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INTRODUCTION
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 more people get aware regarding mutual fund, they 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 . As investors are getting more educated, aware and prudent they look for innovative investment instruments so that they are able to reduce investment risk, minimize transaction costs, and maximize returns along with certain level of convenience as a result there has been as advent of numerous innovative financial instrument such as bonds, company deposits, insurance, and mutual finds. All of which could be matched with individuals investment needs. Mutual funds score over all other investment options in terms of safety, liquidity, returns, and are as transparent, convenient as it can get. Goal of a mutual fund is to provide an efficient way to make money: a) The securities purchased are managed by professional managers. b) Risk is spread out or diversified, because you have a collection of different stocks and bonds. c) Costs usually are lower than what you would pay on your own, since the funds buy in large quantities 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 it proves as a boon or bane?
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company, to differentiate it from a closed-end investment company. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to all investors.
In Simple Words, Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost the. right arguments in the sales process that customers will accept as important .
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To study the factors considered by the investors and those which ultimately influence him while investing.
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Indian Mutual Fund (MF) industry provides reasonable options for an ordinary man to invest in the share market. 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 MF industry with many private players bringing global expertise to the Indian MF industry. Investment in mutual funds is effected by the perception of the investors. Financial markets are constantly becoming more efficient by providing more promising solutions to the investors. Being a part of financial markets although mutual funds industry is responding very fast by understanding the dynamics of investors perception towards rewards, still they are continuously following this race in their endeavor to differentiate their products responding to sudden changes in the economy. Therefore a need is there to study investors perception regarding the mutual funds. The study at first tests whether there is any relation between demographic profile of the investor and selection of mutual fund alternative from among public sector and private sector. Money market instruments: These include short-term debt instruments such as treasury bills, certificate of deposits and inter-bank call money. A mutual funds business is to invest the funds thus collected, according to the wishes of the investors who created the pool. In many markets these wishes are articulated as investment mandates.
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Analysis of The perception towards these mutual funds is done here in this project. Even what factors the investors look before investing can also be observed. Economic success and sound financial system is intertwined in both literature and practice. The rapid growth of economy and globalization of financial Emarkets is perhaps one of the most significant developments at the international level in the financial market operations. Today, Indias financial system is considered to be sound and stable as compared to many other Asian countries. With the reforms of the industrial policy, reforms of public sector and financial sector, new economic policies of liberalization, deregulation, and restructuring the Indian capital market has been growing tremendously and has become an important portal for the small investors. As a result, the Indian economy has opened up and many developments have been taking place in the financial markets which foster savings and channels them to their most efficient use. One such financial intermediary who has played a significant role in the development and growth of capital markets is mutual fund. A mutual fund is a body corporate that pools money from the individuals/corporate investors and invests the same in a variety of different financial instruments or securities such as equity shares, government securities, bonds, debentures, etc. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Mutual fund units are issued and redeemed by the Asset Management Company based on the funds net asset value, which is determined at the end of each trading session. 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 bank deposits, which do not provide hedge against inflation and often have negative real returns. He has limited access to price sensitive information and if available, may not be able to comprehend publicly available information couched in technical and legal jargons. Mutual funds are looked upon by individual investors as
financial intermediaries/portfolio managers who process information, identify investment opportunities, formulate investment strategies,
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invest funds and monitor progress at a very low cost. Thus the success of mutual funds 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
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20. ICICI Securities Fund, 21. IL & FS Mutual fund, 22. ING Mutual fund, 23. ICICI Prudential Mutual fund 24. IDFC Mutual fund, 25. JM Financial Mutual fund 26. JP Morgan Mutual fund 27. Kotak Mahindra Mutual fund, 29. LIC Mutual fund 31. Morgan Stanley Mutual fund 32. Mirae Asset Mutual fund 33. Principal Mutual fund 34. Quantum Mutual fund, 35. Reliance Mutual fund 36. Religare AEGON Mutual fund 37. Sahara Mutual fund, 38. SBI Mutual fund 39. Shriram Mutual fund 40. Sundaram BNP Paribas Mutual fund, 41. Taurus Mutual fund 42. Tata Mutual fund, 43. UTI Mutual fund
If the complaints remain unresolved, the investors may approach SEBI for facilitating redressal of their complaints. On receipt of complaints, SEBI takes up the matter with the concerned Mutual fund and follows up with it regularly. Investors may send their complaints to SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) OFFICE OF INVESTOR ASSISTANCE AND EDUCATION (OIAE) EXCHANGE PLAZA, G BLOCK, 4TH FLOOR, BANDRA-KURLA COMPLEX, BANDRA (E), MUMBAI 400 051. PHONE: 26598510-13
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October, 1993 with two sponsorers, Prudential Plc. and ICICI Ltd. The Trustee Company formed is Prudential ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management Company Limited incorporated on 22nd of June, 1993.
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Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It contributed Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in accordance with the provisions of the Indian Trust Act, 1882. . The Company started its business on 29th April 1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset Management Company Ltd as the Investment Managers for LIC 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 welldiversified portfolio because it calls for large investment. Convenient Administration. Investors 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.
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Costs Effectiveness A small investor will find that the mutual fund route is a cost-effective method 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. Liquidity. You can liquidate your investments within 3 to 5 working days Transparency. Mutual funds offer daily NAVs of schemes, which help you to monitor your investments on a regular basis. They 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. 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. Portfolio Diversification Flexibility & Convenience Safety of regulated environment Choice of schemes
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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.
