Bachelor of Business Management

Industry Internship Programme (IIP)

Declaration
This is to declare that the Report titled MARKETING AND SALES WITH
RESPECT TO UTI MUTUAL FUND has been made for the partial fulfillment of

the Course: Industry Internship Programme (IIP) in Semester VI by me at UTI

Mutual Fund under the guidance of Mr. Gaur & Ankur Tyagi.
I confirm that this Report truly represents my work undertaken as a part of
my Industry Internship Programme (IIP). This work is not a replication of work
done previously by any other person. I also confirm that the contents of the
report and the views contained therein have been discussed and deliberated
with the faculty guide.

Signature of the Student

Name of the Student (in Capital Letters) : Manish Gupta

Registration No

: 11010141071

Certificate

This is to certify that Mr. Manish Gupta Regn. No. 11010141071 has completed
the report titled MARKETING AND SALES WITH RESPECT TO UTI MUTUAL
FUND under my guidance for the partial fulfillment of the Course: Industry
Internship Programme (IIP) in Semester VI of the Bachelor of Business Management.

Signature of Faculty Guide:

Name of the Faculty Guide: Dr. Vidhisha Vyas

Content

S.NO.

CHAPTER

PAGE

EXECUTIVE SUMMARY
UTI Mutual Fund is among one of the largest financial institution. It is doing its business by
continuously delivering a differentiated products and services that provide high business value in
return.
The main objectives are
To know the awareness of mutual fund amongst the investor.
To know the investors knowledge and perceptions about mutual fund.
To know the investor priority level between different criteria of investment like safety
level, returns, liquidity,tax benefits and maturity etc. of investment.
To find out reason for choice of mutual fund as an investment avenue.
To savings form an important part of the economy of any nation
Young investors have an edge over others on account of their age.In other words, a young age
investor has a big ratio of disposable income. Now,India is seen as one of the best and deepest of
markets in the world. It has huge potential growth rate in mutual fund and different financial
instruments to provide reasonable options for an ordinary man to invest his savings and diversify
the risk. This report will seek to cover all the fundamental aspects relating to various investments
assets classes which are available for the investors in India. This report will also tell us the
customer perception about different investment instrument which are available.

INTRODUCTION
A mutual fund is a type of professionally managed investment fund that pools money from many
investors to purchase securities.[1] While there is no legal definition of the term "mutual fund", it
is most commonly applied only to those collective investment vehicles that are regulated and
sold to the general public. They are sometimes referred to as "investment companies" or
"registered investment companies". Hedge funds are not mutual funds, primarily because they
cannot be sold to the general public.
In the United States, mutual funds must be registered with the U.S. Securities and Exchange
Commission, overseen by a board of directors or board of trustees, and managed by a Registered
Investment Advisor. Mutual funds are also subject to an extensive and detailed regulatory regime
set forth in the Investment Company Act of 1940. Mutual funds are not taxed on their income
and profits if they comply with certain requirements under the U.S. Internal Revenue Code.
Mutual funds have both advantages and disadvantages compared to direct investing in individual
securities. Today they play an important role in household finances, most notably in retirement
planning.
There are three types of U.S. mutual fundsopen-end funds, unit investment trusts, and closedend funds. The most common type, open-end funds, must be willing to buy back shares from
investors every business day. Exchange-traded funds (ETFs) are open-end funds or unit
investment trusts that trade on an exchange. Non-exchange traded open-end funds are most
common, but ETFs have been gaining in popularity.
Mutual funds are generally classified by their principal investments. The four main categories of
funds are money market funds, bond or fixed income funds, stock or equity funds, and hybrid
funds. Funds may also be categorized as index (or passively managed) or actively managed.

Advantages and disadvantage

Mutual funds have advantages over investing directly in individual securities:

Increased

diversification:

fund

normally

holds

many

securities; diversification decreases risk.

Daily liquidity: Shareholders of open-end funds and unit investment trusts may sell their
holdings back to the fund at the close of every trading day at a price equal to the closing net
asset value of the fund's holdings.

Professional investment management: Open-and closed-end funds hire portfolio

managers to supervise the fund's investments.

Ability to participate in investments that may be available only to larger investors. For
example, individual investors often find it difficult to invest directly in foreign markets.

Service and convenience: Funds often provide services such as check writing.

Government oversight: Mutual funds are regulated by the SEC

Ease of comparison: All mutual funds are required to report the same information to
investors, which makes them easy to compare.

