A STUDY ON COMPARSTIVE STUDY ON TODAY’S YOUTH WITH

REGARDS TO MUTUAL FUND AND SHARE MARKET INVESTMENT A

PROJECT

SUBMITTED

TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE

DEGREE OF

BACHELOR’S IN COMMERCE (ACCOUNTING & FINANCE)

UNDER THE FACULTY OF COMMERCE

BY

AJAY MATHURBHAI VADHER

UNDER THE GUIDANCE OF

PROF. NICOLE PEREIRA

KES SHROFF COLLEGE OF ARTS AND COMMERCE

Bhulabhai Desai Road, Kandivali (West), Mumbai- 400067

NAAC Re-accredited ‘A’ Grade and ISO 9001: 2008 Certified

April 2020

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 CERTIFICATE

This is to certify that MR. AJAY MATHURBHAI VADHER has worked and
duly completed his project work for the degree of Bachelor in Commerce
(Accounting Finance) under the Faculty of Commerce in the subject of Commerce
and his project is entitled, A STUDY ON COMPARSTIVE STUDY ON
TODAY’S YOUTH WITH REGARDS TO MUTUAL FUND AND SHARE
MARKET INVESTMENT under the supervision of guide MRS. NICOLE
PEREIRA.

I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree or
Diploma of any University.

It is his own work and facts reported by her/his personal findings and
investigations.

PROF. NICOLE PEREIRA

Date of Submission:

2
 DECLARATION BY LEARNER

I the undersigned Mrs. AJAY MATHURBHAI VADHER hereby, declare that

the work in this project titled A STUDY ON COMPARSTIVE STUDY ON
TODAY’S YOUTH WITH REGARDS TO MUTUAL FUND AND SHARE
MARKET INVESTMENT, forms my own contribution to the research work
carried out under the guidance of MRS.NICOLE PEREIRA is a result of my own
research work and has not been previously submitted to any other University for
any other Degree/Diploma to this or any other University.

Wherever reference has been made to previous work of others, it has been clearly
in-dicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained
and presented in accordance with academic rules and ethical conduct.

AJAY MATHURBHAI VADHER

Certified By

PROF. NICOLE PEREIRA

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
di-mensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.

I would like to thank my Principal, Dr. L. BHUSHAN for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Coordinator, Dr. VAIBHAV. R. ASHAR for
his moral support and guidance.

I would also like to express my sincere gratitude towards my project guide, MRS.
NICOLE PEREIRA whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers who
supported.

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 TABLE OF CONTENT

CHAPTER PAGE
SR.NO. CONTENT
. NO.
I Introduction
What is Mergers and Acquisitions AS.14

Types of Mergers And Acquisitions

Difference Between Mergers and

Acquisitions
30
Mergers and Acquisitions In Banking Sectors

Mergers and Acquisitions in India

History of Andhra bank, corporation bank,

union bank

II Objective 5
Important and significance of study
III
Financial statement of bank
Analysis of before M&A-After M&A
Union bank
IV
Andhra bank
Co-poration
V Review of Literature
VI Hypothesis
Data Analysis and Interpretation
VII
Pie chart
VIII Research Methodology
XI Suggestion, Finding, Conclusion

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X Bibliography

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Contents
CHAPTER-1  : INTRODUCTION.....................................................................................................................7
1.1 Merger & Acquisition.........................................................................................................................7
1.2 Why Investment Is Important?..........................................................................................................7
1.3 Mutual fund.......................................................................................................................................8
CHAPTER 2 : REVIEW OF LITERATURE........................................................................................................36
CHAPTER 3 : RESEARCH AND METHODOLOGY..........................................................................................51
CHAPTER 4 : DATA ANALYSIS AND INTERPRETION....................................................................................53
CHAPTER 5: FINDING.................................................................................................................................65
CHAPTER 6 : SUGGESTION.........................................................................................................................66
CHAPTER 7 : CONCLUSION.........................................................................................................................67
CHAPTER 8 : REFERENCE............................................................................................................................68

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CHAPTER-1  : INTRODUCTION
1.1 Merger & Acquisition
In general, to invest is to distribute money in the expectation of some benefit in the future.
For example, investment in durable goods, in real estate by the service industry, in factories
for manufacturing, in product development, and in research and development. However, this
article focuses specifically on investment in financial Assets.

In general, to invest is to distribute money in the expectation of some benefit in the future.
For example, investment in durable goods, in real estate by the service industry, in factories
for manufacturing, in product development, and in research and development. However, this
article focuses specifically on investment in financial Assets.

In finance, the benefit from investment is called a return. The return may consist of a profit
from the sale of property or an investment, or investment income including dividends,
interests, rental income etc., or a combination of the two. The projected economic return is
the appropriately discounted value of the future returns. 

Investors generally expect higher returns from riskier investments. When we make a low risk
investment, the return is also generally low. 

Investors, particularly novices, are often advised to adopt a particular investment strategy
and diversify their portfolio. Diversification has the statistical effect of reducing overall risk. 

1.2 Why Investment Is Important?

Investing ensures present and future long-term financial security. The money generated from
your investments can provide financial security and income. One of the ways investments
like stocks, bonds, and ETFs provide income is by way of a dividend. This is an amount paid
to shareholders simply for holding the investment. Because many investments pay monthly,
quarterly, or annual distributions, you can enjoy passive income that ultimately could replace
your pay cheque if you want to retire or become financially independent; investing is the way
to do it.

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1. Long term investment helps you to create wealth. 
2. A retirements focused investment plan can ensure that you stay financially
independent even after you stop earning 
3. You can reach all your financial goals by investing wisely 
4. At a later stage in life, you can start your own business by using the wealth generated by
investments 
5. You can invest in products that offer tax benefits and can save on a good amount of 
Tax. 

1.3 Mutual fund 

DEFINITION:
According to Reg. 2(q) of SEBI Regulations, 1996 - mutual fund means a fund established in
the form of a trust to raise monies through the sale of units to the public or a section of the
public under one or more schemes for investing in securities including money market
instruments or gold or gold related instruments or real estate assets: Provided that
infrastructure debt fund schemes may raise monies through private placement of units.
subject to conditions specified in these regulations. 

FEATURES 

Key features of a mutual fund that flows from the definition above are: 
 It is established as a trust.
 It raises moneys through sale of units to the public or a section of the public.
 The units are sold under one or more schemes.
 The schemes invest in securities (including money market instruments) or gold or
gold- related instruments or real estate assets.

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Mutual fund is a financial intermediary which collects savings of the people for secured and
profitable investment. The main function of mutual fund is to mobilize the savings of the
general public and invest them in stock market securities. The entire income of mutual fund
is distributed among the investors in proportion to their investments- Expenses for managing
the fund are charged to the fund, like mutual funds in India are registered as trusts under the
Indian Trust Act. The trustees are appointed and they look after the management of the trust.
They decide the investment policy and give the benefit of professional investment through
the mutual funds. These funds are managed by financial and professional experts. The
savings collected from small investors are invested in a safe, secured and profitable manner.
Therefore, it is said that mutual fund is a boon to the small investors. UTI had virtual
monopoly in the field of mutual fund from 1964 to 1987. After 1987, State Bank of India,
Bank of India and other banks started their mutual funds. After 1991 (due to economic
liberalization) many financial institutions started their mutual funds (e.g. Kothari Pioneer
Fund, CRB Capital Markets and so on).

1.4 Mutual Fund Concept 

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
Instruments such as shares, debentures and other securities. The income earned through these
investments and the capital appreciation realized is shared by its unit 
holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most
suitable investment for the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. 

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1.5 History of mutual funds in India 

A strong financial market with broad participation is essential for a developed economy.
With this broad objective India's first mutual fund was establishment in 1963, namely, Unit
Trust of India (UTI), at the initiative of the Government of India and Reserve Bank of India
‘with a view to encouraging saving and investment and participation in the income, profits
and gains accruing to the Corporation from the acquisition, holding, management and
disposal of securities. 
In the last few years the MF Industry has grown significantly. The history of Mutual Funds
in India can be broadly divided into five distinct phases as follows: 

FIRST PHASE - 1964-1987 

The Mutual Fund industry in India started in 1963 with formation of UTI in 1963 by an Act
of Parliament and functioned under the Regulatory and administrative control of the Reserve
Bank of India (RBI). 

SECOND PHASE - 1987-1993

ENTRY OF PUBLIC SECTOR MUTUAL FUNDS 

The year 1987 marked the entry of public sector mutual funds set up by Public Sectorbanks
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, Punjab National Bank Mutual Fund (Aug. 1989), Bank of India (Jun 1990),
Bank of Baroda Mutual Fund (Oct. 1992). 

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THIRD PHASE - 1993-2003

ENTRY OF PRIVATE SECTOR MUTUAL FUNDS 

The Indian securities market gained greater importance with the establishment of SEBI in
April 1992 to protect the interests of the investors in securities market and to promote the
development of, and to regulate, the securities market. In the year 1993, the first set of SEBI
Mutual Fund Regulations came into being for all mutual funds, except UTI. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton MF) was the first private sector MF
registered in July 1993. With the entry of private sector funds in 1993, a new era began in the
Indian MF industry, giving the Indian investors a wider choice of MF products. 

FOURTH PHASE - SINCE FEBRUARY 2003 - APRIL 2014 

In February 2003, following the repeal of the Unit Trust of India Act 1963, UTI was
bifurcated into two separate entities, viz., the Specified Undertaking of the Unit Trust of
India (SUUTI) and UTI Mutual Fund which functions under the SEBI MF Regulations. With
the bifurcation of the erstwhile UTI and several mergers taking place among different private
sector funds, the MF industry entered its fourth phase of consolidation. 

FIFTH (CURRENT) PHASE – SINCE MAY 2014 

Taking cognizance of the lack of penetration of MFs, especially in tier II and tier III cities,
and the need for greater alignment of the interest of various stakeholders, SEBI introduced
several progressive measures in September 2012 to "re-energize" the Indian Mutual Fund
industry and increase MFs' penetration. 
In due course, the measures did succeed in reversing the negative trend that had set in after
the global melt-down and improved significantly after the new Government was formed at
the Center. 

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1.6 SHARE MARKET 

The stock market refers to the collection of markets and exchanges where the regular
activities of buying, selling and issuance of shares of publicly held companies take place.
Such financial activities are conducted through institutionalized formal exchanges or over-
the-counter (OTC) marketplaces which operate under the defined set of regulations. There
can be multiple stock trading venues in a country or a region which allow transactions in
stocks and other forms of securities. While both the terms - stock market and stock exchange
- are used interchangeably, the former term is a general superset of the latter. If one says that
he trades in the stock market, it means that he buys and sells shares/equity on one (or more)
of the stock exchange(s) that are part of overall stock market.

1.7 History of Indian Share Market 

The Indian stock market traces its history back to the late 18th century when the trading floor
was under the shade of a sprawling banyan tree opposite the Town Hall in Mumbai. A few
people would meet under this tree to informally trade in cotton. This was mainly due to the
fact that Mumbai was a busy trading port and essential commodities were traded here often.
The Companies Act was introduced in 1850 following which investors started showing an
interest in corporate securities. The concept of limited liability also put in an appearance
around this time. By 1875, an organization known as “The Native Share and Stock Broker's
Association came into being. 
This was the predecessor of the BSE .In 1894, the Ahmedabad Stock Exchange came into
being primarily with the objective of enabling dealing in the shares of textile mills in the
city.Txhe Calcutta Stock Exchange was formed in 1908 with the intention of facilitating a
market for shares of plantations and jute mills It was in 1920 that the Madras Stock
Exchange took shape.In 1957, the BSE was the first stock exchange to be recognized by the
Government of India under the Securities Contracts Regulation Act.The SENSEX was
launched in 1986 followed by the BSE National Index in 1989. The Securities and Exchange

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Board of India (SEBI) was constituted in 1988 to monitor and regulate the securities industry
and stock exchanges. In 1992 it became an autonomous body with completely independent
powers.In 1992, the NSE was formed as the first demutualized electronic exchange in the
country with the intention of ensuring transparency in the markets.NSE began operations in
the Wholesale Debt Market (WDM) segment in 1994, the equities segment in 1994, and the
derivatives segment in 2000.It was in 1995 that the BSE made the switch to an electronic
system of trading from the open-floor system. Today, the BSE is measured as the world's
11th largest stock exchange and the market capitalization is likely to be around $1.7 trillion.
The market capitalization of the NSE is estimated to be over $1.65 trillion.Over 5,000
companies are listed on the BSE and 1,500 figure on the NSE. In terms of share trading
volumes, still, both the exchanges are on parity. Nowadays people are able to conduct online
trading sitting in the comfort of their home. Facilities such as zero brokerage demat and live
updates are all available with the help of internet.A stock market, equity market or share
market is the aggregation of buyers and sellers (a loose network of economic transactions,
not a physical facility or discrete entity) of stocks (also called shares), which represent
ownership claims on businesses, these may include securities listed on a public stock
exchange, as well as stock that is only traded private.

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MUTUAL FUND 

(A) Objective of Mutual Fund Growth Funds:

The most common objective of investment is growth. The primary objective of any growth
fund is capital appreciation over the medium to long term. Growth mutual funds are
generally invested primarily in small to large cap stocks. 
Income Funds: Here the objective is current income in certain intervals as opposed to capital
appreciation. These funds are suitable for investors, who are looking for cash flow to
supplement their income. To ensure steady income, major portion of the asset is invested in
income instruments viz. fixed interest debentures, bonds, preference stocks and dividend
paying stocks etc. 

Sector/Industry Funds:
These funds aims at investing only in specific sectors or industries, such as real estate or
healthcare. The main objective behind these funds is to maximizing the return by exploiting
the growth of booming sectors. 

Value Funds:
This funds generally aims at investing in stocks that are deemed to be undervalued in price
because of some inherent inefficiencies of the Market. It is expected that, once the market
corrects these inefficiencies, the stock price will rise thus benefitting the investor. 

(B) Types of Mutual fund 

1. Equity mutual funds:

These funds invest a maximum part of their corpus into equities holdings. The structure of
the fund may vary different for different schemes and the fund manager's outlook on
different stocks. Equity investments are meant for a longer time horizon, thus Equity funds
rank high on the risk-return matrix. 

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2. Debt mutual funds:

The objective of these Funds is to invest in debt papers. Government authorities, private
companies, banks and financial institutions are some of the major issuers of debt papers. By
investing in debt instruments, these funds ensure low risk and provide stable income to the
investors. 

3. Balanced funds:

As the name suggest they are a mix of both equity and debt Funds. They invest in both
equities and fixed income securities, which are in line with pre-defined investment objective
of the scheme. These schemes aim to provide investors with the best of both the worlds.
Equity part provides growth and the debt part provides stability in returns. More than 43
mutual funds are operating in India. 

4. Money market funds:

These funds invest in short-term fixed income securities such as government bonds, treasury
bills, bankers' acceptances, commercial paper and certificates of deposit. They are generally
a safer investment, but with a lower potential return then other types of mutual funds.
Canadian money market funds try to keep their net asset value (NAV) stable at $10 per
security. 

5. Fixed income funds:

These funds buy investments that pay a fixed rate of return like government bonds,
investment-grade corporate bonds and high-yield corporate bonds. They aim to have money
coming into the fund on a regular basis, mostly through interest that the fund earns. High-
yield corporate bond funds are generally riskier than funds that hold government and
investment-grade bonds. 

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(E) Advantages of mutual fund:

Diversification:

One rule of investing, for both large and small investors, is asset diversification.
Diversification involves the mixing of different types of investments within a portfolio and is
used to manage risk. To achieve a truly diversified portfolio, you may have to buy stocks
with different capitalizations from different industries and bonds with varying maturities
from different issuers 

Economies of Scale:

The easiest way to understand economies of scale is by thinking about volume discounts, in
many stores, the more of one product you buy, the cheaper that product becomes. This also
occurs in the purchase and sale of securities. If you buy only one security at a time, the
transaction fees will be relatively large. 

Mutual funds are able to take advantage of their buying and selling volume to reduce
transaction costs for investors. When you buy a mutual fund, you are able to diversify
without the numerous commission charges. 

Divisibility:  

Many investors don't have the exact sums of money to buy round lots of securities. One or
two hundred dollars is usually not enough to buy a round lot of a stock, especially after
deducting commissions. Smaller denominations of mutual funds provide mutual fund
investors the ability to make periodic investments through monthly purchase plans while
taking advantage of dollar-cost averaging 

Liquidity:

Another advantage of mutual funds is the ability to get in and out with relative ease. In
general, you are able to sell your mutual funds in a short period of time without there being

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much difference between the sale price and the most current market value. Also, unlike
stocks and exchange-traded funds (ETFs), which trade any time during market hours, mutual
funds transact only once per day after the fund's nct asset value (NAV) is calculated 

(E). Disadvantages of mutual fund 

Fluctuating Returns: 

Like many other investments without a guaranteed return, there is always the possibility that
the value of your mutual fund will depreciate. Equity mutual funds experience price
fluctuations, along with the stocks that make up the fund. Of course, almost every investment
carries risk. But it's especially important for investors in money market funds to know that,
unlike their bank counterparts, these will not be insured by the FDIC. 

Cash:

As you know already, mutual funds pool money from thousands of investors, so every day
people are putting money into the fund as well as withdrawing it. To maintain the capacity to
accommodate withdrawals, funds typically have to keep a large portion of their portfolios in
cash. Having ample cash is great for liquidity, but money sitting around as cash is not
working for you and thus is not very advantageous, 

Costs: 

Mutual funds provide investors with professional management, but it comes at a cost - those
expense ratios mentioned earlier. These fees reduce the fund's overall payout, and they're
assessed to mutual fund investors regardless of the performance of the fund. As you can
imagine, in years when the fund doesn't make money, these fees only magnify losses. 

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Lack of Transparency: 

One thing that can lead to diversification is the fact that a fund's purpose or makeup isn't
always clear. Fund advertisements can guide investors down the wrong path. The Securities
and Exchange Commission (SEC) requires that funds have at least 80% of assets in the
particular type of investment implied in their names; how the remaining assets are invested is
up to the fund manager. 

(F) Reason to buy mutual fund 

1. Built-in diversification:

When you buy a mutual fund, your money is combined with the money from other investors,
and allows you to buy part of a pool of investments. A mutual fund holds a variety of
investments which can make it easier for investors to diversify than through ownership of
individual stocks or bonds. Not all investments perform well at the same time. Holding a
variety of investments may help offset the impact of poor performers, while taking advantage
of the earning potential of the fest. This is known as diversification. Before you decide on a
mutual fund, figure out how it fits with the rest of the investments you own and your overall
financial goals 

2. Professional management: 

You may not have the skills and knowledge to manage your own investments or want to
spend the time. Mutual funds allow you to pool your money with other investors and leave
the specific investment decisions to a portfolio manager Portfolio managers decide where to
invest the money in the fund, and when to buy and sell investments 

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3. Easy to buy and sell: 

Mutual funds are widely available through banks, financial planning firms, investment firms,
credit unions and trust companies. You can sell your fund units or shares at almost any time
if you need to get access to your money. But you may get back less than you invested. 

4. A wide range of funds to choose from:

Mutual funds can be used to meet a variety of financial goals. For example: A young investor
with a stable income and many years to invest may feel comfortable taking more risk to
achieve greater potential return. They may invest in an equity fund, A mid-career investor
trying to balance risk and return more moderately could invest in a balanced mutual fund that
buy a mix of stocks and bonds An investor approaching retirement might be less comfortable
with risk and more interested in fixed income investments. They may invest in a bond fund.

(G) Risk management in mutual fund

How mutual funds can help in risk management? 

A mutual fund is not an investment in itself, but an investment vehicle, that allows you to get
a slice of various asset classes such as equity, debt and even real estate & gold. Mutual funds
provide adequate diversification and an investor can easily use mutual funds to spread risks
and keep his/her portfolio safe. If you choose your mutual funds carefully, they can serve as
a good asset allocation tool that will help you balance your risks and maximize your returns. 
Let's take a closer look at the various risks you are exposed to as an investor and h ow mutual
funds can help in managing them. 

Volatility risk: 

Volatility is a word that is synonymous with the markets, be it equities, debt or any other
asset class for that matter. You cannot invest in the markets and expect that there will be no
volatility at all. You can however protect yourself against it by using systematic investment

20
plans or SIPs of mutual funds. In SIPs you put in small amounts of money at periodic
intervals (weekly/monthly quarterly). 

Concentration risk:

As an investor who has just been introduced to capital markets, it is easy to get carried away
and overexpose yourself to a particular asset class. The lure of making quick gains when a
particular stock/sector or asset class is performing well, may seem hard to ignore. However,
by doing that you are putting all your eggs in one basket, thereby increasing your risk. In
case the sector or the asset class makes a journey downhill, you will find yourself in the
midst of a loss. 

Taxation and inflation risk: 

Taxation and inflation are the two things you simply cannot avoid as an investor. If you do
not pick investment products that beat inflation and are tax efficient, your portfolio will not
perform to its maximum potential. While Public Provident Fund (PPF) is a tax-efficient
option over investments like bank fixed deposits and post office deposits which are taxable,
it is important to know that it still holds inflationary risk 

(H) Important Points you must know while investing in mutual fund 

1. Investment objective: 

Every mutual fund scheme, irrespective of the category - whether equity or debt has an
investment objective. It is this investment objective which entails them to invest in various
asset classes in defined proportions. As investors it is imperative to check the investment
objective of the respective mutual fund scheme, and thereby see whether it suits your
objective of investing as well. For example, if you have an objective of capital appreciation
with a long-term investment horizon in mind and is willing to take high risk, then you should

21
be looking at equity oriented mutual funds. Similarly if you are a risk-averse investor, you
should be looking at suitable debt mutual fund schemes (depending upon your investment
time horizon). 

2. Investment style 

Further depending upon your risk appetite, you can also structure your mutual fund portfolio
as per market capitalization bias (i.e. large cap, mid cap, small & micro-cap, multi cap and
flexi cap) and fund management style (i.e. opportunities style, value style, growth style and
blend style). While one may argue over how the layman can judge which market cap bias
and investment style the mutual fund scheme follows, we would like to apprise you that it's
all there in the mutual fund scheme's offer document, which you ought to read well before
parking your hard earned money, 

3. Fund performance :
 
The past performance of a mutual fund scheme is important in analyzing a nutual fund. But
remember that, past performance is not everything, as it may or may not be Sustained in
future and therefore should not be used as the only parameter to select winning mutual funds.
While during good times your mutual fund distributor in pomp, may exhibit you
performance charts and tables, you also need to evaluate them in context to: Risk they have
exposed you to Risk-adjusted returns clocked Portfolio which they held (and its
characteristics) How often the fund has churned its portfolio 

4. Expense ratio: 

Like any other organisation, a mutual fund house also incurs annual expenses (such as
administrative costs, management fees, etc.) to run it business. Expense Ratio is the
percentage of assets that go towards these expenses. Every time the fund manager churns his
portfolio he pays a brokerage fee, which is ultimately borne by investors in the form of an

22
Expense Ratio. It is noteworthy that, higher churning not only leads to higher risk, but also
higher cost to the investor for all the brokerage charges and taxes incurred on every trade.
Costs are always there and are deducted immediately, but the returns and a higher NAV are a
hope for all investors. Hence it is always recommend to select a mutual fund scheme, which
has got a low expense ratio as compared to its peers. 

5. Exit load:
 
Likewise, you should also be checking the exit load which a respective mutual fund scheme
would charge. An exit load is levied when you sell your units of a mutual fund within a
particular tenure; most funds charge if the units are sold within a year from date of purchase.
As exit load is a fraction of the NAV, it eats into your investment value. Thus it is imperative
that you invest in a fund with a low exit load, and more importantly stay invested for the
long-term.

6. Investor service and transparency:

Services offered by mutual fund houses may vary across funds. Some fund houses are More
investor friendly than others, and offer information at regular intervals. For instance, fact
sheets of some mutual fund schemes are not disclosed in entirety, where the undisclosed
portfolio holds a large composition, thus making one wonder in which securities is the
money parked by the fund house. 

7. The tax implications:

Many a time's investors go by the word of their mutual fund distributor / agent / relationship
manager and invest in mutual funds. While we aren't debating about quality of the advice
they provide (on a respective mutual fund scheme per se), we think that it is necessary for
you to be aware of the tax implications of a respective mutual fund schemes. 

23
(1) Golden rules of investing in mutual fund 

1).Thou shall invest for the long term. Long term means a minimum of five years and a
maximum of forever.

2).Thou shall undertake thorough research for investing in Mutual Funds and not trust thy
financial adviser, mom, dad, distant uncle blindly.

3).Thou shall not try to time the market and invest using a Systematic Investment Plan (SIP)
every month.

4).Thou shall not check the mutual fund Net Asset Value (NAV) daily and compare it  With
the returns of thy neighbor.

SHARE MARKET 

(A), OBJECTIVES OF SHARE MARKET. 

RAISING MONEY FOR BUSINESS:

Stock exchanges around the world enable companies around the world to raise money.
Nowadays, they're mostly electronic markets where licensed stock brokerages, and the
traders representing them, buy and sell shares. Through exchanges, private companies sell
stock in the form of publicly traded shares. Those wishing to invest in stock place buy or sell
orders through regulated brokerage firms. 

CAPITAL FORMATION:

The primary function of a stock exchange is to help companies raise money. To accomplish
this task, ownership in a private corporation is sold to the public in the form of shares of

24
stock. Funds received from the sale of stock contribute to the firm's capital formation
Companies plan to use the newly-raised funds to invest in productive business assets and
grow revenues and profits. This positive business expansion then may be reflected in a
higher stock trading price. 

SECURITY AND TRANSPARENCY:

The legitimate sale of stock on any exchange requires reliable and accurate information. By
requiring a high level of transparency from all trading companies, the stock exchange creates
a more secure environment for investors, which helps them to determine the risks of
investing. 

TRADING OF STOCKS:

An organized and regulated stock exchange facilitates the efficient trading of stock and other
investment vehicles. Without this highly controlled and coordinated stock exchange, the
global trading of stock would not be possible. Through the stock exchange, any individual or
company may buy or sell shares in another company. In fact at any one time, there are
thousands of company shares being traded through millions of individual transactions. 

Features of stock exchange are: 

1. Market for securities: Stock exchange is a market, where securities of corporate bodies,
government and semi-government bodies are bought and sold. 

2. Regulates trade in securities: Stock exchange does not buy or sell any securities on its own
account. It merely provides the necessary infrastructures and facilities for trade in securities
to its members and brokers who trade in securities. It regulates the trade activities so as to
ensure free and fair trade. 

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3. Association of persons: A stock exchange is an association of persons or body of
individuals which may be registered or unregistered. 
4. Working as per rules: Buying and selling transactions in securities at the stock exchange
are governed by the rules and regulations of stock exchange as well as SEBI Guidelines. No
deviation from the rules and guidelines is allowed in any case. 

5. Deals in second hand securities: It deals with shares, debentures bonds and such securities
already issued by the companies. In short it deals with existing or second hand securities and
hence it is called secondary market. 

(C).WHY DO WE INVEST IN SHARE MARKET? 

There are namely TWO main stock markets in India are as follows: 

NATIONAL STOCK EXCHANGE (NSE):

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India,
located in Mumbai. The NSE was established in 1992 as the first demutualized electronic
exchange in the country. NSE was the first exchange in the country to provide a modern,
fully automated screen-based electronic trading system which offered easy trading facility to
the investors spread across the length and breadth of the country. Vikram Limaye is
Managing Director & Chief Executive Officer of NSE. 
National Stock Exchange has a total market capitalization of more than US$2.27 trillion,
making it the world's 11th-largest stock exchange as of April 2018.[1] NSE's flagship index,
the NIFTY 50, the 50 stock index is used extensively by investors in India and around the
world as a barometer of the Indian capital markets. Nifty 50 index was launched in 1996 by
the NSE. [2] However, Vaidyanathan (2016) estimates that only about 4% of the Indian
economy / GDP is actually derived from the stock exchanges in India. 

26
BOMBAY STOCK EXCHANGE (BSE): 

Bombay stock Exchange was founded by Premchand Roychand. He was one of the most
influential businessmen in 19th-century Bombay. A man who made a fortune in the
stockbroking business and came to be known as the Cotton King, the Bullion King or just the
Big Bull. He was also the founder of the Native Share and Stock Brokers 
Association, an institution that is now known as the BSE. While BSE Ltd is
now Synonymous with Dalal Street, it was not always so. The first venue of the earliest stock
broker meetings in the 1850s was in rather natural environs - under banyan trees - in front of
the Town Hall, where Horniman Circle is now situated. A decade later, the brokers moved
their venue to another set of foliage, this time under banyan trees at the junctior of Meadows
Street and what is now called Mahatma Gandhi Road. The Bombay Stock Exchange is the
oldest stock exchange in Asia. [7] Its history dates back to 1855, when 22 stockbrokers [8]
would gather under banyan trees in front of Mumbai's Town Hall. The location of these
meetings changed many times to accommodate an increasing number of brokers. The group
eventually moved to Dalal Street in 1874 and became an official organization known as "The
Native Share & Stock Brokers Association" in 1875.On August 31, 1957, the BSE became
the first stock exchange to be recognized by the Indian Government under the Securities
Contracts Regulation Act. In 1980, the exchange moved to the Phiroze Jeejeebhoy Towers at
Dalal Street, Fort area.

