“PERFORMANCE AND AWARENESS OF MUTUAL FUND”

Introduction:

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at

the initiative of the Government of India and Reserve Bank them. The history of mutual

funds in India can be broadly divided into four distinct phases.

FirstPhase-1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by

the Reserve Bank of India and functioned under the Regulatory and administrative control of

the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial

Development Bank of India (IDBI) took over the regulatory and administrative control in

place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988

UTI had Rs.6,700 crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks

and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India

(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987

followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),

Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund

(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund

in December 1990.

At the end of 1993, the mutual fund industry had assets under management of rs.47,004

crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund

industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year

in which the first Mutual Fund Regulations came into being, under which all mutual funds,

except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged

with Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and

revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI

(Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds

setting up funds in India and also the industry has witnessed several mergers and

acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of

Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under

management were way ahead of other mutual funds.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was

bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of

India with assets under management of Rs.29, 835 crores as at the end of January 2003,

representing broadly, the assets of US 64 scheme, assured return and certain other schemes.

The Specified Undertaking of Unit Trust of India, functioning under an administrator and

under the rules framed by Government of India and does not come under the purview of the

Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is

registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation
of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under

management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual

Fund Regulations, and with recent mergers taking place among different private sector funds,

the mutual fund industry has entered its current phase of consolidation and growth. As at the

end of September 2004, there were 29 funds, which manage assets of Rs.153108 crores under

421 schemes.

The graph indicates the growth of assets over the years.

Figure: Growth in Assets Under Management

Mutual Funds – Organization

There are many entities involved and the diagram below illustrates the organizational set up

of a mutual fund:
 42%
45%
40% 36%
35%
30%
25%
20% 14%
15%
10% 4%
3%
5% 1%
0%

ELSS
Income

Growth

Balanced

Money Market

Gilt
Fund Type

Figure: Assets Under Management By Fund Type

38%
40%
35%
30%
25% 21%
19%
17%
20%
15%
10% 5%
5%
0%
Joint-I
Joint-F
Institutions

Private
Bank

Fund Type

Figure: Assets Under Management By AMC

REGULATORY BODIES

Financial System is basically responsible for the major up and downs in the economy. So,

there are some regulatory bodies on it which ensures effectiveness in the management of

fund of the investors and transparency in the transactions.

Ministry of Finance

SEBI RBI Dept. of IT

Stock Brokers Commercial PAN

R & T Agent Banks TAN

Mutual Fund NBF Co. e-TDS

Figure: Regulatory bodies

PRODUCT DETAILS

Mutual funds serve as a link between the saving people and the capital market in that they

mobilize saving from investors and bring them to borrowers in the capital markets. In short,

it is a common pool of money into which investors place their contribution that is to be

invested in accordance with a stated objective.

A mutual fund uses the money collected from the investors to buy those assets, which are

specially permitted by its stated investment objective. When an investor subscribes to a

mutual fund, he/she buys a part of asset or the pool of funds that are outstanding at that time.
A mutual fund is constituted as an investment company and an investor buys into the fund,

means he buys the share of the fund and is known as a unit holder. Since each unit holder is a

part of owner of a mutual fund, it is necessary to establish the value of his part. Since the unit

held by an investor evidences the ownership of the fund’s assets, the value of the total asset

of the fund when divided by the total number of units issued by the mutual fund gives us the

value of one unit. This is called as Net Asset Value (NAV).

STRUCTURE OF INDIAN MUTUAL FUNDS

Mutual fund industry is highly regulated by the government keeping in view of the protection

of investor’s interest as well as to maintain operational transparency. In India SEBI

Regulations Act, 1996, guides the formation and operation of Mutual Funds. A Mutual Fund

comprises of 4 separate entities.

 Sponsor

 Board of Trusties

 Asset Management Company

 Custodian and Depositories

 Distributors

Sponsor: “Sponsor” is defined under SEBI regulation as any person who, acting alone or in

combination with another body corporate, establishes a mutual fund. The sponsor gets the

fund registered with SEBI. The sponsors form a trust and appoint a Board of Trustees.

