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A
PROJECT REPORT
ON
Performance of Mutual Funds And
Its Awareness Among The Patrons In The Present Market

Submitted By: Bhavesh Patel
T.Y.B.B.A (Accounting and Financial Management)
Roll No: F-28

Under the Guidance of: Mr. Saurabh Patel

BBA PROGRAM
Faculty of commerce
The Maharaja Sayajirao University of Baroda
Kamlaben Ramanlal Shah BBA building,
Donors Plaza, Opp. M.S. University main office
Fatehgunj, Vadodara-390002, Gujarat (India)
(2013-14)



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ACKNOWLEDGEMENT
The success behind the competition of any good job is the support and the joint team
effort of a number of people. There are many persons, whose help and cooperation, made this
project succesful.
My deepest sense of gratitude, profound respect and sincere thanks to Mr. Saurabh
Patel(Lecturer at BBA Programme, The Maharaja Sayajirao University of Vadodara) my project
guide, for his valuable assistance keen interest and constant motivation at each step of my
project. It would not have been possible for me to reach this stage without his support and
guidance.
My special thanks to Branch Manager and assitant manager of SBI magnum mutual fund,
Reliance mutual fund, TATA Mutual Fund, Sun Birla Mutual Fund and Share Khan, who has
been there to help me in answering to my queries, be it regarding any concept related to mutual
funds. Their warmth support, practical guidance and easy explanations not only regarding to
project matters but others too add the success of my project.
I would also like to thank my parents and my friends for all their time-to-time assitance.
Last but not the least I would like to thank God because without his divine grace nothingwould
have been possible.






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Certificate
This is to certify that the project entitled Performance Of
Mutual Funds And Its Awareness Among The Patrons In The Present
Market submitted by Mr. Bhavesh Patel, Roll No:- F-28 in fulfillment of
requirement for 6
th
Semester of BBA Programme, The Maharaja
Sayajirao University of Baroda is a bonafide record work done by him
under my supervision and guidance.

Name of the Guide: - Mr. Saurabh Patel
Signature:-










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TABLE OF CONTENT

Page No.
Acknowledgements....2
Certificate...3
Table of Charts...6
Executive Summary7
1. Introduction of Project
a. Concept of Mutual fund. 9
b. How Mutual Fund works?........................ 10
c. Performance of Mutual Funds in India..........11

2. Types of Mutual Fund
a. By constitution...14
b. By Investment Objectives......16

3. Some facts for the growth of Mutual Funds in India20

4. Major Mutual Fund Companies in India...21



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Page No.
5. Distribution Model
a. Distribution Channels.... 23
b. Challenges in Distribution..... 25
c. Curbing Unethical Practices...26
d. Spreading Mutual Fund Culture.27

6. Research Methodology.28

7. Data Presentation, Analysis and Interpretation30
a. Rating of Investment Avenues..43
b. Interpretation Summary.46

8. Conclusion and Suggestion...47

9. Annexure
a. Questionnaire of the Research Study49

10. Bibliography.53



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Table of Charts


Page No.

1. Mutual Fund Working cycle....10

2. Types of Mutual Funds....13

3. Distribution Model...23







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Executive Sumary

Role of Financial system is to enthusiast economic development. As investors are getting more
educated, aware and prudent they look for innovative investment instruments so that they are
able to reduce investment risk, minimize transaction costs, and maximize returns along with
certain level of convenience as a result there has been as advert of numerous innovative financial
instruments such as bond, company deposits, insurance, and mutual funds. All of which could be
matched with individuals investment needs. Mutual funds score over all other investment
options in terms of safety, liquidity, returns, and are as transparent, convenient as it can get. Goal
of a mutual fund is to provide an efficient way to make money. Today, In India there are 41
mutual funds with different Investment strategies and goals to choose from different mutual
funds have different risks, which differ because of funds goals, funds manager, and investment
styles.
A mutual fund is an investment company that collects money from many people and
invests it in a variety of securities, the company then manages the money on an ongoing basis for
individuals and businesses. Mutual funds are an efficient way to invest in stocks, bonds, and
other securities for three reasons:
i. The securities purchased are managed by professional managers.
ii. Risk is spread out or diversified, because you have a collection of different
stocks and bonds.
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iii. Costs usually are lower than what you would pay on your own, since the
funds buy in large quantities.

