A PROJECT

ON
A STUDY OF AWARENESS & KNOWLEDGE
ABOUT WEALTH MANAGEMENT AMONG
INDIVIDUALS

SUBMITTED BY:-
Shikha Singh
Under the supervision of
 ACKNOWLEDGEMENT

I express my sincere thanks to my project guide MR.

professor at Doon Business School, Dehradun who has been

guiding force to my report on STUDY OF AWARENESS &

KNOWLEDGE ABOUT WEALTH MANAGEMENT AMONG

INDIVIDUALS.

I am also thankful to all of my teachers and friends for their support and

encouragement in finding out the appropriate material for this project

report, without their thankless support and efforts, making this report

would have been impossible for me.

I would also like to thank the whole respondents who provide me the

best knowledge and for their help and cooperation throughout the

project.
 CHAPTER 1
INTRODUCTION
WEALTH MANAGEMENT

Wealth management is an investment advisory service for high net

worth individuals. Wealth management combines both financial planning and
specialized financial services, including personal retail banking services, estate
planning, legal and tax advice, and investment management services. Wealth
management as a concept originated in year 1990’s in the US. Essentially it is the
investment advisory covering financial planning that provides individuals with private
banking/ asset management/ taxation advisory and portfolio management. Warren
buffet is the most successful investor in world. He says that “the basic ideas of
investing are to look at stocks as business, use the market fluctuations to your
advantage, and seek a margin of safety.

Wealth Management means:

Wealth management is a high-level professional service that combines financial and
investment advice, accounting and tax services, retirement planning, and legal or
estate planning for one set fee. Clients work with a single wealth manager who
coordinates input from financial experts and can include coordinating advice from the
client's own attorney, accountants and insurance agent.
Wealth management is more than just investment advice, as it can encompass all
parts of a person's financial life. The idea is that rather than trying to integrate pieces
of advice and various products from a series of professionals, high net worth
individuals benefit from a holistic approach in which a single manager coordinates all
the services needed to manage their money and plan for their own or their family's
current and future needs.

Financial Planning
Financial planning is a process, not a product. It is the long-term method of wisely
managing your finances so you can achieve your goals and dreams, while at the same
time negotiating the financial barriers that inevitably arise in every stage of life. In order
to create a sound financial plan, goals must first be established. Data is then gathered to
analyse and evaluate your financial status. Once complete, your plan can be developed

and implemented. Monitoring the plan on an ongoing basis is essential in order to make
necessary adjustments to reach your goals.

Benefits of Using a Financial Planner

How do you know if you could benefit from the services of a financial planner? You may
not have the expertise, the time or the desire to actively plan and manage certain
financial aspects of your life. You may want help getting started. Some reasons for
seeking professional financial planning guidance might include:
 Making sure your money will last during retirement or rolling over a retirement plan
 Handling the inheritance of a large sum of money or other unexpected financial
windfall
 Preparing for a marriage or divorce
 Planning for the birth or adoption of a child
 Facing a financial crisis such as a serious illness, layoff or natural disaster
 Caring for aging parents or a disabled child
 Coping financially with the death of a spouse or close family member
 Funding education
 Buying, selling or passing on a family business
Procrastination is the greatest enemy of financial independence, and using a financial
planner will keep you on track.

Kinds of Financial Planning

There are two approach to financial plan:
1. Goal based Financial plan

The goal based financial plan can get more complex when we provide for multiple
goals, with a different asset allocation for each goal and different projected
returns for each asset class. Goal based financial plans are a usual starting point
for the investor planner relationship.

2. Comprehensive Financial Plan

A comprehensive addresses the above limitations of a goal based financial plan.

It provides complete information on the overall financial position of the investor
and how the financial goals will be met periodically. Multiple formats of
Comprehensive Financial Plan are possible for various situations.

