A PROJECT REPORT

ON
INVESTORS PREFERENCE
TOWARDS MUTUAL FUNDS
Submitted In partial fulfillment of the requirement for the award the degree of

BACHELOR OF BUSINESS
ADMINISTRATION ( affiliated to
CSJMU University )

Ms. Jyoti Singh. Name of Student :

(Assistant professor) Abhishek yadav
Roll no. 21014000655
 B.B.A. (IV Sem)

SCHOOL OF BUSINESSS
MANAGEMENT
C.S.J.M UNIVERSITY , KANPUR
EXECUTIVE SUMMARY

-Mutual funds are a popular

investment choice for many investors
due to their convenience and
accessibility.

-because they offer instant

diversification, allowing them to invest
in a diversified portfolio of stocks,
bonds, or other securities with a
relatively small investment.

-Mutual funds are managed by

professional fund managers, which
can be attractive to investors who do
not have the time or expertise to
manage their own investments.
-Mutual funds can offer a variety of
investment strategies and styles, such
as value investing, growth investing, or
income investing, which can appeal to
investors with different investment
objectives and risk profiles.

-Mutual funds also offer liquidity,

meaning that investors can buy or sell
their shares in the fund at any time,
making it easier to manage their
investments.

-Mutual funds can have varying fee

structures, including management
fees, expense ratios, and transaction
fees, which can impact an investor's
return on investment.
-Investors should carefully research
and compare different mutual funds
before investing, taking into account
factors such as historical
performance, fees, investment
strategy, and risk management.

-Overall, mutual funds can be a

valuable addition to an investor's
portfolio, providing diversification and
professional management expertise.
However, investors should be aware
of the risks and do their due diligence
before making any investment
decisions.
 ACKNOWLEDGEMENT
I want to express my sincere
appreciation to Ms. JYOTI SINGH for
the exceptional aid and guidance she
provided me in finishing my project.
Additionally, I am grateful to our Head
of Department JYOTI SINGH MAM
(COORDINATOR), for granting me the
privilege of working on a project
centered on topic of mutual funds.
Their assistance and valuable input
were instrumental in making the
project a success. Without their
support, completing the project would
not have been feasible.

- Abhishek yadav
 DECLARATION
I attest that this project, bearing the
“INVESTORS PREFERENCE
TOWARDS MUTUAL FUNDS”. It is a
project of my effort, and guidance
provided my MENTOR But
grounded on personal investigation
and inquiry. Furthermore, I confirm
that I have properly recognized and
disclosed all relevant materials and
references utilized in its creation,
which may consist of books,
articles, reports, class notes, and
any other written or electronic
materials.
-Abhishek yadav
BBA 2nd year
 INDEX
Chapter -1 Introduction to study
Chapter -2 Objectives of study
Chapter -3 Mutual Funds
Chapter -4 Types Of Mutual funds
Chapter -5 Investors preference
Chapter -6 Review Literature
Chapter -7 Research Methodology
Chapter -8 Analysis
Chapter -1
INTRODUCTION TO
STUDY
The portfolio of a mutual fund is
designed and maintained to align
with the investment goals outlined
in its
prospectus. Mutual fundis an
investment tool that combines
resources from multiple investors
to buy securities such as bonds,
stocks, money market instruments,
and other assets. The fund is
managed by trained financial
experts who decide how to
distribute the fund's assets and
strive to generate returns for its
investors in the form of income or
capital gains.
In this study collection of primary
data through the online survey.
And convey the perception of
Investors towards Mutual Funds.
 Chapter -2
OBJECTIVE OF THE
STUDY
1Assessing investor knowledge and
awareness of mutual funds.
2Measuring investor satisfaction with their
mutual fund investments.
3-Identifying factors that influence investors'
decisions to invest in mutual funds.
4Understanding investors' investment goals
and risk tolerance.
5Evaluating the effectiveness of mutual fund
advertising and marketing efforts.
6Assessing the performance of different
mutual fund products and services.
7-Understanding investors' preferences
for different types of mutual funds.
 Chapter-3

What is mutual funds ?

A mutual fund is a type of investment vehicle that pools money from multiple investors to
invest in a diversified portfolio of stocks, bonds, or other securities.