Objectives:
The objective of the research is to study and analyze the awareness level of investors of
mutual funds.
To measure the satisfaction level of investors regarding mutual funds.
An attempt has been made to measure various variables paying in the minds of investors
in terms of safety, liquidity, service, returns, and tax saving.
To get insight knowledge about mutual funds
Understanding the different ratios and portfolios so as to tell the distributors about these
terms, by this, managing the relationship with the distributors.
To know the mutual funds performance levels in the present market.
To analyze the comparative study between other leading mutual funds in the present
market.
To know the awareness of mutual funds among different groups of investors.







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Introduction:
a. Concept of Mutual Fund
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common finnacial goal. The money thus collected is then invested in capital market instruments
such as shares, debentures and other securities. The income earned through these investments
and the capital appreciations realized are shared by its unit holders in the 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. The flow chart below describes broadly the working of a
mutual fund .










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b. How Mutual Fund works?


[Flow Chart 1.1 :- Mutual Fund Working Cycle]

The Mutual Fund companies which is also know as investors on behalf of their customers
invest (pool) their money from them and make a optimum fund. Optimum fund is then invested
in securities in the trading market. By investing in diversified investment alternatives, it
generates the return or gain from it, which is given back to customers after some minor
deduction which include the professional charges and maintaining charges of the fund in
respective schemes.
Investors
Fund
Securities
Returns
Pool Their Money
in
Which Is Invested In
That Generates
Given Back To
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c. Performance of Mutual Fund in India

Let us start the disscussion of the performance of mutual funds in india from the day the
concept of mutual fund took birth in india. The year was 1963, Unit trust of india invited
investors or rather to those who believd in savings, to park their money in UTI Mutual Fund
For 30 years it goaled without a single player. Though the 1988 year saw some new mutual fund
companies, but UTI remained in a monopoly position.

The performance of mutual funds in india in the initial phase was not even closer to
satisfactory level. People rarely understood, and of course inventing was out of question. But
yes, some 24 million shareholders were accustomed with guaranteed high returns by the
beginning of liberalisation of the industry in 1992. This good record of UTI became marketing
tool for new entrants. The expectations of investors touched the sky in profitability factor.
However, people were miles away from the preparedness of risks factor after the liberalisation.

The Assets under Management of UTI was Rs. 67 billion by the end of 1987. Let me
concentrate about the performance of mutual funds in India through figures from Rs 67 billion
the Assets under Management rose to Rs $70 billion in march 1993 and the figures had a nearly
6 times higher performance by the April 2013. It rose to 2673 billion.

The net asset value(NAV) of mutual funds in India declined when the stock prices started
falling in the year 1992. Those days, the market regulations did not allow portfolio shifts into
alternative investments. There was rather no choice apart from holding the cash or to futher
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continue in investing shares. One more thing to be noted, since only closed-end funds were
floated in the market, the investors disinvested by selling at a loss in the secondary market .
The performance of mutual funds in India suffered qualitatively. The 1992 stock market
scandals, the losses by disinvestments and of course the lack of transparent rules in the where
about rocked confidence among the investors. Partly owing to a relatively weak stock market
performance, mutual funds have not yet recovered, with funds trading at an average discount of
10-20 percent of their net asset value.

The supervisory authority adopted a set of measures to create a transparent and
competitive environment in the mutual funds. Some of them were like relaxing investment
restrictions into the market, introduction of open-ended funds, and paving the gateway for
mutual funds to lunch pension schemes.

The measure was taken to make mutual funds the key instrument for long term saving.
The more the variety offered, the quantitative will be investors. At last to mention, as long as
mutual funds companies are performing with lower risks and higher profitability within a short
span of time, more and more people will be inclined to invest until and ulness they are fully
educated with the dos and donts of mutual funds.







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Types of Mutual Funds Schemes in India

Wide variety of Mutual Fund Schmes exits to cater to the needs such as financial
position, risk tolerance and return expectations etc. The chart below gives an overview into the
existing types of schemes in the industry.

[ Flow Chart 2 :- Types of Mutual Funds]

Types of
Mutual Funds
By
Constitution
Open-ended
schmes
Closed-ended
schemes
Interval
Schemes
By
Investment
Objectives
Equity Funds
Diversified
Funds
Tax saving
Funds
Index Funds
Sectorial
funds
Debt Funds
Hybrid Funds
Money
Market Funds
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Mutual Funds have specific investment objectives such as growth of capital, safety of
principal current income or tax exempt income, one can select one fund or any number of
different funds to help one meets ones specific goals. In general mutual fund falls under three
general categories:-
i. Equity fund in shares of common stocks.
ii. Fixed income funds invest in government or corporate securities, which offer fixed rate of
returns.
iii. Balanced fund invest in a combination of both stock and bonds.

