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A Study About Awareness and Perception of Mutual Fund As Investment
A Study About Awareness and Perception of Mutual Fund As Investment
PROJECT REPORT
ON
“A study about awareness and perception of mutual fund as Investment
option among financial advisors in Bharuch District.”
For
“NJ India Invest PVT. LTD.”
Submitted to
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
Under
AKTU, Lucknow
UNDER THE GUIDANCE OF
Faculty Guide Company Guide
Dr. Faraz Ahmad Mr. Dharmesh Bhatt
Asst. Professor Branch Manager
Submitted by
Mahavish Islam
Enrollment No.:
M.B.A – SEMESTER III
Al-Barkaat Institute of Management Studies
M.B.A. PROGRAMME
Abul Kalam Technical Unversity, Lucknow
Batch: 2019 - 21
1
PREFACE
Progress is continuous process. It is relative and absolute. It cannot stop at
certain destination and declare that target has achieved.
The summer training program is designed to give the manager of the future, a
feel of the corporate happening and work culture. These real life situations are
entirely different from the situation exercise enacted in an artificial
environment in side of classroom. And it is precisely because of this reason
that this summer training is a bridge between the institute and the
organization. Summer training program helped me to understand how
theoretical knowledge will be applied in practical field.
I Mahavish Islam, hereby declare that the report " Summer Internship Project"
entitled '' A study on awareness and perception of mutual fund as
investment option among financial advisors in Bharuch District at NJ India
Invest PVT LTD." is a result of my own work and my indebtedness to other
work publications, references, if any, have been duly acknowledged.
Mahavish Islam
EXECUTIVE SUMMARY
NJ India Invest is the Mutual Fund based service provider company in
Bharuch, India. NJ India Invest PVT.LTD., Its Main branch in Surat, Is
providing best value for money through personalized services, committed to
high standards of corporate governance, highest levels of transparency,
accountability and integrity in all its activities. It operates 100 Offices in
different 19 States of India. Since its commencement of business in 1994, it
has followed a consistent growth path and is established as one of the largest
network of distributors for financial products in India with the support and
confidence of its clients, investors, employees and associates.
I select Descriptive research design for my survey so, I take response to only
financial advisor. And my respondent all are not connected with mutual fund
directly or indirectly. I take 100 sample size and develop a questionnaire for
primary data collection. I did fieldwork and going to different Tax consultant
offices, Life insurance offices of different cites and collect the data and
appointment for personal meeting. The secondary data was collected from
journals, magazine and internet Report published by RBI and UTI India.
Special focus was made to know the Awareness about mutual fund and those
who are entrusted in mutual fund advisory business I explained them about
joining and AMFI exam of Procedure.
Financial advisors main Focus on client satisfaction and market safety. It was
found that most of the respondents are that much aware about company and
current Things of mutual fund. And most of the respondents are complaining
about after sales services from different companies. It was found that
respondents have positive perception about Mutual fund advisory business.
TABLE OF CONTENTS
Preface 4
Acknowledgement 5
Declaration 6
Executive summary 7
SR. PARTICULARS PAGE
NO. NOS.
PART- l GENERAL INFORMATION
1 1.1 Introduction of Mutual Fund 12
1.2 History of Mutual Fund Industry 13
1.3 Indian scenario of Mutual Fund Industry 14
1.4 Growth of Industry 14
1.5 Structure of Mutual Fund in India 18
2 2.1 Company Profile 22
3 3.1 Product Profile 50
PART-ll PRIMARY STUDY
4 4.1 Introduction of Study 54
4.2 Literature Review 55
4.3 Problem Statement and Importance of Study 58
4.4 Objective of Study 59
5 Research Methodology
5.1 Research Design 61
5.2 Sources of Data 61
5.3 Sample Size 61
5.4 Data Collection Method 61
Mutual fund is a trust that pools the savings of a number of investors who
share a common financial goal. This pool of money is invested in accordance
with a stated objective. The joint ownership of the fund is thus “Mutual”, i.e. the
fund belongs to all investors. 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 proportion 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. A Mutual Fund is an
investment tool that allows small investors access to a well-diversified portfolio
of equities, bonds and other securities. Each shareholder participates in the
gain or loss of the fund. Units are issued and can be redeemed as needed.
