A STUDY ON INVESTORS AWARENESS LEVEL ON MUTUAL FUND

AND PROMOTION OF SIP PLAN

Project submitted in partial fulfilment of the requirement for the

award of the degree of

MASTER OF BUSINESS ADMINISTRATION

OF
BANGALORE UNIVERSITY

BY
MOHAMMED MUBARAK
(17YUCMD113)

UNDER THE GUIDANCE OF

Prof. ASHWIN R JOHN
(Assistant Professor)

Acharya Bangalore B School

Bangalore University
2019
TITLE OF THE STUDY:

A STUDY ON INVESTORS AWARENESS LEVEL ON MUTUAL FUND

AND PROMOTION OF SIP PLAN

NEED FOR THE STUDY

 100% growth in the last 6 years.


 Numbers of foreign AMC’s are in the queue to enter the Indian markets like
Fidelity Investments, US based, with over US$1trillion assets under management
worldwide.

 Our saving rate is over 23%, highest in the world. Only channelizing these savings
in mutual funds sector is required.

 We have approximately 37 mutual funds which are much less than US having more
than 800. There is a big scope for expansion.

 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing
cities.

 Mutual fund can penetrate rural like the Indian insurance industry with simple
and limited products.

 SEBI allowing the MF's to launch commodity mutual funds.

 Emphasis on better corporate governance.

 Introduction of Financial Planners who can provide need-based advice


 The Indian mutual funds business is expected to grow significantly in the coming
years due to a high degree of transparency and disclosure standards comparable to
anywhere in the world, though there are many challenges that need to be addressed to
increase net mobilization of funds in this sector, as said by Mr. A.P. Kurian, Chairman
of the Association of Mutual Funds of India (AMFI).

Indian Mutual fund industry exhibited 200% growth in the last 10 years from Rs.470
billion to Rs1400 billion in terms of assets under management (AUM). The Mutual
Funds industry is expected to jump sharply from its present share of 6% of GDP to
40% in the next 10years provided the country’s growth rate is consistently above 6%.
The growing investor preference for mutual funds has resulted in the assets under
management of mutual funds growing 8-folds in last 5 yrs. Number of foreign AMC's
are in the queue to enter the Indian markets like US based Fidelity Investments, with
over US$1trillion assets under management worldwide. Our saving rate is over 23%,
highest in the world. Only channeling these savings in mutual funds sector is required.
There is a big scope for expansion as we have 37 mutual funds which are much less
than US having more than 800.

STATEMENT OF THE PROBLEM

One of the lucrative investment avenues available for investors is mutual fund
nowadays. The problem at hand was to study and measure the awareness level of
people regarding mutual funds in the city. To find out Investors’ awareness about
Mutual funds and Promotion of SIP plan. The study includes analysis of the investors
on the basis of their investment objectives, age etc. It also examined the position of MF
among investment avenues available for the investors and the past performances of
various schemes from the active AMCs in Indian market on the basis of NAV & time.
So that it can help the advisors as well as investors to choose the correct portfolio.
 OBJECTIVES OF THE STUDY

The major objective of the study was to determine the awareness about benefits of
Mutual funds and to impart information, knowledge and the functioning of mutual
funds among financial advisors.

Following are the specific objectives:

1. To know the awareness of mutual funds among Indian investors.


2. To evaluate the position of Mutual Fund among investment avenues available
for the investors in Indian market.


3 .To promotes the SIP Scheme (Systematic Investment Plan).

4. To come up with recommendations for investors and mutual fund companies in
India based on the above study. .

REVIEW OF LITERATURE

 According to K. Lakshmana Rao (2011) made analysis of investors Awareness

towards mutual fund schemes, he made conclusion SEBI, AMFI, and IRDA should
take appropriate steps to enhance Consumers knowledge for making more prudent
decisions.

 Desigan et al. (2006) conducted a study on women investor Awareness towards

investment selection. Accordingly, women Consumers generally avoid mutual fund,
the main reason is lack of awareness, investment procedures, entry and exit move
etc.

 According to Lu Zheng (1999) majority of Consumers, investing in mutual fund; do

invest on the basis of short-term future performance and them use fund specific
information for their selection decision

 Priti Mane - Mutual fund has emerged as one of the best options for investment
nowadays. Great amount of research has been carried out on investor’s behavior on
mutual fund. Anand and Murugalah (2004) explored that, in order to attract
investor financial industries requires innovation in developing and delivering
financial services to survive and even to earn profit.
 RESEARCH METHODOLOGY

This is a descriptive study. Two types of data were taken into consideration i.e.
Secondary data & primary data. My major emphasis was on gathering the primary
data.The secondary data has been used to make things more clear.

(i) Primary Data: Direct collection of data from the source of information,
technology including personal interviewing, survey etc.
(ii) Secondary Data: Indirect collection of data from sources containing past or
recent past information like Bank’s Brochures, Annual publications, Books, Fact
sheets of mutual funds, Newspaper & Magazines etc. The secondary data was
collected to know the theoretical aspect of the mutual funds and also for the
performance evaluation of various mutual fund schemes.

A questionnaire was constructed for survey. Questionnaire consisting of a set of

questions made to be filled by various respondents. My area of the study was
Bangalore. The sample consisted of 100 respondents. The sample was drawn from
walk in customers of Reliance Mutual Fund, Some private & government banks and
offices, College students. The selection of the respondents was done on the basis of
convenient sampling. The responses were taken through personal interviews,
telephonic interview.

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

Date: Guide Signature:

Place:
Student Signature: