A

PROJECT REPORT
ON
“Risk perception among Investors towards Mutual fund.”
For
“NJ India Invest Pvt. Ltd”
Submitted to

C K SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

Under

Gujarat Technological University

UNDER THE GUIDANCE OF

Faculty Guide Company Guide

Mr. Gaurang Badheka Mehul Trivedi
Assistant Professor Branch manager

Submitted by
Niket shah
Enrollment No.:137050592100
M.B.A – SEMESTER III

C K Shah Vijapurwala Institute of Management

M.B.A PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
July 2014

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COMPANY CERTIFICATE

2
COLLEGE CERTIFICATE

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 PREFACE

With the respect and desire, I have pleasure to submit my report to Gujarat Technological
University.

MBA is a specialized course. The main objective of doing MBA is developing the Managerial skills,
which helps us to become a decent manager in life. In the Managerial field one cannot create
success stories if he is not a good learner. One needs to be a good learner to sharpen his facts in
the specific field to accomplish and achieve desired goals and heights.

As a part of our MBA curriculum, we are required to undergo summer training to gain practical on
the job experience of the different subjects.

This is a report related to my summer project in NJ India Invest Pvt. Ltd on the topic “Risk
perception among Investors towards Mutual Fund”.

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 ACKNOWLEDGMENT

Through this acknowledgment, I express my sincere gratitude towards all those people who have
helped me in the preparation of this project, which has been a learning experience.

I take the opportunity, while presenting this project report and to express my deep gratitude to all
those who afford their valuable help and time to help me to complete the “summer Training”
successfully. A number of people provided me their assistance, encouragement, and enthusiasm.
Without them this project report would not have been possible.

I appreciate the co-operation of Mr. Mehul Trivedi (Branch Manager), Mr. Rohit Patel (Jr. Unit
Manger) and other employees Of Sales department for taking out precious time from their busy
schedule providing me with information which has helped me to understand the concept of the
Marketing department and helped for my report.

I am immensely thankful to Dr. Rajesh Khajuria (Director, CKSVIM) & my guiding faculty Mr.
Gaurang Badheka and all faculty members for showing me right directions, guidance &
suggestions to complete my project.

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 DECLARATION

I, NIKET SHAH, hereby declare that the project work entitled “Risk Perception among investors
towards Mutual Fund”. Submitted in partial fulfillment of the requirements for the award of the
degree of Masters of Business Administration to Gujarat Technological University is a result of my
own work and my indebtedness to other work publications, references, if any, have been duly
acknowledged

Place: Vadodara

Date: 19-7-2014 NIKET SHAH

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 EXECUTIVE SUMMARY

The project titled “Risk Perception among Investors towards Mutual Fund.” Today an investor is
interested in tracking the value of his investments, whether he invests directly in the market or
indirectly through Mutual Funds. This dynamic change has taken place because of a number of
reasons.

With globalization and the growing competition in the investments opportunity available he would
have to make guided and rational decisions on whether he gets an acceptable return on his
investments in the funds selected by him, or if he needs to switch to another fund.

In order to achieve such an end the investor has to understand the basis of appropriate preference
measurement for the fund, and acquire the basic knowledge of the different measures of
evaluating the performance of the fund. Only then would he be in a position to judge correctly
whether his fund is performing well or not, and make the right decision.

This project is undertaken to help the investors in tracking the performance of their investments in
Mutual Funds and has been carried out with the objective of giving performance analysis of Mutual
Fund. The methodology for carrying out the project was very simple that is through secondary data
obtained through various mediums like fact sheet of the funds, the Internet, Business magazines,
Newspaper, etc. the analysis of Mutual Funds has been done with respect to its various
parameters. I hope NJ INDIA INVEST PVT. LTD., Udaipur will recognize this as well as take more
references from this project report.

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 CONTENT

SR. PARTICULARS PAGE

NO. NOS.
PART – I GENERAL INFORMATION (IF IT IS INDUSTRY SPECIFIC)/
THEORETICAL BACKGROUND
1 1.1 Industry Overview 12
History 14
1.2 World Market 16
1.3 Indian Market 19
1.4 Growth of the industry 20
2 2.1 About major Companies in the Industry 21
2.2 Company profile 24
3 3.1 Product Basket 29
PART – II PRIMARY STUDY
4 4.1 Introduction of the Study 36
4.2 Problem Statement and Importance of the Study 42
4.3 Objectives of the Study 43
5 Research Methodology 44
5.1 Research Design
5.2 Source/s of Data
5.3 Data Collection Method
5.4 Population
5.5 Sampling Method
5.6 Sample Size
5.7 Date Collection Instrument
5.8 Model Specification / Data Processing
6 Data Analysis and Interpretation 46
7 Results and Findings 60
8 Limitations of the Study 61
9 Conclusion/Suggestions 62
10 Annexure 63
11 Bibliography 66
12 Plagiarism Report 67
13 Check List 72

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 LIST OF TABLES

TABLE NO. PARTICULARS PAGE NO.

1.1 Growth of the industry 20
1.2 Preferred 46
1.3 Based on Risk 47
1.4 Period Mutual fund 48
1.5 Reason 49
1.6 Plan the best 50
1.7 Risks affect 51
1.8 Safest option 52
1.9 Primary source 53
1.10 Invest of money 54
1.11 Prevent 55
1.12 Age 56
1.13 Gender 57
1.14 Occupation 58
1.15 Income 59

LIST OF GRAPH

GRAPH NO. PARTICULARS PAGE NO.

1.1 Preferred 46
1.2 Based on Risk 47
1.3 Period Mutual fund 48
1.4 Reason 49
1.5 Plan the best 50
1.6 Risks affect 51
1.7 Safest option 52
1.8 Primary source 53
1.9 Invest of money 54
1.10 Prevent 55
1.11 Age 56
1.12 Gender 57
1.13 Occupation 58
1.14 Income 59
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 LIST OF DIAGRAMS

DIAGRAM NO. PARTICULARS PAGE NO.

1.1 Concept of Mutual fund 12
1.2 Types of Mutual Fund 30
1.3 Risk vs. Return 38
1.4 Risk in Mutual Fund 39

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 PART – I

GENERAL INFORMATION

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 1.1 INDUSTRY OVERVIEW

MUTUAL FUND

Introduction:

A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost The flow chart below describes broadly the working of a Mutual Fund.

Diagram No. 1

A Mutual Fund is a body corporate registered with the Securities and Exchange Board of India
(SEBI) that pools up the money from individual/corporate investors and invests the same on behalf
of the investors/unit holders, in Equity shares, Government securities, Bonds, Call Money Markets
etc., and distributes the profits. In the other words, a Mutual Fund allows investors to indirectly take
a position in a basket of assets. Mutual Fund is a mechanism for pooling the resources by issuing
units to the investors and investing funds insecurities in accordance with objectives as disclosed in
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offer document. Investments in securities are spread among a wide cross-section of industries and
sectors thus the risk is reduced. Diversification reduces the risk because all stocks may not move
in the same direction in the same proportion at same time. Investors of mutual funds are known as
unit holders.

The investors in proportion to their investments share the profits or losses. The mutual funds
normally come out with a number of schemes with different investment objectives which are
launched from time to time. A Mutual Fund is required to be registered with Securities Exchange
Board of India (SEBI) which regulates securities markets before it can collect funds from the
public.

Characteristics:

 A mutual fund is managed by investment professionals and other service providers, who
earn a fee for their services, from the fund.

 The pool of funds is invested in a portfolio of marketable investments. The value of the
portfolio is updated every day.

 A mutual fund is managed by investment professionals and other service providers, who
earn a fee for their services, from the fund.

 The investor's share in the fund is denominated by 'units'. The value of the units changes
with change in the portfolio's value, every day. The value of one unit of investment is called
the Net Asset Value or NAV.

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History of the Indian Mutual Fund Industry

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the
initiative of the Government of India and Reserve Bank of India. The history of mutual funds in
India can be broadly divided into four distinct phases.