The sponsor must contribute at least 40% of the net worth of the AMC.

The sponsor must possess a sound financial track record over 5 years prior to registration.

2. Board of Trustees:
  Mutual funds are managed by Board of Trustees. Trust is created by a document

called the Trust Deed that is executed by fund sponsor in favor of trustees. The

trustees appoint the AMC and custodian with the prior approval of SEBI.

 They also approve all the schemes floated by the AMC.

 They have right to dismiss the AMC, with the approval of SEBI.

 Half of the trustees should be independent persons. Neither the AMC, nor its

employees can act as trustee.

A trustee cannot be appointed as a trustee of two or more mutual funds until and unless he is

an independent person or has permission from the Mutual Fund where he is trustee.

Trustees can be removed only by prior approval of SEBI.

3. Asset Management Company: The role of an AMC is to act as the investment manager

of the Trust under the Board supervision and direction of the Trustees.

 The AMC is required to be approved and registered with SEBI.

 The AMC of a Mutual Fund must have a net worth of at least Rs. 10 crore at all time.

 The AMC can not act as a trustee of any other Mutual Fund.

 They will float schemes only after obtaining the prior approval of the Trustees and

SEBI.

 The director of AMC should be a person of reputed of high standing and at least have

five years’ experience in relevant field.

 AMC can be terminated with 75%-unit holders or majority of trustees.

4. Custodian and Depositories: As per SEBI Regulations Mutual Funds shall have a

custodian who is not any way associated with the AMC. It carries outs the activity of safe

keeping the securities or participating, in any clearing system. The custodian should be
independent from sponsors and AMC and should have a sound track record and adequate

relevant experience.

As Indian capital markets are moving away from having physical certificates to ownership of

these securities in “dematerialized” form with Depository. Mutual Fund’s “dematerialized”

securities are hold by depository participant.

5. Distributors: For a fund to sell units across a wide retail base of individual investors, an

established network of distribution agents is essential. AMCs usually appoint Distributors or

Brokers, who sell units on behalf of the fund. A broker usually acts on behalf of several

mutual funds simultaneously and may have several sub-brokers under him for the purpose of

distribution of units.

MUTUAL FUND – A GLOBALLY PROVEN INVESTMENT

Worldwide, the mutual fund has a long and successful history. The popularity of mutual fund

has increased manifold. In developed financial market, like US mutual funds have almost

overtaken bank deposits and total assets of over US $ 3 trillion.

In India, Mutual Fund industry started with the setting up of UTI in 1964. Public sector banks

and financial institution began to establish Mutual Funds in 1987. The private sector and

foreign institutions were allowed to set up Mutual Fund in 1993.

WHAT IS MUTUAL FUND?

A Mutual Fund is a trust that pools the savings of a number of 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 appreciation realized is 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.

Critical View About Mutual Fund

Advantages:

1. Portfolio Diversification: Each investor in a fund is a part owner of all the funds’ assets,

thus enabling investor to hold a diversified investment portfolio even with a small amount of

investment, which would otherwise require big capital.

2. Professional Management: Mutual Funds provide the services of experienced and skilled

professionals, backed by a dedicated investment research team that analyze the performance

and prospect of companies and selects suitable investments to achieve the objectives of the

scheme.

3. Diversification: Mutual Fund invests in a number of companies across a broad cross-

section of industries and sectors. This diversification reduces the risk because all stock

cannot go through a downtrend at the same time and in the same proportion. You achieve this

diversification through a mutual fund with powerless money that you can do on your own.

4. Reduction of Transaction Cost: The investors bear all the cost of investing such as

brokerage or custody of securities. When going through the fund investor has the benefit of

economies of scale; the funds pay lesser cost because of larger volumes, a benefit passed on

to its investors.

5. Liquidity: By investing in Mutual Funds the investors can cash their investment by selling

their units to the fund if open-ended or selling them in the stock market if the fund is close

ended.

6. Convenience & Flexibility: Mutual Funds Companies offer investor to transfer their

holding from one scheme to other.

7. Tax Benefits: The investors are totally exempt from paying any tax on the income they

receive from the Mutual Funds. Investment up to 10000 in ELSS qualifies for tax rebate of

20%.