The fund’s Net Asset value (NAV) is determined each day.
When an investor subscribes for the units of a mutual fund, he becomes part
owner of the assets of the fund in the same proportion as his contribution
amount put up with the corpus (the total amount of the fund). Mutual Fund
investor is also known as a mutual fund shareholder or a unit holder.
Any change in the value of the investments made into capital market
instruments (such as shares, debentures etc) is reflected in the Net Asset
Value (NAV) of the scheme. NAV is defined as the market value of the Mutual
Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by
dividing the market value of scheme's assets by the total number of units
issued to the investors.
[Graph A] Mutual Fund Operation Flow Chart
The stock market crash in 1929, the Great Depression, and the outbreak of
the Second World War slack-ended the pace of growth of the mutual fund
industry. Innovations in products and service increased the popularity of
mutual fund in the 1950s and 1960s. The first international stock mutual fund
was introduced in the US in 1940. In 1976, the first tax-exempt municipal
bond funds emerged and in 1979, the first money, market mutual funds were
created. The latest additions are the international bond fund in 1986 and arm
funds in 1990. This industry witnessed substantial growth in the 1980s and
1990s when there was a significant increase in the number of mutual funds,
schemes, assets, and shareholders. In the US, the mutual fund industry
registered a tenfold growth in the 1980s (1980-89) only, 25% of the household
sector made through them. Fund assets increased from less than USD 150
billion in 1980 to over USD 4 trillion by the end of 1997. Since 1996, mutual
fund assets have exceeded bank deposits. The mutual fund industry and the
banking industry virtually rival each other in size.
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.
Though the growth was slow, but it accelerated from the year 1987 when non-
UTI players entered the Industry.
In the past decade, Indian mutual fund industry had seen a dramatic
improvement, both qualities wise as well as quantity wise. Before, the
monopoly of the market had seen an ending phase; the Assets Under
Management (AUM) was Rs67 billion. The private sector entry to the fund
family raised the AUM to Rs. 470 billion in March 1993 and till April 2014; it
reached the height if Rs. 19.47 lakhs crore.
The Mutual Fund Industry is obviously growing at a tremendous space with the
mutual fund industry can be broadly put into four phases according to the
development of the sector. Each phase is briefly described as under.
The Mutual Fund industry in India started in 1963 with formation of UTI in 1963
by an Act of Parliament and functioned under the Regulatory and
administrative control of the Reserve Bank of India (RBI). In 1978, UTI was de-
linked from the RBI and the Industrial Development Bank of India (IDBI) took
over the regulatory and administrative control in place of RBI. Unit Scheme
1964 (US ’64) was the first scheme launched by UTI. At the end of 1988, UTI
had ₹ 6,700 crores of Assets Under Management (AUM).
SECOND PHASE - 1987-1993 - ENTRY OF PUBLIC SECTOR
MUTUAL FUNDS
The year 1987 marked the entry of public sector mutual funds set up by Public
Sector banks and Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC). SBI Mutual Fund was the first ‘non-UTI’
mutual fund established in June 1987, followed by Canbank Mutual Fund
(Dec. 1987), Punjab National Bank Mutual Fund (Aug. 1989), Indian Bank
Mutual Fund (Nov 1989), Bank of India (Jun 1990), Bank of Baroda Mutual
Fund (Oct. 1992). LIC established its mutual fund in June 1989, while GIC had
set up its mutual fund in December 1990. At the end of 1993, the MF industry
had assets under management of ₹47,004 crores.
The Indian securities market gained greater importance with the establishment
of SEBI in April 1992 to protect the interests of the investors in securities
market and to promote the development of, and to regulate, the securities
market.
In the year 1993, the first set of SEBI Mutual Fund Regulations came into
being for all mutual funds, except UTI. The erstwhile Kothari Pioneer (now
merged with Franklin Templeton MF) was the first private sector MF registered
in July 1993. With the entry of private sector funds in 1993, a new era began in
the Indian MF industry, giving the Indian investors a wider choice of MF
products. The initial SEBI MF Regulations were revised and replaced in 1996
with a comprehensive set of regulations, viz., SEBI (Mutual Fund) Regulations,
1996 which is currently applicable.