 First Phase - 1964-1987

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control
of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs. 6,700 crores of assets under management.

 Second Phase - 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004
cores.

 Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 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.

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 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.

The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of
Rs. 1, 21,805 crores. The Unit Trust of India with Rs. 44,541 crores of assets under
management was way ahead of other mutual funds.

 Fourth Phase - since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust of India with
assets under management of Rs. 29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other
schemes. The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come under
the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector
funds, the mutual fund industry has entered its current phase of consolidation and growth.

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 1.2 WORLD MARKET

World Market of Mutual Fund

A mutual fund is a type of professionally-managed collective investment scheme that pools

money from many investors to purchase securities. While there is no legal definition of mutual
fund, the term is most commonly applied only to those collective investment schemes that are
regulated, available to the general public and open-ended in nature.

The term mutual fund is less widely used outside of the United States. For collective investment
schemes outside of the United States, see articles on specific types of funds including open-ended
investment companies, unitized insurance funds, unit trusts and Undertakings for Collective
Investment in Transferable Securities. In the United States, mutual funds must be registered with
the Securities and Exchange Commission, overseen by a board of directors or board of trustees
and managed by a registered investment advisor. They are not taxed on their income if they
comply with certain requirements. Mutual funds have both advantages and disadvantages
compared to direct investing in individual securities. They have a long history in the United States.
Today they play an important role in household finances. There are 3 types of U.S. mutual funds:
open-end, unit investment trust, and closed-end. The most common type, the open-end mutual
fund, must be willing to buy back its shares from its investors at the end of every business day.
Exchange-traded funds are open-end funds or unit investment trusts that trade on an exchange.
Open-end funds are most common, but exchange-traded funds have been gaining in popularity.

Mutual funds are classified by their principal investments. The four largest 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 actively-managed.

Investors in a mutual fund pay the fund‟s expenses. There is controversy about the level of these
expenses. A single mutual fund may give investors a choice of different combinations of expenses
by offering several different types of share classes.

In the United States, a mutual fund is registered with the Securities and Exchange Commission
(SEC) and is overseen by a board of directors (if organized as a corporation) or board of trustees
(if organized as a trust). The board is charged with ensuring that the fund is managed in the best

16
interests of the fund's investors and with hiring the fund manager and other service providers to
the fund.

The fund manager, also known as the fund sponsor or fund management company, trades (buys
and sells) the fund's investments in accordance with the fund's investment objective. A fund
manager must be a registered investment advisor. Funds that are managed by the same fund
manager and that have the same brand name are known as a "fund family" or "fund complex".
Mutual funds are not taxed on their income as long as they comply with requirements established
in the Internal Revenue Code. Specifically, they must diversify their investments, limit ownership of
voting securities, distribute most of their income to their investors annually, and earn most of the
income by investing in securities and currencies. Mutual funds pass taxable income on to their
investors annually. The type of income they earn is unchanged as it passes through to the
shareholders. For example, mutual fund distributions of dividend income are reported as dividend
income by the investor. There is an exception: net losses incurred by a mutual fund are not
distributed or passed through to fund investors.

Mutual funds may invest in many kinds of securities. The types of securities that a particular fund
may invest in are set forth in the fund's prospectus, which describes the fund's investment
objective, investment approach and permitted investments.

Advantages and Disadvantages

Mutual funds have advantages compared to direct investing in individual securities. These
include:
o Increased diversification

o Daily liquidity

o Professional investment management

o Ability to participate in investments that may be available only to larger investors

o Service and convenience

o Government oversight

o Ease of comparison

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Mutual funds have disadvantages as well, which include:

o Fees

o Less control over timing of recognition of gains

o Less predictable income

o No opportunity to customize

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 1.3 INDIAN MARKET

Indian Market of Mutual Fund Industry

The first introduction of a mutual fund in India occurred in 1963, when the Government of India
launched Unit Trust of India (UTI). Until 1987, UTI enjoyed a monopoly in the Indian mutual fund
market. Then a host of other government-controlled Indian financial companies came up with their
own funds. These included State Bank of India, Canara Bank, and Punjab National Bank. This
market was made open to private players in 1993, as a result of the historic constitutional
amendments brought forward by the then Congress-led government under the existing regime of
Liberalization, Privatization and Globalization (LPG). The first private sector fund to operate in
India was Kothari Pioneer, which later merged with Franklin Templeton.

Despite being available in the market for over two decades now with assets under management
equaling Rs 7,81,71,152 Laths (as of 28 February 2010) (Source: Association of Mutual Funds,
India), less than 10% of Indian households have invested in mutual funds. A recent report on
Mutual Fund Investments in India published by research and analytics firm, Boston Analytics,
suggests investors are holding back from putting their money into mutual funds due to their
perceived high risk and a lack of information on how mutual funds work. This report is based on a
survey of approximately 10,000 respondents in 15 Indian cities and towns as of March 2010. There
are 43 Mutual Funds recently.

The primary reason for not investing appears to be correlated with city size. Among respondents
with a high savings rate, close to 40% of those who live in metros and Tier I cities considered such
investments to be very risky, whereas 33% of those in Tier II cities said they did not how or where
to invest in such assets.

On the other hand, among those who invested, close to nine out of ten respondents did so
because they felt these assets were more professionally managed than other asset classes.
Exhibit 2 lists some of the influencing factors for investing in mutual funds.

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 1.4 GROWTH OF INDUSTRY

Growth of mutual fund business in India in the four decades from 1964, when UTI was set upis
given in the table below:

Table No: 1

Period(Year) Aggregate investment in Period(Year) Aggregate investment in

Crores of Rupees Crores of Rupees

1964-69 65 1992-93 46988.02

1969-74 172 1993-94 61301.21
1974-79 402 1994-95 75050.21
1979-84 1261 1995-96 81026.52
1986-87 4563.68 1996-97 80539.00
1987-88 6738.81 1997-98 68984.00
1988-89 13455.65 1998-99 63472.00
1989-90 19110.92 1999-00 107966.10
1990-91 23060.45 2000-01 94587.00
1991-92 37480.20 2001-02 94571.00

Industry AUM tripled from 1.50 lac crore 2003 to 4.50 lac crore in Nov. 08.

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 2.1 MAJOR COMPANIES IN THE INDUSTRY

PLAYERS IN THE SECTOR

NJ INDIA INVEST is the leading company dealing in the Mutual Funds. Following are the
competitors of NJ:

 Karvy:

The Karvy Group was formed in 1983 in Hyderabad, India. Karvy ranks among the top
players in almost all the fields it operates. Karvy Computershare limited is India‟s largest
registrar and transfer agents with a client base of nearly 500 blue chips corporate,
managing over 2cr accounts.Karvy Stock Brokers Limited, member of National Stock
Exchange of India and Bombay Stock Exchange ranks among the top 5 stock brokers of
India.

 AnandRathi:
AnandRathi is a leading full service securities firm providing the entire gamut of financial
services. The firm, founded in 1994 by Mr. AnandRathi, today has a pan India presence as
well as an international presence through offices in Dubai and Bangkok.AnandRathi
provides a breadth of financial and advisory services including wealth management,
investment banking, corporate advisory, brokerage & distribution of equities, commodities,
mutual funds and insurance

 India Infoline:
India Infoline (IIL) is engaged in business of equities broking, wealth advisory services and
portfolio management services. The company was incorporated in October 1995 as Probity
Research & Services and later in April 2000 the name was changed to India
Infoline.com. Then in March 2001 the company again changed its name to India Infoline.
The company is part of India Infoline Group. It has pan- India presence through its
distribution network of 607 branches, 151 franchisees located in 346 cities. The company
also has presence in Dubai, New York and Singapore.

