A

Project Report on

A study on performance of TATA MUTUAL FUND.

at
(KSN CREDENCE COMMODITIES TRADING
PVT.LTD)

Submitted to
SAVITRIBAI PHULE PUNE UNIVERSITY

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY
PRASAD JAYARAM JOSHI

MBA FINANCE

Under the guidance of

DR ANISHA MAHINDRAKAR
JSPM’S JAYWANT INSTITUTE OF MANAGEMENT STUDIES

1
 2021 - 2023

DECLARATION
I, the undersigned, hereby declare that the Project Report entitled “A study on performance of
TATA MUTUAL FUND.” written and submitted by me to the University of Pune, in partial
fulfilment of the requirement for the award of degree of Master of Business Administration
under the guidance of DR ANISHA MAHINDRAKAR is my original work and the conclusions
drawn therein are based on the material collected by myself.
Place:
Date: Name of Student

2
 GUIDE’S CERTIFICATE

This is to certify that the Project Report entitled “A study on performance of TATA
MUTUAL FUND” which is being submitted herewith for the award of the degree of Master
of Business Administration of University of Pune, is the result of the original research work
completed by PRASAD JAYARAM JOSHI my supervision and guidance.

To the best of my knowledge and belief the work embodied in this Project Report has not
formed earlier the basis for the award of any degree or similar title of this or any other
University or examining body.

Place: - Pune
Date : -
DR ANISHA MAHINDRAKAR

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 ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my guide
ANISHA MAHINDRAKAR MAM for his/her exemplary guidance, monitoring and
constant encouragement throughout the course of this project. The blessing, help and guidance
given by His/her time to time shall carry me a long way in the journey of life on which I am
about to embark.

I also take this opportunity to express a deep sense of gratitude to MANGER / REPORTING
AUTHORITY IN ORGANIZATION for his/her cordial support, valuable information and
guidance which helped me in completing this project through various stages.

I wish to express a special thanks to all teaching and non-teaching staff members of JSPM’S
JAYWANT INSTITUTE OF MANAGEMENT STUDIES, Tathwade their continuous
support. I would like to acknowledge all my family members, relatives and friends for their
help and encouragement.

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 INDEX
SR. NO TITLE PAGE.NO
Executive summary 10
I Introduction 11
II Company profile 14
III Research Design & 19
Methodology
IV Conceptual Background 22
V Analysis of data 38

VI Finding, Conclusions, 64
Suggestion
Bibliography 69
Appendix/Annexure

List of Tables

Titles

5.1 Table showing on what kind of investment options respondents

Prefer

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5.2 Table showing Investment avenues
5.3 Table showing investment portfolio
5.4 Table showing awareness of mutual fund
5.5 Table showing proportion of amount invest in mutual fund
5.6 Table showing interest to the area investor in mutual fund
5.7 Table showing Investors opinion of open ended and close ended
scheme.
5.8 Table showing on schemes preferred by the investors
5.9 Table showing Table showing on while buying a mutual fund.

5.10 Table showing Number of investor contact while investing.

5.11 Table showing Number of investor deals with different scheme.

5.12 Table showing Trade option Preferred by investor

5.13 Table showing Objective behind trading in Mutual Fund.
5.14 Table showing percentage of return expect in Mutual Fund.
5.15 Table showing Investor willing to take Risk.
5.16 Table showing Opinion about TataTaxSaving Mutual Fund.
5.17 table showing investment motive with TataTaxSaving mutual fund
5.18 table showing factor considering by investing in mutual fund

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 List of Graphs

Titles
5.1Graph shoeing on what kind of investment options
respondents prefer
5.2 Graph showing Investment avenues
5.3 Graph showing investment portfolio
5.4 Graph showing awareness of mutual fund
5.5 Graph showing proportion of amount invest in mutual fund
5.6 Graph showing interest to the area investor in mutual fund

5.7 Graph showing Investors opinion of open ended and close ended scheme.

5.8 Graph showing on schemes preferred by the investors

5.9 Graph showing on while buying a mutual fund.
5.10 Graph showing Number of investor contact while investing.

5.11 Graph showing Number of investor deals with different scheme.

5.12 Trade option Preferred by investor

5.13 Graph showing behind trading in Mutual Fund.

5.14 Graph showing percentage of return expect in Mutual Fund.

5.15 Graph showing Investor willing to take Risk.

5.16 Graph showing Opinion about TataTaxSaving Mutual Fund.

5.17 Graph showing investment motive with TataTaxSaving mutual fund

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5.18 Graph showing factor considering by investing in mutual fund

EXECUTIVE SUMMARY

Financial market’s main function is to facilitate transfer of funds from surplus sectors to
deficit sectors. A financial market consists of investor or buyers, sellers, dealers and does not
refer to physical location. Indian financial system consists of two markets, viz. money and
capital market. The core of money market is the inter-bank call money market. It has two
components - organised and unorganised.

Capital market provides the framework in which savings and investments take place. On
one hand it enables companies to raise resources from the investing community and on the other,
it facilitates households to invest their savings in industrial or commercial activities. The capital
market consists of primary and secondary segments. In primary market it deals with the issue of
new instruments by the corporate sector such as equity shares, preference shares, and debentures.
The secondary market or stock exchanges where existing Securities are traded. Capital market
plays a major role in Indian financial system.
So, Equities & mutual fund is the part of capital market. Mutual fund industry in India
began with setting up of Unit Trust of India (UTI) in 1964 by the government of India. Now a
day mutual fund is playing very important role in the industry. Investors will get the benefit of
return, capital appreciation, tax benefits and safety to their investment and companies will get
the capital for their growth. Recently they have also started Systematic Investment Plan(SIP)
with the help of this even small investors (minimum of Rs. 100)can start investing, by this even
students can also invest in this fund. So, we came to know how this mutual fund works. .

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 The saving of an individual are spread through different means of investment one of them
is mutual fund which is a growing investment now a days because of diversified risk and lack of
time to look after their money.

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 Chapter 1
INTRODUCTION

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 MUTUAL FUND
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion to the number of units
owned by them. Thus, a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. Mutual funds have opened new avenues for investors by virtually bringing the
whole thing to their doorsteps. The Financial Market has seen a lot of changes due to the
Liberalization of the Indian Economy. As per the trend, the Indian Mutual Funds industry has also
seen a sea of changes and growth. Due to assured returns and security to the investment, there has
been a great attraction towards Mutual funds (Sanyasi, 2013). Significant market potential, rising
income level, high household saving rate, growing risk-taking appetite, the wide-ranging regulatory
framework by Securities and Exchange Board of India (SEBI), encouraging tax benefits, innovative
products, investors awareness initiative, financial security, advertisements based on mutual fund
awareness and many more encouraging steps taken by the government and financial companies
are the reasons for having mutual funds as a preferred investment option among small but active
investors. Small active investors face many fundamental and technical problems in decision-making
regarding their stock market investment. These investors do not have extensive knowledge of
market behaviour and lack knowledge about making maximum gains by proper timing and
investment selection. Tax-saving mutual fund schemes or equity-linked savings schemes (ELSS) are
the most preferred investment options in India among small and active investors. These schemes
are the best options for investors looking for tax incentives. ELSS is the only equity- based tax-
saving instrument that offers tax deduction under Section 80C of the Income-Tax Act on
investments of up to Rs 1,50,000. ELSS has the shortest time frame agreeably in a tax saving option
under Section 80C of the Income Tax Act, i.e., of three years. The Mutual funds’ investment
objectives mainly comprise pure growth scheme, balanced schemes, and tax saving schemes. The
tax saving scheme performs as a tax shield for the investors and is more profitable among the three
(SEBI, 2013) Das, J., & Sen, SK (2014). The return of the equity-linked savings scheme (ELSS) is
market-linked as the funds are invested in equity shares that have high risk but high returns, thus
save tax too J.Lily, & Anusuta, D. (2012). The rapid growth of mutual funds necessitates a review
of India’s tax-saving mutual fund schemes’ success. One of the reasons Indian investors
incorporate tax-saving mutual fund schemes to their investments is this.

