A

Project Report
On
Portfolio Management And Mutual Fund Analysis

Guided By:
Prof B.N. Sharma
Submitted by: Afroz Jahan
REGD. NO:- A19201167259

Master of Business Administration

In
Finance Management

SEMESTER-IV

July 2019 Session

 BONAFIDE CERTIFICATE

Certificated that this project report titled "Portfolio Management And Mutual Fund
Analysis" is the Bonafide work of "Afroz Jahan", bearing Roll NO:

A19201167259 who carried out the project work under my supervision.

Guide
Mr. B.N. Sharma
 DECLARATION

I, Afroz Jahan hereby declare that this Project Report titled "Portfolio Management
And Mutual Fund Analysis", is a genuine project undertaken by me under the
guidance of Mr. B.N. Sharma, Amity University in partial fulfilment of the
requirements of my MBA Project.

All findings and analysis in this project report are true, authentic and partial. I
promise that the data gathered for the purpose of this report will not be made public
and will be kept confidential, except for academic purpose.

Afroz Jahan
REGD. NO.:- A19201167259
 ACKNOWLEDGEMENT

On the very outset of this report, I would like to extend my sincere & heartfelt
obligation towards all the personages who have helped me in this endeavor. Without
their active guidance, help, cooperation & encouragement, I would not have made
headway in the project. I am ineffably indebted to Mr. B.N. Sharma for conscientious
guidance and encouragement to accomplish this assignment. I am extremely
thankful and pay my gratitude to my faculty Mr. B.N. Sharma valuable guidance and
support on completion of this project in its presently. I extend my gratitude to Amity
University for giving me this opportunity. I also acknowledge with a deep sense of
reverence, my gratitude towards my parents and member of my family, who has
always supported me morally as well as economically. At last but not least gratitude
goes to all of my friends who directly or indirectly helped me to complete this project
report. Any omission in this brief acknowledgement does not mean lack of gratitude.

Thanking You
Name-Afroz Jahan
Roll no- A19201167259
 TABLE OF CONTENTS
Student Declaration………………………………………………………. (i)
Certificate from Guide……………………………………………………. (ii)
Acknowledgement………………………………………………………… (iii)
Executive Summary……………………………………………………… (iv)
List of Figures…………………………………………………………….. .(v)
List of Tables……………………………………………………………… (vi)
List of Graphs……………………………………………………………. (viii)
CHAPTER 1- INTRODUCTION
1.1 About the company…………………………………………………... 2
CHAPTER 2- TOPIC INTRODUCTION AND LITERATURE REVIEW
2.1 About the topic………………………………………………………. 11
2.2 Literature Review……………………………………………………...30
CHAPTER 3- RESEARCH METHODOLOGY
3.1 Purpose of the study…………………………………………………..33
3.2 Research Objectives of the study……………………………………..33
3.3 Research Methodology of the study…………………………………..34
3.3.1 Research Design……………………………… ………………...34
3.3.2 Data Collection Techniques …………………………………….34
3.3.3 Sample design…………………………………………………35
3.3.3.1 Population………………………………………………....35
3.3.3.2 Sample size………………………………………………...35
3.3.3.3 Sampling method………………………………………...35
3.3.4 Method of data collection…………………………………….35
3.3.4.1 Instrument for data collection…………………………….35
3.3.4.2 Drafting of a questionnaire……………………………….36
3.3.5 Limitations……………………………………………………...36
CHAPTER 4- ANALYSIS & INTREPRETATION
4.1 Analysis and Interpretation……………………………………………38
4.2 Comparison Between Two Mutual Funds……………………………57
CHAPTER 5- FINDINGS
5.1 Findings………………………………………………………………64
CHAPTER 6- RECCOMENDATIONS & CONCLUSION
6.1 Recommendations………………………………………………….....67
6.2 Conclusion…………………………………………………………….68
BIBLIOGRAPHY………………………………………………………..70
ANNEXURES
Annexures1…………………………………………………………………73
 EXECUTIVE SUMMARY
In few years Mutual Fund has emerged as a tool for ensuring one’s financial
well being. Mutual Funds have not only contributed to the India growth story
but have also helped families tap into the success of Indian Industry. As
information and awareness is rising more and more people are enjoying the
benefits of investing in mutual funds. The main reason the number of retail
mutual fund investors remains small is that nine in ten people with incomes in
India do not know that mutual funds exist. But once people are aware of
mutual fund investment opportunities, the number who decide to invest in
mutual funds increases to as many as one in five people. The trick for
converting a person with no knowledge of mutual funds to a new Mutual Fund
customer is to understand which of the potential investors are more likely to
buy mutual funds and to use the right arguments in the sales process that
customers will accept as important and relevant to their decision.
This Project gave me a great learning experience and at the same time it gave
me enough scope to implement my analytical ability. The analysis and advice
presented in this Project Report is based on market research on the saving and
investment practices of the investors and preferences of the investors for
investment in Mutual Funds. This Report will help to know about the investors’
Preferences in Mutual Fund means Are they prefer any particular Asset
Management Company (AMC), Which type of Product they prefer, Which
Option (Growth or Dividend) they prefer or Which Investment Strategy they
follow (Systematic Investment Plan or One time Plan). This Project as a whole
can be divided into two parts.
The first part gives an insight about Mutual Fund and its various aspects, the
Company Profile, Objectives of the study, Research Methodology. One can
have a brief knowledge about Mutual Fund and its basics through the Project.
The second part of the Project consists of data and its analysis collected
through survey done on 200 people. For the collection of Primary data I made
a questionnaire and surveyed of 200 people. I visited other AMCs to get some
knowledge related to my topic. I studied about the products and strategies of
other AMCs to know why people prefer to invest in those AMCs. This Project
covers the topic “PORTFOLIO MANAGEMENT AND MUTUAL FUND ANALYSIS”.
The data collected has been well organized and presented. I hope the research
findings and conclusion will be of use.

LIST OF FIGURES

Page
Name of the Figure
No.

Figure 1.01 Investor Care …………… 4

Figure 1.02 SWOT Analysis Process 7
Figure 1.03 Categories Of Mutual Fund 13
Figure 1.04 Working Of Mutual Fund 18
Figure 1.05 Risk V/S Return 20
Figure 1.06 Working Of Portfolio Management 22

LIST OF TABLES
 Page
Name of the Table
No.

Table-4.01 Age Group …………… 38

Table-4.02 Education Qualification …………… 39
Table-4.03 Occupation …………… 40
Table-4.04 Income …………… 41
Table-4.05 Awareness …………… 42
Table-4.06 Source Of Information 43
……………
Table-4.07 Investment in MF 44
……………
Table-4.08 Reason Of Investment 45
……………
Table-4.09 Reason For Not Investing In MF 46
……………
Table-4.10 Knowledge 47
……………
Table-4.11 MF Schemes 48
……………
Table-4.12 Investment In MF Companies 49
……………
Table-4.13 Reason For Choosing A Particular 50
MF …………… 51
Table-4.14 AMC Preference ………….. 52
Table-4.15 Channel Of Investing ……………. 53
Table-4.16 Mode Of Investment ………….. 54
Table-4.17 Types Of Portfolio ………….. 55
Table-4.18 Options Of Getting Returns ………….. 56
Table4.19 Time Period ……………… 58
Table-4.20 Portfolio Allocation Of HDFC …………….. 58
MF …………….. 60
Table-4.21 Performance Return Of HDFC MF 61
…………..
Table-4.22 Portfolio Allocation Of ICICI MF
…………..
Table-4.23 Performance Return Of ICICI MF
 LIST OF GRAPHS

Page
Name of the Graph No.

Graph-4.01 Age Group …………… 38

Graph -4.02 Education Qualification …………… 39
Graph -4.03 Occupation …………… 40
Graph -4.04 Income …………… 41
Graph -4.05 Awareness …………… 42
Graph -4.06 Source Of Information 43
……………
Graph -4.07 Investment in MF 44
……………
Graph -4.08 Reason Of Investment 45
……………
Graph-4.09 Reason For Not Investing In MF 46
……………
Graph-4.10 Knowledge 47
……………
Graph-4.11 MF Schemes 48
……………
Graph-4.12 Investment In MF Companies 49
……………
Graph-4.13 Reason For Choosing A Particular 50
MF ………….. 51
Graph-4.14 AMC Preference ……………. 52
Graph-4.15 Channel Of Investing ………….. 53
Graph-4.16 Mode Of Investment ……………. 54
Graph-4.17 Types Of Portfolio …………. 55
Graph-4.18 Options Of Getting Returns …………. 56
Graph-4.19 Time Period ………….. 57
Graph-4.20 Portfolio Allocation Of HDFC ………….. 59
MF ……………. 60
Graph-4.21 Performance Return Of HDFC 61
MF …………….
Graph-4.22 Portfolio Allocation Of ICICI MF …………….
Graph-4.23 Performance Return Of ICICI MF
 CHAPTER-1
INTRODUCTION

