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By NAME- Damita Sharma ENROL.NO..- 09BS000628


Reliance Capital Asset Management Company Division- Reliance Mutual Fund (Corporate Sales)



By Damita Sharma 09BS000628

Name of Organization Reliance Capital Asset Management Company Division- Reliance Mutual Fund (Corporate Sales)

A report submitted in partial fulfillment of The requirements of MBA Program of The ICFAI University, Dehradun Date of Submission: 16th April 2010

ABSTRACT OF WORK TILL THE DATE I joined Reliance Capital Asset Management Company for internship program (as a part of MBA) I only had a theoretical knowledge of related financial subjects and products, thanks to my Faculty Guide (Prof. Rajeev Kumar) and my Company Mentor (Mr. Alok Sharma) for giving me an opportunity to implement my theoretical knowledge in practical aspect and thus adding on to my experience. My Company mentor has given me the project to develop new corporate relationship with various organizations related to health industry in Delhi NCR region, updating all the necessary information to them and then finding out various factors affecting their (consumer) buying behavior of mutual funds especially that of Reliance. The new Financial instruments has been developed as an outcome of liberalization in industrial and financial sector. . Growth and development of various mutual fund products in Indian capital market with high level of precision in design and marketing products by banks and other financial institution providing growth, liquidity and return, has made fund manager and fund product designers to combine these all various elements required to make these mutual fund products the best possible alternative for the small investors in Indian market. Also,at the corporate level, investors are unique and are a highly heterogeneous group. Hence, their fund/scheme selection also widely differs. Investors demand inter-temporal wealth shifting as their organization progresses through the business cycle. This creates the necessity for the Asset Management Companies (AMCs) to understand the fund/scheme selection/switching behavior of the investors to design suitable products to meet the changing financial needs of the investors I started this project by understanding the concept & technicalities of Mutual Fund. Analysis of Delhi NCR market through Primary & Secondary data helped me for further strategy. The Primary Data was collected through company‟s corporate sales team and other sources like Questionnaire and taking interview of corporate director, CEO, CFO etc. on phone and personal interview and secondary data from websites, books, journals, information vouchers and other source to make my analysis more effective. For the analysis of data and studying their contribution in making perception of consumer, I Conducted survey among 50 organizations belonging to health industry in Delhi NCR region to study the factors influencing the fund/scheme selection Behavior of corporate Investors. It helped me to understand more the concept & technicalities of mutual funds & also, gaining more knowledge about investment patterns of various organizations belonging to health industry in this region. It has also helped me to

. .etc. types. future prospectus. the analysis of the whole data (primary and Secondary). latest our company with other AMC‟s because these are the persons who have enough knowledge about the investment market and investor behavior. benefits. it is hoped that it will have some useful managerial implication for the AMCs in their Product designing and marketing. and will also discusses the survey findings. So. limitations. history of mutual funds in India. The Final Report includes. risks. My study also gives an overview of mutual funds – definition. .

For all investors. and with mis-selling from mutual fund distributors. when and where. Many investors are absolutely fascinated about investing in mutual funds.based equity investments to all types of investors. The beliefs and actions of many investors are influenced by the dissonance effect and Endowment effect . in my opinion mere fascination is not enough. The tendency to adjust beliefs to justify past actions is a Psychological phenomenon termed by Festinger (1957) as Cognitive Dissonance.INTRODUCTION: The reform process has sent signals to a wave of changes in savings and investment behavior adding a new dimension to the growth of financial sector. These „expectations‟ of the investors are influenced By their “perception” and humans generally relate perception to action. “Endowment Effect” is explained by Thaler Kahneman and Knetsch (1992) as “People are more likely to believe that something they own is better than something they do not own”. Investing wisely and with the right insights helps one to make the right investment decision.Mutual Fund (MF) investors in India. how else can we explain the reason for the existence of many poor performing funds without investors staying invested with them? . These would depend upon the goals of the investor and “expectations” which plays a vital role. As Mutual fund is an investment company that pools money from shareholders and invests in a variety of securities. But. Increasing number of players from public as well as private sectors has entered in to the market with innovative schemes to cater to the requirements of the investors in India and abroad. If investors do not have the right perspective. The investment habit of the small investors particularly has undergone a sea change. bonds and money market instruments. We have evidence for the influence of this effect also among Indian MF investors. reaching an unwanted destination. We find ample proof for the wide prevalence of such a psychological state among . investors could go down the wrong path. particularly the small investors. such as stocks. mutual fund investing could be a conundrum. During this period mutual funds have pooled huge investments for the corporate sector. They influence the price of the securities. mutual funds have provided a better alternative to obtain benefits of expertise. the volumes traded and determine quite a lot of things in actual practice. Many investors start investing in mutual funds without thinking of the three Ws: why. for. The Indian financial system in general and the mutual fund industry in particular continue to take turn around from early 1990s.