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 1.2 OBJECTIVES OF THE STUDY
 To Study the various schemes of Tata mutual fund.
 To compare different schemes of Tata mutual fund
 To identify most beneficial Mutual fund.

1.3 SCOPE OF THE STUDY

The study conducted on “performance of TATA Mutual fund.” in the real world has wider
scope. The economic activity concerned with great fluctuations in the economic system. Nowadays
the business people are interested to invest in the mutual funds and equities. They are giving a
much importance to this particular field, which leads to study more about this area. By conducting
study in this specified field can understand how the risk and return involved in the future time with
the past experience. The study brings light in various segment, they are

➢ To gain new and valid ideas.

➢ To know the current issues as regards to the research area.

➢ To gain more knowledge, by direct and personal experience.

➢ To broaden the perspective and set the work in context.

➢ To know the actual importance of this research.

➢ To spot the areas which have not been researched

1.4 Limitations of the Study:

The limitations of the study are as follows:
➢ The study concentrated only on the Mutual Funds.

➢ Time constraint.

.
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13
Chapter 2: Company Profile

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 Name of the organisation: -

KSN CREDENCE COMMODITIES TRADING PVT.LTD

Address: -
Kazmi Chamber, Park Road, Hazratganj Lucknow 226001, India

Vision and mission of the organisation: -

● The mission of the company is to work together with integrity and make our customers feel
valued.
● To create valuable relationship and provide the best financial services and provide these financial
services most professionally.
● To pr

● Provide service, par excellence and become your spirit of change.

● Simply to help you to maximize your returns. Yours interests no matter big or small.

● They provide services, par excellence and become your spirit of change.

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 Historical Background of the Organization: -

● The brand name Stockart and logo are the registered trademarks of KSN Credence
Commodity Trading Pvt. Ltd. KSN Credence Commodities Trading Pvt. Ltd. Member of
MCX (Multi Commodity Exchange) and & BSE (Bombay Stock Exchange) is the best known
names in Indian financial services,KSN Credence is offering wide range of services related
from Trading to Investment in Commodities, Equities & Currency
, Mutual funds, Research & Financing. Our Company was Founded in 2012 and has its
headquartered in Lucknow

● At KSN, we believe that the quality of the team determines the quality of the product. Hard
work, honest effort, and sincerity are the traits we value
the course of our journey, our business has established a firm foothold in its industry. Our
belief is that customer satisfaction is as important as our products and services, and it has helped in
establishing garner a vast base of Franchisee, Clients & Branches Pan-India which continues to
grow by the day.Our business employees are dedicated towards their respective roles and put in a lot
of effort to achieve the common vision and larger goals of the company.
● After having a track record for over the years, We are planning to foray into the growing retail
segment in a big way. We would be expanding across the globe with a wide network of our
Regional offices, Branches, Franchises/Sub-Brokers. We would be offering a complete basket in
financial services. We are looking at ourselves amongst one of the top ten broking firm in India by
2022. To achieve that, we have very aggressive plans of expansion. KSN Credence assure to provide
best services, competitive rates and better terms & conditions with all the necessary support required
to make Trading & Investment business profitable and scalable.

Product profile of the organisation: -

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 Equity and Derivatives Trading: - Shares are the most Commonly known form of investment in
the world. It gives you part of ownership or share in Business. An equity investment generally
refers to the buying and holding or trading of shares to gain income from daily price movements,
dividends and capital gains, as the value of the stock moves. The tenure of investors varies from
few minutes (for day Trader's/ arbitrageurs-short term) to multiple years (for long term investors).
In today’s equity markets provide modern, fully computerized trading systems designed to offer
investors to invest in easier way".
o At Stockart, we provide Quality of services whose functions is beyond mere execution of
Buying & Selling. Our Wide range of daily, weekly and special Research reports with in-
depth analysis on markets Wide array of products including Technical, Fundamental,
Derivatives, Macroeconomic and Mutual Fund research undertaken by Expert Sector
Analysts with professional industry experience helps you assimilate massive amount of
Information.

 Commodity Trading: -Stockart offers commodity trading to all its retail clients. Our clients have
the provision to trade in commodities through futures and options. Agriculture, oil and gas,
precious and base metals are the different complexes that are available to the clients for trading in
commodities. Stockart is a registered member of the Multi Commodity Exchange of India
Limited (MCX), National Commodity & Derivatives Exchange Limited (NCDEX), Spot
Exchange and Indian Commodity Exchange Limited (ICEX), thus giving its clients the
opportunity to trade in various commodities on these trading platforms

 Mutual Fund: - A mutual fund is a company that pools money from many investors and invests
the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the
mutual fund are known as its portfolio. Investors buy shares in mutual funds. Each share
represents an investor’s part ownership in the fund and the income it generates.

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 Depository Services: -Being depository participants of National Securities Depository Limited
(NSDL) and Central Depository Services (India) Limited (CDSL), Stockart offers depository
services to all its clients. Depository services include maintenance and/or transfer of ownership
records of securities held by market participants in an electronic form. Depository services are
offered to clients through dematerialization (demat) accounts. Requirements of dematerialization,
re-materialization, pledging and transfer of shares, as well as conversion and redemption of
mutual fund units, etc of our clients are met through depository services

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Chapter 3: Research Methodology

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RESEARCH METHODOLOGY: -

A Research design is a method and procedure for acquiring information needed to solve
the problem. A research design is the basic plan that helps in the data collection or analysis. It
specifies the type of information to be collected the sources and data collection procedure.
The present study is descriptive and it is a fact-finding investigation with adequate
interpretation. It is undertaken in many circumstances. When the researcher is interested in
knowing, the characteristics of certain groups such as age, educational level, occupation or
income, interested in knowing the proportion of in a given population who have behaved in
particular manner, making the projections of certain things, or determining the relationships
between two or more variables, descriptive study may be necessary. Descriptive data are
commonly used as directed bases of marketing decisions; these studies are well structured.

DATA COLLECTION: -

In order to information from the respondent survey method has been adopted. A neatly
constructed questionnaire was prepared to collect information from the respondents regarding
information about the mutual fund. It contains both open-ended and close-ended questionnaire.

