2. Objective of investment?

Tax benefits Returns Children’s Benefits Others

Attributes No. of Respondent Percentage

Tax Benefits 33 33
Returns 32 32
Children’s Benefits 30 30
Others 5 5
TOTAL 100 100

40%

35%

30%

25%

20%

15%

10%

5%

0%
Tax Benefits Returns Children's Benefits others

Interpretation:
From the study conducted, the objectives towards investment, was found that nearly 33% of the
investor aim in Tax benefit while taking decision in saving money. The next is nearly 31% of the
respondents like to invest for their Children's Benefit and Returns, only 5% go for the others.
3 How much is your investment horizon?
1 year 3 years 3-5 years More than 5 years

Attributes No.of Respondent Percentage

1 year 8 8
3 years 38 38
3-5 years 43 43
More than 5 years 11 11
TOTAL 100 100

50
45
40
35
30
25
20
15
10
5
0
1 year 3 years 3-5 years More than 5 years

Interpretation:
It is clear from the above table that out of !00 respondent 43% are investing for 3-5 years, 38%
are investing for 3 years ,11% are investing for more than 5 years and the rest 8% are investing
for 1 years.
 EXECUTIVE SUMMARY

In few years Mutual Fund has emerged as a tool for ensuring one’s financial wellbeing. Mutual
Funds have not only contributed to the India growth story but have also helped families tap into
the success of Indian Industry. As information and awareness is rising more and more people are
enjoying the benefits of investing in mutual funds. The main reason the number of retail mutual
fund investors remains small is that nine in ten people with incomes in India do not know that
mutual funds exist. But once people are aware of mutual fund investment opportunities, the
number who decide to invest in mutual funds increases to as many as one in five people. The
trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer
is to understand which of the potential investors are more likely to buy mutual funds and to use
the right arguments in the sales process that customers will accept as important and relevant to
their decision. This Project gave me a great learning experience and at the same time it gave me
enough scope to implement my analytical ability. The analysis and advice presented in this
Project Report is based on market research on the saving and investment practices of the
investors and preferences of the investors for investment in Mutual Funds. This Report will help
to know about the investors’ Preferences in Mutual Fund means Are they prefer any particular
Asset Management Company (AMC), Which type of Product they prefer, Which Option
(Growth or Dividend) they prefer or Which Investment Strategy they follow (Systematic
Investment Plan or One time Plan). This Project as a whole can be divided into two parts. The
first part gives an insight about Mutual Fund and its various aspects, the Company Profile,
Objectives of the study, Research Methodology. One can have a brief knowledge about Mutual
Fund and its basics through the Project. The second part of the Project consists of data and its
analysis collected through survey done on 100 people. For the collection of Primary data I made
a questionnaire and surveyed of 100 people. I also taken interview of many People those who
were coming at the SBI Branch where I done my Project. I visited other AMCs in Dehradun to
get some knowledge related to my topic. I studied about the products and strategies of other
AMCs in Dehradun to know why people prefer to invest in those AMCs. This Project covers the
topic “INVESTORS PERCEPTION ABOUT INVESTMENT IN MUTUAL FUND.” The data
collected has been well organized and presented. I hope the research findings and conclusion
will be of use.
 VISION
The vision statement of the company is to be most preferred and the largest fund house for all

Asset classes, with a consistent track record of excellent returns and the best standards in

customer service, product innovation, technology and HR practice.

MISSION

The mission of the company is launching a wide range of innovative product, Global reach and

Awareness. Attracting, nurturing and retaining the best talents. Targeting to set the benchmarks

rather than following it. Active risk management and best global practices in all business

effectiveness.
 SWOT ANALYSIS OF SBI MUTUAL FUNDS

SWOT ANALYSIS
A type of fundamental analysis of the health of a company by examining its strengths(S),
weakness (W), business opportunity (O), and any threat (T) or dangers it might be exposed to.

I. STRENGTHS

SBI mutual fund is a sponsored by state bank of India which is the more than the 200 years old,
largest lender in the country and having a massive network of over 13000 branches in India.