So. this project is done in order to contribute to such types of model. in the financial literature. form the bedrock of any investment plan. time frame and risk profile and thus. rational or irrational.e. classifying and analyzing of various factors contributing to the purchase decision of Mutual fund. exit load. entry load. which lead to their expectations from different types of mutual funds available in the market specially of Reliance and generally influences buying behavior of mutual funds . which can have managerial implications for policy makers. associated with the mutual funds. Aim of study The report will be aimed at finding. But. This study tracks the investor‟s preferences and priorities towards different types of mutual fund products and identifies . to the extent of the availability of the explanatory variables. Because of our own inability to understand the sources of motivations And the basis of these expectations we tend to ignore it. an investment strategy should be such that which should lay down the asset allocation of the investor's funds depending upon his objectives.Therefore. we can borrow concepts from social psychology where behavioral patterns. Literature and Theories However. corporate organizations related to health industry in Delhi/NCR region) risk-returns perception. The project study is also done to know the influence of various factors like the asset allocation. On the same lines. Purpose of report: The purpose of project is to understand the mutual fund industry and identify various factors that affects consumers (i. we can develop certain models to test the financial behavior. Ultimately this would help in understanding the benefits of mutual funds to investors. are developed and empirically tested. Such models can help to understand the Why? And How? Aspect of investor behavior. there are no models which explain the Influence of these “perceptions” and “beliefs” on “Expectations” and “Decision Making”. attitude etc. to a certain extent.

To discuss about the market trends of Mutual Fund investment 6-Analysing the market research findings for work improvement of Capital Asset 7. Increasing and expanding mutual fund industry. an attempt is also made to find out the important mutual fund product attributes that are essential in influencing the purchase decision of the investors. 4.the key features of a mutual fund for deciphering sustainable marketing variables in the design of a new mutual fund product.To identify the features the investors look for in Mutual Fund products 3. Scope of report: In this project the scope is limited to some prominent mutual funds products in the mutual fund industry such as Liquid funds and debt funds which is mostly preferred by corporate as it is less riskier than equity schemes . index funds etc.   Improvising mutual fund customers state of mind. Objective of study: 1-To study the various factors affecting  Perception and attitude towards reliance and other mutual funds from organization point of view. 5.To identify  the scheme preference of investors  the information sources influencing the scheme selection decision. pharmacy) funds.Suggesting strategic measures for Management Company. infrastructure. 2.To study the contribution of various factors in decision making of consumer. Buying behavior of customers with regard to mutual funds.But there is so many other schemes in mutual fund industry like equity with specialized investment (banking. . Taking a lead from this. Limitations of the study:  Sample of research is limited to corporate of Delhi and NCR region which may not adequately represent the national market.

which is being collected for the first time and it is the original data. In it interviewee will be encouraged to clarify vague statements or to further elaborate on brief comments. This study assumes that the survey used is an effective measurement tool to identify the consumer behavior of all sectors corporate even if it is done in organizations (hospitals & pharmaceutical companies) belong health industry only in Delhi/NCR region. This study has not been conducted over an extended period of time having both market ups and downs. based on ongoing analysis. The market state has a significant influence on the buying patterns and preferences of investors. Methodology and their sources: 1-Data collection-To study the buying behavior factors data is collected by:(1)Secondary data. The structured .Secondary data is collected from websites. This study will also employ qualitative research method because it will try to find out and explain the relationship of one variable with another variable of the particular factor and importance of each factor in terms of their contribution in buying of mutual funds. will honestly and thoroughly answer each question.It will be the major method to collect data and will be a structured interview which shall consist of a list of specific questions and the interviewer (me) will not inject any extra remarks into the interview process. During data gathering the choice and design of methods are constantly modified.    Various sources of secondary data differ in their conclusions and are subject to manipulations which may affect the analysis made on perception of customers and its consequences while buying mutual funds. The study has not captured such situations. (2)Primary data-It is the data. guide of the project and some what from the corporate client from whom questionnaire is asked during an interview. information vouchers etc. 2-Market Research – It‟s aim is to gather information and do its analysis on various large and medium corporate of majorly health industry belonging to Delhi NCR region. In this project the primary data has been taken from Reliance Capital Company‟s corporate sales team members.It is done by: (1)Interview. journals . books. It is also assumed in this research study that. each participant (corporate client) from whom questions is asked.

