A PROJECT REPORT

ON
A STUDY ON MUTUAL FUNDS IN INDIA AND PROCESS OF
INVESTING IN THEM
A Project Submitted to
University of Mumbai for partial completion of the degree of Bachelor in
Commerce (Accounting and Finance)
Under the Faculty of Commerce
By
ADITYA VYAS
Under the Guidance of
DR KAVITA BADDI
MAHATMA EDUCATION SOCIETY’S

PILLAI COLLEGE OF ARTS, COMMERCE & SCIENCE, AUTONOMOUS

AFFILIATED TO UNIVERSITY OF MUMBAI

PLOT NO 10, SECTOR-16, NEW PANVEL – 410206

2019-2020
 A PROJECT REPORT
ON
A STUDY ON MUTUAL FUNDS IN INDIA AND PROCESS OF
INVESTING IN THEM
A Project Submitted to
University of Mumbai for partial completion of the degree of Bachelor in
Commerce (Accounting and Finance)
Under the Faculty of Commerce
By
ADITYA VYAS
Under the Guidance of
DR KAVITA BADDI
MAHATMA EDUCATION SOCIETY’S

PILLAI COLLEGE OF ARTS, COMMERCE & SCIENCE, AUTONOMOUS

AFFILIATED TO UNIVERSITY OF MUMBAI

PLOT NO 10, SECTOR-16, NEW PANVEL – 410206

2019-2020
 Declaration by learner

I the undersigned Mr. ADITYA VYAS hereby, declare that the work embodied in this
project work titled “A STUDY ON MUTUAL FUNDS IN INDIA AND PROCESS OF
INVESTING IN THEM”, forms my own contribution to the research work carried out
under the guidance of Dr. Kavita Baddi is a result of my own research work and has
and has not been previously submitted to any other Degree /Diploma to this or any other
University.

Wherever reference has been made to previous works of others, it has been clearly indicated
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.

Name and Signature of the Learner

Certified by

Name and Signature of the Guiding Teacher

 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 dimensions
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. (C.A) GAJANAN WADER for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Mrs. ABIDA KHAN, for her moral support
and guidance.

I would also like to express my sincere gratitude towards my Project Guide Dr. Kavita Baddi
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 me throughout
my project.
 INDEX

CHAPTERS TOPIC PAGE NO.

Chapter 1 INTRODUCTION
1.1 Introduction To Mutual Fund
1.2 History of Mutual Fund
1.3 Phases of Mutual Fund in India
1.4 Merits of Investing in Mutual Fund
1.5 Demerits of Investing in Mutual Fund
1.6 Types of Mutual Fund in India
1.7 Steps for Investing in Mutual Fund in India
1.8 Expenses Incurred while investing in Mutual Funds
1.9 Structure of Mutual Fund in India
1.10Regulations of Mutual Fund
Chapter 2 RESEARCH AND METHODOLOGY
2.1Meaning of Research and Methodology
2.2 Objectives of the study
2.3Scope of the study
2.4Limitations
2.5Sample Size
2.6Data collection method
2.7Techniques and tools used for data analysis
Chapter 3 REVIEW OF LITREATURE
Chapter 4 DATA ANALYSIS, INTERPRETATION AND
PRESENTATION
Chapter 5 FINDINGS,CONCLUSION AND SUGGESTIONS
5.1Findings
5.2Suggestions
5.3Conclusion
ANNEXURE
 Questionnaire
 Biblography
 CHAPTER 1: INTRODUCTION

1.1 Introduction to Mutual Fund

A mutual fund is an investment instrument which pools in money from different

investors and invests the collected corpus in a set of different asset classes such as
equity, debt, gold, foreign securities etc. Mutual funds are becoming increasingly
popular in India due to the various benefits they come with. Mutual funds feature an
attractive performance history of returns higher than those earned on conventional
instruments of investment. Mutual funds enable investors to create diversified
investment portfolios with investments as low as Rs. 500.

Another feature which makes mutual funds a preferred choice among investors is the
professional management of funds. A mutual fund is managed by a fund manager who
is an expert carrying vast experience in the investment industry. This provides an
assurance to the investors that their money is in safe and secure hands. Another fact
which further strengthens investors’ confidence in mutual fund is that they are
regulated by capital markets regulator SEBI (Securities and Exchange Board of India)
and AMFI (Association of Mutual Funds in India).

Assets under management (AUM) is a financial term denoting the market value of all
the funds being managed by a financial institution (a mutual fund, hedge fund, private
equity firm, venture capital firm, or brokerage house) on behalf of its clients,
investors, partners, depositors, etc.The mutual fund industry in India is growing at an
exponential pace. The Indian mutual fund industry recorded an Average Assets Under
Management (AAUM) of Rs. 23.16 trillion as on February 28, 2019. The AAUM of
the industry stood Rs. 5.09 trillion on February 28, 2009, which means the Indian
mutual fund industry has registered a more than 4 ½ fold increase in a period of 10
years.

There are as many as 44 AMFI (Association of Mutual Funds in India) registered fund
houses in India which together offer more than 2,500 mutual fund schemes. The wide
array of funds often make it a little difficult for investors to choose the best scheme
for them. To ease this process, we list out the 10 most popular mutual fund houses in
India along with the 10 most popular schemes across all mutual fund categories
namely equity, debt and hybrid.

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 1.2 History Of Mutual Fund

Prof K Geert Rouwenhorst in 'The Origins of Mutual Funds', states that the origin of
pooled investing concept dates back to the late 1700s in Europe, when "a Dutch
merchant and broker invited subscriptions from investors to form a trust to provide an
opportunity to diversify for small investors with limited means." The emergence of
"investment pooling" in England in the 1800s brought the concept closer to the US
shores

The enactment of two British laws, the Joint Stock Companies Acts of 1862 and 1867,
permitted investors to share in the profits of an investment enterprise and limited
investor liability to the amount of investment capital devoted to the enterprise. Shortly
thereafter, in 1868, the Foreign and Colonial Government Trust was formed in
London.

It resembled the US fund model in basic structure, providing "the investor of

moderate means the same advantages as the large capitalists by spreading the
investment over a number of different stocks." More importantly, the British fund
model established a direct link with the US securities markets, helping finance the
development of the post-Civil War US economy.

The Scottish American Investment Trust, formed in February 1873, by fund pioneer
Robert Fleming, invested in the economic potential of the US, chiefly through
American railroad bonds. Many other trusts followed them, who not only targeted
investment in America, but led to the introduction of the fund investing concept on
the US shores in the late 1800s and the early 1900s. The first mutual or 'open-ended'
fund was introduced in Boston in March 1924. The Massachusetts Investors Trust,
which was formed as a common law trust, introduced important innovations to the
investment company concept by establishing a simplified capital structure, continuous
offering of shares, and the ability to redeem shares rather than holding them until
dissolution of the fund and a set of clear investment restrictions as well as policies.

2
The stock market crash of 1929 and the Great Depression that followed greatly
hampered the growth of pooled investments until a succession of landmark securities
laws, beginning with the Securities Act, 1933 and concluded with the Investment
Company Act, 1940, reinvigorated investor confidence. Renewed investor confidence
and many innovations led to relatively steady growth in industry assets and number of
accounts.

1.3 Phases of Mutual Fund in India

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India (UTI) at the initiative of the Reserve Bank of India (RBI) and the Government
of India. The objective then was to attract small investors and introduce them to
market investments. Since then, the history of mutual funds in India can be broadly
divided into six distinct phases. The first introduction of a mutual fund in India
occurred in 1963, when the Government of India launched Unit Trust of India
(UTI).UTI enjoyed a monopoly in the Indian mutual fund market until 1987, when a
host of other government-controlled Indian financial companies established their own
funds, including State Bank of India, Canara Bank and by Punjab National Bank.
Despite being available in the market less than 10% of Indian households have
invested in mutual funds. A recent report on Mutual Fund Investments in India
published by research and analytics firm, Boston Analytics, suggests investors are
holding back from putting their money into mutual funds due to their perceived high
risk and a lack of information on how mutual funds work.

Phase I (1964-87): Growth Of UTI:

In 1963, UTI was established by an Act of Parliament. As it was the only entity
offering mutual funds in India, it had a monopoly. Operationally, UTI was set up by
the Reserve Bank of India (RBI), but was later delinked from the RBI. The first
scheme, and for long one of the largest launched by UTI, was Unit Scheme
1964.Later in the 1970s and 80s, UTI started innovating and offering different
schemes to suit the needs of different classes of investors. Unit Linked Insurance Plan
(ULIP) was launched in 1971. The first Indian offshore fund, India Fund was
launched in August 1986. In absolute terms, the investible funds corpus of UTI was

3
about Rs 600 crores in 1984. By 1987-88, the assets under management (AUM) of
UTI had grown 10 times to Rs 6,700 crores.

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

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

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

A new era in the mutual fund industry began in 1993 with the permission granted for
the entry of private sector funds. This gave the Indian investors a broader choice of
'fund families' and increasing competition to the existing public sector funds. Quite
significantly foreign fund management companies were also allowed to operate
mutual funds, most of them coming into India through their joint ventures with Indian
promoters.The private funds have brought in with them latest product innovations,
investment management techniques and investor-servicing technologies. During the
year 1993-94, five private sector fund houses launched their schemes followed by six
others in 1994-95.

