CHAPTER – 1

INTRODUCTION COMPANY PROFILE AND INDUSTRY PROFILE

INTRODUCTION ABOUT THE INTERNSHIP ;-

The Internship is prepared on mutual funds on BSE in done for partial accomplishment of MBA
program offered by visvesveraya technological university. This internship is undergone in
Motilal Oswal Pvt Ltd. For a period of 6weeks from 03/01/ 2019 to 23/02/2019. It is purely for
academic purpose, a report prepared is during the internship which helps to know the concept in-
depth from which conclusion can be drawn.

During the internship helps us to understand the company profile and code of business and roles
of employees, corporate culture, organization structure and service profile.

The Internship at Motilal Oswal Pvt Ltd. It has provided practical knowedge of trading process
of various investment opportunities like investment in stock and mutual fund. Motilal Oswal
mutual fund environment is very cooperative and friendly which helped me to tap my potential.

INTRODUCTION ;-

An Overview of Financial Services Industry ;-

Financial service of any country consists of finance markets, economic intermediation and
financial instruments or financial merchandise. The services sector has been a first – rate
stimulate to the Indian Financial System accounting for 56.9% of the gross domestic product
(GDP), in which the economic offerings phase has been an essential contributors. The growth of
the financial sector in India at present is virtually 8.5 % per year. The last two many years have
seen the field establishing an extra modern dayoutlook. The government of India has helpedin
this progress, introducing reforms to liberalize, control and eanhance the country’s offerings. In
present, india is recognized as probably most world’s most vibrant capital markets. However
challenges, the sector future seems to be in good hands.

INDUSTRY PROFILE ;-

History of mutual fund industry ;-

The common store Industries India begins with the year of 1963 development of Unit Trust
India, that activity of the government of India and Reserve Bank of India.

A common store is required to be enlisted with Securities and Exchange board and exchange of
India (SEBI), which control securities advertises before it, can gather reserve from people can
general.
Types of mutual fun Industry ;-

The currency showcases stores. These assets put resources into here and now, settled pay
securities, for example, government bonds, treasury charge, brokers acknowledgement, business
paper and authentications of stores.

 Fixed income funds

 Equity funds
 Balanced funds
 Index funds specially funds.

Size of Industry ;-

 The shared store industry’s advantage grow 16% in monetary year 2017
 The resource size of India’s common reserve industry has grown 6% to rs 13.53 lakh core
in budgetary year 2017, from Rs 16.88lakh crore in money related year 2015.
 The monetory year completed march 2017, the valuebsection saw record streams of Rs
85000 crore.

Major players in Brokerage Industry Industry / stock Market ;

In this, major players of stock market it has always open for new players but they are certain
players in Induatry reached their maturity level and has a huge customer confidence and client
base, they provide the quantity of services always attract and satisfaction the customers towards.
It the major players in stock market are…

Full services brokerage firms

 Sharekhan limited
 Angel brokering private limited
 Edelweisee financial service limited
 Kavya stock brokeing limited

Contribution to GDP by Financial Amenities;-

Indian as an enhanced of money related division experiencing quick extension both as far as
solid development of exiting of monetory administrations firms and new elements entering the
market. GDP is measures the country’s economic performance mid of 2019. The size of world
stock market was about $76.3 million financial services come under the service sector. The
service sector contributes to GDP in 2018-19 was 72.5 %. Financial services contribyuting to the
overall GDP is 2.8 %.
Present Scenaro of Financial Service in India ;-

Latest update ; April, 2018

 The resource administration organization in India. It’s among the quickest development
on the planet.
 At the finish of the April 2017, the advantages under the administration of the common
reserve organization’s remained at USS 299.04 billion.
 In India’s shared store inflows plans through the Systematic Investment Plan (SIP) course
climbed 44% Year on year to achieve a record high of Rs 4584 crore (USS711.17
million) in 2017.

Mutual Fund assets under management (AUM) (in USS billion) ;-

350
299
300
252.1
250

200 179.6

150
125.4 129.5 129.8 125.3 129.2 136.9

100 90.4
72.3
50
3 4 5 6 7 8 9 10 11 12
0 1 2
0
Year FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Segment Of Financial Service Sector ;-

FINANCIAL SERVICE :-

I. Capital market ;-
a) Assest Management
b) Broking
c) Wealth management
d) Investment Banking
II. Insurance ;-
a. Life
b. Non- life

III. NBFC’s
a) Asset Financial Company
b) Investment Company
c) Loan Company

RECENT TREND IN FINANCIAL SECTOR ;-

The financial sector in India is a fastest growing sectors and it’s improve their contribution to
GDP. There are various institutions of financial sectors like insurance, brokerage firm, Asset
Management company. In India helps as an example how financial segment can improve the
conditions of Indian Economy hence the recent trends of financial sectors are as follow ;-

 They stringent rules and regulations by SEBI and RBI to monitor the financial sector of
India.
 Liberalization of Indian economy.
 There was online trading and settlement was introduced in capital market.
 The entry of foreign and private institutions led to technology enhancement in financial
sector.
 Customer satisfaction was the motive which led to improvement in quality of financial
service.
Introduction of Company Profile ;-

Motilal Oswal

The association was confined in 1987 by Motilal Oswal and Raamdeo Agrawal after they picked up
enlistment on the BSE. Motilal Oswal was picked official and joined the Governing Board of the BSE in
1998.

Motilal Oswal securities is a sheltered individual from NSDL and a protected individual from central store
organizations obliged, (CSDL) in 2000. The association started offering Derivatives things and cautioning
organizations on both BSE similarly as NSE in 2001.

In 2006 the association entered private esteem and adventure banking. Around a similar time Motilal
Oswal Group secured south Indian agent firm peviwular capital markets. The association tied up with SBI
and Punjab National bank in 2006 and 2007 to offer web trading to its customers, 2008 saw the
association make one of India's Largest Equity Dealing and cautioning rooms, spread more than 26000
sq ft, (2400m2)in malad, Mumbai.

In Jan 2010 Motilal Oswal Financial organizations (through its reinforcement Motilal Oswal security ltd)
got the Final confirmation of enlistment underwriting from SEBI to set up a typical hold business in the
country.

MOAMC is a 100% reinforcement of Motilal Oswal Securities Ltd it gives hypothesis the board and
Advisory organizations to money related masters based with in and outside India and having portfolio
the board organizations business. ETF's and Mutual Funds. Motilal Oswal Assets Management Company
Ltd. One of the speediest creating Assets Management Companies in India. Moreover, has starting late
crossed the $1 billion in Equity Assets Management (AUM) Mark in June 2015.

Point Home Finance Corporation compelled (AHFCL) is an expertly Managed hotel Finance association.
AHFCL is a reinforcement limited (MOSL) which is a bit of MOFSL.

Motilal Oswal Financial Services Ltd.(MOFSL)

Motilal Oswal Financial Services Ltd. ( BSE, NIFTY, NASDAQ, Hang Seng) is an Indian upgraded Financial
Services firm offering an extent of Financial Products and Services.

Motilal Oswal Group :-

Type :- Financial Services

Traded as :- BSE ;- 532892

NSE ;- MOTILALOFS

Industry :- Finance

Founded :- Mumbai, India 1987,

Head Quarter :- Motilal Oswal Tower,

Prabhadevi, Mumbai.

Key people :- Motilal Oswal

Raamdeo Agrawal

Services :- Wealth Management,

Broking, Equity.

Subsidiaries :- Motilal Oswal Securities Ltd.

Motilal Oswal Investment Services.

Motilal Oswal Private Equity Advisor Pvt Ltd.

Motilal Oswal Assets Management company Ltd.

Aspire Home Finance Corporation Ltd.

Website :- http//www.Motilaloswalgroup.com.

