A Report

on

“A Study on Perception of
People regarding Mutual Funds”

Neha Maheshwari

2017-19 Batch

Submitted in partial fulfillment of the requirements of

PGDM Program at

Jaipuria Institute of Management

Jaipur
 Declaration

I do hereby declare that this project entitled, “A Study on Perception of People regarding Mutual
Funds” with AU Small Finance Bank has been completed by me and it is an original work. This
report is being submitted for fulfilling the requirement of Post Graduate Diploma in Management as
a Summer Training Project, at Jaipuria Institute of Management, Jaipur.

It has never been submitted nor been published elsewhere.

Neha Maheshwari

Date:

Place: Jaipur

i
ii
Certificate of Originality

Date:………………

iii
 To Whomsoever It May Concern

This is to certify that the Summer Internship Project Report titled ________________________,
submitted by Mr/Ms________________, represents an original work done by the student mentioned
herein and has been submitted in partial fulfillment of the requirements of the PGDM Programme
(2017-19 Batch).

Dr. Sheenu Jain

ACKNOWLEDGEMENT

iv
The successful completion of project report has been made possible through the direct

corporation and guidance of various people for whom I wish to express my gratitude and

appreciation.

First of all I would like to thank to my faculty mentor Dr Sheenu Jain it would not have been

possible without her kind support and help.

I also thank to AU Small Finance Bank for giving me an opportunity to undertake my project

work and giving the knowledge and experience of corporate in two months.

I would also like to thank to my industry mentor Mr. Bhawesh Dhankani and other company

members for continuous support.

Last but not the least I offer my sincere thanks to my parents, friends and college for their

encouragement.

Neha Maheshwari

Table of Content

v
S. No. Topic Page No.

vi
1 Declaration (i)

2 Certificate from Organization (ii)

3 Certificate from faculty guide (iii)

4 Acknowledgement (iv)

5 Executive Summary 1-2

6 Introduction 3-6

7 Organization Overview 7-9

8 Industry Analysis 10-12

9 Research Analysis 13-34

10 Conclusion 35

11 SIP Experience and Key Learning 36-38

12 References 39

13 Annexure 40-41

vii
 Executive Summary

The summer internship of a management student plays an important role to develop her in a well

groomed personality. It gives a chance to convert its classroom learning in to the field of

application. Au Small Finance Bank was a new experience for me to work in a corporate

environment. Au Small Finance Bank has a network spread across in 11 states. It is one of the

largest banks in its home state Rajasthan by the number of the branches.

In this project I studied the perception of people regarding mutual funds. The study is conducted

on a sample of 150 people out of which only some people are fully aware about the mutual

funds. In India lot of investment opportunities are available for the investor and all have its own

strength and weakness.

In the competitive environment all the companies wants to expand their business by increasing

their customers but for the mutual fund companies number of customers are less because people

are not fully aware the pros and cons of the mutual fund. And a good company analyzes the need

and wants of the customers and creates an opportunity by targeting their customers.

This report is divided into two parts. The first part gives the insight of mutual funds and its

various aspects, organization overview and the industry analysis, objectives and research

methodology,

The second part of the report consists of data analysis and its results. And also include the

conclusion, findings, suggestion, limitation and the SIP experience.

The objective of the research is to determine the goal of investor for investing, to study of

perception of people regarding mutual funds and the level of awareness of mutual funds. Survey

1
is done on 150 people and data is collected through the questionnaire. My key learning were I

learned about the mutual funds, health insurance and IRDA certification.

The data collected has been well organized and presented. I hope the research findings and

conclusion will be of use.

The Summer Internship was a learning curve in my career. It gave me invaluable experience and

opportunity to work in such a wonderful corporate environment.

2
 Chapter 1: Introduction

Saving is the surplus of income over the expenditure. When people have savings then they

invested the savings and get return. Various investment opportunities are available in the market

and investor will choose according to their preference. Mutual fund is one of them.

Mutual fund is an investment company that pools money from the investor and invests in various

types of securities and schemes. Mutual fund is most suitable opportunity for the common man

because it offers wide variety of schemes. Mutual fund is registered with Securities Exchange

Board of India. When a person purchased a unit of mutual funds, then he became the owner of

that firm in the proportion he invested in the mutual funds.

If investors are taking higher risk than he will expect higher returns and if the investor take lower

risk than he will get lower return.