1. Classification according to Constitution

A. OPEN ENDED SCHEMES:-
Open-ended schemes do not have a fixed maturity period. Investors can buy or sell units
at NAV related prices from and to the mutual fund on any business day. These schmes have
unlimited capitalization, open-ended schemes do not have a fixed maturity, there is no cap on the
amount you can buy from the fund and the unit capital
Open-ended schemes do not have a fixed maturity period. Investors can buy or sell units
at NAV-related prices from and to the mutual fund on any business day. These schemes have
unlimited capitalization and do not have a fixed maturity. There is no cap on the amount you can
buy from the fund and the unit capital can keep growing. These funds are not generally listed on
any exchange.
Open-ended schemes are preferred for their liquidity. Such funds can issue and redeem
units any time during the life of a scheme. Hence, the unit capital of open-ended funds can
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fluctuate on a daily basis. The advantages of open-ended fund over closed-ended are the options
of anytime exit and entry.
Anytime exit option: The issuing company directly takes the responsibility of providing
an entry and an exit. This provides ready liquidity to the investors and avoids reliance on transfer
deeds, signature verifications and bad deliveries. Anytime entry option: An open-ended fund
allows one to enter the fund at any time and even to invest at regular intervals.

B. Closed-ended schemes
Closed-ended schemes have fixed maturity periods. Investors can buy into these funds
during the period when the funds are open. After that such schemes cannot issue new units
except in the case of bonus or rights issue. However, after the initial issue, you can buy or sell
units of the scheme on the stock exchanges where they are listed. The market price of the units
could vary from the NAV of the scheme due to demand and supply factors, investors
expectations and other market factors.

C. Interval funds
Interval funds combine the features of open-ended and close-ended schemes. They may be
traded on the stock exchange or may be open for sale or redemption during pre-determined
intervals at NAV based prices.





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2. Classification according to investment objectives
Mutual funds can be further classified based on their specific investment objective such
as growth of capital, safety of principal, current income or tax-exempt income.
In general mutual funds fall into three general categories:
1] Equity Funds are those that invest in shares or equity of companies.
2] Fixed-Income Funds invest in government or corporate securities that offer fixed rates
of return are
3] While funds that invest in a combination of both stocks and bonds are called Balanced
Funds.

A. Growth Funds
Growth funds primarily look for growth of capital with secondary emphasis on dividend.
Such funds invest in shares with a potential for growth and capital appreciation. They invest in
well-established companies where the company itself and the industry in which it operates are
thought to have good long-term growth potential, and hence growth funds provide low current
income. Growth funds generally incur higher risks than income funds in an effort to secure more
pronounced growth.
Some growth funds concentrate on one or more industry sectors and also invest in a
broad range of industries. Growth funds are suitable for investors who can afford to assume the
risk of potential loss in value of their investment in the hope of achieving substantial and rapid
gains. They are not suitable for investors who must conserve their principal or who must
maximize current income.

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B. Growth and Income Funds
Growth and income funds seek long-term growth of capital as well as current income.
The investment strategies used to reach these goals vary among funds. Some invest in a dual
portfolio consisting of growth stocks and income stocks, or a combination of growth stocks,
stocks paying high dividends, preferred stocks, convertible securities or fixed-income securities
such as corporate bonds and money market instruments. Others may invest in growth stocks and
earn current income by selling covered call options on their portfolio stocks.
Growth and income funds have low to moderate stability of principal and moderate
potential for current income and growth. They are suitable for investors who can assume some
risk to achieve growth of capital but who also want to maintain a moderate level of current
income.

C. Fixed-Income Funds
Fixed income funds primarily look to provide current income consistent with the
preservation of capital. These funds invest in corporate bonds or government-backed mortgage
securities that have a fixed rate of return. Within the fixed-income category, funds vary greatly in
their stability of principal and in their dividend yields. High-yield funds, which seek to maximize
yield by investing in lower-rated bonds of longer maturities, entail less stability of principal than
fixed-income funds that invest in higher-rated but lower-yielding securities.
Some fixed-income funds seek to minimize risk by investing exclusively in securities
whose timely payment of interest and principal is backed by the full faith and credit of the Indian
Government. Fixed-income funds are suitable for investors who want to maximize current
income and who can assume a degree of capital risk in order to do so.
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D. Balanced Fund
The Balanced fund aims to provide both growth and income. These funds invest in both
shares and fixed income securities in the proportion indicated in their offer documents. Ideal for
investors who are looking for a combination of income and moderate growth.