Motilal Oswal Financial Services :-

1. Private Equity
2. Private Wealth Management
3. Investment Management
4. Assets management
 5. Home Finance
6. Retail Broking and Distribution
7. Intuitional Equities

Private Equity :-

Our Private Equity business was founded with a vision to become the most respected mid-market
focused alternate asset manager in India with a focus on providing growth capital and real estate
private equity. Right from inception, Motilal Oswal Private Equity (MOPE) was visualized as an
asset management platform for entrepreneurs by entrepreneurs. MOPE is managing and advising
three growth capital and four real estate funds, with a combined corpus of approx. Rs. 4700 Cr.
One of the few funds in India with a strong focus and presence in companies from Tier 2 & 3
towns.

Private Wealth Management :-

The Private Wealth Management business was instituted in the year 2007 to cater corporate or
Institutions , High Net Worth and Ultra High Net worth individuals. We use knowledge to
identify the right mix of fund managers across asset classes to ensure that you have a winning
portfolio. Our offering includes products and services across platforms and asset classes from
equity, alternate, credit solutions, estate planning, will making, property advisory to a family
office.

When it comes to managing wealth, options come in various shapes and sizes. Only knowledge
helps to identify the correct shape. Your portfolio should take for it to grow. At motilal oswal
Private Wealth Management, we use knowledge to identify the right mix of Fund Mangers
across asset classes to ensure that you have a winning portfolio.

Asset Management :-

Buy Right. Sit Tight

India only 100% equity fund house with a defined investing philosophy. A highly differentiated
asset management company, our endeavor is to offer focused mutual funds, PMS and AIF
(portfolio Management service and Alternative Investment Funds) strategies based only on our
core competence which is equity research and investing. We in herit the equity expertise from
our sponsor, Motilal Oswal Security Limited which has over 30 years of equity experience led by
our founder and thought leader Mr. Ramdeo Agrawal. Through his series of 22 annual wealth
creation studies our distinct investment philosophy has evolved and is being continuously refined
with the application, insights and practical learning’s of our experienced equity investment and
research team. Our equity offerings have been riding on our investment philosophy, Buy Right :
Sit Tight where Buy Right means buying high – quality growth – oriented companies at a fair
price and Sit Tight means staying invested in them over a long period of time to realize the full
growth potential of the underlying business. Coupled with a buy and hold strategy we endeavor
to manage portfolios with around 20-25 high convicytion holdings and low portfolio churn.

Home Finance :-

AHFCL (Aspire Home Finance Corporation Ltd ) by motilal group , provides one of the fastest
turn –around times for processing applications, and credit access on fair terms. Provision of
value –added proposition like –Property Services and Insurance Services and best in class
service for the customer segments makes AHFCL the preferred choice of over 60000 customers
in the LMI segment.

Broking and Distribution :-

The Broking and Distribution business of Motilal Oswal Financial Service Ltd. (MOFSL)helps
retail customer across the length and breadth of the country to make informed investment
decisions with a strong research – based advisory service. Our services include products such as
Equities, Derivatives, Commodities, Depository services, Portfolio Management Services and
distribution of Mutual funds, Primary Equity Offerings and Insurance products.

Institutional Equities :-

The Motilal Oswal Institutional Equities, the offer a range of institutional broking services in the
cash and derivatives segment, catering to over 650 Domestic (mutual funds, banks, financial
institutions, insurance companies) and Foreign Institutional Investors (FIIs).

Motilal oswal , pioneering research franchise include strategists, economists, forensic

accountants and sector analysts, helping to differentiate ourselves from other financial services
providers and add greater value to our clients. This backed by the Motilal Oswal specialized
Sales and Trading team, comprising top equity professionals, translates our research findings into
actionable advice for clients, based on their specific needs.

Motilal Oswal to Access the Corporate Access Group, the Motilal Oswal to bring together
global institutional investors and corporate /thought leaders through a variety of unique forums
and platforms viz. Investors Conferences, Road Shows, Customized Itineraries, Macro inputs
through interactions with Domain Experts and Policy Makers, and Field Visits.
Motilal Oswal , the high –related Research, strong Corporate Access, and efficient Sales and
Trading support are the cornerstones of our Intuitional Broking services.

Competitors of Motilal Oswal Security Ltd.

1. Aditya Birla Capital Ltd

2. Aditya Birla Money Ltd

3. ICICI Investment Securities

4. Kotak Investment Securities

5. Anandarati Investment Securities

6. N-J Financial Securities

7. Provestment Securities

8. Indian financial Security Ltd

9. Birla Capital and Financial Services Ltd

10. Capital Trust Ltd

11. ETP Corporation Ltd

12. Hybrid Financial Services Ltd

13. IMC Financial Ltd

14. India Security Ltd

15. Industrial Investment Trust Ltd

16. ISF LTD

17. Investment Growth and Security Ltd

Company Vision and Mission Statement :-

Vision :-

“ To become well respected global Financial Services by assisting customers to create wealth in
stock markets world wide ”

Mission :-

“ Our Mission is to be a well respected and preferred Global Financial services Organization
enabling wealth creation for all our customer ”

SOWT Analysis :-

Strenghts :-

• Large and different circulation

organize
• Strong research and Sales groups

• Brand acknowledgment

• Experienced top administration

• Strong Financial outcomes

• Multi Asset exchanging crosswise over Multiplatform

• Dedicated call and exchange help

Shortcomings :-

• Charges are high contrast with different organizations in Industry.

• Lack of Advertising causes low mindfulness Amongest financial specialists

Openings :-

• Growing monetary administrations a lot of wallet for discretionary cashflow

• Huge advertise open door for riches the board Services suppliers as Indian

• Wealth Management business is changing from riches shielding to developing riches

• Regulatory changes would help grater Participation by all class of financial specialists

• Leveraging innovation to empower best practices and procedures

• Increased craving (need of Indian corporate for development capital

Risk :-

• Execution Risk

• Slowdown in Global Liquidity streams

• Entry of Foreign Finance in Indian Market

Financial Statements :-

Balance Sheet of Motilal Oswal Financial Services Ltd ;-

Particulars 2018 2017 2016 2015 2014

Liabilities ;-
Share capital 14.51 14.45 14.22 14.02 13.82
Reserves & surplus 1783.01 654.73 576.26 560.76 510.31
Net worth 1797.52 669.18 593.46 574.78 524.13

Secured loan 615.97 160.00 250.32 220.00 18.83

Unsecured loan 612.29 197.59 97.74 223.14 156.08
Total liabilities 3025.78 1026.77 941.55 1017.92 699.04
Assets :-
Gross block 455.28 178.05 177.74 178.05 177.60
 (-) Acc. Dep 180.44 40.40 33.57 25.79 17.62
Net block 274.84 137.65 144.17 152.26 159.98
Investment 2441.84 658.41 489.72 357.37 122.2
Inventories .26 .00 .00 .00 .00
Sundry debtors 731.20 .00 .00 .00 .00
Cash & Bank 232.18 6.63 112.37 6.33 2.10
Loan & Advances 918 366.55 274.65 550.08 461.40
Total current Assts 1881.64 363.18 387.02 556.40 463.50
Current liabilities 1456.92 129.70 68.59 24.29 21.17
Provisions 115.43 2.77 10.76 23.83 25.57
Total current Liabilities 1572.35 132.49 79.35 48.11 46.74
Net current Assets 309.29 230.71 307.67 508.29 416.76
Misc. Expenses .00 .00 .00 .00 .00
Total Assets 3025.28 1026.77 941.55 10187.92 699.04
[A+B+C+D+E]