Phase IV (1996-99): Growth And SEBI Regulation:

Since 1996, the mutual fund industry scaled newer heights in terms of mobilization of
funds and number of players. Deregulation and liberalization of the Indian economy
had introduced competition and provided impetus to the growth of the industry.A
comprehensive set of regulations for all mutual funds operating in India was
introduced with SEBI (Mutual Fund) Regulations, 1996. These regulations set
uniform standards for all funds. Erstwhile UTI voluntarily adopted SEBI guidelines
for its new schemes. Similarly, the budget of the Union government in 1999 took a
big step in exempting all mutual fund dividends from income tax in the hands of the

4
investors. During this phase, both SEBI and Association of Mutual Funds of India
(AMFI) launched Investor Awareness Programme aimed at educating the investors
about investing through MFs.

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

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

UTI Mutual Fund is the present name of the erstwhile Unit Trust of India (UTI).
While UTI functioned under a separate law of the Indian Parliament earlier, UTI
Mutual Fund is now under the SEBI's (Mutual Funds) Regulations, 1996 like all other
mutual funds in India.The emergence of a uniform industry with the same structure,
operations and regulations make it easier for distributors and investors to deal with
any fund house. Between 1999 and 2005 the size of the industry has doubled in terms
of AUM which have gone from above Rs 68,000 crores to over Rs 1,50,000 crores.

Phase VI (From 2004 Onwards): Consolidation and Growth:

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

5
1.4 Merits of Investing in Mutual Fund :

Let’s discuss the mutual fund benefits which you can enjoy by investing in mutual
funds.

1. Liquidity to Enter and Exit Anytime-

Liquidity helps you get money from your investments as and when you require. It is
relatively easier to buy and sell a mutual fund scheme as compared to other
investments like real estate, PPF, and NPS.

The only barrier is in the case of close-ended mutual funds, like ELSS which have a
lock-in period of 3 years. But post-lock-in period you can sell your units without exit
load at any point of time to fund your needs.

2. Diversification for Spreading Risk-

The diversification offered by mutual fund investments it helps you manage risk by
investing in more than one asset class like equities, debts and money market
instruments based on your financial goals.

3. Expert Fund Management-

Mutual funds save your time and help you manage the challenges of asset selection,
fund allocation, monitoring, and management.

Investing in Mutual funds doesn’t require you to be an expert, as this saves your time
and energy that goes in e-market research or to keep watch on timely entry or exit
decisions. Your fund manager takes care of all the challenges.

You simply need to invest and be assured that the rest will be taken care of.

4. Flexibility to Invest in Smaller Amounts-

Mutual funds have inbuilt flexibility to help you invest as per your cash flow position.
The investment does not require you to make all the purchases upfront. But you can
definitely do a lump sum purchase if you have money.

6
If you are receiving a monthly salary then you can go for a Systematic Investment
Plan (SIP) where you invest a fixed amount monthly or quarterly. You are flexible to
plan as per your budget and convenience.

SIP can be as low as Rs. 500 per month and unlike lump sum investments this gives
you the benefit of rupee cost averaging.

5. Accessibility - Mutual Funds Are Easy to Buy-

Mutual funds are offered by asset management companies (AMCs) and distributed
through channels like;

 Brokerage firms

 AMCs themselves

 Registrars like Karvy and CAMS

 Online mutual fund investment platforms

 Agents and banks

This makes mutual fund universally available and easily accessible. Plus, you do not
need to have a Demat account for investing in mutual funds.

6. Schemes for Every Financial Goals-

You can find schemes suitable for anyone, from a high net worth investor to salaried
individuals, matching the individuals’ income, expenses, risk-taking ability, and
investment goals.

7. Safety & Transparency-

Unlike Bitcoin, corporate bonds, money market instruments, and shares, all
information about mutual fund is easily available online.

AMCs are strictly regulated through statutory government bodies like SEBI and
AMFI, which ensures safe and healthy investment practices.

7
You can easily verify the credentials of the fund manager, his qualifications, years of
experience and AUM, solvency details of fund houses.

8. Lesser Cost When the Fund Invests Collectively-

Fund houses invest in assets collectively, hence save on transaction and other costs as
compared to a single transaction. The savings are passed on to investors as lower
costs of investing in mutual funds.

Plus, the asset management services fees also comes at a lower cost as it gets divided
between all the investors of the fund.

Advantages of Tax Saving Mutual Funds

ELSS mutual funds also provide tax benefits to the investor. Mutual fund tax-saving
benefits include

9. Best Tax Savings Option-

Mutual funds help in better tax planning along with the higher returns from
investments. You can get a deduction of up to Rs. 1.5 Lakhs under section 80C.

ELSS tax saving mutual funds have the potential to deliver higher returns as
compared to other tax-saving instruments like PPF, NPS and tax-saving FD.

10. Lowest Lock-in Period-

Tax-saving mutual funds have the lowest lock-in period of only 3 years as compared
to a minimum of 5 years for other tax-saving options like FD, ULIPs, and PPF.

Plus, you have the facility to stay invested even after the completion of the lock-in
period.

11. Lower Tax on the Gains-

From the taxation on gains perspective, ELSS is neither totally tax-exempt like PPF
nor fully taxed as in the case of returns from FD or NSC.

8
Gains from ELSS funds accrue after a period of three years; hence it is treated as
long-term in nature. Gains from ELSS are taxed at the rate of 10% for gains over Rs.
1 Lakhs, which is lower than the 15% tax rate charged in the case of short term capital
gains.

9
1.5 Demerits of Investing in mutual fund:

There are certainly some benefits to mutual fund investing, but you should also be
aware of the drawbacks associated with mutual funds.

1. No Insurance:

Mutual funds, although regulated by the government, are not insured against
losses. The Federal Deposit Insurance Corporation (FDIC) only insures against
certain losses at banks, credit unions, and savings and loans, not mutual funds. That
means that despite the risk-reducing diversification benefits provided by mutual
funds, losses can occur, and it is possible (although extremely unlikely) that you could
even lose your entire investment.

2. Dilution:

Although diversification reduces the amount of risk involved in investing in mutual

funds, it can also be a disadvantage due to dilution. For example, if a single security
held by a mutual fund doubles in value, the mutual fund itself would not double in
value because that security is only one small part of the fund's holdings. By holding a
large number of different investments, mutual funds tend to do neither exceptionally
well nor exceptionally poorly.

3. Fees and Expenses:

Most mutual funds charge management and operating fees that pay for the fund's
management expenses (usually around 1.0% to 1.5% per year for actively managed
funds). In addition, some mutual funds charge high sales commissions, 12b-1 fees,
and redemption fees. And some funds buy and trade shares so often that the
transaction costs add up significantly. Some of these expenses are charged on an
ongoing basis, unlike stock investments, for which a commission is paid only when
you buy and sell.

4. Poor Performance:

Returns on a mutual fund are by no means guaranteed. In fact, on average, around

75% of all mutual funds fail to beat the major market indexes, like the S&P 500, and a

10
growing number of critics now question whether or not professional money managers
have better stock-picking capabilities than the average investor.

5. Loss of Control:

The managers of mutual funds make all of the decisions about which securities to buy
and sell and when to do so. This can make it difficult for you when trying to manage
your portfolio. For example, the tax consequences of a decision by the manager to buy
or sell an asset at a certain time might not be optimal for you. You also should
remember that you are trusting someone else with your money when you invest in a
mutual fund.

6. Trading Limitations:

Although mutual funds are highly liquid in general, most mutual funds (called open-
ended funds) cannot be bought or sold in the middle of the trading day. You can only
buy and sell them at the end of the day, after they've calculated the current value of
their holdings.

7. Size:

Some mutual funds are too big to find enough good investments. This is especially
true of funds that focus on small companies, given that there are strict rules about how
much of a single company a fund may own. If a mutual fund has $5 billion to invest
and is only able to invest an average of $50 million in each, then it needs to find at
least 100 such companies to invest in; as a result, the fund might be forced to lower its
standards when selecting companies to invest in.

8. Inefficiency of Cash Reserves:

Mutual funds usually maintain large cash reserves as protection against a large
number of simultaneous withdrawals. Although this provides investors with liquidity,
it means that some of the fund's money is invested in cash instead of assets, which
tends to lower the investor's potential return.

11
 9. Too Many Choices:

The advantages and disadvantages listed above apply to mutual funds in general.
However, there are over 10,000 mutual funds in operation, and these funds vary
greatly according to investment objective, size, strategy, and style. Mutual funds are
available for virtually every investment strategy (e.g. value, growth), every sector
(e.g. biotech, internet), and every country or region of the world. So even the process
of selecting a fund can be tedious.

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1.6Types of Mutual Funds in India

Types of Mutual Funds based on structure

 Open-Ended Funds: These are funds in which units are open for purchase or
redemption through the year. All purchases/redemption of these fund units are
done at prevailing NAVs. Basically these funds will allow investors to keep
invest as long as they want. There are no limits on how much can be invested
in the fund. They also tend to be actively managed which means that there is a
fund manager who picks the places where investments will be made. These
funds also charge a fee which can be higher than passively managed funds
because of the active management. They are an ideal investment for those who
want investment along with liquidity because they are not bound to any
specific maturity periods. Which means that investors can withdraw their
funds at any time they want thus giving them the liquidity they need.

 Close-Ended Funds: These are funds in which units can be purchased only
during the initial offer period. Units can be redeemed at a specified maturity
date. To provide for liquidity, these schemes are often listed for trade on a
stock exchange. Unlike open ended mutual funds, once the units or stocks are
bought, they cannot be sold back to the mutual fund, instead they need to be
sold through the stock market at the prevailing price of the shares.

 Interval Funds: These are funds that have the features of open-ended and
close-ended funds in that they are opened for repurchase of shares at different
intervals during the fund tenure. The fund management company offers to
repurchase units from existing unitholders during these intervals. If
unitholders wish to they can offload shares in favour of the fund.

