A

Project Report

On

“A Study On Awareness And Preferences Of Investors Towards Mutual

Fund”

(Reference to HDFC Mutual Fund)

AT

“MoneyBhai Trading Company”

Project Report Submitted to

SAVITRIBAI PHULE PUNE UNIVERSITY

In partial fulfillment of the requirement for award

Masters of Business Administration

MBA (FINANCE)

By

SNEHAL TUKARAM JANKAR

Under the guidance of

DR. PRAVIN MAHAMUNI

At

ZEAL INSTITUTE OF BUSINESS ADMINISTRATION ,

COMPUTER APPLICATION AND RESEARCH

2018-2020
 CERTIFICATE

This is to certify that the report submitted by Snehal Tukaram Jankar to Savitribai
Phule Pune University as part of the completion of the Financial Management Summer
Internship Project under the name “A Study On Awareness And Preferences Of Investors
Towards Mutual Fund” was carried out under my supervision and guidance.

I verify that this work is original and that it was not copied from any source.

Signature of the Guide

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 ACKNOWLEGMENTkj
The success of my work on the project is a combination of many people's joint efforts.
It is my responsibility to acknowledge with appreciation the help given to me by those
individuals who provided me with valuable information and who during the successful
completion of this project were the grinding strength, encouragement and inspiration.

First of all, I extend to my Guide Prof. Mr. Pravin Mahamuni, ZIBACAR, all my
sincere greetings and appreciation for his continuous guidance, advice, encouragement and
pedagogy. Under her sincere and willing guidance, I find it my honor to have carried out my
project work.

Secondly, I extend my sincere appreciation and gratitude to our Director Dr. Amod
Markale,) and all the concern of my college professors and staff to provide all the requisite
facilities.

Second, I would like to express my sincere thanks to my colleagues in my office and

my classmates for their continuing assistance, support and guidance throughout the project.

Last but not least, I would like to express my sincere thanks to all those people who
left unmentioned here, but who supported me directly or indirectly through their input to give
me a sharp and satisfying insight into the progress of this venture.

Snehal Tukaram Jankar

(MBA-II, Finance)

INDEX

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Sr. No. Topics Page No.

Executive Summary

1 Introduction

3 Company Profile

4 Theoretical Background

5 Literature Review

6 Objectives

7 Research Methodology

8 Data Analysis & Interpretation

9 Findings and Suggestions

10 Conclusion

Bibliography

Annexure

EXECUTIVE SUMMARY

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 A Mutual Fund is a system in which multiple individuals invest their money for a
financial clause. The money collected from the people is invested in capital markets and the
money they received is split according to the number of units they possess.

With the UTI establishing what was basically a small savings division within the RBI,
the Mutual Fund Industry was launched in India in a small way. This has been very popular
for the next 25 years as it has yielded good returns for investors. Because of this, RBI gave
banks & financial institutions in the public sector a go ahead to start Mutual Funds in India
and their success gave way to Mutual Funds in the private sector.

The advantages of Mutual Funds are Diversification of Portfolios, Compliance,

Liquidity, Professional Management, Company Facility, Less Risk, Low Transaction Cost,
Transparency, Security.

Mutual Funds ' drawbacks are Cost, Index Does Best, Fees, No Investment Regulation,
High Return Profitability dramatically reduced, and Personal Tax situation is not considered.

Mutual funds are required to comply with the SEBI rules and regulations. AMFI is the
chief of all asset management firms and licensed with SEBI. The Indian Mutual Fund
Industry has been reduced to a professional and stable industry by the Association of Mutual
Funds India, upholding ethical lines.

In India, there are many forms of mutual funds. BY STRUCTURE (Open Ended
Schemes, Close-Ended Schemes & Interval Schemes); BY NATURE (Equity Fund, Debt
Fund; Balanced Fund); BY INVESTMENT OBJECTIVE (Growth Schemes; Revenue
Schemes); OTHER SCHEMES (Tax Saving Schemes; Index Schemes; Business Based
Schemes).

It is very easy to buy and easy to sell mutual funds. You can purchase funds from a
company or broker directly. Before investing in Mutual Funds, it is necessary to consider all
factors such as the performance of the Mutual Funds from the last 5 years, the returns of the
Mutual Funds from the last 5 years and the net value of the company.

There are two types of Mutual Funds available for the private sector in India Public
Sector Mutual Fund & Mutual Fund. The public sector is focused on the UTI Mutual Fund,
the State Bank of India Mutual Funds, the Baroda Mutual Funds Trust, the Birla Sun Life
Mutual Fund, the HDFC Mutual Fund, the ICICI Prudential Mutual Fund, the Reliance
Mutual Fund, etc.

The pattern of Most Mutual Funds is the aggressive expansion of Mutual Funds. The
Mutual Fund nowadays has a lot of competition as there is a lot of private sector and public
sector mutual funds have joined the market.

A return comparison was made by two Mutual Fund firms such as HDFC Mutual Fund
& SBI Mutual Fund. In this test, we've taken both small & midcap firms. We've spent the
shareholders ' money in which markets and how they've made the returns over the five years.
It gives you an insight into how to spend and where to invest.

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"Mutual funds are subject to market risk, please read the document on the offer prior to
investment"

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 INTRODUCTION
Mutual fund is the cash pool, founded on the confidence which invests the assets of a
number of investors who share a common financial goal, such as capital appreciation and
dividend earning. The cash thus raised is then invested in instruments of the capital market,
such as bonds, debentures, and foreign markets. Investors are spending money and getting the
units according to the unit value they call NAV (net asset value).

Mutual fund is the most appropriate investment for the common man as it offers an
opportunity to invest in diversified portfolio management, good research department,
professionally managed Indian stock as well as the international market, the fund manager's
main goal is to take the script that is under valuation and will increase in the future, then fund
manager sells the stock. Concentration of the fund manager on risk–return trade off, reducing
uncertainty and optimizing returns by asset diversification. The mutual fund unit's most
common features are low cost.

Most open-end mutual funds sell investors constantly new shares. It is also referred to
as an open-ended investment firm .It is different from close ended companies.

Securities investment is spread across a wide cross-section of industries and sectors,

thereby reducing the risk. Diversification reduces the risk because at the same time not all
stocks will shift in the same direction. Mutual funds grant shareholder units according to the
amount of money they spend. Mutual fund investors are known as "unit holders." The
shareholder must share the profits and losses in proportion to their contribution. The mutual
fund has various schemes that vary from time to time.

Definition of Mutual Fund

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 "A mutual fund is a pool of money from many investors who just like you
want to save their money or make money. It can be much cheaper to invest in a
mutual fund than to buy and sell individual stocks and bonds alone. Whenever they
want, shareholders can sell their shares."

"A mutual fund is nothing but a stock or bond bundle. You may think of a
mutual fund as an enterprise that puts a group of people together and invests their
money in stocks, bonds, and other securities.

COMPANY PROFILE

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NAME :- MoneyBhai Trading Co.

CONSTITUTION :- Public Limited

YEAR OF ESTABLISHMENT :-2008

HEADQUARTER :- Pune

EMAIL ID :- moneybhai.tc@gmail.com

DIRECTOR :- Mohan Sonwane

NATURE OF BUSINESS :- Financial Services

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COMPANY NAME :- MONEYBHAI TRADING CO.