Primary Data: -
Primary data is the first-hand data collected by the researcher directly it’s the fresh data.
The sources of primary data from this study purpose are as follows:
 Questionnaire

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Secondary Data: -

Secondary data is the already available information collected someone hence for their
own study purpose and it is the published sources of information. The secondary data
sources for this study purpose are:

 Company broachers, documents & other related materials

 Websites

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Chapter 4: Conceptual Background

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Literature Review: -
Any scholars‟ Researchers and writers have done the study on “Analysis of mutual fund
performance in India”. Where the objectives were completely different on the basis of the
needs they had as on when it got a raised. The researchers hear as viewed all such work on the
same, for the purpose of these study but the objectives of the researcher on this area on
completely different than that of those and the need two is also having variation is it. As to
increase the knowledge on the same by getting some sort of the practiced exposure

Literature on mutual fund performance evaluation is enormous. A few research studies that have
influenced the preparation of this paper substantially are being followed. Sharpe, William F. (1966)
suggested a measure for the evaluation of Mutual fund performance. Drawing on results obtained in
the field of portfolio analysis, economist Jack L. Treynor’s 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 meaning fulmanner. Michael C. Jensen (1967) derived a
risk-adjusted measure of portfolio performance (Jensen’s alpha) that estimates how much a manager’s
forecasting ability contributes to fund’s returns. Then after excluding funds whose returns are less
than risk-free returns, 58 schemes are finally used for further analysis. The results of performance
measures suggest that most of mutual fund schemes in the sample of 58were able to satisfy investor’s
expectations by giving excess returns over expected returns based on both premium for systematic
risk and total risk. Bijan Roy, etc. all conducted an empirical study on conditional performance of
Indian mutual funds.
Jack Treynor (1965) developed a methodology for performance evaluation of a mutual fund
that is referred to as reward to volatility measure, which is defined as average excess return on
the portfolio. This is followed by Sharpe (1966) reward to variability measure, which is average
excess return on the portfolio divided by the standard deviation of the portfolio.
Sharpe (1966) developed a composite measure of performance evaluation and imported superior
performance of 11 funds out of 34 during the period 1944-63.
Michael C. Jensen (1967) conducted an empirical study of mutual funds in the period of 1954-
64 for 115 mutual funds. The results indicate that these funds are not able to predict security
prices well enough to outperform a buy the market and hold policy. The study ignored the gross
management expenses to be free. There was very little evidence that any individual fund was
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able to do significantly better than which investors expected from mere random chance.
Jensen (1968) developed a classic study; an absolute measure of performance based upon the
Capital Asset Pricing Model and reported that mutual funds did not appear to achieve abnormal
performance when transaction costs were taken into account.

Carlsen (1970) evaluated the risk-adjusted performance and emphasized that the conclusions
drawn from calculations of return depend on the time period, type of fund and the choice of
benchmark. Carlsen essentially recalculated the Jensen and Shape results using annual data for
common stock funds over the 1948-67 periods. The results contradicted both Sharpe and Jensen
measures.
Fama (1972) developed a methodology for evaluating investment performance of managed
portfolios and suggested that the overall performance could be broken down into several
components.
John McDonald (1974) examined the relationship between the stated fund objectives and their
risks and return attributes. The study concludes that, on an average the fund managers appeared
to keep their portfolios within the stated risk. Some funds in the lower risk group possessed
higher risk than funds in the most risky group.
James R.F. Guy (1978) evaluated the risk-adjusted performance of

UK investment trusts through the application of Sharpe and Jensen measures. The study
concludes that no trust had exhibited superior performance compared to the London Stock
Exchange Index.

Henriksson (1984) reported that mutual fund managers were not able to follow an investment
strategy that successfully times the return on the market portfolio. Again Henriksson (1984)
conclude there is strong evidence that the funds market risk exposures change in response to the
market indicated. But the fund managers were not successful in timing the market.
Grinblatt and Titman (1989) concludes that some mutual funds consistently realize abnormal
returns by systematically picking stocks that realize positive excess returns.
Richard A. Ippolito (1989) concluded that mutual funds on an aggregate offer superior returns.
But expenses and load charges offset them.
This characterizes the efficient market hypothesis.

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Ariff and Johnson (1990) made an important study in Singapore and found that the performance
of Singapore unit trusts spread around the market performance with approximately half of the
funds performing below the market and another half performing above the market on a risk-
adjusted basis.
Cole and IP (1993) investigated the performance of Australian equity trusts. The study found
evidence that portfolio managers were unable to earn overall positive excess risk-adjusted
returns.

Vincent A. Warther(1995) in the article entitled “aggregate mutual fund flows and security
returns” concluded that aggregate security returns are highly correlated with concurrent
unexpected cash flows into MFs but unrelated to concurrent expected flows. The study resulted
in an unexpected flow equal to 1 percent of total stock fund assets corresponds to a 5.7 percent
increase in stock price index. Fund flows are correlated with the returns of the securities held by
the funds, but not the returns of other types of securities. The study found an evidence of positive
relation between flows and subsequent returns and evidence of a negative relation between
returns & subsequent flows.
Bansal’s book (1996) “mutual fund management & working” included a descriptive study of
concept of mutual funds, Management of mutual funds, accounting & disclosure standards,
Mutual fund schemes etc.

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 4.1 MUTUAL FUND IN INDIA
Concept of mutual fund entered Indian financial scene way back in 1964 that was famous unit
64 later earned famed under name of US 64 had a near monopoly status for more that 2 decades.
This fund was a public sector closed ended fund that list of fund holdings are allocation of total
assets amongst various assets statements was never known to the investing public. It was only at
economic liberalization process that began after 1991 that Indian financial sector began opening up.
This it was in year 1993 the first privet sector open-ended mutual fund was launched by the Kothari
pioneer asset management company. This blue-chip fund and prima fund (both equity funds)
provided first hand of competition to Unit Trust of India. Suddenly, Indian investor had wide range
of invest opportunity, were not available in pre-reforms era between 1997 to 2001 tremendous
growth of Indian Mutual Fund Industry with number of players increasing and balanced funds.
Between years 1998-2001 boom in Indian stock market was led by InfoTech companies. Huge
project margins saw an unprecedented rise share prices. This was time when some AMC launched
IT sector mutual fund.

SEBI Regulations On Mutual Funds

The Government brought Mutual Funds in the Securities market under the regulatory
framework of the Securities and Exchange board of India (SEBI) in the year 1993. SEBI issued
guidelines in the year 1991 and comprehensive set of regulations relating to the organization and
management of Mutual Funds in 1993.

4.2 ADVANTAGES AND DISADVENTAGE OF MUTUAL FUND ADVANTAGES

OF MUTUAL FUND:

4.2.1 Portfolio Diversification: Mutual Funds invest in a well-diversified portfolio of

securities which enables investor to hold a diversified investment portfolio (whether the
amount of investment is big or small).
what he can manage on his own.

4.2.2 Professional Management: Fund manager undergoes through various research works and has
better investment management skills, which ensure higher returns to the investor than what he can
manage on his own.
 4.2.3 Less Risk: Investors acquire a diversified portfolio of securities even with a small
investment in a Mutual Fund. The risk in a diversified portfolio is lesser than investing in merely
2or 3 securities.
4.2.4 Low Transaction Costs: Due to the economies of scale (benefits of larger volumes),
mutual funds pay lesser transaction costs. These benefits are passed on to the investors.
4.2.5 Flexibility: Investors also benefit from the convenience and flexibility offered by Mutual
Funds. Investors can switch their holdings from a debt scheme to an equity scheme and vice-versa.
Option of systematic (at regular intervals) investment and withdrawal is also offered to the investors
in most open-end schemes.
4.2.6 Safety: Mutual Fund industry is part of a well-regulated investment environment where the
interests of the investors are protected by the regulator. All funds are registered with SEBI and
complete transparency is force

DISADVANTAGES OF MUTUAL FUND

1. Cost control not in the Hands of an Investor : Investor has to pay investment
management fees and fund distribution costs as a percentage of the value of his investments
(as long as he holds the units), irrespective of the performance of the fund.
2. No Customized Portfolios: The portfolio of securities in which a fund invests is a
decision taken by the fund manager. Investors have no right to interfere in the decision
making process of a fund manager, which some investors find as a constraint
3. Difficulty in Selecting a Suitable Fund Scheme : Many investors find it difficult to
select one option from the plethora of funds/schemes/plans available

Types of Mutual Fund schemes-

A. Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.

