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EVALUATION OF MUTUAL FUND INDUSTRY (Akbar)
EVALUATION OF MUTUAL FUND INDUSTRY (Akbar)
PROJECT REPORT ON
Submitted by
Mr.
Dr. Babasaheb Ambedkar Marathwada University, Aurangabad For the Academic Year 2011-2012
Certificate
This is certifying that KHAN MOHD AKBAR Student of MBA (IInd year ) has completed his project report onEVALUATION OF MUTUAL FUND INDUSTRYFOR STANDARD CHARTERED Pvt. Ltd. and submitted satisfactory project report as per the requirement of Dr. BABASAHEB AMBEDKAR MARATHWADA UNIVERSITY in the partial fulfillment of the Master of Business Administration (M.B.A.IInd year ) academic year 2013-2014
GUIDED BY DIRECTOR
Dr. Khalid Hashmi Dr. Shaikh Saleem
DECLARATION
I hereby declare that I have formed, completed and written the project report entitled EVALUATION OF MUTUAL FUND INDUSTRYFOR STANDARD CHARTERED Pvt. Ltd. . It has not been previously submitted for the basis of the award of any degree or other similar title for any other university.
ACKNOWLEDGMENT
I take this opportunity to express my profound debts of gratitude and obligation, to my esteemed guide Prof. Mr. Khalid Hashmi Millennium
Institute of Management.Dr.Rafiq Zakariya Campus Aurangabad. for his most valuable help and creative suggestions at all stages of my work. I am also thankful to Dr. Shaikh Saleem sir, Director of Millennium Institute of Management
Department that has to provide me valuable guidance, which is helpful to fulfillment my Project Report.
SR NO. 1
PAGE NO.
Company Profile
Standard Charted Bank Vision and Strategy
Mutual funds A New window to the investment world What is Mutual fund? Organization of A Mutual Funds Types of Mutual Fund Merits & Demerits of Mutual Fund About Standard Chartered Mutual Fund Mutual Fund Companies RESEARCH METHODOLOGY DATA ANALYSIS Conclusion Recommendations Format of Questionnaires Bibliography
5 6 7 8 9 10
EXECUTIVE SUMMARY
In the contemporary world, many fast mushrooming financial institutions are, offering new product and services to the investors.
They entice them to invest their funds by providing incentives and facilities in terms of flexible investment options and withdrawal plan. Mutual fund comes into this category. The mutual fund industry has grown up in leaps and bounds, particularlyduring the last two decades of the 20th century. Moreover, the entry of private funds (since 1993) has injected a sense of competition and the industry has been witnessing a structural transformation from a public sector monopoly to monopolistic industry.
OBECTIVE OF PROJECT
To evaluate investment performance of mutual fund in terms of risk and return. This project represent a information regarding companies brand awareness and The various services which the Organization provides i.e. financial advisory services specifically. The objective of the project is to understand the customer investment Preferences more effectively and efficiently. To find the financial performance of mutual funds. To know the present scenario of mutual fund Rate of return given by the different mutual fund schemes
COMPANY PROFIL
Overview
Standard Chartered is the world s leading emerging markets bank. Its headquarter is in London. Its business however has always been overwhelmingly international. It employees 30,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, Middle East, Africa, United Kingdom and the Americas. It is one of the world s most recognized banks, with a management team comprising 70 nationalities. The bank serves both consumers and Wholesale banking customers. The Consumer Bank provides credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses. The wholesale bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody leading, foreign exchange and interest rate management and debt capital markets. With nearly 150 years in the emerging markets, the banks has unmatched knowledge and understanding of its customers in its markets. The bank is trusted across network for its standard of governance and its commitment to make a difference in the community in which it operates.
variety of countries including China, South Africa, Zimbabwe, and Malaysia. Today Standard Chartered is still one of the three banks, which print Hong Kong s bank notes.