Mutual funds have disadvantages as well, which include:

Fees

Less control over timing of recognition of gains

Less predictable income

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No opportunity to customize

2.1. INDUSTRY OVERVIEW

A mutual fund is a professionally-managed trust that pools the savings of many investors and
invests them in securities like stocks, bonds, short-term money market instruments and
commodities such as precious metals. Investors in a mutual fund have a common financial goal
and their money is invested in different asset classes in accordance with the funds investment
objective. Investments in mutual funds entail comparatively small amounts, giving retail
investors the advantage of having finance professionals control their money even if it is a few
thousand rupees.
Mutual funds are pooled investment vehicles actively managed either by professional fund
managers or passively tracked by an index or industry. The funds are generally well diversified
to offset potential losses. They offer an attractive way for savings to be managed in a passive
manner without paying high fees or requiring constant attention from individual investors.
Mutual funds present an option for investors who lack the time or knowledge to make traditional
and complex investment decisions.

A mutual fund is set up in the form of a trust that has a Sponsor, Trustees, Asset Management
Company (AMC). The trust is established by a sponsor(s) who is like a promoter of a company
and the said Trust is registered with Securities and Exchange Board of India (SEBI) as a Mutual
Fund. The Trustees of the mutual fund hold its property for the benefit of unit holders. An Asset
Management Company (AMC) approved by SEBI manages the fund by making investments in
various types of securities.
The trustees are vested with the power of superintendence and direction over the AMC. They
monitor the performance and compliance of SEBI regulations by the mutual fund. The trustees
are vested with the general power of superintendence and direction over AMC. They manage the
performance and compliance of SEBI Regulations by the mutual fund.

A mutual fund company collects money from several investors, and invests it in various options
like stocks, bonds, etc. This fund is managed by professionals who understand the market well,
and try to accomplish growth by making strategic investments. Investors get units of the mutual
fund according to the amount they have invested. The Asset Management Company is
responsible for managing the investments for the various schemes operated by the mutual fund.
It also undertakes activities such like advisory services, financial consulting, customer services,
accounting, marketing and sales functions for the schemes of the mutual fund.

Based on the maturity period

Open-ended Fund
An open-ended fund is a fund that is available for subscription and can be redeemed on a
continuous basis. It is available for subscription throughout the year and investors can buy and
sell units at NAV related prices. These funds do not have a fixed maturity date. The key feature
of an open-ended fund is liquidity.

Close-ended Fund
A close-ended fund is a fund that has a defined maturity period, e.g. 3-6 years. These funds are
open for subscription for a specified period at the time of initial launch. These funds are listed on
a recognized stock exchange.

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Interval Funds
Interval funds combine the features of open-ended and close-ended funds. These funds may trade
on stock exchanges and are open for sale or redemption at predetermined intervals on the
prevailing NAV.

Based on investment objectives

Equity/Growth Funds
Equity/Growth funds invest a major part of its corpus in stocks and the investment objective of
these funds is long-term capital growth. When you buy shares of an equity mutual fund, you
effectively become a part owner of each of the securities in your funds portfolio. Equity funds
invest minimum 65% of its corpus in equity and equity related securities. These funds may invest
in a wide range of industries or focus on one or more industry sectors. These types of funds are
suitable for investors with a long-term outlook and higher risk appetite.
Debt/Income Funds
Debt/ Income funds generally invest in securities such as bonds, corporate debentures,
government securities (gilts) and money market instruments. These funds invest minimum 65%
of its corpus in fixed income securities. By investing in debt instruments, these funds provide
low risk and stable income to investors with preservation of capital. These funds tend to be less
volatile than equity funds and produce regular income. These funds are suitable for investors
whose main objective is safety of capital with moderate growth.
Balanced Funds
Balanced funds invest in both equities and fixed income instruments in line with the predetermined investment objective of the scheme. These funds provide both stability of returns and
capital appreciation to investors. These funds with equal allocation to equities and fixed income
11

securities are ideal for investors looking for a combination of income and moderate growth. They
generally have an investment pattern of investing around 60% in Equity and 40% in Debt
instruments.
Money Market/ Liquid Funds
Money market/ Liquid funds invest in safer short-term instruments such as Treasury Bills,
Certificates of Deposit and Commercial Paper for a period of less than 91 days. The aim of
Money Market /Liquid Funds is to provide easy liquidity, preservation of capital and moderate
income. These funds are ideal for corporate and individual investors looking for moderate returns
on their surplus funds.
Gilt Funds
Gilt funds invest exclusively in government securities. Although these funds carry no credit risk,
they are associated with interest rate risk. These funds are safer as they invest in government
securities.
Some of the common types of mutual funds and what they typically invest in:

Type of Fund

Typical Investment

Equity or Growth Fund

Equities like stocks

Fixed Income Fund

Fixed income securities like government and corporate bonds

Money Market Fund

Short-term fixed income securities like treasury bills

Balanced Fund

A mix of equities and fixed income securities

Sector-specific Fund

Sectors like IT, Pharma, Auto etc.

