MINI PROJECT REPORT SUSHANT 1 Final 47

Sanjay Ghodawat University, Kolhapur Mini Project
Report
1.1 INTRODUCTION
Different investment avenues are available to investors. Mutual funds also offer
good investment opportunities to the investors. Like all investments, they also carry
certain risks. The investors should compare the risks and expected yields after
adjustment of tax on various instruments while taking investment decisions. The
investors may seek advice from experts and consultants including agents and
distributors of mutual funds schemes while making investment decisions. With an
objective to make the investors aware of functioning of mutual funds, an attempt has
been made to provide information in question-answer format which may help the
investors in taking investment decisions.
A Mutual fund is a common pool of money into which investors place their
contributions that are to be invested in accordance with a stated objective. The
ownership of the fund is thus joint or "Mutual"; the fund belongs to all investors.
In this project we are gone to know the customers awareness about the mutual fund
and how customers are investing their funds in the different investment like equity
market, fixed deposit, insurance etc.
Secondly to know how the customers are investing Online, Offline or Cheque mode
and how frequently the customers are doing the transaction.
Then we find out the awareness of the different mutual funds. How they got sources
information. finding how much money invested, duration of investment, objective of
saving investment etc.
Next, project under taken to find finding risk of investing, expected return.
Investors Facing any problem while investing in Mutual Fund & also find out done to
finding level of satisfaction of investors in mutual fund.
School of Commerce and Management Page 1

Report
The flow chart below describes broadly the working of a Mutual fund:

Report
1.2 Literature Review

Study by Laukkanen (2006) explains that varied attributes present in a product or service
facilitate customer’s achievement of desired end state and the indicative facts of study show
that electronic services create value for customers in service consumption.
Gil-Bago, Javier Pablo (2009) have examined the market for equity mutual funds and found
that Funds with worse before-fee performance charge higher fees and that better fund
governance may bring fees more in line with performance.
Singh and Jha (2009) conducted a study on awareness acceptability of mutual funds and
found that consumers basically prefer mutual fund due to return potential, liquidity and safety
and they were not totally aware about the systematic investment plan. The investors‟ will also
consider various factors before investing in mutual fund.
Chen, Kraft Weiss (2011) have tested mutual funds that engage in tax planning and how do
they respond to changes in the capital gains tax rates was investigated. It was found that there
was consistency with tax planning by managers of both open-end and closed-end mutual fund
and mutual fund managers may not tax plan like individuals because fund managers have
incentives to consider the tax liability of both current and potential investors.
Vipin Kumar & Preet Bansal (2014) this research paper has focused attention on various
parameters that highlights investor’s perception on mutual funds. It was studied that the
scheme of mutual fund investment was not known to many of the investors as still the
investors rely upon the traditional pattern of investments like investment in banks and
investment in postal savings. As most of the mutual fund investors used to invest in mutual
fund for not more than three years and used to quit from the fund as they were not giving
desired result as stated in the objective during inception of mutual fund scheme. It was also
found from the research that maximum number of mutual fund investors has to depend upon
Report
their brokers and agent to invest in mutual fund.
Subramanya PR (2015) The research has been studied on socio economic factors like age,
gender, education income and savings of investor’s perception towards mutual fund is not
encouraging but the age of investor’s and saving habit of the respondent is closely correlate
Study by Laukkanen (2006) explains that varied attributes present in a product or service
facilitate customer’s achievement of desired end state and the indicative facts of study show
that electronic services create value for customers in service consumption
D. Senthil and Dr. M. Syed Zafar (2005) had published an article “Mutual FundInvestor’s
Perceptions and realities”. The main aim of the study is to find out the investor’s perception
and realities in the current scenario and measure extend of satisfaction derived by customer
towards the performance of mutual fund and willingness to invest in future despite the
current prevailing condition of the market. The main purpose of the study is to identify the
factors which make them invest and to retain in mutual fund. The study says that investors
prefer mutual fund than share because high risk is associated with shares.
Sanjay. Bhavani and Vishal. Patidar (2006) during the period Mutual Fund can increase
in domestic saving and improve the deployment of investment through market. The main
scope of the study is performed top five schemes are balanced fund scheme, Gilt fund
scheme, Liquid Money Market fund scheme, Income fund scheme, Equity diversified fund
scheme, Tax planning fund scheme.

Report
1.3Types Of Mutual Funds Scheme

I) By Structure:
The Mutual fund is classified into open ended and close-ended scheme based upon the
maturity period.
1. 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 at Net asset value (NAV)
related prices, which are declared on daily basis. The Key feature of open-ended
schemes is liquidity.
2. 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 initial public issue and thereafter they can buy or sell the units of the
schemes on the stock exchanges where the units are listed. SEBI regulations stipulate
that at least one of the two exit routes is provided to the investors i.e., either repurchase
facility or through listing on stock exchanges. These mutual funds schemes disclose
NAV generally on weekly basis.
II) By Investment Objective: This scheme can be classified into income, growth
or balanced scheme based upon the investment type.
1. Growth/Equity Oriented scheme: The aim of growth funds is to provide capital

appreciation over the medium to long term. Such schemes normally invest a major part
of their corpus in equities. Such funds have comparatively high risks. These schemes
provide different option to the investors like dividend option, capital appreciation. The