Standard Chartered PLC In 1969 the decision was made by the Standard Bank and the Chartered Bank to undergo a friendly merger thus forming standard Chartered PLC.
It was one year later that the descendants of the Chartered Bank of India, Australia and China were finally permitted to open a representative office in Sydney, Australia. Standard chartered subsequently acquired the UK based Hodge Group, in which it already had a minority shareholding, and the Wallace Brothers Group. The Hodge Group brought to Standard Chartered an extensive network of UK offices specializing in installment credit and industrial leasing and after a period of rationalization its name was changed to Chartered Trust limited. Standard Chartered operations in Jersey emerged from the integration of other Hodge Group Business with those of Wallace Brothers Bank (Jersey), Limited. Standard Chartered decided, after a merger, to expand the Group outside its traditional markets. In Europe a number of offices were opened including Austria, Belgium, Denmark, and Ireland, Spain and Sweden as well as several major cities in the UK. Standard Chartered also opened offices in Argentina, Canada, Colombia, the Falkland Islands, Panama and Nepal. In the USA, a number of offices were opened and three banks were acquired. These included the Union Bank of California, which gave Standard a Chartered a presence in Brazil and Venezuela. The opening of a branch in Istanbul in 1986 was overshadowed by a far more dramatic event when Lloyds bank of the UK made a hostile take-over bid for Standard chartered. Standard Chartered won its right to remain independent but entered i8nto a period of considerable change. By the late 1980s Standard Chartered already had considerable exposure to third world debt. To this were added provisions against loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered reviewed its operations and decided to focus on its core strengths of Consumer Banking, Corporate & Institutional Banking and Treasury in its well-established operations in Asia, Africa and the Middle East. This led to a series of divestments notably in Europe, the United States and Africa. During this time staff numbers were reduced, businesses not considered core, were sold or closed, associate holding disposed of, unprofitable branches closed and back office functions consolidated. In addition expensive buildings were sold with the proceeds reinvested in the business, and the senior, management team was radically changed and strengthened. Standard Chartered in the 1990s Even within this period of apparent retrenchment Standard Chartered expanded its network, re-opening in Vietnam in 1990, Cambodia and Iran in 1992, Tanzania in 1993 and Myanmar in 1995. With the opening of branches in Macao and Taiwan in 1983 and 1985 plus a representative office in Laos (1996) Standard Chartered now has an office in every country in the Asia Pacific Region with the exception of North Korea. In 1998 Standard Chartered concluded the4 purchase of a controlling interest in Blanco Exterior de los Andes extebandes) an Andean region bank involved primarily in trade finance. With this purchase Standard Chartered now offers full banking services in Colombia, Peru and Venezuela. In1999, Standard Chartered acquired the global trade finance business of Union Bank of Switzerland. This acquisition makes Standard Chartered one of the leading clearers. There is, of dollar payments in the USA. Standard Chartered also opened a new Subsidiary, Standard Chartered Nigeria Limited in Lagos, acquired 75 per cent of the share capital of Metropolitan Bank of the Lebanon.
Standard Charted Bank has been established for over 150 years. It spans the developed and emerging economics of the world with a network of over 500 offices in more than 50 countries. With an objective to become a world-class bank, Standard Charted has adopted the strategies of: Building a world-class business: Focus on core business, provide superior customer services, and generate maximum returns and benefits for shareholders. Staying lean and focused: Invest in core business, optimal usage of resource, and manage performance by balancing cost and risks. Recognized as a wining organization: Developing capability to the fullest, instill global, inject pride into the minds of the people to get connected to Standard Charted Bank. Overall this introduction part has been discussed under three different heads viz. Industry Profile, Company Profile, and Services and Products profile for the better comprehension.
INTRODUCTION
1987 marked the entry of non- UTI, 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 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). 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 mutual fund industry had assets under management of Rs.47, 004 crores.
s
FOURTH PHASE: SINCE 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 cores under 421 schemes.