Index Fund

Equities or Fixed income securities chosen to replicate a specific

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Index for example S&P CNX Nifty

Fund of funds

Other mutual funds

Other Schemes
Tax-Saving (Equity linked Savings Schemes) Funds
Tax-saving schemes offer tax rebates to investors under specific provisions of the Income Tax
Act, 1961. These are growth-oriented schemes and invest primarily in equities. Like an equity
scheme, they largely suit investors having a higher risk appetite and aim to generate capital
appreciation over medium to long term.

Index Funds
Index schemes replicate the performance of a particular index such as the BSE Sensex or the
S&P CNX Nifty. The portfolio of these schemes consist of only those stocks that represent the
index and the weightage assigned to each stock is aligned to the stocks weightage in the index.
Hence, the returns from these funds are more or less similar to those generated by the Index.

Sector-specific Funds
Sector-specific funds invest in the securities of only those sectors or industries as specified in the
Scheme Information Document. The returns in these funds are dependent on the performance of
the respective sector/industries for example FMCG, Pharma, IT, etc. The funds enable investors
to diversify holdings among many companies within an industry. Sector funds are riskier as their
performance is dependent on particular sectors although this also results in higher returns
generated by these funds.

13

Benefits of investing in mutual funds:

Professional Management
When you invest in a mutual fund, your money is managed by finance professionals. Investors
who do not have the time or skill to manage their own portfolio can invest in mutual funds. By
investing in mutual funds, you can gain the services of professional fund managers, which would
otherwise be costly for an individual investor.

Diversification
Mutual funds provide the benefit of diversification across different sectors and companies.
Mutual funds widen investments across various industries and asset classes. Thus, by investing in
a mutual fund, you can gain from the benefits of diversification and asset allocation, without
investing a large amount of money that would be required to build an individual portfolio.

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Liquidity
Mutual funds are usually very liquid investments. Unless they have a pre-specified lock-in
period, your money is available to you anytime you want subject to exit load, if any. Normally
funds take a couple of days for returning your money to you. Since they are well integrated with
the banking system, most funds can transfer the money directly to your bank account.

Flexibility
Investors can benefit from the convenience and flexibility offered by mutual funds to invest in a
wide range of schemes. The option of systematic (at regular intervals) investment and
withdrawal is also offered to investors in most open-ended schemes. Depending on ones
inclinations and convenience one can invest or withdraw funds.

Low transaction cost

Due to economies of scale, mutual funds pay lower transaction costs. The benefits are passed on
to mutual fund investors, which may not be enjoyed by an individual who enters the market
directly.

Transparency
Funds provide investors with updated information pertaining to the markets and schemes through
factsheets, offer documents, annual reports etc.

Well regulated

15

Mutual funds in India are regulated and monitored by the Securities and Exchange Board of
India (SEBI), which endeavors to protect the interests of investors. All funds are registered with
SEBI and complete transparency is enforced. Mutual funds are required to provide investors with
standard information about their investments, in addition to other disclosures like specific
investments made by the scheme and the quantity of investment in each asset class

Mutual funds invest in different securities like stocks or fixed income securities, depending upon
the funds objectives. As a result, different schemes have different risks depending on the
underlying portfolio. The value of an investment may decline over a period of time because of
economic alterations or other events that affect the overall market. Also, the government may
come up with new regulations, which may affect a particular industry or class of industries. All
these factors influence the performance of Mutual Funds.

Risk and Reward: The diversification that mutual funds provide can help ease risk by offsetting
losses from some securities with gains in other securities. On the other hand, this could limit the
upside potential that is provided by holding a single security.

Lack of Control: Investors cannot determine the exact composition of a funds portfolio at any
given time, nor can they directly influence which securities the fund manager buys.

Performance of Mutual Funds in India

Let us start the discussion of the performance of mutual funds in India from the day the concept
of mutual fund took birth in India. The year was 1963. Unit Trust of India invited investors or
rather to those who believed in savings, to park their money in UTI Mutual Fund.