Report
investors must indicate the option in the application form. The mutual funds also allow
the investors to change the options at a later date. Growth schemes are good for
investors having a long-term outlook seeking appreciation over a period of time.
2. Income/Debt Oriented Scheme: The aim of the income funds is to provide regular
and steady income to investors. Such schemes generally invest in fixed income
securities such as bonds, corporate, debentures, Government securities and money
market instruments. Such funds are less risky compared to equity schemes. The NAV of
such funds are affected because of change in interest rates in the country. If the interest
rates fall, NAV of such funds are likely to increase in the short run and vice versa.
3. Balanced fund: The aim balanced funds is to provide both growth and regular
income as such schemes invest both in equities and fixed income securities in the
proportion indicated in their offer documents. These appropriate for investors looking
for moderate growth.
4. Money Market or liquid fund: These funds are also income funds and their aim
is to provide easy liquidity, preservation of capital and moderate income. These
schemes invest exclusively in safer short-term instruments such as treasury bills,
certificates of deposit, commercial paper and inter-bank call money, government
securities etc. Returns on these schemes fluctuate much less compared to other
funds. These
5. Gilt Funds: These funds invest exclusively in government securities. Government

securities have no default risk. NAVs of these schemes also fluctuate due to change
in the interest rates and other economic factors as in case with income or debt
oriented.
6. Index Funds: Index Funds replicate the portfolio of a particular index such as the
BSE sensitive index, S & P NSE 50 indexes (Nifty), etc. These schemes invest in the
securities in the same weightage comprising of an index. NAV of such schemes would
fall or rise with fall or rise in the Index, though not exactly by the same percentage due
to some factors known as “Tracking error”. There are also exchange traded index funds

Report
launched by the mutual funds, which are traded on the stock exchanges.
7. Tax savings Funds: These schemes offer tax rebate to the investors under specific
provisions of the Income tax Act 1961 as the government offers tax incentives for
investment in specified avenues e.g., Equity Linked Savings Schemes (ELSS) and
Pension Schemes. These schemes are growth oriented and invest pre-dominantly in
equities. Their growth opportunity and risks associated are like any equity-oriented
scheme.
8. Sector Specific funds: These funds invest in the securities of only those sectors or
industries specified in the offer document e.g., Pharmaceuticals, IT, Fast moving
Consumer goods (FMCG) etc. The returns in these funds are dependent on the
performance of the respective sectors. They are riskier compared to diversified funds.

Report
1.4 ADVANTEGES OF MUTUAL FUND INVESTMENTS
1.Diversification: Investments are spread across a wide cross-section of industries and

sectors and so the risk is reduced. Diversification reduces the risk because all stocks
don’t move in the same direction at the same time. One can achieve this diversification
through a Mutual Fund with far less money than one can on his own.
2.Professional Management: Mutual Funds employ the services of skilled professionals

