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EXECUTIVE SUMMARY
INDUSTRY PROFILE
Stock Exchange:
Stock markets refer to a market place where investors can buy and sell stocks. The price at
which each buying and selling transaction takes is determined by the market forces (i.e.
demand and supply for a particular stock)
In earlier times, buyers and sellers used to assemble at Stock Exchanges to make a
transaction but mow with the dawn of IT, most of the operations are done electronically and
the stock markets have become almost paperless. Now investors dont have to gather at the
Exchanges, and can trade freely from their home or office over the phone or through
internet.
Stock brokering:
A stock brokers is a regulated professional broker who buys and sells shares and
other securities through market or agency only firms of investors .A broker may be
employed by a broker.
COMPANY PROFILE
OVER VIEW:
(MOSL) was founded in 1987 as a small sub-broking unit, with just two people
running the show. Focus on customer-first-attitude, ethical and transparent business
practices, respect for professionalism, research-based value investing and implementation of
cutting-edge technology has enabled us to blossom into an over 1600 member team.
Today they are a well diversified financial services firm offering a range of financial
products and services such as Wealth Management, Broking & Distribution, Commodity
Broking, Portfolio Management Services, Institutional Equities, Private Equity, Investment
Banking Services and Principal Strategies.
They have a diversified client base that includes retail customers (including High
Net worth Individuals), mutual funds, foreign institutional investors, financial institutions
and corporate clients. We are headquartered in Mumbai and as of Dec 31st, 2011, had a
network spread over 555 cities and towns comprising 1,563 Business Locations operated by
our Business Partners and us. As at Dec 31st, 2011, we had 738,156 registered customers.
THEORITICAL CONCEPTS
A Mutual fund is a trust that pools the savings of a number of investors who share a
common financial goal. 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 to the number of units owned by them. Thus a mutual fund is the most suitable
investment of the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost.
According to Weston J. Fred and Brigham, Eugene, F, Unit trusts are corporations
which accept dollars from savers and then use these dollars to buy stock, long term bonds,
short term debt instruments issued by business or government units; these corporations pool
funds and thus reduce risk by diversification.
RESEARCH METHODOLOGY
a.
Due to the falling Rate of Interest on Bank deposits, it is obvious that Investment in Mutual
Fund will grow in year to come. However lack of Awareness of Mutual Fund is a hindering
factor in expected growth of Mutual Fund Business. Under noted problems are envisaged in
this area: Difficult in convincing people for investment. Difficult to change mind of the
investor according to age and Profession. Difficult to make an approach to investors.
Difficult to take an appointment with professional people. Difficult to get the documents
required for formalities from investors Difficult to overcome an impassionate person who
wants return in less time. Difficult to follow up the people whose names are being stored in a
data. Difficult to remove the fear of risk from the minds of investors.
b.
Mutual Funds are considered as one of the best available investment option as compare to
others. It collects the savings form small investors and these funds are invested on their
behalf. Lack of awareness is one of the disadvantages for the success of mutual funds.
Hence here may studied is confined to know the awareness of mutual funds and its scope
among public providing required suggestions.
c.
OBJECTIVE OF STUDY:
1. To know the awareness of MUTUAL FUND among people.
2. To see the interest of people in investing in MUTUAL FUNDS.
3. To know the scope of MUTUAL FUNDS in India.
4. To know the different attitudes of people regarding risk, rate of return, period of
investment etc.
d.
SOURCE OF DATA:
Primary data:
Primary data is collected through Questionnaire
Secondary Data:
The data can be collected from Secondary Sources. The data was collected from Past
Records, Books, Journals, Magazines, Internet and all other types of published data.
e.
f.
RESEARCH DESIGN:
Research Type
Population
Sample size
100 people
Sample technique
convience sampling
g.
h.
Every work has its own limitations. Limitations are extent to which the process should not
exceed. The following limitations for the project are:
1. Duration of project was not enough to make our conclusion on such a vast subject. Time
constraints has also become a major limitation
2. The sample size taken for drawing the conclusion was not sizeable
FINDINGS
From the above analysis it is observed that 50% of the respondents are at the age of 25
40, 30% of the respondents are at the age below 25, 20% of the respondents are at the
age above 40.
From above analysis observed that 56% of the respondents are Employee, 40% of the
respondents are Business men 4% of the respondents are Students.
