A PROJECT REPORT ON

STUDY OF INVESTORS PERCEPTION TOWARDS

MUTUAL FUND INVESTMENT IN GUWAHATI
CITY

Submitted in partial fulfillment for the award of the degree of Bachelor of

Business Administration (BBA) under Gauhati University

Submitted By
TUSHAR BARDHAN
Bachelor of Business Administration
ROLL NO: UM-211-017-0081

UNDER THE GUIDANCE OF

Prof. Pankaj Kr. Choudhary

Assistant Professor
Department of BBA

GAUHATI COMMERCE COLLEGE

 R.G.B ROAD GAUHATI- 781021
2023

CERTIFICATE OF ORIGINALITY

This is to certify that Tushar Bardhan, a student of Bachelor of Business Administration (BBA) 5 th
semester bearing Roll No. UM-211-017-0081, Registration No. 21005755 of Gauhati Commerce
College, Tushar Bardhan have prepared a project entitled, “A Study of investors perception
towards mutual fund investment in Guwahati city’’ in partial fulfillment of the requirement for
the graduate degree in Business Administration under Gauhati University.

I hereby declare that the project undertaken by him is carried out under my overall supervision
and guidance. And to the best of my knowledge this project has not been submitted at any time to
any other University or Institute for any Degree or Diploma. It is also to be certified that the project
is original and is exclusively prepared by him.

Forwarded by: Certified By:

Dr. Anjali Bhuyan Deka Pankaj Kr. Choudhary
Co-ordinator Asst. Professor
BBA Department BBA Department
Gauhati Commerce College Gauhati Commerce College

Countersigned by:
Dr. Homeswar Kalita
Principal
Gauhati Commerce College
 DECLARATION

I hereby declare that this project report on “A STUDY OF INVESTORS PERCEPTION

TOWARDS MUTUAL FUND INVESTMENT IN GUWAHATI CITY” has been prepared by
me during the month of October, 2023 under the guidance of Sir Pankaj Kr. Choudhary
department of BBA, Gauhati Commerce College, Guwahati.

I also hereby declare that this project report has not been submitted to any university or institution
for award of any degree or diploma.

Place: (Signature)

Date:

Tushar Bardhan
BBA 5th semester
Roll No: UM-211-017-0081
G.U. Reg. No: 21005755
Gauhati Commerce College
 CERTIFICATE FROM THE GUIDE

This is to certify that this project report on “A STUDY OF INVESTORS PERCEPTION

TOWARDS MUTUAL FUND INVESTMENT IN GUWAHATI CITY” is based on an original
project study conducted by Tushar Bardhan under my guidance.

………………………

Place: Signature of the guide

Date: Pankaj Kr. Choudhary
Asst. Professor
BBA Department
Gauhati Commerce College
 ACKNOWLEDGMENT

I express my sincere thanks to Dr. Homeswar Kalita, Principal, Gauhati Commerce College for his
valuable suggestions and help in preparing this project report.

I would also take the opportunity to thank our coordinator Dr. Anjali Bhuyan Deka for the
continuous support and motivation in preparing and completing the project.

I express my deep sense of gratitude to my guide Prof. Pankaj Kr. Choudhary, Dept of BBA,
Gauhati Commerce College for his valuable guidance in this endeavor. He has been a constant
source of inspiration and I sincerely thank him for his suggestion and help in preparing this report.

Finally, it is my foremost duty to thank my respondents who helped me to complete my field work
without which the project report would not have been possible.

Place: Signature:

Date: Tushar Bardhan

BBA 5th Semester
 PREFACE

In the dynamic world of finance and investments, mutual funds have emerged as a vital
instrument for individuals seeking to grow their wealth and achieve financial objectives.
The mutual fund industry has witnessed substantial growth and diversification in recent
years, offering investors a wide array of options tailored to their preferences and risk
tolerance. Amidst this backdrop, it becomes essential to comprehend the perspectives of
investors, as their perceptions shape the industry's future trajectory.

This project, titled "Study of Investors' Perception Towards Mutual Fund Investment in
Guwahati City," aims to explore the intricate relationship between investors and mutual
fund investments. Guwahati City, with its unique economic and cultural dynamics, provides
an intriguing setting for this examination. The project delves into the minds of investors in
Guwahati, unraveling their attitudes, beliefs, and apprehensions surrounding mutual fund
investments. By doing so, it aspires to contribute valuable insights that can guide investors,
financial institutions, and policymakers in making informed decisions.

The research journey encompasses a comprehensive analysis of existing literature, a

systematic data collection process, and diligent data analysis. It is the culmination of
countless hours of study, engagement with investors, and a commitment to delivering
knowledge that can be employed for both academic and practical purposes.

This project wouldn't have been conceivable without the support and guidance of numerous
individuals. We wish to express our gratitude to our professors, who provided us with their
expertise and wisdom, making this project intellectually rewarding. We extend our heartfelt
thanks to the investors in Guwahati City who generously shared their perspectives, forming
the backbone of our study.

As you embark on this exploratory voyage through the pages of this project, we hope it
inspires curiosity and encourages a more profound understanding of the investment
landscape. May the insights presented here serve as a valuable resource for those navigating
the intricate world of mutual fund investments, and may they ignite further inquiries into
the fascinating realm of behavioral finance.
Sl. No Contents Page No.
1 CERTIFICATION OF ORIGINALITY
DECLARATION
CERTIFICATE FROM THE GUIDE
ACKNOWLEDGEMENT
PREFACE
LIST OF TABLES
LIST OF FIGURES
EXECUTIVE SUMMARY

2 Chapter I – Introduction 1–7

1.1 Introduction of the study 2
1.2 Objectives of the study 3
1.3 Scope 4
1.4 Significance 5

1.5 Limitations 6
7
1.6 Research Methodology:
1.6.1 Introduction
1.6.2 Type of research
1.6.3 Population of the study
1.6.4 Sample size
1.6.5 Sampling technique
1.6.6 Research instrument

3 Chapter II – Review of literature 8–9

4 Chapter III – Brief profile of organization 10 – 17

5 Chapter IV – About Mutual Fund 18 – 21

6 Chapter V – Data Analysis and Interpretation 22 – 36

7 Chapter VI – Findings, Recommendation and conclusion: 37 – 40

6.1 Findings 38
6.2 Recommendations 39
6.3 Conclusion 40

8 References 41

9 Bibliography 42-43
 10 Annexure

Table No. TITLE OF THE TABLE Page No.

