A

PROJECT REPORT
ON
“A STUDY INVESTOR PERCEPTION ABOUT INVESTMENT IN
MUTUAL FUND WITH PRUDENT CORPORATE, PUNE”

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY OF
IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE
MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY
MR. PRASHANT CHAUDHARI
(BATCH-2019-2021)

UNDER THE GUIDANCE OF

PROF.UJJAVAL MORE

AKEMI BUSINESS SCHOOL, PUNE 411 057

 DECLARATION

I MR. Prashant Chaudhari Student of MBA II (Marketing) 2019-2021

studying at AKEMI BUSINESS SCHOOL, PUNE-411057 declared that the

project work entitled “A Study Investor Perception About Investment in

Mutual Fund with Prudent Corporate, Pune”. It was carried by me in the

partial fulfillment Of MBA program under the Savitribai Phule Pune University.

This project was undertaken as a part of academic curriculum according

to the university rules and norms and it has not commercial interest and

motive. It is my original work. It is not submitted to any other organization for any

other purpose.

PLACE: PUNE
DATE: (Mr. Prashant Chaudhari)
ROLL NO:
 ACKNOWLEDGEMENT

I take immense pleasure in completing this project and submitting the

final Project report in 60 days with “A Study Investor Perception About
Investment in Mutual Fund with Prudent Corporate, Pune”. It has been full of
learning and sense of contribution towards the organization. I would like to thank
Preduent Corporate Advisory Services Ltd, Pune for giving me an opportunity
of learning and contributing through this project. I also take this opportunity to
thank all those people that made this experience a memorable one.

A successful project can never be prepared by this single effort of the person
to whom the project is assigned, but it also demands the help and guardianship of
some concern persons who helped the undersigned activity or passively in the
completion of successful project.

The project couldn’t have been completed without timely and vital help of
other office staff. Special thank to Mr. Jamir Shaikh (Branch Manager- Prudent
Corporate Advisory Services Ltd , Pune), and thanks to their invaluable guidance,
keen interest cooperation inspiration, and course moral support through my project
session.

I would like to give special thanks to my project guide Prof.Ujjaval More

for their guidance, cooperation, and inspiration for fulfilling my project.

(Mr. Prashant Chaudhari)

 INDEX

Sr. No. Content Page no

CHAPTER-I-INTRODUCTION
1.1. Introduction
1.2. Management Problem/ Research Problem
1.3. Statement of Research Problem
1 1.4. Objectives of the Study
1.5. Scope of the Study
1.6. Importance of the Study
1.7. Research methodology
1.8. Chaptalization
2 CHAPTER-II-CONCEPTUAL BACKGROUND
CHAPTER-III-COMPANY PROFILE
3.1. About Prudent Corporate
3.2. Historical Development of Prudent Corporate
3 3.3. Prudent Corporate Partner Company
3.4. Company Services
3.5. Competitors
CHAPTER-IV-DATA ANALYSIS
4
4.1 Data Analysis
CHAPTER-V-FINDINGS, SUGGESTIONS &
CONCLUSION
5 5.1 Findings
5.3 Conclusions
5.2 Suggestions & Recommendations
BIBLIOGRAPHY

ANNEXURE
 CHAPTER I
INTRODUCTION
1.1. Introduction

1.2. Management Problem/ Research Problem

1.3. Statement of Research Problem

1.4. Objectives of the Study

1.5. Scope of the Study

1.6. Importance of the Study

1.7. Research methodology

1.8. Chapterisation
 CHAPTER I
INTRODUCTION
1.1. Introduction
Small Investors face many problems in the share market due to limited resources, lack of
professional advice, lack of information etc. Mutual funds have come as a much-needed help to
these Investors. It is a special type of institutional device or an investment vehicle through which
the Investors pool their savings that are to be invested under the guidance of a team of experts in a
wide variety of portfolios of corporate securities in such a way, to minimize risk, while ensuring
safety and steady return on investment. It forms an important part of the capital market providing
the benefits of a diversified portfolio and expert fund management to a large number, particularly
to small Investors.
The mutual funds are gaining the popularity due to the following reasons: With the emphasis on
increase in domestic savings and improvement in deployment of investment through markets, the
need and scope for mutual fund operation has increased tremendously.
The basic purpose of reforms in the financial sector was to enhance the generation of domestic
resources by reducing the dependence on outside funds. This calls for a market based institution
that can tap the vast potential of domestic savings and channelize them for profitable investments.
Mutual funds are not only best suited for the purpose but also capable of meeting this challenge.