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 cr
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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 2011, there were 33 mutual funds with total assets of Rs. 1,21,805 crores.
Fourth Phase since February 2011 In February 2011, 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 2011, representing broadly, the assets of US 64 scheme, assured return and certain other schemes
This mutual fund association of India maintains high professional and ethical standards in all areas of operation of the industry.
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It also recommends and promotes the top class business practices and code of conduct which is followed by members and related people engaged in the activities of mutual fund and asset management. The agencies who are by any means connected or involved in the field of capital markets and financial services also involved in this code of conduct of the association. AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund industry. Association of Mutual Fund of India does represent the Government of India, the Reserve Bank of India and other related bodies on matters relating to the Mutual Fund Industry. It develops a team of well qualified and trained Agent distributors. It implements a programme of training and certification for all intermediaries and other engaged in the mutual fund industry. AMFI undertakes all India awareness programme for investors in order to promote proper understanding of the concept and working of mutual funds. At last but not the least association of mutual fund of India also disseminate informations on Mutual Fund Industry and undertakes studies and research either directly or in association with other bodies.
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72% of the crore-customer base of mutual fund in the top 50-broking firms in theus is expected to trade on line by 2003
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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: 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.
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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.
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 mis-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.
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viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.
INVESTMENT OBJECTIVE
These schemes combine the features of open-ended and closed-ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during predetermined intervals at NAV based prices. GROWTH SCHEMES These schemes, also commonly called Equity Schemes, seek to invest a majority of their funds in equities and a small portion in money market instruments. Such schemes have the potential to deliver superior returns over the long term. However, because they invest in equities, these schemes are exposed to fluctuations in value especially in the short term. INCOME SCHEMES These schemes, also commonly called Debt Schemes, invest in debt securities such as corporate bonds, debentures and government securities. The prices of these schemes tend to be more stable compared with equity schemes and most of the returns to the investors are generated through dividends or steady capital appreciation. These schemes are ideal for conservative investors or those not in a position to take higher equity risks, such as retired individuals. However, as compared to the money market schemes they do have a higher price fluctuation risk and compared to a Gilt fund they have a higher credit risk. BALANCED SCHEMES These schemes are commonly known as Hybrid schemes. These schemes invest in both equities as well as debt. By investing in a mix of this nature, balanced schemes seek to attain the objective of income and moderate capital appreciation and are ideal for investors with a conservative, long-term orientation. TAX SAVING SCHEMES Investors are being encouraged to invest in equity markets through Equity Linked Savings Scheme (ELSS) by offering them a tax rebate. Units purchased cannot be assigned / transferred/ pledged / redeemed / switched out until completion of 3 years from the date of allotment of the respective Units. The Scheme is subject to Securities & Exchange Board of India (Mutual Funds) Regulations, 1996 and the notifications issued by the Ministry of Finance (Department of Economic Affairs), Government of India regarding ELSS. Subject to such conditions and limitations, as prescribed under Section 88 of the Incometax Act, 1961. INDEX SCHEMES
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The primary purpose of an Index is to serve as a measure of the performance of the market as a whole, or a specific sector of the market. An Index also serves as a relevant benchmark to evaluate the performance of mutual funds. Some investors are interested in investing in the market in general rather than investing in any specific fund. Such investors are happy to receive the returns posted by the markets. As it is not practical to invest in each and every stock in the market in proportion to its size, these investors are comfortable investing in a fund that they believe is a good representative of the entire market. Index Funds are launched and managed for such investors. SECTOR SPECIFIC SCHEMES. Sector Specific Schemes generally invests money in some specified sectors for example: Real Estate Specialized real estate funds would invest in real estates directly, or may fund real estate developers or lend to them directly or buy shares of housing finance companies or may even buy their securitized assets
BY NATURE
Under this the mutual fund is categorized on the basis of Investment Objective. By nature the mutual fund is categorized as follow:
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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 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
Main Objective
The objective of the research is to study and analyze the awareness level of investors of mutual funds.
Sub Objectives
To measure the satisfaction level of investors regarding mutual funds. 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.
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To get insight knowledge about mutual funds Understanding the different ratios & portfolios so as to tell the distributors about these terms, by this, managing the relationship with the distributors To know the mutual funds performance levels in the present market To analyze the comparative study between other leading mutual funds in the present market. To know the awareness of mutual funds among different groups of investors.
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Data sources:
Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites.
Sampling:
Sampling procedure:
The sample was selected from respondents irrespective of them being investors or not or availing the services or not. It was also collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool. Sample size:
Data has been presented with the help of bar graph, pie charts, line graphs etc.
