Introduction To Mutual Fund and Its Various Aspects
Introduction To Mutual Fund and Its Various Aspects
1 INTRODUCTION
Page 1
grew to73, 500 investors with assets totaling $1.8 billion! Now there are over 7000 different mutual funds available. In Simple Words, Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Investments in securities are spread across a wide cross -section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of Mutual funds are known as unit holders. The profits or losses are shared by the investors in proportion to their investments. The Mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. In India, A Mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public. In Short, a Mutual fund is a common pool of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme. The investment manager would invest the money collected from the investor in to assets that are defined/ permitted by the stated objective of the scheme. For example, an equity fund would invest equity and equity related instruments and a debt fund would invest in bonds, debentures, gilts etc. Mutual fund is a suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
Page 2
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 2004; it reached the height if Rs. 1540 billion. 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.
Page 3
mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.
1.1.3 CONCEPT
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
Page 4
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. 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. A mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. In other words we can say that A Mutual Fund is a trust registered with the Securities and Exchange Board of India (SEBI), which pools up the money from individual / corporate investors and invests the same on behalf of the investors /unit holders, in equity shares, Government securities, Bonds, Call money markets etc., and distributes the profits. The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. The value of all the securities in the portfolio in calculated daily. From this, all expenses are deducted and the resultant value divided by the number of units in the fund is the funds NAV. Page 5
Total value of the fund. NAV= No. of shares currently issued and outstanding
Page 6
INVESTORS ON PROPORTIONATE BASIS GET MUTUAL FUND UNITS FOR THE SUM CONTRIBUTED TO THE POOL
THE MONEY COLLECTED FROM INVESTORS IS INVESTED INTO SHARE, DEBENTURE AND OTHER SECURITIES BY THE FUND MANAGER
THE FUND MANAGER REALISES GAINS OR LOSSES, AND COLLECTS DIVIDEND OR INTEREST INCOME
ANY GAIN OR LOSS FOR SUCH INVESTMENT ARE PASSED ON TO THE INVESTORS IN THE PROPORTION OF THE NUMBER OF UNITS HELD BY THEM
Page 7
1. Photo PAN Card. 2. In case of non-photo PAN card in addition to copy of PAN card any one of the following: Driving license/passport copy/ voter id/ bank photo pass book. Proof of address (any of the following):latest telephone bill, latest electricity bill, Passport, latest bank passbook/bank account statement, latest Demat account statement, voter id, driving license, ration card, rent agreement.
Page 8
MUTUAL FUNDS
EQUITY FUND Open Ended Funds Closed Ended Funds BALANCED FUND
DEBT FUND
TAX SAVING SCHEME
SPECIAL SCHEME
Close-ended funds: These funds raise money from investors only once. Therefore, after the offer period, fresh investments can not be made into the fund. If the fund is listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, most of the New Fund Offers of close-ended funds provided liquidity window on a periodic basis such as monthly or weekly. Redemption of units can be made during specified intervals. Therefore, such funds have relatively low liquidity.
Equity funds: These funds invest in equities and equity related instruments. With
Fluctuating share prices, such funds show volatile performance, even losses. However, short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have outperformed all asset classes in the long term. Hence, investment in equity funds should be considered for a period of at least 3-5 years. It can be further classified as:
i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is
tracked. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weightage.
ii) Equity diversified funds- 100% of the capital is invested in equities spreading
across different sectors and stocks.
iii|) Dividend yield funds- it is similar to the equity diversified funds except that they invest in
companies offering high dividend yields.
iv) Thematic funds- Invest 100% of the assets in sectors which are related through
some theme. e.g. -An infrastructure fund invests in power, construction, cements sectors etc.
v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will
invest in banking stocks.
vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.
Page 10
Balanced fund: Their investment portfolio includes both debt and equity. As a result,
on the risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments.
i) Debt-oriented funds -Investment below 65% in equities. ii) Equity- oriented funds - Invest at least 65% in equities, remaining in debt.
Debt fund: They invest only in debt instruments, and are a good option for investors
averse to idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income instruments like bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds depending on your investment horizon and needs.
i) Liquid funds- These funds invest 100% in money market instruments, a large
portion being invested in call money market.
ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills. iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt
instruments which have variable coupon rate.
iv) Arbitrage fund- They generate income through arbitrage opportunities due to mispricing
between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities.
v) Gilt funds LT- They invest 100% of their portfolio in long-term government
securities.
vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term
debt papers.
vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an
exposure of 10%-30% to equities. Page 11
viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with
that of the fund.
Transparency.