In 1963 mutual fund industry was established in India. UTI is the first mutual fund company in

India. The first phase of mutual fund industry is 1964-1987. In this phase UTI enjoy monopoly in

the market.

Then the second phase is 1987-1993. In the phase government allowed public sector banks and

financial institution to start dealing in mutual funds.

The third phase is 1993-2003. This phase is started with the entry of private sector and foreign

banks in the Indian market.

The fourth phase is since 2003. This phase is for growth and consolidation.

3
Mutual funds can be classified are as follows:

Based on the structure

 Open funded schemes

Investor can buy and sell the units of mutual funds at anytime.

 Close ended schemes

Investor can buy and sell the units of mutual funds only once. After the offer period

fresh investment cannot be made into the funds.

Based on the investment objectives

 Equity fund

In the equity fund investor can invest in equities and equity related instruments. These

funds are fluctuated according to share market. The risk in equity return is high.

 Debt fund

Debt fund is for that investor who does not want to take risk. So they invest in fixed

income instruments like debentures etc.

 Balanced fund

Balanced fund is also known as hybrid fund. Balance fund is a combination of equity

fund and debt fund. Mutual funds for those investor who are looking for safety, risk and

income.

Based on the investment strategies

 Systematic Investment Plan

Under this plan investor invest a fixed amount of money every month on a fixed date.

4
  Systematic Transfer Plan

Under this plan investor invested in to the debt fund and he wants to transfer the fund

into the equity fund then he can converted a fixed sum, at a fixed interval into the equity

fund.

 Systematic Withdrawal Plan

Under this plan if a investor wants to withdraw money from the mutual fund then he can

withdraw a fixed amount of money each month.

Advantages of mutual funds

 Liquidity

Investor can easily liquidate your mutual funds within two to five working days.

 Affordability

Mutual fund allows investor to invest small sum instead of large sum.

 Reduction of transaction cost

All the expenses like brokerage, custody of security etc will bear by the investor.

 Choices of schemes

Various schemes are available for the investor, investor select the schemes according to

his need.

 Well regulated

All the mutual fund companies are regulated by Security Exchange Board of India.

5
Disadvantages of mutual funds

 Fluctuating return

Mutual funds offer fluctuating returns it does not offers fixed return experts does not

insulated investor for the bad performance.

 Fund evaluation

Sometimes investors find difficulty to find most suitable mutual fund scheme they

compared the one fund with other.

 Past performance

Investor analysis the past performance of the mutual fund but there is no guarantee that

the past performance of mutual fund is similar in the future.

 Trading limitations

Investors cannot be buy and sale mutual funds in the middle of the day. They can buy

and sale at the end of the day when current value is calculated.

 Professional management

The returns of the mutual fund is heavily depends upon the manager judgment. It means

investor give their money in the hands of manager.

6
 Chapter 2: Organization Overview

The journey of AU small finance was started in 1996 as a name AU Financier LTD but initially

name of this company was L.N Finco Gems Private limited and on 19th April 2017 it is

converted into Indian commercial bank.

It provides banking service in India. It offers saving account current account, term deposits,

recurring deposits, debit cards, and collections and payments solutions locker services and

insurance products. And expand its operations day by day in various cities.

It was commenced by Mr. Sanjay Agarawal.

Its registered office located in Jaipur (Rajasthan).

Its corporate office in Mumbai (Maharashtra).

The tagline of AU Small bank is “Chalo Aage Badhein.”

It means no matter what your goal is, AU Bank will help you achieve it. 

Currently it had 306 bank branches, 106 asset centre, 23 offices, 291 ATMs across 11 states of

North, West and Central India and it has a team of 10,000+ employees. 301 bank branches but it

plans to expand to over 430 branches by the end of 2018.

Organization Culture

The work is enjoyable, meaningful and engaging. When the employees are engaged, they are

safer on the job, more productive and willing and are able to delight customers. The only

organizational culture matters to improve the employees’ productivity. It is the right thing for an

organization to do – to think about the work environment, working relationships and "how we do

7
things here” concept.  Focusing on building and sustaining an organizational culture is one of the

strength of AU small finance bank showing that people are the organization's most integral part.

AU small finance bank organizational culture is a market culture, people focusing on their goals.

Places where AU Bank is present in India

 Rajasthan

 Himachal Pradesh

 Chhattisgarh

 Delhi/NCR

 Uttar Pradesh

 Madhya Pradesh

 Goa

 Maharashtra

 Gujarat

 Haryana

 Punjab

Au Small Finance bank is one of the largest banks in its home state Rajasthan by the number of

branches.