From the above analysis observed that 64% of the respondents are 1 lakh 1.5 lakh,
14% of the respondents are 1.5 lakh to 3 lakhs, 14% of the respondents are less than 1
lakh, 8% of the respondents are above 3 lakhs.
From the above analysis it is observed that 41% of the respondents are invested in Bank
Deposits, 35% of the respondents invested in Mutual Funds, 13% of the respondents
invested in Gold and Silver, 7% of the respondents invested in Shares and Deposits, 4%
of the respondents invested in insurance.
From the above analysis it is observed that 80% of the respondents invested in Mutual
Funds and 20% are not invested in Mutual Funds.
From the above analysis it is observed that 80% of the respondents came to know about
Mutual Funds through friends, 15% through Stock Brokers, 5% through advertisements.
It is observed that most of the investors have partial knowledge about Mutual Funds.
Only 80% of investors have better awareness about working of Mutual Funds and 20%
are totally ignorant about Mutual Funds.
It is observed that 70% of respondents invested through stock brokers, 20% through
banks and 10% invested directly.
Most of the respondents are invested in Public Limited Mutual Funds and 30% invested
in private sector.
mutual funds.
SUGGESTIONS
From the analysis it is found that 20% of the employees are at age group 40. So here it is
suggested that lot of awareness has to be created to attract this age group.
Only 8% of respondents i.e., income above 3 lakhs are invested in mutual funds so here
attention has to be given by the AMC and advisor to attract this group by offering risk
less and regular return schemes.
Stock brokers and AMCs need to take more initiation in bringing the investors into their
services by providing quality and better services and advises to the investors.
Private mutual fund companies need to take lot of promotional activities and offer more
and more diversified schemes to attract more investors.
Give full awareness about mutual fund to investors before the industry.
It is risk less to invest in public ltd mutual funds .
To suggest the investor to invest in strategic investment to gain more profit they one time
investment .
Most of the investors to be are to be prefer safety and regular income to suggest then to
it in available is our investment.
CONCLUSION
It can be concluded that mutual funds are the better investment options. Investing in
portfolio of mutual funds can minimize risk. By creating awareness and better advises on
mutual funds working then it provides a option to attract more and more investors to invest in
mutual funds.
The market is growing day by day and public is invested in better investment options
brokers, agents, AMCs need to take initiation to create awareness on mutual funds to increase
its scope and to attract more investors.
CHAPTER-1
INDUSTRY PROFILE
Stock Exchange:
Introduction
Stock markets refer to a market place where investors can buy and sell stocks. The price at
which each buying and selling transaction takes is determined by the market forces (i.e.
demand and supply for a particular stock)
In earlier times, buyers and sellers used to assemble at Stock Exchanges to make a
transaction but mow with the dawn of IT, most of the operations are done electronically and
the stock markets have become almost paperless. Now investors dont have to gather at the
Exchanges, and can trade freely from their home or office over the phone or through
internet.
One of the oldest stock market in Asia, the Indian Stock Markets has a 200 years old
history.
18th century East India Company was the dominant institutions and by end of the
century, business in its loan securities gained full momentum
1830s Business on corporate stocks and shares in Bank and Cotton presses started in
Bombay. Trading list by the end of 1839 got .broader.
1840s Recognition from banks and merchants to about half a dozen brokers.
1860-61 The American Civil War broke out which caused a stoppage of cotton
supply from United States of America; marking the beginning of the Share Mania
in India
1865
A disastrous Slump began at the end of the American Civil War (as an
example,
Pre-Independence
Scenario-Establishment
of
Different
Stock
Exchange
1874
With the rapidly development share trading business, brokers used to gather
at a
street (now well known as Dalal Street) for the purpose of transacting
business.
1875
The Native Share and Stock Brokers Association (also known as The
Bombay
1894
1880-90s
followed by
1908
10
1920
Madras witnessed boom and business at The Madras Stock Exchange was
1923
Exchange
1934
1936
Merger if the Lahore Stock Exchange with the Punjab Stock Exchange.
1937
Limited
1940
Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited
were
established.
1944
1947
Delhi Stock and Share Brokers Association Limited and The Delhi Stock
and
Share Exchange Limited were established and later in merged into The
Delhi Stock
11
12
Act as an agent,
Buy and sell securities for his clients and charge commission for the same,
Advantages of OTCEI
Greater liquidity and lesser risk of intermediary charges due to widely spread trading
mechanism across India.