Professional fund managers are responsible for managing the mutual fund's investments and
making decisions on behalf of the investors. They analyze market conditions, economic trends,
and the performance of individual securities to make informed investment decisions that align
with the fund's investment objectives. In essence, mutual fund investors entrust their

money to the fund managers, who use their expertise to manage the fund's assets
and maximize returns.

Investorsinamutualfundpurchaseshares, which
represent a portion of the fund's holdings.
The value of these shares is based on the net
asset value (NAV)of the fund,which is the total
value of the securitiesheld by the fund minus
Mutual funds provide investors with a way to
invest in a diversified portfolio of securities,
which helps to reduce risk by spreading
investments acrossdifferent assets.
Professional fund managers oversee the
investment process, making it easier for investors
who may not have the time, knowledge, or
expertise to manage their own investments.
Additionally, mutual fund shares can be
bought and sold on an exchange, providing
investors with liquidity and the ability to
easily move their money in and out of the
fund.
Thevalueofthesharesiscalculated by dividing
the total value of the fund's assets minus any
liabilities by the numberofoutstanding
shares,which is known asthe net asset value
(NAV).
They are also regulated by securities
regulators, which provides a level of
investorprotection. mutual funds are a
type of investment that allows
individuals to invest in a
diversified portfolio of securities. The
funds are managed by professional
fund managers who make investment
decisions on behalf of the investors.
Investors purchase shares in the fund,
which represent a portion of the
overall holdings. The value of these
shares is based on the net asset value
(NAV) of the fund, which is calculated
by subtracting any liabilities from the
total value of the securities held and
then dividing by the number of shares
outstanding. Mutual funds provide
investors with the benefits of
diversification, professional
management, and liquidity.

Chapter -4

5 Major Types of Mutual Funds

1Equity funds: These mutual funds invest primarily in stocks or equities of publicly traded
companies. Equity funds may focus on specific sectors or industries, such as technology,
healthcare, or energy.

2Debt funds : A debt mutual fund is a type of investment vehicle that pools money from
multiple investors to purchase fixed income securities, such as bonds, treasury bills, or
corporate debt. Unlike equity funds that invest primarily in stocks, debt mutual funds focus on
debt securities that provide a steady income stream to investors. The fund manager of a debt
mutual fund is responsible for analyzing credit risk, maturity, yield, and other factors to create a
diversified portfolio of fixed income securities. Debt mutual funds typically offer lower risk and
lower returns than equity funds and are a popular choice for investors seeking regular income
and capital preservation. However, it's important to note that debt mutual funds are not
completely risk-free, and the value of investments can fluctuate based on changes in interest
rates, credit quality, and other market factors.

3- Hybrid Funds: A hybrid mutual fund, also known as a balanced fund, is a type of
investment vehicle that combines the features of both equity and debt funds. A hybrid mutual
fund invests in a mix of stocks, bonds, and other securities, with the aim of providing a balance
between capital appreciation and income generation. The asset allocation of a hybrid fund can
vary depending on the investment objective of the fund. For example, a conservative hybrid
fund may have a higher allocation towards fixed income securities, while an aggressive hybrid
fund may have a higher allocation towards equities. The fund manager of a hybrid mutual fund
is responsible for adjusting the asset allocation based on market conditions and the
investment objectives of the fund. Hybrid mutual funds can offer investors the benefits of
diversification, professional management, and liquidity. However, it's important to note that the
value of investments can fluctuate based on market conditions and the performance of
individual securities.

4- Open Ended Funds : An open-ended mutual fund is a type of investment vehicle that
allows investors to buy and sell shares at any time, based on the current net asset value (NAV)
of the fund. Open-ended mutual funds do not have a fixed number of shares, and the fund size
can expand or contract based on investor demand. When investors purchase shares in an open
-ended mutual fund, the fund manager uses the money to purchase a diversified portfolio of
securities, such as stocks, bonds, or other assets. The NAV of the fund is calculated based on
the total value of the fund's holdings minus any liabilities, divided by the number of shares
outstanding. Open-ended mutual funds are managed by professional fund managers, who are
responsible for selecting and managing the fund's investments, in accordance with the fund's
investment objectives. The advantages of open-ended mutual funds include liquidity,
professional management, and diversification. However, investors should be aware that open-
ended mutual funds may have fees and expenses associated with them, which can impact the
returns on their investment.

