Chapter 1:- Introduction of Mutual Fund Industry

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1.1 Definition of mutual fund :-

A mutual fund is a trust pools the savings of a number of investors who share a common
financial goal. It is essentially a diversified portfolio of financial instruments these could be
equities, debentures / bonds or money market instruments. These collective funds (referred to
as mutual assets under management company or AMC.

The combined underlying holding of the fund is known is known as the ‘portfolio’, and each
investor owns a portion of this portfolio in the form of units. The income earned through
these investments and the capital appreciations realized are shared by its unit holders in
proportion to the number of units owned by them. Thus a mutual fund is a 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.

1.2 Functioning of mutual funds:-

investor

fund
reinvestment
manager

financial
returns
securities

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1.3 TYPES OF MUTUAL FUNDS:-

Open ended funds

structure
close ended funds

Growth funds

Income funds
investment
Type of mutual objective
fund schemes Balanced funds

Money market
funds
Industry specific
schemes

special schemes Index Schemes

sectoral schemes

Mutual fund schemes may be classified on the basic of their structure and their investment
objective.

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By structure

Open-ended funds

An open-ended fund is one that is available for subscription all through the year.

These do not have a fixed maturity. Investors can conveniently buy and sell units at net asset
value ( NAV ) related prices.

Close-ended funds

A close-ended fund has a stipulated maturity period, which generally ranges from 3 to 15
years. The fund is open for subscription only during a specified period. Investors can invest
in the scheme at the time of the stock exchange, if they are listed. The market price at the
stock exchange could vary from the scheme’s NAV on account of demand and supply
situation, unit holder’s expectations and other market factors.

By investment objective:-

Growth funds

The aim of growth funds is to provide capital appreciation over the medium to long term.
Such schemes normally invest majority of their corpus in equities. Growth schemes are ideal
for investors who have a long-term outlook and are seeking growth over a period of time.

Income funds

The aim of income funds is to provide regular income to investors. Such schemes generally
invest in fixed income securities such as bonds, corporate debentures and government
securities.

Income funds are ideal for capital stability and regular income. Capital appreciation in such
funds may be limited, though risks are typically lower than that in a growth fund.

Balanced funds

The aim of balanced funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents. This proportion affects the

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risks and the returns associated with the balanced fund- in case equities are allocated a higher
proportion, investors would be exposed to risks similar to that of the equity market.

Balanced funds with equal allocation to equities and fixed income securities are ideal for
investors looking for a combination of income and moderate growth.

Money market funds

The aim of money market funds is to provide easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer short-term instruments such as
treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on
these schemes may fluctuate depending upon the interest rates prevailing in the market.

These are ideal for corporate and individual investors as a means to park their surplus funds
for short periods.

Other equity related schemes :-

Industry specific schemes

These are the fund/ schemes which invest in the securities of only those sectors or industries
as specified in the offer documents. Eg pharmaceuticals, software, fast moving consumer
good (FMCG), petroleum stocks, etc the returns in these funds are dependent on the
performance of the respective sectors / industries. While these funds may give higher returns,
they are more risky compared to diversified funds. Investors need to keep a watch on the
performance of those sectors / industries and must exit at an appropriate time. They may also
advice of an export.

Index schemes

Index schemes replicate the portfolio of a particular index such at the BSE sensitive index,
S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the same weightage
comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise
or fall in the index, though not exactly by the same percentage due to some factors known as
“tracking error” in technical terms. Necessary disclosures in this regard are made in the offer
document of the mutual fund scheme.

There are also exchange trade index funds launched by the mutual funds which are trade on
the stock exchange.

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Sectorial schemes

Sectoral funds are those which invest exclusively in specified sector(s) such as FMCG,
information technology, pharmaceuticals etc. These schemes carry higher risk as compared to
general equity schemes as the portfolio is less diversified, i.e. restricted to specific sector(s) /
industry (ies).

1.4 Mutual fund investment fees:-

In mutual fund industry there are two type of fees available that are as follow.

