PROJECT REPORT On EVALUATING DIFFERENT MUTUAL FUND SCHEMES FOR LOW INCOME GROUP

FOR THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINSTRATION FROM GGS IP UNIVERSITY DELHI

BATCH: 2012-14 SUBMITTED BY: Name of the student SUBMITTED TO: Name of the faculty supervisor

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY, GREATER NOIDA (UP) 201306

TO WHOMSOEVER IT MAY CONCERN

1

Regards Rahul Tyagi Deputy Manager LEAP Program

Supervisor Certificate

This is to certify that Soney a student of Master of Business Administration, Batch MBA09, Army Institute Management & Technology, Greater Noida, has successfully completed his project under my supervision.

During this period, he worked on the project titled EVALUATING DIFFERENT MUTUAL FUND SCHEMES FOR LOW INCOME GROUP in partial fulfillment for the award of the degree of Master of Business Administration of GGSIP University, Delhi.

To the best of my knowledge the project work done by the candidate has not been submitted to any university for award of any degree. His performance and conduct has been good.

(Signature)

Dr. Shruti Gupta Name of the faculty supervisor AIMT-Gr. Noida

Date:

Certificate of Originality

I, Mr./ Ms Soney, Roll No.______________ of MBA 09 batch of Army Institute of Management & Technology has undergone a Summer Internship in Reliance Securities Ltd. (organization) for a duration of 45days weeks on a project title EVALUATING DIFFERENT MUTUAL FUND SCHEMES FOR LOW INCOME GROUP, hereby declare that this project is my original piece of work.

Signature of the student: Student Name: Soney Date: 24 july 2013

ACKNOWLEDGEMENT I am thankful to many individuals who have contributed to the accomplishment of this dissertation. This report is the result of continuous effort made and extended by many people. This report would not have been successful without the kind support from many people. I would first like to thank Army institute of Management & Technology for designing a platform where we can gain both theoretical as well as practical knowledge. I would like to express my deep gratitude to Reliance Securities and the whole LEAP TEAM for giving me the opportunity to work in Reliance Securities Ltd. as a trainee for six weeks. I also would like to thank Mr. Harsh Mehrotra and Mr. Neeraj Kavi for their continued support and guidance in conducting the survey, whose help, suggestions and encouragement helped to complete research on time. I sincerely convey my gratitude to my mentor Dr. Shruti Gupta for her pieces of advice and corrections throughout the course of this project. I specifically would like to express my heartiest thank to all the staff members of Reliance Securities, Karol Bagh branch for their cooperation and their help during the internship as well as in the project. This project would not have been possible without their patience, time and support.

Soney

Executive Summary In few years Mutual Fund has emerged as a tool for ensuring ones financial well being. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds. The main reason the number of retail mutual fund investors remains small is that nine in ten people with incomes in India do not know that mutual funds exist. But once people are aware of mutual fund investment opportunities, the number who decide to invest in mutual funds increases to as many as one in five people. The trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer is to understand which of the potential investors are more likely to buy mutual funds and to use the right arguments in the sales process that customers will accept as important and relevant to their decision. This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. The analysis and advice presented in this Project Report is based on market research on the saving and investment practices of the investors and preferences of the investors for investment in Mutual Funds. This Report will help to know about the investors Preferences in Mutual Fund means Are they prefer any particular Asset Management Company (AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they prefer or Which Investment Strategy they follow (Systematic Investment Plan or One time Plan). This Project as a whole can be divided into two parts. The first part gives an insight about Mutual Fund and its various aspects, the Company Profile, Objectives of the study, Research Methodology. One can have a brief knowledge about Mutual Fund and its basics through the Project. The second part of the Project consists of data and its analysis collected through survey done on 50 people. For the collection of Primary data I made a questionnaire and surveyed of 50 people. I visited other AMCs in Delhi to get some knowledge related to my topic. I studied about the products and strategies of other AMCs in Delhi to know why people prefer to invest

in those AMCs. This Project covers the topic EVALUATING DIFFERENT MUTUAL FUND SCHEMES FOR LOW INCOME GROUP. The data collected has been well organized and presented. I hope the research findings and conclusion will be of use

TABLE OF CONTENTS

Certificate by Industry Supervisor (i) Certificate by Faculty Mentor (ii) Certificate of Originality(iii) Acknowledgement..(iv) Executive Summary....(v) List of Tables and Exhibits.(vi) CHAPTER 1- INTRODUCTION OF THE COMPANY. BUSINESS MIX VISION & VALUES. AWARDS & ACHEIVEMENTS.. BOARD OF DIRECTORS. ORGANIZATIONAL STRUCTURE PRODUCT SERVICES. ABOUT MUTUAL FUND... CHAPTER 2- OBJECTIVES OF THE STUDY. CHAPTER 3- LITERATURE REVIEW CHAPTER 4- RESEARCH METHODOLOGY CHAPTER 5- DATA ANALYSIS OF PROJECT & INTERPRETATION CHAPTER 6- FINDINGS & CONCLUSION

CHAPTER 7- RECOMMENDATIONS BIBLIOGRAPHY APPENDIX

LIST OF TABLES S.No. 1 Table No. 1.1 Table Name Reliance group structure Page No.

LIST OF EXIBITS S.No. 1 2 3 4 5 6 * EXIBIT No. 1.1 1.2 1.3 1.4 1.5 5.1- 5.15 * EXIBIT Name Concept of mutual fund Mutual fund operation chart Organization of a mutual fund Types of mutual fund Risk return reward in Mutual fund Charts Questionnaire Page No.

CHAPTER NO.1

The reliance group founded by Dhirubhai. H. Ambani (1932-2002) is Indias largest private sector enterprise. He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream a nd learn to excel. The Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals. Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Act in 1963, and started its operations in 1964 with the issue of units under the scheme US-641. In 1978 UTI was delinked from the RBI and Industrial Development Bank of India (IDBI) took over the Regulatory and administrative control in place of RBI. In the year 1987 Public Sector banks like State Bank of India, Punjab National Bank, Indian Bank, Bank of India, and Bank of Baroda have set up mutual funds. Apart from these above mentioned banks Life Insurance Corporation [LIC] and General Insurance Corporation [GIC] too have set up mutual fund. LIC established its mutual fund in June 1989.while GIC had set up its mutual fund in December 1990.The mutual fund industry had assets under management of Rs. 47,004 crores. With the entry of Private Sector Funds a new era has started in Mutual Fund Industry .e.g:- Principal Mutual Fund. Reliance Group Holdings has grown from a small office data-processing equipment firm in 1961 into a major insurance and financial-services group in one generation under one chief.

Reliance's insurance operations constitute the nation's 27th-largest property and casualty operation. The parent company also includes a development subsidiary in commercial real estate. Reliance's international consulting group contains several energy, environment, and natural resources consulting. A financial arm invests in other businesses, primarily television stations. Reliance Insurance started as the Fire Association of Philadelphia in 1817, organized by 5 hose and 11 engine fire companies. It became the nation's first association of volunteer fire departments. Business got a boost as a result of the Great Chicago Fire of 1871. The association soon developed a field of agents to write policies across the country. For the first two years, shareholders received dividends twice a year of $5 a share, which increased gradually to $10 in 1876. In 1972, the Reliance insurance group divided its pool so that Reliance Insurance Company and its subsidiaries handled most standard lines, while United Pacific Insurance Company handled the nonstandard and other operations. In 1977, the company moved into real estate, forming Continental Cities Corporation, which became Reliance Development Group, Inc. This division handled all real estate operations of the parent company and other subsidiaries. Reliance Capital Group, L.P. constituted the investment branch of the Reliance conglomerate. In December 1989, Reliance Capital sold its investment, Days Corporation, parent company of Days Inn of America, the world's third-largest hotel chain; it had been purchased in 1984. Reliance Industries Limited. The Group's principal activity is to produce and distribute plastic and intermediates, polyester filament yarn, fiber intermediates, polymer intermediates, crackers, chemicals, textiles, oil and gas. The refining segment includes production and marketing operations of the Petroleum refinery. The petrochemicals segment includes production and marketing operations of petrochemical products namely, High and Low density Polyethylene. "Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it." RELIANCE CAPITAL LTD Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmadabad in Gujarat as Reliance Capital & Finance Trust Limited. The name RCL came into effect from January 5, 1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in Maharashtra, in 2006. In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the shareholder base of RCL rose from 0.15 million shareholders to 1.3 million. RCL entered the Capital Market with a maiden public issue in 1990 and in subsequent years further tapped the capital market through rights issue and public issues. The equity shares were initially listed on the Ahmadabad Stock Exchange and The Stock Exchange Mumbai. Presently the shares are listed on The Stock Exchange Mumbai and the National Stock Exchange of India. RCL was accredited a Category 1 Merchant banker by the Securities Exchange Board of India (SEBI). It had lead managed/co-managed 15 issues of an aggregate value of Rs. 400 crore and had underwritten