E. Money Market Funds/Liquid Funds
For the cautious investor, these funds provide a very high stability of principal while
seeking a moderate to high current income. They invest in highly liquid, virtually risk-free,
short-term debt securities of agencies of the Indian Government, banks and corporations and
Treasury Bills. Because of their short-term investments, money market mutual funds are able to
keep a virtually constant unit price; only the yield fluctuates.
Therefore, they are an attractive alternative to bank accounts. With yields that are
generally competitive with - and usually higher than -- yields on bank savings account, they offer
several advantages. Money can be withdrawn any time without penalty. Although not insured,
money market funds invest only in highly liquid, short-term, top-rated money market
instruments. Money market funds are suitable for investors who want high stability of principal
and current income with immediate liquidity.

F. Specialty/Sector Funds
These funds invest in securities of a specific industry or sector of the economy such as
health care, technology, leisure, utilities or precious metals. The funds enable investors to
diversify holdings among many companies within an industry, a more conservative approach
than investing directly in one particular company.
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Sector funds offer the opportunity for sharp capital gains in cases where the fund's
industry is "in favor" but also entail the risk of capital losses when the industry is out of favor.
While sector funds restrict holdings to a particular industry, other specialty funds such as index
funds give investors a broadly diversified portfolio and attempt to mirror the performance of
various market averages.
Index funds generally buy shares in all the companies composing the BSE Sensex or NSE
Nifty or other broad stock market indices. They are not suitable for investors who must conserve
their principal or maximize current income.















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Some facts for the growth of mutual funds in India

120% growth in the last 6 years.
Number of foreign AMC's are in the que to enter the Indian markets like Fidelity
Investments, US based, with over US$1trillion assets under management worldwide.
Our saving rate is over 23%, highest in the world. Only channelizing these savings in
mutual funds sector is required.
We have approximately 47 mutual funds which is much less than US having more than
800. There is a big scope for expansion.
'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing cities.
Mutual fund can penetrate rural like the Indian insurance industry with simple and
limited products.
SEBI allowing the MF's to launch commodity mutual funds.
Emphasis on better corporate governance.
Trying to curb the late trading practices.
Introduction of Financial Planners who can provide need based advice.




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MAJOR MUTUAL FUND COMPANIES IN INDIA

1. AEGON Asset Management Company Pvt. Ltd. N/A
2. AIG Global Asset Management Company (India) Pvt. Ltd.
3. Axis Asset Management Company Ltd.
4. Baroda Pioneer Asset Management Company Limited
5. Benchmark Asset Management Company Pvt. Ltd.
6. Bharti AXA Investment Managers Private Limited
7. Birla Sun Life Asset Management Company Limited
8. Canara Robeco Asset Management Company Limited
9. Deutsche Asset Management (India) Pvt. Ltd.
10. DSP Black Rock Investment Managers Private Limited
11. Edelweiss Asset Management Limited
12. Escorts Asset Management Limited
13. FIL Fund Management Private Limited fidelity.co.in
14. Fortis Investment Management (India) Pvt. Ltd.
15. Franklin Templeton Asset Management (India) Private Limited
16. Goldman Sachs Asset Management (India) Private Limited
17. HDFC Asset Management Company Limited
18. HSBC Asset Management (India) Private Ltd.
19. ICICI Prudential Asset Management Company Limited
20. IDFC Asset Management Company Private Limited

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21. ING Investment Management (India) Pvt. Ltd.
22. JM Financial Asset Management Private Limited
23. JPMorgan Asset Management India Pvt. Ltd.
24. Kotak Mahindra Asset Management Company Ltd (KMAMCL)
25. L&T Investment Management Limited
26. LIC Mutual Fund Asset Management Company Limited
27. Mirae Asset Global Investments (India) Pvt. Ltd.
28. Morgan Stanley Investment Management Pvt. Ltd.
29. Motilal Oswal Asset Management Company Limited
30. Peerless Funds Management Co. Ltd.
31. Principal Pnb Asset Management Co. Pvt. Ltd.
32. Quantum Asset Management Co. Private Ltd.
33. Reliance Capital Asset Management Ltd.
34. Religare Asset Management Company Limited
35. Sahara Asset Management Company Private Limited
36. SBI Funds Management Private Limited
37. Shinsei Asset Management (India) Pvt. Ltd.
38. Sundaram BNP Paribas Asset Management Company Limited
39. Tata Asset Management Limited
40. Taurus Asset Management Company Limited
41. UTI Asset Management Company Ltd

