A

Project Report
On
“A Study of Consumer Behavior Towards Mutual fund with Reference to
Doctor and IT Professional Pune”
At

Submitted
by
Nidhi Kumari
Submitted
To
Post Graduate Diploma in Management
In partial fulfillment of
Under the guidance of
Dr. Parmeshwar Yadav

INDIRA SCHOOL OF BUSINESS STUDIES, PUNE

Post Graduate Diploma in Management
2018 - 2020
 CERTIFICATE

This is to certify that Ms. NIDHI KUMARI is a bonafide student of this Institute and has
successfully completed her project entitled “A STUDY OF CONSUMER BEHAVIOR
TOWARDS MUTUAL FUND WITH REFERENCE TO DOCTOR AND IT
PROFESSIONAL IN PUNE” at Money Plant Consultancy, Pune for partial fulfilment of the
course Post Graduate Diploma in Management (marketing) from Indira School of Business
Studies.

Dr. Renu Bhargava Dr. Parmeshwar Yadav

Director, ISBS Internal Guide
 ACKNOWLEDGEMENT

I express my gratitude towards Mr. RISHABH PARAKH, Project Guide, Money Plant
Consultancy. Dr. Renu Bhargava, Director, ISBS,and Ms. Madhuri Sathe Placement
head for providing me with an opportunity to work in the organization. Dr. Parmeshwar
Yadav, Internal Project Guide, ISBS for guiding me throughout the course of my internship
and ensuring that I was on the right track. Their guidance helped me to gain experience in
various domains.

Finally, I thank all the people who directly or indirectly helped me during the internship and
assisted me in my time of need.

NIDHI KUMARI
A2M-43
 DECLARATION
I, Nidhi Kumari, hereby declare that the project work entitled “A study on consumer
behaviour toward mutual fund with reference of doctors and IT professional in Pune at
Money plant consultancy submitted to the Indira School Of Business Studies is the record of
authentic and original work carried out by me under the guidance of Dr. Parmeshwar Yadav,
faculty mentor, Indira school of business studies, Pune, during the academic year 2018-2020
in the partial fulfilment of the requirement for the degree of Post Graduate Diploma In
Management (PGDM - Marketing).
It is to the best of my knowledge and belief. This is to declare that all my work indulges in
the completion of the assignment such as research, analysis and suggestions is a profound and
honest work of mine and the results embodied in this report have not been submitted to any
other university or institute for the award of any degree.

Place: Pune

Nidhi Kumari
 INDEX
Serial NO. TOPIC PAGE NO.
Executive Summary
1 Introduction and Rational of
study
2 Industry Profile
3 Organisational Profile and
Business Overview
4 Outline of the task
undertaken
5 Theoretical Framework
6 Objective and Scope
7 Research Methodology
8 Analysis and Finding
9 Conclusion and Finding
10 Key Learning and
Contribution
Bibliography
EXECUTIVE SUMMARY
PROJECT TITLE: A study on consumer behaviour toward mutual fund with reference
of doctors and IT professional in Pune.
ORGANISATION NAME: Money plant Consultancy

INTRODUCTION TO TITLE: The project is all about the consumer behaviour towards
mutual fund product return, awareness level and perception for mutual fund by the
individuals Doctors and IT professional.
The project would also help in understanding preference of people regarding mutual fund
investment. Project was to know about mutual fund and its fractioning. This helps to know in
details about mutual fund industry right from its inception Stage, growth and future prospects
and return.
It also helps in understanding different schemes of mutual funds. Because the study depends
upon prominent funds in India and their schemes like equity, income, balance as well as the
returns associated with those schemes. The project study was done to ascertain the asset
allocation, entry load, exit load, associated with the mutual funds. Ultimately this would help
in understanding the benefits of mutual funds to investors.
OBJECTIVE:
 To understand the investor’s behaviour towards investment of mutual fund.
 To understand customer awareness about the products and services provided by the
Money plant consultancy
 To Generate Lead and Cultivate Potential Customers for a Business
IMPORATANCE OF THE STUDY: There are a lot of investment avenues available today
in the financial market for an investor with an investable surplus, can invest in Bank Deposits,
Corporate Debentures and Bonds where there is low risk but low return. He may invest in Stock
of companies where the risk is high and the returns are also proportionately high. The recent
trends in the Stock Market have shown that an average retail investor always lost with periodic
tends. People began opting for portfolio managers with expertise in stock markets who would
invest on their behalf Thus we had wealth management services provided by many institutions,
however they proved too costly for a small investor. These investors have found a good shelter
with the mutual funds with good return.
METHODOLOGY ADOPTED:
This report is based on primary as well as secondary data however primary data collection was
given more it is help in identifying the problem, collecting and analysing the required
information data and providing alternative solution to the problem. Primary data has been
collected by interacting with various people. The secondary data has been collected through
various journals and websites.

SAMPLING PROCEDURE:
The sample was selected randomly irrespective of them being investors. It was collected
through desk visit, by formal and informal talks and though filling up the questionnaire
prepared.
UTILITY TO THE ORAGANIZATION:
 Increases the client for organization for financial planning.
 Filing the ITR of 50+ Client and doing cross selling.
LEARNING FROM THE PROECT:
This study will help mutual fund and consultancy companies to understand the profile of
Doctors and IT(Salaried) investors and their behavioural pattern. By knowing this, companies
can improve their products and can adopt apposite strategy to tap unexplored market in a better
way. Also the study and analysis of the mutual fund it studied that though mutual fund are
subject to risk they are better risk adjusted as compared with stock. It is also useful in case of
getting tax deductions.

CONCLUSION:
Mutual fund represents appropriate investment opportunity for most investors. As financial
markets become more sophisticated and complex, investors need a financial intermediary who
provides the required knowledge and professional expertise on successful investing. As
investors always try to maximize the returns and minimizes the risk. Mutual fund satisfies this
requirement by providing attractive returns with affordable risk. Insurance companies are in
business to accept the risk. In purchasing an insurance Product the customer has transfer the
risk to an insurance company.
CHAPTER 1
INTRODUCTION AN RATIONALE OF
THE STUDY
1.1 INTRODUCTION TO TITLE:
The project is all about the consumer behaviour toward mutual fund product return, check
awareness level and perception of an individuals. It is widely believed that Mutual funds (MFs)
is designed to target small investors, salaried people and others who are intimidated by the stock
market; but on the other hand, like to reap the benefits of stock market investing. In spite of this,
the future of mutual fund and life insurance industry in India will be undeniably competitive in
within the industry.
The project would also help in understanding preference of people regarding mutual
fund and insurance investment. Project was to know about mutual fund and its fractioning. This
helps to know in details about mutual fund industry right from its inception Stage, growth and
future prospects and return.
Many individuals own mutual funds today. To a large extent, mutual funds are the
investment vehicle for the majority of households in the India. Consider the role of mutual fund
in today’s investing environment, learn just how popular mutual funds have become and consider
why investors have chosen to put so much money into funds. Clearly, mutual funds are a major
financial asset for numerous investors, and in many ways. 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 then invested in capital market instruments such as shares, debentures and other securities. The
income earned through these investments and the capital appreciations realized are shared by its
unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most
suitable investment for the common man.
Investment companies should continually introduce new types of funds in an effort to
attract investor’s capital and maximize assets under management. However investment is
increasingly considered as a subject falling under behavioural science rather than finance or
economics. It is governed more by trends and group behaviour rather than rationality. Hence,
designing a general product and expecting a good response will be futile