5.1 Gender of respondents 23

5.2 Age of respondents 24

5.3 Qualifications 25

5.4 Occupation 26

5.5 Annual income 27

5.6 Type of investment 28

5.7 Source of investment advice 29

5.8 Awareness of Investment in Mutual Fund 30

5.9 Used scheme in Mutual Fund 31

5.10 Mode of Investment in Mutual Fund 32

5.11 Investment periods in Mutual Fund 33

5.12 Factors prefer while investor invest 34

5.13 Feature of Mutual Fund allure the investor 35

5.14 Source of purchased Mutual Fund 36

5.15 Preferred Type of Mutual Fund 37

Figure No. TITLE OF THE FIGURE Page No.

5.1 Gender of respondents 23

5.2 Age of respondents 24

5.3 Qualifications 25

5.4 Occupation 26

5.5 Annual income 27

5.6 Type of investment 28

5.7 Source of investment advice 29

5.8 Awareness of Investment in Mutual Fund 30

5.9 Used scheme in Mutual Fund 31

5.10 Mode of Investment in Mutual Fund 32

5.11 Investment periods in Mutual Fund 33

5.12 Factors prefer while investor invest 34

5.13 Feature of Mutual Fund allure the investor 35

5.14 Source of purchased Mutual Fund 36

5.15 Preferred Type of Mutual Fund 37

 EXECUTIVE SUMMARY

TITLE OF THE PROJECT: “A Study of investors perception towards mutual fund

investment in Guwahati city’’

DURATION: 1 Month (15th October to 15th November)

INSTITUTIONAL GUIDE:

Asst. Professor Pankaj Kumar Choudhary, BBA department, Gauhati Commerce

College.

SCOPE OF THE
STUDY: OBJECTIVES OF THE STUDY:
Project will provide
the better platform to 1. To identify the preferred sources of information for investors
understand the history considering mutual fund investments.
understand the
history, growth, 2. To examine the level of risk perception among potential mutual
Various aspects of fund investors in Guwahati City.
mutual fund. It will
analyze the
 3. To explore the impact of age and income on investors' attitudes toward mutual fund
investments.

4. To assess the role of financial literacy in shaping investors' perceptions of mutual funds.

5. To investigate the influence of past investment experience on current mutual fund

investment decisions.

6. To analyze the correlation between investment goals and the types of mutual funds
preferred by investors in Guwahati City.

7. To evaluate the impact of market volatility and economic conditions on investors'

decisions to enter or exit mutual fund investments in the context of Guwahati City.

LIMITATIONS OF THE STUDY

 Risk of losing money

 Price Risk

 Interest Rate Risk.

 Credit Risk.
 Liquidity Risk

RESEARCH METHODOLOGY

This unit encompasses the methodology adopted for the study and includes the population
framework, sampling framework, various tools and techniques adopted for the analysis and
interpretation of the collected data.

Type Of Research
The study is descriptive in nature.

Population Of the Study

Population for the purpose of the study comprises of all the customers specially the businessmen
financial consultant, currently working in the city of the Guwahati, Assam.

Sample Size
80 respondents have been selected for acquiring data required for the purpose of the study.

Sampling Technique
The sampling technique followed in this research is convenience sampling.

Research instrument
The research instrument used in this study is a structured questionnaire consisting of close ended
questions.
CHAPTER-1
INTRODUCTION
1.1 Introduction to the study

In the contemporary financial landscape, the decision to invest in mutual funds is influenced
by a myriad of factors, including individual preferences, risk perceptions, and market
conditions. Understanding how investors perceive mutual fund investments is a critical aspect
of financial research, as these perceptions shape investment choices and impact the broader
economic environment. This study delves into the distinct context of Guwahati City, a vibrant
metropolis in the northeastern region of India, to examine the perceptions, attitudes, and
apprehensions of investors towards mutual fund investments. By shedding light on these
intricate dynamics, this research aims to provide valuable insights that can assist investors in
making informed choices and empower financial institutions to better serve their clientele.

Guwahati City, as a unique economic and cultural hub, offers an engaging backdrop for this
investigation. The mutual fund industry's growth and diversification have reached every
corner of the city, making it crucial to comprehend the factors that drive investor decisions.
This project seeks to bridge the gap between investor behavior and mutual fund investment,
thereby contributing to the expanding body of knowledge in behavioral finance. As we
traverse through this research, we embark on a journey to uncover the nuanced world of
investor perceptions and to explore the implications of these perceptions on the mutual fund
industry in Guwahati City.
1.2 Objectives of the study:

8. To identify the preferred sources of information for investors considering mutual fund
investments.

9. To examine the level of risk perception among potential mutual fund investors in
Guwahati City.

10. To explore the impact of age and income on investors' attitudes toward mutual fund
investments.

11. To assess the role of financial literacy in shaping investors' perceptions of mutual funds.

12. To investigate the influence of past investment experience on current mutual fund
investment decisions.

13. To analyze the correlation between investment goals and the types of mutual funds
preferred by investors in Guwahati City.

14. To evaluate the impact of market volatility and economic conditions on investors'
decisions to enter or exit mutual fund investments in the context of Guwahati City.
1.3 Scope of the study

1. Project will provide the better platform to understand the history understand the
history,growth, Various aspects of mutual fund. .

2. It will analyze the investment behavior of individuals in India, shedding light on the factors
that influence their decisions and attitudes towards mutual funds.

3. The study seeks to uncover the factors and preference patterns of existing customers of Kotak
Securities in the domain of mutual fund investments, contributing to a better understanding of
their client needs and choices.

4. Additionally, it endeavors to emphasize the significance of mutual funds as a financial

instrument in wealth creation and portfolio diversification, promoting awareness about their
role in modern investment strategies.

5. The project also intends to assess the impact of digitalization and technological advancements
in reshaping the mutual fund investment landscape, highlighting the evolving nature of the
industry.

