Research Paper Report

On

To Study of mutual fund of trend analysis.

Submitted in the partial fulfillment of requirements for the award of Post Graduate
Diploma in Management
Batch (2020-2022)

Under the Supervision of Submitted by:

Dr. Ruchi Rayat Siddharth Singh

(Dean OSW) 920007

Area Chair HRM

1
 Declaration

I, Siddharth Singh of GNIOT Institute of Management Studies (GIMS), Greater Noida hereby submit
this report in particle fulfillment of the requirement for the award of Post Graduate Diploma in
Management (PGDM) from GIMS, Greater Noida. I declare that the work presented in this report is my
original and is not submitted anywhere else for the award of any other degree/diploma by any other
institution university. To the best of my knowledge and belief, this report contains no material previously
published or written by any other person, except where due reference is made.

(Signature of Student)

Date:

Countersigned:

(Signature of Supervisor)

-----------------------------------------

Dr. Ruchi Rayat (Dean OSW,

Area Chair HRM)

Seal/ Stamp of the Institute

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 Acknowledgements

I offer my sincere thanks and humble regards to GNIOT Institute of Management Studies,
Greater Noida for imparting us very valuable professional training in Post Graduate
Diploma In Management (PGDM).
I pay my gratitude and sincere regards to Dr. Ruchi Rayat my project Guide for giving
me the cream of his knowledge. I am thankful to him as he has been a constant source of
advice, motivation and inspiration. I am also thankful to him/her for giving his
suggestions and encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and
library staff for providing me an opportunity to utilize their resources for the completion
of the project.

I am also thankful to my family and friends for constantly motivating me to complete the
project and providing me an environment, which enhanced my knowledge.

Date: / / 2022
Name: Siddharth Singh
Enroll. No.: 920007
Course: PGDM (V-Trimester)

(Signature of the student)

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 Table of contents

SL. No. Subject Page No.

01 Introduction 6 -13

02 Literature Review 14-17

03 Methodologies 18-26

04 Conclusions, Implications and Recommendations. 27-28

05 References 29-31

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 Chapter- 1

Introduction

If you find it difficult or cumbersome to invest directly in equity share and debt
instrument, you can invest in these financial assets indirectly through a mutual fund. A
mutual fund represents a vehicle for collective investment. When you participate in a
scheme of mutual fund, you become a part-owner of investment held under that scheme.

Till 1986 the unit trust of India was the only mutual fund in India offering a small number
of schemes. As the mutual fund sector was liberalized, new entrants came into the field.
At present, there are about 30 mutual funds offering over 1000 schemes.
In India the following entities are involved in a mutual fund operation the sponsor the
mutual fund, the trustee, the assets management company (AMC), the custodian and the
registrars and transfer agents.

Mutual fund schemes invest in three broad categories of financial assets, stocks, bonds,
and cash.
Stock refers to equity related instruction. Bond are debt instrument that have a maturity of
more than one year, Cash represent bank deposits and debt instrument that have a
maturity of less than one year. Cash represent bank deposits and debt instrument that have
a maturity of less than one year.

Depending on the asset mix, mutual fund schemes are classified into three broad type
equity schemes, hybrid scheme, and debt scheme. Equity scheme invest the bulk of their
corpus, 85-95 percent or even more, in stocks and the balance in cash hybrid scheme, also
referred to as balance schemes, invest in a mix of stock and debt instrument. Debt
schemes invest in bond and cash. Within each of these broad categories, there are several
variant as shown in the accompanying box.

Mutual fund in India is comprehensively regulated under the SEBI (mutual fund)
regulation, 1996. Some of the important provision of this regulation is as follows.

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A mutual fund shall be constituted in the form of a trust executed by the sponsor in favors
of the trustee.
The sponsor or, if so authorized by the trust deed, the trustee shall appoint an asset
management company (AMC).
No scheme shall be launched but the AMC unless it is approved by the trustees and a
copy of the offer document has been field with SEBI.
A Mutual Fund is a trust that pools the savings of several investors who share a common
financial goal.
The money thus collected is then invested in capital market instruments such as shares,
debentures and other securities. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion to the number of
units owned by them. Thus, a Mutual Fund is the most suitable investment for the
common man as it offers an opportunity to invest in a diversified, professionally managed
basket of securities at a relatively low cost.