8. Regulatory oversight: Mutual funds are subject to many government regulations that

protect investors from fraud.

9. Convenience: You can usually buy mutual fund shares by mail, phone, or over the

Internet.

Limitations: No Control over Costs:

An investor in a mutual fund has no control over the overall cost of investing. He/she has to

pay investment management fees as long as he/she remains with the fund. Fees are payable

even while the value of the investment may be declining.

No Tailor-made Portfolios: Investors who invest on their own can build their own

portfolios of shares and bonds and other securities. Investing through fund means he/she

delegates this decision to the fund managers.

Managing a Portfolio of Funds: Availability of a large number of funds can actually mean

too much choice for the investor. He/she may again need advice on how to select a fund to

achieve his/her objectives, quite similar to the situation when he/she has to select individual

shares or bonds to invest in.

Entry and Exit Cost: When large bodies like a fund invest in shares, the concentrated

buying or selling often result in adverse price movements i.e. at the time of buying, fund has

to pay high and vise-versa. But now SEBI has confirmed that no AMC can charge entry load

on new mutual fund.

No Guarantees: No investment is risk free. If the entire stock market declines in value, the

value of mutual fund shares will go down as well, no matter how balanced the portfolio.

Investors encounter fewer risks when they invest in mutual funds than when they buy and

sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of

losing money.

MUTUAL FUND CYCLE

Figure: Mutual Fund Cycle

From above cycle, it can be observed clearly that how the money from the investors flow and

they get returns out of it. With a very small amount of fund, investors pool their money with

fund managers. After studying the market, the fund manager invests money of the investors

in various securities like shares, bonds, debentures, government securities etc. to achieve goal

of the investors. With ups and downs in the market returns are generated and they are passed

on to the investors in form of dividend or capital gain or lost. The above cycle is very clear

and also very effective. The fund manager while investing on behalf of investors takes into
consideration various factors like time, risk; amount etc. so that he/she can make proper

investment decision.

Types of Mutual Fund

Figure: Types of Mutual Funds

By objective

Investment goals vary from person to person. While somebody wants security, others might

give more weightage to returns alone. Somebody else might want to plan for his child’s

education while somebody might be saving for the proverbial rainy day or even life after

retirement. With objectives defying any range, it is obvious that the products required will

vary as well. So, Mutual funds can be classified based on the objectives of the investor.

(a). Equity Fund: Equity funds invest a major portion of their corpus in equity shares

issued by companies. NAV of equity funds are fluctuated by fluctuation in price of shares

that it holds. So, there is a high risk as well as high return in equity fund. Potential to earn in

such funds is higher when they are invested for long term.
(b). Debt Fund: Debt funds invest in debt instruments debt instruments issued by

governments, private companies, banks and financial institutions. By investing in debt, these

funds target low risk and stable income investors. These funds are low risk low return funds.

(c). Balanced Fund: A balanced fund is one that has a portfolio comprising debt

instruments as well as preference and equity shares. The idea is to reduce volatility of funds,

while providing some upside for capital appreciation. They are best suitable for the people

looking for a combination for capital appreciation and regular income and best time spend for

such investment is more than 3 years.

(d). Money Market Fund: Money market funds invest in securities of a short-term

nature, which generally means securities of less than one-year maturity such as Treasury

Bills issued by governments, Certificates of deposit issued by banks and Commercial paper

issued by companies.

(e). Gilt Fund: These funds are sort of government funds wherein the investments are

made in debt instrument of government, which carry no risk of nonpayment of interest as the

RBI manages the payment of interest and principal on the investments. These funds are best

suited for regular income and long-term investment objectives.

2. By Duration:

(a). Open-ended Fund: An open-ended fund 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 NAV related prices which are declared daily

basis. The key feature of this fund is liquidity.

(b). Close-ended Fund: A close ended fund 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 units on stock exchange where the units are listed at NAV.

These mutual fund schemes disclose NAV generally on weekly basis.

(c). Interval Fund: Interval funds combine the features of open-ended and close-ended

schemes. They are open for sale or redemption during pre-determined intervals at NAV

related prices.