the statistical tool will be used to interpret the findings and will be assisted by the Statistical Package for the Social Sciences (SPSS) in coming up with the statistical analysis for this study.interview is mostly a "question and answer" session and it does not include interviewer (mine) own beliefs and opinions. descriptive research method will be utilized. Thus. the results of the data gathered were limited to the determination of factors that affect the consumer buying behavior of mutual funds. with a nine-response scale wherein respondents will be given five response choices and its weight will vary from very important (9) to not at all important (1). In the study. the respondents will grade each statement in the survey-questionnaire using a Likert scale. Because of this research design. (2) Questionnaire-The respondents shall fill out a self-administered questionnaire. and discussing their company‟s cash management and investment patterns and advising on that. It will be done by following ways:I-Personal interview-It is done by personally meeting corporate CFOs. other possible findings in the field of consumer/customer satisfaction and business performance will also be analyzed. CEOs etc. 3-Technique used for analysis-When the entire survey questionnaire have been collected. the questionnaires for the corporate sample chosen will be used to collect quantitative data and the interviews will be used to provide qualitative insights into the data collected. In this method. Ideally. II-Phone interview-These are kind of discussions done on phone with corporate clients. it is possible that the study would be cheap and quick. Here. .

. acting on behalf of the Mutual Fund. SEBI (Mutual Fund) Regulations. Mutual funds in India are constituted in the form of a Public Trust created under The Indian Trusts Act. Thus. Investment in securities is spread across a wide section of industry and sector and the risk is reduced. Mutual fund is a mechanism for pooling the resources by issuing unit to the investors and investing funds in securities in accordance with the objective as disclosed in offer document. Investors of mutual funds are called unit holders. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds) Hence. manage the investments (investor‟s money) for their benefit in return for a management fee. professional fund managers. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Diversification reduces the risk because all stock may or may not move in the same direction in the same proportion to their proportion at the same time. The mutual fund usually comes out with a number of schemes with different investment objectives which are launched from time to time. a Mutual Fund is the most suitable investment for the common person as it offers an opportunity to invest in a diversified. The rationale behind a mutual fund is that there a large number of investors who lack the time and or the skills to manage their money. Anybody with an investible surplus of as little as a few thousand rupees can invest in mutual fund . 1882. professionally managed basket of securities at a relatively low cost. A mutual fund is required to be registered with the SEBI. which regulates securities markets before it can collect fund from the public.MAIN TEXT: What is Mutual Fund? SEBI (Mutual Fund) Regulations 1993 defines Mutual Fund as “a fund established in the form of a trust by a sponsor to raise money by the trustees through the sale of units to the public under one or more schemes for investing securities in accordance with these regulations” A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. In India. 1996 regulates the structure of mutual funds.Each mutual fund scheme has defined investment objective and strategy. The profit or losses are shared by the investors in proportion to their investment. The organization that manages the investment is called the Asset Management Company (AMC).