The number of MFs increased over the years, with many foreign sponsors
setting up mutual funds in India. Also the MF industry witnessed several
mergers and acquisitions during this phase. As at the end of January 2003,
there were 33 MFs with total AUM of ₹1,21,805 crores, out of which UTI alone
had AUM of ₹44,541 crores.
FOURTH PHASE - SINCE FEBRUARY 2003 – APRIL 2014
In February 2003, following the repeal of the Unit Trust of India Act 1963, UTI
was bifurcated into two separate entities, viz., the Specified Undertaking of the
Unit Trust of India (SUUTI) and UTI Mutual Fund which functions under the
SEBI MF Regulations. With the bifurcation of the erstwhile UTI and several
mergers taking place among different private sector funds, the MF industry
entered its fourth phase of consolidation.
Following the global melt-down in the year 2009, securities markets all over
the world had tanked and so was the case in India. Most investors who had
entered the capital market during the peak, had lost money and their faith in
MF products was shaken greatly. The abolition of Entry Load by SEBI,
coupled with the after-effects of the global financial crisis, deepened the
adverse impact on the Indian MF Industry, which struggled to recover and
remodel itself for over two years, in an attempt to maintain its economic
viability which is evident from the sluggish growth in MF Industry AUM
between 2010 to 2013.
In due course, the measures did succeed in reversing the negative trend that
had set in after the global melt-down and improved significantly after the new
Government was formed at the Center.
Since May 2014, the Industry has witnessed steady inflows and increase in
the AUM as well as the number of investor folios (accounts).
The Industry’s AUM crossed the milestone of ₹10 Trillion ( ₹10 Lakh
Crore) for the first time as on 31st May 2014 and in a short span
of three years the AUM size has crossed ₹19.47 lakh crore in may
2017
In fact, the MF Industry has more doubled its AUM in the last 4 years
from ₹ 5.87 trillion as on 31st March, 2012 to ₹ 12.33 trillion as on 31st
March, 2016 and further grown to ₹ 16.07 trillion as on 31st August
2016.
The no. of investor folios has gone up from 3.95 crore folios as on 31-
03-2014 to 4.98 crore as on 31-08-2016.
On an average 3.38 lakh new folios are added every month in the last
2 years since Jun 2014.
Mutual fund industry added 77.4 lakh retail folios in the financial year
2016-17.
The growth in the size of the Industry has been possible due to the twin effects
of the regulatory measures taken by SEBI in re-energizing the MF Industry in
September 2012 and the support from mutual fund distributors in expanding
the retail base.
Assets managed by the Indian mutual fund industry have grown from Rs.
14.90 trillion in June 2016 to Rs. 19.92 trillion in June 2017. That represents a
34% growth in assets over June 2016.
The structure of Mutual Funds in India is a three-tier one. There are three
distinct entities involved in the process – the sponsor (who creates a Mutual
Fund), trustees and the asset management company (which oversees the
fund management). The structure of Mutual Funds has come into existence
due to SEBI (Securities and Exchange Board of India) Mutual Fund
Regulations, 1996. Under these regulations, a Mutual Fund is created as a
Public Trust. We will look into the structure of Mutual Funds in a detailed
manner.
The Fund Sponsor is the first layer in the three-tier structure of Mutual Funds
in India. SEBI regulations say that a fund sponsor is any person or any entity
that can set up a Mutual Fund to earn money by fund management. This fund
management is done through an associate company which manages the
investment of the fund. A sponsor can be seen as the promoter of the
associate company. A sponsor has to approach SEBI to seek permission for a
setting up a Mutual Fund. Once SEBI agrees to the inception, a Public Trust is
formed under the Indian Trust Act, 1882 and is registered with SEBI. Trustees
are appointed to manage the trust and an asset management company is
created complying with the Companies Act, 1956.
There are eligibility criteria given by SEBI for the fund sponsor:
The net worth of the sponsor in the immediate last year has to be
greater than the capital contribution of the AMC.
The sponsor must show profits in at least three out of five years which
includes the last year as well.