Moneybhai trading co. incorporated since 2008, committed towards helping and providing
you with best investment solutions for your financial success.

We are well diversified financial services firm offering a range of financial products and
services such as Stock Broking(Equity, Derivatives, Currency, Commodity),Insurance,
Mutual Funds, Advisory Services.

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 History of Mutual Fund in India :-

The Evolution: Unit Trust of India was established in 1963 to mark the evolution of the
Indian mutual fund industry. At that time, the primary goal was to attract small investors and
it was made possible through the collective efforts of India's government and India's Reserve
Bank. It is possible to better understand the history of the mutual fund industry in India
divided into the following phases:

Phase I— Establishment and Growth of India Unit Trust 1964-87 Unit Trust of India (UTI)
was established by Parliament Act in 1963. It was established by India's Reserve Bank and
operated under the Indian Reserve Bank's regulatory and administrative control. UTI was
removed from the RBI in 1978 and the Indian Industrial Development Bank (IDBI) took over
regulatory and operational power instead of RBI. Unit Scheme was the first scheme initiated
by UTI in 1964.

Phase II–Entry of Public Sector Funds 1987-93 1987 marked the entry of non-UTI, public
sector mutual funds established by public sector banks and Life Insurance Corporation of
India (LIC) and GIC. The first non-UTI Mutual Fund was the SBI Mutual Fund in June 1987,
followed by the Can Bank Mutual Fund (Dec 87), the Punjab National Bank Mutual Fund
(Aug 89), the Indian Bank Mutual Fund (Nov 89), the Bank of India (Jun 90), the Baroda
Mutual Fund (Oct 92). In June 1989, LIC set up its mutual fund, while in December 1990,
GIC set up its mutual fund. The mutual fund industry had assets under Rs. 47,004 crores
management at the end of 1993.

Phase III–Private Sector Funds Entry 1993-96 A new era in the Indian mutual fund industry
began with the entry of private sector funds in 1993, offering Indian investors a wider choice
of fund families. 1993 was also the year in which the first Mutual Fund Regulations came
into being to regulate and control all mutual funds, including UTI. The first private-sector
mutual fund registered in July 1993 was the former Kothari Pioneer (now merged with
Franklin Templeton). The SEBI (Mutual Fund) Regulations of 1993 were replaced by a more
detailed and updated Mutual Fund Regulations of 1996.

Phase IV— Development and SEBI Regulation 1996-04 In February 2003, UTI was split
into two separate entities following the abolition of the Unit Trust of India Act 1963. One is
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the Unit Trust of India's Specified Undertaking with assets under Rs.29 administration, 835
crores as at the end of January 2003, roughly reflecting US 64 scheme capital, guaranteed
returns, and some other schemes. The Unit Trust of India's Specified Undertaking, which
functions under an administrator and the rules established by the Indian Government and is
not subject to the Mutual Fund Regulations
The second is the SBI, PNB, BOB and LIC funded UTI Mutual Fund Ltd. It is licensed under
the Mutual Fund Regulations with SEBI and works. With the bifurcation of the former UTI,
which had more than Rs.76,000 crores of assets under management in March 2000, and the
establishment of a UTI Mutual Fund, in accordance with the SEBI Mutual Fund Regulations,
and the recent mergers between various private sector funds, the mutual fund industry has
entered its current consolidation and growth phase.

Phase V–Growth & Consolidation 2004 onwards The sector has also witnessed many recent
mergers and acquisitions, including the acquisition by Principal Mutual Fund of Alliance
Mutual Fund schemes by Birla Sun Life, Sun F&C Mutual Fund and PNB Mutual Fund. At
the same time, more foreign mutual fund companies like Fidelity, Franklin Templeton Mutual
Fund, etc. have joined India. As at the end of March 2006, there were 29 investments. This is
a continuous phase of the industry's development through the integration and introduction of
new players from the global and private sector.

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Association of Mutual Funds in India (AMFI)
A need for a mutual fund association in India was created to act as a non-profit organization
with the Increase in mutual fund players in India.

On August 22, 1995, the Association of Mutual Funds in India (AMFI) was established.

AMFI is an umbrella body of all SEBI-registered Asset Management Companies (AMC). All
the AMCs that have introduced mutual fund schemes have been its members to date. It works
under its board of directors ' oversight and guidance.

The Indian Mutual Fund Industry has been brought down by the Association of Mutual Funds
India to a qualified and stable industry, strengthening ethical lines.

An Overview On Mutual Funds

In 1774, a Dutch merchant invited investor subscriptions to set up an investment trust called
Eendragt Maakt Magt (translated into English, meaning' Unity Creates Strength') with the
aim of providing low-cost diversification for small investors. Its success caught on, and more
investment trust was launched, with verbose and peculiar names that grow by consent when
translated as "profitable and prudent" or "small maters." The Colonial and International
Govt. Trust, founded in London in 1868, offered to' start a modest shareholder by spreading
the investment over a number of stocks, having the same advantages as the major capitalist.
When three executives of Boston securities polled their money together to create the first
mutual fund in 1924, they had no idea how popular mutual would become. The idea of
pooling money for investment purposes began in the 1800s in Europe. The first pooled fund
in the U.S. was established in 1893 for the Harvard University faculty and staff. The first
official mutual fund was born on March 21, 1924. It was called the Investors Trust of
Massachusetts.

Why Select Mutual Fund?

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 The risk return trade-off implies that if the investor is willing to take higher risk, he
can expect correspondingly higher returns and look the other way around if he is concerned
with lower risk instruments, which would be satisfied with lower returns. For example, if an
investor opts for bank FD, providing minimal risk of moderate return. But as he goes forward
to invest in capital-protected funds and profit-bonds that yield more returns than bank
deposits, but the associated risk also rises in the same proportion.
Since mutual funds have professional management, diversification, flexibility, and
liquidity, investors pick mutual funds as their primary investment tool. This does not say
portfolios of risk-free mutual funds.
This is because the money put in is invested not only in less risky securities like stocks, but
also in stock markets that carry a higher risk but can expect higher returns. Hedge funds pose
a very high risk because they are mostly traded on the derivatives market, which is
considered to be very volatile.

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Types Of Mutual Fund

TYPES OF
MUTUAL FUNDS

BY INVESTMENT
BY STRUCTURE BY NATURE OTHER SCHEMES
OBJECTIVE

Open - Ended Tax Saving

Equity Fund Growth Schemes
Schemes Schemes

Close - Ended
Debt Funds Income Schemes Index Schemes
Schemes
Balanced
Schemes
Sector Specific
Interval Schemes Balanced Funds
Schemes

Money Market
Schemes

A) BY STRUCTURE
 Open-ended Fund:-This system allows shareholders to buy or sell units at any time.
This has no fixed date of maturity. Shareholders can buy and sell units at values equal to
Net Asset Value conveniently. Open Ended Scheme's key feature is liquidity.

 A closed-ended fund:- A closed ended fund has a fixed number of outstanding shares
and operates for a fixed period of time (usually between 3 and 15 years). The fund
would only be open to subscription for a specified period of time, and there is an even
balance between buyers and sellers, so somebody would have to sell in order to be able
to buy it. Closed-end funds are also listed on the stock exchange, so they are traded on
an exchange or over the counter just like other stocks. Typically the redemption is also
specified, meaning that when the shareholders will redeem their units, they must end on
specified dates.