33 issues for an aggregate value of Rs. 550 crore. All these companies were listed on various exchanges. RCL obtained its registration as a Non-banking Finance Company (NBFC) in December 1998. In view of the regulatory requirements RCL surrendered its Merchant Banking License. RCL has since diversified its activities in the areas of asset management and mutual fund; life and general insurance; consumer finance and industrial finance; stock broking; depository services; private equity and proprietary investments; exchanges, asset reconstruction; distribution of financial products and other activities in financial services. Reliance Securities endeavors to change the way investors transact in equities markets and avails services. It provides customers with access to Equity, Derivatives, Mutual Funds and IPOs. It also offers secured online share trading platform and investment activities in secure, cost effective and convenient manner. To enable wider participation, it also provides the convenience of trading offline through variety of means, including Call & Trade, Branch dealing Desk and its network of affiliates. Reliance Securities has a pan India presence at more than 1,700 locations. Reliance Capital is one of India's leading and fastest growing private sector financial services Companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worthS. Reliance Capital, a constituent of CNX Nifty Junior and MSCI India, is a part of the Reliance Group. It is one of India's leading and amongst most valuable financial services companies in the private sector. Reliance Mutual Fund is amongst top two Mutual Funds in India with over six million investor folios. Reliance Life Insurance and Reliance General Insurance are amongst the leading private sector insurers in India. Reliance Securities is one of Indias leading retail broking houses. Reli ance Money is one of Indias leading distributors of financial products and services. Reliance Capital has a net worth of Rs. 11,991 crore (US$ 2.2 billion) and total assets of Rs. 40,588 crore (US$ 7.5 billion) as on March 31, 2013. TABLE 1.1 Business mix of Reliance Capital Asset Management Insurance Mutual Fund, Offshore Fund, Pension fund, Portfolio Management Life Insurance, General Insurance

Commercial Finance Mortgages, Loans against Property , SME Loans, Loans for Vehicles, Loans for Construction Equipment, Business Loans, Infrastructure financing Broking Distribution Other Businesses and Equities, Commodities and Derivatives, Wealth Management Services, Portfolio Management Services, Investment Banking, Foreign Exchange, Third Party Products Private Equity, Institutional Broking, Asset Reconstruction, Venture Capital

Source : reliance capital (http://www.reliancecapital.co.in/about_bo.html)

http://www.reliancecapital.co.in/pdf/Factsheet.pdf

VISION AND VALUES Reliance Capital's vision is that: By 2015, it will be a company that is known as: "The most profitable, innovative, and most trusted financial services company in India and in the emerging markets". In achieving this vision, the company will be both customer-centric and innovation-driven. And the Values is

Shareholder Interest. People Care. Consumer Focus. Excellence in Execution. Team work. Proactive Innovation. Leadership by Empowerment. Social Responsibility. Respect for Competition.

Awards & Achievements

'Most Admired Service Provider in Financial Sector' by IPE BFSI, 2012 'Indian E-Retail Awards for Best Customer Experience Award' by Franchise India, 2012 'My FM Stars of the Industry 2012'for excellence in Online Demat (Broking category) Reliance Securities Limited is now ISO 9001:2008 certified for Online Trading Platform 'Brand Leadership Legacy Award' at the Asian Leadership Awards - Dubai, 2011 'My FM Stars of the Industry 2011' for excellence in Online Demat / Broking 'Largest E-Broking House 2010' by Dun & Bradstreet 'Largest E-Broking House & Best Equity Broking House for the year 2009' by Dun & Bradstreet 'Best in category Service Franchise' at the 6th International Franchise & Retail show 2008 'Best E-Brokerage House 2008' (runner's up) by Outlook Money NDTV Profit Awards 'Debutant Franchisor of the Year' at the 5th International Franchisee & Retail Show 2007 Reliance Securities has been rated no. 1 by Starcom Worldwide for online security and cost effectiveness in 2007 BOARD OF DIRECTORS

Anil Ambani, Chairman Amitabh Jhunjhunwala, Vice-Chairman Rajendra Chitale, Independent Director Shri C. P. Jain Shri. P N Ghatalia

Type Traded as

Public company BSE: 500111 NSE: RELCAPITAL Financial services 1986 Dhirubhai Ambani

Industry Founded Founder(s)

Headquarters Mumbai, India Key people Products Anil Ambani (Chairman) Asset Management, insurance, broking and distribution, commercial finance, other Businesses 6,627 crore (US$1.1 billion) (2012) 458 crore (US$79 million) (2012) 11,000 (2011) Reliance Anil Dhirubhai Ambani Group Reliance Life Insurance, Reliance Capital Asset Management Limited,[1] Reliance Money,Reliance Consumer Finance and Reliance Securities.

Revenue Profit Employees Parent Subsidiaries

Reliance ADA Group Structure

 O O O O O O O O O O O O O O O O O O O

PRODUCTS & SERVICES:EQUITY DELIVERY CASH TRADING - INTRADAY EXPOSURE AGAINST STOCKS AFTER MARKET ORDERS RMAX PLAN RSP PLAN R-MODEL PORTFOLIO COMPETITIVE TARIFFS RGESS PLAN DERIVATIVES CURRENCY MUTUAL FUNDS IPO IPO / FPO FINANCING NCDS / BONDS LIST OF NCDS / BONDS INVEST IN NCDS / BONDS NRI OFFERINGS PORTFOLIO INVESTMENT SCHEME (PINS) DERIVATIVES MUTUAL FUNDS & IPO WHY US? TARIFFS & BANK CHARGES APPLY NOW FAQS QULIFIED FOREIGN INVESTOR(QFI) TRADE WITH US RESEARCH ON SMS RMOBILE XPRESS R-INDEX

Reliance mutual fund profile Reliance Mutual Fund - Accelerating Growth

Reliance Mutual Fund, a part of the Reliance Anil Dhirubhai Ambani Group is the No. 1 Mutual Fund in India. Reliance Mutual Fund offers investors a well rounded portfolio of products to meet varying investor requirements. Reliance Mutual Fund has a presence in over 100 cities across the country, an investor base of over 3.9 million and manages assets over Rs. 67,598 Crores as on August 31, 2007. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Ltd., a wholly owned subsidiary of Reliance Capital Ltd. Reliance Capital Ltd. is one of Indias leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and other financial services.

INTRODUCTION TO 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 invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned in these investments and the capital appreciation realized by the scheme is shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. Anybody with an invest able surplus of a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy. A mutual fund is the ideal investment vehicle for todays complex and modern financial scenario. Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Price changes in these assets are driven by global events occurring in faraway places. A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily. A mutual fund is answer to all these situations. It appoints professionally qualified and experienced staff that manages each of these functions on a fulltime basis. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. In fact, the mutual fund vehicle exploits economies of scale in all three areas research, investment and transaction processing. A draft offer document is to be prepared at the time of launching the fund. Typically, it pre specifies the investment objective of the fund, the risk associated, the cost involved in the process and the broad rules for entry into and exit from the fund and other areas of operation. In India, as in most countries, these sponsors need approval from a regulator, SEBI in our case. SEBI looks at track records of the sponsor and its financial strength in granting approval to the fund for commencing operations. A sponsor then hires an asset management company to invest the funds according to the investment objective. It also hires another entity to be the custodian of the assets of the fund and perhaps a third one to handle registry work for the unit holders of the fund.In the Indian context, the sponsors promote the Asset Management Company also,in which it holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset Management Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset Management Company Ltd., which has floated different mutual funds schemes and also acts as an asset manager for the funds collected under the schemes. As per SEBI regulations, mutual funds can offer guaranteed returns for a maximum period of one year. In case returns are guaranteed, the name of the guarantor and how the guarantee would be honored is required to be disclosed in the offer document. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders.

1.1 THE CONCEPT OF MUTUAL FUND IN DETAIL A mutual fund uses the money collected from investors to buy those assets which are specifically permitted by its stated investment objective. Thus, an equity fund would buy equity assets ordinary shares, preference shares, warrants etc. A bond fund would buy debt instruments such as debentures, bonds or government securities. It is these assets which are owned by the investors in the same proportion as their contribution bears to the total contributions of all investors put together. Any change in the value of the investments made into capital market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's assets by the total number of units issued to the investors. A Mutual Fund is an investment tool that allows small investors access to a well-diversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day.

