A Study On The Most Preferable Investment (Fixed Deposit Vs Mutual Funds)

A STUDY ON THE MOST PREFERABLE
INVESTMENT
(FIXED DEPOSIT VS MUTUAL FUNDS)
A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor in Commerce (Accounting and Finance)
Under the Faculty of Commerce
By
SANJANA KISHOR MELEKAR
ROLL NO- 852
Under the Guidance Of
Ms. Nidhi Borana
CHIKISAK SAMUHA’S
S.S. &L.S. PATKAR COLLEGEOF ARTS
AND SCIENCE
V.P. VARDE COLLEGE OF COMMERCE & ECONOMICS
S.V. ROAD, GOREGAON WEST, MUMBAI-400062
APRIL 2020
A STUDY ON THE MOST PREFERABLE
INVESTMENT
(FIXED DEPOSIT VS MUTUAL FUNDS)
A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor in Commerce (Accounting and Finance)
Under the Faculty of Commerce
By
SANJANA KISHOR MELEKAR
ROLL NO- 852
Under the Guidance Of
Ms. Nidhi Borana
CHIKISAK SAMUHA’S
AND SCIENCE
APRIL 2020
INDEX
Title of Chapter Page

No.
1 Executive Summary 01
1. Introduction 02
2. Research Methodology 27
2.1 Objective 29
3. Literature Review 30
4. Data Analysis, Interpretation and 31
Presentation
5. Conclusions and Suggestions 52
6. Bibliography 53
Appendix
CHIKITSAK SAMUHA’S
AND SCIENCE
CERTIFICATE
This is to certify that Ms. SANJANA KISHOR MELEKAR has worked and duly completed
her Project Work for the degree of Bachelor in Commerce (Accounting & Finance) under the
Faculty of Commerce in the subject of banking and finance her project is entitled, “A
STUDY ON THE MOST PREFERABLE INVESTMENT (FIXED DEPOSIT VS
MUTUAL FUNDS)” under my supervision.
I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.
It is her own work and facts reported by her personal findings and investigation
Ms. Zeba Khan
(Course Coordinator)
Ms. Nidhi Borana
(Project Guide)
Signature of External Guide

Date of Submission:
DECLARATION BY LEARNER
I the undersigned Ms. SANJANA KISHOR MELEKAR hereby declare that the work
embodied in the project work titled “A STUDY ON THE MOST PREFERABLE
INVESTMENT (FIXED DEPOSIT VS MUTUAL FUNDS)” forms my own contribution
to the research work carried out under the guidance of Ms. Nidhi Borana a result of my own
research work and has not been previously submitted to any other University for any other
Degree/ Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
(Sanjana.K. Melekar)
(Roll No. 852)
_____________________________
(Certified by Ms. Nidhi Borana)
ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal, Dr. Sharmishtha Matkar for providing the necessary
facilities required for completion of this project.
I take this opportunity to thank our Coordinator Ms. Zeba Khan, for her moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide Ms. Nidhi
Borana whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me throughout
my project.
(Sanjana. K. Melekar)
Roll No. 852

EXECUTIVE SUMMARY
Investment is one of the most essential part of a person’s life in today’s time.
Investing requires time, knowledge and constant monitoring of the market. For those who
doesn’t have much knowledge of the different types of investment option, Fixed Deposit and
Mutual Fund becomes an option. Fixed Deposit provides low returns compared to other
investment options available in the market and possess a low risk.
At the same time, mutual funds provide comparatively a higher rate of return and possess a
high risk.
Therefore, before investing in any of them one should have proper knowledge about the
same However, in Mumbai or may be in other states as well it is seen that majority of the
people are not aware of the advantages and disadvantages of investing in Fixed Deposits and
Mutual Funds. Some invest in Fixed Deposit just because they have heard the fact of Mutual
Funds being risky and some invest in Mutual Fund for the fact that it provides higher returns
compared to Fixed Deposits. But, in most of the cases people have zero knowledge or no
knowledge and just invest by listening to others.
A survey conducted by SEBI (The survey was commissioned in the year 2015
and got completed in the year 2016) reports that more than 95% people had invested in fixed
deposits and less than 10% people had invested in Mutual Funds or Stocks. The survey,
conducted across urban and rural areas of the country, showed that life insurance was second
most preferred investment vehicle, followed by precious metals, post office savings and real
estate in the top-five. Mutual funds came at sixth place (9.7 per cent), followed by stocks
(8.1 per cent), pension schemes, company deposits, debentures, derivatives and commodity
futures (1 per cent) as investment vehicles for the urban households.
Among the rural households, not even one per cent of the survey respondents
were investors, while even the awareness about mutual funds and equities was dismal at just
1.4 per cent. However, 95 per cent of rural survey respondents had bank accounts, 47 per
cent life insurance, 29 per cent post office deposits and 11 per cent saved in precious metals.
This report also shows the most preferable investment option i.e. Fixed Deposit or
Mutual Fund amongst the people residing in Mumbai
1
CHP 1 - INTRODUCTION
What is Investment?
Investment can be defined as a current commitment of funds in expectation of earning a

greater amount from it in the future. It is this expectation of reward, or return of a greater
amount in future, which motivates people to commit their current pool of funds.
However, there is always an uncertainty faced by an investor, the returns in future from
investments made now may differ from his expectations. This uncertainty of returns in
future, faced by the investor when he makes an investment, is his investment risk. The
perceived risk and expected return generally go hand-in-hand. The higher the uncertainty of
future payments, or higher the investment risk, the higher would be the return sought by an
investor.
Whenever a person makes an investment, he is sacrificing a current pool of money, which he

could have immediately consumed, for a higher level of future consumption. The person has
thus decided to defer his consumption to a future point in time. The longer that time period,
the greater is the sacrifice in terms of deferred gratification. Therefore, the longer the time
period for which the funds are committed, the higher will be the return expectations.
Also, when the person makes an investment, he foregoes current consumption of goods and
services. If the price levels in the economy increase over the time period of his investment,
he would need a greater amount in future for the same level of consumption of goods and
services he had foregone while making the investment. Thus, the return sought by the
investor would also be directly proportional to the increase in price level (inflation) in the
economy.
Investment can thus also be defined as the current commitment of funds to get a greater
amount of money in future, which would compensate him for: -
(1) The uncertainty of the future payments (the risk involved),
(2) The time period for which the funds have been committed (the time value of money) and
(3) The expected price increase in the economy (inflation).
2
1.1 Concept of Fixed Deposit
A Fixed Deposit (FD) is a financial instrument provided by banks or NBFCs which