8
Board of Directors

Chairman of Board Mr. Mannil Venugopalan

Managing Director & CEO Mr. Sanjay Agarwal

Executive Director Mr. Uttam Tiberwal

Independent Director Mr. Krishna Kant Rathi

Independent Director Ms. Jyoti Narang

Non Executive Director Mr. Raj Vikas Verma

Nominee Director Mr. Narendra Ostawal

Vision

To be the world's most trusted retail bank and coveted employer, that is admired as the epitome

of financial inclusion and economic success, where ordinary people do extraordinary things to

transform society at large, thereby guaranteeing Trust, Confidence and Customer Delight.

Mission

To build one of India’s largest retail franchises by 2022 that is admired for:-

 Making every customer feel supreme while being served

 Aspiring that no Indian is deprived of banking

 Bias for action, dynamism, detail orientation and product and process innovation

 Globally respected standards of integrity, governance and ethics

 Being an equal opportunity employer, providing a collaborative and rewarding platform to all

its employees.

9
 Chapter 3: Industry Analysis

Porter’s five forces analysis

Industry Rivalry

Competitive rivalry between big players is intense in the industry. In the financial service

companies they compete with their competitor on the basis of interest rates, deposit rates and

investment services.

Threat of new entrant

Investor prefer to invest their savings in a good reputed financial company which provides wide

range of products.

Threat of substitute

Threat of substitute product is less because only few financial product available in the market.

Bargaining power of suppliers

Bargaining power of suppliers is low in this industry because it is regulated by RBI.

Bargaining power of customers

Bargaining power of customer is medium because they can easily switch to another company

according to the condition they need.

10
SWOT Analysis

Strength

 AUBANK has established itself as a strong SFB across multiple secured product lines.

 The bank has little geographical overlap with other SFB’s which limits the competition

among existing players.

 It has created customized products and services to cater to the evolving needs of its

customers.

Weakness

 Concentration risk: AUBANK has significant exposure to the top four states, which

together account for 90% of its loan book.

 Being a dominantly wholesale-funded entity, a rising interest rate environment may

adversely impact borrowing costs, and hence, profitability.

Opportunities

 Leveraging technology along with doorstep servicing would enable AUBANK in rapidly

gaining market share.

11
  AUBANK operates in underpenetrated geographies which offers it strong growth

potential.

 The bank is yet to launch several other key lending products which will accelerate its

business growth.

Threats

 With increasing credit penetration bargaining power of borrowers has increased. SFBs

may also lose business to other banks on account of refinancing as economy gets further

formalized.

 With several new banks, fintech companies and existing banks vying for same talent

pool, nurturing and retaining the key management personnel can be a challenge.

12
 Chapter 4 Research Analysis

Objectives

 To study and analyze the perception level of people regarding mutual funds.

 To determine the people goal of people for investment.

 To know about the knowledge of people regarding mutual funds.

 To determine the investment criteria of people.

 To identify how much amount people are invested in mutual funds.

 To study the level of awareness of mutual funds.

Theoretical Underpinning

Dr. Ramandeep Saini (May 2011) analyzed that earlier Uti mutual fund have a monopoly in the

market because no other companies are dealing in mutual funds. But now few years back many

mutual fund companies enter in the market and start dealing in mutual funds and competition

will increase in the market. But it is important for the Indian market to know the perception of

people regarding mutual funds. Investors face various issues in mutual fund schemes, role of

financial advisor, source of information and deficiencies in the service provided by the mutual

fund manager. These are the challenges faced by the investor in Indian mutual fund industry.

Gaurav Agrawal, Dr. Mini Jain (Oct 2013) observed that in this competitive market various

investment opportunities are available for the investor. Every investment has its own advantages

and disadvantages and but investor do the research before investing and identify the best

opportunity. Various investment opportunities are available in the market but mutual fund is the

13
best investment mode for the common man because it offers opportunities to invest in a

diversified and professionally managed portfolio at a low cost.

Dr. Rajesh Kumar, Nitin Goel (Dec 2014) observed that in Indian market mutual fund is a

challengeable phenomenon because only in one decade it changed the investment pattern of the

investors. Now study of market regarding mutual fund is essential for every business. With these

mutual fund companies also identify what the investor will expect from them then this new

investment pattern will provide benefit to them. Small investor indirectly enters in the securities

market and reducing the risk. This vehicle invites the investor across the country and enjoys the

capital market growth. Mutual fund is more efficient tool for the creation of wealth and after

some time in India it becomes most popular due to the high return and less risk.