1.2 SIGNIFICANCE OF THE STUDY:

There are a lot of investment avenues available today in the financial market for an
investor with an investable surplus, can invest in Bank Deposits, Corporate Debentures and
Bonds where there is low risk but low return. there may be invest in Stock of companies where
the risk is high and the returns are also proportionately high. The recent trends in the Stock
Market have shown that an average retail investor always lost with periodic tends. People began
opting for portfolio managers with expertise in stock markets who would invest on their behalf
Thus we had wealth management services provided by many institutions, however they proved
too costly for a small investor. These investors have found a good shelter with the mutual funds
with good return.
It also helps in understanding different schemes of mutual funds. Because the study
depends upon prominent funds in India and their schemes like equity, income, balance as well
as the returns associated with those schemes. The project study was done to ascertain the asset
allocation, entry load, exit load, associated with the mutual funds. Ultimately this would help
in understanding the benefits of mutual funds to investors.

1.3 CONCEPTUALIZATION OF MUTUAL FUND:

A mutual fund is a common pool of money into which investors place their contributions that
are to be invested in accordance with a stated objective. The ownership of the fund is thus joint
or -mutual"; the fund belongs to all investors. A single investors ownership of the fund is in
the same proportion as the amount of the contribution made by him or her bears to the total
amount of the fund,
Mutual Funds are trusts which accept savings from investors and invest the same in diversified
financial instruments in terms of objectives set out in the trusts deed with the view to reduce
the risk and maximize the income and capital appreciation for distribution for the members. A
Mutual Fund is a corporation and the fund manager's interest is to professionally manage the
funds provided by the investors and provide a return on them after deducting reasonable
management fees.
The objective sought to be achieved by Mutual Fund is to provide an opportunity for lower
income groups to acquire without much difficulty financial assets. They cater mainly to the
needs of the individual investor whose means are small and to manage investors portfolio in a
manner that provides a regular in growing growth, safety, liquidity and diversification
opportunities.
DEFINITION:

"Mutual funds are collective savings and investment vehicles where savings of small or
sometimes big) investors are pooled together to in for their mutual benefit and returns
distributed proportionately".
"A mutual fund is an investment that pools your money with the money of an unlimited number
of other investors. In return, you and the other investors each own shares of the fund the fund’s
assets are invested according to an investment objective into the fund's portfolio of investments.
Aggressive growth funds seek long-term capital growth by investing primarily in stocks of fast-
growing smaller companies or market segments. Aggressive growth funds are also called
capital appreciation funds".

1.3.2 WHY SELECT MUTUAL FUND?

The risk return trade-off indicates that if investor is willing to take higher risk then
corresponding he can expect higher returns and vice versa if he pertains to lower risk
instalments, which would be satisfied by lower returns. For example, if investors opt for bank
which provide moderate return with minimal risk. But as he moves ahead to invest in capital
protected funds and the profit-bonds that give out more return which is slightly higher as
compared to the bank deposits but the risk involved also increases in the same proportion.
Thus investors choose mutual funds as their primary means of investing, as Mutual funds
provide professional management, diversification, convenience and liquidity. That doesn't
mean mutual fund investments risk free.
This is because the money that is pooled in are not invested only in debts funds which are less
risk but are also invested in the stock markets which involves a higher risk but can expect
higher returns. Hedge fund involves a very high risk since it is mostly traded in the derivatives
market which is considered very volatile.

1.3.4 DISADVANTAGES OF INVESTING THROUGH MUTUAL FUNDS:

1. No Control over Costs:
An investor in a mutual fund has no control of the overall costs of investing. The investor pays
investment management fees as long as he remains with the fund, albeit in return for the
professional management and research. Fees are payable even if the value of his investments
is declining. A mutual fund investor also pays fund distribution costs, which he would not incur
in direct investing However, this shortcoming only means that there is a cost to obtain the
mutual fund services.
2. No Tailor-Made Portfolio:
Investors who invest on their own can build their on portfolios of shares and bonds and other
securities, Investing through fund means he delegates this decision to the fund managers_ The
very-high-net-worth individuals or large corporate investors may find this to be a constraint in
achieving their objectives. However, most mutual fund managers help investors overcome this
constraint by offering families of funds- a large number of different schemes- within their own
management company. An investor can choose from different investment plans and constructs
a portfolio to his choice.
3. Managing A Portfolio Of Funds:
Availability of a large number of funds can actually mean too much choice for the investor He
may again need advice on how to select a fund to achieve his objectives, quite similar to the
situation he has individual shares or bonds to select.
5. No Control:
Unlike picking your own individual stocks, a mutual fund puts you in the passenger seat of
somebody else's car.
CHAPTER 2
INDUSTRY PROFILE
2.1 INDUSTRY/SECTOR PROFILE
2.1.1 OVERVIEW OF INDUSTRY:
In the 21st century the Most investors are not comfortable paying a fee when it comes
to receiving financial advice and even more so in years where the market sees greater volatility
and when there may be potential losses on investments. Mutual fund is the pool of the money,
based on the trust who invests the savings of a number of investors who shares a common
financial goal, like the capital appreciation and dividend earning.
The money thus collect is then invested in capital market instruments such as shares,
debenture, and foreign market. A insurance plan is a multi-featured product that combines the
benefit of insurance, risk sharing and investment. The investment in a insurance plan works
like a mutual fund and does not come with guaranteed returns, unlike money back, whole-life
or endowment policies.
The objectives of the study were to examine the awareness level in the market for
Mutual Fund, to find the most popular investment avenues among sample of investors, also to
find the importance of various investments based parameters among sample of investors, to
identify the potential customers across locations, age- groups, profession and to get an idea of
customer expectations in terms of rate of return. It was found out that, major of the target
audience have been insured, also must people prefer Insurance Plans to mutual funds and it
was also found that the respondent prefer moderate risk moderate return
2.1.2.AN OVERVIEW ON MUTUAL FUNDS COMPANIES IN INDIA
1.ABN AMRO Mutual Fund:
ABN AMRO mutual fund is promoted by the ABN AMRO banking group, one of the banking
giants in the world with an asset base of over $500 billion. ABN AMRO Asset Management,
a subsidiary of ABN AMRO, manages the investment management business of the group.
ABN AMRO Asset Management is one of the world's leading asset management companies
with more than 70 years of experience in managing money for individual customers and
institutional clients.