16

For 30 years it goaled without a single second player. Though the 1988 year saw some new
mutual fund companies, but UTI remained in a monopoly position.
The performance of mutual funds in India in the initial phase was not even closer to satisfactory
level. People rarely understood, and of course investing was out of question. But yes, some 24
million shareholders was accustomed with guaranteed high returns by the begining of
liberalization of the industry in 1992. This good record of UTI became marketing tool for new
entrants. The expectations of investors touched the sky in profitability factor. However, people
were miles away from the praparedness of risks factor after the liberalization.
The Assets Under Management of UTI was Rs. 67bn. by the end of 1987. Let me concentrate
about the performance of mutual funds in India through figures. From Rs. 67bn. the Assets
Under Management rose to Rs. 470 bn. in March 1993 and the figure had a three times higher
performance by April 2004. It rose as high as Rs. 1,540bn.
The net asset value (NAV) of mutual funds in India declined when stock prices started falling in
the year 1992. Those days, the market regulations did not allow portfolio shifts into alternative
investments. There were rather no choice apart from holding the cash or to further continue
investing in shares. One more thing to be noted, since only closed-end funds were floated in the
market, the investors disinvested by selling at a loss in the secondary market.
The performance of mutual funds in India suffered qualitatively. The 1992 stock market scandal,
the losses by disinvestments and of course the lack of transparent rules in the whereabout rocked
confidence among the investors. Partly owing to a relatively weak stock market performance,
mutual funds have not yet recovered, with funds trading at an average discount of 1020 percent
of their net asset value.
The supervisory authority adopted a set of measures to create a transparent and competitve
environment in mutual funds. Some of them were like relaxing investment restrictions into the
market, introduction of open-ended funds, and paving the gateway for mutual funds to launch
pension schemes.
The measure was taken to make mutual funds the key instrument for long-term saving.

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18

2.2 Company overview

UTI MUTUAL FUNDS
UTI Mutual Fund is managed by UTI Asset Management Company Private Limited (Estb: Jan
14, 2003) who has been appointed by the UTI Trustee Company Private Limited for managing
the schemes of UTI Mutual Fund and the schemes transferred / migrated from UTI Mutual Fund.
The UTI Asset Management Company has its registered office at : UTI Tower, Gn Block, Bandra
- Kurla Complex, Bandra (East), Mumbai - 400 051 will provide professionally managed back
office support for all business services of UTI Mutual Fund (excluding fund management) in
accordance with the provisions of the Investment Management Agreement, the Trust Deed, the
SEBI (Mutual Funds) Regulations and the objectives of the schemes. State-of-the-art systems
and communications are in place to ensure a seamless flow across the various activities
undertaken by UTI AMC.

UTI AMC is a registered portfolio manager under the SEBI (Portfolio Managers) Regulations,
1993 on February 3 2004, for undertaking portfolio management services and also acts as the
manager and marketer to offshore funds through its 100 % subsidiary, UTI International Limited,
registered in Guernsey, Channel Islands.

UTI Mutual Fund has come into existence with effect from 1st February 2003. UTI Asset
Management Company presently manages a corpus of over Rs. 34500 Crore.

UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of
every class of citizenry. It has a nationwide network consisting 70 UTI Financial Centers (UFCs)
and UTI International offices in London, Dubai and Bahrain. With a view to reach to common
investors at district level, 4 satellite offices have also been opened in select towns and districts. It
has a well-qualified, professional fund management team, who have been highly empowered to
manage funds with greater efficiency and accountability in the sole interest of unit holders. The
fund managers are also ably supported with a strong in-house equity research department. To
19

ensure better management of funds, a risk management department is also in operation.

It has reset and upgraded transparency standards for the mutual funds industry. All the branches,
UFCs and registrar offices are connected on a robust IT network to ensure cost-effective quick
and efficient service. All these have evolved UTI Mutual Fund to position as a dynamic,
responsive, restructured, efficient, and transparent and SEBI compliant entity
HISTORY OF UTI Mutual Funds
The setting up of the Unit Trust of India (UTI) in 1963 heralded the birth of the Indian mutual
fund industry. In 1964, UTI mutual fund launched its flagship scheme US-64 and went on to
become a generic term for the mutual fund sector till the government allowed public sector banks
to start mutual funds in 1987.
Despite being the trendsetter in the segment, the UTI mutual fund could not sustain the initial
tempo and was on the verge of a collapse in 2001, before the government bailed it out and
restructured the fund. After the restructuring, the fund has somewhat redeemed its credibility
through professional management and a booming market.
The fund's sponsors are public sector financial giants like Life Insurance Corporation, SBI, Bank
of Baroda and Punjab National Bank. The sponsors hold equal stakes in the asset management
company, UTI Asset Management Company Private Limited. UTI Mutual Fund remains the
largest fund in the country with assets of over Rs.35,028 crore under management as of Aug
2006.
In 2003, UTI was divided into two parts, UTI Mutual Fund (UTI MF) and a specified
undertaking of UTI or UTI-I. UTI MF was brought under SEBI regulations while UTI-I was kept
under direct government control since its schemes offered guaranteed returns.