 Interval schemes – Interval schemes incorporate available-ended and close-ended

funding features. The units may be exchanged on the stock exchange or during pre-
determined periods at NAV-related rates may be open for sale or redemption. Examples
of these types of schemes are fixed maturity plans, or FMPs.

B) BY NATURE
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 Equity Fund — Equity is a common retail investor mutual fund class. They invest the
funds in stocks of equity. The fund's structure can vary for different schemes and the
outlook of the fund manager on various stocks. Such funds are sub-classified according
to investment target such as
(a) Diversified Equity Funds
(b) Mid-Cap Funds
(c) Industry Specific Funds
(d) Tax Savings Funds (ELSS).

 Debt Funds :-Debt Funds are mutual funds invested in fixed-income instruments such
as bonds and treasury bills. Gilt fund, monthly income plans (MIPs), short-term plans
(STPs), liquid funds, and fixed-term plans (FMPs) are some of the debt fund investment
options. In addition to these types, debt funds comprise numerous short-term, medium-
term and long-term bond investment funds.

 Balanced Funds–This strategy helps investors to experience steady growth and profits.
Funds are invested in both equity and fixed income securities; the ratio is predetermined
and disclosed in the offer document related to the scheme. These are perfect for
investors who are cautiously hostile.

C) INVESTMENT OBJECTIVES :-

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 Growth schemes — Growth schemes are also referred to as equity schemes. The
purpose of these schemes is to provide medium to long-term capital appreciation.
Usually, these schemes invest a large part of the funds in Equities & try capital
appreciation.

 Debt Schemes:-The tax scheme is also known as the debt scheme. The scheme's goal is
to provide the shareholder with daily and steady profits. Such programs invest in
instruments with fixed income such as bonds and corporate debentures. Capital
appreciation in such schemes may be minimal.

 This scheme enables investors to experience growth and profits at regular intervals.
Funds are invested in both equity and fixed income securities; the ratio is decided and
stated in the bid report applicable to the scheme. These are perfect for investors who are
cautiously hostile.

 Money market scheme–This is perfect for investors trying to use their surplus funds in
short-term assets when waiting for better choices. Such schemes invest in short-term
instruments such as treasury bills, deposit certificate, business paper & intercompany
call money and aim to provide investors with fair returns.

D) OTHER SCHEMES:-
 Tax savings plans–This program, as the name suggests, gives the shareholders tax
benefits. The investments are invested in equities, thereby providing opportunities for
long-term growth. There is a 3-year lock-in period for tax saving mutual funds (called
Equity Linked Savings Schemes).

 Index schemes :-Index schemes are a popular Western term. They adopt a passive
investment approach in which the portfolios mirror the movements of benchmark
indices such as Nifty, Sensex, etc.

 Specific sectoral schemes :-Sectoral funds are invested in specific sectors such as
telecommunications, IT, pharmaceuticals, etc. and capital market segments such as large
caps, mid-caps, etc.

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Comparison between FD’s, Bonds and mutual Fund-features
Characteristics FD’s Bonds Mutual Funds
Accessibility Low Low High
Tenor Fixed(Medium) Fixed(Long) No Lock-in
Min. Investment Rs.1000 Rs.5000 Rs.5000
Tax Benefits None 80l,88 Dividend Tax-
Free
Liquidity Low Very Low Very High
Convenience Medium Tedious Very High
Transparency None None Very High

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Organization of Mutual Fund :
India has a legal framework within which to set up the Mutual Fund. Open and close-end
funds operate in India within the same regulatory structure, i.e. as Trusts unit. A Mutual Fund
in India is permitted under a common legal structure to issue open-end and close-end
schemes. The framework to be adopted by any Mutual Fund in India is set out in the
Regulations of SEBI (Mutual Fund), 1996.

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Organization:-
The Fund Sponsor:-Sponsor is described as any individual forming a Mutual Fund under
SEBI regulations, acting alone or in combination with another corporate body. The fund's
investor is close to a company's promoter as he has the fund registered with SEBI. The
sponsor is building a trust and appointing a trustee board. The owner frequently appoints a
fund manager to the Asset Management Business. The sponsor will also appoint a custodian
to hold funds assets either directly or through the trustees. All this is done in accordance with
SEBI's rules and guidelines.

Under the SEBI regulations, the individual must contribute at least 40 percent of the Asset
Management Company's net worth to qualify as a sponsor and possess a sound financial track
record over 5 years prior to registration.

Mutual Funds as Trusts: -A Mutual Fund was formed in India as a Public Trust Act, 1882.
The manager of the Fund serves as the Trust's settler, contributing to its initial capital and
naming a trustee to retain the trust's property for the benefit of the trust's beneficiaries. The
fund then invites shareholders to contribute their money to the common pool by scribing to
"units" provided as proof of their beneficial interest in the fund by various schemes
developed by the Trusts.

It should be understood that only a "pass through" vehicle should be the fund. Under the
Indian Trusts Act, the trust of the fund itself does not have an independent legal capacity,
rather it is the trustee or the trustees who have the legal capacity and therefore the trusts take
all acts in relation to the trusts on their behalf. In legal terms, investors or unit holders are the
beneficial owners of the investment held by the Trusts, even though these investments are
held on a daily basis in the name of the Trustees. Being public trusts, Mutual Fund can invite
a number of investors in their investment schemes being beneficial shareholders.

Trustees:-A trust is established through a document called the trust act enforced in favor of
the trustees by the fund sponsor. The Trust— the Mutual Fund— can be managed by a trustee
board— a governing body of individuals, or a trust corporation. Most of India's funds are
managed by trustee boards. While trustee boards are governed by the Indian Trusts Act,
where trusts are a corporate body, compliance with the 1956 Companies Act would also be
required. As an independent body, the board or the trust company serves as a guardian of the
interests of the unit owners. The Trustees do not oversee the equity portfolio directly.

The appointment of an asset management company for this specialist function. They ensure
the Fund is managed by AMC in accordance with the defined goals and the trust deeds and
SEBI regulations.

Asset Management Companies: An Asset Management Company (AMC)'s function is to

serve as the Trust's investment manager under the oversight of the board and the trustees '

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guidance. The AMC must be licensed and registered as an AMC with SEBI. A Mutual Fund's
AMC must always have a net value of at least Rs.10 Crores. AMC directors, both
independent and non-independent, should have sufficient professional expertise in financial
services and should be high-morality individuals, a condition that also applies to other key
AMC staff.

The AMC is unable to act as any other Mutual Fund Trustee. In addition to its role as fund
manager, it may perform specific activities such as advisory services and financial
consultancy, given that these activities are carried out independently of each other and the
assets of the AMC (such as personnel, facilities, etc.) are properly separated by the operation.
The AMC must always act with regard to its activities in the interest of the unit holders and
report to the trustees.

Custodian and Depository: Mutual Fund is primarily involved in the purchase and sale of
securities. It is a specialized activity to handle these securities in terms of physical delivery
and eventual safekeeping. The custodian shall be named on behalf of the Mutual Fund by the
Board of Trustees to safeguard securities or to engage in any clearance scheme through
authorized depository companies and shall discharge its duties in accordance with its
agreement with the Mutual Fund.

