CHAPTER-4

WORK EXPERIENCE
 Objective of the Study

To gain a better understanding of the numerous factors that clients think about while investing in
mutual funds.
an additional goal

1. To learn more about mutual funds and how they work.

2. To investigate what attracts investors to mutual funds.
3. What factors should an investor consider while making a risk-free investment with a higher rate of
return.
4. To become familiar with the various AXIS Mutual Fund programmes.
5. To research or assess the mutual fund industry's future possibilities.
 Concept of a Mutual Fund

A mutual fund is a type of investment trust that pools the money of a group of people who have
similar financial objectives. The funds raised are subsequently invested in capital markets securities
such as stocks, bonds, and other assets. The income and capital gains generated by these assets are
distributed to unit holders in proportion to their holdings. As a result, a mutual fund is the best
investment for the average individual because it allows them to invest in a diversified, professionally
managed basket of securities for a reasonable fee. The flow chart below depicts the general
operation of a mutual fund:-
Any country's economy relies heavily on savings. Savings are invested in a variety of public
alternatives, and the money serves as a stimulus for the country's development.
The Indian financial market, too, offers a diverse range of investment opportunities. Despite the fact
that it is neither the best nor the deepest market in the world, mutual fund savings have increased.
The investment objectives of one person may differ from those of another. While some people place a
greater emphasis on safety, others may place a greater emphasis only on money. Someone may
prefer to put money down for his child's education, while another may prefer to put money aside for a
rainy day or even retirement. It's only natural that the items needed for purposes that defy
classification will be different.
 Investors earn from a Mutual Fund in three ways

1.Distributions are a source of money. The fund regains capital when it sells securities that have
gained in value, which is reflected in the price of each unit. Investors will earn if they sell this unit for a
higher price than they paid for it. 3.If the value of the fund's holdings increases but the fund manager
does not sell them, the value of the fund's unit increases, allowing you to profitably sell your mutual
fund unit.

This is effectively a gain in value for newcomers to the Indian mutual fund industry, which offers a
diverse selection of schemes and services to accommodate all types of investors. Equity funds, liquid
gilt funds, and balanced funds, as well as funds customised to young and old, small and large
investors, and the establishment of a legal structure, are among the products available.

category and devise a novel strategy for appealing to them. Various types of investors might choose
from a variety of investment options, but mutual funds were the best because they were packaged.

Primary data collection was prioritised since it is an overhearing factory in terms of attitude. One of
the most important purposes of research technique is to assist in identifying the problem, acquiring
and analysing the necessary data, and providing an alternate solution to the problem. It also assists in
the gathering of the bare minimum of data required by higher management in order to enable th
 Data sources :

The research is solely based on original sources. Secondary data can only be utilised as a starting
point. The study relied on original data collected through contact with a diverse group of people. A
variety of periodicals and websites were used to gather secondary data.

Duration of Study :

The study was place over the course of two months, from June 3rd to July 16th, 2019.
 CHAPTER-5
DISCRIPTION OF WORK

RESPONSIBILITY TAKEN
 Mutual Fund Structure
In accordance with the AXIS A(Mutual Funds) Regulations 1993, a mutual fund is defined as a trust
established by a sponsor to raise funds by selling units to the general public under one or more
schemes for investing in securities. The AXIS(Mutual Funds) Laws of 1996 have now repealed these
requirements.

The following structure is proposed in the updated regulations:

A mutual fund company of four separate entities, namely sponsor, trustee AMC (Asset
Management Company )and Custodian.
 Sponsor

The sponsor, who registers the Mutual Fund with AXIS, is the promoter. With AXIS' prior agreement
and in compliance with AXIS standards, the Sponsor appoints the trustees, custodians, and AMS.
The sponsor must contribute at least 40% of the Asset Management Company's minimum net
worth (Rs. 10 crore).

Trustee
Mutual funds in India are organised as trusts. The trust is established by the sponsor, or the company
that is interested in beginning a Mutual Fund Business. A trust business or a board of trustees
manages the Mutual Fund, which is a trust.

The Indian Trust Act governs the Board of Trustees and Trust Corporations. If the trustee is a
corporation, the sponsor executes and registers a trust deed in their favour, which is also subject to
the rules of the Indian Companies Act. The trustee is solely responsible for ensuring that the AXIS
Regulations are obeyed, according to the AXIS Regulations.