 Edelweiss:
Edelweissis one of India's leading Financial Services Groups, with operations that span
more than forty different lines of business and subsidiaries. Our operations straddle the
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 entire spectrum of financial services in the wholesale and retail market segments including
Asset Management, Capital Markets, Credit, Housing Finance and Insurance services. With
a net worth of over INR 28bn, Edelweiss is adequately capitalized to exploit the
opportunities emerging from this robust economic growth. Edelweiss employs over 2900
professionals across 297 offices and branches spread across 144 cities of India.

 Trustline:
Trustline made a humble beginning in 1989 as a proprietary stock broking company and
recently got converted into a public limited company in the name of Trustline securities
limited. With the advent of newer exchanges coming into play in the financial market of
India, Trustline groups’ foray into the commodity, currency, and depository was but
natural. Today Trustline group is into all major areas of financial services.

 India Bulls:

In middle of 1999, when e-commerce was just about starting in India, Sameer Gehlaut and
his close IIT Delhi friend Rajiv Rattan got together and bought a defunct securities company
with a NSE membership and started offering brokerage services. A Few months later, their
friend Saurabh Mittal also joined them. By December 1999, the company embarked on its
journey to build one of the first online platforms in India for offering internet brokerage
services. In January 2000, the 3 founders incorporated India bulls Financial Services and
made it as the flagship company.

 UTI Mutual Funds:

January 14, 2003 is when UTI Mutual Fund started to pave its path following the vision of
UTI Asset Management Co. Ltd. (UTIAMC), which was appointed by UTI Trustee Co, Pvt.
Ltd. for managing the schemes of UTI Mutual Fund and the schemes transferred/migrated
from the erstwhile Unit Trust of India.

 DWS Investment:

DWS Investments is the mutual fund arm of Deutsche Asset Management, with more than
EUR 139 bn.1 the largest mutual fund company in its home country, Germany; with EUR
193 bn. Aum number four of the leading retail mutual fund companies across Europe2 and
with EUR 270 bn. within the top 10 globally3.

Founded in 1956, DWS‟s activities span beyond Europe.

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 PRUDENT:
The Prudent Insurance Brokers team is the key driving force of the company. We are driven
by intense professional pride to excel and deliver. Our team comprises of over 160
professionals from diverse backgrounds, bringing with them rich experience to understand
better our clients‟ businesses and risks.

 Bajaj capital
The Bajaj Capital Group is one of India‟s leading Investment Advisory and Financial
Planning companies. Bajaj Capital is also SEBI-approved Category I Merchant Bankers.
Bajaj Capital offers personalized investment Advisory and Financial Planning services to
individual investors, corporate houses, institutional investors, Non-Residents Indians (NRIs)
and High Net worth Clients, among others.

 BONANZA-

Bonanza is a leading Financial Services & Brokerage House. It also distributes mutual
funds of various AMCs

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 2.2 COMPANY PROFILE

Introduction

NJ Wealth – Financial Products Distributers Network, One Of India‟s leading and most successful
network of distributors in the financial services industry.

Started in 2003, NJ Wealth seeks to reach out to the common man and extend the opportunity to
create wealth through an empowered network of financial products distributors – the NJ Wealth
Partners. To its Partners, NJ Wealth provides a full service, comprehensive business platform with
end-to-end solutions critical for success in financial products distribution practice. With its
compelling set of offerings covering every area of distribution practice, NJ Wealth has managed to
successfully transform the lives of many small and big distributors.

To the common man, NJ Wealth offers a comprehensive wealth management platform with a wide
choice of financial and non-financial products. Backed by high levels of excellence in operational
and service standards, NJ Wealth offers customers of its Partners, with solutions that truly make a
difference.

Driven by the strong vision of 'Creating Wealth and Transforming Lives', NJ Wealth's constant
endeavor is to build on the ideas that are meaningful & effective in scaling business challenges,
seizing available opportunities and serving the interests of the customer.

The NJ Wealth family has grown steadily and today it has over 19,000 NJ Wealth Partners, spread
across 97 branches in 21 states in India with over 19 lac + investors, and over INR 13,500crores of
mutual fund assets under advice. Irrespective of the numbers though, it is trust in us which fuels
the passion for creating solutions with excellence that touch many lives, day after day.

Lineage

NJ Wealth – Financial Products Distributors Network has a strong lineage as a part of NJ Group.
NJ India Invest Pvt. Ltd. is today the flagship company of NJ Group, the journey of which began in
1994. The idea then was to cater to the growing needs of customers in an evolving financial

24
services industry. Today, with nearly two decades of untiring efforts, NJ has not only managed to
build a strong business, but has also earned the trust and respect of various stakeholders in the
industry. The financial products distribution business of NJ Wealth Network, formerly known as NJ
Fundz Network, lies at the heart of NJ Group.

Over the last few years, NJ Group has expanded into other businesses, and today it also has
presence in businesses of asset management, real estate, insurance broking, training &
development and technology. NJ Wealth leverages from opportunities and a service offered by the
group‟s other businesses to seamlessly add more value to its customers. NJ Wealth also draws
great inspiration from the vision of NJ Group, which is to be leaders in all its businesses driven by
customer satisfaction, commitment to excellence and passion for continued value creation for all
stakeholders.

VISION & MISSION OF NJ India invest:

Vision:

To be the leader in our field of business through,

Total Customer Satisfaction

Commitment to Excellence
Determination to Succeed with strict adherence to compliance
Successful Wealth Creation of our Customers

Mission:

Ensure creation of the desired value for our customers, employees and associates, through
constant improvement, innovation and commitment to service & quality. To provide
solutions which meet expectations and maintain high professional & ethical standards along
with the adherence to the service commitments.

Philosophy

At NJ our service and investing philosophy inspire and shape the thoughts, beliefs, attitude,
actions and decisions of our employees. If NJ would resemble a body, our philosophy would
Service philosophy:

25
Our primary measure of success is customer satisfaction ….

We are committed to provide our customers with continuous, long-term improvements and value-
additions to meet the needs in an exceptional way. In our efforts to consistently deliver the best
service possible to our customers, all employees of NJ will make every effort to:

 Think of the customer first, take responsibility, and make prompt service to the customer a
priority
 Deliver upon the commitments & promises made on time
 Anticipate , visualize , understand , meet our customer need
 Bring energy, passion & excellence in everything we do

Investing philosophy

We aim to provide Need –based solutions for long-term wealth creation

 Clients want Need –based solutions, which fits them

 Long term wealth creation is simple and straight
 Asset-Allocation is the ideal & the best way for the Long term wealth creation
 Educating and disclosing all the important facets which the customer need to be aware of,
is important
 The solution must be unbiased ,measurable and flexible

At NJ our aim is to earn the trust and respect of the employees, customers, partners and the
community at large by following our service and investing philosophy with commitment and without
exceptions.

26
Management Team

Mr. Neeraj Choksi & Mr. Jignesh Desai (R) (Promoters) are the two first generation
entrepreneurs who began the journey of NJ in 1994. The promoters of NJ Group were friends
since their college years and the bond between Mr. Neeraj Choksi& Mr. Jignesh Desai has been
instrumental in the success of NJ

Driven by their passion for financial well-being of customers & the mission for transforming lives,
the promoters started NJ Wealth, previously known as - NJ Fundz Network, in the year 2003. With
their strong vision and guidance, NJ Wealth Financial Products Distributors Network is on the
forefront of innovation & growth. Both believe that the trust of their distributors and investors has
played a very important role in NJ's journey. The desire is to help the masses access the best of
the financial products & services and thereby positively transform their lives. This is also the
responsibility and the vision that the entire team at NJ believes in.

Leadership Team:

The senior leadership team at NJ brings together a team of people with wide experience and
knowledge in the financial services domain. The key senior members of NJ are:

Sales Team

Mr. Misbah Baxamusa

Mr. Manish Gadhvi

Mr. Prashant Kakkad

Mr. Safaraz Patel

Mr. Tushar Bhajantri

Mr. Vinay Bariya

Product Team

Mr. Husaini Kanchwala

Mr. Jignesh Desai

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Corporate Governance

NJ believes that trust is key for sustainability of any business. As a part of the NJ Group, NJ
Wealth has a very strong philosophy of corporate and self governance. They believe that they
have great duty towards to all their stakeholders – employees, customers and vendors to business
partners, authorities, and the community at large. NJ Wealth is committed to ensure that the
interests of all stakeholders are best served with true spirit of prudent, rationale and ethical
business practices.