The sponsor must have at least 40% share in the net worth of the
asset management company. Any entity that fulfils the above criteria
can be termed as a sponsor of the Mutual Fund.
Trust and trustees form the second layer of the structure of Mutual Funds in
India. A trust is created by the fund sponsor in favour of the trustees, through a
document called trust deed. The trust is managed by the trustees and they are
answerable to investors. They can be seen as primary guardians of fund and
assets. Trustees can be formed by two ways – a Trustee Company or a Board
of Trustees. The trustees work to monitor the activities of the Mutual Fund and
check its compliance with SEBI (Mutual Fund) regulations. They also monitor
the systems, procedures, and overall working of the asset management
company. Without the trustees’ approval, AMC cannot float any scheme in the
market. The trustees have to report to SEBI every six months about the
activities of the AMC.
Asset Management companies are the third layer in the structure of Mutual
Funds. The asset management company acts as the fund manager or as an
investment manager for the trust. A small fee is paid to the AMC for managing
the fund. The AMC is responsible for all the fund-related activities. It initiates
various schemes and launches the same. The AMC is bound to manage funds
and provide services to the investor. It solicits these services with other
elements like brokers, auditors, bankers, registrars, lawyers, etc. and works
with them. To ensure that there is no conflict between the AMCs, there are
certain restrictions imposed on the business activities of the companies.
These are the entities who provide services to Mutual Funds. RTAs are more
like the operational arm of Mutual Funds. Since the operations of all Mutual
Fund companies are similar, it is economical in scale and cost efficient for all
the 44 AMCs to seek the services of RTAs. CAMS, Karvy,
Sundaram, Principal, Templeton, etc are some of the well-known RTAs in
India. Their services include
AUDITOR:
Auditors audit and scrutinize record books of accounts and annual reports of
various schemes. Each AMC hires an independent auditor to analyses the
books so as to keep their transparency and integrity intact.
BROKER:
AMC uses the services of brokers to buy and sell securities on the stock
market. The AMCs uses research reports and recommendations from many
brokers to plan their market moves.
The three-tier structure of the Mutual Funds is in place keeping the fiduciary
nature of the Mutual Funds in mind. It ensures that each element of the
system works independently and efficiently. This structure of Mutual Funds is
in line with the international standards and thus there is a proper separation of
responsibilities and functioning of each constituent of the structure.
Chapter 2
Company Profile
FOUNDER OF THE COMPANY (Directors)
The word “NJ” stands, N for Neeraj Choksi and J for Jignesh Desai the
founder directors of NJ India Invest. Seeing the growing scope of the financial
service sector these two dynamic young men, after completing their
education, started their career with this sector. Both of them decided to jump
into the same field and came out with the dynamic concept of NJ Capital
stock, which is known as NJ India Invest now.
This business was started in the year 1994; it was the period when private
companies were entering the field of financial services. This was the time
when NJ India Invest evolved as a client focused need based investment
advisory firm. NJ has achieved expertise in need based investment of clients.
There are well-trained experts who give a feel on the various assets classes
and explain client the risk associated with each in a simple and lucid manner
to put client at calm. Once the investment is planned and done NJ doesn’t
leave its client in between but NJ back them by periodic valuation report and
regular information through newsletters, mailer, e-mail, road shows etc.
The prime focus of the people at NJ is to help you attain peace of mind on the
investment front.
[2.3]Vision & Mission
Commitment to Excellence
[2.4] Values
At NJ their service and investing thinking is inspire and shape the thoughts,
attitude, actions and decisions of their employees. If NJ would beliefs, At NJ
their Service and investing idea inspire and shape resemble a body; their
philosophy would be their spirit which drives their body.
AMC
NJ
PARTNER
CLIENT
[2.6] Philosophy
At NJ our Service and Investing philosophy inspire and shape the thoughts,
beliefs, attitude, actions and decisions of our employees. If NJ would
resemble a body, our spirit which drives our body.
Culture
NJ believe in keeping ‘You First’, providing you with products and services
that meet your stated and unstated needs. Client satisfaction and client
service is the Mantra NJ constantly recite. This service oriented philosophy
runs throughout the organization, from top to bottom.