Mutual funds that follow Axis principles, as well as the interests of mutual fund investors.

Asset Management Company

The trustees normally appoint the AMC on the sponsors' recommendation. The AMC was
granted to the trustees with the authority to name it. The AMC is often a private limited
company owned by the sponsor, their associate or joint venture partner, and stockholders. The
AMC must be a registered business with a minimum net worth of Rs 10 crore. The trustee and
the AMC sign an investment agreement outlining the AMC's responsibilities; the trust is the
mutual fund, and the AMC is its operational face; the AMC structures and markets mutual
funds, and the more mobilizzes they receive from the trustee, the better. The fee is calculated
as a percentage of the fund managed by the AMC. Because the AMC will be here to cover all of
its operational expenditures, the earnings earned will be accessible for distribution to
investors.
 AMC’s can be of Following types:

AMCs that are owned by banks and other financial entities.

Ownership of AMCs by Financial Institutions

Indian private sector companies possess AMCs.

AMCs are owned by institutional investors from around the world.

With Indian and international sponsors, Associated Motion Pictures (AMCs)

Custodians

When a mutual fund acquires securities, custodians ensure that the securities are delivered and
transferred to the mutual fund's books, as well as ensuring the mutual fund is paid out. When a
mutual fund acquires securities, custodians ensure that the securities are delivered and transferred to
the mutual fund's books, as well as ensuring the mutual fund is paid out.

Bonus issues, right offers, for sale, busy back, and open offers for acquisitions are all tracked by
custodians.

Types of Fund

Types of Mutual Funds Schemes

By Structure

There Are No Ending Schemes

Schemes with a closed perimeter are known as closed-perimeter schemes.

By way of investing
 Objective

Planned Income and Planned Growth

Investing in the Stock Market: Balanced Schemes Specialty/sector

Schemes with or without a load Schemes with or without a load

Other Schemes

Schemes that help you save money on taxes Schemes that are unique to the industry Schemes that
are unique to the industry Schemes that are unique to the industry Schemes that are unique to the
industry Scheme

Classification on the Basis of Structure

Open-ended Funds

An open end fund is one that accepts donations all year long and does not have a fixed price.
Investors can only purchase cell units at net assessed value related pricing. Both open and scheme
transactions necessitate a large amount of liquidity.

Closed-ended Funds

A closed-end fund has a three- to fifteen-year maturity period and is only open for subscription during
that time. Investors can invest in the programme during the duration of the public offering. Investors
in some closed ended funds with the option to sell can buy or sell the scheme's unit on the stock
exchange where it is listed in order to provide an exit path. refund the investor's investment unit.The
investor must have access to at least one of the mutual fund's two exit options, periodic buyback at an
AVN appropriate price.

Interval Funds

They combine the benefits of open ended and closed ended schemes and are available for sale or
 trade at NAV-related prices at pre-determined periods.

By Investment Objectives

Growth Funds

The goal of a growth fund is to increase capital throughout the medium to long term. The majority of
sach funds invest heavily in equities, which have been proved to outperform most other types of
investments.
Long-term growth schemes are appropriate for investors who want to see their money grow over time
and have a long-term perspective.

Income Funds

The goal of an income fund is to offer investors with consistent and predictable income. Income funds
commonly invest in fixed income instruments such as bonds, corporate debentures, and government
securities. Income funds offer both capital stability and a consistent stream of income.

Balanced Funds

The goal of a balanced fund is to provide both growth and regular income. These funds disseminate
a portion of their earnings and invest in both stocks and fixed income assets in the quantities
specified in their offer documents in a rising stock market. The n a v of these funds, on the other
hand, does not always keep or fall in lockstep with the market. These funds are ideal for investors
looking for a combination of income and moderate growth.
 Money Market Funds

The goal of a money market fund is to provide liquidity, capital preservation, and a decent return.
Money market funds usually invest in short-term assets such as treasury notes. Returns on certificates
of deposit, commercial paper, and internal Bank call money are all affected by market interest rates.
As a way to save surplus points for a short period of time, these are advantageous to both
corporations and people.

