Chapter - 1: "A Study On Trading Behaviour of Investors at Uti Mutual Fund Schemes in Tumkur City"

“A STUDY ON TRADING BEHAVIOUR OF INVESTORS AT UTI MUTUAL FUND SCHEMES IN
TUMKUR CITY”
CHAPTER – 1
INTRODUCTION
1.1 Introduction
The success story of any economy can only be scripted on the basis of sound
financial system of the country. Economic reform process of 1991 had a great impact
on the financial system of the country leading to the overall development of the Indian
economy. Today, India’s financial system is considered to be sound and stable as
compared to many other Asian countries where the financial market is facing many
crises. During last one decade or so, role of Indian mutual funds industry as a significant
financial service in financial market has really been noteworthy. In fact, Mutual funds
have emerged as an important segment of financial market of India, especially as a
result of the initiatives taken by the Govt.of India for resolving problems relating to
UTI’s US-64 and to liberalize tax liabilities on the incomes earned by the mutual funds.
They now play a very significant role in channelizing the saving of millions of
individuals into the investment in equity and debt instruments. This research aims at
making a critical study of the role performed by mutual funds as a financial service in
Indian financial market and the investors’ inclination towards the mutual funds.
1.2 Introduction Research
A systematic search for an answer to a question or a solution to a problem is

called research.
1.3 Meaning of Research
Research simply means a search for facts answer to questions & solutions to
problems. It is a purposive investigation. It is “organized inquiry”. It sees to find
explanations to unexplained phenomenon, to clarify the doubtful propositions and to
correct the misconceived facts.
Dept. of studies and research in business administration in Tumkur university. Tumkur Page 1
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1.4 Introduction to Research Design
A research design is the blue print specifying every stage of action during
research. It is the arrangement of condition for collection and analysis of data in a
manner that aims to continue relevance to the research purpose with economy in
procedure. A research design is an average pattern of frame work of project that
stipulates what information is to be collected from which source and by method field
work is to be carried out to collect primary data. The question was essentially structured
in nature and includes multiple choice and some open-ended question.
1.5 Meaning of Research Design
A research design is a logical and systematic plan prepared for directing a research
study. If specifies the objectives of the study, the methodology and techniques to be
adopted for achieving the objectives. It constitutes the blue print for the collation,
measurement and analysis of data.
It is the plan structure and strategy of investigation conceived to obtain answer to

research question. The plan is the overall schemes are program of research.
1.6 Title of The Study
The title of the project study is “A STUDY ON TRADING BEHAVIOUR OF

INVESTORS AT UTI MUTUAL FUND SCHEMES IN TUMKUR CITY”
1.7 Statement of the problem
To understand the perception and behaviour of investors and potential investors

this study has been conducted. In addition, attitude of investors towards UTI mutual
fund schemes has also been considered. Investors are suffering lots of problems in
trading fallow of the UTI mutual fund. In this problem, they are recent trends in stock
market, various stock market problems, challenges of investors.
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1.8 Scope of The Study
The research study undertaken does not probe too much about whether the
respondents have a very fine insight into mutual funds. The research only a general
study related to the trading behaviour of investors towards UTI mutual funds. The
research reveals result regarding the trading behaviour of investors about UTI mutual
funds and the term helps the organisation to identify the behaviour of investors and to
improve the marketing of mutual fund. The study will help the concern to work on the
areas of importance for further planning.
The study has been done with a motive to change the attitude of the investors and helps
them gain more knowledge on their investment.
The study was conducted at various investor in Tumkur city only.
1.9 Need of the study
The need of the study arises because of the reason that a trainee must understand
the company, its achievements and tasks, products and services and to collect
information about its competitors.
But the major focus was on making a customer profile for UTI mutual fund and study
the position of UTI in the market as well as among its competitors. In addition, investors
were to be made aware about various products and services offered by UTI and
checking the satisfaction level of present customers.
1.10 Objectives of the study
● To create awareness about the products offered by UTI mutual fund schemes in
Tumkur.
● To know about the investment preference or style of investors.
● To know about response of investors towards UTI mutual fund schemes.
● To know about the availability of UTI mutual fund Franchisee.
● To know about the satisfaction level among investors at UTI mutual fund.
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1.11 Research methodology: -
The investors’ problems and needs can be best known from the investors
themselves. My methodology of study therefore relies primarily on in-depth interviews
of investors through structured questionnaires covering a variety of interrelated aspects,
such as the investor’s socio-economic and financial position, including income and
types of investment held, past experiences, future investment intentions, problems
being felt with regard to the investments, etc.
A survey of this kind is a rather difficult exercise, especially because many

investors are reluctant to disclose their personal financial data to outsiders. I have tried
to overcome this problem by informing the respondents that my objective is wholly
focused on promoting the ordinary investors’ interest and strengthening their
protection, and that I am a non-profit body and my research is purely for academic
purpose.
Collecting of data from a large number of geographically dispersed investors is a

stupendous task. The data collected is meaningful, thus its reliability and genuineness
are ensured.
1.11.1 Sources of Data (Primary & Secondary)
In this project work primary and secondary data sources of data has been used.
Primary data:
Primary data is collected through observation, or through direct

communication or doing experiments. under this, Survey method has been used. For
this report primary data was collected by personal interview with investors and potential
investors in different areas of Tumkur.
Primary data for this research is collected from,
⮚ The officials of the above mentioned Financial Institution.
⮚ The survey is conducted on the investors in TUMKUR city.
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⮚ A detailed market research is conducted on the investors in TUMKUR after designing

a comprehensive questionnaire.
⮚ By mall intercepting investors in financial institutions.
⮚ By personally interviewing the investors.
Secondary data:
Secondary data refers to existing primary data that was collected by someone
else or for a purpose other than the current one. It means already available through
books, journals, magazines, newspaper, websites.
Data has been collected through various websites the list of sources has been given in
the end of report.
Secondary data for this research is collected from different sources like
1. Business magazines –
● Business India.
● Mutual Fund Insight.
● Investor.
● Capital Market Chip.
● Business Today.
● Outlook Money.
● Dalaal Street.
● Value Research
2. Business News papers
● Economic Times
● Business Line
● Business Standard
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1.11.2 Research Method or type of study
The Research method used is descriptive research
Descriptive research, also known as statistical research, describes data and

characteristics about the population or phenomenon being studied. Descriptive research
answers the questions who, what, where, when and how.
In the present Research I have collected data through Survey of 50 respondents
1.11.3 Sampling plan
1.11.3.1 Sample unit
The sampling units are various areas of Tumkur which have been approached to
collect data from different people
1.11.3.2 Sampling method
Sampling method used in this research is simple random sampling which is also
known as probability sampling. under this sampling design every item of universe has
an equal chance of inclusion in sample. It is say to a lottery method.
1.11.3.3 Sample size
The size of the sample was restricted to 50, as to just get a quick analysis
1.11.4 Contact Method
Personal interview is used as a method of contacting people.
It is a market research technique for gathering information through face-to-face contact

vital individuals. Personal interviews take place in a variety of settings-in homes, at
shopping malls, in a business office. This type of research is relatively costly, because
it requires a staff of interviewers, but it provides the best opportunity to obtain
information through probing for clearer explanations. It is the best technique to use
early in the research process when the researcher is not yet sure which questions need
to be asked, because and better questions can come out of the dialogue.
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1.11.5 Data collection method
Research Instrument used in this research was Questionnaire.
A questionnaire is a formalized set of questions for eliciting information. It is one of

the most common instruments used for primary data collection.
The questionnaire can be administered in various ways. It can be administered by means

of a personal interviewer as well as by the telephone, Mail. Here, the questionnaire was
administered by a personal interview
1.12 Tools and Techniques used for analysing the data: -
For the proper analysis of data, Quantitative Technique such as percentage

method was used. In addition, Microsoft excel was also used for preparing charts for
deducing inferences.
The following are the tools and techniques used in the research for analysing the
primary data collected through sample survey method for getting realistic results.
1. Tables bar diagram and structures are used in explanations to bring out the point
more clearly.
2. Tabulation of the primary data was done. On the basis of these tables, trends
have come out more visibly.
3. Statistical techniques used in the present study include:
a) Percentage Method: to show the trend of the variable.
b) Chi-square: to test the independence of the attributes.
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1.13 Limitation of study
Although full efforts have been made in the study but the following limitations should
be kept in the mind before making any conclusion:
● Sample size was small in comparison of entire population (50)

● The respondents may be biased or influenced by outside factors.
● The time constraint was one of the major problems.
● Tre respondents were limited and cannot be treated as the whole population.
● The accuracy of indications given by the respondents may not be consider adequate.
● The research has been conducted according to present market conditions of recession,
so the finding and inferences may not hold for every business cycle.
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CHAPTER – 2
LITERATURE REVIEW
Introduction:
Review of past literature reveals that risk perception of investors is influenced

by behavioural factors like over confidence, regret aversion, expectations. Trading
strategy is changed by investors after experiencing. Investors consider trading history
to adjust stock trading to improve performance. to know if the mutual fund investment
is made genuinely. Various studies pertaining to these various aspects of trading
behaviour of investors have been listed out below:
1) Ramakrishna Reddy & Ch. Krishnudu:
on investment behaviour of investors in their study states that the investment

culture among the people of a country is an essential prerequisite for capital formation
and the faster growth of an economy. Investment culture refers to the attitudes,
perceptions, and willingness of the individuals and institutions in placing their savings
in various financial assets, more popularly known as securities. A study on the
investors’ perceptions and preferences, thus, assumes a greater significance in the
formulation of policies for the development and regulation of security markets in
general and protection and promotion of small and house-hold investors.
2) Rajarajan Vanjeko:
Finance India on Indian investors’ investment characteristics showed that the

use of these characteristics for a better understanding of individual investors and their
financial product needs. It also shows that investor’s future preferences. The study
reveals the increasing popularity of equity as an investment option among individual
investors.
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3) Sushant Nagpal and B. S. Bodla:
on impact of investors’ lifestyle on their investment pattern: an empirical

study states that the modern investor is a mature and adequately groomed person.
Occasions of blind investments are scarce, as most investors are found to be using some
source and reference groups for taking decisions.
4) Ramprasath S and Dr. B. Karthikeyan, December 2017:
on individual investors’ behaviour towards select investments, states that the

majority of the investors are giving much importance for the factor “safety”. Similarly,
investment avenues such as Bank deposits, LIC polices and Bullion has been preferred
by the individual investors. Similarly, the majority of the investors are periodically
evaluating the performance of their investment avenues.
5) A Sarangapani and T. Mamatha:
on investment pattern of Indian investors assessed in their research,

investment pattern of sample investors indicates that the majority investors prefer to
invest in equity shares than in other instruments. It is also revealed in analysis of the
portfolio of investors that 72% investors prefer to invest in different types of
instruments and the rest only in equity shares. The portfolio size of convertible
debentures is comparatively more than non-convertible debentures in Tumkur city.
6) Dr. Ganapathi & Ms. S. Anbu Malar
on investor attitudes towards post office deposit schemes assessed in their