Role of Financial Planner/ Wealth Manager

The Financial Planner’s fundamental role is to ensure that the investors have adequate
money/ wealth for various financial need/ goals.
According to different situations, financial planners play a diversity of roles to tailor
the wealth solutions for customers:

 Financial Coach: to keep close watch on customers’ finances and serve as a

close companion on their life journey

 Financial Doctor: to offer professional financial advice for customers, helping

them to identify problems, solve crises and avoid investment mistakes
  Financial Instructor: to educate customers of the importance of wealth
management, and assist them to know more about various financial tools in
order to achieve their goals right away

 Financial Caregiver: to accompany customers across every life stage, fully

attend to their financial needs and give advice and reminders aptly

 Financial Nutritionist: to strengthen customers’ finances for the prosperous

growth of their assets

Systematic approach to Investing

In the long term, equity share prices track corporate performance. More profitable a
company, higher is likely to be it’s share price. However, in short time frames, the
market is unpredictable. Market fluctuations are a source of risk for investors. Over
the period of time equity has given a better return than any other sources of
investments. Hence it is the major investment avenue in wealth management.
Because of this reason investors are advised to take a systematic approach to
investing. This can take of the following forms:

1. Systematic Investment Plan (SIP)

SIP works on the principle of regular investments. It is like your recurring

deposit where you put in a small amount every month. It allows you to invest
in a MF by making smaller periodic investments (monthly or quarterly) in place
of a heavy one-time investment i.e. SIP allows you to pay 10 periodic
investments of Rs 500 each in place of a one-time investment of Rs 5,000 in
an MF. Thus, you can invest in an MF without altering your other financial
liabilities. It is imperative to understand the concept of rupee cost averaging
and the power of compounding to better appreciate the working of SIPs.

2. Systematic Withdrawal Plan (SWP)

Systematic Withdrawal Plan (SWP) is the facility by which an investor can

withdraw a pre-determined amount from his existing investments in mutual
funds at a pre-decided interval (weekly, monthly, quarterly, semi-annually or
annually). Functionally, Systematic Withdrawal Plan (SWP) is similar to
Systematic Investment Plan (SIP) but it gives an option to withdraw
systematically. This helps in generating a regular cash flow for the investors.
SWP in mutual fund is one of the most effective and tax efficient way to earn
potential returns.
 3. Systematic Transfer Plan (STP)

An STP is a plan that allows investors to give consent to a mutual fund to periodically
transfer a certain amount / switch (redeem) certain units from one scheme and invest
in another scheme of the same mutual fund house. Thus at regular intervals an
amount/number of units you choose is transferred from one mutual fund scheme to
another of your choice. This facility thus helps in deploying funds at regular intervals.

Risk Profiling

Risk profiling is the process of determining an appropriate investment strategy

while taking risk into account. Sound and well thought out risk profiling
practices enable advisors to understand their investors’ level of risk aversion.
Risk profiling is a process of finding the optimal level of investment risk for
your client considering the risk required, risk capacity and risk tolerance.

These are 3 primary aspects of risk, each of which has an impact on the
decision-making process:

Risk Required – the risk associated with the return that would be required to
achieve the investor’s goals – it is a financial characteristic. It is the risk
associated with the return required to achieve the client’s goals from the
financial resources available.

Risk Capacity – this means the amount of risk your client can afford to take –
It is again a financial characteristic. Beyond this level investor is worried about
the risk that he is taking and may show signs of restlessness.

Risk Tolerance – the level of risk the client prefers to take – It is a

psychological characteristic. It is the level of risk the Investor is comfortable
with.
Planners classifies their investors into groups, such as:
 Extremely Risk Averse
 Moderately Risk Averse
 Risk Neutral
The more risk oriented investor is having greater risk so the exposure that can be
suggested to risky assets. In general, equity is viewed as the risky asset, while debt
is considered the safer asset. Gold protect the portfolio in extremely adverse
situations, where both debt and equity under performed. Real estate is an illiquid
asset that can grow over time and also give rental income. Debt, equity, gold and
real estate are asset classes.
Asset Allocation
Asset allocation is an investment strategy that aims to balance risk and reward by
apportioning a portfolio's assets according to an individual's goals, risk tolerance and
investment horizon. The three main asset classes - equities, fixed-income, and cash
and equivalents - have different levels of risk and return, so each will behave
differently over time.
There is no simple formula that can find the right asset allocation for every individual.
However, the consensus among most financial professionals is that asset allocation
is one of the most important decisions that investors make. In other words, the
selection of individual securities is secondary to the way that assets are allocated in
stocks, bonds, and cash and equivalents, which will be the principal determinants of
your investment results.