1.2. Management Problem/ Research Problem

The study will help the individuals to make a wise decision in investing their savings; such as:
whom to buy from and where to buy. Further this study will help mutual fund companies to
understand the profile of Indian Retail Investors and their investment behavioral pattern. By
knowing this, companies can improve their products and can adopt appropriate strategy to tap
unexplored market in a better way.

1.3. Statement of Research Problem

According to the research problem statement of research is “A Study Investor Perception About
Investment in Mutual Fund With Prudent Corporate,Pune”
1.4. Objectives of the Study
➢ To find out the Preference of the Investors for Asset Management of company.
➢ To know the preference of the portfolios.

1.5. Scope of the Study

➢ Geographical Scope
The existing customers of Prudent Corporate,Pune
➢ Conceptual Scope
The Study covered Investor Perception About Investment in Mutual Fund With Prudent
Corporate,Pune
➢ Analytical scope
Analytical scope is limited to use Various Table, Graph and chart

1.6. Importance of the Study

The project covers the Investor Perception About Investment in Mutual Fund With Prudent
Corporate,Pune. For better understanding various strategies with different situations and actions
have been given. It includes the data collected in the recent time and also the market in the
Investor Perception About Investment in Mutual Fund With Prudent Corporate,Pune.This study
extends to Investor Perception About Investment in Mutual Fund With Prudent Corporate,Pune

1.7. Research methodology

Research methodology is a way to systematically solve the research problems. It guides the
researchers to do the research scientifically. It contains of different steps that are generally
adopted by a researcher to study his research problem along with the logic behind them. Data
become information only when a proper methodology is adopted. The research methodology
includes the logic behind the methods we in the content of our research study.

1.7.1 Type of Research Design

Research Design: Descriptive Research
Present research is descriptive inferential in nature.

1.7.2 Data Required- Primary and Secondary Data

Data require related to the demographic factor of Investors such as Age, income, Marital status,
occupation, annual income, Concept Mutual Fund Investor Perception About Investment in
Mutual Fund With Prudent Corporate,Pune, Different Investment avenue, Saving Mutual Fund
Investor Perception About Investment in Mutual Fund With Prudent Corporate,Pune and Sources
of information of purchase of mutual fund. .

1.7.3 Data Collection Method:

The data collection method for the study the researcher should keep in the mind the two sources of
data

1. Primary data,

2. Secondary data.

PRIMARY DATA COLLECTION:

Source of primary data:

1.Experimentation

2. Observation

3. Questionnaire schedule.

Primary data has been collected through structured questionnaire. The questionnaire consisted of a
variety of questions that lay consistent with the objective of the research.

1.7.4 QUESTIONNAIRE:

The questionnaire was prepared keeping in view the objectives of study. Different questions were
so arranged to know Mutual Fund Investor Perception About Investment in Mutual Fund With
Prudent Corporate,Puneof Investor. The questionnaire not only focused gathering information on
the above-mentioned areas but also about the different opinion of Investor.

Questionnaire contains four types of questions:

1.Open Ended

2. Dichotomous

3. Fixed Alternative Question.

• Study Conducted
 The primary data was gathered through Personal Interview. The information was
gathered from the structured questionnaire.

• Statistical Tools:

The present study has been analyzed with the help of sample statistical tool such as
percentage, mean & rank.

• Simplex Percentage Analysis:

Percentage analysis is the method to represent raw streams of data as a percentage (a part
in 100 %) for better understanding of collecting data.

• Graphs:

Graphical representation is used to show the results in simple form. The graphs are
prepared on the basis of data that is received from the percentage analysis.

1.7.5 Sampling
Sampling Size: Population in infinite in number so researcher selected 100 samples by using
Convenience sampling method.

Sampling Techniques: Simple Random Sampling

Research Methods: Survey.

Research Tool: Questionnaire.

Research Techniques: Interview.