2.HDFC Mutual Fund:

HDFC Mutual Fund has been one of the best performing mutual funds in the last few years.
HDFC Asset Management Company Limited (AMC) functions as an Asset Management
Company for the HDFC Mutual Fund.
AMC is a joint venture between housing finance giant HDFC and British investment firm
Standard Life Investments Limited. It conducts the operations of the Mutual Fund and
manages assets of the schemes, including the schemes launched from time to time. As of Aug
2006, the fund has assets of Rs.25,892 crores under management.
3.Birla Sun Life Mutual Fund:

Birla Sunlife Mutual Fund is one of India's leading mutual funds with assets of over Rs.17,098
crore under management as of Aug 2006. Birla Sun Life Asset Management Company Limited,
the investment manager of Birla Sun life Mutual Fund, is a joint venture between the Aditya
Birla Group and Sun Life Financial Services, leading international financial services
organization.ABN AMRO Asset Management (India) Limited is the AMC to the ABN AMRO
mutual fund. ABN AMRO Bank NV holds 75 per cent stake in the AMC. As of Aug 2006, the
fund has assets of over Rs.4,176 crore under management.
4.ICICI Prudential Mutual Fund:

Prudential ICICI Mutual Fund is the largest private sector mutual fund in India with assets of
over Rs.34,119 crore under management as of Aug 2006. The asset management company,
Prudential ICICI Asset Management Company Limited, is a joint venture between Prudential
Plc., Europe's leading insurance company and ICICI Bank, India's premier financial institution.

Prudential Plc. holds 55 per cent of the asset management company and the balance by ICICI
Bank. In a span of just over six years, Prudential ICICI Asset
5.State Bank of India Mutual Fund:

SBI Mutual Fund, India's largest bank sponsored mutual fund, is a joint venture between the
State Bank of India and Society General Asset Management, one of the world's top-notch fund
management companies. Over the years, SBI Mutual Fund has carved a niche for itself through
prudent investment decisions and consistent wealth creation. Since its inception, SBI Funds
Management Private Ltd. has launched thirty-two schemes and successfully redeemed fifteen
of them. Throughout this journey, SBI Mutual Fund has profusely rewarded the 20, 00,000
investors who have reposed their faith in it. Today, the SBI fund boasts of an expertise of
managing assets over Rs. 13,000 crores and has a diverse profile of investors actively parking
their investments across 28 active schemes. A vast network of 82 collection branches, 26
investor service centres, 21 investor service desks and 21 district organizers helps the SBI
Mutual Fund to reach out to their investors.
6.Canbank Mutual Fund:

Canara Bank made its foray into the mutual fund sector by establishing the mutual fund arm
Canbank Mutual Fund in December, 1987. Canara Bank, one of the largest public sector banks
in the country, is also the sponsor of the fund.
Canbank Investment Management Services Limited, a wholly owned subsidiary of the bank,
functions as the AMC to the fund. The operations of the AMC are headed by N R
Ramanujam, managing director. As of Aug 2006, the fund has assets of over Rs.3,246crore
under management.
 Total Market Share of Mutual Fund Companie

Source :
2.1.3 CONTRIBUTION OF THE SECTOR TOWARDS GDP:

Today, India’s financial system is considered to be sound and stable as compared to

many other Asian countries where the financial market is facing many crises. India is now
being ranked as one of the fastest growing economy of the world. As the eleventh five-year
plan has already in progress, India is targeting a GDP growth rate of around 9%. The savings
of the country is now around 29%.
Foreign investors are finding Indian market with high potential. India’s forex reserve is
around $185 billion. Inflation is around 7% which is considered good for a developing
economy. Sensex is more than 16 000 points in Bombay Stock Exchange. Some experts have
opined that the share of the US in world GDP is expected to fall (from 21 per cent to 18 per
cent) and that of India to rise (from 6 per cent to 11 per cent) by 2025, and India will emerge
as the third pole in the global economy after the US and China. All these favourable things
could have not been possible without the sound financial market. The role of Indian mutual
fund and insurance industry as significant financial services in financial market has really been
noteworthy during last one decade or so. In fact, both of these products have emerged as an
important segment of financial market of India, especially in channelizing the savings of
millions of individuals into the investment in equity and debt instruments. From retail
investors’ point of view, keeping large amount of money in bank is not wise as currently bank
rate has fallen down below the inflation rate. As in real terms the value of money decreases
over a period of time, the only.
2.2 MAJOR PLAYERS:
A mutual fund is set up either in the form of a trust or an investment company. The trust is
established by the Asset Management Company (AMC). The trustee holds the property of the
trust for the benefit of its unit holders. Whereas, under the investment company structure, the
mutual fund is established as a public listed company. The AMC, as sponsor of the mutual
fund, appoints its board of directors to manage its affairs, and a custodian for holding all the
assets of the investment company. An AMC is licensed by the SECP and is eligible to operate
the mutual fund and manage its investments.
Mutual funds in India have become very popular. In fact, the AMC has been consistently rising
for the past 5 years. Increased awareness, desire to invest in equity markets safely, stagnated
growth of gold prices, and a few other factors have resulted in more people exploring the
mutual fund option. Here is a list of some of the largest and most mutual fund (AMC) in India.
 ICICI Prudential Mutual Fund
 HDFC Mutual Fund
 Reliance Mutual Fund
 Birla Sun Life Mutual Fund
 SBI Mutual Fund
 UTI Mutual Fund
 ICICI Mutual Fund
 Franklin Templeton Mutual Fund
 DSP BlackRock Mutual Fund

2.3REGULATORY FRAMEWORK
2.3.1 Regulatory Structure of Mutual Funds in India

 Securities and Exchange Board of India (SEBI) is the Regulatory

Authority (...for the Indian Mutual fund industry.)
 SEBI aims to Protect the Interest of Investors (...and in order to do so, SEBI has
consistently introduced several regulatory measures.)
 It has framed SEBI (Mutual Funds) Regulations, 1996 (...which is the principal
regulation for the Mutual fund industry in India.
As the regulator of the Indian capital market, SEBI had framed its first mutual fund regulations
in 1993. In these guidelines SEBI expressed the need for creating a compliance mechanism for
the functioning of the mutual fund industry. These regulations were revised and enlarged
subsequently in 1996.
CHAPTER 3
ORGANIZATIONAL PROFILE AND
BUSINESS OVERVIEW
3.1COMPANY PROFILE:

Money Plant Consultancy is Maharashtra’s largest Tax & investment advisory firm which was
established in 2005 with operations in Pune and now expanded to Mumbai, Thane and New
Mumbai area. We serve more than 21,000 professionals from 100+ MNCs and takes care of
their Tax and Investment needs in a very personalised way. We have made significant
difference to the lives of more than 100,000 investors by our CSR activities which include
seminars on Ethical Financial Planning. Our articles to empower the investors community had
been widely published in the leading Indian Media.
Money Plant Consultancy is Maharashtra’s largest Tax & investment advisory firm which was
established in 2005 with operations in Pune and now expanded to Mumbai, Thane and New
Mumbai area. It serves more than 21,000 professionals from 100+ MNCs and takes care of
their Tax and Investment needs in a very personalized way. They have made significant
difference to the lives of more than 100,000 investors by their CSR activities which include
seminars on Ethical Financial Planning.
Money Plant Consultancy Group facilities outsourcing the non-core activities and provides
knowledge-driven financial services. It aims to offer solutions for financial need and queries
of individuals. With more than 100 man years of consulting and expertise, they are the leading
wealth management, capital markets and advisory company.
Since its inception they have been successful in providing seamless service and significant
advantage for clients with their extremely competent team of qualified professionals
comprising CA’s, MBA’s & CFP’s having in house knowledge pool of financial markets,
instruments and products. Their aim to ensure that clients benefit from the professional
expertise in the financial arena by highly reputed institutions and clients. They strive to provide
transparent, ethical and research-based investments and wealth management services.