the market regulator and also the regulator for mutual funds to start fund house.Role of SEBI in mutual fund In the year 1992 SEBI act was passed. SEBI notified regulation for mutual funds in 1993. 2. The Sponsor approaches SEBI. Indian mutual fund industry had seen dramatic improvements. the AMC is paid a fee for the services provided History of mutual funds The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Sponsors They are the individuals who think of starting a mutual fund. The regulations were fully revised in 1996 and been amended. to manage the investor‟s (unit holder‟s) money. As far as mutual fund are concerned. In return for this money management on behalf of the mutual fund. All mutual funds whether promoted by public sector or private sector entities including those promoted by foreign entities are governed by the same set of regulation. There is no distinction in regulatory requirement of the mutual fund and all are subject to monitoring and inspecting by SEBI. which is established as a legal entity. SEBI formulates policies and regulation for the mutual fund to protect the interest of the investors. Therefore. Trust Once SEBI is satisfied with the credentials and eligibility of the proposed Sponsors. both quality wise as well as quantity wise. to promote the development of. from time to time SEBI has also issued guidelines to the mutual fund from time to time to protect the interest of the investors. The Indian mutual fund industry follows a 3-tier structure as shown below: 1. Though the growth was slow. The objectives of SEBI are – to protect the interest of Investors in securities. Thereafter mutual fund sponsored by private sector entities were allowed to enter the capital market. at the initiative of the government if India and reserve bank. and to regulate the securities market. but it accelerated from the year 1987 when non-UTI players entered the industry. . In the past decade. The risks associated with the scheme launched by mutual funds sponsored by these entities are of similar type.  The mutual fund industry in India started in 1963 with the formation of unit Trust of India. 3. Asset Management Company (AMC) The Trustees appoint the AMC. the Sponsors then establish a Trust under the Indian Trust Act 1882.

Close-Ended schemes. 1. Because they invest in equities. these schemes are exposed to fluctuations in value especially in the short term. certificates of deposits (CD‟S).21. of units and its duration are prefixed. These funds are generally managed actively and are priced according to their net assets value (NAV).They thus have a diversified portfolio of companies across a large spectrum of industries. no.  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 In the year 1987. public sector mutual funds setup by public sector banks. treasury bills (T-bill) etc. By structure  Open-Ended schemes.A type of mutual fund where there are no restrictions on the amount of shares the fund will issue as it depends on its demand. Interval schemes. there were 33 mutual funds with total assets of Rs. Money market-These schemes invest in short term instruments such as commercial papers. As compared to the money market schemes they do have a higher price fluctuations risk and compared to gilt fund they a higher credit risk. and   . As at the end of January 2003. General purpose.Under this scheme the corpus of the fund. Close end schemes are usually more liquid as compared to open-end schemes and hence trade at a discount to the NAV. life insurance Corporation of India and general insurance of India are came in to existence The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The details given below. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.   Type of Mutual Funds Wide variety of mutual fund schemes exists to cater to the needs such as financial position. 805 crores.These schemes combine the features of open ended schemes. risk tolerance and return expectations etc.   By investment objectives  Growth/Equity schemes -It seek to invest a majority of their funds in equities and a small portion in money market instruments. gives an overview into the existing types of schemes in the industry.

1961. private companies. Liquid Funds etc ( its details will be given in final report.It also serves as a relevant benchmark to evaluate the performance of mutual funds. Index schemes.   Guilt funds. It attain the objective of income and moderate capital appreciation Other schemes  Tax saving schemes -Investors are being encouraged to invest in mutual fund through equity linked savings scheme (ELSS) and debt schemes by offering them a tax rebate. Government authorities. as prescribed under section 88 of the income tax act. Sector specific schemes-These are schemes restrict the investing to one or more pre defined sectors according to their performance. Balanced schemes -These schemes invest in both equities as well as debt.are least volatile. banks and financial institutions are some of the major issuers of debt papers Debt funds are further classified as: Gilt Funds.) . Subject to such conditions and limitations. Debt funds The objective of these Funds is to invest in debt papers.An index is used as a measure of performance of the market as a whole. Short Term Plans (STPs).In it primarily invest is done in government debts and is generally credit risk free. or a specific sector of the market . Income Funds. 2.   According to investment 1. MIPs. Equity investments are meant for a longer time horizon. thus Equity funds rank high on the risk-return matrix. Equity fund These funds invest a maximum part of their corpus into equities holdings.