1.7.6 Data Analysis

Simple Table and Chart use for data analysis

1.8. Chapterisation
Chapter No. 1 -Introduction to the Study
Chapter No.2 -Conceptual Background
Chapter No. 3 -Organizational Profile
Chapter No. 4 -Data Analysis and Presentation
Chapter No. 5 -Finding, Suggestion and Conclusion
Annexure
Bibliography
CHAPTER II
CONCEPTUAL
BACKGROUND
 CHAPTER II
CONCEPTUAL BACKGROUND

INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS ASPECTS.

Mutual fund is a trust that pools the savings of a number of Investors who share a common

financial goal. This pool of money is invested in accordance with a stated objective. The joint

ownership of the fund is thus “Mutual”, i.e. the fund belongs to all Investors. The money thus

collected is then invested in capital market instruments such as shares, debentures and other

securities. The income earned through these investments and the capital appreciations realized are

shared by its unit holders in proportion the number of units owned by them. Thus a Mutual Fund

is the most suitable investment for the common man as it offers an opportunity to invest in a

diversified, professionally managed basket of securities at a relatively low cost. A Mutual Fund is

an investment tool that allows small Investors access to a well-diversified portfolio of equities,

bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are

issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day.

Investments in securities are spread across a wide cross-section of industries and sectors

and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in

the same direction in the same proportion at the same time. Mutual fund issues units to the

Investors in accordance with quantum of money invested by them. Investors of mutual funds are

known as unit holders.

 When an Investor subscribes for the units of a mutual fund, he becomes part owner of the
assets of the fund in the same proportion as his contribution amount put up with the corpus (the
total amount of the fund). Mutual Fund Investor is also known as a mutual fund shareholder or a
unit holder. Any change in the value of the investments made into capital market instruments
(such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is
defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a
scheme is calculated by dividing the market value of scheme's assets by the total number of units
issued to the Investors.
ADVANTAGES OF MUTUAL FUND

• Portfolio Diversification
• Professional management
• Reduction / Diversification of Risk
• Liquidity
• Flexibility & Convenience
• Reduction in Transaction cost
• Safety of regulated environment
• Choice of schemes
• Transparency

DISADVANTAGE OF MUTUAL FUND

• No control over Cost in the Hands of an Investor

• No tailor-made Portfolios
• Managing a Portfolio Funds
• Difficulty in selecting a Suitable Fund Scheme

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank. Though the growth was
slow, but it accelerated from the year 1987 when non-UTI players entered the Industry.

In the past decade, Indian mutual fund industry had seen a dramatic improvement, both
qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending
phase; the Assets Under Management (AUM) was Rs67 billion. The private sector entry to the
fund family raised the Aum to Rs. 470 billion in March 1993 and till April 2004; it reached the
height if Rs. 1540 billion.

The Mutual Fund Industry is obviously growing at a tremendous space with the mutual
fund industry can be broadly put into four phases according to the development of the sector.
Each phase is briefly described as under.

First Phase – 1964-87

 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve
Bank of India and functioned under the Regulatory and administrative control of the Reserve
Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of
India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme
launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets
under management.

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

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed
by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutual fund in June 1989 while GIC had set up its mutual fund in December
1990.At the end of 1993, the mutual fund industry had assets under management of Rs.47,004
crores.

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

1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari
Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered
in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual
Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total
assets of Rs. 1,21,805 crores.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets
under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes
 The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. Consolidation and
growth. As at the end of September, 2004, there were 29 funds, which manage assets of
Rs.153108 crores under 421 schemes.

CATEGORIES OF MUTUAL FUND:

Mutual funds can be classified as follow:

❖ Based on their structure:

Open-ended funds: Investors can buy and sell the units from the fund, at any point of time.
Close-ended funds: These funds raise money from Investors only once. Therefore, after
the offer period, fresh investments cannot be made into the fund. If the fund is listed on a stocks
exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, most
of the New Fund Offers of close-ended funds provided liquidity window on a periodic basis such
as monthly or weekly. Redemption of units can be made during specified intervals. Therefore,
such funds have relatively low liquidity.

