EXECUTIVE SUMMARY

Indias economy is highly developing. The development is taken place due to the growth in the financial system. This financial system provides the background to various investors regarding varied options to invest. Thus, development of the economy depends on how these investors invest for the well being in long run. As financial markets become more sophisticated and complex, investors need a financial intermediary who provides the required knowledge and professional expertise on successful investing. Mutual Funds represent perhaps the most appropriate investment opportunity for investors. No wonder the concept of Mutual Fund was initially developed in the U.S. market, but the entry of the concept in the Indian Financial Market was in the year 1964 with the formulation of the UTI, at the initiative of the RBI and Govt. of India. For most people, money is a delicate matter and when it comes to investing they are wary. Simply because there are many investment options out there, each out promising the other. An important question facing many investors is whether to invest in Banks, National Savings, Post office, Non-banking finance companies, Fixed deposits, Shares etc. or to invest distinctively in Mutual Funds. It has been perceived that there is huge potential market in the region of U.P. Thus an exploratory research with the hypothesis The region of U.P. being progressively industrializing & developing should provide a large & wider market share for Mutual Fund has been done. Thus the purpose of this research was to find why people do not actively invest in mutual fund in spite of various benefits like Professional management, Diversification, Convenience liquidity, Flexibility, Tax benefits etc. as well as to find out potential of business of KARVY in distribution of Mutual Fund in Jhansi.

After performing the detailed exploratory research by interviewing different persons who act as investors like Insurance advisor and Post office advisor etc. with the help of questionnaire, certain facts were revealed regarding the view about Mutual Funds in the mind of investors. I have observed that approximately 60% of the people are unaware of Mutual Funds but most of them are interested to know about Mutual Funds and ready to attend seminar 1

arranged by KARVY. They are also interested to work with KARVY if sufficient information is provided to them about Mutual Fund and KARVY. People from service class prefers safety of income plus the regular income as well as tax benefits while on the other hand Professional and Businessman focus on high return with some risk. For growth and development of the Mutual Fund Industry, the misconception regarding Mutual Fund should be removed & the awareness for the same should be made.

TABLE OF CONTENTS
1. Introduction...4

2. Objectives of study...5

3. Benefits of survey.6

4. Company profile

..7-12

5. Mutual funds..13-25

6. Research Methodology......26-29

7. Analysis and interpretation..30-39

8. Findings..40-41

9. SWOT Analysis.42-43

10. Limitations44-45

11. Conclusion 46-47

12. Recommendations.....48-49

13. Appendix50 References & Bibliography..51 Questionnaire52-55 3

INTRODUCTION
A small, sincere and dedicated step towards the fulfillment of my responsibilities and duties ensured me a giant leap to accumulate knowledge and real life exposure to business during my summer training period. My first experience of the corporate world started with a well reputed company in finance sector, KARVY STOCK BROCKING LIMITED. The project assigned to me was challenging and very knowledgeable from the marketing point of view In relation to the project titled."Potential of Mutual fund in Financial Sector My work was to find out the potential of mutual fund in financial

market.there I had to collect the response from the different persons and to know the degree of awareness about mutual fund .there I came to know that how much people are interested in investment in mutual funds and how they rate mutual fund among other financial products. There I also came to know about current potential of KARVY MUTUAL FUND among other mutual funds.

OBJECTIVE
Any activity done without an objective in a mind cannot turn fruitful. An objective provides a specific direction to an activity. Objectives may range from very general to very specific, but they should be clear enough to point out with reasonable accuracy what researcher wants to achieve through the study and how it will be helpful to the decision maker in solving the problem. The objectives of my research is basically divided into two categories.

Primary Objective:
To find out market potential of KARVY STOCK BROKING LIMITED.

Secondary Objectives:
Following are secondary objectives. To assess an awareness of mutual funds in Jhansi. To find out level of awareness of mutual funds in Jhansi. To find out how many investment advisors are interested in dealing of mutual fund. To find out how many investment advisors are willing to work with KARVY.