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UTI MUTUAL FUNDS SCHEMES

The Various Schemes Of Mutual Funds Provided By UTI Mutual Funds

Liquid Funds Category

UTI - Money Market Fund

An open-ended pure debt liquid plan, seeking to provide highest possible current income, by
investing in a divesified portfolio of short-term money market securities.

UTI - Floating Rate Fund

To generate regular income through investment in a portfolio comprising substantially of floating
rate debt / money market instruments and fixed rate debt / money market instruments.

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UTI - Liquid Fund - Cash PlanThe scheme seeks to generate steady & reasonable income with low risk & high level of liquidity
from a portfolio of money market securities & high quality debt.
Income Funds Category

UTI - G-Sec FundInvestment Plan An open-end Gilt-Fund with the objective to invest only in Central Government
securities including call money, treasury bills and repos of varying maturities with a view to
generate credit risk free return...

UTI - G-Sec FundShort Term Plan An open-end Gilt-Fund with the objective to invest only in Central Government
securities including call money, overnment securities including call money, treasury bills and
repos of varying maturities with a view to generate credit risk free return.

UTI - GILT Advantage Fund LTPTo generate credit risk-free return through investments in sovereign securities issued by the
Central and / or a State Government. LTP.

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UTI Children Career Plan-Bond

An open ended debt oriented fund with 100% investment in Debt/G-sec. Investment can be made
in the name of the children upto the age of 15 years...

UTI - Bond Advantage Fund LTPIt aims to generate attractive returns consistent with capital preservation and liquidity.

UTI - Monthly Income SchemeAn open-ended debt oriented fund investing a minimum of 90% in Debt and G-Sec and a
maximum of 10% in equity instruments. The fund aims to distribute income periodically. Best
suited to the investors.

UTI - Short Term Income FundThe scheme seeks to generate steady & reasonable income with low risk & high level of liquidity
from a portfolio of money market securities & high quality debt.

23

UTI - MIS - Advantage PlanTo generate regular income through investments in fixed income securities and capital
appreciation / dividend income through investment of a portion of net assets of the scheme in
equity and equity related instruments so as to endeavor to make periodic income distribution to
Unit holders.

UTI - Bond FundOpen-end 100% pure debt fund, which invests in rated corporate debt papers and government
securities with relatively low risk and easy liquidity.

UTI - Capital Protection Oriented SchemeThe scheme will invest in a portfolio predominantly of fixed income securities that are maturing
in line with duration of the respective plans. Each Plan will have a separate portfolio. The debt
component of the portfolio structure shall have the highest investment grade rating. The equity
components of the scheme will mainly focus on those companies / stocks that have potential to
appreciate in the medium to long run.

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Asset Allocation Funds Category

UTI - Variable Investment SchemeThe UTI- Variable Investment Scheme is an open-ended scheme with dynamic allocation
between equity and debt classes.
Index Funds Category

UTI - Master Index FundUTI MIF is an open-ended passive fund with the primary investment objective to invest in
securities of companies comprising the BSE sensex in the same weightage as these companies
have in BSE sensex.

UTI - Index Select FundAn open-ended equity fund with the objective to invest in select stocks of the BSE Sensex and
the S & P CNX Nifty. The fund does not replicate any of the indices but aims to attain
performance better than the performance of the indices.

25

UTI - Nifty Index FundUTI NIF is an open-ended passive fund with the objective to invest in securities of companies
comprising of the S&P CNX Nifty in the same weightage as they have in S&P CNX Nifty.

UTI SunderThe objective of the scheme is to provide investment returns that, before expenses, closely
correspond to the performance and yield of the basket of securities underlying the S&P CNX
NIFTY Index.

UTI - Gold Exchange Traded FundTo endeavour to provide returns that, before expenses, closely track the performance and yield of
Gold. However the performance of the scheme may differ from that of the underlying asset due
to tracking error.

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Equity Funds Category

UTI - Equity Tax Saving PlanAn open-ended equity fund investing a minimum of 80% in equity and equity related
instruments. It aims at enabling members to avail tax rebate under Section 88 of the IT Act and
provide them with the benefits of growth.

UTI MEPUSThe scheme primarily aims at securing for the investors capital appreciation by investing the
funds of the scheme in equity shares of companies with good growth prospects

UTI - Mastreshare unit SchemeAn open-end equity fund aiming to provide benefit of capital appreciation and income
distribution through investment in equity.