❖ Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments. With fluctuating

share prices, such funds show volatile performance, even losses. However, short term fluctuations

in the market, generally smoothens out in the long term, thereby offering higher returns at

relatively lower volatility. At the same time, such funds can yield great capital appreciation as,

historically, equities have outperformed all asset classes in the long term. Hence, investment in

equity funds should be considered for a period of at least 3-5 years. It can be further classified as:

i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their

portfolio mirrors the benchmark index both in terms of composition and individual stock

weightages.

ii) Equity diversified funds- 100% of the capital is invested in equities spreading across different

sectors and stocks.

Iii ) Dividend yield funds- it is similar to the equity diversified funds except that they invest in

companies offering high dividend yields.

iv) Thematic funds- Invest 100% of the assets in sectors which are related through some theme.

e.g. -An infrastructure fund invests in power, construction, cements sectors etc.

v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will

invest in banking stocks.

vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the Investors.

Balanced fund: Their investment portfolio includes both debt and equity. As a result, on the risk-

return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds

vehicle for Investors who prefer spreading their risk across various instruments. Following are

balanced funds classes:

i) Debt-oriented funds -Investment below 65% in equities.

ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.

Debt fund: They invest only in debt instruments, and are a good option for Investors averse to

idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income

instruments like bonds, debentures, Government of India securities; and money market

instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your

money into any of these debt funds depending on your investment horizon and needs.

i) Liquid funds- These funds invest 100% in money market instruments, a large portion being

invested in call money market.

ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills.

iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments

which have variable coupon rate.

iv) Arbitrage fund- They generate income through arbitrage opportunities due to mis-pricing

between cash market and derivatives market. Funds are allocated to equities, derivatives and

money markets. Higher proportion (around 75%) is put in money markets, in the absence of

arbitrage opportunities.

v) Gilt funds LT- They invest 100% of their portfolio in long-term government securities.

vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term

debt papers.

vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of

10%-30% to equities.
viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the

fund.

INVESTMENT STRATEGIES

1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of

a month. Payment is made through post dated cheques or direct debit facilities. The Investor gets

fewer units when the NAV is high and more units when the NAV is low. This is called as the

benefit of Rupee Cost Averaging (RCA)

2. Systematic Transfer Plan: under this an Investor invest in debt oriented fund and give

instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual

fund.

3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can

withdraw a fixed amount each month.

RISK V/S. RETURN:

 CHAPTER III
ORGANISATION PROFILE
3.1. About Prudent Corporate

3.2. Historical Development of Prudent Corporate Partner Company

3.3. Prudent Corporate Partner Company

3.4. Company Services

3.5. Competitors
 CHAPTER III
ORGANISATION PROFILE

3.1. Introduction
About Prudent Corporate

Prudence (prdns): the exercise of good judgment, common sense and caution, especially in
the conduct of practical matters.

Incorporated in 2000 with a clear vision of providing professional services in the area of personal
and corporate investments, Prudent group has created a niche segment over a period of time with
an excellent quality client base with in-house capability of analyzing various products on various
parameters before suggesting them to clients.

The team approach has worked wonders and in the short span of over one and a half
decade, the Prudent Group has expanded its horizon by offering specialized services in the areas
of Personal & Corporate Investment Planning through Mutual Funds, Equities, Derivatives, Third
Party Products, Fixed income Products, Life/General Insurance, Commodities and Real Estate
through various business verticals.

Prudent is headquartered at Ahmedabad, Gujarat and operates out of 70 branches across 19

states in India. Prudent comprises a team of 800+ high skilled professionals in various business
verticals, it is their combined intelligence, spirit, and dedication that has lead the company to
enviable heights.

Time and again, Prudent has been rewarded by industry through various awards and
laurels. Prudent was adjudged as winner of CNBC TV 18 - Best Financial Advisor Award (West)
for 5 years in a row from 2009 to 2014.

And We believe that our journey has just begun...