The dematerialized shares are maintained with the Depository participant with the
introduction of the concept of dematerialization of shares while the custodian holds the
physical securities. Thus, a custodian or a depository participant gives or receives deliveries
of a fund's securities at the instructions of the AMC, though under the Trustees ' overall
direction and responsibilities.

Bankers: The operations of a Fund include dealing with cash on an ongoing basis mainly
with regard to the purchase and sale of shares, paying for the investment made, collecting the
proceeds from the sale of the investments and meeting its operating expense obligations. The
banker of the Fund therefore plays an important role in deciding the quality of service
rendered by the fund in the timely delivery of remittances, etc.

Transfer agents: Transfer agents are responsible for issuing and redeeming Mutual Fund
units and offering other related services such as preparing transfer documents and updating
records of shareholders. A fund may choose to perform its in-house operation and pay the
service scheme at a competitive market rate. Where an external transfer agent is used, the
fund investor will findthe agent an important interface to work with, as all the investor
services provided by a fund will depend on the transfer agent.

The graph indicates the growth of assets under management over the years.

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GROWTH IN ASSETS UNDER MANAGEMENT

Mutual Funds in India

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The mutual fund industry in India started in 1963 with the establishment of India's Unit Trust
(UTI) as an initiative of India's government and India's Reserve Bank. In 1987, much later,
SBI Mutual Fund became India's first non-UTI mutual fund.

A new era of mutual funds in India was declared in 1963. He was characterized by the
industry's entry of private firms. The SEBI Mutual Fund Regulations were implemented in
1996 after the Securities and Exchange Board of India (SEBI) Act was passed in 1992. Since
then, through joint ventures and acquisitions, the Mutual Fund companies have continued to
grow exponentially with international investors setting up shop in India.

A non-profit organization, the Association of Mutual Funds in India (AMFI), was established
on 1995 as the industry grew. Its goal is to promote sound and ethical marketing practices in
the Indian mutual fund industry. For all those engaged in the sale or marketing of mutual
fund goods, SEBI made AMFI certification compulsory.

Major Mutual Fund Companies In India

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Public Sector Mutual Funds
 Bank of Baroda Mutual Fund
 State bank of India Mutual Fund
 LIC Mutual Fund
 UTI Mutual Fund
 Canara Bank Mutual Fund

Private Sector Mutual Fund

 ABN AMRO Mutual fund
 Birla Sun Life Mutual fund
 HDFC Mutual Fund
 HSBC Mutual Fund
 ICICI Prudential Mutual Fund
 Tata Mutual Fund
 Standard Chartered Mutual Fund
 Morgan Stanley Mutual Fund
 Alliance Capital Mutual Fund
 Franklin Templeton Mutual Fund
 Reliance Mutual Fund
 DSP Blackrock Mutual Fund

These above are the various Mutual Funds in India which has given a good return.

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 Regulatory Body of Mutual Funds in India

SEBI (Securities & Exchange Board of India) formulates policies and regulates mutual funds
in order to protect the investor's interest.

In January 1993, while granting permission, SEBI prescribed the registration of the integrity
of mutual funds in business transactions and financial soundness. By registering only the
sound promoters with proven track record & financial strength, this would curb excessive
growth of mutual funds and protect the interest of investors.

SEBI should review the bid documents of the schemes launched by mutual funds and the
details of the scheme. A standard format is being formulated for the prospectus of mutual
funds.

To adhere to an advertising code, mutual funds were required.

SEBI has introduced an amendment to the Mutual Funds Securities Control and Regulations
Act. The mutual funds that have been on the market for at least five years will guarantee a
maximum return of only 12% for one year.

A minimum start-up of Rs.50 crore for an open-ended scheme and Rs.20 crore for a closed-
ended scheme is recommended in the existing SEBI guidelines on mutual funds, against
which investment money has to be refunded. AMFI (Association of Mutual Funds in India)
demanded that the minimum requirement be removed by India's regulatory authority.

In addition, 50% of AMC's directors must be independent. Before implementing any scheme,
all mutual funds must be registered with SEBI.

The straightforward and well-understood declaration of mutual fund schemes or Net Asset
Values (NAVs) is an important issue in providing information to investors about the fund's
results. SEBI has previously warned some mutual funds that unhealthy market trustees should
disclose any unusual developments in the mutual fund to the board immediately.

Net Asset Value (NAV)

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A Mutual Fund's Net Asset Value (NAV) is the price at which a mutual fund's units are
purchased and sold. It is the fund's market value after its liabilities have been deducted. The
value of all units of the portfolio of mutual funds is measured on a daily basis, subtracting
from this all expenses. The result is then divided by the total number of units resulting in
NAV being sometimes referred to as Net Book Value or Book Value. NAV indicates the
units ' market value in a fund. So, it lets an investor keep track of the mutual fund's results.

By determining the percentage increase in the NAV mutual fund, an investor can calculate
the actual increase in the value of their investment. Therefore, NAV provides accurate
information about the mutual fund's performance.

Calculation of NAV
Generally, mutual fund assets fall into two categories of security & cash. Features all bonds
and stock in securities. Therefore, a fund's net asset value will include its market-value
stocks, cash and bonds. Also included in total assets are dividends and interest accrued and
liquid assets.

The formula for calculating NAV:

NAV of a mutual funds = (Assets of the fund – Liabilities of the fund)

Number of outstanding units of the fund

The mutual fund and/or other accounting firms themselves determine a mutual fund's NAV.
Since mutual funds are based on stock markets, they are usually announced after the
exchange closing hours.

All Mutual Funds are required to publish their NAV in accordance with SEBI guidelines on
every business day.

NAV is acquired after a fund's expense ratio has been subtracted. This expense ratio is the
total of all expenses incurred annually by the mutual fund, including operating and
management fees, distribution and marketing fees, transfer officer fees, custodian fees and
audit fees.

Example of calculation of NAV

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As an example, assume there are two investors X and Y who have invested in a mutual fund
which decided to issue out units at Rs.1/-

X invests Rs.100/- and Y invests Rs.200/-.

The total corpus of the mutual fund will be Rs.100 + Rs.200 = Rs.300/- and X will get 100
units and Y will get 200 units.

Now suppose the mutual fund manager invests smartly over a year and makes the investment
grow and the corpus becomes Rs.800/-.

The NAV will be calculated as

NAV of a mutual funds = (Assets of the fund – Liabilities of the fund)

Number of outstanding units of the fund

= [Rs.800/- 0] / 300 = 2.67

= The NAV is 2.67.

= So X’s value of investments will be 100 units * 2.67 = Rs.267/- and

= Y’s value of investments will be 200 units * 2.67 = Rs.534/-.

As per the regulator SEBI’s guidelines, all mutual funds are required to publish the NAV of
their schemes at least once a week and in two leading newspapers.