who have years of experience to back them up. They use intensive research techniques to
analyse each investment option for the potential of returns along with their risk levels to
come upwiththefiguresforperformancethatdeterminethesuitabilityofanypotentialinvestment.
3.Return Potential: Returns in the mutual funds are generally better than any other option
in any other avenue over a reasonable period of time. People can pick their investment
horizon and stay put in the chosen fund for the duration. Equity funds can outperform most
other investments over long periods by placing long-term calls on fundamentally good
stocks. The debt funds too will outperform other options such as banks. Though they are
affected by the interest rate risk in general, the returns generated are more as they pick
securities with different duration that have different yields and so are able to increase the
overall returns from the portfolio.
4.Liquidity: Fixed deposits with companies or in banks are usually not withdrawn
premature because there is a penal clause attached to it. The investors can withdraw or
redeem money at the Net Asset Value related prices in the open-end schemes. In closed-
Report
end schemes, the units can be transacted at the prevailing market price on a stock
exchange. Mutual funds also provide the facility of direct repurchase at NAV related
prices. The market prices of these schemes are dependent on the NAVs of funds and may
trade at more than NAV (known as Premium) or less than NAV (known as Discount)
depending on the expected future trend of NAV which in turn is linked to general market
conditions. withdrawn anytime, without much reduction in yield. Some mutual funds
however, charge exit loads for withdrawal within a period linked to.
Mutual funds also provide the facility of direct repurchase at NAV related prices. The
market prices of these schemes are dependent on the NAVs of funds and may trade at
more than NAV (known as Premium) or less than NAV (known as Discount) depending
on the expected future trend of NAV which in turn is linked to general market conditions.
5.Well Regulated: Unlike the company fixed deposits, where there is little control with the
investment being considered as unsecured debt from the legal point of view, the Mutual
Fund industry is very well regulated. All investments have to be accounted for; decisions
judiciously taken. SEBI acts as a true watchdog in this case and can impose penalties on the
AMCs at fault. The regulations, designed to protect the investors’ interests are also
implemented effectively.
6.Transparency: Being under a regulatory framework, mutual funds have to disclose their
holdings, investment pattern and all the information that can be considered as material,
before all investors. This means that the investment strategy, outlooks of the market and
scheme related details are disclosed with reasonable frequency to ensure that transparency
exists in the system. This is unlike any other investment option in India where the investor
knows nothing as nothing is disclosed.
7.Flexible: Mutual Funds offer a relatively less expensive way to invest when compared to
other avenues such as capital market operations. The fee in terms of brokerages, custodial
fees and other management fees are substantially lower than other options and are directly
Report
linked to the performance of the scheme. Investment in mutual funds also offers a lot of
flexibility with features such as regular investment plans, regular withdrawal plans and
dividend reinvestment plans enabling systematic investment or withdrawal of funds. Even
the investors, who could otherwise not enter stock markets with low investible funds, can
benefit from a portfolio comprising of high-priced stocks because they are purchased from
pooled funds.
8. Tax Saving: The investment in mutual funds designated as Equity Linked Saving Scheme
(ELSS) qualifies for rebate under section 88. The maximum amount that can be invested in
these schemes is Rs.10, 000, therefore the maximum tax benefit available works out to
Rs.2000. Apart from ELSS schemes, the benefit of Section 88 is also available in select
schemes of some funds such as UTI ULIP, Pension Plans, and Unit linked insurance schemes
etc. The investor in a mutual fund is exempt from paying any tax on the dividend received by
him from the mutual fund, irrespective of the type of the mutual fund. This benefit is available
under section 10(33) of the I.T. Act. The units of mutual funds are treated as capital assets and
the investor has to pay capital gains tax on the sale proceeds of mutual fund units sold by him.
For investments held for less than one year the tax is equal to 30% of the capital gain. For
investments held for more than one year, the tax is equal to 10% of the capital gains. The
investor is entitled to indexation benefit while computing capital gains tax. Some schemes
also offered the benefit of section 54EA and 54EB to the investors.
9.Choice of Schemes: Mutual funds offer a family of schemes to suit your varying needs
over life.

Report
1.5 SCOPE OF MUTUAL FUND

Scope of mutual fund has grown enormously over the years. In the first age of mutual funds when
investment management companies started to offer mutual funds, choices were few. Even through
people invested their money in mutual funds as these funds offered them diversified investment
option for the first time. By investing in these funds, they were able to diversify their investment in
common stocks, preferred stocks, bonds and other financial securities. At the same time, they also
enjoyed the advantage of liquidity. With mutual funds, they got the scope of easy access to their
invested funds on requirement.
But in today’s world, scope of mutual funds has become so wide, that people sometimes take
long time to decide the mutual fund type, they are going to invest in several investment
management companies have emerged over the years who offer various types of mutual funds.
Each type carrying unique characteristics and different beneficial features.
To understand the board scope of mutual funds we need to discuss the main types of mutual
funds that are normally offered by the mutual companies.

Report
1.6 LIMITATIOM
Limitations of the Study
 All factors affecting customers could not be studied due to time constraints.
 Sample size used for the survey is small due to the Covid -19 pandemic.
 The lack of information sources for the analysis part.
 The data provided by the prospects may not be 100% correct as they to have their imitation.
 The study is limited to selected mutual fund schemes.

Report
2.1Research Methodology
Primary sources for data collection will be used for the present study. A reconnaissance
survey will be made of the selected respondents to get acquainted with the factors behind to
start analysis. On the basis of the information gathered, a well-designed pretested interview
schedule will be drafted and used in the field survey to collect primary data, before
undertaking the main survey a tentative.
Primary data: Data will be collected from the respondents by administering a

questionnaire through the interview technique.
Secondary Data: Secondary data will be collected from websites, journals, magazines,
brochures and newspapers to augment the findings of the research project.
Measurement Technique: Questionnaire Method.
Sampling Units: Kolhapur City.
Sample Size:57
Sampling Method: The sampling method, which was used, is Stratified Random
sampling. The samples have been selected randomly from the customers of Different Bank
Branches Kolhapur.

Report
2.2 Need for the study

This study is to know the customer awareness about the mutual fund and how customers
are investing their funds in the different investment like equity market, fixed deposit,
insurance etc. Secondly to know how the customer are investing online or offline mode and
how frequently the customers are doing online transaction.
2.3 RESEARCH OBJECTIVE

The main objective of the study is: --
 To know why one has invested or not interested in mutual fund.
 To find out the investor preference for asset management company.
 To find out most preferred channel.
 To understand the preference for the portfolios.

Report
2.4Research Definition: -
The word research is derived from the Latin word meaning to know. It is a systematic
and a replicable process, which identifies and defines problems, within specified
boundaries. It employs well-designed method to collect the data and analyses the
results. It disseminates the findings to contribute to generalize able knowledge. The
main characteristics of research presented below are:
 Collecting, organizing and evaluating data.

