100 100%

[27]
 Table 6.4

Income
50
44
45
40
35
Respondent

30
25 22
20
20
14
15
10
5
0
<1.5 Lac 1.5-5 Lac 5-10 Lac Above 10 Lac
Income

Graph 6.4

INTERPRETATION:-

From the shown data it is observed that 14% have less than 1.5 lac salary and 44%
have salary between 1.5-5 Lac. 20% people have income between 5-10 Lac and
22% people have above 10 Lac income.

Q5. What kind of investment do you prefer the most?

Sr. no Preference Respondent Percentage

1. Saving account 5 5%
2. Fixed deposit 5 5%
3. Insurance 4 4%
4. Mutual fund 70 70%
5. Shares 6 6%
&Debentures

[28]
 6. Real Estate 5 5%
7. Gold & Silver 5 5%
Total 100 100%
Table 6.5

Investment Preferred
70

60
40
Respondent

20 5 5 4 6 5 5
0
t it ce d s te er
oun os an un tu
re sta ilv
c de
p r la f n E S
ac su u e al &
g ed In ut eb Re ld
vin Fix M &D Go
Sa es
ar
Sh
Investment preferred

Graph 6.5

INTERPRETATION:-

It is observed that people are more attracted towards Mutual Fund than the other
preferences. 70% invest their money in Mutual Fund.

Q6. What % of your income do you invest in Mutual Fund?

Sr. No % of income No. of respondent Percentage

1. 10% 30 42.85%
2. 20% 15 21.43%
3. 30% 15 21.43%
4. Above 40% 10 14.29%
Total 70 100%

[29]
 Table 6.6

% of income invested
35
30
30
25
Respondent

20
15 15
15
10
10
5
0
10% 20% 30% Above 40%
Income Invested

Graph 6.6

INTERPRETATION:-

From the shown graph it is observed that 42.85% of the investors invest their 10%
of income in Mutual Fund,21.43% invest their 20% and 30% each and 14.29%
invest 40% of their income in mutual fund.

Q7.In which type of Mutual Fund you have invested?

Sr. no Schemes Respondent Percentage

1. Debt schemes 18 25.72%
2. Equity schemes 40 57.14%
3. Hybrid schemes 12 17.14%
Total 70 100%

[30]
 Table 6.7

Types Of Mutual Fund

Hybrid schemes
17% Debt schemes
26%

Equity schemes
57%

Graph 6.7

INTERPRETATION:-

From the given pie chart it is observed that 57.14% people invest in Equity
schemes, 25.72% people invest in debt schemes and 17.14% people invest in
Hybrid schemes.

Q8.What is the time horizon for investment?

Sr. no Horizon Respondent Percentage

1. 1-2 Years 16 22.86%
2. 2-5 Years 30 42.86%
3. Above 5 Years 24 34.28%
Total 70 100%

[31]
 Table 6.8

Time Horizon

1-2 Years
23%
Above 5 Years
34%

2-5 Years
43%

FIG 6.8

INTERPRETATION:-

From the shown data it is observed that 42.86% invest for 2-5 years, 22.86%
invest for 1-2 Years and 34.28% people invest for longer period i.e above 5 years.

Q9. Are you a regular investor?

Sr. no Regular Investor Respondent Percentage

1. Yes 52 74.28%
2. No 18 25.72%
Total 70 100%

[32]
 Table 6.9

Regular Investor

No
26%

Yes
74%

Graph 6.9

INTERPRETATION:-

From the pie chart the information fetched is 74.28% of investors are regular
investors and 25.72% are not regular investors.

Q10. Where do you find yourself as a Mutual fund investor?

Sr. no Awareness Respondent Percentage

1. Totally Ignorant 9 12.85
2. Partial knowledge 28 40%
3. Aware only of any 27 38.57%
specific schemes
[33]
 which you have
invested
4. Fully aware 6 8.58%
Total 70 100%
Table 6.10

Knowledge About Mutual Fund

28 27
30
20 9 6
10
Re sponde nt

Knowledge about Mutual Fund

Graph 6.10

INTERPRETATION:-

From the given graph we can observe that 12.85% people are totally ignorant
about Mutual Fund, 40% investors have partial knowledge about Mutual Fund,
38.57% investors are aware only of any specific schemes which they have invested
in and 8.58% investors are fully aware about Mutual Fund.

Q11. What are the reasons to invest in Mutual Fund?

Sr. no Reason to invest Respondent Percentage

1. Safety 8 11.42%
2. Wealth creation 7 10%
3. Tax benefits 7 10%
4. Good returns 39 55.72%
5. Flexibility 5 7.14
6. Liquidity 4 5.72%
Total 70 100%

[34]
 Table 6.11

Reason To Invest
Safety 8

Wealth Creation 7
Reasons to invest
Tax benefit 7

Good return 39

Flexibility 6

Liquidity 4

0 5 10 15 20 25 30 35 40 45
Respondent

Graph 6.11

INTERPRETATION:-

From the given data it is interpret that 55.72% people invest for good returns and
5.72 invest for liquidity.