Risk Return Grid

Risk
Benefits offered by
Tolerance/Return Focus Suitable Products
MFs
Expected
Bank/ Company FD, Debt Liquidity, Better Post-
Low Debt
based Funds Tax returns
Partially Balanced Funds, Some Liquidity, Better Post-
Debt, Diversified Equity Funds Tax returns, Better
Medium
Partially and some debt Funds, Mix Management,
Equity of shares and Fixed Deposits Diversification
Diversification,
Capital Market, Equity
Expertise in stock
High Equity Funds (Diversified as well
picking, Liquidity, Tax
as Sector)
free dividends
Table: Risk Return Grid of various MF

3. By Load:

(a). Load Fund: Marketing of new mutual fund scheme involves initial expenses. These

initial expenses may be recovered from the investors by entry or exit load.

But now SEBI has confirmed that AMC cannot charge entry load on new mutual fund.

(i). Entry Load or Front-end Load: If initial expenses recovered from investors at the

time of investor’s entry into the fund, by deducting a specific amount from his initial

contribution it is called Entry Load. But now it has been banned by SEBI.

(ii). Exit Load or Back-end Load: If initial expenses recovered at the time of the

investor’s exit from the scheme, by deducting a specified amount from the redemption

proceeds payable to the investor it is called exit load.

(iii). Deferred Load: The load amount charged to the scheme over a period of time is

called a deferred load.

(b). No Load Fund: Funds that don’t charge entry, exit, or deferred load or any other

charges for sales expenses are called no load funds. Now, generally all Mutual Fund

companies charge 2 to 2.5% entry load on equity fund. Generally, there is no exit load on

equity and sectoral funds to maintain liquidity of that funds. Generally, there is no entry load

on gilt scheme and income fund. There is 0.25 to 1% exit load on gilt and income fund if

investors exit from fund before specified time which is generally 3 to 6 months.

4. Other types of funds:

(a) Tax Saving Funds: These schemes offer tax rebates 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 Saving Scheme (ELSS). Pension

schemes also offer tax benefits.

(b) 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 funds are changed accordance

with the change in the index.

(C) Sector Funds: These are the funds which invest in the securities of only those sectors or

industries as specified in the offer documents. E.g., Pharmaceuticals, Software, Petroleum

etc. These types of funds are riskier compared to diversified funds.

(d) Commodity Funds: Commodity funds invest into the different commodities directly or

through shares of commodity companies. E.g., Commodity funds invest in gold or shares of

gold mines. Commodity funds have not yet developed in India.

(e) Offshore Funds: These funds invest in equities in one or more foreign countries there by

achieving diversification across the country’s borders. However, they also have additional

risks such as the foreign exchange rate risk and their performance depends on the economic

conditions of the countries, they invest in.

RESEARCH OBJECTIVES

Any activity done without an objective in a mind cannot turn fruitful. An objective provides a

specific direction to an activity. Objectives may range from very general to very specific, but

they should be clear enough to point out with reasonable accuracy what researcher wants to

achieve through the study and how it will be helpful to the decision maker in solving the

problem.

The objective of any research is basically divided into two categories.

Primary Objective:

 To find out market potential of India Infoline.

Secondary Objectives:

 To assess an awareness of mutual funds in Bangalore.

 To find out how many people are interested in dealing of mutual fund.

RESEARCH METHODOLOGY

Research Design: A research design is a pattern or an outline of a research project’s

working. It is a statement of only the essential elements of a study, those that provide the

basic guidelines for the details of the project. It comprises a series of prior decision that taken

together provide master plans for executing research projects.

A research design serves as a bridge between what has been established i.e., the research

objectives and what is to be done, in conduct of the study to relish those objectives. If there

were no research design, the research would have only foggy notions as about what is to be
done. I have used ‘Exploratory Type’. The research is of both qualitative as well as

quantitative type.

2. Unit of Analysis: Middle class, Upper Middle class and HNIs people.

Characteristics of interest:

 People’s knowledge about Mutual Fund

 People’s knowledge about India Infoline

 People’s interest in getting knowledge of Mutual Fund

 People’s willingness to deal in Mutual Fund with India Infoline

3. Sources of Data:

Primary Source: The primary data is collected using sampling method and by survey using

questionnaire.