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Distribution Model












[Flow Chart 3:- Distribution Model]

A. Distribution Channels
In highly competitive environment, product innovation or development has become a
necessity for mutual fund players to stay ahead. Increasing commoditization and growing needs
of the customers are forcing players to shift to solution based models from production based
ones. In either model, the role of distribution channel remains critical as it helps stave off
competition by maintaining relationships, providing advisory services and customizing need-
based solution
AMC
Direct
Sales
Brokers
Banks
Tired
Agency
Internet
Large
Corporates
Institutional
brokers
(Corporates)
-High Net worth
Customers
-Retail Customers
-High Net worth
Customers
-Retail Customers
-High Net worth
Customers
-Retail Customers
Customer Segment
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Relationship plays a vital role while selling mutual fund products. An agent is essential
channel between investors and mutual fund products. However it is difficult for AMCs to
manage and monitor large agent force. So they take shelter in third-party distribution AMCs like
KARVY, BAJAJ Capital, and Integrated Enterprises etc. These AMCs in turn, appoint their
agents to sell the MF to AMCs products. Agents advise the customer on the kind of product that
caters to the needs of the client. To unload their work, the companies bear a huge market expense
in the form of higher commission to lure investors.
To control increasing operational costs, AMCs are opting for the service s of large
distributors to sell their products by leveraging their value chain, which comprises of a brokers,
sub brokers and agents. However mutual fund players have to bear splurging marketing expenses
to push their product against others. In addition mutual fund AMCs are also using banks and Non
Banking Financial AMCs (NBFC) as distribution channels to leverage their reach and huge
client base. UTI is distributing its offerings through selected branches of Indian Bank,
Corporation Bank, Bank of India an Allahabad Bank, besides, they are also appointing sales
personnel to meet investors, educate them and sell their products.
The contribution of direct marketing to the total sales is miniscule, but the cost burden is
huge. The post office is also used as a channel of Distribution by mutual funds AMCs, given the
fact that the post office has the largest network then many other institution or bank in the
country. As far as retail penetration is concerned, the post office plays a vital role because its
offices are distributed through the country. Mutual fund industry is also using the internet to
distribute their products because of the cost advantages and increased communication. However,
the fact is that internet has its limits in providing customized advice to individuals; restrict its use
on large scale.
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B. Challenges in Distribution
Lack of awareness
Risk aversion
Extensive availability of the central govt. assured return
Delay (in Liquidity)
Tardy inter-city payment system
Transaction cost of establishing contact centers
It has been a big challenge for the Mutual Fund Industry. As most of the investors are still
not aware how it functions. They sometime feel that it is a costly affair. Educating investors
about the advantages of investing in mutual funds compared to risk-free savings instrument is a
big task for the industry. According to the Securities Market Infrastructure- Leveraging Expert
(SMILE), the transaction cost of establishing contact centers, delay in fund transfer and tardy
inter-city payment system are the major impediments. So enhancing the reach through the
existing distribution model will require more investments.
As of now, mutual fund investments are confined to the metros, tier 1 and 2 cities (about
50 cities). A major reason for this is high cost of developing retail infrastructure. So, scaling up
the operation by increasing investment in other cities doesnt seem feasible.
There is also a regulatory entanglement in fund realization. Allotment of units Net Asset
Value (NAVs) is done before realization of funds, except in liquid and money market schemes.
Such delay is quite pervasive in smaller towns, where it can be 3-5 days or more. Such hassle
could prevent investors from investing in mutual funds. However, these problems are being
resolved with appointment of registrars to meet the time-lines of recording the transactions. In
addition, technological advancements of remittance instruments such as Electronic clearing
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Services (ECS), Electronic Funds Transfer (FT) and Real- Time Gross settlement System
(RTGS), is a making the process fast and reducing delay in fund transfer across cities.
The extensive availability of the central govt. assured return on small products are
restricting the competition as well as penetration of wide variety of mutual fund products,
particularly in the smaller towns where investors are not willing to take risk. This poses a great
challenge for the industry to realize its potential.

C. Curbing unethical practices
The industry faces challenge to control certain practices. AMCs are wooing the
distributors by offering more commission to push their products. In the hope of getting more
incentives, distributors may opt for unfair practices like false projections to sell unsuitable
products, motivate the investors to shift from one fund to another, namely high net worth
investors and persuade them to over invest. However, the clients concern and his needs should
be of prime importance while selling. To curb such unethical practices, the Association of
Mutual Funds in India (AMFI) has prescribed that agents/distributors must have AMFI
certification. And to control the huge market expenses the authority has prescribed that the
commission rates also shouldnt be more than mutual funds expense limit of 2.5% for equity
and 2.25 % for debt. Such regulations are required to be more effective to stop such unethical
practices.





