A SUMMER INTERNSHIP PROJECT REPORT

ON
“STUDY OF INVESTORS’ PREFERENCE RELATED
TO MUTUAL FUND”
AT
NJ INDIA INVESTMET PVT LTD
PREPARED BY
RUSHABH P. RAJDEV

MBA SEMESTER – 3

ENROLLMENT NO.: 177730592091

GUIDED BY
MS. AARTI BHATTI

ACEDAMIC YEAR
2017-18

COLLAGE
SUNSHINE GROUP OF INSTITUTIONS

FACULTY OF MBA

RAJKOT

SUBMITTED TO

GUJARAT TECHNOLOGICAL UNIVERSITY

AHMEDABAD

1
 DECLARATION

I Rushabh P. Rajdev, student of college of Sunshine Group of Institutions, Rajkot. Here,

by I declare that this project report is a result of culmination of my sincere efforts

I declare that is submitted works is done solely by me and the best of my knowledge no
such work has been submitted by any other person for the award of degree. I also declare that all
information collected from various primary & secondary sources has been duly acknowledged in
this report.

DATE:-

PLACE:- SIGNATURE

(RUSHABH P. RAJDEV)

2
 PREFACE

It is very essential for a student to undergo for summer training in a company as he is

able to learn real work life & get into a touch of real corporate life & culture. As the world is
moving too faster so we need better up to date knowledge at every stage of our life. Our life
proper running depends upon our investment decision of our earnings as these investments will
feed us in future. So keeping in mind all these factors I had the privilege of undertaking a project
on the study and critical analysis on the “Study of Investors’ Preference related to Mutual
Fund.” Theories don’t teach unless accompanied by the working in original situation.

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 ACKNOWLEDGEMENT

To acknowledgement is very great way to show your gratitude towards the persons who
have contribute in your success in one or other way.

I am heartily thankful to respected Mr. JITEN JOSHI, the head of Rajkot branch, NJ
India Invest for giving me an opportunity to work in this financial area of Mutual Funds and
helping me in gaining the maximum out of this whole process. I am also thankful to Mr. Samir
Vora, Agency Manager who has been give full support from his side whenever required.

I am also thankful to Mr. VIKAS ARORA, campus director of Sunshine Group of

Institutions who has been source of inspiration for me. I am also thankful to Ms AARTI
BHATTI for guiding me whenever I needed her motivation and guidance.

I am grateful to all those who have directly or indirectly inspired me and helpful me in
my successful accomplishment of this report.

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 TABLE OF CONTENTS

SR. NO. PARTICULAR PAGE

NO.
1 Executive Summary 7
2 Industry Overview 8
2.1 History of Mutual Fund 9
2.2 Mutual Fund Industry in India 10
2.3 Introduction to Mutual Fund 13
2.4 Definition of Mutual Fund 15
2.5 Types of Mutual Fund 16
2.6 Advantages of Mutual Fund 20
2.7 Disadvantages of Mutual Fund 22
2.8 Mutual Fund Constituents 23
2.9 Objectives of AMFI 25
2.10 Importance of an AMC Behind a Mutual Fund 26
3 Company Overview 27
3.1 Company Profile 28
3.2 History of Company 29
3.3 Introduction 30
3.4 Vision & Mission Statements 31
3.5 Management Team 32
3.6 Awards & Recognition 33
4 Department Overview 34
4.1 Products & Services 35
4.2 Marketing Department 37
4.3 Human Resource Department 42
4.4 Finance Department 47

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5 SWOT Analysis of Organization 50
6 Introduction of Topic 52
7 Literature Review 53
8 Research Methodology 54
8.1 Introduction 55
8.2 Defining Problem & Research Objectives 56
8.3 Data Collection Method 57
8.4 Research Hypothesis & Research Design 58
8.5 Sample Design 59
9 Data Analysis & Interpretation 60
10 Findings 75
11 Suggestions 77
12 Conclusion 78
13 Appendix 79
14 Bibliography 80

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 EXECUTIVE SUMMARY

The main purpose to selecting NJ India Invest for summer training is that being in
finance and also marketing field. It is difficult to sale a physical product and NJ India Invest
which sales a non physical product or we can say financial product like, mutual funds &
insurance is even more difficult to sale. So we want to know the overall working of NJ India
Invest Pvt. Ltd. and to accept the challenges in the field.

The main task of at NJ India Invest is to recruit and development of the advisor which
brings a client. The main competitor of NJ India Invest is prudent company which is incorporate
after NJ India Invest.

Talking about this types industry we can say that it is in growth stage in India. From this
study we found some finding which include:

 Very less wealth advisor as compare to insurance advisor.

 There is much untapped market which is due to fewer advisors.
 People are not aware about mutual funds.
 People think that it is only a share market which is dealing in equity only which is
totally wrong.

My task was to convince them for the one to one meet with our agency manager Mr.
Samir Vora and make them aware about wealth advisor business model.

I also come to know about Systematic Investment Plan (SIP) the benefit of this is that it
removers the confusion of which is right time to invest in a share market which will yield a
higher return, because the investors are investing on a regular basis like every month and benefit
of this is that the returns is being average out whenever the market is at high and low. Other
benefit is also that this SIP starts with minimum amounts of Rs. 500 which an ordinary people
can afford it.

Overall experience of this summer training at NJ India Invest Pvt. Ltd., Rajkot Branch
was ver good. In future also I am expecting their co-operation.

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INDUSTRY
OVERVIEW

8
 HISTORY OF MUTUAL FUND

Prof. K Geert Rouwenhorst is ‘The origins of Mutual funds’, States that the origin of
pooled investing concept dates back to the late 1700s in Europe, when “A Dutch merchant and
broker invited subscriptions from investors to form a trust to provide an opportunity to diversify
for small investors with limited means.” The emergence of “Investment pooling” in England in
the 1800s brought the concept closer to the US shores. The enactment of two British Laws, the
Joint Stock Companies Acts of 1862and 1867, permitted investors to share in the profiles of an
investment enterprise and limited investor liability to the amount of investment capital devoted
to the enterprise. Shortly thereafter, in 1868, the Foreign and Colonial Government Trust was
Formed in London.

It resembled the US fund model in basic structure, providing “The investor of moderate
means the same advantages as the large capitalists by spreading the investment over a number of
different stocks.” More importantly, the British fund model established a direct link with the US
security markets, helping finance the development of the post civil war US economy. The
Scottish American Investment Trust, formed in February 1873, by fund pioneer Robert Fleming,
invested in the economic potential of the US, chiefly through American railroad bonds. Many
other trusts followed them, who not only targeted investment in America, but led to the
introduction of the fund investing concept on the US shores in the late 1800s and the early 1900s.
The first mutual or ‘Open – ended’ fund was introduced in Bonston in March 1924. The
Massachusetts Investors Trust, which was formed as a common law trust, introduced important
innovations to the investment company concept by establishing a simplified capital structure,
continuous offering of shares, and the ability to redeem shares rather than holding them until
dissolution of the fund and a set of clear investment restrictions as well as policies.

The stock market crash of 1929 and the Great Depression that followed greatly hampered
the growth of pooled investment until a succession of landmark securities laws, beginning with
the Securities Act, 1933 and concluded with the investment Company Act, 1940, reinvigorated
investor confidence and many innovations led to relatively steady growth in industry assets and
number of accounts.

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 MUTUAL FUND INDUSTRY IN INDIA

The mutual fund industry in India started in 1963 with the formation of ‘Unit Trust of
India” (UTI) at the initiative of the Reserve Bank of India (RBI) and the Government of India.
The objective then was to attract small investors and introduce them to market investments.
Since then, the history of mutual funds in India can be broadly divided into six distinct phases.