1.1 ABOUT SMC GLOABL SECURITIES

It's one of the leading firms in financial services in India. It basically deals in
Mutual Fund, Fixed Deposit Schemes, Capital Gain Bonds, GOI Taxable
Bonds, NABARD Bonds and Life and General Insurance. I am working for
SMC Global Securities Limited which is one of the leading companies of
financial services. So I would like you to have a look at the profile of the
company.
SMC GLOBAL SECURITIES LIMITED
SMC Group, founded in 1990, is India’s best Equity Broking House and the
Largest Distribution Network, providing a wide range of financial services and
investment solutions. A blend of extensive experience, diverse talent and client
focus has made us achieve this landmark.
Over the years, SMC has expanded its operations domestically as well as
internationally. Existing network includes regional offices at Mumbai, Kolkata,
Chennai, Ahmedabad, Jaipur, Hyderabad, Bangalore plus a growing network of
2500+ offices spread across 500+ cities/towns in India.
They offer a diverse range of financial services which includes institutional and
retail brokerage of equity, currency, commodities, derivatives, online trading,
depository services, fixed Deposits, IPOs and mutual funds distribution,
dedicated desk for NRI and institutional clients, insurance broking, clearing
services, margin funding, investment banking, portfolio management, wealth
advisory & research. They have a highly efficient workforce of over 3,350+
employees and over 16500 financial advisors serving the financial needs of
more than 7,20,000 satisfied investors.
They are also amongst the first financial firms in India to expand operations in
the lucrative gulf market, by acquiring license for broking and clearing member
with Dubai Gold and Commodities exchange (DGCX). The SMC Advantage:

Mr. Subhash Chand Aggarwal Mr. Mahesh

Chand Gupta
Mr. Subhash Chand Aggarwal, Chairman and Managing Director of SMC
Global Securities Ltd. and Mr. Mahesh Chand Gupta, Chairman and Managing
Director of SMC Comex (P) Ltd. are the founders and promoters of SMC. Both
are chartered accountants. They are an embodiment of professional excellence.
They are the visionaries who planted the sapling of the giant tree called SMC.
With rock solid reserve and firm commitment, they have shaped their vision to
reality. They have a rich experience of more than 20 years in the capital market.
Their exceptional leadership skills and outstanding commitment has made SMC
as one of the leading investment solutions and services provider. They both
assign top priority to the principles of transparency, honesty and integrity in all
our dealings.
VISION :
“VISION IS NOT SEEING THINGS AS THEY ARE BUT AS THEY WILL
BE” OUR VISION is to be a global major in providing complete investment
solutions, with relentless focus on investor care, through superior efficiency and
complete transparency.
OUR APPROACH:
 Value for investor’s trust: SMC values the trust reposed in by the clients
and is committed to uphold it at all cost.
 Integrity and Honesty: Integrity, honesty and transparency are the
underlying principles in all our dealings.
 Personalised Attention: The most valued asset is our relationship with
the clients, which has been built over years by giving personalized
attention.
 Network which works: SMC has a vast network extending to 375+
cities/towns ensuring easy accessibility, convenience and hassle free
trading experience.
 Research based advisory services: SMC offers proactive and timely
world class research based advice and guidance to its clients to enable
them to take informed decisions.
 Main Focus: Investor Care
Investment at your finger tips

Figure 1.01
PRODUCTS AND SERVICES:
EQUITY AND DERIVATIVES TRADING:
SMC Trading Platform offers online equity & derivative trading facilities for
investors who are looking for the ease and convenience and hassle free trading
experience. We provide ODIN Application, which is a high-end, integrated
trading application for fast, efficient and reliable execution of trades. You can
now trade in the NSE and BSE simultaneously from any destination at your
convenience. You can access a multitude of resources like live quotes, charts,
research, advice, and online assistance helps you to take informed decisions.
You can also trade through our branch network by registering with us as our
client. You can also trade through us on phone by calling our designated
representatives in the branches where you are registered as a client
CLEARING SERVICE:
Being a clearing member in NSE(F&O & Currency), BSE (F&O & Currency),
MCX, MCX-SX, NCDEX and DGCX. SMC is clearing massive volumes of
trades of our trading members in this segment.
COMMODITY TRADING:
SMC is a member of 3 major national level commodity exchanges, i.e. National
Commodity and Derivative Exchange (NCDEX), Multi Commodity Exchange
(MCX) and National Multi Commodity Exchange of India (NMCE) offers you
trading platform of NCDEX, MCX and NMCE. You can get Real-Time
streaming quotes, place orders and watch the confirmation, all on a single
screen. We use technology using ODIN application to provide you with live
Trading Terminals. In this segment, SMC have spread our wings globally by
acquiring Membership of Dubai Gold and Commodities Exchange. We provide
trading platform to trade in DGCX and also clear trades of trading members
being a clearing member.
DISTRIBUTION OF MUTUAL FUNDS & IPOs:
SMC offers distribution and collection services of various schemes of all Major
Fund houses and IPOs through its mammoth network of branches across India.
SMC is registered with AMFI as an approved distributor of Mutual Funds. We
assure you a hassle free and pleasant transaction experience when you invest in
mutual funds and IPOs through us. We are registered with all major Fund
Houses including Fidelity, Franklyn Templeton etc. We have a leading
distributors of IPOs. Shortly we will be providing the facility of online
investment in Mutual Funds and IPOs.
SMC RESEARCH BASED ADVISORY SERVICES:
Our massive R&D facility caters to the need of Investors, who are continuously
in need of opportunities for striking rich rewards on their investment. We have
one of the most advanced, hi-tech in house R&D wing with some of the best
people, process and technology resources providing complete research solutions
on Equity, Commodities, IPOs and Mutual Funds. We offer proactive and
timely world class research based advice and guidance to our clients so that they
can take informed decisions.
ACHIEVEMENT & AWARDS BY SMC:
"AN ACHIEVEMENT IS BONDAGE. IT OBLIGES ONE TO A HIGHER
ACHIEVEMENT"
 ISO 9001:2000 certified DP for both shares and commodities.
 4th largest broking house of India in terms of trading terminals (Source:
Dun and Bradstreet, 2008)
 5th largest sub-broker network in the country (Source: Dun and
Bradstreet, 2007)
 2nd largest distributors of IPO in Retail. (Source: Prime Data Rankings)
 Awarded the Fastest Growing Retail Distribution Network (Source:
Business Sphere, 2008)
 Awarded the Major Volume Driver by BSE for the Third year in a row
i.e. 2006-07, 2005-06 and 2004-05 (Awarded to top 10 Brokers)
 Nominated among the top 3, in the CNBC Optimix Financial Services
Award 2008 under the "National Level Retail Category".
 One of the first financial firms in India to expand operations in the
lucrative gulf market, by acquiring valuable license for trading and
clearing with Dubai gold and commodities exchange (DGCX)
  Amongst a Elite group of brokers having proprietary desk for doing risk-
free arbitrage in commodities.
 India’s best equity broker award 2010 by BSE and Dun & Bradstreet .

SWOT ANALYSIS OF THE COMPANY

Figure 1.02
STRENGTH
 The `do-it-yourself' framework of online share trading offers retail
investors the three benefits of transparency, access and efficiency.
Paperwork diminishes significantly, and no more painful trips to your
broker to check if everything's in order. Online trading has made it
possible to universalize access to retail investors. This was earlier
very difficult, as the cost of servicing often-outweighed transaction
volumes. Online brokerage ranges between 0.05-0.20 per cent of the
value of transactions for non delivery-based trades, and between 0.25-
 0.95 percent for delivery-based trades. Once major investments in online
infrastructure are over and done with - and with the economies of scale
coming into play - it is expected that brokerage rates would head further
downwards.
 Access to online trading and latest financial happenings, apart from
quotes and unbiased investment analyses, all consolidate into a value-
added product mix in tandem with evolving markets that are freer and
fairer. The Net result: An inquisitive, informed and demanding investor.
Today's investor is more involved in managing his or her assets and
analyzing a vast array of investment options. Technology and today's
enabled investor have, in turn, driven competition, resulting in reduced
costs of trading, transparency in dealings, and pricing info that is accurate
and real-time. More and more investors now want to know how their
trades are executed, and whether they have received the best possible
price. Critical components of execution quality include the prices at
which orders were executed as well as the speed of execution. The quality
of execution, in turn, hinges on efficient order routing. We owe this to our
investor fraternity.

WEAKNESS
 Every thing in the world has a flip side to it - Transaction velocity is
crucial. And more often than not, connections are lousy. There's also a
degree of investor skepticism about online payment and settlement
mechanisms in spite of all the encryption and fire walling brought into
play. Time and technology will soon assuage these concerns, which hark
back to the `physical' days.

“The three main technology obstacles which have prevented Internet broking
from taking off are:
 Lack of Internet penetration
  Bandwidth infrastructure
 Poor quality of ISP infrastructure.”

OPPORTUNITIES
 You have some money to dabble with. Trading shares on BSE/NSE has
always been your dream. When will you ever find the time? And besides,
the hassle of finding a broker is not easy. This is the main opportunity.
 There are 2 types of online trading service: discount brokers and full
service online broker. Discount online brokers allow you to trade via
Internet at reduced rates. Some provide quality research, other don’t. Full
service online brokerage is linked to existing brokerages. These brokers
allow their clients to place online orders with the option of talking/
chatting to brokers if advice is needed. Brokerage rates here are higher.
5Paisa.com, ICICIDirect.com,IndiaBulls.com, Sharekhan.com, Geojit
securities.com, HDFCsec.com, Tatatdw.com, Kotakstreet.com are some
of the online broking sites in India.
 And daily trading turnover is estimated in the vicinity of 0.75 per cent of
the combined BSE and NSE daily turnover of about RS 11,000 crore!!!
The point is, there's tremendous scope for growth. Especially when you
consider the US, where trading over the Net accounts for about 55 per
cent of the total volumes. And, I believe, in some Asian markets the
figures as high as 70 percent.

THREATS
 On to some threat perception - Domestic funds, foreign institutional
investors and operators comprise the three main market constituents. And
all three include term investors as well as opportunists in their pecking
order. Some, for instance, hitch their fate with what the FIIs are up to.
All this spells spurting volumes. But nobody gives a damn about the
resultant volatility.
  And some, not all, offer free investment advice over the Net to lure
rookie investors with misleading information. Prices of scripts can also
be influenced to the advantage of vested interests, courtesy the Net.
Unlike in the US, stockbrokers out here willingly (or under the force of
circumstance) assume the role of `advisors', sans the neutral, non-vested
stance.