Types of Mutual Funds based on asset class

 Equity Funds: These are funds that invest in equity stocks/shares of

companies. These are considered high-risk funds but also tend to provide high
returns. Equity funds can include specialty funds like infrastructure, fast

13
 moving consumer goods and banking to name a few. THey are linked to the
markets and tend to

 Debt Funds: These are funds that invest in debt instruments e.g. company
debentures, government bonds and other fixed income assets. They are
considered safe investments and provide fixed returns. These funds do not
deduct tax at source so if the earning from the investment is more than Rs.
10,000 then the investor is liable to pay the tax on it himself.

 Money Market Funds: These are funds that invest in liquid instruments e.g.
T-Bills, CPs etc. They are considered safe investments for those looking to
park surplus funds for immediate but moderate returns. Money markets are
also referred to as cash markets and come with risks in terms of interest risk,
reinvestment risk and credit risks.

 Balanced or Hybrid Funds: These are funds that invest in a mix of asset
classes. In some cases, the proportion of equity is higher than debt while in
others it is the other way round. Risk and returns are balanced out this way.
An example of a hybrid fund would be Franklin India Balanced Fund-DP (G)
because in this fund, 65% to 80% of the investment is made in equities and the
remaining 20% to 35% is invested in the debt market. This is so because the
debt markets offer a lower risk than the equity market.

Types of Mutual Funds based on investment objective

 Growth funds: Under these schemes, money is invested primarily in equity

stocks with the purpose of providing capital appreciation. They are considered
to be risky funds ideal for investors with a long-term investment timeline.
Since they are risky funds they are also ideal for those who are looking for
higher returns on their investments.

 Income funds: Under these schemes, money is invested primarily in fixed-

income instruments e.g. bonds, debentures etc. with the purpose of providing
capital protection and regular income to investors.

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  Liquid funds: Under these schemes, money is invested primarily in short-term
or very short-term instruments e.g. T-Bills, CPs etc. with the purpose of
providing liquidity. They are considered to be low on risk with moderate
returns and are ideal for investors with short-term investment timelines.

 Tax-Saving Funds (ELSS): These are funds that invest primarily in equity
shares. Investments made in these funds qualify for deductions under the
Income Tax Act. They are considered high on risk but also offer high returns
if the fund performs well.

 Capital Protection Funds: These are funds where funds are are split between
investment in fixed income instruments and equity markets. This is done to
ensure protection of the principal that has been invested.

 Fixed Maturity Funds: Fixed maturity funds are those in which the assets are
invested in debt and money market instruments where the maturity date is
either the same as that of the fund or earlier than it.

 Pension Funds: Pension funds are mutual funds that are invested in with a
really long term goal in mind. They are primarily meant to provide regular
returns around the time that the investor is ready to retire. The investments in
such a fund may be split between equities and debt markets where equities act
as the risky part of the investment providing higher return and debt markets
balance the risk and provide lower but steady returns. The returns from these
funds can be taken in lump sums, as a pension or a combination of the two.

Types of Mutual Funds based on specialty

 Sector Funds: These are funds that invest in a particular sector of the market
e.g. Infrastructure funds invest only in those instruments or companies that
relate to the infrastructure sector. Returns are tied to the performance of the
chosen sector. The risk involved in these schemes depends on the nature of the
sector.

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 Index Funds: These are funds that invest in instruments that represent a
particular index on an exchange so as to mirror the movement and returns of
the index e.g. buying shares representative of the BSE Sensex.

 Fund of funds: These are funds that invest in other mutual funds and returns
depend on the performance of the target fund. These funds can also be referred
to as multi manager funds. These investments can be considered relatively safe
because the funds that investors invest in actually hold other funds under them
thereby adjusting for risk from any one fund.

 Emerging market funds: These are funds where investments are made in
developing countries that show good prospects for the future. They do come
with higher risks as a result of the dynamic political and economic situations
prevailing in the country.

 International funds: These are also known as foreign funds and offer
investments in companies located in other parts of the world. These companies
could also be located in emerging economies. The only companies that won’t
be invested in will be those located in the investor’s own country.

 Global funds: These are funds where the investment made by the fund can be
in a company in any part of the world. They are different from
international/foreign funds because in global funds, investments can be made
even the investor's own country.

 Real estate funds: These are the funds that invest in companies that operate in
the real estate sectors. These funds can invest in realtors, builders, property
management companies and even in companies providing loans. The
investment in the real estate can be made at any stage, including projects that
are in the planning phase, partially completed and are actually completed.

 Commodity focused stock funds: These funds don’t invest directly in the
commodities. They invest in companies that are working in the commodities
market, such as mining companies or producers of commodities. These funds
can, at times, perform the same way the commodity is as a result of their
association with their production.

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  Market neutral funds: The reason that these funds are called market neutral is
that they don’t invest in the markets directly. They invest in treasury bills,
ETFs and securities and try to target a fixed and steady growth.

 Inverse/leveraged funds: These are funds that operate unlike traditional

mutual funds. The earnings from these funds happen when the markets fall
and when markets do well these funds tend to go into loss. These are generally
meant only for those who are willing to incur massive losses but at the same
time can provide huge returns as well, as a result of the higher risk they carry.

 Asset allocation funds: The asset allocation fund comes in two variants, the
target date fund and the target allocation funds. In these funds, the portfolio
managers can adjust the allocated assets to achieve results. These funds split
the invested amounts and invest it in various instruments like bonds and
equity.

 Gilt Funds: Gilt funds are mutual funds where the funds are invested in
government securities for a long term. Since they are invested in government
securities, they are virtually risk free and can be the ideal investment to those
who don’t want to take risks.

 Exchange traded funds: These are funds that are a mix of both open and close
ended mutual funds and are traded on the stock markets. These funds are not
actively managed, they are managed passively and can offer a lot of liquidity.
As a result of their being managed passively, they tend to have lower service
charges (entry/exit load) associated with them.

Types of Mutual Funds based on risk

 Low risk: These are the mutual funds where the investments made are by
those who do not want to take a risk with their money. The investment in such
cases are made in places like the debt market and tend to be long term
investments. As a result of them being low risk, the returns on these

17
 investments is also low. One example of a low risk fund would be gilt funds
where investments are made in government securities.

 Medium risk: These are the investments that come with a medium amount of
risk to the investor. They are ideal for those who are willing to take some risk
with the investment and tends to offer higher returns. These funds can be used
as an investment to build wealth over a longer period of time.

 High risk: These are those mutual funds that are ideal for those who are
willing to take higher risks with their money and are looking to build their
wealth. One example of high risk funds would be inverse mutual funds. Even
though the risks are high with these funds, they also offer higher returns.

18
1.7Steps For Investing in Mutual Funds in India:

Small investments can create good wealth if you can invest in mutual funds regularly.
There are many new investors who are joining and investing in mutual fund schemes
every month. While there are offline methods to invest in mutual funds, an online
method of investment always score high. Lets study about how to invest in Direct
Mutual Funds online or how to invest in Mutual Funds through third party websites
.Can we still invest in mutual funds through offline mode or through various apps.
The provided information below would help to provide step-by-step guide on how to
invest in mutual funds offline and online or through any third party apps.

How to invest in Mutual Funds – Online and Offline

There are two ways of investing in mutual funds i.e. online and offline. In an online
investment, there are again few options available. One can directly invest through the
website of fund house or can visit third party websites. Mobile apps also provide the
facility of investing in Mutual Funds online. Here are few ways to invest in mutual
funds either offline or online.

How to invest in Direct Mutual Funds Online directly on website of fund house

Investment in mutual fund can be made directly by visiting the website of mutual
fund. The direct plans of Asset Management Companies (AMCs) provide higher
returns as compared to regular mutual fund schemes as there is no mediator or agent
involved in it and no brokerage is paid to agents. Here is the step-by-step process of
investing in mutual Funds Online on the mutual funds website.

i. Go to the website of the Asset Management Company through their online

portals whose mutual fund you want to invest. E.g. if you want to invest in any
mutual fund of HDFC, visit HDFC mutual fund.com.

ii. Create your account on the AMC website. While filling the investment section
of the online form, do ensure to select the Plan Type as ‘DIRECT’. Select a
scheme type and double-check it to avoid any kind of mistake. You also need

19
 to fill other details like investment type (lump sum or SIP), mode of payment,
bank details etc.

iii. For the current installment, you may choose net banking or NEFT or debit
card and for the future installments, you may choose auto debit or bill-pay
option.This makes you reach to the final step of the process which you can
review and confirmation. You mat edit things here if you wish.

iv. You will be redirected to the payment gateway of banking website, depending
upon the mode of payment. Once the payment is complete, you will be
redirected to the website where the confirmation screen can be seen. You can
even print this if you wish.

For investing in different AMCs, you have to login to each AMC separately.
However, the steps for different AMCs may vary a bit.

For online investment, the KYC compliance can be done online too which is known
as e-KYC for which you need to enter your Aadhar Number and Pan Number. It is
important to note that through e-KYC process, the investment is restricted to Rs.
50,000 per year per mutual fund for OTP-based e-KYC. If you want to increase the
value of an investment, you need to go through the proper KYC method.

The documents required to complete full KYC are:

 Aadhar number
 Pan Number
 Bank details
 An image of cancelled cheque with signature

How to invest in mutual funds online through MF Utility

MF Utility (MFU) is an innovative “Shared Services” initiative by the Mutual Fund

industry under the aegis of Association of Mutual Funds in India (AMFI), which acts

20
as a “Transaction Aggregation Portal” through which a Mutual Fund customer is
enabled to transact in multiple schemes across Mutual Funds using a single
form/payment.