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D. Spreading the Mutual Fund Culture
Though the Indian Mutual Fund industry has a huge potential, it is yet to be realized. To
realize its growth potential, industry will have to focus on its reach in the retail segment.
According to Chairman of AMFI there are about 180 million households in India, of which just
11.8 million invest in mutual funds, making it penetration of 6.7% in the urban areas 13.7% of
the households invest in mutual funds; in rural areas this percentage is just 3.8%.
So there is a need to focus on rural penetration for future growth. To achieve its growth,
educating the customer about the mutual funds as a saving vehicle will be critical. More efforts
are required from the regulators and the industry to manage the wealth of individuals to further
propel the growth of the industry by popularizing the use of mutual funds. The govt. should
properly regulate and monitor the regulation so that a favorable climate can be created.
Regulations should be tightened to curb unethical practices. They should also develop a
comprehensive risk management system so that it can induce more investment. The industry
should focus on product innovation and maintain transparency, flexibility, service and innovation
to realize its potential.








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Research Methodology
My research project has a specified frameework for collecting the data in an effective
manner. Such framework is called RESEARCH DESIGN. The research process which was
followed by me consisted following step:-

A. Problem
The problem was to study and measure the awareness level of people regarding the
mutual fund in the city

B. Developing the Research Plan:-
The Development of Research Plan has the following Steps:-
1. Data Sources:- Two types of data were taken into consideration i.e. Secondary
data and Primary data. My major emphasis was on gathering the primary data. The
secondary data has been used to make things more clear.
i. Primary Data: Direct collection of data from the source of information,
technology including personal interwiewing, survey etc.
ii. Secondary Data: Indirect collection of data from sources containing past or
recent past information like Banks Brochures, Fact sheets of mutual funds,
Newspaper and Magazines etc.
2. Research Intrument:-
A close friend questionnaire was constructed for my survey. Questionnaire consisting
of set of question made to be filled by various respondents.
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3. Sampling Plan:-
The sampling plan calls for three decisions:
a) Sampling Unit: I have completed my survey in Vadodara.
b) Sample Size:- The sample consisted of 52 respondants. The sample was drawn by
the online questionnaire and also through the investors individually. The selection
of the respondents was done on the basis of simple random sampling.
c) Contact Methods: I have contacted 32 respondents through personal interview
and rest of the respondents through online questionnaire.

C. Collecting The Information:-
After this, I have collected the information from the respondents with the help of
questionnaire.

D. Analyze the Information:-
The next step is to extract the pertinent finding from the collected data. I have
tabulated the collected data and developed frequency distributions. Thus the whole data was
grouped aspect wise and was presented in tabular form. Thus, frequencies and percentages were
prepared to render impact of the study.


E. Presentation of Findings:-
This was the last step of the survey.

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Data Presentation, Analysis and
Interpretation

1. Qualification of Collected sample

Interpretation:-
From the above pie chart we can analysis that in the total sample collected from the
population there is 47% Graduate, 37% Post graduate and rest are filled by undergraduate
and other professionals.

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2. Occupation of Collected sample


Interpretation:-
Above Pie chart shows that there are more salaried people in the sample data which is
followed by Businessman, professionals, students and retired people.









Student 11%
Salaried 58%
Professional 12%
Business 15%
Retired 4%
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3. What kind of investment have you made so far?

Interpretation:-
The above chart shows that the most of the people have invested in Bank Deposits, which
is prefered investment alternatives in the present market as it offers a diverse facilities to
investors.
To safeguarding their future 34 people have invested in Insurance, Which is followed by
the Mutual Funds as a good option for a investment.
Share market is very risky and many of us also dont have in dept knowledge of it though
it is a prefered investment alternatives due to its vary in return.
Other investment alternatives also play its different role due to its benefits and
requirement.
So far, I have seen that most of the business man deals in real estate whereas salaried
people invest in shares and mutual fund securities.
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4. Investment decisions are based on

Interpretation:-
From the above chart, I have analyze that most of the investment decisions are
taken place with the help of experts and the persons who are aware of their
investment they invest it by themselves only without any help of experts.
The investment decision of 10% investors of the sample data are taken by experts
only.

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5. How long investors invest their money ?

Interpretation:-
Above Pie-Chart shows that medium term investors are more in the present market
which is followed by long term investors and short term investors.