. Tata Asset Management Ltd. DSP Merrill Lynch Fund Managers Ltd. Others BOB Asset Management Co. Joint Ventures – Predominantly Indian Birla Sun Life Asset Management Co. Cholamandalam Asset Management Co. Institutions Jeevan Bima Sahayog Asset Management Co. Balanced funds: As the name suggest they. Ltd. Kotak Mahindra Asset Management Co. Financial Asset Management Private Ltd. are a mix of both equity and debt funds. Credit Capital Asset Management Co. J. Ltd. Private Sector Indian Benchmark Asset Management Co. Private Ltd Sundaram Asset Management Co.3. Ltd. Ltd. Can bank Investment Management Services Ltd. Private Ltd. Sahara Asset Management Co. M. Equity part provides growth and the debt part provides stability in returns. Major PlayersBank Sponsored Joint Ventures – Predominantly Indian SBI Funds Management Private Ltd. Reliance Capital Asset Management Ltd. Ltd. Private Ltd. Ltd. UTI Asset Management Co. Escorts Asset Management Ltd. Ltd.

HDFC Asset Management Co. Liquidity: It‟s easy to get your money out of a mutual fund. Standard Chartered Asset Management Co. Transparency: mutual fund provide information on each scheme about the specific investment made there-under and so on Flexibility: currently most funds have regular investment plans. And expenses for Index Funds are far less than that. Choice of schemes: mutual funds offer a variety of schemes to suit varying needs of investors. Prudential ICICI Asset Management Co. HSBC Asset Management (India) Private Ltd. even if some securities lose value. Regulatory oversight: Mutual funds are subject to many government regulations that protect investors from fraud. Private Ltd Advantages of investing in a Mutual Fund are:  Diversification-When a portfolio is balanced in such a way. Ltd. Morgan Stanley Investment Management Private Ltd. ING Investment Management (India) Private Ltd. A great deal of flexibility is assured in the process. or over the Internet. phone. These managers decide what securities the fund will buy and sell. Franklin Templeton Asset Management (India) Private Ltd. that the value of the portfolio should gradually increase over time.5 percent of your investment. Write a check. Convenience: You can usually buy mutual fund shares by mail. Tax benefits: Tax Benefit under 80C which can be categorized as          . make a call. Fidelity Fund Management Private Ltd. Private Ltd. Deutsche Asset Management (India) Private Ltd. Ltd. Joint Ventures – Predominantly Foreign ABN AMRO Asset Management (India) Ltd. Principal Pnb Asset Management Co. Professional Management: Most mutual funds pay topflight professionals to manage their investments. Low cost: Mutual fund expenses are often no more than 1. and you‟ve got the cash. regular withdrawal plans and dividend reinvestment scheme.

which is a balanced fund. If the entire stock market declines in value. is true for all practical purposes. Mutual funds have their drawbacks and may not be for everyone:  No Guarantees: No investment is risk free. Management risk: When you invest in a mutual fund. Well regulated: The funds are registered with the Securities and Exchange Board of India and their operations are continuously monitored. Some funds also charge sales commissions or “loads” to compensate brokers. dividend distribution tax. Most of its investors believe that the UTI is government owned and controlled. Fees and commissions: All funds charge administrative fees to cover their dayto-day expenses.If the manager does not perform as well as you had hoped.The UTI has many fund schemes in all categories. the value of mutual fund shares will go down as well. The aggregate corpus of funds managed by this category of AMC‟s is about Rs 150 billion The third largest categories of the mutual funds are the once floated by the private sector and by the foreign asset management companies. while legally incorrect. The largest of these are Prudential AMC. financial consultants. The second largest categories of mutual funds are the ones floated by nationalized banks. GIC AMC floated by General Insurance Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the prominent ones. you might not make as much money on your investment as you expected. The aggregate corpus of the asset managed by this category of AMCs is in excess of Rs 250bn.   Structure of the Indian mutual fund industry The Indian mutual fund industry is dominated by the Unit Trust of India (UTI) and which has a total corpus of Rs 700bn collected from more than 20 million investors . The United Scheme 1964 commonly referred to as US64. no matter how balanced the portfolio. Can bank Asset management floated by Canara Bank and SBI Funds Management floated by the State Bank of India are the largest of these. taxation with indexation etc. . Reliance Capital AMC and Birla SUN LIFE AMC. is the biggest scheme with a corpus of about Rs 200bn URI was floated by financial institution and is governed by a special act of the parliament. which.