Specialty/Sectoral funds-

These funds invest in stocks from a single industry or economic sector, such as health care,
technology, leisure, utilities, or precious metals. The fund lets investors to distribute their
money among multiple companies in the same industry, which is a safer method than
investing in a single firm.

Sector funds have the potential for large capital gains when the fund industry is favourable,
but they also carry the danger of capital losses when the fund industry is unfavourable.

A sector district concentrates on a single industry, whereas a specialised 500 index fund
provides investors with a broader portfolio and seeks to analyse the performance of multiple
market categories.

Index funds invest in all of the companies that make up the BSE sensex, NSE Nifty, and other
stock market indices.

Load or No-Load Funds

A load fund is one that costs a proportion of the NAV for entrance and exit, suggesting that when
investors buy or sell a unit in the fund, they will be charged an 8-hour discharge fee.
If the entry and exit load taxes are both 1%, investors who purchase would be required to pay Rs.
1010, whereas tours would only earn Rs. 9.90 per unit for buying to the mutual fund. When making an
investment, the investor should consider the burdens because they affect how the investment
performs. The investor should also look at the company's performance history.

A no-load fund is one that charges no fees to join or exit. This means that investors can join the fund
scheme for free, and there are no hidden fees when buying or selling units.
 Other Schemes

Tax Saving Schemes

Investments in equity linked savings schemes (ELSS) and pension schemes are allowed as deductions
under the Income Tax Act of 1961, and these schemes provide tax rebates to investors under specific
provisions of the Indian income tax law, as the government provides tax incentives for investment in
specific avenues. The act allows investors to conserve capital gains under Sections 54EA and 54Eb by
investing in mutual funds if the capital asset was sold before April 1, 2000, and the money was
invested before September 30, 2000.

Special Schemes

Industry Specific Schemes

This fund's investments are restricted to a select Western industries, such as input tag FMCG and
pharmaceuticals, as well as the industries indicated in the offer document.

Index Schemes

Index funds try to mirror the performance of an index, such as the BSE sensex or the NSE 50, by
investing in it.

Sectoral Schemes

Sectoral funds invest exclusively in a single industry or a set of industries for a variety of reasons,
including group shares or whole public offerings.

Managing Risks

Mutual funds give you a lot of alternatives when it comes to managing your finances. Diversification
and systematic investing (SIP) are two important strategies for minimising investment risk and
achieving long-term financial objectives.
 Diversification

When you invest in a Mutual Fund, you spread your risk among a number of companies right away. By
investing in a variety of Mutual Funds, you may spread your risk over several different types of
securities, lowering your risk. Diversity is a fundamental risk management strategy that you'll want to
keep in mind as you adjust your portfolio to fit your changing needs and goals. Investors who are
willing to diversify their portfolio by including equities, bonds, and money market instruments have a
better chance of beating those who exclusively invest in the safest items. A well-balanced investment
strategy that includes a mix of shares, bonds, and real estate is also recommended.

The mix of the growing potential of stocks, the greater income of bonds, and the stability of money
markets can help you reduce risk while increasing your potential return.
 Systematic Investment Plan (SIP)

The program's unit holders can gain by investing a predetermined amount of Ruppe on a regular basis
for a long time. SIPs allow investors to set aside a predetermined amount of money each month or
quarter to purchase additional mutual fund units at NAV-based prices.

Using hypothetical statistics, here's an example of how the SIP might work for investors.

Assume an investor wants to use a systematic investing method to make a monthly investment of Rs.
1000.
No. of Unit
Amount Purchase
Invested
(Rs.)

Initial investment 1000 100

1 1000 121.95
2 1000 135.14
3 1000 163.93
4 1000 185.19
5 1000 166.67
6 1000 121.95
7 1000 108.11
8 1000 100.00
9 1000 88.89
10 1000 74.63
 11 1000 69.44
Total 12000 1,435.90

The average cost per unit was Rs. 12,000/1,435.9=Rs. 8.36. The average unit price is
Rs.109.6/12=Rs.9.13, and the unit price at the beginning of the next month is Rs.14.90. The market
value of the investment is Rs.1435,9*14.90=Rs.21,395/-. The investor sells his units and receives
Rs.21,395 in return.
Using the SIP method, investors can lower their average cost per unit. When the market is down, the
investor benefits because he or she can buy more units.