CHAPTER 2
TOPIC INTRODUCTION
AND LITERATURE REVIEW

2.1 PORTFOLIO MANAGEMENT AND MUTUAL FUND

What is mutual fund?
A mutual fund is a pool of funds that invests in a diversified portfolio of
securities. Investors who buy shares of a mutual fund are its owners or
shareholders. Their investments provide the money for a mutual fund to buy
securities such as stocks and bonds. 
A mutual fund can make money from its securities in two ways: a security can
pay dividends or interest to the fund, or a security can rise in value. A fund can
also lose money and drop in value.
Why Invest in Mutual Funds?
Diversification:
Investing in a number of different securities helps reduce the risk of investing.
When a mutual fund is bought, one is buying an interest in a portfolio of dozens
of different securities, giving an instant diversification, at least within the type
of securities held in the fund.
Flexibility:
Many mutual fund companies administer several different mutual funds (e.g.,
money market, fixed-income, growth, balanced and international funds) and
allow you to switch between funds within their ‘fund family’ at little or no
charge. This can enable you to change the balance of your portfolio as your
personal needs or market conditions change.
Performance Monitoring:
The value of most mutual funds is reported daily in the financial press and on
many internet sites, allowing you to continually monitor the performance of
your investment.
Professional Management:
Mutual funds are managed by professionals who are experienced in investing
money and who have the skills and resources to research many different
investment opportunities.

What are the different types of mutual funds?

Money Market Funds:
Invest in short-term (less than one year to maturity) corporate and government
debt securities such as treasury bills, bankers acceptances and corporate notes.
Some money market funds specialize in money market instruments or invest
only in treasury bills. These are generally very low-risk funds offering low
returns.
Growth or Equity Funds:
Invest primarily in common shares (equities), but may hold other assets as well.
The goal is typically long-term growth because the value of the assets held
increases over time. Some growth funds focus on large ‘blue-chip’ companies,
while others invest in smaller or riskier companies. Performance will be
affected by the success or failure of specific investments and by the
performance of the stock markets generally.
Balanced Funds:
Invest in a ‘balanced’ portfolio of equities, debt securities and money market
instruments with the objective of providing reasonable returns with low to
moderate risk.
Fixed Income Funds:
Invest in debt securities like bonds, debentures and mortgages that pay regular
interest, or in corporate preferred shares that pay regular dividends. The goal,
typically, is to provide investors with a regular income stream with low risk.
Fund values will go up and down to some extent, particularly in response to
changes in prevailing interest rates.
Specialty Funds:
May invest primarily in a specific geographical area (e.g., Asia) or a specific
industry (e.g., high technology companies). Index Funds: Invest in a portfolio of
securities selected to represent a specified target.

CATEGORIES OF MUTUAL FUND:

 Figure 1.03

Mutual funds can be classified as :

Based on structure:-
 Open ended funds:- Investors can buy or sell the units from the fund, at
any point of time.
  Close ended funds:- These funds raise money from investors only once.
Therefore,
after the offer period, fresh investment cannot be made into the fund.
Recently, most of the New Fund Offer of close ended funds provided
liquidity window on a periodic basis such as monthly or weekly.
Redemption of units can be made during specified intervals. Therefore,
such funds have relatively low liquidity.
 Interval Schemes:- These schemes combine the features of open-ended and
closed-ended schemes. They may be traded on the stock exchange or
may be open for sale or redemption during pre-determined
intervals at NAV based prices

Based on investment objective:-

Equity:- These funds invest in equities and equity related instruments. With
fluctuating share prices, such funds show volatile performance, even losses.
However, short term fluctuation in the market, generally smoothens out in the
long term, thereby offering higher returns at relatively lower volatility. At the
same time, such funds can yield great capital appreciation as, historically,
equities have outperformed all asset classes in the long run. Hence, investment
in equity funds should be considered for a period of at 3-5 years. It can be
classified as:-
i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty
is tracked. Their portfolio mirrors the benchmark index both in terms of
composition and individual stock weightages.
ii) Equity diversified funds-100% of the capital is invested in equities
spreadingacross different sectors and stocks.
iii) Dividend yield funds-It is similar to the equity diversified funds except that
theyinvest in companies offering high dividend yields.
iv) Thematic funds-Invest 100% of the assets in sectors which are related
through some theme. e.g. -An infrastructure fund invests in power, construction,
cements sectors etc.
v) Sector funds-Invest 100% of the capital in a specific sector. e.g. - A banking
sector fund will invest in banking stocks.
vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.
Balanced fund: Their investment portfolio includes both debt and equity. As a
result, on the risk-return ladder, they fall between equity and debt funds.
Balanced funds are the ideal mutual funds vehicle for investors who prefer
spreading their risk across various instruments. Following are balanced funds
classes:
i) Debt-oriented funds -Investment below 65% in equities.
ii) Equity-oriented funds-Invest at least 65% in equities, remaining in debt
Debt fund: They invest only in debt instruments, and are a good option for
investor saverse to idea of taking risk associated with equities. Therefore, they
invest exclusively in fixed-income instruments like bonds, debentures,
Government of India securities ; and money market instruments such as
certificates of deposit (CD), commercial paper (CP) and call money. Put your
money into any of these debt funds depending on your investment horizon and
needs.
i) Liquid funds-These funds invest 100% in money market instruments, a large
portion being invested in call money market.
ii) Gilt funds ST-They invest 100% of their portfolio in government securities
of and T-bills.
iii) Floating rate funds -Invest in short-term debt papers. Floaters invest in
debt instruments which have variable coupon rate.
iv) Arbitrage fund-They generate income through arbitrage opportunities due
to mis - pricing between cash market and derivatives market. Funds are
allocated to equities ,derivatives and money markets. Higher proportion
(around 75%) is put in money markets, in the absence of arbitrage opportunities.
v) Gilt funds LT-They invest 100% of their portfolio in long-term government
securities.
vi) Income funds LT-Typically, such funds invest a major portion of the
portfolio in long-term debt papers.
vii) MIPs-Monthly Income Plans have an exposure of 70%-90% to debt and an
exposure of 10%-30% to equities.
viii) FMPs-fixed monthly plans invest in debt papers whose maturity is in line
with that of the fund.
INVESTMENT STRATEGIES
1. Systematic Investment Plan: under this a fixed sum is invested each month
on a fixed date of a month. Payment is made through post dated cheques or
direct debit facilities. The investor gets fewer units when the NAV is high and
more units when the NAV is low. This is called as the benefit of Rupee Cost
Averaging (RCA)
2. Systematic Transfer Plan: under this an investor invest in debt oriented
fund and give instructions to transfer a fixed sum, at a fixed interval, to an
equity scheme of the same mutual fund.
3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual
fund then he can withdraw a fixed amount each month.
HISTORICAL PERSPECTIVE OF MUTUAL FUNDS IN INDIA:
The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India, at the initiative of the Government of India and Reserve Bank
the. The history of mutual funds in India can be broadly divided into four
distinct phases
First Phase – 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It
was set up by the Reserve Bank of India and functioned under the Regulatory
and administrative control of the Reserve Bank of India. In 1978 UTI was de-
linked from the RBI and the Industrial Development Bank of India (IDBI) took
over the regulatory and administrative control in place of RBI. The first scheme
launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700
crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI
Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec
87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund
(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutual fund in June 1989 while GIC had set up its mutual fund in
December 1990.
Third Phase – 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund
families. Also, 1993 was the year in which the first Mutual Fund Regulations
came into being, under which all mutual funds, except UTI were to be
registered and governed. The erstwhile Kothari Pioneer (now merged with
Franklin Templeton) was the first private sector mutual fund registered in July
1993.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities. One is the Specified Undertaking of
the Unit Trust of India with assets under management of Rs.29,835 crores as at
the end of January 2003, representing broadly, the assets of US 64 scheme,
assured return and certain other schemes. The Specified Undertaking of Unit
Trust of India, functioning under an administrator and under the rules framed by
Government of India and does not com under the purview of the Mutual Fund
Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB,
BOB and LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the Erstwhile UTI which had in March
2000 more than Rs.76,000 crores of assets under management and with the
setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund
Regulations, and with recent mergers taking place among different private
sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September, 2004, there were 29
funds, which manage assets of Rs.153108 crores under 421 schemes.

How does a mutual fund work?