As a part of NJ Group, NJ Wealth has strong policy, process, systems oriented culture and
practices, which collectively cover various aspects of governance. NJ Wealth is also committed to
follow appropriate due diligence, compliance and risk management practices in all its activities. It is
committed to provide its customers with the highest feasible quality of services. The customers are
requested to raise any complaint or grievance through the right channels communicated for quick
resolution.

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 3.1 PRODUCT BASKET

The following is broadly the product basket available to NJ Wealth Partner on eligibility /
registration basis. The NJ Wealth Distributors can engage in active distribution of the following
products to their clientele through NJ.

1. Mutual Funds

NJ has tie-ups with all Asset Management Companies (AMCs) and all mutual funds
schemes are part of the product basket. Eligible Partners can offer any mutual fund scheme
to their client from day one of their association with NJ. The customers have a single
window access to any mutual fund product / scheme they would like to access.

2. Capital Market – Direct Equity & ETFs

NJ is a SEBI registered member for NSE & BSE and capital markets. Clients of NJ Demat &
Trading Account service have access to capital market products of direct equity stocks and
Exchange Traded Funds (ETFs). One can undertake transaction online or through Call &
Transact facility.

3. Fixed Income

NJ has also entered into tie-ups with leading companies / institutions for distribution of fixed
income products, namely Non-Convertible Debentures, Infrastructure / RBI Bonds,
Company Deposits, etc. The availability of fixed income products in addition to mutual funds
makes the product basket even more attractive.

4. Portfolio Management Services (PMS)

NJ has its own PMS offerings with NJ Advisory Services Pvt. Ltd., a group company, being
a PMS Service provider. The existing strategies have mutual funds as the underlying, one of
very few in the industry. In addition to this, PMS products by other leading PMS Service
providers also regularly form a part of the product basket with Partners. Clients can
subscribe to the PMS products of NJ / other providers through their Partners. Access to NJ
PMS products is exclusively available for NJ Partners only.

5. Real Estate

In addition to the investment products, NJ Partners and clients also have access to the real
estate properties across India. NJ regularly enters into tie-ups with leading developers in
India for distribution of their products. In addition to this, exclusive projects handled by NJ
Realty are available to clients only through eligible NJ Partners. The exclusive projects are
those where NJ Realty is actively engaged in project management, execution and/or
distribution.
29
TYPES OF MUTUAL FUND

Diagram No. 2

30
Schemes according to maturity period:-

A mutual fund scheme can be classified into open-ended scheme or close ended scheme
depending on its maturity period.

 Open-ended fund/scheme :-

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

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

 Categorization by investment objective :-

A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended
schemes as described earlier. Such schemes may be classified mainly as follows:

1) Growth/Equity oriented schemes :-

The aim of growth funds is to provide capital appreciation over the medium to long- term.
Such schemes normally invest a major part of their corpus in equities. Such funds have
comparatively high risks. These schemes provide different options to the investors like
dividend option, capital appreciation, etc and the investors may choose an option depending
on their preferences. The investors must indicate the option in the application form. The
mutual funds also allow the investors to change the options at a later date. Growth schemes
are good for investors having a long-term outlook seeking appreciation over a period of
time.

31
2) Diversified Equity Fund : -

Diversified equity funds are the most popular among investors. They invest in many stocks
across many sectors, and because they have the freedom to chop and churn their portfolios
as they like, diversified equity funds area good proxy to the stock market. If a general
exposure to equities is what you want, they are a good option. They can invest in all listed
stocks, and even in unlisted stocks. They can invest in which ever sector they like, in
whatever ratio they like.

3) Equity :-

Linked Savings Schemes (ELSS): Equity ± linked savings schemes (ELSS)are diversified
equity funds that additionally offer income tax benefits to individuals .ELSS is one of the
many section 80c instruments, along with the more popular debt options like the PPF, NSC
and infrastructure bonds. In this Section 80c grouping .ELSS is unique. Being the only
instrument to offer a total equity exposure

4) Index Fund: -

An index fund is a diversified equity fund; with a difference- a fund manager has absolutely
no say in stock selection. At all times, the portfolio of an index fund mirrors an index, both in
its choice of stocks and their percentage holding. As of March 2004, equity index funds
tracked either the Sensex or the Nifty. So, an index fund that mirrors the Sensex will invest
only in the 30 Sensex stocks, which too in the same proportion as their weight age in the
index.

5) Sector Fund:-

Sector funds invest in stocks from only one sector, or a handful of sectors. The objective is
to capitalize on the story in the sectors, and offer investors a window to profit from such
opportunities. It is a very narrow focus, because of which sector funds are considered the
riskiest among all equity funds.

6) Mid - Cap Fund:-

These are diversified funds that target companies on the fast ±growth trajectory. In the long
run, share prices are driven by growth in a company‟s turnover and profits. Market players
refer to them as µmid-sized companies and µmid-cap stocks with size in this context being
benchmarked to a company‟s market value. So, while a typical large cap stock would have
a market capitalization of over Rs 1,000crores, a mid-cap stock would have a mark Mutual

32
 Fund Equity schemes have delivered very attractive returns in last 5 years, giving over 51%
returns annually.

 DEBT FUNDS :-

These Funds invest a major portion of their corpus in debt papers. Government authorities,
private companies, banks and financial institutions are some of the major issuers of debt
papers. By investing in debt instruments, these funds ensure low risk and provide stable
income to the investors.

 Debt funds are further classified as

1.) Gilt Funds: -

Invest their corpus in securities issued by Government, popularly known as go I debt
papers. These Funds carry zero Default risk but are associated with Interest Rate risk.
These schemes are safer as they invest in papers backed by Government.
2.) Income Funds: -
Income funds aim to maximize debt returns for the medium to longer term. Invest a major
portion into various debt instruments such as bonds, corporate debentures and Government
securities.
3.) MIPs: -
Invests around 80% of their total corpus in debt instruments while the rest of the portion is
invested in equities. It gets benefit of both equity and debt market. These scheme ranks
slightly high on the risk-return matrix when compared with other debt schemes.
4.) Short Term Plans (STPs) : -
Meant for investors with an investment horizon of 3-6 months. These funds primarily invest
in short term papers like Certificate of Deposits.(CDs) and Commercial Papers (CPs). Some
portion of the corpus is also invested incorporate debentures
5.) Liquid Funds :-
Also known as Money Market Schemes, These funds are meant to provide easy liquidity
and preservation of capital. These schemes invest in short term instruments like Treasury
Bills, inter-bank call money market etc. These funds are meant for short-term cash
management of corporate houses and are meant for an investment horizon of 1day to 3
months. These schemes rank low on risk-return.

6.) Matrix and are considered to be the safest amongst all categories of mutual funds.

33
7.) Floating Rate Funds: -

These income funds are more insulated from interest rate than their conventional peers. In
other words, interest rate changes, which cause the NAV of a conventional debt fund to go
up or down, have little, or no, impact on NAVs of floating rate funds.

 HYBRID FUNDS :-

 BALANCED FUNDS:-

These funds, as the name suggests, are a mix of both equity and debt funds. The aim of
balanced funds is to provide both growth and regular income as such schemes invest both
in equities and fixed income securities in the proportion indicated in their offer documents.
These are appropriate for investors looking for moderate growth. They generally invest 40-
60% in equity and debt instruments. These funds are also affected because of fluctuations
in shares prices in the stock markets. However, NAVs of such funds are likely to be less
volatile compared to pure equity funds. Following are balanced funds classes:-a. Debt-
oriented funds -Investment below 65% in equities .b. Equity-oriented funds -Invest at least
65% in equities, remaining in debt.