The screen-based scruples trading ensures transparency and accuracy of prices
Faster settlement and transfer process as compared to other exchanges
13
Capital market
Trading at NSE
14
The prices at which the buyer and seller are willing to transact will appear on the
screen
Investors can transact from any part of the country at uniform prices
Stock brokering
Stock brokering meaning:
A stock brokers is a regulated professional broker who buys and sells shares and
other securities through market or agency only firms of investors .A broker may be
employed by a broker.
15
Floor dealing.
NEW ISSUES:
Circulates the offer documents on the floor on the exchange and market issue.
16
BOND TRADERS:
17
COMPANY PROFILE
OVER VIEW:
(MOSL) was founded in 1987 as a small sub-broking unit, with just two people
running the show. Focus on customer-first-attitude, ethical and transparent business
practices, respect for professionalism, research-based value investing and implementation of
cutting-edge technology has enabled us to blossom into an over 1600 member team.
Today they are a well diversified financial services firm offering a range of financial
products and services such as Wealth Management, Broking & Distribution, Commodity
Broking, Portfolio Management Services, Institutional Equities, Private Equity, Investment
Banking Services and Principal Strategies.
They have a diversified client base that includes retail customers (including High
Net worth Individuals), mutual funds, foreign institutional investors, financial institutions
and corporate clients. We are headquartered in Mumbai and as of Dec 31st, 2011, had a
network spread over 555 cities and towns comprising 1,563 Business Locations operated by
our Business Partners and us. As at Dec 31st, 2011, we had 738,156 registered customers.
FINANCIAL PATTERN:
18
Institutional Equities
2.
Asset management
3.
Investment Banking
4.
Private equity
5.
Principle Strategies
6.
Wealth management
Portfolio management
Private Equity
Structured products
19
Insurance
7.
Equities
Derivatives
Commodities
Depository Services
Mutual Funds
IPO
Wide range of investment choices - Equity, Derivatives, IPOs and Mutual Funds
Flexible Online Trading Platform from your Desktop, Web, Mobile or Call N Trade
Discounted Brokerage Schemes that offer you true value for money
20
Integrated view of your investments, customised news & alerts, watchlists, etc.
through My Motilal Oswal
MANAGEMENT TEAM:
1.
Motilal Oswal
Chairman and Managing Director, MOFSL
2.
Raamdeo Agrawal
Joint Managing Director, MOFSL
3.
Navin Agarwal
Director, MOFSL
4.
Ramnik Chhabra
Associate Director - Head Marketing, MOFSL
5.
Sameer Kamath
Chief Financial Officer, MOFSL
6.
21
Programs:
Blood donation drive 2010
Employees charity
Mumbai marathon
Association:
LIGHT OF LIFE TRUST
Light of Life Trust (LOLT) is a non-governmental organization established in 2002 with a
vision to transform the lives of underprivileged rural communities. The Founder and
Chairperson of Light of Life Trust, Villy Doctor, along with a few likeminded & concerned
individuals came together to look at different avenues through which various supportive &
sustainable programmes could be initiated to reach out to women & children, the most
venerable section of
transparency, passion and commitment, respect, trust and joy are the core values of the
organization that are clearly reflected in all the areas of our work.
Light of life Trust has three verticals Project Anando, Project Jagruti and Project Aangan.
Project Anando is based on the belief that no child should be forced to drop out of school.
The project aims to realize the untapped potential of Indias rural children and empower
them through the 3 E approach Educate, Empower and Equip for Employability.A
community centre for women, a senior citizen home, a childrens home and a medical
22
Core Purpose:
To be a well respected and preferred global financial services organization enabling wealth
creation for all our customers.
Team work :Attaining goals collectivity and collobarativily and .
Meritocracy:Performance gets differentiated recognized and rewarded in an apolitical environment.
Passion & attitude :High energy and self motivated with a Do It attitude and entrepreneurial spirit.
Excellence in execution :Time bound results within the frame work of the companies value systems.
23
Vision
Mission
To establish L&T Investment Management Ltd. into a leadership position in the asset
management business.
Values
Solidity: We believe that a strong foundation is key to building a great structure. We will
ensure that our foundations are based on thorough knowledge and expertise, and constantly
strengthen it.