EXHIBIT 1.2 Concept of mutual fund Sources : http://www.wealthbuilders.in/Mutual%20Fund.htm

When an investor subscribes to a mutual fund, he or she buys a part of the assets or the pool of funds that are outstanding at that time. It is no different from buying shares of joint stock Company, in which case the purchase makes the investor a part owner of the company and its assets. However, whether the investor gets fund shares or units is only a matter of legal distinction. A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus Mutual fund is 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 FUND OPERATION FLOW CHART

EXHIBIT 1.3 Mutual fund operation chart

Source : http://www.amfiindia.com/showhtml.aspx?page=mfconcept

From the above chart , it can be observed that how the money from the investors flow and they get returns out of it. With a small amount of fund, investors pool their money with the funds managers. Taking

into consideration the market strategy the funds managers invest this pool of money into reliable securities. With ups and downs in market returns are generated and they are passed on to the investors. The above cycle should be very clear and also effective. The fund manager while investing on behalf of investors takes into consideration various factors like time, risk, return, etc. so that he can make proper investment decision.
ORGANISATION OF A MUTUAL FUND There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund

EXHIBIT 1.4 Organization of a mutual fund Sources : http://www.amfiindia.com/showhtml.aspx?page=mfconcept

ADVANTAGES & DISADVANTAGES OF MUTUAL FUND

ADVANTAGES OF MUTUAL FUND Professional Management. The major advantage of investing in a mutual fund is that you get a professional money manager to manage your investments for a small fee. You can leave the investment decisions to him and only have to monitor the performance of the fund at regular intervals. Diversification. Considered the essential tool in risk management, mutual funds make it possible for even small investors to diversify their portfolio. A mutual fund can effectively diversify its portfolio because of the large corpus. However, a small investor cannot have a well-diversified portfolio because it calls for large investment. For example, a modest portfolio of 10 bluechip stocks calls for a few a few thousands. Convenient Administration. Mutual funds offer tailor-made solutions like systematic investment plans and systematic withdrawal plans to investors, which is very convenient to investors. Investors also do not have to worry about investment decisions, they do not have to deal with brokerage or depository, etc. for buying or selling of securities. Mutual funds also offer specialized schemes like retirement plans, childrens plans, industry specific schemes, etc. to suit personal preference of investors. These schemes also help small investors with asset allocation of their corpus. It also saves a lot of paper work. Costs Effectiveness A small investor will find that the mutual fund route is a cost-effective method (the AMC fee is normally 2.5%) and it also saves a lot of transaction cost as mutual funds get concession from brokerages. Also, the investor gets the service of a financial professional for a very small fee. If he were to seek a financial advisor's help directly, he will end up paying significantly more for investment advice. Also, he will need to have a sizeable corpus to offer for investment management to be eligible for an investment advisers services. Liquidity. You can liquidate your investments within 3 to 5 working days (mutual funds dispatch redemption cheques speedily and also offer direct credit facility into your bank account i.e. Electronic Clearing Services). Transparency. Mutual funds offer daily NAVs of schemes, which help you to monitor your investments on a regular basis. They also send quarterly newsletters, which give details of the portfolio, performance of schemes against various benchmarks, etc. They are also well regulated and Sebi monitors their actions closely. Tax benefits.

You do not have to pay any taxes on dividends issued by mutual funds. You also have the advantage of capital gains taxation. Tax-saving schemes and pension schemes give you the added advantage of benefits under section 88. Affordability Mutual funds allow you to invest small sums. For instance, if you want to buy a portfolio of blue chips of modest size, you should at least have a few lakhs of rupees. A mutual fund gives you the same portfolio for meager investment of Rs.1,000-5,000. A mutual fund can do that because it collects money from many people and it has a large corpus.

DISADVANTAGES OF MUTUAL FUNDS

Professional Management- Did you notice how we qualified the advantage of professional management with the word "theoretically"? Many investors debate over whether or not the so-called professionals are any better than you or I at picking stocks. Management is by no means infallible, and, even if the fund loses money, the manager still takes his/her cut. We'll talk about this in detail in a later section. Costs - Mutual funds don't exist solely to make your life easier--all funds are in it for a profit. The Mutual fund industry is masterful at burying costs under layers of jargon. These costs are so complicated that in this tutorial we have devoted an entire section to the subject. Dilution - It's possible to have too much diversification (this is explained in our article entitled "Are You Over-Diversified?"). Because funds have small holdings in so many different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money. Taxes - When making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability. Equity funds, if selected in the right manner and in the right proportion, have the ability to play an important role in achieving most long-term objectives of investors in different segments. While the selection process becomes much easier if you get advice from professionals, it is equally important to know certain aspects of equity investing yourself to do justice to your hard earned money.

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the Industry.

In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets Under Management (AUM) was Rs67 billion. The private sector entry to the fund family raised the Aum to Rs. 470 billion in March 1993 and till April 2004; it reached the height if Rs. 1540 billion. The Mutual Fund Industry is obviously growing at a tremendous space with the mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under. First Phase 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management. Second Phase 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores. Third Phase 1993-2003 (Entry of Private Sector Funds) 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. Fourth Phase since February 2003 In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes. CATEGORIES OF MUTUAL FUND

EXHIBIT 1.5 Types of mutual fund Sources : http://www.wealthbuilders.in/Mutual%20Fund.htm

CLASIFICATION OF MUTUAL FUNDS Based on their structure:

Open-ended funds: Investors can buy and sell the units from the fund, at any point of time. Close-ended funds: These funds raise money from investors only once. Therefore, after the offer period, fresh investments can not be made into the fund. If the fund is listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, most of the New Fund Offers of closeended funds provided liquidity window on a periodic basis such as monthly or weekly. Redemption of units can be made during specified intervals. Therefore, such funds have relatively low liquidity.

Based on their investment objective: A) Equity funds: These funds invest in equities and equity related instruments. With fluctuating share prices, such funds show volatile performance, even losses. However, short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have outperformed all asset classes in the long term. Hence, investment in equity funds should be considered for a period of at least 3-5 years. It can be further classified as: i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weightages. ii) Equity diversified funds- 100% of the capital is invested in equities spreading across different sectors and stocks. iii|) Dividend yield funds- it is similar to the equity diversified funds except that they invest in companies offering high dividend yields. iv) Thematic funds- Invest 100% of the assets in sectors which are related through some theme. e.g. -An infrastructure fund invests in power, construction, cements sectors etc. v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will invest in banking stocks. vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors. B) Balanced fund: Their investment portfolio includes both debt and equity. As a result, on the risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments. Following are balanced funds classes: i) Debt-oriented funds -Investment below 65% in equities. ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt. C) Debt fund: They invest only in debt instruments, and are a good option for investors averse to idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income instruments like

bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds depending on your investment horizon and needs. i) Liquid funds- These funds invest 100% in money market instruments, a large portion being invested in call money market. ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills. iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate. iv) Arbitrage fund- They generate income through arbitrage opportunities due to mix-pricing between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities. v) Gilt funds LT- They invest 100% of their portfolio in long-term government securities. vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term debt papers. vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-30% to equities. viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.

INVESTMENT STRATEGIES 1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of a month. Payment is made through post dated cheques or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA) 2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund. 3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month.

WHY INVESTOR NEEDS MUTUAL FUND :Mutual funds offer benefits, which are too significant to miss out. Any investment has to be judged on the yardstick of return, liquidity and safety. Convenience and tax efficiency are the other benchmarks relevant in mutual fund investment. In the wonderful game of financial safety and returns are the tows opposite goals and investors cannot be nearer to both at the same time. The crux of mutual fund investing is averaging the risk. Many investors possibly dont know that considering returns alone, many mutual funds have outperformed a host of other investment products. Mutual funds have historically delivered yields averaging between 9% to 25% over a medium to long time frame. The duration is important because likewise, mutual funds return taste bitter with the passage of time. Investors should be prepared to lock in their investments preferably for 3 years in an income fund and 5 years in an equity funds. Liquid funds of course, generate returns even in a short term.