 Growth and Income Fund: -

Funds that combine features of growth funds and income funds are known as Growth-and-
Income Funds. These funds invest in companies having potential for capital appreciation
and those known for issuing high dividends. The level of risks involved in these funds is
lower than growth funds and higher than income funds.

 Asset Allocation Fund: -

Mutual funds may invest in financial assets like equity, debt, money market or non-financial
(physical) assets like real estate, commodities etc.. Asset allocation funds adopt a variable
asset allocation strategy that allows fund managers to switch over from one asset class to
another at any time depending upon their

 Outlook for specific markets. In other words, fund managers may switch over to equity if
they expect equity market to provide good returns and switch over to debt if they expect
debt market to provide better returns.

34
 PART – II
PRIMARY STUDY

35
 4.1 INTRODUCTION OF THE SYUDY

In financial markets, “expectations” of the investors play a vital role. They influence the price of the
securities; the volume traded and determines quite a lot of things in actual practice. These
„expectations‟ of the investors are influenced by their “perception” and humans generally relate
perception to action. One of the important cognitive factors of human behavior is perception. The
purchase decisions for financial assets should be made on the basis of investor beliefs regarding
the future return and risk of those assets otherwise it leads to cognitive dissonance .We find ample
proof for the wide prevalence of such a psychological state among Mutual Fund (MF) investors in
India.

Mutual Funds provide a platform for a common investor to participate in the Indian capital market
with professional fund management irrespective of the amount invested. The Indian mutual fund
industry is growing rapidly and this is reflected in the increase in Assets under management of
various fund houses. Mutual fund investment is less risky than directly investing in stocks and is
therefore a safer option for risk averse investors. Monthly Income Plan funds offer monthly returns
and invest majorly in debt oriented instruments with little exposure to equity. However it has been
observed that most of the investors are not aware of the benefits of investment in mutual funds.
This is reflected from the study conducted in this research paper. This paper makes an attempt to
identify various factors affecting perception of investors regarding investment in Mutual funds. The
findings will help mutual fund companies to identify the areas required for improvement in order to
create greater awareness among investors regarding investment in mutual funds.

A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money, thus collected, is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciation realized is shared by its unit holders in proportion to the number of units
owned by them. Thus 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.

36
Monthly Income Plans or MIPs invest maximum of their total corpus in debt instruments while they
take minimum exposure in equities. It gets benefit of both equity and debt market. These schemes
rank slightly high on the risk-return matrix when compared with other debt schemes.

There is considerable amount of research being done regarding investment in mutual funds.
However very little research has been done to study the perception of investors regarding
investment in mutual funds especially MIP funds.

37
Risk Profile

Diagram No. 3

38
 RISK INVOLVED IN MUTUAL FUND:

Diagram No. 4

 THE RISK-RETURN TRADE-OFF : -

 The most important relationship to understand is the risk-return trade-off. Higher the risk
greater the returns/loss and lower the risk lesser the returns/loss. Hence it is up to you,
the investor to decide how much risk you are willing to take. In order to do this you must
first be aware of the different types of risks involved with your investment decision.

 MARKET RISK: -

Sometimes prices and yields of all securities rise and fall. Broad outside influences
affecting the market in general lead to this. This is true, may it be big corporations or
smaller mid-sized companies. This is known as Market Risk. A Systematic Investment
Plan („SIP´) that works on the concept of Rupee Cost Averaging („RCA´) might help
mitigate this risk.

39
  CREDIT RISK : -

The debt servicing ability (may it be interest payments or repayment of principal) of a

company through its cash flows determines the Credit Risk faced by you. This credit risk is
measured by independent rating agencies like CRISIL who rate companies and their paper.
An „AAA‟ rating is considered the safest whereas a rating is considered poor credit quality. A
well-diversified portfolio might help mitigate this risk.

 INFLATION RISK: -

Things you hear people talk about: Rs. 100 today is worth more than Rs. 100
tomorrow.´³Remember the time when a bus ride costed 50 paisa? ´Mehangai Ka Jamana
Hai.´ The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot of
times people make conservative investment decisions to protect their capital but end up
with a sum of money that can buy less than what the principal could at the time of the
investment. This happens when inflation grows faster than the return on your investment. A
well-diversified portfolio with some investment in equities might help mitigate this risk.

 INTEREST RATE RISK:-

In a free market economy interest rates are difficult if not impossible to predict. Changes in
interest rates affect the prices of bonds as well as equities. If interest rates raise the prices
of bonds fall and vice versa. Equity might be negatively affected as well in a rising interest
rate environment. A well-diversified portfolio might help mitigate this risk.

 POLITICAL/GOVERNMENT POLICY RISK:-

Changes in government policy and political decision can change the investment
environment. They can create a favorable environment for investment or vice versa.

 LIQUIDITY RISK : -

Liquidity risk arises when it becomes difficult to sell the securities that one has purchased.
Liquidity Risk can be partly mitigated by diversification, staggering of maturities as well as
internal risk controls that lean towards purchase of liquid securities.

40
 ADVANTAGES OF MUTUAL FUND:

 Portfolio Diversification

 Less Risk

 Low Transaction Costs

 Liquidity

 Choice of Schemes

 Transparency

 Flexibility

 Safety

DISADVANTAGE OF MUTUAL FUND:

 Costs Control Not in the Hands of an Investor

 No Customized Portfolios

 Difficulty in Selecting a Suitable Fund Scheme:

 Delay in Redemption:

 Non-availability of loans:

41
 4.2 PROBLEM STATEMENT AND IMPORTANCE OF THE STUDY

Risk perception among investors towards Mutual Fund

The importance of the study is to provide some useful information for investors and some finding
can help the investors in risk about investing in Mutual Fund. Lack of knowledge about investing in
Mutual Fund.

42
 4.3 OBJECTIVES OF THE STUDY

 To study the investment pattern of Indian Investor.

 To find out the awareness level of investors regarding mutual funds.

 To find the type of scheme of mutual fund preferred by investor.

 To find out the importance of factors like liquidity, higher return, company
reputation and other factors that influence investment decision of mutual fund holder

 To find out awareness level of investors regarding Monthly Income Plan fund.

 To ascertain the most preferred factor for investing in MIP fund.

43
 5. RESEARCH METHODOLOGY

5.1 Research Design:

The Research design used in this study is Descriptive Design.

5.2 Source of Data:

The Source of data use in this study is:

Primary Study

5.3 Data Collection Method:

The Survey method is used for the data collection. The data which is collected directly from
respondent to the best of my knowledge and belief of such research is Primary data. My analysis
is mainly based on the responses of the respondents.

5.4 Population:

The population of this study is Investors.

5.5 Sampling Method:

There are various methods used to collect a sample. In this survey conducted by me I have
used simple random sampling method.

5.6 Sample Size:

Here the sample size of 100 respondents is been covered by the above sampling method.

44
5.7 Data collection instrument:

There are various types of instruments or tools used to conduct the survey or for the
purpose of data collection. Of which in this survey the tool for data collection is questionnaire.

5.8 Model Specification / Data Processing:

Microsoft Excel

45
 6. DATA ANALYSIS AND INTERPRETATION

1. Preference for different investment options

Table No: 2

Investment Frequency
Mutual Fund 84
PPF 22
Bond 9
Bank Fixed Deposit 59
Share 16

Graph No: 1

90 84
80
70
59
60
Frequency

50
40
30 Frequency
22
20 16
9
10
0
Mutual PPF Bond Bank Fixed Share
Fund Deposit
Investment

From the above graph we can say that that out of 100 respondents, most of respondents i.e. 84
respondents preferred Mutual Fund where as i.e. 9 respondents preferred bond which is least
preferred investment option.

46
 2. Ranking the following option based on risk.