research, the various small savings schemes are mainly meant to help the small
investors and those who are I n high tax brackets. Proper advertisement must be made
for post office savings schemes. So, that even a layman comes to know about these
schemes and deposits can be increased. Investing our amount in post office deposits
schemes ensures high rate of return and it provides safety and security for the amount
invested.
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7) Suresh Chandra Bihari & Apoorv Raj on:
investment behaviour of the customers towards mutual fund and other

products (Jan – June 2017) assessed in their research, commercial sources are attracting
and helping more consumers to take decision. At the same time, personal sources are
also adding value to their decision-making process. Magazines, newspapers, film,
advertisement, display, demonstration, exhibition and colleagues play a vital role in
searching meaningful information.
8) M.R. Shollapur and A.B. Kuchanur:
a study on individual investors in selected investment avenues assessed in their

research investors strongly agree on the perceptions in the case of bank deposits (80%)
life insurance policies (65%). on the other hand, (54%) disagree on in the case of
corporate securities. The perceptual gaps analysis presents certain revelations –
corporate securities are less preferred; government securities do not provide regular and
steady income; investment in insurance policies appreciate in values; bank deposits
require more transaction costs etc. there is a need to help investors develop a right
perspective of the investment schemes and their attributes.
9) By sunnykutty Thomas and rajesh M.N:
on Investment pattern of rural Investors in Kerala under (NEP). assessed in their

study the vast and drastic changes are to be found in investor’s behaviours and motives
of investors under present economic scenario. In that situation, rural investors in Kerala
also adopted a new investment pattern under the present economic crisis.
10) Sunil kumari:
on investment attitude of rural investors (august 2016-july 2017) states that all
of the rural investors consider the risk and return on investment and most of them are
also dependent on financial advisor’s opinion because of lacking the depth knowledge
of market. But generalization of the study is subject to its limitations like unwillingness
of respondents, limited period, lack of literacy of rural investors etc. it is concluded that
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psychological theory planned behaviour reflects in rural people’s investment decisions

along with a finance theory is concepts i.e. risk and return equilibrium/ trade off.
11) Ravinder Kumar and Abhijeet Chandra:
on selection behaviour of individual investors; Evidence from mutual fund

investment assessed in their research, performance ranking was rated the most preferred
source of information for individual mutual fund investors followed by
recommendations by experts. Other sources of information such as print media like
business magazines, and newspapers, electronic media like business channels and
internet, friends and family recommendations, and seminars were respectively valued
by individual mutual fund investors. As far as selection criteria is concerned, past
performance of the fund was highly rated followed by investment pattern, management
fees charged by the fund manager’s reputation.
12) R. Kasilingam and G. Jayabal:
on segmentation of investors based on choice criteria assessed in their research

small saving schemes are designed with good features so as to make it suitable to the
needs of the people; but the facilities offered a d services provided are not attractive
enough to provide convenience to investors. To attract the large resources available in
the rural places, financial services should be taken into doorstep of those people. As
stated earlier most Indian investors want risk protection to their capital. So, the flow of
household savings to the capital market will not increase as there is a high volatility in
the market.
13) Dr. Kapil Sharma:
on a comparison of Investment risk perception between lay investors and

experts in Indian market (May-Aug 2017) assessed in their research, experts and non-
experts have different perceptions and understandings about risk communication
programmes designed to re-educate consumers. However, this approach is likely to be
successful in an environment where individual consumers distrust regulations and other
experts. The ultimate objective of risk communication in personal financial services
should be therefore be to establish a procedure whereby lay investors become involved
in the two-way process of the management and communication or risk.
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14) A. Charles and R. Kasilingam:
on frame dependence and its influence on investment decisions (July-Dec 2016)

assessed in their research, framing is a type of form and substantive. It reflects the
behaviour of investors. Cognition and emotion influence the frames development.
Lacks cognition and emotional instability make the investors to be biased on their
decision making. Finding of this study suggest that investors use their frames to make
decisions. These are classified as positive, negative and neutral frames. Most of the
investors are displaying the behaviour of positive frame dependence model suggest that
investors’ frames become matured from negative to positive over a period. Negative –
frame dependence investors prefer high return by taking non-calculative risk. Positive
– frame dependence investors prefer high return by taking calculated risks. Neutral
frame dependence investors associate with moderate risk-moderate return. Parizad
dungore (2016) in his study states that women were willing to take more risk than men,
with age, the risk-taking ability declined; risk aversion level decreased as education
level increased; and its income level increased, the investors risk aversion decreased.
15) R. Shanmugam & K. Ramya:
in their research analysed that, personality traits have greater impact on one’s
behaviour. This research revealed that internals have high correlation with investment
knowledge and successful investment behaviour. Also, it was found that investment
knowledge of internals is higher than that of individuals with external locus of control.
It was further found out that there is significant difference in investment behaviour
amongst individuals with high and low investment knowledge. Hence the study clearly
shows that internals with high investment knowledge show successful investment
behaviour.
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16) Michale Dowling and Brian Luceyin:
state seven common mistakes made by investors which are Trading too much,
investing based on image, Following the crowd, not diversifying, knowing best,
following share price trends, and Ignoring the lessons of history.
17) Petko S. Kalev, Anh H. Nguyen, Natalie Y:
state that foreign investors tend to choose stocks with international profiles
and transparent information. They outperform the local investors with regards to global
sock. Excluding the global stock, local investors earn better. In the medium and long
term, local investors have stronger performance.
18) Vanita Tripathi:
examines the perceptions, preferences and various investment strategies in

Indian stock market reveal that investors use both fundamental as well as technical
analysis while investing in Indian stock market. Size of the firm, market equity, price
earnings ratio, and leverage etc influences stock prices. The investment strategies in
Indian stock market are buying stocks for which some good news is expected, buying
stocks which are expected to announce bonus issue, momentum strategy, size strategy
and following investment behaviour of FIIs (foreign institutional investors).
19) Raluca Bighiu Qawi:
attempts to understand the behaviour of investors and biases and effect of

irrational decisions over market performance due to psychological reasons like
unconscious herding behaviour (as a results of genetic setup), risk taking capacity of
the investor and risk aversion attitude, investor sentiments etc. Factors such as cash
availability and optimism, effect of past performance over future uncertainty, social
responsibility in investment decisions and influence of analysts also influence the
decisions of the investors.
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20) Enrico Maria Cervellati, Pino Fattori, Pierpaolo Pattitoni (may 2017): state
that personnel characteristics influences the investors behaviour. It is also stated that
the number of trading activity is more for men, people who have higher income and
those who use internet for trading. The job type also determines the trading decisions.
Self-employed individuals make more trading transactions.
RESEARCH GAP:
The review of past researches indicates that the factors which mostly
influence the investment decisions of investors are of trading behavioural pattern. These
decisions are mostly affected by psychological biases and are result of past experiences.
Knowledge with regards to stock exchange policies and financial reforms with respect
to various investment avenues has been ignored. Therefore, in order to narrow down
this gap, an attempt has been made to study the impact of in- depth knowledge
pertaining to these investment avenues on investment decisions and the investment
behaviour of investors based on such knowledge. To get a better understanding of the
trading behaviour of investors. to know about the investment avenues, investment
objectives, factors to considering investment decision. investors awareness, perception,
behaviour and satisfaction level of investors after adopting the techniques and
strategies.
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Chapter-3
Theoretical Background
3.1 General introduction about financial sector
The financial sector is in a process of rapid transformation. Reforms are

continuing as part of the overall structural reforms aimed at improving the productivity
and efficiency of the economy. The role of an integrated financial infrastructure is to
stimulate and sustain economic growth.
The US$ 28 billion Indian financial sector has grown at around 15% and has
displayed stability for the last several years, even when other markets in the Asian
region were facing a crisis. This stability was ensured through the resilience that has
been built into the system over time. The financial sector has kept pace with the growing
needs of corporate and other borrowers. Banks, capital market participants and insurers
have developed a wide range of products and services to suit varied customer
requirements. The Reserve Bank of India (RBI) has successfully introduced a regime
where interest rates are more in line with market forces.
Financial institutions have combated the reduction in interest rates and

pressure on their margins by constantly innovating and targeting attractive consumer
segments. Banks and trade financiers have also played an important role in promoting
foreign trade of the country.
3.2 Capital Market
The Indian capital markets have witnessed a transformation over the last
decade. India is now placed among the mature markets of the world. Key progressive
initiatives in recent years include:
• The depository and share dematerialisation systems that have enhanced the efficiency
of the transaction cycle.
• Replacing the flexible, but often exploited, forward trading mechanism with rolling
settlement, to bring about transparency.
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• The infotech-driven National Stock Exchange (NSE) with a national presence (for the
benefits of investors across locations) and other initiatives to enhance the quality of
financial disclosures.
• Corporatization of stock exchanges.
• The Securities and Exchange Board of India (SEBI) has effectively been functioning as
an independent regulator with statutory powers.
• Indian capital markets have rewarded Foreign Institutional Investors (FIIs) with
attractive valuations and increasing returns.
• The Mumbai Stock Exchange continues to be the premier exchange in the country with
an increase in market capitalisation from US$ 40 billion in 1990-1991 to US$ 203
billion in 1999-2000. The stock exchange has about 6,000 listed companies and an
average daily volume of about a billion dollars.
• Many new instruments have been introduced in the markets, including index futures,
index options, derivatives and options and futures in select stocks.
3.3 General Introduction About Investment

Investment in share markets are influenced by the analysis and reasoning
which help in predicting the market to some extent. Over the past years a number of
technical and theories for analysis have evolved, these combined with modern
technology guides the investor. The big players in the market, like Foreign Institutional
Investors, Mutual Funds, etc. have the expertise for various analytical tools & make use
of them. The small investors are not in a position to benefit from the market the way
Mutual Funds can do. Generally, a small investor's investments are based on market
sentiments, inside information, through grapevine, tips & intuition. The small investors
depend on brokers and brokerage house for his investments.
They can invest through the Mutual Funds who are more experienced and
expert in this field than a small investor himself. In recent years a large number of
players have entered into his market. The project has been carried out to _have an
overview Of Mutual Fund Industry and to understand investor's perception about
Mutual Funds in the context of their trading preference, explore investor's risk
perception & find out their preference over top Mutual.
Mutual fund is a trust that pools money from a group of investors (sharing
common financial goals) and invest the money thus collected into asset classes that
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match the stated investment objectives of the scheme. Since the stated investment
objectives of a mutual fund scheme generally form on the basis for an investor's
decision to Contribute money to the pool, a mutual fund can not deviate from its stated
objectives at any point of time. Every Mutual Fund is managed by a fund manager, who
using his investment management skills and necessary research works ensures much
better return than what an investor can manage on his own. The capital appreciation and
other incomes earned from these investments are passed on the investors (also known
as unit holders) in proportion of the number of units they own.
3.4 About Mutual Fund

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 appreciation realized is shared by its unit
holders in proportion to 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.
3.5 Mutual fund industry in India

Evolution
The formation of trust of India marked the evolution of the Indian mutual fund
industry in the year 1963. The primary objective at that time was to attract the small
investors and it was made possible through the collective efforts of the government of
India and the reserve bank of India, the history of mutual fund industry in India can be
better understood divided into following phases;
Phase- 1: Establishment and Growth of Unit Trust of India - 1964-87