3.2. Historical Development of Prudent Corporate Partner
Company
3.3. Prudent Corporate Partner Company

3.4. Company Services

Mutual Fund

Our

Stock Broking Business Insurance

Properties
3.5. Competitors
 CHAPTER IV
DATA ANALYSIS
 CHAPTER NO 4
DATA ANALYSIS
1. Investor Age Distribution

Parameters No. of Respondents %

Below 30 15 15

30-40 45 45

40 Above 40 40

Total 100 100

Source: Primary Data

Interpretation

Out of 100 Investors 15% Investors are below the age of 30 years, 45% Investors are between 30-
40 years 40% Investors are above the age of 40 years
 2. Investor Qualification
Parameters No. of Respondents %

Undergraduate 15 15

Graduate 60 60

Postgraduate 25 25

Total 100 100

Source: Primary Data

Interpretation

Out of 100 Investors 60% are graduate, 15% are post graduate & 15% are undergraduate
 3. Occupations of Investor
Parameters No. of Respondents %

Government Service 40 40

Private Service 20 20

Business 20 20

Agriculture 4 4

Others 16 16

Total 100 100

Source: Primary Data

Interpretation

Out of 100 Investor 40 are in Govt. sector ,20 is in Pvt sector, 20 are in own business, 4 from
agriculture ,16 Investor is from other sectors
 4. Income Distribution of Investor
Parameters No. of Respondents %

Below 100,000 10 10

100000-500000 48 48

500000-1000000 32 32

Above 1000000 10 10

Total 100 100

Source: Primary Data

Interpretation

Out of 100 Investor the income of 10 Investor is below 100,000 , 48 Investor’s income is between
100,000-500,000 , 32 Investor income is between 500,000-10,00,000 , & 10 Investor has their
income greater than 10 lakh.
 5. Customer Preference About Type of Investment
Parameters No. of Respondents %

Fixed Deposit 25 25

Insurance 15 15

Mutual Funds 30 30

Post Office/NSE 3 3

Share/Debenture 5 5

Gold/Silver 7 7

Real Estate 15 15

Total 100 100

Source: Primary Data

Interpretation

Out of 100 Investor 30% are investing in Mutual funds, 15% are investing in Insurance 25% are
investing in Fixed deposits, 7% are in investing in gold,15% are investing in real estate ,5%
investing in share and debenture, & other are investing in other instruments.
 6. Factor Affecting While Investing
Parameters No. of Respondents %

Liquidity 15 15

Low Risk 20 20

High Return 60 60

Trust 5 5

Total 100 100

Source: Primary Data

Interpretation

Out of 100 Investor 60% are investing due to high return, 20% are invest due to low risk, 15% are
investing due to liquidity & 5% due to Trust in Prudent.
 7. Awareness Regarding Mutual Funds
Parameters No. of Respondents %

Aware 70 70

Not Aware 30 30

Total 100 100

Source: Primary Data

Interpretation

Out of 100 Investor 70% are aware towards mutual funds, 30% are not aware.
 8. Medium to Know About Mutual Funds
Parameters No. of Respondents %

Advertisement 15 22

Peer Group 10 14

Banks 35 50

Financial Advisors 10 14

Total 70 100

Source: Primary Data

Interpretation

Out of those who invest in mutual funds(i.e 70 Investor), 50% are know about mutual funds
through banks, 14% are from financial advisor, 22% are know through advertisement, & 14%
from peer groups
 9. Invested in Mutual Fund
Parameters No. of Respondents %

Invested 28 40

Not Invested 42 60

Total 70 100

Source: Primary Data

Interpretation

Out of 70 Investor 60% are investing & 40% are not investing.
 10. Reason for Not Investment in Mutual Funds
Parameters No. of Respondents %

Not Aware of MF 30 71

High Risk 12 29

Not any specific reason 0 0

Total 42 100

Source: Primary Data

Interpretation

Out of those who don’t invest in MF 30 Investor are not aware of mutual funds,12 Investor are not
investing due to high market risk
 11. Which Mutual Fund Select While Investing
Parameters No. of Respondents %

SBI Mutual Funds 15 50

UTI 4 13

HDFC 6 20

Reliance 2 7

Kotak 3 10

Other 0 0

Total 30 100

Source: Primary Data

Interpretation

Out of 30 Investor 50% Investor are investing in SBI MF, 20% Investor are investing in HDFC,
13% are in UTI, 7% are in reliance,10% are in kotak
 12. Which Channel Will You Prefer While Investing In Mutual Fund
Parameters No. of Respondents %

Financial Advisor 15 22

Banks 40 57

AMC 15 21

Total 70 100

Source: Primary Data

Interpretation

Out of 70 Investor 57% Investor are investing through banks, 21% are from AMC, & 22% are
from financial adviser
 13. Mode of Investment Will You Prefer
Parameters No. of Respondents %

One Time Investment 30 43

Systematic Investment
40 57
Plan (SIP)

Total 70 100

Source: Primary Data

Interpretation

Out of 70 Investor 57% Investor are investing in SIP, & 43% Investor are investing one time.
 14. Type of Funds Would Choose
Parameters No. of Respondents %

Having only debt

15 21
portfolio

Having debt & equity

20 29
portfolio.