Phase 1 (1964-87): Growth of UTI

In 1963, UTI was established by an Act of Parliament. As it was the only entity offering
mutual funds in India, it had a monopoly. Operationally, UTI was set up by the Reserve Bank of
India, but was later delinked from the RBI. The first scheme, and for long one of the largest
launched by UTI, was Unit Scheme 1964.

Later in the 1970s and 80s, UTI started innovating and offering different schemes to suit
the needs of different classes of investors. Unit Linked Insurance Plan (ULIP) was launched in
1971. The first Indian offshore fund, India Fund was launched in August 1986. In absolute terms,
the investible funds corpus of UTI was about Rs 600 crores in 1984. By 1987-88, the assets
under management (AUM) of UTI had grown 10 times to Rs 6,700 crores.

Phase 2 (1987-93): Entry of Public Sector Funds

The year 1987 marked the entry of other public sector mutual funds. With the opening up
of the economy, many public sector banks and institutions were allowed to establish mutual
funds. The State Bank of India established the first non-UTI Mutual Fund. SBI Mutual Fund in
November 1987. This was followed by Canbank Mutual Fund, LIC Mutual Fund, Indian Bank
Mutual Fund, Bank of India Mutual Fund and PNB Mutual Fund. From 1987-88 to 1992-93, the
AUM increased from Rs 6,700 crores to rs 47,004 crores, nearly seven times. During this period,
investors showed a marked interest in mutual funds, allocating a larger part of their saving to
investments in the funds.

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Phase 3 (1993-96): Emergence of Private Funds

A new era in the mutual fund industry began in 1993 with the permission granted for the
entry of private sector funds. This gave the Indian investors a broader choice of ‘fund families’
and increasing competition to the existing public sector funds. Quite significantly foreign fund
management companies were also allowed to operate mutual funds, most of them coming into
India through their joint ventures with Indian promoters.

The private funds have brought in with them latest product innovations, investment
management techniques and investor-servicing technologies. During the year 1993-94, five
private sector fund houses launched their schemes followed by ix others in 1994-95.

Phase 4 (1996-99): Growth and SEBI Regulation

Since 1996, the mutual fund industry scaled newer heights in terms of mobilization of
funds and number of players. Deregulation and Liberalization of the Indian economy had
introduced competition and provided impetus o the growth of the industry.

A comprehensive set of regulations for all mutual funds operating in India was
introduced with SEBI Regulations, 996. These regulations set uniform standards for all funds.
Erstwhile UTI voluntarily adopted SEBI guidelines for its new schemes. Similarly, the budget of
the union government in 1999 took a big step in exempting all mutual fund dividends from
income tax in the hands of the investors. During this phase, both SEBI and Association of
Mutual Funds of India (AMFI) launched investor Awareness Programme aimed at educating the
investors about investing through MFs.

Phase 5 (1999-2004) Emergence of a Large and Uniform Industry

The year 1999 marked the beginning of a new phase in the history of the mutual fund
industry in India, a phase of significant growth in terms of both amount mobilized from investors
and asset under management. In February 2003, the UTI Act was repealed. UTI no longer has a
special legal status as a trust established by an act of parliament. Instead it has adopted the same
structure as any other fund in India – a trust and an AMC.

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 UTI mutual fund is the present name of the erstwhile Unit Trust of India (UTI). While
UTI functioned under a separate law of the Indian Parliament earlier, UTI mutual fund is now
under the SEBI’s Regulations. 1996 like all other mutual funds in India.

The emergence of a uniform industry with the same structure, operations and regulations
make it easier for distributors and investors to deal with any fund house. Between 1999 and 2005
the size of the industry has doubled in terms of AUM which have gone from above Rs 68,000
crores to over Rs 1,50,000 crores.

Phase 6 (From 2004 onwards): Consolidation and Growth

The industry has lately witnessed a spate of mergers and acquisitions, most recent ones
being the acquisitions of schemes of Allianz Mutual Fund by Birla Sun Life, PNB Mutual Fund
by principal, among others. At the same time, more international players continue to enter India
including Fidelity, one of the largest funds in the world.

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 INTRODUCTION TO MUTUAL FUND

Concept of Mutual Funds:

A mutual funds offer a way for a group of investors to effectively pool their money so
they can invest in a wider variety of investment vehicles and take advantage of professional
money management through the purchase of one mutual fund share. Mutual fund companies
essentially collect the money from their investors, or shareholders, and invest that pooled money
into individual investment vehicles according to some risk profile, money management
philosophy, or financial goal. The mutual fund then passes along the profits and losses of those
investments to its shareholders.

The flow chart below describes broadly the working of a mutual fund.

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Organization of Mutual Fund:

The organization of a mutual fund is how the mutual funds are controlled. A number of
entities are involved in the organization of a mutual fund. This helps in the proper management
of the mutual fund portfolio.

The organization of a mutual fund contains entities such as

 Unit Holders
 Sponsors
 Trustees
 Asset Management Company
 Mutual Fund Trust and Corporation
 Transfer Agent
 Custodian
 Security Exchange Board of India

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 DEFINITION OF MUTUAL FUND

“A mutual fund is a professionally managed investment scheme, usually run by an asset

management company that brings together a group of people and invest their money in stocks,
bonds and other securities.”

Description:

As an investor, you can buy mutual fund ‘units’, which basically represent your share of
holding in a particular scheme. These units can be purchased or redeemed as needed at the fund’s
current net asset value.(NAV). These NAVs keep fluctuating, according to the fund’s holdings.
So, each investor participates proportionally in the gain or loss of the fund.

All the mutual funds are registered with SEBI. They function within the provisions of
strict regulation created to protect the interests of the investor.

The biggest advantage of investing through a mutual fund is that it gives small investors
access to professionally managed, diversified portfolios of equities, bonds and other securities,
which would be quite difficult to create with a small amount of capital.

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 TYPES OF MUTUAL FUND

Mutual Funds are mainly classified by 4 types which are mention below chart.

[1] By Constitution:

I. Open-Ended Schemes:

As the name implies the size of the scheme is open – i.e. not specified or pre-determined.
Entry to the fund is always open, the investor who can subscribe at any time. Such fund stands
ready to buy or sell its securities at any time. The key feature of open-ended schemes is liquidity.
It implies that the capitalization of the fund is constantly changing as investors sell or buy their
shares. Further, the shares or units are normally not traded on the stock exchange but are
repurchased by the funds at announced rates.

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 Open-ended schemes have comparatively better liquidity despite the fact that these are
not listed. The reason is that investors can any time approach mutual fund for sale of such units.
No intermediaries are required. Moreover, the realizable amount is certain since repurchase is at
a price based on declared net asset value (NAV). The portfolio mix of such schemes has to be
investments, which are actively traded in the market. Otherwise it will not be possible to
calculate NAV. This is the reason that generally open-ended schemes are equity based. In open-
ended schemes, the option of dividend reinvestment is available.

II. Closed-Ended Schemes:

A closed-ended scheme has a stipulated maturity period which generally ranging from 3
to 15 years. The fund is open for subscription only during a specified period. Investors can invest
in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of
the scheme on the stock exchanges where they are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to the mutual fund
through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one
of the two exit routes is provided to the investor.

III. Interval Schemes:

Interval schemes are combine the features of open-ended and close-ended schemes. They
are open for sale or redemption during predetermined intervals at NAV related price.