Profit and Loss A/c Of Motilal Oswal Financial Services Ltd :-

Particulars 2018 2017 2016 2015 2014

Incomes :-
Sales turnover 1269.06 131.75 109.90 128.71 69.72
Excise duty .00 .00 .00 .00 .00
Net sales 126.06 131.75 109.90 128.71 69.72
Other Income .00 .00 .00 .00 .00
Total Income 1272.74 132.65 110.86 129.20 97.74
Expenditure ;-
Manufacturing Expenses 338.46 1.23
Material consumed
Personal Expenses 276.03 .48 9.04 7.57 6.53
Selling Expenses 7.01 .18
Administration Expenses 114.04 3.72 10.63 18.56 17.68
Expenses Capitalized
Provision made
Total Expenditure 735.54 5.43 19.85 26.14 24.21
Operating Profit 533.52 126.32 90.05 102.58 45.51
EBITDA 537.20 127.22 91.01 103.06 73.53
Depreciation 29.42 6.92 8.02 8.17 8.32
Other write offs
EBIT 507.78 120.30 82.99 94.90 65.21
Interest 92.88 4.88 29.53 29.58 19.01
EBT 414.90 115.42 53.47 65.32 46.20
Taxes 85.70 .05 6.72 4.83 5.59
P/L for the year 329.20 115.37 46.75 60.49 40.60
Non Recurring Items -5.80 -29.07 .00 .00 -1.29
Other Non cash Adjustments
Other Adjustment
PAT
Key Items
Preference Dividend .00 .00 .00 .00 .00
Equity Dividend 91.63 28.58 39.74 41.41 29.32
Equity Dividend (%) 631.49 197.78 279.55 295.46 197.69
Share in Issue (Lakes) 1450.84 1444.59 1421.74 1401.63 1381.66
EPS-Annualized (Rs) 22.29 5.97 3.29 4.32 2.84

CHAPTER - 2

Conceptual Back ground and Literature review

THEORETICAL BACKGROUND

INTRODUCTION TO MUTUAL FUND;-

A Mutual Fund is an expect that contribute the hold resources of various brave individuals who section
an ordinary money related objective. The cash thusly collected is put by the hold official in various sorts
of security relying upon the main gathering of the plans.

These may go from offers to debentures to exchange highlight executes. The compensation earned
through these hypotheses and the capital thankfulness seen by the arrangement is shared by its unit
holders in degree to the proportion of units guaranteed by them.
By and by along these lines a Mutual Stock is the best reasonable assumption gone for the customary
man as it deals a chance to put assets into an augmented. Expertly managed assembling at an all around
effortlessness. Someone with an Investible plenitude of as lacking as two or three thousand rupees can
put resources into Mutual Funds.

Every Mutual Funds plot takes a considered scheme goal and technique shared reserve stays the
impeccable speculation vehicle for the present intricate and current budgetary situation. markets
for value offers, securities and other settled salary instrument, land, subsidiaries and different
resource have turned out to be developing and statistics determined. Regard changes in these
advantages are driven by overall events occurring in faraway spots.

In this will singular is probably not going towards have the information, abilities, viewpoint and
interval to display cases, understand their suggestions then act rapidly. An individual also
imagines that it’s difficult to screen obligation regarding assets, theories, and lender collect and
bank trader etc.

ORGANIZATION OF MUTUAL FUND ;-

It is several element included besides the outline beneath represent the authoritative set up of a
common reserve.

A Mutual Fund is set up as trust, which has support, trustees, resources association (AMC), and
supervisor. The trust is made by help or more than one help that takes after a promoter of union. The
trustee of shared additional holds its property for the upside of unit holders.
Assest Management Company (AMC) communicated through SEBI manages the focal points by making
interests in various sorts of securities. Controller, who picked with SEBI, handles the securities of the
store in its guardianship. The trustees are counseled with the general noteworthiness of
superintendence and heading over AMC. They screen the execution and consistence of SEBI
introduction by shared recuperations.

SEBI controls required that no under 66% of the head of trustee association or driving social event of
trustees must act normally running the show. Each and every regular store is required to be enrolled
with SEBI before they dispatch their game plans.

Mutual Funds Concept :-

A Mutual Fund is a trust that pools the hold assets of different theorists who shares a run of the mill
cash related target. The money henceforth assembled is then placed assets into capital market
instruments, for instance, Equities, debentures, and diverse Securities. The capital appreciation
recognized (in the wake of deducting the expenses and advantages of Mutual Fund Manger) is shared by
its unit holders in degree to the amount of units controlled by them. Thusly Mutual Funds tries to meet
the theory needs of the customary man by offering the individual being referred to opportunity to place
assets into a separated expertly directed compartment of securities at a by and large insignificant
exertion. The little save assets of the impressive number of examiners are collected to manufacture the
obtaining power and screen the little as two or three thousand rupees can place assets into Mutual
resources.

Concept Of Mutual Funds :-

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY :-

The basic store industry in India started in 1963 with the course of action of Unit Trust of India, at the
movement of the Government of India and Reserve Bank. In spite of the way that the improvement was
moderate, yet it animated from the year 1987 when non-UTI players entered the Industry. In the earlier
decade, Indian basic hold industry had seen a passionate improvement, the two attributes astute
similarly as sum canny. Already, the commanding plan of action of the market had seen a culmination
arrange; the Assets Under Management (AUM) was Rs67 billion. The private division entry to the store
family raised the An entire to Rs. 470 billion in March 1993and till April 2004; it accomplished the
stature if Rs. 1540 billion. The Mutual Fund Industry is plainly creating at a huge space with the common
save industry can be exhaustively put into four phases according to the headway of the division. Each
stage is immediately depicted as under.

First Phase – 1964-87

Unit Trust of India (UTI) was developed on 1963 by an Act of Parliament by the Reserve Bank of India
and worked under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI
was de-plinked from the RBI and the Industrial Development Bank of India (IDBI) accepted authority
over the managerial and administrative control rather than RBI. The fundamental arrangement impelled
by UTI was Unit Scheme 1964. Close to the completion of 1988 UTI had Rs.6,700 focuses of points of
interest under organization.

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

1987 indicated the entry of non-UTI, open part shared funds set up by open zone banks and debacle
security Corporation of India (Life Insurance Corporation) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non-UTI Mutual Fund developed in June 1987 sought after by Can
bank Mutual Fund , Punjab National Bank Mutual Fund , Indian Bank Mutual Fund , Bank of India ,Bank
of Baroda Mutual Fund . LIC set up its mutual save in June 1989while GIC had set up its basic store in
December 1990.At the completion of 1993, the basic store industry had assets under organization of
Rs.47,004 focuses.

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

1993 was the year in which the essential Mutual Fund Regulations showed up, under which each and
every basic store, beside UTI were to be selected and spoken to. The east while Kothari Pioneer (by and
by combined with Franklin Templeton) was the principle private region shared hold tried out July
1993.The 1993 SEBI (Mutual Fund) Regulations were substituted by a dynamically intensive and changed
Mutual Fund Regulations in 1996. The business directly works under the SEBI (Mutual Fund) Regulations
1996. As at the completion of January 2003, there were 33mutual resources with total assets of Rs.
1,21,805 focuses.

Fourth Phase – since February 2003

In February 2003, after the cancelation of the Unit Trust of India Act 1963 UTI was bifurcated into two
separate components. One is the Specified Undertaking of the Unit Trust of India with assets under
organization of Rs.29,835 focuses as close to the completion of January2003, addressing broadly, the
advantages of US 64 contrive, ensured return and certain diverse plans The second is the UTI Mutual
Fund Ltd, bolstered by SBI, PNB, BOB and LIC. It is enlisted with SEBI and limits under the Mutual Fund
Regulations. Blend and advancement. As around the completion of September, 2004, there were 29
holds, which administer assets of Rs.153108 focuses under 421 plans.