Figure 1.04
Which all parties are involved in Mutual Funds?
Fund Manager: The professional money manager appointed by the Mutual
Fund Manager to direct the fund’s investments. The Mutual Fund Manager also
often acts as the Portfolio Adviser.
Principal Distributor: Coordinates the sale of the fund to investors, either
directly or through a network of registered dealers.
Custodian: The bank or trust company appointed by the Mutual Fund Manager
to hold all of the securities owned by the fund.
Transfer Agent and Registrar: The group responsible for maintaining a list of
all investors in the fund.
Auditor: The independent accountants retained by the Mutual Fund Manager to
audit each year, and report on the financial statements of the fund. Trustee: The
entity that has title to the securities owned by the fund (when the fund is
organized as a trust, instead of as a corporation) on behalf of the unit holders.
Where can an investor monitor his/her Mutual Fund?
Once a mutual fund had been bought, the investor has many options to monitor
its performance. He/she can easily refer to the associated fund manager to find
out an accurate picture. Otherwise, an account statement is readily sent after
every interval to the shareholders to keep them properly updated.
ADVANTAGES OF MUTUAL FUND
 Portfolio Diversification
 Professional management
 Reduction / Diversification of Risk 
 Liquidity
 Flexibility & Convenience
 Reduction in Transaction cost
 Safety of regulated environment
 Transparency
DISADVANTAGE OF MUTUAL FUND
 No control over Cost in the Hands of an Investor
 No tailor-made Portfolios
 Managing a Portfolio Funds
 Difficulty in selecting a Suitable Fund Scheme

RISK V/S. RETURN:

 Figure 1.05

What is a portfolio?
A portfolio is a collection of financial assets consisting of investment tools such
as stocks, bonds, gold, foreign exchange, asset-backed securities, real estate
certificates and bank deposits which are held by a person or group. Although a
 portfolio consists of various assets, it is considered a single entity with
measurable qualities because of the relationship between the assets involved. In
terms of mutual fund industry, a portfolio is built by buying additional bonds,
mutual funds, stocks, or other investments. If a person owns more than one
security, he has an investment portfolio. The main target of the portfolio owner
is to increase value of portfolio by selecting investments that yield good returns.
As per the modern portfolio theory, a diversified portfolio that includes different
types or classes of securities; reduces the investment risk. It is because any one
of the security may yield strong returns in any economic climate.

Facts about Portfolio

 There are many investment vehicles in a portfolio.

 Building a portfolio involves making wide range of decisions regarding

buying or selling of stocks, bonds, or other financial instruments. Also, one
needs to make decision regarding the quantity and timing of the buy and sell.

 Portfolio Management is goal-driven and target oriented.

 There are inherent risks involved in the managing a portfolio.

What is portfolio management?

Portfolio management service (PMS) is a type of professional service offered by
portfolio managers to their client to help them in managing their money in less
time. Portfolio managers manage the stocks, bonds, and mutual funds of clients
considering their personal investment goals and risk preferences. In addition to
money, the portfolio managers manage the portfolio of stocks, bonds, and
mutual funds. It also refers to the science of analyzing the strengths,
weaknesses, opportunities and threats for performing wide range of activities
related to the one’s portfolio for maximizing the return at a given risk. It helps
 in making selection of Debt Vs Equity, Growth Vs Safety, and various other
tradeoffs.
Major tasks involved with Portfolio Management are as follows.

1) Taking decisions about investment mix and policy

2) Matching investments to objectives

3) Asset allocation for individuals and institution

4) Balancing risk against performance

There are basically two types of portfolio management in case of mutual and
exchange-traded funds including passive and active.

 Passive management involves tracking of the market index or index

investing.

 Active management involves active management of a fund’s portfolio

by manager or team of managers who take research based investment decisions
and decisions on individual holdings.

What is the process of portfolio management?

 Figure 1.06

What are the different types of portfolio?

Short-term:
Usually one year or less, often used to refer to bonds, cash, money markets,
certificates of deposit, treasury bills, etc. (need investments ~ 1 year; 100%
cash, money market, treasuries, CDs, etc)
Conservative:
Cautious; having a risk-averse investment strategy which has preservation of
capital as a high priority. A mutual fund which emphasizes current income in
the form of dividends or coupon payments from bonds and/or preferred stocks,
rather than emphasizing growth. Income funds are considered to be
conservative investments, since they avoid volatile growth stocks. Income funds
are popular with retirees and other investors who are looking for a steady cash
flow without assuming too much risk. (need investments < 5 years; 50% bonds;
30% short-term; 20% domestic stock).
Balanced:
A mutual fund that buys a combination of common stock, preferred stock,
bonds, and short-term bonds, to provide both income and capital appreciation
while avoiding excessive risk. The purpose of balanced funds (also sometimes
called hybrid funds) is to provide investors with a single mutual fund that
combines both growth and income objectives, by investing in both stocks (for
growth) and bonds (for income). Such diversified holdings ensure that these
funds will manage downturns in the stock market without too much of a loss;
the flip side, of course, is that balanced funds will usually increase less than an
all-stock fund during a bull market. (need investments ~5 years; 45% bonds;
10% short-term; 45% domestic stock; 5% foreign stock).
Growth:
Strategy aimed at long-term capital appreciation with low risk; it will likely
involve a high percentage of blue chip stocks with low turnover, and infrequent
trading. A mutual fund whose aim is to achieve capital appreciation by
investing in growth stocks. They focus on companies that are experiencing
significant earnings or revenue growth, rather than companies that pay out
dividends. The hope is that these rapidly growing companies will continue to
increase in value, thereby allowing the fund to reap the benefits of large capital
gains. In general, growth funds are more volatile than other types of funds,
rising more than other funds in bull markets and falling more in bear markets.
(need investments ~ 5 -10 years; 25% bonds; 5% short-term; 60% domestic
stock; 10% foreign stock).
Aggressive growth:
A mutual fund which aims for the highest capital gains and is not risk-averse in
its selection of investments. Aggressive growth funds are most suitable for
investors willing to accept a high risk-return trade-off, since many of the
companies which demonstrate high growth potential can also show a lot of
share price volatility. Aggressive growth funds tend to have a very large
positive correlation with the stock market, and so they often produce very good
results during economic upswings and very bad results during economic
downturns. An aggressive growth fund might, for example, buy initial public
offerings (IPOs) of stock from small companies and then resell that stock very
quickly in order to generate big profits. Some aggressive growth funds may
even invest in derivatives, such as options, in order to increase their gains. (need
investments > 10 years; 10% bonds; 70% domestic stock; 15% foreign stock).
Most aggressive:
An investment strategy characterized by a willingness to accept above-average
risk in pursuit of above-average returns. Usually favors stocks over bonds,
especially stocks of rapidly growing companies, and sometimes employs buying
on margin, options trading, and arbitrage. (need investments > 15 years; 80%
domestic stock; 20% foreign stock).
Objectives of Portfolio Management:-
The objective of portfolio management is to invest in securities is securities in
such a way that one maximizes one’s returns and minimizes risks in order to
achieve one’s investment objective.
A good portfolio should have multiple objectives and achieve a sound balance
among them. Any one objective should not be given undue importance at the
cost of others. Presented below are some important objectives of portfolio
management.
1. Stable Current Return: -
Once investment safety is guaranteed, the portfolio should yield a steady current
income. The current returns should at least match the opportunity cost of the
funds of the investor. What we are referring to here current income by way of
interest of dividends, not capital gains.
2. Marketability: -
A good portfolio consists of investment, which can be marketed without
difficulty. If there are too many unlisted or inactive shares in your portfolio, you
will face problems in encasing them, and switching from one investment to
another. It is desirable to invest in companies listed on major stock exchanges,
which are actively traded.
3. Tax Planning: -
Since taxation is an important variable in total planning, a good portfolio should
enable its owner to enjoy a favorable tax shelter. The portfolio should be
developed considering not only income tax, but capital gains tax, and gift tax, as
well. What a good portfolio aims at is tax planning, not tax evasion or tax
avoidance.
4. Appreciation in the value of capital:
A good portfolio should appreciate in value in order to protect the investor from
any erosion in purchasing power due to inflation. In other words, a balanced
portfolio must consist of certain investments, which tend to appreciate in real
value after adjusting for inflation.
Scope of Portfolio Management:-
Portfolio management is a continuous process. It is a dynamic activity. The
following are the basic operations of a portfolio management.
a) Monitoring the performance of portfolio by incorporating the latest market
conditions.
b) Identification of the investor’s objective, constraints and preferences.
c) Making an evaluation of portfolio income (comparison with targets and
achievement).
d) Making revision in the portfolio.
e) Implementation of the strategies in tune with investment objectives.
Measurement of risk
Risk refers to the possibility that the actual outcome of an investment will differ
from the expected outcome. In other words we can say that risk refers to
variability or dispersion. If any investment is said to invariable it means that it is
totally risk free. Whenever we calculate the mean returns of an investment we
also need to calculate the variability in the returns.
Standard Deviation
Standard Deviation is the measure of the deviation in the returns of the
portfolio. In simple words it tells us how much the return on the fund is
deviating from the expected normal return.
Beta
A measure of risk commonly advocated is beta. The beta of a portfolio is
computed the way beta of an individual security is computed. To calculate the
beta of a portfolio, regress the rate of return of the portfolio on the rate of return
of a market index. The slope of this regression line is the portfolio beta. It
reflects the systematic risk of the portfolio. It is a measure of the volatility of
the portfolio to that of the index. In simple words it shows the movement of the
portfolio in comparison. The Higher the Beta, higher the volatility of the
scheme to the index. If its greater than1 , then the portfolio is highly volatile to
the movements in the index. If the beta is lesser than 1 , then scheme is less
volatile to the index and beta which is close to 1 implies that the scheme is
closely following the index.
Performance Measures Of Mutual Funds
Mutual Fund industry today, with about 34 players and more than five hundred
schemes, is one of the most preferred investment avenues in India. However,
with a plethora of schemes to choose from, the retail investor faces problems in
selecting funds. Factors such as investment strategy and management style are
qualitative, but the funds record is an important indicator too. Though past
performance alone cannot be indicative of future performance, it is, frankly, the
only quantitative way to judge how good a fund is at present. Therefore, there is
a need to correctly assess the past performance of different mutual funds.
Worldwide, good mutual fund companies over are known by their AMCs and
this fame is directly linked to their superior stock selection skills. For mutual
funds to grow, AMCs must be held accountable for their selection of stocks. In
other words, there must be some performance indicator that will reveal the
quality of stock selection of various AMCs.
Return alone should not be considered as the basis of measurement of the
performance of a mutual fund scheme, it should also include the risk taken by
the fund manager because different funds will have different levels of risk
attached to them. Risk associated with a fund, in a general, can be defined as
variability or fluctuations in the returns generated by it. The higher the
fluctuations in the returns of a fund during a given period, higher will be the risk
associated with it. These fluctuations in the returns generated by a fund are
resultant of two guiding forces. First, general market fluctuations, which affect
all the securities present in the market, called market risk or systematic risk and
second, fluctuations due to specific securities present in the portfolio of the
fund, called unsystematic risk. The Total Risk of a given fund is sum of these
two and is measured in terms of standard deviation of returns of the fund.
Systematic risk, on the other hand, is measured in terms of Beta, which
represents fluctuations in the NAV of the fund vis-à-vis market. The more
responsive the NAV of a mutual fund is to the changes in the market; higher
will be its beta. Beta is calculated by relating the returns on a mutual fund with
the returns in the market. While unsystematic risk can be diversified through
investments in a number of instruments, systematic risk can not. By using the
risk return relationship, we try to assess the competitive strength of the mutual
funds vis-à-vis one another in a better way.
In order to determine the risk-adjusted returns of investment portfolios, several
eminent authors have worked since 1960s to develop composite performance
indices to evaluate a
portfolio by comparing alternative portfolios within a particular risk class. The
most important and widely used measures of performance are:
 The Treynor Measure
 The Sharpe Measure
 Jenson Model