Unit Trust of India enjoyed complete monopoly when it was established in the
year 1963 by an act of Parliament. UTI was set up by the Reserve Bank of India and it
continued to operate under the regulatory control of the RBI until the two were de-
linked in 1978 and the entire control was transferred in the hands of Industrial
Development Bank of India (IDBI). UTI launched its first scheme in 1964, named as
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unit scheme 1964(US-64), which attracted the largest number of investors in any single
investment scheme over the years.
UTI launched more innovative schemes in 1970s and 80s to suit the needs of
different investors. It launched ULIP in 1971, six more schemes between 1981-84,
Children's Gift Growth Fund and India Fund (India's first offshore fund) in 1986, Master
share (India's first equity diversified scheme) in 1987 and Monthly Income Schemes
(offering assured returns) during 1990s. By the end of 1987, UTI's assets under
management grew ten times to Rs 6700 crores.
Phase-2: Entry of Public Sector Funds - 1987-1993

The Indian mutual fund industry witnessed a number of public sector players entering
the market in the year 1987. In November 1987, SBI Mutual Fund from the State Bank
of India became the first non-UTI mutual fund in India. SBI Mutual Fund was later
followed by Canara bank Mutual Fund, LIC Mutual Fund, Indian Bank Mutual Fund,
Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. By 1993, the
assets under management of the industry increased seven times to Rs 47,004 crores.
However, UTI remained to be the leader with about 80% market share.
Phase-3: emergence of private sector funds-1993-96

The permission given to private sector funds including foreign fund
management companies (most of them entering through joint ventures with Indian
promoters) to enter mutual fund industry in 1993, provided a Wide range of choice to
investors and more competition in the industry. Private funds introduced innovative
products, investment techniques and investor-servicing technology. By 1994-95, about
11 private sector funds had launched their schemes.
Phase-4: growth and SEBI regulation-1996-2004

The mutual fund industry witnessed robust growth and stricter regulation from
the SEBI after the year 1996. The mobilization of funds and the number of players
operating in the industry reached new heights as investors started showing more interest
in mutual funds.
Investor's interests were safeguarded by SEBI and the government offered tax
benefits to the investors in order to encourage them. SEBI (mutual fund) regulations,
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1996 were introduced by SEBI that set uniform standards for all mutual funds in India.
The union budget in 1999 exempted all dividend incomes in the hands of investor from
income tax. Various awareness programmes were launched during this phase, both by
SEBI and AMFI, with an objective to educate investors and make them informed about
the mutual fund industry.
In February 2003, the UTI act was repealed and UTI was stripped of its special
legal status as a trust formed by an act of parliament. The primary objective behind this
was to bring all mutual fund players on the same level. UTI was re-organised in to two
parts: 1. the specified undertaking. 2. The UTI mutual fund
Phase- 5: Growth and Consolidation -2004 Onwards;

The industry has also witnessed several mergers and acquisitions recently,
examples of which are acquisition of schemes of Alliance Mutual Fund by Birla Sun
Life, Sun F&C Mutual Fund and PNB Mutual Fund by Principal Mutual Fund.
Simultaneously, more international mutual fund players have entered India like
Fidelity, Franklin Templeton Mutual Fund etc
3.6 Types of mutual funds schemes

Mutual fund schemes exist to cater to the needs such as financial position, risk
tolerance and return expectations etc... The table below gives an overview in to the
existing types of schemes in the industry.
By structure
⮚ Open-ended schemes
⮚ Close-ended schemes
⮚ Interval schemes
By investment
⮚ Growth schemes
⮚ Income schemes
⮚ Balanced schemes
⮚ Money market schemes
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Other schemes
⮚ Tax schemes
⮚ Special schemes
⮚ Index schemes
⮚ Sector specific schemes
By structure
⮚ Open-ended scheme
An open-ended fund or scheme is one that is available for subscription and
repurchase on a continuous basis. These schemes do not have a fixed maturity period.
Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices
which are declared on a daily basis. The key feature of open-ended schemes is liquidity.
⮚ Close-ended scheme
A Close-ended scheme has a stipulated maturity period, e.g. 5-7 years. The fund
is Open for subscription only during a specified period at the time of launch of the
scheme. Investors can invest in the scheme at the time of the initial public issue and
thereafter they can buy or sell the units of the scheme on the stock exchanges where the
units are listed. In order to provide an exit route to the investors, some close ended funds
given an option of selling back the units to the mutual fund through Periodic repurchase
at NAV related prices. SEBI regulations stipulate that at least one of the two exit routes
are provided to the investor i.e. either repurchase facility or through listing on stock
exchanges. These mutual funds schemes disclose NAV generally on weekly basis.
⮚ Interval scheme
Interval scheme is the 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.
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By investment objective
⮚ Growth scheme
Growth scheme is also known as equity scheme. The aim of this scheme is to
provide capital appreciation over a medium to long term. This scheme normally invests
a major part of their fund in equities and is willing to bear short-term decline in value
for possible future appreciation.
⮚ Income scheme
Income scheme is also known as debt scheme. The aim of this scheme is to
provide regular and steady income to investors. This scheme generally invests in fixed
income securities such as bonds and corporate debentures.
⮚ Balanced scheme
Balanced scheme aims to provide both growth and income by periodically
distributing a part of the income and capital gains they earn. This scheme invests in
both shares and fixed income securities, in the proportion indicated in their offer
documents (normally 50:50).
⮚ Money market instruments
Money market scheme aims to provide easy liquidity, preservation of capital
and moderate income. This scheme generally invests in safer, short-term instruments,
such as treasury bills, certificate deposits, commercial papers. etc...
Other schemes
⮚ Tax savings scheme
It is a scheme which offers tax rebates to the investors under tax laws prescribed
from time to time. Under sec.88 of the income tax act 1960, contributions made to any
equity linked savings scheme are eligible for rebate.
⮚ Index scheme
Index scheme attempt to replicate the performance of a particular index such as
the BSE Sensex or the NSE 50. The portfolio of this scheme will consist of only those
stocks that constitute the index. The percentage of each stock to the total holding will
be identical to the stocks index weight age. And hence, the returns from such scheme
would be more or less equivalent to those of the index.
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⮚ Sector specific scheme

This is the scheme which invests in the securities of only those sectors or
industries as Specified in the offer documents. E.g. pharmaceuticals, software
petroleum stocks. Etc... The returns in this scheme are dependent on the performance
of the respective sectors/industries. While this scheme provides higher returns, they are
riskier to diversified schemes. Investors need to keep watch on the Performance of those
sectors and must exit at an appropriate time.
3.7 SEBI Regulation on mutual funds

The SEBI (Mutual Funds) Regulations, 1996. The revised regulations embodied
far reaching changes in the regulation and functioning of mutual funds. The revised
regulations provide for
• enhanced level of investor protection
• empowerment of investors
• Stringent disclosure norms in the offer documents, so that investors are better informed,
better advised, better aware of risks and rewards.
• standardization of norms for valuation of assets, computation of Net Asset Values

(NAVs) of schemes of mutual funds and accounting standards and policies.
• Complete freedom to asset management companies to structure schemes in accordance

with investor preferences.
• Removal of quantitative restrictions on investment by mutual funds and replacement by

prudential supervision.
• Replacement of vetting of offer documents by filing.
• Guaranteed return schemes by mutual funds permitted provided returns including

capital were guaranteed better governance of mutual funds through higher
responsibilities and empowerment of trustees as front-line regulators of mutual funds.
• Closer scrutiny through off site and onsite inspections.
• Code of ethics for asset management companies.
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The impact of the new regulations was immediately felt. Asset management
companies framed several schemes which made use of the freedom provided to them
by the new regulations. Not only did the number of schemes filed with SEBI increase
significantly in a short period of time, but also there was greater variety in the
investment products offered. There was also a significant improvement in disclosures
in the offer documents.
The new regulations have brought into greater focus the responsibilities of trustees
of mutual funds who are uniquely positioned to promote the interests of the unit holders
and to ensure that mutual funds are managed responsibly and ethically. The trustees act
independently to uphold the public trust. In this process, trustees act as
the first level regulators and are critical in helping to ensure the profitability and
progress of the mutual funds. To assist trustees in their new role, and to set out the
manner in which they could best perform this role, SEBI appointed a committee under
the chairmanship of Shri P K Raul, former Cabinet Secretary and Ambassador to the
United States.
SEBI is using its interface with AMFI to assess the impact of the new regulations
on the working of mutual funds and to examine further ways of improving the
performance of mutual funds so as to restore Investor confidence in them. SEBI also
continued working with AMFI so that it becomes a more effective body representing
the mutual fund industry and embarks on a campaign to sharpen the industry's focus on
the consumer.
3.8 Advantages of Mutual Fund

⮚ Portfolio diversification
Mutual Funds invest in a well-diversified portfolio of securities which enables
investor to hold a diversified investment portfolio (whether the amount of investment
is big or small).
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⮚ Professional Management
Fund manager undergoes through various research works and has better
investment management skills which ensure higher returns to the investor than what he
can manage on his own.
⮚ Flexibility
Investors can switch their holdings from a debt scheme to an equity scheme and
vice-versa. Option of systematic (at regular intervals) investment and withdrawal is also
offered to the investors in most open-end schemes.
⮚ Safety
Mutual Fund industry is part of a well-regulated investment environment where
the interests of the investors are protected by the regulator. All funds are registered.
⮚ Tax benefits
Mutual funds provide a benefit for tax exemption to certain schemes. This might
have beneficial to the investors to avoid the taxes.
⮚ Variety
The Investors can enjoy variety of types of mutual funds/schemes of UTI. The is
in the type of differences in benefits of the schemes. One is having the benefit of tax
savings and other is having the benefit of insurance. etc.... so the Investors have an
enough variety choice to invest on mutual funds.
3.9 Disadvantages of mutual funds

⮚ Cost control not in the hands of investors
Investor has to pay investment management fees and fund distribution costs as a
percentage of the value of his investments (as long as he holds the units), irrespective
of the performance of the fund.
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⮚ No Customized Portfolios
The portfolio of securities in which a fund invests is a decision taken by the fund
manager. Investors have no right to interfere in the decision-making process of a fund
manager, which some investors find as a constraint in achieving their financial
objectives.
⮚ Difficulty in Selecting a Suitable Fund Scheme

Many investors find it difficult to select one option from the plethora of
funds/schemes/plans available. For this, they may have to take advice from financial
planners in order to invest in the right fund to achieve their objectives.
3.10 Dematerialized Trading

Indian investor community has undergone see changes in the past few years.
India now has a very large investor population and ever-increasing volumes of trades.
However, this continuous growth in activities has also increased problems associated
with stock trading. Most of these problems arise due to the intrinsic nature of paper-
based trading and settlement, like theft or loss of share certificates. This system requires
handling of huge volumes of paper leading to increased costs and inefficiencies. Risk
exposure of the investor due to this trading in paper.
Some of these risks are:
⮚ Delay in transfer of shares.