Open-ended Fund/ Scheme

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 An open-ended fund or scheme is one that is available for subscription and repurchase on a
continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.
The key feature of open-end schemes is liquidity.

Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is
open for subscription only during a specified period at the time of launch of the scheme. Investors
can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the mutual
funds NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is
provided to the investor i.e. either repurchase facility or through listing on stock exchanges.
These mutual funds schemes disclose NAV generally on weekly basis.

B. Schemes according to Investment Objective:

A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended schemes as
described earlier. Such schemes may be classified mainly as follows.
1 Equity Funds-
Equity funds are considered to be the riskier funds as compared to other fund types, but
they also provide higher returns than other funds. It is advisable that an investor looking to invest in
an equity fund should invest for long term i.e., for 3 years or more. There are different types of
equity funds each falling into different risk bracket. In the order of decreasing risk level, there are
following types of equity funds:

➢ Growth Funds - Growth Funds also invest for capital appreciation (with time horizon of 3 to 5

years) but they are different from Aggressive Growth Funds in the sense that they invest in
companies that are expected to outperform the market in the future. Without entirely adopting
speculative strategies, Growth Funds invest in those companies that are expected to post above
average earnings in the future.

➢ Sector Funds: Equity funds that invest in a particular sector/industry of the market are known

as Sector Funds. The exposure of these funds is limited to a particular sector (say Information

28
 Technology, Auto, Banking, Pharmaceuticals or Fast-Moving Consumer Goods) which is why
they are riskier than equity funds that invest in multiple sectors.

➢ Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower market

capitalization than large capitalization companies are called Mid-Cap or Small-Cap Funds.
Market capitalization of Mid-Cap companies is less than that of big, blue chip companies (less
than Rs. 2500 crores but more than Rs. 500 crores) and Small-Cap companies have market
capitalization of less than Rs. 500 crores. Market Capitalization of a company can be calculated
by multiplying the market Price of the company's share by the total number of its outstanding
shares in the market. The shares of Mid-Cap or Small-Cap Companies are not as liquid as of
Large-Cap Companies which gives rise to volatility in share prices of these companies and
consequently, investment gets risky.

➢ Equity Linked Saving Scheme- These funds are well diversified and reduce sector-specific or

company-specific risk. However, like all other funds diversified equity funds too are exposed to
equity market risk. One prominent type of diversified equity fund in India is Equity Linked
Savings Schemes (ELSS). As per the mandate, a minimum of 90% of investments by ELSS
should be in equities at all times. ELSS investors are eligible to claim deduction from taxable
income (up to Rs 1 lakh) in the past.

➢ Dividend Yield Funds -The objective of Equity Income or Dividend Yield Equity Funds is to

generate high recurring income and steady capital appreciation for investors by investing in
those companies, which issue high dividends. Equity Income or Dividend Yield Equity Funds
are generally exposed to the lowest risk level as compared to other equity funds.

➢ Gold Fund- The objective of this fund is accumulating the money at the gold rate according to

the units held by the investors. This is one of the new funds introduced. Here all the investors
will invest for the pool account of mutual fund and that amount is invested in the gold. And
according to the fluctuation of the rates of gold in the market, fund manager invest when rates
are in good rates like this profit earned from this gold fund is distributed according to the units
held by the investors

2. Debt funds-
Funds that invest in medium to long-term debt instruments issued by private companies,
banks, financial institutions, governments and other entities belonging to various sectors (like
infrastructure companies etc.) are known as Debt / Income Funds. Debt funds are low risk profile

29
funds that seek to generate fixed current income (and not capital appreciation) to investors. In order
to ensure regular income to investors, debt (or income) funds distribute large fraction of their
surplus to investors. Although debt securities are generally less risky than equities, they are subject
to credit risk (risk of default) by the issuer at the time of interest or principal payment. To minimize
the risk of

Default, debt funds usually invest in securities from issuers who are rated by credit rating
agencies and are considered to be of "Investment Grade". Debt funds that target high returns are
morerisky. Based on different investment objectives, there can be following types of debt funds:

➢ Diversified Debt Funds - Debt funds that invest in all securities issued by entities belonging to

all sectors of the market are known as diversified debt funds. The best feature of diversified debt
funds is that investments are properly diversified into all sectors which results in risk reduction.
Any loss incurred, on account of default by a debt issuer, is shared by all investors which further
reduces risk for an individual investor.

➢ High Yield Debt funds - Understand the risk of default is present in all debt funds, and

therefore, debt funds generally try to minimize the risk of default by investing in securities
issued by only those borrowers who are considered to be of "investment grade". But, High Yield
Debt Funds adopt a different strategy and prefer securities issued by those issuers who are
considered to be of "below investment grade". The motive behind adopting this sort of risky
strategy is to earn higher interest returns from these issuers. These funds are more volatile and
bear higher default risk, although they may earn at times higher returns for investors.

➢ Assured Return Funds - Although it is not necessary that a fund will meet its objectives or

provide assured returns to investors, but there can be funds that come with a lock-in period and
offer assurance of annual returns to investors during the lock-in period. Any shortfall in returns
is suffered by the sponsors or the Asset Management Companies (AMCs). These funds are
generally debt funds and provide investors with a low-risk investment opportunity.

➢ Fixed Term Plan Series - Fixed Term Plan Series usually are closed-end schemes having short-

term maturity period (of less than one year) that offer a series of plans and issue units to
investors at regular intervals. Unlike closed-end funds, fixed term plans are not listed on the
exchanges. Fixed term plan series usually invest in debt / income schemes and target shortterm

30
 investors. The objective of fixed term plan schemes is to gratify investors by generating some
expected returns in a short period.

3. Balanced Fund-
A balanced fund is one that has a portfolio comprising debt instruments, convertible
securities, and Preference equity shares. Their assets are generally held in more or less equal
proportions between debt/money market securities and equities. By investing in a mix of this
nature, balanced funds seek to attain the objectives of income, moderate capital appreciation and
preservation of capital, and are ideal for investors with a conservative and long-term orientation.

4.4 Showing on Mutual Fund Structure in India

• Sponsor: Sponsor is basically a promoter of the fund. For example Bank of Baroda, Punjab
National Bank, State Bank of India and Life Insurance Corporation of India (LIC) are the
31
 sponsors of UTI Mutual Funds. Housing Development Finance Corporation Limited
(HDFC) and Standard Life Investments Limited are the sponsors of HDFC mutual funds.
The fund sponsor raises money from public, who become fund shareholders. The pooled
money is invested in the securities. Sponsor appoints trustees.

• Trustees: Two third of the trustees are independent professionals who own the fund and
supervises the activities of the AMC. It has the authority to sack AMC employees for
nonadherence to the rules of the regulator. It safeguards the interests of the investors. They
are legally appointed i.e. approved by SEBI.
• AMC: Asset Management Company (AMC) is a set of financial professionals who manage
the fund. It takes decisions on when and where to invest the money. It doesn‟t own the
money. AMC is only a fee-for-service provider.