Priti Mane (Feb 2016) studied that currently mutual fund is an emerging tool in the Indian

market. Now awareness and perception of people becoming more popular and they enjoy the

benefits of investing in mutual funds. Every company analyze the perception of customer with

regards to the mutual funds and identifies what schemes they prefer, which plan they are opting,

why they are selecting that particular plan. Apart from mutual funds also identify which

investment option they prefer like postal savings schemes, Fixed Deposits, Shares and Bonds etc.

And finds that why most of people are not interested in investing this new instrument of

investment.

Rajesh Trivedi, Prafulla Kumar Swain (Aug 2017) observed that Indian market becoming more

competitive day by day because due to the supply of various financial instruments needs to be in

equilibrium with respect to the demand perspectives of investors. The main goal of every

financial instrument is to provide maximum return with a minimum risk to its investor. The

14
researcher collected the data from the mutual fund investor as well as non mutual fund investor

and analyzed the investor decision criteria of investment like financial awareness, risk, liquidity

and time etc.

Research Methodology

This report is based on primary data. It helps in collecting the information that is required by the

researcher and assists them for taking the better decision.

Data Sources

Research has been done by primary data collection and primary data is collected through the

questionnaire.

Duration of the study

The research was carried out for period of a one months.

Sampling procedure

The sample was collected by sending questionnaire online and as well as through personal visit

to the person and filling up- the questionnaire.

Sample Size

The sample size of my research is 150.

Sample design

Data has been presented with the help of graphs and pie chart.

15
 Data Analysis

Gender: Male/Female

Gender No. of responses ender

Female 62
Male 88
Grand Total 150

Gender

41%

Female
Male

59%

Figure 1 Classification of Gender

The questionnaire was filled by 150 respondents amongst which 59% are males & 41% are

females. This shows that majority of respondents are males.

Qualification: 12 / UG / PG / Professional

16
 Qualification n No of responses
12 5
PG 69
Professional 33
UG 43
Grand Total 150

Qualification
29% 3%

12
PG
Professional
46%
UG

22%

Figure 2 Qualification of the respondents

The qualifications of the respondents were ranging from 12th, UG, PG and Professional. From the

chart 2 we can analyze that around 46% of the respondents are Post Graduates, 29% of the

respondents are Undergraduates, 22% of the respondents are Professional and remaining 3% of

the respondents are 12th passed out.

Occupation: Government Job / Private Job / Business / Others

Occupation No of responses
Business 28
Government Job 26

17
 Other 42
Private Job 54
Grand Total 150

Occupation
19%
36%

Business
Government Job
Other
17% Private Job

28%

Figure 3 Occupation of respondents

In occupation group out of the 150 respondents 36% of the respondents are private employees,

28% of the respondents are doing other occupation like doctor, Engineer, etc, 19% respondents

are businessman and 17% respondents are government employees. It means most of the investor

belongs to the private job.

Annual Income

Annual Income No. of responsesesponses

1.5lakhs to 5lakhs 54
10lakhs to 25lakhs 32
25lakhs and above 1
5lakhs to 10lakhs 63
Grand Total 150

18
 Annual Income
36%
42%
1.5lakhs to 5lakhs
10lakhs to 25lakhs
25lakhs and above
5lakhs to 10lakhs

21%

1%

Figure 4 Annual Income of the respondents

The monthly income profile of the investor reflects that 42% of the people belongs to the income

level of Rs5 lakhs to Rs10 lakhs and above followed by 36% of the people belong to the income

group of Rs1.5 lakhs to Rs5 lakhs.

1. Do you invest?

Do you invest? No. of responses

No 16
Yes 133
Grand Total 149

19
 11%

No
Yes

89%

Figure 5 Percentage of people like to invest

Out of all the 150 respondents 89% people are investing and remaining 11% people are not

investing.

2. What kind of investment you prefer most?

Most preferable investment CNo. of responses.

Gold / Silver 82
Mutual Fund 57
Real Estate 69
Fixed Deposit 107

20
 Fixed Deposit 107

Real Estate 69

Mutual Fund 57

Gold / Silver 82

Figure 6 Most Preferable investment

From the above graph it can be inferred that out of 150 people, 71.3% people have invested in

Fixed Deposit, 54.7% invested in Gold/ Silver, 46% invested in real estate and only 38% people

invested in mutual fund.