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 Advantages of Mutual Funds.
 Portfolio Diversification:-It can be very difficult to invest in a diversified portfolio.
The nice thing about mutual funds allows a diversified portfolio to be owned by
anyone. The reason investors invest in a diversified portfolio is because the expected
returns are increased while minimizing the risk.
 Liquidity:-Another good advantage for mutual funds is the liquidity of the assets. In
the financial language, liquidity simply refers to relatively easily turning the resources
into cash. Mutual funds are called liquid assets, as many of the funds on the market
are in high demand.
 Professional Management:-Because they are managed by professional managers,
mutual funds do not require much time or knowledge from the investor. They can be a
great help to inexperienced investors who seek to maximize their financial objectives.
 Company comfort:-Group financing is also useful because it is easy to compare.
This is because most mutual fund dealers make it possible for the investor to compare
funds on metrics such as risk level, return value. Due to the fact that data is easily
available, the investor can make wise decisions.
 Less risk:-Even with a small investment in a mutual fund, investors acquire a
diversified portfolio of securities. The risk of investing in 2 or 3 securities is lower in
a diversified portfolio.
 Low transaction costs:-Mutual funds charge fewer transaction costs due to
economies of scale. Investors should receive the benefits.
 Transparency:-Funds provide current business & schemes data to stakeholders. As
required by the regulator, all relevant details are reported to the investor.
 Mutual funds industry is part of a well-regulated investment environment in which
investors ' interests are protected by regulators. All funds are registered with SEBI,
followed by full transparency.

Page | 29
 Disadvantages of Mutual Funds
 The downside of mutual funds is that they are associated with high costs in
comparison to the returns they produce. This is because investors are paid not only for
the fund's value, but are often faced with additional fees. Based on the account, there
may be substantial fee charges. You will have to pay the fee which goes to the
director of the account.
 Index Does Better:-The stock index can surpass the mutual fund in some cases. This
is not always the case, though, as it largely depends on the mutual fund in which the
investor has invested, as well as the fund manager's skill set. Therefore, before
investing in the fund, it is a good idea to do your homework. It's historical data
reveals that an index is regularly underperformed, so it's not a wise investment.
 Fees:-Depending on the type of mutual fund purchased, the fees charged will depend.
If a fund is more volatile and violent, there is a propensity to increase the management
fee. However, the shareholder will also be required to pay taxes, transaction fees and
other costs related to the fund's operation.
 No investment control:-You have no influence whatsoever over what Fund Manager
Des has with you. You can't advise him how to invest your money. You're just sitting
back and waiting for the best.
 High return profitability significantly reduced:-A mutual fund comprises a
diversified investment basket. If a single security outperforms, the effect will be
reduced by a significant margin. Don't expect to grow your investment and give you
overnight profit. The fund's limits will also be sliding downward.
 Personal tax status is not considered:-If you invest in a Mutual Fund, your money is
pooled with others and your personal tax situation is not taken into account when
making investment decisions. Choosing between the growth fund is the most you can
do.

Page | 30
 HDFC Mutual Fund
HDFC Mutual Fund was established as a trust pursuant to the provisions of the Indian Trusts
Act, 1882, in accordance with the terms of the trust agreement of 8 June 2000 with Housing
Development Finance Corporation Limited (HDFC) and Standard Life Investments Limited as
Sponsors / Settlers and HDFC Trustee Company Limited as Trustee. The Trust Deed was
registered in accordance with the 1908 Indian Registration Act. The Mutual Fund was registered
with SEBI on June 30, 2000 under the code of registration MF/044/00/6.

HDFC Asset Management Company Limited (AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated on December 10, 1999
under the Companies Act, 1956, and was authorised by SEBI to act as an HDFC Mutual Fund
Asset Management Company to vide its letter dated July 3, 2000.

The trustee has appointed HDFC Asset Management Company Limited to administer the
mutual funds in terms of the investment management agreement. In accordance with the terms of
the Investment Management Agreement, the AMC must perform the Mutual Fund operations
and control the schemes ' assets, including schemes that have been initiated from time to time.

Funds Managed by HDFC Mutual Fund.

 Equity Fund
 Balanced Funds
 Income Fund

Achievement of HDFC
 HDFC Asset Management company (AMC) is the first AMC in India to have been
assigned the CRISIL Fund House -1 rating.
 This is the highest fund governance and process quality rating which reflect the highest
governance levels and fund management practices at HDFC AMC.
 It is only fund house to have been assigned this rating for 2 years in succession.

Page | 31
 HDFC Mutual Fund Products

a). HDFC EQUITY FUNDS

HDFC Mutual funds are founded as a trust and its sponsor is Standard Life Investments Ltd. This
started with a mutual fund in 2000 and has undergone exponential growth with 13 forms of
mutual funds over the past 2 decades. The services they currently offer are listed below.

Sr. Name of the Fund Investment Objective Risks Returns

No. in 5 yrs.
1 HDFC Housing To deliver building wealth for long-term. They High NA (As
Opportunities Fund
manage this by putting money in mostly equity it was
Series and equity-oriented funds in housing and launched
related sectors. As a thematic equity fund, it is in 2017)
close-ended. You can opt for a direct or
regular plan.
2 HDFC Equity Fund This is an open-ended scheme and comes with Moderately 16.30%
a dividend (pay out or reinvestment) as well as High
growth option. However, an exit load of 1%
applies. You  can only buy this directly from
the AMC, and not through any intermediary.
Minimum initial investment amount is Rs.
1000 for old investors and Rs. 5000 for
newbies.
3 HDFC Top 100 An open-ended scheme with a robust Moderately 14.60%
Fund reputation for over 15 years, HDFC Top 100 High
Fund is a low-risk fund compared to funds
with less diversification. You can opt for
dividend or growth option. Their aim is to
deliver long term capital appreciation from
portfolio with high equity concentration (often
from companies in BSE 200 index).
4 HDFC Mid cap As the name suggests, this fund focuses Moderately 25.73%
Opportunities mainly on equity and equity oriented shares High
from mid-cap companies. It is an open-ended
scheme and the initial investment requirement
is only Rs.1000 for old customers and Rs.
5000 for new clients.
5 HDFC Tax Saver Long-term wealth creation is the core Moderately 16.84
Fund objective here, and there is a 3-year mandatory High
lock-in period. It is basically an ELSS fund.
However, the name doesn’t hold true anymore
as the Union Budget 2018

Page | 32
b) HDFC DEBT/INCOME FUNDS

Sr. Name Of Investment Objective Risks Returns(i

No the Fund n 5 yrs)
.
1 HDFC Gilt This scheme mainly aims to make credit risk-free Moderate 6.81%
Fund returns by investing in sovereign securities or
bonds issued by the central or state government.
An open ended scheme launched in 2001, it offers
you both dividend and growth option. There is no
entry load or exit load for this fund.
2 HDFC This fund serves to make income from capital Moderately 7.98%
Corporate appreciation. They do it by investing primarily in Low
Bond Fund corporate bonds with ratings above AA+. It is a
good means to earn a steady income in medium to
larger investment period. You cannot invest in
these debt funds and money market instruments
for more than 60 months.
3 HDFC Here, the ‘short-term’ part indicates less than 36 Moderately 8.13%
Short Debt months. Investors with low risk appetite can Low
Fund consider this fund to park their money safe over
short to medium term, while earning a fixed
interest income.
4 HDFC This scheme’s emphasis is on corporate debt. Moderate 7.95%(3yr
Credit Risk This is an open ended debt fund that mainly s returns
Debt Fund invests in corporate bonds that are rated AA and as it was
below. So, they don’t include any AA+ rated launched
corporate bond funds. It is a way to earn fixed in 2014)
income over a small period to long term.
5 HDFC An open-ended scheme launched in 1997, the Moderate 6.95%
Dynamic fund aims to earn you regular returns. They invest
Debt Fund in a slew of debt and money market instruments
with different maturity periods to achieve this
goal. This strategy helps them to maximize
returns while keeping a balance between yield,
liquidity Hence, the risk factor is only moderate.