Mutual fund plays a vital role in mobilization of resources and their effective allocation. These funds play a significant role in financial intermediation, development of capital market and growth of the financial sector as a whole .The active involvement of mutual fund companies, and tries to suggested whether the funds and schemes outperform the market with the same level of risk or not. Different investment avenues are available to investors, mutual funds also offer Good investment opportunities to the investors Mutual funds are investment products that operate on the principle of Strength in numbers. Mutual fund is a trust, which collects money from a large group of investor Pool it together & invest it in various securities e.g. shares, debentures and Other securities in line with the financial objectives. Diversification reduces the risk because not all stocks may move in same
Direction in the same proportion at the same time. Units are issued to investors to as per quantum of money invested by Them. Investors of mutual fund are known as unit holders. Different schemes of different objectives are launched time to time by Mutual fund. Investors have to share profits/losses in proportion to their investment. Mutual fund is required to be registered with SEBI, which regulates Securities markets, before it can collect funds from public.
Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
THE FLOW CHART BELOW DESCRIBES BROADLY THE WORKING OF A MUTUAL FUND :
There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund:
The mutual fund industry in India began with the setting up of the Unit Trust In India (UTI) in 1964 by the Government of India. During the last 36 years, UTI has grown to be a dominant player in the industry with assets of over Rs.76,547 Cores as of March 31, 2000. The UTI is governed by a special legislation, the Unit Trust of India Act, 1963. In 1987 public sector banks and insurance companies were permitted to set
up mutual funds and accordingly since 1987, 6 public sector banks have set up mutual funds. Also the two Insurance companies LIC and GIC established mutual funds. Securities Exchange Board of India (SEBI) formulated the Mutual Fund (Regulation) 1993, which for the first time established a comprehensive regulatory framework for the mutual fund industry. Since then several mutual funds have been set up by the private and joint sectors.
And, they depend on the proportion invested in the following: 1. Stocks 2. Bonds 3. Short Terms
AGGRESSIVE FUNDS:
This strategy might be appropriate for investors who seek High growth and who can tolerate wide fluctuations in market values, over the short terms.
GROWTH FUNDS:
This strategy might be appropriate for investors who have a preference for growth and who can withstand significant fluctuation in market values.
BALANCED FUNDS:
Capital appreciation and income. This strategy might be appropriate for investors who want the potential for capital appreciation and some growth, and who can withstand moderate fluctuations in market values.
50%
40%
10%
CONSERVATIVE FUNDS:
Income and Capital appreciation. This strategy might be appropriate for investors who want to preserve their capital and minimize fluctuations in market value.
1.OPEN ENDED & CLOSED ENDED An open-end fund is one that has units available for sale and repurchases all times. An investor can buy or redeem units from the fund itself at a price based on the Net Asset Value (NAV). NAV per unit is obtained by dividing the amount of the market value of the funds assets (plus accrued income minus the funds liabilities) by the number of units outstanding. Amount Of the Market Value of the funds assets + (Accrued income-the funds liability) ___________________________________________ Number of units outstanding The number of units outstanding goes up or down every time the fund issues new units or repurchases existing units. In other words, the unit capital of an open-end mutual fund is not fixed but variable.
NAV=
Where as, in closeend fund it makes a one time of sale of fixed number of units Later on, unlike open-end funds do not allow investors to buy or redeem units directly from funds. In this, the fund units can be traded at a discount or premium to NAV based on investors perception about the funds future performance and other market factor affecting the demand for or supply of funs units. The number of units outstanding of a close-end fund does not vary on account of trading the funds units at stock
Marketing of a new Mutual Fund scheme involves initial expenses. The expenses may be recovered from the investors in different ways at different times. Three usual ways in which a funds sales expenses may recovered from the investors are:At the time of investors entry into the fund/scheme by deducting a specific amount from his initial contribution, or By charging the fund/scheme with a fixed amount each year, during the stated number of years, or At the time of investors exit from the funds/scheme, by deducting a specified amount from the redemption precedes payable to the investor. These charges made by the fund managers to the investors to cover distribution /sales/marketing expenses are often called ?Loads. The load amount charged to the scheme over a period of time is called as deferred load. The load that an investor pays at the time of his exit is called back-end or Exit Load. Funds that charge front-end, back-end or deferred loads are called LOAD FUNDS Funds that make no such charges or loads for sales expenses are called NO-LOAD FUNDS.
individual investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value.
professionals to manage their investments. These managers decide what securities the fund will buy and sell.