A} Annual Operating Fees :

Range of this type of fee is approximate 1-3 % of fund under management.

This type of fee collect according to expense ratio.

B} Share Holder Fees :

This type of charges include commission of AMC , transaction charges and redemption

Charges as well.

1.5 Advantages of mutual funds :

Professional management
Portfolio diversification across companies & sectors
Reduction of risk
Low cost of operation
Lower transaction cost
Convenience & flexibility
Liquidity entry & exit at NAV
Transparency regular disclosure

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1.6 Disadvantages of mutual funds :

1} Likewise some other investment options risk is available in this option.Because in this
also equity factor available which may decrease value of NAV of mutual Fund and because
of that investor may fall in loss.

2} Investor cannot get more return for short term period, if He\she invest money through

3} SIP.Because of highly liquidity big amount of money remain in cash, because small
investor Are more. So, they can demand for their money. So, company cannot put all money
in Market.

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Introduction of Aditya Birla Sun Life Mutual Funds AMC

1.2.1) Introduction of company:-

Aditya birla sun life AMC limited (formerly known as birla sun life asset management
company limited), The investment manager of aditya birla sun life mutual fund (formerly
known as birla sun life mutual fund), is a joint venture between the Aditya Birla group and
the sun life financial inc. of Canada. The joint venture brings together the Aditya birla
Group’s experience.

It was established in 1994, Aditya birla sun life mutual fund is co-sponsored by aditya birla
capital limited (ABCL) and sun life (India) AMC investments inc.

With a far reaching network of 150 branches and other distribution channels, ABSLMF is
committed to deepening mutual fund penetration in the country. The company is ceaselessly
working to enhance the appeal of mutual funds across a wider set of investors and advisors
across India. Part of this effort includes introducing smart solutions, user-friendly services
and conveniences which simplify mutual fund processes with digitization for both – investors
as well as distribution partners. ABSLMF provides sector specific equity schemes, fund of
fund schemes, hybrid and monthly income funds, debt and treasury products and offshore
funds.

Aditya birla capital limited (ABCL) is the holding company of all the financial services
businesses of the Aditya Birla Group. With a strong presence across the life insurance, asset
management , private equity, corporate lending , structured finance, project finance, genral
insurance broking, wealth management, equity currency and commodity broking, online
personal finance management, housing finance, pension fund management and health
insurance business, ABSL is committed to serving the end-to-end financial services needs of
its retail and corporate customers under a unified brand __ Aditya Birla Capital.

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Key Information Of Aditya Birla Sun Life Mutual Fund:-

Key Information :

Mutual fund Aditya Birla sun Life Mutual fund

Setup Date Dec -23-1994

Incorporation Date Sep -05-1994

Sponsor Aditya Birla Capital LTD. / Sun Life (India) AMC Investment
Inc.

Trustee Aditya Birla Sun life trustee Private limited

Chairman Mr. Kumar Mangalam Birla

CEO / MD Mr. A. Balasubramaniam

CIO (Equity) Mr. Mahesh patil

CIO (DEBT) Mr. Maneesh Dangee

Compliance Officer Ms. Hemanti wadhwa

Investor Service Officer Ms. Keerti Gupta

Assets Managed Rs. 247529.12 Crore ( Mar-31-2018)

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Company’s philosophy-

Vision :

To be a leader and role model in a brode based and integrated financial services
business.

Mission :

To consistently pursue investor’s wealth optimization by:

Achieving superior and consistent investment results.

Creating a conducive environment to hone and retain Talent.
Providing customer delight.
Institutionalizing system- approach in all aspects of functioning.
Upholding highest standards of ethical values at all times.

Values:

Integrity
Commitment
Passion
Seamlessness
Speed

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SWOT Analysis of Aditya Birla Sun Life Mutual Fund

Strengths:

Strong brand recognitions.

Product innovation capabilities.
Strong financial returns.
Technological excellence.
Government support by way of tax concession for Mutual fund investor.

Weakness:

Complexity of operation.
Lengthy processing chain.
Poor distribution channel in rural area.