A Mutual Fund is a body corporate registered with the Securities and Exchange Board of
India (SEBI) that pools up the money from individual/corporate investors and invests the
same on behalf of the investors/unit holders, in Equity shares, Government securities,
Bonds, Call Money Markets etc., and distributes the profits. In the other words, a Mutual
Fund allows investors to indirectly take a position in a basket of assets

Mutual Fund is a mechanism for pooling the resources by issuing units to the investors
and investing funds in securities in accordance with objectives as disclosed in offer
document. Investments in securities are spread among a wide cross-section of industries
and sectors thus the risk is reduced. Diversification reduces the risk because all stocks
may not move in the same direction in the same proportion at same time. Investors of
mutual funds are known as unit holders.

The investors in proportion to their investments share the profits or losses. The mutual
funds normally come out with a number of schemes with different investment objectives
which are launched from time to time. A Mutual Fund is required to be registered with
Securities Exchange Board of India (SEBI) which regulates securities markets before it
can collect funds from the public.

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1.1. Mutual fund in India

Concept of mutual fund entered Indian financial scene way back in 1964 that was famous
unit 64 later earned famed under name of US 64 had a near monopoly status for more than
2 decades. This fund was a public sector closed ended fund that list of fund holdings are
allocation of total assets amongst various assets statements was never known to the
investing public. It was only at economic liberalization process that began after 1991 that
Indian financial sector began opening up. This it was in year 1993 the first privet sector
open-ended mutual fund was launched by the Kothari pioneer asset management
company. This blue chip fund and prima fund (both equity funds) provided first hand of
competition to Unit Trust of India. Suddenly, Indian investor had wide range of invest
opportunity, were not available in pre-reforms era between 1997 to 2001 tremendous
growth of Indian Mutual Fund Industry with number of players increasing and balanced
funds. Between years 1998-2001 boom in Indian stock market was led by InfoTech
companies. Huge project margins saw an unprecedented rise share prices. This was time
when some AMC launched IT sector mutual fund.
SEBI Regulations on Mutual Funds: The Government brought Mutual Funds in the
Securities market under the regulatory framework of the Securities and Exchange board of
India (SEBI) in the year 1993. SEBI issued guidelines in the year 1991 and
comprehensive set of regulations relating to the organization and management of Mutual
Funds in 1993.

1.2. ADVANTAGES AND DISADVENTAGE OF MUTUAL FUND

ADVANTAGES OF MUTUAL FUND:

Portfolio Diversification: Mutual Funds invest in a well-diversified portfolio of

securities which enables investor to hold a diversified investment portfolio (whether the
amount of investment is big or small).
Professional Management: Fund manager undergoes through various research works
and has better investment management skills, which ensure higher returns to the investor
than what he can manage on his own.
Low Transaction Costs: Due to the economies of scale (benefits of larger volumes),
mutual funds pay lesser transaction costs. These benefits are passed on to the investors.
Flexibility: Investors also benefit from the convenience and flexibility offered by Mutual
Funds. Investors can switch their holdings from a debt scheme to an equity scheme and
vice-versa. Option of systematic (at regular intervals) investment and withdrawal is also
offered to the investors in most open-end schemes.
Safety: Mutual Fund industry is part of a well-regulated investment environment where
the interests of the investors are protected by the regulator. All funds are registered with
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SEBI and complete transparency is force

DISADVANTAGES OF MUTUAL FUND

Cost control not in the Hands of an Investor: Investor has to pay investment
management fees and fund distribution costs as a percentage of the value of his
investments (as long as he holds the units), irrespective of the performance of the fund.

No Customized Portfolios: The portfolio of securities in which a fund invests is a

decision taken by the fund manager. Investors have no right to interfere in the decision
making process of a fund manager, which some investors find as a constraint in achieving
their financial objective

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Types of Mutual Fund schemes-

Schemes according to Maturity Period:

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.

Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and repurchase on
a continuous basis. These schemes do not have a fixed maturity period. Investors can
conveniently buy and sell units at Net Asset Value (NAV) related prices which are
declared on a daily basis. The key feature of open-end schemes is liquidity.

Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is
open for subscription only during a specified period at the time of launch of the scheme.
Investors can invest in the scheme at the time of the initial public issue and thereafter they
can buy or sell the units of the scheme on the stock exchanges where the units are listed.
In order to provide an exit route to the investors, some close-ended funds give an option
of selling back the units to the mutual funds NAV related prices. SEBI Regulations
stipulate that at least one of the two exit routes is provided to the investor i.e. either
repurchase facility or through listing on stock exchanges. These mutual funds schemes
disclose NAV generally on weekly basis.

Schemes according to Investment Objective:

A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended
schemes as described earlier. Such schemes may be classified mainly as follows.

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1. Equity Funds: Equity funds are considered to be the more risky funds as compared to
other fund types, but they also provide higher returns than other funds. It is advisable that
an investor looking to invest in an equity fund should invest for long term i.e. for 3 years
or more. There are different types of equity funds each falling into different risk bracket.
In the order of decreasing risk level, there are following types of equity funds:

a) Growth Funds: Growth Funds also invest for capital appreciation (with time
horizon of 3 to 5 years) but they are different from Aggressive Growth Funds in the
sense that they invest in companies that are expected to outperform the market in
the future. Without entirely adopting speculative strategies, Growth Funds invest in
those companies that are expected to post above average earnings in the future.

b) Sector Funds: Equity funds that invest in a particular sector/industry of the market
are known as Sector Funds. The exposure of these funds is limited to a particular
sector (say Information Technology, Auto, Banking, Pharmaceuticals or Fast
Moving Consumer Goods) which is why they are more risky than equity funds that
invest in multiple sectors.

c) Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower

market capitalization than large capitalization companies are called Mid-Cap or
Small-Cap Funds. Market capitalization of Mid-Cap companies is less than that of
big, blue chip companies (less than Rest. 2500 corers but more than Rs. 500 corers)
and Small-Cap companies have market capitalization of less than Rs. 500 corers.
Market Capitalization of a company can be calculated by multiplying the market
Price of the company's share by the total number of its outstanding shares in the
market. The shares of Mid-Cap or Small-Cap Companies are not as liquid as of
Large-Cap Companies which gives rise to volatility in share prices of these
companies and consequently, investment gets risky.

d) Equity Linked Saving Scheme: These funds are well diversified and reduce
sector-specific or company-specific risk. However, like all other funds diversified
equity funds too are exposed to equity market risk. One prominent type of
diversified equity fund in India is Equity Linked Savings Schemes (ELSS). As per
the mandate, a minimum of 90% of investments by ELSS should be in equities at
all times. ELSS investors are eligible to claim deduction from taxable income.

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 e) Dividend Yield Funds: The objective of Equity Income or Dividend Yield Equity
Funds is to generate high recurring income and steady capital appreciation for
investors by investing in those companies, which issue high dividends. Equity
Income or Dividend Yield Equity Funds are generally exposed to the lowest risk
level as compared to other equity funds.

f) Gold Fund: The objective of this fund is accumulating the money at the gold rate
according to the units held by the investors. This is one of the new funds
introduced. Here all the investors will invest for the pool account of mutual fund
and that amount is invested in the gold. And according to the fluctuation of the
rates of gold in the market, fund manager invest when rates are in good rates like
this profit earned from this gold fund is distributed according to the units held by
the investors

2. Debt funds-

Funds that invest in medium to long-term debt instruments issued by private companies,
banks, financial institutions, governments and other entities belonging to various sectors
(like infrastructure companies etc.) are known as Debt / Income Funds. Debt funds are
low risk profile funds that seek to generate fixed current income (and not capital
appreciation) to investors. In order to ensure regular income to investors, debt (or income)
funds distribute large fraction of their surplus to investors. Although debt securities are
generally less risky than equities, they are subject to credit risk (risk of default) by the
issuer at the time of interest or principal payment. To minimize the risk of

Default, debt funds usually invest in securities from issuers who are rated by credit rating
agencies and are considered to be of "Investment Grade". Debt funds that target high
returns are more risky. Based on different investment objectives, there can be following
types of debt funds:

a) Diversified Debt Funds: Debt funds that invest in all securities issued by entities
belonging to all sectors of the market are known as diversified debt funds. The best
feature of diversified debt funds is that investments are properly diversified into all
sectors which results in risk reduction. Any loss incurred, on account of default by
a debt issuer, is shared by all investors which further reduces risk for an individual
investor.