Structure of the Indian regular store industry:

The Indian shared store industry is overpowered by the Unit Trust of India and which has a flat out
corpus of Rs 700bn accumulated from more than 20 million monetary experts .The UTI has many
hold/plots in all classes for instance esteem, balanced, pay, etc with some being open completed and
some being closed wrapped up. Joined Scheme 1964 for the most part implied as US64, which is a
reasonable hold, is the best arrangement with a corpus of about Rs 200bn URI was skimmed by fiscal
establishment and is spoken to by an unprecedented exhibition of the parliament. A vast segment of its
examiners believe that the UTI is government had and controlled, which, while legitimately off base, is
substantial for each sensible reason. The second greatest

Classes of regular resources are the one floated by nationalized banks. Canara Banks. Can Bank Asset the
officials floated by canara bank and SBI Funds Management skimmed by the State Bank of India are the
greatest of these. GIC AMC skimmed by General Insurance Corporation and Jeevan Bima Sahayog AMC
coasted by the LIC are a segment of the observable ones. The all out corpus of benefits supervised by
this grouping of AMC's is about Rs 150 billion The third greatest arrangements of the basic resources are
the once skimmed by the private part and by the outside asset the board associations. The greatest of
these are Prudential ICICI AMC and Birla SUN LIFE AMC. The complete corpus of the advantage
administered by this characterization of AMC s is in plenitude of Rs 250bn.

Ongoing patterns in the shared reserve industry :-

The most devil in the MF business is the forceful extension of the outside possessed Mutual reserve
organizations and the decay of the organizations glided by the nationliuzed bank and littler private
segment players. Many nationalized banks got into the shared store business in the mid 90 and head out
to a decent begin because of the financial exchange blast winning them. These banks did not by any
means comprehend the common reserve business and they just seen it as another sort of banking
action. Barely any contracted particular staff and by and large chooser to exchange staff from the
guardians association. A few plans had offered ensured returns and their patent association needed to
rescue these AMCs by paying substantial measure of cash the distinctive beween the ensured and
genuine returns. The administration level was additionally terrible. The majority of these AMCs have not
had the capacity to hold staffs, skim, and new plan and so forth and it is far fetched wether excepting a
couple of desires, they have genuine plans of proceeding with the action in a noteworthy way.the
experience of a portion of the AMCs glided by private part Indian organizations was additionally
fundamentally the same as. They immediately understood that the AMCs business is a business, which
profits in the long haul and requires profound took support in the middle of the road years. Some have
sold ourt to remote claimed organizations, some have converged with the others and there is for the
most part rebuilding going on. The outside claimed organizations have profound pockets and have come
in here with the desire for a whole deal. They can be credited with presenting numerous new practices,
for example, new item innvotion, sharp improvement in the administration measures and exposure,
utilization of innovation, representative instruction and so on truth be told, they have constrained the
business to redesign itself and administration dimension of the association like UTI have improved
significantly over the most recent couple of years in light of the challenge given by these.

Preferences AND DISADVANTAGES OF MUTUAL FUNDS :-

Preferences :-

1. Enhancement

To differentiate is to lessen hazard. For instance, suppose you purchase milk from one milkman. On the
off chance that some time or another he becomes sick, you won't have any milk to drink! Then again, on
the off chance that you purchase milk from two milkmen, If one becomes sick, despite everything you'll
have supply from the other.

2. Proficient INVESTMENT MANAGEMENT

Contributing is clearly not a simple undertaking. Contributing, be it in offers, land, gold, bonds, etc relies
upon a huge number of variables that always should be contemplated and comprehended.

3.LIQUIDITY
In the event that you ever need to escape a common reserve, you should simply teach your merchant or
money related guide. They can offer it right away. Typically, the assets take multi day to return into your
record, yet that is not all that awful. Nearly, singular stocks would take any longer to exchange.

4. FLEXIABLITY

Numerous common store organizations deal with a few unique assets (e.g., currency showcase, fixed-
pay, development, adjusted, part, list and worldwide assets) and enable you to switch between these
assets at next to zero charge. This empowers you to change your portfolio balance as and when your
own needs, budgetary objectives or economic situations change.

5. SPREADING THE INVESTMENT

Common subsidizes help you spread your interest in better places. Thusly, it very well may be
guaranteed that you won't be at a total misfortune anytime of time. Not every one of the stocks will
descend in the meantime. Regardless of whether some of them are down, you can in any case clutch
others.

6. MORE OPTIONS AVAILABLE

For each phase of your life, common assets have an arrangement prepared. Your preferences fluctuate
as you enter an alternate period of your life. These assets oblige your necessities in an entirely beneficial
manner. You can talk about your way of life with a money related counsel who can manage you to pick
the best choice.

7. Proficient HELP

While putting resources into common assets, you can make sure that your cash is in safe hands.
Qualified experts supported by an exploration group screen the assets. Their responsibility is to examine
the exhibitions of the organizations and pick better ventures. They help you get a higher return which is
your definitive objective.
8. Whenever REDEMPTION

These assets in the common assets are more fluid than others. Whenever you wish, you can reclaim
your interest in entire or part in the present estimation of the offers. This entire business is extremely
effective and speedy that your cash contacts you as and when you require it

9. Extent OF REINVESTMENT

There are profits and different salaries related with the assets with which you can purchase extra offers
in the reserve. This is a decent method for reinvestment which is valuable since it guarantees better
development of the speculation.

Detriments :-

1. MANAGEMENT FEES

Common reserve organizations need to pay rates and advertising costs and they generally get paid FIRST
before the speculators/proprietors get paid! The executives charges are one of the key measurements
to look out for as a financial specialist since they can rapidly and insidiously eat into your benefits after
some time. Do higher administration charges associate to higher returns and better execution? Notably,
the appropriate response is NO. Actually, numerous investigations have been done that show higher
charges commonly correspond to bring down execution.

2. AD TRAPS

Showcasing is the way to any business nowadays. Same is the situation with common assets. Alluring
ads deceive the financial specialists into wrong assets. The assets might be given wrong names to trap
the speculators. For instance, a store that is little top might be publicized as a development subsidize.
3. DIFFICULT TO COMPARE

It is practically difficult to analyze the shared assets. The financial specialists can't think about the assets
income, deals development and so on. The advertisements and evaluations just have a record of the
past execution of the store. With the information about the past you can't anticipate its future.

4. NOT INSURED

Despite the fact that common assets are sponsored by the administration, they are not safeguarded.
There are protections for misfortunes at banks and different associations, yet not for common assets.
This invalidates every one of the points of interest it has. It may be hard to recoup from misfortunes at
common assets, particularly in the event that you have put for your entire life investment funds in it.

TYPES OF MUTUAL FUNDS :-

I. Open-Ended

I. Open-Ended

This arrangement empowers examiners to buy or sell units whenever. This does not have a fixed
improvement date.

1. Obligation/Income

In a commitment/pay contrive, an imperative bit of the investable hold are channelized towards
debentures, government securities, and other commitment instruments. Though capital thankfulness is
low (appeared differently in relation to the esteem basic resources), this is a modestly by and large safe
low return adventure street which is ideal for money related pros seeing a predictable pay.

2. Money Market/Liquid

This is ideal for money related experts planning to utilize their surplus resources in flitting instruments
while envisioning better decisions. These plans place assets into transient commitment instruments and
endeavor to give reasonable returns to the money related pros.

3. value/Growth

Qualities are a well known basic save class among retail money related masters. Notwithstanding the
way that it could be a high-danger enthusiasm until further notice, money related masters can foresee
capital appreciation as time goes on. In case you are at your prime winning stage and scanning for whole
deal benefits, advancement plans could be an ideal endeavor.

3.i. record Scheme

Rundown plans is a comprehensively outstanding thought in the west. These seek after a dormant
endeavor procedure where your theories rehash the improvements of benchmark records like Nifty,
Sensex, etc.

3.ii. Sectoral Scheme

Sectoral saves are placed assets into a specific division like establishment, IT, pharmaceuticals, etc or
bits of the capital market like sweeping tops, mid tops, etc. This arrangement gives a modestly high risk
excellent yield opportunity inside the esteem space.

