ASTUDYONTHEMUTUALFUNDSINKOTAKMAHINDRABANK APROJECTREPORT Submittedtothe SRMSCHOOLOFMANAGEMENT Inpartialfulfillmentoftherequirements FortheAwardoftheDegree OF MASTEROFBUSINESSADMINISTRATION

BY BIJAYANANDABABU RegisterNumber:35080108 SRMUNIVERSITY, KattankulathurCampus,Chennai603203. UNDERTHEGUIDANCE OF Dr.P.Ravilochanan (Professor,SchoolofManagement,SRMUniversity,Chennai) May,2010 SRMUNIVERSITY Maincampus,kattankulathur Chennai603203

BONAFIDECERTIFICATE This is to certifythatthisProjectReport on MutualfundsatKotakMahindraBankis

anoriginalworkdonebyBijayanandaBabu,(registrationNumber35080108),,who
carriedout theresearch workunder mysupervision.Certified furtherthattothebestof myknowledge, theworkreportedherein,isnotapartofanyotherprojectreportordissertationonthebasisofwhich adegreeorawardwasconferredonanearlieroccasiononthisoranyothercandidate. InternalGuide Dr.P.Ravilochanan Professor,

Dr.JayashreeSuresh

Dean,MBADepartment SRMUniversity, (MainCampus)

MBADepartment SRMUniversity (MainCampus)

INTERNALEXAMINER

EXTERNALEXAMINER

 ABSTRACT This study entitled that A report of investment pattern and customer awareness towardsmutual fund was conducted for Kotak Mahindra Bank Bangalore. The primary objective of the study is to find the perceptionofthepeopletowardsmutualfundandtheirinvestmentpattern.Itwasmainlycarriedoutto assesstheawarenessthemutualfundamongstotherinvestmentavenues. Thedescriptiveresearchisusedbytheresearcher.Theprimarydatawascollectedfrom100respondent using questionnaire methods. The respondents were directly interviewed and their responses are recorded. ThecollecteddatawasanalyzedPercentageanalysiswasthemaintoolsusedfortheanalysis.Thisstudy broughttothesurfacevariousinsights.Thestudyshowedthatthosewhoinvestedinmutualfunditwas thebestavenue.Thepeopleinvestedinmutualfundsmainlyinordertocatertotheirfutureneeds.The satisfactionlevelregardingtheperformanceofmutualfundwasmoderateamongsttherespondent..

 DECLARATION I,BijayanandababuherebydeclarethattheprojectreportASTUDYONTHEMUTUALFUNDSINKOTAK MAHINDRA BANK submitted to the SRM University in partial fulfillment of the requirements for the awardofthedegreeofMasterofBusinessAdministrationisarecordoforiginalworkdonebymeduring my period of study in SRM University, Kattankulathur Campus, Chennai under the guidance of Dr. P. Ravilochanan,Professor,MBADepartment,KattankulathurCampus,SRMUniversity,Chennai. Place: Date:

Bijayanandababu

ACKNOWLEDGEMENT I feel it is a great pleasure to thank Thiru.T.R.Pachamuthu, B.sc., M.I.E, chairman and founder of S.R.M groupforprovidingmeexcellentfacilities. I owe my gratitude to Dr.R.Shivakumar, Secretary and Pro Vice Chancellor of S.R.M institute of science andtechnologyforgivingmeanopportunitytoexhibitmyexcellence. I extend my warm sense of gratitude and heartiest thanks to Dr. Jayshree Suresh, Dean, MBA Department, S.R.M University, Main Campus for his inspiration throughout the execution of this project work. I offer my completely hearted thanks to my project guide Dr. P. Ravilochanan, Professor, MBA Department, S.R.M University, Main Campus for his kind cooperation in the successful completion of myprojectwork.

CONTENTS SLNO. 1. CHAPTERS

CHAPTER1

TITLES
INTRODUCTION 14 1.1AnintroductionofMutualfund. 1 1.2ConceptofMutualFund 1.3MutualFundindustryinIndia
1.4TypesofMutualFunds

PAGENO.

1 2 4 511 5

2.

CHAPTER2

COMPANYPROFILE 2.1KotakMahindaraan Introduction 2.2KotakMahindarBank 2.3PopularKotakMahindra MutualFundscheme 2.4SelectiongtheRightmutual fund 2.5BenefitsofMutualfund 2.6InvestingInMutualfund

6 8

10 10 12 12 12 1314 13 13 14

3.