Commitment: We believe in utmost commitment to our responsibilities. And to you, we
don't believe in just selling a financial solution but building a long term partnership. We are
with you for life. And through every stage of your life.
Innovation: We believe in constantly looking ahead, envisioning the future and anticipating
and adapting to it, rather than merely keeping pace with it, which is why you will always
find us devising innovative ways to build your wealth.
24
CHAPTER-2
THEORITICAL CONCEPTS
Introduction:
In the financial industry, the talk of the day is Mutual Funds. The driving force of
mutual funds is the safety of the principal guaranteed, plus the added advantage of capital
appreciation together with the income earned in the form of interest or dividend. Thus,
mutual funds act as gateway to enter into big companies hitherto inaccessible to an ordinary
investor with his small investment.
A mutual fund collects the savings from small investors, invest them in Government
and other corporate securities and earn income through interest and dividends, besides
capital gains. It works on the principle of small drops of water make a big ocean. Each
fund is divided into a small fraction called units equal value.
25
26
27
DEFINITION
The securities and Exchange Board of India (Mutual Funds) Regulation, 1993 defines
a mutual fund a fund established in the form of a trust by a sponsor, to raise monies by the
trustees through the sale of units to the, public, under one or more schemes, for investing in
securities in accordance with these regulations
According to Weston J. Fred and Brigham, Eugene, F, Unit trusts are corporations
which accept dollars from savers and then use these dollars to buy stock, long term bonds,
28
29
30
Diversification
Diversification is nothing but spreading out your money across available or different
types of investments. But choosing to diversity respective investment holdings reduces risk
tremendously up to certain extent.
The most basic level if diversification is to buy multiple stocks rather than just one
stock. Mutual funds are set up to buy many stocks. Beyond that, you can diversify even
more by purchasing different kinds of stocks, then adding bonds, then international, and so
on. It could take you weeks to buy all these investments, but if you purchased a few mutual
funds you could be done in a few hours because mutual funds automatically diversify in a
predetermined category of investments (i.e. growth companies, emerging or mid size
companies, low grade corporate bonds, etc.,).
Open-Ended Schemes:
31
Close-Ended Schemes:
These schemes have a pre-specified maturity period. One can invest directly in the
scheme at the time of initial issue. Depending on the structure of the scheme there are two
exit options available to an investor after the initial offer period closes. Investors can
transact (buy and sell) the units of the scheme on the stock exchanges where they are listed.
The market price at the stock exchanges could vary from the net asset value (NAV) of the
scheme in account of demand and supply situation, expectations of unit holder and other
market factors. Alternatively some close-ended schemes provide an additional option of
selling the units directly to the Mutual Fund through periodic repurchase at the schemes
NAV however one cannot buy units and can only sell units during the liquidity window.
SEBI Regulations ensure that at least one of the two exit routes is provided to the investor.
3.
Internal Schemes:
Internal Schemes are that scheme, which combines the features of open-ended and
close-ended schemes. The units may be traded on the stock exchange or may be open for
sale or redemption during pre-determined intervals at NAV related prices.
INVESTMENT OBJECTIVE:
Equity Funds Dividend
The aim of Equity Funds Dividend is to provide capital appreciation over the
medium to long- term. Such schemes normally invest a majority of their corpus in equities.
It has been proven that returns from stocks, have outperformed most other kind of
investments held over the long term.
Equity Funds Growth
32
OTHER SCHEMES:
Tax Saving Schemes
These schemes offer tax rebates to the investors under specific provisions of the
Indian Income Tax laws as the Government offers tax incentives for investment in specified
avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension
Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961.
SPECIAL SCHEMES:
Industry Specific Schemes
Industry Specific Schemes invest only in the industries specified in the offer document. The
investment of these funds is limited to specific industries like InfoTech, FMCG, and
Pharmaceuticals etc.
33
Professional management.
Diversification.
Convenient administration.
Return potential.
Low cast.
Liquidity.
Flexibility.
Choice of schemes.
Tax benefits.
Well regulated.
TAX - BENEFITS
34
No dividend distribution tax for equity mutual funds (completely tax free dividends)
Tax liability only when investment is redeemed/ withdrawn (not every year)
1963 and 1987 marked the existence of only one mutual fund Company in India with Rs.
67bn assets under management (AUM).by the end of its monopoly era. The Unit Trust of
India (UTI), by the end of the 80s decade, few other mutual fund companies in India took
their position in mutual fund market.