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6. Types of Investors in the market

Interpretation:-
In the present market we find more moderately conservative investors rather than
highly aggressive investors.
And Aggressive investors are 33% of the total sample collected. From this we can say
that the investors does not changes its decision frequently, they takes decision after
evaluating the present scenario of market.


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7. Awareness of Mutual Fund
Interpretation:-
Above pie-chart shows that, In the present market all are aware about mutual fund
that it is an investment alternative which managed by prosfessional manager.









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8. How did the investors came to know about Mutual Fund?

Interpretation:-
Most of the investors came to know about the mutual funds through the Internet
which play a dominant role in todays market in creating awareness within a short
time to large population. On the counterpart of internet Banks and Financial advisor is
also important in creating awareness about the mutual fund.










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9. How many people have invested in Mutual Funds?

Interpretation:-
Out of 52 sample population only 29 have invested in mutual funds though they all
have awareness about the mutual funds.
So still something is lacking behind in attracting the investor towards the mutual
fund like they all have invest in Bank Deposits.
Mutual funds have to still improve to attract investors in present market in order to
acquire a large postion of capital flow in market.
And the reason that I have found why investors is not investing in mutual fund is that
they find higher risk in it and capital depreciation possible.
So somewhere communication is also lacks in conveying message that mutual is not
at all riskier as compare to share market because it is totally managed by the
professionals who have in dept knowledge about the performance of companies and
the trading market.


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10. If invested in mutual fund where did they find themselves as a
mutual fund investors?

Interpretation:-
In the present market, most of mutual fund investors are aware only about the specific
scheme in which they invested.
And 23% have partially knowledge of mutual funds though they have invested in mutual
fund because they are attracted by the feature of mutual fund like professional
management, low cost and return potentiallty in mutual fund.
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11. In which kind of mutual funds they have invested?

Interpretation:-
Private companies is in boom in the mutual fund after the LPG policy till now.
Approximately of the mutual fund invetors have invested in private companies.

12. In which Mutual Fund do they invest frequently?

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Interpretation:-
According to the data collected by me, most of the mutual fund invetors are of Reliance
company which is followed by top most company in india ICICI and HDFC. Other
include Sun Birla Life Mutual fund company .
Franklin Templeton and Kotak mahindra is also playing an important role in serving the
need of investors.

13. What portion of investors income do they invest in mutual
Funds?

Interpretation:-
About 10%- 30% of their savings the mutual fund investors invest in mutual fund.
But 11% of the mutual fund investor is also investing more than 50% of their saving in
mutual fund. Which shows that mutual fund is a good investment alternative.
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14. Which feature of Mutual Fund attracts the most to its investors?

Interpretation:-
Professional Management, Diversifivation and return policy is the feature of mutual fund
which attracts its investors the most.
Whereas other feature is also as important in serving the diversified investors in the
present market.







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Rating of investment Avenues

1. Bank Deposits


2. Shares/ Debentures

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3. Insurance
4. Mutual Funds
5. Real Estate

Page | 45

6. Public Deposits
7. PF and PPF
8. Gold, Silver and other Precious Metals



Page | 46

Interpretation
As FIIs have entered Indian markets sense have cross 20,000 mark and investors have
earned a lot in last financial year. Indians are becoming aware of various investment
options. People have started taking risk as they want to book profits. Investors prefer
more equity schemes than debt schemes, around 60% of the investors invest in equity
schemes and balanced schemes. Investors want to take risk as they want to yield better
returns.
Investors want high returns, liquidity, safety and tax benefits. Among all investors gives
want to have safety for their money. Around 91% of the investors prefer open ended
schemes rather than close ended schemes as there is flexibility in open ended schemes.
Investors prefer both systematic investment plan and lump sum. It depends upon the
availability of funds that the investor want to invest in SIP or as lump sum. Some of the
investors invest in both ways i.e. through SIP as well as lump sum.
Basically it depends upon the availability of fund. When questions were asked about the
performance of mutual funds in future, 35% of the investors said very strong future and
15% of the investors said moderate future.