Table No: 3

Product Rank
1 2 3 4 5
Mutual Fund 28 32 19 16 5
Bank Fixed Deposit 6 13 13 31 37
PPF 9 8 26 23 34
Share 38 29 14 12 7
Bond 19 18 29 18 16

Graph No: 2

40 38 37
34
35 32 31
28 29 29
30 26
23
Frequency

25 Mutual Fund
19 18 19 18
20 16 16 Bank Fixed Deposit
13 13 14
15 12 PPF
9 8
10 6 7 Share
5
5 Bond
0
1 2 3 4 5
Rank(Based on Risk)

Above graph shows that there is higher risk in Share which given rank 1 st where as lower risk in
Bank Fixed deposit

47
 3. Reason behind investing in mutual fund.

Table No: 4

Reasons Frequency
Diversification 71
Professional approach 35
Time saving 19
Flexibility 26
Hassle free investment 6

Graph No: 3

80
71
70
60
Frequency

50
40 35
30 26 Frequency
19
20
10 6

0
Diversification Professional Time saving Flexibility Hassle free
approach investment
Reasons

From the above graph we can say that most of respondents i.e. 71 consider Diversification reason
behind investment and least respondents i.e. 6 consider Hassle free investment in
mutual fund

48
 4. Time period of holding Mutual Funds' Investments

Table No: 5

Period (Years) Frequency

Less than 1 9
1 to 3 24
3 to 5 48
More than 5 19

Graph No: 4

60

50 48

40
Frequency

30
24
19 Frequency
20
9
10

0
Less than 1 1 to 3 3 to 5 More than 5
Period(Years)

From the above graph we can say that 48% respondents hold for 3 to 5 years whereas only 9%
hold for less than 1 year.

49
 5. Most preferred Mutual Fund Plan

Table No: 6

Plan Frequency
Balance plan 39
Equity plan 31
Income plan 25
Others 5

Graph No: 5

45
39
40
35 31
30
25
Frequncy

25
20
15 Frequency
10
5
5
0
Balance Equity plan Income plan Others
plan
Plan

From the above graph we can say that 39 respondents select Balance plan whereas 5
respondents select others plan (Like short term, guilt fund).

50
 6. A risk affects Mutual Funds.

Table No: 7

Risk Frequency
Systematic Risk 80
Unsystematic Risk 20

Graph No: 6

90
80
80
70
60
Frequency

50
40
Frequency
30
20
20
10
0
Systematic Risk Unsystematic Risk
Risk

From the above graph we can say 80 respondents are systematic risk is affected and 20
respondents are unsystematic risk are affected mutual fund.

51
 7. Investors‟ preference for the safest Investment option.

Table No: 8

Investment Frequency
Mutual Fund 8
Bank Deposit 48
Gold 1
Stock Market 3
Post Office 26
Real Estate 2
Insurance 11
Others 1

Graph No: 7

60

50 48

40
Frequency

30 26

20 Frequency
11
10 8
1 3 2 1
0
Mutual Bank Gold Stock Post Real Insurance Others
Fund Deposit Market Office Estate
Investment

From the above graph we can say i.e. 48 respondents are selected Bank Deposit is a safest
investment and least are safest investment is a gold i.e. 1 respondents.

52
 8. Primary sources about Mutual Funds as an investment option.

Table No: 9

Sources Rate
1 2 3 4 5
Television 20 29 28 14 9
Internet 12 18 31 27 12
Newspaper/Journals 6 29 29 23 13
Friends/Relatives 4 12 24 39 21
Sales Representatives 2 6 15 30 47

Graph No: 8

50 47
45
39
40
35 31 30
Frequency

29 29 28 29
30 27 Television
24 23
25 21
Internet
20
20 18 Newspaper/Journals
15 14
15 12 12 12 13 Friends/Relatives
9
10 6 6 Sales Representatives
4
5 2
0
1 2 3 4 5
Rank

From the above the graph we can say strong influence is i.e. 47 respondents are selected sales
representatives and minimum influence is i.e. 2 respondents are select television.

53
 9. Investing your money, which factors affect your decision

Table No: 10

Factors Rate
1 2 3 4 5
Liquidity 7 27 38 20 8
High Return 7 6 17 39 31
Professional Management 7 18 39 19 17
Diversification 3 12 29 33 23
Brand Image 2 11 35 26 26
Price 4 16 32 29 19
Risk 1 16 30 24 29
Time 2 9 33 38 18
Tax 1 13 31 29 26
Flexibility 5 11 25 44 15
Charges and fees 2 28 33 24 13

Graph No: 9

50 44
45 38 39 39 38
40 33 35 33 33
32
Frequency

35 31 29 29 30 29 3129
27 2626 26 28
30 23 24 25 24
25 20 18 1917 19 18
20 17 16 16 15 Series1
12 11 13 11 13
15 8 9
10 7 76 7 5 Series2
3 2 4 2 2
5 1 1
0 Series3
Series4
Series5

Factors

From the above graph we can say high return and flexibility are higher in a investing the money.

54
 10. Factor prevent you investing in Mutual Fund

Table No: 11

Factors Frequency
Bitter past experience 18
Lack of knowledge 29
Difficulty in selection of scheme 8
Lack of confidence in service being provided 20
Inefficient investment advisors 20
Other 5

Graph No: 10

35
29
30
25
Frequency

20 20
20 18
15
10 8
5
5 Frequency
0
Bitter past Lack of Difficulty in Lack of Inefficient Other
experience knowledge selection of confidence investment
scheme in service advisors
being
provided
Factors

From the above graph we can say more respondents are selected lack of knowledge is prevent
investing mutual fund.

55
 11. Age

Table No: 12

Age Frequency
Below 30 28
30-50 61
Above 50 11

Graph No. 11

70
61
60

50
Frequency

40

30 28
Frequency

20
11
10

0
Below 30 30-50 Above 50
Age

From the above graph we can say that 61% respondents are under the age of 30-50 years while
only 11% respondents are above 50 years.

56
 12. Gender

Table No: 13

Gender Frequency
Male 77
Female 23

Graph No: 12

90
80 77

70
60
Frequency

50
40
Frequency
30 23
20
10
0
Male Female
Gender

From the above graph we can say that 77% respondents are male while rest of are female which
is 23%.

57
 13. Occupation

Table No: 14

Occupation Frequency
Job 54
Business 35
Other 11

Graph No. 13

60
54

50

40 35
Frequency

30
Frequency
20
11
10

0
Job Business Other
Occuption

From the above graph we can say that 54% respondents do job whereas 11% do othe than job
and business.

58
 14. Income

Table No: 15

Income Frequency
Less than 100000 5
100000 to 300000 72
300000 to 500000 18
More than 500000 5

Graph No: 14

80
72
70
60
Frequency

50
40
30 Frequency
18
20
10 5 5
0
Less than 100000 to 300000 to More than
100000 300000 500000 500000
Income

From the above graph we can say that 72% of respondents who fall under the range of 100000 to
300000 while 5% have more than 500000 incomes.

59
 7. Results and Findings

 84 investors to a preferred the Mutual Fund investing.

 59 investors to a preferred the Bank Fixed Deposit.

 More risky investment is a 1st rank share and 2nd rank is a Mutual Fund.

 Diversification is best reason to investing in Mutual fund

 3 to 5 years are a most preferred the investors in Mutual Fund.

 Balance plan (Debt plan) is best to another investing plan.

 80 investors‟ responses to a systematic risk are affecting Mutual Fund.

 Bank Fixed Deposit is most of selected response is safest investment option to another
investment.

 Sales Representatives is a way to knowledge about Mutual Fund.

 High Return and Flexibility this are factors affect to invest investor‟s money.

 More of response are selected lack of knowledge is prevent to investing in Mutual Fund.

60
 8. Limitations of the Study

 The Present study is based upon the results of survey conducted 100 mutual fund
investors. The implications of the study are subject to the limitations of sample size,
psychological and emotional characteristics of surveyed population.

 As the analysis is based on primary as well as secondary data, possibility of unauthorized

information can be avoided.

 Sometimes investors not responding to this survey.