Research Design :
My research project has a specified framework for collecting the data in an effective manner. Such framework is called RESEARCH DESIGN. The research process which was followed by me consisted following steps. A. PROBLEM: The problem at hand was to study and measure that mutual fund are proved as boon or bane in the city
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B. DEVELOPING THE RESEARCH PLAN : The development of Research Plan has the following Steps: 1. DATA SOURCES: Two types of data were taken into consideration i.e. Secondary data & primary data. My major emphasis was on gathering the primary data. The secondary data has been used to make things more clear. (i) Primary Data: Direct collection of data from the source of information, technology including personal interviewing, survey etc. (ii) Secondary Data: Indirect collection of data from sources containing past or recent past information like Banks Brochures, Annual publications, Books, Fact sheets of mutual funds, Newspaper & Magazines etc. 2. RESEARCH INSTRUMENT A close friend questionnaire was constructed for my survey. Questionnaire consisting of a set of questions made to be filled by various respondents. 3. SAMPLING PLAN The sampling plan calls for three decisions. a) Sampling Unit: I have completed my survey in Sitapur. b) Sample Size: The sample consisted of 60 respondents. c) Contact Methods I have contacted the respondents through personal interviews. C. COLLECTING THE INFORMATION After this, I have collected the information from the respondents with the help of questionnaire D. ANALYZE THE INFORMATION The next step is to extract the pertinent findings from the collected data. I have tabulated the collected data & developed frequency distributions. Thus the whole data was grouped aspect wise and was presented in tabular form. Thus, frequencies & percentages were prepared to render impact of the study. E. PRESENTATIONS OF FINDINGS This was the last step of the survey.
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BETA
R-SQUARE
ALPHA
SHARPE RATIO
Beta > 1 = high risky Beta = 1 = Avg Beta <1 = Low Risky R-squared values range between 0 and 1, where 0 represents no correlation and 1 represents full correlation. Alpha is positive = returns of stock are better then market returns. Alpha is negative = returns of stock are worst then market. Alpha is zero = returns are same as market. Sharpe Ratio= Fund return in excess of risk free The higher the Sharpe ratio, return/ Standard deviation of Fund. Sharpe ratios the better a funds returns are ideal for comparing funds that have a mixed relative to the amount of risk asset classes. taken.
TDS
Other Schemes
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10%
NIL
10%
NIL
AOP/B OI
10%
NIL
NIL
NIL
AS PER 10% SLAB (20% with indexatio n) 30% 10% (20% with indexatio n) AS PER 10% SLAB (20% with indexatio n) 30% 10% (20% with indexatio n) AS PER 10% SLAB (20% with indexatio n)
NIL
TAX FREE
NIL
NIL
TAX FREE
NIL
NIL
TAX FREE
NIL
NIL
TAX FREE
NIL
STCG30%LTC G-20%
TAX FREE
NIL
28.32% (25%+10 %surchar ge+educati on cess) 28.32% (25%+10 %surchar ge+educati on cess) 28.32% (25%+10 %surchar ge+educati on cess) 28.32% (25%+10 %surchar ge+educati on cess) 28.32% (25%+10 %surchar ge+educati on cess)
14.16% (12.5%+10 %surcharge +3%educati on cess) 22.66% (20%+10% surcharge+3 % education cess) 22.66% (20%+10% surcharge+3 % education cess) 22.66% (20%+10% surcharge+3 % education cess) 14.16% (12.5%+10 %surcharge +3%educati on cess)
The money market mutual fund segment has a total corpus of 1.48 trillion in theU.S. Out of the top 10 mutual fund worldwide, eight are worldwide sponsored. Only fidelity and capital are non-bank mutual funds in this group. In the U.S. the total numbers of schemes is higher than that of the listed companies Internationally, mutual funds are allowed to go short. In India fund managers do nothave such leeway. In the U.S. about 9.7 million households will manage their assets online by the year2003, such a facility is not yet of avail in India and jeevan bima sahayog amc floated bythe LIC are some of the other prominent ones. The aggregate corpus of the fundsmanaged by this category of amcs is around 8300 cr.
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1 Name of the fund. 2. Iestment objective 3. Aset allocation pattern of the scheme. 4. Risk profile of the scheme 5. Plans & options 6. Minimum application amount/ no. of units 7. Benchmark index 8. Dividend policy 9. Name of the fund manager(s) 10 . Expenses of the scheme: load structure, recurring expenses 11. Performance of the scheme (scheme return v/s. benchmark return) 12. Year- wise return for the last 5 financial year.
Distribution channels:
Mutual funds posses a very strong distribution channel so that the ultimate customers doesnt face any difficulty in the final procurement. The various parties involved in distribution of mutual funds are: 1. Direct marketing by the AMCs: the forms could be obtained from the AMCs directly. The investors can approach to the AMCs for the forms. some of the top AMCs of India are; Reliance ,Birla Sunlife, Tata, SBI magnum, Kotak Mahindra, HDFC, Sundaram, ICICI, Mirae Assets, Canara Robeco, Lotus India, LIC, UTI etc. whereas foreign AMCs include: Standard Chartered, Franklin Templeton, Fidelity, JP Morgan, HSBC, DSP Merill Lynch, etc. 2 .Broker/ sub broker arrangements: the AMCs can simultaneously go for broker/sub-broker to popularize their funds. AMCs can enjoy the advantage of large network of these brokers and sub brokers.eg: SBI being the top financial intermediary of India has the greatest network. So the AMCs dealing through SBI has access to most of the investors. 3. Individual agents, Banks, NBFC: investors can procure the funds through individual agents, independent brokers, banks and several non- banking financial corporations too, whichever he finds convenient for him.