Opportunities:

Huge untapped market in semi-urban and rural area.

High level of savings habit among the people.
Growing e-commerce business.
Growth of core sector industries.

Threats:

The impact of foreign currency.

Increasing competition among the players.
High level of volatility in the stock market.
Possibility of more stringent regulation by SEBI, RBI, AMFI etc in futures.

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Functional department:

1} IFA Channel:

This IFA channel mobilizes mutual fund business from their individual investors, who have
already empanelled with birla sun life mutual fund. These IFA can sell other mutual fund
products also. They goes in to market and search new investors for investment.

2} Banking Channel:

Banks are also intermediaries who distribute fund and schemes of different AMCs. Some of
the banks that promote ABSL schemes. This bank gives suggestion to invest in that particular
AMC and on behalf of that they get some commission or other advantage from that AMC.

3} National distribution channel:

They deal with the distributors who have their presence nationally. A total of about NDs are
managed by the Bangalore branch ND channel of ABSLAMC LTD.

The major different between the ND channel and other channels is that the ND channel works
on a recommended list of product instead of all the available products.

4} Other Departments:

Investor education

Sales support

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CHAPTER2-INTRODUCTION OF “CUSTOMER AWARENESS”

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Customer awareness is a part of a company’s marketing & communications plan. It is a
process that helps an entrepreneur educates customers about his/her company, its
performances and the products or services his/her company delivers. A well-designed
awareness program ensures better customer engagement and protects consumer welfare.

Top Objectives of a Customer Awareness Program

 Understand which category of customers would be interested in the product or service

you’re planning to sell.
 Prepare an effective marketing and advertising plan to reach the target consumer
segment.
 Help customers find out your products and services.
 Convey a clear message explaining the strengths and benefits of your products.
 Gain consumer’s trust by helping them understand how the product will solve their
respective problems.

Steps to Building Customer Awareness

When building customer awareness, an entrepreneur determines his/her target market, uses a
very specific marketing tool or channels to engage and communicate with the consumers and
help them increase product and service knowledge. The three major steps that a customer
awareness program includes can be explained as below –

1. In the first stage, a company creates awareness by pointing out the pain point of the
customers. The company needs to talk more about the problem at this stage. The
intention is to make consumers aware of the prevailing problem if they’re not already.
Raise awareness using a very logical message.
2. Give customers a solution to that problem in the second step. Get customer’s attention
by presenting your solution as the best way to solve the respective problem.
3. Present your product or brand as the best solution to the problem in the third stage. As
the customers will know the problem they are facing by this time, it will be easy for
them to understand that they can overcome the problem with the help of your brand.

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Chepatr3:- Literature Review

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MR A Kotishwar (Prof Mohd Akbar Ali Khan)

Indian mutual funds have gained a lot of popularity from the past few years. Earlier only UTI
enjoyed the monopoly in this industry but with the passage of time many new players entered
the market, due to which the UTI monopoly breaks down and the industry faces a severe
competition. As the time passé this industry has become a buzz word in the Indian financial
system. So it is very important to know the investors behaviour. Investors option and
perceptions has been studied relating to various issues like type of mutual funds schemes,
main objective behind investing in mutual fund schemes, role of financial advisors and
brokers, investors option relating to factors that attract them to invest in mutual funds,
sources of information, deficiencies in the services provided by the mutual fund managers,
challenges before the Indian mutual fund industry etc.

Shobha and Shalini, 2015

Financial awareness plays a crucial role in the financial planning of individual. Proper
financial awareness leads to better financial planning. according to national proper financial
awareness leads to better financial planning is defined as the process of meeting ones life
goals through the proper management of personal finances . In other words ,it is a process of
taking necessary steps to ensure that an individual is equipped to accomplish his financial
goals which he has set out of archives and is prepared to deal constancies’ as well.

(Purohit and Rohella, 2015).