Page | 33
c. HDFC LIQUID FUNDS
Sr.No Name of Investment Objective Risks Return
. the Fund s
1. HDFC The investment goal of this liquid fund scheme is to Low 7.92%
Money make maximum returns without compromising on
Market capital protection and high liquidity. As an open-
Fund ended scheme that offers high liquidity, it offers
both growth and daily dividend option. It was
launched in 1999 and can only be bought directly
from the AMC.
2. HDFC As an open-ended and high liquidity income fund, Low 7.04%
Overnight it is a low-risk investment. The primary goal of this
Fund scheme is to deliver the highest possible returns
with minimal risk exposure. It is often treated as an
emergency fund due to its higher liquidity factor
3. HDFC The predominant objective of this particular liquid Low 8.08%
Liquid Fund fund is to augment income consistently while
Premium maintaining a good level of liquidity. They achieve
Plan this by investing in a relevant mix of debt securities
and money market instruments. It is best suited for
those looking for income for short-term or safe
avenues to park their money in for a short duration.
4. HDFC An open-ended scheme that endows the investor Low 8%
Liquid Fund with an additional income. It is an ideal short-term
investment with no exit load. By putting money in
both debts and money market instruments, it
assures higher liquidity and capital protection.

Page | 34
LITERATURE REVIEW
1)Name of the Book: - Mutual Funds in India

Author: - D. V. Ingle

ISBN no – 9788177083323

Publishing year: - 2013

Abstract-This book provides a detailed account of how the mutual fund industry operates in
India. The author D.V. Ingle has described everything about Indian Mutual Funds and why it is
useful for small investors who are unable to invest directly in the stock market. And also when
they created the Mutual Funds. This book describes India's Mutual Funds journey.

2) Name of the Research Paper:-Comparative study of mutual funds of select Indian companies

Author: - Mr. Sunil M. Adhav / Dr Pratap M Chauhan

ISSN NO: - 2394-1537

Publishing year: - 2015

Abstract:-Over the past decade, India's mutual fund market has seen exponential growth.
Consistency in mutual fund performance was a major factor that attracted a lot of investors. The
current research is an attempt to study the comparative performance of selected Indian
companies ' mutual funds. The study focuses on selected Indian companies ' mutual fund
schemes that include equity, debt, and hybrid schemes. The study will select a total of 390
schemes consisting of 178 mutual equity funds, 138 debt schemes and 74 hybrid schemes. The
output of the mutual fund of selected Indian firms is evaluated using Return, Risk.

Page | 35
3) Name of the Research Paper:-A Study of Mutual Funds in India

Author: - MS Shalini Goyal / MS Dauli Bansal

ISSN NO: - 2229 – 5518

Publishing year: - 2013

Abstract:-This paper helps us understand India's analysis of mutual funds. This paper also says
where and how to invest in mutual fund 7 why it is risky to invest directly in the stock market as
you may face losses. Investing in mutual funds will help you diversify your risk. This study was
carried out to evaluate and compare various types of mutual funds in India.

4) Name of the Research Paper:- Investor’s preferences towards Mutual Fund and Future
Investments:

Author: - Y Prabhavathi, N T Krishna Kishore

ISSN NO: - 2250-3153

Publishing year: - 2013

Abstract:-Mutual Funds ' emergence has changed the way the world has spent its capital.
Compared to other traditional sources of investment, the start of Mutual Funds gave the common
man an opportunity to hope for high returns from their investment. The study's main focus is to
understand the mutual fund investors ' mindset, knowledge and preferences. Most respondents
prefer systematic investment plans and mainly from banks and financial advisors have their
source of information. Investors preferred mutual funds primarily through Net Asset Values and
past performance for professional fund management and better returns and evaluated funds.

Page | 36
5) Name of the Research Paper: - A Study on Indian Mutual Funds Equity Diversified growth
Schemes and their performance evaluation.

Author: - Dr. D.S.Chaubey

ISSN NO: - 2249-1619

Publishing year: - 2011

Abstract:-Industry of the Indian Mutual Fund witnessed tremendous growth due to infrastructure
and also backed by high funding savings. Following the liberalization and globalization of the
Indian economy, the market is witnessing a huge crowd towards the option of investing in
mutual funds but investing in a particular fund requires a lot of specification like-objectives of
investors, cost, availability of funds, risk & return factors etc. and thus invites fundamental study
for a better future and growth. This paper aims to know how the performance of mutual funds is
evaluated and ranked in order to measure investment avenues after analyzing the NAV and their
respective returns.

6) Name of the Research paper: - Investor awareness and Perception about mutual Funds.

Author: - Simran Saini / DR Bimal Anjum

ISSN NO: –2231 5780 Publishing Year:–2011

Abstract:–In recent years, the Indian Mutual Fund has become more popular. The present study
analyzes the investment of the mutual fund in relation to the actions of the investor. The views
and perceptions of investors have been studied on various issues such as the type of mutual fund
scheme, the key purpose behind investing in the mutual fund scheme, the role of financial
advisors and brokers, the views of investors on factors that attract them to invest in mutual funds,
information sources, deficiencies in the services provided by mutual fund managers.

Page | 37
Objective of the Study of Mutual Funds
The study's objective is to examine the growth pattern of the Indian mutual fund industry
in depth and to evaluate the quality of various schemes floated by the most preferred mutual
funds in the public and private sector.

The Main Objectives of this project.

 To Study about the Mutual Funds in India

 To Study about returns of the Mutual Funds
 To give brief Idea about mutual funds available in India
 To give an idea about the schemes available
 To study market trends in mutual funds. To study some mutual fund companies and their
funds
 To give idea about the regulation of mutual fund
 To study about mutual fund schemes

Today, most people buy mutual funds. Yes, the industry of mutual funds is very
growing. This requires most financial assets from investors, whether for purposes of retirement
or taxable savings. For the majority of households in India, mutual funds are an investment
vehicle.

My overall research on this project is to learn which companies are providing better returns from
HDFC Mutual Funds & SBI Mutual Funds and also to measure their returns from the last 5
years. When estimating the returns, we must carefully examine all the possibility. I'm doing my
"Small & Midcap Business" venture. We need to make a comparison, and making a decision is
very useful for investors

Page | 38
 RESEARCH METHODOLOGY
1) Research Design:-

A) Problem Definition:-Several mutual funds operate on the Indian market in a competitive

market. It is necessary to know the mutual fund as Mutual Fund Company's performance
determines the future. In my study, I compared five-year returns from the two mutual funds that
are mutual funds from HDFC & SBI.

B) Research Types:-The qualitative and quantitative essence of this research. Qualitative

research talks about the quality of the research work & analytical research is about determining
the validity of the hypothesis based on the analysis of the collected facts.