Money Plant Consultancy is Maharashtra’s largest and the most Trusted Service provider
specializing “Personalized Advisory Services” for Income Tax & Financial Planning round the
year.

Founded by Mr. Rishabh Parakh (Advisor) in 2005, Money Plant Consultancy is a firm based
out of Pune with operations in Thane,Vashi&Navi Mumbai. Since then, the clientele in the
Personal Finance Market segment has grown to include prestigious brands purely by focusing
on service to our clients where they need it.
3.2MISSION AND VISION OF THE COMPANY :
Aims to gratify the customers with clarity, precision and take on all their Tax and Personal
Finance needs by providing them with the most accurate and timely advice in the most cost-
effective way. Also to decode the complex world of Tax and Finance with the personalized CA
services at all times.

1.Register address/ Number of branches:

2.Address: Row House no. 15, Ujwal Regalia Society, Veerbhadra Nagar Rd, Baner, Pune,
Maharashtra 411041.

3.Branches: 2 (Mumbai , Singapore)

4.Phone: 091300 03344

3.2.1 SERVICES OFFERED:

 Tax Planning And Consultancy

Income Tax Planning.

 Personal Insurance
Life insurance, Health insurance.

 Investment Support
 Mutual fund Investment.
Money Plant Consulting Group facilitates outsourcing the non-core activities and provides
knowledge-driven financial services. Money Plant Consulting Group is a premier outsourcing
& a financial services provider which aims to offer solutions for financial needs and queries of
individuals. They are a leading wealth management, capital markets and advisory company
with over 100 man years of consulting and investing experience.
Money Plant Consulting Group was promoted by Mr Rishabh Parakh(Director). He holds
professional degree of CA from the Institute of Chartered Accountants of India. He started
Money Plant Consulting with an aim to outsource the non-core activities of corporate clients
and to offer personal income tax/ financial market related services to individual clients.
Since its inception they have been successful in providing seamless service and significant
advantage for clients with their extremely competent team of qualified professionals
comprising CA’s and MBA’s & in house knowledge pool of financial markets, instruments
and products. Their aim is to ensure that clients benefit from the professional expertise,
technical knowledge and experience. They have been recognized for expertise in the financial
arena by highly reputed institutions and clients. They strive to provide transparent, ethical and
research- based investment and wealth management services.
3.3 ORGANISATION HIERARCHY:
 The organization is headed by Mr Rishabh Parakh who is the founder and director.
 The organization has departmental heads vis-à-vis HR & Admin.
 Operations and Product & Services.
 The Finance department is headed by the director himself.
 Employees are from diverse backgrounds like CAs, MBAs and software
professionals.

3.3.1Core Functions of Money Plant Consulting Group:

1. Fund Management
a. Loan syndication & Project Appraisal
b. Deployment of surplus funds
c. Decision on short/long terms investment planning
2. Insurance:
The firm has experience in Life & General Insurance advisory, which covers
following types of risks:
a. Online Health & Marine insurance
b. Commercial & Liability insurance, etc
c. Group gratuity & group term insurance

3. Taxation:
a. Consultation on income tax & fringe benefit tax
b. Assessment and Appellate proceedings
c. Transfer pricing

4. Investment advisory services:

The firm has rich experience in advising clients in:-
a. Mutual Fund investments/Financial planning
b. Deployment of surplus funds
c. Decision on short/long term investments

5. Employees’ Taxation and Investments

 a. Conducting seminar, orientation and induction program for the employees
b. Preparation & Submission of income tax returns for corporate employees
c. Tax &Financial planning

6. Taxation
a. Expert advice on tax planning and salary structuring
b. Assessment and appellate cases
c. Preparation & submission of tax returns

7. Loans
Home loans/ Personal loans/ Car Loans/ Credit Cards

8. Insurance(Life & General)

a. Health, Travel & Car insurance
b. Term insurance/ Traditional plans/ ULIP/ Pension Plan

At Money Plant Consultancy we are always passionate about the right service to our clients
and have maintained it as key driver for our success . We are sincerely glad to have the support
and trust of all our prestigious clientele and passionate team members us in getting us to where
we are today.

At Money Plant Consultancy we are always passionate about the right service to our clients
and have maintained it as key driver for our success . We are sincerely glad to have the support
and trust of all our prestigious clientele and passionate team members us in getting us to where
we are today.
3.4 MAJOR CUSTMER :

Start-up Specialist:

Money Plant Consultancy specializes in helping startups quickly form their legal structure with
its easy-to-understand tax, legal & Accounting Systems, we offer a complete range of start-up
services.
 “Start-Up Counselling” Service!

Experts at Money Plant Consultancy help you to deal with various issues regarding your
business start-up, like finalizing the business formation structure, Valuation & Funding
management and various other registrations. We assist you to focus on the growth of your
business and handling all other crucial things that need to be managed completely at our end.
Following is the quick snapshot of our start up services:-
 Start-up Counselling & Consultancy for giving it a legal structure.
 Registration of Proprietorship/ LLP/ Pvt. Ltd/ OPC/ Public Ltd. Companies.
 A2Z Services : Accounting-Tax-Audit-Legal
 Valuation & Funding management
 Other Registrations and Necessary Compliances

Expert Consultation on Tax Liability:

Money Plant Consultancy offer a dedicated Personal Financial Advisor to help NRIs deal with
all the Rules and Regulations as applicable to them and also understand what part of their
income is chargeable to tax in India. The consultation will be provided as per the provisions of
the Income Tax Act, 1961 and the relevant Double Taxation Avoidance Agreement.

We work with you in doing an effective tax planning. In addition to this, our experts will advise
you to plan your investments in the right options available & maximize your returns.