The above 3 tier structure of Indian mutual funds is very strong and virtually no chance
for fraud.

• Custodian: A Custodian keeps safe custody of the investments (related documents of

securities invested). A custodian should be a registered entity with SEBI. If the promoter
holds 50% voting rights in the custodian company it can‟t be appointed as custodian for the
fund. This is to avoid influence of the promoter on the custodian. It may also provide fund
accounting services and transfer agent services. JP Morgan Chase is one of the leading
custodians.

• Transfer Agents: Transfer Agent Company interfaces with the customers, issue a fund‟s
units, help investors while redeeming units. Provides balance statements and fund
performance fact sheets to the investors.

Flow of operation:
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 realised are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. The flow chart below describes broadly the working of a mutual fund

32
4.5 Showing on Mutual Fund operation flow chart

Mutual fund schemes may be classified on the basis of:

33
 ➢ By its maturity and

➢ By its investment objective

By Maturity:
• Open-ended Funds:
An open-end fund is one that is available for subscription all through the year. These do not have a fixed
maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The
key feature of open-end schemes is liquidity falls. These are ideal for investors looking for a
combination of income and moderate growth.
• Money Market Funds:
The aim of money market funds is to provide easy liquidity, preservation of capital
and moderate income. These schemes generally invest in safer short-term instruments
such as treasury bills, certificates of deposit, commercial paper and inter-bank call
money. Returns on these schemes may fluctuate depending upon the interest rates
prevailing in the market. These are ideal for corporate and individual investors as a
means to park their surplus funds for short periods.
• Tax Saving Schemes:
These schemes offer tax rebates to the investors under specific provisions of the
Indian Income Tax laws as the Government offers tax incentives for investment in
specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and
Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act
also provides opportunities to investors to save capital gains u/s 54EA and 54EB by
investing in Mutual Funds.
• Index funds: :
Index Funds invest their corpus on the specified index such as BSE Sensex, NSE
index, etc. as mentioned in the offer document. They try to mimic the composition of the
index in their portfolio. Not only are the shares, even their weight age replicated. Index
funds are a passive investment strategy and the fund manager has a limited role to play
here. The NAVs of these funds move along with the index they are trying to mimic save
for a few points here and there. This difference is called tracking error.
• Special schemes:

34
 These schemes invest only in the industries specified in the offer document. Examples
are InfoTech funds, FMCG funds, pharmacy funds, etc These scheme are mean for
aggressive and well-informed investors.

RISK V/S REWARD

Volatility in the market activity can be referred to as the risk in the mutual fund
investment. The sudden upward and downward sentiments of the markets and individual
issues can be attributed to several key factors. These factors comprise: Inflation
• Interest rate changes
• General economic scenario
The aforementioned factors are the main cause of worry amongst the investors. Most of the
investors fear that the value of the stock they have invested will fall considerably. However, it is
here one can notice its reward angle. It is this element of volatility that can also bring them
substantial long-term return in comparison to a savings account.

4.6 BEST MUTUAL FUNDS IN INDIA

Before knowing about the best mutual fund in India. It is important to know the
factors that actually decide their fate in the market. In order to get an actual ideal of the best
performing mutual funds in the market, one need to track its current Net Asset Value or NAV.
NAV stands for the latest market value of the holdings of a fund that brings down the fund's
liabilities, which are generally indicated in terms of per share amount. On a daily basis, most of
the funds' NAV is decided. This is determined after the trade closes on certain financial
exchanges. The net asset value of the mutual funds is ascertained at the end of the trading day.
An increase in NAV signifies rise in the holdings of the shareholder. The Fund Firm will then do
the transaction on the shares along with the sales fees. While open-ended net asset value of the
mutual funds is issued daily, the close-ended NAV of the mutual fund is released on a weekly
basis. You can calculate net asset value of the mutual fund easily. Track the latest market value
of the net assets of the fund and then subtract that by the number of outstanding shares.

Top mutual funds in India

Here are some of the top mutual funds in India that are listed below:

• Tata Tax Saving Mutual Fund

• The DSP ML Tiger Fund.

35
 • SBI Magnum Contra Fund.
• HDFC Equity Fund.
• Prudential ICICI mutual Fund.
• SBI Mutual Fund.

Some facts for the growth of mutual fund industry in India:

a) 100% growth in the last 6 years.

b) Numbers of foreign AMC‟s are in the queue to enter the Indian markets like Fidelity
Investments, US based, with over US$1trillion assets under management worldwide.

c) Our saving rate is over 23%, highest in the world. Only channelizing these savings in mutual
funds sector is required.

d) We have approximately 37 mutual funds which are much less than US having more than
800. There is a big scope for expansion.

e) 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are concentrating
on the 'A' class cities. Soon they will find scope in the growing cities.

f) Mutual fund can penetrate rural like the Indian insurance industry with simple and limited
products

g) SEBI allowing the MF's to launch commodity mutual funds.

h) Emphasis on better corporate governance.

i) Trying to curb the late trading practices.

j) Introduction of Financial Planners who can provide need based advice.

The Indian mutual funds business is expected to grow significantly in the coming years
due to a high degree of transparency and disclosure standards comparable to anywhere in the
world, though there are many challenges that need to be addressed to increase net mobilization of
funds in this sector, as said by Mr. A.P. Kurian, Chairman of the Association of Mutual Funds of
India.

36
 Indian Mutual fund industry exhibited 200% growth in the last 10 yrs from Rs.470 billion to
Rs1400 billion in terms of assets under management. The Mutual Funds industry is expected to
jump sharply from its present share of 6% of GDP to 40% in the next 10yrs provided the
country’s growth rate is consistently above 6%. The growing investor preference for mutual
funds has resulted in the assets under management of mutual funds growing 8-folds in last 5 yrs.
Number of foreign AMC's are in the queue to enter the Indian markets like US based Fidelity
Investments, with over US$1trillion assets under management worldwide. Our saving rate is over
23%, highest in the world. Only channelling these savings in mutual funds sector is required.
There is a big scope for expansion as we have 37 mutual funds which is much less than US
having more than 800.

4.8 Role of mutual fund in stock exchange:

 Mutual funds are an ideal vehicle for investment by retail investors in the
stock market for several reasons.

37
 It pools investments of small investors together increasingly thereby the
participation in the stock market.

 Mutual funds being institutional investors, can invest in market analysis

generally not available or accessible to individual investors, providing
therefore informed decisions to small investors.

 Mutual fund can diversify the portfolio in better way as compared with
individual investors due to the expertise and availability of funds.

38
Chapter 5: Data Presentation, Analysis
And Interpretation

39
 The analysis and interpretation of data covers an overview of the Mutual fund segment,
other related data with percentage and narrative data, supported by charts and tables form the
information collected during the project study.