Costs associated:
Expenses: AMCs charge an annual fee, or expense ratio that covers administrative expenses, salaries, advertising expenses, brokerage fee, etc. A 1.5% expense ratio means the AMC charges Rs1.50 for every Rs100 in assets under management. A fund's expense ratio is typically to the size of the
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funds under management and not to the returns earned. Normally, the costs of running a fund grow slower than the growth in the fund size - so, the more assets in the fund, the lower should be its expense ratio Loads: Entry Load/Front-End Load (0-2.25%)- its the commission charged at the time of buying the fund to cover the cost of selling, processing etc. Exit Load/Back- End Load (0.25-2.25%)- it is the commission or charged paid when an investor exits from a mutual fund, it is imposed to discourage withdrawals. It may reduce to zero with increase in holding period.
Every investor investing in the mutual funds is driven by the motto of either wealth creation or wealth increment or both. Therefore its very necessary to continuously evaluate the funds performance with the help of factsheets and newsletters, websites, newspapers and professional advisors like SBI mutual fund services. If the investors ignore the evaluation of funds performance then he can loose hold of it any time. In this ever-changing industry, he can face any of the following problems: 1. Variation in the funds performance due to change in its management/ objective. 2. The funds performance can slip in comparison to similar funds. 3. There may be an increase in the various costs associated with the fund. 4 .Beta, a technical measure of the risk associated may also surge. 5. The funds ratings may go down in the various lists published by independent rating agencies. 6 .It can merge into another fund or could be acquired by another fund house.
Performance measures:
Equity funds: the performance of equity funds can be measured on the basis of: NAV Growth, Total Return; Total Return with Reinvestment at NAV, Annualized Returns and Distributions, Computing Total Return (Per Share Income and Expenses, Per Share Capital Changes, Ratios, Shares Outstanding), the Expense Ratio, Portfolio Turnover Rate, Fund Size, Transaction Costs, Cash Flow, Leverage.
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Debt fund: likewise the performance of debt funds can be measured on the basis of: Peer Group Comparisons, The Income Ratio, Industry Exposures and Concentrations, NPAs, besides NAV Growth, Total Return and Expense Ratio. Liquid funds: the performance of the highly volatile liquid funds can be measured on the basis of: Fund Yield, besides NAV Growth, Total Return and Expense Ratio. Concept of benchmarking for performance evaluation: Every fund sets its benchmark according to its investment objective. The funds performance is measured in comparison with the benchmark. If the fund generates a greater return than the benchmark then it is said that the fund has outperformed benchmark , if it is equal to benchmark then the correlation between them is exactly 1. And if in case the return is lower than the benchmark then the fund is said to be underperformed.
To measure the funds performance, the comparisons are usually done with: I)with a market index. ii) Funds from the same peer group. iii) Other similar products in which investors invest their funds.
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1. Rupee cost averaging: The investors going for Systematic Investment Plans(SIP) and Systematic Transfer Plans(STP) may enjoy the benefits of RCA (Rupee Cost Averaging). Rupee cost averaging allows an investor to bring down the average cost of buying a scheme by making a fixed investment periodically, like Rs 5,000 a month and nowadays even as low as Rs. 500 or Rs. 100. In this case, the investor is always at a profit, even if the market falls. In case if the NAV of fund falls, the investors can get more number of units and vice-versa. This results in the average cost per unit for the investor being lower than the average price per unit over time. The investor needs to decide on the investment amount and the frequency. More frequent the investment interval, greater the chances of benefiting from lower prices. Investors can also benefit by increasing the SIP amount during market downturns, which will result in reducing the average cost and enhancing returns. Whereas STP allows investors who have lump sums to park the funds in a low-risk fund like liquid funds and make periodic transfers to another fund to take advantage of rupee cost averaging. 2. Rebalancing: Rebalancing involves booking profit in the fund class that has gone up and investing in the asset class that is down. Trigger and switching are tools that can be used to rebalance a portfolio. Trigger facilities allow automatic redemption or switch if a specified event occurs. The trigger could be the value of the investment, the net asset value of the scheme, level of capital appreciation, level of the market indices or even a date. The funds redeemed can be switched to other specified schemes within the same fund house. Some fund houses allow such switches without charging an entry load. To use the trigger and switch facility, the investor needs to specify the event, the amount or the number of units to be redeemed and the scheme into which the switch has to be made. This ensures that the investor books some profits and maintains the asset allocation in the portfolio.
3. Diversification: Diversification involves investing the amount into different options. In case of mutual funds, the investor may enjoy it afterwards also through dividend transfer option. Under this, the dividend is reinvested not into the same scheme but into another scheme of the investor's choice. For example, the dividends from debt funds may be transferred to equity schemes. This gives the investor a small exposure to a new asset class without risk to the principal amount. Such transfers may be done with or without entry loads, depending on the MF's policy.
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4. Tax efficiency: Tax factor acts as the x-factor for mutual funds. Tax efficiency affects the final decision of any investor before investing. The investors gain through either dividends or capital appreciation but if they havent considered the tax factor then they may end loosing. Debt funds have to pay a dividend distribution tax of 12.50 per cent (plus surcharge and education cess) on dividends paid out. Investors who need a regular stream of income have to choose between the dividend option and a systematic withdrawal plan that allows them to redeem units periodically. SWP implies capital gains for the investor. If it is short-term, then the SWP is suitable only for investors in the 10-per-cent-tax bracket. Investors in higher tax brackets will end up paying a higher rate as short-term capital gains and should choose the dividend option. If the capital gain is long-term (where the investment has been held for more than one year), the growth option is more tax efficient for all investors. This is because investors can redeem units using the SWP where they will have to pay 10 per cent as long-term capital gains tax against the 12.50 per cent DDT paid by the MF on dividends. All the tools discussed over here are used by all the advisors and have helped investors in reducing risk, simplicity and affordability. Even then an investor needs to examine costs, tax implications and minimum applicable investment amounts before committing to a service.