BENEFITS OF SURVEY
Marketing Research being a logical process definitely follows our predetermined sequence or steps in order to obtain the desired results or outcomes. Though the entire process of Marketing Research is quite complex and requires a considerable degree of knowledge and skill, the step of the Problem Formulation is the most challenging and critical one for the researcher as well as the research. It is rightly said that a problem, well defined is half solved. In todays competitive world companies can not afford to reactive, instead the trend is toward proactive. It is due to the increasing competition that the companies can not afford to undertake research until something goes wrong. This can curtail the future growth or even affect the very existence of the organization seeing to the trend of being proactive in the future; companies are allocating more resources to the disciplines of research. In such case it becomes a duty of researcher to ensure that the organization gets an optimum return on the resources it has invested. Thus, Problem Formulation assumes great importance in Marketing Research. The Marketing Research project undertaken by me for the Karvy Stock broking limited encompasses within its scope, the study of The Potential of mutual fund in financial market

COMPANY PROFILE
KARVY, is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million comprising the who is who of Corporate India. KARVY covers the entire spectrum of financial services such as Stock broking, Depository Participants, Distribution of financial products mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance, placement of equity, IPOs, among individual investors in various cap acities, and provides

investor services to over 300 corporate, Karvy has a professional management

team and ranks among the best in technology, operations and research of various industrial segments.|

Background

In starting it was only offering auditing and taxation services. Later, it acts into Karvy Consultants Limited was established in 1982 at Hydrabad. It was established by a group of Hydrabad-based practicing Chartered Accountants. At initial stage it was very small in size. It was started with a capital of Rs. 1,50,000. the Registrar and Share transfer activities and subsequently into financial services and other services like Financial Product Distribution, Investment Advisory Services, Demat Services, Corporate Finance, Insurance etc. All along, Karvy strong work ethics and professional background leveraged with Information Technology enabled it to deliver quality to the individual. A decade of commitment, professional integrity and vision helped Karvy achieving a leadership Position in its field when it handled largest number of corporate and retail that proved to be a sound business synergy. Today, Karvy has access to millions of Indian shareholders, besides companies, banks, financial institutions and regulatory agencies. Over the past one and half decades, Karvy has evolved as a veritable link between industry, finance and people.

Today, company In January 1998, Karvy became first Depository Participant in Andhra Pradesh. An ISO 9002 Company, Karvys commitment to quality and retail reach has made it an Integrated Financial Services Company. has 230 branch offices in 164 cities all over the India. The company adds 5 new offices every month to the companys ever growing national network in every nook and corner of the country. The company service over 16 million individual investors, 180 corporate and handle corporate disbursements that exceed Rs.2500 Crores.

Mission Statement of Karvy

An organization exists to accomplish something or achieve something. The mission statement indicates what an organization wants to achieve. The mission statement may be changed periodically to take advantage of new opportunities or respond to new market conditions. Karvys mission statement is To Bring Industry, Finance and People together. Karvy is work as intermediary between industry and people. Karvy work as investment advisor and helps people to invest their money same way Karvy helps industry in achieving finance from people by issuing shares, debentures, bonds, mutual funds, fixed deposits etc. Companys mission statement is clear and thoughtful which guide geographically dispersed employees to work independently yet collectively towards achieving the organizations goals.

Vision of Karvy
Companys vision is crystal clear and mind frame very directed. To be pioneering financial services company. And continue to grow at a healthy pace, year after year, decade after decade. Companys foray into IT-enabled services and internet business has provided an opportunity to explore new frontiers and business solutions. To build a corporate that sets benchmarks for others to follow.

Karvy Values:
Integrity Responsibility Reliability Unity Understanding Excellence Confidentiality

Karvy has adequate internal control systems and procedures commensurate with the size nature of its business. These system and procedures provide reasonable assurance of maintenance of proper accounting records, reliability of financial information, protection of resources and safeguarding of assets against unauthorized use.

KARVY SERVICES

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Stock broking Demat services Investment product distribution Investment advisory services Corporate finance & Merchant banking Insurance Mutual fund services IT enabled services Registrars & Transfer agents Loans

MARKETING STRATEGY OF KARVY Market Positioning:

Market positioning statements of Karvy are At Karvy we give you single window service and We also ensure your comfort. So, Karvy focus on the consumers who prefer almost all investment activities at same place by providing number of various financial services. At Karvy a person can purchase or sell shares, debentures etc. and at the same place also demat it. Karvy also provides other investment option to the same person at same place like Mutual Fund, Insurance, Fixed Deposit, and Bonds etc. and help the person in designing his portfolio. By this way Karvy provides comfort to its customers. Karvy is also positioned according to Ries and Trout. Karvy is promoted as a no. 1 investment product distributor and R & T agent of India.