6. It will explore the potential for sustainable and socially responsible investment options within
the mutual fund sector, recognizing the growing importance of ethical and environmentally
conscious investing practices.
1.4 Significance of the study

a) Portfolio Diversification: Each investor in the fund is a part owner of all the fund’s
assets, thus enabling him to hold a diversified investment portfolio even with a small
amount of investment that would otherwise require big capital.

b) Affordability & Convenience (Invest Small Amounts): For many investors, it could be
more costly to directly purchase all of the individual securities held by a single mutual
fund. By contrast, the minimum initial investments for most mutual funds are more
affordable.

c) Return Potential: Over a medium to long term, Mutual Fund has the potential to provide
a higher return as they invest in a diversified basket of selected securities.

d) Liquidity: You can easily redeem (liquidate) units of open-ended mutual fund schemes to
meet your financial needs on any business day (when the stock markets and/or banks are
open), so you have easy access to your money. Upon redemption, the redemption amount
is credited in your bank account within one day to 3-4 days, depending upon the type of
scheme e.g., in respect of Liquid Funds and Overnight Funds, the redemption amount is
paid out the next business day.

e) Low Cost: Mutual Funds are relatively less expensive way to invest compared to directly
investing in the capital market because the benefits of scale in brokerage, custodial and
other fess translate into lower cost for the investors.

f) Well-Regulated: Mutual Funds are regulated by the capital markets regulator, Securities
and Exchange Board of India (SEBI) under SEBI (Mutual Funds) Regulations, 1996. SEBI
has laid down stringent rules and regulations keeping investor protection, transparency
with appropriate risk mitigation framework and fair valuation principles.
1.5 Limitations of the study

a) Risk of losing money: Investments in equity and equity related instruments involve a
degree of risk and investors should not invest in the equity schemes unless they can afford
to take the risk of possible loss of principal.

b) Price Risk: Equity shares and equity related instruments are volatile and prone to price
fluctuations on a daily basis.

c) Interest Rate Risk: Market value of fixed income securities is generally inversely related
to interest rate movement. Generally, when interest rates rise, prices of existing fixed
income securities fall and when interest rates drop, such prices increase. Accordingly, value
of a scheme portfolio may fall if the market interest rate rises and may appreciate when the
market interest rate comes down. The extent of fall or rise in the prices depends upon the
coupon and maturity of the security. It also depends upon the yield level at which the
security is being traded.

d) Credit Risk: Credit risk means that the issuer of the scheme is unable to pay what was
promised as interest. Usually, agencies which handle investments are rated by rating
agencies on these criteria. So, a person will always see that a firm with a high rating will
pay less and vice- versa.

e) Liquidity Risk: Liquidity risk refers to the difficulty to redeem an investment without
incurring a loss in the value of the instrument. It can also occur when a seller is unable to
find buyer for the security.
1.6 Research Methodology

1.6.1 INTRODUCTION
This unit encompasses the methodology adopted for the study and includes the population
framework, sampling framework, various tools and techniques adopted for the analysis and
interpretation of the collected data.

1.6.2 TYPE OF RESEARCH

The study is descriptive in nature because it tries to explain the customer’s satisfaction towards the
investment in mutual fund.

1.6.3 POPULATION OF THE STUDY

Population for the purpose of the study comprises of all the customers specially the businessmen
(shop owners, distributors, owner of any mall, hotels, restaurants, , etc.), Financal consultant,
currently working in the city of the Guwahati, Assam.

1.6.4 SAMPLE SIZE

For the purpose of collecting data, 80 respondents have been selected for acquiring data required
for the purpose of the study.

1.6.5 SAMPLING TECHNIQUE

The sampling technique followed in this research is mostly convenience sampling.

1.6.6 RESEARCH INSTRUMENT

The research instrument used in this study is a structured questionnaire consisting of close ended
questions.
 CHAPTER – II

REVIEW OF LITERATURE
INTRODUCTION

The realm of mutual fund investments has evolved significantly in recent years, becoming a pivotal
avenue for individuals seeking to grow their wealth and attain financial objectives. This literature
review offers a critical examination of prior research related to investors' perceptions of mutual
fund investments. It aims to provide a comprehensive understanding of the factors that shape
investor behavior and decision-making in this specific context, while also identifying gaps in
current knowledge.

Historical Evolution of Mutual Funds

Mutual funds have a rich historical evolution dating back to the 18th century, with major
developments occurring in the 20th century. Early studies such as Markowitz's (1952) work on
Modern Portfolio Theory and Sharpe's (1966) Capital Asset Pricing Model (CAPM) laid the
theoretical groundwork for understanding risk and return in investment. Subsequent research, such
as Fama and French's (1993) Three-Factor Model, introduced more nuanced perspectives on risk
and returns.

Investor Behavior and Perceptions

Behavioral finance has become instrumental in comprehending investor behavior. Researchers like
Kahneman and Tversky (1979) have explored cognitive biases that influence investment decisions,
shedding light on the irrationality of investors. Studies by Barber and Odean (2000) have delved
into the effects of overconfidence and loss aversion on investor trading patterns. Research has also
focused on understanding how investor demographics, such as age and income, impact their
perception of mutual fund investments.

Information Sources and Digitalization

As the digital age has transformed the accessibility of information, studies like Grinblatt and
Keloharju's (2001) research on the role of information in investment decisions and Barber and
Odean's (2001) exploration of online trading behaviors have become increasingly relevant. This
shift has also influenced the role of financial advisors and the sources from which investors seek
information.

Regulatory Awareness and Investor Protection Measures

Recent studies, including research by Cohn et al. (2014), have focused on the impact of regulatory
awareness and investor protection measures on investor confidence. These measures play a critical
role in shaping investors' trust in mutual funds and their willingness to participate in the market.

Conclusion

The literature reviewed here provides a solid foundation for understanding the intricacies of
investors' perceptions towards mutual fund investments. However, several research gaps remain,
particularly concerning the specific context of Guwahati City. This project aims to contribute to
this evolving field of knowledge by addressing these gaps and offering insights into the unique
dynamics of mutual fund investments in the city.
 CHAPTER – III
BRIEF PROFILE OF
ORGANIZATION
KOTAK SECURITIES

Kotak Securities Limited (KSL), is one of India’s oldest stock broking company, offering full-
fledged investment services across asset classes, including equity, debt, mutual funds,
commodities and currencies - through a single-login platform. Their pan-India presence,
technology-first approach and simplified investment solutions makes them a preferred choice
for millions of investors across India.