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The entire mutual fund industry operates in a very organized way. The investors, known as unit holders,handover their savings to the AMCs under various schemes. The objective of the investment should match with the objective of the fund to best suit the investors needs. The AMCs further invest the funds into various securities according to the investment objective. The return generated from the investments is passed on to the investors or reinvested as mentioned in the offer document. What are the most lucrative sectors for mutual fund managers? This is a question of utmost interest for all the investors even for those who dont invest in mutual funds. Because the investments done by the MFs acts as trendsetters. The investments made by the fund managers are used for prediction. Huge investments assure liquidity and reflects appositive picture whereas tight investment policy reflects crunch and investors may look forward for a gloomy picture. Their investments show that which sector is hot? And will set the market trends. The expert management of the funds will always look for profitable and high paying sectors. So we can have a look at most lucrative sectors to know about the recent trends:
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sector name automotive banking & financial services cement & construction consumer durables conglomerates chemicals consumer non durables engineering & capital goods food & beverages information technology media & entertainment Manufacturing metals& mining Miscellaneous oil & gas Pharmaceuticals Services Telecom Tobacco Utility
No. of MFs betting on it 255 196 237 51 218 259 146 317 175 284 218 259 275 250 290 250 200 264 150 225
From the above data collected we can say that engineering & capital goods sector has emerged as the hottest as most of the funds are betting on it. We can say that this sector is on boom and presents a bright picture. Other than it other sectors on height are oil & gas, telecom, metals & mining and information technology. Sectors performing average are automotive, cement & construction, chemicals, media & entertainment, manufacturing, miscellaneous, pharmaceuticals and utility. The sectors which are not so favourite are banking & financial services, conglomerates, consumer non- durables, food & beverages, services and tobacco. And the sector which failed to attract the fund managers is consumer durables with just 51 funds betting on it. Thus this analysis not only gives a picture of the mindset of fund managers rather it also reflects the liquidity existing in each of the sectors. It is not only useful for investors of mutual funds rather the investors of equity and debt too could take a hint from it. Asset allocation by fund managers are based on several researches carried on so, it is always advisable for other investors too take a look on it. It can be further presented in the form of a graph as follow:
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350 300 250 Axis Title 200 150 100 50 0 conglomerates chemicals services metals& mining automotive
information technology
consumer durables
pharmaceuticals
manufacturing
miscellaneous
telecom
tobacco
utility
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It is important to know that determination and maintaining the right level of risk tolerance can go a long way in ensuring the success of an investment plan. Besides, it helps in customizing fund category allocations and suitable fund selections. There are certain broad guidelines to determine the risk tolerance. These are: Be realistic with regard to volatility. One needs to seriously consider the effect of potential downside loss as well as potential upside gain. Determine a "comfort level" i.e. If one is not confident with a particular level of risk tolerance, and then select a different level. Regardless of the level of risk tolerance, one should adhere to the principles of effective diversification i.e. The allocation of investment assets among different fund categories to achieve a variety of distinct risk/reward objectives and a reduction in overall portfolio risk. It helps to reassess risk tolerance every year. The risk tolerance may change due to either major adjustment in return objectives or to a realization that an existing risk tolerance is inappropriate for one's current situation. Market cap of a company signifies its market value, which is equal to the total number of shares outstanding multiplied by the current stock price. The market cap has a role to play in the kind of returns the stock might deliver and the risk or volatility that one may have to encounter while achieving those returns.For example, large companies are usually more stable during the turbulent periods and the mid cap and small cap companies are more vulnerable. As regards the allocation to each segment, there cannot be a standard combination applicable to all kinds of investors. Each one of us has different risk profile, time horizon and investment objectives. Besides, while deciding on the allocation, one has to keep in mind the fact whether the allocation is being done for an existing investor or for a new investor. While for an existing investor, the allocation that already exists has to be considered, for a new investor the right way to begin is by considering funds that invest predominantly in large cap stocks. The exposure to mid and small caps can be enhanced over a period of time. It is always advisable to take help of professionals to decide the allocation as well as select the appropriate funds. However, investors themselves have an important role to play in this process. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund
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EVERYONE
Many investors feel that a simple way to invest in Mutual funds is to just keep investing in award winning funds. First of all, it is important to understand that more than the awards; it is the methodology to choose winners that is more relevant. A rating firm generally elaborates on the criteria for deciding the winners i.e. consistent performance, risk adjusted returns, total returns and protection of capital. Each of these factors is very important and has its significance for different categories of funds. Besides, each of these factors has varying degree of significance for different kinds of investors. For example, consistent return really focuses on risk. If someone is afraid of negative returns, consistency will be a more important measure than total return i.e. Growth in NAV as well as dividend received. A fund can have very impressive total returns overtime, but can be very volatile and tough for a risk adverse investor. Therefore, all the award winning funds in different categories may not be suitable for everyone. Typically, when one has to select funds, the first step should be to consider personal goals and objectives. Investors need to decide which element they value the most and then prioritize the other criteria. Once one knows what one is looking for, one should go about selecting the funds according to the asset allocation. Most investors need just a few funds, carefully picked, watched and managed over period of time.