[2] By Investment Objective:

I. Equity Funds:

Equity Fund is also known as ‘Growth Fund’. The aim of growth fund is to provide
capital appreciation over the medium to long term. Such schemes normally invest a majority of
their corpus n equities. It has been proved that returns from stocks, have outperformed most
other kind of investments held over the long term. Growth schemes are ideal for investors having
a long term outlook seeking growth over a period of time

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  Diversified Funds:

A diversified equity fund invests in companies regardless of size and sector. It diversifies
investment across the stock market in a bid to maximize gains for investors. They are offered by
unit-linked insurance plans/ULIPs, mutual funds and other investment firms.

Companies listed on the stock exchange come in all sizes and categories,

There are

1. Large companies also called large caps, due to their huge market capitalization or market caps.

2. Mid-sized companies or mid caps with medium capitalizations.

3. Smaller companies or small caps with smaller market capitalizations.

 Tax Saving Funds:

These schemes offer tax rebates to the investors under specific provisions of the Indian
Income Tax laws as the government offers tax incentives for investment in specified avenues.
Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed
as deduction u/s 88 of the Income Tax Act 1961. The act also provides opportunities to investors
to save capital gains u/s 54EA and 54EB by investing in mutual funds.

 Index Funds:

Index funds replicate the portfolio of a particular index such as the BSE Sensex, S&P
NSE 50 index (Nifty) etc. These schemes invest in the securities in the same weight age
comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or
fall in the index, through not exactly by the same percentage due to some factors known as
‘tracking error’ in technical terms. Necessary disclosures in this regard are made in the offer
document of the mutual fund scheme. These are also exchange traded index funds launched by
the mutual funds, which are traded in the stock exchanges.

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  Sectoral Funds:

Sectoral Funds are those which invest exclusively in a specified sector. This could be an
industry or a group of industries or various segments such as ‘A’ group shares or initial public
offering.

II. Debt Funds:

Debt Fund is also known as ‘income Fund’. The aim of income fund is to provide regular
and steady income to investors. Such schemes generally invest in fixed income securities such as
bonds, corporate debentures and government securities. Income funds are ideal for capital
stability and regular income.

III. Hybrid Funds:

A hybrid fund as the name suggests is a mutual fund whose portfolio consists of a mix of
stocks and bonds-equity and debt asset classes. The asset allocation can vary depending upon the
requirement. It could be high equity allocation for the risk takers or a balance or debt and equity
for the conservative investors.

A balanced fund is a form of a hybrid fund and ideally suited for first time investors. Its
idea is to invest in multiple assets to shield the investor from volatility if one asset class is in red.
Risk-averse investors are the ones who choose to invest in a balanced fund. With this fund, there
are pre-set limits of equity and debt allocation.

IV. Money Market Funds:

The aim of money market fund is to provide easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer short term instruments such as
treasury bills, Certificates of deposit, Commercial paper and inter-bank call money. Returns on
these schemes may fluctuate depending upon the interest rates prevailing in the market. These
are ideal for corporate and individual investors as a means to park their surplus funds for short
periods.

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 ADVANTAGES OF MUTUAL FUND

1) Diversification:

Mutual funds invest in a number of companies across a broad cross-section of industries

and sectors. This diversification reduces the risk because seldom do all stocks decline at the same
time and in the same proportion. You achieve this diversification through a mutual fund with far
less money than you can do on your own.

2) Professional Management:

Mutual Funds provide the services of experienced and skilled professionals, backed by a
dedicated investment research team that analyses the performance and prospects of companies
and selects suitable investments to achieve the objectives of the scheme..

3) Low Cost:

Mutual Funds are a relatively less expensive way to invest compared to directly investing
in the capital markets because the benefits of scale in brokerage, custodial and other fees
translate into lower costs for investors.

4) Liquidity:

In open-ended schemes, the investor gets the money back promptly at net asset value
related prices from the mutual fund. In closed-ended schemes, the units can be sold on a stock
exchange at the prevailing market price or the investor can avail of the facility of direct
repurchase at NAV related prices by the mutual fund.

5) Return Potential:

Over a medium to long-term, mutual funds have the potential to provide a higher return
as they invest in a diversified basket of selected securities.

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6) Convenient Administration:

Investing in a mutual fund reduces paperwork and helps you avoid many problems such
as bad deliveries, delayed payments and follow up with brokers and companies. Mutual funds
save your time and make investing easy and convenient.

7) Simplicity:

While investing, the availability of information and data is particularly time-consuming.

If all the information would be easily available, investing would be much simpler. In mutual
funds, the research and data collection is done by the funds themselves. All you have to do is
analyze the performance.

8) Transparency:

Value of your investment in addition to disclosure on the specific investments made by

your scheme, the proportion invested in each class of asset and the fund manager’s investment
you get regular information on a strategy and outlook.

9) Flexibility:

Through features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans, you can systematically invest or withdraw funds according to your needs and
convenience.

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 DISADVANTAGES OF MUTUAL FUND

1) 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 he 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.

2) Fees and Commissions:

All funds charge administrative fees to cover their day to day expenses. Some funds also
charge sales commission or ‘Loads’ to compensate brokers, financial consultants or financial
planners. Even if you don’t use a broker or other financial advisor, you will pay a sales
commission if you buy shares in a load fund.

3) 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.

4) No Control:

All types of mutual funds are managed by fund managers. In many cases, the fund
manager may be supported by a team of analysts. Consequently, as an investor, you do not have
any control over your investment. All major decisions concerning your fund are taken by your
fund manager.

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 MUTUAL FUND CONSTITUENTS

All mutual funds comprise five constituents.

 Sponsors
 Trustees
 Asset Management Company
 Custodians
 Registrar and Transfer Agents

1) Sponsors:

The sponsors initiate the idea to set up a mutual fund. It could be a registered company,
scheduled bank or financial institution. A sponsor has to satisfy certain conditions, such as
capital, record, default free dealing and general reputation of fairness. The sponsors appoint the
Trustees, AMC and Custodian. Once the AMC is formed, the sponsor is just a stake holder.

2) Trustees:

Trustees hold a fiduciary towards unit holders by protecting their interest. Trustees float
and their market scheme, and secure necessary approval. They heck if the AMC investments are
within well defined limits, whether the fund’s assets are protected, and also ensure that unit
holder get their due returns. They also review any due diligence by the AMC. For major decision
concerning the fund, they have to take the unit holder consent. They submit report every six
month to SEBI investor gets an annual report. The trustees are paid annually out of the fund’s
asset -0.5 percent of the weekly net asset value.

3) Asset Management Company:

They are the ones who manage the money of the investors. An AMC takes decisions,
compensates investors through dividends, maintains proper accounting and information for

23
pricing of the units, calculates the NAV and provide information on listed schemes. It also
exercise due diligence on investments and submit quarterly reports to the trustees. A fund’s
AMC can neither act for any other fund nor undertake any business other then asset
management. Its net worth should not fall below Rs. 10 crore and it fees should not exceed 1.25
percent if collections are below Rs. 100 crore and 1 percent if collections are above Rs. 100 crore
SEBI can pull up an AMC if it deviates from its prescribed role.

4) Custodians:

Often an independent organization, it takes custody of securities and other assets of

mutual fund. It responsibilities include receipt and deliveries of securities, collecting income-
distributing dividends, safe keeping of the units and segregating assets and settlements between
schemes. Their charges range between 0.15-0.2 percent of the net value of holding. Custodians
can service more than one fund.