UTI - Master Plus Unit SchemeAn open-ended equity fund with an objective of long-term capital appreciation through
investments in equities and equity related instruments, convertible debentures, derivatives in
India and also in overseas markets.

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UTI - Mastergain Unit SchemeMastergain is open-ended equity scheme with an objective of investing at least 80% of its funds
in equity and equity related instrument with medium to high risk profile and upto 20% in debt
and money market instruments with low to medium risk profile.

UTI - Opportunities FundThis scheme seeks to generate capital appreciation and/or income distribution by
investing the funds of the scheme in equity shares and equity-related instruments.

UTI - Software FundAn open-ended fund which invests exclusively in the equities of the Software Sector companies.
One of the growth sectors funds aiming to invest in equity shares of companies belonging to
information technology sector to provide returns to investors through capital growth as well as
through regular income distribution.

UTI - Pharma & Healthcare FundAn open-ended fund which exclusively invests in the equities of the Pharma & Healthcare sector
companies. This fund is one of the growth sector funds aiming to invest in companies engaged in
28

business of manufacturing and marketing of bulk drug, formulations and healthcare products and
services.

UTI - Banking Sector FundAn open-ended equity fund with the objective to provide capital appreciation through
investments in the stocks of the companies/institutions engaged in the banking and financial
services activities.

UTI - Auto Sector FundAn open-ended equity fund with the objective to provide Capital appreciation through
investments in the stocks of the companies engaged in the automobile and auto-ancillary
industry.

UTI - Master Value FundAn open-ended equity fund investing in stocks which are currently under valued to their future
earning potential and carry medium risk profile to provide 'Capital Appreciation'.

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UTI - Master GrowthAn open-ended equity fund for investment in equity shares, convertible & non-convertible
debentures and other capital and money market instruments with a provision to invest upto 50%
of its corpus in PSUs equities and equity related products. The fund aims to provide unit holders
capital appreciation & income distribution.

UTI - Mid Cap FundAn open-ended equity fund with the objective to provide 'Capital appreciation' by investing
primarily in mid cap stocks.

UTI - MNC FundAn open-ended equity fund with the objective to invest predominantly in the equity shares of
multinational companies in diverse sectors such as FMCG, Pharmaceutical, Engineering etc.

UTI - Infrastructure FundAn open-ended equity fund with the objective to provide Capital appreciation through investing
in the stocks of the companies engaged in the sectors like Metals, Building materials, oil and gas,
power, chemicals, engineering etc. The fund will invest in the stocks of the companies which
form part of Basic Industries.

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UTI - Services Sector FundAn open-ended fund which invests in the equities of the Services Sector companies of the
country. One of the growth sector funds aiming to provide growth of capital over a period of time
as well as to make income distribution by investing the funds in stocks of companies engaged in
service sector such as banking, finance, insurance, etc.

UTI - Leadership Equity FundThis scheme seeks to generate capital appreciation and/or income distribution by investing the
funds of the scheme in stocks that are "Leaders" in their respective industries/sectors/sub-sector.

UTI - Dividend Yield FundUTI Dividend Yield Fund is an open-ended equity orientedscheme, which endeavours to provide
medium to long termcapital gains and/or dividend distribution by investing predominantly in
equity and equity related instruments thatoffer a high dividend yield.

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UTI - SPrEAD FundUTI SPrEAD FUND a market-neutral equity fund with the returns and safety of debt. A fund that
takes advantage of arbitrage opportunities between the spot and futures markets. The fund where
returns are not linked to the rise or fall of equity markets.

UTI - Contra FundThe fund aims to provide long-term capital appreciation/dividend distribution through
investments in listed equities and equity-related instruments. The Fund's investment policies are
based on insights from behavioral finance.

UTI - Long-Term Advantage FundThe investment objective of the scheme is to provide medium to long term capital appreciation
alongwith income tax benefit.

UTI - Wealth Builder FundThe objective of the scheme is to achieve long term capital appreciation by investing
predominantly in a diversified portfolio of equity and equity related instruments.

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UTI - India Lifestyle FundThe investment objective of the scheme is to provide long term capital appreciation and/or
income distribution from a diversified portfolio of equity and equity related instruments of
companies that are expected to benefit from changing Indian demographics, Indian lifestyles and
rising consumption pattern.
Balanced Funds Category

UTI - Balanced FundAn open-ended balance fund investing between 40% to 60% in equality related securities and the
balance in debt (fixed income securities) with a view to generate regular income together with
capital appreciation.