provides investors a higher rate of interest than a regular savings account, until the given
maturity date. It may or may not require the creation of a separate account. It is known as a
term deposit or time deposit in Canada, Australia, New Zealand, and the US, and as a bond
in the United Kingdom and India. They are considered to be very safe investments. Term
deposits in India, Nepal, and Pakistan are used to denote a larger class of investments with
varying levels of liquidity. The defining criteria for a Fixed Deposit are that the money
cannot be withdrawn from the Fixed Deposit as compared to a recurring deposit or a demand
deposit before maturity. Some banks may offer additional services to Fixed Deposit holders
such as loans against Fixed Deposit certificates at competitive interest rates. It's important to
note that banks may offer lesser interest rates under uncertain economic conditions. The
interest rate varies between 4 and 7.25 percent. The tenure of a Fixed Deposit can vary from
7, 15 or 45 days to 1.5 years and can be as high as 10 years.
Fixed Deposits are a high-interest -yielding Term deposit and offered by banks
in India. The most popular form of Term deposits is Fixed Deposits, while other forms of
term Deposits are Recurring Deposit and Flexi Fixed Deposits (the latter is actually a
combination of Demand deposit and Fixed Deposit).
To compensate for the low liquidity, Fixed Deposits offer higher rates of interest
than saving accounts. The longest permissible term for Fixed Deposits is 10 years.
Generally, the longer the term of deposit, higher is the rate of interest but a bank may offer
lower rate of interest for a longer period if it expects interest rates, at which the Central
Bank of a nation lends to banks ("repo rates"), will dip in the future.
Usually in India the interest on Fixed Deposits is paid every three months from
the date of the deposit. (e.g. if Fixed Deposit a/c was opened on 15th Feb., first interest
instalment would be paid on 15 May). The interest is credited to the customers' Savings
bank account or sent to them by cheque. This is a Simple Fixed Deposit. The customer may
choose to have the interest reinvested in the Fixed Deposit account. In this case, the deposit
is called the Cumulative Fixed Deposit or compound interest Fixed Deposit. For such
deposits, the interest is paid with the invested amount on maturity of the deposit at the end
of the term.
3
Although banks can refuse to repay Fixed Deposits before the expiry of the
deposit, they generally don't. This is known as a premature withdrawal. In such cases,
interest is paid at the rate applicable at the time of withdrawal. For example, a deposit is
made for 5 years at 8%, but is withdrawn after 2 years. If the rate applicable on the date of
deposit for 2 years is 5 per cent, the interest will be paid at 5 per cent. Banks can charge a
penalty for premature withdrawal.
Banks issue a separate receipt for every Fixed Deposit because each
deposit is treated as a distinct contract. This receipt is known as the Fixed Deposit Receipt
(FDR), that has to be surrendered to the bank at the time of renewal or encashment
.
Many banks offer the facility of automatic renewal of Fixed Deposits where
the customers do give new instructions for the matured deposit. On the date of maturity,
such deposits are renewed for a similar term as that of the original deposit at the rate
prevailing on the date of renewal. Income tax regulations require that Fixed Deposit
maturity proceeds exceeding Rs.20,000 not to be paid in cash. Repayment of such and larger
deposits has to be either by "A/c payee " crossed cheque in the name of the customer or by
credit to the saving bank a/c or current a/c of the customer.
Nowadays, banks give the facility of Flexi or sweep in Fixed Deposit, where in
you can withdraw your money through ATM, through cheque or through funds transfer from
your Fixed Deposit account. In such case, whatever interest is accrued on the amount you
have withdrawn will be credited to your savings account (the account that has been linked to
your Fixed Deposit) and the balance amount will automatically be converted in your new
Fixed Deposit. This system helps you in getting your funds from your Fixed Deposit account
at the times of emergency without wasting your time.
4
1.1.A Benefits of Fixed Deposit
A Fixed Deposit is a financial instrument where an investor gives a certain sum of money to
a bank or a financial institution(company) and the entity pays interest for the duration of the
deposit. The rate of interest paid varies depending on the amount and tenure. Investor’s,
especially conservative investors, prefer to open Fixed Deposits as it is a safe investment
option and it can be opened easily and quickly.
The reason why Fixed Deposits are an ideal form of investment are as follows:
a) Guaranteed returns: Unlike investment in the stock market or commodity market, Fixed
Deposits are not a risky investment as they do not depend on fluctuating market rates.
Investors can rest assured that his investments are safe and he will be getting back a
guaranteed amount at the end of the tenure.
b) Easily withdrawable: The amount that is invested in Fixed Deposit can be withdrawn at
any time for a small penalty. The investor may have a financial emergency to meet financial
needs during marriage, sickness or when his business is in loss. The penalty is less than that
of selling stocks or real estate as the asset cannot be sold easily because of its high value and
if you are in a distressed situation, you will sell it for a much lower rate. Whereas, Fixed
Deposits can be withdrawn at any time and all you lose is a certain interest income.
c) Flexible in nature: Fixed Deposits can be taken for a tenure of 1 month or 1 year or 10
years based on your needs and for whatever amount that you can invest. Fixed Deposits can
be invested for a tenure of your choice. If you have planned for a big event in 5 years, then
you can have a Fixed Deposit kept for 5 years to meet your financial requirement in 5 years.
You can have various Fixed Deposit accounts to save for different goals.
d) Higher rate of return: The interest rate offered on Fixed Deposits are higher than that on
savings account. It is also a safe form of investment where returns are guaranteed.
e) Flexible interest rate pay-outs: Interest can be paid at different intervals depending on the
term you choose. Interest rates are paid at maturity, annually or monthly. Monthly and
annual interest rate pay-out ensure that you have the extra income flow and can be
reinvested for higher maturity benefits.
5
1.1.B. Drawbacks of Fixed Deposit
As attractive as they can be, Fixed Deposits may not necessarily be suitable for everyone.
Below are three disadvantages of investing in Fixed Deposits:
1. No flexibility to access your funds Because your money is locked away with the bank,
often for months (sometimes years), you lose the flexibility of a regular, day-to-day savings
account. If you do withdraw your money from your Fixed Deposit account before the agreed
maturity date, you will likely be penalized in the form of reduced interest or penalty fees.
2. Relatively low investment returns Fixed Deposits almost always pay a higher interest than
a regular, day-to-day savings account. However, because Fixed Deposits are very low risk
investments, they offer lower returns relative to other investment options (e.g. property,
shares, bonds etc.). While Fixed Deposits provide you maximum protection against
uncertainty, they offer poor protection against inflation. For example, if your Fixed Deposit
interest rate is at 3.5%, and the current inflation rate is 3%, the value of your money has
effectively only increased by 0.5% (i.e. 3.5% – 3% = 0.5%).
3. It is not Entertaining Unlike other exotic and risky investments; Fixed Deposits are safe
and boring (not necessarily a bad thing!). Some people may not like the very fact that you
know in advance how much profit you will end up earning if you stay on course for the
entire investment term. If active participation is what you are seeking, Fixed Deposit is
probably not a suitable investment choice for you.
1.1.C. Things to consider while investing in Fixed Deposits:

6
a) When you are investing in Fixed Deposits, it is wise for you to invest with different
providers. This way you won’t have to break one entire deposit in case of emergency and
provides extra security for the amount as your amount will be insured. The premature
withdrawal penalty will be paid for a smaller amount while the rest of the money can keep
growing.
b) Fixed Deposit investments can be laddered for different tenures. For instance, if you have
Rs.4 lakh, split the amount in four deposits of Rs.1 lakh each for one, two, three and four
years. When the one-year deposit is matured, reinvest it for a different tenure depending on
new interest rates. This will balance out the highs and lows in the interest over a period of
time. It will also ensure liquidity as you have deposits maturing at different times.
c) Make sure that you chose the right tenure as you also have to consider the lock-in period
and if you are withdrawing the amount before its tenure, then the returns are lower.
d) The income earned on the deposit that you have taken in the name of your spouse or your
child will be clubbed with your income for tax purposes.
1.1.D Taxability
Tax is deducted by the banks on Fixed Deposits if interest paid to a customer at any bank
exceeds Rs. 10,000 in a financial year. This is applicable to both interest payable or
reinvested per customer. This is called Tax deducted at Source and is presently fixed at 10%
of the interest. With CBS banks can tally Fixed Deposit holding of a customer across
various branches and TDS is applied if interest exceeds Rs10,000. Banks issue Form 16A
every quarter to the customer, as a receipt for Tax Deducted at Source. However, tax on
interest from Fixed Deposits is not 10%; it is applicable at the rate of tax slab of the deposit
holder. If any tax on Fixed Deposit interest is due after TDS, the holder is expected to
declare it in Income Tax returns and pay it by himself. If the total income for a year does not
fall within the overall taxable limits, customers can submit a Form 15 G (below 60 years of
age) or Form 15 H (above 60 years of age) to the bank when starting the Fixed Deposit and
at the start of every financial year to avoid TDS.
1.1.E BEST FIXED DEPOSITS RATES

7
FOR EACH
BANKS
Institution GROUP Interes PERIO INVESTMEN INVESTO TAX
t D T R STATU
%pa RS. TYPE S
Deutsche Foreign 8.00 Above 1 Less than Rs. 1 General Taxable
Bank Banks year to crore
1.5
years
Standard Foreign 7.50 18 Less than Rs. 1 General Taxable
Chartered Banks Months crore
Bank to less
than 21
months
The Indian 7.40 12 Less than lakh General Taxable
Ratnakar Private months to Rs. 1 crore
Bank Sector to less
Banks than 24
months
Yes Bank Indian 7.40 18 Less than Rs. General Taxable
Private Months 2crore
Sector 8 Days
Banks to 18
Months
18 Days
Indus Ind Indian 7.25 1 year Less than Rs. 2 General Taxable
Bank Private to below crores
Sector 1 years
Banks 2
months
Shamrao Cooperative 7.25 AV Less than Rs. 1 General Taxable
Vithal Co- Banks Deposit crore
operative Scheme
Bank - 366
Days
(Simple
Interest)
Punjab Public 6.90 1 year Less than Rs. 1 General Taxable
National Sector / crore
Bank Nationalize
d Banks
Oriental Public 6.85 1 year Less than Rs. 1 General Taxable
Bank of Sector / to less crore
Commerce Nationalize than 2
d Banks years
DCB Bank Indian 6.85 12 Less than Rs. 1 General Taxable
Private Months crore
Sector to less
Banks than 18
8
months
Federal Indian 6.80 Above 1 Less than Rs. 2 General Taxable
Bank Private year to crores
Sector less than
Banks 20
months
South Indian Indian 6.80 1 year Less than Rs. 2 General Taxable
Bank Private to less crores
Sector than 2
Banks years
Vijaya Bank Public 6.80 1Year Less than Rs. 1 General Taxable
Sector / crore
Nationalize
d Banks
Axis Bank Indian 6.75 13 Less than Rs. 1 General Taxable
Private months crore
Sector to less
Banks than 14
months
Small Cooperative 6.75 12 Less than Rs. 1 General Taxable
Industries Banks months crore
Developmen to 13
t Bank of months
India
J&K Bank Indian 6.75 1 years Less than Rs. 1 General Taxable
Private to less crore
Sector than 2
Banks year
Dena Bank Public 6.70 Above 1 Less than Rs. General Taxable
Sector / year to 1crore
Nationalize less than
d Banks 2 years
Corporation Public 6.55 556 Less than Rs. 2 General Taxable
Bank Sector / days to crores
Nationalize 665
d Banks days
Allahabad Public 6.50 1 year Less than Rs. 1 General Taxable
Bank Sector / to less crore
Nationalize than 2
d Banks years
Abhyudaya Cooperative 6.50 Above 1 Less than Rs. 1 General Taxable
Co- Banks year to crore
operative 455
Bank days
Kotak Bank Indian 6.50 390 Less than Rs. 2 General Taxable
Private Days crores
Sector (12
Banks months
25 days)
Catholic Indian 6.50 1 Year Less than Rs. 1 General Taxable
Syrian Bank Private crore
9
Sector
Banks
Indian Public 6.50 Above1 Up to Rs. 1 General Taxable
Overseas Sector / year to crore
Bank Nationalize less than
d Banks 2 years
Indian Bank Public 6.50 Above 1 less than Rs. General Taxable
Sector / year to 1crore
Nationalize less than
d Banks 2 years
HDFC Bank Indian 6.45 1 Year Less than Rs. 2 General Taxable
Private crores
Sector
Banks
ICICI Bank Private 6.45 1 year Less than Rs. 2 General Taxable
Sector to 389 crores
Banks days
Bank of Public 6.40 Above1 Less than Rs. 2 General Taxable
Baroda Sector / year to crores
Nationalize 400
d Banks days
Canara Bank Public 6.40 1 year Less than Rs. 2 General Taxable
Sector / crores
Nationalize
d Banks
Central Public 6.40 555 Less than Rs. General Taxable
Bank of Sector / days 2crore
India Nationalize
d Banks
Syndicate Public 6.40 1 year Less than Rs. General Taxable
Bank Sector / exact 2crore
Nationalize
d Banks
UCO Bank Public 6.30 1 year less than Rs. 2 General Taxable
Sector / crores
Nationalize
d Banks
United Bank Public 6.25 1 years Less than Rs. 2 General Taxable
of India Sector / to less crores
Nationalize than 2
d Banks years
State Bank Public 6.25 1 year Less than Rs. 2 General Taxable
of India Sector / to less crores
(SBI) Nationalize than 2
d Banks year
HSBC Foreign 6.00 400 Less than Rs. General Taxable
Banks days 1crore
Citi Bank Foreign 5.25 365 Less than Rs. 1 General Taxable
Banks days to crore
400
days
10
1.1.F Procedure to open a Fixed Deposit Account
Offline process for Fixed Deposit Account Opening