⮚ Possibility of forgery on various documents leading to bad deliveries, legal disputes etc.
⮚ Possibility of theft of share certificates in the market.
⮚ Multiplication or loss of share certificates in transit.
⮚ Prevalence of fake certificates in the market
The physical form of holding and trading in securities also acts as a bottleneck for
broking community in capital market operations.
The introduction of NSE and BOLT has increased the reach of capital market
manifolds. The increase in number of investors participating in the capital market has
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increased the possibility of being hit by a bad delivery. The cost and time spent by the
brokers for rectification of these bad deliveries tends to be higher with the geographical
spread of the clients. The increase in trade volumes lead to exponential rise in the back-
office operations thus limiting the growth potential of the broking members. The
inconvenience faced by investors (in areas that are far flung and away from the main
metros) in settlement of trade also limits the opportunity for such investors, especially
in participating in auction trading. This has the investors as well as broker wary of
Indian capital market. In this scenario, dematerialized trading is certainly a welcome
move.
3.11 What is Dematerialization?
Dematerialization or "Demat" is a process whereby your securities like shares,

debentures etc. these are converted into electronic data and stored in computers by a
Depository. Securities registered in your name are surrendered to depository participant
(DP) and these are sent to the respective companies who ml cancel them after
"Dematerialization" and credit your depository account with the DP. The securities on
Dematerialization appear as balances in your depository account. These balances are
transferable like physical shares. If later, you wish to have these "Demat- securities
converted back into paper certificates; the Depository helps you to do this.
Dematerialization is the process of converting the securities held in physical form

(certificates) to an equivalent number of securities in electronic form and crediting the
same to the investor's Demat account. Dematerialized securities do not have any
certificate numbers or distinctive numbers and are dealt only in quantity i.e.; the
securities are fungible.
Dematerialization of your holdings is not mandatory. You can hold your secure Demat
form or in physical form. You can also keep part of your holdings (in the same script)
in Demat form & part in physical form. However, securities specified by SEB' can be
delivered only in Demat form in the stock exchanges connected to NSDL and / or
CDSL.
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3.12 Trading
Trading in dematerialized securities is quite like trading in physical securities.
The major difference is that at the time of settlement, instead of delivery/ receipt of
securities in the physical form, it is done through account transfer.
An investor cannot trade in dematerialized securities through his DP Trading at

the stock exchanges can be done only through a registered trading member (broker) of
the stock exchange irrespective of whether the securities are held in physical or
dematerialized form. DPs role will only be to facilitate settlement of trade in the
dematerialized form, by transferring securities from and to the account of the investor,
for selling and buying respectively.
Trading in dematerialized securities is presently available at NSE, BSE, CSE,

DSE, LSE, MSE, ISE & OTCEI. These exchanges have a segment exclusive for trading
in dematerialized securities and a segment where trades could be settled either in the
physical or in the dematerialized form as per the choice of the delivering client. In
unified (erstwhile - physical) segment securities can be delivered either in the physical
form or in the dematerialized form at the choice of the delivering party.
However, securities that must be mandatorily settled in demat form (both by

institutional investors & all category of investors) cannot be settled in physical form.
Also, for securities that must be mandatorily settled in demat form by all categories of
investors the concept of market lot is eliminated i.e. the tradable lot is one share from
the date they become compulsory.
3.13 Settlement
The settlement of trades in the stock exchanges is undertaken by the clearing
corporation (CC)/ clearing house (CH) of the corresponding stock exchanges. While
the settlement of dematerialized securities is affected through depository, the funds
settlement is affected through the clearing banks. The clearing members directly with
the CC/ CH settle the physical securities.
Exclusive Demat segment follows rolling settlement (T+5) cycle and the unified
(erstwhile - physical) segment follows account period settlement cycle. In case of
rolling settlement cycle, the account period is reduced to one day.
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• In case of settlement of trades done in exclusive Demat segments, the pay-in and pay
out of funds and securities are affected on the same day afternoon and evening (same
day) thus reducing the blockage of funds and limiting exposure to the clearing
corporation.
• Settlement of funds is affected through the clearing banks and depository plays no role
in this.
• Settlement of securities is affected through NSDL depository system.
• Clearing and settlement of the regular market trades is affected through the clearing
members of the clearinghouses of respective stock exchanges. All trading members of
stock exchanges are clearing members of clearing houses. In addition, for settlement of
institutional trades, custodians are also allowed to act as clearing members
• Clearing members of clearinghouse, dealing in dematerialized securities are expected

to open a clearing account with any DP for settling trades in dematerialized securities.
As, in the mixed (unified) segment, there is a possibility for all clearing members to
receive dematerialized securities, they are expected to open clearing accounts.
• If there is any short delivery at the time of pay-in of securities, these short positions are
auctioned in the Demat segment as done in the unified (erstwhile-physical) segment.
For trades executed on Wednesday (TD 1):

• Final/ Net obligation statement download - Friday (T+2nd working day)
• Settlement day (SD 1) i.e. pay in and pay out of funds and securities – next 'Wednesday
(T+5th working day)
• Auction trade day (ATD 1) - next Thursday (T+6th working day)
• Auction settlement day (ASD 1) - Monday (2nd working day from auction day i.e.
T+8th working day) Similarly, for trades executed on Thursday (TD 2):
• Final/ Net obligation statement download - Monday (T+2nd working day)

• Settlement day (SD 2) - next Thursday (T+5th working day)
• Auction trade day (ATD 2) - next Friday (T+6th working day)
• Auction settlement day (ASD 2) - Tuesday (2nd working day from auction day i.e.
T+8th working day).
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CHAPTER – 4
COMPANY PROFILE
4.1 Introduction
Axis Bank was formed as UTI when it was incorporated in 1994 when
Government of India allowed private players in the banking sector. The bank was
sponsored together by the administrator of the specified undertaking of the 'Unit Trust
of India, Life Insurance Corporation of India (LIC) and General Insurance Corporation
ltd. and its subsidiaries namely National insurance company ltd., the New India
Assurance Company, the Oriental Insurance Corporation and United Insurance
Company Ltd. However, the name of UTI was changed because of the disagreement on
terms and conditions of the bank authority over certain stipulations including royalty
charged over the name from UTI AMC. The bank also wanted to have a new name from
its pan-Indian as well as international business perspective. So, from July 30, 2007
onwards the UTI bank was named as Axis Bank.
Axis bank branches and business was set up with a capital of RS, 115crore —
with UTI contribute RS, 100crore.LIC contributing RS, 7.5crore and GIC and its four
Subsidiaries contributing RS 1.5crores, the bank came in operation with its first
registered office at Ahmadabad. Today, axis bank has more than 726 branch offices and
extension counters spread over 341 cities, towns and villages of the country. Presently
the authorised share capital of RS 232.83crores. The axis bank is currently capitalized
with RS282.65crores with a public holding of 57.05% apart from the Pr0moters. The
company net profit of RS, 500.86crores up by 63.24%.
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Axis bank facilities and services:
Axis banks its customers with all kinds of facilities that should be provided by a
modern bank. It deals with personalized as well as commercial banking. It has one of
the largest spread ATM networks in the country.
Corporate facilities:
⮚ Cash credit
⮚ Working capital demand loan
⮚ Export finance
⮚ Short term loan
⮚ Clean bill discounting
⮚ Credit facilities against guarantee or standby letter of credit issued by foreign banks
⮚ Letter of credit
⮚ Bank guarantee
⮚ Solvency certificates
Personal facilities:
⮚ Home loans
⮚ Personal loans
⮚ Car loans
⮚ Zero balance savings accounts
⮚ Mobile banking
⮚ Study loan
⮚ Easy savings account
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4.2 Background and inception of UTI mutual fund
Unit Trust of India was created by the UTI Act passed by the Parliament in
1963. For more than two decades it remained the sole vehicle for investment in the
capital market by the Indian citizens. In mid- 1980s public sector banks were allowed
to open mutual funds. The real vibrancy and competition in the MF industry came with
the setting up of the Regulator SEBI and its laying down the MF Regulations in
1993.UTI maintained its pre-eminent place till 2001, when a massive decline in the
market indices and negative investor sentiments after Ketan Parekh scam created doubts
about the capacity of UTI to meet its obligations to the Investors. This Was further
compounded by two factors; namely, its flagship and largest scheme US 64 was sold
and re-purchased not at intrinsic NAV but at artificial price and its Assured Return
Schemes had promised returns as high as 18% over a period going up to two decades...!!
Fearing a run on the institution and possible impact on the whole market
Government came out with a rescue package and change of management in 2001.
Subsequently, the UTI Act was repealed and the institution was bifurcated into two
parts. UTI Mutual Fund was created as a SEBI registered fund like any other mutual
fund. The assets and liabilities of schemes where Government had to come out with a
bail-out package were taken over directly by the Government in a new entity called
Specified Undertaking of UTI, SUUTI. SUUTI holds over 27% stake Axis Bank. In
order to distance Government from running a mutual fund the ownership was
transferred to four institutions; namely SBI, LIC, BOB and PNB, each owning 25%.
Certain reforms like improving the salary from PSU levels and affecting a VRS were
carried out UTI lost its market dominance rapidly and by end Of 2005, when the new
share-holders actually paid the consideration money to Government its market share
had come down to close to 10%!
A new board was constituted and a new management inducted. Systematic

study of its Problems role and functions was carried out with the help of a reputed
International consultant. Fresh talent was recruited from the private market;
Organizational structure was changed to focus on newly emerging investor and
distributor groups and massive changes in investor services and funds management
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carried out. Once again UTI has emerged as a serious player in the industry. Some Of
the funds have won famous awards, including the Best Infra Fund globally from Lipper.
UTI has been able to benchmark its employee compensation to the best in the market,
has introduced Performance Related pay-outs and ESOPs.
The UTI Asset Management Company has its registered office at: UTI Tower,
GN Block, Bandra — Kurla Complex, Bandra (East), Mumbai - 400 051.1t has over 70
schemes in domestic MF space and has the largest investor base of over 9 million in the
whole industry. It is present in over 450 districts of the country and has 100 branches
called UTI Financial Centre’s or UFCs. About 50% of the total IFAs in the industry
work for UTI in distributing its products! India Posts, PSU Banks and all the large
Private and Foreign Banks have started distributing UTI products. The total average
Assets under Management (AUM) for the month of June 2008 was Rs. 530 billion and
it ranked fourth. In terms of equity AUM it ranked second and in terms of Equity and
Balanced Schemes AUM put together it ranked FIRST in the industry. This measure
indicates its revenue- earning capacity and its financial strength.
Besides running domestic MF Schemes UTI AMC is also a registered portfolio manager
under the SEBI (Portfolio Managers) Regulations. It runs different Portfolios for is FINI
and Institutional clients. It is also running a Sharia Compliant Portfolio for its offshore
clients. UTI tied up with Shinsei Bank of Japan to run a large size India-centric portfolio
for Japanese investors.
For its international operations UTI has set up its 100% subsidiary, UTI
International Limited, registered in Guernsey, Channel Islands. It has branches in
London, Dubai and Bahrain. It has set up a Joint Venture with Shinsei Bank in
Singapore. The JV has got its license and has started its operations.
In the area of alternate assets, UTI has a 100% subsidiary called UTI Ventures at
Bangalore This company runs two successful funds with large international investors
being active participants. UTI has also launched a Private Equity Infrastructure Fund
along with HSH Nord Bank of Germany and Shinsei Bank of Japan.
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4.3 Vision:
"To be the most preferred Mutual Fund."
4.4 Mission:
⮚ The most trusted brand, admired by all stakeholders
⮚ The largest and most efficient money manager with global presence
⮚ The best in class customer service provider
⮚ The most preferred employer
⮚ The most innovative and best wealth creator
⮚ A socially responsible organisation known for best corporate governance
4.5 History:
The formation of unit Trust of India marked the evolution Of the Indian mutual
fund industry in the year 1963. The primary Objective at that time was to attract the
small investors and it was made possible through the collective efforts Of the
Government of India and the Reserve Bank of India. unit Trust of India enjoyed
complete monopoly when it was established in the year 1963 by an act of Parliament.
UTI was set up by the Reserve Bank of India and it continued to operate under the
regulatory control of the RBI until the two were de-linked in 1978 and the entire control
was transferred in the hands of Industrial Development Bank of India (IDBI). UTI
launched its first scheme in 1964, named as unit Scheme 1964 (US-64), which attracted
the largest number of investors in any single investment scheme Over the years.
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The history of mutual fund industry in India can be better understood