5.1 Table showing on what kind of investment options respondents prefer

INVESTMENT AVENUES NUMBER OF PERCENTAGES %

RESPONDENT
Fixed Deposits 16 16%
Mutual Fund 55 55%
Insurance 20 20%
Others 09 09%
TOTAL 100 100

5.1 Graph showing on what kind of investment option respondents prefer

40
 6
0
55
5
0

4
0

3
0

2
2 0
0 1
6
1
0

Fixed Deposit Others

Interpretation:

The above graph shows that higher percentage of respondents are interested in investing
mutual fund schemes because, which give less return hence few respondents concentrate on
deposits and insurance. And more respondents are concentrating on Mutual fund, very few
respondents willing to invest in other schemes due to high level of risk hence it shows a significant
growth in the Mutual fund. The above table shows that out of 100 respondents 16% of respondents
are interest to invest in Deposits, 55% of the respondents are interest in Mutual Funds, only 20% of
the respondents are interest in Insurance and 09% of peoples are interest in other schemes

5.2Table showing on why respondents prefer the investment avenue

NUMBER of PERCENTAGES %
Reason for the RESPONDENT
investment Avenue
Less risk 45 45%
Good returns 35 35%
Liquidity 05 41 05%
Assured returns 15 15%
5.2 Graph showing on why respondents prefer the above investment avenue

NUMBER OF
RESPONDENT

Interpretation:

From the above chart in be interpreted that higher percentage of respondents are interested
in investing less risky mutual fund schemes because of less risk, and minor percentage of the
respondents are interested in investing liquidity mutual fund schemes for the sake of safety. The

42
above table shows that out of 100 respondents 45% of respondents are investing because of less
risk, 35% of the respondents are investing for the sake of good returns , only 05 % of the
respondents are investing because of liquidity and 15% of peoples are investing due to assured
returns in There particular avenues.

5.3Table showing current investment portfolio:

Current portfolio NUMBER of PERCENTAGE‟S %

RESPONDENTS
Govt. securities and Bonds 30 30%
Mutual funds & fixed deposits 52 52%
Equity 13 13%
Other options 05 05%

5.3 Graph showing on current investment portfolio:

43
 Interpretation:
From the above chart shows that higher percentage of respondents are interested in
investing in less risky mutual fund schemes because of mutual fund fixed deposits, and minor
percentage of the respondents are interested in investing other options mutual fund schemes for
the sake of safety . The above table shows that 52% of mutual fund & fixed deposits respondents
received good return in equity and 30% of govt securities and bonds respondents are not received
good return in equity 13%. So the opinion of the customers relating to the company is good. The
company as to give more importance to satisfaction of the customers.

5.4Table showing on the awareness of mutual funds.

AWARENES OF MUTUAL NUMBER OF PERCENTAGES %

44
 FUND RESPONDENT
Yes 85 85%
No 15 15%
100 100
Total

5.4Graph showing on the awareness of mutual funds.

8
5

1 Ye
5 s
No

Ye
s No

Interpretation
From the above chart showing Mutual Fund awareness of the respondents while conducting
survey was choose most of the post graduate and graduate since all those people having good
knowledge of mutual fund. Hence chart shows majority of the respondents are having aware of
mutual fund and remaining respondents are not aware of mutual funds. From the above table
showing mutual fund awareness of the respondents out of 100%
5.5 Table showing on investor ready to proportion of amount invest in mutual
fund.
Portfolio of cash Number of Respondent PERCENTAGE‟S %
5000- 10000 70 70%
10001-15000 23 23%
15001-20000 5 5%
20000-21000 2 2%
TOTAL 100 100

45
5.5 Graph showing on Investor ready to proportion of amount invests in Mutual
fund.

8
0
7
0
7
6
0

5 20001-
4 Above
0 15001-
20000
3 10001-
0 2 15000
2 3
5000-
0 10000
1
0

5000- 10001- 15001- 20001-

10000 15000 20000 Above

Interpretation:
From the above chart showing a graph shows maximum that is 70 respondents
are interested to invest the amount ranging from 5000-10000, And some others are
interested ranging from 10001-15000, and very few i.e. 5 the respondents are interest to invest
ranging from 15001-20000, and finally 2 the respondents are interest to invest above 20001/-.
The above table shows that out of 100 respondents 70% of the respondents are interested to
invest amount ranging from 5000-10000 of their income. 23% of respondent interested to invest
amount ranging from 10001-15000, 5% of the respondents are interested to invest ranging from
1500120000, and finally only 2% of the respondents are interest to invest above 20001/-.

5.6 Table showing respondent’s interest to the area investor in mutual fund.

INVESTMENT NUMBER OF RESPONDENT PERCENTAGES %

Yes 68 68%
No 32 32%
Total 100 100

46
5.6 Graph showing respondent’s interest to the area investor in mutual fund.

Interpretation:
From the above graph shows maximum that is majority of respondents are interested to invest
the amount interest to the area investor in mutual fund And some others are interested in mutual
fund, and very higher of the respondents are interest to invest. Very few of the respondents are
interest to invest in mutual fund. The above table shows that out of 100 respondents 68% of the
respondents are invested in various mutual fund schemes, only 32% of the respondents have not
made their investment in mutual funds.

5.7 Table Showing on Investors opinion of open ended and close end scheme.

SCHEME NUMBER of PERCENTAGES %

RESPONDENT
Open ended 48 48%
Close ended 4 4%
Both 48 48%
TOTAL 100 100

47
5.7 Graph showing on Investor’s opinion of open ended and close ended
scheme.
6
0

5 4 4
0 8 8

4
0

Both
3
0 Close

2 Open
0 ended

1
0

Open Close Bot

ended ended h

Interpretation:
From the above graph shows maximum that is majority of respondents are interested to
Investor’s opinion of open ended and close ended scheme and some others are interested in
mutual fund, very higher of the respondents are interest to invest. But very few people are
concentrating on only close-ended scheme. It shows open-ended scheme of investment is
liquidity and it helps to the investor to invest easily. The above table shows that out of 100
respondents 48% of the respondents prefer open- ended type of Mutual Fund scheme, 4% of the
respondents are prefer close-ended Mutual Fund scheme and 48% of respondents are prefer both
open-ended and close-ended scheme.

48
 5.8 Table showing on schemes preferred by the investors:
SCHEME NUMBER OF PERCENTAGES%
RESPONDENT
Equity 36 36%
Debt 24 24%
Balanced 40 40%
TOTAL 100 100

5.8 Graph showing this graph showing on schemes preferred by the investors:

4
3 0
6

2
4
Series
1
Series

Series
2
Series1
1 2 3 4 5 6

Interpretation:

49
 From the above chart showing It is clear from the out of 100 respondents 36 the respondents
prefer Equity type of scheme; 24 the respondents are preferring Debt scheme and 40 of
respondents are prefer Balanced scheme.

5.9 Table showing on while buying a mutual fund.

SCHEME NUMBER OF PERCENTAGES %
RESPONDENT
YES 90 90%
NO 10 10%
TOTAL 100 100

5.9 Graph showing on while buying a Mutual Fund.

Interpretation:
From the above chart showing high 90 by respondents prefer brand name by denoted buying
decision mutual fund and equity share prefer more and more brand it is level 10 of the
respondent’s mutual funds I have to discuss about mutual currier growth. Brand which is
acquired good brand investor.

5.10 Table showing on Number of investor contact while investing.

PARTICULAR NUMBER OF PERCENTAGES %

RESPONDENT

50
Personal Banker 18 18%
Online Trader 33 33%
Stock Broker 22 22%
Deals directly 27 27%
TOTAL 100 100

5.10 Graph showing on Number of investor contact while investing.

3
5 33
3
0 27

2 22
5 1
8

SB DD PB

Interpretation:
From the above showing investors response for dealings with Mutual Funds chart
showing 33 the respondents are deals through stock brokers, 27 of respondents are deals
through personal banker, 22 of the investors are deals directly and 18 people choose online
trading. It shows most of the respondents are choose stock brokers because more secure and
stock broker are keep providing the information about present market conditions it helps to
investors. From the above table showing investors response for while deals with Mutual Fund
out of 100 people 18% of the respondent are deals through personal banker, 33% of the
respondents are deals through online trading, 22% are deals through stock brokers and 27%
people are deals directly.