3.iii. Toll Saving

As the name prescribes, this arrangement offers tax cuts to its examiners. The advantages are placed
assets into qualities thusly offering whole deal advancement openings. Obligation saving shared
resources (called Equity Linked Savings Schemes) has a 3-year lock-in period.

4. Balanced

This arrangement empowers budgetary experts to acknowledge improvement and pay at ordinary
breaks. Resources are placed assets into the two qualities and fixed pay securities; the degree is pre-
chosen and revealed in the arrangement related offer record. These are ideal for the carefully
compelling budgetary masters.

II. Shut Ended

In India, this kind of plan has a stipulated improvement period and money related experts can
contribute just in the midst of the basic dispatch time span known as the NFO (New Fund Offer) period.

1. Capital Protection

The basic focus of this arrangement is to shield the focal whole while trying to pass on reasonable
returns. These place assets into high bore fixed pay securities with minor introduction to values and
create nearby the advancement time of the arrangement.

2. Fixed Maturity Plans (FMPs)

FMPs, as the name suggests, are basic save plans with a described advancement period. These plans
regularly include commitment instruments which create as per the improvement of the arrangement,
thusly getting through the interest part (furthermore called coupons) of the securities in the portfolio.
FMPs are conventionally idly regulated, for instance there is no powerful trading of commitment
instruments in the portfolio. The costs which are charged to the arrangement, are thusly, generally
lower than adequately administered plans.
III. Interim

Filling in as a blend of open and shut completed plans, it empowers money related masters to trade
units at pre-portrayed between times.

Composing Reviews ;-

Sharpe (1996)

Familiar the measure with evaluate the basic backings possibility – adjusted execution, The measure was
known as compensation to change extent current offer Ratio . with the help of this extent he evaluvated
the landing of 34 open – end shared resources in the period 1945-1963. The results showed the capital
market was Extremely Efficient as a result of Which larger piece of the precedent had lower execution
when diverged from the Dow Jones Index.

Michael C. Jensen (1967)

Decided a risk – adjusted extent of portfolio execution (Jensen's alpha) that measures how much a
head's foreseeing ablity adds to store's entry. As shown by Statman (2000) the benchmark list. Where
the portfolio is used to have the benchmark rundown's standard deviation.

Dull et al. (2006)

Examined customer's choice of money related organizations assignment channels. They exhibited that
customer sureness. Lifestyle components, motivations and enthusiastic responses sway the customer's
choice, while thing, Channel and organitional factors, for instance, picture and reputation are
furthermore basic.

Syama sundar (1998)

Guided a survey to get a comprehension into the MF exercises of private Institutions with interesting
reference to Kothari pioneer . the audit related that the care about MF thought was poor in the midst of
that time in minimal urban regions like Vishakhapatnam . Authority expect a fundamental occupation in
spreding the MF culture, open end plans were supported then , age and pay are two basic determinants
in the decision of store/plot; brand picture and return are their prime examinations.

Jensen (1968)

Jensen (1968) measured the efficiency of mutual dollars with a mannequin that statistically
measured the fund performance relative to a benchmark. John and Donald (1974) analyzed the
risk and return of 123 American mutual dollars throughout 1960-1969 by relating Sharpe,
Treynor and Jensen measures. Authours concluded that more aggressive portfolios outperform
the less aggressive one.

Busse (2001)

In an additional be trained , Busse (2001) examined 230 equity mutual funds in the course of the
interval January 2, 1985 to December 29, 1995 and it was concluded that every day estimates
have been extra specified relative to monthly estimates. Within the equal 12 months, Gupta
(2001) evaluated the performance of s3eventy three Indian mutual dollars over an interval April
1994 to March 1997. He used seven efficiency measures and discovered that the efficiency of
sample schemes had proven blended results. Next year.

Cai et al.(1997)

Examined sixty four open- ended eastern cash over an interval of January, 1918 to December,
1992 making use of Jensen’s measure and also employing value weighed single index
beanchmark and Fama French three Component model. They concluded that most of the mutual
fund underformed their benchmark.

Sapar and Madava ;-

All through 2003 our of a learn in India, Sapar and Madava (2003) assessed the the effectiveness
of Indian common trade out a beaqr showcase by means of discovering an example of 58 open –
finished dollars over an interim September 1998 to April 2002. They inferred that the vast
majority of the common reserve plots in the example created overabundance returns over the
normal with giuide of because of the way that both orderly and aggregate possibility. Next a
year, Chander and Singh (2004) dissected the productivity of 23 shared store conspires on
shotband return relationship. They took the example from five Indian shared subsidized as
partnership capital, Prodential ICICI, Poineer ITI, UTI and Templeton India. Creators found that
Alliance Capital, Produdential ICICI and Poineer ITI scored preferred return over the market
through , the plans coasyted by method for UTI and Templeton India recorded a shocking return.
In some Indian audits over the sapan of the equivalent a year.

Reo et al. (2004)

It has investigated the effectiveness of 21 value trade out India. They directed their be instructed
amid 1997-2000 and 2001-2004 by utilizing learning envelopment examination, semi-ordinary
Deviation, poor capacities measure, Morning acclaimed individual Methodology, Sharpe,
Treynor, and Jensen. As indicated by DEA, no plan used to be reliably among the numerous
prime 5 in each time zones. Likewise, creators offered the evidence that the plans outflanked the
Sensex. In a yet another pick up Information of by methods for Anderson et al. (2004) the
relative effectiveness of 348 genuine property common money has been surveyed for the period
1997- 2001 by methods for utilizing DEA, a non- parametric measurable strategy. They found
powerful effecytiveness through best 234 dollars out of the aggregate example.

Agrawal, D and patidar, D (2009)

Agrawal, D and patidar, D (2009)

Has driven consider on normal resources are key supporters of the globalization of budgetary markets
and one of the essential wellsprings of capital streams to rising money related issues. Despite their
hugeness in creating markets, little is consider their hypothesis appropriation and strategies. This article
gives a survey of shared hold development in creating markets. It portrays about their size and their
assts dissemination. All store chiefs are not productive in the course of action of the portfolio along
these lines the examination also bases on the observationally testing dependent on save overseer
execution and analyzing data at the store trough and store budgetary expert dimensions. The
examination enchanted that the execution is affected by the saving and theory affinities for the all
inclusive community and at the second side the assurance and unwaveringness of the save trough
rewards – impacts the execution of the common store industry in India.

Kamiyama, T. (2007)

has driven an investigation on the assts managed by India's regular sponsors have demonstrated
incredible advancement and had total 3.3 trillioon rupees as of the end walk 2007. India's salaried class,
who are fast approaching theorists in shared hold, has been creating, and we would like to see further
advancement in the normal store publicize pushing ahead. In this paper, we at first give a diagram of the
assests managed inside India's shared hold exhibit, both now and under the watchful eye of, and of the
legal framework for basic resources, and a while later discussion about the current situation and despise
design in financicial things., course channel ans assest the administrators.

Agrawal, D. (2007)

Since the improvement of the Indian capital Marketand de-rules of the economy in 1992 it has gained
significant ground with clusters of good and awful occasions. There have been fundamental changes in
both basic and assistant markets since 1992 yield the where the no decline to the base and was
fearlessly made due in ICU. Shared resources are key contributorstothe globalization of cash related
markets and one of the rule wellsprings of capital streams to creating monetary issues. Despite their
essentialness in creating markets, little is contemplated their theory part and frameworks. This article
gives a blueprint of shared store activity in creating markets. It depicts their size, asset alloication.

Ranganathan, k.(2006)

Driven an examination on counsumer lead from the advancing scene andfinancial monetary issues has
joined to surface an empowering zone for studing and research ;social cash. The affirmation this is a
certified subject is, regardless, carely drawing. With the difference in current methodology, open
fragment, financial section and the various progression in the Indian cash Market and capital market,
shared finances which has transformed into a basic portal for the little examiners, is in like manner
influenced by their cash related lead. Hence,this consider has made an atemot to assess tne related
pieces of the store decision direct of individual monetary masters towards Mutual Funds, in the city of
Mumbai. From the experts and academician viewpoint, such will help in making ans expanding
knowedge in this field.