Only equity portfolio 35 50

Total 70 100

Source: Primary Data

Interpretation

Out of 70 Investor 50% Investor are investing in debt& equity portfolio, 29% are investing in
hybrid fund, 21% Investor are investing in dept portfolio
 15. Like to Receive the Returns Every Year
Parameters No. of Respondents %

Dividend payout 10 14

Dividend re-investment 15 22

Growth in NAV 45 64

Total 70 100

Source: Primary Data

Interpretation

Out of 70 Investor 45 Investor are like to receive return on growth in NAV, 15 Investors like to
receive dividend re-investment, & 10 Investors like to receive dividend pay-out.
 CHAPTER V
FINDINGS, SUGGESTIONS
AND CONCLUSION
4.1. Findings
4.2. Suggestion
4.3. Conclusion
4.1. Findings
• According to my survey in Dehradun maximum numbers of Investors falls in the age
group of 30-40 years. The second most Investors were in the age group of above 40 years
and the least were in the age group of below 30 years.
• According to my research in pune most of the Investors were Graduate or Post Graduate
and below HSC there were very few in numbers.
• In annual Income group, between 100,000-500,000 were more in numbers invested in
mutual fund, the second most were in the Income group between Rs.5-10lakh and the least
were in the group of below Rs. 1lakh.
• Deposits, Only 60% Respondents invested in Mutual fund.
• Mostly Respondents preferred High Return while investment, the second most preferred
Low Risk then liquidity and the least preferred Trust.
• Among 100 Respondents only 60% had invested in Mutual Fund and 40% did not have
invested in Mutual fund.
• Out of 70 people, 43% preferred One Time Investment and 57% preferred SIP out of both
type of Mode of Investment.
• The most preferred Portfolio was Equity, the second most was Balance (mixture of both
equity and debt), and the least preferred Portfolio was Debt portfolio.
• Maximum Number of Investors Preferred Growth Option for returns, the second most
preferred Dividend Payout and then Dividend Reinvestment.
4.2. Suggestions
• To regulate entry and exit loads effectively as it creates a lot of confusion during actual
settlement of costs and bills.
• To better operations management so as to reduce the time lag and improve customer
feedback.
• To improve market penetration by targeting not only metros but mini-metros and smaller
towns more effectively.
• To come up with more innovative schemes and products so as to expand over the largest
customer base as possible.
• The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced. Investors should be
made to realize that ignorance is no longer bliss and what they are losing by not investing.
• Mutual funds offer a lot of benefit which no other single option could offer. But most of
the people are not even aware of what actually a mutual fund is? They only see it as just
another investment option. So the advisors should try to change their mindsets. The
advisors should target for more and more young Investors. Young Investors as well as
persons at the height of their career would like to go for advisors due to lack of expertise
and time.
• Mutual Fund Company needs to give the training of the Individual Financial Advisors
about the Fund/Scheme and its objective, because they are the main source to influence the
Investors.
• Before making any investment Financial Advisors should first enquire about the risk
tolerance of the Investors/customers, their need and time (how long they want to invest).
By considering these three things they can take the customers into consideration.
• Younger people aged under 35 will be a key new customer group into the future, so
making greater efforts with younger customers who show some interest in investing should
pay off
• Customers with graduate level education are easier to sell to and there is a large untapped
market there. To succeed however, advisors must provide sound advice and high quality.
• Systematic Investment Plan (SIP) is one the innovative products launched by Assets
Management companies very recently in the industry. SIP is easy for monthly salaried
person as it provides the facility of do the investment in EMI. Though most of the
prospects and potential Investors are not aware about the SIP. There is a large scope for the
companies to tap the salaried persons.
4.3. Conclusion
The present study is basically exploratory in nature; an in-depth analysis of perceptions of
individual Investors towards Mutual Funds was done and analysis has been made with the
help of various tables and graph. The collected data have been interpreted and then the
following conclusions have been drawn.
It is concluded that middle age, non-professional degree holders and female respondents
were less access to mutual fund investment activities. From the above findings it is concluded
that brokers were top in providing information and attracting individual Investors towards
mutual funds. From the analysis it also concluded that age, gender, investment objective,
experience and investment strategy were playing important role in individual Investors
‘decision making. It is also concluded that fixed deposits and gold were most preferred
investment avenues among individual Investors. Mutual funds occupied fourth place in the
order of preferred investment avenues.
The project that I undertook in my MUTUAL FUND provided me a good experience of
Investment Avenues like Mutual Funds, Insurance, Fixed Deposits and related activities. It
was a good experience for me as it helped me enhance my knowledge as well as gave a good
industry exposure for the period which would definitely prove to be very useful at the time of
placements. The complete project helped me gain knowledge and at the same time it was very
beneficial for the company. The study performed using the historical data will help the
company in two ways. Firstly, it would let the company know which of the funds under the
given category works well and which does not. It can design certain strategies for the funds
which are still underperforming and are in their nascent stages. Secondly, it would help the
organization, the financial consultants and the marketing team to provide a strategy for the
Investors who can now easily decide where to invest and where not to. The Market Research
performed gave an insight of the actual Investors, their investment behavior and their
investment trends which would again help the company to make correct strategies to attract
more customers and provide them with what they are comfortable with. Summing up, I am
thankful to the Company and the Project that gave me an opportunity where I could learn new
things, enhance my knowledge, gain some industry exposure and at the same time, do
something that could be beneficial for the company and the Investors
 BIBLIOGRAPHY