5) Registrar and Transfer Agent:

These are responsible for issuing and redeeming units of the mutual fund as well as
providing other related services, such as preparation of transfer documents and updating investor
records. A fund can carry out these activities in-house or can outsource them. If it is done
internally, the fund may charge the scheme for the service at a competitive market rate.

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 OBJECTIVES OF ASSOCIATION OF MUTUAL FUNDS IN
INDIA [AMFI]

The association of mutual funds of India works with more than 30 registered AMC of the
country. It has certain defined objectives which juxtaposes the guidelines of its Board of
Directors. The objectives are as follows:

 To define and maintain high professional and ethical standards in all areas of operation
of mutual fund industry.
 To recommend and promote best business practices and code of conduct to be followed
by members and others engaged in the activities of mutual fund and asset management
including agencies connected or involved in the field of capital markets and financial
services.
 To interact with the Securities and Exchange Board of India (SEBI) and to represent to
SEBI on all matters concerning the mutual fund industry.
 To represent to the Government, Reserve Bank of India and other bodies on all matters
relating to the mutual fund Industry.
 To undertake nationwide investor awareness programmed so as to promote proper
understanding of the concept and working of mutual funds.
 To disseminate information on mutual fund industry and to undertake studies and
research directly and in association with other bodies.
 To take regulate conduct of distributors including disciplinary actions for violations of
Code of Conduct.
 To protect the interest of investors/unit holders.

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 IMPORTANCE OF AN AMC (ASSET MANAGEMENT
COMPANY) BEHIND A MUTUAL FUND

AMC controls the operations and functioning of a mutual fund. It is very critical to the
performance of a mutual fund as it decides on the style of functioning people who are going to
manage the funds, the commitment to service quality and overall supervision.

The financial strength and the commitment of the AMC sponsors to the business are very
key issues. This is because most AMC lose money in the first few years of operations. In most
cases, these losses are much more than the capital requirements stipulated by SEBI. Hence a
sponsor which is financially weak or which cannot capital to the business either because of its
inability or unwillingness will result in an unhealthy operation. There will be a tendency to cut
corners and unwillingness will result in an unhealthy operation. There will be a tendency to cut
corners and unwillingness to spend money to expand operations. This is the last place where
high quality persons would want to remain and work. The AMC then remains stunted and the
sponsors lose interest. The worst affected are the investors. This is exactly what has happened
with some AMC promoted by Indian business houses.

This is also a problem that has afflicted some of the AMC floated by nationalized banks.
In these organizations, the traditional thinking is prevalent which can be summarized as “Money
is Power”. Since Mutual fund business did not have access to too much money, a posting in the
AMC became punishment postings for some personnel who were not doing well in the parent
organization or who lost out in the organizational politics. The management of the banks also
did not allow these AMC to become independent viable businesses. The CEO’s of the AMC did
not have any clue of the mutual fund business and neither were they interested in it- the entire
effort was spent in getting a posting back in the parent. The fund managers had no experience in
the activity making a mockery of “professional management”. The sad results are there to see.
Some of the parents had to provide funds to bridge the gap in “assured return schemes”. It looks
extremely likely that some of these AMC will no longer exist in a few years.

26
COMPANY
OVERVIEW

NJ INDIA INVEST PVT LTD

HEAD OFFICE SURAT

27
 COMPANY PROFILE

Name of the Company : NJ INDIA INVEST PVT LTD

Established Year : 1994

Promoters : Mr. Neeraj Choksi & Mr. Jignesh Desai

Logo :

Head Office : Udhna, Surat

Product Basket : 1) Domestic Mutual Funds

2) Capital Markets-Direct Equity and ETFs
3) Fixed Deposits of Companies
4) PMS products
5) Government/ RBI/ Infrastructure Bonds
6) Residential & Commercial Properties
Form of Organization : Private Ltd
Branch Address : 2nd floor, Pramukh Paradise,
Nirmala Convent Road,
Rajkot. 360001
Website : www.njwealth.in

Email : njwealth@njgroup.in

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 HISTORY OF COMPANY

Mr. Neeraj Choksi & Mr.Jignesh Desai are two first generation entrepreneurs who began
the journey of ‘NJ’ in1994. The promoters of the NJ Group were friends since their college
years and the bond between Mr Neeraj & Mr. Jignesh has been instrumental in the success of
NJ. Discussing upon important things before taking any decision, is a habit that they have
followed ever since they shared their hostel room in Vidhyanagar, where Mr. Neeraj was
studying his management courses and Mr. Jignesh was into engineering. They both have a
complementary style of functioning that augurs perfectly well for the business.
Driven by their passion for financial well-being of customers & the mission for
transforming lives, the promoters have successfully put NJ on the forefront of innovation &
growth. With a humble beginning from home, the promoters have successfully shaped he
group’s forays into many diversified businesses. Both believed that ‘Trust’ has played a very
important role in NJ’s journey, and in every step that they have taken. The words of promoters
aptly describes this journey of NJ – ‘Built on Trust’.

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 INTRODUCTION

A evolving, emerging & enterprising group with its’ roots in the financial services sector
and today expanding into newer horizons with great passion.
The vision of the group is to be leaders in businesses driven by customer satisfaction,
commitment to excellence and passion for continued value creation for all stakeholders. This
vision has helped us grow and build the trust of our customers and associates which is at the
cornerstone of everything we do. Trust is also at the heart of our success and the driver for
passion for our success.
NJ Group is a leading player in the Indian financial services industry known for its strong
distribution capabilities. The journey of NJ began in 1994 with the establishment of NJ India
Invest Pvt. Ltd., the flagship company, to cater to investor needs in the financial services
industry. Today, the NJ Wealth distributor Network, earlier known as the NJ Funds Network,
started in 2003 is among the largest networks of financial products distributor in India.
Over the years, NJ Group has diversified into other businesses an today has the presence
in businesses ranging from financial products distributor network, asset management, real estate,
insurance broking, training & development and technology. Our rich experience in financial
services, combined with exceptional capabilities and strong process & system orientation, has
enabled us to shape a rising growth trajectory in our businesses.
NJ group is based out of Surat in Gujarat (India) and has presence in 95+ locations in
India and has over 1400+ employees.

NJ believes in………

 Having single window, multiple solutions that are integrated for simplicity and sapience.
 Making innovations, accessions, value additions and a constant process.
 Providing customers with solutions for tomorrow which will keep them above the curve,
today.

30
 VISION & MISSION STATEMENTS

Vision Statement:

To be the leader in our sector of business thought “CREATNG WEALTH

TRANSFORMING LIVES” through

 Total Customer Satisfaction

 Commitment to excellence
 Determinant to succeed with strict adherence to compliance
 Successful wealth creation of our customer

Mission Statement:

Ensure creation of the desired value for our customer, employees and associated, through
constant improvement, innovation and commitment to service and quality. At NJ they are
provide solution which meet expectation and maintain high professional and ethical standard
along the adherence to service commitment.

31
 MANAGEMENT TEAM

The management at NJ brings together a term of people with wide knowledge in the
financial services domain. The management provides direction and guidance to the whole
organization. The management has strong vision for NJ as a globally respected company
providing comprehensive services in financial sector. The aim of the management is to bring the
best to the customers in terms of range of products and services offered.

The key members of management are….

Mr. Neeraj Choksi Joint Managing Director

Mr. Jignesh Desai Joint Managing Director

Other Members of management are….