Employees are given ample freedom in their work. The objective is to keep an
open, healthy environment with ample scope for enterprise, improvement,
innovations and out-of-the box solutions
NJ’s efforts are constantly engaged in improving its existing services, offering
new and innovative solutions that go beyond your expectations. This focus
has made us one of the most respected and preferred service providers,
especially in the mutual fund industry.
Service is the key to unlocking customer satisfaction, which again is key for
sustainability of any business. At NJ understand this very well. NJ has set
strict processes in place to deliver quality services to customers. At NJ strict
quality service standards are set and a well-defined process is established
and followed religiously by its quality customer service teams. Performance is
evaluated on a frequent and glitches are ironed out.
Further NJ
The service commitments are to guide the actions of the people at NJ. Clearly
stated, customers can freely communicate any such actions/events wherein
they feel that any of the following commitments have been breached /
compromised. NJ desired to honor its commitments at all points of time and to
all its customers without any bias.
Consumer Grievances
[2.10] NJ Business
Started in 2003, the NJ Wealth seeks to reach out to the common man and
extend the opportunity to create wealth through an empowered network of
financial product distributors – the NJ Wealth Partners. To its Partners, NJ
Wealth provides a full service, comprehensive business platform with end-to-
end solutions critical for success in financial products distribution practice.
With it compelling set of offerings covering every area of distribution practice,
NJ Wealth has managed to successfully transform the lives of many small and
big distributors.
The NJ Wealth family has grown steadily and today it has over 24,800+ NJ
Wealth Partners, spread across 97 branches in 23 states in India with over
12,00,000+ investors and over INR 43000+ crore of mutual fund assets under
advice. Irrespective of the numbers though, it is trust in us which fuels the
passion for creating solutions with excellence that touch many lives, day after
day.
Partner Services
Customer Services
Online family "Client Desk" enabling single portfolio view of entire wealth
portfolio Trading & Demat Account with online transacting & call-&-trade
service in mutual funds, direct equity & ETF.
Asset Management
Freedom Portfolio
Insurance Broking
The vision at Global Wealth Advisory platform is to offer a single window for
investment opportunities across the globe to customers. The idea is to bring
to customers a wide range of offshore fund schemes (domiciled in Mauritius,
Luxembourg, Dublin and other jurisdictions), through advisors on the Global
Wealth Advisory platform. NJ Global Invest seeks to provide a offshore fund
distribution platform & offshore Portfolio Advisory services under a B2B
distribution model. NJ Global Invest also desires to offer comprehensive order
routing and trade settlement facility with support services of client reporting &
fees settlement.
NJ Global Invest, is a venture that leverages from rich experience & success
of financial products distribution business in India. Incorporated in Mauritius,
NJ Global Invest is set up an offshore fund distribution company and is a
licensed 'Investment Dealer (Full Service Dealer, excluding underwriting)" by
FSC, Mauritius.
Information Technology
NJ Gurukul is about a vision that aspires to nurture the young talent in India
and to transform them into individuals with knowledge & skills for employment
and enterprise. With special focus on the financial advisors community, NJ
Gurukul today, is a leading provider of training programs in the financial
services industry. NJ Gurukul offers a wide range of training programs by way
of part / full time classroom sessions being conducted at multiple locations
across India. NJ Gurukul has an institutionalized, process driven approach to
training with focus on delivering uniformity in quality & content.
Mr. Kulbhushan
A.V.P. (Marketing)
Nandwani
Mr. Prashant Kakkad A.V.P. (Sales)
INVESTMENT STRATEGIES
Systematic Investment Plan: under this a fixed sum is invested each
month on a fixed date of a month. Payment is made through post dated
cheques or direct debit facilities. The investor gets fewer units when the
NAV is high and more units when the NAV is low. This is called as the
benefit of Rupee Cost Averaging (RCA)
Systematic Transfer Plan: under this an investor invest in debt
oriented fund and give instructions to transfer a fixed sum, at a fixed
interval, to an equity scheme of the same mutual fund.
Systematic Withdrawal Plan: if someone wishes to withdraw from a
mutual fund then he can withdraw a fixed amount each month.
SWOT ANALYSIS
STRENGHTHS
NJ India Invest is a dominant player in the Indian Mutual Funds
distribution business over past several years.