Q12.Which scheme do you prefer the most?

Sr. no Scheme preference Respondent Percentage

1. Low risk-Low 12 17.15%
return
2. Low risk-High 42 60%
return
3. High risk-High 16 22.85%
return
4. High risk-Low 0 0%
return

[35]
 Total 70 100%
Table 6.12

Schemes Preferred

High Risk-High Low risk-Low

return return
23% 17%

Low Risk-High return

60%

Graph 6.12

INTERPRETATION-

According to the data it was observed that 60% prefer Low risk-High return
schemes most, 23% prefer High risk-High Return ,17% prefer Low Risk-Low
Return and 0% prefer High risk-Low return.

Q13.Which medium of news information and analysis do you use to keep yourself
informed on investing product?

Sr. no Source of Respondent Percentage

information
1. Friends & Family 15 21.43%
2. Websites 10 14.29%
3. Financial advisor 31 44.28%
4. Media reports 6 8.57%
5. Prefer own research 8 11.43%
Total 70 100%

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 Table 6.13

Medium Of Information
35
31
30
25
20
Respondent

15
15
10
10 8
6
5
0
Friends & Websites Financial Media reports Prefer own
Family advisor research

Medium of information

Graph 6.13

INTERPRETATION:-

The graph shows that 44.28% prefer to take information about Mutual Fund from
Financial advisors. And minimum investors, 8.57% prefer to be updated from
Media reports.

Q14.From where do you purchase Mutual Fund?

Sr. no Source to Buy Respondent Percentage

Mutual Fund
1. Directly AMCs 13 18.57%
2. Brokers only 16 22.85%
3. Banks 35 50%
4. Others 6 8.58%
Total 70 100%

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 Table 6.15

Sources of purchase

Others
9% Directly AMCs
19%

Brokers only
Banks 23%
50%

Graph 6.14

INTERPRETATION:-

The data interpret that 50% buy Mutual fund from banks, 22.85% buy from
brokers, 18.57% buy directly from AMCs and 8.58% buy from other source.

Q15.Rank the following features of the mutual fund that attracts you the most.

Sr. no Features that Respondent Percentage

attracts
1. Diversification 16 22.86%
2. Professional 8 11.42%
management
3. Reduction in risk & 16 22.86%
transaction cost
4. Helps in achieving 30 42.86%

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 long time goal
Total 70 100%
Table 6.15

Attractive Feature
30
30
25
16 16
20
Respondent

15 8
10
5
0
Diversification Professional Reduction in Helps in
management risk and achieving long
transaction cost time goal

Features

Graph 6.15

INTERPRETATION:-

From the data it is observed that 42.86% investors thinks that the most attractive
feature that attracts is, ‘it helps in achieving long time goal’

Q16.Rank the following companies according to your investment preference.

Sr. no Companies Respondent Percentage

1. Franklin 9 12.85%
Templeton
2. ICICI Prudential 13 18.57%
3. Birla Sun Life 23 32.85%
Mutual Fund
4. HDFC Mutual 15 21.43%
Fund
5. SBI Mutual Fund 3 4.29%
6. UTI Mutual Fund 3 4.29%

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 7. Reliance Mutual 4 5.72%
Fund
Total 70 100%
Table 6.16

Company Preferred

Franklin Templeton 9
ICICI Prudential 13
Birla Sun Life Mutual Fund 23
Company

HDFC Mutual Fund 15

SBI Mutual Fund 3
UTI Mutual Fund 3
Reliance Mutual Fund 4

0 5 10 15 20 25
Respondent

Graph 6.16

INTERPETATION:-

According to the rankings 32.85% people ranked Birla Sun Life Mutual Fund as
the most preferred company for the investment. 21.43% people preferred HDFC
Mutual Fund, 18.57% preferred ICICI Prudential, 12.85% preferred Franklin
Templeton, 5.72% preferred Reliance Mutual Fund and 4.29% preferred SBI
Mutual Fund and UTI Mutual Fund.

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 CHAPTER 7

FINDINGS
 Equity schemes are the most preferred schemes at ABSLMF.
 Investors invest most for the time horizon of 2-5 years.
 74.28% are mostly regular investors.
 12.85% people are totally ignorant about Mutual Fund.
 40% investors have partial knowledge about Mutual Fund,38.57% investors
are aware only of any specific schemes which they have invested in and
8.58% investors are fully aware about Mutual Fund.
 The main reason people invest in Mutual Fund is to get good returns.