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b) High Yield Debt funds: Understand the risk of default is present in all debt funds, and
therefore, debt funds generally try to minimize the risk of default by investing in
securities issued by only those borrowers who are considered to be of "investment
grade". But, High Yield Debt Funds adopt a different strategy and prefer securities
issued by those issuers who are considered to be of "below investment grade". The
motive behind adopting this sort of risky strategy is to earn higher interest returns from
these issuers. These funds are more volatile and bear higher default risk, although they
may earn at times higher returns for investors.

c) Assured Return Funds: Although it is not necessary that a fund will meet its objectives
or provide assured returns to investors, but there can be funds that come with a lock-in
period and offer assurance of annual returns to investors during the lock-in period. Any
shortfall in returns is suffered by the sponsors or the Asset Management Companies
(AMCs). These funds are generally debt funds and provide investors with a low-risk
investment opportunity.

d) Fixed Term Plan Series: Fixed Term Plan Series usually are closed-end schemes
having short-term maturity period (of less than one year) that offer a series of plans and
issue units to investors at regular intervals. Unlike closed-end funds, fixed term plans are
not listed on the exchanges. Fixed term plan series usually invest in debt / income
schemes and target short-term investors. The objective of fixed term plan schemes is to
gratify investors by generating some expected returns in a short period.

e) Balanced Fund: A balanced fund is one that has a portfolio comprising debt
instruments, convertible securities, and Preference equity shares. Their assets are
generally held in more or less equal proportions between debt/money market securities
and equities. By investing in a mix of this nature, balanced funds seek to attain the
objectives of income, moderate capital appreciation and preservation of capital, and are
ideal for investors with a conservative and long-term orientation.

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 Chapter -2

Literature Review

Any Researchers and writers have done the study on “To Study of mutual fund of trend
analysis.” Where the objectives were completely different on the basis of the needs they
had as on when it got a raised. The researchers hear as viewed all such work on the same,
for the purpose of these study but the objectives of the researcher on this area on
completely different than that of those and the need two is also having variation is it. As
to increase the knowledge on the same by getting some sort of the practiced exposure
Literature on mutual fund performance evaluation is enormous. A few research studies
that have influenced the preparation of this paper substantially are being followed. Sharpe,
William F. (1966) suggested a measure for the evaluation of Mutual fund performance.
Drawing on results obtained in the field of portfolio analysis, economist Jack L.
Treynor’s has suggested a new predictor of mutual fund performance, one that differs
from virtually all those used previously by incorporating the volatility of a fund's return
in a simple yet meaning fulmanner.
Michael C. Jensen (1967) derived a risk-adjusted measure of portfolio
performance (Jensen’s alpha) that estimates how much a manager’s forecasting ability
contributes to fund’s returns. As indicated by Stat man (2000), the e SDAR of a fund
portfolio is the excess return of the portfolio over the return of the benchmark index,
where the portfolio is leveraged to have the benchmark index’s standard deviation.
Narayan Rao, et. al., evaluated performance of Indian mutual funds in a bear market
through relative performance index , risk - return analysis , Treynr sratio , Sharpe
‟ sratio , Sharpe ‟ s measure , Jensen’s measure, and Fame’s measure. The study used 269
open-ended schemes (out of total schemes of 433) for computing