Mutual funds offer daily NAVs of schemes, which help you to monitor your investments on a regular basis. They also send quarterly newsletters, which give details of the portfolio, performance of schemes against various benchmarks, etc. They are also well regulated and SEBI monitors their actions closely.
Tax benefits.
You do not have to pay any taxes on dividends issued by mutual funds. You also have the advantage of capital gains taxation. Tax-saving schemes and pension schemes give you the added advantage of benefits under section 88. Page 12
Affordability
Mutual funds allow you to invest small sums. For instance, if you want to buy a portfolio of blue chips of modest size, you should at least have a few lakhs of rupees. A mutual fund gives you the same portfolio for meager investment of Rs.1,000-5,000. A mutual fund can do that because it collects money from many people and it has a large corpus.
Professional Management.
The major advantage of investing in a mutual fund is that you get a professional money manager to manage your investments for a small fee. You can leave the investment decisions to him and only have to monitor the performance of the fund at regular intervals.
Diversification.
Considered the essential tool in risk management, mutual funds make it possible for even small investors to diversify their portfolio. A mutual fund can effectively diversify its portfolio because of the large corpus. However, a small investor cannot have a well- diversified portfolio because it calls for large investment. For example, a modest portfolio of 10 blue chip stocks calls for a few a few thousands.
Convenient Administration
Mutual funds offer tailor-made solutions like systematic investment plans and systematic withdrawal plans to investors, which is very convenient to investors. Investors also do not have to worry about investment decisions, they do not have to deal with brokerage or depository, etc. for buying or selling of securities. Mutual funds also offer specialized schemes like retirement plans, childrens plans, industry specific schemes, etc. to suit personal preference of investors. These schemes also help small investors with asset allocation of their corpus. It also saves a lot of paper work.
Costs Effectiveness
A small investor will find that the mutual fund route is a cost-effective method (the AMC fee is normally 2.5%) and it also saves a lot of transaction cost as mutual funds get concession from brokerages. Also, the investor gets the service of a financial professional for a very small fee. If he Page 13
were to seek a financial advisor's help directly, he will end up paying significantly more for investment advice. Also, he will need to have a sizeable corpus to offer for investment management to be eligible for an investment advisers services.
Page 14
Step Six - The final step: Finally we need to fill in the application forms of various fund schemes and start investing. We may reap the rewards in the years to come. Mutual fund are suitable for every kind of investor - whether starting a career or retiring, conservative or risk taking, growth oriented or income seeking.
2. 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.
3. Systematic Withdrawal Plan: If someone wishes to withdraw from a mutual fund then he
can withdraw a fixed amount each month.
Page 16
SBI Mutual Fund is Indias largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation. The fund traces its lineage to SBI - Indias largest banking enterprise. The institution has grown immensely since its inception and today it is India's largest bank, patronized by over 80% of the top corporate houses of the country. SBI Funds Management Pvt. Ltd. is one of the leading fund houses in the country with an investor base of over 5.8 million and over 20 years of rich experience in fund management consistently delivering value to its investors. SBI Funds Management Pvt. Ltd. is a joint venture between 'The State Bank of India' one of India's largest banking enterprises, and Socit Gnrale Asset Management (France), one of the world's leading fund management companies that manages over US$ 500 Billion worldwide. A total of over 5.8 million investors have reposed their faith in the wealth generation expertise of the Mutual Fund. Schemes of the Mutual fund have consistently outperformed benchmark indices and have emerged as the preferred investment for millions of investors and HNIs. Today, the fund manages over Rs. 42,100 crores of assets and has a diverse profile of investors actively parking their investments across 38 active schemes. The fund serves this vast family of investors by reaching out to them through network of over 130 points of acceptance, 29 investor service centers, 59 investor service desks and 6 Investor Service Points. SBI Mutual is the first bank-sponsored fund to launch an offshore fund Resurgent India Opportunities Fund. Growth through innovation and stable investment policies is the SBI MF credo.