CHAPTER3

ObjectiveAndlimitationOfStudy 3.1ObjectiveofStudy 3.2LimitationofStudy

4.

CHAPTER4

ResearchMethodology 4.1DataSource 4.2ResearchDesign 4.3TypesofResearch

4.4TypesofSurvey 4.5SamplingUnit 4.6SamplingSize

14 14 14 1538

5.

CHAPTER5

DataAnalysisAnd Interpretation 5.1Percentageanalysisofmarket survey

15

6.

CHAPTER6

FINDINGS,SUGGESTIONAND
CONCLUSION

3941

6.1Findings 6.2suggestion 6.3conclusion

39 40 41 42 4344

7. 8.

CHAPTER7 CHAPTER7

BIBLIOGRAPHY QUESTIONNAIRE

LISTOFTABLES
TABLE NO 5.1 5.2 TABLEHEADING Gender wise number of customer interested to invest in mutualfunds Numberofcustomerinterestedtoinvestinmutualfundson thebasicsoftheireducationalqualification. 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 Numberofcustomerareinterestedtoinvestinmutualfunds onthebasicsoftheiroccupation. Numberofcustomerareinterestedtoinvestinmutualfunds onthebasicsoftheirannualincome. ClassicficationofRisk. Perceptionaboutrisk. Amountofinvestmentinstocks. Periodofinvestmentinmutualfunds. AmountofInvestmentinMutualFunds. PAGENO

16

17 19 21 23 25 27 29 31

SatisfactionabouttheinvestmentinlongtermMutualFund. 32 SatisfactionabouttheinvestmentinshorttermMutual Fund..

33 35 36 38

5.12 5.13

ChoiceofInvestmentinMutualFund. FactorsinfluencingdecisiontoinvestinMutualFund. InvestmentinMF

5.14

 ListofFigures Fig.No 5.1 5.2 Figure Genderwisenumberofcustomerinterestedtoinvestinmutualfunds Numberofcustomerinterestedtoinvestinmutualfundsonthebasics oftheireducationalqualification. 5.3 Numberofcustomerareinterestedtoinvestinmutualfundsonthe basicsoftheiroccupation. Numberofcustomerareinterestedtoinvestinmutualfundsonthe basicsoftheirannualincome. ClassicficationofRisk. Perceptionaboutrisk. Amountofinvestmentinstocks. Periodofinvestmentinmutualfunds. AmountofInvestmentinMutualFunds. SatisfactionabouttheinvestmentinlongtermMutualFund. SatisfactionabouttheinvestmentinshorttermMutualFund.. ChoiceofInvestmentinMutualFund. FactorsinfluencingdecisiontoinvestinMutualFund. 16 PageNo.

17

19

5.4

21 23 25 27 29 31 32 33 35

5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14

36

InvestmentinMF

38

CH HAPTER -1 INTR RODUCTIO ON

1.1 Mu utual fund : An introd duction

A mutua al fund is jus st the conne ecting bridge e or a financial interme ediary that allows a a grou up of investors s to pool the eir money to ogether with h a predeterm mined investment objec ctive. The mutual m fund will l have a fund d manager who w is respon nsible for in nvesting the gathered mo oney into spe ecific securities s (stocks or bonds). Wh hen you inv vest in a mu utual fund, you y are buy ying units or r unit holder of f the fund. Mutual funds f are co onsidered as s one of the e best availa able investm ments as com mpared to ot thers. They are very cost ef fficient and also a easy to invest in thu us by pooling g money tog gether in a mutual m fund inve estors can purchases p sto ocks or bond ds with much h lower trad ding costs tha an if they tri ied to do it on their t minimizing risk & maximizing m returns.