 First of all, the users have to download the application form from the official website. 
You can also take the application on banks. Fill the form without any errors. Enter the
necessary details on the corresponding columns.
 Attach the required documents like Aadhar card, Pan card, address proof, photo proof, etc.
 Submit to the higher authorities. They will give you a receipt. It is important, and you have
to show the deposit receipt while recollecting your money.
 Until here, your application process is completed.
Online process for Fixed Deposit Account Opening

First of all, choose a bank and go to its official website. Many banks are offering Fixed
Deposit. So, choosing a Bank is more important.
For example, take SBI. Go to SBI Official Website – https://www.onlinesbi.com.Search for
the account opening link. You will find a login page.
If you have a login Id in SBI Account, then simply enter your Login Id and password. The
new users can register freshly. Click on the Register block and enter the necessary details. A
page will open with a registration form. Fill the registration form without any mistakes. The
* mark boxes are mandatory to fill. After filling the form completely, then Click on the
Submit Button. Your Registration process is completed successfully by following the above
process.
Then go to the login page and enter your login Id and password. A page with the Fixed
Deposit Application form appears on the screen. Fill the form without any mistakes. Click
on submit button
11
1.2CONCEPT OF MUTUAL FUNDS
The word ‘mutual’ denotes something to be done collectively by a group of people with the
common objective of having mutual faith and understanding among themselves. ‘Fund’ is
used in monetary terms, to collect some money from the members for a common objective
like earning profits with joint efforts. Mutual funds concept refers to a fund, managed by an
asset management companies with the financial objectives of generating growth. These asset
management companies collect money from the investors and invest that money in different
stocks, bonds and other financial securities in a diversified manner. Before investing, they
carry thorough research and detailed analysis on the market conditions and market trends of
stock and bond prices.
A mutual fund is a professionally managed investment fund that pools money from many
investors to purchase securities. These investors may be retail or institutional in nature.
Mutual funds have advantages and disadvantages compared to direct investing in individual
securities. The primary advantages of mutual funds are that they provide economies of scale,
a higher level of diversification, they provide liquidity, and they are managed by
professional investors. On the negative side, investors in a mutual fund must pay various
fees and expenses.
Primary structures of mutual funds include open-end funds, unit investment trusts, and
closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit investment
trusts that trade on an exchange. Mutual funds are also classified by their principal
investments as money market funds, bond or fixed income funds, stock or equity funds,
hybrid funds or other. Funds may also be categorized as index funds, which are passively
managed funds that match the performance of an index, or actively managed funds. Hedge
funds are not mutual funds; hedge funds cannot be sold to the general public and are subject
to different government regulations.
The mutual funds industry in India has been in operation for over three decades. The
industry has investible funds to the tune of Rs 93,500 crore with 37 players, both in the
public and private sectors. However, despite the existence of an organized industry for such
12
a long time, there has been no comprehensive study to evaluate the investment performance
of Indian mutual funds.
The mutual fund industry is steadily growing and it is becoming increasingly popular. The
entry of private mutual funds like Morgan Stanley, Kothari Pioneer, etc., the options
available to the investor have increased tremendously and competition has grown. With
intense competition, mutual funds, that are able to provide reliability of investment
performance, those that can understand investor needs while designing investment schemes
and offer quality post sale service to clients, are the only ones that can succeed. If the
industry ensures good returns, quick liquidity and safety with sufficient transparency, then
the growth of mutual funds will surpass that of banks, finance companies and insurance
companies. Positive support from the media and the need for mutual funds in turn, to be
media-friendly have been stressed upon. A closer coordination between AMFI, mutual funds
and the media has been suggested to promote investor education in the country. The product
range offered by mutual funds also need to be redesigned, keeping in view the short-term,
medium-term changes in the savings and investment markets.
Typically, a mutual fund scheme is initiated by a sponsor, which organizes and markets the
fund. It pre-specifies the investment objectives of the fund, the risks associated, the costs
involved in the process and the broad rules for entry into and exit from the fund and other
areas of cooperation. In India, as in most countries, these sponsors need approval from the
regulator, viz., SEBI. SEBI looks at the track record of the sponsor and its financial strength.
(The Economic Times, in the Classroom, September 1999). In the first ever mutual funds
awards by the Economic Times and international mutual fund ranking agency Standard and
Poor’s Micropol, Public Sector State Bank of India bagged the prestigious five-year group
award while two private sector funds – Alliance Capital and Kothari Planner – have bagged
the awards for the one and three-year group categories. The methodology involved studying
the consistency of performance across a range of schemes offered by a mutual fund for its
computation in the group awards category.
It is essential for investors to read the offer documents and risk factors before investing in
mutual fund schemes to take well-informed investment decisions.
Categories in context to mutual funds can be classified into equity fund, debt fund or hybrid
funds with equity funds being classified by size (Large Cap Stocks, Mid Cap Stocks, Small
13
Cap Stocks) and by investment styles like investing in a growth stock like a small company
stock which possesses greater risk leading to greater returns.
Other investment style includes investing in a value stock like large company stocks which
are relatively less risky and hence provide lesser return. Similarly, in the debt or fixed
income instruments, the bonds can be categorized by maturity and credit rating risk. Hybrid
funds can be a mix of equity and debt with a higher orientation towards any one
commensurate with the investment objective.
1.2.A Early History of Mutual Funds
The first modern investment funds (the precursor of today's mutual funds) were established
in the Dutch Republic. In response to the financial crisis of 1772–1773, Amsterdam-based
businessman Abraham (or Adriaan) van Ketwich formed a trust named Eendragt Maakt
Magt ("unity creates strength"). His aim was to provide small investors with an opportunity
to diversify. Mutual funds were introduced to the United States in the 1890s. Early U.S.
funds were generally closed-end funds with a fixed number of shares that often traded at
prices above the portfolio net asset value. The first open-end mutual fund with redeemable
shares was established on March 21, 1924 as the Massachusetts Investors Trust (it is still in
existence today and is now managed by MFS Investment Management). In the United
States, closed-end funds remained more popular than open-end funds throughout the 1920s.
In 1929, open-end funds accounted for only 5% of the industry's $27 billion in total assets.
After the Wall Street Crash of 1929, the U.S. Congress passed a series of acts regulating the
securities markets in general and mutual funds in particular.
14
 The Securities Act of 1933 requires that all investments sold to the public, including mutual
funds, be registered with the SEC and that they provide prospective investors with a
prospectus that discloses essential facts about the investment.
 The Securities and Exchange Act of 1934 requires that issuers of securities, including
mutual funds, report regularly to their investors. This act also created the Securities and
Exchange Commission, which is the principal regulator of mutual funds.
 The Revenue Act of 1936 established guidelines for the taxation of mutual funds.
 The Investment Company Act of 1940 established rules specifically governing mutual
funds. These new regulations encouraged the development of open-end mutual funds (as
opposed to closed-end funds).
Growth in the U.S. mutual fund industry remained limited until the 1950s, when confidence
in the stock market returned. By 1970, there were approximately 360 funds with $48 billion
in assets. The introduction of money market funds in the high interest rate environment of
the late 1970s boosted industry growth dramatically. The first retail index fund, First Index
Investment Trust, was formed in 1976 by The Vanguard Group, headed by John Bogle; it is
now called the "Vanguard 500 Index Fund" and is one of the world's largest mutual funds.
Fund industry growth continued into the 1980s and 1990s. According to Pozen and
Hamacher, growth was the result of three factors:
 A bull market for both stocks and bonds,
 New product introductions (including funds based on municipal bonds, various industry
sectors, international funds, and target date funds) and
 Wider distribution of fund shares, including through employee-directed retirement accounts
such as 401(k), other defined contribution plans and individual retirement accounts (IRAs.)
Among the new distribution channels were retirement plans. Mutual funds are now the
preferred investment option in certain types of fast-growing retirement plans, specifically in
401(k), other defined contribution plans and in individual retirement accounts (IRAs), all of
which surged in popularity in the 1980s.
In 2003, the mutual fund industry was involved in a scandal involving unequal treatment of
fund shareholders. Some fund management companies allowed favored investors to engage
in late trading, which is illegal, or market timing, which is a practice prohibited by fund
policy. The scandal was initially discovered by former New York Attorney General Eliot
Spitzer and led to a significant increase in regulation. In a study about German mutual funds
15
Gomolka (2007) found statistical evidence of illegal time zone arbitrage in trading of
German mutual funds. Though reported to regulators BAFIN never commented on these
results. Total mutual fund assets fell in 2008 as a result of the financial crisis of 2007–2008
1.2.B. Significance of Mutual Funds
Small investors have a lot of problems in stock and money market. Limited resources, lack
of professional advice, lack of information etc. are some of the problems. Mutual funds are a
special type of institutional device for investment. Nowadays, importance of the mutual fund
is due to following reasons:
1. In the era of financial sector reform, the generation of financial resources is very important.
This calls for a market-based institution which can materialize the vast potential of domestic
saving and channelize for the purpose of economic development.
2. Mutual fund can provide a link for collection of foreign funds in the country.
3. An individual investor can apply for IPO. But they have no assurance for IPO. Therefore,
Mutual fund is a simple way to invest in new IPO.
4. There is a great scope for capital appreciation and growth through mutual fund.
5. Mutual funds are managed by professional fund managers. They have a certain competence
in financial market. They can maximize gains by proper selection and timing of investment.
6. Automatic reinvestment and systemic investment are a special feature of mutual. Investors
can take advantage of such facilities.
7. The mutual fund investment provides a protection to investors. In India, the investment in
mutual fund is eligible for tax-relief.
8. Mutual fund has a capacity to generate resources and invest in productive areas, hence divert
idle money to production.