Target Market:

Karvy uses demographic segmentation strategy and segment people based on their occupation. Karvy uses selective specialization strategy for market targeting. Target person for the Karvy Stock Broking and Karvy Investment Service are persons who can work as sub-broker for the companies. Companies focus on Advisors of Insurance and post office, Tax consultants and CAs for making sub-broker.

Marketing channel System:

Karvy uses one level marketing channel for investment product distribution. Sub-brokers work as intermediary between consumer and company. Company has both forward and backward flow of activity through channel. Company distributes stationery, brokerage, and information forward to its sub-broker. The sub-brokers send filled forms, queries, amount of investment etc. back to the company. 10

Training Channel Members:

Karvy provides training to the sub-brokers because they will be viewed as the company by the investors. The executives of Karvy explain various new schemes of investment to the sub-brokers with its objective, risk factors and expected return. Company also periodically arrange seminar to guide sub-brokers.

Advertising and Promotion:

The objective of advertising of Karvy is to create awareness about services of Karvy among investors and sub-brokers and increase sub-brokers of Karvy. Company doesnt give advertisement in media like TV, Newspapers, and Magazines etc. Karvys advertisement is made indirectly by the companies associate with it. Karvy is R & T agent of around 700 companies. They publish name, address and logo of Karvy on their annual report. Karvy also publish its weekly Stock Market Newsletter Karvy Bazaar Baatein and monthly magazine The Finapolis to guide investors and sub-brokers about market.

11

Achievements of Karvy:
Largest mobilizer of funds as per PRIME DATABASE First ISO - 9002 Certified Registrar in India A Category- I Merchant banker A Category- I Registrar to Public Issues Ranked as "The Most Admired Registrar by MARG Handled the largest- ever Public Issue - IDBI Strategic tie-up with Jardine Fleming India Securities Ltd Handled over 500 Public issues as Registrars Handling the Reliance Account which accounts for nearly 10 million account holders First Depository Participant from Andhra Pradesh

12

MUTUAL FUNDS

13

MUTUAL FUND A GLOBALLY PROVEN INVESTMENT

Worldwide, the mutual fund has a long and successful history. The popularity of mutual fund has increased manifold. In developed financial market, like US mutual funds have almost overtaken bank deposits and total assets of over US $ 3 trillion. In India, Mutual Fund industry started with the setting up of UTI in 1964. Public sector banks and financial institution began to establish Mutual Funds in 1987. The private sector and foreign institutions were allowed to set up Mutual Fund in 1993.

WHAT IS 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.

Critical View About Mutual Fund Advantages:

1. Portfolio Diversification:

Each investor in a fund is a part owner of all the funds assets, thus enabling investor to hold a diversified investment portfolio even with a small amount of investment, which would otherwise require big capital.

2. Professional Management:
Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyze the performance and prospect of companies and selects suitable investments to achieve the objectives of the scheme. 14

3.

Diversification:

Mutual Fund invests in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because all stock can not go through a downtrend at the same time and in the same proportion. You achieve this diversification through a mutual fund with powerless money that you can do on your own.

4.

Reduction of Transaction Cost:

The investors bear all the cost of investing such as brokerage or custody of securities. When going through the fund investor has the benefit of economies of scale; the funds pay lesser cost because of larger volumes, a benefit passed on to its investors.

5.

Liquidity:

By investing in Mutual Funds the investors can cash their investment by selling their units to the fund if open-ended, or selling them in the stock market if the fund is close ended.

6.

Convenience & Flexibility:

Mutual Funds Companies offer investor to transfer their holding from one scheme to other.

7.

Tax Benefits:

The investors are totally exempt from paying any tax on the income they receive from the Mutual Funds.Investment up to 10000 in ELSS qualifies for tax rebate of 20%.

8.

Regulatory oversight:
investors from

Mutual funds are subject to many government regulations that protect fraud.

9.

Convenience:

You can usually buy mutual fund shares by mail, phone, or over the Internet.

15

Limitations:

1. No Control over Costs:

An investor in a mutual fund has no control over the overall cost of investing. He/she has to pay investment management fees as long as he/she remains with the fund. Fees are payable even while the value of the investment may be declining.

