The Study of the Customer Satisfaction About Mutual Fund Investment

Presented By :-

Rana Tarun

INDEX
TOPIC About India Infoline Ltd. India Infoline Ltd. History. India Infoline Ltd. Key milestones. Today India Infoline Ltd. Mutual Fund India Infoline Ltd. Research Objective Analysis & Interpretation Limitation of report Recommendation

About India Infoline Ltd.

The India Infoline Group, Comprising the holding company, India Infoline ltd and its wholly owned subsidiaries offer the entire gamut of investment product ranging from Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Fund, Life Insurance And Loan Product. It also owns and operates, www.indiainfoline.com and www.5paisa.com .

India Infoline Ltd is a company listed on both the leading stock exchanges in India namely the Bombay Stock Exchange ( BSE ) and The National Stock Exchange ( NSE ).

India Infoline Ltd. History.

A group of professionals formed a company called Probity Research & Services Ltd. The name was later changed to India Infoline. The objective was to provide unbiased and independent information to market intermediaries and investor.

India Infoline Ltd has fixed its issue price at Rs 76 per equity share. The 100% book built offer 1.19 crore shares in the price brand of Rs 70-80 closed on April 27, 2005 and was oversubscribed 7.22 times. While the QIB portion was oversubscribed 10.49 times, the non-institutional investors segment was oversubscribed 5.64 times.

India Infoline Ltd. Key milestones.

Incorporated on October 18, 1995 as Probity Research & Services. Launched Internet portal www.indiainfoline.com in May 1999 Commenced distribution of personal financial product like Mutual Fund and RBI Bonds In April 2000. Launched online trading in shares and securities branded as www,5paisa.com in July 2000.

Started Life Insurance agency business in December 2000 as a Corporate Agent of ICICI Prudential Life Insurance.

Became a depository participant of NSDL in September 2001. Launched stock messaging services in May 2003. Acquired commodities broking license in March 2004. Launched portfolio management services in August 2004. Listed on NSE And BSE on May 17, 2005. Acquired NBFC license in May 2005.

Today India Infoline Ltd.

1. India Infoline Ltd. Equity Broking 2. India Infoline Commodity Ltd. Commodity Broking 3. India Infoline Distributed Company Ltd. Mutual Fund, I .P.O. 4. India Infoline Insurance Service Ltd. Life Insurance 5. India Infoline Investment Service Ltd. N.B.F.C. 6. India Infoline Insurance Broker Ltd. General Insurance 7. India Infoline Media & Research Ltd. Stock Massages Services

Mutual Fund India Infoline Ltd.

A Mutual Fund is a trust that pools the saving of a number of investors who share a common financial goal.

Types of Mutual Fund Scheme

1. By Structure
Open-Ended Funds Close-Ended Funds Interval Funds

2. By Investment Objective Growth Funds

Income Funds
Balanced Funds Money Market Funds

3. Other Scheme Tax Saving Schemes

Research Objective
A) Primary Objectives: 1. To know the awareness about Mutual Fund. 2. To study on Customer Preferences & Satisfaction of Mutual Fund.
B) Secondary Objectives : 1. To check the parameters, which are most prefer by Customer. 2. To check, which mutual funds schemes, the Customer likes to invest money.

Analysis & Interpretation

Awareness Mutual Fund
Frequency Percent Valid Percent Cumulati ve Percent
Yes No

Vali d

Yes

280

56.0

56.0

56.0
No 220 44%

No

220

44.0

44.0

100

Yes 280 56%

Total

500

100

100

Interpretation:From above table and graph we can say that 56% Customer are aware of Mutual Funds so that it is good for AMC, that 56% Customer have general information of Mutual Funds.

Interest in Mutual Fund

Frequency Percent Valid Percent Cumulative Percent
Mutual Fund Equity

Valid

Mutual Fund

230

46.0

46.0

46.0
Mutual Fund, 230, 46% Equity, 270, 54%

Equity

270

54.0

54.0

100

Total

500

100

100

Interpretation:From above table and graph we can say that 46% Customer are Interest of Mutual Funds so that it is good for AMC, that 54% Customer have general information of Mutual Funds.

Information in Mutual Fund

Source Television Friend Newspaper Relatives Internet Others

No. of Respondents
115 35 41 49 30 50

Percentage 36% 11% 13% 15% 9% 16%

Valid Percent 36% 11% 13% 15% 9% 16%

Cumulative Percent 36% 47% 60%

Television Friend

No. of Respondents Newspaper Relatives Internet Others

75%
84% 100%

Others 50 Internet 16% 30 9% Relatives 49 Newspaper 15% 41 13%

Television 115 36%

Friend 35 11%

Total

280

100%

Interpretation:From above table and graph we can say that 36% Customer are find information about Mutual Fund though Television and 9% Customer are information about Mutual Fund though Internet, and respectively Friends 11%,Newspaper 13%,Relative 15% and other 16%.