divided into following phases:
Phase 1. Establishment and Growth of Unit Trust of India - 196487
unit Trust of India enjoyed complete monopoly when it was established in the year 1963
by an act of Parliament. UTI was set up by the Reserve Bank of India and it continued
to operate under the regulatory control Of the RBI until the two were de-linked in 1978
and the entire control was transferred in the hands Of Industrial Development Bank of
India (IDBI). UTI launched its first scheme in 1964, named as unit Scheme 1964
(US64), which attracted the largest number of investors in any single investment
scheme Over the years.
UTI launched more innovative schemes in 1970s and 80s to suit the needs of
different investors. It launched OLIP in 1971, six more schemes between 1981-84,
Children's Gift Growth Fund and India Fund (India's first offshore fund) in 1986, Master
share (India's first equity diversified scheme) in 1987 and Monthly Income Schemes
(offering assured returns) during 1990s. By the end of 1987, UTI's assets under
management grew ten times to Rs 6700 crores.
Phase 2. Entry of Public Sector Funds 1987-1993
The Indian mutual fund industry witnessed a number of public sector players
entering the market in the year 1987. In November 1987, SBI Mutual Fund from the
State Bank of India became the first non-UTI mutual fund in India. SBI Mutual Fund
was later followed by Can bank Mutual Fund, LIC Mutual Fund, Indian Bank Mutual
Fund, Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. By 1993,
the assets under management of the industry increased seven times to Rs. 47,004 crores.
However, UTI remained to be the leader with about market share.
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Mobilisation
Amount Asset under as % of gross
1992-93
mobilised management domestic
savings
UTI 11,057 38,247 5.2%
Public sector 1,964 8,757 0.9%
total 13,021 47,004 6.1%
Phase 3. Emergence of Private Sector Funds - 1993-96
The permission given to private sector funds including foreign fund management
companies (most of them entering through joint ventures with Indian promoters) to
enter the mutual fund industry in 1993, provided a wide range of choice to investors
and more competition in the industry. Private funds introduced innovative products,
investment techniques and investor-servicing technology. By 1994-95, about 11 private
sector funds had launched their schemes.
Phase 4. Growth and SEBI Regulation 1996-2004
The mutual fund industry witnessed robust growth and stricter regulation from the
SEBI after the year 1996. The mobilisation of funds and the number of players operating
in the industry reached new heights as investors started showing more interest in mutual
funds.
Investors' interests were safeguarded by SEBI and the Government Offered tax
benefits to the investors in order to encourage them. SEBI (Mutual Funds) Regulations,
1996 was introduced by SEBI that set uniform standards for all mutual funds in India.
The Union Budget in 1999 exempted all dividend incomes in the hands of investors
from income tax. Various Investor Awareness Programmes were launched during this
phase, both by SEBI and AMFI, with an objective to educate investors and make them
informed about the mutual fund industry.
In February 2003, the UTI Act was repealed and UTI was stripped of its
Special Legal Status as a trust formed by an Act of Parliament. The primary Objective
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behind this was to bring all mutual fund players on the same level. UTI was re-organised
into two parts:
1. The Specified Undertaking,
2. The UTI Mutual Fund Presently Unit Trust of India operates under the name
Of UTI Mutual Fund and its past schemes (like US-64, Assured Return Schemes) are
being gradually wound up. However, UTI Mutual Fund is still the largest player in the
industry.
Phase 5. Growth and Consolidation 2004 Onwards
The industry has also witnessed several mergers and acquisitions recently,
examples of which are acquisition of schemes of Alliance Mutual Fund by Birla Sun
Life, Sun F&C Mutual Fund and PNB Mutual Fund by Principal Mutual Fund.
Simultaneously, more intonational mutual fund players have entered India like Fidelity,
Franklin Templeton Mutual Fund etc. There were 29 funds as at the end Of March 2006.
This is a continuing phase of growth of the industry through consolidation and entry of
new international and private sector players.
4.6 Assets Under Management:
UTIAMC presently manages a corpus of over Rs68,39,726.42 lakhs as on 31st

December 2011. UTI Mutual Fund has a track record of managing a variety of schemes
catering to the needs of every class of citizens. It has a nationwide network consisting
148 UTI Financial Centres (IJFCS) and UTI International offices in London, Dubai and
Bahrain. UTIAMC has a well-qualified, professional fund management team, which
has been fully empowered to manage funds with greater efficiency and accountability
in the sole interest of the unit holders. The fund managers are ably supported by a strong
in-house securities research department. To ensure investors interests, a risk
management department is also in operation.
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4.7 Key personnel’s of UTI AMC
Mr. U. K. Sinha
Mr. Satish Chandra dikshit
Mr. T. N. Radhakrishna
Mr. Amandeep Singh Chopra
Mr. Jaideep Bhattacharya
Mr. Imtaiyazur Rahman
Mr. Anoop Bhaskar
4.8 PRODUCTS OF UTI AMC
The UTI is having more number of products/schemes/funds. The following are the
selected schemes of mutual fund.
Equity Fund Category
⮚ Diversified Funds
● UTI Master Share: An equity fund aiming to provide benefit of capital appreciation
and income distribution through investing in equity.
● UTI Master Plus Unit Scheme: Capital appreciation through investments in

equities and equity related instruments, convertible debentures, derivate in India and
also in overseas markets.
● UTI Equity Fund: It is open ended equity scheme with an objective of investing at
least 80% Of its funds in equity and equity related instrument with medium to high risk
profile and up to 20% in debt and money market instruments with low to medium risk
profile.
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● UTI Contra Fund: To provide long term capital appreciation/ dividend distribution
through investments in listed equities & equity related instruments. The fund Offers an
impact of non-rational investors that are currently undervalued because Of emotional
& behavioural patterns present in the stock market.
● UTI Wealth Builder: The objective of the scheme is to achieve long term investing
predominantly in a diversified portfolio of equity related instruments.
● UTI Top 100: The fund aims to provide long term capital appreciation/ dividend
predominantly in equity and equity related instruments to 100 by market capitalisation.
⮚ Speciality/ Theme Based Fund
● UTI Infrastructure Fund: An open-ended equity fund with the Objective to

provide capital appreciation through investing in the stocks of the companies engaged
in the sectors like Metals, Building materials, Oil and gas, power, chemicals,
engineering etc. The fund will invest in the stocks of the companies which from part of
infrastructure industries.
● UTI Dividend Yield Fund: An open-ended equity scheme. It aims to provide to

long term capital gains and/or dividend distribution by investing predominantly in
equity and equity related instruments, which offer high dividend yield.
● UTI Services Industries Fund: An open-ended fund which invests in the equities
of the services sector companies of the country. One Of the growth sector fund aiming
to provide growth of capital over a period of time as well as to make income distribution
by investing the funds in stocks of companies engaged in service sector such as banking,
finance, insurances, education, training, telecom, travel, entertainment etc.
● UTI Master Value Fund: An open-ended equity fund investing in stocks which
are currently undervalued to their future earning potential and carry medium risk profile
to provide Capital appreciation.
● UTI Mid Cap Fund: An open-ended fund with the Objective to provide 'Capital
Appreciation' by investing primarily in mid cap stocks.
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● UTI Leadership Equity Fund: The scheme seeks to generate capital appreciation
and/ Or income distribution by investing the funds in stocks that are 'Leader" in their
respective industries/ sectors/ sub sectors.
● UTI MNC Fund: The investments of funds under the scheme will be predominantly
in stocks of multinational corporations and Other Liquid stocks.
● UTI Opportunities Fund: The scheme seeks to generate capital appreciation and/
or income distribution by investing the funds of the scheme in the equity shares and
equity related instruments. The focus of the scheme is to capitalise on opportunities
arising in the market by responding to the dynamically changing Indian economy by
moving its investments amongst different sectors as prevailing trends change.
● UTI Wealth Builder Fund ser~: TO achieve long term capital appreciation by
investing predominantly in a diversified portfolio of equity and equity related
instruments along with investments in GOLD ETF's and Debt and Money Market
Instruments.
● Sector Funds: These funds invest primarily in equity shares of companies in a

particular business sector or industry. These funds are targeted at investors who are
bullish or fancy the prospects of a particular sector.
● UTI Banking Sector Fund: open ended fund with the Objective to provide
'Capital Appreciation through investment in stocks of companies/ institutions engaged
in the banking and financial services activities.
● UTI Energy Fund: Investment will be made in stocks of these companies engaged
in the following areas: (a) Petro sector, (b) Power Generation Companies, (c) Energy
Storage Companies, (d) Companies which makes parts for energy generation, (e)
Consulting and Finance Companies.
● UTI Pharma and Health Care Fund: An open-ended fund which exclusively
invest in the equities Of the Pharma and Healthcare sector companies.
● UTI Transportation and Logistics Fund: An open-ended Equity fund with the
Objective to provide Capital appreciation through investment in the stocks of the
companies engaged in the Transportation and Logistics sector.
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⮚ Tax Planning Funds
● UTI Equity Tax Saving Plan: An open-ended fund investing a minimum of 80%
in equity and related instruments. It aims at enabling members to avail tax rebate under
section BOC Of the IT act and provide them with the benefit of growth.
● UTI Spread Fund: The investment objective of the scheme is to provide capital
appreciation and dividend distribution through arbitrage opportunities arising Out Of
price differences between the cash and derivative market by investing predominantly in
equity and related securities, derivatives and the balance portion in debt securities.
● Index Fund Category: These funds invest in the same pattern as popular market
indices like S&P CNX Nifty or CNX Midcap 200. The money collected from the
investors is invested only in the stocks, which represent the index.
● UTI Master Index Fund: The principle investment Objective Of the scheme is to
invest in securities of companies comprising the SENSEX and endeavour to achieve
return equivalent to SENSEX by passive investment.
● UTI Nifty Index Fund: The principle investment Objective Of the scheme is to
invest in stock of companies comprising the Nifty and endeavour to achieve return
equivalent to Nifty by passive investment.
● UTI Sunder: Investment Objective Of the fund is to endeavour to provide returns