1.2 Con ncept of Mutual Fund d

retu urns

invest tors

securities

fun nd manager a

10

1.3 Mutual Fund industry in India

The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow but it accelerated form the year 1987 when non UTI players entered the industry. In the past decade, Indian mutual fund industry had seen a dramatic improvements both quality wise as well as quantity wise. Before the monopoly of the market had seen an ending phase, the Assess Under Management (AUM) was Rs.67bn. the private sector entry to the fund family raised the AUM to Rs. 470bn in March 1993 and till April 2004, it reached the height of Rs.1,540bn. Putting the Indian Mutual Funds Industry into comparison the total of it is less than the deposits of SBI alone constitute less than 11% of the total deposits held by the Indian banking industry. The main reason of its poor growth is that mutual fund industry in India is new in the country. Large sections of Indian investors are yet to be familiar with the concept. Hence it is the prime responsibility of all mutual fund companies to market the product correctly abreast of selling. First Phase -1964-87 Unit trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up 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 cores of assets under management. Second Phase -1987-1993 (Entry of Public Sector Funds) Entry of Non UTI mutual funds. SBI Mutual fund was the first followed by Can bank mutual fund (Dec 87) Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89) Bank of India (Jun90) Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in 1990. The end of 1993 market Rs.47,004 as assets under management. Third Phase -1993- 2003 (Entry of Private Sector Funds)
11

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first mutual fund Regulations came into being under which all mutual fund 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) Regulation were substituted by a more comprehensive and revised Mutual fund Regulation in 1996. The industry now functions under the SEBI (Mutual Fund) Regulation 1996. The number of mutual fund houses went on increasing with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs.1,21,805 crores. The Trust of India with Rs.44,541 Crores of assets under management was way ahead of other mutual funds. Fourth Phase since February 2003 This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the specified undertaking of the Unti Trust of India with AUM of Rs. 29,835 crores (as on January 2003). The specified undertaking of Unit Trust of India, Functioning under an administrator and under the rules framed by government of India and does not come under the purview of the mutual fund Regulations. The second is the UTI mutual Fund Ltd, Sponsored by SBI, PNB, BOM and LIC. It is registered with SEBI and functions under the mutual fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of AUM and with the setting up of a UTI Mutual Fund Conforming to the SEBI Mutual Fund Regulation and with recent mergers taking place among different private sector funds the mutual fund industry has entered is current phase of consolidation and growth. As at the end of September, 2004there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

12

1.4 Types of Mutual Funds

Funds can have different investment objective such as long term growth high current income or stability of principal. Depending upon its objective a fund might invest in investment bonds or equities or in some cases a combination of these. Equity Funds: Invest in common shares of companies Bond or Debt Funds: Invest in the fixed income securities of companies or the Government of India. Money Market Funds: Hold cash investments like short term commercial paper issued by companies. Balanced Funds : Typically such funds invest in a combination of debt and equity securities, such that they can provide the stability or principal and income of dept investments but also the growth and capital appreciation of equity securities. Usually debt is 35% and equity is 65% of the portfolio but that can change depending upon market conditions. Large cap Funds: Funds that invest in companies whose total market cap is above Rs20-40bn Small cap Funds : Funds that invest in companies whose market cap is below Rs.20bn Closed end funds : Usually for three or more years. You can buy this fund only during the NFO period and these cannot be freely bought or sold thereafter. Sometimes close end fund can convert into open end funds after the initial period of three to five years. Open end fund : Unlike closed end funds these can be bought and sold freely and they do not have any limitation on the holding period.

13

CHAPTER -2 COMPANY PROFILE

2.1 Kotak Mahindara an Introduction

The Kotak Mahindra Group is a financial organization established in 1985 in India. It was previously known as the Kotak Mahindra Finance Limited, a non banking financial organization. In February 2003, Kotak Mahindra Finance Ltd, the groups flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). Kotoak Mahindra Finance Ltd, is the first company in the India banking history to convert to a bank. The bank is headed by K.M. Gherda as Chairman and Uday Kotak as Executive Vice Chairman & Managing Director. Shankar Acharya is the chairman of Board of Directors in the company. The bank has its registered office at Nariman Bhavan, Nariman Point Mumbai. Kotak Mahindra Capital Company Ltd (Kotak Investment Banking) is the investment banking subsidiary of Kotak Mahindra Bank Limited, one of Indias leading banking and financial services organizations. Kotak investment Banking offers the complete breath and depth of high quality financial advisory services encompassing equity and debt capital Markets, M&A advisory Restructuring and Recapitalization, Structured Finance services, Private Equity Advisory and infrastructure advisory. Kotak Investment Banking has unparalleled experience across all major industry sectors Banking & Financial Services, FMCG Pharmaceuticals & Healthcare Power Transportation, Logistics, SEZs, Automobiles Aviation Telecom, Technology, Metals and Minerals, Retailing and Media & Entertainment. Kotak Investment Banking affiliates in USA and UK were the first Indian owned companies to register with FINRA (formerly NASD) in the US and the financial Services Authority (FSA) in the (UK).