13
Relative performance index. Then after excluding funds whose returns are less than risk-
free returns, 58 schemes are finally used for further analysis. The results of performance
measures suggest that most of mutual fund schemes in the sample of 58were able to
satisfy investor’s expectations by giving excess returns over expected returns based on
both premium for systematic risk and total risk. Bijan Roy, etc. all conducted an empirical
study on conditional performance of Indian mutual funds. This paper measures the
performance of various mutual funds with both unconditional and conditional form of
Treynor ‟ s - Maguey model and Hendrickson - Merton model .The effect of in
cooperating lagged information variables into the evaluation of mutual fund managers ‟
performance is examined in the Indian context. The results suggest that the use of
conditioning lagged information variables improves the performance of mutual fund
schemes, causing alphas to shift towards right and reducing the number of negative timing
coefficients. Mishrl, etal. (2002) measured mutual fund performance using lower partial
moment.
Jack Treynor (1965) developed a methodology for performance evaluation of a mutual
fund that is referred to as reward to volatility measure, which is defined as average excess
return on the portfolio. This is followed by Sharpe (1966) reward to variability measure,
which is average excess return on the portfolio divided by the standard deviation of the
portfolio.
Sharpe (1966) developed a composite measure of performance evaluation and imported
superior performance of 11 funds out of 34 during the period 1944-63.
Michael C. Jensen (1967) conducted an empirical study of mutual funds in the period of
1954- 64 for 115 mutual funds. The results indicate that these funds are not able to predict
security prices well enough to outperform a buy the market and hold policy. The study
ignored the gross management expenses to be free. There was very little evidence that any
individual fund was able to do significantly better than which investors expected from
mere random chance.
Jensen (1968) developed a classic study; an absolute measure of performance based upon
the Capital Asset Pricing Model and reported that mutual funds did not appear to achieve
abnormal performance when transaction costs were taken into account.

14
Fama (1972) developed a methodology for evaluating investment performance of
managed portfolios and suggested that the overall performance could be broken down into
several components.
John McDonald (1974) examined the relationship between the stated fund objectives and
their risks and return attributes. The study concludes that, on an average the fund
managers appeared to keep their portfolios within the stated risk. Some funds in the lower
risk group possessed higher risk than funds in the most risky group.
James R.F. Guy (1978) evaluated the risk-adjusted performance of
UK investment trusts through the application of Sharpe and Jensen measures. The study
concludes that no trust had exhibited superior performance compared to the London Stock
Exchange Index.

Henriksson (1984) reported that mutual fund managers were not able to follow an
investment strategy that successfully times the return on the market portfolio. Again
Henriksson (1984) conclude there is strong evidence that the funds market risk exposures
change in response to the market indicated. But the fund managers were not successful in
timing the market.
Grinblatt and Titman (1989) concludes that some mutual funds consistently realize
abnormal returns by systematically picking stocks that realize positive excess returns.
Richard A. Ippolito (1989) concluded that mutual funds on an aggregate offer superior
returns. But expenses and load charges offset them.
This characterizes the efficient market hypothesis.
Ariff and Johnson (1990) made an important study in Singapore and found that the
performance of Singapore unit trusts spread around the market performance with
approximately half of the funds performing below the market and another half performing
above the market on a risk- adjusted basis.
Cole and IP (1993) investigated the performance of Australian equity trusts. The study
found evidence that portfolio managers were unable to earn overall positive excess risk-
adjusted returns.

15
Vincent A. Warther(1995) in the article entitled “aggregate mutual fund flows and security
returns” concluded that aggregate security returns are highly correlated with concurrent
unexpected cash flows into MFs but unrelated to concurrent expected flows. The study resulted
in an unexpected flow equal to 1 percent of total stock fund assets corresponds to a 5.7 percent
increase in stock price index. Fund flows are correlated with the returns of the securities held by
the funds, but not the returns of other types of securities. The study found an evidence of positive
relation between flows and subsequent returns and evidence of a negative relation between
returns & subsequent flows.
Bansal’s book (1996) “mutual fund management & working” included a descriptive study of
concept of mutual funds, Management of mutual funds, accounting & disclosure standards,
Mutual fund schemes etc.

This study is mainly based on to know perception towards different schemes of mutual fund to
invest.

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 CHAPTER 3
RESEARCH METHODOLOGY

The research methodology applied will be basically descriptive study.

3.1. Objectives

a) SAFETY: Possessing shares in their paper format carries a lot of risks like loss,
misplacing them, damage to the certificates, etc. Dematerialization of shares
eliminates the risk of loss and damage to the securities. The paper certificates also had
high incidences of forgery and theft. As the holdings are now in an electronic format,
it has reduced the threat of forgery and theft.

b) ACCESSIBILITY: A demat account makes equity trading and your shares

accessible. You can trade in securities; view your holdings, transaction history, etc. at
the click of a button. It also makes managing your details easy. You can make changes
to your address, linked phone number, linked bank account, and such other account-
related changes for every company stock all from your demat account.

