A

Project Report on

“A study on determinants that affects the millennial investing

in Mutual fund in context to Ahmedabad city”

Submitted By:- Devang Kanabar ( 202000620010549) Submitted To:- Faculty of Management

Neel Virpariya (202000620010718) Under the guidance of,
Prof. Maulik Shah(Internal Guide)
Manishkumar Joshi (External Guide)
What is Mutual Fund?

A mutual fund is a professionally managed

investment scheme, usually run by an asset
management company that brings together a
group of people and invest their money in
stock, bond and other security.

What are Millennials?

Millennial is the name given to the generation born

between 1981 and 2001, dates now clarified by the
Pew Research Center, although some have seen
them as starting in 1980 and being born as late as
2004.
 LITERATURE REVIEW:-

Author Technology and Factors/ Models Key findings

place
Arya Samudra, Mutual fund, India Millennial’s intention in stock The main objective was to examine the interests of
Mahardhika (2020) investment: Theory of planned millennial investor. And it was found that they also
behavior. prefer investing in gold and FDs.

Rosidiana (2020) Mutual fund, India Investment behavior of It is found out that financial literacy and risk bearing
generation Z and Millennial capacity of generation Z is higher compare to
generation. others.

Rahadi (2021) Mutual fund, India Adoption analysis of online It is found that conventional investment way
mutual fund investment has shifted to online mutual fund investment
platform for millennials. platform.

Vaishali Patil Mutual fund, India A study of investment If income increases then investment pattern
(2021) behavior of millennials. falling down, however this proportion is
marginal.

Robin Dottling Mutual fund, India Sustainability preferences This research has highlighted on measuring
(2021) under stress: Evidence from the economic shock, show funds with higher
mutual fund flow during sustainability rating experienced sharper
COVID-19 decline in retail flows.
 OBJECTIVES OF THE STUDY:-

● To study the demographic profile of millennials mutual

fund investors in Ahmedabad.

● To understand the information sources influencing the

scheme selection decision.

● To understand and analyze the determinants

that influence the millennial’s fund/ scheme
selection.
● To study the fund preference of millennials.

● To understand the characteristics that investors

investigate while investing in mutual funds.
RESEARCH METHODOLOGY:-

1. Research Tools and Techniques:-

● Sample Population - Investors who are

investing in mutual funds companies
like Aditya Birla at Ahmedabad city.

● Sample method - In this research a

Non- probabilistic sampling method is
used.

● Research instrument - The primary

data is collected through questionnaires
and the secondary data is collected
from the internet.

● Software used - For this research we’ve

mostly used SPSS and Excel.
RESEARCH METHODOLOGY:-

2. Scope of the study - 3. Research Design -

This study is purely based on the purpose to

Our research design is DESCRIPTIVE research design.
analyze the various factors that affect an
investor’s decision while investing in mutual Fundamentally present research reports can be
funds. This research is conducted on broadly divided into two parts. The first is collecting
different types of funds provided by AMCs the basic information of the investors and trying to
like Aditya Birla Mutual Funds into the find out whether they are investing into mutual funds
market. This study will provide various or not. And the second and most important portion of
factors that an investor must consider before this research is to find out the factors that affect
investing in mutual funds. The study covers investor’s preference while investing in mutual funds.
areas such as type of fund, fund size,
current market conditions, and ratings by
rating agency and many more.
HOW DOES MUTUAL FUND WORK?
Step 1 - NFO launch
In a New Fund Offer (NFO), investors
get an opportunity to subscribe to a
mutual fund scheme and say invested in
it right from its inception. However,
they can subscribe only for a limited
time. Once the NFO closes, the
investors will only be able to purchase
the units.
Step 2 - Money is pooled
Mutual funds pool money from many
small investors to invest in securities.
Investors invest small amounts of
money from their savings. Mutual
funds allow small investors to invest
money in large portfolios, which they
otherwise cannot.
Step 3 - Invest money in securities
The pooled money is invested in securities like
shares, bonds, and government securities. The
fund manager decides the portfolio of the fund
based on the strategy of the fund. The portfolio
manager has the expertise and time to do a
thorough research of the securities. They
sometimes use multiple strategies to choose
the securities for a fund.
Step 4 - Fund returns
The portfolio manager continuously strives to
earn returns from the investments they make
on behalf of the fund investors. Thus, all their
efforts in mutual fund research, monitoring, and
rebalancing the portfolio increases the fund’s
NAV.
TYPES OF MUTUAL FUNDS:-

By Structure:- By Investment
Objective:-
● Open-ended
● Close-ended ● Growth
● Interval ● Income
● Balanced
● Money market

By Nature:-

● Equity
● Debt
● Gilt
● Income
● MIPs
● Short term plans
● Liquid
● Balanced
Benefits of investing in mutual funds:-

● Professional management
● Diversification
● Economies of scale
● Power of compounding
● Capital gain distributions
● Simplicity
● Safety of investments
● Transparency
● Tax shelter
LIMITATIONS OF INVESTING IN MUTUAL
FUNDS:-

● Professional management
● High costs
● Dilution
● Taxes
ADITYA BIRLA SUN LIFE ASSETS
MANAGEMENT COMPANY LIMITED

● Type of company - Private Ltd.

