Summer Internship Project

“Mutual Fund: Literacy level and process of deciding basket”

By:Vivek Ledwani
 Overview of Mutual Fund Industry:

• Mutual fund industry's SIP collections fell by 4% to INR 96,000 crore in FY

2020-2021.
• The average assets under management (AAUM) of the Indian Mutual Fund
Industry for February 2022 stood at INR 38,56,140 crore.
• Their is rising digital penetration of mutual funds, The total number of accounts
(or folios, as per mutual fund parlance) as of February 28, 2022, was 12.61 crore
(126.1 million units).
• According to distributors, the number of SIPs increased by 41% in the last year,
going from 3.47 crore running accounts to 4.91 crore accounts, as many new
investors entered the market.
 Company Overview
Bajaj Capital Limited is India's premier "Investment Services" Company, with over 58 years of experience
in helping people protect and grow their wealth. Offerings of the company are as follows:

Mutual Funds Insurance Bonds Fixed Deposits Home Loan

 Objectives

To survey people to know To design the process of

literacy level of people about mutual fund basket for Bajaj
mutual funds. Capital customers.
 Methodology
For meeting the objectives of the report, the study is based on both quantitative and qualitative methods. The
data used for the report is both primary and secondary to meet the aim of this report. Considering the present
findings, this report is based on descriptive business reach where, information has been collected through
different sources to make a constructive output. For the preparation of this report, I have used a structured
questionnaire to collect and analyze the data(Google Form as the tool). I have reached around 145 people out
of which 125 has responded to the survey. The survey made was closed ended. In this report, primary data is
used on large scale and secondary data is used on the small scale. The sources from which I have used
secondary data are:
• Official Website
• Sample Reports
• Articles
Analysis and Interpretation
 Findings through Survey

• For most of the people still Fixed deposits are the safest choice of investments.
• Nearly 75% of the respondents are aware about mutual funds thus the people between the age group of 18-
25 and 25-45 are either self-employed or salaried therefore they are exposed to investment options and on
average they spend 1000-3000 on monthly basis on mutual funds.
• Only 40% of respondents have invested in mutual funds as factors that prevent to invest are- lack of
knowlede and difficult in choosing schemes.
• Majority of people want to invest in mutual funds on an average period of 1-3 years or above 3yrs. as they
are seeking for good returns in future.
Steps in Deciding Mutual Fund Basket

• Investment Objective
2. Age

3. Time Horizon 4. Risk Tolerance

5. Performance against 6. Performance agianst
benchmark category

7. Consistency of 8. Fund manager

performance experience

9. Expense ratio
 Conclusion
Mutual fund is still a under rated source of investment as in India only 31% people
invest in mutual funds. Mutual funds have the ability to provide return nearly 18%
which is nearly triple of bank deposits. Risk appetite of people in India is low such that
they still want to invest in traditional options- Real estate, gold, etc. People of the age
groups 18-25 and 25-45 are more active in mutual fund investment so we can conclude
that other age group people are not aware about it or either they are aware then to they
don’t invest due lack of knowledge and lack of good advice. Thus, financial advisors
must seek to the investor goals precisely then only must suggest a good mutual fund
scheme.
Recommendations
Onboarding process is lengthy as it requires more
documentation as compare to any other portal it must be
made easier.

Bajaj Capital mutual fund Portal does not work several

times its glitches many times therefore must be resolved.

People are less aware about company that what is does

and provide therefore more advertising must be done.

I found delayed communication gap between superiors

and interns it must be resolved.
Learnings at Bajaj Capital

Brief on Insurace Brief on Mutual Funds Sales Of SIP's

Training workshops by Training workshops by mutual Onboarding of clients on bajaj

insurance companies fund companies capital platform
 References
• https://www.bajajcapital.com/
• https://economictimes.indiatimes.com/
• https://www.etmoney.com/
• https://www.moneycontrol.com/
• https://www.indiainfoline.com/
• https://www.ibef.org/
• https://www.moneycontrol.com/mutualfundindia/
• https://www.mutualfundindia.com/
• https://www.policybazaar.com/
• https://www.bankbazaar.com/