 Investors not gave their time to fill up the questionnaire.

61
 9. Conclusion/Suggestions

 After analyzing & interpreting the data received from the respondents, it may be concluded
that maximum investors are aware about Banks & LIC investment avenues only. But not
aware of mutual fund because the investors are a lake of knowledge in investing mutual
fund.

 Moreover here investors fear for loosing their money in market. As they are less risk taking
people , so there require more awareness among all the investors and change their
negative perception for the mutual fund there off .

62
 ANNEXURE

I, Niket Shah, student of C. K. Shah Vijapurwala Institute of Management, is undertaking a

research project on “Risk perception among investors towards mutual fund.” I assure you that
this information will be confidential and used for academic purpose only. I kindly request you to fill
up the questionnaire.

1. Which are investment do you preferred?

[ ] Mutual fund [ ] Bank Fixed deposit

[ ] PPF [ ] Share

[ ] Bond

2. Rank the following option based on risk?

[ ] Mutual fund [ ] Share

[ ] Bank fixed deposit [ ] Bond

[ ] PPF

3. What are the reason behind investing in mutual fund ?

[ ] Diversification [ ] Flexibility

[ ] Professional approach [ ] Hassle free investment

[ ] Time saving

4. How long would you like to hold your Mutual Funds' Investments?

[ ] Less than 1 [ ] 3 to 5

[ ] 1 to 3 [ ] More than 5

5. Which Mutual Fund Plan do you consider the best?

[ ] Balance plan [ ] Income plan

[ ] Equity plan [ ] Others

63
 6. What do you think which risks usually affects Mutual Funds? *Systematic risk is the risks
inherent to the entire market segment as interest rates and unsystematic risks are specific
risks as NEWS that affects specific stock.

[ ] Systematic Risk [ ] Unsystematic Risk

7. Which among the following is the safest Investment option?

[ ] Mutual Fund [ ] Stock Market [ ] Insurance

[ ] Bank Deposits [ ] Post Office [ ] Others ____________

[ ] Gold [ ] Real Estate

8. Which are the primary sources of your knowledge about Mutual Funds as an investment
option?
Please rank them on a scale of 1-5 with 1 representing minimal influence and 5
representing Strong influence.

Sources 1 2 3 4 5
Television
Internet
Newspaper/Journals
Friends/Relatives
Sales
Representatives

64
 9. While investing your money, how these factors affect your decision?
Please rank them on a scale of 1-5 with 1 representing minimal influence and 5
representing Strong influence.

Factors 1 2 3 4 5
Liquidity
High Return
Professional
Management
Diversification
Brand Image
Price
Risk
Time
Tax
Flexibility
Charges and fees

10. Which factor prevents you from investing in Mutual Fund?

[ ] Bitter past experience [ ] Lack of confidence in service being provided

[ ] Lack of knowledge [ ] Inefficient investment advisors
[ ] Difficulty in selection of scheme [ ] Other _______________

Name: ______________________________________________

Age: [ ] Below 30 [ ] 30-50 [ ] Above 50

Gender: [ ] Male [ ] Female

Occupation: [ ] Job [ ] Business [ ] Other

Qualification: _______________

Income: [ ] Less than 1, 00,000 [ ] 1, 00,000 to 3, 00,000

[ ] 3, 00,000 to 5, 00,000 [ ] More than 5, 00,000

65
 BIBLIOGRAPHY

Websites:

1. http://www.njgroup.in/aboutus.php
2. http://www.njwealth.in/njwealth/invservices.fin?cmdAction=loadProductB
asket
3. http://www.njwealth.in/njwealth/invservices.fin?cmdAction=loadPartners
4. http://www.njwealth.in/njwealth/invknowledge.fin?cmdAction=loadFunda
mentals

66
 PLAGIARISM REPORT

Report
D i g i t a l s i g n e d

Author: Niket
Processing date: Fri, 25.7.2014 19:16:32 CEST

A total of 432 fragments were analysed. As a result 42 fragments (9.7%) were found in other
documents. In the document preview below the fragments are marked light blue and clickable.

Cross reference documents

Following list of found documents is grouped by document titles and ordered by found fragements.
With a mouseclick on "x fragments" the relevant fragments in the document are colored blue and the

window scrolls to the first location. Click on "x fragments" again resets the special marks.

13 fragments were found in a text with the title: "Mutual funds in India", located on:
http://en.wikipedia.org/wiki/Mutual_funds_in_India

11 fragments were found in a text with the title: "Rayleigh Distribution Definition", located on:
http://www.dol.gov/ebsa/pdf/savingsfitness.pdf
http://ioboa.in/rv31032010.pdf
http://www.bayeconfor.org/media/files/pdf/TiesThatBindFinalWeb.pdf
http://goapsc.gov.in/judgement.pdf
http://www.hydro.mb.ca/regulatory_affairs/electric/gra_08_09/information_requests/Appendix_48-
AirSource Power Fund-Prospectus_dated_October 28-2004.pdf
http://cop.senate.gov/documents/cop-021110-report.pdf
http://www.aapna.org/Ayurvedic Surgical Management of Hemorrhoids.pdf
http://ohio-olca.org/contrib/conf/documents/KCBIB2009.doc

4 fragments were found in a text with the title: "Mutual fund", located on:
http://en.wikipedia.org/wiki/Mutual_fund

1 fragment found in a text with the title: "Indo-U.S. FTA: Prospects for Audiovisual Services",
located on:
http://www.icrier.org/pdf/Working_Paper_192.pdf

67
1 fragment found in a text with the title: "U.S. and International Responses to the Global Spread
of Avian Flu: Issues for Congress", located on:
http://digital.library.unt.edu/ark:/67531/metacrs9021/m1/1/high_res_d/
http://digital.library.unt.edu/ark:/67531/metacrs8776/m1/1/high_res_d/

1 fragment found in a text with the title: "Electricity sector in India", located on:
http://en.wikipedia.org/wiki/Electricity_sector_in_India

1 fragment found in a text with the title: "Trade in Financial Services: India's Opportunities and
Constraints", located on:
http://www.eSocialSciences.com/data/articles/Document1362010400.2680323.pdf

1 fragment found in a text with the title: "Must Boards Go Overboard? An Economic Analysis of
the Effects of Burgeoning Statutory Liability on the Role of Directors in Corporate
Governance", located on:
http://repository.upenn.edu/cgi/viewcontent.cgi?article=1016&context=law_series

1 fragment found in a text with the title: "Enmeshment and acculturative stress in Chinese
immigrant families in Canada", located on:
https://circle.ubc.ca/bitstream/handle/2429/11902/ubc_2001-0576.pdf?sequence=1

1 fragment found in a text with the title: "Bank ownership type and banking relationships",
located on:
http://www-
wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2006/02/22/000016406_20060222120258/R
endered/PDF/wps3862.pdf

1 fragment found in a text with the title: "Linking greater sage-grouse habitat use and
suitability across spatiotemporal scales in central Oregon", located on:
http://ir.library.oregonstate.edu/xmlui/bitstream/handle/1957/11278/Thesisfinal.pdf?sequence=1

1 fragment found in a text with the title: "Further evidence on the link between finance and
growth : an international analysis of community banking and economic performance", located
on:
http://www-
wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2003/08/30/000094946_03081604010182/R
endered/PDF/multi0page.pdf

1 fragment found in a text with the title: "Sedimentology and Stratigraphy of the Upper
Cretaceous-Paleocene El Molino Formation, Eastern Cordillera and Altiplano, Central Andes,
Bolivia: Implications for the Tectonic Development of the Central Andes", located on:
http://etd.lsu.edu/docs/available/etd-0619102-182614/unrestricted/Fink_thesis.pdf
68
1 fragment found in a text with the title: "Development and application of a high throughput cell
based assay to identify novel modulators of ERK1/2 activation and,Functional
characterisation of the candidate Radial spokehead like (Rshl1)", located on:
http://archiv.ub.uni-
heidelberg.de/volltextserver/volltexte/2006/6929/pdf/102606_meherthesisfinal.pdf