Equity schemes
The investments of these schemes will predominantly be in the stock markets and endeavor will be to provide investors the opportunity to benefit from the higher returns which stock markets can provide. However they are also exposed to the volatility and attendant risks of stock markets and hence should be chosen only by such investors who have high risk taking capacities and are willing to think long term. Equity Funds include diversified Equity Funds, Sectoral Funds and Index Funds. Diversified Equity Funds invest in various stocks across different sectors while sectoral funds which are specialized Equity Funds restrict their investments only to shares of a particular sector and hence, are riskier than Diversified Equity Funds. Index Funds invest passively only in the stocks of a particular index and the performance of such funds move with the movements of the index. Magnum COMMA Fund Magnum Equity Fund Magnum Global Fund Magnum Index Fund Magnum Midcap Fund Magnum Multicap Fund Magnum Multiplier plus 1993 Magnum Sectoral Funds Umbrella MSFU- Emerging Business Fund MSFU- IT Fund MSFU- Parma Fund MSFU- Contra Fund MSFU- FMCG Fund
SBI Arbitrage Opportunities Fund SBI Blue chip Fund SBI Infrastructure Fund - Series I Page 18
SBI Magnum Tax gain Scheme 1993 SBI ONE India Fund SBI TAX ADVANTAGE FUND SERIES
Debt schemes
Debt Funds invest only in debt instruments such as Corporate Bonds, Government Securities and Money Market instruments either completely avoiding any investments in the stock markets as in Income Funds or Gilt Funds or having a small exposure to equities as in Monthly Income Plans or Children's Plan. Hence they are safer than equity funds. At the same time the expected returns from debt funds would be lower. Such investments are advisable for the risk-averse investor and as a part of the investment portfolio for other investors. Magnum Childrens benefit Plan Magnum Gilt Fund Magnum Income Fund Magnum Insta Cash Fund Magnum Income Fund- Floating Rate Plan Magnum Income Plus Fund Magnum Insta Cash Fund -Liquid Floater Plan Magnum Monthly Income Plan Magnum Monthly Income Plan - Floater Magnum NRI Investment Fund SBI Premier Liquid Fund
BALANCED SCHEMES
Magnum Balanced Fund invests in a mix of equity and debt investments. Hence they are less risky than equity funds, but at the same time provide Commensurately lower returns. They provide a good investment opportunity to investors who do not wish to be completely exposed to equity markets, but is looking for higher returns than those provided by debt funds. Page 19
YEAR 2007
OUTLOOK MONEYNDTV Profit Award 2007 CNBCAWAAZ CONSUMER AWARD 2007 Page 20
LIPPER AWARDThe Lipper India fund award 2007 ICRA Mutual Fund Award 2007 CNBC TV18- CRISIL Mutual Fund of the year award 2007
YEAR 2008
OUTLOOK MONEYLIPPER AWARDThe Lipper India fund award 2008 ICRA Mutual Fund Award 2008
ICRA
YEAR 2009
Mutual Fund Award 2009 LIPPER AWARDThe Lipper India fund award 2009
YEAR 2010
ICRA Mutual Fund Award 2010
Page 21
Sub Objective:
To check which mutual fund company the people of Tinsukia are mostly aware of. The customer of the company falls under which age. To know why one has invested or not invested in SBI Mutual fund.
Page 22
not given actual answers of my questionnaire. The study was limited to town only. A sample size of 30 may not give a proper idea and reflection about the view of the whole population of Tinsukia.
Page 23
Data sources:
Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites.
Sampling:
Sampling procedure: The sample was selected of them who are the customers/visitors of State Bank if India, irrespective of them being investors or not or availing the services or not. It was also collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool. Sample size: The sample size of my project is limited to 30 people only. Out of which only 120 people had invested in Mutual Fund. Other 80 people did not have invested in Mutual Fund. Page 24
Sample design: Data has been presented with the help of bar graph, pie charts, line graphs etc.
ANALYSIS 1:
Q) Age: a) 20- 30 yrs b) 31- 40 yrs c) 41-50 yrs d) 51-60 yrs e) 61 and above Respondents age was asked in this question. The total percentage is shown below out of these 5 groups of the 30 respondents. AGE GROUP 20-30 YEARS 31-40 YEARS 41-50 YEARS 51-60 YEARS 61 AND ABOVE TOTAL RESPONDENT 7 10 9 3 1 PERCENTAGE % 23.3 33.3 30 10 3.33
Page 25
The highest number of respondents were from the age group 31- 40 and least number of respondent were from age 60 yrs and above .
ANALYSIS 2
Q) Sex: M F
The proportion of the male and the female in the sample size was determined by this equation. SEX Male Female 25 5 TOTAL 83.3 16.6 PERCENTAGE%
Page 26
The marital status of the respondents was determined by this question. MARITAL STATUS MARRIED SINGLE TOTAL 12 18 PERCENTAGE% 40 60
ANALYSIS 4:
Page 27
The respondents were asked whether they invested. INVESTED Yes No TOTAL 28 2 PERCENTAGE 93.3 6.66
ANALYSIS 5:
Q) What kind of investment do you prefer ? a. Savings account e. Mutual Funds b. Fixed Deposits f. Post Office /NSC c. Insurance d. Gold/ silver h. Real state g. Shares/ debentures
In this question the respondent were asked what kind of investment did they prefer.