Organisation for Economic Co-operation and Development (OECD) defines financial

Awareness as a combination of awareness, knowledge, skill, attitude and behaviour necessary
to make sound financial decisions and ultimately achieve individual financial well-being.
Also, it is defined as “the process to inculcate the ability to understand personal financial
Well-being. It includes the awareness about financial products, market information, sources
Of getting financial knowledge and confidence of discussing financial issues, so that a
Person can plan for the future and make proper decisions to meet out the life events”

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(Ackert and Church, 2006).

In countries with diverse social and economic profiles, such as India, financial awareness
Is relevant for resource-poor people who operate at the margin and are vulnerable to
persistent downward financial pressures (Seth et al., 2010). More specifically, financial
awareness refers to the set of skills and knowledge that allows an individual to make
informed and effective decisions through their understanding of finances.
Financial awareness is mainly used in connection with personal finance matters. It often
entails the knowledge of properly making decisions pertaining to certain personal finance
areas, such as real estate, insurance, investing, saving, tax planning and retirement, and
involves intimate knowledge of financial concepts such as compound interest, financial
planning, the mechanics of a credit card, advantageous savings methods, consumer rights,
time value of money, etc. (Thilakam, 2012). Individuals making investing decisions face a

daunting task

PritiMane [1]

discussed the customer perception with regard to the mutual funds that the schemes they
preferred, the plans they are opting, the reasons behind such selections. This research dealt with
different investment options, which people prefer along with and apart from mutual funds, like
postal saving schemes, recurring deposits, bonds, and shares. Conclude that mutual fund linked
with share market and investors are not taking advice from authority advisor to lead them for
their investment in mutual fund so it creates the difficulty to select the mutual fund plan favorable
for them.

Noctor et al. (1992) defined the term financial awareness as “the ability to make informed
judgments and to take effective decisions regarding the use and management of money”.
Anthes and Most (2000) stated that “personal finance awareness is the ability to read,
analyze, manage and communicate about the personal financial conditions that affect

material well-being”. Financial awareness can be enhanced through financial education.

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OECD (2005) defines financial education as “the process by which financial consumers/
investors improve their understanding of financial products and concepts and, through
information, instruction and/or objective advice, develop the skills and confidence to become
more aware of the financial risks and opportunities, to make informed choices, to know
where to go for help and to take other effective actions to improve their financial well-being”.
Here, information includes providing consumers the facts, data and specific knowledge to
make them aware of financial opportunities, choices and consequences.

Ben Bernanke (2011)

highlighted the need for continual updating of financial awareness across all age groups
because of the dynamic nature of financial products and services and the changing needs
and circumstances of individuals with time. He observed that exposing young people to
financial concepts is particularly important, as they are vulnerable to the temptations of

taking excessive debt.

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CHAPTER-4] RESERCH METHODOLOGY

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Objective of the study:-

1 To evaluate awareness of people about mutual fund;

+2 To study the factor responsible for the preference of mutual funds as an investment
option.

3 To know what investment option does people select other than mutual fund.

1. Type of research:-

I have selected descriptive research as a type of research. Descriptive research describes

data and characteristics about the population being studied.

2. Sampling Size:-

Sample size in my research is 154 people.

3. Sampling Techniques:-

I have used convenience technique of nonprobability sampling to select the sample from
population.

4. Area of sampling:-

Area of sampling for my research is vastrapur, vasana, paldi, bodakdev and navrangpura.

5. Sampling Frame:-

Sampling frame is the list of sampling units from which a sample will be drawn. Sampling
frame is the random people.

6. Sampling element:-

A sampling element or sampling unit is a single member or unit of the target population. This
is the unit about which information will be obtained. Sampling unit of my research is random
people of Ahmedabad area.

7. Method of data collection :-

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1. Primary Data:-

The data, which are collected for the first time, directly from the respondents to the base of
knowledge & belief of the research, are called primary data4.

The data collected is through questionnaire & information provided by the respondent.

2. Secondary data:-

When data are collected & compiles in a published nature, it is called secondary data.

Secondary data for my research is the data collected from books, magazine, internet and
brochure of company.