Investing in Mutual Fund

Frequency Percent Valid Percent Cumulative Percent
Yes No

Valid

Yes

210

75.0

75.0

75.0

No 70 25%

No

70

25.0

25.0

100

Total

280

100

100

Yes 210 75%

Interpretation:From above table and graph we can say that 75% customer are investing in Mutual Fund and other 25% customer are not investing in Mutual Fund.

Mutual Fund Scheme

Frequenc y Percen t Valid Percent Cumulative Percent
Open Ended Close Ended

Vali d

Open Ended Close Ended

160

76.0%

76.0%

76.0%

Close Ended 50 24%

50

24.0%

24.0%

100.0%

Total

210

100%

Open Ended 160 76%

Interpretation:From above table and graph we can say that 76% Customer are investing in Open Ended Mutual Fund Scheme And Other 24% Customer are Investing in Close Ended Mutual Fund Scheme.

Reason Of invest in Mutual Fund

Freque ncy Vali d Security Tax Benefit 65 95 Percent Valid Percent 31.0 45.2 Cumulativ e Percent 31.0 76.2
Security Tax Benefit No Risk

31.0 45.2

No Risk 50 24%

Security 65 31%

Low Risk

50

23.8

23.8

100
Tax Benefit 95 45%

Total

210

Interpretation:From above table and graph we can say that 45% Customer are Invest in Mutual Fund Because of Tax Benefit, 31% Customer are invest in Mutual Fund Because of Security and 24% Customer are invest in Mutual Fund Because of Low Risk.

Company Most Prefer In Mutual Fund

Source Reliance SBI TATA HDFC Other (Specify) Total No. of Respondents 55 95 35 15 Percentage 26.2% 45.2% 16.7% 7.1%
SBI, 95, 45% Other (Specify), 10, 5% HDFC, 15, 7% TATA, 35, 17% Reliance, 55, 26% Reliance SBI TATA HDFC Other (Specify)

10 210

4.8% 100.0%

Interpretation:From above table and graph we can say that 45% Customer are preference invest in SBI Mutual Fund, 26% Customer are preference invest in RELIENCE Mutual Fund And 17% Customer are preference invest in TATA Mutual Fund, 7% Customer are preference invest in HDFC Mutual Fund and Other 5% Customer are preference invest in Other Company Mutual Fund.

AMC Service Satisfaction

Freque ncy Vali d Highly Agree Agree 35 135 Percent Valid Percent 16.7% 64.3% Cumulativ e Percent 16.7% 81.0%
Disagree 30 14% Highly Agree Agree Disagree Highly Disagree

16.7% 64.3%

Highly Disagree 10 5%

Highly Agree 35 17%

Disagree Highly Disagree Total

30 10 210

14.3% 04.8%

14.3% 04.8%

95.0% 100%

Agree 135 64%

Interpretation:From above table and graph we can say that 64% Customer are Agree with Satisfied service which is provide by A.M.C., 17% Customer are Highly Agree with Satisfied service which is provide by A.M.C., 14% Customer Are Disagree with Satisfied service which is provide by A.M.C. and 5% Customer are Highly Disagree with Satisfied service which is provide by A.M.C.

Preference Of Client
Security Liquidity

PARAMETERS
Safety Return Tax Benefits

RANK
1 2 3 4 5 6 7 8 9 10

Transparency

Lock in period

Maturity

Tax benefits

Transparency Maturity

Return

Flexibility

Frequency Liquidity

Frequency

Investment limit

Lock in period Flexibility Investment limit

Interpretation: From above table we can see that most of Customer wants safety, return and tax benefits from different investment products so that they are investing their money in safe investment product. Here we are giving 1 to 10 rank from our survey. Which is Customer are prefer for investing their money.

Investment Product
Bank FD Equity market

PRODUCT
Postal schemes PPF Insurance Bank FD

RANK
1 2 3 4 5 6

Relief bond

Postal schemes

Insurance

PPF

Equity market Relief bond

Interpretation: From above analysis many investors want to invest money in safe products which gives above investment parameters, in this question many Customer give top 3 ranks to postal schemes, PPF, and insurance because they wants safety, High return, and tax benefits. Here I give 1 to 6 ranks to different products after completing my survey.

Limitation of report
1. I surveyed only 280 respondents while there are lots of investment consultants in these areas. Some of them do not know about MUTUAL FUND so on this ground my survey may be faulty. 1. My respondents are not perfectly divided their occupation with another occupations. Some of them are doing this business as a part time and some of them are female but whole business is done by their husbands. And some of them are not interested in another investment business.

Recommendation
I find certain points on which the company must take some decisions about their structure and modify their policy for acquiring large market. 1. Most of investors are salary employees and they want security, highly return, and tax benefits. So that company and government focusing on new investment products which provide these parameters to investors. 2. Most of investors are interested in postal schemes, PPF, and insurance so that AMC (Asset Management Company) gives more on behalf of these investment products. 3. Some of investment consultants are not interested in Mutual Funds, because they have no information about Mutual Fund. And they are not suggesting Mutual Fund to their clients.