Treynor Measure
Developed by Jack Treynor, this performance measure evaluates funds on the
basis of Treynor's Index. This Index is a ratio of return generated by the fund
over and above risk free rate of return (generally taken to be the return on
securities backed by the government, as there is no credit risk associated),
during a given period and systematic risk associated with it (beta).
Symbolically, it can be represented as:
Treynor's Index (Ti) = (Ri - Rf)/Bi.
Where, Ri represents return on fund, Rf is risk free rate of return and Bi is beta
of the fund. All risk-averse investors would like to maximize this value. While a
high and positive Treynor's Index shows a superior risk-adjusted performance of
a fund, a low and negative Treynor's Index is an indication of unfavourable
performance. Therefore Treynor ratio measures the returns for market risk
taken. It is a better measure of performance for equity funds as it takes into
account market volatility.
Sharpe Measure
In this model, performance of a fund is evaluated on the basis of Sharpe Ratio,
which is a ratio of returns generated by the fund over and above risk free rate of
return and the total risk associated with it. According to Sharpe, it is the total
risk of the fund that the investors are concerned about. So, the model evaluates
funds on the basis of reward per unit of total risk. Symbolically, it can be
written as:
Sharpe Index (Si) = (Ri - Rf)/Si
Where, Si is standard deviation of the fund. While a high and positive Sharpe
Ratio shows a superior risk-adjusted performance of a fund, a low and negative
Sharpe Ratio is an indication of unfavorable performance. Therefore Sharpe
Ratio tells us whether the returns of the scheme are due to smart investment
decisions or a result of excess risk taken. This measure is important, since even
if the scheme earns a higher return than its peers, it is a better investment only if
the higher returns do not come with too much additional risk. in Simple words,
the greater the Portfolios Sharpe ratio, the better is the risk adjusted
performance.
Jenson Model
Jenson's model proposes another risk adjusted performance measure. This
measure was developed by Michael Jenson and is sometimes referred to as the
Differential Return Method. This measure involves evaluation of the returns
that the fund has generated vs. the returns actually expected out of the fund
given the level of its systematic risk. The surplus between the two returns is
called Alpha, which measures the performance of a fund compared with the
actual returns over the period. Required return of a fund at a given level of risk
(Bi) can be calculated as:
Ri = Rf + Bi (Rm - Rf)
Where, Rm is average market return during the given period. After calculating
it, alpha can be obtained by subtracting required return from the actual return of
the fund. Higher alpha represents superior performance of the fund and vice
versa. Limitation of this model is that it considers only systematic risk not the
entire risk associated with the fund and an ordinary investor can not mitigate
unsystematic risk, as his knowledge of market is primitive.
For example, if there are two mutual funds that both have a 12% return, a
rational investor will want the fund that is less risky. If the value is positive,
then the portfolio is earning excess returns. In other words, a positive value for
Jensen's alpha means a fund manager has 'beat the market' w with his or her
stock picking skills. The Higher the value the better the performance.

2.2 LITERATURE REVIEW

Literature on mutual fund performance evaluation is enormous. A few research
studies that have influenced the preparation of this paper substantially are
discussed in this section. Sharpe, William F. (1966) suggested a measure for the
evaluation of portfolio performance. Drawing on results obtained in the field of
portfolio analysis, economist Jack L.Treynor has suggested a new predictor of
mutual fund performance, one that differs from virtually all those used
previously by incorporating the volatility of a fund's return in a simple yet
meaningful manner .Michael C. Jensen (1967) derived a risk-adjusted measure
of portfolio performance (Jensen’s alpha) that estimates how much a manager’s
forecasting ability contributes to fund’s returns. As indicated by Statman
(2000), the e SDAR of a fund portfolio is the excess return of the portfolio over
the return of the benchmark index, where the portfolio is leveraged to have the
benchmark index’s standard deviation. S .Narayan Rao , et. al., evaluated
performance of Indian mutual funds in a bear market through relative
performance index, risk-return analysis, Treynor’s ratio, Sharpe’s ratio,
Sharpe’s measure , Jensen’s measure, and Fama’s measure. The study used 269
open-ended schemes (out of total schemes of 433) for computing relative
performance index. Then after excluding funds whose returns are less than risk-
free returns, 58 schemes are finally used for further analysis. The results of
performance measures suggest that most of mutual fund schemes in the sample
of 58were able to satisfy investor’s expectations by giving excess returns over
expected returns based on both premium for systematic risk and total risk. Bijan
Roy, et. al., conducted an empirical study on conditional performance of Indian
mutual funds. This paper uses a technique called conditional performance
evaluation on a sample of eighty-nine Indian mutual fund schemes .This paper
measures the performance of various mutual funds with both unconditional and
conditional form of CAPM, Treynor- Mazuy model and Henrik sson-Merton
model. The effect of incorporating lagged information variables into the
evaluation of mutual fund managers’ performance is examined in the Indian
context. The results suggest that the use of conditioning lagged information
variables improves the performance of mutual fund schemes, causing alphas to
shift towards right and reducing the number of negative timing coefficients.
Mishra, et al.,(2002) measured mutual fund performance using lower partial
moment. In this paper, measures of evaluating portfolio performance based on
lower partial moment are developed. Risk from the lower partial moment is
measured by taking into account only those states in which return is below a
pre-specified “target rate” like risk-free rate. K shama Fernandes (2003)
evaluated index fund implementation in India. In this paper, tracking error of
index funds in India is measured. The consistency and level of tracking errors
obtained by some well-run index fund suggests that it is possible to attain low
levels of tracking error under Indian conditions. At the same time, there do
seem to be periods where certain index funds appear to depart from the
discipline of indexation. K. Pendaraki et al. studied construction of mutual fund
portfolios, developed a multi-criteria methodology and applied it to the Greek
market of equity mutual funds. The methodology is based on the combination of
discrete and continuous multi-criteria decision aid methods for mutual fund
selection and composition. UTADIS multi-criteria decision aid method is
employed in order to develop mutual fund’s performance models. Goal
programming model is employed to determine proportion of selected mutual
funds in the final portfolios.
Zakri Y.Bello (2005) matched a sample of socially responsible stock mutual
funds matched to randomly selected conventional funds of similar net assets to
investigate differences in characteristics of assets held, degree of portfolio
diversification and variable effects of diversification on investment
performance. The study found that socially responsible funds do not differ
significantly from conventional funds in terms of any of these attributes.
Moreover, the effect of diversification on investment performance is not
different between the two groups. Both groups underperformed the Domini 400
Social Index and S & P 500 during the study period.
 CHAPTER-3
RESEARCH METHODOLOGY

3.1 PURPOSE OF STUDY

The study was initiated in order to help SMC global security Ltd. to capitalize
on its vast network of investors and sponsors in a more competent manner so
that the enormous potential offered by this channel is not underutilized.
Presently SMC global security Ltd. is in the process of tracking all its investors
as they have not been contacted for quite a long time because of lack of
manpower in this department and to know from them as to why the investors are
not finding the fund house as aggressive as other fund houses. Hence, the
purpose of the study is briefed as below:
 Studying the effectiveness of the mutual fund channel group of
distribution in detail with respect to sales, contribution, reach and
visibility.
 To research from them their perception about SMC global security Ltd.
and in turn devise plans to improve fund performance.
 To analyze and to identify the various requirements of the investors and
the support received by them from SMC global security Ltd. side.
  Research the impact on sales of SMC global security Ltd. product
through this channel.
 Recommend immediate actions to be taken to resolve issues of each unit
holders visited.
 Updating the data related to contact information of investors and sponsor
in various areas of Delhi and NCR.
3.2 RESEARCH OBJECTIVE OF THE STUDY
 To find out the investment avenues which the investors of different age
group and different income group explore in order to earn profits and the
factors which these investors keep in mind while going for any particular
investment avenue.

 To suggest better investment opportunities according to investors

occupation and age.

 To reduce risk of the investment

 To identify better investment plan to the investor

 To find out the preference of the investors for asset management

company and portfolio.

 To understand why one has invested or not invested in mutual fund.

 To find out the most preferred channel.