14

The company is also member of the National stock Exchange of India wherein it executes clears and settles each futures and options transactions. 2.2 Kotak Mahindar Bank Kotal Mahindra Bank Limited one of Indias fastest growing banks with a pedigree of over twenty years in the Indian financial Markets it is a part of the renowned Indian financial conglomerate, Kotak Mahindra Group. Kotak Mahindra Bank Limited has its flagship company of the business group converted into a bank in 2003 as per RBI approval. Incidentally the kotak Mahindra Group was established in 1985. It may be noted that the product services of the Kotak Mahindra Group comprise the following areas. Bank Bank Kotak Realty Fund Credit Cards Kotak Private Equity Life Insurance International Business Mutual fund Investment Banking Car finance Institutional Equities Securities Product service of the kotak Mahindra Bank Limited encompasses a wide arena. They can be broadly put under the heads of Banking and savings, corporate and Institutional, Investments and insurance and loans and Borrowings. These main service provision areas again have a number of sub areas under them. Banking and Saving
15

 Banking and Accounts Convenience Banking Credit Cards NRI Services Demat Deposits Corporate and Institutional Corporate finance Treasury Investment Banking Institutional Equities Investments and Insurance Life Insurance Estate Planning Mutual Funds Gold Share Trading Structured Products Loans and Borrowings Car Finance Commercial Loans Home Loans Personal Loans Loans Against Property Kotak Mahindar Asset Management Company Ltd. Kotak Mahindra Asset management Company Ltd (KMAMC) acts as an investment manager for Kotak Mahindra Mutual fund KMAMC was established in December 1998 in India. It
16

now has more than 4 lakh investors under its fold. Kotak Mahindra Mutual Fund offers schemes meant to suit the risk appetite of all kinds of investors in India.

2.3 Popular Kotak Mahindra Mutual Fund scheme

The popular Kotak Mahindra Mutual Fund schemes have been listed below Kotak Lifestyle Kotak Global India Kotak Income Plus Kotak Tax Saver Kotak Income Plus Kotak Opportunities Kotak 30 is a open ended equity growth scheme that invests predominantly in large cap stocks that are diversified across sectors and form a significant proportion of total market capitalization. The investment objective of the scheme is to generate capital appreciation from a portfolio f predominantly equity and equity related securities. The scheme generally invests in 30 stocks but has flexibility to go up to 39 companies. Theses companies may or may not be same that constitute the BSE Sensitive Index or the NSE fifty (S&P CNX Nifity) index. The scheme does offer some flavor of mid caps (Maximum exposure up to 20%) to potentially enhance returns. Kotak Tax Saver is a diversified equity scheme that invests in equity and equity related securities and enables the investors to avail the income tax rebate, as permitted from time to time. The investment strategy is to have 80-100% in equity and 0-20% in debt and money market securities. This way the investor derives the dual benefit or gaining returns from investment in equities while also availing the tax benefit. Kotak Tax Saver scheme uses bottom up stock selection to build its portfolio. Risk is being managed by adequate diversification and by sprading investment s over a range of industries and companies. The

17

portfolio offers a diversified mix across various sectors. As it is a close ended architecture the investor has to compulsorily lock in ones fund for 3 years. Kotak Lifestyle Open ended equity scheme that seeks to capitalize on the growing and sustainable consumption boom in India. The key drivers for the lifestyle theme are 4 As Viz Awareness, Availability, Aspiration and Affordability. This together facilitates the consumption boom the basic premise on which the scheme evolves. The scheme endeavors to invest across sectors and companies like media personal care telecom and entertainment, which benefit from the change in the scale of demand. The scheme is suitable for who want to participate in the consumption led story of India.

2.4Selectiong the Right mutual fund

There are over 750 different mutual funds in India today and about 35 different companies that run these funds. So how will you choose which fund to invest in? Firstly Know your own needs. Are you investing to fulfill a short term or a long term goal? Or are you investing just because you heard in your office cafeteria that you should invest in a certain fund? Not all mutual funds serve the same purpose so you should know why you are investing. If you want capital appreciation for you sons education 20 years from now you should not invest in a bond fund. However if you want to save and protect your capital for funding your sons education in 2 years time then you should consider a conservative fund like a bond or money market fund which will also give you some income. Secondly this brings us to time horizon. What period are you ready to invest in the market for? Equity funds should be held for at least 3-5 years because equities are long term investment vehicles. Debt or money market funds however can be invested in for shorter periods of time. Finally many investors look at past performance and assume that the fund will continue to return the same in the future. This is not always true and can often be wrong. Any fund can do well over a short term because luck and other factors and comes into play. So do not choose a fund to invest in just because it has done well in the recent past. You should be

18

interested in the long term performance of the fund. Invest in funds that have done well across market cycles and investment cycles.

