“AN OVERVIEW OF MUTUAL

FUNDS IN INDIA”
Understanding Mutual funds, Types of Mutual
Funds, Risk-Return Analysis & Investor behavior
and Perception about Mutual Funds

SUNDARAM FINANCE LTD.

Made By:
Mr.Tarun Khandelwal
Roll No. 109/PGDMB/KJ/2008/53
Trimester IV B
 COMPANY PROFILE
Set up in 1954, the Sundaram Finance
Group’s services include financing for the
entire range of commercial vehicles,
passenger cars and construction equipment,
as well as specially designed working capital
products such as Fuel finance and Tyre
finance, home loans, mutual funds, non-life
insurance, IT, BPO, logistics solutions and
distribution of a wide range of financial
products and services.
The company employs over 4000
people and is regarded as one of the
most trusted and respected financial
services providers in the country.
Sundaram Finance Group remains true
to its core values of prudence, fairness,
transparency and service excellence
WHAT ARE MUTUAL FUNDS?
• Mutual Fund is a pool of money,
collected from investors, and is
invested according to certain
investment objective.
• Mutual Fund is the pooling of Money
from the retail investors to the
corporate investor’s for Sustainable
growth of the investments.
 POOL THEIR
MONEY TO
PASS
ON TO

INVESTORS

RE
TU
RN
S

INVEST IN

GENRATE

SECURITIES & STOCK MARKET

 HISTORY OF THE
INDIAN MUTUAL FUND
INDUSTRY

The mutual fund industry in India

started in 1963 with the formation of
Unit Trust of India, at the
initiative of the Government of India
and Reserve Bank.
TYPES OF MUTUAL FUNDS:

Mutual Fund schemes by structure

 Open Ended Scheme

 Close Ended Scheme

 Interval Schemes
TYPES OF MUTUAL FUNDS:
Mutual Fund schemes by Investment
Objectives

 Equity funds:
 Growth Fund
 Diversified Equity Fund
 Equity – Linked Savings Schemes (ELSS)
 Index Fund
 Sector Fund
TYPES OF MUTUAL FUNDS:
 Debt funds:

 Gilt Funds
 Income Funds
 Short Term Plans (STP’s)
 Liquid Funds

 Balanced funds:
 IMPORTANT TERMS
 Alpha

 Beta

 R Squared

 Sharpe ratio
PURPOSE OF THE PROJECT
• Understand mutual funds and different
types of mutual funds.
• Understand the concept of risk return
analysis.
• To measure knowledge & perception
about MF amongst investors and non-
investors.
• Ascertain awareness about Sundaram
Finance Ltd.
RESEARCH METHODOLOGY
 Sample size – 100
 Investors 50
 Non-Investors 50

 Sampling technique – Judgmental sampling

 Research Method :
 Primary Data – Questionnaire
 Secondary Data – Internet, books, magazines
People who invest in Mutual
Funds
1) In which type of mutual fund do
you invest?
Choice of MF

35%
30%
30%
26%
24%
25%
Percent

20%

15%
10%
10%

5%

0%
Equity Balanced Debt Tax Saver
MF Type
 2) The main reason for
investing in mutual
funds?
60% 56%

50%

40% 36%

30%

20%

8%
10%

0%
Safe Investment Somewhat Tax Benefit
Guaranteed Returns
3) How much amount do you
invest in mutual funds
monthly?
Minthly Investment in MF

40% 36%
35% 32%
30% 26%
Percent

25%
20%
15%
10% 6%
5%
0%
Less than 2,000 Between 2,000 Between 5,000 Above 10,000
to 5,000 to 10,000
Amount
4) Are you satisfied with the
investment made by you?
Satisfaction from Investment

50% 44%
45%
40%
35% 30%
30% 26%
Percent

25%
20%
15%
10%
5%
0%
Yes No Somewhat
Response
 5) Have you heard about
Sundaram BNP Paribas
mutual fund?
Aw a re ne ss a bout S unda ra m BNP P a riba s

90% 80%
80%
70%
60%
50%
Percent

40%
30% 20%
20%
10%
0%
Ye s No
Re spose
People who do not invest in
Mutual Funds
1) The main reason for not
investing in a mutual fund?
Reasons for Not Investing in MF

60%
50%
50%
Percent

40%

30% 24%
18%
20%
8%
10%

0%
Risks Involved Less Returns Lack of Others
Knowledge
Reasons
2) Which type of investment
have you made?
Investments made

70%
60%
60%

50%
Percent

40%

30%
20%
20%
10% 10%
10%
0%
Stock Market Fixed Deposits Govt.Securities Insurance

Investments
 3) Which of the following
do you consider the best
form of investment?
Safe Investments

60%
50%
50%

40%
Percent

30%
30%

20% 16%

10%
4%

0%
Stock Market Fixed Deposits Govt.Securities Insurance
Investments
 4) If given proper financial
assistance would you like
to invest in mutual funds?
Invest in future

45% 40%
40%
35% 30%
30%
Percent

25% 20%
20%
15% 10%
10%
5%
0%
Ye s No Ma y be Ca n't sa y
re sponse
FINDINGS OF THE STUDY
INVESTORS
 Tax benefit is the main reason why people
invest in mutual funds.

 Investors are not very satisfied with their

investments.

 Amount invested monthly in mutual funds is low

( Rs.2,000 – 5,000 )
FINDINGS OF THE STUDY
NON-INVESTORS
 Lack of knowledge has kept away of the
non-investors away from mutual funds.
 Most people who do not invest in mutual funds
invest in Insurance.
 People are willing to invest in mutual funds.
 RECOMMENDATIONS
 New products to suit the needs of
different people.

 More promotion activities.

 Transparent terms & conditions.

THANK
YOU