NJ also provides personal websites to its client which is called
as client desk, which other competitors do not provide.
NJ India Invest has Assets Under Management (AUM) more
than 43000+ cores.
NJ India Invest has tie up with all AMC operating in the Mutual
Fund industry.
NJ India Invest has better technological edge compared to other
competitors.
WEAKNESS
NJ India Invest is dominant player in Mutual Fund industry but
not in entire financial product range like Insurance etc. they are
working to achieve that
OPPORTUNITIES
NJ India Invest has great opportunities in front of it as the Mutual
fund has not penetrated in the Indian financial market.
NJ India Invest can utilize the dominant position in the market it
has a huge network of its partners.
THREAT
NJ India Invest is facing competition from the new entrant like
Anagram Security, Angel broking, Karvy Security and many new
and local players. Company also faces competition from IFA
(Independent financial advisors) who are doing direct business
in the AMC.
Chapter 3
Product profile
[3.1] Product Basket
Mutual Fund
NJ has tie-ups with all Asset Management Companies (AMCs) and all mutual
fund schemes are part of the product basket. Eligible Partners can offer any
mutual fund scheme to their client from day one of their association with NJ.
The customers have a single window access to any mutual fund product /
scheme they would like to access.
Capital Market – Direct Equity & ETFs
NJ is a SEBI registered member for NSE & BSE and capital markets. Clients
of NJ Demat & Trading Account service have access to capital market
products of direct equity stocks and Exchange Traded Funds (ETFs). One can
undertake transaction online or through Call & Transact facility.
Fixed Income
NJ has also entered into tie-ups with leading companies / institutions for
distribution of fixed income products, namely Non-Convertible Debentures,
Infrastructure / RBI Bonds, Company Deposits, etc. The availability of fixed
income products in addition to mutual funds makes the product basket even
more attractive.
NJ has its own PMS offerings with NJ Advisory Services Pvt. Ltd., a group
company, being a PMS Service provider. The existing strategies have mutual
fund as the underlying, one of very few in the industry. In addition to this, PMS
products by other leading PMS services providers also regularly form a part of
the product basket with Partners. Clients can subscribe to the PMS products
of NJ / other providers through their Partners. Accesses to NJ PMS products
are exclusively available for NJ Partners only.
Chapter 4
Primary Study
[4.1] Introduction of the study
During the summer internship, I met with Insurance agents, tax consultant,
share broker and explained them about the Mutual Fund and the role of NJ
India as a financial service distributor in India and tried to convey them for
joint with NJ India and do the mutual fund business. Some of the Financial
Advisors does not aware about the mutual fund.
We know that the mutual fund is the good option for investment. Generally
the investors are taking guidance from financial advisors and then investing
the money. If the Financial Advisors are not aware about mutual fund and not
known about how to invest in mutual fund that’s possible the advisors are only
suggested to the people to invest in insurance, postal saving , govt. securities.
The Financial Advisors in India are must be aware about mutual fund and
how to invest in mutual fund. The India is the youngest country in the world
and the people are more educated compare to last 20 years. In Bharuch
district the advisors are not guide to invest in mutual fund because of lack of
knowledge about mutual fund. The majority investors are invest in Insurance,
Bank Deposit, Postal saving. So the main aim is to give the knowledge about
mutual fund to financial advisor and know the interest of advisor in mutual
fund business.
In a present situation the financial advisors are aware about mutual fund, it
is necessary to provide complete guidance about the investment. Who want to
invest with the little amount in the market or want to possible maximum return
with low risk.
The Financial Advisors are believes that the mutual fund is only an only
market risk. They do not more aware about schemes and plan of mutual fund.
The product could not get much popular in India. As of now is the big
challenge for the MF industry is to mount on financial advisors and spread
further to the semi-urban and rural areas. Financial advisors initiatives in the
business would help toward making MF industry more vibrant and
competitive. Since, the need of study has been aroused in order to see the
awareness and the financial advisor perception regarding the mutual fund in
Bharuch District.