Mr. Misbah Baxamusa National Sales Head

Mr. Prashant Joshi
Mr. Bhavesh Joshi
Mr. Husaini Kanchwala
Mr. Jignesh Desai
Mr. Abhishek Dubey
Mr. Dhaval Desai
Mr. Janak Patel
Mr. Mohammadali Saiyed
Mr. Samanvay Maniar
Mr. Shirish Patel
Mr. Vinayak Rajput
Zonal Head
Regional Manager
Product Head for Investment
Product Head for Real Estate
Head of Strategic Business
Development Unit
Head of Human Resources Function
Head of Audit Function
Head of Finance Function
Head of Marketing Function
Head of Technology
Head of Operation Function

32
 AWARDS AND RECOGNITION

 Year 2004 among most value business associated presented by HDFC Ltd. Life at
Edinburg School.
 Year 2004 for O/S performance presented by deputy CEO prudential Singapore.
 Year 2006 award for mobilizing the highest number of SIP at national level by fidelity
mutual fund PLC at Mumbai.
 Year 2006 award in Vietnam.
 Year 2009 won “Distributor of the Year” award.
 Year 2010 won “Growth Champion of the Year”, “Fund Champion of the Year” and
“Distributor of the Year” awards.
 Year 2011 won “Net Sales Champions”, “Retail Champions”, “AUM Growth
Champions” and “Distributor of the Year” awards.

33
DEPARTMENT
OVERVIEW

34
PRODUCTS &
SERVICES

35
 NJ Wealth Product & Services:

NJ offers advisory and distribution services on the following products.

 Product Basket of NJ Wealth

1) Mutual Funds – Covering all AMCs & all Schemes

2) Direct Equity

3) NJ PMS (Equity PMS & MF PMS)

4) Capital Gain Bonds/FDs

5) Tax Free & Taxable Bonds

6) National Pension System

7) Loan against Securities

8) Insurance Brokers

9) Real Estate

 Training & Education:

1) Certification Training Coerces

2) AMFI Training (Association of Mutual Fund in India)

3) CFP Training (Certified Financial Planner)

4) New Partner Development Training

5) NJ GURUKUL

36
 MARKETING
DEPARTMENT

37
 INTRODUCTION

Market:

A market is a medium that allows buyers and sellers of a specific good or services to
interact in order to facilitate an exchange.

Marketing:

Marketing is an organizational function and a set of processing for creating

communication and delivering value to the customer and for managing customer relationship in
ways that benefit to its stock holders.

Marketing Environment:

The marketing Environment includes the internal factors (Employees, Customers,

Shareholders, retailers & Distributors, etc.) and the external factors (political, legal, social,
technological, economical) that surround the business and influence its marketing operations.

Some of these factors are controllable while some are uncontrollable and require business
operations to change accordingly. Firms must be well aware of its marketing environment in
which it is operating to overcome the negative impact the environment factors are imposing on
firm’s marketing activities.

Marketing Management:

Marketing management is the analysis, Planning, Implementation, and Control of

programs designed to create, build and maintain mutually beneficial exchanges and relationships
with target markets for the purpose of achieving organizational objectives.

38
 NJ Wealth Marketing Activities

360° - Advisory Platform of NJ Funds

NJ offers you with a unique, comprehensive business platform to help you grow &
develop your advisory practice in a powerful, effective way. The platform delivers much more to
you, keeping you above curve both on your business front and on client’s service.

Marketing Support:

The Marketing Support is necessary for sales, brand building and development of your
business. The marketing/sales team can help you work with the following marketing support.

 Flyers brand and a pager for products, launch new services, etc.
 Performance watch, Fundz watch, SIP watch, NJ GAP booklet, etc sales materials give.
 The E-mail communication for new Product, launch new services, etc.
 Calculator and tools for effective communication to customers.

39
Customer Care:

NJ customer care offers investment with a “Single Services Points” to the entire advisor
to help solves their customer quires. The centralized them of care executive would solve
investor’s queries at the earliest. Advisor and can also take view the least status of all their
quarries online. As NJ advisor may submit their quarries to customer care executive by

 Telephone
 E-mail
 Online directly through your partner desk

 Customer Care Objectives:

 Solve customer queries within a prescribe time.

 Sever advisor as a single content point for all services related issues.
 Provide complete transparency and information to customer on quires
 Set a quality customer services benchmarks in industry

40
Technology:

NJ technology is a latest venture by NJ wherein we aim to provide quality technology

solutions to businesses in a wide range of domains.

NJ started its journey in technology with the start of Fin Logic Technologies (India) Pvt.
Ltd., a group company, in year 2000. The idea then was to develop software applications to
support the growing (financial services) distribution business and manage the IT infrastructure.
Over the years, the captive IT team, gained strong domain expertise and skills in diverse areas
and technology domains. Today, Fin Logic team boasts of over 270+ employees with skills &
rich experience in product development, software testing, infrastructure management, R&D,
Project management and information security. The entire NJ Group’s internal systems and
infrastructure is managed by Fin Logic which also has developed much state-of the art,
proprietary applications that power NJ’s businesses.

One of key differentiators for NJ Wealth is the power of technology. NJ provides

technology for their partners and customer both. NJ provides these kinds of technologies,

 NJ Wealth Partner Desk

 NJ Client Desk
 NJ Trading Desk
 CRM Desk for Client management
 E – Wealth Account

41
HUMAN RESOURCE
DEPARTMENT

42
 Introduction

The personnel management deals with the management of human resources. The
personnel or human resources of an organization consist of all employees, regardless of their
roles. It consists of every single individual who are engaged in any of the organization’s
activities. The main concern of personnel management is to create such an environment in which
every employee’s maximum development. It constantly makes all those of effort to secure
cordial relations between employee groups as well as management. Thus, to acquire proper
candidates and to maintain them is the main motto of the human resource management.

The human resource is the most important and live resource of any organization. No
objectives can be achieved in absence of proper human asset in any organization. The personnel
management is concerned with finding suitable employees, providing them with training and
fixing their remuneration and also motivating them. The quality of working of the human
resources in an enterprise is a very crucial factor in the achievement of enterprise’s objectives.

Definitions:

According to French, “Personnel management is the recruitment, selection,

developments, utilization and accommodation to human resources of an organization consist of
all individuals regardless of their role, who are engaged in any of the organizations activities.”

43
NJ Wealth Organization Structure

Joint Managing Director

(Niraj Choksi, Jignesh Desai)

National Sales Head

(Misbah Baxamusa)

Zonal Head

(Prashant Joshi)

Regional Manager

(Bhavesh Joshi)

Branch Manager

(Jiten Joshi)

Unit Manager

(Amarsir, Nishantsir, Vickysir)

Relation Executive

Office Boy

44
  People & Culture

People:
NJ understand that the people are the almost assets of the company and it is not the
company that grows but the people. NJ hence undertaken rigorous training and education
activities for enhancing entire team at NJ. NJ also believes in the “learning through
Responsibility” concept for its employee. For people at NJ success in not new word, but is a
regular stepping stone to realizing the one vision that everyone shares.

Culture:
At NJ we believe in transforming the lives of our customers. We exist to create a
difference a change towards a better life the culture at NJ reflect this responsibility, this dream of
transformation lives and we at NJ are always excited and enhance in doing so.