5.11 Table showing on Number of investor deals with different

scheme.
SCHEMES NUMBER OF PERCENTAGES %
RESPONDENT

51
SBI 36 36%

HDFC 11 11%

Tata Tax Saving 33 33%

Others 20 20%

52
 5.11Graph showing on Number of investor deals with different scheme

40

35

30

25

Other
2 s
0 3
6 TataTax
1 3
5 3 HDF
C
1
0 2 SB
0 I
1
1

SB
I HDF
C TataTax Other
s

Interpretation:
From the above chart clearly showing most of the investors are preferred to invested in SBI
Mutual Fund i.e. 36, And 33 of the investor are prefer to invest in TataTaxSaving Mutual
Fund. 20 of the respondents prefer other Mutual Fund. And finally 11 of the respondents are
concentrate on HDFC Mutual Funds when we analyze these data it shows more number of
investor are prefer to invest SBI and TataTaxSaving because it shows Brand Name as well as
good returns and liquidity. From the above table showing the different scheme of Mutual Fund
out 100 respondents 36% of the investor choose SBI Mutual Fund, and 33% are choose tata

tax saving mutual funds, 20% of the respondents are choose Others MF, and 11% of the
investors are choose HDFC.

53
 5.12 Table showing on Trade option Preferred by investor

TRADE OPTION NUMBER OF PERCENTAGES %

RESPONDENT
Short term 16 16%
Medium term 38 38%
Long term 46 46%
TOTAL 100 100

5.12 Graph showing on Trade option Preferred by investor.

TRADE
OPTION
1
4 6
6

Short
term

term
3
8

Interpretation:
From the above chart shows that most of the respondents are long term investor i.e. 46, and
38 the respondents are medium term investors And only few i.e. 16 are short term investor.

54
 5.13 Table showing on Objective behind trading in Mutual Fund.
OBJECTIVE NUMBER OF PERCENTAGE %
RESPONDENT
For diversified the portfolio 28 28%
For Higher return 36 36%
Monthly Income 16 16%
Tax Benefit 20 20%
Total 100 100

5.13 Graph showing on Objective behind trading in Mutual Fund

4
0
3
3 6
5

3 2
0 8
2
5 Tax
2 benefit
2 0 Monthly
0 income
1 High return
1 6
5 Diversifide
1
0

D H MI T
P R B
55
 Interpretation:
Form the above chart showing why investor is choosing mutual fund as a good option of
investment. It is clearly showing more number of investor is interested to invest in Mutual Fund
because of high return i.e.36. and 28 of investor are prefer to invest in Mutual Fund for
diversified the portfolio of their income, 20 of the respondents prefer for tax benefit. And finally,
16 of the respondents are choosing Mutual fund because of monthly income.

5.14 Table showing on percentage of return expect in Mutual Fund.

INCOME EXPECT NUMBER OF RESPONDENT PERCENTAGES %
10% -15% 56 56%
16%-20% 21 21%
21%-25% 15 15%
26 & Above 8 8%
TOTAL 100 100

5.14 Graph showing on percentage of return expect in Mutual Fund.

56
 6
0 5
6
5
0

4
0

3
0 2
1
2 1
0 5

1
0

15-20 16-20 21-25 o

v

Interpretation:
From the above chart sowing large number of investors are expect 15-20 return, investor
expectation of return is always based on their risk factor those who willing to take risk they will
get more return. And 21 the respondents are expected average return i.e., 16-20, And 15 the
respondents are expecting 21-25 return, and finally only 8 of the investors are expect above 26
returns of their investment. The above table showing investor expectation or return of the mutual
fund. 56% of respondents are expect 10% - 15% return, , and 21% of the respondents are expect
16%-20% return, and 15% of the respondents are expect 21%-25% of return. And finally, only
8% of respondents are expect above 26% of return.

5.16 Table showing on Investor willing to take Risk.

INVESTOR NUMBER of PERCENTAGES %

57
 RESPONDENT
High 23 23%

Low 22 22%

Medium 55 55%

Total 100 100

5.16 Graph showing on Investor willing to take Risk.

RISK
FACTO

2
3

High
Ris
Low
5 Medium
5 Ris

2
2

Interpretation:
From the above chart showing large number of investors are take medium risk i.e. 55, And 23 of
investor are willingly ready to take risk these persons will get more return. And 22 of the
respondents are takes low risk

58
 5.17 Table showing on Opinion about Tata Tax Saving Mutual Fund.

OPINION NUMBER of PERCENTAGE %

RESPONDENT
Excellent 3 3%
Good 53 53%
Moderate 27 27%
Not aware 17 17%
TOTAL 100 100

5.17 Graph showing on Opinion about Tata Tax Saving Mutual Fund.

PERCENTAG
E%
0.8
NUMBER
0. OF
RESPONDE
0.
4 OPINIO
0. N
53
2 %
0 27
3 % 17
%

59
 Interpretation
From the above chart showing investor opinion with TataTaxSaving Mutual fund. While
investor investing with TataTaxSaving MF they rate the Securities. 3 respondents are rates excellent.
Most of the respondents are rates good, and 55 the respondents are rates fair, and 18 of the
respondents thought poor securities.

5.18 Table showing on Investment motive with TataTaxSaving Mutual fund.

INVESTMENT MOTIVE NUMBER of PERCENTAGES %
RESPONDENT
Excellent 3 3%
Good 55 55%
Fair 40 40%
Poor 2 2%
TOTAL 100 100

5.18 Graph showing on Investment motive with Tata Tax Saving mutual fund.

60
 6 5
0 5

5
0 4
0
4
0

3
0

2
0

1
0

Excelle Goo Fai Poor

nt d r

Interpretation:
From the above chart showing investor motive with Tata Tax Saving Mutual fund. While
investor investing with Tata Tax Saving MF, they rate the Securities. 3 respondents are rates
excellent. most of the respondents are rates good, and 40 the respondents are rates fair, and 2 the
respondents thought poor security From the above table showing investment motive with Tata
Tax Saving MF. 3% of the respondents are rates excellent securities, 55% of the respondents are
rates good, 40% of the respondent’s rates fair, and finally 2% of the respondents are rates poor.