 Logical, so procedures can be duplicated or understood bothers.
 Empirical, so decisions are based on data collected.
 Reductive, so it investigates a small sample which can be
generalized to a larger population.
 Replicable, so others may test the findings by repeating it.
 Discovering new facts or verify and test old facts.
 Developing new scientific tools, concepts and theories, this would
facilitate to take decision.
For the proper analysis of data simple statistical techniques such as percentage were
use. It helps in making more generalization from the data available. The data which
will be collected
fromasampleofpopulationwasassumedtoberepresentingentirepopulationwasinterest.
Demographic factors like age, income and educational background were used for the
classification purpose.

Report
2.5TYPES OF DATA:
There are two types of Data:
Primary Data: -
Primary data is the specific information collected by the person who is doing the
research. It can be obtained through clinical trials, case studies, true experiments and
randomized controlled studies. This information can be analyzed by other experts
who may decide to test the validity of data by repeating the same experiments.
Secondary Data: -
Secondary data is data collected by someone other than user. Common sources of
secondary data for social science include censuses, surveys, organizational records and
data collected through qualitative methodologies or qualitative research. Secondary
data analysis saves time that would otherwise be spent collecting data and, particularly
in the case of quantitative data, provides larger and higher-quality databases than
would be unfeasible for any individual researcher to collect on their own.

Report
2.6 SWOT ANALYSIS
STRENGHTH
Well-qualified and experienced fund managers manage the pool of money collected by a
mutual fund. They thoroughly analyse the markets and economy to find out the good
investment opportunities. Hence, investors need not worry about their investment in mutual
funds. They can buy units from the various schemes of mutual funds by mail or phone or even
through Internet. Mutual funds help investors reap the benefits of returns by a portfolio spread
across a wide spectrum of companies with small investments. Such a spread would not have
been possible without their assistance of professional fund management.
Furthermore, there are innumerable schemes available in the market so that investors can
switch over to another scheme suitable to their investment when the stock market condition is
weak. Just like an individual stock, mutual funds help the investors liquidate their position in
the market without experiencing any problems.
.
Weakness
Some schemes introduced by mutual funds do not receive proper attention of the investors.
Performance of some mutual funds is not dynamic enough to explore the available opportunity
in the market. Therefore, investors themselves can pick up some schemes available in the
market, using their little amount of knowledge in mutual funds.
The biggest income of AMC (Asset Management Company) comes from the exit load.
AMC charge unreasonable amount for exit load from investors at the time of sale of mutual
fund units. Besides, mutual fund industries are charging extra cost under the different names.
Most of the mutual funds have smallholdings across the different companies. Thus, high
return from a few investments will not make much different on overall return.
Report
Mutual fund will not give a guaranteed return to investors like many other investment
products in the financial market. These are also possibility for depreciation of the value in the
mutual fund. Unlike fixed income products such as bonds and treasury bills, mutual fund
experience price fluctuation along with the stock. While deciding on a particular fund to
investment, the investors should undertake research to find out the risks involved in mutual
funds.
Opportunity
In most of the developed countries, total assets under management ranges from 30% to 60%
of the GDP.5 In the case of USA and UK, 50% and 17% of investors hold mutual funds
respectively.6 But, mutual funds accounts only 0.73% in India. Moreover, total assets under
management are only 8% of the GDP and 6.7% of the households in India.7 Hence, mutual
funds should introduce new schemes attracting the large number of investors with a view to
increasing their share in GDP and also in households.
Threat
There is intensive competition among mutual fund operators. The entry of Multinational
Corporation is also a great threat to the mutual fund operation. Retail investors have lack of
awareness over the mutual funds. One of the major factors impeding the growth of mutual
fund industry is the absence of regulation in the distribution of mutual funds. Mutual fund
investors seek the help of distributors who are ready to inform them of the efficiency of
distribution for a particular risk profile and stages in life cycle.
Lack of awareness among distributors and absence of any disclosures from distributors will
be difficult to sell the mutual fund products to investors. Mutual fund operators are unable to
penetrate in rural areas. Roughly 3% rural people own mutual funds in India.9 Distribution of
mutual fund in some centres of India by fund managers is very expensive.

Report
1)Gender
Table 3.1
Gender Frequency Percent
Male 39 68.4
Female 18 31.6
Total 57 100
Graph 3.1
INTERPRETATION
From above table we can state that Male = 68.4% & Female = 31.6%
Thus, majority of responds are Male.

Report
2) Material Status
Table 3.2
Material Status Frequency Percent
Married 42 73.7
Unmarried 15 26.3
Total 57 100
Graph 3.2
INTERPRETATION
From above table we can state that married= 73.7%& Female = 26.3%
Thus, majority of responds are Married.

Report
3)Occupation
Table 3.3
PARTICULAR Frequency Percent
Self Employed 13 22.8

Business 18 31.6
Salaried 18 31.6
Retired 8 14
Total 57 100
Graph 3.3
INTERPRITATION
After analysing all the data can say service and business people are more about mutual fund.
Self-employed and retired people are not more aware about the mutual fund.

Report
4)Annual Income
Table 3.4
PARTICULAR Frequency Percent

UP to RS -100000 5 8.8
Rs 100001-300000 15 26.3
Rs 300001-500000 22 38.6
Above 1000000 15 26.3
Total 57 100
Graph 3.4
INTERPRETATION
For the above data and chart, we can analyse choice of the people in purchasing
mutual fund as per their income level People having annual income of 300000-500000
prefer mutual fund.

Report
5) Are you aware about mutual fund?
Table 3.5
Particular Frequency Percent
Yes 51 89.5
No 6 10.5
Total 57 100
Graph 3.5
INTERPRETATION
In the above table we can see that 89.5%People are aware about mutual fund & only 10.5%
people are not aware about mutual fund.

Report
6) If aware please mention the name of the mutual fund.

Table 3.6
ICICI 9 16.4
SBI 14 25.5
HDFC 15 27.3
IDFC 5 9.1
TATA 6 10.9
Any Other 5 9.1
Total 57 100
Graph 3.6
INTERPRETATION
In the above data mostly the people HDFC & SBI Mutual fund is more use. The Any other
and IDFC mutual fund is less use.

Report
7)What is the mode of payments?

Table 3.7
Cash 34 61.8
Cheque 21 38.2
Total 55 100
Graph 3.7
INTERPRETATION
The ratio of the people using cash mode is higher than cheque mode in payment option.

Report
8)How do you get the sources information about mutual fund?
Table 3.8
Broker 17 30.9
Relatives 18 32.7
Advertisement 19 34.5
Annual Report 1 1.8
Total 55 100
Graph 3.8
INTERPRETATION
The above table and chart we can see that the lots of people aware about mutual fund from the
Advertisement, Broker &Relatives and only 1.8% people aware about the annual report.

Report
9) How do you purchase of mutual fund ?

Table 3.9
Online 13 23.6
Through Broker 29 52.7
Through Bank Bencher 13 23.6
Total 55 100
Graph 3.9
INTERPRETATION
Out of all responds 52.7% responds are purchase the mutual fund through broker and
remaining 47.6 responds are purchase the mutual fund through online & through the bank.

Report
10) How did you invest in mutual fund ?

Table 3.10
Direct 16 29.1
Broker 20 36.4
Through Agent 16 29.1
Any Other 3 5.5
Total 55 100
Graph 3.10
INTERPRETATION
The above table & graph shows the 36.4 % of investors invest in mutual fund through the
Broker and the investors are invest in mutual fund through Agent & Direct are same is 29.1 %
& only 5.5 % investors are invested through the any other mode in mutual fund.

Report
11)In which type of fund or scheme you have invested in mutual fund ?
Table 3.11
Equity Fund 10 18.2

Index Fund 10 18.2
Balanced Fund 13 23.6
Income Fund 11 20
Tax Saving 11 20
Any Other 0 0
Total 55 100
Graph 3.11
INTERPRETATION
As per the Above chart &graph the maximum investors preferred Balanced Fund scheme,
Always Equity fund scheme & Index fund scheme both preferred by same (18.2%), Also
Income Fund & Tax Saving Fund scheme are also same preferred (20%) &No any investors
preferred any other scheme in Mutual Fund.

Report
12)How much money you have invested in mutual fund?

Table 3.12
Less than Rs 5000 4 7.3

Rs 5001-10000 10 18.2
Rs 10001-20000 19 34.5
Rs 20001-40000 9 16.4
Above Rs 40000 13 23.6
Total 55 100
Graph 3.12
INTERPRETATION
The 34.5 % investors are invested Rs 10001-20000.The 23.6 % investors are invested above
Rs 40000 .18.2% are invest between 5001-10000 & 16.4 % investors invest between 20001-
40000 & only 7.3 % investors invest less than Rs 5000 in Mutual Fund.

Report
13) What is your Preference of saving avenue?

Table 3.13
Bank Deposit 11 20
Gold 10 18.2
Real Estate 8 14.5
Mutual Fund 11 20
Insurance 13 23.6
Any Other 2 3.6
Total 55 100
Graph 3.13
INTERPRETATION
Out Of the 55 responds the 13 investors are invested in insurance, 11 invest in the Bank
deposit & Mutual fund ,10 investors prefer to Gold, remaining 8 investors invest in Real
estate. So, most are investors invest in Insurance.

Report
14) What is your duration of investment in mutual funds ?

Table 3.14
Less than 3 Years 12 21.8

3-5 Years 18 32.7
5-10Years 19 34.5
Above 10 Years 6 10.9
Total 55 100
Graph 3.14
INTERPRETATION
Out of 55 investors, 34.5% invest in mutual funds for 5-10 years. This is followed by 32 per
cent investors investing in mutual funds for 3-5 years. Also, the number of investors investing
in mutual Fund for less than 3 Years.

Report
15) What is your objective of saving in investment ?

Table 3.15
For Tax Deduction 22 40

For Children Education 21 38.2
To Provide for Retirement 12 21.8
Total 55 100
Graph 3.15
INTERPRETATION
Above chart & Graph we are finding 40% investors are invested in mutual fund for Tax
deduction ,38.2% investors saving for the children education & remaining 21% investors save
for the retirement.

Report
16) How Often to invest in mutual fund?

Table 3.16
Monthly 7 12.7
Quarterly 14 25.5
Half Yearly 21 38.2
Yearly 13 23.6
Total 55 100
Graph 3.16
INTERPRETATION
As per the above chart & graph 38.2% investors are invested half yearly,25.5% are invested
for Quaterly,23.6% invested Yearly & omul 12.7 % Invested monthly in Mutual Fund.

Report
17) What are the reasons for investing in mutual fund?

Table 3.17
High Return 23 42.6

Low Cost 6 11.1
Liquidity 14 25.9
Safety 7 16.7
Any Other 2 3.7
Total 55 100
Graph 3.17
INTERPRETATION
As per the Survey The maximum investors investing For the purposeof High Return (42.6),
Then the (25.9%) investors investing for Liquidity purpose remaining (16.7%) for Safety,
(11.1%) For the Low cost & only (3.7%) For invested in Any Other purpose.
Report
18)What are you most preferred scheme by investment objectives?

Table 3.18
Growth Scheme 11 20
Income Scheme 16 29.1
Balance Scheme 16 29.1
Index Scheme 7 12.7
Tax Saving 5 9.1
Total 55 100
Graph 3.18
INTERPRETATION
Above chart & Graph in the Income Scheme & Balance Scheme Investors this both schemes
are preferred investors, Then the (20%) preferred Growth scheme, (12.7%) investors preferred
Index Scheme & Remaining (9.1%) Preferred Tax saving purpose in Mutual Fund.
Report
19) What extent of risk you feel that investing mutual fund?
Table 3.19
Low 12 22.2
Medium 29 53.7
High 13 24.1
Total 55 100
Graph 3.19
INTERPRETATION
The most of investors (53.7%) are feel medium risk investing in mutual fund, (24.1%) are feel
medium risk & only (22.2%) are feel Low risk in mutual fund.

Report
20)How much return you have expected while investing in mutual funds?
Table 3.20
Low Return 6 10.9

Moderate Return 28 50.9
High Return 21 38.2
Total 55 100
Graph 3.20
INTERPRETATION
As per the survey (50.9%) investors expected Moderate Return in mutual fund, (38.2%)
expected High Return, (10.9%) investors are expected Low Return in mutual fund.

Report
21)Do you face any problem while investing in mutual fund?

Table 3.21
Yes 16 29.1
No 20 36.4
May Be 19 34.5
Total 55 100
Graph 3.21
INTERPRETATION

Report
As per the above chart & graph (36.4%) investors not facing any problem for investing,
always (34.5%) investors May be facing & (29.1%) investors Facing problem for the investing
in Mutual Fund.
22)Why do you prefer mutual fund?

Table 3.22
More Return 13 23.6

Liquidity 11 20
Tax Benefit 21 38.2
Safety 7 12.7
Profitability 3 5.5
Total 55 100
Graph 3.22

Report
INTERPRETATION
As per the above chart & graph the (38.2%) investors prefer for Tax Benefit Because the most
are investors are business mans, (23.6%) prefer More Return, (20%) investors prefer Liquidity
Fund, (7%) investors prefer Safety Fund & only (5.5%) investors prefer Profitability Fund.
23) What is your level of satisfaction towards investment in mutual funds?
Table 3.23
Very Satisfied 7 12.7

Satisfied 24 43.6
Neutral 18 32.7
Dissatisfied 5 9.1
Very Dissatisfied 1 1.8
Total 55 100
Graph 3.23
Report
INTERPRETATION
As per the graph & chart (43.6%) investors are satisfied in investing in mutual fund, (32.7%)
investors are Neutral % only (9.1%) Dissatisfied investors, & only (1.8%) investors are very
dissatisfied for investing in Mutual Fund.
4.1 FINDINGS
1.Majority investors are male as per Table (3.1), As per the Table 3.2 Maximum investors
are Married.
2.The Business & Salaried investors are more aware about the Mutual Fund as per the Table
(3.3)
3.Most of the investor’s income is Rs 300001-500000 & RS100000-3000000 also Above the
1000000 are investors income is same (Table 3.4)
4.90%Investors are Aware about mutual fund. They also Aware About HDFC, SBI, IDFC, &
Any other Communities investors Pay by the Cheque & Cash mode. (Table 3.5,3.6,3.7)
5.Most of the investors got information through the Advertisement, Relatives & Through
Broker.Approximatley 50% investors purchase through the broker. Lots of investors invest
through the Agent. (Table 3.8,3.9,3.10)
6.Maximum people Invest in Balance Fund Scheme & also they invest in Index, Tax Saving,
Equity & Income fund are the same investors. The investors invest in mutual fund between Rs
20000-40000. (Table 3.11,3.12)
7.Preferance of saving mode of investors is Insurance, Bank Deposit & Mutual Fund. (Table
3.13)
8.The duration of invest in mutual fund is between 3-5 & 5-10 Years. (Table 3.14)
9.Objective of investing of investors are Tax saving & Children’s Education. (Table 3.15)
10.The investors invest Half of yearly &Quarterly, they also invest yearly but low as compare
to other. (Table 3.16)