MF Utility provides browser based access to Mutual Fund customers, with

connectivity to Registrars and Transfer Agents (RTA), Banks, Asset Management
Companies (AMC), Payment Gateways (PG) and KYC Registration Agencies
(KRAs) and enables online transaction submission in multiple schemes across Mutual
Funds through a single form/payment. First one need to go to mfuonline.com and
register for eCAN / CAN and then do the purchases / redemptions / switches / SIPs
for all mutual fund schemes that are participating through MF Utility

How to invest in Mutual Funds online with third party websites

For investing in different mutual fund schemes directly, one needs to log in at a
particular fund house individually, remembering the separate passwords etc. is full of
hassles. There are several third party websites like funds India, scripbox, or icicidirect
etc. that offer investing in several mutual funds with a single login. They enable the
access across multiple mutual funds in single gateway. For investing in mutual funds
online through third party website, you need to create an account on the website
through which you wish to invest. The following are the steps for the same:

a. Go to the home page of the concerned website.

b. Create your new account by entering the required basic details like DOB,
mobile number, gender etc. and get yourself registered.
c. Go to investment in mutual fund page. The investor is prompted to answer
certain questions like the purpose of investment, the time horizon, etc. The
best part is that these websites suggest you the funds according to your
requirement. Select the desired mutual fund to invest.
d. Comply with the KYC requirements.
e. Some websites may even ask you to link your bank account with their website.
f. You will be required to give some more personal details and nominee details.

21
 g. Submit the form.
In order to prevent yourself from any cyber fraud and crime, do ensure that the
website you are looking for is registered with SEBI and has complied with all the
statutory requirements.

How to invest in mutual funds online through third party website or Apps like
MyCams, Karvy,Groww etc

The websites like MyCams, Karvy Groww etc,are the web based applications created
for the comfort of the investors where they can transact in all participating mutual
funds that have authorized them to provide designated services with a single login.
The steps to invest through these websites are-
 Create a new account on the website by filling the questionnaire.
 Log in to the website through valid user name id and password.
 The list of participating AMCs will be displayed.

 Choose the desired mutual fund scheme.

 Comply with KYC.
 Input more information like investment scheme, dividend option, investment
amount, band details etc.
 The investor has to upload the cancelled cheque image copy with signature.
 By filling all the details, the page will be directed to respective bank log in
page. Once the funds are transferred, the transaction is complete and
confirmation will display on the screen.

How to invest in Mutual Funds online through Mobile Apps

With the explosive use of smart phones, most of the mutual fund companies have
even launched their mobile applications in order to facilitate their clients to invest
instantly or check their NAVs on the go. Even the third party distributors or agents
have launched their apps for their clients where they can check the status of their
investments in just a few clicks. For this-

22
  You need to download the particular application in your mobile phone through
Google Play Store or Apple iTunes.
 You get the icon of the respective mobile app. Log into it using the account
credentials.
 Complete your KYC.
 Select the desired plan and fill in other details.
 You will receive an OPT on your mobile number for verification. Once
verified, the process is complete.

How to invest in mutual funds by filling mutual fund form

It is the conventional mode of investing where you invest in a mutual fund by filling
up the form. There are two ways of investing offline, directly with the fund house or
through the broker.

For a direct investment with fund house, you need to visit the nearby branch of the
fund house along with the necessary documents like address proof, identity proof, a
cancelled cheque and a passport size photograph. Fill in the application form of the
desired mutual fund and submit together with the documents.

For investing offline, though the broker, you need to search for a mutual fund advisor
in your locality and that person will guide you through all the formalities. This
method is suitable for the new-bee investors who are not aware of the procedures. It is
very time-consuming and full of hassles in the world, where everything is available
online today. Offline methods would vanish in coming years.

In order to invest in a mutual fund, the investor needs to comply with the KYC (Know
Your Client) requirement. For this, he needs to submit the copies of PAN (permanent
account number) card, address proof, age proof as required by the fund house.

23
1.8 Expenses incurred while investing in Mutual Funds

Investors in a mutual fund pay the fund's expenses. Some of these expenses reduce the
value of an investor's account; others are paid by the fund and reduce net asset value.

These expenses fall into five categories:

Management fee

The management fee is paid by the fund to the management company or sponsor that
organizes the fund, provides the portfolio management or investment advisory
services and normally lends its brand to the fund. The fund manager may also provide
other administrative services. The management fee often has breakpoints, which
means that it declines as assets (in either the specific fund or in the fund family as a
whole) increase. The fund's board reviews the management fee annually. Fund
shareholders must vote on any proposed increase, but the fund manager or sponsor
can agree to waive some or all of the management fee in order to lower the fund's
expense ratio.

While index funds generally charge a lower management fee than actively-managed
funds, prices have been converging in a margin compressing environment. In Canada,
management fees in fee-based mutual fund structures ("F" series) or direct investing
("D", "E", or "I" series depending on the issuer) are also lower than their advisor
series/commission-based counterparts ("A" series or "Advisor" series).

Distribution charges

Distribution charges pay for marketing, distribution of the fund's shares as well as
services to investors. There are three types of distribution charges.

 Front-end load or sales charge. A front-end load or sales charge is

a commission paid to a broker by a mutual fund when shares are purchased. It
is expressed as a percentage of the total amount invested or the "public
offering price", which equals the net asset value plus the front-end load per
share. The front-end load often declines as the amount invested increases,

24
 through breakpoints. The front-end load is paid by the investor; it is deducted
from the amount invested.
 Back-end load. Some funds have a back-end load, which is paid by the
investor when shares are redeemed. If the back-end load declines the longer
the investor holds shares, it is called a contingent deferred sales charges
(CDSC). Like the front-end load, the back-end load is paid by the investor; it
is deducted from the redemption proceeds.
 Distribution and services fee. Some funds charge an annual fee to compensate
the distributor of fund shares for providing ongoing services to fund
shareholders. In the United States, this fee is sometimes called a 12b-1 fee,
after the SEC rule authorizing it. The distribution and services fee is paid by
the fund and reduces net asset value.

Distribution charges generally vary for each share class.

Securities transaction fees incurred by the fund

A mutual fund pays expenses related to buying or selling the securities in its portfolio.
These expenses may include brokerage commissions. These costs are normally
positively correlated with turnover.

Shareholder transaction fees

Shareholders may be required to pay fees for certain transactions, such as buying or
selling shares of the fund. A fund may charge a fee for maintaining an individual
retirement account for an investor.

Some funds charge redemption fees when an investor sells fund shares shortly after
buying them (usually defined as within 30, 60 or 90 days of purchase). Redemption
fees are computed as a percentage of the sale amount. Shareholder transaction fees are
not part of the expense ratio.

25
Fund services charges

A mutual fund may pay for other services including:

 Board of directors or trustees fees and expenses

 Custody fee: paid to a custodian bank for holding the fund's portfolio in
safekeeping and collecting income owed on the securities
 Fund administration fee: for overseeing all administrative affairs such as
preparing financial statements and shareholder reports, SEC filings,
monitoring compliance, computing total returns and other performance
information, preparing/filing tax returns and all expenses of maintaining
compliance with state blue sky laws
 Fund accounting fee: for performing investment or securities accounting
services and computing the net asset value (usually every day the New York
Stock Exchange is open)
 Professional services fees: legal and auditing fees
 Registration fees: paid to the SEC and state securities regulators
 Shareholder communications expenses: printing and mailing required
documents to shareholders such as shareholder reports and prospectuses
 Transfer agent service fees and expenses: for keeping shareholder records,
providing statements and tax forms to investors and providing telephone,
internet and or other investor support and servicing
 Other/miscellaneous fees

The fund manager or sponsor may agree to subsidize some of these charges.

Expense ratio

The expense ratio equals recurring fees and expenses charged to the fund during the
year divided by average net assets. The management fee and fund services charges are
ordinarily included in the expense ratio. Front-end and back-end loads, securities
transaction fees and shareholder transaction fees are normally excluded.

To facilitate comparisons of expenses, regulators generally require that funds use the
same formula to compute the expense ratio and publish the results.

26
No-load fund

In the United States, a fund that calls itself "no-load" cannot charge a front-end load
or back-end load under any circumstances and cannot charge a distribution and
services fee greater than 0.25% of fund assets

Controversy regarding fees and expenses

Critics of the fund industry argue that fund expenses are too high. They believe that
the market for mutual funds is not competitive and that there are many hidden fees, so
that it is difficult for investors to reduce the fees that they pay. They argue that the
most effective way for investors to raise the returns they earn from mutual funds is to
invest in funds with low expense ratios.

Fund managers counter that fees are determined by a highly competitive market and,
therefore, reflect the value that investors attribute to the service provided. They also
note that fees are clearly disclosed.

27
1.9 Structure of Mutual Funds in India

Mutual Funds in India primarily have a 3-tier structure i.e. Sponsor (1st tier), Public
Trust (2nd tier) and Asset Management Company (3rd tier). Sponsor is any person
who himself or in association with another corporate, establishes a mutual fund. The
Sponsor seeks approval from the Securities & Exchange Board of India (SEBI). Once
SEBI approves it, the sponsor creates the Public Trust as per the Indian Trusts Act,
1882. Since Trusts have no legal identity in India, the Trust itself cannot enter into
contracts. Thus, Trustees are appointed who are authorized to act on behalf of the
Trust. The instrument of trust must be in the form of a deed between the Sponsor and
the trustees of the mutual fund registered under the provisions of the Indian
Registration Act. The Trust is then registered with SEBI leading to formation of
mutual fund. Henceforth, the Trust is known as mutual fund. Sponsor and the Trust
are two separate entities.