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4. Understand and analyze 'Good Performance' 'Good performance' is a subjective thing. Ideally, to analyze performance, one should consider returns as well as the risk taken to achieve those returns. Besides, consistency in terms of performance as well as portfolio selection is another factor that should play an important part while analyzing the performance. Therefore, if an investment in a Mutual fund scheme takes you past your risk tolerance while providing you decent returns; it cannot always be termed as good performance. In fact, at times to ensure that your investment remains within the parameters defined in the investment plan, you may to be forced to exit from that scheme. In other words, you need to assess as to how much risk did the fund manger subject you to, and did he give you an adequate reward for taking that risk. Besides, you also need to consider whether own risk profile allows you to accept the revised level of risk 5. Sell your fund, if you need to There is no standard formula to determine the right time to sell an investment in Mutual fund or for that matter any investment. However, you can definitely benefit by following certain guidelines while deciding to sell an investment in a Mutual fund scheme. Here are some of them: You may consider selling a fund when your investment plan calls for a sale rather than doing so for emotional reasons. You need to hold a fund long enough to evaluate its performance over a complete market cycle, i.e. around three years or so. Many of us make the mistake of either holding on to funds for too long or exit in a hurry. It is important to do a thorough analysis before taking a decision to sell. In other words, if you take a wrong decision, there is always a risk of missing out on good rallies in the market or getting out too early thus missing out on potential gains. You should consider coming out of a fund if its performance has consistently lagged its peers for a period of one year or so. It doesn't make sense to hold a fund when it no longer meets your needs. If you have made a proper selection, you would generally be required to make changes only if the fund changes its objective or investment style, or if your needs change. 6. Diversified vs. Concentrated Portfolio The choice between funds that have a diversified and a concentrated portfolio largely depends upon your risk profile. As discussed earlier, a well - diversified portfolio helps in spreading the investments across different sectors and segments of the market. The idea is that if one or more stocks do badly, the portfolio won't be affected as much. At the same time, if one stock does very well, the portfolio won't reap all the benefits. A diversified fund, therefore, is an ideal choice for someone who is looking for steady returns over the longer term. A concentrated portfolio works exactly in the opposite manner. While a fund with a concentrated portfolio has a better chance of providing higher returns, it also increases your chances of underperforming or losing a large
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portion of your portfolio in a market downturn. Thus, a concentrated portfolio is ideally suited for those investors who have the capacity to shoulder higher risk in order to improve the chances of getting better returns. 7. Review your portfolio periodically It is always a good idea to review your portfolio periodically. For example, you may begin reviewing your portfolio on a half-yearly basis. Besides, you may be required to review your portfolio in greater detail when your investments goals or financial circumstances change.
Well known economist and Nobel Prize recipient William Sharpe tried to segregate the total risk faced in any kind of investment into two parts - systematic (Systemic) risk and unsystematic (Unsystemic) risk. Systematic risk is that risk which exists in the system. Some of the biggest examples of systematic risk are inflation, recession, war, political situation etc.
Inflation erodes returns generated from all investments e.g. If return from fixed deposit is 8 per cent and if inflation is 6 per cent then real rate of return from fixed deposit is reduced by 6 per cent. Similarly if returns generated from equity market is 18 per cent and inflation is still 6 per cent then equity returns will be lesser by the rate of inflation. Since inflation exists in the system there is no way one can stay away from the risk of inflation.
Economic cycles, war and political situations have effects on all forms of investments. Also these exist in the system and there is no way to stay away from them. It is like learning to walk. Anyone who wants to learn to walk has to first fall; you cannot learn to walk without falling. Similarly anyone who wants to invest has to first face systematic risk; there can never make any kind of investment without systematic risk.
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Another form of risk is unsystematic risk. This risk does not exist in the system and hence is not applicable to all forms of investment. Unsystematic risk is associated with particular form of investment.
Suppose we invest in stock market and the market falls, then only our investment in equity gets affected OR if we have placed a fixed deposit in particular bank and bank goes bankrupt, than we only lose money placed in that bank.
While there is no way to keep away from risk, we can always reduce the impact of risk. Diversification helps in reducing the impact of unsystematic risk. If our investment is distributed across various asset classes the impact of unsystematic risk is reduced.
If we have placed fixed deposit in several banks, then even if one of the banks goes bankrupt our entire fixed deposit investment is not lost.
Similarly if our equity investment is in Tata Motors, HLL, Infosys, adverse news about Infosys will only impact investment in Infosys, all other stocks will not have any impact.
To reduce the impact of systematic risk, we should invest regularly. By investing regularly we average out the impact of risk.
Mutual fund, as an investment vehicle gives us benefit of both diversification and averaging.
Portfolio of mutual funds consists of multiple securities and hence adverse news about single security will have nominal impact on overall portfolio.
Mutual fund as an investment vehicle helps reduce, both, systematic as well as unsystematic risk.