2.5 Benefits of Mutual Fund

Convenience : Investors who have the time and the money can build their portfolio by buying one security at a time. But identifying researching and monitoring securities can be a full time job that requires a lot of commitment. Alternatively investors can simply buy a mutual fund in the market that will save them a lot of time and regular monitoring of the performance of the individual securities that make up the fund Diversification : A single can hold securities from 100s f different issuers or companies far more than what an individual investor can realistically manage to hold in their individual portfolios. This diversification reduces the risk of a loss due to problem in one particular company or industry. Professional Management : A mutual fund is managed by professional investors who do this full time. The resources available to them like traders who have practical experience in when to buy and sell securities research team and access to company management is far more than what an individual investors can achieve on his own Liquidity : Like shares mutual funds are also liquid investment that can be bought or sold freely so that investors have access to their money when needed. However certain shares might not trade freely because there is not market for them and then the investor is stuck mutual funds do not face this problem of illiquidity.

2.6 Investing In Mutual Funds

1. where can you purchase mutual funds- banks brokerage house third party distributors. 2. Fill out form you will need you PAN number for that 3. Get receipt acknowledgement as proof that you have invested in the fund. 4. Fund House will send you regular statement s on your status and NAV of your units.

19

5. You can choose to invest through a SIP scheme Systematic investment Plan. Allows you to invest small amounts of money at regular intervals. Helps you avoid market timing and you can enter the market with a small amount of capital rather than a lump sum. You can also set up an electronic transfer directly from your bank through the ECS transfer facility so you dont have to write a cheque every month. 6. How can you educate yourself about MFs read personal finance magazines like outlook Money or Money Today or the personal finance sections of business newspapers may newspapers like Hindu or Business standard also carry weekly reports on mutual funds .

20

CHAPTER -3

3.1Objective of Study
The Objective of the study is to examine the customer awareness about the mutual funds. To determine the benefits of mutual fund. To assess the operation of mutual funds. To guide the selection among mutual funds.

3.2 Limitation of Study

1. Respondents were busy in their respective work due to which they could not give us true cooperation. 2. The customer hesitate to give the actual information about their personal matters like annual income portfolio income portfolio size contact number etc. 3. The report is strictly based on the opinion of the respondents 4.The information collected and analyzed are limited which may not fully represent the industry. 5. The study is for limited period of two months and opinions may change after time so there may be difference in opinion in future.

21

CHAPTER -4 RESEARCH METHODOLOGY This report is based on primary as well secondary data. One of the most important users of research methodology is that it helps in identifying the problem, collecting analyzing the required information data and providing an alternative solution to the problem. It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to decision and critical ones.

4.1 Data Source

To meet the information needs for the study researcher had gathered both Primary Data Secondary Data Primary data involves data which has been obtained through questionnaires. Secondary data has been collected by the research from the company record.

4.2 Research Design

A research design specifies the methods and procedure for conducting a particular studies. The researcher should specify the approach he intends to use respect to the proposed studies. Broadly speaking research design can be grouped into two categories. 1. Exploratory research : It focuses on the discovery of ideas and if generally based on secondary data. 2. Descriptive study: it attempts to determine the frequency with which sometime occurs or the relationship between the phenomena to identify the characteristic of certain products.

22

4.3 Types of Research

Descriptive research: the type of study in this survey is descriptive research design. The descriptive research design is also called explanatory design. This is the one the simply descriptive something such as demographic characteristics of consumers who will use the products. Research approach survey: survey research is a systematic gathering of data from respondents through questionnaire the purpose of survey research is to facilitate understanding enable predication of some aspects of behavior of the population being surveyed.

4.4 Types of Survey

There are three of survey namely telephone mail and personnel interviews the type of survey in this project is telephone as well as personal interview.

4.5 Sampling Unit

The most important and basic factors to be decided was the sampling unit. The sampling unit during this research was the investors. This study has been done in some selected locations such as Electronic city, Bull road and Maratheli. Electronic city and Bull road mainly deal with business oriented people. Maretheli belongs to residential areas.