Factory administrator, Ross M. (2005)

Coordinated an examination In Recent years have seen a passionate move from shared resources into
theoretical stock speculations regardless of the way that common finances charge the board costs that
have been censured as absurd. While wants for unrivaled returns may be accountable for this move, this
article shows that mutual resources are more exorbitant than typically acknowledged. Shared resources
appear to give adventure organizations to by and large low costs since they gather unapproachable and
dynamic funds the board together in a way that makes light of the veritable cost of dynamic
organization. In particular, holds taking an interest away room or shadow requesting charge their
monetary experts for dynamic organization while outfitting them with insignificant more than a
recorded endeavor. For sure, even the ordinary basic store, which clearly gives simply powerful
organization, will have over 90% of the distinction in its benefits illuminated by its benchmark list.

Occupation of SEBI in shared reserve :-

In the year 1992 SEBI act was passed. The goals of SEBI are – to guarantee the excitement of money
related experts in securities, to propel the improvement of, and to control the securities publicize. As for
as shared store are concerned, SEBI figures polices rule the normal advantages for secure the
excitement of the money related pros. SEBI not exhorted rule for regular resources in 1993.

Starting there basic hold upheld by private division substances were allowed to enter the capital market.
The rules were totally upgraded in1996 and been changed. Thusly, now and then SEBI has in like manner
issued standards to the mutual save sometimes to guarantee the eagerness of the theorists. Each and
every normal store whether best in class by open region or private part components including those
progressed by remote components are spoken to by a comparative course of action of rule. There is no
refinement in authoritative essential of the regular save and all are at risk to checking and auditing by
SEBI. The risks related with the arrangement impelled by shared resources bolstered by these
components are of practically identical kind.

Who can Invest in Mutual Funds :-

Who can put resources into Mutual Fund in india ;

Common Funds in India are available to venture by ;-

1) Residents including ;

a) Residents Indian people.

b) Indian organizations/Partnership Firm

c) Indian Trust/Chartable Institutions

d) Banks/Financial Companies

e) Non – Banking Finance Companies

f) Insurance Companies

g) Provident reserves

h) Mutual Funds

2) Non Residents including ;

a) Non – Resident Indians, and Persons of Indian Origin.

b) Overseas Corporate Bodies(OCBs) andForeign Entities ;

• Foreign Institutional Investors (FII) enrolled with SEBI.

• Foreign resident/substances are not permitted to put resources into shared assets in India

Mutual Funds in India :-

1) ABN AMRO Mutual Fund

2) Benchmark Mutual Fund

3) Birla Mutual Fund

4) Bharti AXA Mutual Fund

5) BOB Mutual Fund

6) Canara Robero Mutual Fund

7) DBS Chola Mutual Fund

8) Deutsche Mutual Fund

9) DSP Black Rock Mutual Fund

10) HDFC Mutual Fund

11) HSBC Mutual Fund

12) JM Financial Mutual Fund

13) Kotak Mahindra Mutual Fund

14) LIC Mutual Fund

15) ICICI prudential Mutual Fund

16) Reliance Mutual Fund

17) SBI Mutual Fund

18) Standard Chartered Mutual Fund

19) Tata Mutual Fund

20) Taurus Mutual Fund

21) UIT Mutual Fund

Types of Risk Involved in Mutual Funds ;-

1) Market Risk ;- The likelihood That stock Fund or Bond subsidize costs in general will decay over
short or even Extended Periods. Stock and Bond Markets will in general move in cycles with periods
when costs fall.

2) Interest Rate Risk ;- Changing loan costs influence the two values and bondsin numerous ways.
Speculators are reminded that "foreseeing" which way rates will go is once in a while fruitful. An
enhanced portfolio can help in counterbalancing these changes.

3) Exchange Rate Risk ;- various organizations produce incomes in remote monetary standards and
may have speculations or costs additionally named in outside monetary standards. Changes in return
rates may, subsequently, have a positive or negative effect on organizations which thus would affect the
venture of the store.

4) Investment Risk ;- The sectoral finance plans, speculations will be overwhelmingly in values of
select organizations in the specific areas. In like manner, the NAV of the plans are connected to the
value execution of such organizations and might be more unpredictable than a progressively expanded
arrangement of values.

5) Credit Risk ;- a to put it plainly, how stable is the organization or substance to which you loan
your cash when you contribute? How certain would you say you are that it will probably pay the
premium you are guaranteed, or reimburse your important when the speculation develops?.

6) Currency Risk ;- The likelihood that profits could be decreased for American putting resources
into outside securities due to a raise in the estimation of the U.S dollar against remote monetary forms.
Likewise called Exchange rate chance.

7) Manager Risk ;- The likelihood that an effectively Managed Mutual Funds venture technique
Effectively bringing about the disappointment of expressed goal.

8) Country Risk ;- The likelihood that Political Events , Financial Problem, Natural catastrophes will
debilitate a nation's Economy and cause interest in that nation to decrease.
Shared Fund Industry ;-

The shared reserve industry in India is one of the developing enterprises in India. Today, the Indian
common store industry has 40 players. The quantity of open area players has diminished from 11 to 5.
The open division has progressively subsided away from plain sight, passing on an expansive lump of
piece of the pie to private area players .The Association of Mutual Funds in India (AMFI) is the business
body set up to encourage the development of the Indian shared store industry. It assumes an ace
dynamic job in recognizing steps that should be taken to secure financial specialists and advance the
shared reserve area. Ii is significant that AMFI is certifiably not a self – Regulatory Organization (SRO)
and its proposal are not authoritative on the business members. By its very nature, AMFI has a guide's or
an advisor's job in the common store industry. Its proposals become compulsory if and just if the
Securities and Exchange Board of India (SEBI) fuses them into the administrative system it stipulates for
shared assets.

The INDIAN mutual Fund Industry follow a 3 – tire Structure as show below ;
1. Sponsors :-

They are the general population who think about starting a typical store. The Sponsor
approaches SEBI, the market controller and besides the controller for regular resources. Only
one out of every odd individual can start a typical store. SEBI will give an agree to start a typical
store just to a person of decency, with vital association in the cash related division and a
particular least all out resources. These are just a bit of the components that become a vital
factor.

2. Trust

Once SEBI is Satisfied with the accreditations and capability of the proposed Sponsors, the
Sponsors by then develop a Trust under the Indian Trust Act 1882. Trusts have no authentic
character in India and as such can't go into contracts. From now on the trustees are the
individual affirmed to catch up in light of a legitimate concern for the Trust. Contracts are gone
into for the Trustees. At the point when the Trust is made, it is enlisted with SEBI, after which
point, this Trust is know as the regular save.

3. Asset Management Company

The Trustee pick the AMC, which is developed as an authentic component, to manage the
money related pro's money. As a final product of this money the board to assist the mutual
store to assist the basic hold, the AMC is deducted from the money assembled from them. The
AMC must be insisted by SEBI and it works under the supervision of its Board of Directors, and
besides under the course of the Trustees and the managerial framework developed by SEBI. It is
the AMC, which for the Trust, that floats new plans and manages these plans by obtaining and
selling Security.
 Chapter - 3

Research Design
INTRODUCTION ;-

TOPIC CHOSEN FOR THE STUDY ;-

“A Study on Performance Analysis Of Mutual Fund’ at Motilal Oswal Pvt Ltd . Palace Ground,
Bangalore.