2. No Tailor made Portfolios: Investors who invest on their own can build their own portfolios of shares and bonds and other securities. Investing through fund means he/she delegates this decision to the fund managers.

3. Managing a Portfolio of Funds:

Availability of a large number of funds can actually mean too much choice for the investor. He/she may again need advice on how to select a fund to achieve his/her objectives, quite similar to the situation when he/she has to select individual shares or bonds to invest in.

4. Entry and Exit Cost:

When large bodies like a fund invest in shares, the concentrated buying or selling often result in adverse price movements i.e. at the time of buying, fund has to pay high and vise-versa.

5. No Guarantees:
No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money.

16

Impact of Macro Factors on Mutual Fund:

1. Economical Factor:
Earnings and Income level of Investors/Citizens have greater impact on investment in mutual fund.Higher income of citizens have larger demand of mutual fund.

2. Social Factor: Social factor includes living standerd of people.Higher living standerd of citizens demands for more investment in mutual funds that lead to more investment.

3. Political and Legal Factor: Policies and rules of Government decides about the transparency and credibility of mutual fund.Relaxetation in norms motivates investors to invest more in mutual funds.

MUTUAL FUND CYCLE

[Fig.9: Mutual Fund Cycle] [Source: amfiindia.com]

17

From the given cycle, it can be observed clearly that how the money from the investors flow and they get returns out of it. With a very small amount of fund, investors pool their money with fund managers.

After studying the market, the fund manager invests money of the investors in various securities like shares, bonds, debentures, government securities etc. to achieve goal of the investors. With ups and downs in the market returns are generated and they are passed on to the investors in form of dividend or capital gain or lost. The above cycle is very clear and also very effective. The fund manager while investing on behalf of investors takes into consideration various factors like time, risk; amount etc. so that he/she can make proper investment decision.

18

Types of Mutual Fund

Types of Mutual Fund

By Objective

Equity Fund

Debt Fund

Balanced Fund

Money Market

Gilt Fund

By Duration

Open Ended

Close Ended

Interval

By Load

Load Fund

No Load Fund Other Fund

Tax Saving

Index Fund

Sector Fund

Comm. Fund

Offshore

19

1. By Objective:
Investment goals vary from person to person. While somebody wants security, others might give more weightage to returns alone. Somebody else might want to plan for his childs education while somebody might be saving for the proverbial rainy day or even life after retirement. With objectives defying any range, it is obvious that the products required will vary as well. So, Mutual funds can be classified based on the objectives of the investor. (a).

Equity Fund:

Equity funds invest a major portion of their corpus in equity shares issued by companies. NAV of equity funds are fluctuated by fluctuation in price of shares that it holds. So there is a high risk as well as high return in equity fund. Potential to earn in such funds is higher when they are invested for long term.

The leading example of such funds are:

Prudential ICICI Growth Plan, Tata Pure Equity Fund, Reliance Vision, Franklin India Prima Fund etc.

(b).

Debt Fund:

Debt funds invest in debt instruments debt instruments issued by governments, private companies, banks and financial institutions. By investing in debt, these funds target low risk and stable income investors. These funds are low risk low return funds.

The leading examples are:

Birla Income Plus, Principal Income Fund, HDFC Income Fund, UTI Bond Fund etc. 20

(c).

Balanced Fund:

A balanced fund is one that has a portfolio comprising debt instruments as well as preference and equity shares. The idea is to reduce volatility of funds, while providing some upside for capital appreciation. They are best suitable for the people looking for a combination for capital appreciation and regular income and best time spend for such investment is more than 3 years.

The leading examples are:

Prudential ICICI Balanced Fund, Birla Balance Fund, Franklin India Balance Fund, Sundaram Balance Fund etc.

(d).

Money Market Fund:

Money market funds invest in securities of a short-term nature, which generally means securities of less than one-year maturity such as Treasury Bills issued by governments, Certificates of deposit issued by banks and Commercial paper issued by companies. The major strength of money market funds are the liquidity and safety of principal that the investors can normally expect from short term investments.

The leading examples are:

Prudential ICICI Liquid Plan, Templeton India Liquid Fund, Grindlays Cash Fund etc.

(e).