35
36
37
CHAPTER-3
RESEARCH METHODOLOGY
a. STATEMENT OF THE PROBLEM:
Due to the falling Rate of Interest on Bank deposits, it is obvious that Investment in Mutual
Fund will grow in year to come. However lack of Awareness of Mutual Fund is a hindering
factor in expected growth of Mutual Fund Business. Under noted problems are envisaged in
this area: Difficult in convincing people for investment. Difficult to change mind of the
investor according to age and Profession. Difficult to make an approach to investors.
Difficult to take an appointment with professional people. Difficult to get the documents
required for formalities from investors Difficult to overcome an impassionate person who
38
c.OBJECTIVE OF STUDY:
1. To know the awareness of MUTUAL FUND among people.
2. To see the interest of people in investing in MUTUAL FUNDS.
3. To know the scope of MUTUAL FUNDS in India.
4. To know the different attitudes of people regarding risk, rate of return, period of
investment etc.
d.SOURCE OF DATA:
Primary data:
Primary data is collected through Questionnaire
Secondary Data:
The data can be collected from Secondary Sources. The data was collected from Past
Records, Books, Journals, Magazines, Internet and all other types of published data.
39
f.RESEARCH DESIGN:
Research Type
Population
Sample size
100 people
Sample technique
convience sampling
CHAPTER-4
4. DATA ANALYSIS
Question 4.1 : Age
Option
Below 25
25 to 40
Above 40
No. of Respondents
30
50
20
40
Percentage
30%
50%
20%
Interpretation:
From the above analysis it is observed that 50% of the respondents are at the age of
25 to 40, 30% of the respondents are at the age below 25, 20% of the respondents are at the
age above 40.
41
No. of Respondents
4
56
40
-
percentage
4%
56%
40%
-
Interpretation:
From the above analysis it is observed that 56% of the respondents are the
employees, 40% of the respondents are business man, 4% of the respondents are the students
and 0% of house holds.
Option
Less than 1 lakh
1 lakh to 1.50 lakhs
1.50 lakhs to 3 lakhs
Above 3 lakhs
42
No. of Respondents
14
64
14
8
percentage
14%
64%
14%
8%
Interpretation:
From the above analysis it is observed that 64% of the respondents are at the income
levels 1 lakh to 1.50 lakhs, 14% of the respondents are at the income levels 1.50 lakhs to 3
lakhs, 14% of the respondents are at the income levels less than 1 lakh , 8% of the
respondents are at the income levels above 3 lakhs.
43
No. of Respondents
7
41
4
35
13
Percentage
7%
41%
4%
35%
13%
Interpretation:
From the above analysis it is observed that 41% of the respondents are invested in Bank
Deposits, 35% of the respondents invested in Mutual Funds, 13% of the respondents
invested in Gold and Silver, 7% of the respondents invested in Shares and Deposits, 4% of
the respondents invested in insurance.
Question : 4.5 Have you ever invested your money in Mutual Fund (if yes)
Option
Yes
No
No. of Respondents
80
20
44
percentage
80%
20%
Interpretation:
From the above analysis it is observed that 80% of the respondents invested in Mutual Funds
and 20% are not invested in Mutual Funds
No. of Respondents
80
15
5
-
45
percentage
80%
15%
5%
-
Interpretation:
From the above analysis it is observed that 80% of the respondents came to know about
Mutual Funds through friends, 15% through Stock Brokers, 5% through advertisements.
No.
Respondents
Totally ignorant
20
Partially knowledge of mutual fund
63
Aware only of any specific scheme in 5
which your invested
46
of percentage
20%
63%
5%
12
12%
Interpretation:
It is observed that most of the investors have partial knowledge about Mutual Funds. Only
80% of investors have better awareness about working of Mutual Funds and 20% are totally
ignorant about Mutual Funds
Question 4.7 : You have invested you money through which channels
Option
Banks
Stock brokers
Directly
Others
No. of Respondents
20
70
10
-
47
percentage
20%
70%
10%
-
Interpretation:
It is observed that 70% of respondents invested through stock brokers, 20% through banks
and 10% invested directly.
Question 4.8 : In which kind of Mutual Fund companies do you like to invest?