Padmaja
The researcher carried out the study with the aim to measure the ―Customer
Perception towards various types of Mutual Funds". It focuses its attention
towards the possibilities of measuring the expectations and satisfaction level
of more mutual fund products. It also aims to suggest techniques to improve
the present level of perception. The study will help the firm in understanding
the expectations, future needs and requirements and complaints of the
consumers. The study had been dedicated mainly towards the promotion of
product or concept in the Chennai Market. The researcher used the
Descriptive type of research design in her study. The researcher used the
Primary data collection method in her study by framing a structured
Questionnaire. The researcher went with convenient type of sampling method
in her study. The sample is taken as 204 by the researcher. For the purpose
of Analysis and Interpretation the researcher used the following statistical
tools namely Simple Percentage Analysis, Chi-Square Test, Karl Pearson's
Correlation and One way Anova. Based on the Analysis and Interpretation the
researcher arrived out with the major findings in her study and Suggestions
are given in such a way so that the customers can attain the wealth
maximization
The advent of Mutual Funds changed the way the world invested their
money. The start of Mutual Funds gave an opportunity to the common man to
hope of high returns from their investments when compared to other
traditional sources of investment .The main focus of the study is to understand
the attitude, awareness and preferences of mutual fund investors. Most of the
respondents prefer systematic investment plans and got their source of
information primarily from banks and financial advisors. Investors preferred
mutual funds mainly for professional fund management and better returns and
assessed funds mainly through Net Asset Values and past performance
The majority financial advisors are Insurance agent and they are not
aware about the mutual fund, they work as Insurance agent more than 10
years. So they do not show interest in mutual fund business. The investors
are also wants to known about only safe investment option. They do not want
to take any risk on investment so financial advisors only advise about the
secured investment. The mutual fund investment is safe, if the advisor are
suggest to investor about the investment prospect right scheme of mutual
fund at right time and the investor have passions to hold there investment for
long term. But the advisors have threat to suggest mutual fund because of all
the schemes are not performed every time and give high return. Some time
the performance scheme are underperform and that time return on investment
is low that time investor are not satisfied.
The research design for the study is descriptive in nature. The present study
attempts to evaluate the Financial Advisors awareness and perception
regarding mutual fund investment. The Financial Advisors awareness and
perception confined to the only selected Bharuch District.
Primary source:
Secondary Sources:
The research was used survey method for data collection. This study
gathered the desired data through primary sources. Primary data were
collected through a structured questionnaire from the Financial Advisors living
in Bharuch District and work as an insurance agent.
1 to 3 years 15 15.0
4 to 5 years 18 18.0
6 to 10 years 26 26.0
Experience chart
less than 1 year1 to 3 years4 to 5 years6 to 10 years more than 10 years
2%
15%
39%
18%
26%
Interpretation
From the Table 1, it can be seen that 39% of the respondents have the
experience of financial field of more than 10year. And 26% of the respondents
have the experience of financial field of 6 to 10 year. 15% and 18% of the
respondents have the experience of financial field of 1 to 3 years and 4 to 5
year respectively.
Table 2: Financial Advisors are aware about mutual fund
Financial Advisors are aware about mutual fund
Frequency Percent
Yes 64 64.0
No 36 36.0
Total 100 100.0
36 36.0
Frequency Percent
Interpretation
From the Table 2, it can be seen that 64% respondents are aware about the
mutual fund. 36% are not aware about mutual fund so they have no
convenience to run mutual fund advisory business.
Table 3: Financial Advisors suggestion for long term
investment in mutual fund
Financial Advisors suggestion for long term investment in mutual fund
Frequency Percent
equity fund 55 55.0
60
Advisors suggestion for long turm mutual fund Frequency
50
40
Advisors suggestion for long turm mutual fund Percent
30
20
10
Interpretation
From the table 3 it can be seen the 55% financial advisors are suggested
Equity Fund for long time investment in mutual fund. 19% advisors are
suggested to balance and debt fund. For long time investment Equity and
Balance both are good.
Table 4: Financial Advisors suggestion for short term
investment in mutual fund
50
45
40
35
30
25
20
Frequency
15
Percent
10
5
0
Interpretation
From the table 4 it can be seen that 50% out of 100 respondents are
suggested liquid fund / money market for short term investment in mutual fund
and other 23% respondents are suggest to the debt fund. And 21%
responded suggest to hybrid fund, only 6% respondents are suggests equity
fund for short term investment.