The Trustee’s role is only to act as internal regulators of mutual fund where they see,
whether the money is being managed as per the objectives. Trustees appoint the Asset
Management Company (AMC), to manage money collected through sale of mutual
fund’s units. The AMC’s Board of Directors have at least 50% of independent
directors. The AMC is also approved by SEBI. The AMC functions under the
supervision of its Board of Directors, the direction of the Trustees and SEBI. AMC in
the name of the Trust floats new schemes and manage these schemes by buying and
selling securities. In order to do this, the AMC needs to follow all rules and
regulations prescribed by SEBI and as per the Investment Management Agreement it
signs with the Trustees.

28
1.10 Regulation of mutual funds

Mutual funds are regulated primarily by Securities and Exchange Board of India
(SEBI). In 1996, SEBI formulated the Mutual Fund Regulation. SEBI is also the apex
regulator of capital markets and its intermediaries. Issuance and trading of capital
market instruments also comes under the purview of SEBI. Along with SEBI, mutual
funds are regulated by RBI, Companies Act, Stock exchange, Indian Trust Act and
Ministry of Finance. RBI acts as a regulator of Sponsors of bank-sponsored mutual
funds, especially in case of funds offering guaranteed returns. In order to provide a
guaranteed returns scheme, mutual fund needs to take approval from RBI. The
Ministry of Finance acts as supervisor of RBI and SEBI and appellate authority under
SEBI regulations. Mutual funds can appeal to Ministry of finance on the SEBI
rulings.

Some SEBI regulations for mutual funds

Mutual funds must set up AMC with 50% independent directors, a separate board of
trustee companies with minimum 50% of independent trustees and independent
custodians to ensure an arm’s length relationship between trustees, fund managers,
and custodians. As the funds are managed by AMCs and the custody of assets are
with trustees, a counter balancing of risks exists as both can keep tabs on each other.

SEBI takes care of the track record of a Sponsor, integrity in business transactions and
financial soundness while granting permission. The particulars of schemes are
required to be vetted by SEBI. Mutual funds must adhere to a code of advertisement.

As per the current SEBI guidelines, mutual funds must have a minimum of Rs. 50
crore for an open-ended scheme, and Rs. 20 crore corpus for the closed-ended
scheme. Within nine months, mutual funds must invest money raised from the saving
schemes. This protects the mutual funds from the disadvantage of investing funds in
the bullish market and suffering from poor NAV after that. Mutual funds can invest a
maximum of 25% in money market instruments in the first six months after closing
the funds and a maximum of 15% of the corpus after six months to meet short-term
liquidity requirements.SEBI inspects mutual funds every year to ensure compliance
with the regulations

29
 CHAPTER 2: RESEARCH AND METHODOLOGY

2.1 Meaning of Research and Methodology

Research Methodology is the specific procedures and techniques use to identify,

select, process and analyze information about a topic . A research design is simply
the framework of plan for a study that guides the collection and analysis of data.

Research Methodology is a systematic way to solve to solve a problem.

It is science of studying how research is to be carried out. Essential ,the procedures

by which researcher go about their work for describing , explaining and pretending
phenomenon are called research methodology. It is also defined as the study of

methods by which knowledge is gained . It’s aim is to give the work plan of research.
It is logical and systematic search for new and useful information on a particular
topic

The process used to collect information and data for the purpose of making decision.
The methodology may include publication research, interviews, survey and other
research techniques, and could include both present and historical information.

2.2 Objectives of the Study

• To study more about mutual funds in India.

• To discuss about various types of mutual fund in India.

• To study the process of investing in mutual fund.

• To study some merits and demerits of investing in mutual fund.

• To get an idea about the structure and regulations of mutual funds.

30
2.3 Scope of the study

1. This project focuses on the preferences of investment in mutual funds done by

people in Navi Mumbai only.
2. It would be helpful to identify different mutual funds schemes
available in market
3. This will also help to find out the process of investing in mutual
fund and how to purchase them in various modes i.e online or
offline.

2.4 Limitations

1. The study was limited ,as it was covering only mutual fund sector
and ignoring other investment sectors.
2. The lack of knowledge of respondent may be limited because of
data may not be accurate.
3. Sample has been collected from the respondents of Navi Mumbai
only.
4. The details were taken only from 60 respondent only,. Which was
one of the limitation of collecting data.
5. The data was collected only using questionnaire, interview and
observation method, this made the data less reliable.
6. The study only included the view of people in urban area .

2.5 Sample Size

Sampling is the process in which a representative part of a population for

the purpose of determining parameters or the characteristics of the whole
population is selected. This is called a sample. For selection of sample
special care should be taken that the sample is proper representative of the
whole population .

For this study random sampling technique was used . Which means we
randomly select people from the area . Random sampling is part of the
sampling technique in which each sample has an equal profitable of being
chosen. The details were taken only from 60 respondents.

31
2.6 Data Collection Method

Data collection is a process of collecting information from all the relevant

sources to find answers to the research problem, test the hypothesis and
evaluate the outcomes. Data collection methods can be divided into two
categories :

1. Primary Method of Data collection

2. Secondary Method of Data collection
3. For the study purpose both primary and secondary
Method of data collection is used.

Primary Data

In respect of primary data, the researcher directly collects data that have
not been collected previously. Primary data is data that is collected by a
researcher from first – hand sources, using methods like surveys,
interviews, or experiments. It is collected with the research project in mind,
directly from primary sources.

Primary data are information collected by a researcher specially for a

research assignment. Primary data are original in nature and directly related
to the issue or problem and current data. The primary data will be collected
by communicating with respondents through structured questionnaire. The
study was done with the help of primary data using the questionnaire as a
tool to assess the investment in fixed deposit and its behaviour.

Secondary Data

Secondary data refers to data which is collected by someone who is

someone other than the user. Secondary data was collected through various
sources like news papers, internet, books etc. the information is also
gathered after the interaction with people. Secondary data are the data
collected by a party not related to research study but collected these data
for some other purpose at different time in past. If the researcher uses these
data then these becomes secondary data for the current users. These may be
available in written, typed or in electronic forms.

32
2.7 Techniques and tools used for Data Analysis

There are various tools which are used in analyzing data. For collection of
primary data for this research work questionnaire and interview methods
have been used .

The following tools are used for representing and analysing data.

Data representation:

 Charts
 Table
 Questionnaire

33
 CHAPTER 3: REVIEW OF LITREATURE

Dr. Sandeep Bansal, Deepak Garg and Sanjeev K Saini (2012), have studied
Impact of Sharpe Ratio & Treynor’s Ratio on Selected Mutual Fund Schemes. This
paper examines the performance of selected mutual fund schemes, that the risk profile
of the aggregate mutual fund universe can be accurately compared by a simple market
index that offers comparative monthly liquidity, returns, systematic & unsystematic
risk and complete fund analysis by using the special reference of Sharpe ratio and
Treynor’s ratio.

Dr. K. Veeraiah and Dr. A. Kishore Kumar (Jan 2014), conducted a research on
Comparative Performance Analysis of Select Indian Mutual Fund Schemes.This study
analyzes the performance of Indian owned mutual funds and compares their
performance. The performance of these funds was analyzed using a five year NAVs
and portfolio allocation. Findings of the study reveals that, mutual funds out perform
naïve investment. Mutual funds as a medium-to-long term investment option are
preferred as a suitable investment
option by investors.

Dr. Yogesh Kumar Mehta (Feb 2012), has studied Emerging Scenario of Mutual
Funds in India: An Analytical Study of Tax Funds. The present study is based on
selected equity funds of public sector and private sector mutual fund. Corporate and
Institutions who form only 1.16% of the total number of investors accounts in the
MFs industry, contribute a sizeable amount of Rs. 2,87,108.01 crore which is 56.55%
of the total net assets in the MF industry. It is also found that MFs did not prefer debt
segment.

Dr Surender Kumar Gupta and Dr. Sandeep Bansal (Jul 2012), have done a
Comparative Study on Debt Scheme of Mutual Fund of Reliance and Birla Sunlife.
This study provides an overview of the performance of debt scheme of mutual fund of
Reliance, and Birla Sunlife with the help of Sharpe Index after

34
calculating Net Asset Values and Standard Deviation. This study reveals that returns
on Debt Schemes are close to Benchmark return (Crisil Composite Debt Fund Index:
4.34%) and Risk Free Return: 6% (average adjusted for last five year).

Prof. V. Vanaja and Dr. R. Karrupasamy (2013), have done a Study on the
Performance of select Private Sector Balanced Category Mutual Fund Schemes in
India. This study of performance evaluation would help the investors to choose the
best schemes available and will also help the AUM’s in better portfolio construction
and can rectify the problems of underperforming schemes. The objective of the study
is to evaluate the performance of select Private sector balanced schemes on the basis
of returns and comparison with their bench marks and also to appraise the
performance of different category of funds using risk adjusted measures as suggested
by Sharpe, Treynor and Jensen.

E. Priyadarshini and Dr. A. Chandra Babu (2011), have done Prediction of The
Net Asset Values of Indian Mutual Funds Using Auto- Regressive Integrated Moving
Average (Arima). In this paper, some of the mutual funds in India had been modeled
using Box-Jenkins autoregressive integrated moving average (ARIMA) methodology.
Validity of the models was tested using standard statistical techniques and the future
NAV values of the mutual funds have been forecasted.