broker education etc. sharp improvement in the service standards and disclosure. in March 2010. But this does not mean there is no room for other players. They quickly realized that the AMCs business is a business. Today. Future scenario The asset base will continue to grow at an annual rate of about 30 to 35% over the next few years as investor‟s shift their asset from banks and other traditional avenues. Many nationalized banks got into the mutual fund business in the early nineties and go off to a good start due to the stock market boom prevailing then They offer some schemes with guaranteed returns and their patent organization had to bail out these AMCs by paying large amount of money the difference between the guaranteed and actual returns. The foreign owned companies have deep pockets and have come in here with the expectation of a long haul. The public sector has gradually receded into the background. The experience of some of the AMCs floated by private sector Indian companies was also very similar.Recent trends in the mutual fund industry The most important in the mutual fund industry is the aggressive expansion of the foreign owned mutual fund companies and the decline of the companies floated by the nationalized bank and smaller private sector players. usage of technology. In fact. close down or merge with strong players in three to four years. passing on a large chunk of market share to private sector players. Some of the older public and private sector players will either close or be taken over. some have merged with the others and there is general restructuring going on. they have forced the industry to upgrade itself and service levels of the organization like UTI have improved dramatically in the last few years in response to the competition provided by these. The service level was also bad. Out of ten public sectors players five will sell out. Some have sold out to foreign owned companies. There will be a large number of offers from . They can be credited with introducing many new practices such as new product innovation. the Indian mutual fund industry has 40 players. The market will witness a flurry of new players entering the area. The number of public sector players has reduced from 11 to 5. In the private sector this trend has already started with two mergers and one takeover. which makes money in the long term and requires deep pocketed support in the intermediate years.

Thus it is critical for the industry to understand the prospective of Indian investors so as to use their inputs for further enhance customer experience with mutual funds. As a part of this survey I conducted interview of sample of population of specific sector chosen with diverse background and different scale varying from small to large to understand their preference and prospective on investment in mutual funds. while mutual fund are often are preferred avenue for investment over direct investments over capital markets by risk averse investors. Customer prospective The Endeavour of mutual fund investments is to leverage professional and prudent fund management techniques‟ and there by maximize returns for the investors while minimizing risk. Increasing Assets Under Management (AUM) will also be a major challenge. the challenges will come from maintaining the interest of the all the participants in the market. Research Work Done Till Date Data collected till date by personal or telephonic interview‟s has revealed that while a significant portion of customers are aware of and also invest in mutual funds while few had never thinked of investing in mutual fund. Some big names like Fidelity. so that the mutual funds can implement the changes that are required to trade in derivates. mutual fund companies and investors would be very watchful on the tax implications of various mutual funds. many market players have called on the Regulator to initiate the process immediately.various asset management companies in times to come. There was a diverse set of views . 2011. since there is no incentive for the distributors to promote mutual funds. The mutual fund industry is awaiting the derivation in India as this would enable it to hedge its risk and this in turn would be reflected in its Net Asset Value (NAV). are looking at Indian market seriously. However. when the Direct Tax Code (DTC). Principal and Old Mutual etc. SEBI is working out the norms for enabling the existing mutual fund scheme to trade in derivatives. customers have had widely varying experiences with purchase of mutual funds. So to understand the need of Indian customers specifically cooperates I have collected the primary information from reliance capital asset management company and conducted the survey for the organizations of health industry across Delhi NCR region. come into effect. Importantly. Also after April 1.

emergency need fulfillment. As sample size is taken as fifty corporate clients in Delhi NCR region belonging to health industry. offered by any specific mutual fund product influence the buying of mutual fund as it is according to the requirement of client. safety. and to identify the information sources influencing scheme selection. scheme preference and objectives for investment in MFs. And then to understand the savings avenue preference. agency network. past research. the respondents were asked to rank their preferences on a nine point ranking scale varying 1-exteremly unimportant to 5-neutral and then to 9-extremly important. equity or debt investment etc. lock in period. associated clients etc. entry & exit load. and the preferred mode of communication. around twenty seven variables were considered like features. liquidity. after brain storming twelve variables under four different factors were finalized to prepare a questionnaire. The survey has highlighted several reasons that Respondents have cited for making their perception for buying mutual funds. regular income. corpus. and judgment of the researcher. But based on theory. All the findings and remarks with analysis will be given in final report. initially considering drivers for investment in the mutual funds buying behavior. (The details of corporate clients approached till date is mentioned in annexure-2) Variables Considered The variables considered in the questionnaire.obtained. So. that can incentivize potential customers to commence and gradually increase their investment in Mutual funds are discussed below with their details in brief: (The factors and variables in the form of questionnaire with the ranking scale is given in annexure-1) Factor-1(Core product) Variables 1-FeaturesThe various features like long term short term. till now about 30 has filled the questionnaire and rest work will be completed in next ten days which will be followed by its analysis to know the percentage contribution of that particular factor in Driving the Investment in Mutual Funds. . rating. both negative and positive about investment in mutual fund. reputation. fridge benefits.