 Attendance & Working Hours:

Employees we shall reports on time at their respective work place & must only leave
after completion of the stipulated duty hours after making their attendance in attendance shet

 Working hours from 10 am to 7 pm

 Lunch break will be 1 hour
 However being a fast growing organization, pursing targets on day basis it is
expected that employee enhance their productivity and should not be the “clock
watchers”

45
 Policy & Code of Conduct

Communication Policy:

 No communication on business, policies process practices customers association of NJ to

any external entity.
 No communication with any media on any matters. Only marketing function is
authorized to do so.
 No usage of any NJ name, brands or your position in any communication, interaction
with any hard party unless authorized.
 Any official communication of important should be in email/document.
 For all official communication….
 Use our designation as provided by NJ
 Use official email accounts

Security Policy:

 All employees should keep their login-id & password confidential and not disclose the
same to other employees. Password confidential should not be such that can be easily
guessed. All action under your id & password are your responsibility.
 Any customer details, business information practices, process, internal document
presentation, etc. are internal confidential document and should not be shared, transmitted
to unauthorized persons.
 They follow best practices for IT security.
 Always carry employee identity card and present same when asked.

46
 FINANCE
DEPARTMENT

47
Finance Audit:

Finance audit means auditing the company internal data, which indirectly help the
company in finding out the deviation to corrective action. In NJ finance is done by the two
ways:-

1) Internal Audit:
This type of the audits is not genially accepted by the company in NJ, it is
accepted in order to have truck of its financial transaction. Here internal audit is done on
the monthly basis. Report of the audit is available from each auditor from each book of
the account maintained.

2) Statutory Audit:
Company on a quarterly basis generally does this type of audit. There the
company audit it financial statement on a monthly basis by discussing it with a financial
auditor. Again this audit is done at the end of each year for preparing financial balance
sheet, profit & loss account and other financial statement. This type of statement has to
be issued at the end of each financial year to the public but being a private company NJ
prepare this document for the submission of the government and IT sector.

48
 Money Flow

The above diagram shows the flow of the money taking place at the NJ India Invest the
money flow through two channels receipts and the payment.

1) Receipt:

As we know that the NJ India Invest works as a distributor of the mutual fund, they have
a receipt in the form of the brokerage. The company has their receipt as brokerage.

2) Payment:

In the NJ India Invest the payment part is divided into three parts.

 Brokerage
 Monthly Expenses
 Other

49
 SWOT ANALYSIS OF ORGANIZATION

SWOT analysis is a tool for auditing an organizations and its environment. It is the first
stage of planning and helps marketers to focus on key issued. SWOT stands for strength,
weakness, opportunity and threats. Strengths and weakness are internal factors, opportunities and
threats are external factors.

50
Strengths:

1) NJ India Invest is a dominant player in the Indian Mutual Funds distribution business
with over a decade of experience.
2) NJ India Invest has a given the very good research support to his advisors.
3) Seminar and Partner meets are also conducted by company that will create healthy
environment among advisors and company.
4) NJ has strong 360° degree supports which makes it different from its competitor.
5) NJ India Invest has tie up with almost 25 AMC out of 37 operating in the MF industry.

Weaknesses:

1) The first and foremost lacking element in the company is that the awareness about
company is very lees in the market.
2) NJ India Invest is dominant only in mutual fund. They have also focused on other
financial instrument like stock trading.

Opportunities:

1) They have very wide scope in financial sectors.

2) NJ India Invest can utilize the dominant position; it has and optimally uses the huge
network of its partners.
3) NJ India Invest can use its network of partners in selling insurance, even company can
jump into share trading business.

Threats:

1) Any direct broker or sub brokers who clear the AMFI exam threats for the company.
2) NJ India Invest is facing competition in the market; their competitors are Prudent Pvt.
Ltd., Blue-chip India Ltd., etc.

51
 INTRODUCTION OF TOPIC

“A Study of Investors’ Preference related to Mutual Fund”

In today’s competitive environment, different kinds of investment avenues are available

to the investors. All investment modes have advantages & disadvantages. An investor tries to
balance these benefits and shortcomings of different investment modes before investing in
them. Among various investment modes, mutual fund is a most suitable investment mode for
the common man, as it offers an opportunity to invest in a diversified and professionally
managed portfolio at a relatively low cost. In this paper, an attempt is made to study mainly
the investment avenue preferred by the investors of Rajkot, and we have tried to analyze the
investor’s preference towards investment in mutual funds when other investment avenues are
also available in the market.

3) A 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 invested by the fund manager in
different types of securities depending upon the objective of the scheme. These could
range from shares to debentures to money market instruments. The income earned
through these investments and the capital appreciations realized by the scheme are shared
by its unit holders in proportion to the number of units owned by them. Thus a mutual
fund is most suitable investment for the common man as it offers an opportunity to invest
in a diversified, professionally managed portfolio at a relatively low cost. Anybody with
an investible surplus of as little as a few thousand rupees can invest in mutual funds.
4) The Asset under Management (AUM) of Indian mutual fund industry for the
month of June, 2018 stood at 22.86 lakh crore. The AUM of the Indian MF Industry has
grown from 5.05 trillion as on 31st march, 2008 to 22.86 trillion as on 30th June, 2018,
about four and half fold increase in a span of 10 years. The total number of accounts or
folios in mutual fund as on 30th June, 2018 stood at 7.46 crore, while the number of
folios under equity, ELSS and balanced schemes, wherein the maximum investment is
from retail segment stood at 6.22 crore.

52
 LITERATURE REVIEW

NCAER (1964) conducted a survey of households to know the attitude and motivation of
individuals towards saving.

Ippolito (1992) mentions that fund/scheme selection by investors is based on past

performance of the funds and money flows into winning funds more rapidly than they flow out
of losing funds.

Gupta (1994) concluded a study to help the policy makers of mutual funds in designing
the financial products for the future.

Kulshreshta (1994) provides several guidelines to the investors while selecting different
mutual fund schemes.

Madhusudhan V Jambodekar (1996) did a study to find out the awareness about mutual
funds among investors and to identify the factors which influence the purchasing decision and
the choice of a particular fund. Newspapers and Magazines are the primary source of information
through which investors get the information about mutual fund schemes and fund provider
service is the important factor while choosing mutual fund schemes.

Shankar (1996) states that mutual fund viewed as commodity products by the Indian
Investors, and to capture the market one should follow the consumer product distribution model.

Goetzman (1997) pointed out that there is evidence that investor psychology affect
fund/scheme selection and switching.

Kavitha Ranganathan (2006) has examined the related aspects of the fund selection
behavior of individual investors towards mutual funds, in the city of Mumbai.

Sarish & Ajay Jain (2012) concluded that for the purpose of investment or saving, the
investors are having options to invest money in mutual funds and other financial instruments like
equity shares, debentures, bonds, bank deposits. A common investor, who invests their saving
into the different assets, is not very much aware about the mutual funds.

V. Rathnamani (2013) concluded that many investors are preferred to invest in mutual
fund in order to have high return at low level risk, safety liquidity.

53
 RESEARCH
METHODOLOGY

54
 INTRODUCTION

Research Methodology is the process used to collect information and data for the purpose
of making business decision. The methodology may include publication research, interviews,
surveys and other research techniques and could include both present and historical information.
Research Methodology to student trained to gather materials and organizing them,
participation in field work as needed and techniques for the collection of appropriate data for a
particular problem in the use of questionnaire statistic and controlled experiments in the test
record, sorting out and then interpreted.

This research study is about “A Study of Investors’ Preference related to Mutual

Fund.” In this study investor which kind of investment option prefer most, which factor consider
most while investing their money, reason behind not invest in mutual fund, which feature attract
the most to investor invest in mutual fund, which mode of investment in mutual fund more prefer
by the investors. This information used to identify and define investors’ preference related to
mutual fund.

55
 DEFINING PROBLEM AND RESEARCH OBJECTIVES

 Problem definition,

The first step towards finding a solution or launching a research study focuses on
uncovering the nature and boundaries of a negative or positive, situation or questions.