Books
• Ferris, Stephen and Don Chance (1987). The Eơect of 12b-1 Plans on Mutual Fund
Expense Ratios: A Note. Journal of Finance, 42 (4), 1077– 1982.
• The Mutual Fund Undustry-R.Glennhubbard
Sites
• www.moneycontrol.com
• www.bseindia.com
• www.rbi.in
• www.worldbank.com
• www.prudentcorporate.com
 ANNEXTURE
QUESTIONNAIRE

A study of preferences of the Investors for investment in mutual funds.

1. Personal Details:

(a). Name:-

(b). Add: - Phone:-

(c). Age:-

(d). Qualification:-

Under Graduate
Graduation
Post Graduate

(e). Occupation. Pl tick (√)

Govt. Ser
Pvt. Ser
Business
Agriculture
Others

(g). What is your monthly family income approximately? Pl tick (√).

Below 100,000
100,000-500,000
500,000-10,00,000
Above 10,00,000

2. What kind of investments you have made so far? Pl tick (√). All applicable.

Fixed Deposit
Insurance
Mutual Funds
Post Office/NSE
Share/Debenture
Gold/Silver
Real Estate
 3. While investing your money, which factor will you prefer?

Liquidity
Low Risk
High Return
Trust

4. Are you aware about Mutual Funds and their operations? Pl tick (√). Yes
No

Aware
Not Aware

5. If yes, how did you know about Mutual Fund?

Advertisement
Peer Group
Banks
Financial Advisors

6. Have you ever invested in Mutual Fund? Pl tick (√). Yes No

Invested
Not Invested

7. If not invested in Mutual Fund then why?

Not Aware of MF
High Risk
Not any specific reason

8. If yes, in which Mutual Fund you have invested? Pl. tick (√). All applicable.

SBI Mutual Funds

UTI
HDFC
Reliance
Kotak
Other

9. Which Channel will you prefer while investing in Mutual Fund?

Financial Advisor
Banks
AMC

10. When you invest in Mutual Funds which mode of investment will you
prefer? Pl. tick (√).

One Time Investment

Systematic Investment Plan (SIP)
11. When you want to invest which type of funds would you choose?

Having only debt portfolio

Having debt & equity portfolio.
Only equity portfolio

12. How would you like to receive the returns every year? Pl. tick (√).

Dividend payout
Dividend re-investment
Growth in NAV