5- Close Ended Funds : A closed-ended mutual fund is a type of investment vehicle that
has a fixed number of shares available for purchase, which are traded on an exchange. Once
the shares of a closed-ended fund are sold out, the fund is closed to new investors, and the
only way to buy or sell shares is on the exchange. Unlike open-ended mutual funds, the number
of shares in a closedended fund remains fixed, and the fund does not issue or redeem shares
based on investor demand. The price of shares in a closedended mutual fund is determined by
the supply and demand on the exchange, and may trade at a premium or discount to the net
asset value (NAV) of the fund. The advantages of closed-ended mutual funds include the
potential for trading at a discount to NAV, and the ability to invest in unique or specialized
investment strategies. However, closedended mutual funds may have higher fees and
expenses than open-ended funds, and investors should be aware of the liquidity risks
associated with investing in shares that may not trade frequently on the exchange.

Chapter -5

Reasons why Investors Prefer

Mutual Funds

*Diversification: Mutual funds allow investors to diversify their portfolio across multiple
securities, thereby reducing risk.

*Professional management: Mutual funds are managed by professional fund managers who
have access to research and expertise in selecting and managing investments.

*Convenience: Mutual funds can be easily bought and sold, and offer a wide range of
investment options to suit different investment goals and risk profiles. *Accessibility: Mutual
funds are available to investors of all levels, including those with small amounts to invest.
Transparency: Mutual funds disclose their holdings and performance regularly, allowing
investors to make informed investment decisions.

* Tax efficiency: Mutual funds are structured to be tax-efficient, with features such as taxloss
harvesting and low turnover rates.
*Cost-effective: Mutual funds offer economies of scale in terms of transaction costs and
management fees, making them a cost-effective investment option.

*Risk management: Mutual funds use various risk management techniques, such as
diversification, to help manage the risks associated with investing.

*Flexibility: Mutual funds offer a range of investment options to suit different investment goals
and risk profiles, such as equity funds, debt funds, and hybrid funds.

*Low minimum investment: Many mutual funds have low minimum investment requirements,
making them accessible to a wide range of investors. Retirement savings: Mutual funds can be
purchased through retirement accounts such as IRAs, making them a popular investment
option for retirement savings. Regular income: Many mutual funds offer regular income in the
form of dividends or interest payments.

*Professional advice: Investors can receive professional investment advice from financial

advisors who investing. specialize in mutual fund

Mutual fund and reported

*Performance performance is tracking: tracked by
various financial media outlets, making it easy for investors to monitor their investments.

*Less time-consuming: Mutual fund investing can be less time-consuming than investing in
individual stocks, as the fund manager makes the investment decisions.

*Reduced risk of loss: Mutual funds provide a buffer against the risk of loss through
diversification, and are managed by professionals who have access to research and expertise.

*Global exposure: Mutual funds offer investors exposure to global markets, which can provide
diversification and access to a wider range of investment opportunities.

*Historical performance: Over the long-term, mutual funds have historically delivered
competitive returns compared to other investment options such as individual stocks or bonds.

Chapter -6 Review

of Literature

Mutual funds have become an increasingly popular investment option for investors around the
world. As a result, there has been a significant amount of research conducted on mutual funds
in recent years. Here is a brief overview of some of the key findings from the literature: (Keith
Cuthbertson,2016 )

Performance: One of the most commonly studied aspects of mutual funds is their performance.
A number of studies have found that mutual fund performance is, on average, not significantly
different from the performance of a benchmark index. However, there is considerable variation
in performance across individual funds, with some outperforming the market and others
underperforming.

Fees: Mutual fund fees have also been a major focus of research. Studies have
consistently found that high fees are associated with lower returns, and that actively managed
funds tend to have higher fees than passive index funds.

Manager skill: Another area of interest in the literature is whether mutual fund managers have
skill in selecting stocks that will outperform the market. Some studies have found evidence of
skill, while others have not.
Investor behavior: Researchers have also studied how investor behavior affects mutual fund
performance. For example, some studies have found that investors tend to buy funds that have
recently performed well, which can lead to buying high and selling low.

Risk: Finally, there has been research on the risk associated with mutual funds. Studies have
found that some funds have higher levels of risk than others, and that investors should
carefully consider their risk tolerance when selecting a fund.