9. Investor can take advantage of portfolio diversification, liquidity and security in mutual fund
investment.
10. Mutual funds transparently declare their portfolio every month. There is continuous
updating of mutual fund portfolio. Thus, investors know about their investment.
11. Mutual funds have enormous financial resources. Therefore, they can stabilize the stock
market.
12. Almost all mutual funds have research team which make continuous research on investment.
Investors can reap the benefit of research.
16
Mutual funds give investors best of both the worlds. Investor’s money is managed by
professional fund managers and the money is deployed in a diversified portfolio. Retail
investors cannot buy a diversified portfolio for say Rs. 5,000; but if they invest in a mutual
fund, they can own such a portfolio. Mutual funds help to reap the benefit of returns by a
portfolio spread across a wide spectrum of companies with small investments.
13. Investors may not have resources at their disposal to do detailed analysis of companies.
Time is a big constraint and they may not have the expertise to read and analyze balance
sheets, annual reports, research reports etc. a mutual fund does this for investors as fund
managers, assisted by a team of research analysts, scan this data regularly.
14. Investors can enter or exit schemes anytime they want (at least in open ended schemes).
They can invest in SIP, where every month, a stipulated amount automatically goes out of
their savings account into a scheme of their choice. Such hassle-free arrangement is not
always easy in case of direct investing in shares.
15. There may be a situation where an investor holds some shares, but cannot exit the same as
there are no buyers in the market. Such a problem of illiquidity generally does not exist in
case of mutual funds, as the investor can redeem his units by approaching the mutual fund.
16. An investor with limited funds might be able to invest in only one or two stocks and bonds,
thus increasing his or her risk. However, a mutual fund will spread its risk by investing a
number of sound stocks or bonds. A fund normally invests in companies across a wide range
of industries, so the risk is diversified.
17. Mutual funds regularly provide investors with information on the value of their
investments. Mutual funds also provide complete portfolio.
18. Disclosure of the investments made by various schemes and also the proportion invested in
each asset type.
19. The large amount of Mutual funds offers the investor a wide variety to choose from. An
investor can pick up a scheme depending upon his risk and return profile.
20. All the mutual funds are registered with SEBI and they function within the provisions of
strict regulations designed to protect the investors interest
17
1.2.C Advantages of Mutual Funds
1. Liquidity: - Unless you opt for close-ended mutual funds, it is relatively easier to buy and
exit a scheme. You can sell your units at any point (when the market is high). Do keep an
eye on surprises like exit load or pre-exit penalty. Remember, mutual fund transactions
happen only once a day after the fund house releases that day’s NAV.
2. Diversification: - Mutual funds have their own share of risks as their performance is based
on the market movement. Hence, the fund manager always invests in more than one asset
class (equities, debts, money market instruments etc.) to spread the risks. It is called
diversification. This way, when one asset class doesn’t perform, the other can compensate
with higher returns to avoid the loss for investors.
3. Expert Management: - Mutual fund is favored because it doesn’t require the investors to
do the research and fund allocation. An asset manager takes care of it all and makes
decisions on what to do with your investment. He decides whether to invest in equities or
debts or to hold them and for how long. Your fund manager’s reputation in fund
management should be an important criterion for you to choose a mutual fund for this
reason. The expense ratio (which cannot be more than 2.25% of the AUM guidelines as per
SEBI) includes the fee of the manager too.
4. Less cost for bulk transactions: - You must have noticed how price drops with increased
volume, when you buy any product. For instance, if a 100g toothpaste costs Rs. 10, you
might get a 500g pack for, say, Rs.40. The same logic applies to mutual fund units as well. If
you buy multiple units at a time, the processing fees and other commission charges will be
less compared to when you buy one unit.
5. Invest in smaller denominations: - By investing in smaller denominations (SIP), you get
exposure to the entire stock (or any other asset class). This reduces the average transactional
expenses – you benefit from the market lows and highs. Regular (monthly or quarterly)
investments as opposed to lumpsum investments give you the benefit of rupee-cost
averaging.
6. Suit your financial goals: -There are several types of mutual funds available in India
catering to investors from all walks of life. No matter what your income is, you must make it
a habit to set aside some amount (however small) towards investments. It is easy to find a
mutual fund that matches your income, expenditures, investment goals and risk appetite
18
7. Cost-efficiency: - You have the option to pick zero-load mutual funds with less expense
ratios. You can check the expense ratio of different mutual funds and choose one that fits in
your budget and financial goals. Expense ratio is the fee for managing your fund. It is a
useful tool to assess a mutual fund’s performance.
8. Quick & painless process: -You can start with one mutual fund and slowly diversify.
These days it is easier to identify and handpick fund(s) most suitable for you. Maintaining
and regulating the funds too will take no extra effort from your side. The fund manager with
the help of his team of will decide when, where and how to invest. In short, their job is to
consistently beat the benchmark and deliver you maximum returns.
9. Tax-efficiency: - You can invest up to Rs. 1.5 lakhs in tax-saving mutual funds mentioned
under 80C tax deductions. ELSS is an example for that. Though a 10% Long Term Capital
Gains (LTCG) is applicable for returns after one year, they have consistently delivered
higher returns than other tax-saving instruments like Fixed Deposit in the recent years.
10. Automated payments: - It is common to forget or delay SIPs or prompt lumpsum
investments due to any given reason. You can opt for paperless automation with your fund
house or agent. Timely email and SMS notifications help to counter this kind of negligence.
11. Safety: - There is a general notion that mutual funds are not as safe as bank products. This
is a myth as fund houses are strictly under the purview of statutory government bodies like
SEBI and AMFI. One can easily verify the credentials of the fund house and the asset
manager from SEBI. They also have an impartial grievance redress platform that work in the
interest of investors.
12. Systematic or one-time investment: - You can plan your mutual fund investment as per
your budget and convenience. For instance, starting a SIP (Systematic Investment Plan) on a
monthly or quarterly basis suits investor with less money. On the other hand, if you have
surplus amount, go for a one-time lump sum investment
19
1.2.D Disadvantages of Mutual Fund
1. Costs to manage the mutual fund: - The salary of the market analysts and fund manager
basically comes from the investors. Total fund management charge is one of the main
parameters to consider when choosing a mutual fund. Greater management fees do not
guarantee better fund performance.
2. Lock-in periods: - Many mutual funds have long-term lock-in periods, ranging from 5 to 8
years. Exiting such funds before maturity can be an expensive affair. A certain portion of the
fund is always kept in cash to pay out an investor who wants to exit the fund. This portion in
cash cannot earn interest for investors.
3. Dilution: - While diversification averages your risks of loss, it can also dilute your profits.
Hence, you should not invest more than 4-5 mutual funds at a time. As you have just read
above, the benefits and potential of mutual funds can certainly override the disadvantages, if
you make informed choices. However, investors may not have the time, knowledge or
patience to research and analyze different mutual funds. Investing with Clear Tax Save
could solve this as we have already done the homework for you by hand-picking the top-
rated funds from the best fund houses in the country.
20
1.2.E. Procedure for Investing in Mutual Fund
1. Submit KYC Form – KYC is must for the first-time investors and need to be done ONLY
ONCE and valid for all Mutual fund houses. You need to submit KYC form along with the
Proof of ID & Address. You can submit it to your nearest distributor, MF branches,
authorized banks, CAMS / Karvy offices etc.
2. Select a Mutual Fund & Scheme – Depending on your time horizon, goal & risk appetite,
select mutual fund scheme for investment (Equity, Debt, Balanced, Gold etc.).
3. Select Investment option – Growth, Dividend, Dividend reinvestment. If you do not need
regular money & investing for long term, select growth option
4. Submit MF application & SIP Form – Once the KYC is approved (within 5-7 days), you
can submit the Mutual Fund Application form along with the cheque for the investment
amount.
If you want to make monthly systematic investment, you can submit the SIP mandate form,
so that specified amount is debited directly from your bank account & get invested in
selected mutual fund scheme.
Different ways to Invest in Mutual Funds: -You can invest in Mutual funds either through
agents or directly with mutual fund companies. Also, there are options for offline as well as
online transactions. Following are the different ways to invest in Mutual Funds:
a. Through Agents
 Offline
1. Through Mutual Fund Agents
2. Through Banks (distributors)
3. Through Corporate agents
 Online
1. Through share broking portal (e.g. ICICI Direct)
2. Through online MF Agents (Funds India, Funds Supermart etc.)
3. Through Banks (e.g. HDFC ISA Account)
b, Direct
1. Through Mutual Fund Branch
2. Through Investor Service Centre (Karvy / CAMS office)
3. Through Mutual fund online website
21
If you are first time investor and investing small amount, it is suggested that you go through
an agent advisor who will help you with formalities and basic guidance.
1.3. Mutual Funds vs Fixed Deposits
1.3. A. Which one to choose (Fixed Deposits vs Mutual Funds)?
When it comes to saving money, people often opt for Fixed Deposits, considering them
to be relatively risk free. The security of having the money in the bank is apparently a great
factor. But we need to introspect that is this actually saving of money or rather losing of it?
Fixed Deposits of Fixed Deposits may give attractive returns on paper, but with
the tax payable at the current tax slab, the more one invests in Fixed Deposits, the more tax
one has to pay. Taking in consideration the rate of inflation over the years, it is possible
that one may actually be facing a loss by investing in Fixed Deposits.
In the case of Mutual Funds or MFs, the scenario is a wee bit different… Although MFs
are affected by market volatility and do have a level of risk, they are managed by
professional fund managers, who do their best not only to protect investments but also to
grow it.
When it comes to rate of returns, Fixed Deposit rates are pre-specified and do not
change for the entire tenure. On the other hand, MF rates are affected by market conditions,
hence during positive market conditions; MFs have the potential to earn high returns
whereas Fixed Deposit rates are unaffected.
In terms of risk, Fixed Deposits are generally known for minimal risk, whereas equity
mutual funds carry high market risk, and debt mutual funds carry lower market risk than
equity. But risks can be mitigated to a certain extent as MFs are managed by professionals.
Yet, MFS are prone to market risk. But as it is said, big risks give big returns.
Fixed Deposits have a fixed time period as the name suggests, and generally have low
liquidity till the tenure of the deposit ends. In case of MFs, most of them offer high liquidity
on the condition that the minimum holding period has passed and subject to lock-in period
22
as applicable.
In case of premature withdrawals, Fixed Deposit holders have to pay a