Gilt Fund:

These funds are sort of government funds wherein the investments are made in debt instrument of government, which carry no risk of non payment of interest as the RBI manages the payment of interest and principal on the investments. These funds are best suited for regular income and long term investment objectives.

21

The leading examples are:

Prudential ICICI Gilt Fund, Tata Gilt Securities Fund, Templton India Government Securities Fund etc.

2. By Duration: (a).

Open-ended Fund:

An open ended fund 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 NAV related prices which are declared daily basis. The key feature of this fund is liquidity.

(b).

Close-ended Fund:

A close ended fund 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 initial public issue and thereafter they can buy or sell units on stock exchange where the units are listed at NAV. These mutual fund schemes disclose NAV generally on weekly basis.

(c).

Interval Fund:

Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre determined intervals at NAV related prices.

22

Risk Return Grid

Risk Tolerance/Return Expected Low Debt Partially Medium Debt, Partially Equity Bank/ Company FD, Debt based Funds Balanced Funds, Some Liquidity, Better PostTax returns Liquidity, Better PostFocus Suitable Products Benefits offered by MFs

Diversified Equity Funds and Tax returns, Better some debt Funds, Mix of shares and Fixed Deposits Capital Market, Equity Funds Management, Diversification Diversification, Expertise in stock picking, Liquidity, Tax free dividends

High

Equity

(Diversified as well as Sector)

[Table11: Risk Return Grid of various MF] 3. By Load: (a).

Load Fund:

Marketing of new mutual fund scheme involves initial expenses. These initial expenses may be recovered from the investors by entry or exit load. (i).

Entry Load or Front-end Load:

If initial expenses recovered from investors at the time of investors entry into the fund, by deducting a specific amount from his initial contribution it is called Entry Load.

(ii).

Exit Load or Back-end Load:

If initial expenses recovered at the time of the investors exit from the scheme, by deducting a specified amount from the redemption proceeds payable to the investor it is called exit load.

(iii).

Deferred Load:

The load amount charged to the scheme over a period of time is called a deferred load. 23

(b).

No Load Fund:

Funds that dont charge entry, exit, or deferred load or any other charges for sales expenses are called no load funds.

Now, generally all Mutual Fund companies charge 2 to 2.5% entry load on equity fund. Generally there is no exit load on equity and sectoral funds to maintain liquidity of that funds. Generally there is no entry load on gilt scheme and income fund.

There is 0.25 to 1% exit load on gilt and income fund if investors exit from fund before specified time which is generally 3 to 6 months.

4. Other types of fund: (a). Tax Saving Funds: These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. E.g. Equity Linked Saving Scheme (ELSS). Pension schemes also offer tax benefits.

The leading examples are:

Prudential ICICI Tax Plan, Templeton India Pension Plan, Franklin India Taxshield etc.

(b). Index Funds: Index Funds replicate the portfolio of a particular index such as 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. NAV of such funds are changed accordance with the change in the index.

24

The leading examples are Birla Index Fund:

HDFC Index Fund, Prudential ICICI Index Fund

(C). Sector Funds: These are the funds which invest in the securities of only those sectors or industries as specified in the offer documents. E.g. Pharmaceuticals, Software, Petroleum etc. These types of funds are more risky compared to diversified funds.

The leading examples are:

Birla IT Fund, Pru. ICICI FMCG Fund, Franklin India Pharma Fund etc.

(d). Commodity Funds: Commodity funds invest into the different commodities directly or through shares of commodity companies. E.g. Commodity fund invest in gold or shares of gold mines. Commodity funds have not yet developed in India.

(e). Off Shore Funds: These funds invest in equities in one or more foreign countries there by achieving diversification across the countrys borders. However they also have additional risks such as the foreign exchange rate risk and their performance depends on the economic conditions of the countries they invest in.

25

RESEARCH METHODOLOGY

26

RESEARCH METHODOLOGY

1. Research Design:
A research design is a pattern or an outline of a research projects working. It is a statement of only the essential elements of a study, those that provide the basic guidelines for the details of the project. It comprises a series of prior decision that taken together provide master plans for executing a research projects.

A research design serves as a bridge between what has been established i.e., the research objectives and what is to be done, in conduct of the study to relish those objectives. If there were no research design, the research would have only foggy notions as about what is to be done. I have used Cross-Sectional Design of Exploratory Type. The research is of both qualitative as well as quantitative type.