● Industry - Financial services.
● Year of establishment- 1994 in India.
● Headquarters - Mumbai, Maharashtra, India
● CEO - Bala Subramanian
● Services provided - Insurance, Mutual fund, etc.
● Stake holdings - Aditya Birla(51%) and Sun Life(49%)
● AUM - Rs 3 trillion by (2021)
● Rank - Aditya Birla 3rd largest AMCs in india
 SWOT ANALYSIS OF ADITYA BIRLA:-

Strengths Weakness
- Has Network of 600 branches - Low Presence in Rural Market
- Lesser advertising as compared to
and advisors spread over 1500
competitors
towns in India having over
130,000 advisors.
- Backed by Aditya Birla Brand and Sun Life
financial services
- Emphasis on Customer Satisfaction
through Transparent Functioning
- Strong Capital Base

Opportunities Threats
- Growing potential in the rural market - Economic crisis and economic
- Alignment with government schemes instability
- Better awareness amongst people for - Entry of new NBFCs in the sector
getting insurance
KEY CHARACTERISTICS OF MILLENNIALS:-

➔ Millennials are proactive and confident.

➔ They work well with others.
➔ Millennials try to look for structure and leadership from
older colleagues or bosses.
➔ Values meaningful motivation.
➔ Intuitive knowledge of technology.
➔ Open and adaptive to change.
➔ Openly receptive to feedback and recognition.
➔ Free thinking and creativity.
➔ Values social interaction in the workplace.
REASONS WHY MILLENIALS INVEST IN
MUTUAL FUNDS:-

1. To become 3. Saving for

financially big purchase.
independent.
2. Getting out 4. Planning for
of debt. future.
DATA ANALYSIS:-

- Gender - 141 respondents were male and 66 were female.

● - Age - Majority of respondents belongs 23-28 years of age

group.

- Education - 81 respondents are postgraduate level

and 71 are graduate.
DATA ANALYSIS:-

- Occupation - 65 respondents are working student.

- Annual family income - Majority of respondents have their annual family

income between 3-5 lacs.

- Annual savings - Majority of the respondents have their annual

savings between 50,000-1,00,000.
DATA ANALYSIS:-
- Category of investment
From this chart it is clearly
identified that majority of the
respondents have moderate risk
bearing and taking ability while
investing their money in mutual
funds.
- Mode of investment
From this chart it is clearly identified
that out of the available mode of
investment in mutual fund, SIP is
the way that has responded by
majority of respondents to invest
mutual funds.
DATA ANALYSIS:-
- Sources of Mutual fund information
From this chart it is clearly
identified that the major sources of
mutual fund information are
advertisement, friends and
financial advisors that are opted by
the respondents.
- Different types of AMCs
From this chart it is clearly
identified that HDFC and Aditya
Birla are the 2 companies that are
selected most by respondents as
an good AMC company.
 FINDINGS OF THE STUDY:-
● Objective 1: To study the demographic profile of millennials mutual fund

investors in Ahmedabad city.

- Majority of the respondents are male.
- Majority of respondents fall under the age-group of 17-28 years of age.
- Majority of respondents have completed their education till post graduation.
- Majority of respondents occupied as a working student.
- Majority of respondents have their family income between 5-10 lakhs.
- Majority of respondents have their annual savings between 50,000-1 lakh.

● Objective 2: To understand the information sources influencing the

scheme selection decision.

- The information sources of majority of the respondents is from Advertisement

and Financial advisors.

● Objective 3: To understand and analyze the determinants that influence

the millennial’s fund selection.

- The most significant basic factors that is taken into consideration is

diversification of fund, liquidity, low risk, high return and company
reputation.
 FINDINGS OF THE STUDY:-
● Objective 4: To study the fund preference of millennials.

- Majority of the respondents have preferred funds of Aditya Birla and HDFC
mutual funds.

● Objective 5: To understand the characteristics that investor investigate

while investing in mutual funds.

- Majority of respondents consider portfolio strategies, the experience of the

fund manager, past performance, AUM and performance against peer as
an most important determinants that millennials consider while investing into
mutual fund.

-
RECOMMENDATIONS TO THE STUDY:-
- The respective companies must revert at the earliest while tackling the issues of
their customers.
- The procedure and policy while investing must be convenient and easy to
understand for all the investors.
- As more customers are considering liquidity as an important factor while investing
in mutual funds, AMCs must introduce more and more open-ended funds.
- Out of 200 respondents, 40 respondents were not aware of mutual funds, which
show that there is still a lack of awareness of mutual funds amongst customers.
Thus, the AMCs and sponsors should focus on investors education towards mutual
funds.
- As goodwill of the AMCs plays an important role while investing in mutual funds.
The companies should focus on building their brand in the market to gain more
customers.
- Thus, the above were the suggestions and recommendations that are found from
this research report which must be implied practically.
CONCLUSION:-

It is concluded from the above analysis that various factors have

been identified for making investment decisions in mutual funds.
The most important factors are fund size, rating by a rating
agency, redemption facility of funds, prompt settlement, and fund
sustainability playing a crucial role in investors taking an
investment decision mutual fund similarly, the second important
factor type of fund, scheme portfolio, past performance, current
market conditions, dividend history in addition to the most
important factors supporting investors to take investment
decisions in mutual fund investment. The other factors also
influence the investor taking investment decisions are, the
reputation of the fund manager, liquidity factors of the fund,
grievance redressal machinery, the risk-taking ability of investors.
WE WELCOME YOUR QUESTIONS :)