4.6 Sampling Size

I have taken 100 customers randomly for market survey.

23

CHAPTER -5 DATA ANALYSIS AND INTERPRETATION

5.1 Percentage analysis of market survey

One of the important parts of the project at KOTAK MAHINDRA BANK LTD. is to suggest the clients which mutual fund scheme to opt for. Before suggesting a particular mutual funds scheme client profiling has to be done. The following details will be included in the client profiler attached in annexure1: Personal details : Name, Gender, Employment details Income, Expenditure details Analyzing the risk taking ability of clients For the purpose of investor profiling a questionnaire was developed with multiple options.

24

Table-1
Title- Gender wise number of customer interested to invest in mutual funds Gender No of respondents Male Female Total 87 13 100 87% 13% 100% Percentage of respondents

Respondent
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Male TypeRespondent Female Percentageofrespondent

Figure 1: Gender wise number of customer interested to invest in mutual funds.

Interpretation:
Table-1 contain information about Gender wise number of customer interested to invest in mutual funds. And the data reveals that 87% male customer are interested to invest in mutual funds and 13% female customer interested to invest in mutual funds

25

Table-2
Title:Number of customer interested to invest in mutual funds on the basics of their educational qualification.

Educational option

Respondent

Percentage of respondents

Undergraduate Graduate PG Other Total

10 56 32 2 100

10% 56% 32% 2% 100%

60% Percentageofinvestor 50% 40% 30% 20% 10% 0% Undergraduate Graduate PG Other

Educationalqualification

Figure 2: Number of customer interested to invest in mutual funds on the basics of their educational qualificational.

26

Interpretation
Table -2 contain information information about according to qualification number of customer are intrested to invest in mutual funds. The following data explain about 56% customer are intrested to invest in mutual funds are graduate,32% customer are intrested to invest in mutual is post graduate , 10% are under graduate and 2% other.

27

Table-3
Title:- Number of customer are interested to invest in mutual funds on the basics of their occupation. Option Respondent Percentage of respondents 28% 26% 40% 6% 100%

Students Self employed Professional Service Total

28 26 40 6 100

45% 40% Percentageofinvestor 35% 30% 25% 20% 15% 10% 5% 0% Student Self employed Professional service

Occupation

Figure 3: Number of customer are interested to invest in mutual funds on the basics of their occupation.

28

Interpretation:
Table-3 contain information about occupation wise number of customer intrested to invest in mutual funds. The following data reveals that 28% student are intrested to invest in mutual funds, 26% self employed,40% professional and 6% service people.

29

Table-4
Title:- Number of customer are interested to invest in mutual funds on the basics of their annual income.

Option

Respondent

Percentage of respondents

Up to Rs.2 Lac Rs.2-4 Lac Above Rs. 4 Lac Total

32

32%

44 24

44% 24%

100

100%

50% 45% Percentage of investors 40% 35% 30% 25% 20% 15% 10% 5% 0% UptoRs.2Lac Rs.24Lac Annual family income AboveRs.4Lac

Figure 4: Number of customer are interested to invest in mutual funds on the basics of their annual income.

30

Interpretation
Table-4 keep information about income wise number of customer are interested to invest in mutual funds. The following data indicate that about 44% customer are interested to invest in mutual funds which comes under second category (2-4 Lakhs), 32% customer are interested which comes under first category (Up to 2 Lakhs) and only 24% interested to invest in mutual funds which comes under above 4Lakhs.

31

Table-5
Title:- Classicfication of Risk. Option Respondent Percentage of respondents High Risk Take Cautions A Real Avoider Total 40 40 20 100 40% 40% 20% 100%

45% 40% Percentageofinvestors 35% 30% 25% 20% 15% 10% 5% 0% Highrisktaker Cautions ARealAvoider

Natureofinvestorsbasedonrisk

Figure 5: Classicfication of Risk.

32

Interpretation:
Table-5 keeps information about how the person describe themselves as risk taker. The following data keep information about 40% of investor describe themselves as a high risk taker after completing adequate research, and again 40% cautions, but 20% are consider themselves as a real avoider.