Investors may use different asset allocations for different objectives. Someone who
is saving for a new car in the next year, for example, might invest her car savings
fund in a very conservative mix of cash, certificates of deposit (CDs) and short-term
bonds. Another individual saving for retirement that may be decades away typically
invests the majority of his individual retirement account (IRA) in stocks, since he has
a lot of time to ride out the market's short-term fluctuations. Risk tolerance plays a
key factor as well. Someone not comfortable investing in stocks may put her money
in a more conservative allocation despite a long time horizon.

Age-based Asset Allocation

In general, stocks are recommended for holding periods of five years or longer. Cash
and money market accounts are appropriate for objectives less than a year away.
Bonds fall somewhere in between. In the past, financial advisors have recommended
subtracting an investor's age from 100 to determine how much should be invested in
stocks. For example, a 40-year old would be 60% invested in stocks. Variations of
the rule recommend subtracting age from 110 or 120 given that the average life
expectancy continues to grow. As individuals approach retirement age, portfolios
should generally move to a more conservative asset allocation so as to help protect
assets that have already been accumulated.
Achieving Asset Allocation Through Life-cycle Funds

Asset-allocation mutual funds, also known as life-cycle, or target-date, funds, are an

attempt to provide investors with portfolio structures that address an investor's age,
risk appetite and investment objectives with an appropriate apportionment of asset
classes. However, critics of this approach point out that arriving at a standardized
solution for allocating portfolio assets is problematic because individual investors
require individual solutions.

The Vanguard Target Retirement 2030 Fund would be an example of a target-date

fund. As of 2018, the fund has a 12-year time horizon until the shareholder expects
to reach retirement. As of January 31, 2018, the fund has an allocation of 71%
stocks and 29% bonds. Up until 2030, the fund will gradually shift to a more
conservative 50/50 mix, reflecting the individual's need for more capital preservation
and less risk. In following years, the fund moves to 67% bonds and 33% stocks.

Portfolio management services (PMS)

Portfolio Management Services (PMS), service offered by the Portfolio Manager, is
an investment portfolio in stocks, fixed income, debt, cash, structured products and
other individual securities, managed by a professional money manager that can
potentially be tailored to meet specific investment objectives. When you invest in
PMS, you own individual securities unlike a mutual fund investor, who owns units of
the fund. You have the freedom and flexibility to tailor your portfolio to address
personal preferences and financial goals. Although portfolio managers may oversee
hundreds of portfolios, your account may be unique.

Discretionary:
Under these services, the choice as well as the timings of the investment decisions
rest solely with the Portfolio Manager.

Non Discretionary
Under these services, the portfolio manager only suggests the investment ideas. The
choice as well as the timings of the investment decisions rest solely with the
Investor. However the execution of trade is done by the portfolio manager.
Benefits of PMS
Professional Management:
The service provides professional management of portfolios with the objective of
delivering consistent long-term performance while controlling risk.

Continuous Monitoring
It is important to recognise that portfolios need to be constantly monitored and
periodic changes made to optimise the results.

Risk Control
A research team responsible for establishing the client's investment strategy and
providing the PMS provider real time information to support it, backs any firm's
portfolio managers.

Hassle Free Operation

Portfolio Management Service provider gives the client a customised service. The
company takes care of all the administrative aspects of the client's portfolio with a
periodic reporting (usually daily) on the overall status of the portfolio and
performance.

Flexibility
The Portfolio Manager has fair amount of flexibility in terms of holding cash (can go
up to 100% also depending on the market conditions). He can create a reasonable
concentration in the investor portfolios by investing disproportionate amounts in
favour of compelling opportunities.