Secondary Source: Secondary data includes information regarding present market scenario,

Information regarding Mutual Funds and competitors are collected by Internet, Magazines

and Newspapers and books.

4. Sample Planning: Sample Size: 50 units, Sample Extent: Bangalore

Sampling Design: A Sample Design is a definite plan for obtaining a sample from a given

population. It refers to the technique or method the researcher would adopt in selecting items

for the sample.

I have used both ‘Convenience Sampling Method’.

5. Data Collection Method: I have used ‘Survey Method’ to collect data. I have collected

data using questionnaire.

Type of Information: I have collected Fact, Awareness, Attitude, Future action plan and

reason using questionnaire.

Type of Questions: ‘Close-ended questions’ of ‘Dichotomous’ and ‘Multiple Choice’ type

are asked in the questionnaire for data collection.

6. Data Analysis & Interpretation: Data Analysis is based on the data collected by

way of Questionnaires. From the collected data findings are extracted. The data is tabulated,

and frequency distribution chart is prepared.

DATA ANALYSIS AND INTERPRETATION

Percentage of investors

Invesment Preference
Bank Fixed Deposite RBI Bonds Mutual Fund
Equity Other

Other; Series1; 0.03; 3%

Equity; Series1; 0.37; Bank Fixed

37% Deposite;
Series1;
0.28; 28%

Mutual Fund; RBI Bonds; Series1; 0.02;

Series1; 0.3; 2%
30%

Inference: Graph shows that 30% of people are investing in mutual fund. That mean it is a

good opportunity for the company as they can grap the rest unaware people to being them

investor in mutual fund by making them aware about mutual fund.

Reason for Investment

Why they Invest

Tax Benefit;Returns
Series1; 0.05; 5%
Liquidity Saving Tax Benefit

Saving; Series1; 0.3; 30%

Returns; Se-
ries1; 0.5; 50%

Liquidity; Series1; 0.15;

15%

Inference: Graph shows that 50% (above among all) people are interested in investing in

mutual fund. That mean company can increase investors for investing in mutual fund by

giving them equity based mutual fund.

Frequency of Investment
Inference: Graph shows that 40% people are investing in mutual fund once a month. So

company suggests people about SIP and company suggest rest of the people about the

benefits of SIP.

Awareness about scheme offered for Mutual Fund

Inference: Graph shows that 66% of people have few knowledge about mutual fund and 10

% of people do not know about mutual fund. That means company can make fully aware

about mutual fund to people and tell them benefit associated with mutual fund so that they

will invest in Mutual fund.

Awareness of tax advantage by Mutual Fund

Inference: Graph shows that 38 % of people don’t know about tax benefit associated with

mutual fund and 34 % of people are not sure about tax benefit through mutual fund. This is

the good opportunity for company to increase investors of mutual fund by making aware

them tax benefit associated with mutual fund in such schemes like ELSS.

External advisor for Investors

Inference: Graph shows that 38 % of people invest in mutual fund on the suggestion of their

friends. So they are potential investors for the company. Company can take care of these

investors by suggest them to invest on professional advisory.

Types of Mutual Funds in which they invest

Inference: Graph shows that most of the people (58 %) invest in equity based mutual funds.

They are risk taker. Company can take care of these investors by suggesting them balanced

and debts funds.

Why they are not investing in mutual funds.

Inference: Graph shows that 48% of people are not investing in Mutual fund because of bitter

past experience. 14% have not knowledge about mutual funds. 22 % do not believe on this

service. 6 % are not able to select the best scheme for them. Company assumes that these
investors have lack of advisory. So, company should suggest them for investing on basis of

professional advisor.

People those interested to know more about mutual fund.

Inference: Graph shows that 86 % of people are interested to know more about mutual funds.

This is the great opportunity for the company to increase the investors by making them aware

about mutual funds and telling them benefits associated with mutual funds.

FINDINGS

Corporate advisory services

Merchant bankers offer customized solutions to solve the financial problems of their clients.