Report
11.The reason for investing is High Return & Liquidity. Balance scheme & Growth Scheme
are preferred investors. (Table 3.17.3.18)
12.Maximum Investors feel medium risk investing in mutual fund. They expected Moderate &
High Return in Mutual Fund. (Table 3.19,3.20)
13.35% People not face any problem but 39 % Investors face may be facing the problem
investing the mutual fund. (Table 3.21)
14.Investors prefer mutual fund for the Tax Benefit (Table 3.22)
15.More than the 43% investors are satisfied to investing in Mutual fund & Onliy1.8%
investors are very dissatisfied. (Table 3.23)

Report
4.2 Recommendations
Even though the mutual funds are good source of income, the people lack awareness
and information towards mutual funds. So, the following suggestions were made in
order to increase the awareness among the people especially the rural people.
1. The most vital problem spotted is of ignorance. Investors should be made aware
of the benefits. Nobody will invest until and unless he is fully convinced.
2. Investors should be made to realize that ignorance is no longer delight and what
they are losing by not investing.
3. Mutual Funds offer a lot of benefit which no other single option could offer. But
most of the people are not even aware of what actually a Mutual Fund is?
4. They only see it as just another investment option. So, the advisors should try to
change their mindsets.
5. Increase awareness among investors: Many investors are still restricting their
choices to the non-governmental options like gold and fixed deposits even the
market is flooded with countless investment opportunities.
6.This is because of lack of awareness about mutual funds which makes many
investors restrict their choice to traditional options like gold and fixed deposits. So,

Report
awareness relating to mutual funds must be increased among the investors to

encourage them to invest in mutual funds.
7.Mutual Funds Company needs to give the training of the Individual Financial
Advisors about the Funds/Scheme and its objective, because they are the main
source to influence the investors.
8. Before making any investment, Financial Advisors should first enquire about the
risk tolerance of the investors, their need and time (how long they want to invest).
9. By considering these three things they can take the customers into consideration.
10.Younger people aged between 31-40 years will be new customer group into the
future, so making great efforts with younger customers who shows some interest in
investing will pay off.

Report
4.3 CONCLUSION:
The study reveals that the investors perception is dependent on the demographic profile
and assesses that the investor's gender, age, education, marital status occupation, Annual
income and annual savings has direct impact on the investor’s choice of investment. The
study further revealed that Investors' satisfaction is the most important ingredient for the
success of mutual fund industry. The present study explored the MF investments in
relation to investor's level of perception and satisfaction has been studied relating to
various factors like Schemes, Risk and Return, Services, Relationship, Claims,
Grievances, Fund management, NAV Updating, Security, Entry & Exit Load, offer based
on Return , Existing Fund based on, Promptness in giving information Clarification
towards technical doubts, Reminding premium payment, Informing time about default
payment Satisfied with remedial measures.
Mutual funds are good source of returns for majority of households and it is particularly useful
for the people who are at the age of retirement. However, average investors are still restricting
their choices to conventional options like gold and fixed deposits when the market is flooded
with countless investment opportunities, with mutual funds. This is because of lack of
information about how mutual funds work, which makes many investors hesitant towards
mutual fund investments. In fact, many a times, people investing in mutual funds too are
unclear about how they function and how one can manage them. So, the organizations which
are offering mutual funds have to provide complete information to the prospective investors
relating to mutual funds. The government also has to take some measures to encourage people
Report
to invest in mutual funds even though it is offering schemes like Rajiv Gandhi Equity Savings
Scheme to the investors. It is believed that some of these measures could lift the morale of the
mutual fund industry which has been crippled for the last three years.
ANNEXURE
Questionnaire: -
1. Name: -
2.Gender
a. Male
b. Female
3.Material Status
a. Married
b. Unmarried
4.Occupation
a. Self -employed
Report
b. Business
c. Salaried
d. Retired
5.Annual Income
a. UP to Rs-100000
b. Rs,100001-Rs,300000
c. Rs,300001-Rs,500001
d. Above 1000000
6.Are you aware about mutual fund?
a. Yes
b. No
7.If aware please mention the name of the mutual fund

a. ICICI
b. SBI
c. HDFC
d. IDFC
e. TATA
f. Any Other
8.How do you got the sources information about mutual fund?

a. Broker
b. Relatives
c. Advertisement
d. Annual Reports

Report
9.How do you purchase of mutual fund?

a. Online
b. Through Broker
c. Through bank branches
10.How did you invest in mutual fund?

a. Direct
b. Broker
c. Trough Agent
d. Any Other
11.In which type of fund or scheme you have invested in mutual fund?
a. Equity Fund
b. Index Fund
c. Balanced Fund
d. Income Fund
e. Tax Saving
f. Any Other
12.How much money you have invested in mutual fund?

a. Less than Rs,5000
b. Rs,5001-Rs.10000
c. Rs.10001-Rs.20000
d. Rs.20001-Rs.40000
Report
e. Above Rs. 40000
13.What is the mode of payments?