Dr. Ranjit Singh, Dr. Anurag Singh and Dr. H. Ramananda Singh (August
2011), have done research on Positioning of Mutual Funds among Small Town and
Sub-Urban Investors. In the recent past the significant proportion of the investment of
the urban investor is being attracted by the mutual funds. This has led to the saturation
of the market in the urban areas. In order to increase their investor base, the mutual
fund companies are exploring the opportunities in the small towns and sub-urban
areas. But marketing the mutual funds in these areas requires the positioning of the
products in the minds of the investors in a different way. The product has to be
acceptable to the investors, it should be affordable to the investors, it should be made
available to them and at the same time the investors should be aware of it. The present
paper deals with all these issues. It measures the degree of influence on acceptability,

35
affordability, availability and awareness among the small town and sub-urban
investors on their investment decisions.

Prof. Kalpesh P Prajapati and Prof. Mahesh K Patel (Jul 2012), have done a
Comparative Study On Performance Evaluation of Mutual Fund Schemes Of Indian
Companies. In this paper the performance evaluation of Indian mutual funds is carried
out through relative performance index, risk-return analysis,
Treynor's ratio, Sharp's ratio, Sharp's measure, Jensen's measure, and Fama's measure.
The data used is daily closing NAVs. The source of data is website of Association of
Mutual Funds in India (AMFI). The study period is 1st January 2007 to 31st
December, 2011. The results of performance measures suggest that most of the
mutual fund have given positive return during 2007 to 2011.

C.Srinivas Yadav and Hemanth N C (Feb 2014), have studied Performance of

Selected Equity Growth Mutual Funds in India: An Empirical Study during 1 st June
2010 To 31st May 2013. The study evaluates performance of selected growth equity
funds in India, carried out using portfolio performance evaluation
techniques such as Sharpe and Treynor measure. S&P CNX NIFTY has been taken as
the benchmark. The study conducted with 15 equity growth Schemes (NAV ) were
chosen from top 10 AMCs ( based on AUM) for the period 1st June 2010 to 31st may
2013(3 years).

Rashmi Sharma and N. K. Pandya (2013), have done an overview of Investing in

Mutual Fund. In this paper, structure of mutual fund, comparison between
investments in mutual fund and other investment options and calculation of NAV etc.
have been considered. In this paper, the impacts of various demographic factors on
investors’ attitude towards mutual fund have been studied. For measuring various
phenomena and analyzing the collected data effectively and efficiently for drawing
sound conclusions, drawing pie charts has been used and for analyzing the various
factors responsible for investment in mutual funds.

Rahul Singal, Anuradha Garg and Dr Sanjay Singla (May 2013), have done
Performance Appraisal of Growth Mutual Fund. The paper examines the performance
of 25 Growth Mutual Fund Schemes. Over the time period Jan 2004 to Dec 2008. For
36
this purpose three techniques are used (I) Beta (II) Sharpe Ratio (III) Treynor Ratio.
Rank is given according to result drawn from this scheme and comparison is also
made between results drawn from different schemes and normally the different are
insignificant.

Dhimen Jani and Dr. Rajeev Jain (Dec 2013), have studied Role of Mutual Funds
in Indian Financial System as a Key Resource Mobiliser. This paper attempts to
identify, the relationship between AUM mobilized by mutual fund companies and
GDP growth of the India. To find out correlation coefficient
Kendall’s tau b and spearman’s rho correlation ship was applied, the data range was
selected from 1998-99 to 2009-10.

Dr. R. Narayanasamy and V. Rathnamani (Apr 2013), have done Performance

Evaluation of Equity Mutual Funds (On Selected Equity Large Cap Funds). This
study, basically, deals with the equity mutual funds that are offered for investment by
the various fund houses in India. This study mainly focused on the performance of
selected equity large cap mutual fund schemes in terms of risk- return relationship.
The main objectives of this research work are to analysis financial performance of
selected mutual fund schemes through the statistical parameters such as (alpha, beta,
standard deviation, r-squared,Sharpe ratio).

Dr. Ashok Khurana and Kavita Panjwani (Nov, 2010), have analysed Hybrid
Mutual Funds. Mutual fund returns can be compared using Arithmetic mean &
Compounded Annual Growth Rate. Risk can be analyzed by finding out Standard
Deviation, Beta while performance analysis is based on Risk-Return adjustment. Key
ratios like Sharpe ratio and Treynor ratio are used for Risk-Return analysis. Funds are
compared with a benchmark, industry average, and analysis of volatility and return
per unit to find out how well they
are performing with respect to the market Value at Risk analysis can be done to find
out the maximum possible losses in a month given the investor had made an
investment in that month. Based on the quantitative study conducted company a fund
is chosen as the best fund in the Balance fund growth
schemes.

37
 CHAPTER 4: DATA ANALYSIS, INTERPRETATION AND
PRESENTATON

Q.1] What is Gender of the Person?

Gender of A Person

MALE
FEMALE

Gender Percentage
Male 60
Female 40

From the above pie chart we can see that we have got 60% responses from MALE
and 40% from FEMALE.

38
Q.2] What is Your Qualification?

Qualification

Under Graduate
Graduated
Employed
Businessman
Retired
Others

Qualification Percentage
Under Graduate 30
Graduated 38
Employed 18
Businessman 10
Retired 2
Others 2

From the above chart we can see that 30% of the respondents are Under
Graduate, 38% of the respondents are Graduated , 18% of the respondents are
Employed, 10% of the respondents are Businessman , 2% of the respondents are
Retired , and the 2% of the respondents have Other Qualification.

39
Q.3] What is Your Age Group?

Age Group

19-21
22-40
41-60
Age Above 60

Age Group Percentage

19-21 58
22-40 27
41-60 12
Age Above 60 3

From the above pie chart we can see that 58% of the respondents fall
between the age group of 19-21 , and 27 % of the respondents fall between the age
group of of 22-40, 12% of the respondents fall between the age group of41-60
whereas 3% of the respondents have the age above 60.

40
Q.4] What is your Primary Source of Income ?

Primary Source Of Income

Income Received from Salary

Income Received from

Businees/Profession
Income Received from Pension

Income Received from

Investment
Other Source

Primary Source of Income Percentage

Income Received From Salary 25
Income Received From 28.3
Business/Profession
Income Received from Pension 5
Income Received from Investment 15
Other source 26.7

From the above Pie Chart we can see that 25% of the respondents primary source of
Income is from salary,28.3% of the respondents primary source of Income is from
Business/Profession , 5% of the respondents primary source of Income is pension
,15% of the respondents primary source of Income is Investment, 26.7% of the
respondents primary source of Income is from Other Sources.

41
Q.5] How much you Save monthly?

Monthly Saving

500-2000
2000-5000
5000-7000
7000-10000
More Than 10000

Monthly Saving Percentage

500-2000 36.7
2000-5000 35
5000-7000 16.7
7000-10000 10
More than 10000 1.7

From the above pie chart we can see that 36.7% of the respondents do monthly saving
between 500-2000 , 35% of the respondents do monthly saving between 2000-
5000,16.7% of the respondents do monthly saving between 5000-7000 , 10% of the
respondents do monthly saving between 7000-10000, and the remaining 1.7% of the
respondents do monthly saving more than 10000.

42
Q.6] Do you prefer for doing investment from your savings

Responses

Yes
No
Maybe

Prefer doing investment from your Percentage

savings
Yes 61.7
No 25
Maybe 13.3

From the above chart we come to know that 61.7% of the respondents prefer to do
investment from their savings, 25% of the respondents do not prefer for doing
investment from their savings and 13.3% of the respondents may do investments
from their savings.

43
Q.7] What kind of investment do you prefer the most?

Type of Investment

Saving A/c
Fixed deposit
Insurance
Mutual Fund
Post Office ,NSC,etc.
Shares/Debentures
Gold/Silver
Real Estate
Public Provident Fund

Type of Investment Percentage

Saving A/c 16.7
Fixed deposit 16.7
Insurance 5
Mutual Fund 31.7
Post Office ,NSC,etc 6.7
Shares/Debentures 13.3
Gold/Silver 5

Real Estate 3.3

Public Provident Fund 1.7

From the above pie chart we come to know that 16.7% of respondents prefer to invest
in Saving A/c, 16.7% of respondents prefer to invest in fixed deposits, 5% of
respondents prefer to invest in Insurance, 31.7% of respondents prefer to invest in
Mutual Funds, 6.7% of respondents prefer to invest in Post office,NSC etc, 13.3% of
respondents prefer to invest in shares/debentures , 5% of respondents prefer to invest
in Gold/Silver, 3.3% of respondents prefer to invest in Real Estate ,1.7% of
respondents prefer to invest in Public Provident Fund.

44
Q.8] While investing your money which factor you prefer most?

Factors of Investing Money

Liquidity
Low Risk
High Return
Company Reputation

Factors Of Investing Money Percentage

Liquidity 30

Low Risk 35

High Return 26.7

Company Reputation 8.3

From the above chart we come to know that 30% of the respondents prefer Liquidity
as major factor for investing their money,35 % of the respondents prefer Low Risk as
major factor for investing their money, 26.7% %of the respondents High Return as
major factor for investing their money, 8.3% of the respondents prefer Company
Reputation as major factor for investing their money.

45
Q.9] Have you ever invested your money in Mutual Fund?

Invested in Mutual Fund

Yes
No
May invest in future

Invested in Mutual Fund Percentage

Yes 31.7
No 28.3
May invest in Future 40

From the above pie chart we came to know that 31.7% of Respondents have invested
in Mutual Funds,28.3% of Respondents have not invested in Mutual Funds,40% of
Respondents may invested in future Mutual Funds.