penalty, and miss out on a portion of the expected returns. MFs only charge an exit load if
investments are withdrawn, in a very short period, normally under a year. Some MF
Schemes offer high liquidity. Funds can be withdrawn at any given point of time, without
any exit load or extra charges.
A crucial factor to be considered before choosing between Fixed Deposits and MFs
should be the tax status. When it comes to Fixed Deposits, tax levied depends on your
current tax slab, irrespective of the tenure of the Fixed Deposit. Instead the tax status of
MFs depends on its category. Equity funds held for long term (more than a year) are not
taxable. Short term equity funds are taxable at 15%. Long term debt fund gains are taxable
at 20% with indexation and 10% without indexation and short-term capital gains are taxable
according to investor’s tax slab. Hence, we can say that MFs are tax friendly compared to
Fixed Deposits. Especially gains on long term equity funds, which are not taxable at all.
In the end, the decision to invest between a Fixed Deposit and a MF is based on the risk
capacity, and the horizon of the individual. But when the things are hopeful, and there are
good prospects for growth of the economy, it makes greater sense to invest in MF, because
of the possibility of returns.
-Money Control
23
1.3.B. Transition from Fixed to Mutual Fund
There was a time when every extra cash – bonus, increment – went on to become Fixed
Deposits. Our grandparents, parents have all ended up in investing in Fixed Deposits at least
once in their lifetime. It was the best option to earn interest while ensuring capital
protection. What changed? Over the past few years, mutual funds have come to the core. As
a result, Fixed Deposit is no longer considered as the most popular long-term investment
goal. During the demonetization in 2015, mutual funds were able to cash in onto the
opportunity of the reduced deposit return rates. Also, due to the availability of some tax
saving mutual funds, mutual funds rose to prominence. When Mutual funds started giving
more returns with liquidity, many low-risk investors decided to jump ship
.
1.3.C. Why invest in Mutual Funds?
Mutual funds are the closest which comes to the conventional Fixed Deposits in terms of
risk. A Mutual fund’s main goal is to give investors steady income after the maturity period.
So, you must choose a time horizon in line with that of the fund. You can find out about
various Mutual funds and their duration directly from the fund houses or online or through a
third-party. This will help investors understand a fund’s performance with respect to interest
and return rates. It will also make it easier for you to avoid market volatility by making
informed decisions.
24
1.3.D. Mutual Funds vs Fixed Deposits
Let’s have a look at the differences between Fixed Deposits and Mutual funds. The table
below helps you decide which investment is suitable for you
PARTICULARS MUTUAL FUNDS FIXED DEPOSITS
RATE OF RETURN 14-18% 6-8%
DIVIDEND OPTION YES NO
LIQUIDITY HIGH LOW
RISK MODERATE LOW
EARLY ALLOWED WITH OR A PENALTY IS

WITHDRAWAL WITHOUT EXIT LOAD IMPOSED ON
DEPENDING ON MUTUAL PREMATURE
FUND TYPE WITHDRAWAL
INVESTMENT CAN CHOOSE EITHER SIP CAN ONLY OPT FOR
OPTION INVESTMENT OR LUMP - LUMP-SUM
SUM INVESTMENT INVESTMENT
INVESTMENT AN EXPENSE RATIO OF 2.5% NO MANAGEMENT
EXPENDITURE IS CHARGED COSTS
Banks offer a pre-set interest rate for Fixed Deposits based on the tenure chosen. Mutual
fund returns solely depends on the market movement. They have historically earned higher
returns (sometimes even more than double) in the form of capital appreciation on top of
interest. One good thing about Fixed Deposit is, market highs and lows will not impact the
returns you earn. So typically, Mutual funds outdo Fixed Deposits by a huge margin during
market highs and vice versa.
1.3.E. Taxation on Mutual Funds and Fixed Deposits
You must add the short-term Mutual fund gains (less than 3 years) to your income and they
are taxable as per your tax slab rate. For long-term gains, there is a 20% after the indexation
25
benefits. As for Fixed Deposit returns, you can add it to your income, and it will be taxed
accordingly.
1.3.F. Inflation adaptability of Mutual Funds and Fixed Deposits
Everyone knows that inflation puts a damper on savings as it leads to loss of currency
value. Mutual funds, albeit the risk, have the potential to pace with inflation. For instance,
you have invested in a Fixed Deposit at 7% interest and the inflation rate is 5%, the adjusted
return would be a measly 2%. Mutual funds deliver better
Summing up with an illustration
PARTICULARS MUTUAL FUNDS FIXED DEPOSITS
INVESTED SUM RS. 2,00,000 RS. 2,00,000
RETURN RATE 7% 7%
LOCK IN PERIOD 3 years 3 years
FUND WORTH AT 2,45,000 2,45,000

THE END OF THE
TENURE
INFLATION 6% 6%
INDEXED 2,38,000 NIL

INVESTMENT SUM
TAXED AMOUNT 7,000 45,000
TAX TO BE PAID @ 2,333.333 15,000

30%
RETURN AFTER TAX 42,667.67 30,000
Ultimately, you should weigh your decision on your risk appetite, time horizon, and
investment goals. Therefore, when the market looks positive and you notice several
prospects for economic growth, it makes sense to opt for Mutual funds than Fixed Deposits
26
CHP. 2 RESEARCH METHODOLOGY
Research Problem
A study on the most preferable investment option (Fixed Deposits Vs Mutual Fund).
Formulating the Research Problem
1. Unit of Analysis
Investors
2. Characteristics of Interest
Investment option
3. Time and Space Boundary

Two months
4. Environmental Condition
People now-a-days are in search of investment options that provide them with high return
HYPOTHESIS
1.
H0 - There is no preferable investment option amongst Fixed Deposit or mutual fund.
H1 – There is a preferable investment option amongst Fixed Deposit or mutual fund.
2.
H0- There is no preference for Fixed Deposits.
H1- There is preference for Fixed Deposits.
3.
H0- There is no preference for Mutual Funds.
27
H1- There is preference for Mutual Funds.
With the help of the survey, the hypothesis test can be carried out.
DETERMINING SAMPLE DESIGN

a) Research Instrument- Questionnaire
b) Sample Area- Mumbai
c) Sampled Population- Investors
d) Sample Size- 52
e) Sample Type- Non probability sampling
COLLECTION OF DATA
I have collected the secondary data as well as primary data. I have collected the secondary
data from various websites, and reference books; whereas I have collected the primary
method by conducting a survey to the people residing in Mumbai.
28
CHP 2.1. OBJECTIVES OF RESEACRH
The purpose of the analysis is,
1. To understand whether the people residing in Mumbai are aware of Fixed Deposits and
Mutual Funds
2. To describe the advantages and disadvantages of both the investment options (i.e. Fixed
Deposit and Mutual Funds)
3. To understand the perception of people over Fixed Deposits and Mutual Funds.
4. To throw light on the reasons for investing.
5. To know the investment preference of people (i.e. Fixed Deposit or Mutual Fund)
29
CHP 3 LITERATURE REVIEW
 Jyothi H.M. - Research Scholar, BHARATIAR UNIVERSITY, COIMBATORE – 641