33

Table-6
Title:- Perception about risk. Option Respondent Percentage of respondents Loss Uncertainty Opportunity Thrill Total 32 28 30 10 100 32% 28% 30% 10% 100%

35% Percentageofrespondent 30% 25% 20% 15% 10% 5% 0% Loss Uncertanity Opportunity Thrill

Typesofperceptions

Figure 6: Perception of risk

34

Interpretation:
Table 6 contains information how customer perceives risk. 32% respondent replied that risk implies loss, 28% uncertainty,30% opportunity and 10% about Thril.

35

Table-7
Title:- Amount of investment in stocks. Option Less than Rs.20000 20000-50000 50000-100000 More than 100000 Total Respondent 48 47 7 2 100 Percentage of respondents 48% 47% 7% 2% 100%

60% Percentageofrespondent 50% 40% 30% 20% 10% 0% LessThanRs. 20000 2000050000 50000100000 Morethan 100000

Amount of investment

Figure 7: Amount of investment in stocks.

36

Interpretation:
Table-7 indicates how much amount investor interested to invest in stock.The following data gives information about 48% invest less than Rs. 20,000, 43% invest between Rs 20,00050,000, 7% between 50,000-1,00,000 and 2% more than Rs 1,00,000.

37

Table-8
Title- Period of investment in mutual funds. option Respondent Percentage of respondents Less Than 1 Year 1-2 Year 2-4 Year 4-6 Year Above 6 Year Total 34 22 4 2 100 34% 22% 4% 2% 100% 38 38%

40% Percentageofrespondent 35% 30% 25% 20% 15% 10% 5% 0% Lessthan1 12Year year 24Year Timeperiod 46Year Above6 Year

Figure 8: Period of investment in mutual funds.

38

Interpretation
The following data reveals that 38% are interested to invest in mutual funds for less than 1 year, 34% are interested to invest in mutual funds between 1-2 year, 22% replied they are interested to invest in mutual funds between 2-4 years and only 2% respondent replied they are interested to invest in mutual funds for above 6 year.

39

Table-9
Title- Amount of Investment in Mutual Funds. Option Less Than Rs 20000 20000-50000 50000-100000 Above 100000 Total 48 2 2 100 48% 2% 2% 100% Respondent 48 Percentage of respondents 48%

60% Percentageofrespondent 50% 40% 30% 20% 10% 0% Lessthan Rs.2000 2000050000 50000100000 Above100000 Amountinvested

Figure 9: Amount of Investment in Mutual Funds

Interpretation:
Table-9 contains details about amount of investment in mutual funds. Following data reveals that 48% of respondents replied that they are investing less than Rs 20000,48% replied that they are interested to invest in mutual funds Rs.20000-50000 and only 4% replied other option.
40

Table- 10
Title-Satisfaction about the investment in long term Mutual Fund. Option Respondent Percentage of respondents Yes No Cant Say Total 46 38 16 100 46% 38% 16% 100%

50% 45% Percentageofresponse 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Typesofresponse Can`tsay

Figure 10: Satisfaction about the investment in long term Mutual Fund

Interpretation:
Table 10 contains information about satisfaction regarding the investment in long term mutual funds and the following data reveals that 46% are satisfied with long term investment and 38% are not satisfied with long term investment while only 16 % replied they have no opinion about satisfaction.

41

Table-11
Title-Satisfaction about investment in short term Mutual Fund. Option Respondent Percentage of respondents Yes No Cant Say Total 40 40 20 100 40% 40% 20% 100%

50% 45% Percentageofresponse 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Typesofresponse Can`tsay

Figure 11: Satisfaction about the investment in short term Mutual Fund

42

Interpretation:
Table-11 describe about satisfaction with short term mutual investment . The data reveals that 40% respondents replied that they are satisfied and 40% replied they are not satisfied about short term investment and only 20 are unable to replied this information.

43

Table-12
Title- Choice of Investment in Mutual Fund. Option Respondent Percentage of respondents Single Mf More Than One Mutual Fund Total 100 100% 54 46 54% 46%

56% Percentageofrespondent 54% 52% 50% 48% 46% 44% 42% singleMF MorethanoneMf Typeofmutulfunds

Figure 12: Choice of Investment in Mutual Fund.

Interpretation
Table-12 describe about type of investment in Mutual funds. The following data explain about 54% are interested to invest in single Mutual Funds and only 46% respondent replied that they are interested to invest more than one Mutual funds.