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 Investors usually prefer Financial Advisors for the source of information
for Mutual Fund.
 Investors prefer to buy Mutual Fund from banks.
 For investors Birla Sun life Mutual Fund is the most reliable company for
the investment compared with other AMCs.

CHAPTER 8

SUGGESTION
 The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits.
 Young investors as well as persons at the height of their career would like to go for
advisors due to lack of expertise and time.
 Now a days people are more toward the fame and branding name. People
get attracted toward the popular companies. ABSLMF should promote
more and showcase their returns more.

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 Investors are full of queries about Mutual Fund, as mutual fund is a broader
concept company should be more specific about the schemes and try to give
more knowledge about the schemes to the investors.
 The major target market for the Asset Management Companies is the
persons with the income range of 5 to 10Lakh and they must be approached
to gain investments.
 High end customers with a income of above 10lakhs are more interested in
saving taxes and hence tax saving schemes fit to their requirement.
 Low end customers require more of fixed returns and they can’t take high
risk because of limited financial resources. Thus income schemes need to
be recommended for this segment.
 Most of the consumer is fascinated towards the open–ended schemes. So
the company should have more attention on open-ended scheme.

CHAPTER 9
CONCLUSION
Running a successful MF requires complete understanding of the peculiarities of
the Indian Stock Market and also the psyche of the small investor. This study has
made an attempt to understand the financial behavior of MF investors in
connection with the scheme preference and selection. The post survey
developments are likely to have an influence on the findings.
Behavioral trends usually take time to stabilize and they get disturbed even
by a slight change in any of the influencing variables. Hence, surveys similar to
the present one need to be conducted at intervals to develop useful models.

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 Studies similar to this, if conducted on a large scale at regular intervals by
organizations like SEBI, will help capture the changing perceptions and responses
of these groups, and thus provide early warning signals to enable implementation
of timely corrective measures. It is hoped that the survey findings of the study will
have some useful managerial implications for the AMCs in their product
designing, marketing and management of the fund.
Results of the study may help in making cost effective strategic decisions
and hence would be of interest to both existing and new MFs; Fund managers; and
individual investors.

REFRENCES
BOOKS:-
 Mutual Fund Distributors-
Author-National Institute Of Securities Markets (NISM)
Publication- September 2016
 Marketing Management-
Author- Philip T. Kotler
Publication Date- January 2015
WEBSITE:-
 www.mutualfund.birlasunlife.com

 www.capitalmarket.com

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 www.mutualfundindia.com

APPENDIX

QUESTIONNAIRE
1. Personal Details-
A. Gender- Male Female
B. Age- __________
2. What is your occupation?
A. Private job
B. Govt. job
C. Business
D. Retired

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3. What is your annual income?
A. Less than 1.5 lacs
B. 1.5- 5 Lacs
C. 5-10 Lacs
D. Above 10 lacs
4. What kind of investment do you prefer the most?
A. Saving account
B. Fixed deposit
C. Insurance
D. Mutual Fund
E. Shares or Debentures
F. Real Estate
G. Gold or Silver
5. What % of your income do you invest in Mutual Fund?
A. 10%
B. 20%
C. 30%
D. Above 40%
6. In which type of mutual fund you have invested?
A. Debt scheme
B. Equity scheme
C. Hybrid scheme
7. What is the time horizon for investment?
A. 1-2 Years
B. 2-5 Years
C. Above 5 Years
8. Are you a regular investor?
A. Yes
B. No
9. Where do you find yourself as a mutual fund investor?

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 A. Totally ignorant
B. Partial knowledge of mutual fund
C. Aware only of any specific scheme in which you invested
D. Fully aware
10. What are the reasons to invest in mutual fund?
A. Safety
B. Liquidity
C. Flexibility
D. Good return
E. Tax benefit
F. Wealth creation
11. Which schemes do you prefer the most?
A. Low risk-Low return
B. Low risk-High return
C. High risk-High return
D. High risk-Low return

12. Which medium of news information and analysis do you use

to keep yourself informed on investing product?
A. Friends and family
B. Websites
C. Financial advisors
D. Media reports
E. Prefer own research
13. From where do you purchase Mutual fund?
A. Directly from AMCs
B. Brokers only
C. Banks
D. Other sources

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14. Rank the following features of the mutual fund that attracts
you the most.
(Where 1 is the most preferable and 4 is less preferable)
A. Diversification
B. Professional management
C. Reduction in risk and transaction cost
D. Helps in achieving long time goal
15. Rank the following companies according to your investment
preference.
A. Reliance Mutual Fund
B. UTI Mutual Fund
C. SBI Mutual Fund
D. HDFC Mutual Fund
E. Birla Sun Life Mutual Fund
F. ICICI Prudential
G. Franklin Templeton

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