that, before expenses, closely track the performance and yield of basket of securities
underlying S&P CNX Nifty Index.
⮚ Asset Fund Category
● UTI Variable Investment Scheme: This is an open-ended scheme aiming to

make dividend distribution periodically. The scheme will, as part of the investment
objective take a contrarian Outlook on the equities.
TUMKUR CITY”
⮚ Balanced Fund Category:
These funds invest both in equity shares and fixed -income-bearing

instruments (debt) in some proportion. They provide a steady return and reduce the
volatility of the fund while providing some upside for capital appreciation. They are
ideal for medium to long-term investors who are willing to take moderate risks.
● UTI Balanced Fund: The scheme aims to invest in a portfolio of equity/equity

related securities and fixed income securities with a view to generating regular income
together with capital appreciation.
● UTI Unit linked Insurance Plan: Investment objectives of the scheme are
primarily to provide return through growth inters NAV or through dividend distribution
and reinvestment thereof.
● UTI CRTS: Investment objectives of the scheme are the primarily provide regular
income to unit holders of the scheme.
● UTI Children Career Balanced Plan: Funds collected under the plan will be
invested in equities, convertible and nonconvertible debentures/ bonds of companies/
corporates etc. and Others capital and money market instrument subject to the condition
that (1) non-less than 60% of the funds will be invested in debt instruments of law to
medium profile having a rating of A+ and above or equivalent at the time of investment
and (2) not more than 40% of the funds in equities and related instruments.
● UTI Retirement Benefit Pension Plan: Investment Objective and policies of

the scheme are primarily to provide pension in the form of periodical income / cash
flow to the unit holders to the extent of redemption value of their holding after they
complete 58 years of age.
● UTI Mahila Unit Scheme: Investment objectives of the scheme is to invest in

portfolio of equity/ equity related securities and debt and money market instrument with
a view to generating reasonable income with moderate capital appreciation.
TUMKUR CITY”
● UTI CCP Advantage Fund: Equity and related instruments minimum70% to

100%, debt and money market instruments including securitized debt minimum- 0% to
maximum investment in securitized debt will not normally exceed 20% Of the net assets
of the scheme.
● UTI Monthly Income Scheme: An open-ended debt-oriented scheme with no

assured returns. The scheme aims at distributing income, if any, periodically.
● UTI MIS Advantage Plan: The investment objective of the scheme is to generate
regular income through investment in fixed income securities and capital appreciation/
dividend income through investment of a portion of a net asset of the scheme in equity
and related instruments so as to endeavour to make periodic income distribution to unit
holders.
⮚ Income Fund Category:
These funds invest predominantly in high-rated fixed-income-bearing

instruments like bonds, debentures, government securities, commercial paper and other
money market instruments. They are best suited for the medium to long-term investors
who are averse to risk and seek capital preservation. They provide a regular income to
the investor.
● UTI Bond Fund: The scheme will retain the flexibility to invest in the entire range
of debt and money market instruments. The flexibility is being retained to adjust the
portfolio in response to a change in the risk to return equation for asset classes under
investment, with a view to maintain risks within manageable risks limits.
● UTI Treasury Advantage Fund: The scheme will endeavour to generate an

attractive return for its investors consistent with capital preservation and liquidity by
investing in a portfolio of quality debt securities, money market instruments and
structured Obligations.
● UTI G-Sec Investment Plan- STP: The investment objective of the scheme is
to generate credit risk- free return by way of income or growth by investing in central
Government securities, treasury bills, call money and repos.
TUMKUR CITY”
● UTI Gilt Advantage Fund: TO generate credit risk-free return through

investment in sovereign securities issued by the central Government and/or a State
Government and/or any security unconditionally guaranteed by the central Government
and/or a State government for repayment of principle and interest.
● UTI Short Term Income Fund: TO Generate Steady and Reasonable income,
with low risk and high level of liquidity from a portfolio of money market securities
and high-quality debt.
● UTI Floating Rate Fund: The investment objective of the scheme is to generate
regular income though investment in a portfolio comprising substantially a floating rate
debt/ money market instruments, fixed rate debt/ money market instrument swapped
for floating rate returns.
● UTI G-Sec STP: The investment objective of the scheme is to generate credit risk-
free return by way of income or growth by investing in Central Government securities,
treasury bills, call money and repos.
⮚ Liquid Fund Category:
These funds invest in highly liquid money market instruments. The period
of investment could be as short as a day. They provide easy liquidity. They have
emerged as an alternative for savings and short-term fixed deposit accounts with
comparatively higher returns. These funds are ideal for corporate, institutional investors
and business houses that invest their funds for very short periods.
● UTI Money Market Fund: TO provide highest possible current income consistent
with preservation of capital and providing liquidity from investing in a diversified
portfolio of short term money market securities.
● UTI Liquid Fund Cash Plan: The investment objective of the scheme is to
generate steady and reasonable income, with low risk and high level of liquidity from
a portfolio of money market securities and high-quality debt.
TUMKUR CITY”
4.9 Competitors' information:
⮚ Sahara mutual fund
Sahara Mutual Fund was set up on July 18, 1996 with Sahara India Financial
Corporation Ltd. as the sponsor. Sahara Asset Management Company Private limited
incorporated on August 31, 1995 works as the AMC of Sahara Mutual fund. The paid-
up capital of the AMC stands at Rs 25.8 crores.
⮚ Kotak Mahindra Mutual Fund
Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of

KMBL. It is presently having more than l, 99,818 investors in its various schemes.
KMAMC started its operations in December 1998. Kotak Mahindra Mutual Fund offers
schemes catering to investors with varying risk - return profiles. It was the company to
launch dedicated gilt scheme investing only in government securities.
⮚ Escorts Mutual Fund
It Was setup on April 15, 1996 with Escorts Finance Limited as its sponsor. The
Trustee Company is Escorts Investment Trust Limited. Its AMC was incorporated on
December 1, 1995 with the name Escorts Asset Management Limited.
⮚ Share khan:
share khan's equity related services include trade execution on BSE, NSE,
derivatives, commodities, depository services, online trading and investment advice. It
has around 510 offices in 170 cities around the world. Share khan has one of the best
states of art web portal providing fundamental and statistical information across equity,
mutual fund, and initial public offerings (IPOs).
⮚ Karvy stock broking house:
The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among
the top player in almost all the fields it operates. Karvy stock brokers limited is a
member of NSE and BSE. It is India's largest registrar and transfer agent.
TUMKUR CITY”
⮚ ING vysya mutual fund:
ING vysya Mutual Fund was setup on February 11, 1999 with the same named
Trustee company. It is a joint venture of Vysya and ING. The AMC, ING Investment
Management (India) Pvt. Ltd. was incorporated on April 6, 1998.
4.10 Key features
⮚ Membership of Bombay stock exchange (BSE) and national stock exchange (NSC).
⮚ Broking services through cash or through online.
⮚ It creates better capital appreciation to the unit holders through investment in equities
or debenture/ bonds.
⮚ Better income/dividend distribution to the unit holders. It may be of short term or long
term.
⮚ Free entry load structure for investment on scheme.
4.11 infrastructural facility
It provides good infrastructure and service facility to the employees. Where the
infrastructure facility comprises of
⮚ Well-furnished office
⮚ Good canteen facility
⮚ Medical facility
⮚ Training centres
⮚ Refreshment
⮚ Securities to the office
TUMKUR CITY”
4.11 Awards received by UTI mutual fund
⮚ UTI MF CNBC Award 2009.
⮚ UTI Mutual Fund sweeps ICRA mutual fund Award 2009.
⮚ UTI MF won the Best Debt Fund House Award.
⮚ Golden Peacock Innovative Product/Service Award-2008.
⮚ Loyalty Awards — 2009.
⮚ Lipper Fund Awards 09-UTI Mahila Unit-5 yrs.
⮚ Lipper Fund Awards09-UTI Mahila Unit-3 yrs.
⮚ Reader's Digest Trusted Brand 2008.
⮚ Lipper Fund Awards - Gulf 2008.
⮚ Brand loyalty Awards 2008.
⮚ Four ICRA 7 Star Gold Award.
⮚ Four ICRA 5 Star Award.
⮚ ICRA Mutual Fund Award 2007.
⮚ CRISIL-CNBC-TV18-Mutual Fund of the year Award 2007.
⮚ ICRA Mutual Fund Award 2006.
⮚ ICRA online Mutual Fund Award: UTI NIFTY INDEX FUND won the award for the
year 2004.
⮚ CNBC India Mutual Fund of the Year Award 2003.
⮚ UTI Nifty Index Fund Wins Gold at ICRA Online 2005.
⮚ UTI Dynamic Equity Fund Wins Silver at ICRA Online 2005.
⮚ UTI Growth Value Fund has been ranked by CRISIL 2004.
TUMKUR CITY”
4.12 Sponsors
Four leading public-sector banks — Bank of Baroda, Punjab National Bank and
State Bank of India and Life Insurance Corporation of India (LIC), the largest public
financial investment institution and life insurer in India are the sponsors of UTI Mutual
Fund.
Bank of Baroda: -
Bank of Baroda is a commercial bank performing activities in terms of

Banking Companies (Acquisition and Transfer of Undertakings Act 1970) under which
the Undertaking of the Bank was taken over by the Central Government. During the
period since inception, it has always maintained its practice of sound value-based
banking to emerge as one of the premier public-sector Banks of the country today. It
has a track record of uninterrupted profits since inception in 1908. The financial
strength of the Bank and its long tradition of efficient customer service are drawn
substantially from the extensive reach of its 2732 strong branch network (as of
31.03.2007) almost every State and Union Territory in the Country. The Bank is also
one of the few Indian Banks with a formidable presence overseas with 40 branches.
Life Insurance Corporation of India: Life Insurance Corporation of India

(LIC) is amongst the largest insurance companies in the world, with 2048 branches and
having a Fund size of Rs. -5,60,806.33 crores.
Punjab Nationalised Bank:
Punjab National Bank is a commercial bank performing activities in terms of