Overall, the literature on mutual funds suggests that they can be a useful investment option for
many investors, but that it is important to carefully consider factors such as fees, performance,
and risk before investing.

Chapter -7

Research Methodology
1-Popuation/Universe: In this research population is all the investors who invest in
different types of sectors which also includes Mutual funds.

2-Sampling Unit: In this research, sample includes different Students, teachers, relatives, and
others of different age , gender etc who prefer investment or think about investment.

3Sampling size: collection of sample size includes 65+ indivisual units

4Sampling Procedure: Create a source like google form which is a primary research and was
shared to different individuals to anlayse the data

5Data collection tool: In this research project data is collected through Google forms which is
the primary method of research .

6Statistical tools: In this project report data showed in pie chart according to their question
output.( after analysis of data )
 Chapter -8

ANALYSIS
1-Gender:

According to my survey men takes more risk rather than women.

Generally women invest in safe side like gold, Silver ,etc.

Male - 82.4% Female- 17.6%
2-Age:

According to my survey,
Most investor are from (20-25) age
group because this age group have
a passion to do something new or
learn new .
This data also shows every age
group directly or indirectly involved
in investment to earn or increase
their money.
3-Occupation:

According to my survey ,
Most investors come from student
side . which is not correct because
in my survey most candidate are
student and some are employed
and some are others like other
fields aspirants.
But mostly is this Employed and
entrepreneur are included.

4-Do you prefer to invest

your money orthink about
investment?

This data show majority prefer to

invest their money atleast think

about investment.
5-In which sector do you
prefer invest your money?

This data of pie chart shows more investors

prefer mutual funds rather then other .
6-Mutual funds are started
at low investment amount
( this point encourage
investment )?

According to my survey ,

More then 50% population are agree to mutual funds are more reliable and started at low
amount.

7-Mutual funds less risky and

not required special knowledge
for investment.
In this data more then 44% population agree.

Mutual funds are safe investment and not required special knowledge or time.

Mutual fund are Trust which is run by experts and regulated by SEBI.

This data also shows popularity of mutual funds. Because only 8-14% of population dislikes or
disagree to invest or support of mutual funds.

8-How often do you prefer to

invest money?
According to my survey, maximum investors invest their money in this market Monthly or
occasionally.

9-Why do you prefer investing ?

According to my survey ,
Investors invest their money for generate extra income source , earn money or learn new things
.

10-Which type of mutual funds

you invest or prefer ?
Most of Investors prefer to invest their money in Equity mutual funds. Because return is not fix
and some times return is too much high.

That is why more investors prefer to invest their money is Equity.

And some are also invest in Debt mutual funds because play safe. In debt intrest are already
decided.
11-What is the approximate
amount you invest ?

This survey says investors invest in Low amount as well as high amount it is depend on their
financial power.
12-What is your perception of
mutual funds as an investment
option ?

This data clearly shows perception of

investors towards mutual funds is good over
all.

13-Which source do you to

prefer invest in mutual fund ?
This data shows Investors Invest their money via App or website or some investors use both of
these.

ANALYSIS AND
FINDINGS

1Investors have a significant

preference towards mutual funds.
2 Investors are willing to invest in
mutual funds to earn money, generate
extra income source and begin to
learn some new prospects about
investing .
3Past performance, risk management,
and expense ratios are the key factors
considered while selecting mutual
funds.
4This is safer than Shares because it
is less risky in nature and more
diversified
5- It is trustworthy because it is
regulated by SEBI.

Annexure
1. Name of the programme : BBA
Specialization: NO

2.Name of the Student: RAJ PUSOLA

3. Roll Number:21185000119

4. Examination Registration Number:

CSJMA21001952907

5. Mobile Number of Student: 8188026395

Email: rajpusola8009825390@gmail.com

6. Name of Study center: SCHOOL OF

BUSINESS MANAGEMENT

8. Name of Proposed Guide: MR. SURENDRA

KUMAR
8. Mobile Number of Guide: 9889085952
9.Institution / Organization where the guide works:
SCHOOL OF BUSINESS MANAGEMENT
10.Title of the Project: Investors preference
towards mutual funds
Date: 13/05/2023