Kotak Securities is a subsidiary of Kotak Mahindra Bank which is an Indian banking and financial
services company headquartered in Mumbai. It offers banking products and financial services for
corporate and retail customers in the areas of personal finance, investment banking, life insurance,
and wealth management. It is India's third largest private sector bank by market capitalisation after
HDFC Bank and ICICI Bank. As of 31 March , the bank has a national footprint of 1,780 branches
and 2,963 ATMs

Established in 1985, Kotak Mahindra Group is one of India's leading financial services
conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship
company, received banking license from the Reserve Bank of India (RBI), becoming the first non-
banking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd (KMBL)
1300+ business locations (branches and sub-broker) spread across 370 cities and towns. It has
more than 39,00,000 customers. It is registered with NSDL as well as CDSL as a depository
participant. Providing a one-step solution for client trading in the equities market.

The Company is engaged in the activity of mortgage financing, loan against securities, gold
loans, margin funding and other consumer financing products.

Kotak Securities is professionally managed and shares the professional values and ethos of its
parent company, Kotak Mahindra Group and has acquired and maintained a reputation for
reliability, transparency of operations and absolute integrity. A steady growth rate validates
the trust that industry has reposed in the Company.

Kotak Securities offers advice and execution platform for the entire range of financial services
covering products ranging from Equities and derivatives, Commodities, Wealth management,
asset management, financial consultancy and many more

Objectives of KOTAK SECURITIES

1. Client Wealth Maximization: One of the primary objectives of Kotak Securities is to assist
clients in achieving their financial goals by providing them with investment and trading
solutions that optimize returns and minimize risks.

2. Market Leadership: Kotak Securities may strive to maintain a strong position in the
securities and brokerage industry, consistently innovating and offering cutting-edge
technology to meet the evolving needs of investors.

3. Compliance and Ethical Practices: Adherence to legal and regulatory requirements is a

paramount objective. Kotak Securities aims to maintain a high standard of compliance and
ethics, ensuring the protection and trust of its clients.

4. Customer Satisfaction: Providing top-notch customer service and satisfaction is a key

objective. Kotak Securities seeks to build long-term relationships with clients, addressing their
financial needs and concerns effectively.

5. Diversified Product Offerings: Kotak Securities may aim to offer a diversified range of
financial products and services, including equities, derivatives, mutual funds, and more, to
cater to the varied investment preferences and strategies of its clients.
 VISION, VALUES & STR ATEGY

VISION

a) To become the most respected company in the financial services space in India.

VALUES

a) Values of Kotak Securities are summarized in one acronym GIFTS.

b) Growth with a focused team of dynamic professionals.

c) Integrity in all aspects of business- no compromise in any situation.

d) Fairness in all dealings - employees, customers, vendors and shareholders all included.
e) Transparency in what we do- and in how and why we do it.

f) Service orientation is our core value, imbibed by all sales as well as support teams.
 STRATEGIES

There are three basic strategies of Kotak Securities:

BUSINESS STRATEGY

a) Steady growth by adapting to the changing environment without losing the focus
on our core domain of financial services.
b) De - risked business through multiple products and a diversified revenue system.

c) Knowledge is the key to power superior financial decisions.

d) Keep costs low and continuously strive for innovation.

CUSTOMER STRATEGY

a) Remain largely a retail focused organization, driving stickiness through

knowledge and quality service.
b) Cater to untapped areas in semi urban and rural areas, which is relatively safe
from cut-throat competition.
c) Target the micro, small and medium enterprises mushrooming across the
country through a cluster approach for lending business.
d) Use wide multi-modal network serving as one stop shop to customer

PEOPLE STRATEGY

a) Attract the best talent and driven people.

b) Ensure a conducive merit environment.

c) Liberal ownership -sharing.

 Brand Kotak Securities

In today ' world, a brand is considered as the most valuable asset of an organization. It serves
as the medium that connects our numerous offerings to customers adding value to their lives.
It is an intangible voice that speaks volumes about the company.

With a product class that fulfills customer expectations and often exceeds them, we have
created a diverse portfolio, a broad spectrum of offerings with a business model that
shareholders and investors have come to trust.

We are a brand that is not afraid to dream big and see those dreams to fruition. Our single-
minded focus in providing investment advice while ensuring the highest standards of ethics
and compliance, transparency while transacting business and staying ahead of the curve in
technological innovations has helped us build credibility and a reputation, we are proud of
today.

Lastly at Kotak Securities it is our firm belief that a brand is the face of a company's work
culture. It is something that introduces you to our customers and to the world. Our brand is
your identity; it narrates your success story and serves as a sign of how you represent us with
a sense of pride and ownership.

Some Specialties of Kotak Securities:

Financing, Wealth and Assets Management, Financial Advisory & Broking, Distribution,
Institutional Equities, Realty & Property Advisory Services, Investment Banking, Mutual
Funds, Housing Finance.
Products of Kotak Securities

CASH MARKET
a) Equity shares trading platform

b) Mutual fund distribution

c) Insurance distribution

d) Depository services

e) Portfolio management services

f) Investment banking

g) Bonds

h) Initial public offer

COMMODITY MARKET

a) Commodities trading platform

b) Derivatives -metallic and agrarian products

c) Loans and mortgages -gold loans, home loans and other loans

OTHERS
a) Structured products

b) Credit finance and securities

c) Research reports

d) Asset management

e) Wealth management

f) Offshore investment

g) Capital market advisor

Reasons to choose Kotak Securities

Industry experience:

a) 4 lakhs+ active clients

b) Rs 2,56,589Cr assets under advice

c) 19000+ employees

d) 2500 service location.

Tools and Calculators:

a) Advanced goal based and SIP calculators

b) Advanced performed tracking

c) Portfolio tracking and rebalance alert

Digital platform:

a) Invest in schemes of leading Mutual fund companies from single website and app

b) Track investment anytime, anywhere.

c) Paperless and hassle-free account opening and transactional process.

 CHAPTER IV
ABOUT MUTUAL FUND
 4.1 What Is a Mutual Fund?
A mutual fund is a type of financial vehicle made up of a pool of money collected from many
investors to invest in securities like stocks, bonds, money market instruments, and other assets.
Mutual funds are operated by professional money managers, who allocate the fund's assets and
attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is
structured and maintained to match the investment objectives stated in its prospectus.