Option
Public
Private
No. of Respondents
70
30
48
percentage
70%
30%
Interpretation:
Most of the respondents are invested in Public Limited Mutual Funds and 30% invested in
private sector.
49
No. of Respondents
60
20
15
5
percentage
60%
20%
15%
5%
Interpretation:
From the above analysis it is observed that 60% invested in open ended scheme, 20% on
close ended scheme and 15% equity growth and 5% on income schemes.
No. of Respondents
20
55
15
10
-
50
percentage
20%
55%
15%
10%
-
Interpretation:
Most of the investors invested to debt oriented schemes because of they are offering tax
benefit.
No. of Respondents
percentage
Higher returns
50
50%
capital 20
20%
gains
Tax benefits
15
15%
15
15%
Long
term
51
Interpretation:
From the analysis it is observed that 50% of investors are interested to invest in equity
mutual funds because of higher returns, 20% because of long term capitals gains and 15%
because of tax benefit.
Question 4.12 : Which feature of the Mutual Fund attracts you most?
Option
Diversification
Better return and safety
Relation in risk transaction
No. of Respondents
5
30
10
percentage
5%
30%
10%
cost
Regular income
Tax benefit
55
-
55%
-
52
Interpretation:
Regular income attract most of the investors to invest in mutual funds, 30% of investors
attract because of better returns and safety.
53
No. of Respondents
45
5
15
15
0
20
0
percentage
45%
5%
15%
15%
20%
-
Interpretation:
From the analysis it is observed that 45% of investors prefer for SBI mutual funds, 20% for
ICICT, 15% each for Reliance and HDFC and 5% for UTI.
Question 4.14 : When you invest in Mutual Fund which mode you will prefer
Option
One time investment
Systematic
investment plan
54
No. of Respondents
45
55
percentage
45%
55%
Interpretation:
From the analysis it is observed that 55% investors are plan to systematic investment and
45% plans for one time investment.
No.
Respondents
15
30
55
-
55
of percentage
15%
30%
55%
-
--
Interpretation:
It is observed that most of the respondents showed interest on banking sector, 30% on real
estate and 15% on oil and petroleum.
Question 4.16 : Do you know that Mutual Funds offer steaded returns?
Option
Yes
No
Not sure
No. of Respondents
75
25
-
56
percentage
75%
25%
-
Interpretation:
From the analysis it is observed that most of investors invested in mutual funds because they
are offering steady returns.
Question4.17 :Do you know that you can get tax advantage by investing in the Mutual
Funds
Option
Yes
No
Not sure
No. of Respondents
60
30
10
57
percentage
60%
30%
10%
Interpretation:From the analysis it is observed that nearly 60% of investors chosen mutual fund as
investment option because of tax benefit.
.
No.
Bank
Distributor
Agent
On your own
Respondents
60
30
10
-
58
of percentage
60%
30%
10%
-s
Interpretation
Most of investors depended on banks as external advisors, 30% on distributers and 10% on
agents as external advisors.
No. of Respondents
20
60
5
schemes
In- efficient investment 15
advisors
59
percentage
20%
60%
5%
15%
Interpretation:
Most of investors depended on banks as external advisors, 30% on distributers and 10% on
agents as external advisors.
Question 4.20 :If Mutual Fund offer you steady returns, tax benefits, liquidity,
diversification of portfolio, lesser risk would you consider it as an investment option in
future
Option
Yes
No
No. of Respondents
90
10
60
percentage
90%
10%
Interpretation:
It is observed that if mutual funds offer steady returns, tax benefit, liquidity,
diversification of portfolio, lesser risk, 90% of respondents are interested to invest in mutual
funds
CHAPTER-5
FINDINGS
.From the above analysis it is observed that 50% of the respondents are at the age of
25 40, 30% of the respondents are at the age below 25, 20% of the respondents are
at the age above 40.
61
From the above analysis it is observed that 80% of the respondents came to know
about Mutual Funds through friends, 15% through Stock Brokers, 5% through
advertisements.
It is observed that most of the investors have partial knowledge about
Mutual
Funds. Only 80% of investors have better awareness about working of Mutual Funds
and 20% are totally ignorant about Mutual Funds
It is observed that 70% of respondents invested through stock brokers, 20% through
banks and 10% invested directly.
Most of the respondents are invested in Public Limited Mutual Funds and 30%
invested in private sector.From the above analysis it is observed that 60% invested in
open ended scheme, 20% on close ended scheme and 15% equity growth and 5% on
income schemes.