Types of Risks

Every investment involves a certain level of risk. Even the safest bank account is susceptible to
inflation, leaving you with less real purchasing power than when you first opened it (Rs 1000 buys you
less than it did your father when he was your age). When making an investment decision, keep these
fundamental risk categories in mind and weigh them against the potential rewards.

Market Risk

Due to broad outside forces, the prices or yields of all assets in a particular market may rise or
decrease at times. If this happens, stock prices of both current and successful companies, as well as
start-ups, may be impacted. The price shift is the result of "Market Risk:

Inflation Risk

"Purchase power loss" is another term for it. You risk being able to buy less rather than more if
inflation outpaces your investment gains. Inflation risk exists when the cost of goods and services rises
faster than the value of your returns.
 Credit Risk

To put it another way, how secure is the organisation or entity in which you place your trust? How
confident are you that your investment will be able to pay you the promised interest or repay your
principal when it matures?

Interest Rate

Investors are reminded that "predicting" which way interest rates will move is difficult because it has a
variety of implications for both stocks and bonds. A well-diversified portfolio can help to mitigate
these volatility.

Employees

The most valuable assets in any industry are usually the people who run it, i.e. the intellectual
property of the company's top executives. Given the ever-changing complexity of few businesses and
the high level of obsolescence, the availability of skilled, trained, and motivated people is critical for
the operation of industries in a few sectors. It is consequently crucial to attract and keep critical
professionals in order to handle the changing environment and challenges that the sector brings.
Failure or inability to attract or keep such qualified people could hurt a company's chances in a
particular field.

Exchange Rate

Currency rate swings can have a significant impact on a variety of enterprises that produce revenue in
foreign currencies and have interests or expenses in other countries.
A good and negative impact on enterprises, with consequences for the investment strategy of the fund
 Investment Risk

The sector fund scheme's investments will mostly be in the stocks of a few select companies in the
sector, with the scheme's NAV decided by the equity performance of these companies, which may be
more volatile than the IMO diaries' diverse portfolio of securities.

Government Policies

Changes in government tax rules may have an impact on the businesses of the companies, influencing
the fund's investment.

Mutual Funds Enable Regular Periodic Saving

In today's world, mutual fund units are no longer issued as minimum Danny more nation certificates,
but rather as account statements with the facility.

It is also simpler to make further investments, repurchase their share of investments, and invest
divinely to convert their holdings in one pound to a holding in another. Small investors can use these
services to set aside a certain amount of money in a mutual fund on a regular basis and create savings
plans that are tailored to their saving habits and financial goals. An individual's income, expenses, and
cash flow requirements have a substantial impact on financial goals and plans. The investor's age is
commonly recognised as a critical factor in financial aspirations.
 MUTUAL FUND COMPANIES IN INDIA

Between 1963 and 1987, India had only one mutual fund company, the Unit Trust of India UTI, which
had rupees 67 billion in assets under management (a u m) at the end of its monopoly. By the end of
the 1980s, there were just a few mutual fund businesses remained. In India, other mutual fund
companies have carved out a niche for themselves.

New entrants into India's mutual fund industry, where SBI Mutual Fund can participate Punjab
National Bank is a bank based in Punjab, India Punjab National Bank manages the mutual fund
Mutual Fund India. Punjab National Bank is a bank based in Punjab, India Punjab National Bank
manages the mutual fund Mutual Fund India. Punjab National Bank is a bank based in Punjab, India
Punjab National Bank manages the mutual fund Mutual Fund India. Punjab National Bank is a bank
based in Punjab, India Punjab National Bank manages the mutual fund Mutual Fund India. Punjab
National Bank is an Indian bank headquartered in Punjab. The total value of India's industries was Rs.
470 1.04 billion by the end of 1993, and point the private sector fund began penetrating the font
families in the same year. In the same year, the first mutual fund regulation was enacted, registering
all mutual funds except UTI. The regulation was revised in 1996, and Kothari point was the first
private sector mutual fund company in India, founded in 1996. In India, there are now 33 mutual fund
companies.