Cross-Sectional Design:
A cross-sectional research design is concerd with a sampel of elements from a given population.Data on a number of characterstics from the sample element are collected and analysed.Cross-Sectional research design involves the collection of data from any given sampel of population elements only once.

Exploratory Reaserch Design:

In exploratory research design main focus on the discovery of ideas.It is generally based on secondary data that are readly available.It does not have a formal or rigid design as It ,ay have to change the focus or direction ,dependingon the availity of new ideas and relationship among variables.

2.

Unit of Analysis:

Investors are taken as a single unit in financial sector.Investors are individually surveyed and questioned about to get information related to potential of mutual fund.

27

Characteristics of interest:
Advisors knowledge about Mutual Fund Advisors knowledge about Karvy Advisors interest in getting knowledge of Mutual Fund Investors willingness to deal in Mutual Fund with Karvy Investors preference in selecting tax saving instrument of investment Investors preference in selecting dealer Investors knowledge about mutual fund. Investors trends to avoid risks by investment in Banks fixed deposits instead of mutual funds. There are various factors that affect the trends of investment in mutual fund. The factors are Economical, Siocial, Political and Legal, Demographic and Cultural factors.

3:

Sources of Data:

There are two Sourses of data. That are-

a.

Primary Source:

The primary data is collected using sampling method and by survey using questionnaire. Questionnaires are filled by Correspondent(Investors) individually. Surveys are done in various parts of Jhansi including rural and urban part also.

b.

Secondary Source:

Secondary data includes information regarding present market scenario, Information regarding Mutual Funds and competitors are collected from Internet, Magazines and News papers and books.

4.

Sample Planning:

Sample Size: 100 units Sample Extent: Jhansi. (including rural and urban part of Jhansi. )

28

Sampling Design:
A Sample Design is a definite plan for obtaining a sample from a given population. It refers to the technique or method the researcher would adopt in selecting items for the sample. I have used both Convenience Sampling Method.

Convenience Sampling method.

In convenience sampling selection, the sampling units are chosen on the basis of convenience or accebility.It is called accidental samples because the sample - units enter by accident. This is also known as a sample of the man in the street i.e., selection of units where they are Sample units are selected because they are accessible.

5.

Data Collection Method:

I have used Survey Method to collect data. I have collected data using questionnaire.

Questionnaire Plan
I have used Structured Questionnaire for gathering the required data through contacting respondent personally.

Type of Information:
I have collected Fact, Awareness, Attitude, Future action plan and reason using questionnaire.

Type of Questions:
Close-ended questions of Dichotomous and Multiple Choice type are asked in the questionnaire for data collection.

6.

Data Analysis & Interpretation:

Data Analysis is based on the data collected by way of Questionnaires. From the collected data findings are extracted. The data is tabulated and frequency distribution chart is prepared.

29

ANALYSIS AND INTERPRETATION

30

ANALYSIS AND INTERPRETATION

1. Number of Male & Female:-

MALE 78

FEMALE 22

22

MALE FEMALE

78

[figure:01-ratio of male and female in sample size.]

31

2. Age Classification

BELOW 30 Yrs. 21

31-40 Yrs. 49

41-50 Yrs. 18

ABOVE 50 Yrs. 12

60 50 40 30 Series1 Series2

20
10 0 BELOW 30 Yrs. 31-40 Yrs. 41-50 Yrs. ABOVE 50 Yrs.

[figure 02: Age classification of correspondent in sample size.]

32

3. Classification By Occupation

Govt. Employee 41

Private Employee 34

Self Employed 25

12 36 Highly satisfied 27 Satisfied Somewhat satisfied

[figure: 03 classification of correspondent on the basis of occupation. ]

33

4. Factors Affecting Decision:-

Economic Scenario

Company Image (2)

Fund Performance

Fund Manager

(1)

(3)

(4)

18

22

15

06

Tax Incentive

Minimum Initial Investment

Entry / Exit load

Open / Closed Ended

(5)

(6)

(7)

(8)

11

08

04

16

34

Economic Scenario -1 -8 -2 -3 Company Image Fund Performance -4 Fund Manager Tax Incentive -7 -5 Minimum Initial Investment Entry / Exit load -6 Open / Closed Ended

[figure:04 factors affecting decisions of investors. ]