Primary Market:

The primary market is where securities are created. It's in this market that firms sell (float)
new stocks and bonds to the public for the first time. An initial public offering, or IPO, is an
example of a primary market. These trades provide an opportunity for investors to buy
securities from the bank that did the initial underwriting for a particular stock. An IPO occurs
when a private company issues stock to the public for the first time. 

27
For example, company ABCWXYZ Inc. hires five underwriting firms to determine the
financial details of its IPO. The underwriters detail that the issue price of the stock will be
$15. Investors can then buy the IPO at this price directly from the issuing company. 
This is the first opportunity that investors have to contribute capital to a company through the
purchase of its stock. A company's equity capital is comprised of the funds generated by the
sale of stock on the primary market. 

Secondary Market: 

For buying equities, the secondary market is commonly referred to as the "stock market."
This includes the New York Stock Exchange (NYSE), NASDAQ and all major exchanges
around the world. The defining characteristic of the secondary market is that investor's trade
among themselves. 
That is, in the secondary market, investor's trade previously issued securities without the
issuing companies' involvement. For example, if you go to buy Amazon (AMZN) stock, you
are dealing only with another investor who owns shares in Amazon. Amazon is not directly
involved with the transaction. 

1. Auction market:

In the auction market, all individuals and institutions that want to trade securities congregate
in one area and announce the prices at which they are willing to buy and sell. These are
referred to as bid and ask prices. The idea is that an efficient market should prevail by
bringing together all parties and having them publicly declare their prices. Thus,
theoretically, the best price of a good need not be sought out because the convergence of
buyers and sellers will cause mutually-agreeable prices to emerge. The best example of an
auction market is the New York Stock Exchange (NYSE). Dealer market: In contrast, a
dealer market does not require parties to converge in a central location. Rather, participants
in the market are joined through electronic networks. The dealers hold an inventory of a
security, then stand ready to buy or sell with market participants. These dealers earn profits

28
through the spread between the prices at which they buy and sell securities. An example of a
dealer market is the NASDAQ, in which the dealers, who are known as market makers,
provide firm bid and ask prices at which they are willing to buy and sell a security. The
theory is that competition between dealers will provide the best possible price for invest. 

(D). Advantages of share market 

Investment Gains One of the primary benefits of investing in the stock market is the chance
to grow your money. Over time, the stock market tends to rise in value, though the prices of
individual stocks rise and fall daily. Investments in stable companies that are able to grow
tend to make profits for investors. Likewise, investing in many different stocks will help
build your wealth by leveraging growth in different sectors of the economy, resulting in a
profit even if some of your individual stocks lose value. 

Dividend Income: 

Some stocks provide income in the form of a dividend. While not all stocks offer dividends,
those that do deliver annual payments to investors. These payments arrive even if the stock
has lost value and represent income on top of any profits that come from eventually selling
the stock. Dividend income can help fund a retirement or pay for even more investing as you
grow your investment portfolio over time.

Diversification or investors who put money into different types of investment products, a
stock market investment has the benefit of providing diversification Stock market 
investments change value independently of other types of investments, such as bonds 
real estate. Holding stock can help you weather losses to other investment products, Stock
also adds risk to a portfolio, as well as the potential for large, rapid 
gains, helping investors avoid risk-averse or overly conservative investment strategies. 

29
Ownership Buying shares of stock means taking on an ownership stake in the company you
purchase stock in. This means that investing in the stock market also brings benefits that are
part of being one of a business's owners. Shareholders vote on corporate board members and
certain business decisions. They also receive annual reports to learn more about the
company. Owning stock in the company you work for can be a way to express loyalty and tie
your personal finances to the success of the business as a whole. 

Easy Liquidity:

It is the very first benefits of investing, In stock market shares and securities are traded in
very high volume which make it a volatile market so there is very easy liquidity in stock
market, like if you want to turn your investment in stock market into cash then you can do
that very easily. 

Flexibility:

Investing in stock market is v prices at every trade session flexibility of this market. 
in stock market is very flexible like the market have ups and downs in every trade session,
price of stock market moves with the rapidity and 

(E). Disadvantages of share market 

Volatile Investments: 

Investment in BSE is subjected to many risks since the market is volatile. The shares 
of a company go up and come down so many times in just a single day. These price
fluctuations are unpredictable most of the times and the investor sometimes have to 
face severe loss due to such uncertainty. 

30
Brokerage Commissions Kill Profit Margin Every time an investor buys or sells his shares,
he has to pay some amount as a brokerage commission to the broker, which kills the profit
margin. 

Time Consuming: 

Investment in NSE is not as easy as investing in a lottery as you have to complete many
formalities in the process and hence is time consuming. The stock market is a popular
investment choice and the value of stocks owned by investors is more than $15 trillion for
the two main stock exchanges located in the U.S., according to the World Federation of
Exchanges. For many individual investors there are some good reasons to not be invested in
the stock market. Understanding the disadvantages of stock market investing will help an
investor decide if the market is the right choice. 

Not Suitable to Provide Retirement Income:

An individual at retirement age may not want a large proportion of retirement assets in the
stock market. A retiree needs regular income and many stocks pay little or no dividends. To
provide money for living expenses, shares of stock would have to be sold, reducing the
portfolio and incurring commissions.

Large Number of Choices:

Investors that want to invest in choices. The Wilshire and includes over 6,000 stock lot of
time, education and a portfolio. The size and to invest in the market may be discouraged by
the large number of Wilshire 5000 stock market index covers the entire U.S. stock market
over 6,000 stocks. There are over 4,000 stock mutual funds. It can take a ducation and effort
to research the market and select an appropriate stock The size and complexity of the stock
market makes it difficult for an  investor to successfully meet investment goals, 

31
Risks of Ownership: 

Stock is owning part of a corporation. If the corporation declares bankruptcy, 

the owners or shareholders are last in line to receive any provrate 
Leakup or reorganization. In most cases if a company goes bankrupt the shareholders 
eive nothing for their shares. Very large and well know companies have gone bankrupt. The
list includes General Motors in 2009, Lehman Brothers in 2008 and 
Enron in 2001. 

(F). Reason to Invest in Stock Market 

There's more than one way to invest. Investing can be done on a micro-level with individual
stocks or on a macroeconomic level by purchasing a basket of indexes that map back to the
Standard and Poor's 500 index or other global benchmarks. 
"You can invest in mutual funds but those come with higher fees," Seiden says. "You can
invest in individual stocks, which will tend to have the biggest market moves, or ETFs. You
can also invest in options on the stock market, which offers lower capital investing and more
customized strategies." 
"A lot of investors have a certain perception of what they should be doing," she says. "A lot
of new investors think they should invest 90 or 100 percent in equities because they have a
long time to retire." market is designed to go up over time . Due to 401(k) programs and
other retirement plans, there are huge there are huge direct investments into the stock market
each month that usually force prices higher, Seiden savs 
"When a company in the S&P 5 perform well, the exchange any in the S&P 500, Nasdaq, or
Dow Jones industrial average doesn't helping prop up prices, " Seiden says. 
all the exchange simply removes it and replaces it with a better one. because 
as it is in Wall Street's best interest to have stock market prices move higher many of the
firm's own much of the stock themselves. 
inflation. While there isn't a 100 percent guarantee, the stock market may help stors earn
more money since equities have historically been known to keep up ith or exceed inflation

32
rates. According to J.P. Morgan Asset Management, the 50 or average for the consumer price
index, which is used to gauge inflation rates, is 4.1 percent. 
"You want to make sure your money is outpacing inflation," Johndrow says, which helps
with retaining purchasing power in the long term. 
For example, more than 50 years ago, the price of a Coke (ticker: KO) was 5 cents. "If you
asked people to pay $1.50 back then, they would say you were crazy, but that's what we are
paying today," Johndrow says. 
Compound your interest. Getting in early and saving often is always better. 
For example, if an investor begins investing $3,600 per year at age 25 for 15 years at an 8
percent interest rate and then stops, she will have earned $1,050,000 by age 70, Johndrow
says. 
If another investor begins investing $3,600 per year at age 40 and does it for 30 years 
at an 8 percent interest rate, she will only have earned $450,000. 
Mitigate your risk with diversification. Although you can't completely remove risk, 
It's been historically shown that when you diversify with more asset classes you may be able
to get a better return, Johndrow says. If one holding or particular sector of the market
underperforms, other investments will hopefully help balance out the rest of the portfolio To
mitigate the risk, John Burke, president at Burke Financial Strategies in Iselin, New Jersey,
says investors need to stay in the stock market a minimum of three years. 

FACTORS 

The various parameters that affect the decision making of investors in mutual fund industry
can be categorized as: 

Risk Factors:

The investments in the mutual fund and securities are subjected to market risk and the NAV
of the schemes may vary depending upon the factors and forces affecting the securities

33
market. In this respect, the offer documents/SAI/SID/KIM may be helpful to the investors.
All mutual funds also required to disclose the risk factors in their offer documents 

Awareness Factors: 

From investor's point of view, the level of awareness of mutual funds can be termed as the
first and foremost stage for investment in any such fund. A survey says that if the investors
have been provided more funds, 50 per cent of the investors would like to invest in the Real
Estate, followed by 23 per cent in Mutual Funds and only 2 per cent in Equity Shares.
Another survey stated that high salaried and high income self-employed are major investor
due to tax concessions.