3.3 RESEARCH METHODLOGY

This report is based on primary as well as secondary data, however primary data
was given more importance since it is overhearing factor in attitude studies. One
of the most important users of research methodology is that it helps in
identifying the problem, collecting, analyzing, the required information data and
providing an alternate solution to the problem. It also help in collecting the vital
information that is required by the top management to assist them for the better
decision making both day to day decision and critical ones. The methodology
which has been followed in this project is the preparation of a questionnaire,
collection of the primary and secondary data, and finally the analysis and
interpretation of the data.

3.3.1 RESEARCH DESIGN

A descriptive research design has been followed in this project. The survey
method has been adopted. Questionnaires were distributed to respondents of
different age groups, different income groups, and different occupations. Their
responses were tabulated and graphical representation and analysis was done.
Finally meaningful conclusions were drawn.
3.3.2 DATA COLLECTION TECHNIQUE
PRIMARY DATA COLLECTION
For getting an accurate and reliable data specific to the customer of SMC
GLOBAL SECURITIES LTD, methods were used to gather the required
information about the Insurance Industry. Primary data was collected using the
following methods.
 Questionnaire- Structured Questionnaire is prepared which
contained both open-ended and closed-ended questions.

 Meeting- Personal meeting with general public and investors

SECONDARY DATA COLLECTION

 Companies Journals- Various journals which are related to
the mutual funds.
  Books- I have also gone through some books of mutual
funds and other books related with topic which are written
by famous writers.

 Internet- I have used internet to collect data about the topic.

3.3.3 SAMPLE DESIGN

3.3.3.1 POPULATION
The populations involved in study are the customers of SMC GLOBAL
SECRUTIES LTD and its competitors in the Delhi regions for comparative
analysis.
3.3.3.2 SAMPLE SIZE
The sample size of the project is limit to 200 people only. Out of which only
120 people had invested in mutual fund. Other 80 people did not invest in
mutual fund. In this project non-probability sampling has been used.
3.3.3.3 SAMPLING METHOD
Non Probability sampling is that sampling procedure which does not afford any
basis for estimating the probability that each item in the population has of being
included in the sample. It is also known as deliberate sampling, purposive
sampling and judgment sampling. In this type of sampling items for the sample
are selected deliberately.
3.3.4 METHOD OF DATA COLLECTION
3.3.4.1 INSTRUMENT FOR DATA COLLECTION
Instrument used in the conduct of this study for data collection is
QUESTIONNAIRE. All the questions are set in order to get a picture about the
thinking of the customers of mutual fund industry about various schemes and
companies available in the market.

3.3.4.2 DRAFTING OF QUESTIONNAIRE

In this Questionnaire, 15 questions was asked, and each of them was objective
type with suitable number of choices. The respondents were asked to mark one
option which they feel is the most appropriate.
This questionnaire included total of 15 questions. All the questions were either
regarding the Mutual Fund companies or the schemes of Mutual Fund and the
customer’s feedback about them. Questionnaire is the only instrument used in
this study and hence was required to be an effective one.
Thus in the Questionnaire, all questions were set in a way that it covers many of
the points that may help in concluding the best output which can represent the
perceptions of customers.
3.3.5 LIMITATIONS
The limitations faced in accomplishment of the study were as follows:
 Sample Size- The sample size chosen for the purpose of the survey is not a
true representative of the whole population since it has been taken from the
reachable population only.
 Response Error-The opinion expressed by the respondent may be biased on
account of their personal judgment, opinion, believes, values and attitudes.
 Lack of Access to data- There is lack of data sharing of the companies
matters. As per the company policy, it is not allowed to share their data with
non-authorized people.
 Time- As there are lot of investment products are available in the market of
different companies. So it is not possible to study about all the products of
every company in such a short time period of 2 months.
 CHAPTER-4
ANALYSIS AND INTERPRETATION

4.1 ANALYSIS AND INTERPRETATION

i) AGE:-
Table 4.01 Age Group

AGE
<=30
GROUPS 31-35 36-40 41-45 46-50 >50
NO OF
INVESTORS 12 18 30 24 20 16
 Graph 4.01 Age Group
INTERPRETATION:-
According to the survey out of 120 Mutual Fund investors most of them are in
the age group of 36 - 40 yrs. i.e. 25%, the second most investors are in the age
group of 41 - 45yrs i.e. 20% and the least investors are in the age group of
below 30 yrs.
i) QUALIFICATION:-
Table 4.02 Education Qualification

EDUCATIONAL GRADUATE/POST
QUALIFICATION GRADUATE GRADUATE OTHERS
NO. OF INVESTORS 88 25 7
 Graph 4.02 Education Qualification
INTERPRETATION:-
According to the survey Out of 120 Mutual Fund investors 71% of the
investors are Graduate/Post Graduate, 23% are Under Graduate and 6% are
others (under HSC).

i) OCCUPATION
Table 4.03 Occupation

NO OF
OCCUPATION INVESTORS
GOVT.
SERVICE 30
PVT. SERVICE 40
BUSINESSMEN 35
RETIRED 10
 OTHERS 5

Graph 4.03 Occupation

INTERPRETATION:-
In this survey, occupation group out of 120 investors 38% are private
employees, 25% are businessmen, 29% are government employees, 3% are
retired people and 5% are in others.

i) MONTHLY INCOME:-
Table 4.04 Income

INCOME NO OF
GROUP INVESTORS
<=10,000 5
10,001 -
15,000 12
15,001 -
20,000 28
20,001 -
30,000 43
 >30,000 32

Graph 4.04 Income

INTERPRETATION:-
In this survey, income group of the investors, out of 120 investors, 36%
investors that is the maximum investors are in the monthly income group Rs.
20001-30000, second one i.e. 27% investors are in the monthly income group of
more than Rs. 30000 and the minimum investors i.e. 4% are in the monthly
income group of below Rs. 10000.

1) HAVE YOU HEARD ABOUT MUTUAL FUNDS?

Table 4.05 Awareness

NO OF
RESPONSE RESPONDENTS
YES 135
NO 65
 Graph 4.05 Awareness
INTERPRETATION:-
According to this survey, it is inferred that 67% people are aware of Mutual
Fund and its operations and 33% people are not aware of Mutual Fund and its
operation.

1) SOURCE OF INFORMATION FOR CUSTOMERS ABOUT MUTUAL

FUND?
Table 4.06 Source of information

SOURCE OF PEER
INFORMATION ADVERTISEMENT GROUPS BANKS OTHERS
NO OF
RESPONDENTS 25 28 55 27
 Graph 4.06 Source of information
INTERPRETATION:-
According to the survey, it can be inferred that the banks are the most important
source of information about Mutual Fund. Out of 135 respondents, 46% know
about Mutual Fund through banks, 22% through peer group, 19% through
advertisement and 13% through others.

1) INVESTORS INVESTING IN MUTUAL FUND

Table 4.07 Investment in MF

NO OF
RESPONSE RESPONDENTS
YES 120
Graph 4.07 NO 80 Investment in
MF TOTAL 200

INTERPRETATION:-
Out of 200 people, 60% have invested in Mutual Fund and 40% do not have
invested in Mutual fund.

1) REASON OF INVESTING IN MUTUAL FUND

Table 4.08 Reason Of Investment

NO OF
REASON RESPONDENTS
TAX BENEFIT 38
DIVERSIFICATION 29
REGULAR INCOME 38
BETTER RETURN
&SAFETY 15

GRAPH 4.08 Reason Of Investment

INTERPRETATION:-
According to this survey out of 120 people, maximum people invest in Mutual
fund because of tax benefit and regular income, and remaining people invest in
Mutual fund because of diversification and better return and safety.
 1) REASONS FOR NOT INVESTING IN MUTUAL FUND
Table 4.09 Reason For Not Investing In MF

NO OF
REASON RESPONDENTS
LACK OF KNOWLEDGE 65
DIFFICULTY IN SELECTION OF
SCHEME 5
NOT ANY SPECIFIC REASON 10

Graph 4.09 Reason For Not Investing In MF

INTERPRETATION:-
Out of 80 people, who have not invested in Mutual Fund, 81% have lack of
knowledge about Mutual fund, 13% have not any specific reason and 6% have
difficulty in selection of scheme.

1) WHERE DO YOU FIND YOUSELF AS A MUTUAL FUND

INVESTOR?
 Table 4.10 Knowledge

NO OF
REASON RESPONDENTS
TOTALLY
IGNORANT 37
PARTIAL
KNOWLEGDE 45
FULLY AWARE 38

GRAPH 4.10 Knowledge

INTERPRETATION:-
Out of 120 people, 38% have partial knowledge about Mutual Fund, 32% are
fully aware of Mutual Fund and 30% are totally ignorant about Mutual Fund.

1) WHICH MUTUAL FUND SCHEME HAVE YOU INVESTED?

Table 4.11 MF Schemes

 NO OF
SCHEME RESPONDENTS
OPEN ENDED 19
CLOSE ENDED 20
LIQUID FUND 17
GROWTH FUND 30
REGULAR INCOME
FUND 27
SECTOR FUND 7

Graph 4.11 MF Schemes

INTERPRETATION:-

Out of 120 people, 25% have invested in growth fund, 22% have invested in
regular income fund, 17% have invested in close ended fund, 16% have
invested in open ended fund, 14% have invested in liquid fund and 6% have
invested in sector fund.

1) IF YES, THEN IN WHICH MUTUAL FUND YOU HAVE INVESTED?

Table 4.12 Investment in MF Companies

MUTUAL NO OF
 FUNDS RESPONDENTS
HDFC 13
AXIS 19
BIRLA SUN
LIFE 15
ICICI
PRUDENTIAL 35
KOTAK 18
RELIANCE 17
OTHERS 3

Graph 4.12 Investment in MF Companies

INTERPRETATION:-
Out of 120 people, 23% have invested in icici prudential, 16% have invested in
axis, 15% have invested in kotak, 14% have invested in reliance, 13% have
invested in birla sun life, 10% have invested in HDFC and 9% have invested in
others.