Liquidity: It's easy to get your money out of a mutual fund. Write a
Convenience: You can usually buy mutual fund shares by mail, phone,
Low cost: Mutual fund expenses are often no more than 1.5 percent of
your investment. Expenses for Index Funds are less than that, because index funds are not actively managed. Instead, they automatically buy stock in companies that are listed on a specific index.
Flexibility: Mutual fund are flexible because they change time to time
and also if an Investor wants his money back before the maturity of the Fund He/she can easily redeem it.
DEMERITS OF MUTUAL FUNDS:Mutual funds have their demerits and may not be for everyone:
No Guarantees: No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money.
All funds charge administrative fees to cover their day-to-day expenses. Some funds also charge sales commissions or "loads" to compensate brokers, financial consultants, or financial planners. Even if you don't use a broker or other financial adviser, you will pay a sales commission if you buy shares in a Load Fund.
Taxes:
During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on the income you receive, even if you reinvest the money you made .Management risk: When you invest in a mutual fund, you depend on the fund's manager to make the right decisions regarding the fund's portfolio. If the manager does not perform as well as you had hoped, you might not make as much money on your investment as you expected. Of course, if you invest in Index Funds, you forego management risk, because these funds do not employ managers.
SCMF also pioneered several service initiatives that helped increase transactional ease. It was the first mutual fund to initiate Across the counter redemptions for all classes of investors in liquid funds, One Call Free number 1800226622 accessible across 153 cities Phone transact service wherein investors can redeem without having any Personal Identification Number. Standard Chartered Mutual Fund currently manages assets in excess of Rs. 13400 crores ( USD 2.9 Billion ) and has touched the lives of more than lakhs of investors residing in more than 1000 Indian towns.
Where do mutual funds invest? Broadly, mutual funds invest basically in three types of asset classes: Stocks: Stocks represent ownership or equity in a company. They are also
called as Shares.
Funds Equity Funds Balanced Funds MIPs Income Funds Liquid Funds
Time Period 3 Years (plus) 18 months to 3 Years 1 Year (plus) 6 months to 1 Year few days to 6 months
RETURNS
Technically open-ended funds you can withdraw your investments even within a week, but to get desired returns positive time frame is required are:
WHAT RETURNS CAN I EXPECT IF I KEEP MY MONEY FOR SUGGESTED TIME FRAMES Funds Sector funds Balance funds MIPs Pension Plans Income Funds Liquid Funds Returns 22% to 25% p.a 15% to 18% p.a 12% to 15% p.a 10% to 12% p.a 7% to 9% p.a
The above-mentioned returns in the table are indicative and not assured. All investments in MUTUAL FUNDS are securities and are subject to market risk and the NAVs of the schemes may go up and down depending upon the factors and forces affecting the security market including the fluctuations in the internal rates .The past performance of the MUTUAL FUNDS is not indicative of future performance.
Sector Funds Equity Funds R E T U R N S Balanced Funds Income Funds Liquid Funds
RISKS
The above Graph shows the Risk and Returns generated by different Funds. Liquid Funds are less Risky and also generate less Returns where as Sector Funds are more Risky but generate more Returns by the example of above two Funds it
is clear that Risk and Returns are directly proportional to each other. Other Funds like Equity Funds, Balanced Funds and Income Funds are also gives the same percentage of Returns as the Risk involved.