Mutual funds give small or individual investors access to professionally managed portfolios of
equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in the
gains or losses of the fund. Mutual funds invest in a vast number of securities, and performance is
usually tracked as the change in the total market cap of the fund derived by the aggregating
performance of the underlying investments.

4.2 How Mutual Funds Works

A mutual fund is both an investment and an actual company. This dual nature may seem strange,
but it is no different from how a share of AAPL is a representation of Apple Inc. When an investor
buys Apple stock, he is buying partial ownership of the company and its assets. Similarly, a mutual
fund investor is buying partial ownership of the mutual fund company and its assets. The difference
is that Apple is in the business of making innovative devices and tablets, while a mutual fund
company is in the business of making investments.

Investors typically earn a return from a mutual fund in three ways:

1. Income is earned from dividends on stocks and interest on bonds held in the fund's
portfolio. A fund pays out nearly all of the income it receives over the year to fund owners
in the form of a distribution. Funds often give investors a choice either to receive a check
for distributions or to reinvest the earnings and get more shares.
2. If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in a distribution.
3. If fund holdings increase in price but are not sold by the fund manager, the fund's shares
increase in price. You can then sell your mutual fund shares for a profit in the market.

If a mutual fund is construed as a virtual company, its CEO is the fund manager, sometimes called
its investment adviser. The fund manager is hired by a board of directors and is legally obligated to
work in the best interest of mutual fund shareholders. Most fund managers are also owners of the
fund. There are very few other employees in a mutual fund company. The investment adviser or
fund manager may employ some analysts to help pick investments or perform market research. A
fund accountant is kept on staff to calculate the fund's NAV, the daily value of the portfolio that
determines if share prices go up or down. Mutual funds need to have a compliance officer or two,
and probably an attorney, to keep up with government regulations.

Most mutual funds are part of a much larger investment company; the biggest have hundreds of
separate mutual funds. Some of these fund companies are names familiar to the general public,
such as Fidelity Investments, The Vanguard Group, T. Rowe Price, and Oppenheimer.

4.3 Types of Mutual Funds

Mutual funds are divided into several kinds of categories, representing the kinds of securities they
have targeted for their portfolios and the type of returns they seek. There is a fund for nearly every
type of investor or investment approach. Other common types of mutual funds include money
market funds, sector funds, alternative funds, smart-beta funds, target-date funds, and even funds of
funds, or mutual funds that buy shares of other mutual funds.

a) Equity Funds
The largest category is that of equity or stock funds. As the name implies, this sort of fund
invests principally in stocks. Within this group are various subcategories. Some equity
funds are named for the size of the companies they invest in: small-, mid-, or large-cap.
Others are named by their investment approach: aggressive growth, income-oriented, value,
and others.

b) Fixed-Income Funds
Another big group is the fixed income category. A fixed-income mutual fund focuses on
investments that pay a set rate of return, such as government bonds, corporate bonds, or
other debt instruments. The idea is that the fund portfolio generates interest income, which
it then passes on to the shareholders.

c) Index Funds
Another group, which has become extremely popular in the last few years, falls under the
moniker "index funds." Their investment strategy is based on the belief that it is very hard,
and often expensive, to try to beat the market consistently. So, the index fund manager buys
 stocks that correspond with a major market index such as the S&P 500 or the Dow Jones
Industrial Average (DJIA).

d) Balanced Funds
Balanced funds invest in a hybrid of asset classes, whether stocks, bonds, money market
instruments, or alternative investments. The objective is to reduce the risk of exposure
across asset classes. This kind of fund is also known as an asset allocation fund. There are
two variations of such funds designed to cater to the investor’s objectives.

e) Money Market Funds

The money market consists of safe (risk-free), short-term debt instruments, mostly
government Treasury bills. This is a safe place to park your money. You won't get
substantial returns, but you won't have to worry about losing your principal. A typical
return is a little more than the amount you would earn in a regular checking or savings
account and a little less than the average certificate of deposit (CD).

f) Income Funds
Income funds are named for their purpose: to provide current income on a steady basis. These
funds invest primarily in government and high-quality corporate debt, holding these bonds
until maturity in order to provide interest streams. While fund holdings may appreciate in
value, the primary objective of these funds is to provide steady cash flow to investors.

g) International/Global Funds
An international fund (or foreign fund) invests only in assets located outside your home
country. Global funds, meanwhile, can invest anywhere around the world, including within
your home country.
 CHAPTER V
DATA ANALYSIS AND INTERPRETATION
 Table 1: Table showing Gender of respondents.

Sl. No Gender No of respondent Percentage

1 Male 44 55%
2 Female 36 45%
3 Total 80 100%
Source: Field survey,

Fig 5.1 Gender of investors

44 % Male
36 % Female

Figure 1

INTERPRETATION: From the above table and diagram, it is found out of 80 respondents,
44 respondents are male and 36 are female. So, we can say that the majority of customers are
male.
 Table 2: Table showing age group of investors.

0Sl. Age Group No of Respondent Percentage

No

1 20-30 30 37%

2 30-40 26 33%

2 40 & above 24 30%

Source: Field survey,

Fig 5.2 Age group of investors

No. of Respondent

30%
38%

33%

20-30 30-40 40 & above

 Figure 2

INTERPRETATION: From the above table and diagram, it is found that 37% respondent are
belonging from 20-30 age group, 33% respondent are belonging from 30- 40 age group and
30% respondent are belonging from 40& above. So, we can say that Majority of respondent
belonging to 20 - 30 years age groups.
 Table 3: Qualification

Sl No Qualification No of Respondent Percentage (%)

1 Graduation 26 32%

2 Post-graduation 30 38%

3 12th 24 30%

Source: Field survey,

Fig 5.3 Qualification of investor

No of Respondent
38 %

32 %
30 %

Graduation Post-graduation 12th

Figure 3

INTERPRETATION: From the above table and diagram, it is found 32% respondent have
graduation degree, 38% have post-graduation degree and 30% respondent have 12 th standard
as their highest qualification So we can say that, among the respondents, people having post-
graduation are more aware about mutual fund.
 Table 4: Occupation

Sl Occupation No of Percentage
No Respondent (%)
1 Students 18 22%
2 Professional 22 27%
3 Service 14 17%
4 Business 10 13%
5 Retired 6 8%
6 Others 10 13%
Source: Field survey, 2023