1) WHY YOU HAVE CHOSEN A PARTICULAR MUTUAL FUND?

Table 4.13 Reason for choosing a particular MF
 NO OF
REASON RESPONDENTS
INFLUCED BY FRIENDS 37
ON ADVICE OF FINANCIAL
ADVISOR 45

OTHERS 38

Graph 4.13 Reason for choosing a particular MF

INTERPRETATION:-
Out of 120 people, 37% have invested in Mutual Fund on the advice of
financial advisor, 31% have invested in Mutual Fund by getting influenced by
friends and 32% invest in Mutual fund because of other reason.

1) WHEN YOU PLAN TO INVEST YOUR MONEY IN ASSET

MANAGEMENT COMPANY(AMC), WHICH AMC YOU PREFER?

Table 4.14 AMC Preference

NAME OF NO OF
AMC RESPONDENTS
 HDFC 13
AXIS 17
BIRLA SUN
LIFE 29
ICICI
PRUDENTIAL 11
KOTAK 14
RELIANCE 24
OTHERS 12

Graph 4.14 AMC Preference

INTERPRETATION:-
Out of 120 investors, 24% would prefer to invest in Birla sun life, 20% invest
in Reliance, 14% invest in Axis, 12% invest in Kotak, 11% invest in HDFC,
10% invest in others and 9% invest in ICICI Prudential.
1) WHICH CHANNEL WILL YOU PREFER WHILE INVESTING IN

MUTUAL FUNDS?
Table 4.15 Channel Of Investing

NAME OF NO OF
CHANNEL RESPONDENTS
FINANCIAL
ADVISOR 37
 BANK 33
BROKER 29
OTHERS 21

Graph 4.15 Channel Of Investing

INTERPRETATION:-
Out of 120 people, 31% prefer financial advisor, 28% prefer banks, 24% prefer
brokers and 17% prefer other channel.

1) WHEN YOU INVEST IN MUTUAL FUND WHICH MODE OF

INVESTMENT WILL YOU PREFER?

Table 4.16 Mode Of Investment

MODE OF ONE TIME SYSTEMATIC INVESTMENT

INVESTMENT INVESTMENT PLAN (SIP)
NO OF
RESPONDENTS 78 42
 Graph 4.16 Mode Of Investment
INTERPRETATION:-
Out of 120 people, 65% people prefer one time investment and 35% people
prefer systematic investment plan (SIP).

1) WHEN YOU WANT TO INVEST WHICH TYPE OF FUNDS WOULD

YOU CHOOSE?
Table 4.17 Types Of Portfolio

NO OF
PORTFOLIO RESPONDENTS
DEBT PORTFOLIO 20
EQUITY PORTFOLIO 56
BOTH EQUITY & DEBT
PORTFOLIO 44
 Graph 4.17 Type Of Portfolio
INTERPRETATION:-
From the above graph, it can be inferred that 46% preferred equity portfolio,
37% preferred both equity and debt portfolio and 17% preferred debt portfolio.

1) HOW WOULD YOU LIKE TO RECEIVE THE RETURNS EVERY

YEAR?
Table 4.18 Option Of Getting Return

DIVIDEND DIVIDEND RE-

OPTION PAYOUT INVESTMENT GROWTH
NO OF
RESPONDENTS 25 10 85
 Graph 4.18 Option Of Getting Return
INTERPRETATION:-
From the above graph, 71% preferred growth option, 21% preferred dividend
payout and 8% preferred dividend re-investment option.

1) ON AN AVERAGE HOW LONG DO YOU STAY INVESTED IN

MUTUAL FUNDS?
Table 4.19 Time Period

LESS THAN 1 1-3 3-5 MORE THAN 5

TIME PERIOD YEAR YEARS YEARS YEARS
NO OF
RESPONDENTS 9 11 27 73
 Graph 4.19 Time Period
INTERPRETATION:-
From the above graph, 61% invest in Mutual Fund for more than 5 years, 22%
invest in Mutual Fund for 3-5 years, 9% invest in Mutual Fund for 1-3 years and
8% invest in Mutual Fund for less than 1 year.

4.2 COMPARISON BETWEEN TWO MUTUAL FUND SCHEMES

HDFC BANK
MUTUAL FUND HDFC MUTUAL FUND
SCHEME NAME HDFC EQUITY (G)
TYPE OPEN ENDED
CATEGORY EQUITY - DIVERSIFIED
LAUNCH DATE 01/JAN/1995
NAV VALUE 253.292
INVESTMENT OBJECTIVE:-
Aims at providing Capital Appreciation through investments predominantly in
equity oriented securities.
PORTFOLIO ALLOCATION

Graph 4.20 Portfolio Allocation

Table 4.20 Portfolio Allocation

DOMESTIC
EQUITIES 75.48%
OTHER EQUITIES 19.32%
RIGHTS 4.24%
CASH & CASH
EQUIVALENT 0.96%
RISK ANALYSIS
STANDARD DEVIATION [%]: 1.2222
SHARPE RATIO[%]: -0.0387
BETA [%] : 0.9026
JENSON RATIO [%]: -0.0085
TREYNOR RATIO [%]: -0.0525
PERFORMANCE RETURN
Table 4.21 Performance Return

  1 mth 3 mth 6 mth 1 yr 2 yr 3 yr 5yr

(%) (%) (%) (%) (%) (%) (%)
Fund 7.6 -2.9 14.5 -8.8 1.5 13.3 9
Returns
Category 7.1 -2.3 12 -6.1 -0.8 7.9 3.2
avg

Graph 4.21 Performance Return

ICICI BANK
MUTUAL FUND ICICI MUTUAL FUND
SCHEME NAME ICICI PRU DYNAMIC PLAN (G)
TYPE OPEN ENDED
CATEGORY EQUITY – DIVERSIFIED
LAUNCH DATE 31/OCT/2002
NAV VALUE 104.183
INVESTMENT OBJECTIVE:-
To generate capital appreciation by actively investing in equity and equity
related securities and for defensive consideration in debt / money market
instruments and derivatives.

PORTFOLIO ALLOCATION
Table 4.22 Portfolio Allocation

DOMESTIC EQUITIES 86.89%

CASH & CASH EQUIVALENTS 13.47%
DERIVATIVES-FUTURE -0.36%

Graph 4.22 Portfolio Allocation

RISK ANALYSIS
STANDARD DEVIATION [%]: 1.1061
BETA [%]: 0.8296
SHARPE RATIO [%]: -0.0258
JENSON RATIO [%]: 0.0093
TREYNOR RATIO [%]: -0.0344
PERFORMANCE RETURN
Table 4.23 Performance Return

1 mth 3 mth 6 mth 1 yr 2 yr 3 yr 5yr

  (%) (%) (%) (%) (%) (%) (%)
Fund 3.2 0.2 8.0 -3.2 2.0 13.8 7.6
Returns
Category 4.2 -1.3 7.1 -6.3 -2.2 8.0 2.8
avg

Graph 4.23 Performance Return

SUMMARY
Having been a part of the mutual fund industry for more than one and a half
decade, HDFC Equity definitely boasts a long experience having faced both the
bullish and the bearish phases in its 15-year-long journey. HDFC Equity, with
its impressive track record, is a good investment option. HDFC Equity Fund has
followed a consistent strategy in its existence of over 15 years. It is
predominantly a large-cap oriented, actively managed, diversified equity fund.
Fund good point is that focus of the fund has always remained on investing in
good quality and strong companies. The fund has a clear bias towards growth
investing giving the good economic growth that India is experiencing. However
while investing in growth, the fund doesn’t want to overpay the growth and
seeks to move out of growing companies when they become very expensive.
The fund follows a multi-cap approach in selecting stocks. However, since its
start it has predominantly been oriented towards large-cap funds. Such
allocation has helped the fund in consistently outperforming its category over
the long run .
The fund is appropriate for investors looking for a long-term option with a
large-cap tilt. Thus, investors with a moderate risk appetite can take long-term
exposure to this fund through SIP.
HDFC fund is better than ICICI fund because
 It gives more return to the investor than the ICICI fund.
 It has more volatility than ICICI fund.
 CHAPTER-5
FINDINGS

5.1 FINDINGS:-
 According to the survey, the age group of 36-40 years were more in
numbers. The second most investors were in the age group of 41-45 years
and the least were in the age group of below 30 years.

 Most of the investors were Graduate or Post- Graduate and below HSC
there were very few in numbers.

 In occupation group most of the investors were Govt. employees, the

second most investors were Pvt. employees and the least were retired.

 In family income group, between Rs. 20001-30000 were more in

numbers, the second most were in the income group of more than Rs.
30000 and the least were in the group of below Rs. 10000.
 Only 67% respondents were aware about Mutual Fund and its operation
and 33% were not aware.

 Among 200 respondents only 60% had invested in Mutual Fund and 40%
did not have invested in Mutual Fund.

 Mostly people invest in Mutual Fund because they get the tax-benefit and
regular income and remaining people invest in Mutual Fund because
of diversification and better return and safety.

 Out of 80 people, who have not invested in Mutual Fund, 81% have lack
of knowledge about Mutual fund, 13% have not any specific reason and
6% have difficulty in selection of scheme.

 Out of 120 people, 38% have partial knowledge about Mutual Fund, 32%
are fully aware of Mutual Fund and 30% are totally ignorant about
Mutual Fund.