Major Mutual Fund Companies in India

ABN AMRO Mutual Fund

On April 15, 2004, ABN AMRO Mutual Fund was established, with ABN AMRO Trustee(India) Pvt. Ltd.
as the Trustee Company. The AMC, ABN AMRO Asset Management (India) Ltd., was founded on
November 4, 2003. The ABN AMRO Mutual Fund is held in custody by Deutsche Bank AG.

Birla Sun Life Mutual Fund

Aditya Birla Group and Sun Life Financial have partnered to form the Birla Sun Life Mutual Fund. Sun
Life Financial is a multinational firm that was founded in 1871 and is represented in Canada by Sun
Life Financial.

The Philippines and the United States of America, as well as Japan India is separated from Indonesia
and Bermuda. Birla Sun Life Mutual Fund recently made a Rs 10,000 crore cross-day transaction as
part of a prudent long-term strategy.

Bank of Baroda Mutual Fund (BOB Mutual Fund)

Our BOB mutual fund was established on October 30, 1992, with Bank of Baroda as the sponsor. The
AMC for our BOB mutual fund was established on November 5, 1992. Deutsche Bank A G is the
custodian of our BOB mutual fund.

HDFC Mutual Fund

On June 30, 2008, the HDFC mutual fund was established to support two companies: Housing
Development Finance Corporation Limited and Standard Life Investments Limited.

HSBC Mutual Fund

HSBC Mutual Fund was established on May 27, 2002, with the sponsor HSBC Securities and
Capital Markets India Private Limited and the trustee business HSBC Mutual Fund.

ING Vysya Mutual Fund

The ING vysya mutual fund was launched on February 11, 1999, with the same trustee
business. It's a collaboration between Vysya and ING Asset Management. On April 6, 1998, ING
Investment Management India Private Limited was established.

Prudential ICICI Mutual Fund

The Prudential ICICI mutual fund is a joint venture between Prudential and PLC of America, one of the
country's largest life insurance companies. The Prudential ICICI mutual fund, which was founded on
October 23, 1993, is sponsored by Prudential PLC and ICICI Limited. Prudential ICICI mutual fund
trustee Prudential ICICI asset management company limited Prudential ICICI asset management
business limited Prudential ICICI asset management company limited Prudential ICICI asset
management company limited Prudential ICICI asset management company limited Prudential ICICI
asset management company limited Prudential ICICI asset management company limited Prudential
ICICI asset management company limited Prudential ICICI asset management company limited
Prudential ICICI asset management company limited Prudential

Sahara Mutual Fund

On July 18, 1996, Sahara India Financial Corporation Limited launched a mutual fund. Sahara
asset management company private limited, the asset management arm of the Sahara mutual
fund, was established on August 31, 1995. The AMC has a paid-up capital of Rs. 25.8 crore.

State Bank of India Mutual Fund

With a capital of around Rs 225 crore, the India Magnum fund, founded by the State Bank of
India mutual fund, was the first bank-sponsored mutual fund to open an overseas fund. It has
already launched 35 projects, 15 of which have already paid off for investors. The State Bank
of India mutual fund now has over Rs 5500 in crowds spread across 18 schemes, with about 8
lakh investors.

Tata Mutual Fund

TATA Mutual Fund (TMF) is a trust established under the Indian Trust Act of 1882, with Tata Sons
Limited and Tata Investment Corporation Limited as sponsors, Tata Asset Management Limited as
investment manager, and Tata Trustee Company Private Limited as trustee. With an AUM of around
Rs 7730 crores as of April 30, 2005, Tata Asset Management Limited is one of the fastest growing
companies in the country.
 CHAPTER-6
EXPERIENCED GANED
&
PROBLEMS
This report was compiled using the following sources: One of the most common uses of
research methodology is to help define the problem of data collection, collection,
analysis, and possible solutions. It also aids top management in acquiring essential data
that would assist them in making better day-to-day and critical decisions.

Data sources:
The research is based entirely on original sources. Only as a source of information is
secondary data useful. The study relied on primary data collection, which was achieved
by interviewing a diverse group of people. Secondary information was gathered from a
variety of journals and websites.

Duration of Study:

The research took place over two months, from May 2nd to July 1st, 2012.