Page 28
INVESTMENT PREFERENCE Savings account Fixed Deposits Insurance Gold/ silver Mutual Funds Post Office /NSC Shares/ debentures Real state
TOTAL 7 6 4 0 8 1 1 1
28.57% of the respondent invest in mutual fund , while 25% in savings account and 21.42% invest in fixed deposits and none of the respondent invested in gold/silver.
ANALYSIS 6:
Q) While investing your money , which factor will you prefer ? a. Liquidity b. Low Risk c. High Return d. Companies Reputation
In this questin the respondents were asked which factor they prefered whne they invested their money . FACTOR Liquidity TOTAL 8 PERCENTAGE% 28.57 Page 29
10 7 3
35.71 25 10.7
Most of the respondent invest in those securities where there is low risk.
ANALYSIS 7:
Q) Are you aware about Mutaul Funds? Yes AWARNESS YES NO No TOTAL 30 PERCENTAGE% 100%
Page 30
ANALYSIS 8:
Q) How did you come to know about Mutual Funds? a. Advertisment Sources Adverstisment Banks Financial Advisor b. Banks Total 20 3 7 c. Financial Advisors Percentage% 66.6 10 23.3
66.66% of the respondent are aware about mutual funds through advertisment.
ANALYSIS 9:
Q) Have you ever invested in Mutual Funds? a. Yes Invested Yes No b. No Total 8 22 Percentage% 26.66 73.33
Page 31
ANALYSIS 10:
Q) If you have not invested in mutal fuds , then why ? a. High Risk b. Not Aware c. No specific reason
Total 12 0 10
12 people donot invest in mutual fund because of high risk and 9 of them do not have any specific reason for not investing.
ANALYSIS 11:
Page 32
Q) Where do you find yourself as a mutual fund investor ? a. Long time investor b. short time investor
Total 4 4
percentage 50 50
Some respondent are long term investors and some are short term investors.
ANALYSIS 12:
Q) In which type of mutual fund you like to invest ? a. Private b. Public Total 3 2 3 C. Both percentage 37.5 25 37.5
Page 33
ANALYSIS 13:
Q) In which mutual fund have you invested ? a. SBI g. OTHERS Mutual fund co.s SBI ICICI KOTAK UTI HDFC RELIANCE OTHERS Total 3 1 1 0 0 2 1 percentage 37.5 12.5 12.5 25 12.5 b. ICICI c. KOTAK d. UTI e. HDFC f. RELAINCE
Page 34
37.5% of the respondent invested in SBI mutual funds,25% invested in reliance mutual fund.
ANALYSIS 14: Q) If you have invested in SBI theni. Why did you invest in SBI mutual fund? a. Because it is related to state bank b. High Return c. Brokers advice
Total 1 0 2
Page 35
66.66% of the respondent invested in SBI mutual fund because of their brokers advice.
ii. If you have not invested in SBI then why ? a. Not aware d. No specific reason Reason Not aware Already Invested Less return No specific reason Total 0 2 0 3 percentage 40 60 b. Already invested c. less return
Page 36
60% of the respondent who did not invest in SBI mutal funds had no specific reason for not investing.
ANALYSIS 15 Q) How would you like to receive the return every year? a. Dividend Payout Ways Dividend payout Dividend reinvested Growth in NAV b. Dividend re-investment total 2 2 4 c. Growth in NAV percentage 25 25 50
Page 37
93.33% of the respondents invest in securities, while the rest dont invest in any kind of securities.
28.57% invest in mutual fund, 25% invest in savings account , 21.42% invest in fixed deposits, 14.28% invest in securities and the rest invest in shares/debentures, real estate, post office and NCS.
35.71% invest in those securities were the risk is low , 28.57 % invest in those securities which has easy liquidity, 25% in those having high return, and 10.7% in those securities whose company name is reliable.
All the investors were aware about mutual funds. 66.6% of the respondents were aware about mutual funds through advertisement, 10% through banks and 23.3% through financial advisors.
26.6% invest in mutual fund , and the rest 73.3% invest in some other securities. 54.54% dont invest in securities because of high risk , 45.45 % did not have a specific reason for not investing in mutual fund.
50% of the respondents are long term investors while 50% are short term investors. 37.5% of the respondent prefer private , 25% prefer public and 37.5% prefer both kind of securities.
37.5% invest in SBI mutual fund, 12.5 % invest in ICICI , 12.5 % invest in KOTAK, 25% invest in Reliance, 12.5 % invest in other mutual fund companies.