46
Q.10] How much knowledge do you have about mutual funds ?

Knowledge about mutual funds

No knowledge about them

Partial knowledge about mutual

funds
Aware only of any specific
scheme in which you invested
Fully Aware about Mutual
Funds

Knowledge about Mutual Funds Percentage

No knowledge about them 13.3

Partial knowledge about mutual funds 46.7

Aware only of any specific scheme in 20

which you invested

Fully Aware about Mutual Funds 20

From the above pie chart we came to know that 13.3% of respondents don’t have
knowledge about them, 46.7% of respondents have partial knowledge about mutual
funds, 20% of respondents are aware only of any specific scheme in which they have
invested, 20% of the respondents are fully aware about Mutual funds.

47
Q.11] In which mutual fund you would like to invest ?

Mutual Fund Sector

Public
Private

Mutual Fund Sector Percentage

Public 45
Private 55

From the above pie chart we can see that 45% of respondents are interested to invest
in Public sector, 55% of respondents are interested to invest in Private sector.

48
Q,.12] How do you come to know about mutual funds ?

Come to Know about Mutual Funds

Advertisement
Friends or Relatives
Banks
Financial Advisors

Come to know about Mutual Funds Percentage

Advertisement 33.3
Friends or Relatives 31.7
Banks 21.7
Financial Advisors 13.3

From the above pie chart we come to know about that 33.3% of the respondents came
to know about mutual funds through advertisement,31.7% of the respondents came to
know about mutual funds through Friends or relatives, 21.7% of the respondents came
to know about mutual funds through Banks, 13.3% of the respondents came to know
about mutual funds through Financial advisors.

49
Q.13] Which Mutual Fund Scheme have you Invested ?

Mutual Fund Scheme

Open Ended
Close Ended
Liquid Fund
Mid Cap
Growth Fund
Regular Income Fund
Long Cap
Sector Fund

Mutual Fund Scheme Percentage

Open Ended 15
Close Ended 11.7
Liquid Fund 13.3
Mid Cap 8.3
Growth Fund 16.7
Regular Income Fund 18.3
Long Cap 13.3
Sector Fund 3.3

From the above pie chart we see that 15% of the respondents have invested in Open
Ended funds,11.7% of the respondents have invested in Close Ended funds,13.3% of
the respondents have invested in Liquid funds,8.3% of the respondents have invested
in Mid Cap funds,16.7% of the respondents have invested in Growth funds,18.3% of
the respondents have invested in Regular Income funds,13.3% of the respondents
have invested in Long Cap funds, and 3.3% of the respondents have invested in Sector
Fund

50
Q.14] Which feature of mutual fund you think is beneficial?

Beneficial feature of mutual fund

Diversification

Better Returns& Safety

Reduction in Risk & Transaction

Cost
Regular Income

Tax Benefit

Beneficial feature Percentage

Diversification 11.7
Better Returns& Safety 33.3
Reduction in Risk& Transaction Cost 25
Regular income 18.3
Tax Benefit 11.7

From the above pie chart we can see that 11.7% of the respondents think that
Diversification is beneficial feature of mutual fund,33.3% of the respondents think
that Better Returns & Safety is beneficial feature of mutual fund,25% of the
respondents think that Reduction in Risk& Transaction Cost is beneficial feature of
mutual fund,18.3% of the respondents think that Regular Income is beneficial feature
of mutual fund,11.7 of the respondents think that Tax Benefit is beneficial feature of
mutual fund.

51
Q.15] What you think is one of the drawback of mutual funds?

Drawbacks of Mutual Funds

Mutual funds are subject to

market risk.
Diversification of portfolio
doesn't maximize returns
Selecting right financial
securities is not easy
Fees and Expenses are more

Drawbacks of Mutual Funds Percentage

Mutual funds are subject to market risk. 28.3
Diversification of portfolio doesn't 20
maximize returns
Selecting right financial securities is not 26.7
easy
Fees and Expenses are more 25

From the above pie chart we can see that 28.3% of respondent think that one of the
drawback of mutual funds are that they are subject to market risk, 20% of respondent
think that one of the drawback of mutual funds are that the diversification of portfolio
doesn’t maximize returns ,26.7% of respondent think that one of the drawback of
mutual funds are that Selecting right financial securities is not easy, 25% of
respondent think that one of the drawback of mutual funds are that the fees and
expenses of them are more .

52
Q.16] In Which mutual fund you have invested?

List of Mutual Funds

SBI Mutual Funds

UTI
HDFC
Reliance
ICICI Prudential Funds
Axis Mutual Funds
Others

List of Mutual Funds Percentage

SBI Mutual Funds 23.3
UTI 6.7
HDFC 10
Reliance 16.7
ICICI Prudential Funds 18.3
Axis Mutual Funds 11.7
Others 13.3

From the above pie chart we can see that 23.3% of the respondents have invested in
SBI Mutual Funds,6.7% of respondents have invested in UTI, 10% of the
respondents have invested in HDFC, 16.7% of the respondents have invested in
Reliance,18.3% of the people have invested in ICICI Prudential funds ,11.7% of the
respondent have invested in Axis Mutual Fund,13.3% of the respondent have invested
in other fund.

53
Q.17] When you invest in mutual fund which mode of investment will you prefer?

Mode Of Investement

One Time Investment

SIP

Mode of Investment Percentage

One Time Investment 42
SIP 58

From the above Pie Chart we can see that 42% of the respondents have chosen for
One Time Investment whereas 58% of the respondents have opted for SIP.

54
Q.18] From Where did you purchased your Mutual Funds?

Source of Purchasing Mutual Funds

Directly From Asset

Management Companies (AMC)
Brokers Only

Brokers/Sub Brokers

Other Sources

Sources of Purchasing Percentage

Directly From Asset Management 28.3
Companies (AMC)
Brokers Only 18.3
Brokers/Sub Brokers 21.7
Other Sources 31.7

From the above pie chart we can see that 28.3% of respondents have purchased
Directly From Asset Management Companies (AMC),18.3% of respondents have
purchased Directly From brokers, 21.7% of respondents have purchased Directly
From Brokers/Sub Brokers,31.7% of respondents have purchased Directly From
Other Sources.

55
Q.19] How would you like to receive the returns every year?

Returns For Mutual Fund

Dividend Payment
Dividend Reinvestment
Growth & NAV

Returns For Mutual Fund Percentage

Dividend Payment 28.3

Dividend Reinvestment 36.7

Growth& NAV 35

From the above pie chart we come to know that 28.3% of the respondents want
Dividend Payment as a return for their mutual fund,36.7% of the respondents want
Dividend Reinvestment as the return for their mutual fund, 35% of the respondent
want Growth and NAV as their return for mutual fund.

56
Q.20] Will you Suggest your friend or relatives to start investing in mutual funds?

Suggestions for investing in mutual funds

Yes
No
Maybe

Suggestion for Investing In mutual Percentage

funds
Yes 50
No 13.3
Maybe 36.7

From the above pie chart we can see that 50% Respondent will suggest their friends
and relatives to invest in mutual funds,13.3% Respondent will not suggest their
friends and relatives to invest in mutual funds,36.7% Respondent May suggest their
friends and relatives to invest in mutual funds.

57
 CHAPTER 5: FINDINGS, SUGGESTIONS AND CONCLUSION

5.1Findings-

 We have got 60% responses from MALE and 40% from FEMALE.

 We can see that 30% of the respondents are Under Graduate, 38% of the
respondents are Graduated , 18% of the respondents are Employed, 10% of the
respondents are Businessman , 2% of the respondents are Retired , and the 2%
of the respondents have Other Qualification.

 We can see that 58% of the respondents fall between the age group of 19-21 ,
and 27 % of the respondents fall between the age group of of 22-40, 12% of
the respondents fall between the age group of41-60 whereas 3% of the
respondents have the age above 60.

 We can see that 25% of the respondents primary source of Income is from
salary,28.3% of the respondents primary source of Income is from
Business/Profession , 5% of the respondents primary source of Income is
pension ,15% of the respondents primary source of Income is Investment,
26.7% of the respondents primary source of Income is from Other Sources.

 We can see that 36.7% of the respondents do monthly saving between 500-
2000 , 35% of the respondents do monthly saving between 2000-5000,16.7%
of the respondents do monthly saving between 5000-7000 , 10% of the
respondents do monthly saving between 7000-10000, and the remaining 1.7%
of the respondents do monthly saving more than 10000.

 We come to know that 61.7% of the respondents prefer to do investment from

their savings, 25% of the respondents do not prefer for doing investment

58
 from their savings and 13.3% of the respondents may do investments from
their savings.

 We come to know that 16.7% of respondents prefer to invest in Saving A/c,

16.7% of respondents prefer to invest in fixed deposits, 5% of respondents
prefer to invest in Insurance, 31.7% of respondents prefer to invest in Mutual
Funds, 6.7% of respondents prefer to invest in Post office,NSC etc, 13.3% of
respondents prefer to invest in shares/debentures , 5% of respondents prefer to
invest in Gold/Silver, 3.3% of respondents prefer to invest in Real Estate
,1.7% of respondents prefer to invest in Public Provident Fund.

 We come to know that 30% of the respondents prefer Liquidity as major factor
for investing their money,35 % of the respondents prefer Low Risk as major
factor for investing their money, 26.7% %of the respondents High Return as
major factor for investing their money, 8.3% of the respondents prefer
Company Reputation as major factor for investing their money.