Our Exclusive Tax Filing Services for NRIs:

 Income, Wealth & other Tax Filing Services.
 Tax Planning & Saving Tips for.
 Double TAX Avoidance Services.
 Company Formation & Business Set-up for NRIs.
 Various other Personalized Services for NRIs.
 Plus you would also be entitled for additional benefits & Services as follows:
 Back up of your ITR data & Acknowledgment for Life – Both in Hard copy & Soft
Copy.
 Advance Tax Payment at regular intervals
 Round the year support for any Income Tax queries ( unlimited queries
 CHAPTER 4
OUTLINE OF TASK
UNDERTAKEN
4.1 TASK UNDERTAKEN
 Visiting Doctors 3 clinic per day
 Handle number of cognizant client
 Advise clients on investment instrument like mutual fund
 Providing solutions to the queries and difficulties of the clients.
 Advising client through desk visit, by formal and informal talks and though filling up
the questionnaire prepared.
4.2 SURVEY
Most of the assesses are generally ignorant of the mutual fund options and hence they do
not properly plan their finance. Hence, in this chapter, an attempt is made to measure and
analyse the doctor and salaried assesses level of awareness on financial planning in mutual
fund. For the purpose of collecting the required information from the selected salaried
sample assesses, the questionnaire method was adopted.
4.3 IDENTIFICATION OF PROBLEM
 The problems faced during the task undertaken were the client did not response properly
even they don’t have time to fill the questionnaire form
 The other problem faced on large scale was money plant consultancy still doing
business offline for taxation so its little bit slow process for client
 Because of Risk factor in mutual fund client not easily ready to invest in mutual fund
 The other problem faced was of the people not aware about different schemes in
mutual fund like ELSS fund which is beneficial for them to save their tax.
 The problem was to wait for an hour for appointment with doctors.
CHAPTER 5
THEORITICAL FRAMEWORK
5.1 WORKING OF MUTUAL FUNDS :
The mutual fund collects money directly or through brokers from investors. The money is
invested in various instruments depending on the objective of the scheme. The income
generated by selling securities or capital appreciation of these securities is passed on to the
investors in proportion to their investment in the scheme. The investments are divided into
units and the value of the units will be reflected in Net Asset Value or NAV of the unit_ NAV
is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net
asset value of the scheme divided by the number of units outstanding on the valuation date_
Mutual fund companies provide daily net asset value of their schemes to their investors. NAV
is important, as it will determine the price at which you buy or redeem the units of a scheme_
Depending on the load structure scheme, you have to pay entry or exit load.