Specialization Factors: 

In the context of specialization, li text of specialization, financial literacy plays a vital role.
Financial literacy mutual funds are to extend their reach to smaller towns. The financial
Juledee is needed to fully participate in the economy or to make informed 
about own financial futures. A financial ignorant person suffers from 
decisions about own financial diseases like underinsurance, debt trap, insufficient retirement
funds and return on investment. Three-fourth of Indian adults do not adequately understand
bay financial concepts such as inflation, compound interest and risk diversification. 
Standard & Poor's Ratings Services said. 

Liquidity Factors: 

Before the global financial crisis liquidity factors of any investment was not on everybody's
radar. Liquidity risk can be categorized as: 1. Funding (cash flow) liquidity: It tends to
manifest a credit risk that is inability to fund liability produces defaults. The basic ways of its
measurement are current ratios and quick ratios.2. Market (Asset) liquidity: It tends to
manifests as market risks that is inability to sell an asset at time of requirement i.e. the

34
market price indecipherability of a stock. The market liquidity of an investment can be
measured in respect of width (bid ask spread), depth (position size) and resiliency 

Consistency Factors: 

The investments in mutual funds depend upon the need of the investor. For example, debt
investments may not be appropriate for investors of short term objectives. For medium to
long term objectives, equity fund investments are advisable. Historical long term
performance, while a good indicator of fund's potential, does not guarantee future
performance. The consistency of a fund's performance can be measured in terms of its
performance with respect to its benchmarks and category average. In a bearish mode market,
the returns may be negative, but the funds that fall less than their benchmarks or category
average are outperformers. Similarly, in the bull market the outperformers are those that gain
more than their benchmarks or category averages.

Important points you must know investing in share market 

1. Never jump blindly into stock markets: 

Many a times it happens that while talking to your friends and colleagues, the discussion
heads towards the stock market, and also how the stock market helps investors make big
money. You might never have invested in the market, but after hearing about all those things
you also decide to buy some stocks. However, if you entered the market just to remain in the
mainstream fashion, you have landed in for the wrong reason. You should invest in the stock
market after getting the basic knowledge about it and in accordance with your financial
goals. 

2. Stock market is not a money-making machine:

35
You must have heard the story about many investors who made their fortune through the
market. Many believe that the stock market is like a money-making machine, which can turn
them into millionaires over a period of time. While some have been forced to sell their
personal assets to cover the loss in the market. 

3. Educate yourself, handle basics first:

Before making your first investment, take the time to learn the basics about the stock market
and the individual securities composing the market. There is an old adage: It is not a stock
market, but a market of stocks. Your focus will be upon individual securities which you are
investing in and the relationship with the broader economy and the factors that drive your
stock. Some important areas which you should be familiar with before entering the market
are: 

4. Invest only your surplus funds:

The biggest mistake newbie investors make is to invest money that they can't actually afford
to lose. Investing in the stock market is risky, and that means that you can potentially lose
everything. Like any investment, there are inherent risks associated with the stock market.
Some are the risks related to the overall market as systematic risk that you can't avoid by
diversifying your portfolio. 

5. Avoid Leverage:

Leverage simply means use of borrowed money to execute your stock market strategy. In a
margin account, banks and brokerage firms can lend you money to buy stocks. It 
funds great when the stock market is moving up, but consider the other side when the stock
market or your stock goes down. In that case your loss would not only erode vour initial
investment, but you will also have to pay interest to the broker.  

36
CHAPTER 2 : REVIEW OF LITERATURE

1. Walia and Kiran (2009) conducted the survey to analyze the risk and return perception of
investors regarding the mutual funds. The result showed that professionalism and good
customer services are the two factors that had an immense impact on the investor’s
perception regarding the mutual funds. Besides these two, the ood image also contributes
significantly in developing the investor’s perception

2. Simran Saini and Bimal Anjum (2011) had analyses the mutual fund investments in
relation to investor’s behavior that attract them to invest in mutual funds. Investor’s opinion
and perception has been studied relating to various issues like type of mutual fund scheme,
main objective behind investing in mutual fund scheme, level of satisfaction, role of financial
advisors and brokers, sources of information, deficiencies in the services provided by the
mutual fund managers, challenges before the mutual fund industry etc.

3. Ahmed et al. (2011) also studied and used the dimension of Investor’s perception. They
conducted a study to examine the perception of investors towards risk and return in
investment opportunity. In this research, several demographic variables were taken into
account, but the study reveals that when investor is more educated, he/she will be more risk
tolerant and he will have a better understanding of the investment opportunities. The second
aspect of the research is the salary level or income. If investor’s income increases, he/she
can broaden their investment horizon and can make investment decision in a better way.

4. Saini et al. (2011) conducted a study in India to gauge the investors’ awareness and
perception about the mutual funds in India. The factors that had been taken into account in
the research were expertise, safety, liquidity, diversification, tax benefit, regular income, and
regular savings. Factors that attract the investors the most were the fund’s past performance,
past dividend records and stability of the return. Study also revealed that in India, main
objective of investors for opting to invest in mutual funds is the tax benefits which were
followed by high return and the safety that the mutual funds provide. This study also

37
revealed the fact that on the basis of age, occupation, and income, majority of the people
believe that through appropriate communication and providing necessary education to
investors for making an investment in mutual funds can encourage the investors to make
investments in various different mutual funds schemes. The research also highlighted that
Saini et al. (2011) conducted a study in India to gauge the investors’ awareness and
perception about the mutual funds in India. The factors that had been taken into account in
the research were expertise, safety, liquidity, diversification, tax benefit, regular income, and
regular savings. Factors that attract the investors the most were the fund’s past performance,
past dividend records and stability of the return. Study also revealed that in India, main
objective of investors for opting to invest in mutual funds is the tax benefits which were
followed by high return and the safety that the mutual funds provide. This study also
revealed the fact that on the basis of age, occupation, and income, majority of the people
believe that through appropriate communication and providing necessary education to
investors for making an investment in mutual funds can encourage the investors to make
investments in various different mutual funds schemes. The research also highlighted that
some of the major factors that are a matter of concern for most of the potential investors are
that the mutual funds managers often are unable to provide the necessary transparency,
periodical statements and the necessary information that are essential for the purpose
of creating good awareness.

5. Pandey (2011) focuses on the behavior aspect of the investor. His researched topic was
“Investor's Behavior: Mutual Funds”, In which he studied that in spite of several payments,
which mutual funds compromise to retail financiers, there are little risks convoluted while
capitalizing in this prospect. There can be downside risk associated, which is the risk
perceived of suffering financial damage caused by undesirable deviation of returns, certainly,
Mutual Funds is not a unwavering market, and the apparent variation in returns over a time
period leads towards market volatility. Beside with this type of risk, there is a persistent
sense of vagueness amongst financiers because of lack of statistics, information and absence
of self-competence

38
Priyanka Sharma and Payal Agrawal (2015) in their study made an attempt to understand the
effect of demographic factors in mutual fund investment decisions. The study reveals that the
investors’ perception is dependent on their demographic profile. Investor’s age, marital status
and occupation has a direct impact on investors’ choice of investment. The study further
reveals that the female segment is not fully tapped. The research also reveals that the
liquidity and transparency are some factors which have a high impact on investment
decisions.

6. Debasish (2009) studied the performance of selected schemes of mutual funds based on
risk and return models and measures. The study covered the period from April 1996 to
March 2005 nine years). The study revealed that Franklin Templeton and UTI were the best
performers and Birla Sun life, HDFC and LIC mutual funds showed poor performance.

7. Sondhi and Jain (2010) examined the market risk and investment performance of equity
mutual funds in India. The study used a sample of 36 equity fund for a period of 3 years. The
study examined whether high beta of funds have actually produced high returns over the
study period. The study also examined that open-ended or close ended categories, size of
fund and the ownership pattern significantly affect risk-adjusted investment performance of
equity fund. The results of the study confirmed with the empirical evidence produced by
fama 1992) that high beta funds market risks) may not necessarily produced high returns.
The study revealed that the category, size and ownership have been significantly determinant
of the performance of mutual funds during the study period.
8. Ali, Naseem and Rehman (2010) in their study examined the performance of 10 mutual
funds in which 5 were conventional and 5 were Islamic for the period from 2006 to 2008 by
using Sharpe and Treynor measures. The results found that the funds of Pakistan were able to
add more value either conventional or Islamic. The study also found that some of the funds
were underperformed, so these funds were facing diversification problems during the study
period.

39
9. Prabakaran and Jayabal (2010) evaluated the performance of mutual fund
Schemes. The study conducted a sample of 23 schemes were chosen as per the priority given
by the respondents in Dharmapuri district covered a period from April 2002 to March 2007.
The study used the methodology of Sharpe, Jensen and Fama for the performance evaluation
of mutual funds. The results of the study found that 13 schemes out of 23 schemes selected
had superior performance than the benchmark portfolio in terms of Sharpe ratio, 13 schemes
had superior performance of Treynor ratio and 14 schemes had superior performance
according to Jensen measure. The Fama’s measure indicated in the study that the returns out
of diversification were less. Thus, the India Mutual funds were not properly diversified.

10. Garg (2011) examined the performance of top ten mutual funds that was selected on the
basis of previous years return. The study analyzed the performance on the basis of return,
standard deviation, beta as well as Treynor, Jensen and Sharpe indexes. The study also used
Carhart’s four-factor model for analyze the performance of mutual funds. The results
revealed that Reliance Regular Saving Scheme Fund had achieved the highest final score.

11. Pasalkar, N.V. (2015) a comparative study of Mutual Fund Investment vs. Equity
Investment of Indian Individual Investors to compare mutual fund investment with direct
equity investment. To study the preferences of individual investors investing in mutual
funds. To study the present practices of mutual fund investors. Source: Primary data
Secondary data Sample size: 100 Respondents method: Simple random sampling Equity
investment is more favored. Proper education is required about mutual funds.

12. Shukla, S. (2015) A comparative performance evolution of selected mutual funds To

study the performance of selected mutual funds schemes under different 5 categories To
examine the return from the above selected mutual funds Source: Secondary data Tools:
Standard deviation, Beta, Alpha, R squared, Sharpe ratio All the funds are having positive
correlation with Nifty.