Sampling procedure: Sampling:

Customers/visitors of Axis Bank's Malviya Nagar and Vaishali Nagar branches, regardless
of whether they are investors or use the bank's services, were chosen for the study.
Information was gathered through personal visits, formal and casual talks, and the
completion of a questionnaire. A mathematical/statistical instrument was used to
analyse the data.
Sample size:

My project's sample size is strictly limited to 200 participants. Only 120

people had invested in mutual funds, compared to 80 who had not.

Sample design:

Data has been displayed using bar graphs, pie charts, line graphs, and other
visual aids.

Limitations of the study

The key faults of the study are listed below.

The sample was limited to a certain geographic area.

The sample selected might not be typical of the entire population, and the
outcome might not correctly reflect the entire universe.
ANALYSIS & INTERPRETATION OF THE DATA

Age distribution of the investors

Age <=30 31-35 36-40 41-45 46-50 >50

Groop
No. of 12 18 30 24 20 16
Investors
 Interpretation:
According to this graph, the majority of Jaipur's 120 Mutual Fund Investors are between
the ages of 36 and 40. The age range of 41-15 years has the second-highest percentage
of investors (20%), while the age group of less than 30 years has the lowest percentage (5
percent ).

Educational Qualification of investors:

Educational Qualification Numbers of Investors

Graduate/Post Graduate 88
Under Graduate 25
Others 7
Total 120
 graduate/Post Graduate Under Graduate others

Interpretation:

Graduate and postgraduate students account for 71 percent of the 120 mutual fund
investors. Undergraduates make up 23% of the population, while others make up 6% of
the population. (This is a requirement of the HSC.)

OCCUPATION OF THE INVESTORS:-

Occupation No.of investors

Govt.Service 30
Pvt Serivice 45
Business 35
Agriculture 4
Others 6
Interpretation:

In Occupation group out of 120 investors, 38% are Pvt. Employees, 25% are
Businessman, 29% are Govt. employees, 3% are in Agriculture and 5% are in
others.

Monthly Family Income of the Investors:

Income Group No. of Investors

<10,000 5
10,001-15,000 12
15,001-20,000 28
20,000-30,000 43
<30,000 32
 Interpretation:

Out of 120 investors, 36 percent, or the bulk, have a monthly income between Rs.
20,001 and Rs. 30,000. The second group, which accounts for 27% of investors, earns
more than Rs.30,000 per month, while the third group, which accounts for 4% of
investors, earns less than Rs.10,000 per month.
 Percentage (%) of Annual Savings:

Less than 0% 10-20% 21-30% 31-40%

19 48 42 11

Interpretation

Everyone saves a percentage of their earnings to address immediate and long-term

expenses. According to the pie chart, 40 percent of investors save 10-20 percent of their
annual income, while the remaining 35 percent save 21-30 percent.
Risk Taking Ability Of Investors:

Careful Low risk Reluctant to risk High risk

33 49 24 14

Interpretation

Few investors believe that avoiding risk when investing in numerous channels is a
wise idea. The great majority of investors opt for low-risk investments such as
mutual funds, fixed deposits, and other low-risk alternatives.
 Investors invested is different kind of investments:

Kind of Investment No of Respondents

Saving A/C 195
Fixed deposits 148
Insurance 152
Mutual fund 120
Post office (NSC ) 75
Shares/debentures 50
Gold/Silver 30
Real Estate 65

Interpretation:

97.5 percent of 200 persons have invested in Savings Accounts, 76 percent in Insurance,
74 percent in Fixed Deposits, 60 percent in Mutual Funds, 37.5 percent in Post Office, 25
percent in shares or debentures, 15 percent in Gole/Silver, and 32.5 percent in Real
Estate, according to the graph above.
 Prefenece of factors while investing:

Factors ( A ) Liquidity ( B ) Low Risk ( C ) Hign Return (d) Trust

No.of 40 60 64 36
Respondents

Interpretation:
According to a survey of 200 people, 32% prefer to invest in high-return businesses. Low-
risk investments are favoured by 33%, quick liquidity is preferred by 20%, and trust is
preferred by 18%.
Awareness about Mutual Fund and its Operations :

Response Yes No
No of Respondents 135 65

Interpretation:

According to the graph above, 67 percent of individuals are familiar with Mutual
Funds and how they work, while 33 percent are not.