5.2 TYPE OF MUTUAL FUND:

A) BY STRUCTURE
5.2.1 Open - Ended Schemes:
An open-end fund is one that is available for subscription all through the year. These do not
have a fixed maturity_ Investors can conveniently buy and sell units at Net Asset Value
("NAV") related prices. The key feature of open-end schemes is liquidity.
5.2.2 Close - Ended Schemes:
A closed-end fund 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.
5.2.3 Interval Schemes:
Interval Schemes are that scheme, which combines the features of open-ended and close-
ended schemes. The units may be traded on the stock exchange or may be open for sale or
redemption during pre-determined intervals at NAV related prices.
B) BY NATURE
5.3.1. Equity Fund:
These funds invest a maximum part of their corpus into equities holdings. The structure of the
find may vary different for different schemes and the fund manager's outlook on different
stocks. The Equity Funds are sub-classified depending upon their investment objective, as
follows:
 Diversified Equity Funds
 Mid-Cap Funds
 Sector Specific Funds
 Tax Savings Funds (ELSS)
Equity investments are meant for a longer time horizon, thus Equity funds rank high on the
risk-return matrix.
5.3.2. Debt Funds:
The objective of these Funds is to invest in debt papers. Government authorities, private
companies, banks and financial institutions are some of the major issuers of debt papers. By
investing in debt instalments, these funds ensure low risk and provide stable income to the
investors. Debt funds are further classified as:
5.3.3 Gilt Funds: Invest their corpus in securities issued by Government, popularly known as
Government of India debt papers. These Funds carry zero Default risk but are associated with
Interest Rate risk. These schemes are safer as they invest in papers backed by Government.
5.3.4 Income Funds: Invest a major portion into various debt instruments such as bonds,
corporate debentures and Government securities.
5.3.5 MIPs: Invests maximum of their total corpus in debt instruments while they take
minimum exposure in equities. It gets benefit of both equity and debt market. These scheme
ranks slightly high on the risk-return matrix when compared with other debt schemes.
5.3.6 Short Term Plans (STPs): Meant for investment horizon for three to six months_ These
funds primarily invest in short term papers like Certificate of Deposits (CDs) and Commercial
Papers (CPO. Some portion of the corpus is also invested in corporate debentures.
5.3.7 Liquid Funds: Also known as Money Market Schemes, These funds provides easy
liquidity and preservation of capital_ These schemes in-vest in short-term instruments like
Treasury Bills, inter-bank call money market, CPs and CDs_ These funds are meant for short-
term cash management of corporate houses and are meant for an investment horizon of lday to
3 months_ These schemes rank low on risk-return matrix and are considered to be the safest
amongst all categories of mutual funds.
5.3.8 Balanced Funds:
As the name suggest they, are a mix of both equity and debt funds_ They invest in both equities
and fixed income securities, which are in line with pre-defined investment objective of the
scheme. These schemes aim to provide investors with the best of both the worlds. Equity part
provides growth and the debt part provides stability in returns.
Further the mutual funds can be broadly classified on the basis of investment parameter viz,
Each category of funds is backed by an investment philosophy, which is pre-defined in the
objectives of the fund. The investor can align his own investment needs with the funds
objective and invest accordingly.
5.4INVESTMENT OBJECTIVE:
5.4.1 Growth Schemes:
Growth Schemes are also known as equity schemes. The aim of these schemes is to provide
capital appreciation over medium to long term. These schemes normally invest a major part of
their fund in equities and are willing to bear short-term decline in value for possible future
appreciation.
5.4.2 Income Schemes:
Income Schemes are also known as debt schemes The aim of these schemes is to provide
regular and steady income to investors. These schemes generally invest in fixed income
securities such as bonds and corporate debentures. Capital appreciation in such schemes may
be limited.
5.4.3. Balanced Schemes:
Balanced Schemes aim to provide both growth and income by periodically distributing a part
of the income and capital gains they earn. These schemes invest in both shares and fixed income
securities, in the proportion indicated in their offer documents (normally 50:54
5.4.4 Money Market Schemes:
Money Market Schemes aim 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,
5.4.5 Load Funds:
A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or
sell units in the fund, a commission will be payable typically entry and exit loads range from
I% to 2%. It could be worth paying the load, if the fund has a good performance history.
5.4.6 No-Load Funds:
A No-Load Fund is one that does not charge a commission for entry or exit. That is, no
commission is payable on purchase or sale of units in the fund. The advantage of a no load
fund is that the entire corpus is put to work.
5.5 OTHER SCHEMES
5.5.1 Tax Saving Schemes:
Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to
time. Under Sec88 of the Income Tax Act, contributions made to any Equity Linked Savings
Scheme (EL SS) are eligible for rebate.
5.5.2 Index Schemes:
Index schemes attempt to replicate the performance of a particular index such as the BSE
Sensex or the NSE. 50 The portfolio of these schemes will consist of only those stocks that
constitute the index. The percentage of each stock to the total holding will be identical to the
stocks index weightage, and hence, the returns from such schemes would be more or less
equivalent to those of the Index.
5.5.3 Sector Specific Schemes:
These are the funds/schemes which invest in the securities of only those sectors or industries
as specified in the offer documents. E.g. Pharmaceuticals,, Software, Fast Moving Consumer
Goods (FM CG), Petroleum stocks, etc. The returns in these funds are dependent on the
performance of the respective sectors/industries. While these funds may give higher returns,
they are more risky compared to diversified funds. Investors need to keep a watch on the
performance of those sectors/industries and must exit at an appropriate time.
5.6 NET ASSET VALUE
Since each owner is a part owner of a mutual fund, it is necessary to establish the value of his
part. In other words, each share or unit that an investor holds needs to be assigned a value.
Since the units held by investor evidence the ownership of the fund's assets, the value of the
total assets of the fund when divided by the total number of units issued by the mutual fund
gives us the value of one unit. This is generally called the Net Asset Value (NAV) of one unit
or one share. The value of an investor's part ownership is thus determined by the NAV of the
number of units held.
5.6.1 Calculation of NAV:
Let us see an example_ If the value of a fund's assets stands at Rs. 100 and it has 10 investors
who have bought 10 units each, the total numbers of units issued are 100, and the value of one
unit is Rs_ 10_00 (1000/104 If a single investor in fact owns 3 units, the value of his ownership
of the fund will be Rs_ 30.00(1000/100* 3)_ Note that the value of the fund's investments will
keep fluctuating with the market-price movements, causing the Net Asset Value also to
fluctuate. For example, if the value of our fund's asset increased from Rs. 1000 to 1200, the
value of our investors holding of 3 units will now be (1200.1100*3) Rs_ 36_ The investment
value can go up or down, depending on the markets value of the fund's assets.
5.7MUTUAL FUND FEES AND EXPENSES
Mutual fund fees and expenses are charges that may be incurred by investors who hold mutual
funds. Running a mutual fund involves costs, including shareholder transaction costs,
investment advisory fees, and marketing and distribution expenses. Funds pass along these
costs to investors in a number of ways.
5.7.1 TRANSACTION FEES
1) Purchase Fee:
It is a type of fee that some funds charge their shareholders when they buy shares. Unlike a
front-end sales load, a purchase fee is paid to the fund (not to a broker) and is typically imposed
to defray some of the fund's costs associated with the purchase.
2) Redemption Fee:
It is another type of fee that some funds charge their shareholders when they sell or redeem
shares. Unlike a deferred sales load, a redemption fee is paid to the fund (not to a broker) and
is typically used to defray fund costs associated with a shareholder's redemption.
3) Exchange Fee:
Exchange fee that some funds impose on shareholders if they exchange (transfer) to another
fund within the same fund group or "family of funds."
5.8 PERIODIC FEES
1) Management Fee:
Management fees are fees that are paid out of fund assets to the fund's investment adviser for
investment portfolio management., any other management fees payable to the fund's
investment adviser or its affiliates, and administrative fees payable to the investment adviser
that are not included in the "Other Expenses" category. They are also called maintenance fees.
2) Account Fee:
Account fees are tees that sonic thuds separately impose on investors in connection with the
maintenance of their accounts. For example, some funds impose an account maintenance fee
on accounts whose value is less than a certain dollar amount.
3) Other Transaction Costs:
These costs are incurred in the trading of the fund's assets. Funds with a high turnover ratio, or
investing in illiquid or exotic markets usually face higher transaction costs Unlike the Total
Expense Ratio these costs are usually not reported,
5.9 LOADS
5.9.1 Definition of a load
Load funds exhibit a "Sales Load" with a percentage charge levied on purchase or sale of
shares. Depending on the type of load a mutual fund exhibits, charges may be incurred at time
of purchase, time of sale, or a mix of both. The different types of loads are outlined below.
1) Front-end load:
Also known as Sales Charge, this is a fee paid when shares are purchased. Also known as a
"front-end load," this fee typically goes to the brokers that sell the fund's shares. Front-end
loads reduce the amount of your investment. For example, let's say you have Rs. 10,000 and
want to invest it in a mutual fund with a 5% front-end load. The Rs.500 sales load you must
pay comes off the top, and the remaining Rs. 9500 will be invested in the fund. According to
NASD rules, a front-end load cannot be higher than 8.5% of your investment.
2) Back-end load:
Also known as Deferred Sales Charge, this is a fee paid when shares are sold. Also known as
a "back-end load.” this fee typically goes to the brokers that sell the fund's shares. The amount
of this type of load will depend on how long the investor holds his or her shares and typically
decreases to zero if the investor holds his or her shares long enough.
3) Level load I Low load:
It's similar to a back-end load in that no sales charges are paid when buying the fund. Instead
a back-end load may be charged if the shares purchased are sold within a given time frame.
The distinction between level loads and low loads as opposed to back-end loads is that this
time frame here charges are levied is shorter.
4) No-load Fund:
As the name implies, this means that the fund does not charge any type of sales load. But, as
outlined above, not every type of shareholder fee is a "sales load" A no-load find may charge
fees that are not sales loads, such as purchase fees, redemption fees, exchange fees, and account
fees.
5.10 SELECTION PARAMETERS FOR MUTUAL FUND
The first point to note before investing in a fund is to find out whether your objective matches
with the scheme_ It is necessary, as any conflict would directly affect your prospective
returns_ Similarly, you should pick schemes that meet your specific needs. Examples:
pension plans, children's plans, sector-specific schemes, etc
Risk capacity and capability:
This dictates the choice of schemes, Those with no risk tolerance should go for debt schemes,
as they are relatively safer. Aggressive investors can go for equity investments. Investors that
are even more aggressive can try schemes that invest in specific industry or sectors.
Fund Manager's and scheme track record:
Since you arc giving your hard earned money to someone to manage it, it is imperative that he
manages it well. It is also essential that the fund house you choose has excellent track record.
It also should be professional and maintain high transparency in operations. Look at the
performance of the scheme against relevant market benchmarks and its competitors. Look at
the performance of a longer period, as it will give you how the scheme fared in different market
conditions.
Cost factor: Though the AMC fee is regulated, you should look at the expense ratio of the
fund before investing This is because the money is deducted from your investments. A higher
entry load or exit load also will eat into your returns. A higher expense ratio can be justified
only by superlative returns. It is very crucial in a debt fund, as it will devour a few percentages
from your modest returns. Each year end, many financial publications list the year’s best
performing mutual funds. Naturally very eager investors will rush out to purchase shares of
last year's top performers. That's a big mistake. Remember, changing market conditions make
it rare that last year's top performer repeats that ranking for the current year Mutual fund
investors would be well advised to consider the fund prospectus, the fund manager, and the
current market conditions. Never rely on last year's top performers.
5.11 Types of Returns on Mutual Fund:
There are three ways, where the total returns provided by mutual funds can be enjoyed by
investors:
1) Income is earned from dividends on stocks and interest on bonds A fund pays out nearly all
income it receives over the year to fund owners in the form of a distribution.
2) If the find sells securities that have increased in price, the fund has a capital gain. Most funds
also pass on these gains to investors in a distribution.
3) If fund holdings increase in price but are not sold by the fund manager, the fund's shares
increase in price. You can then sell your mutual fund shares for a profit Funds will also usually
give you a choice either to receive a check for distributions or to reinvest the earnings and get
more shares.
5.12 RISK FACTORS OF MUTUAL FUNDS:
1) The Risk-Return Trade-Off:
The most important relationship to understand is the risk-return trade-off. Higher the risk
greater the returns loss and lower the risk lesser the returns loss.
Hence it is upto you, the investor to decide how much risk you are willing to take. In order to
do this you must first be aware of the different types of risks involved with your investment
decision.
2) Market Risk:
Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting
the market in general lead to this This is true, may it be big corporations or smaller mid-sized
companies, This is known as Market Risk. A Systematic Investment Plan ("SIP") that works
on the concept of Rupee Cost Averaging (RCA") might help mitigate this risk.
1) Credit Risk:
The debt servicing ability (may it be interest payments or repayment of principal) of a company
through its cash flows determines the Credit Risk faced by you. This credit risk is measured by
independent rating agencies like CRISIL who rate companies and their paper. A 'AAA' rating
is considered the safest whereas a 'D' rating is considered poor credit quality. A well-diversified
portfolio might help mitigate this risk.
4) Inflation Risk:
"Rs. 100 today is worth more than Rs, 100 tomorrow."
"Remember the time when a bus ride costed 50 paise?"
"Mehangai ka Jamana Hai."
The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot of times
people make conservative investment decisions to protect their capital but end up with a sum
of money that can buy less than what the principal could at the time of the investment. This
happens when inflation grows faster than the return on your investment. A well-diversified
portfolio with some investment in equities might help mitigate this risk_
5) Interest Rate Risk:
In a free market economy interest rates arc difficult if not impossible to predict_ Changes in
interest rates affect the prices of bonds as well as equities. If interest rates rise the prices of
bonds fall and vice versa. Equity might be negatively affected as well in a rising interest rate
environment_ A well-diversified portfolio might help mitigate this risk,
6) Political Government Policy Risk:
Changes in government policy and political decision can change the investment environment.
They can create a favourable environment for investment or vice versa.
7) Liquidity Risk:
Liquidity risk arises when it becomes difficult to sell the securities that one has purchased.
Liquidity is can be partly mitigated by diversification, staggering of maturities as well as
internal risk controls that lean towards purchase of liquid securities.
CHAPTER 6
OBJECTIVES AND SCOPE OF
PROJECT
6.1 OBJECTIVES:
 To study the performance of mutual fund in financial sector.
 To understand the investor’s behaviour towards investment of mutual fund
 To Generate Lead and Cultivate Potential Customers for a Business
 To study consumer behaviour towards mutual fund with reference to doctor and IT
Professional.