40
13. Ramanujam, V, Bhuvaneswari, A (2015) Growth and Performance of Indian Mutual
Fund Industry during Past Decade To analyses Growth of Asset Under Management to
analyze the growth of Asset under Management Institution Wise. To examine Sector wise
mutual fund sales and mutual fund redemption. To analyze the Scheme wise resource
mobilization by mutual fund to examine the total number of Schemes and Number of folios
Descriptive research Source: Secondary data Private sector has increased their asset base
manifold. The asset under management has shown growth in all the sectors.

14. Mane, P. (2016) A Study of Investors Perception towards Mutual Funds in the City of
Aurangabad to know investor view towards Mutual fund to know the awareness of mutual
fund in Aurangabad people to know the preference of people for investment Source: Primary
data Sample Size: 30 Tools: Chi Square Most of the people are hesitant in going for new age
investments like mutual funds. People prefer less risky investment.

15. Das (2008) identified the preferences of investors look for in investment products. They
have taken the sample size of 100 investors from two metros of Orissa state. They have used
Chi-Square, Two-way Anova, Rank correlation, t test, Z-test and Kendall’s Concordance test
for the analysis of data. On the basis of Anova the study find that investors have significant
differences in the pattern of investment with respect to their age and there has no difference
in the investment pattern on the basis of level of education. They concluded that majority of
investors like to invest in insurance followed by mutual funds. And 68% investors like to
invest in LIC as compared to ICICI.

16. Rao and Prashar (2010) identified the factors affecting perception of investors towards
mutual funds. They have conducted the study in three states namely: Rajasthan, Gujarat and
Madhya Pradesh. Sample size has taken 400 investors. The data has been analyzed with the
Factor analysis. They have extracted the different factors from different states. From Madhya
Pradesh the most important among them are monetary, investors expectation followed by
benefits and infrastructure, Schemes NAV followed by promotional measures and
miscellaneous. From Gujarat the most important among them are monetary and schemes

41
NAV, return, risk followed by image and benefits followed by investment preference and
advertisement. From Rajasthan the most important among them are promotional tools and
benefits, NAV and monetary, Risk and return followed by Investors preference and
Miscellaneous.

17. Das (2011) analyzed the influence of demographic factors on mutual funds, factors
influencing the mutual funds. He has also examined the problems in mutual funds and factors
affecting investors’ perceptions. He has collected the data through questionnaire, from the
period June-July 2011, from 250 small investors of Assam. He has applied percentage
method, cross tabulation and chi- square method for analysis. The study found that majority
of the respondents are males and the maximum investors belonged to the age between 35-45
years. He further found that there has a significant relationship between gender and investor
satisfaction. But there has no significant relationship between age, education, amount of
investment and income with that of satisfaction. Investors invest in mutual funds for tax
benefits followed by high returns, safety, regular incomes and liquidity. He found the
managers lack experience.
18. Gupta (2011) examined the investor’s perception regarding mutual funds and fixed
deposits and they have also evaluated the relation between mutual funds and occupation of
the investors. Sample size of the study has taken 100 investors and the data has been
analyzed with Z test and Chi- square test. The findings of the study revealed that 88 % of
investors are willing to invest in mutual funds. Z test showed that mutual funds are not more
significant than fixed deposits and the investment done in near future in mutual fund is not
statistically significant.

19. Saini, Anjum and Saini (2011) evaluated the investor’s awareness and perception
regarding mutual funds in India and to know the growth and major deficiencies in the
working of mutual funds in India. They have taken the sample of 200 investors by using
stratified sampling. They have analyzed the data through Chi-Square test. The major findings
of the study revealed that investors invested in the mutual funds for tax benefits followed by
high return and safety. Age has significant relation with the factors that can win back the

42
investors’ confidence. They found that investors choose a scheme for investment on the basis
of past performance, stability of returns and past dividends.

20. Sharma (2012) analyzed the investor’s perspectives towards investment in mutual funds.
She has also examined the factors that may affect the selection of mutual funds schemes. She
has conducted a survey on 250 investors. She has analyzed the data through mean, SD,
correlation and factor analysis. The study has found the benefits which emerge out from
investment and it has grouped into three categories on the basis of factor analysis. The first
category has related to fund related attributes. Second has related to monetary benefits
provided by the funds and the last category has related to sponsor related attributes.

21. Singh (2012) conducted a study to analyze the impact of various demographic factors on
investor’s attitude towards mutual funds and to find out the factors which leads for selection
of mutual funds by using Chi Square test. He has conducted this study on 250 investors. He
has found that there is no association between age, occupation and attitude towards mutual
funds. But there is an association between sex, income, educational qualifications and
attitude towards mutual funds. As far as the benefits of the mutual funds are concerned,
return potential and liquidity have been perceived to be most attractive by investors,
followed by flexibility, transparency and affordability.

22. Vyas (2012) evaluated the forms of investment, mode of investment preferred by
investors. He has also examined the investor’s knowledge of risk and preference over
switching of funds by using Chi-Square test, Pearson’s correlation, mean and median. He has
taken 363 investors for the analysis of the data. He found that investors preferred investment
in gold followed by bank deposits, Life insurance schemes and post office schemes.
Investors preferred lump sum investment as compare to that of SIP. There has a significant
relationship between occupation of investors and mode of investment. Majority of the
investors have the knowledge of risk factors in mutual funds. Investors switched the
investment only for the sake of profitability and investors preferred existing schemes for
investment and they preferred to invest in equity schemes.

43
23. Palanivelu and Chandrakumar (2013) identified the preferred investment avenues among
the salaried people of Namakkal Taluk. They have taken 100 salaried people for survey. The
study has found that salaried class in the above stated region was not aware about the equity,
bond, stock market and debentures. All the age group people preferred insurance followed by
bank deposits. They suggested that there is a strong need to create the awareness among the
people of that region regarding various investment avenues.

24. 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.

25. According to KPMG report, The Mutual fund industry needs to have an ‘outside-in’
perspective as compared to ‘inside-out’ perspective. Understanding investors’ needs should
be followed by a product channel alignment. A number of change catalysts discussed in the
previous section like technology, investment in B-15 cities, investment adviser etc. would be
required to help ensure the overall objective of prudent growth and profitability. Investor
awareness campaigns should be conducted to increase the AUM in smaller cities which
would help industry to progress in a holistic manner.
AMC, distributors and IFAs are all doing their bit but AMFI and SEBI should also play a
major role in creating awareness. For future growth, tax could act as an enabler as tax
benefits can be a pull factor for investors. The future potential of Investment Advisors could
be decided by Investors and the regulators. Presence of an unbiased advisor could build
investor trust on the one hand and reward performing products on the other.

26. According to CII Mutual fund summit 2013, the outlook of the mutual fund industry is
governed to a great extent by the economic situation in the country. The current economic

44
scenario with sticky inflation and rising fuel prices is likely to adversely impact perceptions,
resulting in depressed equity inflows into the market.
They believe that the mutual fund industry manifests huge opportunity for growth and
further penetration, and this can be achieved over time, with support from technology. The
key lies in strengthening distribution networks and enhancing levels of investor education to
increase presence in rural areas. In terms of opportunity, the infrastructure debt market has
become very attractive, luring investors to invest in this space.

27. Michael C. Jensen (1967) derived a risk-adjusted measure of portfolio performance)

(Jensen’salpha 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 portfolioover the return of the benchmark index, where the portfolio is leveraged to
have the benchmark index’s standard deviation

28. Zakri Y. Bello (2005) matched a sample of socially responsible stock mutual funds
matchedto randomly selected conventional funds of similar net assets to investigate
differences incharacteristics of assets held, degree of portfolio diversification and variable
effects of diversification on investment performance. The study found that socially
responsible funds donot differ significantly from conventional funds in terms of any of these
attributes. Moreover, theeffect of diversification on investment performance is not different
between the two groups. Bothgroups underperformed theDomini 400 Social Index and S & P
500 during the study period.

29. According to Deepti Goel Dept. of Economics, Assistant Professor, PGDAV College,
D.U., India and Richa Gupta Dept. of Commerce Assistant Professor PGDAV College,D.U.,
India found that the landscape of the financial sector in India is continuously evolving,
accredited to regulatory changes being undertaken, which is leading market participant like
the asset management companies (AMCs) and distributors to restructure their strategies and
adopt business models which will yield sustainable benefits. Some of the other trends which
have emerged strongly over the past year are heavy outflows triggered by market volatility

45
and partnering of asset management companies with banks, to increase the strength of
distribution networks.

30. Dr.B.S. NAVI (FEB 2015 )

AS Per analysis mutual fund are the best option for the investor. Investors have the
perception that risk in equity is higher than mutual fund. In thus study they taken 90 sample
out of which 50% respondents are the youths. And most them are businessman and 63%
them invested in mutual fund. To create the awareness by analysing despondent intend to
invest in mutual fund long term basis and by analysing respondent intend mutual fund is give
better return because of this reason people invest in mutual fund.

31. MR.AKASH JEEVAN (2014)

As per the analysis for a start up investor mutual fund investment method is more favourable
and affordable, as risk is low compared to direct investing. For an investor with lessor
money, he/she should go for mutual fund investing as NAV is lower than the price of stock.
Mutual fund investing is termed as long term horizon of getting a good return,as the is going
in a systematic way. If investor like in buying and selling stock,managing the stock in his
portfolio should choose direct investing in equity stock.as I seen 10 equity and 10 mutual
fund ,and their performance for 10 financial year period. Most of equity share had given
unexpected return.

32. RAGHAVENDRA YADAV (2012)

As per analysis in this topic comparative study is made by comparing the different
investment schemes including mutual fund, equity and relative index. The comparison also
concluded that mutual fund show better yield compare to equities. Even though mutual fund
shows in short term negative returns but it’s better to invest in mutual fund. They analysis the
is it mutual fund is investors best choice or equities is best choice by taking the data of
FMGC and PHARMA sectors.