It is also considered while making an investment in mutual fund. Expense Ratio is the percentage of assets that go towards these expenses. 3-Entry and exit loadIt is the load of amount which client have to pay when he/she enters any mutual fund product or redeem the investment before the completion of lock in period. 4-Tax benefitInvestment in Mutual Funds is attractive to customers owing to tax benefits . . if the fund has a well-established track record. most people think of risk they think about the risk of losing their principal in the investment made through mutual fund. political risk. management risk. Now a days it is only applicable to a certain products. benefit shortfall risk etc .2-Lock in periodIt is important for long term investment as there is no lock in period in liquid funds.The tax benefits associated with investment in mutual funds is the key drivers for customers 5-Expense ratioAnnual expenses involved in running the mutual fund include administrative costs. overheads etc. Their is separate products under liquid schemes which provide such facility to customer. Factor-2(Investor expectations) Variables 1-PerformanceThe past performance of a fund is important in analysing a mutual fund. 3-LiqudityIt is easy and any time availability of money which is invested. the likelihood of it performing well in the future is higher than a fund which has not performed well 2-SafetyThere is currency risk.But. however..

Factor-3(AMC) Variables: 1-Brand nameConsistency in fund performance and brand equity both are important factors that always influence customers to make relevant selection of mutual fund schemes. This study has made an attempt to understand the financial behaviour of MF investors in connection with the scheme preference and selection. it is hoped that the survey findings will have some useful managerial implication for the AMCs in their product designing and marketing. It is important while influencing for any coorporate first time investment in any AMC. and offer information at regular intervals Conclusion Running a successful MF requires complete understanding of the peculiarities of the Indian Stock Market and also the psyche of the small investor. The post survey developments are likely to have an influence on the findings. 3-Associated clientsTo create good image in the eyes of new clients association with big coorporates plays its role.It is important factor to build and maintain the trust of customers to build up mutual fund AMC. Nevertheless. . 2-Expertise in managing moneyIt‟s important that the team managing the fund should have considerable experience in dealing with market ups and downs. Some MFs are more investor friendly than others. Factor-4(Investor service) Variables: 1-Delivery schedule transparencyServices offered by mutual funds (MFs) may vary across funds.

1992. 1968. “The Changing Dynamics”. G.reliancemutual.Malhotra Investment Management-V K Bhalla The Economic Times 3-Others:  Agarwal. James H. Vol. www.22. Myers & Mark Alpert. The Hindu Survey of Indian Industry.D. “Restoring Investor Confidence”. No. 1999.S. “Mutual Funds and Investors Interest”. www. 435-437 Subramanyam.amfiindia. P. Journal of Marketing 32 (October) 2-Books.    www. 65-68. 109-111.References: 1-Websites:     www. Chartered Secretary. Determinant buying attitudes: meaning and measurement. The Hindu Survey of Indian Industry. Magazine and Newspapers:     Marketing Management-Philips Kotler Business Research Methodology-Naresh K. Atmaramani.mutualfundindia.bseindia.

ANNEXURE-1 Sample QuestionnaireTick the following:Variables How much important is features of mutual fund to you? How does lock in period matter? How does you analyze entry & exit load ? How much you consider previous performance while investing? Where you rank safety while doing buying mutual funds? What is the requirement of liquidity during investment? How much important is tax benefit for your organization? Extremely Very Somewhat Imp.3 unimp.8 imp.1 .-9 imp.6 Neutral.7 5 unimp.Unimp.4 Somewhat Very Extremely imp.2 unimp.