Hotels Pesticides Tea And Coffee Chemicals Constructions Non Ferrous Metals Telecom - Services Ferrous Metal Oil Diversified Pharm aceuticals Consum er Non Durables Banks Petroleum Products Auto Industrial Capital Goods Cem ent Softw are
1.63% 1.65% 1.70% 2.58% 2.94% 3.05% 3.13% 3.16% 3.63% 4.23% 4.99% 5.07% 5.85% 6.18% 8.76% 11.96% 12.20% 13.45%
Premier
Garm ents Printing & Stationery Oil Courier Steel Corporate Debentures Gas Ceram ics Healthcare Services Pharmaceuticals Retailing Cem ent Miscellaneous Electric&Electronic Equip Transportation Banks Industrial Products Transportation - Airlines Pow er Auto-Ancilliaries Ferrous Metal Media & Entertainm ent Softw are Industrial Capital Goods Consum er Non Durables
0.000890115 0.004419688 0.012435674 0.014822012 0.016504614 0.021192527 0.021441566 0.025329157 0.027859361 0.030010817 0.03696139 0.039703478 0.040299535 0.040985393 0.041207849 0.041694947 0.042609796 0.042983559 0.044577944 0.051032996 0.055499254 0.063018929 0.069312031 0.088016499 0.08938839
Imperial
Garm ents Printing & Stationery Transportation Auto-Ancilliaries Chemicals Electric&Electronic Equip Pow er Consum er Non Durables Diversified Non Ferrous Metals Ferrous Metal Finance Media & Entertainm ent Telecom - Services Petroleum Products Auto Cem ent Banks Softw are Industrial Capital Goods
0.003747698 0.003817302 0.009001822 0.011822164 0.014880454 0.016850914 0.02329207 0.0313776 0.032356609 0.036177853 0.03645704 0.038158442 0.04524706 0.046228842 0.068349829 0.069768335 0.072932373 0.105375663 0.12438071 0.152866679
Enterprise
Construction Projects Transportation Engineering Chemicals Automobiles Mining, Minerals Gas Pow er Media & Entertainm ent Non Ferrous Metals Electric&Electronic Equip Finance Consum er Non Durables Ferrous Metal Cem ent Diversified Pharmaceuticals Auto Industrial Capital Goods Oil Petroleum Products Banks Telecom Services Softw are
0.19% 0.25% 0.26% 0.31% 0.64% 0.66% 0.93% 0.98% 0.99% 1.48% 1.78% 1.84% 2.59% 2.71% 2.86% 2.97% 3.18% 4.49% 5.71% 7.76% 8.34% 8.69% 9.44% 15.73%
RESEARCH METHODOLOGY
METHODOLOGY OF STUDY:
Research is one of the methods of gaining knowledge. Research methodology is one of the important part of the project. Research is conducted with a specific aim and through research only we come to know about the merit and demerit of a particular thing about which studies had been did. In this methodology a particular method is used to study. RESEARCH METHODOLOGY: Research has its special significance in solving various operational and planning problems of business and industry. Research methodology is a way to systematically analyze the research problem. DATA IS COLLECTED IN TWO WAYS : PRIMARY DATA Data is collected through meeting people. the sample is mainly chosen the people working in the software companies,Docters,Builders,Top Manager in any Origination all over the Pune. Questionnaire is prepared which the targeted people have to fill, which contains different types of investment avenues are present and the area in which they are interested and want to invest or need any financial advisory services.
I have obtained primary data through :1) Observation. 2) Cold calling. 3) Tele calling. 4) Direct communication with the people. 5) Through personal interview. 1. Observation Observation is a kind of process by which with the help of peoples face reading and looking at his personality I tried to understand that the profile is good or bad and is that person really interested in Investment or not . 2. Cold calling In this part I have explained our offering to the persons whom I have met in my way and also try to make him different services like stock broking ,Mutual funds and different schemes of mutual fund convinced that our offerings are superior services than other stock broking firm .