Transparency
PMS provide comprehensive communications and performance reporting. Investors
will get regular statements and updates from the firm. Web-enabled access will
ensure that client is just a click away from all information relating to his investment.
Your account statements will give you a complete picture of which individual
securities you hold, as well as the number of shares you own. It will also usually
provide:

 the current value of the securities one own;

 the cost basis of each security;
  details of account activity (such as purchases, sales and dividends paid out or
reinvested);
 portfolio's asset allocation;
 portfolio's performance in comparison to a benchmark;
 market commentary from Portfolio Manager

Customised Advice
PMS give select clients the benefit of tailor made investment advice designed to
achieve his financial objectives. It can be structured to automatically exclude
investments you may own in another account or investments you would prefer not to
own. For example, if you are a long-term employee in a company and you have
acquired concentrated stock positions over the years and have become over
exposed to few company's stock, a separately managed account provides you with
the ability to exclude that stock from your portfolio.

Wealth Management in India

India’s wealthy are relatively young and compared with international counterparts and hence
take a different approach to wealth management. The demographic difference presents an
opportunity to create new products to address the needs of a young population and leverage
new technologies, such as social and mobile enabling investing applications as a key
differentiator. India’s wealth management service sector is largely fragmented, which isn’t
surprising given the industry is still in its early days. Hence, it is recommended that firms
take a long-term view while evaluating potential return on investment. Given the market and
a demographic and regulatory environment that is significantly different from elsewhere in
the world, we recommend wealth managers co sider the following to succeed in the Indian
market:
*Build your brand and focus on overcoming the trust barrier.
*Invest in advisor technology to improve advisor productivity and retention.
*Evaluate a partnership-based model, coupled with innovative use of technology, to increase
reach.
* Focus on transparency and compliance, while targeting customers with attractive, segment
focused products.
* Though wealth management is a new concept for India, some companies are started
working in this direction. Here is list of some companies :
ICICI Asset Management Company
HDFC Asset Management Company
Reliance Asset Management Company
UTI Asset Management Company
Birla Sun Life Asset Management Company
Kotak Mahindra Asset Management
Religare Asset Management Company
Tata Asset Management Company
Franklin Templeton
L & T Finance Limited
BNP Paribas Asset Management Company
Morgan Stanley STBF
Sundaram Asset Management Company
Axis Asset Management Company
Bajaj Holdings or Bajaj Capital
MotilalOswal Asset Management Company
Edelweiss Asset Management Limited
Muthoot Asset Management Company
Some are Indian companies whereas some are foreign companies who have started giving
guidance on wealth management to customers.

Investment Avenues
Investment Avenue are different ways that your can invest your money.
Following investment avenues that are considered in this report are as follows:
1. Saving Account 9. Debenture
2. Bank Fixed Deposit 10. Bond
3. Public Provident 11. Equity Share Market
4. National Saving Certificate 12. Commodity Share Market
5. Post Office Saving 13. Forex Market
6. Government Securities 14. Real Estate( Property)
7. Mutual Fund 15. Gold
8. Life Insurance 16. Chit Funds
Some Important Investment Avenues are explained below:
1. Mutual Funds
A Mutual fund is an investment vehicle that is made up of a pool of funds collected from
many investors for the purpose of investing in securities such as stocks, bonds, Money
market instruments and similar assets. Mutual funds are operated by money managers,
who invest the fund’s capital and attempt to produce capital gains and income for the
fund’s investors. A mutual fund’s portfolio is structured and maintained to match the
investment objectives stated in its prospectus.
2. Life Insurance
Life Insurance is protection against the loss of income that would result if the insured
passed away. The named beneficiary receives the proceeds and is thereby safeguarded
from the financial impact of the death of the insured. The goal of life insurance is to
provide a measure of financial security for your family after you die. So, before
purchasing a life insurance policy, you should consider your financial situation and the
standard of living your want to maintain for your dependents or survivors.