C) Data Collection Design:-1) Data Primary Data Sources:-I used the questionnaire as the
primary source of my research data collection.

Secondary data:-I obtained secondary data from different books of mutual funds from different
websites of mutual funds.

2) Sampling:-The entire population is represented. It is a process of selecting samples from

populations as a whole. I've chosen some people to invest in Mutual Funds.

3) Sampling Size:-It indicates how many candidates you have picked to complete the
questionnaire. I selected a sample of 50 candidates.

4) Sampling technique:-Questionnaire sampling is sent to applicants wishing to invest in mutual

funds. You can understand people's taste & interests by Questionnaire, so it's easy to persuade.

5) Data Interpretation:-Data Interpretation is the one in which we interpret the entire data
collected and try to convey it in plain, understandable terms.

Page | 39
 DATA ANALYSIS & INTERPRETATION

1) Age distribution of the Investors of Pune

Age Group No. Of

Investors

<=30 8

31-35 12

36-40 21

>40 9

No. Of Investors
25

20

15 No. Of Investors

10

0
<=30 31-35 36-40 >40

Interpretation: According to this chart out of 50 Mutual Fund investors of Pune the most are in the
age group of 36-40 yrs. i.e.42 %, the second most investors are in the age group of 31-35yrs i.e. 24% and
the least investors are in the age group of below 30 yrs.

2) Educational Qualification of investors of Pune

Page | 40
 Educational Qualification Number of Investors

Graduate/ Post Graduate 23

Under Graduate 17

Others 10

Number of Investors
25
20
15
10
5 Number of Investors
0
te te rs
dua d ua the
ra a O
tG r Gr
s de
Po
e/ Un
uat
ad
Gr

Interpretation: Out of 50 Mutual Fund investors 46% of the investors in Pune

are Graduate/Post Graduate, 34% are Under Graduate and 20 % are others

(under HSC).

3) Occupation of the investors of Pune

Page | 41
 Occupation No. of Investors
Govt. Service 13
Pvt. Service 17
.
Business 16
Others 4

No. of Investors
18
16
14
12
10 No. of Investors

8
6
4
2
0
Govt. Service Pvt. Service Business Others

Interpretation:

In Occupation group out of 50 investors, 34% are Pvt. Employees, 32% are

Businessman, 26% are Govt. Employees, and 8% are in others.

4) Monthly Family Income of the Investors of Pune

Page | 42
 Income Group No. of Investors
<=10,000 5
10,001-15,000 12
15,001-20,000 11
20,001-30,000 17
>30,000 5

No. of Investors
18
16
14
12
10
8
No. of Investors
6
4
2
0
0 0 0 0 0
00 ,0
0
,0
0
,0
0 00
1 0, 15 20 30 3 0,
<= 1- 1- 1- >
00 00 00
1 0, 1 5, 2 0,

Interpretation:

In the Income Group of the investors of Pune, out of 50 investors, 34%

investors that is the maximum investors are in the monthly income group

Rs.20,001 to Rs.30,000, Second one i.e. 24% investors are in the monthly

income group of more than Rs.10,000 to Rs.20000 and the minimum

investors i.e. 10% are in the monthly income group of below Rs.10,000

5) Investors invested in different kind of investments.

Kind of Investments No. of Respondents

Saving A/C 16
Fixed deposits 9

Page | 43
 Insurance 11
Mutual Fund 10
Gold/Silver 4

No. of Respondents
18
16
14
12
10
8 No. of Respondents
6
4
2
0
/C its ce
un
d er
gA pos r an la F Silv
in su /
v de In u ld
Sa ed ut Go
Fix M

Interpretation: From the above graph it can be inferred that out of 50 people,

32% people have invested in Saving A/c, 22% in Insurance, 18% in Fixed

Deposits, 20% in Mutual Fund, 8% in Gold/Silver.

6) Preference of factors while investing

Factors No. of

Respondents
Liquidity 9
Low Risk 15

Page | 44
 High Return 18
Trust 8

No. of Respondents
20
18
16
14
12 No. of Respondents
10
8
6
4
2
0
Liquidity Low Risk High Return Trust

Interpretation: Out of 50 People, 36% People prefer to invest where there is

High Return, 30% prefer to invest where there is Low Risk, 18% prefer easy

Liquidity and 16% prefer Trust.

7) Awareness about Mutual Fund and its Operations

Response No. of Respondents

Yes 28
No 22

Page | 45
 No. of Respondents
30

25

20
No. of Respondents
15

10

0
Yes No

Interpretation: From the above chart it is inferred that 56% People are aware

of Mutual Fund and its operations and 44% are not aware of Mutual Fund and its

operations.

Page | 46
8) Source of information for customers about Mutual Fund

Source of information No. of Respondents

Advertisement 15
Peer Group 4
Bank 12
Financial Advisors 19

No. of Respondents
20
18
16
14
12 No. of Respondents
10
8
6
4
2
0
Advertisement Peer Group Bank Financial Advisors

Interpretation: From the above chart it can be inferred that the Financial

Advisor is the most important source of information about Mutual Fund. Out of

50 Respondents, 30% know about Mutual fund Through Financial Advisor, 24%

through Bank, 8% through Peer Group and 18% through Advertisement.

9) Investors invested in Mutual Fund

Page | 47
 Response No. of Respondents
YES 30
NO 20

No. of Respondents
35

30

25

20 No. of Respondents

15

10

0
YES NO

Interpretation: Out of 50 People, 60% have invested in Mutual Fund and 40% do not

have invested in Mutual Fund.

10) Reason for not invested in Mutual Fund

Page | 48
 Reason No. of Respondents

Not Aware 27
Higher Risk 5
Not any Specific Reason 18

No. of Respondents
30
25
20
15
10
5 No. of Respondents
0
re sk on
wa r Ri as
A e e
t gh cR
No Hi ifi
pec
yS
t an
No

Interpretation: Out of 50 people, who have not invested in Mutual Fund, 54%

are not aware of Mutual Fund, 10% said there is likely to be higher risk and 36%

do not have any specific reason.

11) Investors invested in different Assets Management Co. (AMC)

Name of AMC No. of Investors

SBI 11

Page | 49
 UTI 19
HDFC 14
Others 6

No. of Investors
20
18
16
14
12 No. of Investors
10
8
6
4
2
0
SBI UTI HDFC Others

Interpretation: In Pune most of the Investors preferred UTI. Out of 50

Investors 38% have invested in UTI, only 22% have invested in SBI, and 28% in

HDFC.

Page | 50
12) Reason for invested in HDFCMF

Reason No. of Respondents

Associated with HDFC 25
Better Return 7
Agents Advice 18

No. of Respondents
30
25
20
15
10
No. of Respondents
5
0
FC rn e
HD etu dvic
th R A
wi er ts
tt en
ed Be A g
ciat
so
As

Interpretation: Out of 50 investors of HDFC 50% have invested , 36% invested on Agent’s
Advice, 14% invested because of better return.