Banking Companies (Acquisition and Transfer of Undertakings Act 1970) under which
the Undertaking of the Bank was taken over by the Central Government. The main
object of the bank under the said Act is as below:- An act to provide for the acquisition
and transfer of the undertaking of certain banking companies, having regard to their
size, resources coverage and organization, in order to further to control the heights of
the economy, to meet progressively and serve better, the needs of the development of
the economy and to promote the welfare of the people, in conformity with the policy of
the State towards securing the principles laid down in clause (b) and (c) of Article 39
TUMKUR CITY”
of the Constitution of India and for matter connected therewith or incidental therein.
Punjab National Bank has 4539 domestic offices including 421 extension counters, 2
subsidiaries and a deposit size ofRs.1, 39,860 crores.
State Bank of India:
It is the largest public-sector bank in India with 9517 branches in India and 83
offices in 32 countries worldwide in addition to this, SBI also has 21 subsidiaries. The
sponsors are neither responsible nor liable for any loss resulting from the operation of
the scheme beyond the contribution of an amount of Rs. 10, 000 /- made by them
towards setting up of the Mutual Fund.
4.13 Distributers of UTI
● HDFC BANK LTD.
● AXIS BANK LTD.
● ICICI BANK LTD.
● BANK OF BARODA
● CORPORATION BANK
TUMKUR CITY”
CHAPTER-5
DATA ANALYSIS AND INTERPRETATION
The collected data is not easily understandable, so here I had analysed the
collected data in a systematic manner and interpreted with simple method, and
inferences have been drawn on the basis of analysis.
The analysis and interpretation of the data involves, the analysing of the
collected data and interpreted it with pictorial representation such as bar charts pie
charts and others.
Table-5.1
Interest on Respondents of investment
Table showing the number of persons interested in investment
Response Frequency Percentage
Yes 38 76
No 12 24
Total 50 100
Source: primary data
Interpretation:
The above table deals with interest of respondents in investment of fund. Out of
50 people taken into consideration for knowing in their interest on investment. 38
people said that they are interested in investment avenues while 12 of them did not show
any kind of interest in investment of funds available with them.
TUMKUR CITY”
Graph- 6.1
Interest of respondents in investment
Inference:
the above chart shows that majority of people (76%) are interested in investing
their money in various available schemes in market. However, some people (24%) are
still there do not want to invest funds available with them. So, awareness needs to be
spread among those who are not willing to invest their money. By telling them various
benefits Which can be availed by making investment this can be achieved. They should
be introduced with products that suits their investment.
TUMKUR CITY”
Table – 5.2
Percentage of annual income kept for investment
Table showing percentage of annual income kept for investment
Below 5% 6 12
Below 10% 15 30
Below 15% 12 24
Below 20% 8 16
above 25% 9 18
Total 50 100
Interpretation:
This table tells about the amount of income people keep aside for investment
purposes. Out of 50 people who were interested in investment, majority of people, that
is, 15 respondents keep below 10% of their income for investment and people invest
below 15% are also in good number. But there are very few people invest below 5% of
their income.
TUMKUR CITY”
Graph - 6.2
Percentage of annual income kept for investment
Inference:
Therefore, it can be said that more than 15 out of 50 respondents invest below
10% of their income and almost 12 out of 50 respondents invest below 15% of their
income in investments. On this basis, around of people invest 5% to 15% of their
income and this can be the target market for the players in the industry.
TUMKUR CITY”
Table - 5.3
Classification of investors as per income category
Description of respondents as per income category
Lower income group 11 22
middle income group 34 68
higher income group 5 10
total 50 100
Interpretation:
This table deals with the number of people belonging to different income
categories, i.e., higher, middle and lower. Out of 50 people are interested in investing
activities, 34 of them belong to middle income group. Majority of respondents are
interested in investment belong to middle income.
TUMKUR CITY”
Graph - 6.3
Classification of investors as per income category
Inference:
So, we can say that around 68% of the respondents are interested in investment
belong to middle income group as they consider investments important for stable
income and other criteria for targeting the potential investors can be the income
categorization and products can be developed according to specific income category.
TUMKUR CITY”
Table - 5.4
Investment preferences of investors
Table shoving investment preferences of the respondents

Bonds and debenture 11 22
Shares and warrants 14 28
Mutual fund 17 34
All of these 5 10
None of the above 3 6
Total 50 100
Interpretation:
When asked about investment preferences, most of the investors were interested
in shares & warrants and mutual funds. 14 out of 50 favoured shares & warrants and 17
respondents favoured mutual funds. Some investors were also not interested in any of
these but were investing their funds in field deposits of banks and post office saving
schemes.
TUMKUR CITY”
Graph - 6.4
Investment preferences of investors
Inference:
This chart shows that although the share market is on the rise yet, the most
favoured investment continues to be in the mutual fund 34%. So, with a more
transparent system. Investment in the mutual fund can defiantly be increased.
TUMKUR CITY”
Table - 5.5
Respondent’s basic purpose of investment
Table showing respondents purpose of investment
Percentag
Response Frequency
e
Liquidity 7 14
Returns 20 40
Capital appreciation 14 28
Risk bearing 3 6
Tax benefits 6 12
Total 50 100
source: primary data
Interpretation:
The table shows the 20 out of 50 people are interested in investment for the
purpose of return. And the second important purpose of investment is capital
appreciation (14 out of 50). And the few investors have a less risk bearing investment.
TUMKUR CITY”
Graph - 6.5
Respondents basic purpose of investment
Inference:
The above chart showing majority of investors (40%) are most preferred to invest in
returns. And 28% of respondents are interested in invest capital appreciation.
TUMKUR CITY”
Table - 5.6
Share market Knowledge of respondents
Table showing share market knowledge of respondent.
Percentag
Response Frequency
e
Partial 19 38
Complete 19 38
No 12 24
Total 50 100
Interpretation:
The table shows the 19 out of 50 people are interested in investment for the
purpose of return. And the second important purpose of investment is capital
appreciation (14 out of 50). And the few investors have a less risk bearing investment.
TUMKUR CITY”
Graph - 5.6
Share market Knowledge of respondents
Inference:
The above chart showing majority of respondent have a complete knowledge of

share market (38%) and also have partial knowledge of share market (38%).
TUMKUR CITY”
Table - 5.7
Respondent’s satisfaction level of present stock trading companies
Table shoving satisfaction levels among respondents trading through UTI Demat
account:
Satisfied 19 38
Neutral 20 40
Unsatisfied 11 22
Total 50 100
Interpretation
Talking about the satisfaction levels of customers of UTI mutual fund, 19 out
of 50 investors who had demat account in UTI mutual fund, 11 of them said that they
are not at all happy with the services provided by UTI mutual fund. 19 out of 50
customers had a good satisfaction level and 20 investors have an average experience of
dealing with UTI mutual fund.
TUMKUR CITY”
Graph - 6.7
Respondent’s satisfaction level of present stock trading companies
Inference:
This chart shows the 40% of respondents have average satisfaction, and 38% of
respondents full satisfied with the UTI mutual fund, and 22% of respondent has
unsatisfied with their services.
TUMKUR CITY”
Table - 5.8
Opinion of Investors about Demat account
Table shoving numbers of people holding different opinion about demat

account.
Frequenc Percentag
Response
y e
Easy in selling securities 11 22
Purchase in primary market 18 36
Helps in earn income and also
13 26
grow money
Helps in earn stable income 8 16
Total 50 100
Source: Primary data
Interpretation
When asked about the opinion people have about demat account, for most of
them, demat account was a mean of fast money & purchase in primary market and for
some of them income growth. Few people also think that demat account for easy selling
of securities and stable income.
TUMKUR CITY”
Graph - 6.8
Opinion of Investors about Demat account
Inference:
It is to see that around 62% people know that trading through demat account helps
in purchasing in primary market, earning money and income growth. This kind of
thinking pattern should spread among people so that they can invest more and more. In
addition, it will also help in mobilizing funds for development of economy.
TUMKUR CITY”
Table - 5.9
Trends regarding holding a Demat account.
Table shoving number of respondents having demat account
Frequenc Percentag
Response
y e
Yes 20 40
No 30 60
Total 50 100
Interpretation:
This table shows that out of 50 people, 20 people had demat account and 30
people do not have demat matted account. Around 50 respondents are not aware of
demat account but only 20 of them hold it.
TUMKUR CITY”
Graph - 6.9
Trends regarding holding a Demat account.
Inference:
This pie chart shows around 60% of respondents possess demat account and it is
a majority part. So, we can say that most of the people are trading in stock market. But
there is need of advertisement so as to engage them stock trading and for that demat
account is too opened with them.
TUMKUR CITY”
Table - 5.10
Market holding of different players in the industry
Table shoving number of respondents having demat account in different depository

participants:
Frequenc Percentag
Response
y e
UTI mutual fund 19 38
ICICI 11 22
GOVERNMEN
19 38
T
OTHER 1 2
Total 50 100
Interpretation:
Out of 50 investors who had demat account, 11 people had their demat account
in ICICI and 19 investors had the same in UTI mutual fund and government. And only
1 respondent have a demat account others.
TUMKUR CITY”
Graph - 6.10
Market holding of different players in the industry
Inference:
From this chart, we can see the main leaders in the market are UTI mutual fund
and government. They have a stiff competition between them and together they hold
around 38% of respondents equally.
TUMKUR CITY”
Table - 5.11
Frequency of trading by investors
Table shoving how frequently investors trade:

Daily 6 12
Weekly 20 40
Monthly 19 38
Yearly 5 10
Total 50 100
Interpretation:
Out of the people who had demat account, 19 respondents said that they usually
trade once a month and 20 respondents said that they trade weekly. Investors were also
there who trade daily or yearly but those people were less in numbers.
TUMKUR CITY”
Graph - 6.11
Frequency of trading by investors
Inference:
Inspire of the huge returns that the share market promises, we see that there is
still a dearth of active traders and investors. This is because of the none — transparent
structure of the Indian share market and the scepticism of the target audience that is
TUMKUR CITY”
generated by the volatility of the stock market. It requires efficient bureaucratic

intervention on the part of the Movement
TUMKUR CITY”
Table - 5.12
Awareness among investors about UTI mutual fund schemes
Table showing awareness of UTI mutual fund schemes:
Yes 33 66
No 17 34
Total 50 100
Interpretation:
When respondents were asked about awareness of UTI mutual fund schemes,
33 knew about UTI and 17 did not know. Around 66% said yes to this question while
34% said no. majority of people know about UTI mutual fund scheme as a good braid.
TUMKUR CITY”
Graph - 6.12
Awareness among investors about UTI mutual fund schemes
Inference:
This pie-chart shows that UTI mutual fund has a reasonable amount of brand
awareness in terms of a premier Retail stock broking company. This brand image should
further have leveraged by the company to increase its market share over its competitors.
TUMKUR CITY”
Table - 5.13
Satisfaction level experienced by customers of UTI mutual fund
Table shoving satisfaction level among investors trading through UTI demat
account:
Good 11 22
Average 35 70
Bad 4 8
Total 50 100
Interpretation:
Talking about the satisfaction levels of customers of UTI mutual fund schemes out
of 38% investors who had demat account in UTI mutual fund, 4 of them said that they
are not at all happy with the services provided by UTI. 11 customers had a good
satisfaction level and rest of them had a 35-average experience of dealing with UTI
mutual fund.
TUMKUR CITY”
Graph - 6.13
Satisfaction level experienced by customers of UTI mutual fund
Inference:
This pie-chart corroborate the fact that Strategic marketing, today, has still not
gone beyond meeting sales targets and generating profit volumes only. That is why,
around 22% of customers having high level satisfaction of more than half of the
customers having a very average level of satisfaction.
TUMKUR CITY”
Table - 5.14
Reason for selecting Mutual Fund Company
Company reputation 9 18
Good return 12 24
Expert opinion 20 40
Other reason 9 18
Total 50 100
Table showing reasons for selection of mutual fund company.
Interpretation:
This table shows that out of 50 people, 20 people select the mutual fund for export
opinion, and 12 people select for good return. Around 9 respondents are selecting the
mutual fund for company reputation and other reason.
TUMKUR CITY”
Graph - 6.14
Reason for selecting Mutual Fund Company
Inference:
The above chart shows the 40% of people are selecting the mutual fund for
expert opinion. And 24% of people select the mutual fund for good return. And the few
investors investing for company reputation and other reason.
TUMKUR CITY”
Table - 5.15
Reason for investing in Mutual fund.
Table showing respondents reasons for investing mutual fund
Income 17 34
Reduce risk 16 32
Tax exemption 7 14
Child education 10 20
Total 50 100
Interpretation:
The table shows the 17 out of 50 people are interested in investment for the reason
of income. And the second important reason of investing in mutual fund is reduce risk
(16out of 50). And the few investors have a reason for tax exemption to select the
mutual fund.
TUMKUR CITY”
TUMKUR CITY”
Graph - 6.15
Reason for investing in Mutual fund.
Inference:
The above chart showing majority of investors (34%) are most preferred to invest in
income and same level of investing in reduce risk mutual funds. And 14% of
respondents are interested in invest tax exemption.
TUMKUR CITY”
CHAPTER – 6
SUMMARY OF FINDINGS
This study program has played a significant role in understanding the investors
trading behaviour. It helps to know about the preferences, behaviour and attitude of
investors it gives them knowledge about the different investment option available for
investment.
⮚ 76% of respondents have their interest on invest.