3. Debentures & Bonds

A debenture is a type of debt instrument that is not secured by physical assents or
collateral. Debentures are backed only by the general creditworthiness and reputation of
the issuer. Both corporations and governments frequently issue this type of bond to
secure capital, like other types of bonds, debentures are documented in an indenture.
There are 2 types of debentures: Convertible and nonconvertible. A bond is debt
investment in which an investor loans money to an entity which borrows the funds for a
defined period of time at a variable or fixed interest rate.

4. Equity Market

An equity market is a market in which shares are issued and traded, either through
exchanges or over-the-counter markets. Also known as the stock market, it is one of
the most vital areas of a market economy because it gives companies access to
capital and investors a slice of ownership in a company with the potential to realize
gains based on its future performance. Equity markets are the meeting point for
buyers and sellers of stocks. The securities traded in the equity market can be either
public stocks, which are those listed on the stock exchange, or privately traded
stocks. Often, private stocks are traded through dealers, which is the definition of an
over-the-counter market.

5. Commodity Market

A commodity market is a physical or virtual marketplace for buying, selling and

trading raw or primary products, and there are currently about 50 major commodity
markets worldwide that facilitate investment trade in approximately 100 primary
commodities.
Commodities are split into two types: hard and soft commodities. Hard commodities
are typically natural resources that must be mined or extracted (such as gold, rubber
and oil), whereas soft commodities are agricultural products or livestock (such as
corn, wheat, coffee, sugar, soybeans).
CHAPTER 2: REVIEW OF
LITERATURE
Pang et al(2009) says that wealth management strategies for individuals in retirement, focusing on
trade-offs regarding wealth creation and income security. Systematic withdrawals from mutual
funds generally give opportunities for greater wealth creation at the risk of large investment losses
and income shortfalls. Fixed and variable life annuities forgo bequest consideration and distribute
the highest incomes. A variable annuity with guaranteed minimum withdrawal benefit somewhat
addresses both income need and wealth preservation. Mixes of mutual funds and fixed life annuities
deliver solutions broadly similar to an even more flexible than a variable annuity with guaranteed
minimum withdrawal strategy.

Sharma (2008-10) concluded that Indian investors are very conservative and less risk taker. They
prefer to invest their money into safe securities even they know that they will get the less return on
the investment and may be possible that they could not cover up the inflation rate but still they
prefer to invest in the securities. This is not because they all are risk averse or they don’t want to get
more return but it is because of lack of knowledge and lack of expertise services in small cities.
Investors are not getting the expert’s advice because they are not aware of such kind of services.

Cognizant Reports (2011) published a report which says that India’s wealth management services
sector is largely fragmented, which isn’t surprising given the industry is still in its early days. Most
organized players have so far focused mainly on the urban segment, leaving untapped about one-
fifth of India’s high net worth individuals population. While early entrants and established local
players have gained trust with potential investors, firm looking to enter the market will need to
invest heavily in brand-building exercises to convey their trustworthiness. Hence, it is recommended
that firms take a long term view while evaluating potential return on investment. The overall outlook
and trends in India indicate a huge potential for growth for new and established wealth
management firms.

Nayak (2013) in his report says that there has been a significant change in the levels and density of

Savings pattern of the rural households because of the increase in saving opportunities available
with a convenient bar. The increase in the financial institutions like banks, micro finance institutions,
SHGs and other local banks provided an opportunities to the rural people to save more. The increase
in awareness among the people for their future security as through the unforeseen cases like sudden
death of a family member, medical emergency and any other financial crisis, education of their
children, marriage of a family member has made people inclined to save. The degree of change in
savings as compare to urban communities of the rural households are not much but still has brought
a revolution in the pattern of savings of the rural households.