33. Sapar & Narayan(2003)

46
Examines the performance of Indian mutual funds in a bear market through relative
performance index, risk-return analysis, Treyor's ratio, Sharp's ratio, Sharp's measure with a
sample of 269 open ended schemes (out of total schemes of 433).

34. Rao D. N (2006)

Studied the financial performance of select open-ended equity mutual fund schemes for the
period 1st April 2005 - 31st March 2006 pertaining to the two dominant investment styles
and tested the hypothesis whether the differences in performance are statistically significant.
The analysis indicated that growth plans have generated higher returns than that of dividend
plans but at a higher risk studied classified the 419 open-ended equity mutual fund schemes
into six distinct investment styles.
Agrawal Deepak & Patidar

35. Deepak (2009) studied the empirically testing on the basis of fund manager performance
and analyzing data at the fund-manager and fund-investor levels. The objective of the study
is to provide an overview of mutual fund activity in emerging markets, to describe their size,
asset allocation, to analyze the Indian Mutual Fund Industry pricing mechanism with
empirical studies on its valuation, to analyze data at both the fund-manager and fund-investor
levels. The study reveled that the performance is affected saving and investment habits of the
people at the second side the confidence and loyalty of the fund Manager and rewards affects
the performance of the MF industry in India.

36. Mehta Sushilkumar (2010)

Analyze the performance of mutual fund schemes of SBI and UTI and found out that SBI
schemes have performed better then the UTI in the year 2007-2008 studied the risk and
return relationship of Indian mutual fund schemes. The study found out that out of thirty five
sample schemes, eleven showed significant t–values and all other twenty four sample
schemes did not prove significant relationship between the risk and return. According to t-
alpha values, majority (thirty two) of the sample schemes' returns were not significantly

47
different from their market returns and very few number of sample schemes' returns were
significantly different from their market returns during the study period.
37. Mr. Vijay Anand (2000)
Mr. Vijay Anand in IFMR, Chennai (June 2000).The study focused on to understand the
position of the schemes of birla sunlife and the competitors schemes available in the market.
The study did Analysis of Performance of Equity fund for 3 years and SWOT Analysis of
Birla Sunlife by Literature survey, Delphi technique, in depth financial review to identify
among the selected equity funds that earns higher returns than benchmark and competitors
and concluded that Birla Sunlife performs well compared to the benchmarks and
competitors.

38. R.Nithya (2004)

R.Nithya in the IFMR Chennai (2004). The objective of the study is to analyse the
performance of all the schemes available in the Franklin Templeton Mutual funds and
Emphasize the values of mutual funds to the target people by identifying Asset Management
Company that is performing well and identifying the top schemes in the category such as
equity, balanced, Monthly Income Plan (MIP) & Income in the AMC. The AMC chosen was
Franklin Templeton Mutual funds and it performed well and met the expectations.

39.Prasath.R.H (2009)
The study is trying to emphasize the core values of mutual fund investment, benefits of
mutual funds, types of mutual funds, etc., The study is going to conducted by taking the
NAV values of different types of HDFC mutual fund products. The study concludes that
before choosing the mutual fund scheme, the investor should undergo fact sheet thoroughly
and he has to choose the best one by calculating NAV calculation. If the investor finds
difficulty of getting Rp, Rf, Standard deviation, and Beta parameters, NAV calculations are
the best alternative to assess the performance.

48
40. Dr S Narayan Rao (2002)
The Study is conducted to understand whether most of the mutual fund schemes were able to
satisfy investor’s expectations by giving excess returns over expected returns. The objective
of this study was to evaluate the performance of Indian Mutual Fund Schemes during bear
market through relative performance index (RPI), risk- return analysis. The research study
concluded that out of 269 schemes, 49 were under performers, 102 were par performers and
118 were out performers of the market and Medium Term Debt Funds were the best .It was
also concluded that 58 of 269 open ended mutual funds have provided better returns than the
market during the bear period of September 98-April 2002. Some of the funds provided
excess returns over expected returns based on both premium for systematic risk and total
risk.

41. Sharad Panwar and Dr. R. Madhumathi (2005)

The objective of the study is to identify differences in characteristics of public-sector
sponsored & private-sector sponsored mutual funds and to find the extent of diversification
in the portfolio of securities of public-sector sponsored and private-sector sponsored mutual
funds and to compare the performance of public-sector sponsored and private-sector
sponsored mutual funds using traditional investment measures. The study found that public-
sector sponsored , private-sector Indian sponsored and private-sector foreign sponsored
mutual funds do not differ statistically in terms of portfolio characteristics such as net assets,
common stock%, market capitalization, holdings, Top Ten %. Portfolio risk characteristics
measured through private-sector Indian sponsored mutual funds seems to have outperformed
both Public- sector sponsored and Private-sector foreign sponsored mutual funds.
Jaspal Singh and Subhash Chander (2006)

The results show that the investors consider gold to be the most preferred form of
investment, followed by NSC and Post Office schemes. Hence, the basic psyche of an Indian
investor, who still prefers to keep his savings in the form of yellow metal, is indicated.
Investors belonging to the salaried category, and in the age group of 20-35, years showed

49
inclination towards close-ended growth (equity-oriented) schemes over the other scheme
type.

42. Dr. S. Anand & Dr. V Murugaiah (2003)

The purpose of this study is to apply the measurement tools of modern portfolio theory to the
performance of mutual funds. The study aims to examine the degree of correlation that exists
between fund and market return, to understand the impact of fund specific characteristics on
performance ,to evaluate the diversification and selectivity skills of fund managers. The
study concluded on the basis of overall analysis in can be inferred here that the additional
return on sampled schemes and the market over risk free return was significantly low during
the study period. The study covers the period between April 1999 and March 2003 This
indicates that the majority of schemes were showed underperformance in comparison with
risk free return.
Soumya Guha Deb, Prof. Ashok Banerjee ,Prof. BB Chakrabarti in IIM, Calcutta (2005)

The research “Performance of Indian Equity Mutual Funds, Their Style Benchmarks– an
Empirical Exploration” is done by. Indian equity mutual funds and to perform a return based
style analysis of equity mutual funds in India and analyzed their relative performance with
respect to style benchmarks. The analysis shows that Indian equity mutual fund managers
have not been able to beat their style benchmarks on the average. It also shows that although
all the funds in our sample are equity funds, the fixed income asset classes have come out
important components of their style exposures, may be due to „sticky‟ returns of their
component securities. The most important component of their style exposures are the mid
cap stocks. This may indicate actual investment in those stocks, or in some other stocks that
behaved like the mid cap index.
Mohit Gupta and Navdeep Agarwal (2009)
There is very little research on the construction of mutual fund portfolio. The present study
seeks to fill this gap. The objective of the research is to construct the portfolio using uses the
cluster method, taking industry concentration as a variable and to compare the performance
of two types of portfolios with selected benchmarks, selected according to the prevalent

50
modes of mutual fund purchase Results are found to be encouraging, as far as risk mitigation
is concerned. This study also expected to help in the construction of funds.

43. Dr.Shantanu Mehta, Charmi Shah (2012), the study is to know the preference of
investors and their needs towards mutual funds investment, based upon convenience
sampling. Investors mostly prefer equity schemes while making investment into mutual
funds. Amongst equity schemes also equity tax savings (ELSS), Equity diversified scheme
and Equity sectoral schemes are mostly preferred by the invest.
Abhijeet Birari & Umesh Patil (2014) studied the spending and savings habit of youth in the
city of Aurangabad. The study finds that significant difference exists in the spending habits
of students belonging to different education levels. The study finds that most of the youth in
the sample spend a large portion of the money on consumable goods and that due to lack of
awareness, the amount of money saved or invested is very little.

44. Gina Chowa, Mat Despard & Isaac Osei-Akoto (2012) in their paper ‘Youth saving
patterns and performance in Ghana’ attempted to find whether the youth will participate in
savings via formal financial services if given the opportunity. The study found that most
youth in the sample, set aside money regularly, hold onto their set aside money for short
periods of time and use it mostly for short-term consumptive purposes. The study concluded
that, youth of a developing country have a high propensity to save but, lack of proper
knowledge and information restricted the youth from venturing out into the area formal
savings and investments.

45. Patel & Patel (2012) studied the investment perspective of salaried people. The paper
aimed at studying the behavioural pattern & difference in perception of an individual related
to various investment alternatives. The study finds that the youth that was surveyed preferred
investments over savings. The study also discovers that, rather than safe and secure
investments, the youth prefer investments that are high risk but also yield high returns.

51
CHAPTER 3 : RESEARCH AND METHODOLOGY

The research methodology is specification of method of acquiring the information needed to

structure or solve the problem. It is not considered to be the decision of facts but also
building up the data knowledge and to discover the new facts involved through the process in
the dynamic change in the society.

3.1 OBJECTIVES OF THE STUDY

 To study the preferences of youth regarding investment in mutual funds and share
market.
 To analysis factors affection designing making of youth investors.
 To find out whether financial knowledgeable people are more likely to stock market in
particular.

3.2 SCOPE OF THE STUDY

The scope of the study is to get the first-hand knowledge about youth preferences regarding
investment in mutual fund or share market or both. The study covers the concept and details
of mutual fund and share market investment of youth.

3.3 DATA COLLECTION

PRIMARY DATA:

The present study incorporates the collection of both primary and secondary data for an in
depth investigation. Primary data has been gathered through structured unbiased
questionnaire. The questionnaire was pre-tested on some of the respondents and minor
modifications were made on the basis of pre-testing.

52
SECONDARY DATA:

Secondary data was generated through, the information received from the journals and
online sources.

3.4 SAMPLE SIZE:

In this survey I have surveyed 100 respondents.