35

5. As a Mutual Fund Investor Experience of the Customers :-

Highly satisfied 12

Satisfied Somewhat satisfied 27 36

Unsatisfied Highly unsatisfied 15 10

Somewhat satisfied

Satisfied

Series1

Highly satisfied

10

20

30

40

[figure: 05]

36

6. Which Mutual Fund you think is the good?

ICICI Pru Infra Inst. 1 ICICI Pru Infrastructure Reliance Regular Savings Equity Sundram Bnp Par, Select Focus Reg. DWS Investment Opportunity IDFC Premier Equity Baroda Pioneer Growth Templeton India Growth Magnum Comma DWS Alpha Equity Sahara Growth Fund

12 14 22 11 3 2 4 10 8 0 14

Rate reason for choosing particular dealer.

Mutual Fund Investor' Suggestion

Shares Mutual Fund Insurance FD Tax Bond PPF

[Fig.06: Mutual Fund Advisors Suggestions] 37

Reasons of Choosing Above

Returns Risk Safety Tax Benefite Others

[fig.07: Reasons of Choosing Above]

60%

55%

50%
40% 30% 20% 10% 14% 14% 11%

1%
ELSS Pension Plan NSC Insurance PPF

5%
Bond

0%

Investment Options

[Fig. 08 Advisors gets invested IT payers in]

38

7. Interest to attend the Seminar on Mutual Fund.

1 0.8 0.6 0.4 0.2 0 Know 10%

90%

Don't KNOW

[Fig.09: Investor who are interested to attend seminar on MF]

39

FINDINGS

40

FINDINGS:
The awareness level about Mutual Funds is quite low in the JHANSI among advisors.

Approximately 40% of PEOPLES are aware of and interested in dealing of Mutual Funds. The reason for not interested in dealing of Mutual Fund is lack of awareness about Mutual Fund.

Only 10% investment advisors are aware of MF services provided by Karvy, so we can say that awareness level about MF services of Karvy is very low.

Only 10% investment advisors are willing to provide services in Mutual Fund to investors. 60% of people invest in banks fixed deposits because of lesser risks in bank as compare to mutual fund.

Most of peoples are interested to know about Mutual Funds and interested to attend seminar on Mutual Funds arranged by Karvy.

Most of people invest in insurance to save tax followed by PPF. Insurance is widely used as tax-saving instrument.

Mostly people are not satisfied with performance of mutual fund.

Economic scenario and company image plays a greater role in the decision making of investors in mutual funds.

Investors are risk adverser. They want to minimize the risk and maximize the return.

News papers and Brokers/Agents are the main source of spreading the information about the mutual funds. 41

SWOT ANALYSIS

42

SWOT ANALYSIS

Strengths:
Employees are highly empowered. Strong Communication Network. Good co-operation between employees. Number 1 Registrar and Transfer agent in India. Number 1 dealer of Investment Products in India.

Weaknesses:
High Employee Turnover.

Opportunity:
Growth rate of mutual fund industry is 40 to 50% during last year and it expected that this rate will be maintained in future also. Marketing at rural and semi-urban areas.

Threats:
Increasing number of local players. Past image of Mutual Fund

43

LIMITATIONS

44

LIMITATIONS
Due to limitation of time and cost constrains a sample size of only 100 respondents are chosen.

Data Analysis and interpretation done may not be that strong due to small sample and Convenience Sampling Method.

The sample extent for research is only JHANSI.

Some of the respondents may be biased in giving responses.

My inexperience in research area might have affected results.

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CONCLUSION

46

CONCLUSION
Mutual Fund investors give emphasis on mutual funds than other investment options.

Mutual Funds have given a new direction to the flow of personal saving and enable small and medium investors in remote rural and semi urban areas to reap the benefits of the stock market investment. Indian Mutual Funds are thus playing a very important developmental role in allocation of scares resources in the emerging economy.

Karvy is not able to provide sufficient services to the investors due to unawareness among peoples regarding services.

The awareness level of investor is low in advisors are interested in dealing in mutual fund.

Very less people are knowing about services provided by karvy.

Only few investment advisors are aware of MF services provided by Karvy, so we can say that awareness level about MF services of Karvy is very low.

Most of peoples are interested to know about Mutual Funds and interested to attend seminar on Mutual Funds arranged by Karvy.