MUTUAL FUND RISK:Mutual funds face risks based on the investments they hold. For example, a bond fund faces interest rate risk and income risk. Bond values are inversely related to interest rates. If interest rates go up, bond values will go down and vice versa. Bond income is also affected by the changes in interest rates. Bond yields are directly related to interest rates falling as interest rates fall and rising as interest rates. Similarly, a sector stock fund is at risk that its price will decline due to developments in its industry. A stock fund that invests across many industries is more sheltered from this risk defined as industry risk. Followings are glossary of some risks to consider when investing in mutual funds:-

COUNTRY RISK :The possibility that political events (a war, national election), financial problems (rising inflation, government default), or natural disasters will weaken a countrys economy and cause investments in that country to decline.

INCOME RISK :The possibility that political events (a war, national election), financial problems (rising inflation, government default), or natural disasters will weaken a countrys economy and cause investments in that country to decline.

MARKET RISK :The possibility that stock fund or bond fund prices overall will decline over short or even extended periods. Stock and bond markets tend to move in cycles, with periods when prices rise and other periods when prices fall.

RISK RETURN REWRAD IN MUTUAL FUND

Equity Fund Balance Fund MIP Income Fund

Short Term Fund Liquid Fund

EXHIBIT 1.6 Risk return reward in Mutual fund This graph shows risk and return impact on various mutual funds. There is a direct relationship between risks and return, i.e. schemes with higher risk also have potential to provide higher returns.

CHAPTER NO.2

1. The objective of the research is to study and analyze the awareness level of investors of mutual funds for low income group. 2. To measure the satisfaction level of investors of low income group regarding mutual funds

3. An attempt has been made to measure various variables playing in the minds of investors in terms of safety, liquidity, service, returns, and tax saving. 4. To know the mutual funds performance levels in the present market of low income group.

5. To know the awareness of mutual funds among different groups of investors in low income group.

CHAPTER NO.3

a) 1st Research paper A study on investors attitude towards mutual funds as an investment option. By Dr. Binod Kumar Singh (Faculty Member)Designation Faculty Member Address-Dr. Binod Kumar Singh, Faculty Member, Amity Global Business School, Patna Literature review In this paper, structure of mutual fund, operations of mutual fund, comparison between investment in mutual fund and bank 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, Chisquare test has been used and for analyzing the various factors responsible for investment in mutual funds, ranking was done on the basis of weighted scores and scoring was also done on the basis of scale. A Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. The money collected from investors is invested in capital market instrument such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its units holder in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment to the common man as it offers an opportunity, to invest in a diversified, professionally managed basket of securities at relatively low cost. Singh and Jha (2009) conducted a study on awareness & acceptability of mutual funds and found that consumers basically prefer mutual fund due to return potential, liquidity and safety and they were not totally aware about the systematic investment plan. Desigan et al (2006) conducted a study on women investors perception towards investment and found that women investors basically are indecisive in investing in mutual funds due to various reasons like lack of knowledge about the investment protection and their various investment procedures, market fluctuations, various risks associated with investment, assessment of investment and redressal of grievances regarding their various investment related problems. Ramamurthy and Reddy (2005) conducted a study to analyze recent trends in the mutual fund industry and draw a conclusion that the main benefits for small investors due to efficient management, diversification of investment, easy administration, nice return potential, liquidity, transparency, flexibility, affordability, wide range of choices and a proper regulation governed by SEBI. Anand and Murugaiah (2004) had studied various strategic issues related to the marketing of financial services. They found that recently this type of industry requires new strategies to survive and for operation. The study shows that most of respondents are still confused about the mutual funds and have not formed any attitude towards the mutual fund for investment purpose. It has been observed that most of the respondents having lack of awareness about the various function of mutual funds. Moreover, as far as the demographic factors are concerned, gender, income and level of education have significantly influence the investors attitude towards mutual funds.

b) 2nd Research paper International Mutual Funds, Capital Flow Volatility, and ContagionA Survey By Gaston Gelo Literature review Gaining a better understanding of the behavior of international investors is key for informing the debate about the optimal response to capital flows and about reforms to the international financial architecture. In this context, recent research on the behavior of international mutual funds at the micro level has expanded

our knowledge about the drivers of portfolio flows and the mechanisms behind the transmission of financial shocks across countries. This paper provides a brief survey of this literature, with a focus on the empirsical evidence for emerging markets. Overall, the behavior of international mutual funds is complex and overly simplistic characterizations are misleading. However, there is broad-based evidence for momentum trading among funds. Moreover, funds tend to avoid opaque markets and assets, and this behavior becomes more pronounced during volatile times. Portfolio rebalancing mechanisms are clearly important in explaining contagion patterns, even in the absence of common macroeconomic fundamentals. From a surveillance point of view, this implies that monitoring the exposures of large investors at a micro level is crucial to assess vulnerabilities. One salient feature of financial globalization has been the growth of international mutual funds. To a significant extent, this reflects the fact that investors in mature markets have increasingly sought to diversify their assets by investing in emerging markets, often through so-called dedicated emerging market funds (which invest exclusively in emerging markets or through increased emerging market participation by globally active funds. Jeon and Moffet (2010) find evidence of a significant impact of foreign investor herding on stock returns. As Broner, Gelos, and Reinhart (2006) describe in a simple set up when returns of a particular fund are low relative to the benchmark, its fund manager will become more risk averse, reducing the funds weight in countries to which it was overexposed, and thereby adjusting its portfolio in the direction of the average portfolio (i.e.the benchmark). In Kodres and Pritsker (2002), investors transmit idiosyncratic shocks from one market to others by rebalancing their portfolios exposures to common macroeconomic risks. Kyle and Xiong (2001) model contagion as a wealth effect in a set up with two risky assets and different types of traders. Understanding the behavior of international investors is key for informing the debate about the optimal response to international capital flows and about reforms to the international financial architecture. In this context, recent research on the behavior of international mutual funds at the micro level has improved our understanding of the drivers of international portfolio flows and the mechanisms behind the transmission of financial shocks across countries. c) 3rd Research paper The Behavior of Mutual Fund Investors By Brad M. Barber, Terrance Odean, Lu Zheng Literature review We analyze the mutual fund purchase and sale decisions of over 30,000 households with accounts at a large U.S. discount broker for the six years ending in 1996. We document three primary results. First, investors buy funds with strong past performance; over half of all fund purchases occur in funds ranked in the top quintile of past annual returns. Second, investors sell funds with strong past performance and are reluctant to sell their losing fund investments; they are twice as likely to sell a winning mutual fund rather than a losing mutual fund and, thus, nearly 40 percent of fund sales occur in funds ranked in the top quintile of past annual returns. Third, investors are sensitive to the form in which fund expenses are charged; though investors are less likely to buy funds with high transaction fees (e.g., broker commissions or front-end load fees), their purchases are relatively insensitive to a funds operating expense ratio.