Statement of Problem :-

Mutual Funds are the avenues for common investors to reap the Benefits of share Market
performance. Investing in Equity directly by investors is fraught with highest level of risk &
uncertainty Retail investors do not actively participate in share market but inflation edged
investment return demands the Exploitation of the Equity market as an investment avenue
therefore , there is a necessity to create awareness of the utility of investing in Mutual Funds
Schemes to enjoy a return which will be inflation adjusted real returns. Therefore this project is
taken on to assets the investors perception of Mutual Fund Investment. This project will
Evaluate the Financial Performance of Mutual Funds Scheme.
Scope of Research :-

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

The research was carried on in Bangalore. I had been sent at the branch of Motilal Oswal where I
completed my Project work. I surveyed on my project Topic “Mutual Fund in India” .

The study will help to know the preference of the customers. Which company, portfolio report
may help the company to make further [planning and strategy.

Objectives of Research ;-

 To Examine the penetration of Mutual Funds among Indian investors.

 To Examine the various Mutual fund investment available to investors in India.

 Finally to access the perception of investors towards Mutual Fund schemes.

RESEARCH METHODOLOGY

Research approach is a very organized and systematic medium through which a particular case or
problem can be solved. It analytical, descriptive quantitative research where the comparison
between the different mutual fund schemes is made on the basis of risk, volatility and return.

Secondary Sources ;-

This is analytical study based on secondary data; it means data that are already available in the
hands of the secondary sources of the information includes…

 Company website
 Report by organization
 Business journal , books, etc…

Chapter – 5

Data Analysis and Interpretation

ANALYSIS AND INTERPRETATION OF DATA

1. A) Age distribution of the investors of Bangalore

Age group <= 20 21-25 26-30 31-35 36-40 >40

No. of
11 16 25 22 20 18
Investors
 Age group of the investors
30

25

20
Age group of the investors
15

10

0
<=20 21-25 26-30 31-35 36-40 >40

Interpretation ;

According to this chart out of 110 mutual fund of the most are in the age group of 26-30 years
22% the second most investors are in the age group of 31-35 years 20%and the least investors
are in the age group of below 20 year.

(b) Educational Qualification of Bangalore

Educational Qualification Number of Person

Graduate / Post Graduate 78

20
Under Graduate

Others 12
 Total 110

Interpretation

Out of 110 mutual fund investors 71% of the investors in are graduate / post graduate. 18% are
under graduate and 11% are others

c) Occupation of the investors of Bangalore

Occupation No. of Investors

Govt service 22

Pvt service 46
Business 28
Agriculture 6

Others 8

Interpretation

In occupation group out of 110 investors, 42% are private employees 25% are Businessman 20%
are Govt employee. 6% are in agriculture and 7% are in others

(d) Monthly family income of the investors of Bangalore

Income group No. of Investors

<=5,000 4

5,000-10,000 10

10,001-15,000 24

15,001-25,000 41
 >25,000 31

Interpretation

In the income group of the investors of Bangalore out of 110 investors 37% investors that is
the maximum investors that is the monthly income group Rs 15,001 to Rs 25,000 second one
28% investors are in the monthly income group of more than Rs 25,000 and the minimum
investors are 4% are in the monthly income group of below Rs 5,000

(2) Investors invested in different kind of investments.

Kind of investment No. of Respondents

185
Saving A/C
Fixed deposits 138
Insurance 142
Mutual Fund 110
Post office (NSC) 65
Shares / debentures 40
Gold / silver 20
Real estate 55
 Saving account 92%
Fixed deposit 69%
Insurance 71%
Mutual fund 55%
Post office 33%
Shares/Debenture 12%
Gold/silver 12%
Real estate 28%

Interpretation

From the above graph it can be inferred that out of 200 people, 92% people have invested in
Saving A/C 71% in insurance 69% in Fixed deposits 55% in Mutual Funds 55% in post office
33% in shares or debentures 12% in gold/silver and 28% in Real estate.

3. Preference of factors while investing

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

risk return
No. of
Respondents 30 68 70 32

Interpretation

Out of 200 peoples prefer to invest where there is high return 35% prefer to invest where there is
low risk 34% prefer easy liquidity and 16% prefer trust
 2. Awareness about Mutual Fund and its operations

Response Yes No
No. of Respondents 125 75

Interpretation

From the above chat it is inferred that 63% people are aware of Mutual fund and its operations
and 37% are not aware of Mutual fund and its operations

5. Sources of information for customers about Mutual Fund

Sources of information No. of Respondents

Advertisement 20

Peer Group 28

Bank 32

Financial Advisors 65

Interpretation

From the above chart it can be inferred that the Financial advisors is the most important source
of information about mutual fund out of 145 respondents 45% know about mutual fund through
Financial advisors 23% through bank 19% through peer group and 13% through advertisement.
6. Investors invested in Mutual Fund

Response No. of Respondents

YES 120
NO 80
Total 200

Interpretation

Out of 200 people 60% have invested in mutual fund and 40% do not have invested in Mutual
Fund.

7. Reason for not invested in mutual Fund

Reason No. of Respondents

Not Aware 55
High Risk 10
Not any specific reason 15

Reason for not invested in mutual fund

18%

Not Aware
13% High Risk
Not Any

69%

Interpretation

Out of 80 peoples who have not invested in mutual fund 69% are not aware of mutual fund 13%
said there is likely to be higher risk and 18% do not have any specific reason.
8. Investors invested in different assets Management co. (AMC)

Name of AMC No. of Investors

Motilal Oswal 45
ICICI 55
HDFC 25
Reliance 75
SBIMF 45
Kotak 65
Others 60
90

80

70

60

50
Series 2
40 Series 1

30

20

10

0
Motilal ICICI HDFC Reliance SBIMF Kotak Others

Interpretation

In Bangalore most of the investors preferred kotak and Reliance Mutual fund out of 110
investors in each of them only 50% have invested in UTI 40% in ICICI prudential 35% in
SBIMF and 22% in HDFC
9. Reason for invested in Motilal Oswal

Reason No. of Respondents

Motilal oswal 30
Better Return 10
Agent Advise 5

Reason for invested in motilal

12%

22% Associated with Motilal

Better Return
Agent Advice

66%

Interpretation

Out of 45 investors of Motilal Oswal 66% have invested because of its association with brand
Motilal Oswal, 12% invested on agents Advice 22% invested because of better Return.

10. Reason for not invested in ICICI

Reason No. of Respondents

Not Aware 23
Less Return 12
Agent Advice 20
 Reason for not invested in ICICI

Not Aware
less Return
Agent Advice

Interpretation

Out of 55 people who have not invested in ICICI 41% Were not aware with ICICI Mutual Fund
22% do not have invested due to less return and 37% due to agents advice

11. Preference of Investors for future investment in Mutual fund

Name of AMC No. of investors

Motilal Oswal 70
HDFC 25
Reliance 72
SBIMF 66
Kotak 50
Others 65
ICICI 35
 Future investment in Mutual Fund
Others

ICICI

Kotak
Future investment in Mutual
Fu nd
SBIMF

Reliance

HDFC

Motilal

0% 10% 20% 30% 40% 50% 60% 70%

Interpretation

Out of 110 investors 65% prefer to invest in reliance 63% in Motilal Oswal 60% in SBIMF 59%
in others 45% in kotak 31.5% In ICICI And 23% in HDFC Mutual fund.

12. Channel preferred by the investors for mutual fund investment

Channel Financial Advisors Bank AMC

No of Respondent 75 15 20
 Sales
14%

18% Finacial Advisor

Bank
AMC

68%

Interpretaion

Out of 110 investors 68% preferred to invest through financial advisors 18% through AMC and
14% through bank.

13. Mode of investment preferred by the investors

Mode of investment One time investment Systematic investment

plan
No. of Respondents 64 46
 on time investment SP

41%

59%

Interpretation

Out of 110 investors 59% preferred one time investment and 41% prefereed
through systematic investment plan.