8. Scope of study:-

The scope of project is mainly which purpose will serve. My project will serve. My project is
useful for study of awareness level of mutual fund among rural area near to Ahmedabad. This
project is helpful for reader to know about Aditya Birla mutual fund. It also covers
conclusions and recommendation to company to improve its awareness programme.

9. Limitation of study:-

1. Some respondents may have had personal bias due to which they may not have given the
correct information.

2. One of the limitations of the study is less time available.

3. The sample size taken is only 100 which may not result in very accurate results.

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CHAPTER 5] DATA INTERPRETATION & ANALYSIS

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5.1.1) GENDER FREQUENCY DISTRIBUTION

GENDER
Frequency PERCENT Valid per cent Cumulative
percept
Female 36 36.0 36.0 36.0

Valid Male 64 64.0 64.0 100.0

Total 100 100.0 100.0

INTERPRETATION:

The above graph and table shows that in this research project the male respondents are more .i.e.64%
male and 36% female respectively .

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5.1.2) AGE FREQUENCY DISTRIBUTION
Age

AGE
Frequency Percent Valid percent Cumulative
Percent
25 -35 20 20.0 20.0 20.0
36 – 45 4 4.0 4.0 24.0
Above 45 2 2.0 2.0 26.0
Valid
Less then
74 74.0 74.0 100.0
25

Total 100 100.0 100.0

Interpretation:

The above graph and table shows that in this research project the age group of less than 25
and 25-35 is with 74% and 20% respectively. And above 45 years only 2% responds.

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5.1.3) OCCUPATION FREQUENCY DISTRIBUTION
Occupation
OCCUPATION
Frequency Percent Valid Percent Cumulative
Percent
business 23 23.0 23.0 23.0
Job 56 56.0 56.0 79.0
Valid
Student 21 21.0 21.0 100.0

Total 100 100.0 100.0

Interpretation:-
The above graph and table show that in this research project the people with job and business
occupation is more with 56% and 23% respectively. And Student 21% respectively.

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5.1.4)ANNUAL INCOME FREQUENCY
DISTRIBUTION
INCOME

INCOME
Frequency Percentage Valid Percentage Cumulative
Percentage
2 - 5 La 31 31.0 31.0 31.0
5 - 8 La 5 5.0 5.0 36.0
8 - 12 L 5 5.0 5.0 41.0
Valid
Above 12 2 2.0 2.0 43.0
Below 2 57 57.0 57.0 100.0

Total 100 100.0 100.0

Interpretation: -
This graph shows out of 100 respondents nearly 57% of respondents have income level of
below 2 lakhs per year, around 31% of respondents have income level of 2-5 lakhs per year,
around 5% respondents have income of 5-8 and 8- 12 lakhs, around 2% respondents have
income of above 12 lakhs per annum .

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5.1.5) EDUCATION FREQUENCY DISTRIBUTION

EDUCATION
Frequency Percent Valid Percent Cumulative
Percent
Below 10 3 3.0 3.0 3.0
Decorate 1 1.0 1.0 4.0

Valid Graduate 57 57.0 57.0 61.0

Post Gra 39 39.0 39.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows out of 100 respondents nearly 57% of respondents are graduate, and rest
39% of respondents have completed their post graduate and 3% of respondents have below
10.

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5.1.6) Do you aware about mutual fund?

DO YOU AWARE ABOUT MUTUAL FUND?

Frequency Percent Valid Percent Cumulative
Percent
No 17 17.0 17.0 17.0

Valid Yes 83 83.0 83.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows out of 100 respondents 83% of respondents are aware about mutual fund
and 17% of respondents are not aware about mutual fund.