We argue that the representative heuristic leads investors to buy past winners, the disposition effect renders investors reluctant to sell their losers, and framing effects cause investors to react differently to various forms of fund expenses. Given extant evidence on the persistence of mutual fund performance, one can reasonably argue that the purchase of last years winning funds is rational. However, we argue that selling winning fund investments and neglecting a funds operating expense ratio when purchasing a fund is clearly counterproductive. Using a representativeness heuristic, people believe small samples to be overly representative of the population from which they are drawn (Tversky and Kahneman (1971), Kahneman and Tversky (1972)). Gilovich, Vallone, and Tversky (1985) document that people systematically underestimate the chance of observing streaks, such as a run of heads in the flip of an unbiased coin, in a random sequence. Barber and Odean (2000) report average, median, and aggregate turnover rates of 75 percent, 31 percent, and 79 percent, respectively, for individual common stocks held by these households. If investors use the purchase price of their mutual funds as a reference point, prospect theory predicts that mutual fund investors would be more likely to sell their winning mutual funds than their losers. The disposition to sell winners and hold losers has been dubbed the disposition effect (Shefrin and Statman (1985)). The disposition effect has a large effect on the investors selling decisions for many asset classes, including individual common stocks (Odean (1998), Grinblatt and Keloharju (2000)), company stock options (Heath, Huddart, and Lang (1999)), residential housing (Genesove and Mayer (1999)), and futures (Locke and Mann (1999)). Mutual fund investors display systematic patterns in the mutual funds that they buy and sell. They tend to purchase funds with strong past performance, while generally neglecting operating expenses charged by the fund. Investors tend to sell funds that have posted strong returns. We argue that decision-making biases can explain these patterns. Finally, the framing of mutual fund expenses affects investor behavior. Consistent with this conclusion, investors spurn the purchase of funds with high salient in-ones-face fees, such as front-end load fees or brokerage commissions. In contrast, investors generally neglect a funds operating expense ratio when buying funds. In fact, after controlling for past performance and other fund characteristics, we document a weak positive relation between operating expenses and fund purchases. This result raises the intriguing possibility that the more salient disclosure of mutual fund operating expenses could affect investor behavior. d) 4th Research Paper : Performance Evaluation of Equity Mutual Funds (On Selected Equity Large Cap Funds) by Dr. R.Narayanasamy, V. Rathnamani Literature review In India capital market provide various investment avenues to the investors, to help them to invest in various industries and to ensure the profitable return . Among various financial products, mutual fund ensures the minimum risks and maximum return to the investors, Growth and developments of various mutual funds products in the Indian capital market has proved to be one of the most catalytic instruments in generating momentous investment growth in the capital market. In this context, close monitoring and evaluation of mutual funds has become essential. Therefore, choosing profitable mutual funds for investment is a very important issue. 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 is to analysis financial performance of selected mutual fund schemes through the statistical parameters such as (alpha ,beta, standard deviation, r-squared, Sharpe ratio) . A mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. In a mutual fund, the fund manager, who is also known as the portfolio manager, trades the fund's underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. Trey nor (1965) presents a new way of viewing performance results. He attempted to rate the performance of mutual funds on a characteristics line graphically. The steeper the line, the more systematic risk or volatility a fund possesses. By incorporating various concepts, he developed a single line index, Tn, called Trey nor index. Gupta and Sehgal (1998) evaluated performance of 80 mutual fund schemes over four years (199296). The study tested the proposition relating to fund diversification, consistency of performance, parameter of performance and risk-return relationship. The study noticed the existence of inadequate portfolio diversification and consistency in performance among the sample schemes. Roshni Jayams (2002) study brought out that equities had a good chance of appreciation in future. The researcher was of the view that, investors should correctly judge their investment objective and risk appetite before picking schemes, diversified equity funds were typically safer than others and index funds were the best when market movements were not certain. The researcher suggested Systematic Withdrawal Plan (SWP) with growth option was more suitable for investors in need of regular cash inflows. Jenson, Michal C. (1967), The Performance of Mutual Funds in the Period 1945 1964, The Journal of Finance, Vol 23, No. 2, pp.389 416. The research paper indicates the past performance of the fund, predict the future demand of the fund, investors attract to invest in Mutual Fund. Carhart, Mark M.1997, on persistence in mutual fund performance, Journal of Finance 52, 57 82.On determination of the fund performance need to identification risk and measures fund return. The paper demonstrate how to identified scheme and diversification of the portfolio. The portfolio need to adjustment risk.

e) 5th Research paper SMALL INVESTORS PERCEPTIONS ON MUTUAL FUNDS IN ASSAM: AN EMPIRICAL ANALYSIS by Sanjay das Literature review The 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 plethora of schemes provides variety of options to suit the individual objectives whatever their age, financial position, risk tolerance and return expectations. In the past few years, we had seen a dramatic growth of the Indian Mutual Fund industry with many private players bringing global expertise to the industry. Investment in mutual funds is effected by the perception of the investors. The objectives of the study are to identify the small investors perceptions on mutual funds and to analyse the factors affecting small investors perception towards mutual fund. The study aims at finding out the attitude of the small

investors towards investment in mutual funds in Assam. By adopting convenience sampling, 250 respondents living in five different commercial towns of Assam were selected for this study. Simple statistical tools are used for analysing the data whatsoever collected in this study. Small investors are now turning more to mutual funds because of safety, liquidity, capital gains and transparency. The present investigation outlined that mostly the small investors have positive approach towards investing in mutual funds. A Mutual Fund (henceforth MF) is an investment tool that allows small investors access to a welldiversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Sikidar and Singh (1996) carried out a survey with an objective to understand the behavioral aspects of the investors of the North Eastern Region towards equity and MFs investment portfolio. King (2002) has highlighted the emergence of products like exchange traded funds, hedge funds, managed accounts etc. which offer competition to MFs. Venketesh (2004) concludes that the fund houses incur additional expenses to market the new product which further reduces the Net Asset Value which hinders the growth of MF schemes. Sankaran (2004) proposes the future direction for investors will be to invest in pension funds, as government is envisaging a policy to cover all kinds of investors. Sondhi and Jain (2005) have examined the performance of equity MFs classified on the basis of public sector and private sector. Badla and Garg (2007) observed that most of the schemes outperformed the market and the risk undertaken in the schemes is more than the market risk. Sudalaimuthu and Kumar (2008) observed that MF is the one of investment avenues for small investors and he studied the about investors perception towards MF investments effectively taking into account the investors preference towards the MF sector. It is concluded that the MFs business in Assam is still in as embryonic stage. So, concerted efforts are needed for its success. The success depend upon high returns, professional competence of Fund managers, a MF brings together a group of people and invests their money in stocks, bonds and other securities, it have so many advantages such as professional management, economics of scale. f) 6th Research paper A study on investors attitude towards mutual funds as an investment option by Dr. Binod Kumar Singh Literature review In this paper, structure of mutual fund, operations of mutual fund, comparison between investment in mutual fund and bank 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, Chi-square () test has been used and for analyzing the various factors responsible for investment in mutual funds, ranking was done on the basis of weighted scores and scoring was also done on the basis of scale. A Mutual Fund pools the money of people with certain investment goals. The money invested in various securities depending on the objectives of the mutual fund scheme and the profits (or loss) are shared among investors in proportion to their investment. Investments in securities are spread across a wide cross-section of industries and sectors. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the

investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders. The profits or losses are shared by the investors in proportion to their investment. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public. Singh and Jha (2009) conducted a study on awareness & acceptability of mutual funds and found that consumers basically prefer mutual fund due to return potential, liquidity and safety and they were not totally aware about the systematic investment plan. The invertors will also consider various factors before investing in mutual fund. Desigan et al (2006) conducted a study on women investors perception towards investment and found that women investors basically are indecisive in investing in mutual funds due to various reasons like lack of knowledge about the investment protection and their various investment procedures, market fluctuations, various risks associated with investment, assessment of investment and redressal of grievances regarding their various investment related problems. Savings is a habit specially embodied into women. Ramamurthy and Reddy (2005) conducted a study to analyze recent trends in the mutual fund industry and draw a conclusion that the main benefits for small investors due to efficient management, diversification of investment, easy administration, nice return potential, liquidity, transparency, flexibility, affordability, wide range of choices and a proper regulation governed by SEBI. Anand and Murugaiah (2004) had studied various strategic issues related to the marketing of financial services. g) 7th Research paper Mutual Fund Expenses: An Econometric Investigation By David A. Latzko

Literature review In this paper the researcher utilize a panel data set of 600 funds to evaluate the existence and sources of economies of scale in mutual fund administration. The elasticity of fund expenses with respect to assets is less than one, implying the existence of economies of scale. Average total costs are minimized at $22 billion in assets. All cost items exhibit economies of scale. The greatest sources of scale economies are the other administrative expenses, which are a small portion of total costs. An analysis of fund company profits indicates that most scale economies are passed along to shareholders in lower expense ratios. Understanding mutual funds as an industry requires an understanding of the costs of operating a mutual fund. Even though Herman (1963) found that management fees were not significantly responsive to variations in asset size, it seems improbable these costs could grow at the same rate as fund assets. It Mutual funds pay over $1 billion a year in brokerage commissions (Livingston and ONeal 1996, p. 273). These commissions, like management, distribution, and other administrative expenses, are paid directly from the net assets of the fund. While the SEC (2000) study found that funds with a front-end load had a smaller expense ratio than funds without such a load, in Hooks (1996) sample of 1,012 equity funds, load funds actually have a higher average annual expense ratio than no-load funds. 8th Research paper Preference of Investors for Indian Mutual Funds and its

h)