c) EASE OF TRADING: Earlier, paper certificates had to be sent to the Company or

the Registrar and Transfer authority to change the ownership of shares, which resulted
in delays, additional costs and loss of certificates. With demat accounts; transfer of
shares has become easier. Trading in shares, buying, storing, selling online has
become seamless and streamlined.

d) COST-EFFECTIVE: Stamp duty applicable on transfer of physical shares, which

was a cumbersome process for investors. Dematerialization of shares has eliminated
the stamp duty and reduced all other transactional costs.

e) Number of shares : Earlier, there were multiple restrictions on the selling of shares.
Shareholders could not sell shares in odd lots. Demat Accounts has eliminated those
restrictions.

f) VARIETY OF INVESTMENTS -With the diversification of investment options, a

demat account can store mutual funds, bonds, government securities, Exchange
Traded Funds (ETF), etc.

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3.2. Hypothesis

Associations of Mutual Fund of India do represent the Government of India, the Reserve
Bank of India and other related bodies on matters relating to the Mutual Fund Industry.

a) It develops a team of well qualified and trained Agent distributors. It implements a

program of training and certification for all intermediaries and other engaged in the
mutual fund industry.
b) AMFI undertakes all India awareness program for investors in order to promote proper
understanding of the concept and working of mutual funds.

Concept of Mutual Funds Mutual funds are institutions that collect money from several
sources -individuals or institutions by issuing units, invest them on their behalf with
predetermined investment objectives and manage the same all for a fee. They invest the
money across a range of financial instruments falling into two broad categories – equity and
debt. Individual people and institutions no doubt, can and do invest in equity and debt
instruments by themselves but this requires time and skill on both of which there are
constraints. Mutual funds emerged as professional financial intermediaries bridging the time
and skill constraint.
Organization Structure of a Mutual Fund There are many entities involved and the diagram
below illustrates the organizational set up of a mutual fund The important terms of the figure
are explained as follows: Fund Sponsor: A ‟sponsor” is any person who, acting alone or in
combination with another body corporate, establishes a MF. The sponsor of a fund is similar
to the promoter of a company. In accordance with SEBI Regulations, the sponsor forms a
trust and appoints a Board of Trustees, and also generally appoint anemic as fund manager.

Interval funds combine the characteristics of both open end funds. They can be bought or
redeemed by the investor at predetermined times, say once in six or twelve months. Growth
oriented funds aim at providing capital appreciation. They tend to invest primarily in
equities. Income funds aim at providing regular income to investors. Mutual Fund Industry
Trends the Indian mutual fund industry has come a long way since the formation of the Unit
Trust of India in 1963 by the Government of India and the Reserve Bank of India (RBI).
Currently, there are 44 mutual funds operating in the country with assets under management
(AUM) of Rs 7.13 lakh cr. compared to AUM of around Rs.1 lakh cr. as of December 2001.

However, the quantum of mutual fund assets in financial savings is very low - at less than
5%, as most Indian savings are locked in bank fixed deposits, small savings (postal savings)
and insurance. With growing disposable incomes, rising inflation (cost ofliving), improving
lifestyles and growing aspirations, there is a noticeable shift in preference for mutual funds
though it has still a long way to go. Break-up of financial savings * Equity market includes
18
 mutual fund investments Source: Reserve Bank of India Key industry trends and gaps
Systematic Investment Planning (SIP) SIP is similar to a Recurring Deposit. Every month on
a specified date an amount you choose is invested in a mutual fund scheme of your choice.
The dates currently available for SIPs are the 5th, 10th, 15th, 20th and the 25th off month.
There are many benefits of investing through.

3.3 Research Design:

A research design is a systematic approach that a researcher uses to conduct a scientific

study. It is the overall synchronization of identified components and data resulting in a
plausible outcome. To conclusively come up with an authentic and accurate result, the
research design should follow a strategic methodology, in line with the type of research.

a) Exploratory Research: Just as the word implies, it explores, that is to find out about
something by answering the question in “what” or “How” manner.

b) Descriptive Research: This is more in-depth research, that answered the question
what and mutual fund.

c) Explanatory Research: This seeks to explain the subject matter being researched and
tries to answer the question what, how and why.

d) Evaluation Research: This is quite extensive as it measures the effectiveness of a

program.

e) Descriptive design research: As the name implies, it is intended to describe the

present status of this type of design does not require a hypothesis to begin with. These
analyses are generated from existing data.

f) Correlational design research: This seeks to discover If two variables are associated
or related in some way, using statistical analysis, while observing the variable.

g) Experimental design research: This is a method used to establish a cause and effect
relationship between two variables or among a group of variables. The independent
variable is manipulated to observe the effect on the depended variable. For example, a
certain group is exposed to a variable and then compared with the group not exposed
to the variable.