 Out of 120 people, 25% invest in growth fund scheme, 22% invest in
regular income fund scheme, 17% invest in close ended fund scheme,
16% invest in open ended fund scheme, 14% invest in liquid fund scheme
and 6% invest in sector fund.

 Maximum people have invested in ICICI Prudential i.e, 30% and lowest
is invested in other mutual funds.

 Most of the people have invested in mutual fund on the advice of their
financial advisor i.e., 37%, 31% people get influenced from their friend
 and then they have invested and 32% people have invested in mutual fund
because of other reason.

 24% people prefer Birla Sun Life AMC, 20% people prefer Reliance
AMC, 14% people prefer Axis AMC, 12% p eople prefer Kotak AMC,
11% people prefer HDFC AMC, 10% people prefer other AMC and 9%
people prefer ICICI Prudentials AMC.

 31% Investors preferred to Invest through Financial Advisors, 24%

through brokers 28% through Bank and 17% through other channel.

 65% preferred One Time Investment and 35% preferred SIP out of both
type of Mode of Investment.

 The most preferred portfolio was equity, the second most was balance
(mixture of both equity and debt), and the least preferred portfolio was
debt.

 Maximum Number of Investors Preferred Growth Option for returns, the

second most preferred Dividend Payout and then Dividend Reinvestment.

 Maximum people want to invest in Mutual Fund more than 5 years, 23%
people want to invest in Mutual Fund for 3-5 years, 9% people want to
invest in Mutual Fund for 1-3 years and 8% people want to invest in
Mutual Fund for less than 1 year.
 CHAPTER – 6 RECOMMENDATION
AND CONCLUSION

6.1 RECOMMENDATIONS:-
 The most vital problem spotted is of ignorance. Investors should be made
aware of the benefits. Nobody will invest until and unless he is fully
convinced. Investors should be made to realize that ignorance is no longer
bliss and what they are losing by not investing.

 Mutual funds offer a lot of benefit which no other single option could
offer.They only see it as just another investment option. So the advisors
should try to change their mindsets. The advisors should target for more
and more young investors. Young investors as well as persons at the
height of their career would like to go for advisors due to lack of
expertise and time.

 Mutual Fund Company needs to give the training of the Individual

Financial Advisors about the Fund/Scheme and its objective, because
they are the main source to influence the investors.

 Before making any investment Financial Advisors should first enquire

about the risk tolerance of the investors/customers, their need and time
(how long they want to invest).
  Younger people aged under 35 will be a key new customer group into the
future, so making greater efforts with younger customers who show some
interest in investing should pay off.

 Customers with graduate level education are easier to sell to and there is a
large untapped market there. To succeed however, advisors must provide
sound advice and high quality.

 Systematic Investment Plan (SIP) is one the innovative products launched

by Assets Management companies very recently in the industry. SIP is
easy for monthly salaried person as it provides the facility of do the
investment in EMI. Though most of the prospects and potential investors
are not aware about the SIP. There is a large scope for the companies to
tap the salaried persons.

6.2 CONCLUSION:-
Running a successful Mutual Fund requires complete understanding of the
peculiarities of the Indian Stock Market and also the psyche of the small
investors. This study has made an attempt to understand the financial behavior
of Mutual Fund investors in connection with the preferences of Brand (AMC),
Products, Channels etc. I observed that many of people have fear of Mutual
Fund. They think their money will not be secure in Mutual Fund. They need the
knowledge of Mutual Fund and its related terms. Many of people do not invest
in mutual fund due to lack of awareness although they have money to invest. As
the awareness and income is growing the number of mutual fund investors are
also growing.
“Brand” plays important role for the investment. People invest in those
Companies where they have faith or they are well known with them. There are
many AMCs but only some are performing well due to Brand awareness. Some
AMCs are not performing well although some of the schemes of them are
giving good return because of not awareness about Brand. Reliance, ICICI
Prudential etc. they are well known Brand, they are performing well and their
Assets Under Management is larger than others whose Brand name are not well
known like kotak hdfc, etc.
Distribution channels are also important for the investment in mutual fund.
Financial Advisors are the most preferred channel for the investment in mutual
fund. They can change investors’ mind from one investment option to others.
Many of investors directly invest their money through AMC because they do
not have to pay entry load. Only those people invest directly who know well
about mutual fund and its operations and those have time.

BIBLIOGRAPHY
BOOKS
 Kothari C R, “Research and Methodology- Methods & Techniques”,
Second Revised Edition 2004, New Age International (P) Ltd.

 Mutual Fund: an introduction to the core by Mark Mobius.

 “Mutual fund in india- perspective and strategy edition 2007”-Arindam

Banerjee.

 Financial Management – I.M Pandey

JOURNALS AND RESEARCH PAPERS

 “How your Mutual Fund is performing” Business Today june 2012.

 M. Allirajan “Mutual Funds offering combo schemes to woo investors

with plans that invest in gold, debt & equities” The Economic Times may
2012.
  Roben Farzad “Mutual Funds Confront Not-Quite-as-Dumb Money”
Business Week 3 may 2012.

 CARHART, M.M.,“On persistence in mutual fund performance” Journal

of Finance 2001.

 Anna Prior “The Hidden Costs of Mutual Funds” Wall Street Journal
march 2010.

 Ritu Kant Ojha “Wake up call for mutual fund industry” The Financial
Express 21 june 2012.

 Girish Kalra “Mutual funds: Choosing the best option” The Indian
Express 3 may 2012.

WEBSITE
 www.moneycontrol.com
 www.mutualfundsindia.com
 www.smcindiaonline.com
 www.smctradeonline.com
 www.valueresearchonline.com
 www.amfiindia.com
ANNEXURES
Annexures 1
QUESTIONNAIRE ON MUTUAL FUNDS
PERSONAL DETAIL
a) NAME:-

b) AGE:-
o BELOW 30 YEARS
o 31- 35 YEARS
o 36- 40 YEARS
o 41- 45 YEARS
o 45- 50 YEARS
o ABOVE 50 YEARS

c) ADDRESS:-

d) PHONE NO:-

e) QUALIFICATION:-
o GRADUATE/POST GRADUATE
o UNDER GRADUATE
o OTHERS

f) OCCUPATION:-
o GOVT. SERVICE
o PVT. SERVICE
o BUSINESSMEN
o RETIRED
o OTHERS
g) MONTHLY INCOME:-
o BELOW - 10000
o 10001 - 15000
o 15001 - 20000
o 20001 – 30000
o ABOVE 30000

1) HAVE YOU HEARD ABOUT MUTUAL FUNDS?

 YES
 NO

2) IF YES,FROM WHERE YOU HAVE HEARD ABOUT MUTUAL

FUNDS?
 ADVERTISEMENT
 PEER GROUPS
 BANKS
 OTHERS

3) HAVE YOU EVER INVESTED IN MUTUAL FUNDS?

 YES
 NO

4) IF YES, THEN WHY YOU WANT TO INVEST MONEY IN MUTUAL

FUND?
 TAX BENEFIT
 DIVERSIFICATION
  REGULAR INCOME
 BETTER RETURN AND SAFETY

5) IF NOT, THEN WHY YOU HAVE NOT INVESTED IN MUTUAL

FUND?
 LACK OF KNOWLEDGE
 DIFFICULTY IN SELECTION OF SCHEMES
 NOT ANY SPECIFIC REASON

6) WHERE DO YOU FIND YOUSELF AS A MUTUAL FUND

INVESTOR?
 TOTALLY IGNORANT
 PARTIAL KNOWLEDGE OF MUTUAL FUND
 FULLY AWARE

7) WHICH MUTUAL FUND SCHEME HAVE YOU USED?

 OPEN ENDED

 CLOSE ENDED

 LIQUID FUND

 GROWTH FUND

 REGULAR INCOME FUND

 SECTOR FUND

8) IF YES, THEN IN WHICH MUTUAL FUND YOU HAVE INVESTED?

 HDFC
  AXIS
 BIRLA SUN LIFE
 ICICI PRUDENTIAL
 RELIANCE
 KOTAK
 OTHERS
9) WHY YOU HAVE CHOSEN A PARTICULAR MUTUAL FUND?
 INFLUENCE BY FRIENDS
 ON ADVICE OF FINANCIAL ADVISOR
 OTHERS

10) WHEN YOU PLAN TO INVEST YOUR MONEY IN ASSET

MANAGEMENT COMPANY(AMC), WHICH AMC YOU PREFER?
 HDFC
 AXIS
 BIRLA SUN LIFE
 ICICI PRUDENTIAL
 KOTAK
 RELIANCE
 OTHERS

11) WHICH CHANNEL WILL YOU PREFER WHILE INVESTING

IN MUTUAL FUNDS?
 FINANCIAL ADVISOR
 BANK
 BROKER
 OTHERS
12) WHEN YOU INVEST IN MUTUAL FUND WHICH MODE OF
INVESTMENT WILL YOU PREFER?
 ONE TIME INVESTMENT
 SYSTEMATIC INVESTMENT PLAN (SIP)

13) WHEN YOU WANT TO INVEST WHICH TYPE OF FUNDS

WOULD YOU CHOOSE?
 DEBT PORTFOLIO
 EQUITY PORTFOLIO
 BOTH DEBT & EQUITY PORTFOLIO

14) HOW WOULD YOU LIKE TO RECEIVE THE RETURNS

EVERY YEAR?
 DIVIDEND PAYOUT
 DIVIDEND RE-INVESTMENT
 GROWTH

15) ON AN AVERAGE HOW LONG DO YOU STAY INVESTED

IN MUTUAL FUNDS?
 LESS THAN 1 YEAR
 1 – 3 YEARS
 3 – 5 YEARS
 MORE THAN 5 YEARS