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5.1.7) IF YES SO IN WHICH COMPANY FREQUENCY DISTRIBUTION

IF YES SO IN WHICH COMPANY/COMPANIES

Frequency Percent Valid Percent Cumulative
Percent
Aditya B 37 37.0 37.0 37.0
Bank 1 1.0 1.0 38.0
Depend o 1 1.0 1.0 39.0
HDFC MF 21 21.0 21.0 60.0
I said n 1 1.0 1.0 61.0
ICICI MF 6 6.0 6.0 67.0
L&T MF 2 2.0 2.0 69.0
Na 1 1.0 1.0 70.0
Nj india 1 1.0 1.0 71.0
Valid
No 1 1.0 1.0 72.0
Not in m 1 1.0 1.0 73.0
Q we 1 1.0 1.0 74.0
Real est 1 1.0 1.0 75.0
Reliance 15 15.0 15.0 90.0
SBI MF 8 8.0 8.0 98.0
Sundaram 1 1.0 1.0 99.0
UTI MF 1 1.0 1.0 100.0

Total 100 100.0 100.0

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Interpretation:
This graph shows that from all the respondents 37% are investing Aditya Birla Sun life AMC
and 21% in HDFC MF. Other companies mutual fund are less concerned by investors.

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5.1.8) HOW MUCH DO YOU SAVE ANNUALLYFREQUENCY DISTRIBUTION

HOW MUCH DO YOU SAVE ANNUALLY?

Frequency Percent Valid Percent Cumulative
Percent
10 – 15 14 14.0 14.0 14.0
15 – 20 3 3.0 3.0 17.0
5 -10 % 41 41.0 41.0 58.0
Valid
Less tha 36 36.0 36.0 94.0
More tha 6 6.0 6.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows out of 100 respondents, around 41% and 36% of respondents saves 5-10%
and less than-5% of their income annually. Only 3% of respondents save 15-20% of their
income annually.

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5.1.9) WHAT ARE THE FACTORS TO WHICH YOU GIVE PRIORITY WHEN
YOU INVEST? FREQUENCY DISTRIBUTION

WHAT ARE THE FACTORS TO WHICH YOU GIVE PRIORITY WHEN YOU
INVEST?
Frequency Percent Valid Percent Cumulative
Percent
High Ret 42 42.0 42.0 42.0
Less Ris 9 9.0 9.0 51.0
Liquidit 8 8.0 8.0 59.0
Valid
Marketab 4 4.0 4.0 63.0
Safety 37 37.0 37.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows that 100 respondents out of them 42% respondents are select high return
when they invest in mutual funds. and 37% respondents are give a priority to safety when
they thinking about invest.

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5.1.10 HOW WOULD YOU PREFER TO MAKE YOUR INVESTMENT IN MUTUAL
FUND FREQUENCY DISTRIBUTION

HOW WOULD YOU PREFER TO MAKE YOUR INVESTMENT IN MUTUAL

FUND?
Frequency Percent Valid Percent Cumulative
Percent
Direct 2 2.0 2.0 2.0
Finciala 1 1.0 1.0 3.0
Through 18 18.0 18.0 21.0
ThroughA 8 8.0 8.0 29.0
Valid
Through 1 1.0 1.0 30.0
Throughb 1 1.0 1.0 31.0
ThroughB 69 69.0 69.0 100.0

Total 100 100.0 100.0

Interpretation:
This graph shows that out of 100 respondents 69% respondents prefer through brokers to
make their investment in mutual fund.

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5.1.11} RETURN POTENTIAL FREQUENCY DISTRIBUTION

RETURN POTENTIAL
Frequency Percent Valid Percent Cumulative
Percent
1 8 8.0 8.0 8.0
2 3 3.0 3.0 11.0
3 29 29.0 29.0 40.0
Valid
4 34 34.0 34.0 74.0
5 26 26.0 26.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows that out of 100 respondents , Around 34% respondents are agree or 26%
respondents are highly agree for return potential is advantage of mutual funds.

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5.1.12} LIQUIDITY FREQUENCY DISTRIBUTION

LIQUIDITY
Frequency Percent Valid Percent Cumulative
Percent
1 9 9.0 9.0 9.0
2 8 8.0 8.0 17.0
3 24 24.0 24.0 41.0
Valid
4 31 31.0 31.0 72.0
5 28 28.0 28.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows that out of 100 respondents 31% respondents are agree and 28%
respondents are highly agree for liquidity is advantage of mutual funds.