UTI - US 2002An Open-ended balance fund. The scheme aims at providing income distribution/ cumulation of
income and capital appreciation over a long term from a prudent portfolio mix of equity and
fixed income securities

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UTI - Mahila Unit SchemeAn open-ended scheme with a minimum 70% investment in Debt/G-Sec and a maximum 30%
investment in equity. The fund is designed to provide an enabler to adult female persons in
pooling their own savings and/ or gifts into an investment vehicle so as to get periodic cash flow
near to the time of any chosen festival/ occasion or to allow income/ gains redeployed in the
scheme and repurchase units partially or fully as and when desired.

UTI - Childrens Career Plan (Balanced)An open-ended debt oriented fund with investment in Debt/G-Sec of minimum 60% and a
maximum of 40% in Equity. Investment can be made in the name of the children upto the age of
15 years so as to provide them, after they attain the age of 18 years, a means to receive
scholarship to meet the cost of higher education and/or to help them in setting up a profession,
practice or business or enabling them to set up a home or finance the cost of other social
obligation.

UTI CRTSThis is an open-end income oriented scheme. The scheme aims at catering to the investment
needs of charitable, religious, educational trusts and similar institutions to provide them an
investment vehicle to avail of tax exemption and also to have regular income.

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UTI ULIPAn open-ended balanced fund with an objective of investing not more than 40% of the funds in
equity and equity related instruments and balance in debt and money market instruments with
low to medium risk profile. Investment by an individual in the scheme is eligible for exemption
under section 88 of the IT Act 1961. In addition the scheme also offers Life Insurance and
Accident Insurance cover.

UTI - Retirement Benefit Pension FundAn open-ended balanced fund with a maximum equity allocation of 40% and the balance in debt.
This ensures to provide pension to investors particularly self-employed persons after they attain
age of 58 years, in the form of periodical cash flow upto the extent of repurchase value of their
holding through systematic withdrawal plan.

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VISION
To be the most preferred Mutual Fund
MISSION
To make UTI Mutual Fund:

The most trusted brand that is admired by all stakeholders

The largest and most efficient wealth manager with global presence

The best-in-class customer service provider

The most preferred employer

The most innovative and best wealth creator

A socially responsible organisation known for best corporate governance

SWOT analysis
Mutual funds are among the financial products that benefit from conducting a SWOT analysis.
By reviewing their strengths, weaknesses, opportunities and threats, an individual investor can be
better informed on where to invest their money, and be positioned to shift gears along with the
market.
Strengths
The most critical strength for a mutual fund is its performance. If a fund is outperforming the
market, and particularly if it is at the top of its benchmark, that is a big selling point. If the fund
is part of a well-established company with a track record of success and a family of highperforming products, that brand name and historical record may also be a strength. A best-inclass research department or methodology that has a track record of picking winners is a huge
asset as well. Different financial metrics may be key depending on your investment style and the
fund involved: dividend yield may be the key for one investor, total return over a 10-year period
for another.

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Weakness
One weakness to look at are your funds fees. A high expense ratio is a weakness even if it pays
for an active management currently beating the market with its returns. Even in good times,
expenses are a drag on investor return, and they will be more difficult to accept if the
performance declines. Size can be a weakness as well, since bigger isnt always better. As a
small-cap fund gets bigger, for example, it will have a hard time finding growth opportunities for
all of its assets and may have to close or expand outside of its stated objective. Risk may be a
weakness for some investors looking for a smaller beta or standard deviation.
Opportunities
It's not enough to look at the current numbers when evaluating prospective mutual funds. You
also need to look at the overall market and consider whether the fund is best positioned to take
advantage of trends. A lagging fund may offer the best opportunity for growth if the combination
of a management change and economic trends prove beneficial. A change in the government
regulatory environment not only affects different industries, but the funds that concentrate in
those sectors as well.
Threats
To some extent, many funds move along with general economic news. Some types of funds do
better in a recession while others track well in boom times -- those funds are particularly
threatened by a sudden change in the unemployment rate that undermines consumer confidence
or a stimulus plan that gets people spending again. In addition, if a fund is dependent on a
superstar manager, make sure you have a plan in place if that manager suddenly decides to leave.