 The first sign of a problem is relates with attaining some objective. It is a symptom that
something inside or outside the organization has blocked the attainment of the desire
goal.
 Research objective specifies what information is needed to solve the problem. Deciding
how to refine a brand information problem into dearly defined and researchable statement
is perquisites for the next step in planning the research.

This project attempts to know the investors’ preference related to mutual fund.
Which main reason behind less people invest in mutual fund.

Objectives of the Study:

 To find out the most preferred Investment Avenue of the investors of Rajkot.
 To find out which factor are consider most while people invest their money in different
investment avenues.
 To find out main reason behind people not invest in mutual fund.
 To find out which sources are most helpful for promoting mutual fund.
 To find out investor allover preference related to mutual fund.

56
 DATA COLLECTION METHODS

The data collection method include two types,

1) Primary Data Collection Method

2) Secondary Data Collection Method

Primary Data Collection Method:

This method includes the data collected from the personal interaction with investors’
from different classes, government employees, executives, etc. A total of 100 people were
contacted through various mediums like personal meet, telephone and interview.

Secondary Data Collection Method:

The secondary data collection method includes,

 The lecturers delivered by the superintendents of respective departments.

 The brochures and material provided by NJ India Invest PVT LTD.
 The data collected from various books and magazines of the NSE, BSE AMCs, etc.

57
 RESEARCH HYPOTHESIS

Ho: Investors’ preference related to mutual fund is positive.

H1: investors preference related to mutual fund is negative.

RESEARCH DESIGN

Research Design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevant to the research purpose with economy in procedure. It
constitutes the blueprint for the collection measurement and analysis of data.

Types of Research Design:

1) Exploratory Research
2) Descriptive Research
3) Hypothesis Testing Research

Descriptive Research is used to describe characteristics of a population or phenomenon

being studied. In the context of this report on the project I have used the descriptive research
design.

58
 SAMPLE DESIGN

 Sample Size:-

Sample Size is100 investors.

 Sampling Procedure:-
 Convenience Sampling Technique
 Convenience Sampling is the technique in which the researcher just simply picks
up the respondents on the basis of their availability.
 Sampling Area:-

The survey is done in the center city of Rajkot.

 Period of study:-

6 weeks

 Research Instrument:-

Structured questionnaire

59
 DATA ANALYSIS & INTERPRETATION

 Age :

Below 20 20 – 40
40 – 60 Above 60

Findings:

Particular Below 20 20 – 40 40 – 60 Above 60

Findings 12 46 28 14

Chart:

Age

14 12
Below 20
20 – 40
28 40 – 60
46 Above 60

Interpretation:

From the above chart it is found that in my survey there is 12 respondents age are below 20,
46 respondents age are between 20 to 40, 28 respondents age are between 40 to 60 and 14
respondents age are above 60.

60
  Gender :-

Male Female

Findings:

Particular Male Female

Findings 74 26

Chart:

Gender

26

Male
Female

74

Interpretation:

From the above chart it is found that in my survey there is 74 respondents are male and
26 respondents are female.

61
  Occupation :-

Public Sector Service Private Sector Service Business

Professional Agriculture Other

Findings:

Particular Public Sector Private Sector Business Professional Agriculture Other

Service Service
Findings 12 27 36 14 - 11

Chart:

Occupation

11 12 Public Sector Service

0
Private Sector Service
14
Business
27
Professional
Agriculture
36 Other

Interpretation:

From the above chart it is found that in my survey there is 12 respondents occupation are
public sector service, 27 respondents occupation are private sector service 36 respondents
occupation are business, 14 respondents occupation are professional and 11 respondents
occupation are other.

62
  Gross Annual Income :-

Below 1 Lac 1 – 5 Lacs 5 – 10 Lacs 10 – 25 Lacs > 25 Lacs

Findings:

Particular Below 1 Lac 1 – 5 Lacs 5 – 10 Lacs 10 – 25 Lacs > 25 Lacs

Findings 8 59 31 2 -

Chart:

Gross Annual Income

2 8
Below 1 Lac
31 1 – 5 Lacs
5 – 10 Lacs
10 – 25 Lacs
59 > 25 Lacs

Interpretation:

From the above chart it is found that in my survey there is 77 respondents income are
below 5 lacs and 23 respondents income are more than 5 lacs.

63
[1] What kind of investment do you prefer the most?
Saving Account Fixed Deposits Mutual Fund

Post Office Share Market Gold

Real Estate PPF

Findings:

Particular Saving Fixed Mutual Post Share Gold Real PPF

Account Deposits Fund Office Market Estate
Findings 3 44 24 9 6 4 2 8

Chart:

Most Prefer Investment

Saving Account
8 3 Fixed Deposits
2
4
6 Mutual Fund
Post Office
9 44
Share Market
Gold
24 Real Estate
PPF

Interpretation:

From the above chart it is found that majority respondents are most prefer for doing
investment in Fixed Deposits, 24 respondents are most prefer for doing investment in mutual
funds, other investment avenues are less prefer by the investors.

64
[2] While investing your money, which factor do you consider most?

Liquidity Lower Risk High Return Credit Rating

Findings:

Particular Liquidity Lower Risk High Return Credit Rating

Findings 23 31 18 28

Chart:

Most Consider Factor

23
28 Liquidity
Lower Risk
High Return
Credit Rating
18 31

Interpretation:

From the above chart it is found that majority of investor first preference give to safety of
money so they most consider less risk or high credit rating of the firm, less investors are think
about get higher return take more risk.

65
[3] Have you ever invested your money in mutual fund?

Yes No

Findings:

Particular Yes No
Findings 36 64

Chart:

Invest in Mutual Fund

36
Yes
No
64

Interpretation:

From the above chart it is found that majority respondents are not invests money in
mutual fund and few respondents are invests money in mutual funds.

66
[4] If no, then specify the reason.

Not aware of MF Higher Risk Any other reason

Findings:

Particular Not aware of MF Higher Risk Any other reason

Findings 25 33 6

Chart:

Reason

25 Not aware of MF
Higher Risk
Any other reason
33

Interpretation:

From the above chart it is found that majority respondents are not invest in mutual fund
because of higher risk, some respondents because of not aware of mutual fund and few investors
because of any other reason like mutual fund investment is complicated, not safety of
investment.

67
[5] If yes, which feature of the mutual fund attracted you most?

Diversification Higher Return Liquidity Tax benefit

Findings:

Particular Diversification Higher Return Liquidity Tax benefit

Findings 10 13 11 2

Chart:

Attracting Feature

2
10 Diversification
11 Higher Return
Liquidity
Tax benefit

13

Interpretation:

From the above chart it is found that different features of mutual fund are attract different
types of investors. Higher return is most attracted feature of mutual funds. Tax benefit Schemes
are less attracted feature of mutual funds.

68
[6] How do you come to know about mutual fund?

Advertisement Friends & Relatives Financial Advisor Other

Findings:

Particular Advertisement Friends & Financial Other

Relatives Advisor
Findings 11 6 16 3

Chart:

Media

3
11 Advertisement
Friends & Relatives
Financial Advisor
16
Other
6

Interpretation:

From the above chart it is found that majority of respondents to get information related to
mutual fund is help of financial advisor. Advertisements are less effective to get information
related to mutual fund compare to financial advisor.

69
[7] When you invest in mutual fund which mode of investment will you prefer?

One Time Investment Systematic Investment Plan Both

Findings:

Particular One Time Investment Systematic Investment Plan Both

Findings 8 18 10

Chart:

Mode of Investment

8
10
One Time Investment
Systematic Investment Plan
Both

18

Interpretation:

From the above chart it is found that majority respondents are invest their money in
systematic investment plan (SIP). Some respondent invest their money in both. And few
respondents invest their money in one time investment.