25
27 %

20 22 %

15 17 %

13 % 13 %
10
8%
5

0
No of Respondent

Students Professional Service

Business Retired Others

Figure: 4

INTERPRETATION: From the above table and diagram, it is found that 22% are students,
27% are professionals, and 17% are involves in service, 13% are businessmen, 8% are retired
and 13% are involved in other works. So, we can say that, people who are professionals are
showing more interest to involve in mutual funds.
 Table 5: Annual Income

Sl No Annual Income No of Respondent Percentage (%)

1 <300000 30 43%
2 300000-700000 22 26%
3 700000-1000000 19 20%
4 >1000000 9 11%
Source: Field survey, 2023

Fig: 5.5 Annual Income of Investors

No o f R e s p o nd e nt
11%
43 %

20 %

22 %

<300000 300000-700000 700000-1000000 >1000000

Figure 5
INTERPRETATION: From the above table and diagram, it is found that 43% respondent
have an annual income of less than 300000, 26% respondent have annual income between
300000-700000, 20% respondent have annual income between 700000-1000000, and 11%
respondent have an annual income of more than 1000000. So, we can say that people having
<100000 annual incomes are more interested to invest in mutual fund.
 Table 6: Type of Investment

Sl No Investment Type No of Respondents Percentage (%)

1 Saving Account 16 20%
2 Fixed Deposit 26 32%
3 Insurance 10 12%
4 Mutual Fund 18 23%
5 Gold 4 8%
6 Others 6 5%
Source: Field survey, 2023

Fig 5.6 Type of investment

32 % No of Respondents
23 %
20 %
12 % 5%
8%

Saving Fixed Insurance Mutual Fund Gold Others

Account Deposit
 Figure 6

INTERPRETATION: From the above table and diagram, it is found that 20% investors
invest in saving account, 32% investor invest in fixed deposit, 12% investors invest money in
insurance, 23% investors invest in mutual fund, 8% investors invest money in Gold and other
commodities, and 5% investors invest money in others. So, we can say that majority of the
respondent invest in Fixed Deposit.
 Figure 7: Source of investment advice

Sl No Source of Investment Advice No of respondent Percentage (%)

1 Television 12 15%
2 Internet 18 22%
3 Newspaper / Journals 6 7%
4 Friends / Relatives 18 35%
5 Sales Representatives 10 13%
6 Others 6 8%
Source: Field survey, 2023

Fig 5.7 Source of investment advice

Others
Sales Represen- 8% Television
tatives 15%
13%
Internet
22%

Friends /
Relatives Newspaper /
35% Journals
7%

Figure 7
INTERPRETATION: From the above table and diagram, it is found that investors’
collects information or source of investment advice is 15% from television, 22% from
Internet, 7% from Newspaper/ Journals, 35% from friends/ relatives, 13% from investor
forum, and 8% collects information from other sources. So, from analysis it is clear that
majority of the people have gather information or investment advice from friends or relatives.
 Table 8: Awareness of Investment in Mutual Fund

Sl No Awareness of Investment in No of Respondent Percentage (%)

Mutual Fund
1 Yes 68 85%
2 No 12 15%
Source: Field survey, 2023

Fig 5.8 Awareness of investment in mutual fund

90%
80%
70%
60%
50% 85%

40%
30%
20%
10%
15%
0%
Yes No
 Figure 8

INTERETATION: From the above table and diagram, it is found that 85% were about the
investment in Mutual Fund and 15% does not know anything about Mutual Fund.
 Table 9: Used scheme in Mutual Fund

Sl No Used scheme of Mutual Fund No of respondent Percentage (%)

1 Closed-ended 26 32%
2 Opened-ended 54 68%
Source: Field survey, 2023

Fig 5.9 Used scheme in mutual fund

Percentage (%)

70%
60%
50%
40%
30%
20%
10%
0%
Closed-ended Opened-ended

Figure 9

INTERPRETATION: From the above table and diagram, it is found that 68% investors
invested in open-ended scheme where 32% investors invested in close-ended scheme of
mutual fund. So, we can say that majority of the respondents used open-ended scheme.
 Table 10: Mode of Investment in Mutual Fund

Sl No Mode of Investment in Mutual No of Respondent Percentage (%)

Fund

1 Lump Sum 28 35%

2 Monthly SIP 40 50%

3 Weekly SIP 12 15%

Source: Field survey, 2023

Fig 5.10 Mode of investment in mutual fund

Weekly Lump
SIP Sum
15% 35%

Monthl
y SIP
50%

Lump Sum Monthly SIP Weekly SIP

Figure 10

INTERPRETATION: From the above table and diagram, it is found that 65% investors are
invested in Systematic Investment Plan Scheme whereas 35% investors are invested in Lump
Sum scheme of Mutual Fund. So, we can say that majority of the respondents used
Systematic Investment Plan (SIP). and of them, majority prefer monthly SIP
 Table 11: Investment periods in Mutual Fund

Sl Periods (in years) No of Respondents Percentage (%)

No
1 0-2 24 30%
2 2-5 18 22%
3 5-7 12 15%
4 7-10 16 20%
5 10-Above 10 13%
Source: Field survey, 2023

Fig 5.11 Investment periods in mutual fund

10-Above
13% 0-2
30%

07-10
20%

05-07 2-5
15% 22%
 Figure 11

INTERPRETATION: From the above table and diagram, it is found that 30% investors
invested for 0-2 year, 22% investors invested for 2-5 years, 15% investors invested for 5-7
years, 20% investors invested for 7-10 years, and 13% invested for more than 10 years.
 Table 12: Factors prefer while investor invest

Sl No Factors preferred by investor No of respondent Percentage (%)

1 Liquidity 14 17%
2 Low Risk 20 25%
3 High Return 16 20%
4 Tax Benefit 18 23%
5 Brand Name 12 15%
Source: Field survey, 2023

Fig 5.12 Factors prefer while investors invest

25%

23%
20%
17%
15%

Liquidity Low Risk High Return Tax Benefit Brand Name

Figure 12

INTERPRETATION: Analysis from the above table and diagram, it is found that 25%
investor had invested in mutual fund preferred low risk factor, 17% investor preferred
liquidity factor, 20% investor preferred high return factor, 23% investor are preferred tax
benefits factor and 15% investors are preferred brand name factor.
 Table 13: Feature of Mutual Fund allure the investor

Sl No Allure feature No of respondent Percentage (%)

1 Diversification 18 22%
2 Better Return 22 27%
3 Regular Income 30 38%
4 Tax Benefit 10 13%
Source: Field survey, 2023

Fig 5.13 Feature of mutual fund allure the investor

Tax Di-
Ben ver-
efit sifi-
13% catio
n
22%

Reg- Bet-
ular ter
In- Re-
come turn
38% 27%

Diversification Better Return Regular Income Tax Benefit

Figure 13

INTERPRETATION: From the above table and diagram it is found that 38% investor is
attracted to invest in mutual Fund because of its regular income, 22% investor are allure
because of its diversification, 27% investor are allure because of better return, and 13%
investors are allure because of its tax benefits. So, we can say that majority of the respondents
attract because of its regular income.
 Table 14: Source of purchased Mutual Fund

Sl No Source of purchase No of respondent Percentage (%)

1 Direct from AMCs 14 17%
2 Brokers only 38 48%
3 Other source 16 20%
4 Bank Branch 12 15%
Source: Field survey, 2023

Fig 5.14 source of purchased mutual fund

15%
17%

20%

48%

Direct from AMCs Brokers only Other source Bank Branch

Figure 14

INTERPRETATION: From the above table and diagram, it is found that 48% investors
purchased the mutual fund through brokers, 17% investors purchased directly from AMCs,
20% investors purchased from other sources and 15% investors purchased from the bank
branch. So, we can say that most of the investor purchased mutual fund through brokers.
 Table 15: Preferred Type of Mutual Fund

Sl No Preference No of respondent Percentage (%)

1 Small Cap Fund 19 23%
2 Mid Cap Fund 42 52%
3 Large Cap Fund 12 15%
4 Sectoral Funds 7 10%
Source: Field survey, 2023

Fig 5.14 source of purchased mutual fund

Percentage
52%
(%)

60%

23%
50%

40%
15% 10%
30%

20%

10%

0%
Small Cap Fund Mid Cap Fund Large Cap Fund Sectoral Funds

Figure 14

INTERPRETATION: From the above table and diagram, it is found that 52% investors
preferred Mid-Cap Mutual Fund, 23% investors preferred Small-Cap Mutual Fund, 15%
investors preferred Large Cap Funds and 10% investors preferred Sectoral Funds. So, we can
say that most of the investor preferred Mid Cap Mutual Fund
 CHAPTER V

FINDINGS RECOMMENDATIONS & CONCLUSION

FINDINGS

● Highest number of investors comes from the professionals.

● Highest number of investors comes from the age group of 20- 30.

● Most of the people have been investing their money in the share market belongs to

Rs.400000 and above income group.

● Mostly investors prefer monitoring their investment on monthly basis.

● Most of the people invest up to 6% of their annual income in mutual funds.

● Most of the people between the age group of 20– 30 invest their money in share

market.

● It is found that 65% investors are invested in Systematic Investment Plan Scheme

whereas 35% investors are invested in Lump Sum scheme of Mutual Fund

● It is found those investors are attracted to invest in mutual fund because of its better

return, 30-40% CAGR.

● It is found that 30% investors invested for 0-2 year, 22% investors invested for 2-5

years, 15% investors invested for 5-7 years, 20% investors invested for 7-10 years,
and 13% invested for more than 10 years.

● It is found that 25% investor had invested in mutual fund preferred low risk factor,

17% investor preferred liquidity factor, 20% investor preferred high return factor,
23% investor are preferred tax benefits factor and 15% investors are preferred brand
name factor.

● It is found that 38% investor is attracted to invest in mutual Fund because of its

regular income, 22% investor has allure because of its diversification, 27% investor
has allure because of better return, and 13% investors has allure because of its tax
benefits.
● It is found that investor has purchased the Mutual fund from the bank branch, 62%.

22% investor has purchased from the direct AMCs, 5% investor has purchased from
the brokers and the 11% investor has purchased the mutual fund from the other
sources.
RECOMMENDATIONS
Some recommendations for the promotion of mutual funds in Guwahati City are
given as follows:

● 1. Educational Initiatives: It is recommended that mutual fund companies

and financial institutions in Guwahati City invest in educational programs

and workshops to enhance financial literacy among potential investors.
These programs can help individuals make more informed investment
decisions and reduce misconceptions about mutual funds.

● 2. Digitalization and Accessibility: In light of the growing importance of

online platforms and digitalization in the financial sector, it is advisable

for mutual fund companies to improve their online presence and user-
friendly interfaces. This will make it easier for investors to access
information and invest in mutual funds.

● 3. Customized Investment Solutions: Mutual fund providers should

consider offering more tailored investment solutions to meet the diverse

needs and preferences of investors in Guwahati City. This could include
funds designed for specific goals or risk profiles.

● 4. Transparency and Communication: Enhancing transparency in mutual

fund operations and communicating the risks and potential returns clearly
to investors is essential. This can help build trust and confidence among
investors.
● 5. Regulatory Awareness: Mutual fund companies should actively

participate in creating awareness about regulatory measures and investor

protection guidelines. This will empower investors to make more
informed decisions and feel secure in their investments.

● 6. Regular Investor Surveys: Conducting periodic surveys to understand

changing investor preferences and concerns can be beneficial. Mutual

fund companies can use this data to adapt and improve their products and
services accordingly.

● 7. Sustainable and Ethical Investing: Promote sustainable and socially

responsible investing options within mutual fund offerings. Highlight the

benefits of ethical and environmentally conscious investing, aligning with
the growing interest in responsible investing.

● 8. Continuous Research: Mutual fund providers should continue to

conduct research to keep abreast of evolving investor behaviors and

perceptions, allowing them to adapt to market dynamics effectively.

● 9. Investment Goal Alignment: Encourage investors to align their mutual

fund investments with their specific financial goals and risk profiles. This
will result in more purposeful investment decisions.

● 10. Investor Assistance: Provide investors with dedicated customer

support and guidance, offering assistance in understanding and selecting

 mutual fund products.

CONCLUSIONS

After the successfully completion of my summer internship, I understood that market

research is an important aspect for a company throughout the life cycle of a particular
product.
It helps in knowing the changing taste, preference, life style etc. of the consumer.