Page | 51
13) Reason for not invested in HDFCMF

Reason No. of Respondents

Not Aware 23
Less Return 8
Agent’s Advice 19

No. of Respondents
25

20

15 No. of Respondents

10

0
Not Aware Less Return Agent’s Advice

Interpretation: Out of 50 people who have not invested in HDFCMF, 46% were not

aware with HDFCMF, 16 % do not have invested due to less return and 38 % due to

Agent’s Advice.

Page | 52
14) Mode of Investment Preferred by the Investors

Mode of Investment One time Investment

One Time Investment 28

Systematic Investment 22

Plan(SIP)

One time Investment

30
25
20
15
10
5
0 One time Investment
t )
en (SIP
m
es
t lan
nv tP
eI en
Tim tm
e v es
On c In
ati
m
ste
Sy

Interpretation: Out of 50 Investors 56 % preferred One time Investment and 44 %

Preferred through Systematic Investment Plan.

15) Preferred Portfolios by the Investors

Page | 53
 Portfolio No. of Investors
Equity 20
Debt 13
Balanced 17

No. of Investors
25

20

15 No. of Investors

10

0
Equity Debt Balanced

Interpretation: From the above graph 44% preferred Equity Portfolio, 34% preferred

Balance and 26 % preferred Debt portfolio.

FINDINGS
Through this Project the results that was derived are

Page | 54
  People who lie under the age group of 36-40 have more experience and are more
interested in investing in Mutual Funds.
 There was a lot of lack of awareness or ignorance, that’s why out of 50 people, 28people
have invested in Mutual Fund and 22 people is unaware of investing in Mutual Funds.
 Generally, People employed in Private sectors and Businessman are more likely to invest
in Mutual Funds, than other people working in other professions.
 Generally investors whose monthly income is above Rs. 20001-30000 are more likely to
invest their income in Mutual Fund
 Many people came to know about Mutual Fund from Financial Advisors, Advertisement
as well as from their Peer group , and they generally invest in the Mutual Fund by taking
advices from their Legal Advisors.
 The most popular medium of investing in Mutual Fund is through One Time
Investment.
 The main Objective of most of the Investors is to preserve their Income.

SUGGESTION
Suggestion to the Mutual Fund Investors

Page | 55
 Comprehension of the investment purpose: the first thing to consider before investing in a
fund is to decide whether the goal is in line with the scheme. If there is a system fault,
shareholders will be affected by the expected returns. For example, schemes that invest in
large cap stocks are not suitable for conservative investors. He will then try to invest in
small and medium-sized funds. To determine his investment, he should also pick up
schemes. Pension plans types, sector-specific programs and budget for children. These
are the methods he can use to invest in the future
 Low-risk tolerance:-Low-risk investors are required to invest in small and mid-cap
schemes as they are relatively safer than debt schemes.
 Aggressive investors may opt for equity investments and may opt for schemes investing
in a particular sector or industry:-. Investors are expected to carefully record programs
against relevant market metrics and their competitors.
 Investment period:-In order to obtain good returns on their investments, investors
should retain their returns for longer periods of 3 years to 5 years in order to generate
good returns on their investments.
 While the AMC is limited, the fund's expense ratio should be considered prior to
investment. That's because cash is subtracted from the returns. The returns will consume
a lower load of entry or exit. You have to look at the value considerations when spending.
 Investors shall sell and redeem or repurchase the proceeds within 10 days after the
proceeds have been redeemed or repurchased. The majority of funds charge exit fees
when the exit period is less than 6 months.
 Diversification:-The greater the amount invested by the investors, the greater the
potential of different asset classes and investment types to provide diversification. Asset
allocation is the weighting of each asset class. In terms of fluctuation, every asset class
has its own characteristic.
 Continuous monitoring:-Investors should continually track and update their investments
by evaluating their market position in order to maximize their returns.
 Other factors that need to be considered when investing-Investors need to check for
top-performing resources and focus on current funding output. A common mistake
nowadays is that investors buy the latest schemes as they deliver good returns that don't
have a pervasive history. You will look at the NAV when you buy the securities so that
better NAV will give you good returns.
 Starting small for Small Time Investors:-First investment is recommended for the first
time by mutual fund investors. Investors should invest in small and midcap companies
and wait for returns, and once they are happy they should go to fund diversification.
 Investing in tax savers that offer good returns compared to too many other approaches is
advantageous as stocks grow.

Conclusion

Page | 56
 Maybe the best opportunity for most investors now is the mutual fund industry. The most
complex and sophisticated stock market. Investors need to have the information they
need to invest in the mutual funds industry. Even, when the markets are up, the mutual
fund industry offers good returns and you can also suffer losses when the market is not
doing well or when investing fund manager makes any mistakes during investment in
mutual funds.
 Mutual fund returns are calculated on the basis of stock market performance. The fund
you've invested in will also do well if the stock market is doing well. The loss is small
due to the diversification of stocks.
 In my research above, I compared HDFC mutual fund with other funds. I had compared
5 years of returns in which the Mutual Funds provided good returns after a specified
period.
 The HDFC mutual fund has produced good returns of 20% since its inception,
 Yet investors also prefer to invest their money in long-term Private Mutual Funds
because they feel good returns.
 HDFC Mutual Fund yielded a good return of 42 per cent, taking into account both the
three-year ratio of the Mutual Funds.
 "It is therefore best for investors to invest in the HDFC mutual fund, according to my
advice, because it has produced good returns."

Page | 57
 BIBLOGRAPHY

Website

 www.hdfcmf.com
 www.amfiindia.com
 www.mutualfundsindia.com
 www.research gate.com

Books

 Mutual Funds in India (D.V. Ingle)



Page | 58
 ANNEXURE

QUESTIONAIRE
A Study of preferences of the investors for Investment in mutual funds

1) Age distribution of the investors

a) <=30

b) 31-35

c) 36-40

d) 41-45

e)46-50

f)>50

2) Educational Qualification of the investors

a) Graduation/PG

b)Under Graduate

c)Others

3) Occupation of the investors

a)Govt. Servant

b)Private Sector

c)Business

d)Others

Page | 59
4) What is your Monthly family Income Approximately?

a) <=10000

b)Rs.10001 to 15000

c)Rs15001 to 20000

d) Rs20001to 30000

e) >30000

5) What Kind of Investment you prefer most?

a) Fixed deposit

b) Insurance

c) Mutual Fund

d) Gold/Silver

6) While Investing which factor you prefer most?

a)Liquidity

b) Low Risk

c)High Return

d)Trust

7) Awareness about Mutual Fund and its Operations

a) Yes

b) No

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8) Source Of information for customers about Mutual Fund

a) Advertisement

b) Peer Group

c) banks

d) Financial Advisors

9)Investors invested in Mutual Fund

a)Yes

b) No

10) Reason for not invested in Mutual Fund

a)Not Aware

b)Higher Risk

c) Not any Specific Reason

11) Investors invested in different Assets Management co.

a)SBIMF

b)UTI

c)HDFC

d)Others

12)Reason for invested in HDFCMF

a)Associated with HDFC

b)Better Return

c)Agents Advice

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13) Reason for not invested in HDFCMF

a)Not Aware

b)Less Return

c)Agents Advice

14)Mode of Investors Preferred by the Investors

a)One time Investment

b)Systematic Investment

15)Preferred Portfolios by the Investors

a)Equity

b)Debt

c)Balanced

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