3. Tele calling At the time of telecalling as the term referred that I used to call the persons whose data which was generated at the time of cold calling ,through Internet being got from the companys database and tried to fix up an appointment with that person and after that I used to meet that profile. After meeting that person I used to make him understand our offering and try to convince that person.
4. Direct communication with people With the help of direct communication i.e. direct talk to people I have tried to make him understand that what are different schemes under mutual Fund and explain about dividend and growth all plans are very flexible. At the time of interaction I have tried promote my company and also tried to motivate that people to grasp that opportunity whatever we are offering. 5. Through personal interview With the help of this process I have tried to explore that profile and tried to scan that persons quality and also his/her selling ability.
SECONDARY DATA
Secondary data is collected from various magazines, newspaper, web sites. Steps involved in execution of project Step-1 Step-2 Step-3 Step-4 Preparing questionnaire for people which include all types of investment product of standard chartered. Filling the questionnaire by the target customer. Follow up the interested people, who need assistance for getting knowledge of where to invest. Finally the questionnaire is discussed through personal interface with respondent.
DATA ANALYSIS
1) Approximate annual income
Income
No.of People
Percentage
60000-120000
135
24.55
120000-200000
125
22.73
200000-400000
210
38.18
Over,400000
80
14.55
No.of People
2) What is your Preferable Period for investment? SUITABLE MONTH FOR INVESTMENT
NO. OF RESPONDENTS MONTH
20
NO. OF RESPONDENTS
7 4 2 7
Finding in Figure
Most of the investor are interested invest their amount at the month of JanMarch because at that time Sensex seen that it increase and investor are ready to invest but its depend on the stock market some time it seen that at low investor are invest in the month of April June at this time Stock market is low and investor are ready to purchase more NAV and when its high they sell it.
3 0 A b o ve 8% 20 - 30 20% 10 - 20 % 41%
0 - 10 % 31%
0 - 10 % 10 - 20 % 20 - 30 3 0 A b o ve
Sector Mutual Fund Insurance Stock Govt. Bonds & securities Fixed Deposits
N o.of People
M utual Fund Fixed Deposits 24% Govt. Bonds & securities 13% M utual Fund 28% Insurance 10% Insurance Stock Govt. Bonds & securities Fixed Deposits
Stock 25%
5) How much percentage you will like to invest from your annual income? What are you preferred investment priorities?
a. Insurance
YES NO TOTAL 77 23 100
LIC
23%
YES NO
77%
Finding in Figure A major chunk who have been interviewed it has been observed that almost 80% have some kind of insurance policy. It has also been observed that though LIC is a public sector undertaking, people of all ages have more faith in it as compared to other private sector companies.
Banks(Fixed Deposit)
YES NO
Finding in Figure
There is no major difference between the number of people who prefer keeping their money in fixed deposit and who dont opt for it. There is however a growing concern about the falling interest rate in banks on fixed deposit.
YES NO
Finding in Figure
It has been observed that only 34% they have invested in Bonds and Debentures AS compared to those who have not. This may be due to less knowledge about it or the time of re-demotion.
No.of People 22 35 39 58
No.of People
0 - 10 % 14% 10 - 20 % 23%
0 - 10 % 10 - 20 % 20 - 30 30 Above
Medium 70%
8) Do
P e r c e n ta g e o f p e o p le m a k in g a n y in ve s tm e n t
11% Y ES NO 89%
Finding in Figure
It has been observed that approximately 90% of the correspondents invest in some or the other financial instrument. Though the percentage of choice of investment may vary due to different factors such as age, education, risk etc.