6.2 SCOPE OF THE STUDY:

 To make people aware about concept of mutual fund
 To advise where to invest or not to invest
 To provide information regarding types of mutual fund which is beneficial for them.
 To aware about Product and Service provided by Money Plant Consultancy.
CHAPTER 7
METHODOLOGY
7.1 RESEARCH METHODOLOGY:
In any research study, the research design adopted is basic and vital concept. The design
adopted will help the proper method of approach in several aspects such as preparing
questionnaire, sampling method, and data collection etc. In the present study, a comparative
idea of the responses of the chosen respondents about the investors behaviour on Mutual fund
and Insurance Market will help to have as an idea in important aspects of the investors in the
decision of the investment and its impact. Hence, the study design descriptive analysis. This
would give the required information on the expectations, extent of fulfilment of the
expectations and it would help to have an idea of various investment preferences. The data
were collected through using a structured questionnaire.
Type of Research:
During the project, descriptive research methodology was adopted. Books, reports, journals,
newspapers cases and appeals have been studied for the purpose of getting in-depth knowledge
and insight about philosophy underlying in Mutual fund and Insurance. For the purpose of
research study data was collected from different sources. Primary and secondary data have
been utilised in this research.
7.2 DATA COLLECTION:

PRIMARY DATA IS COLLECTED THROUGH:

 Questionnaire was used to get the information from salaried individuals.
 It was collected through desk visit, by formal and informal talks and though filling up
the questionnaire prepared.
SECONDARY DATA IS COLLECTED THROUGH:
Here in this research project the secondary data is used data which are taken from published
sources of Bombay stock exchange, Money control, value research online, National stock
exchange, Insurance and Mutual fund India
7.3 DURATION OF RESEARCH
Duration of Research was two and half months
7.4 DATA ANALYSIS:
 QUESTIONNAIRE
1. Are you aware about products and services of the Money plant consultancy?

a. Yes
b. No
c. partial

2. Have you ever invested in mutual funds?

a. Yes
b. No

3. If No, do you intend to invest in mutual funds?

a. Yes
b. No

4. What form of investment do you prefer? Rank them in order of your preference.
a. Real estate
b. Shares/debentures
c. Fixed deposit
d. Mutual funds
e. Post offices schemes.
f. PPF
g. UTI schemes
h. gold
i. LIC policy
j. NSC, NSS

5. Tick the most preferred basis that you consider are important while investing into any
investment scheme.
a. Safety
b. Liquidity
c. Tax benefits
d. Reliability
e. High return

6. Which type of scheme do you prefer most?

a. Equity (Growth &Dividend)
b. Debt (income)
c. tax benefit
d. Reliability
e. high return

7. Which of the following source of information influenced you most in selection of

mutual funds?
 a. Brokers
b. Financial advisors’
c. Friend’s Advice
d. Newspaper/ financial journal
e. TV/Internet

8. What has been your experience with returns expected from investment in mutual funds?
a. Very high
b. High
c. Neither high nor low
d. Very low

Q1. Are you aware about products and services

of the Money plant consultancy?
25

20

15

10

0
YES NO PARTIAL
From above data we are trying to find out how many people are aware of product and service
of money plant consultancy .As we can see that the data collected , about 80% of the people
are not aware about the company due to lack of promotion and social presence
of the company.

Q2 Have you ever invested in mutual funds?

20
18
16
14
12
10
8
6
4
2
0
Yes NO

From above data we are trying to find out how many peoples invested in mutual fund .After
collecting data, we found that 72% invested in mutual fund due to its higher returns, smartly
managed, diversified investment and flexible withdrawal and about of 28% don’t invest
because they are not aware or due to market risk which is uncertain.

Q 3 If No, do you intend to invest in mutual funds?

16
14
12
10
8
6
4
2
0
YES NO

From above data we are trying to find out how many people intend to invest in mutual fund.
After collecting Data ,we found that 56% intend to invest. Other 44% want to invest in other
schemes .
 Q4 What form of investment do you prefer?
10
9
8
7
6
5
4
3
2
1
0
Real ESTATE Fixed Deposit Mutual Fund PPf Gold Lic policy

From above data we are trying to find out What form of investment do they prefer. After
collecting the above data ,we found that 36% people invest in fixed deposit because it Gives
fixed interest and risk is minimal, 24% people invest in real estate , 20%people invest in PPF
and about 36% people invest in mutual fund .

Q5 Tick the most preferred basis that you consider are

important while investing into any investment scheme
9.2
9
8.8
8.6
8.4
8.2
8
7.8
7.6
7.4
Safety Tax benefit High Return

From above data we are trying to find out people on what basis consider any investment
scheme while investing. After collecting the above data ,we found that 36 % people prefer
tax benefit and 32% prefer safety because Market is uncertain and people are not aware
how will it effect the economy .
 Q6 Which type of scheme do you prefer most?