61
CHAPTER 6 : Findings, Suggestions and
Conclusion.

62
 FINDINGS:
• 16% of respondents are interested to invest in fixed Deposits, 55% of the respondents are
interested in Mutual Funds, only 20% of the respondents are interested in Insurance and
09% of peoples are interested in other scheme.
• 45% of respondents are investing because of less risk, 35% of the respondents are investing
for the sake of good returns , only 05 % of the respondents are investing because of liquidity
and 15% of peoples are investing due to assured returns in There particular avenues.
• In that case higher percentage of respondents are interested in investing in less risky mutual
fund schemes because of mutual fund fixed deposits, and minor percentage of the
respondents are interested in investing other options mutual fund schemes for the sake of
safety
• most of the respondents know about the mutual Fund, 85% of the respondents are having
knowledge about mutual fund only few people are not aware of mutual Fund i.e. only 15%
• 70% respondents are interested to invest the amount ranging from 5000-10000, And some
others are interested ranging from 10001-15000, and 5 the respondents are interest to invest
ranging from 15001-20000, and finally 2 the respondents are interest to invest above
20001/-.
• 68% of the respondents have invested in various mutual fund schemes,
• 48% of the respondents prefer open- ended type of Mutual Fund scheme, 4% of the
respondents are prefer close-ended Mutual Fund scheme and 48% of respondents are prefer
both open-ended and close-ended scheme.
• 36% of the respondents prefer Equity type of scheme, 24% of the respondents are prefer
Debt scheme and 40% of respondents are prefer Balanced scheme.
• Investment 90% of the respondents prefers the brand name to invest, only 10% of the
respondents do not prefer brand name for making an investment.

• Out of 100 people surveyed 33% the respondents are deals through stock brokers, ,
27% of respondents are deals through personal banker, 22% of the investors are
deals directly and 18% people choose online trading.

• It is found that from the preference towards mutual funds is more towards ICICI and
SBI as many investors are selected for their investment ICICI and SBI scheme.

63
• 46% are long term investor and 38% the respondents are medium term investors and only
16% are short term investor.

• Out of 100 people surveyed 36% respondents are prefer to mutual fund for high
return, 28% of the respondents are prefer mutual fund for diversified the income, and
20% of the respondents are prefer for tax benefit and finally 16% of the respondents
are prefer for monthly Income.

• 56% of respondents are expect 10% - 15% return, , and 21% of the respondents are
expect 16%-20% return, and 15% of the respondents are expect 21%-25% of return.
And finally only 8% of respondents are expect above 26% of return.

• During conduct survey investor are choose Mutual Fund scheme is best avenue because
of less risk very less respondents are concentrate on debenture.

• Out of 100 people surveyed TataTaxSaving MUTUAL Fund. 3% of investor are

saying excellent, 53% of the respondents are says good, 27% of the
respondents are says moderate, And 17% of the respondents are not aware of
mutual fund

• 16% of the respondents are consider Brand Name, 30% of the respondents are consider
assured return, 39% of the investor are consider high return, 15% of the investor are loo

64
 SUGGESTIONS:

• As print media is very popular among the Govt, employees. So the bank should try to use
this media to create awareness of its existence and about the new product available in the
market.
• Free consultation counters should be provided in the bank. So as to attract more customers
and also to build good customer relations, this is key to success.
• Excellent advertisement can be entertained so that people will get interest in Mutual Fund. •
Good campaigns can be arranged so that people will know more about Mutual Fund and
will tend to invest in it.

Learning Outcome :
• I got to learn about mutual funds and how it works
• Got to know about the top mutual funds in India
• Also I got to learn why it is important to learn about mutual funds as it helps
individuals earn a profit on their income when they invest in the mutual funds
• A kind for saving a individual can buy mutual funds.
• Mutual funds also gives good profit in returns
• An individual can always invest in mutual funds as there is always a low risk in
that .
• Got to learn why its important to start investing in mutual funds early

6.5 Contribution to the Organization

• I talked to various client to make investment in Tata Tax Saving Mutual fund
• At start it was bit difficult to convince client but as I learned more about Tata
Tax saving mutual funds , bringing clients for that was easy
• I first approached to those client who are currently paying tax and to save their
tax
Tata Tax Saving Mutual fund was the best fund to invest as this fund comes
under 80C deductions
• I was able to successfully complete my work which was given by an
organization
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 CONCLUSION:

The study on analysis of mutual fund performance in India”. From the study it can be concluded that
most of the investors are aware of the TataTaxSaving mutual fund.
It can be concluded that the mutual fund is still in infant stage. The growth is still vast. Since Indian
investors are very sensitive towards investing in high-risk funds. Investment in mutual funds is still
not reached into the hands of all investors. Most of the investors are not having a clear picture of the
mutual fund’s benefits. But this trend is slowing down in a gradual process.
More and more investors are showing much interest towards the mutual funds the coming year are
going to be ruled by the mutual funds.

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 BIBLIOGRAPHY

Books Referred:

1 S.Anand and Dr. V. Murugaiah, Mutual Funds In India, JIMS 8M, September 2004
2 Cooper and Schindler, Business Research Methods, eighth edition
3 Frank K. Reilly and Keith C. Brown, Investment Analysis and Portfolio Management

Websites:
https://www.ascent-online.com
www.amfiindia.com
www.mutualfundsindia.com
www.mutualfundanalysis.com
www.investsmartindia.com
www.personalfn.com
www.finance.yahoo.com

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 ANNEXURE

QUESTIONNAIRE

Dear Sir/Madam,
I am Prasad Joshi a student of “JSPM’S JAYWANT INSTITUTE OF MANAGEMENT
STUDIES” - MBA Program, final year MBA (Finance) doing a project in KSN CREDENCE
COMMODITIES TRADING PVT LTD (STOCKART)

The topic of my project is “A Study on performance of TATA MUTUAL FUND with

reference to KSN CREDENCE COMMODITIES TRADING PVT LTD ,I need some
important information from you for the completion of my project.

Would you please spare sometime to answer my queries? I assure you that your answers will
be kept confidential and will be used for the academic purpose only.

1. Name of the responding ……………………………………………………………….

2. and phone no………………………………………………………………

……………………………………………………………………………………….

3. Age group.
21-30( ), 31-45( ), 45-60( ),

4. What kind of investment options you prefer?

A) Fixed Deposit ()
B) Mutual Fund ()
C) Insurance ( )
D) Other ()

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5 . Why you will prefer the available Option ?
A) Less Risk ()
B) Good Returns ( )
C) Liquidity ( )
D) Assured Returns ()

6 You current investment portfolio includes majority of Govt.

A) Securities and Bonds ()
B) Mutual funds & fixed deposits ( )
C) Equity shares ( )
D) Others ( )

7 What percentage of your income do you

invest A) 5000-10000 ( )
B) 10001-15000% ( )

C) 15001-20000 ( )

D) 20001 & above ( )

8 Are you an investor in mutual fund?

A) Yes ()
B) No ()

9 If answer is No, why you are not investing in mutual fund ?

A) Awareness ( )
B) Risky ( )
C) Returns not assured ( )

10 If answer is yes, why do you prefer mutual fund?

A) Less risky ( )
B) Professional mgt. ( )
C) Fast appreciation ()

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70
10. What kind of mutual Fund you will prefer?
A) Closed-ended ( )
B) Open ()
C) Both ()

11 What type of scheme do you prefer?

A) Equity ( )
B) Debt ()
C) Balance ()

12 Whom do you contact when you plan for such an investment?

A) Personal Banker ( ),
B) Online Trading ( ),
C) Stock Broker ( ),
D) Deals directly ( ),

13 Trade option Preferred by investor

A) Long term ( )
B) Short term ( )
C) Medium term ()

15, Have you heard of Reliance mutual fund and its scheme?

A) Yes () B) No ()

16. If you an investor of MF, which company you prefer?

A) UTI ( )
B) Reliance ( )
C) HDFC ( )
D) Others ( )

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17. What is your basic motive/objective behind trading in Mutual Fund?
A) For diversified the portfolio ( )
B) For Higher return ( )
C) Monthly income ( )
D) Tax benefit ()

72