3. What do you consider the most important factor for investing?

Most important factor for No. of responses

investing
Company Reputation 32
Quick Returns 37
Returns 38
Risk 43
Grand Total 150

21
 29% 21%

Company Reputation
Quick Returns
Returns
Risk

25%
25%

Figure 7 Most important factor investing in investing mutual funds

Out of all the 150 respondents 29% people prefer to invest where there is high risk 25% people

prefer to invest where there is returns and quick returns and 21% prefer to invest where there is

good company reputation.

4. What is your preference in mutual funds?

Preference in mutual fund No. of responses

Balanced Fund 58
Debt Fund 34
Equity Fund 58
Grand Total 150

22
 39% 39%

Balanced Fund
Debt Fund
Equity Fund

23%

Figure 8 People preference in investing mutual funds

From the above pie chart 39% preferred equity portfolio, 38% preferred balanced fund and only

23% preferred debt portfolio.

5. What type of mutual funds you prefer?

Type of mutual funds preference C No. of responses?

Close ended scheme 64
Open ended scheme 86
Grand Total 150

23
 43%

Close ended scheme

57% Open ended scheme

Figure 9 Preferences of mutual fund Schemes

Out of all the 150 respondents, 57% people prefer open ended scheme and only 43% people

prefer close ended scheme.

6. Which investment pattern you prefer in mutual fund?

Investment pattern No. of response

Anytime 39
Monthly 37
Once in a year 37
Once in six month 37
Grand Total 150

24
 25% 26%

Anytime
Monthly
Once in a year
Once in six month

25% 25%

Figure 10 Preference of investment pattern

Out of all the 150 respondents, 26% people preferred to invest anytime, 25% preferred to invest

once in a year or once in a six month and only 24% preferred monthly investment plan.

7. From where do you purchase mutual funds?

From where do you No. of responsesunds?

purchase mutual funds?

Brokers 32
Directly from AMCs 59
Others 20
Relatives 39
Grand Total 150

25
 26% 21%

Brokers
Directly from AMCs
Others
Relatives
13%

39%

Figure 11 From where investor buy mutual funds

Out of 150 respondents 40% people prefer to purchase mutual funds directly from AMC’s, 26%

through relatives, 21% through brokers and 13% through other sources.

8. In which company mutual fund you want to invest?

Preference of mutual fund CNo. of responsewant

company to invest?
DSP Blackrock 28
HDFC Mutual Funds 65
Kotak Mutual Funds 26
Others 31
Grand Total 150

26
 21% 19%

DSP Blackrock
HDFC Mutual Funds
Kotak Mutual Funds
17%
Others

43%

Figure 12 Preference of mutual fund company

According to my research most of the people want to invest in HDFC mutual funds and only

19% people prefer DSP Black rock mutual funds, 17% prefer Kotak mutual funds and 17%

prefer other company mutual funds.

9. Do you do any kind of research before investing?

Research before investing No of responsesvesting?

No 36
Yes 114
Grand Total 150

27
 24%

No
Yes

76%

Figure 13 People do research before investing

Out of all the150 respondents, 76% people do research before investing and 24% people do not

research before investing. This shows that most of the people do the research before investing.

10. What is the goal of investment?

Goal of investment No. of responsesinvestment?

Child Education 34
Child marriage 22
Purchase property 48
Retirement Benefit 46
Grand Total 150

28
 23%
31%

Child Education
Child marriage
Purchase property
15% Retirement Benefit

32%

Figure 14 People goal of investment

From the above pie chart, the goal of 32% investor is to purchase property, 31% investor to

enjoy retirement benefit, 23% investor for child education and 14% investor purchase mutual

fund for the child marriage.

11. Where do you find yourself regarding the knowledge of mutual funds?

Knowledge regarding mutual No. of responses

funds
Fully aware 37
Only some points 30
Partial aware 65
Totally ignorant 18
Grand Total 150

29
 12% 25%

Fully aware
Only some points
Partial aware
Totally ignorant

43%
20%

Figure 15 People knowledge regarding mutual funds

From all the 150 respondents, 43% of the respondents are partial aware of mutual funds, 25% are

fully aware of mutual funds, 20% are know some points of mutual funds and 12% are totally

ignorant of mutual funds.