12

10

0
Equity Tax Benefit High Return

From above data we are trying to find out Which type of scheme do they prefer most After
collecting the above data ,we found that about 40% prefer tax benefit scheme and 32% prefer
equity market because the return from equity are more than any other schemes ,that are not
fixed and people can buy and sell equity according to them.

Q7 Which of the following source of information

influenced you most in selection of mutual funds
12

10

0
Financial Service friend Newspaper Tv/Internet

From above data we are trying to find out which source influences the most in selecting the
mutual fund. After collecting the above data ,we found that 40% are influenced by financial
advisor and 28% by friends advice.
 Q8 What has been your experience with returns expected
from investment in mutual funds?

12

10

0
Very High High Neither high nor low very low

From above data we are trying to find out What has been the experience with returns expected
from investment in mutual funds .we found that about 40% of people have neither high nor
low return because they have invested through financial advisor or by themselves .About 28%
had very low return because they might invested in wrong funds or didn’t took financial advisor
help or market was not performing good, 16% people experience were very high because of
professionally managed by qualified and experienced fund managers and tax exemption
benefits.
CHAPTER 8
ANALYSIS AND FINDING
8.1 LIMITATIONS:
Apart from Details about mutual funds it has some limitations due to that all the details could
not be published & displayed. It has been done on the basis of secondary sources like Journals,
Websites & like resources.
 Time constraints: Due to shortage or less availability of time it may be possible that all
the related & concerned aspects may not be covered in the project
 Analysis done is limited to the availability of data.
 It is very difficult to evaluate the accuracy of secondary data.

8.2 FINDINGS:
 Mind-sets of the investors are not towards mutual funds. They still think of investing in
traditional investment alternatives. Customers are not properly educated about the
mutual funds.
 Few private sectors banks like ICICI, HDFC, UTI, ING VYSYA etc. sell mutual funds
through their branches only.
 Specialized agents of mutual funds are rarely seen. Financial advisors are not seen there
who can educate the investors.
 Posters, banners or other promotional activities are rarely seen in this market. Mutual
fund companies do not have aggressive strategies. Insurance products are and can be
the main competitors of mutual fund.
 More than half of the respondents have wrong perception about the mutual funds. They
feel mutual funds are very risky investment alternative
 Most of the respondents are satisfied with their current return from their investment.
 Most of the respondents do not want to take risk in investing their money in mutual
funds.
 Consumer past experience with returns expected from investment in mutual funds was
very low.

 CHAPTER 9
CONSLUSIONS AND
SUGGESTIONS
9.1 CONCLUSION

We can infer from the analysis that the concept of mutual fund in India is still in its growing
phase. With the growing importance of mutual fund in other areas in the country, this place is
witnessing the same rate of growth in mutual funds Average savings of the people vary between
55% to70% in insurance and hardly 28% to35% people invested in mutual fund schemes.
Apart from these facts the following are some other important facts which can easily be inferred
from the paper.
 Huge opportunities of Mutual funds exist in the India. The market is in a growing
market and As because many companies exist in this market, competition is cut to
throat.

 Mindsets of the investors are not towards mutual funds. They still think of investing in
traditional investment in insurance product only. And Customers are not properly
educated about the mutual funds.

 Insurance whether it is unit-linked or otherwise , is not a pure savings product , which

a mutual fund is. The primary objective of an insurance product is protection. The
whole reason why it as evolved as a saving plan in the minds of certain people is
because there is significant savings component attached to it, however , it is still not the
primary purpose of plan .

 Few private sectors banks like ICICI, HDFC, UTI, ING VYSYA etc. sell mutual funds
through their branches only. Specialized agents of mutual funds are rarely seen.
Financial advisors are not seen there who can educate the investors. But in case of
insurance there are so many insurance advisor available in LIC so people more aware
about insurance product.

 Posters, banners or other promotional activities are rarely seen in this market.
Mutual fund companies do not have aggressive strategies. Insurance products are and
can be the main competitors of mutual funds. Mutual fund investors are confined to the
upper-middle class in this market. Upper-lower class and lower- class people are still
untouched. But insurance is known to upper middle and lower class also.

9.2 SUGGESTIONS

 Money plant consultancy still doing their business offline so its little bit slow process
for client.
 Company should take initiatives to make the customers aware about all the different
schemes which is available for mutual fund and insurance.
 Reminder mails should be floated among the customers regarding various investment
opportunities available to acknowledge the customer about the same.
 CHAPTER 10
KEY LEARNINGS AND
CONTRIBUTION TO THE
HOST ORGANIZATION
10.1 LEARNINGS

 The project helped in understanding the work environment and work culture in a
company.
 The study will help the individuals to make a wise decision in investing their savings;
such as: whom to buy from and where to buy
 Further this study will help mutual fund and insurance companies to understand the
profile of Indian retail investors and their behavioural pattern.
 Learned the Consumer behaviour towards different investment schemes.
 Learned the people perception regarding mutual fund
 Learned How the financial market works.
 Studied the main investments that people generally make like in FD, insurance, etc.
 The project helped in understanding the work environment and work culture in a
company.

0.2 CONTRIBUTION TO HOST ORGANIZATION

 Advising the clients for financial planning in Mutual fund
 Generated leads and converted into clients
 Most of the client they don’t have idea about the ELSS Fund which help them in
their tax saving.
 Helped the organization by increasing the client for financial planning.
 Helped the organization by filing 50+ tax return and done cross selling
 BIBLOGRAPHY
LINKS:
 http://www.valueresearchonline.com/funds/default.asp Retrieved on 8/02/2016.
 http://www.moneycontrol.com/mutual-funds/top-rated-funds?classic=true
 https://economictimes.indiatimes.com/mf/analysis/top-10-mutual-
funds/articleshow/58822349.cms
 http://www.nseindia.com
 http://www.bseindia.com
 http://shodhganga.inflibnet.ac.in/bitstream/10603/687/10/10_chapter2.pdf
 https://www.scribd.com/document/353307344/Comparative-Study-of-Mutual-Fund-
Returns-and-Insurance-Returns
 Friend et.al, (1962). “A Study of Mutual Funds” U.S. Securities and Exchange
Commission, USA.

BOOKS:
 Mutual fund in India- by H. Sadhak

RESEARCH PAPERS:
Sikidar, S. and Singh, A. P. (1996). Financial Services: Investment in Equity and Mutual
Funds – A Behavioral Study. In B. S. Bhatia and G. S. Batra, (eds). Management of Financial
Services, New Delhi: Deep and Deep Publications, 136-145.
Zheng, L. (1999). Is money smart? A study of mutual fund investors’ fund selection ability.
Journal of Finance, 54, 901-933.
Sen, S. and Madheswaran, S. (2007). Are Life Insurance Demand Determinants Valid for
Selected Asian Economics and India? Paper for Presentation at the 11th Annual Meeting of
APRIA, NCCU Taipei, July 22-25 2007, 3.