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5.1.13} FLEXIBILITY FREQUENCY DISTRIBUTION

FLEXIBILITY
Frequency Percent Valid Percent Cumulative
Percent
1 9 9.0 9.0 9.0
2 4 4.0 4.0 13.0
3 23 23.0 23.0 36.0
Valid
4 36 36.0 36.0 72.0
5 28 28.0 28.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows that 36% respondents are agree for flexibility is advantage for mutual
funds, and 28% respondents are highly-agree and accept that flexibility is a advantage of
mutual fund.

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5.1.14} LOW COST FREQUENCY DISTRIBUTION

LOW COST
Frequency Percent Valid Percent Cumulative
Percent
1 9 9.0 9.0 9.0
2 7 7.0 7.0 16.0
3 34 34.0 34.0 50.0
Valid
4 24 24.0 24.0 74.0
5 26 26.0 26.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows out of 100 respondents 24% respondents are agree for low cost is
advantage of the mutual funds. And only 7% respondents are disagree for the low cost .

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5.1.15} TAX BENEFIT FREQUENCY DISTRIBUTION

TAX BENEFIT
Frequency Percent Valid Percent Cumulative
Percent
1 7 7.0 7.0 7.0
2 7 7.0 7.0 14.0
3 25 25.0 25.0 39.0
Valid
4 24 24.0 24.0 63.0
5 37 37.0 37.0 100.0

Total 100 100.0 100.0

INTERPRITATION:-
This graph shows that out of 100 respondents 37% of respondents are highly-agree for tax
benefit is advantage of mutual fund. And 24% respondents are agree and believes that by
mutual fund get advantage of tax benefit.

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5.1.16} DIVERSIFICATION FREQUENCY DISTRIBUTION

DIVERSIFICATION
Frequ Percen Valid Cumulative
ency t Percent Percent
1
(Highlydisag 5 5.0 5.0 5.0
ree)

V2 6 6.0 6.0 11.0

(Disagree)
al
3
36 36.0 36.0 47.0
i (Neutraal)

d 4
31 31.0 31.0 78.0
(Agree)
5
22 22.0 22.0 100.0
(Highly agree)

Total 100 100.0 100.0

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Interpretation:-
This graph shows that 36% respondents out of 100 are neutral and
31% respondents are agree for diversification is the advantage of
mutual fund.

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5.1.11 What is the criteria before you investing in particular
mutual fund schemes

What is the criteria before you investing in particular mutual fund

schemes
Frequency Percept Valid Percent Cumulative
Percent
Expert
43 43.0 43.0 43.0
Advice
Past

Valid performanc 45 45.0 45.0 88.0

e
Ratings 12 12.0 12.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows out of 45% respondents are checking past performance of the fund, around
43% respondents are checking expert advice , around 12% respondents are checking rating .

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5.1.17} CAN MUTUAL FUND BE VIEWED AS RISK FREE INVESTMENT
FREQUENCY DISTRIBUTION

CAN MUTUAL FUND BE VIEWED AS RISK FREE INVESTMENT?

Frequency Percent Valid Percent Cumulative
Percent
No 40 40.0 40.0 40.0

Valid Yes 60 60.0 60.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows out of 100 respondents 60% respondents who invest in mutual fund are
accepting that the mutual fund is risk free. And 40% respondents does not accept the mutual
fund is risk free.

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5.1.18 Is there are nee for creating awareness among the public about the benefits of
investing in mutual fund

IS THERE ARE NEED FOR CREATING AWARENESS AMONG THE PUBLIC

ABOUT THE BENEFITS OF INVESTING IN MUTUAL FUND?
Frequency Percent Valid Percent Cumulative
Percent
No 10 10.0 10.0 10.0

Valid Yes 90 90.0 90.0 100.0

Total 100 100.0 100.0

Interpretation:-
This graph shows out of 100 respondents ,90% respondents who invest in mutual fund are
accepting that there is a need of spreading awareness of mutual fund in rural area and 10%
respondents are saying there is no need for awareness

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5.1.19) Do you accept the fact that investing in mutual funds will lead to the economic

Do you accept the fact that investing in mutual funds will lead to the
economic

Frequency Percent Valid Percent Cumulative

Percent
No 9 9.0 9.0 9.0
Valid Yes 91 91.0 91.0 100.0
Total 100 100.0 100.0

Interpretation:-
This graph shows out of 100 respondents 91% respondents who invest in mutual fund are
accepts that investment in mutual fund leads to economic development, only 9% respondents
believes that investment in mutual fund does not leads to economic development .