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For the customized needs o the project, primary data was collected through a survey in the twin cities of Hyderabad & Secunderabad. A Random sample of 100 investors were surveyed. They were all asked to answer a questionnaire true to their knowledge. The feedback obtained from the customer was instrumental, gauging the perception of the investors towards mutual funds. It also throws light on the factors, which influence them to make decisions while investing. Further the interaction with few of the investors goes a long way in understanding the inlaid reasons for their decisions.
SECONDARY DATA:
The main sources of secondary data are the web sites of various mutual fund houses like cholamandalam mutual fund, Franklintempletonindia, ICICI, BIRLA SUNLIFE, KOTAK and more such houses. Many references were collected from different libraries to gain an insight on mutual funds. Previous studies conducted in this field provided valuable help. In addition to the above sources, Working with Karvy associates and interaction with their personnel provided a pragmatic edge to my theoretical concepts.
Survey Details
100
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Every investor considers several factors while investing in any of the products as it deals with the most important need of life money.
The five main factors that were considered are: 1. Safety & security 2. Tax exemption 3. Liquidity 4. Profitability 5. Return pattern
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The above graph shows that 31% people consider safety & security as the main factor while investing, 26% goes for Tax exemption, 17% considered return pattern in the investment, 14% went with profitability and 12% showed interest in liquidity.
ANALYSIS OF THE ABOVE GRAPH:
In a developing country like India most of the people fall in the lower middle class and middle class sectors. The attitude of the investors is of primary concern. As more and more options that warrant high returns are available in the market, investor tends to be more skeptical. So, while investing in any avenue, their first priority is safety and security. Even the age of the investor plays a major role in the decision-making. For example, if the investor is in the age of 50 and above, he usually looks for low or no risks while investing. Therefore, 31% of investors surveyed preferred safety & security. Next is the tax exemption; as there is tremendous boom in the corporate sector and the remuneration system for a particular sector has changed. This created a change in income levels and thereby affected the expenditure patterns. In the past, it took employee years of time to reach a five-figured salary. But, gradually the system has changed. Even the employee in the lower level or the middle level of the corporate ladder is receiving a handsome emolument. So, they are opting for the exemption of tax. Therefore, the next preference is for tax exemption that is 26% of the total. Besides investors going for Safety & security, there are investors who opt for return on investments they made. They are mainly in the age group of 23 and 35. Because these investors are likely to think that, at this age they are mentally more stable and feel that they can cope with financial risks. Any profits made would further bolster their financial stability. And so, 17% went with return pattern of their investment. In the same way, 14% of the investors look for profitability, especially those who are already doing business, i.e. those who are already accustomed to taking risks.Out of the total, 12% of investors preferred liquidity. The main reason for this could be that, that making the
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invested money liquefied as and when required is important, and this is not possible if the investments are made in any insurance, Bank deposits, etc. Though there are numerous factors that can be attributed to an investors psyche, by large, we can conclude that maximum number of investors is investing in those sectors where there is safety & security for their principal. The other factors antecede safety.
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INVESTMENT PATTERN:
Investment pattern
7% 5% 4% 2% 9% 42%
31% Bank deposits bonds none insurance shares mutual fund Equity
From the above graph, it is clear that 42% opted for an investment in bank deposits, 31% for insurance, 7% for shares, 9% for mutual fund, 2% for bonds, 5% for equity and remaining 4% have invested in some other investments such as real estates etc.
The investment pattern of an investor is also very important because this shows the avenues where the people are really interested. Here, 42% have invested in bank deposits as it is very safe and risk free. Out of the sample of 100,it is observed that those who opted for an investment in banks in the form of deposits are found to be in the age group of 40 and above and are in government services.
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The next preference, as observed in the pie chart for investment pattern is Insurance. People generally opt for life insurance because it promotes a sense of safety & security for the dependents on the person and even his belongings. So, the next priority is insurance. 7% of the investors went for an investment in shares as it brings quick returns, although shares are prone to high risks. As shown 9% of the investors opted for an investment in mutual funds. From this we can infer that the market of mutual fund is picking up slowly. According to the survey, the people who have invested in the mutual funds belong to high-income range and they want an exemption from tax and a mere 2% opted for bonds, 5% for investment in equity and 4% have invested in other investments such as Real estate to make quick returns on their investments.
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In the above pie chart, we can observe that nearly 90% of investors are aware of mutual funds and only 13% people are not aware of it. This shows that most of the investors know about mutual funds in one or the other way.
ANALYSIS OF THE ABOVE GRAPH:
Of the sample surveyed, almost all of the people are aware of mutual funds. They are aware of the term mutual fund. Though the questionnaire cannot identify the extent of the awareness. Through the interaction it is found that they are not actually aware of the advantages in investing mutual funds, various types of mutual funds and different schemes offered in it. It is found that People often have an inhibition that investments in mutual funds can be done only by those who have surplus amount of money with them and want to avail tax redemption.
MUTUAL FUND INVESTMENTS:
Mutual funds are medium risk investments. Though Investing in mutual fund doesnt assure a fixed amount of returns, nevertheless, they are not low. The awareness about mutual funds is the primary criterion.