a. Cash
b. Cheque
14.What is your Preference of saving avenue?

a. Bank Deposit
b. Gold
c. Real Estate
d. Mutual Fund
e. Insurance
f. Any Other
15.What is your duration of investment in mutual funds?

a. Less than 3 years
b. 3-5 years
c. 5-10years
d. Above 10 years
16.What is your objective of saving in investment?

a. For Tax Deduction

Report
b. For Children Education

c. To provide for Retirement
17.How Often to invest in mutual fund?

a. Monthly
b. Quarterly
c. Half Yearly
d. Yearly
18.What are the reasons for investing in mutual fund?

a. High Return
b. Low cost
c. Liquidity
d. Safety
e. Any Other
19.What are you most preferred scheme by investment objectives?

a. Growth Scheme
b. Income Scheme
c. Balance Scheme
d. Index Scheme
e. Tax Saving Scheme
20.What extent of risk you feel that investing mutual fund?

a. Low
b. Medium

Report
c. High
21.How much return you have expected while investing in mutual funds?
a. Low return
b. Moderate return
c. High return
22.How much safety you need while investing in mutual fund?

a. No Safety
b. Low Safety
c. Medium Safety
d. High Safety
23.Do you face any problem while investing in mutual fund?

a. Yes
b. No
c. Maybe
23.Why do you prefer mutual fund?

a. More Return
b. Liquidity
c. Tax benefit

Report
d. Safety
e. Profitability
24.What is your level of satisfaction towards investment in mutual funds?

a. Very satisfied
b. Satisfied
c. Neutral
d. Dissatisfied
e. Very dissatisfied
BIBLOGRAPHY
Book: -
 Work on Mutual Funds byAMFI
 Invest India Mutual Fund Handbook by Uma Shashikant.
 Marketing Research by Donald Tull and Hawkins
 Statistics for Management by Richard I Levin and David. S. Rubin.
 Marketing Research –A. Parasuraman
 Financial Management by M.Y. Khan and P.K. Jain.
 Financial Institutions and Markets (L.M. Bhole)
Website: -
 www.amfiindia.com
 www.aboutMutualfund.com
Report
 www.nseindia.com
 www.moneycontrol.com
 www.valueresearchonline.com

Report

Report

MINI PROJECT REPORT SUSHANT 1 Final 47

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MINI PROJECT REPORT SUSHANT 1 Final 47

Uploaded by

Copyright:

Available Formats

Sanjay Ghodawat University, Kolhapur Mini Project

School of Commerce and Management Page 1

School of Commerce and Management Page 2

1.2 Literature Review

their brokers and agent to invest in mutual fund.

School of Commerce and Management Page 4

1.3Types Of Mutual Funds Scheme

1. Open Ended Fund/Scheme: An Open-ended fund or scheme is one that is available

2. Close Ended Fund/Scheme: A Close Ended fund or scheme has a stipulated

1. Growth/Equity Oriented scheme: The aim of growth funds is to provide capital

School of Commerce and Management Page 5

5. Gilt Funds: These funds invest exclusively in government securities. Government

School of Commerce and Management Page 6

School of Commerce and Management Page 7

1.4 ADVANTEGES OF MUTUAL FUND INVESTMENTS

1.Diversification: Investments are spread across a wide cross-section of industries and

2.Professional Management: Mutual Funds employ the services of skilled professionals

School of Commerce and Management Page 10

1.5 SCOPE OF MUTUAL FUND

School of Commerce and Management Page 11

School of Commerce and Management Page 12

Primary data: Data will be collected from the respondents by administering a

Measurement Technique: Questionnaire Method.

Sampling Units: Kolhapur City.

School of Commerce and Management Page 13

2.2 Need for the study

2.3 RESEARCH OBJECTIVE

 To know why one has invested or not interested in mutual fund.

 To find out the investor preference for asset management company.

 To find out most preferred channel.

 To understand the preference for the portfolios.

School of Commerce and Management Page 14

 Collecting, organizing and evaluating data.

School of Commerce and Management Page 15

There are two types of Data:

School of Commerce and Management Page 16

2.6 SWOT ANALYSIS

School of Commerce and Management Page 18

School of Commerce and Management Page 19

School of Commerce and Management Page 20

Self Employed 13 22.8

School of Commerce and Management Page 21

PARTICULAR Frequency Percent

School of Commerce and Management Page 22

5) Are you aware about mutual fund?

School of Commerce and Management Page 23

6) If aware please mention the name of the mutual fund.

School of Commerce and Management Page 24

7)What is the mode of payments?

School of Commerce and Management Page 25

8)How do you get the sources information about mutual fund?

School of Commerce and Management Page 26

9) How do you purchase of mutual fund ?

School of Commerce and Management Page 27

10) How did you invest in mutual fund ?

School of Commerce and Management Page 28

Equity Fund 10 18.2

School of Commerce and Management Page 29

12)How much money you have invested in mutual fund?

Less than Rs 5000 4 7.3

School of Commerce and Management Page 30

13) What is your Preference of saving avenue?