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3. PROJECT PROFILE
3.1 OBJECTIVES OF THE STUDY
1. To study the perception of customers towards various types of mutual funds.
2. To evaluate the awareness of customers towards various mutual funds.
3. To determine the expected return and risk involved in investing in mutual funds.
4. To understand the customers' investing power and their interest in financial product

3.2 METHODOLOGY
1) Research Design: Descriptive Research
2) Sample Design:
a) Population: Unknown
b) Population Frame: Various mutual funds users.
c) Method: Convenience Sampling
d) Sample size: 204
3) Data Collection Design:
a) Data Collection Method:
1) Primary data: Primary data are first-hand information collected through various methods such
as observation, interviewing, mailing etc. during the project
2) Secondary data: This is collected through book periodical, bibliographies and annual reports.
a) Data Collection Instrument: For data collection instrument structured questionnaire was used.
They consist of open ended questions and close ended question.
b) Statistical Tools used: Simple Percentage analysis
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4. OBSERVATIONS & ANALYSIS

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FINDINGS
About 46% of respondents are interested in bank mutual fund and 69% respondents are
aware of different tax benefit of investing in mutual fund.
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 About 54% of respondents agreed the importance of investing in mutual fund and 33%
respondents are aware of the category of their investment they make.
About 63% of respondents are provided with vital source of information for investing in
mutual fund and 88% of respondents agreed that mutual fund can provide a high return to
them.
About 76% of respondent are aware of the level of risk they take and 73% of respondents
are aware of their expected return.
About 51% of respondents are aware of duration of investment they make.
About 90% of respondents are satisfied with our company investment and 64%
respondents are making lump sum amount of investment.
About 44% of respondents are earning dividend returns they expected and 62% of
respondents are of good opinion of mutual fund.
About 42% of respondents have high preference for investment and 64% respondents are
satisfied in mutual fund investment.
About 80% of respondents are presently satisfied with their life from a financial point of
view.

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Recommendations
Various respondents were not aware of the mutual fund products and the type of mutual
fund schemes and the risk associated with mutual fund products. So Mutual fund
companies should provide complete information of various products to their investors.
Customers i.e., investors fees should be reduced thereby increasing the number of
investors towards investment.
The mutual fund companies to increase their market size by way of opening more
distribution centers at the various urban and semi-urban markets.
If the company improves the categories of investment then customer will show the
interest to invest more.

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Conclusion
Mutual fund companies help investors by providing them with a qualified fund manager.
Increasingly, in India, fund managers are acquiring global certifications like CFA and MBA
which help them be at the cutting edge of the knowledge in the investing world. Since mutual
fund company collect money from millions of investors, they achieve economies of scale. The
cost of running a mutual fund is divided between a larger pool of money and hence mutual funds
are able to offer the investor a lower cost alternative of managing their funds. In India mutual
funds are regulated by the Securities and Exchange Board of India, which helps to provide
comfort to the investors. SEBI forces transparency on the mutual funds, which helps the investor
make an informed choice. SEBI requires the mutual funds to disclose their portfolios at least six
monthly, which helps the investors keep track whether the fund is investing in line with its
objectives or not.

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Learning Outcomes
The time spent at the research of UTI mutual fund was quite interesting. In my point of view, to
understand what mutual fund is and what are aspects of it is not that easy. There are always
market risk associated to it. And as per a marketer of any organization one must know what he is
selling or promoting. However, its always not important that you should know about your
product only sometimes one must understand the customer as well. As my objective of the study
is to understand the customers understanding over mutual fund and its awareness. I was well
trained by UTI and I feel by the knowledge I have possessed I can decide and let other decide
over wise investment for their bright future. This was an achievement during my training as an
industrial trainee.

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Appendix

QUESTIONNAIRE
1. Is your age
a) Below 30 years
b) 31-40 years
c) 41-50 years
c) Over 51 years
2. Gender
a) Male
b) Female
3. Annual Household Income
a) Less than 1.5 lakhs
b) Between 1.5 to 3 lakhs
c) Between 3 to 5 lakhs
d) Above 5 lakhs
4. Education Qualification
a) Below Graduate
b) Graduate
c) PG
d) Professional
5.
a)
b)
c)
d)
e)

Customers interest towards the type of Mutual Funds

UTI
Reliance
SBI
ICICI
Others

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6. Benefits from Mutual Funds

a) Yes
b) No

7.
a)
b)
c)
d)

Purpose of Investment
Return
Safety
Principal
Diversification

8.
a)
b)
c)
d)

Category of Investment
Fixed deposit
Property
Insurance
Shares

9. Level of Risk
a) Min risk
b) Moderate risk
c) High risk

10. Expected Return

a) Less than 10%
b) Between 10% to 30%
c) Above 30%

11.
a)
b)
c)
d)
e)

Satisfaction in Mutual Fund Investment

Very Good
Good
Neutral
Poor
Very Poor

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References
www.utimf.com
www.wikipedia.com
www.google.com
Dr. Vidisha Vyas

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