Equity funds
Debt funds
Liquid funds
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From the graph, it is clear that only 16 out of 100 invested in mutual funds. From those 16, 12 have invested in Equity funds, 3 in liquid funds and the remaining 1 in debt funds. ANALYSIS OF THE ABOVE GRAPH: Only 16 out of 100 invested in mutual funds this can be mainly attributed to the low level of awareness, various inhibitions and a not so clear idea about the mutual funds. It is very important to have a clear perception of mutual funds, how they work and how the money is invested in different portfolios according to the investors choice. Investors who opted for equity funds are 12 of 16 percent. Equity funds being the majority preference can be reasoned as they want their investments to be put in various sectors i.e. DIVERSIFIED FUNDS so that they can make profits out of it easily. Even some went for INDEX FUNDS as the investments are made in Bench Nark Index Stock like BSE, NSE. A few (3%of 16%) investors made investments in liquid funds as they want a Short term investments where the investor need not wait for much time for the return. These are also called as Money Markets for short term. Only a single investor went for debt funds where investments are in various debt products like Certificate of Deposits (CDs), Commercial papers and call money as the investor want a secured investment, which he can avail in Debt Funds.
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FINDINGS
Many of the investors are aware of mutual funds but most of their perception towards them is not positive. Investors are mainly concerned with the risk factors of mutual funds and are not directing towards them. The investors who have invested in mutual funds mainly go for it because of the Liquidity matter and Tax exemption. Most of the people dont know the advantages of mutual funds and the various types of mutual funds. There are nearly 1173 schemes of mutual funds offered by various mutual fund houses, which an ordinary person is not aware. A common investor basically looks for the Tax exemption and Safety & security while investing. Investors often feel that those people, who have surplus amount with them and invest to avail Tax exemption, can do investing in mutual funds.
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CONCLUSION
Mutual funds are still and would continue to be the unique financial tool in the country. One has to appreciate the fact that every aspect of life as its periods of high and lows. This has been the case with the stock markets. Why not apply the same logic to mutual funds? Mutual funds have not failed in any country where they worked with regulatory frame work. Their future is bright. The poor performance of many mutual funds schemes may be mostly attributed to the quality of personal involved and their matter of fund management.
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BIBLIOGRAPHY
Books
David F, Swensen. 2005. Unconventional Success. A fundamental Approach to Personal Investment Free Press 416 D.C. Anjaria. Dhaivat Anjaria. 2001 AMFIs Mutual Fund Testing Programme .
MAGAZINES:
1. Business standard 2. Economic times
Websites
WWW.GOOGLE.COM WWW.YAHOO.COM WWW.INDIAINFOLINE.COM WWW.AMFIINDIA.COM WWW.MONEYCONTROL.COM WWW.5PAISA.COM WWW.SHAREMARKETBASICS.COM WWW.SHAREMARKET.COM
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PERSONAL INFORMATION A) Name: B) Type of Business: C) Address: D) Telephone: E) Fax: F) Annual Income: Mobile: Email:
ANNEXURE
1.In which part of these modes have you made your major part of investment? [] Shares [] Equity [] Mutual Fund [] Insurance
[] Bank Deposit
[] Bonds
[] Others Specify--------------------------------2.Why do you prefer the above option? [] Return Pattern [] Liquidity [] Profitability [] Tax Exemption [] Safety & Security [] Guaranteed Return
[] Others Specify----------------------------------3.How long would you like to invest? [] Short term (below 1yr) [] Long term (above 3yrs) [] Medium term (up to 2yrs)
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5.If yes, what are the advertisement have you seen for? [] Birla sunlife mutual funds [] Chola mutual funds [] Reliance mutual fund [] Standard charted mutual funds
[] Franklin Templeton mutual fund [] Sundaram mutual fund [] HDFC mutual fund [] ING VYSA mutual fund [] Prudential ICICI mutual fund 6. Rank the following services preferred by you from a financial Advisory Institution? Services 1. Telephone services 2. Online services 3. Mobile services 4. Personal services 7. Mention the names of mutual funds you have invested? --------------------------------------------------------------------8. In which scheme of mutual funds have you invested? [] Debt [] Liquidity [] Equity [] Mixed (Debt & Equity) Rank [] UTI mutual fund [] Any other specify--------------------
[] Others specify--------------------------9. What was the approximate return you got on your investment? [] Debt [] Liquidity [] Equity [] Mixed
[] Others specify--------------------------10. Which factors you consider the most while, investing in mutual funds? [] Return patterns [] Services [] Quality of portfolio [] Performance [] Risk factors [] Professional management
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[] Wealth creation
11. Which period of dividend income you prefer the most? [] Monthly [] Half yearly [] Quarterly [] Annual
12. How often you need reminders (recall) about mutual fund? [] Monthly [] Half yearly [] Quarterly [] Annual
13. If you need so, which mode you would prefer? [] Account statements [] Television & Internet [] Remainder letters [] News papers & Magazines
14. Please rank your expectations from a mutual funds Advisory concern Expectations 1. Right Advice 2. Speed of transaction 3. Research inputs 4. Reputations 5. Reliability 6. Investor facilitation 7. Advertisements 8. Easy procedure 15. Are you willing to invest in mutual funds? [] Yes [] No Rank
If no, specify the reason-----------------------------------------If yes, do you need further assistance from Wealth Management Executives from Karvy Consultants Ltd? [] Yes [] No
16. As investors please specify your needs, expectations and recommendations to Develop the mutual funds.