12. Which factor stops you to invest in mutual funds?

Factor stops to invest in mutual funds No. of responses

Bitter past experience 22
Difficult in selection of best schemes 38
Lack of knowledge 36
Others 54
Grand Total 150

30
 15%
36%

Bitter past experience

Difficult in selection of best
25% schemes
Lack of knowledge
Others

24%

Figure 16 Factor stop to invest in mutual funds

From all the 150 respondents, 25% respondent finds difficulty in selection of best schemes, 26%

have lack of knowledge regarding mutual funds, 15% have bitter past experience and 36% have

some other reasons not to investing in mutual funds.

13. What is the monthly amount you will invest in mutual fund?

Monthly amount invest in No. of responses

mutual fund
Rs 10000 to Rs 20000 22
Rs 20000 & above 3
Rs 500 to Rs 5000 64
Rs 5000 to 10000 61
Grand Total 150

31
 15%

41% 2%

Rs 10000 to Rs 20000
Rs 20000 & above
Rs 500 to Rs 5000
Rs 5000 to 10000

43%

Figure 17 Monthly amount invest in mutual fund

Out of all the 150 respondents, 42% respondents will invest Rs500 to Rs5000 in mutual funds,

41% respondents will invest Rs 5000 to Rs10000 in mutual funds, 15% respondents will invest

Rs10000 to Rs20000 and only 2% will invest more than Rs20000 in mutual funds. It means most

of the people will invest Rs500 to Rs10000 in mutual funds.

14. Do you want to reinvest in mutual fund?

Want to reinvest in CONo. of responses to

mutual fund reinvest in mutual fund?

No 61
Yes 89
Grand Total 150

32
 41%

No
Yes
59%

Figure 18 People reinvest in mutual funds

Out of all the 150 respondents, 59% people want to reinvest in mutual funds and 41% people

does not want to reinvest in mutual fund because they are not fully aware of the mutual funds.

Findings

 Most of the respondents were males.

 In the qualification group most of the respondents were graduate and post graduate and

some were professional people and 12th passed out were in fewer number.

 In the occupation group most of the people were private employees and least were

government employees.

33
  Mostly people preferred to invest in fixed deposit then gold and silver and least in mutual

funds.

 In the income group, between Rs1.5 lakhs to Rs5 lakhs were more in numbers and the

least were in group of Rs20 lakhs and above.

 Mostly people are concerned with risk factor of mutual fund and the second most

preferred factor is returns and quick returns.

 People more likely to invest in equity fund and then balanced fund and least in debt fund.

 More than 50% people prefer to invest in open ended scheme of mutual fund scheme.

 Mostly prefer to purchase the mutual funds directly from the AMC’s.

 For future investment the maximum respondents preferred HDFC mutual funds.

 The goal of investor for investing to purchase property.

 76% respondents do research before investing because it preserves their income.

 Mostly people have partial knowledge regarding the mutual funds.

 Mostly people likely to invest Rs500 to Rs10000in mutual funds.

Conclusion

After making the report I reached to a conclusion that this project is the study on perception of

people regarding mutual funds. Presently there is a market where many types of funds with

different features like period, cost, tax benefit etc are available. That’s why people are confused

that in what kind of mutual fund they should invest their money. The reason behind there

confusion is that they have partial knowledge regarding mutual funds. As we know that partial

34
knowledge sometimes prove very dangerous because it may make them lose their money in such

schemes.

For Indians money is everything so they are more sensitive investing their money they think many

times before investing it. They feel that they are having enough time so they do the research

before investing. And they also take the suggestion of bank, family and friends etc

People likes to invest in fixed deposit because they feel it is the safest and return are fixed and not

having the fear of losing the money. Mutual fund is linked with the share market and investor take

the advice of expert advisor because in share market risk and uncertainties are also high.

Advertising plays a major role to make people aware regarding the pros and cons of mutual funds.

But even after this investors have to do proper research and study about the terms and conditions

of mutual fund in which they want to invest their money. Mutual fund companies allows its

investor to compare the funds on the basis of different matrices like level of risk, return and price

so that investors will be able to take wise decision.

Limitations of the study

 Possibility of error in data collection because some of the people are not so responsive

 The research is confined at the certain part.

 The technique of the research is convenient sampling so it may result in personal biasness.

 Time limitation

35
Suggestions

 Mutual fund companies also tried to target low income level people.

 Mutual fund companies should also target female customers.

 Mutual fund companies should also promote online trading.

 Starting the awareness program me and campaign to attract large number of investor.