⮚ 66% of people aware of UTI mutual fund.
⮚ 68% of investors’ interest on investing in middle income group.
⮚ Income and safety of investment are most important objective of the investors.
⮚ 48% of respondents shown interest to invest in mutual fund.
⮚ Income fund and specialised fund are most important for the investing in mutual fund.
⮚ 30% of despondence put their earrings to investment below 10%.
⮚ Now a day's investors want to invest their money for long term prospective to reach
their financial goal and maximizing wealth.
⮚ In this current scenario Mutual Funds & Bank deposits become the most preferred
investment option.
⮚ Returns earned on Mutual Funds are the cause for many investors invest in UTI Mutual
Funds.
⮚ 38% of investors satisfying the present stock trading.

⮚ 40% of investors selecting the mutual fund for the guidance of expert.
TUMKUR CITY”
CHAPTER – 7
SUGGESTIONS AND CONCLUSIONS
SUGGESTION:
⮚ The investors should be given the option of attending investor's education programme
once in a month.
⮚ The information about the products should be revealed exactly to the investors, and they
should be advised on the risks attached to them.
⮚ Mutual fund, the concept is widely known, but many people are still unaware about
various schemes of mutual fund, increasing awareness is also very important thing.
⮚ Programmes creating awareness towards the various products of UTI Mutual Fund
should be conducted especially in the Villages.
⮚ Providing proper reports revealing all the information related to the investment have to
be sent to the investors regularly and this can change the general attitude towards mutual
funds.
⮚ Investors can take their own steps in analysing the market conditions and can be advised
to make a portfolio and investment analysis on their investment.
⮚ The investors should be given all the information regarding their investment and the
benefits or the drawbacks of the investments.
⮚ There is a need to introduce very aggressive scheme which can give maximum returns
to investor as they are more concern about return, transparency and regular income than
risk and liquidity.
TUMKUR CITY”
CONCLUSION:
In any Mutual Fund Industry investors awareness plays an important role. With
the increasing number of Mutual Fund organisations, there a need for every company to
educate investors and the general public on various aspects concerned with the mutual
fund investments which in turn reveals their attitude towards such investments.
From the study on "a study on trading behaviour of investors at UTI Mutual
find schemes in Tumkur city", it is found that the investors have a positive attitude
towards their investment made in UTI Mutual funds. Majority of the investors prefer
Mutual Funds for the returns and feel that it is a safe measure of investment. The
investors select the schemes considering the returns earned from them. The preferred
scheme; and firms are the Equity schemes and Open-ended funds. Though the investors
are not aware of the risks attached to the investment they have a positive attitude towards
the mutual funds.
The investors are satisfied with their investment in UTI Mutual Funds. The
investors also feel that the annual reports and other publications of the concern help
them analyse the performance of their investment. The organisation can educate its
investors on the risk and return in order to make their investments more effective. The
investor's education programme can be conducted by the organization in order to
educate the investors.
The study has helped the researcher gain real time knowledge and has helped
to user analytical skills to analyse the attitude of the investors.
TUMKUR CITY”
BIBLIOGRAPHY
BOOKS:
● Financial Management, PRASANNA CHANDRA. 6th edition

● Financial Management, KHAN & JAIN, 3rd edition
● Security Analysis and Portfolio Management, FISCHER & JORDAI
● Research Methodology, David .R. cooper and schindler
● Investment Management Security Analysis and Portfolio Management, Preethi
Singh, Himalaya Publishing House, Eleventh Edition, 2003
ARTICLE:
● Capital Market Review 2017-18
WEBSITES:
● www.nseindia.com
●www.bseindia.com
●www.economictimes.com
●www.moneycontrol.com
●www.sebi.govt.in
●www.mutualfundindia.com
●www.utiamc.com
TUMKUR CITY”
QUESTIONNAIRE
Dear Sir/ madam

I am ARUNA KUMARA S student of Tumkur University, doing my final year MBA as
part of the curriculum; I am conducting a survey on “A STUDY ON TRADING
BEHAVIOUR OF INVESTORS AT UTI MUTUAL FUND SCHEMES IN TUMKUR
CITY”. I request you to kindly give me your valuable time to fill this questionnaire. I
assure you that the data provided by you will be kept confidential.
Name:
Address:
Occupation:
Mobile no:
1) Are you interested in investment?

(a) Yes
(b) No
2) What percentage of your annual income you can keep investing?

(a) Bellow 5%
(b) Bellow 10%
(c) Bellow 15%
(d) Bellow 20%
(e) Above 25%
3) In which category of income, you will describe yourself?

(a) Lower income group
(b) Middle income group
(c) Higher income group
TUMKUR CITY”
4) Are you dealing or interested in dealing with any security?

(a) Yes
(b) No
5) What type of investment style are you looking for?

(a) Bonds & debenture
(b) Shares & warrants
(c) Mutual fund
(d) all of these
(e) None of the above
6) What is the basic purpose of your investment?

(a) Liquidity
(b) Returns
(c) Capital appreciation
(d) Risk covering
(e) Tax benefits
7) Do you have any knowledge of share markets?

(a) Partial
(b) Complete
(c) No
8) Are you satisfied with your present Share trading company?

(a) Satisfied
(b) Neutral
(c) Unsatisfied
9) Do you know about DMAT a/c?

(a) Yes
(b) No
TUMKUR CITY”
10) In your point of view DMAT a/c is for?

(a) Easy in selling securities
(b) Purchase in primary market
(c) Helps in earn income & also grow money
(d) Helps in earn stable income
11) Do you have a DEMAT a/c?

(a) Yes
(b) No
12) If yes, then where?

(a) UTI mutual funds
(b) ICICI
(c) Government
(d) Others
13) If no, then where do you open?

(a) UTI Mutual funds
(b) ICICI
(c) Govt
(d) Others
14) How frequently you are going to use your DMAT a/c?
(a) Daily
(b) Weekly
(c) Monthly
(d) Yearly
15) Awareness of UTI Mutual fund as a brand?

(a) Yes
(b) No
TUMKUR CITY”
16) Awareness of UTI mutual fund scheme?

(a) Yes
(b) No
17) Availability UTI Mutual fund franchise for trading purpose?

(a) Yes
(b) No
18) Satisfaction level among customers with UTI?

(a) Good
(b) Average
(c) Bad
19) What reason you selecting a mutual fund company?

(a) Company reputation
(b) Good Return
(c) Expert opinion
(d) other reason
20) what reason for investing in mutual fund?

(a) Income
(b) Reduce risk
(c) TAX exemption
(d) Child education
21) Any suggestion to UTI Mutual Fund schemes
TUMKUR CITY”

Chapter - 1: "A Study On Trading Behaviour of Investors at Uti Mutual Fund Schemes in Tumkur City"

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Chapter - 1: "A Study On Trading Behaviour of Investors at Uti Mutual Fund Schemes in Tumkur City"

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“A STUDY ON TRADING BEHAVIOUR OF INVESTORS AT UTI MUTUAL FUND SCHEMES IN

1.2 Introduction Research

A systematic search for an answer to a question or a solution to a problem is

1.3 Meaning of Research

1.4 Introduction to Research Design

1.5 Meaning of Research Design

It is the plan structure and strategy of investigation conceived to obtain answer to

1.6 Title of The Study

The title of the project study is “A STUDY ON TRADING BEHAVIOUR OF

1.7 Statement of the problem

To understand the perception and behaviour of investors and potential investors

1.8 Scope of The Study

The study was conducted at various investor in Tumkur city only.

1.9 Need of the study

1.10 Objectives of the study

1.11 Research methodology: -

A survey of this kind is a rather difficult exercise, especially because many

Collecting of data from a large number of geographically dispersed investors is a

1.11.1 Sources of Data (Primary & Secondary)

Primary data is collected through observation, or through direct

Primary data for this research is collected from,

⮚ The officials of the above mentioned Financial Institution.

⮚ The survey is conducted on the investors in TUMKUR city.

⮚ A detailed market research is conducted on the investors in TUMKUR after designing

⮚ By mall intercepting investors in financial institutions.

⮚ By personally interviewing the investors.

● Mutual Fund Insight.

● Capital Market Chip.

2. Business News papers

1.11.2 Research Method or type of study

The Research method used is descriptive research

Descriptive research, also known as statistical research, describes data and

In the present Research I have collected data through Survey of 50 respondents

1.11.3 Sampling plan

1.11.3.1 Sample unit

1.11.3.2 Sampling method

1.11.3.3 Sample size

1.11.4 Contact Method

Personal interview is used as a method of contacting people.

It is a market research technique for gathering information through face-to-face contact

1.11.5 Data collection method

Research Instrument used in this research was Questionnaire.

A questionnaire is a formalized set of questions for eliciting information. It is one of

The questionnaire can be administered in various ways. It can be administered by means

1.12 Tools and Techniques used for analysing the data: -

For the proper analysis of data, Quantitative Technique such as percentage

3. Statistical techniques used in the present study include:

a) Percentage Method: to show the trend of the variable.

b) Chi-square: to test the independence of the attributes.

1.13 Limitation of study

● Sample size was small in comparison of entire population (50)

Review of past literature reveals that risk perception of investors is influenced

1) Ramakrishna Reddy & Ch. Krishnudu:

on investment behaviour of investors in their study states that the investment

Finance India on Indian investors’ investment characteristics showed that the

3) Sushant Nagpal and B. S. Bodla:

on impact of investors’ lifestyle on their investment pattern: an empirical

4) Ramprasath S and Dr. B. Karthikeyan, December 2017:

on individual investors’ behaviour towards select investments, states that the

5) A Sarangapani and T. Mamatha:

on investment pattern of Indian investors assessed in their research,

6) Dr. Ganapathi & Ms. S. Anbu Malar