Source of information for customers about Mutual Fund

Source of information No of Respondents

Advertisement 18
Peer Group 25
Bank 30
Financial Advisors 62
 Interpretation:

The Financial Advisor, according to the graph above, is the most essential source of
information on Mutual Funds. Mutual funds are known by 46 percent of the 135 people
polled. Financial Advisor, Bank, Peer Group, and Advertisement each received 22%, 19%,
and 13% of the vote, respectively.
 Investors invested in Mutual Fund:

Response No. of Respondents

Yes 120
No 80
Total 200

Interpretation

Sixty percent of those interviewed had invested in mutual funds, while forty
percent had not.
 Reason for not invested in Mutual fund

Reason No. of Respondent

Not Aware 65
Higher Risk 5
Not any Specific Reason 10

Interpretation
Sixty percent of those interviewed had invested in mutual funds, while
forty percent had not. Eighty-one percent of people who haven't invested
in a mutual fund have no idea what it is. There is a higher risk, according
to 13%, and there is no specific cause for 6%.
Investors invested in different Assets Management Co.(AMC):

Name of AMC No. of Investors

Axis MF 55
UTI 75
HDFC 30
Reliance 75
ICICI Prudential 56
Kotak 45
Others 70

Interpretation;
UTI and Reliance Mutual Fund were the most popular mutual funds with
investors. Only 46% of 120 investors invested in AxisMF, 47% in ICICI
Prudential, 37% in Predential, 37.5 percent in Kotak, and 25% in HDFC.
 Reason for invested in AxisMF:

Reason No. of Respondents

Associated with Axis 35
Better Return 5
Agents Advice 15

Interpretation:
64 percent of 55 Axis Mf investors put their money in because of the company's ties to
the Axis brand, 27% because of an agent's recommendation, and 9% because of a higher
return.
 Reason for not invested in AxisMF

Reason No. of Respondents

Not Aware 25
Less Return 18
Agent’s Advice 22

Interpretation:
38 percent of those who haven't invested in AxisMF haven't heard of it, 28 haven't
invested due to a lower return, and 34 percent haven't invested due to a broker's
recommendation.
 CHAPTER-7
SUGGESTION
AND
RECOMMENDATIONS
 CONCLUSION
Mutual funds are becoming increasingly popular. A wide range of financial resources has
led to a wide range of proposals. Investors are attracted to these schemes because stock
values are surging.

Only a small percentage of investors use mutual funds, and financial counsellors remain
the most trustworthy source of information, followed by advertisements in various
media. The average Indian investor invests for one to three years. Furthermore, due to
the security associated with fixed deposits, they have a higher inclination to be invested
in.

Companies must continue to increase awareness and grasp the mindset of the Indian
customer in order to prosper and make mutual funds a success.
 SUGGESTIONS AND RECUMMENDATION
The most serious issue that has been discovered is ignorance. The advantages should
be made known to investors. Nobody will put money into something unless they are
confident in its feasibility. Investors should be made aware that ignorance is no longer
bliss and that they would lose money if they do not invest.

Mutual funds provide a wide range of advantages that no other investment strategy
can match. On the other hand, the majority of people have no idea what a mutual
fund is. They simply perceive it as an alternative way to invest their funds. As a result,
counsellors should make an effort to adjust their perspectives.
Advisors should make a concerted effort to attract a growing number of young
investors. Due to a lack of knowledge and time, young investors and those towards
the end of their careers would prefer to hire advisors.
Individual Financial Advisors must be educated on the Fund/Scheme and its
objectives by the Mutual Fund Company, as they are the primary source of influence
over investors.
Before you invest anything, make sure you've done your homework. Financial
advisors should initially inquire about the investors'/customers' risk tolerance, as well
as their needs and time constraints (how long they want ot invest). They will be able
to consider the clients if they examine these three variables.
Younger investors under the age of 35 will be a crucial new client segment in the future,
so investing more effort into courting them should pay off.
Customers with a bachelor's degree are easier to sell to, and this is a market that is
currently underserved. To thrive, advisors, on the other hand, must deliver high-quality
counsel.
Systematic investment plans (SIPs), a relatively new product, are now being offered by
asset management businesses. SIP is simple for monthly salaried people because it
allows them to invest in EMI. The great majority of potential investors and prospects are
unaware of the SIP. There are numerous ways for businesses to tap into the salaried
labour.
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