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CHAPTER 6] TESTING OF HYPOTHESIS

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ANOVA

H0:There is no significance difference between occupation and income with Aditya Birla Sun
Life Mutual Fund.

H1:There is significance difference between occupation and income with Aditya Birla Sun
Life Mutual Fund

ANOVA
Occupation
Sum of df Mean Square F Sig.
Squares
Between Groups 27.564 5 5.513 13.935 .000
Within Groups 37.186 94 .396
Total 64.750 99

Here,

This is the table that shows the out put of ANOVA analysis and whether there is a statically
significance difference between our group means. we can see that the significance value is
.000, which is less 0.05.

; H1 is accepted

; H0 is rejected

H1: There is significance difference between occupation and income with Aditya Birla Sun
Life Mutual Fund

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CHAPTER 7] FINDINGS &
RECOMMENDATIONS

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 FINDINGS

1) Form the study, It is observed that 64% of the respondents are male.
2) Found that in survey, 74% of user age group less-then25.
3) Around 57% of respondents have income level of below 2 lakhs per year.
4) As par study out of 100 respondents 56% respondents are doing a job.
5) As per survey 41% respondents save annually 5-10% and 6% respondents who
save more than 20% on their income.
6) Form of the study 57% respondents are graduate and 39% are post graduate.
7) Out of the 100 respondents 83% respondents are aware about mutual fund which
is best part of the survey.
8) Out of 100 respondents ,42% and 37% respondents give a priority high return
and safety when they invest in mutual fund.
9) As per study 31% respondents are agree for advantages of liquidity,34%
respondents are agree for return potential and 36% respondents are agree for
flexibility and 37% respondents are highly-agree for tax benefit.
10) As par study 60% respondents are believe that mutual fund be viewed as risk free
investment
11) As per frequency of form 90% respondents are accept that need for creating
awareness among the public about the benefits of investing in mutual fund.
12) As par respondents of this form 45% of respondents see the past performance
before investing in particular mutual fund scheme.

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 RECOMMENDATIONS

Form the survey carried out for my research purpose I have come to following
Recommendations:-

 Form my survey it can be analysed that there is a need for creating awareness
amongst rural area of Ahmedabad.
 And while creating awareness the asset management companies can get good business
out of it.
 Respondents gives a priority high return ,safety and less-risk the AMC should
consider this variables in offering new funds or schemes.
 Mutual Fund Company should target more and more young investors as they are
potential customers.
 AMC can provide digital platform for betterment of marketing of mutual fund.
 AMC can reward its agents and advisors for creating a good distribution channel by
giving bonuses, tours and holidays.
 For making a good customer relationship management company can connect with
customers by wishing birthdays and anniversary through digital platform.
 For new NFO and new schemes company can arrange a meeting or promotional event
about awareness of customers and training of agents.

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CHAPTER8:- CONCLUSION

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In this 45 days Summer Internship, I have learned a lot about Mutual Fund and market of it.
This project consists of the awareness about mutual fund in rural Area of Ahmedabad city. I
have conducted the survey about it and made this project which is divided in two parts.

While some respondents says that they have knowledge about mutual funds but they doesn’t
invest in it because of their thought that they do not have enough savings, they find mutual
funds risky, they have not thought about it.

Flexibility, low cost, liquidity, return potential and tax benefit are the advantages of mutual
fund who attract the more investors.

Over all it is concluded that most of the people are aware about mutual funds in this area but
not investing in it that much.

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