19
 Quasi-experimental design research: This experiment is designed just like the
true experimental design, except that it does not use randomized sample groups.
Also, it is used when a typical research design is not practicable.

3.4. Sources of Data

Data has been collected through literature survey and departmental opinion. The
part of data is collected from various primary sources and secondary sources.
Primary and Secondary data

a) PRIMARY METHOD:
Information gathered by feedback forms filled by and interview and
discussions with the customer of various our area.

b) SECONDARY METHOD:
Secondary data is being collected through following methods;
It will be collected through internal and external sources under internate.

3.5. DRAFTING A QUESTIONNAIRE

I am the student of PGDM equivalent t at GNIOT Institute of management studies

Gr. Noida. I am doing work on minor project. And as a part of my curriculum, I
have chosen a project entitled MUTUAL FUND ANALYSIS &TRENDS. For this,
I am interested to getting your valuable, frank, forthright response to the
questionnaire that follows.
There is no right or wrong to question/statement that follows the questionnaire.
Only the required for your valuable advice for this project. The response will be
used for academic purpose only.
Thanking you
Yours truly

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3.6. Objective

1. How many people know about mutual fund according to age and gender?

2. According to age and gender how many people invested in which type
investment scenario?

3. According to age and gender how many people associated a risk with mutual
fund?

4. On the basis of risk how much time people want hold their investment.

3.7. DATA PRESENTATION

1. How many people know about mutual fund according to age and
gender?

Gender * Do you know about Mutual Scheme? Cross tabulation

Count

Do you know about Mutual

Scheme?

No Yes Total

Gender Female 3 15 18

male 0 10 10
Total 3 25 28

Chi-Square Tests

Asymp. Sig. (2- Exact Sig. (2- Exact Sig. (1-

Value df sided) sided) sided)
a
Pearson Chi-Square 1.867 1 .172
b
Continuity Correction .531 1 .466
Likelihood Ratio 2.848 1 .091
Fisher's Exact Test .533 .249
N of Valid Cases 28

a. 2 cells (50.0%) have expected count less than 5. The minimum expected count is 1.07.
b. Computed only for a 2x2 table

21
 2. According to age and gender how many people invested in which type
investment scenario?

Age * Most preferable investment scenario. Cross tabulation

Count

Most preferable investment scenario.

Bank Fixed Deposit Mutual Fund Real Estate Total

Age 18-22 4 2 7 1 14

22-25 1 1 8 0 10

26-30 0 0 4 0 4
Total 5 3 19 1 28

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)
a
Pearson Chi-Square 5.044 6 .538
Likelihood Ratio 6.460 6 .374
N of Valid Cases 28

a. 10 cells (83.3%) have expected count less than 5. The

minimum expected count is .14.
b.

22
 3. According to age and gender how many people associated a risk with
mutual fund?

Gender * How do you rate the risks associated with Mutual Funds? Cross
tabulation
Count

How do you rate the risks associated with Mutual

Funds?

High Low Moderate Total

Gender Female 0 7 11 18

male 2 1 7 10
Total 2 8 18 28

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)
a
Pearson Chi-Square 5.557 2 .062
Likelihood Ratio 6.413 2 .040
N of Valid Cases 28

23
a. 3 cells (50.0%) have expected count less than 5. The minimum
expected count is .71.

4. On the basis of risk how much time people want hold their investment.

How long would you like to hold your Mutual Funds' Investments? * How do you rate the risks associated with
Mutual Funds? Cross tabulation
Count

How do you rate the risks associated with Mutual

Funds?