1. Wide reach: SBI mutual fund strong distribution network throw association banks over
13000 branches of state bank of India over 2000 branches of association banks and distribution
of SBI mutual fund products giving a big space and visibility for the products of SBI mutual
funds.

2. Services: As services place a dominant role in a financial products SBI mutual funds is
providing standard services though branches located in over 445 cities.

3. Brand image: As opposed to some of its competitors (e.g. HSBC), operates a multi-brand
strategy. The company operates under numerous well-known brand names, which allows the
company to appeal to many different segments of the market.

4. Distribution channel strategy: SBI is continuously improving the distribution of its

products. Its online and Internet-based access offers a combination of excellent growth prospects
and its retail direct business also saw growth of 27% in 2002 and 15% in 2003.

5. Large pool of installed capacities.

6. Experienced managers for large number of Generics.

7. Large pool of skilled and knowledgeable manpower.

II. WEAKNESS

1. Technologically little less advanced : SBI mutual fund technology is less advanced
comparing to other mutual fund for eg: HDFC, AXIS, RELIANCE, these companies use the
advanced technologies in the business.
2. Less publicity: SBI mutual fund its basically public sector company and SBI mutual fund do
less marketing and do not utilize the advertisement channel available to make public aware about
its product and services.

4. Paper work: Due to lack of technology paper work has increased which led to increased
workload on the employees. Which sometimes lead to delay in the processing.

5. Comparatively less reach to the investors.

III. OPPORTUNITIES

1. State Bank of India’s great brand image helps SBI mutual fund to increase penetration in to
market , there are possibility for SBI mutual fund to get listed in top 3 AMC of the country, as it
is having all potential to reach top position.

2. Increasing in liberalization of government policies. In mutual fund industry.

3. As there have been various competitor entering into the market, there is an opportunity
For SBI mutual funds to its strength and come up with more customer focus solution for the
investors.

IV. THREATS

1. Regulatory frame work: due to every changing regulatory frame work in India mutual fund
industry is facing the great threat for its inflow and sustainable growth in the scenario of no entry
load it has became very difficult to manage Large assets management business.

2. Increased Competition: With intense competition by so many local players causing headache
to the current marketers. In addition to this though multinational brands are not yet established
but still they will soon hit the market. Almost 60 to 70% of the revenue is spending on the
management and services.

3. Lack of sufficient branch-offices for speedy delivery of services.

 SUGGESTION

1) Males are in majority when it comes to investment and hence female should be

encouraged to invest more.

2) The most significant problem spotted is that investors are not fully aware of the benefits

of mutual fund. Awareness should be spread as wide as possible by conducting investor

awareness programmes.

3) People below the age of 25 can be key customer group so making greater efforts with

younger customers will help to increase the investor base.

4) To come up with more innovative schemes and products so as to expand over the largest

customer base as possible.

5) To regulate entry and exit loads effectively as it creates a lot of confusion during actual

settlement of costs and bills.

6) To better operations management so as to reduce the time lag and improve customer

feedback.
 FINDINGS

 Majority of the people like to invest in SIP (Systematic Investment Plan) rather than one

time investment option.

 Majority of people invest up to 10% of their savings.

 Assured returns and less risk is key factors why people invest in the mutual funds.

 Equity oriented schemes are the most preferred schemes than Debt and Hybrid schemes.

 Majority of people invest in mutual fund because it is less risky than directly investing

stock market.

 People are shifting from Fixed Deposits to mutual funds schemes as it provide higher rate

of return than FD.

 CONCLUSION

The project that I undertook in my MUTUAL FUND provided me a good experience of

Investment Avenues like Mutual Funds and related activities. It was a good experience for me as

it helped me enhance my knowledge as well as gave a good industry exposure for the period

which would definitely prove to be very useful at the time of placements and for my career. The

complete project helped me gain knowledge about the different mutual funds schemes there

related risk and return.

Summing up, I am thankful to the Company and the Project that gave me an opportunity where I

could learn new things, enhance my knowledge, gain some industry exposure and at the same

time, do something that could be beneficial for the company.