 We came to know that 31.7% of Respondents have invested in Mutual

Funds,28.3% of Respondents have not invested in Mutual Funds,40% of
Respondents may invested in future Mutual Funds.

 We came to know that 13.3% of respondents don’t have knowledge about

them, 46.7% of respondents have partial knowledge about mutual funds, 20%
of respondents are aware only of any specific scheme in which they have
invested, 20% of the respondents are fully aware about Mutual funds.

 We can see that 45% of respondents are interested to invest in Public sector,
55% of respondents are interested to invest in Private sector

 We come to know about that 33.3% of the respondents came to know about
mutual funds through advertisement,31.7% of the respondents came to know
about mutual funds through Friends or relatives, 21.7% of the respondents

59
 came to know about mutual funds through Banks, 13.3% of the respondents
came to know about mutual funds through Financial advisors.

 We see that 15% of the respondents have invested in Open Ended funds,11.7%
of the respondents have invested in Close Ended funds,13.3% of the
respondents have invested in Liquid funds,8.3% of the respondents have
invested in Mid Cap funds,16.7% of the respondents have invested in Growth
funds,18.3% of the respondents have invested in Regular Income funds,13.3%
of the respondents have invested in Long Cap funds, and 3.3% of the
respondents have invested in Sector Fund.

 we can see that 11.7% of the respondents think that Diversification is

beneficial feature of mutual fund,33.3% of the respondents think that Better
Returns & Safety is beneficial feature of mutual fund,25% of the respondents
think that Reduction in Risk& Transaction Cost is beneficial feature of mutual
fund,18.3% of the respondents think that Regular Income is beneficial feature
of mutual fund,11.7 of the respondents think that Tax Benefit is beneficial
feature of mutual fund.

 We can see that 28.3% of respondent think that one of the drawback of mutual
funds are that they are subject to market risk, 20% of respondent think that
one of the drawback of mutual funds are that the diversification of portfolio
doesn’t maximize returns ,26.7% of respondent think that one of the drawback
of mutual funds are that Selecting right financial securities is not easy, 25% of
respondent think that one of the drawback of mutual funds are that the fees
and expenses of them are more .

 We can see that 23.3% of the respondents have invested in SBI Mutual
Funds,6.7% of respondents have invested in UTI, 10% of the respondents
have invested in HDFC, 16.7% of the respondents have invested in
Reliance,18.3% of the people have invested in ICICI Prudential funds ,11.7%

60
 of the respondent have invested in Axis Mutual Fund,13.3% of the respondent
have invested in other fund.

 We can see that 42% of the respondents have chosen for One Time Investment
whereas 58% of the respondents have opted for SIP.

 We can see that 28.3% of respondents have purchased Directly From Asset
Management Companies (AMC),18.3% of respondents have purchased
Directly From brokers, 21.7% of respondents have purchased Directly From
Brokers/Sub Brokers,31.7% of respondents have purchased Directly From
Other Sources.

 We can see that 50% Respondent will suggest their friends and relatives to
invest in mutual funds,13.3% Respondent will not suggest their friends and
relatives to invest in mutual funds,36.7% Respondent May suggest their
friends and relatives to invest in mutual funds.

61
5.2 Suggestions-

 There is no such thing as an ideal mutual fund portfolio that can suit need and
risk appetite of each and every individual. While there is no dearth of good
mutual funds in the market today, building a portfolio depends on preferences
and objectives of each individual.

 The factors that come into play include age of the investor , risk appetite , time
at hand to let investment grow, need for money-immediate or later – and more
importantly , the purpose of making such an investment. Broadly – we have
‘Aggressive’, ‘moderate’ and ‘Conservative’ portfolios where each of them
incorporates a different genre of mutual fund schemes to suit varying needs.

 An individual should work towards building a stable portfolio which includes

large cap funds to provide your portfolio required stability, funds with proven
track record and maybe some aggressive funds to spice up your portfolio.
Therefore it is advisable for the investors to understand their risk profile and
invest accordingly.

 Mutual fund companies should dispatch their annual report in time to their
investors so that the investors are informed about the company’s financial
position. This will help the investor to know the status of their investment.

 It is suggested that the investors should not consider only one or two factors
for investing in mutual fund but they should consider other factors such as
higher return, degree of transparency, efficient service, fund management and
Reputation of mutual fund in selection of mutual funds.

62
5.3 Conclusion

In Indian mutual fund industry, most of the mutual fund schemes have been
performing inefficiently. However, when analysed within their category as Growth,
Income, Balanced and ELSS, situation is much better and approximately half of the
schemes in each 211 category have been performing efficiently. Load fee and expense
ratio have been found as the major cause of inefficiency in mutual fund. For all the
inefficient schemes, there are respective peer efficient schemes in particular weights
by following which these schemes might attain efficiency level. Thus, for the entire
set of inefficient schemes, target values or virtual inputs are there for achieving the
efficiency level. These target values shows that expense ratio and load fee should be
reduced to achieve efficiency. There are some attributes of mutual fund schemes as
their age, asset ratio and past performance that affect their efficiency performance.
Older schemes and schemes with high asset ratio are performing inefficiently.
However, mutual funds which had good performance in past are more likely to
perform well in future. The number of investors and the amount invested in mutual
funds is quite low. Investors consider mutual funds as low return and high risk
investment avenue. Its liquidity is perceived as high but tax benefits and procedural
understanding are low for these. Also, investors judge mutual fund schemes for
investment on the basis of their structure, size, performance, status and professional
expertise. Further, investors expect good regulations, expert advice and strong
grievance mechanism from mutual fund companies. Most of the investors have been
investing in Growth, Income and Balanced mutual fund schemes. Also we can see
that how easy it has been in investing in mutual funds now a days, as one can get
many methods of investing in mutual fund. Process of purchasing mutual fund units
can be done either offline i.e directly investing through AMU’S or Online through
their websites and third party apps such as groww App. The transperancy between the
investor and a company have increased now days as there is direct communication
between both of them and don’t involve any third Parties like brokerers in middle.
Hence forth from the study we can study in detail about mutual funds in India and
how easy it has been to invest in them.

63
Questionnaire

1. What is Your Name?

2. What is your Qualification?

o Under Graduate
o Graduated
o Epmloyed
o Businessman
o Retired
o Others

3. What is your primary source of income?

o Income received from Salary
o Income received from Business/ Profession
o Income received from Pension
o Income received from Investment
o Other source

4. How much you Save monthly?

o 500-2000
o 2000-5000
o 5000-7000
o 7000-10000
o More Than 10000

5. Do you prefer for doing investment from your savings? *

o Yes
o No
o Maybe

6. What kind of investment do you prefer the most? *

o Saving A/c
o Fixed deposit
o Insurance
o Mutual Fund

64
 o Post Office ,NSC,etc.
o Shares/Debentures
o Gold/Silver
o Real Estate
o Public Provident Fund
7. While investing your money which factor you prefer most? Any One *
o Liquidity
o Low Risk
o High Return
o Company Reputation

8. Have you ever invested your money in Mutual Fund? *

o Yes
o No
o May invest in future

9. How much knowledge do you have about mutual funds ? *

o No knowledge about them
o Partial knowledge about mutual funds
o Aware only of any specific scheme in which you invested
o Fully Aware about Mutual Funds

10. In which mutual fund you would like to invest ?

o Public
o Private

11. How do you come to know about mutual funds ? *

o Advertisement
o Friends or Relatives
o Banks
o Financial Advisors

12. Which Mutual Fund Scheme have you used ? *

o Open Ended
65
 o Close Ended
o Liquid Fund
o Mid Cap
o Growth Fund
o Regular Income Fund
o Long Cap
o Sector Fund

13. Which feature of mutual fund you think is beneficial? *

o Diversification
o Better Returns& Saftey
o Reduction in Risk & Transaction Cost
o Regular Income
o Tax Benefit

14. What you think is one of the drawback of mutual funds? *

o Mutual funds are subject to market risk.
o Diversification of portfolio doesn't maximize returns
o Selecting right financial securities is not easy
o Fees and Expenses are more

15. In Which mutual fund you have invested ? *

o SBI Mutual Funds
o UTI
o HDFC
o Reliance
o ICICI Prudential Funds
o Axixs Mutual Funds
o Others

16. When you invest in mutual fund which mode of investment will you prefer? *
o One Time Investment
66
 o Systematic Investment Plan (SIP)

17. From Where did you purchased your Mutual Funds *

o Directly From Asset Management Companies (AMC)
o Brokers Only
o Brokers/Sub Brokers
o Other Sources

18. Which sector are you investing in Mutual Funds? *

o General
o Oil&Petroleum
o Gold Fund
o Diversified Equity Fund
o Power Sector
o Debt Fund
o Banking Fund
o Real Estate Fund

19. How would you like to receive the returns every year? *
o Dividend Payment
o Dividend Reinvestment
o Growth & NAV

20. Will you Suggest your friend or relatives to start investing in mutual funds? *
o Yes
o No
o Maybe

67
Biblography

https://en.wikipedia.org/wiki/Mutual_funds_in_India

https://www.paisabazaar.com/mutual-funds/mutual-funds-in-india/

https://www.moneycontrol.com/news/business/mutual-funds/-1326381.html

https://www.researchgate.net/publication/301826904_A_Comparative_Study_on_Perf
ormance_of_Selected_Mutual_Funds_with_reference_to_Indian_Context

https://blog.ipleaders.in/mutual-funds-regulation-in-india/

https://myinvestmentideas.com/2019/05/how-to-invest-in-mutual-funds-online-and-
offline/

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