1 fragment found in a text with the title: "Electron spin resonance of free radicals formed from
DNA and its constituents on X-ray irradiation : influence of matrices, additives, dose,
temperature and time", located on:
http://scidok.sulb.uni-saarland.de/volltexte/2009/2083/pdf/CPALPhD2009.pdf

1 fragment found in a text with the title: "Declaration /asmi_jrangarajan.pdf", located on:
http://wbs-med.imib.rwth-aachen.de/asmi/asmi_jrangarajan.pdf

1 fragment found in a text with the title: "Clinico-diagnosis and therapeutic management of
bacterial and fungal infections of canine ear with special reference to molecular
characterization of certain otic pathogens", located on:
http://openmed.nic.in/2238/01/Dr._Sandeep_Pundir_M.V.Sc._Thesis.pdf

1 fragment found in a text with the title: "Modified Neural Network Algorithms for Predicting
Trading Signals of Stock Market Indices", located on:
http://downloads.hindawi.com/journals/ads/2009/125308.pdf

1 fragment found in a text with the title: "Value of Returns and Costs of Land Degradation: a
Consultancy Report for Theme 6.1 to the National Land and Water Resources Audit", located
on:
http://www.clw.csiro.au/publications/consultancy/2002/Theme6.1_Audit_Report_Vol1.pdf

1 fragment found in a text with the title: "Further evidence on the link between finance and
growth: An international analysis of community banking and economic performance", located
on:
http://129.3.20.41/eps/fin/papers/0404/0404017.pdf
http://129.3.20.41/eps/fin/papers/0404/0404016.pdf

1 fragment found in a text with the title: "INFLATION AND MACHINERY COST BUDGETING",
located on:
http://ageconsearch.umn.edu/bitstream/30023/1/11020083.pdf

1 fragment found in a text with the title: "Further evidence on the link between finance and
growth: an international analysis of community banking and economic performance", located
on:
http://www.federalreserve.gov/pubs/feds/2003/200347/200347pap.pdf
69
1 fragment found in a text with the title: "A Patent and Trademark Office review.", located on:
http://www.uspto.gov/about/stratplan/ar/1994annualreport_pg23-24.pdf

1 fragment found in a text with the title: "A strategic analysis of a tourism company", located on:
http://ir.lib.sfu.ca/bitstream/1892/9038/1/b46406773.pdf

1 fragment found in a text with the title: "It All Adds Up", located on:
http://ecommons.library.cornell.edu/bitstream/1813/70/2/All Adds Up

1 fragment found in a text with the title: "Investing basics : getting started", located on:
https://ospace.scholarsportal.info/bitstream/1873/9651/1/278990.pdf

1 fragment found in a text with the title: "Mutual funds what you need to know.", located on:
https://ospace.scholarsportal.info/bitstream/1873/10029/1/279010.pdf
https://ospace.scholarsportal.info/bitstream/1873/2616/1/253948.pdf

1 fragment found in a text with the title: "Product life cycle and determinant attributes : an
investigation of the Japanese structural panel market", located on:
https://circle.ubc.ca/bitstream/handle/2429/11608/ubc_2001-0290.pdf?sequence=1

1 fragment found in a text with the title: "A report on a small collection of shrimps from the
Kenya National Marine Parks at Malindi, with notes on selected species", located on:
http://www.repository.naturalis.nl/document/149135

1 fragment found in a text with the title: "Parallel Key Encryption for CBC and Interleaved CBC",
located on:
http://www.ijcaonline.org/volume2/number1/pxc387867.pdf

1 fragment found in a text with the title: "Analysis of future ticketing scenarios for transport for
London", located on:
http://dspace.mit.edu/bitstream/handle/1721.1/34592/71250612.pdf?sequence=1

1 fragment found in a text with the title: "Statesman, V. 44, n. 15", located on:
http://dspace.sunyconnect.suny.edu/bitstream/1951/28828/1/Statesman, V. 44, n. 15.pdf

1 fragment found in a text with the title: "A question of integrity, a theological exercise in
relating process thought with object relations psychology in pastoral counselling", located on:
http://www.collectionscanada.ca/obj/s4/f2/dsk2/tape15/PQDD_0004/MQ40337.pdf

1 fragment found in a text with the title: "Modelling climate change and socio-economic impacts
within three regions of Scotland, 1970-2100", located on:

70
https://dspace.stir.ac.uk/dspace/bitstream/1893/2135/1/Parnell (2004) - Modelling Climate Change
and Socio-Economic Impacts within Three Regions of Scotland, 1970-2100.pdf

1 fragment found in a text with the title: "Across the Hindukush of the First Millennium: a
collection of the papers", located on:
http://repository.kulib.kyoto-u.ac.jp/dspace/bitstream/2433/120966/1/Kuwayama_S.pdf

1 fragment found in a text with the title: "Adoption of project appraisal practice and accessibility
of finance : an empirical analysis on selected small and medium-sized manufacturing
companies in Malaysia", located on:
https://dspace.stir.ac.uk/dspace/bitstream/1893/1839/2/Adoption of Project Appraisal Practice and
Accessibility - Vol 2 - by Mohamed Ibrahim (1998).pdf

1 fragment found in a text with the title: "Mineralogy Class Materials", located on:
http://www.whitman.edu/geology/winter/Excel.pdf

1 fragment found in a text with the title: "Neural Networks and the Valuation of Derivatives --
Some Insights into the Implied Pricing Mechanism of German Stock Index Options", located
on:
http://finance.fbv.kit.edu/download/dp202.pdf

1 fragment found in a text with the title: "Croatian and Slovenian Mutual Funds and Bosnian
Investments Funds (in English)", located on:
http://journal.fsv.cuni.cz/storage/7_fau_3_4_2007_0000000059.pdf

1 fragment found in a text with the title: "Massachusetts Institute of Technology", located on:
http://en.wikipedia.org/wiki/Massachusetts_Institute_of_Technology

1 fragment found in a text with the title: "Neural networks and the evaluation of derivatives.
Some insights into the implied pricing mechanism of German stock index options.", located
on:
http://digbib.ubka.uni-karlsruhe.de/volltexte/documents/2493

1 fragment found in a text with the title: "Covariance of adolescent health behaviors: the Classof
1989 study", located on:http://her.oxfordjournals.org/content/10/2/133.full.pdf

71
 CHECK-LIST

Yes No
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Is the Cover page in proper format?
Is the Title page (Inner cover page) in proper format?
Is the Certificate received from the Company Guide?
Is the Certificate received from the Faculty Guide?
Is the Executive Summary included in the report properly written within one
page?
Is the title of your report appropriate? The title should be adequately
descriptive, precise and must reflect scope of the actual work done.
Have you included the List of abbreviations / Acronyms? Uncommon
abbreviations / Acronyms should not be used in the title.
Does the Report contain a summary of the literature survey?
Does the Table of Contents include page numbers?
(i) Are the Pages numbered properly?
(ii) Are the Figures numbered properly? (Figure Numbers and Figure Titles at the
bottom of the figures)
(iii) Are the Tables numbered properly? (Table Numbers and Table Titles at the top
of the tables)
(iv) Are the Captions for the Figures and Tables proper?
(v) Are the Appendices numbered properly?
Are References or Bibliography given at the end of the Report?
Have the References been cited properly inside the text of the Report?
Is the citation of References in proper format?
A Compact Disk (CD) containing the softcopy of the Final Report and a copy of
the Final SIP Presentation (both preferably in PDF format) has been placed in a
protective
jacket securely fastened to the inner back cover of the Final Report. Please
write your name and Roll No with a marker on the CD as well as the CD Jacket.

Declaration by Student:

I certify that I have properly verified all the items in this checklist and ensure that the report is in
proper format as specified.

Enrolment No: _____________________

Name of the Student: ____________________________________________

Sign of the Student: __________________

Date: ______________________________

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