Mutual Funds and Its

Investment Avenues
Submitted To:
Mrs. Hema Khanna Submitted By:
Vibhor Kulshrestha
PGPM/2K8/B62
Objectives
 To find out the most preferable investment
option available in mutual funds.
 To understand the various investment
options available in mutual funds.
What is a Mutual Fund?
 A Mutual Fund is a common pool of money into
which investors place their contributions to be
invested in accordance with a stated objective
managed by experts called fund managers.
 Types of Mutual Funds:
 Close ended/ Open ended.
 Load Fund/ No-Load Funds.
 Tax-exempt/ Non-Tax exempt Funds.
Association of Mutual Funds of India
 Incorporated on 22 Aug 1995.
 AMFI is an apex body of all Asset Management
Companies (AMC), which has been registered with
SEBI.
 Brought down the Indian Mutual Fund Industry to a
professional and healthy market with ethical lines
enhancing and maintaining standards.
 Follows the principle of both protecting and
promoting the interests of mutual funds as well as
their unit holder.
 To Implement the certification programme.
SBI Mutual Fund
 SBI Mutual Fund (SBI MF) is one of the largest mutual funds
in the country with an investor base of over 5.4 million. With
over 20 years of rich experience in fund management.
 SBI Mutual Fund is a joint venture between the State Bank of
India and Société Générale Asset Management,  one  of  the 
world’s  leading  fund  management  companies  that 
manages  over US$ 500 Billion worldwide.
 In twenty years of operation, the fund has launched 38
schemes and successfully redeemed fifteen of them.
Recent Achievements
 ICRA MUTUAL FUND AWARDS 2009
 SBI Magnum Tax Gain Scheme 93.
 THE LIPPER FUNDS AWARDS 2009:
 SBI MAGNUM BALANCED FUND-
DIVIDEND
 SBI MAGNUM SECTOR FUND
UMBRELLA-CONTRA FUND – DIVIDEND
Investment Avenues in Mutual Funds
 Close Ended
 Open Ended
 Equity Schemes.
 Debt Schemes.
 Balanced Schemes.
 Exchange Traded Schemes.
 Growth Option
 Dividend Option
 Dividend Pay Out.
 Dividend Reinvest.
 Systematic Investment Plan
Research Methodology
 Research Design – Exploratory Research.
 Sampling Method – Convenient Sampling.
 Sample Size – 20.
 Area of Operation – Agra, Uttar Pradesh.
 Tools Used for Data Collection.
 Questionnaire.
 Personal Visit.
Mutual Funds Preferences
 Benefits Considered while selecting a mutual fund.
Benefits considered while selecting a Mutual Fund

Other Conveinience & Liquidity

15%
Conveinience &
Safety of Liquidity Professional
Investment 40% Management
15% Safety of Investment

Professional Other
Management
30%
Effect of Investment Decision
Investor's Awareness and Investment Decision

Other reasons,
10% Financial Advisors
Financial Knowledge
Better Fund Advisors
More Publicity
Performance, Knowledge,
25% 40%
Better Fund Performance

Other reasons
More Publicity,
25%
Average suggested time to Stay
Invested in Mutual Funds
Average time to stay invested in Mutual Funds

More than 5 years,

10%

1-3 Years, 40%

3-5 Years, 50%

1-3 Years 3-5 Years More than 5 years

Percentage of Investable Surplus to be
Invested in Mutual Funds
Experts Preference and Suggestions
Advisors Preferences and Suggestions

100%
90%
80%
70%
60%
50% Series1
40%
30%
20%
10%
0%
Findings
 Convenience & liquidity and Professional Management are the most important
aspects of a mutual fund.
 Investors’ investment decision is most affected by his fund advisors’ knowledge,
it is also been affected by publicity and performance review of the fund.
 For better returns on investments, advisors suggest to stay invested for 3-5 years
in a mutual fund.
 SBI Mutual Fund has become one of the preferable AMC while considering for
investment by the investors.
 50% of the investable surplus is suggestable to be invested in mutual funds.
 Investment decisions are more affected by the income stability of the customer.
 SBI Magnum Tax Gain and MSFU Contra fund are in the top performing funds in
India.
 Open ended schemes are more preferred over close ended schemes, and also
equity schemes and SIP is preferred over debt and one time investment
respectively.
 Also many banks invest their surplus funds in mutual funds.
Suggestion:
 While selecting a mutual fund liquidity, professional
management and transparency should be seen.
 Although it’s the time of recession but efforts made
by the government and worldwide seems to
overcome this era soon, so it’s the best time to invest
in mutual funds for a suggestable period of 3 – 5
years.
 After considering the results of the study it is been
suggestable to opt for an SIP in an open ended
equity fund, so as to maintain liquidity, transparency
and averaging of risk of your investment.
Conclusion
 Mutual Fund industry has been through various phases since
its inception in India in 1963. Although it has some bad time
since 2008 in the period of recession, their value fall down
about one-third of their total size, but still there are various
funds that are performing comparatively better from their
benchmarks. So the investors should not loose hope as
mutual funds are one of the best investment options. Also
from business point of view it’s a good field where one can
develop his career. Although some recent regulations by
SEBI, like eradication of entry load, has dropped the morale
of AMFI certified mutual fund advisors but increasing
awareness and interest of people is inspiring them to keep
working with the industry.
Thank you!!!