70
[8] How do you invest in mutual fund?

Directly from the AMCs Brokers only Other Sources

Findings:

Particular Directly from the Brokers only Other Sources

AMCs
Findings 7 29 -

Chart:

How Invest in MF

0
7

Directly from the AMCs

Brokers only
Other Sources

29

Interpretation:

From the above chart it is found that majority respondents are invest money in mutual
fund by taking the help of brokers few respondents are directly invest in mutual fund from the
AMCs.

71
[9] Which mutual fund scheme have you used most?

Liquid Fund Small cap Mid cap Large cap

Sector Fund

Findings:

Particular Liquid Fund Small cap Mid cap Large cap Sector Fund
Findings 4 6 9 14 3

Chart:

Scheme Type

3 4

Liquid Fund
6
Small cap
Mid cap
14 Large cap
Sector Fund

Interpretation:

From the above chart it is found that majority of investors are prefer large cap to invest
their money. Some respondents are like to invest their money in small and mid cap fund. Very
few respondents are use liquid and sector fund.

72
[10] In which AMCs will you prefer to invest?

SBI HDFC Axis Birla L&T Other

Findings:

Particular SBI HDFC Axis Birla L&T Other

Findings 8 3 4 11 5 5

Chart:

AMC

5 SBI
8
HDFC
5 Axis
3 Birla
L&T
4
11 Other

Interpretation:

From the above chart it is found that majority respondents are prefer Birla and SBI
AMCs for the investments. Other AMCs are less prefer by the respondent for the investment.

73
[11] How would you like to receive the returns?

Dividend Payout Dividend re-investment Growth in NAV

Findings:

Particular Dividend Payout Dividend re-investment Growth in NAV

Findings 6 3 27

Chart:

Return Option

3 Dividend Payout
Dividend re-investment
Growth in NAV

27

Interpretation:

Fro m the above chart it is found that majority respondents are select Growth option for
getting returns. Very few respondents are select Dividend option.

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 FINDINGS

 In the survey, 46% respondents age group are 20 to 40 years, 28% respondents age group
are 40 to 60 years, 14% respondents are above 60 years and 12% respondents are below
20 years.
 In the survey, 74% respondents are male and 26% respondents are female.
 63% respondent occupation is business and private sector service.
 Most of the respondent gross annual income is between 1 to 5 lacs about 60%.
 Majority 44% respondent are invest money in fixed deposits, 24% respondents prefer
mutual fund, other investment avenues are less prefer by the respondents.
 Majority investor first preference gives to safety of money while invested so they most
consider less risk or high credit rating factor.
 64% investors are not invested money in mutual fund and 36% investors are invested
money in mutual fund.
 Respondents are not invests in mutual fund main reason behind it respondent think high
risk in mutual fund.
 Majority 36% respondent are most attract higher return feature of the mutual fund, 31%
respondent attract towards liquidity, 28% respondent attract towards diversification and
5% respondents attract towards tax benefit.
 Majority 44% respondent get information related to mutual fund is help of financial
advisor. 31% respondents get information through advertisement.
 50% respondents are invests money in mutual fund by SIP, 22% respondents are invest
money in mutual fund by one time investment, 28% respondents are invest in both. Most
of investor choose SIP for invest money in mutual fund.
 Majority 81% respondent invest money in mutual fund by help of the brokers, only 19%
respondent invest money in mutual fund directly from the AMCs.
 Majority 39% respondent invest in large cap fund, 25% respondent invest in midcap
fund, 17% respondent invest in small cap fund, 11% and 8% respondent invest in liquid
and sector fund respectively.

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 Majority respondent prefer Birla and SBI AMCs for the investment in mutual funds,
other AMCs are less prefer by the respondents for the investment.
 Majority 75% respondent like growth in NAV option for receive return in mutual fund,
25% respondent like dividend option for receive return.

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 LIMITATION

 Only 100 investors have been considered for this study. The size of the sample compared
to the population is small and hence it might not signify the ideas of entire population.
 This research is only for Rajkot city. It cannot be generalize for other cities.
 Duration of project was not enough to make our conclusion on such a vast subject.
 Some of respondents might have taken the question in different sense which can change
the data collected.
 As sampling technique is convenient sampling so it may result in personal bias.

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 SUGGESTIONS

 NJ should launch its brand awareness campaign to be number one in MF advisory service
provider.
 NJ should more focus on the advertising because in particular Rajkot region awareness
regarding company is not that much famous.
 NJ should arrange seminar for awareness of mutual fund.
 NJ should give more benefits to advisors so they are more focus on this business.
 NJ should try to increase the number of advisors of mutual fund because they are the
main source to influence the investors.
 NJ should more focus on insurance and other financial tools.

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 CONCLUSION

After the analysis of report it can be concluded that majority investor invest their money
in fixed deposits. Rare investors are invests money in mutual fund. Main reason behind not
invest in mutual fund is people think more risk in mutual fund. Mutual fund industry is growth
stage so it has large scope in India. Mutual fund related knowledge is less in people so it is less
prefer by the investors. When investor gets proper knowledge about mutual fund they invest their
money in mutual fund. High return feature of mutual fund is more attract to investors. Majority
people invest SIP option to invest in mutual fund and take help of mutual fund broker for invest
money in mutual fund. Majority people choose growth option for getting return in mutual fund.

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 APPENDIX

QUESTIONNAIRE

I am doing MBA at ‘Sunshine Group of Institutions’ and this is to acknowledge that the following
survey is purely for academic purpose. My project topic is about knowing the “Study of Investors’
Preference related to Mutual Fund.” The identity of the respondent will be kept confidential and it
does not carry any commercial value.

Personal Information:-
Name :-
Age :-
Below 20 20 – 40
40 – 60 Above 60
Gender :-
Male Female
E–Mail :-
Occupation :-
Public Sector Service Private Sector Service Business
Professional Agriculture Other
Gross Annual Income :-
Below 1 Lac 1 – 5 Lacs 5 – 10 Lacs 10 – 25 Lacs > 25 Lacs

“A Study of Investors’ Preference related to Mutual Fund.”

[1] What kind of investment do you prefer the most?

Saving Account Fixed Deposits Mutual Fund

Post Office Share Market Gold

Real Estate PPF

[2] While investing your money, which factor do you consider most?

Liquidity Lower Risk High Return Credit Rating

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[3] Have you ever invested your money in mutual fund?

Yes No

[4] If no, then specify the reason.

Not aware of MF Higher Risk Any other reason

[5] If yes, which feature of the mutual fund attracted you most?

Diversification Higher Return Liquidity Tax benefit

[6] How do you come to know about mutual fund?

Advertisement Friends & Relatives Financial Advisor Other

[7] When you invest in mutual fund which mode of investment will you prefer?

One Time Investment Systematic Investment Plan Both

[8] How do you invest in mutual fund?

Directly from the AMCs Brokers only Other Sources

[9] Which mutual fund scheme have you used most?

Liquid Fund Small cap Mid cap Large cap

Sector Fund

[10] In which AMCs will you prefer to invest?

SBI HDFC Axis Birla L&T Other

[11] How would you like to receive the returns?

Dividend Payout Dividend re-investment Growth in NAV

[12] Suggestion

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 BIBLIOGRAPHY

Books:

 C.R. Kothari - Research Methodology

 I.M. Pandey - Financial Management

Website:

 www.njgroup.in
 www.amfiindia.com
 www.moneycontrol.com

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