Most of the investors invested to debt oriented schemes because of They are offering
tax benefit.
62
From the analysis it is observed that 50% of investors are interested to invest in
equity mutual funds because of higher returns, 20% because of long term capitals
gains and 15% because of tax benefit.
30% of
mutual
funds, 20% for ICICT, 15% each for Reliance and HDFC and 5% for UTI.
. From the analysis it is observed that 55% investors are plan to systematic
investment and 45% plans for one time investment.
.It is observed that most of the respondents showed interest on banking sector, 30%
on real estate and 15% on oil and petroleum.
.From the analysis it is observed that most of investors invested in mutual funds
because they are offering steady returns.
.From the analysis it is observed that nearly 60% of investors chosen mutual fund as
investment option because of tax benefit.
Most of investors depended on banks as external advisors, 30% on distributers and
10% on agents as external advisors.
60% of the respondents are not invested on mutual funds because lack of knowledge,
20% because of better past experience, 15% because of inefficient investment
advisors.
It is observed that if mutual funds offer steady returns, tax benefit, liquidity,
diversification of portfolio, lesser risk, 90% of respondents are interested to invest in
mutual funds.
SUGGESTIONS
From the analysis it is found that 20% of the employees are at age group 40. So here it is
suggested that lot of awareness has to be created to attract this age group.
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Only 8% of respondents i.e., income above 3 lakhs are invested in mutual funds so here
attention has to be given by the AMC and advisor to attract this group by offering risk
less and regular return schemes.
Stock brokers and AMCs need to take more initiation in bringing the investors into their
services by providing quality and better services and advises to the investors.
Private mutual fund companies need to take lot of promotional activities and offer more
and more diversified schemes to attract more investors.
Give full awareness about mutual fund to investors before the industry.
It is
To suggest the investor to invest in strategic investment to gain more profit they one time
investment .
CONCLUSION
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65
Please answer the questions and tick at the place that matches your
opinion
1. Name __________________________________________
2. Age
a. Below 25
3. Occupation
a. Student
d. House holder
4. Income
b. 25 to 40
c. Above 40
b. Employee c. Businessman
e. Others.
[
]
a. Less than 1 lakh b. 1 lakh to 1.50 lakhs
c. 1.50 lakhs to 3 lakhs
d. Above 3 lakhs.
5. What kind of investment do you prefer
[
a. Shares and bonds
b. Bank deposits
c. Insurance
d. Mutual funds
e. post office savings f. real estates
g. gold and silver
6. Have you ever invested your money in mutual fund (if yes)
[
a. Yesb. No
A. Where do you find yourself as Mutual Fund investors
[
a. Totally ignorant
b. Partially knowledge of mutual fund
c. Aware only of any specific scheme in which your invested
d. Fully aware
7. How do you come to know about mutual fund
[
a. Friends
b. Stock brokers
c. Advertisement
d. Banks .
]
]
e. Others.
b. Stock Brokers
c. Directly
d. Others.
9.
b. Private
c. Tax benefits
b. Liquidity
d. Less risk
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[
c. Tax benefits
d. Regular income
e. Tax benefit.
b. UTI c. Reliance
d. HDFC e. Kotak
g. JM finance
15. When you invest in Mutual Fund which mode you will prefer
[
]
a. One time investment b. Systematic investment plan
16. Which area do you prefer most to invest?
[
]
a. Oil and Petroleum
b. Real estate
c.
Banking
d. Power
e.
Other specify................................................
17. Do you know that Mutual funds offer studied returns?
a. Yes
b. No
c. Not sure
18. Do you know that you can get tax advantage by investing in the mutual funds
a. Yes
b. No
c. Not sure
c. Agent
d. On your own
b. Lack of knowledge
21. If Mutual Fund offer you Steady Returns, Tax Benefits, Liquidity, Diversification of
Portfolio, Lesser Risk would you consider it as an investment option in future.
a. Yes
b. No
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BIBLIOGRAPHY
http://www Businessweek.com
http://www.tradingeconomics.com/india/inflation-cpi
http://www.commodityonline.com
http://www.moneycontrol.com
http://www.yahoo.finance.com
http://www.nseindia.com
Security Analysis and Portfolio management-Pandian
NSE Capital Market Module.
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