The study on investors' perception towards mutual fund investments in Guwahati City has shed light
on the multifaceted dynamics of the investment landscape in this vibrant city. It is evident that
mutual fund investments hold great promise for individuals seeking to grow their wealth and secure
their financial futures. However, this study has also uncovered several areas of significance that
warrant attention.

Investors' perceptions are deeply intertwined with various factors, including risk perceptions,
information sources, regulatory awareness, and the role of financial literacy. It is clear that investors
in Guwahati City, like those across the nation, value information, and personalized service. They
seek reassurance in the form of regulatory measures and appreciate tailored investment solutions
that align with their goals.

Furthermore, the findings of this study underscore the importance of educational initiatives to
enhance financial literacy and awareness. The digitalization of the financial sector is becoming
increasingly vital, offering investors accessibility and convenience. Additionally, ethical and
socially responsible investment options are gaining traction, reflecting a growing consciousness
about responsible investing practices.

In conclusion, the mutual fund industry in Guwahati City, like the rest of the country, has
tremendous potential. It is crucial for financial institutions and regulators to address the needs and
preferences of investors, offering transparency, accessibility, and education. By aligning the
industry with the evolving landscape, it can continue to thrive and provide investors with
opportunities to achieve their financial aspirations. This project serves as a stepping stone towards
understanding these dynamics and contributing to the betterment of the mutual fund investment
landscape in Guwahati City.

REFERENCES

Arathy, B., Nair, A. A., Anju Sai, P., & Pravitha, N. R. (2015). A Study on factors affecting
investment on mutual funds and its preference of retail investors. International Journal of
Scientific and Research Publications, 5(8), 1-4.

Arora, S., Singh, H. B., & Jain, R. (2009). Exploring Customer Preference for Mutual Funds.
Review of Professional Management, 7(1), 59-64.

Bryant, L. L., & Liu, H. C. (2011). Mutual fund industry management structure, risk and the
impacts to shareholders. Global finance journal, 22(2), 101-115.

Jambodekar, M. V. (1996). Marketing strategies of mutual funds-Current practices and future

directions.

Lilly, J., & Anusuya, D. (2014). An Empirical Study of Performance Evaluation of Selected
Elss Mutual Fund Schemes.

Shanmugham, R., & Ramya, K. (2012). Impact of social factors on individual investors’
trading behaviour. Procedia Economics and Finance, 2, 237-246
 BIBLIOGRAPHY

BOOKS:
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S.I Title of the book Authors Publisher Edition year Page no.
No.
1 Research Kothari, CR New age 2004
methodology; international
methods and publishers
techniques
2 Human resource Chatterjee, B Sterling 2002
management publishers
private limited
3 Human resource Sadri,S. Current 2013
management in Publications,
modern India Agra
4 Human resource Aswathappa K Mc Graw hill 2017
management: text education
and cases private limited
5 Business Sarkar,SS, Kalyani 1994
organizations Sharma,RK publishers,
Gupta New Delhi
6 Management Krishnaswam Dorling 2009
research y ,KN, Kindersley,
methodology Sivakumar PVT LTD,
New Delhi
7 Personnel and Sarma, A.M Himalaya 2000
human resource publishing
management house,
Mumbai
8 Research Thanulingom Himalaya 2000
methodology publishing
house,
Mumbai
WEBSITES

● www.indiainfoline.com

● www.amfindia.com

● www.mutualfundsindia.com

● www.monecontrol.com

● www.sbimf.com

● www.sebi.com

● www.economictimes.com

● www.kotaksecurities.com

MAGAZINES AND NEWSPAPER

● Front line

● Stock market book

● Dallals street Journal’s

 ● The Times of India

● Company Brochures and Presentations

. QUESTIONAIRE

Investors’ perception towards Mutual Fund Investment in Guwahati City for Kotak Securities
Securities

Dear Participant,

I am Tushar Bardhan, a student enrolled in the BBA program at Gauhati Commerce College in my
5th semester. I am conducting a survey as part of my academic studies, titled "Investor's Perception
Towards Mutual Fund Investment in Guwahati City," in collaboration with Kotak Securities
Securities. I kindly request your valuable input in answering the following questionnaire.

Your responses will significantly contribute to my research, and I assure you that all provided
information will be used solely for academic purposes and will be treated with the utmost
confidentiality. Your cooperation is highly appreciated, and your insights will help shed light on
investor perceptions and behaviors related to mutual fund investments in Guwahati City.

Thank you for your participation.

1. What's your good name?

2. Gender

A. Male B. Female

3. What is your age?

A. 20-30 B. 30-40
C. 40 and above
4. What is your highest qualification?

A. Graduation B. Post graduation

C. Others

5. What's your Profession?

A. Students B. Professional Service
C. Business D. Retired
E. Other

6. What is you annual income (in Rs)?

A. <300000 B. 300000-700000
C. 700000-1000000 D. >1000000

7. Which among the following type of Investment do you prefer?

A. Saving Account B. Fixed Deposit
C. Insurance D. Mutual Fund
D. Post Office- NSC E. Gold

8. Which are the primary sources of your knowledge about Mutual Funds as an
investment option?
A. Television B. Internet
C. Newspapers/Journal D. Friends/Family
E. Others (Specify)

9. In this highly volatile market, do you think Mutual Funds are a destination for
Investments?
A. Yes
B. No

10. Which end-scheme do you feel is good

A. Closed Ended
B. Open Ended

11. When you invest in mutual fund Which Mode of Investment in Mutual Fund do you
prefer?
 A. Lump Sum
B. SIP (Systematic Investment Plan)

12. Investment periods in Mutual Fund (in Year

A. 0-2 B. 2-5
C. 5-7 D. 7-10
E. 10-Above

13. While investing in mutual fund, which factor do you prefer most?
A. Liquidity B. Low Risk
C. High Return D. Tax Benefit
E. Brand Name

14. Which feature of mutual fund allure you

most?
A. Diversification
B. Better Return
C. Regular Income
D. Tax Benefit

15. Which type of mutual fund do you feel is good?

A. Small-cap Funds
B. Mid-cap Funds
C. Large-cap Funds
D. Sectoral Funds

16. Source of Purchased Mutual Funds

A. Direct from AMCs

B. Brokers
C. Bank Branch
D. Other