Merchant bankers study the working capital practices that exist within the company and

suggest alternative policies. They also advise the company on rehabilitation and turnaround

strategies, which would help companies to recover from their current position. They also

provide advice on appropriate risk management strategies.

Loan syndication
Arrangement of loans for clients, by analyzing their cash flow pattern, so that the terms of

borrowing meet the client’s cash requirements and offer assistance in loan documentation

procedures.

Portfolio

Total number of all holdings held by a company is called portfolio. The portfolio mix is

aimed at spreading the risk over different sectors. It consists of all assets of company.

NAV

Net Asset Value is the current market worth of the mutual fund shares. It is calculated daily

by taking the fund’s total asset securities, cash and any accrued earning deducting liabilities,

and dividing the reminder by the number of shares outstanding.

Depository

The principal function of a depository is to dematerialize securities and enable their

transactions in book-entry form. A depository established under the Depositories Act can

provide any service connected with recording of allotment of securities or transfer of

ownership of securities in the record of a depository.

Capital gain.

 The profit made from selling shares, mutual funds etc.

 IPO

 Abbreviation for Initial Public Offering. Generally associated with admission to

listing of the share capital on the stock exchange.

LIMITATIONS

 Due to limitation of time and cost constrains a sample size of only 50 respondents are

chosen.
  Data Analysis and interpretation done may not be that strong due to small sample and

‘Convenience Sampling Method’.

 The sample extent for research is only Bangalore.

 Some of the respondents may be biased in giving responses.

 My inexperience in research area might have affected results

Questionnaire

1. Which are the investment tools you invest in?

[ ] Bank Fixed Deposit

[ ] RBI Bonds

[ ] Mutual Funds

[ ] Equities

[ ] others (Please specify)

2. You primarily invest for (Rank according to your preference)

[ ] Returns
[ ] Liquidity

[ ] Savings

[ ] Tax Benefits

3. Rank the investments options according to you preference ofnInvestment.

[ ] Bank Fixed Deposit

[ ] RBI Bonds

[ ] Mutual Funds

[ ] Equities

[ ] Any other (Please specify)

4. What is the frequency of you investments?

[ ] Once a Month

[ ] Once in 6 Months

[ ] Once a Year

5. Do you invest in Mutual Funds?

[ ] Yes

[ ] No

6. If the answer to question 9 is "Yes"

a.)Are you aware of the various schemes offered by Mutual Funds?

[ ] Yes

[ ] No

[ ] Few

7 Do you know that you can get Tax Advantages by investing in Mutual Funds?

[ ] Yes

[ ] No
[] Not Sure

8. On whose external advice do you invest?

[ ] Bank

[ ] Distributor

[ ] Agents

[ ] Direct investments

[ ] C.A.

9. Which types of Mutual Fund do you invest in?

[ ] Debt

[ ] Equities

[ ] Balanced

10.If the answer to question 9 is "No"

You do not invest in Mutual Fund because of (you may give multiple answers)

[ ] Bitter past experience

[ ] Lack of Knowledge

[ ] Lack of confidence in service being provided

[ ] Difficulty in selection of schemes

[ ] In-efficient investment advisors

11. If Mutual Fund offer you Steady Returns, Tax Benefits, Liquidity, Diversification of

Portfolio, Lesser Risk would consider it as an investment option in the future for you?

[ ] Yes

[ ] No

[ ] May be

12. Would you be interested to know more about Mutual Funds?

[ ] Yes

[ ] No

Name : ……………..……………….

Age :………………………….

Occupation:………………………

Mobile No. :……………………………...

BIBLIOGRAPHY

1. www.mutualfundsindia.com
2. www.amfiindia.com
3. www.themanagementor.com
4. www.dewb-vc.com
5. www.India Infoline.com
6. www.indiacorporateadvisor.com
7. www.nsdl.co.in
8. www.incometaxBangalore.nic.in
9. www.incometaxindia.gov.in
10. Canarias & Dhaivat Anjaria, “AMFI Workbook”, Ed. – 2 (Association of Mutual
Funds in India)