Table 5: Investment in Equity fund suggested by financial
advisors based no time period
Investment in Equity fund suggest by financial advisor based on time period
Frequency Percent
less than 1 year 20 20.0
2 to 5 years 22 22.0
6 to 10 years 20 20.0
11 to 15 years 28 28.0
30 28.0
25
22.0
20.0 20.0
20
15 Frequency
Percent
10.0
10
0
less than 1 year2 to 5 years6 to 10 years11 to 15 years more than 15
years
Interpretation
From the table 5 it can be seen that for Equity fund time period suggested by
financial advisors for investment in mutual fund. The investment in equity fund
for long term 28% financial advisors are suggested 11 to 15 years. 22%
advisors are suggested to 2 to 5 years and the 20% are suggested to 6 to 10
years and also 20% suggested to less than one year, only 10 percent financial
advisors are suggested more than 15 years for investing money in equity
fund.
yes, 42%
can't say, 48%
no, 10%
Interpretation
From the Table 6 it can be seen that the financial advisor feel that the mutual
fund is good option for investor. 48% respondents are not say about mutual
fund is good or not so they indicate they have no complete knowledge about
mutual fund. 42% respondents are say mutual fund is good investment so
they have also suggested to investor for invest the money in mutual fund.
Table 7: Respondents interest in mutual fund advisory
business
Respondents interest in mutual fund advisory business
Frequency Percent
Yes 13 13.0
No 87 87.0
Total 100 100.0
13%
yes no
87%
Interpretation
From the table 7 it can be seen that the only 13% respondents are interested
in mutual fund advisory business 87 percent are not interested they indicate
the awareness about mutual fund investment in Bharuch District is less.
Table 8: Relationship between Respondents age and
awareness about mutual fund
aware Age Total
about 18 to 25 26to 35 36 to 45 46 to 55 more
mutual years years years years than 55
fund years
Yes 0 18 31 13 2 64
No 1 7 17 10 1 36
Total 1 25 48 23 3 100
35 31
30
25
20
15 18 17
10
5 13
10
0
7
0 1
2 1
Interpretation
From the table 8 shows the Relationship between respondents age and
awareness about mutual fund total 64 respondents out of 100 are aware
about mutual fund and the age group of 36 to 45 years respondent are 31
percent aware about mutual fund.
Table 9: Factor considered by investor while investing in mutual fund
Factors Frequency Percent
Safety 77 77.0
Liquidity 8 8.0
tax benefit 1 1.0
high return 8 8.0
1%
6%
8%
8%
77%
Interpretation
From the table 9, it can be seen that the 77% respondents are given priority to
safety of investment and 8% respondents are given priority to liquidity of
investment other 8% respondent given priority to high return of the investment
only 1% respondent is given priority to tax benefit.
Chapter 7
Findings
I found that how much experience respondent having. 39 percent
respondents having experience more than 10 years so we can
convenience to them. Because, they have knowledge of financial field.
I found that 34 percent Insurance consultant are not aware about the
mutual fund so they have no convenience to run mutual fund advisory
business.
The insurance consultant gives the priority to safety and second return.
They believes that mutual fund is only have risk scheme they not
aware about all scheme of mutual fund.
Yes No
(If “YES” Then go to Question no. 3)
3. If you are mutual fund advisor, then which mode of investment do you
prefer most?
FACTORS RANK
Safety
Liquidity
Diversification
Tax benefit
High return
Regular income
Regular saving
Others
7. Which among the following you think is the best investment option for
your client?
(You can tick more than one)
Mutual fund Stock market
Insurance Postal saving
Bank deposit Derivatives
Govt. security Gold and silver
Saving and current accounts Other
8. For long term which type of mutual fund do you suggest to your
investors?
9. For short term which type of mutual fund do you suggest to your
investors?
10. For Equity mutual fund specify how much time horizon do you keep in
mind while suggesting to your clients?
11. Do you feel that investors are using mutual fund as a good invest option
these days?
(d) Education :-
Below secondary Higher secondary G Graduate
Post Graduate
(e) Occupation :-
Agriculture Other