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Table-13
Title-Factors influencing decision to invest in Mutual Fund. option Return Commission Personalized Service Type Of AMC Issuing Mf Others Total 8 100 8% 100% 20 20% Respondent 46 18 8 Percentage of respondents 46% 18% 8%

50% 45% Percentageofrespondent 40% 35% 30% 25% 20% 15% 10% 5% 0% Return Commission Personalized TypeofAMC IssuingMF Factors Other

Figure 13: Factors influencing decision to invest in Mutual Fund.

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Interpretation
Table 13 contains information about what factors influence customer to invest. The following data reveals that 46% invest for return and 18% commission, Personalized service 8%, Type of AMC Issuing Mf 20% and 10% others.Maximum investors are investing for their future.

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Table-14
Title- Investment in MF Option Respondent Percentage of respondents Through Broker Directly In Fund Organization Both Total 32 100 32% 100% 38 30 38% 30%

40% 35% Percentageofrespondent 30% 25% 20% 15% 10% 5% 0% ThroughBroker Directlyinfound organization Waysofinvestment Both

Figure 14: Investment in MF

Interpretation
Table 14 contains information about investment in MF. Following data explain about directly in fund organization 38%, directly in fund organization 30% and only 32% replied about both.
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CHAPTER 6 FINDINGS, SUGGESTION AND CONCLUSION Findings

1. Male customers (87%) are more interested to invest in mutual funds. 2. 60% of the investors do not want to take risk. 3. 38% investors dont satisfy with long term investment. 4. 38% investors come through broker. 5. 38% investors are interested in less than 1 year plan in mutual funds.

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Suggestion
1. Internet tools are the powerful medium to give proper guidance and create awareness among the customers about the mutual funds. 2. Before investing investor should be aware on the benefits of the various plans and schemes of the mutual fund. 3. Investor should know about the risk factor. 4. The news letters published helps investors. Hence news letters bulletins can be published for guidance. 5. A regular investor friendly seminar must be organized to make an interactive session in between the customers and the companies. 6. Efforts should be taken to make the mutual funds more popular through appropriate publicity measures.

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Conclusion
Mutual fund has a very bright future. Most of the people want to invest on this but due to insufficient knowledge in this field they dont want to invest money. Mutual funds are suitable for genuine investors as the investors are depending on the objective, expectation and risk taking ability etc., it is good channel investing and turning it into an investment opportunity as well as for availing tax relief. There is no doubt that the determinant for investing in mutual fund is the NAV factor. Mutual fund have to focus more on proper pricing better investor servicing as well as offer handsome returns. Mutual fund have to understand the psychology of investors.

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CHAPTER 7
BIBLIOGRAPHY BOOKS RESEARCH METHODOLOGY, 5th edition KALYANI PUBLISHER, (C.R.KTHARI) MUTAL FUND A GLANCE, (AMFI PUBLICATION) PRINCIPLES OF MARKETING MANAGEMENT, 13th edition PERSON ONE PUBLISHER, (PHILIP KOTLER)

WEBSITES : www.mutualfund.com www.kotakmahindra.com www.google.com

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CHAPTER 8
QUESTIONNAIRE FOR A SURVEY ON MUTUAL FUNDS Name

Age Home town State

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Please tick the correct option in the following queries a) Gender b) Education Undergraduate c) Occupation Student d) Annual Family Income Up to 21 lakhs 2 Lakhs to 4 lakhs Above 4 lakhs Self Employed Professional Service Graduate PG Others Male Female

e) In general how would you describe yourself as risk taker? High risk taker Cautious Willing to take risks after completing adequate research A real Avoider

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f) When you think of the word risk which of the following words comes to mind firs/ Loss Uncertainty Opportunity Thrill

g) Amount of investment in stocks Less than Rs.20000 Above 100000 h) How long have you been investing in Mutual Funds? Less than 1 year 4yr to 6yr 1Yr to 2yr Above 6 yr 2yr to 4y 20000-50000 50000-100000

i) Amount of investment in Mutual funds Less than Rs 20000 Above 10000 j) Are you satisfied with your investment in long term Mutual funds? Yes No Cant Say 20000-50000 50000-100000

k) Are you satisfied with your investment in short term Mutual Funds? Yes No Cant Say

l) Your type of investment in Mutual funds is Single MF More than one MF

m) If it is in more than one what factors influence your decision to invest in either load / No load. Return Service /Advice n) Your investment in MF is Through broker Directly in Fund organization
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Commission

Personalized

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