9)
b). By Intuition
47 53 100
Methods of investment
47 % 53 %
Finding in Figure
It has been observed that there is no major difference between the percentage of people who invest using scientific tools and those whose who believe in their intuition but it is seen that the younger generation is more leaning towards usage of scientific tools than their peers
YES NO TOTAL
88 12 100
Finding in Figure
Only 12% of correspondent said they dont know any thing about mutual fund and 88% said they know about mutual funds but what we found that they have just a primary or very negligible knowledge about mutual funds and not really aware of the concept called MUTUAL FUND.
35 26 15 12 12 100
Finding in Figure
It has been observed that brand name does matter when people are choosing a mutual fund as 35% said brand name. The next is NAV at about 26%. These two factors play a major role during selection of mutual funds
Conclusion
1)
The most important consideration while making investment decision was Return aspect followed by Safety Liquidity Taxability
2)
Investors confidence of investing in Mutual Fund is increased because of SEBIs role as a mutual fund regulator
3)
From the above study made it shows that if the investor want to earn high return and ready to take high risk then Magnum is the best and if investor want a scheme of any company which will fetch stable return than Can equity will do.
4 )
A Mutual Fund pools the money of people with similar investment goals. The money in turn is invested in various securities depending on the objective of the mutual fund scheme, and the profits (losses) are shared among investors in proportion to their investments. After doing the analysis on 4 funds following conclusion can be made.
5)
Mutual funds are the win-win option available to the investors who are not willing to take any exposure directly to the security markets as well as it helps the investors to build their wealth over a period of time. But the thing which must be remembered by the investors is investment in mutual fund is subject to market risk.
For Individuals
1. Please make your future secure by investing in Mutual Funds, as this will
promise you higher rate of return that conventional investments like Banks and Post Office cannot provide 2. The individual should diversify their monthly income by preparing the Monthly Budget and they can save some money out of their regular income to invest the monthly plan of Mutual Funds.
3. India is passing through a tremendous growth phase with an average growth rate of 7-8% per annum. With this growth phase there is growth in each and every sector, hence there is rush to by shares and equities. It is also a very good time for mutual fund companies but it is advisable for them and their brokers that they dont just sell mutual funds but sell the right kind of scheme which is comfortable to a person nature of taking risk and need,
4.
There is a general ignorance and questions about, what are mutual funds?
What are different schemes of mutual funds? How to invest in a mutual? And many more. This thing should be handled by mutual fund companies and their brokers to provide knowledge to their clients. 5. It has been seen that there is a major increase in the percentage of young investors who have large amount of disposable income with them and want to invest, these type of prospective clients should be tapped at an early stage.. 6. Now even co-operative society can invest up to 10% of their capital in mutual funds which open the door to new and very important client base.
QUSTIONARY
Name .. :.. Address :..
Contact no:
4. What is your occupation? Employee Govnt. Non-Govnt. Businessman Retired person Other profession (specify) 5. What is your Preferable Period for investment? 1. January March 2. April June 3. July September 4. October December 6. What is your annual income? a) b) c) d) 60,000 1, 20,000 1, 20,000 2, 00,000 2, 00,000 4, 00,000 Above 4 lakh
7. In which sector will you invest your money? a) b) c) d) Mutual fund Insurance Fixed deposit Govnt. Bond - Securities
e)
Stock Market
No
9 )How much percentage of rate of return will you like? a) b) c) d) 5%- 10% 10% - 15% 15% - 20% 20%- 25%
10). How experienced are you at investing Mutual funds? a) b) c) d) Inexperience Experience Moderately experience Very experience
11). How much percentage will you like to invest from your annual income? INSURANCE 5 to 10% , MUTUAL FUNDS 5 to 10% , STOCK 5 to 10%, BONDS/FD 5 to 10% , 10 to 15% , 15 to 20% , 20% and above 10 to 15% , 15 to 20% , 20% and above 10 to 15%, 15 to 20%, 20% and above 10 to 15% , 15 to 20%, 20% and above
12). How Much you can take risk High Medium Low
BIBLOGRAPHY
WEBSITE VISITED-
Newspaper:
Business magazines and Business newspaper