Velmurugan (2015) concludes that investment done in various investment avenues with the
expectation of capital appreciation and short and long term earnings. The basic idea behind
investment of all government, private, self-employed and retired person in this study is to utilize the
surplus money in favourable plans so that the money will be rolled back as well as it will give high
returns also. When a common men thinks about investment he will never go for any risky plan. In
the present scenario the share and gold market is highly uncertain and unpredictable, so the
investor should analyse the market cautiously and then make investment decision.
CHAPTER 3: ANALYSIS &
INTERPRETATION
 A Study of Investors Perception towards Mutual Funds

Interpretation: In today’s era most of the people invest their money in mutual funds, people
are now aware that investment in mutual fund is good for wealth increment.

Interpretation: only 69% people think Mutual Funds are a destination for investment. Still
30% people don’t invest in Mutual Funds.
Interpretation: As per people’s point of view they think they are investing right but still there
are 17% people who thinks that they have to improve their investment option.

Interpretation: The pie chart shows that people want low risk with high returns but in mutual
fund it is not possible, if anyone want high return then they have to take high risk also.
Interpretation: Only 62% people thinks Mutual Funds are more profitable. 23% people still
thinks that Fixed deposits are more profitable.

Interpretation: More than 50% people thinks that Bank Deposits are the safest investment
option but Bank Deposits are not 100% safe.

Interpretation: 42.2% people get to know about Mutual Funds through Sales
Representatives, while 46% people know through Internet and only 15% people know about
mutual funds through newspaper.
Interpretation: Because of lack of knowledge about mutual funds people don’t refer mutual
funds as an investment option. 7% people have bitter past experience that’s why they don’t
invest in mutual fund but this happens because of lack of proper knowledge because mutual
funds are made for long term investment and people get maximum returns when they do
long term investment in mutual funds.

Interpretation: 69% people thinks that there is a moderate risk associated with Mutual
Funds and 31% people thinks that it is low riskier
Interpretation: 100% people will do SIP as a mode of investment.

Interpretation: 50% people prefer AMCs for purchase of Mutual Fund. 33% purchase from
brokers or sub-brokers.

Interpretation: 41% people prefer HDFC for investment option. Still 33% people invest
others like Birla Sun Life Mutual Fund, L & T, Reliance etc. 16% invest in SBI Mutual Funds.
Interpretation: maximum people invested in Sbi and 44% of them invested in HDFC.

Interpretation: 36% people would refer Growth Fund and Regular Income Fund as they don’t want
high risk. 27% people prefer other and 18% people would prefer Large Cap and Mid cap funds.

Interpretation: Diversification, better returns and safety allure 63% of people and 27%
people get attracted by its regular income and tax benefit feature.
Interpretation: 50% of people have partial knowledge of mutual funds and 25% people
aware only of a specific scheme in which they invested, 16% of people thinks they are fully
aware of mutual fund and there are also 8% of people who have no knowledge about mutual
funds.

Interpretation: 58% of people are in 2-5 lacs annual income and 25% are under upto 2 lacs
annual income.
Interpretation: 100% people prefer to 20k-50k as total investment amount.
CHAPTER 4: FINDINGS &
CONCLUSION
 FINDINGS

 A lot of people know about mutual fund as they take it as Equities in stock market.

 Some of the Respondents are not willing to invest their money in mutual funds ,
because they don’t know the difference between horizon of risk in share market and
mutual funds.

 Most of Respondents are willing to Invest their funds in mutual funds because they
know that Mutual funds are less risky as compared to equities.

 Most of respondents buy Mutual Funds of those companies which provide them
better returns, products , flexibility and Liquidity. This shows that todays buyers are
rationale buyers.

 Most of respondents believe that HDFC Mutual fund’s performance is much better as
compared to other players in market in both long and short run .
 Diversification, better returns and safety allure people and 27% people get attracted
by its regular income and tax benefit feature.

CONCLUSION

Most of the population are not aware of right investment options. They don’t know how to
increase their wealth. Mutual fund is a good option to increase wealth. Diversification, better
return and safety, these three features allure people for mutual fund.
On an average saving percentage give an outlook of risk that person can bear. Low saving
ratio lead to lower risk & high saving ratio leads to high risk.
Higher the return, higher the risk will be. Mutual funds though given the higher return in long
run other than any asset mix but yet been preferred by many of respondents, now a day SIP
is more popularizing in mutual funds.
 REFERENCES

G. Velmurugan V. S.(July 2015). An Empirical Analysis on Perception of Investors’ towards

various investment avenues.