046
 Dr. Patel Nagaraj Goud, Associate professor in commerce Coordinator at PG studies in
Commerce
 V.R. Palanivelu &K. Chandrakumar (2013): Examined the Investment choices of
salaried class in Namakkal Taluk, Tamilnadu, India with the help of 100 respondents as
a sample size & it reveals that as per Income level of employees, invest in different
avenues. Age factor is also important while doing investments.
 Avinash Kumar Singh (2006): The study analyzed the investment pattern of people in
Bangalore city and Bhubaneswar & analysis of the study was undertaken with the help
of survey method. After analysis and interpretation of data it is concluded that in
Bangalore investors are more aware about various investment avenues & the risk
associated with that. All the age groups give more important to invest in equity & except
people those who are above 50 give important to insurance, fixed deposits and tax saving
benefits.
 Karthikeyan (2001): Has conducted research on Small Investors Perception on Post
office Saving Schemes and found that there was significant difference among the four
age groups, in the level of awareness for Kisan Vikas Patra (KVP), National Savings
Scheme (NSS), and deposit Scheme for Retired Employees (DSRE),and the Overall
Score Confirmed that the level of awareness among investors in the old age group was
higher than in those of young age group.
 Sandhu and Singh (2004): The study analyzed in case of adopters that transparency,
safety, convenience and economy judged as an important feature of net trading followed
by market quality and liquidity whereas in case of non-adopters’ economy and
convenience were the important features followed by the other factors like market
quality, safety and liquidity.
 Prasad (2009): Examined the perception of the investors and their awareness on various
investment alternatives available. A sample of 100 investors has been taken from the
twin cities of Hyderabad and Secunderabad. The result of findings showed 75% Net
traders were using online stock trading requiring strong technology base whereas
30
Traditional traders felt online trading not an acute process of stock trading and they
didn’t participate in net trading due to risk of a system failure
CHAPTER NO. 4: DATA ANALYSIS, INTERPRETATION AND
PRESENTATION
1.a. AGE:
AGE
51 and above
2%
Below 20
35%
20-50
63%
Below 20 20-50 51 and above
Majority of the responses received were of the age group ‘20-50’ i.e. 63%. 35% of the
responses were of the age group ‘below 20’ and only 2% of the responses were of the age
group ‘51 and above’.
1.b. GENDER
Other GENDER
0%
Male
42%
Female
58%
Male Female Other
31
42% of the responses received were from Male and 58% of the responses received were
from Female.
1.c. OCCUPATION
OCCUPATION
Profession 10% Retired
0%
Service 14%
House-maker
4%
Student
72 %
Student House Maker Service Profession Retired
Majority of the responses received were from ‘Students’ i.e. 72%. 10% responses were from
people who are in the line of ‘Profession’, 14% responses from people who do ‘Service’ and
4% responses from people who are ‘House-makers’ and 0% response from the Retired’.
1.d. INCOME
51,000-1,00,000 Income
2%
Above 1,00,000
21,000-50,000 4%
13%
0-20,000
81%
0-20,00021,000-50,00051,000-1,00,000Above 1,00,000
32
81% of the respondents belong to the income range of ‘0-20000’, 13% of the respondents to
the income range of ‘21000-50000’, 2% of the respondents belong to the income range of
‘51000-100000’ and 4% of the respondents belong to the income range of ‘above 100000’
.2. You Like To Save Because?
 For future
 I don't  It helps at the time of

uncertainty
 I like to save because if I
face any financial problem it may help me  For key Contingencies
 Use it for future
 to recover my expense
 For Future needs
 Financial
 It will be helpful for me Stability,
Future
 For security purpose
Uncertaint
 I want to know y.
 Wealth creation  Wealth creation
 For Future Goals  Savings is to improve

future
 it is beneficial in future
 So that I can spend later
 I am interested in banking sector
 Security
 Interested in helping others in need
 It helps in our bad times.
 For future use
 I want to invest
 Future purpose
 For future
 To spend in future for
emergency purpose  For my future plans
 It's better for future due to  Future

rising inflation day by day
 Its needed
 I feel saving is very useful
 For future needs
 It helps me when I don't have
any money left from pocket money  I want to secure my future
 For future
33
 I love to save
3. You started saving from the age?
It was an Open-Ended Question and the responses received are as follows:
1. 18 27. 16
2. Last 3 years 28. 18
3. 12 29. 18 Here, majority of the people have
4. I didn't Start 30. 15 started saving as early as they can as
soon as they came to know the
5. 18 31. 15
importance of saving. In addition, few
6. 6 years old 32. Not yet
have not started saving yet.
7. 16 33. 30
4.Do you know the difference
8. Not yet 34. 10 between savings and investment?
9. 20 35. Recently
Maybe
10. Not till now 36. 25
15%
11. 16 NO 37. 18
12. 12 4% 38. 15
13. 10 39. 39
14. 18 40. 18
15. 21 41. 23
16. 18 42. 16 Yes
17. 15 43. 25 81%
YesNoMaybe
18. 13 44. 27
19. 8 45. 21
20. 13 46. 25
21. 16 47. 16
22. 17 48. 25
23. 21 49. 10
24. 15 50. 15
25. 18 51. 25
26. 20 52. 20
34
It is a Dichotomous type of question. 81% of the respondents are aware of the difference
between savings and investment. 4% respondents are still not aware of it and 15%
respondents have mentioned that they may know the difference between savings and
investment.
5. Are you aware of the different investment options available in the market?
Maybe
17%
No
19%
Yes
64%
YesNoMaybe
I
t is a Dichotomous type of question. 64% of the respondents are aware of the different
investment options available in the market. 19% respondents are not aware and 17%
respondents mention that they may be aware of the different investment options in the marke
6. Have you ever invested before?
Yes
46%
No
54%
YesNo
35
It is a Dichotomous type of question. 46% of the respondents have invested before and 54%
respondents have not invested before.
7. If yes, what was the investment option?
Post Office Account

Scheme
Gold ETF (Exchange Traded

Fund)
It a Multiple-Choice question. The above is the data of respondents investing in different

investment options wherein, 52.9% respondents have invested in Mutual Funds and 47.1%
of respondents have invested in Bank Fixed Deposits. This shows that most of the people in
Mumbai prefer Mutual Funds over Fixed Deposits
8. You Want To Invest In Order To
REACH FINANCIAL START OR EXPAND

A BUSINESS
GOALS 2%
6%
REDUCE TAXABLE
INCOME
2%
SUPPORT OTHERS
12%
EARN HIGHER
RETURNS
17% GROW YOUR
MONEY 50%
36
SAVE FOR RETIREMENT
11%
Grow Your Money Support

Others Save For Retirement Earn Higher Returns
Reduce Taxable Income Reach Financial Goals
It a Multiple-Choice question. Above are the reasons for people investing in various
investment options available in the market.
9. Are You Aware Of Bank Fixed Deposits?
NO
2%
YES
98%
98% of the respondents are aware Fixed Deposits 2% of them are not aware of Fixed
Deposits
10. Have you ever invested in Bank Fixed Deposits?
No
48% Yes
52%
YesNo
It is a Dichotomous type of question. 52% of the respondents have invested in Bank Fixed
Deposits and 48% of them have not invested in Bank Fixed Deposits.
11. Are you aware of Mutual Funds?
No
13% 37
YesNo Yes
87%
87%
It is a Dichotomous type of question. 87% of the respondents are aware of Mutual Funds and
13% of them are not aware of Mutual Funds
12. Have you ever invested in Mutual Funds?
Yes
33%
NO
YesNo
76%
Yes No
It is a Dichotomous type of question. 33% of the respondents have invested in Mutual Funds
and 48% of them have not invested in Mutual Funds.
13. Bank Fixed Deposits Provide A Higher Rate Of Return Compared To Mutual
Funds.
38
69.2% of the respondents don’t agree that Bank Fixed Deposits provide a higher rate of
return compared to Mutual Funds and 30.8% of them agree to it. However, the fact is that
Mutual Funds provide higher rate of return compared to Bank Fixed Deposits. This means
people are not aware to which investment option provides them with a higher rate of return.
14. Bank Fixed Deposits Are Affected By The Market Conditions.
It is a Ranking Scale wherein the option given were as 1 being the lowest and 5 being the
highest. The fact is that Bank Fixed Deposits are least affected by market conditions but
looking at the responses it seems that people are not aware of the factors that affects their
investment options.
15. Mutual Funds Are Risky Compared To Bank Fixed Deposits.
39
88.5% of the respondents have agreed that Mutual Funds are risky compared to Bank Fixed
Deposits and 11.5% of them do not agree to it. However, the fact is Mutual Funds are risky
compared to Bank Fixed Deposits. This shows that still some of the people are not aware of
which investment options are risky and which are not.
16. Mutual Funds are affected by the market conditions?
It is a Ranking Scale wherein the option given were as 1 being the lowest and 5 being the
highest. Therefore, the response to this scale shows that respondents agree that Mutual
Funds are affected by market conditions.
17. What are the factors that affects your investment decision?
Time Horizon
15%
Risk Tolerance
39%
Investment
Knowledge Income and
23% Net Worth
23%
Risk Tolerance Income And Net Worth

Investment Knowledge 40 Time Horizon
It a Multiple-Choice question. The above chart shows the various factors that affects the
investment decision of the investors
18. Rate the following based on Fixed Deposits.
18.a. Fixed Deposits provides a guaranteed return?
Strongly Agree Strongly Disagree 17%

15%
Disagree
8%
Agree
31%
Neither Agree nor

Disagree 29%
Strongly DisagreeDisagree Neither

Agree nor DisagreeAgree
Strongly Agree
The scale used here is a Likert Scale. The above chart shows how much does the people
agree or disagree to the question that ‘Fixed Deposits provides a guaranteed return’.
18.b Investing in Fixed Deposits is safe?
Strongly Agree Strongly Disagree

17% 15%
Disagree
8%
Agree Neither Agree

35% nor Disagree
25%

Agree nor DisagreeAgree
Strongly Agree
41
agree or disagree to the question that ‘Investing in Fixed Deposits is safe’
18.c. In case of Fixed Deposits, Financial Institutions provide flexible maturity
dates?