Performance Evaluation by DR.SHANTANU MEHTA, CHARMI SHAH Literature review Mutual funds have opened new vistas to millions of small investors by virtually taking investment to their doorstep. In India, a small investor generally goes for such kind of information, which do not provide hedge against inflation and often have negative real returns. He finds himself to be an odd man out in the investment game. Mutual funds have come, as a much needed help to these investors. Thus the success of MFs is essentially the result of the combined efforts of competent fund managers and alert investors. A competent fund manager should analyze investor behavior and understand their needs and expectations, to gear up the performance to meet investor requirements. Therefore, in this current scenario it is very important to identify needs of mutual funds investors, their preference for mutual funds schemes and its performance evaluation. In this research paper, researcher has an objective to know preference of mutual funds investors and performance evaluation of the preferred schemes by the investors. The survey is undertaken of 100 educated investors of Ahmedabad and Baroda city and the major findings reveal the major factors that influence buying behavior mutual funds investors, sources that investor rely more while making investment and preferable mode to invest in mutual funds market. The study will be immensely useful to the AMC';s , Brokers, distributors and to the other potential investors and last but not least to academician as well. Consumer behavior from the marketing world and financial economics have come together to bring to surface an exciting area for study and research in the form of Behavioral Finance and it has been gaining importance over the recent years. With reforms in financial sector and the developments in the Indian financial markets, Mutual Funds (MFs) have emerged to be an important investment avenue for retail (small) investors. The investment habit of the small investors particularly has undergone a sea change. Increasing number of players from public as well as private sectors has entered in to the market with innovative schemes to cater to the requirements of the investors in India and abroad. For all investors, particularly the small investors, mutual funds have provided a better alternative to obtain benefits of expertise- based equity investments to all types of investors. So in this scenario where many schemes are flooded in to market, it is important to analyze needs of consumers and to find out which factors affects consumers' needs the most. Ippolito (1992) says that fund/scheme selection by investors is based on past performance of the funds and money flows into winning funds more rapidly than they flow out of losing funds Robert J. Shiller (1993) reported that many investors do not have data analysis and interpretation skills. This is because, data from the market supports the merits of index investing, passive investors are more likely to base their investment choices on information received from objective or scientific sources. Gupta (1994) made a household investor survey with the objective to provide data on the investor preferences on MFs and other financial assets. The findings of the study were more appropriate, at that time, to the policy makers and mutual funds to design the financial products for the future. Berhein and Garnette (1996) affirmed Philip's findings and further stated that a serious national Campaign to promote savings through education and information could have a measurable impact on financial behaviour. Syama Sunder (1998) conducted a survey to get an insight into the mutual fund operations of private institutions with special reference to Kothari Pioneer. The survey revealed that awareness about Mutual Fund concept was poor during that time in small cities like Visakhapatnam. Shanmugham (2000) conducted a survey of 201 individual investors to study the information sourcing

by investors, their perceptions of various investment strategy dimensions and the factors motivating share investment decisions, and reports that among the various factors, psychological and sociological factors dominated the economic factors in share investment decisions. Anjan Chakarabarti and Harsh Rungta (2000) stressed the importance of brand effect in determining the competitive position of the AMCs. Sujit Sikidar and Amrit Pal Singh (1996) carried out a survey with an objective to understand the behavioural aspects of the investors of the North Eastern region towards equity and mutual funds investment portfolio. The investment in the top 5 schemes of Equity Sector Funds advisable for a long term period as investment in short term period yields negative returns to the investor. So only those investors who are planning to retain the mutual fund investment as their asset for more than a year invest in such schemes. 9th Research paper Strategies for Mutual Fund Investment by Mochi Pankajkumar Kantilal

i)

Literature review Over the past decade, investors of India increasingly have moved to mutual funds to save their hard earned money for their various goals. Mutual funds can provide the advantages of diversification and professional management. But, as with other investment choices, investing in mutual funds involves risk. Also fees and taxes may diminish a fund's returns. To make mutual funds work for you, you are required to understand their strategies and risks. On the other side there are thousands of mutual funds to choose from and a lot of options to consider. Knowing a strategy can enable mutual funds investors to properly evaluate performance, adopt reasonable expectations, and build a portfolio of funds that work together. It also can help investors to choose products that match their goals and tolerance for risk. A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual funds have fund manager who are responsible for investing the gathered money into specific securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. When investors invest in a mutual fund, they are buying units or portions of the mutual fund and thus on investing becomes a unit holder of the fund. The income earned through these investments and the capital appreciations realized by the scheme are shared by its unit holders in proportion to the number of units held by them (pro rata). Mutual funds are regarded as one of the best available investment options as compare to others they are very cost efficient and also easy to invest in,thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification. Jensen (1968) brings forward two dimensions under which the ability and strategies of the fund manager can influence the fund returns. Polito (1992) says that fund/scheme selection by investors is based on past performance of the funds and money flows into winning funds more rapidly than they flow out of losing funds. Teo and Woo (2004) conclude that investors might profit from attempting to time style movement, but it remains unclear how this effect relates to managers investment style consistency. There is no doubt that the investment styles of mutual funds influences the return the mutual funds produced (Harlow and Brown, 2004).

Although most investors know that the actual investment style of mutual funds is the one of the most important factor which may affect their performance, few of them know that the style execution of mutual fund managers can also affects fund return (Brown, Harlow and Zhang, 2009). According to Massa and Pager (2008) The mutual funds with high level of risk have higher returns. The managers can induce the diversified portfolio to give the balanced of returns to the company. With the opening of more and more number of funds every year, offering a wide range of schemes to investors, it becomes more complex for the investors to choose a particular fund fitting best to their needs and finances. Generally, the success of mutual funds investments over time will depend largely on how much money investors have invested in each of the major asset classes stocks, bonds, and cash rather than on the particular securities they hold. When choosing a mutual fund, they should consider how their interest in that fund affects the overall diversification of their investment portfolio. Maintaining a diversified and balanced portfolio is key to maintaining an acceptable level of risk. j) 10th Research paper A COMPARATIVE STUDY OF EQUITY BASED MU by Researcher Schola The last decade has seen a tremendous growth in the mutual fund industry. As per the latest data the assets under management industry is more than Rs 6.8 thousand billion. Today the Indian market is flooded with more than a thousand mutual fund sch promising better returns than others Indian mutual funds. 7.87 trillion in the October-December 2012 quarter from Rs 7.47 trillion in the previous quarter (excluding fund of f numbers released by the (AMFI).This is the highest level since September 2010 (when AMFI started declaring quarterly average and the third consecutive quarterly gain in mutual fund assets. The growth in assets in the lates into income and gilt funds. Further, assets grew by 15% or Rs 1.05 trillion in the calendar year 2012 vis paper an attempt has been made to analyze the performance of equity based mu fund schemes have positive return.UTI Equity Fund- Growth performance is better in comparison of LIC Equity Fund. The SEBI regulations, 1993 defines a mutual fund as a fund in the form of a trust by a sponsor, to raise money by the trustees through the sale of units to the public, under one or more schemes, for investing in securities in accordance with these regulations A mutual fund is an investment vehicle that comprises a pool of funds collected from a large number of investors who invest in securities such as stocks, bonds, and short term money market instruments. The portfolio of a mutual fund is structured and maintained by fund managers. Mutual fund is a trust that pools money from a group of investors (sharing common financial goals) and invest the money thus collected into asset classes that match the stated investment objectives of the scheme. Treynor (1965) and Sharpe (1966) have provided the conceptual framework of relative measure of performance of equity mutual funds while Treynor used systematic risk. Sharpe used total risk to evaluate the mutual fund portfolio performance higher value of Treynor's index indicates better performance of portfolio and vice versa. Holthausen (1992) have developed a model based on 60 financial ratios that predicts return over 12 months period. The study was found particularly useful predictor of stock prices and can be useful in fundamental analysis while taking equity investment decisions. Daniel (1997) has concluded that the 'persistence in mutual funds Results show that particularly aggressive growth funds exhibit some "selectivity" ability but no "timing ability. The Research on Performance Evaluation of Indian Mutual Funds was done by Dr S Narayan Rao in IITB (2002). The Study is conducted to understand whether most of the mutual fund schemes were able to satisfy investors expectations by giving excess returns over expected returns.

The Research on Performance Evaluation of Indian Mutual Funds was done by Dr S Narayan Rao in IITB (2002). The Study is conducted to understand whether most of the mutual fund schemes were able to satisfy investors expectations by giving excess returns over expected returns. The research Mutual Fund Portfolio Creation Using Industry Concentration is done by Mohit Gupta; Navdeep Agarwal in ICFAI University (2009) .There is very little research on the construction of mutual fund portfolio. The present study seeks to fill this gap. The objective of the research is to construct the portfolio using uses the cluster method, taking industry concentration as a variable and to compare the performance of two types of portfolios with selected benchmarks. Dr. B. Nimalathasan, Mr. R. Kumar Ghandhi (2012) studied the financial performance analysis of mutual fund schemes (equity diversified schemes and equity mid-cap schemes) of selected banks. The objective of this research work is to analysis the financial performance of selected mutual fund schemes through the statistical parameters (Standard Deviation, Beta and Alpha) and ratio analysis. UTI Equity Fund has performed well as compared to the Sensex return. LIC Equity Fund lower level of risk compare to UTI Equity Fund. Beta is less than one to all selected mutual fund companies which means the funds are less volatile than the Index. Funds with beta close to one, means the funds performance closely match the benchmark index. Sharpes Index of UTI Equity Fund is higher than LIC Equity Fund so it shows good performance .Treynors Index result revealed that UTI Equity Fund offers better return in comparison LIC Equity Fund for the same level of risk exposure.