14. Preferred portfolios by the investors

Portfolio No. of investors

Equity 46
Debt 15
Balanced 49
 Equity Debt Balance

39%

47%

13%

Interpretation

From the above graph 41% preferred Equity portfolio 45% preferred balance
and 14% preferred debt portfolio

15. Option for getting Return Preferred by the investors

Option Dividend payout Dividend Growth

Reinvestment
No. of 20 15 75
Respondents
 Dividend payout 13% Dividend Reinvestment Growth

18%

69%

Interpretation

From the above graph 69% preferred growth option 18% preferred dividend
payout and 13% preferred dividend Reinvestment option.

16. Preference of investors whether to invest in sectoral funds

Response No. of Respondents

YES 35
32% Yes No
NO 75

68%
Interpretation

Out of 110 investors 68% investors do not prefer to invest in sectoral fund
because there is maximum risk and 32% prefer to invest in sectoral fund
 Chapter – 6
Findings and conclusion

Findings
 In Bangalore in the age social occasion of 26-30years were more in numbers. The second most
Investors were in the age social affair of 31-35 years and the least were in the get-together of
underneath 20 years

• In Bangalore most of the theorist were graduate or post graduate and underneath HSC there
were very few in numbers

• In occupation total an expansive part of the examiners were private delegates and the least
were connected with agriculture

• In family pay collect between Rs 15,001-25,000 were more in numbers the second most were in
the compensation social event of even more then Rs 25,000 and the least were in the get-together of
underneath Rs 5,000

• About all of the Respondents had a Saving a/c in bank 71% place assets into fixed store simply
55% Respondent place assets into Mutual hold

• Mostly respondents favored excellent yield while adventure the second most supported
commonly safe then liquidity and the least supported trust.

• Only 63% Respondents thought about Mutual store and its undertaking and 37% were definitely
not.

• Among 200 Respondents simply 60% had placed assets into regular store 40% did not have
placed assets into shared hold

• Out of 80% Respondent 69% didn't think about regular store 18% told there is certainly not a
specific reason behind not place assets into shared save and 13% prompted there is presumably going to
be higher risk in shared store
• Most of the theorists had placed assets into reliance or Kotak shared save , ICICI Prudential has
also incredible Brand position among monetary experts Motilal Oswal,places after SBI MF according to
the respondents

• Out of 55 budgetary masters of Motilal Oswal 64% Have contributed due to association with the
brand Motilal Oswal 27% Invested in light of Advisors direction and 9% as a result of better return

• Most of the money related authorities who did not place assets into ICICIMF in view of less
return

• For future endeavor the best Respondents Preferred reliance regular store the second most
supported Motilal Oswal ,SBIMF has been supported after them.

• 68% Investors to contribute through budgetary Advisors , 18% through AMC ( suggests Direct
endeavor ) and 14% through bank.

• 59% supported one Time hypothesis and 41% favored SIP out of both kind of technique for
endeavor.

• The most supported Portfolio was Equity , the second most was equality ( Mixture of both
esteem and commitment) and the least supported portfolio was commitment portfolio.

• Maximum number of budgetary authorities favored improvement decision for return the second
most supported Dividend payout and after that benefit Reinvestment.

• Most of the money related pros did not want to place assets into sectoral finance simply 32%
expected to place assets into sectoral fund.
End

Running a compelling shared save requires all out perception of the unconventionalities of the Indian
monetary trade and besides the brain of the little theorists. This examination has made an undertaking
to fathom the budgetary direct of shared store money related pros with respect to favored of Brand
(AMC) Products and channels I saw that an impressive parcel of social orders have fear of normal hold.
They figure their money won't be secure in like manner hold they need the learning of shared store and
its related term a significant part of society don't have placed assets into normal save due to
nonattendance of care in spite of the way that they have money to contribute. As the care and pay is
building up the amounts of shared save monetary experts are in like manner creating .

" Brand" expect basic employment for the theory. People place assets into those associations where
they have certainty or they are exceptional with them. There are various AMC in Bangalore yet simply
performing commendably on account of brand care . some AMCs are not performing commendably but
a bit of the plans of them are giving incredible profit for record of not care about brand reliance
UTI,SBIMF, ICICI prudential, etc they are extraordinary brand, they are performing extraordinary and
their points of interest under organization is greater than others whose brand name are not striking like
standard , sundered. Etc.

Spread channel are furthermore indispensable for the enthusiasm for shared store Financial Advisors
are the most supported direct for the enthusiasm for regular save. They can change money related
masters mind from one hypothesis decision to others a significant part of examiners explicitly contribute
their money notwithstanding the way that AMC in light of the fact that they don't have to pay segment
load only those people contribute clearly who contemplate regular hold and its assignments and those
have time.

Proposition and Recommendations

 The most basic issue spotted is of deadness Investors should be made aware of the favorable
circumstances . Nobody will contribute until and with the exception of in the event that he is totally
influenced money related masters should be made to comprehend that deadness is never again
happiness and what they are losing by not contributing.
 Mutual money offers a huge amount of favorable position which no other single decision could
offer. Regardless, most of the all inclusive community are for no situation aware of what extremely a
mutual save is? They simply believe it to be basically one more endeavor decision. So the guidance
should endeavor to change their viewpoints. The advisors should center for a regularly expanding
number of young budgetary masters. Similarly as individuals at the stature of their occupation should
need to go for specialists on account of nonattendance of expertise and time.

 Mutual account association need to give the arrangement of the individual cash related aides
about the hold plan and its objective, since they are the rule source to affect the money related pros.

 Before making any hypothesis cash related experts ought to at first enquire about the danger
obstruction of the budgetary authorities/customers their need and time ( to what degree they have to
contribute ) By considering these things they can examine the customers.

 Younger people developed under 35 will be a key new customers total into the future so
attempting progressively vital undertakings with increasingly energetic customers who show some
excited about contributing ought to fulfill.

 Systematic theory plan (SIP) is one the innovative things pushed by assets the administrators
associations in all regards starting late in the business. Taste is basic for month to month salaried
individual as it gives the workplace of do the enthusiasm for EMI anyway most prospects and potential
monetary masters don't think about SIP. There is a generous expansion for the associations to tap the
salaried individuals.
 Chapters – 7
Proposals and Recommendations
Proposals and Recommendations

The most basic issue spotted is of deadness Investors should be made aware of the favorable
circumstances . Nobody will contribute until and with the exception of in the event that he is totally
influenced money related masters should be made to comprehend that deadness is never again
happiness and what they are losing by not contributing.

 Mutual money offers a huge amount of favorable position which no other single decision could
offer. Regardless, most of the all inclusive community are for no situation aware of what extremely a
mutual save is? They simply believe it to be basically one more endeavor decision. So the guidance
should endeavor to change their viewpoints. The advisors should center for a regularly expanding
number of young budgetary masters. Similarly as individuals at the stature of their occupation should
need to go for specialists on account of nonattendance of expertise and time.

 Mutual account association need to give the arrangement of the individual cash related aides
about the hold plan and its objective, since they are the rule source to affect the money related pros.

 Before making any hypothesis cash related experts ought to at first enquire about the danger
obstruction of the budgetary authorities/customers their need and time ( to what degree they have to
contribute ) By considering these things they can examine the customers.

 Younger people developed under 35 will be a key new customers total into the future so
attempting progressively vital undertakings with increasingly energetic customers who show some
excited about contributing ought to fulfill.

 Systematic theory plan (SIP) is one the innovative things pushed by assets the administrators
associations in all regards starting late in the business. Taste is basic for month to month salaried
individual as it gives the workplace of do the enthusiasm for EMI anyway most prospects and potential
monetary masters don't think about SIP. There is a generous expansion for the associations to tap the
salaried individuals.

BIBOGRAPHY

Book Referred ;

 Company documents, vouchers and journals.

 Security analysis and port folio management – Punithavathy Pandian.
 Financial management -Khan & Jain

Websites ;-

 www.motilaloswal.com
 www.mf.com