Economic scenario and company image plays a greater role in the decision making of investors in mutual funds.

Investors are risk adverser. They want to minimize the risk and maximize the return.

There are more potential of increase in mutual fund market because people are interested to know about it.

Initiatives should be taken by both , Broking firms and Government itself.

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RECOMMENDATIONS

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RECOMMENDATIONS
There is high potential market for Mutual Fund Advisors in Jhansi, but this market needs to be explored as investors are still hesitated to invest their money in Mutual Funds. In Jhansi, investors have inadequate knowledge about Mutual Funds, So proper Marketing of various schemes is required, company should arranges more and more seminars on Mutual Funds. Awareness of MF services provided by Karvy is also very low so company needs proper marketing of their all services by advertising, distribution of pamphlet, arranging seminars etc. Most of advisors are not interested in dealing of Mutual Funds because they dont want to expand their services due to lack of time, so company should provide them knowledge about single window services by which investor can get all financial services from one place. Company should also provide knowledge about the growth rate and the expected growth rate of Mutual Fund industry in India. Most of people aware of life insurance, NSC and PPF for tax saving so, company should market various tax saving schemes of Mutual Funds and their benefits. The interface among the investors and the Mutual Fund Companies is the agents, so the agents should have proper knowledge about Mutual Funds as well as market so that they can help investors in their investment decisions. The quality of agents performance and investors trust on them can be improved only if they are permanent in nature. There should be proper advertisements about the scheme of mutual funds so that the investors could get the proper information at the right time. Various awareness programs like seminar etc. should be organized by the Govt. and firms like KARVY itself. Govt. should ensure transparency in the transaction of mutual fund so that it maintains its credibility.

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APPENDIX

50

REFERENCES AND BIBLIOGRAPHY

REFERENCES:
David J. Luck & Ronald S. Rubin, Marketing Research,Ed. 7 (ISBN) D.C.Anjaria & Dhaivat Anjaria, AMFI Workbook, Ed. 2 (Association of Mutual Funds in India) Business World,Magazine C.R.Kothari,Marketing Research

BIBLIOGRAPHY:

1. 2. 3. 4. 5. 6. 7. 8. 9.

www.mutualfundsindia.com www.amfiindia.com www.themanagementor.com www.dewb-vc.com www.karvy.com www.indiacorporateadvisor.com www.nsdl.co.in www.incometaxdelhi.nic.in www.incometaxindia.gov.in

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QUESTIONNAIRE

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We assure you that all the information that will be collected from you will remain fully confidential and it is used for study purpose only. 1. Which of the following is your source of income? Government employee Self employed Private employee 2. Annual Income in Rs. Below 1 Lakh 1 - 3 Lakh 3- 5 Lakhs
3.

above 5 Lakhs

As a financial investor which investment option you would like?

Shares Insurance Tax Bond Other 4.

Mutual Fund Fixed Deposit PPF

Please indicate reason for choosing above? Returns Safety Timely Brokerage Other Risk Tax Benefits

5. Have you ever invested in any of the Mutual Funds? Yes No

6. As a mutual fund investor what is your experience? Highly satisfied Satisfied Somewhat satisfied Unsatisfied Highly unsatisfied 7. Reasons for Preference of Mutual Funds (Please Tick mark in the box provided.) Professional Management Liquidity Good Return Capital Appreciation Tax Benefit Safety Diversification

Flexibility 53

8. How did you come to know about Mutual Fund investments schemes? News Paper T.V. Financial Magazines Reference Groups Brokers/Agents Mail 9. What effects your decision regarding of investment in Mutual Funds? Economic Scenario Companys Image Entry/exit load open / closed ended Fund Performance Fund Management Image Tax Incentives Minimum Initial Investment 11.
Which Mutual Fund you think is the good? ICICI Pru Infra Inst. 1 ICICI Pru Infrastructure Reliance Regular Savings Equity Sundram Bnp Par, Select Focus Reg. DWS Investment Opportunity karvy stock brocking limited Templeton India Growth Magnum Comma DWS Alpha Equity

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12.

Would you like to receive advice from KARVY? YesNo

Thanks you very much for your kind co-operation & for taking time to complete this questionnaire.

Name : Address :

Phone (O) Mobile : Email :

(R)

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