 Appoint expert to understand the need of investor and also provide solution.

 Regular take review from the customer.

 Distribute brochure to the people which having different schemes of mutual funds.

Chapter 5: SIP Experience

My SIP journey of 60 days was very knowledgeable. It was a new experience for me to work in a

company with the experienced people. My industry mentor was very cooperative and helpful. He

gave his valuable time for teaching me mutual funds and health insurance and also answered my

questions patiently.

36
There were three phases of my SIP. In the initial phase I learnt about the two policies of Aditya

Birla Capital that are Gold Health Insurance and Platinum Health Insurance. And after that I also

learnt the three policies of Future Generali that are Assured Education Plan, Income Plan and Big

Income Multiplier. And I also learnt the two new techniques of making the presentation.

And in the second phase I learnt about the mutual funds of HDFC, DSP Black Rock and Kotak

mutual funds and knowing the mutual funds then made a presentation in a way so that investor

can easily understand about the pros and cons of mutual funds. And in the meantime of

internship I was also doing the staff calling.

And the last phase of my internship is the work of IRDA Certification. In the IRDA Certification

I collected the documents of its employees and do the online registration an continuously remind

the employees to the complete the 75 hours training after completing the training then I upload

the exam.

And I learnt that the only way to convince people to purchase anything is to relate the benefit of

such product with their real life.

This internship was a learning curve in my career and I am grateful to my college and faculties

for providing me an opportunity to work and learn in such a wonderful environment.

Key Learning

 Learned about mutual funds and SIP.

 Learned about IDRA Certification.

 Learned about health insurance.

 Learned about new techniques of making presentation.

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 Learned about the behavior of employee through calling

 Learned to convince the people for purchasing anything.

 Learned how to work under pressure and deadlines.

 Learned to take constructive critics well.

References

 www.aubank.in

 http://www.iosrjournals.org/iosr-jbm/papers/Vol6-issue6/F0664855.pdf

 http://mujournal.mewaruniversity.in/JIR%201-4/15.pdf

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  http://ijrmbs.com/vol1issue4/rajesh_k_2.pdf

 http://www.thesij.com/papers/IFBM/2016/February/IFBM-04020060202.pdf

 https://www.researchgate.net/publication/319109300_A_Study_of_Investor's_Perception

_Towards_Mutual_Fund_Decision_An_Indian_Perspective

Annexure

QUESTIONNAIRE
Name:
Gender: Male / Female

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Qualification: 12 / UG / PG / Professional
Occupation: Government Job / Private Job / Business / Others
Annual Income: a) 1.5lakhs to 5lakhs c) 10lakhs to 25lakhs
b) 5lakhs to 10lakhs d) 20lakhs & above
1. Do you invest?
a) Yes b) No
2. What kind of investment you prefer most?
a) Mutual Funds c) Gold / Silver

b) Real Estate d) Fixed Deposit (tick multiple option)

3. What do you consider the most important factor for investing?

a) Returns c) Company Reputation

b) Risk d) Quick Returns

4. What is your preference in mutual funds?

a) Debt Fund c) Balanced Fund

b) Equity Fund

5. What type of mutual funds you prefer?

a) Open ended scheme b) Close ended scheme

6. Which investment pattern you prefer in mutual fund?

a) Monthly c) Once in a year

b) Once in six month d) Anytime

7. From where do you purchase mutual funds?

a) Brokers c) Relatives

b) Directly from AMCs d) Others (specify)

8. In which company mutual fund you want to invest?

a) HDFC Mutual Funds c) Kotak Mutual Funds

b) DSP Blackrock d) Others (Specify)

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9. Do you do any kind of research before investing?

a) Yes b) No

10. What is the goal of investment?

a) Child education c) Child marriage

b) Purchase property d) Retirement Benefit

11. Where do you find yourself regarding the knowledge of mutual funds?

a) Fully aware c) Totally ignorant

b) Partial aware d) Only some points

12. Which factor stops you to invest in mutual funds?

a) Lack of knowledge c) Difficult in selection of best schemes

b) Bitter past experience d) Others

13. What is the monthly amount you will invest in mutual fund?

a) Rs 500 to Rs 5000 c) Rs 10000 to Rs 20000

b) Rs 5000 to 10000 d) Rs 20000 & above

14. Do you want to reinvest in mutual fund?

a) Yes b) No

Any Suggestion……………………………………………………………………………

Thank you for your valuable time………

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