3.5 SELECTION OF THE PROBLEM

As i want to know about in which type of investment youth investing their money and also
get to know about which factor youths prefer most while investing their money.

3.6 LIMITATIONS OF THE STUDY

This study focuses on very small subset of the youth in India and is limited to the city
of Mumbai.

► The region is very vast and it was not possible to cover each and every unit in the
sample in the available short span of time.

► The sample size is quite small and may not be true pointer of the entire universe.
The information provided by respondents may not be fully accurate due to
unavoidable biases.

► The sample size of the study (i.e. No of questions asked to youth) is limited.

53
CHAPTER 4 : DATA ANALYSIS AND INTERPRETION

PRIMERY DATA

1. GENDER:

GENDER MALE FEMALE

% OF RESPONSE 65% 35%

GENDER

MALE
35%
FEMALE

65%

INTERPRETATION:

1. The above pie diagram shows the gender who are investing their money in to mutual
fund and stock market.
2. The above pie diagram 65% respondent are male and remaining are female that is 35%.

54
2. AGE GROUP:
AGE GROUP 18-25 25-30 30 AND ABOVE
%OF RESPONSES 88% 10% 2%

% OF RESPONSE
18-25
2% 25-30
10% 30 AND ABOVE

88%

INTERPRETATION:

1. The above pie diagram present age of respondent.

2. 88% of respondent are age group of 18 – 25.

3. 10% of respondent are age group of 25 -30.

4. 2% of respondent are age group of 30 and above.

55
3. OCCUPATION :

SELF-
OCCUPATION STUDENT SERVICE OTHERS
EMPLOYED

%OF
74% 14% 8% 4%
RESPONSES

% OF RESPONDENTS
4%
SSC
20% HSC
GRADUATE
PROFESSIONAL

76%

INTERPRETATION:

1. The above pie diagram shows that how many people invest.

2. 74% are student who invest.

3. 14% of people who are engaged in service and they invest.

4. 8% are self-employed and 4% other invest.

4. QUALIFICATION:

QUALIFICATION SSC HSC GRADUATE PROFESSIONAL

% OF NILL 19% 71% 10%

56
 RESPONSES

% OF RESPONSES
9% SSC
HSC
GRADUATE
PROFESSIONAL

34%
57%

INTERPRETATION:

1. The above pie diagram shows the qualification.

2. 19% are HSC qualified.

3.71% are the graduate.

57
5. MONTHLY INCOME :

50,000 AND
INCOME 10,000-20,000 20,000-50,000
ABOVE
% OF RESPONSES 70.7% 14.7% 14.7%

MONTHLY INCOME

15% 10,000 - 20,000

20,000-50,000
50,000 AND ABOVE

15%

71%

INTERPRETATION:

1. 70.70% of responses are belonging to income of 10,000 TO 20,000.

2. 14.70% of responses are blong to income of 20,000 to 50.000.

3.14.70% of responses are blong ti income of 50,000 & above.

6. DO YOU HAVE EVER INVEST IN MUTUAL FUND OR SHARE

MARKET?

INVESTMENT YES NO

58
 % OF RESPODENTS 46% 54%

YES NO

46%
54%

INTERPRETATION:

1. 54% of respondent are not invest their money in any mutual fund and stock market.

2. Remaining 46% respondent they are invest their money in mutual fund and share market.

59
7.WHERE DO YOU INVEST YOUR MONEY ?

TYPES OF MUTUAL SHARE

BOTH OTHER
INVESTMENT FUND MARKET
% OF
21.3% 19.1% 24.7% 34.8%
RESPONSES

21%

35%
MUTUAL FUND
SHARE MARKET
BOTH
OTHER
19%

25%

INTERPRETATION:

1.21.30% of respondent are invest in mutual fund.

2. And 19.10% are investing in share market.

3. 24.70% of respondent invest in both.

4. Higher investment done in other.

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8. What % of invest in mutual fund?
MUTUAL
10% TO 25% 25%TO50% 50%TO75% 75% & ABOVE
FUND
% OF
58.20% 31.20% 5.4% 5.2%
RESPONSES

% OF INVESTMENT IN MUTUAL

10% TO 25%
25% TO 50%
50% TO 75%
75% & ABOVE

31%
58%

INTERPRETATION:

1.58.20% of respondent are invest in mutual fund in range of 10% TO 25%.

2. 31.20% of respondent are invest in mutual fund in range of 25% TO 50%.

3. 5.45% of respondent are invest in the range of 50% to 75%.

4. And remaining 5.2% are invest in the range of 75% and above.

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9. WHAT % OF INVEST IN SHARE MARKET ?

SHARE
10% TO 25% 25% TO 50% 50% TO 75% 75% & ABOVE
MARKET
% OF
67% 16% 11% 6%
RESPONSES

% OF INVEST IN SHARE MARKET

6%

11%

10% TO 25%
25% TO 50%
50% TO 75%
16% 75% & ABOVE

67%

INTERPRETATION:

1. 67% of respondent are invest in range of 10% to 25%.

2. 16% of respondent are invest in range of 25% to 50%.

3. 11% of respondent are invest in range of 50% to 75%.

4. And remaining in 75% and above.

5. people do not want to take risk therefore more people invest in mutual fund and less
people in equity.

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10. HOW IS YOUR INVESTMENT PATTERN?

INVESTMENT MONTHLY YEARLY RARELY

PATTERN
% OF RESPONSES 47% 24% 29%

INVESTMENT PATTERN

29% MONTHLY
YEARLY
RARELY

47%

24%

INTERPRETATION:

1. Investment pattern is shows the people invest on which basis.

2. 47% of respondent are done investment monthly basis.

3. 24% of respondent are invest yearly.

4. Other invests rarely.

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11. WHICH INVESTMENT IS VERY RISKY?

INVESTMENT MUTUAL FUND EQUITY

% OF RESPONSES 25% 75%

% OF RISK

25%
MUTUAL FUND
EQUITY

75%

INTERPRETATION:

1. There is responses shows that the higher risk in the stock market rather than mutual
fund.

2. Higher risk involved in stock market.

3. Lower risk in mutual fund.

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12. WHAT ARE THE FACTORS AFFECT THE DECISION MAKING OF
INVESTOR?
FACTORS RISK FACTOR PROFIT/ LOSS OTHER
FACTOR
% OF RESPONSES 54% 34% 12%

FACTOR AFFECT

12%
RISK FACTOR
PROFIT/LOSS FACTOR
OTHER

54%
34%

INTERPRETATION:

1. 54% of response are affecting with risk factor.

2. 34% of responses are affecting with profit / loss factor.

3. 12% of responses are affecting with other factor.

65
CHAPTER 5: FINDING

1. 54% of respondent are those people who does not invest in mutual fund and stock market.

2. 21% of respondent invest in mutual fund therefore mutual fund is best option for youth.

3. In share market youth are invest Less .

4. Most of respondent are investment pattern is rarely .

5. Mutual fund are less risky than stock market investment.

6. Risk factor is more affect the Decision making of investor.

7. Most of youth invest their money in mutual fund because they want more return with less
risk.

66
CHAPTER 6 : SUGGESTION

1. Mutual fund is better option for today’s youth, because it’s give to high return and less
risk.

2. Mutual fund investing is termed as a long term horizon of getting a good return, as the
fund is going in a systematic way.

3. People need a systematic way of investing should go for mutual fund investing.

4. Investing with a fixed income strategy, should choose mutual fund as an investment
choice.

5. If you don’t know anything about stock market, just getting an income is your concern,
you should choose a mutual fund scheme.

6. Before make investment investor should done proper study that which option is better for
an investment.

7. Stock market investment is risky but it’s give more return than mutual fund.

67
CHAPTER 7 : CONCLUSION

As par the above research and data analysis proved that, mutual fund are better options in
today’s scenario. Though it has high risk, but with patients it has high return to.

It is the fact that investing in mutual fund is time consuming, as the same time it is a myth
that investment I mutual fund leads towards loss.

Mutual fund is investment vehicles that pool money from many different investors to
increase their buying power and diversify their holding.

This allows investors to add a substantial number of securities to their portfolio for a much
lower price than purchasing each security individually.

Also, it allows investors to reinvest their dividend and interest in additional fund shares.

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CHAPTER 8 : REFERENCE

WEBSITES:

WWW.Adityatrading.in / market / mutual fund

www.moneycontrol.com

www.comparative study on direct equity investing and mutual fund

www.academia.COM

69
ANNEXURE

1. GENDER?
• MALE
• FEMALE

2. AGE
• 18-25
• 25-30
• 30&ABOVE

3. QUALIFICATION
• SSC
• HSC
• GRADUATE
• PROFESSIONAL

4. WHAT IS YOUR OCCUPATION?

• STUDENT
• SELF-EMPLOYED
• SERVICE
• OTHER

5. MONTHLY INCOME
• 10,000-20,000
• 20,000-50,000
• 50,000-1,00,000

6. DO YOU HAVE EVER INVEST IN MUTUAL FUND OR SHARE MARKET?

• YES
• NO

7. WHERE DO YOU INVEST YOUR MONEY?

• MUTUAL FUND

70
• SHARE MARKET
• BOTH
• OTHER
8. WHAT % OF INVEST IN MUTUAL FUND?
• 10%-25%
• 25%50%
• 50%-75%
• 75%&ABOVE

9. WHAT % OF INVEST IN SHARE MARKET?

• 10%-25%
• 25%-50%
• 50%-75%
• 75%& ABOVE

10. HOW IS YOUR INVESTMENT PATTERN?

• MONTHLY
• YEARLY
• RERELY

11. WHICH INVESTMENT IS VERY RISKY?

• EQUITY
• MUTUAL FUND

12. WHAT ARE THE FACTOR AFFECT THE DECISION MAKING OF INVESTOR?
• RISK FACTOR
• PROFIT / LOSS FACTOR
• OTHER

71
72