2% 15%
Disagree
Agree
15%
27%
Neither Agree
nor Disagree
41%
Strongly Disagree Disagree
Neither Agree nor Disagree Agree
Strongly Agree
agree or disagree to the question that ‘In case of Fixed Deposits, Financial Institutions
provide flexible maturity dates.
18.d. Fixed Deposits provide a very low rate of return?
Strongly Agree 2%
Strongly
Agree Disagree
29% 15%
Strongly Disagree

19%
Disagree
Neither Agree nor Disagree

Agree Neither Agree
nor Disagree
Strongly Agree 35%
42
agree or disagree to the question that ‘Fixed Deposits provide a very low rate of return’.
18.e. Fixed Deposits can be liquidated easily?
Strongly Agree
4%
Agree
19%
Strongly
Disagree
23%
Neither Agree
nor Disagree
23% Disagree
31%
Strongly DisagreeDisagree Neither Agree

nor DisagreeAgree
Strongly Agree
agree or disagree to the question that ‘Fixed Deposits can be liquidated easily’.
19. Rate the following based on Mutual Funds.
19.a. Investing in Mutual Funds is safe?
Strongly Agree Strongly

0% Disagree
17%
Agree
22% Disagree
0%
Neither Agree nor

Disagree 61%
Strongly DisagreeDisagree
Neither Agree nor DisagreeAgree
Strongly Agree
43
agree or disagree to the question that ‘Investing in Mutual Funds is safe
19.b. Mutual Funds can be liquidated easily
Strongly Disagree
Agree 10% 0%
Agree Strongly Disagree 10%

26%
Neither Agree Nor

Disagree 54%

Agree Nor DisagreeAgree
Strongly Agree
agree or disagree to the question that ‘Mutual Funds can be liquidated easily
19.c. Funds are managed by experts?
Strongly agree Strongly Disagree

12% 12%
Disagree
0%
Agree
33% Neither Agree
Nor Disagree
43%

Neither Agree nor Disagree Agree
Strongly Agree
44
The scale used here is a Likert Scale. The above chart shows how much does the people agree or
disagree to the question that ‘Mutual Funds are managed by experts.
19.d. Investing in Mutual Funds is convenient?

6% 17%
Disagree
Agree 0%
34%
Neither Agree nor Disagree 43%
Strongly DisagreeDisagreeNeither Agree nor Disagree Agree Strongly Agree
The scale used here is a Likert Scale. The above chart shows how much does the people agree
or disagree to the question that ‘Investing in Mutual Funds is convenient’.
19.e. Mutual Funds provide a higher rate of returns?
Strongly Agree Strongly Disagree 10%

27% Disagree
0%
Disagree 0%
Neither Agree nor

Disagree 39%
Agree
24%
Neither Agree nor DisagreeAgree
Strongly Agree
The scale used here is an Likert Scale. The above chart shows how much does the people
45
agree or disagree to the question that ‘Mutual Funds provide a higher rate of returns
20. What is your perception on the following?
20.a. Choosing Fixed Deposit as an option?
Worst
6% Best
13%
Bad
12%
Better
13%
Good
56%
BestBetterGoodBadWorst
The scale used here is an Itemized Scale. The above chart shows the perception of people
towards ‘Choosing Fixed Deposit as an option’.
20.b. Choosing Mutual Fund as an option
Worst Best
8% 2%
BadBetter
13%17%
Good
60%
46
towards ‘Choosing Mutual Fund as an option
20.c. Choosing some other investment options?
Best
Worst 2%
8%
Better
15%
Bad
31%
Good
44%
towards ‘Choosing some other investment options.
21. Rate the following based on your opinion.
21.a. Mutual Funds and Fixed Deposits provide similar rate of returns?
Strongly Agree
Agree 8% 2%
Neither Agree Nor Strongly

Disagree 34% Disagree 8%
Disagree
48%
Strongly Disagree
Disagree
Neither Agree nor Disagree Strongly Agree
Agree
47
or disagree to the question that ‘Mutual Funds and Fixed Deposits provide similar rate of
return
21.b. It is better to invest on Bank Fixed Deposits rather than investing on Mutual
Funds
Strongly
Strongly Disagree
Agree 8% 8%
Agree 21%
Disagree 21%
Strongly Disagree
Neither Agree Nor Disagree Strongly Agree
Neither
neither agree
Agree Nor
nor disagree
Disagree Disagree
42%
Agree 42%
or disagree to the question that ‘It is better to invest on Bank Fixed Deposits rather than
investing on Mutual Funds’.
21.c. You will get expertise guidance investing in Fixed Deposits and not in Mutual
Funds?
Strongly Agree 8%
Agree 15% Strongly

Disagree
17%
Neither Agree
Nor Disagree Disagree
33% 27%
Neither Agree Nor Disagree Agree
Strongly Agree
48
or disagree to the question that ‘You will get expertise guidance investing in Fixed Deposits
and not in Mutual Funds’.
21.d. Mutual Funds are risk free and can be relied on for investing
Strongly Agree Strongly

10% Disagree
10%
Agree
13%
Neither Agree Nor Disagree

Disagree 23% 44%

Agree Nor DisagreeAgree
Strongly Agree
or disagree to the question that ‘Mutual Funds are risk free and can be relied on for investing’.
21.e. Mutual Fund is a better investment option compared to Fixed Deposit?
Strongly Agree
Strongly Disagree
14%
14%
Agree Disagree
17% 15%
Neither Agree
Nor Disagree
40%
Neither Agree Nor Disagree Agree
Strongly Agree 49
or disagree to the question that ‘Mutual Fund is a better investment option compared to Fixed
Deposit’.
21.d. Which investment option will you prefer?
Mutual
Funds Fixed
44% Deposits
56%
Fixed Deposits Mutual Funds
56% of the respondents prefer investing in Fixed Deposits and 44% of the respondents prefer
investing in Mutual Funds.
22. Any suggestions or Recommendations

It was an Open-Ended Question and 15 of them had given their responses which are as
follows:
1. Mutual funds are subject to market risk read all related documents very carefully
2. No
3. No
4. No suggestions
5. No
6. No
7. Fixed Deposits are better than mutual funds
8. None
9. No
10. No
11. No
50
12. None
13. Nothing...........Go for mutual fund, sahi hai
14. Mutual funds are more risky as compared to Fixed Deposits. So Fixed Deposits is a better
option to invest
15. It was good, keep it up
CHP. 5 CONCLUSION AND SUGGESTIONS

CONCLUSION
It is seen that the most of the people would like to invest in Fixed Deposit but at the same
time Mutual Fund is also not lagging behind. The survey shows that 56% of the respondents
prefer Fixed Deposits and 44% of the respondents prefer Mutual Funds. However, the survey
has found that some of the people or most probably majority of the people are not aware of
the risk factors which are also involved in the investment option they choose. Also, it seen
that even though some are aware of the risk factors involved, they are not aware of the factors
influencing the rate of return provided by the selected investment option.
People are investing their money so that it can help them in facing the sudden
uncertainties, to grow their money, for wealth generation, to reduce risk, to face inflation, for
retirement benefits, for reaching their financial goals, to build their future and many more.
To fulfil their respective needs people, choose an investment option wherein they can get a
higher rate of return to attain their goals, but they fail to gain complete knowledge about the
investment option they are opting for. Some people are influenced by advertisements, friends,
family, and other factors and sometimes get mislead by frauds as well and at the end are
bankrupt.
So, with this we come to an conclusion that only few people possess complete knowledge
about the investment option they are opting for.
RECOMMENDATION
Government should take some steps to get the people aware about the pros and cons of
different investment options available in the market.
In addition, people themselves should take an initiative to get themselves aware of the
different investment options and get themselves fully updated with the investment options and
the market conditions.
Banks and Financial Institutions which provides different types of investment options to its
customers must make sure that they provide the customers full details regarding their
investment option.
51
CHP. 6 BIBLOGRAPHY
1) Websites
a) Wikipedia
Wikipedia. (2019, January 1). Retrieved from Fixed Deposit:

https://en.wikipedia.org/wiki/Fixed_deposit
Wikipedia. (2019, January 8). Retrieved from Mutual Funds:

https://en.wikipedia.org/wiki/Mutual_fund
b) Economic Times
Economic Times. (n.d.). Retrieved from

https://economictimes.indiatimes.com/mf/analysis/top-10-mutual-
funds/articleshow/58822349.cms
c) Times of India
SEBI Survey. (2017, April 05). Times of India. Retrieved from

https://timesofindia.indiatimes.com/business/india-business/fixed-deposits-score-big-over-
equities-mutual-funds-for-investment-sebi-survey/articleshow/58030687.cms
d) Money Control
Money Control. (n.d.). Retrieved from
https://www.moneycontrol.com/news/trends/24x7booking-trends/mutual-funds-vs-fixed-
depositsone-to-choose-1283505.html
52
Money Control. (n.d.). Retrieved from https://www.moneycontrol.com/fixed-income/banks-
deposits/
e) Other Websites
 Bank Bazaar. (n.d.). Retrieved from https://www.bankbazaar.com/fixed-deposit/benefits-of-

fd.html
 Clear Tax. (n.d.). Retrieved from https://cleartax.in/s/advantages-disadvantages-mutual-funds