66.6% invest in SBI Mutual fund because of their brokers advice and the rest 33.3% invested in SBI Mutual fund because it was related to State bank of india.
60% had no specific reason for not investing in SBI Mutual fund. 40 % did not invest in SBI mutual fund because they have already invested in some other AMC. Page 38
50% of the respondent need growth in NAV as a return every year. And the rest require dividend payout and dividend reinvested as a return every year .
CHAPTER 5
RECOMMENDATION AND SUGGESTIONS
The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing.
Page 39
Mutual funds offer a lot of benefit which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is? They only see it as just another investment option. So the advisors should try to change their mindsets. The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective, because they are the main source to influence the investors. Before making any investment Financial Advisors should first enquire about the risk tolerance of the investors/customers, their need and time (how long they want to invest). By considering these three things they can take the customers into consideration. Younger people aged under 35 will be a key new customer group into the future, so making greater efforts with younger customers who show some interest in investing should pay off. Customers with graduate level education are easier to sell to and there is a large untapped market there. To succeed however, advisors must provide sound advice and high quality. Systematic Investment Plan (SIP) is one the innovative products launched by Assets Management companies very recently in the industry. SIP is easy for monthly salaried person as it provides the facility of do the investment in EMI. Though most of the prospects and potential investors are not aware about the SIP. There is a large scope for the companies to tap the salaried persons.
Page 40
CHAPTER 6
CONCLUSION
Running a successful Mutual Fund requires complete understanding of the peculiarities of the Indian Stock Market and also the psyche of the small investors. This study has made an attempt to understand the financial behavior of Mutual Fund investors in connection with the preferences of Brand (AMC), Products, Channels etc. I observed that many of people have fear of Mutual Fund. They think their money will not be secure in Mutual Fund. They need the knowledge of Mutual Fund and its related terms. Many of people do not have invested in mutual fund due to lack of
Page 41
awareness although they have money to invest. As the awareness and income is growing the number of mutual fund investors are also growing. Brand plays important role for the investment. People invest in those Companies where they have faith or they are well known with them. There are many AMCs but only some are performing well due to Brand awareness. Some AMCs are not performing well although some of the schemes of them are giving good return because of not awareness about Brand. Reliance, UTI, SBIMF, ICICI Prudential etc. they are well known Brand, they are performing well and their Assets Under Management is larger than others whose Brand name are not well known like Principle, Sunderam, etc. Distribution channels are also important for the investment in mutual fund. Financial Advisors are the most preferred channel for the investment in mutual fund. They can change investors mind from one investment option to others. Many of investors directly invest their money through AMC because they do not have to pay entry load. Only those people invest directly who know well about mutual fund and its operations and those have time.
QUESTIONNAIRE
Respected sir/ madam, I am a student of B.com Part III. As per the requirement and partial fulfillment of the curriculum I am going through a project study on ANALYSIS OF MUTUAL FUND ". The questionnaire has been designed to find out the facts and figures relating to this topic. Your response will be kept strictly confidential and be used only for academic purpose. Your few minutes of time will help me in a great way. Naazla Fatima
Page 42
Personal details :
(a). Name:(b). Age:20-30 [ ] 31-40 [ ] 41-50 [ ] 51-60 [ ] 60 above [ ]
Please tick ()
Male [ ] Married [ ]
Female [ ] single [ ]
1. Do you invest ?
Yes [ ]
No [ ]
a. Saving account [ ]
b. Fixed deposits [ ]
c. Insurance [ ]
d. Gold/ Silver [ ]
a. Yes [ ]
b. No [ ] Page 43
a. Advertisement [ ]
b. Banks [ ]
c. Financial Advisors [ ]
a. Yes [ ]
b.No [ ]
a. High risk [ ]
b. Not aware [ ]
a. Private
[ ]
b. Public [ ]
c. both [ ]
10. In which mutual fund have you invested ? a. SBI [ ] b. ICICI [ ] c. Kotak [ ] d. UTI [ ] e. HDFC [ ] f. RELIANCE [ ]
g. OTHERS [ ] 12. IF YOU HAVE INVESTED IN SBI THEN i. why did you invest in SBI mutual fund ?
[ ]
Page 44
[ ] [ ]
a. not aware [ ]
d. No specific reason [ ]
14. How would you like to receive the returns every year?
b. Dividend re-investment [ ]
THANK YOU
BIBLIOGRAPHY
WWW.SBIMF.COM WWW.GOOGLE.COM
WWW. WIKIPEDIA.COM
Page 45
WWW.SHAREMARKET.COM
WWW.MUTUALFUNDSINDIA.COM
Page 46