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Conclusion And Suggestions:
Customer education of the salaried class individuals is far below standard. Thus Asset
Management Companys need to creat awareness so that the salaried class people become
the prospective customer of the future.
Early and mid earners bring most of the business for the Asset Managemnt Companys.
Asset management companys thus needed to educate and develop schemes for the
persons who are at the late earning or retirement stage to gain the market share.
Returns record must be focused by the sales executives while explaining the schemes to
the customer. Pointing out the brand name of the company repeatedly may not too fruitful.
The target market of salaried class individual has a lot of scope to gain business, as they
are more fascinated to mutual funds then the self employed.
Schemes with high equity level need to be targeted towards self employed and
professionals as they require high returns and are ready to bear risk.
Salary class individuals are risk averse and thus they must be assured of the advantages of
risk- diversification in Mutual Funds.
There should be given more time and concentration on Tier- 3 distributors.
The resolution of the queries should be fast enough to satisfy the distributors.
Time to time presentation/training classes about the products should be there.
There should be more number of Relationship managers in different Regions because one
RM can handle a maximum of 125 distributors efficiently and also to cover untapped
market.
Regular acticities like canopy should be done so as to get more interaction with the
distributors.
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Appendix


Page | 49

Dear Respondent,
As a part of my BBA final year at Department of Accounting and Financial Management,
Faculty of Commerce, M.S. University Vadodara. I Bhavesh Patel, am undertaking survey on
Performance of mutual funds and its Awareness among the patrons in the present
Market. I would be grateful to you if you could spare some time to respond to this
questionnaire. I assure you that this information provided would be kept purely confidential and
would be used for academic purpose only.
Thanking You
Yours Sincerely,
Bhavesh Patel
Questionnaire
1. Name:

2. Age:
3. Gender: Male Female

4. Qualification: Undergraduate Graduate
Post Graduate Others, specify...

5. Occupation: Student Salaried
Professional Business
Retired Others, specify...

6. What kind of investment have you made so far?
Bank Deposits Insurance Mutual Funds
Shares/Debentures Post Office Deposits Real Estate
Gold, Silver, etc. PF PPF
Public Deposits of companies







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7. Rank from 1 to 6 in the order of your preference, the factors you consider while investing
your money.
Liquidity Goodwill/Image of the company
Risk Tax Benefit
Return Protection of principle

8. What are your objectives of investment? Rank from 1 to 6 in order of preference.
Income Generation Safety and Security
Capital Appreciation Tax Benefit
R Retirement Benefits Domestic goals like childrens education, marriage,
purchase of house etc.

9. What is your current preference of Investment Avenue? (Rank from 1-12 in order of
preference)
Bank Deposits Insurance Mutual Funds
Shares/Equity Post Office Deposits Real Estate
Gold, Silver, etc. PF PPF
Foreign Currency Bonds/Debentures Chits

10. Your investment decisions are based on
Own initiative
Own initiative but with the help of an expert
Made by expert on your behalf

11. How would you describe yourself as an investor?
Short term (upto 1 year)
Medium term (3 to 5 years)
Long term (More than 5 years)

12. How would you describe yourself as an investor?
Conservative Moderately conservative
Aggressive Highly Aggressive


13. Are you aware about Mutual Funds?
Yes No













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14. If Yes how did you come to know about Mutual Funds?
Advertisements Banks Financial Advisors
Newspapers/Magazine Internet Peer Group
Others, Specify .

15. Have you ever invested in Mutual Funds?
Yes No

16. If not invested in Mutual Funds, then why?
Not aware of Mutual Funds
Higher risk
Capital depreciation possible
Others, Specify

17. If invested in Mutual Funds, where do you find yourself as a mutual fund investor?
Totally ignorant
Partial knowledge of mutual funds
Aware only about the specific scheme in which you invested
Fully aware

18. In which kind of mutual funds have you invested?
Public
Private
Foreign

19. In which Mutual fund do you invest frequently?
HDFC SBI ICICI
UTI Franklin Templeton Reliance
Kotak Mahindra Others, Specify












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20. Approximately how much portion of your savings are invested in Mutual Funds?
Less than 10%
10% 30%
30% 50%
More than 50 %

21. Which feature of Mutual Fund attracts you the most?
Professional Management
Diversification
Liquidity
Return Potential
Low cost
Transparency
Convenient Regulation
Flexibility

22. Rate the following avenues of investment you feel is the most effective means of
investment.
` Excellent Good Fair Poor
Bank Deposits
Shares/Debentures
Insurance
Mutual Funds
Real Estate
Public Deposits
PF and PPF
Post Office Deposits
Gold, Silver and Other
Precious Metals


*********
Thank You



Page | 53


BIBLIOGRAPGHY

Books:-
H. Sadhak, 2003, Mutual Funds In India: Marketing Strategies And Investment Practices:
Second Edition, 2nd Edition, SAGE Publications Pvt. Ltd, New Delhi.
WebSites:-
www.moneycontrol.com
www.icicipruamc.com
www.amfiindia.com/research-information