High Low Moderate Total

How long would you like to 1 to 3 Years 0 2 13 15

hold your Mutual Funds' 4 to 6 years 0 3 3 6
Investments? 7 to 10 years 1 0 1 2

More than 10 year 1 3 1 5

Total 2 8 18 28

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 Chi-Square Tests

Asymp. Sig. (2-

Value df sided)
a
Pearson Chi-Square 15.231 6 .019
Likelihood Ratio 14.133 6 .028
N of Valid Cases 28

a. 11 cells (91.7%) have expected count less than 5. The minimum

expected count is .14.

25
 Chapter 4

4.1. Conclusion

The study on mutual fund trend analysis”. From the study it can be concluded that
most of the investors are aware of the mutual fund.
It can be conclude that the mutual fund is still in infant stage. The growth is still
vast. Since Indian investors are very sensitive towards investing in high risk funds.
Investment in mutual funds is still not reached into the hands of all investors. Most
of the investors are not having a clear picture of the mutual fund’s benefits. But
this trend is slowing down in a gradual process.
More and more investors are showing much interest towards the mutual funds the
coming year is going to be ruled by the mutual funds.
In India, mutual funds have a lot of potential to grow. Mutual funds companies
have to create and market innovative products and frame distinct marketing
strategies. Product innovation will be one of the key determinants of success. The
mutual fund industry has to bring many innovative concepts such as high yield
bond funds, principal protected funds, long short funds, arbitrate funds, dynamic
funds, precious metal funds, and so on. The penetration of mutual funds can be
increased through investor’s education, providing investor oriented value-added
service, and innovative distribution channels.

Mutual funds have failed during the bearish market conditions. To sell successfully
during the bear market, there is a need to educate investors about risk-adjusted
return and total portfolio return to enable them to take informed decision. Mutual
funds need to develop a wide distribution network to increase its reach and tap
investments from all corners and segments. Increased use of Internet and
development of alternative channels such as financial advisors can play a vital role.
Increasing the penetration of mutual funds. Mutual funds have come a long way,
but a lot more can be done.

26
4.2. Recommendation

 The institute should try to create awareness of the new product and new
schemes of the existing products as some of the respondents are unaware of
new scheme and new products. So seminar, presentations participating in
fairs and exhibition, hosting local events prove to be the best way for
promoting itself.
 As print media is very popular among the Gov. Employees. So the bank
should try to use this media to create awareness of its existence and about
the new product available in the market.
 Free consultation counters should be provided in the bank. So as to attract
more customers and also to build good customer relations, this is key to
success.
 The bank should first try to introduce its products and services to the
consultants of the city. So that many later suggestions the same clients. The
bank can also influence these consultants by giving them its franchise.
 Excellent advertisement can be entertained so that people will get interest in
Mutual Fund.
 Good campaigns can be arranged so that people will know more about
Mutual Fund and will tend to invest in it.
 As the study shows more people are able to take moderate risk so this time
the company should promote risk products in to the market.

27
 BIBLIOGRAPHY
Books Referred:

S.Anand and Dr. V. Murugaiah, Mutual Funds in India, JIMS 8M, September 2004
Cooper and Schindler, Business Research Methods, eighth edition
Frank K. Reilly and Keith C. Brown, Investment Analysis and Portfolio
Management

Websites:

https://www.ascent-online.com
www.amfiindia.com
www.mutualfundsindia.com
www.mutualfundanalysis.com
www.investsmartindia.com
www.personalfn.com
www.finance.yahoo.com

28
 Appendices

Instruction for respondent:-

Name: - ………………………..

Age: - ………………………..

Gender: - ………………………..

QUESTIONNAIRE:-

Q1. Do you know about Mutual Scheme?

A. Yes
B. No

Q2. Most preferable investment scenario.

A. Bank
B. Fixed deposit
C. Mutual funds
D. Real estate

Q3. What is the basic purpose of your investment?

A. Liquidity
B. Return
C. Tax benefits
D. Risk covering

Q4. Awareness related to Mutual Fund.

A. Yes
B. No
C. Little bit
29
Q5. Which Mutual Fund Plan do you consider the best?

A. Balanced Plan
B. Equity Plans
C. Income Plans
D. Other

Q6. How long would you like to hold your Mutual Funds' Investments?

A. 1 to 3 Years
B. 4 to 6 years
C. 7 to 10 years
D. More than 10 year

Q7. How do you rate the risks associated with Mutual Funds?

A. Low
B. Moderate
C. High.

30