Gatti, S.C.(2005). Banking for Family Business: A New Challenge for Wealth Management.

Investopedia.(n.d.).wealth management. Retrieved from Investopedia:

https://www/investopedia.com/terms/w/wealthmanagement.asp?layout=infini&v=5C&adtest=
5C

Nayak, S. (May 2013).determinants and pattern of saving behaviour in rural households of

western Odisha.

NCFM, N.C. (2012). Wealth Management Module, National Stock Exchange of India Ltd.

Sharma, p. (2008-10). Wealth management services of HDFC Bank

Warshawsky, G. P. (August 2009). Comparing Strategies for Retirement Wealth

Management: Mutual Funds and Annuities. Journal of Financial Planning, Vol. 22, No. 8, pp.
36-47.
CHAPTER 5: ANNEXURE
 A Study of Investors Perception towards Mutual Funds

1. In this highly volatile market, do you think Mutual Funds are a destination for Investments?
(a) YES
(b) NO
2. Have you ever invested your money in mutual fund?
(a) YES
(b) NO
4. Are you satisfied with your Investment option?
(a) YES
(b) NO
5. While investing your money, which factor you prefer most? Any one
(a) Liquidity
(b) Low Risk
(c) High Return
(d) Company Reputation
6. Which investment do you feel more profitable
(a) Fixed deposit
(b) Mutual Fund
(c) Equities
(d) Others
7. Which among the following is the safest Investment option?
(a) Mutual Funds
(b) Stock Market
(c) Bank Deposit
(d) Other
8. Which are the primary sources of your knowledge about Mutual Funds as an investment
option?
Corresponding to your choices how would you rate their influence on your final Mutual Fund
purchase decision? 1 is the lowest and 5 is the highest rating
1 2 3 4 5
Television
Internet
Newspaper / Journals
Friends / Relatives
Sales Representative
9. Which factors prevent you to invest in mutual fund?
(a) Bitter Past Experience
(b) Lack of Knowledge
(c) Lack of confidence in service being provided
(d) Difficulty in selection of schemes
(e) Inefficient investment advisors
(f) Other
10.How do you rate the risks associated with Mutual Funds?
(a) Low
(b) Moderate
(c) High
11. When you invest in Mutual Funds which mode of investment will you prefer?
(a) One Time Investment
(b) Systematic Investment Plan
(c) Other
12. Where from you purchase mutual funds?
(a) Directly from the AMCs
(b) Brokers only
(c) Brokers/ sub-brokers
(d) Other
13. Which AMC will you prefer to invest?
(a) SBIMF
(b) UTI
(c) Reliance
(d) HDFC
(e) Kotak
(f) ICICI
(g) JM Finance
(h) Other Specify
14. In which Mutual Fund you have invested?
(a) SBIMF
(b) UTI
(c) Reliance
(d) HDFC
(e) Kotak
(f) ICICI Prudential funds
(g) JM Mutual Fund
(h) Other Specify
15. Which mutual fund scheme have you used?
(a) Open-ended Close-ended
(b) Liquid fund Mid-Cap
(c) Growth fund Regular Income fund
(d) Long Cap Sector fund
(e) Other
16. Which feature of the mutual funds allure you most?
(a) Diversification Better return and safety
(b) Reduction in risk and transaction cost
(c) Regular Income Tax benefit
17. Where do you find yourself as a mutual fund investor?
(a) Totally ignorant
(b) Partial knowledge of mutual funds
(c) Aware only of any specific scheme in which you invested
(d) Fully aware
18. What is your annual income?
(a) Up to Rs 200000
(b) 200000 to 500000
(c) 500000 to 1000000
(d) Above 1000000
19. What is your Total Investment Amount?
(a) 20000 to 50000
(b) 50001 to 100000
(c) 100001 to 200000
(d) 200001 to 400000