CHAPTER NO.4

1. Research Design: A research design is a pattern or an outline of a research projects working. It is a statement of only the essential element of a study, those that provide the basic guidelines for the details of the project. It comprises a series of prior decision that taken together provide master plans for executing a research projects. A research design serves as a bridge between what has been established i.e., the research objectives and what is to be done, in conduct of the study to relish those objectives. If there were no research design, the research would have only foggy notions as about what is to be done. Researcher used Descriptive Type design. The research is of both qualitative as well as quantitative type. 2. Unit of Analysis: Investors Characteristics of interest: Clients knowledge about Mutual Fund. Clients knowledge about Reliance. Clients interest in getting knowledge of Mutual Fund. Clients willingness to deal in Mutual Fund with Reliance. Clients preference in selecting tax saving instrument of investment 3. Sources of Data: Primary Source: The primary data is collected using sampling method and by survey using questionnaire. Secondary Source: Secondary data includes information regarding present market scenario, Information regarding Mutual Funds and competitors are collected by internet, Magazines and Newspaper and books.

4. Sample Planning: Sample Size: 50 units. Sample Extent: Delhi/ NCR

5. Sample design:

A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or method the researcher would adopt in selecting items for the sample. Researcher used convenience sampling method

6. Data collection method: Researcher used survey method to collect the data. Questionnaire plan: Researcher used structured for gathering the required data through contacting respondent personally

7. Type of information: Researcher collected facts, awareness, attitude, future action plan and reason using questionnaire.

8. Type of questions: Close ended questions for dichotomous. Multiple choice type

9. Data Analysis and Interpretation: Data analysis is based on the data collected by way of questionnaires. The data is tabulated and frequency distribution chart is prepared.

CHAPTER NO.5

From the following age group, could you tell me which applies to you?
25 20 15 10 5 0 16 - 25 yrs 26-35 yrs

36-50 yrs 50 & above yrs

EXHIBIT 5.1 Out of 50 respondents, 3 people are in the age between 16-25yrs, 21 are in the age between 26-35yrs , 19 are in the age between 36-50 yrs and 7 are of 50 yrs and above. It shows that the majority of the respondents are in between 26-35yrs and 36-50yrs.

From the following income brackets, could you tell me which applies to you, with respect to your annual household income?
20 15 10 5 0 Below 50,000 50,000 100,000 100,000 1,50,000

1,50,000 2,00,000

EXHIBIT 5.2 Out of 50 respondents, 18 people are in the income group of between 1.5 lacs-2lacs, 16people are in the income group of Rs 1lacs and 50 people are in the income group of Rs 50000 and people belong in the category of below 50000.

What kind of investment you prefer most?

18 16 14 12 10 8 6 4 2 0 Savings Fixed deposits Insurance

Mutual funds

Others

EXHIBIT 5.3 As per the survey report most of the people go for savings followed by fixed deposits. It has been seen that the mutual funds are the least preferred investments in the low income group people.

While investing your money which factor you prefer most?

25 20 15 10 5 0 Liquidity Low Risk

High Return

Company Reputation

EXHIBIT 5.4 Out of 50 respondents most of the people i.e. 21 people invest taking into consideration high returns followed by liquidity, low risk, company reputation i.e. 17,11,1 respectively.

How many months of living expenses could be safely covered by your current liquid investments?
30 25 20 15 10 5 0 More than 12 Between 4 & months 12 months Less than 4 months

EXHIBIT 5.5 Out of the 50 respondents it has been observed that mostly their expenses has been covered by for more than 12 months from their current investments and others says that it covers between 4-12 months.

Have you ever invested in mutual fund

EXHIBIT 5.6 Out of 50 respondents, 43 people have never invested in mutual funds and 7 people were their of having interest in mutual funds.

How do you come to know about mutual fund?

30 25 20 15 10 5 0

EXHIBIT 5.7 As per the survey reports most of the people came to know about the mutual funds through advertisements followed by peer group, banks and financial advisors.

If yes, which mutual fund scheme have you used?

25 20 15 10 5 0 Open ended Close ended

Liquid fund

Monthly Income Schemes

EXHIBIT 5.8 Out of 50 respondents most of the people have used open ended schemes, followed by liquid funds and monthly income schemes.

Which mutual fund plan do you consider the best?

25 20 15 10 5 0 Balanced Plans Equity Plans Income Plans

EXHIBIT 5.9 The best mutual fund plans as per the respondents is income plan and balanced plans having not much differences and equity plans being preferred least.

How long would you like to hold your Mutual Funds' Investments?
30 25 20 15 10 5 0 1-3 yrs 4-6 yrs

7-10 yrs more than 10 yrs

EXHIBIT 5.10 Out of 50 respondents most of the people would like to hold their mutual funds investments between 1-3 yrs i.e.27 people, followed by 19 people who will hold their money in mutual funds between 4-6 yrs,3 people between 7-10 yrs and there was only one person who wanted to hold it for more than 1 yr.

How do you rate the risks associated with Mutual Funds?

25 20 15 10 5 0 Low Moderate High

EXHIBIT 5.11 The lower income group people take very less risk associated with mutual funds.

Which among the following principles do you consider while selecting a Mutual Fund?
50 40 30 20 10 0 Enquiring about the Fund Finding about Its past Manager performance

identifying your own objectives

Others

EXHIBIT 5.12 As per the respondents respond they do not follow any principle for selecting mutual funds.

Which among the following is the safest Investment option?

40 35 30 25 20 15 10 5 0 Mutual funds Stock market

Bank deposits

Other

EXHIBIT 5.13 It has been seen that among lower income group people the safest investment option for them is bank deposits and other options having minimal importance.

If yes, then in which mutual fund scheme you have invested?

25 20 15 10 5 0

EXHIBIT 5.14 Out of sampled 50 respondents, maximum no. of people preferred SBI Magnum Income fund followed by the other schemes and UTI MIS Advantage Plan, HDFC MIP long term, RELIANCE Monthly Income Plan, ICICI PRUDENTIAL MIP having not much difference.

How would you like to receive the returns every year?

45 40 35 30 25 20 15 10 5 0 Dividend Payout Dividend reinvestment

EXHIBIT 5.15

With Interest

Out of 50 respondents, most of the people were of view to get returns with interest while the other two options were not considered of much value by respondents.

CHAPTER NO.6

As the size belong to lower income group. The key findings as per the survey are as follows:

There are very few people who are familiar with mutual funds and invest their money in the market. On meeting around 110-130 people, I merely got a sample size of 50 respondents who had a considerable knowledge on this topic and whom I could entertain as my sample for analysis. As per the survey report most of the people go for savings followed by fixed deposits. It has been seen that the mutual funds are the least preferred investments in the low income group people.

It has been observed that among lower income group bank deposits is the most preferred investment option. It has been concluded that the lower income group people take very less risk associated with mutual funds.

And those who invest in mutual funds prefer SBI Magnum Income fund the most. As per the survey I can conclude that the best mutual fund plans as per the respondents is income plan and balanced plans having not much differences and equity plans being preferred least.

Open ended schemes are the most preferred mutual fund schemes for Low Income Group.

Thus as per the survey report it has been observed that mutual funds are not much fashionable among lower income due to lack of trust as well as awareness.

CHAPTER NO.7

 There should be proper advertisement programs, and free education as well as live demos for people specially belonging to lower income groups in the rural as well underdeveloped areas. Because lack of knowledge is the main reason of its less development. Thus in order to increase the awareness level educating people is must. One of the options that the company can opt is One to One Marketing / Personalized Marketing. They can hire individuals to interact with low income group people and make them aware about various mutual fund schemes.

Also it is found that the peer pressure and friends and relatives followed by brokers are the most influential persons to pull the investors into the capital market.

Most of them feel that there is a lack of trust and faith in market that it would result in loss for them, thus in order to influence investments from small income group people, proper disclosure of their investments and returns should be there.