How do you consider expense ratio? How much important is brand name for you to invest in mutual funds? Rank the importance of AMC for expertise in handling your money How important is associated clients of particular mutual funds for you? Where do you rank delivery schedule transparency? .

Pansheel P. Gurgaon Finance Head 25-A. Delhi 9810010234 Mr.Yogesh Wadhwa Mr.R.S. Pusa Road. Desh Bandhu Gupt Road.Sourabh Gupta B-1/1.Delhi F-12.janakpuri.Mathur CFO A-23.R. Delhi Mr. Rajnigandha Complex. Gunadhar Venu eye Maity institute and research center North point hospital pvt ltd Primus international hospital City hospital Mr. Aashlok hospital M. #1. Paharganj. Delhi Director Finance Analyst c-3/91-92. Sandeep Aggarwal finance head 7-b. Head 9911712179 Finance Head S-357.Urological reseach institute Center for sight Dr.pusa road.Sheikh Sarai Institutional Area.ANNEXURE-2 Corporate Clients visited till dateCorporate Name Concerned Person Designation Address Phone no. Jain Dr. Aryan Mr. 9910167170 2324581 2330945. Delhi 9811285602 Vimhans Allied chemicals & pharma pvt. Delhi #1.P. 2330645 Jain hospital Aryan hospital Senior Acc. Gurgaon Old Railway Road. Director Sec-14-1. Simrat Chadda Dr.S. Delhi 8734. Karol Bagh. O.Community Center. R. 45099994 9811075604 9999899308 Kolmet hospital Mr.Delhi 26513723. Chanakyapuri.S.East of kailash.R .Facinity Center-1. Sharma Mr.G.Delhi 29849027 23681000 . karol bagh. Delhi 9873588115 Mr. Safderjang Enclave. Nehru Nagar. Delhi 9910112789 Senior Manager Accounts Corporate Finance Advicer Finanace Head Executive Director Chanderagupta Marg.Nanda Orchid hospital R.Institutional area.Deshraj Mr.Green Park Main. 25752056. Gupta Mr.K.

Qutab institutional area.P.Delhi DLF.K.gyan bharati Nand Kishor Kalra Mr. Greater Kailash-1.Sourabh Aggarwal Mr.O.South Extension-2. Gurgaon 9810056875 Dr.S. Algen health care pvt. Green Park. Visitech eye center Holy family hospital Medirose ltd.National Market.Delhi Sec-8.Shirisha Mr.Neeraj Aggarwal CFO #1.M. Rockland hospital Indian spinal injuries Promed exports National Market.Devesh CFO B-33-34.Abhijeet Majumdar Mr. Peeragarhi.Sushant lok-1.W. Delhi 9717997188 Mr.Shaley Finance Advicer Mr. Mr.Community Center.Delhi 9716832323 Mr.S.block-A3. Delhi 25267507 25287625 .Akhelesh Acc.Gupta Medical Supridendent Director CEO 27/12. West Patel Nagar.Janakpuri. Okhla Road.Delhi 9810909817 Dr.Vajpa yee CFO Vice president 9810269404 9873588782 9313880425 Delhi 26531408 Ozone pharmaceutical s ltd.Veriender Singel Mr. Janakpuri.Krishan Khanna Depty Manager Mittal Mr.South Extension-2. Vision eye center Skin hospital Steva biotech pvt. hospital Chikitsa hospital National heart institute Umkal hospital Life care innovations pvt.K.Mukul Jain Director 26850033 Mr.Ahuja C-47.Delhi 9810568669 205733150 Financial Analyst CFO R-13. Perragarhi.Head J-12.Virender Vilani Director Director 487/61.East of Kailash.Delhi P-29.K.Community Center.Delhi #49. Delhi 9871465770 Jamia Nagar. Delhi 487/65.Gurgaon B-589.Delhi 9650044606 CFO 42255225 Mr.Ashirwaad Commercial Complex. vasant kunj. Mr. Delhi B-4.Saket.

Mr.Okhla industrial area-2.Pharmac euticals ltd.Ashok Kantoor Mr.Karol Bagh. Delhi 9810007872 9313297471 .Delhi C-55/1.Kantoor hospital S.S.Suresh Garg CA Finance Head 3659/2.A. Gurudwara Road.

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