FD Calculators. (n.d.). Retrieved from https://www.fdcalculators.com/fixed-deposit-account-
opening/
 http://euroasiapub.org/wp-content/uploads/2018/05/5ESSApril-7222P.pdf
 Intelligent Money. (n.d.). Retrieved from https://www.imoney.my/articles/3-disadvantages-

of-fixed-deposit-investment
 Policy Bazaar. (n.d.). Retrieved from https://www.policybazaar.com/central-bank-of-india-

fd-rates/
Wealth 18. (n.d.). Retrieved from https://wealth18.com/how-to-invest-in-mutual-funds-in- india-

online-offline-options/
2) Books – Bhaskaran, R. (2015). Securities Markets And Products. Mumbai: Taxmann

Publications (P.) Ltd.
 Gopalsamy, N. (n.d.). Capital Market .
 Ingle, D. V. (2013). Mutual Funds in India. New Delhi: New Century Publication..
 Uma Shashikant, S. A. (n.d.). Indian Capital Markets – Trends and Dimensions.
53
APPENDIX
QUESTIONNAIRE
NAME*
1.A. AGE* – mark only one oval
o Below 20
o 20-50
o 51 and above
1.B. GENDER* – mark only one oval
o Female
o Male
o Other
1.C. OCCUPATION*- mark only one oval
o Student
o House maker
o Business
o Service
o Profession
o Retired
o Other
1.D. INCOME* - mark only one oval
o 0-20,0000
54
o 21,000-50,000
o 51,000-1,00,000
o Above 1,00,000
2. You like to save because *
_____________________________________________
3.You started saving from the age *
_____________________________________________
4.
Do you know the difference between savings and investment? * mark only one oval
o Yes
o No
o Maybe
5.
Are you aware of the different investment options? * mark only one oval
o Yes
o No
o Maybe
6.
Have you ever invested before? * mark only one oval
o Yes
o No
7.
If yes, what was the investment option? Tick all that applies
o Public Provident Fund
o Mutual Fund (S.I.P)
o Equity Shares
o Real Estate Investment
o Initial Public Offerings (IPO)
55
o Bank Fixed Deposits (FD)
o National Pension Scheme (NPS)
o Recurring Deposits
o Others
8.
You want to invest in order to * mark only one oval
o Grow your money
o Save for retirement
o Earn higher returns
o Reduce taxable income
o Support others
o Start or expand business
9.
Are you aware of bank fixed deposits? * mark only one oval
o Yes
o No
10.
Have you ever invested in bank fixed deposits? * mark only one oval
o Yes
o No
11.
Are you aware of mutual funds? * mark only one oval
o Yes
o No
12.
Have you ever invested in mutual funds? * mark only one oval
o Yes
o No
13.
Bank fixed deposits provide a higher rate of return compared to mutual funds? * mark only one
oval
o True
56
o False
14.
Bank fixed deposits are affected by market condition? * mark only one oval
1 2 3 4 5___________________
Being the lowest O O O O O Being the highest
15.
Mutual funds are risky compared to mutual funds? * mark only one oval
o True
o False
16.
Mutual funds are affected by market condition? * mark only one oval
1 2 3 4 5______________
Being the lowest O O O O O Being the highest
17.
What are the factors that affect your investment decision? * mark only one oval
o Time horizon
o Risk tolerance
o Investment knowledge
o Income and net worth
18.
Rate the following based on FIXED DEPOSITS. *
Mark only one oval per row
Strongly Disagree Neither Agree nor Agree Strongly Agree

Disagree Disagree
a. Fixed deposits provide O O O O O
a guaranteed return
_______________________________________________________________________________________
b. Investing is Fixed O O O O O
Deposit is safe
_______________________________________________________________________________________
c. In case of Fixed
57
Deposits, financial O O O O O
Institution provides
Flexible maturity
19.
Rate the following based on MUTUAL FUNDS Mark only one oval per row
Strongly Disagree Neither Agree nor Agree Strongly Agree

Disagree Disagree
a. Investing in mutual fund
Is safe O O O O O
__________________________________________________________________________________________________________
b. Mutual Funds can be
liquidated easily O O O O O
________________________________________________________________________________________
c. Mutual funds are
managed by experts O O O O O
________________________________________________________________________________________
d. Investing in Mutual
Fund is convenient O O O O O
________________________________________________________________________________________
e. Mutual Funds provide a
higher rate of returns O O O O O
__________________________________________________________________________________________________________
58
20.
What is your perception on the following? *
mark only one oval per row
21.
Rate the following based on your opinion * mark only one oval per row
Strongly Disagree BadNeither

Worst Agree norBetterAgreeBest
Good Strongly
Disagree disagree disagree agree
_________________________________________________________________________________
___________________________________________________________________________________
1.
Choosing Fixed Deposit as O O O O O
a. Mutual Funds and
An option
And fixed deposits
Provide2. similar rate Mutual Fund as
Choosing O O O O O
Ofoption
An return O O O O O
___________________________________________________________________________________
_________________________________________________________________________________
b. It is better to invest
in bank Fixed deposits
than investing Mutual funds O O O O O
___________________________________________________________________________________
c. You will get expertise

Guidance investing in O O O O O
Fixed deposits and not in
Mutual funds
___________________________________________________________________________________
d. Mutual Funds are risk

Free and can be relied on for O O O O O
59
Investing
___________________________________________________________________________________
e. Mutual Fund is am better
22.
Which investment option will you prefer? * mark only one oval
o Fixed Deposits
o Mutual Funds
23.
Any suggestions or Recommendations
60

A Study On The Most Preferable Investment (Fixed Deposit Vs Mutual Funds)

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A STUDY ON THE MOST PREFERABLE

Title of Chapter Page

Ms. Zeba Khan

Ms. Nidhi Borana

Signature of External Guide

(Roll No. 852)

(Certified by Ms. Nidhi Borana)

Roll No. 852

Investment can be defined as a current commitment of funds in expectation of earning a

Whenever a person makes an investment, he is sacrificing a current pool of money, which he

A Fixed Deposit (FD) is a financial instrument provided by banks or NBFCs which

1.1.C. Things to consider while investing in Fixed Deposits:

1.1.E BEST FIXED DEPOSITS RATES

Offline process for Fixed Deposit Account Opening

Online process for Fixed Deposit Account Opening

1.2.A Early History of Mutual Funds

1.2.B. Significance of Mutual Funds

1.3. Mutual Funds vs Fixed Deposits

1.3. A. Which one to choose (Fixed Deposits vs Mutual Funds)?

In case of premature withdrawals, Fixed Deposit holders have to pay a

1.3.C. Why invest in Mutual Funds?

PARTICULARS MUTUAL FUNDS FIXED DEPOSITS

RATE OF RETURN 14-18% 6-8%

DIVIDEND OPTION YES NO

LIQUIDITY HIGH LOW

RISK MODERATE LOW

EARLY ALLOWED WITH OR A PENALTY IS

1.3.E. Taxation on Mutual Funds and Fixed Deposits

1.3.F. Inflation adaptability of Mutual Funds and Fixed Deposits

Summing up with an illustration

PARTICULARS MUTUAL FUNDS FIXED DEPOSITS

INVESTED SUM RS. 2,00,000 RS. 2,00,000

LOCK IN PERIOD 3 years 3 years

FUND WORTH AT 2,45,000 2,45,000

INDEXED 2,38,000 NIL

TAX TO BE PAID @ 2,333.333 15,000

RETURN AFTER TAX 42,667.67 30,000

Formulating the Research Problem

3. Time and Space Boundary

H1 – There is a preferable investment option amongst Fixed Deposit or mutual fund.

H1- There is preference for Fixed Deposits.

DETERMINING SAMPLE DESIGN

b) Sample Area- Mumbai

c) Sampled Population- Investors

e) Sample Type- Non probability sampling

The purpose of the analysis is,

4. To throw light on the reasons for investing.

 Jyothi H.M. - Research Scholar, BHARATIAR UNIVERSITY, COIMBATORE – 641

Below 20 20-50 51 and above

Male Female Other

Student House Maker Service Profession Retired

 I don't  It helps at the time of

 Wealth creation  Wealth creation

 For Future Goals  Savings is to improve

 It's better for future due to  Future

Post Office Account

Gold ETF (Exchange Traded

It a Multiple-Choice question. The above is the data of respondents investing in different

8. You Want To Invest In Order To

REACH FINANCIAL START OR EXPAND

Grow Your Money Support

10. Have you ever invested in Bank Fixed Deposits?

11. Are you aware of Mutual Funds?