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 Herman, Edward S. Mutual Fund Management Fee Rates. Journal of Finance, May 1963, 18(2), pp. 360-376. Hooks, Jon A. The Effect of Loads and Expenses on Open-End Mutual Fund Returns. Journal of Business Research, June 1996, 36(4), pp. 199-202. http://faculty.haas.berkeley.edu/odean/papers/MutualFunds/mfund.pdf http://finance.wharton.upenn.edu/~rlwctr/papers/9918.pdf http://www.amfi.com http://www.karvy.com/articles/mfaccounting.htm http://www.moneycontrol.com http://www.nseindia.com/content/ncfm/ncfm_mfam.pdf http://www.Reliance .com//v2/ http://www.relianceadagroup.com/ada/structure_ada.html http://www.reliancecapital.co.in/pdf/Factsheet.pdf http://www.slideshare.net/kamal9111/project-report-of-axis-mutual-fund-by-kamal Indian Journal of Finance Ippolito, R., 1992, Consumer reaction to measures of poor quality : Evidence from Mutual Funds, Journal of Law and Economics, 35, 45-70. | Jayadev, M (1996), Mutual Fund Performance: An Analysis of Monthly Returns, Finance India, 10(1) March, pp 73-84: Jensen, M (1968), "The Performance of Mutual Funds in the Period 1945- 1964". Journal of Finance, Vol. 23 (2), pp. 389-416. | Jeo, Jin Q, and Clay M. Moffet, 2010, Herding by Foreign Investors and Emerging Market Kodres, Laura and M Pritzker, 2002, A Rational Expectations Model of Financial Contagion, Journal of Finance, Vol. 57, pp.769-799. Kyle, Albert S., and Wei Xiong, 2001, Contagion as a Wealth Effect, Journal of Finance, Vol. 56, pp. 1401-1440. Livingston, Miles and ONeal, Edward S. Mutual Fund Brokerage Commissions. Journal of Financial Research, Summer 1996, 19(2), pp. 273-292. Locke, Peter, and Steven Mann, 1999, Do professional traders exhibit loss realization aversion?, Working paper, Texas Christian University. Massa, Massimo and Rajdeep Patgiri, Incentives and Mutual FundPerformance: Higher Performance or Just Higher Risk Taking? The Review ofFinancial Studies, Vol. 22, Issue 5, May 2009, pages 1777-1815. | Mutual Funds: An Introduction to the Core Concepts by Mark Mobius Odean, Terrance, 1998a, Volume, volatility, price, and profit when all traders are above average, Journal of Finance 53, 1887-1934 Ramamurthy, B. M. and Reddy, S. (2005), Recent Trends in Mutual Fund Industry, SCMS Journal of Indian Management. Ramamurthy, B. M. and Reddy, S. (2005), Recent Trends in Mutual Fund Industry, SCMS Journal of Indian Management. Sankaran, S. (2004), Mutual Funds: can you afford to ignore them? Portfolio organizer special issue, Vol. June, No.2, 23-37. Sathya swaroop debasish; Investigating performance of equity based mutual fund schemes in Indian scenario pp.2,3 Sharpe, W. F. (1966). "Mutual Fund Performance". Journal of Business, Pg-39

 Shefrin, Hersh, and Meir Statman, 1985, The disposition to sell winners too early and ride losers too long: Theory and evidence, Journal of Finance 40, 777-790. Sikidar, Sujit and Singh, Amrit Pal (1996), Financial Services: Investment in Equity and Mutual Funds A Behavioural Study, in Bhatia B.S., and Batra G.S.(ed.) Management of Financial Services, Deep and Deep Publications, New Delhi, 136-145. Singh, B. K. and Jha, A.K. (2009), An empirical study on awareness & acceptability of mutual fund, 49-55, Regional Students Conference, ICWAI. Singh, B. K. and Jha, A.K. (2009), An empirical study on awareness & acceptability of mutual fund, 49-55, Regional Students Conference, ICWAI. Sondhi, H. J. and Jain, P. K. (2005), Financial Management of Private and Public Equity Mutual Funds in India: An Analysis of Profitability, The ICFAI Journal of Applied Finance, Vol. II, No. 6, 14-27. Syama Sundar, P.V., 1998, "Growth Prospects of Mutual Funds and Investor perception with special reference to Kothari Pioneer Mutual Fund" , Project Report, Sri Srinivas Vidya Parishad, Andhra University, Visakhapatnam Teo, M., Woo, S., 2004, Style effects in the crosssection of stock returns, Journal of Financial Economics 74, 367-398. | V.K.Bhalla; Security analysis and portfolio management pp 141;149 Venkatesh, B. (2004), Investor Fatigue and Mutual Funds, Business Line. Retrieved from : http://www.google.com. www.amfiindia.com

QUESTIONNAIRE 1) Name: 2) Gender: 3) Qualification: 4) a) b) c) d) From the following age group, could you tell me which applies to you? 16 25 yrs 26-35 yrs 36-50 yrs 50 yrs & above

5) From the following income brackets, could you tell me which applies to you, with respect to your annual household income? a) Below 50,000 b) 50,000 - 100,000 c) 100,000 - 1,50,000 d) 1,50,000 2,00,000 6) a) b) c) d) e) 7) a) b) c) d) What kind of investment you prefer most? Saving fixed deposit Insurance Mutual funds Others While investing your money which factor you prefer most? Liquidity Low risk High return Company reputation

8) How many months of living expenses could be safely covered by your current liquid investments? a) More than 12 months b) Between 4 and 12 months c) Less than 4 months 9) Have you ever invested in mutual fund a) Yes b) No 10) How do you come to know about mutual fund? a) Advertisement b) Peer group c) Banks

d) Financial advisor 11) If yes, which mutual fund scheme have you used? a) Open ended b) Close ended c) Liquid fund d) monthly income schemes 12) Which mutual fund plan do you consider the best? a) balanced plans b) equity plans c) income plans 13) How long would you like to hold your Mutual Funds' Investments? a) 1 to 3 years b) 4 to 6 years c) 7 to 10 years d) more than 10 years 14) How do you rate the risks associated with Mutual Funds? a) Low b) moderate c) high 15) Which among the following principles do you consider while selecting a Mutual Fund? a) Enquiring about the Fund Manager b) finding about its past performance c) Identifying your own objectives d) Other 16) Which among the following is the safest Investment option? a) Mutual funds b) stock market c) bank deposits d) other 17) If yes, then in which mutual fund scheme you have invested? a) SBI Magnum income fund b) UTI MIS Advantage Plan c) HDFC MIP long term d) RELIANCE Monthly Income Plan e) ICICI PRUDENTIAL MIP f) CANARA Robeco MIP g) Any other 18) How would you like to receive the returns every year?

a) Dividend payout b) Dividend re-investment c) with Interest

TABLES
From the following age group, could you tell me which applies to you? 16 - 25 yrs 3 21 26-35 yrs 36-50 yrs 19 50 & above yrs 7

From the following income brackets, could you tell me which applies to you, with respect to your annual household income? Below 50,000 5 50,000 - 100,000 11 100,000 - 1,50,000 16 1,50,000 2,00,000 18

What kind of investment you prefer most? Savings Fixed deposits Insurance Mutual funds Others

17 13 7 2 11

While investing your money which factor you prefer most? Liquidity 17 Low Risk 11 High Return 21 Company Reputation 01

How many months of living expenses could be safely covered by your current liquid investments?

More than 12 months Between 4 & 12 months Less than 4 months

26 21 03

Have you ever invested in mutual fund? Yes No

7 43

How do you come to know about mutual fund? Advertisements 26 Peer Group 17 Banks 7 Financial Advisors 0

If yes, which mutual fund scheme have you used? Open ended Close ended Liquid fund Monthly Income Schemes

24 03 13 10

Which mutual fund plan do you consider the best? Balanced Plans Equity Plans Income Plans

19 8 23

How long would you like to hold your Mutual Funds' Investments? 1-3 yrs 27 4-6 yrs 19 7-10 yrs 3 More than 10 yrs 1

How do you rate the risks associated with Mutual Funds? Low 25 Moderate 16 High 9

Which among the following principles do you consider while selecting a Mutual Fund? Enquiring about the Fund Manager 1

Finding about Its past performance Identifying your own objectives Others

2 3 45

Which among the following is the safest Investment option? Mutual funds Stock market Bank deposits Other 1 5 37 7

If yes, then in which mutual fund scheme you have invested? SBI Magnum income fund 24 UTI MIS Advantage Plan 2 HDFC MIP long term 3 Reliance MIP 3 ICICI Prudential MIP 3 Any other 15

How would you like to receive the returns every year? Dividend Payout Dividend re-investment With Interest

5 4 41