Company Guide:
Assistant Professor
Branch Manger
(NJ India invest Pvt. Ltd.)
Submitted by
Ms. Jyoti Dabhi
[Batch No. 2015-17, Enrollment No.157500592013]
MBA SEMESTER III
Students Declaration
I, Ms. Dabhi Jyoti , hereby declare that the report for Summer Internship
Project entitled i A Study of Investors Buying Behavior Towards Mutual
Funds in Surat city as a result of my own work and my indebtedness to
other work publications, references, if any, have been duly acknowledged.
Place: Surat
Date: _____________
__________________
(Jyoti Dabhi)
Institutes Certificate
Certified that this Summer Internship Project Report Titled A study of
investors buying behavior towards Mutual fund in Surat city is the bonafide
work of Ms. Jyoti Dabhi (Enrollment No. 157500592013), who has carried out
the research under my supervision. I also certify further, that to the best of my
knowledge the work reported herein does not form part of any other project
report or dissertation on the basis of which a degree or award was conferred
on an earlier occasion on this or any other candidate.
Place: Surat
Date: ________________
___________________
(Riddhish Joshi)
Asst. Professor
___________________
(J.M. Kapadia)
Director
PREFACE
It is great opportunity for management students of GTU to get exposure to the
mutual fund industry as a part of in summer internship project (SIP) academic
curriculums of MBA & get wide exposure to the real world during industry
project.
This project report has been prepared in partial fulfillment of the requirement
for the subject of summer internship project report (SEM .III) & in the
academic year 2016-2017 For preparing the SIP Report. The blend of
learning & knowledge acquired during our report studies the role of mutual
fund advisor in NJ India Invest is presented in this project report.
The prime objective of this practical training is to student get some knowledge
& experience of management affairs. In that A Study of investors Buying
Behavior towards Mutual Fund in Surat City. &all aspect while complete
requirement for the MBA course.
ACKNOWLEDGEMENT
I (Jyoti Dabhi), take this opportunity to thank my guide Mr. Riddhish Joshi who
assigned me this below mentioned project topic and help me at every step
during the preparation of the work of study A STUDY ON INVESTORS
BUYING BEHAVIOR TOWARDS MUTUAL FUND IN SURAT CITY. I am
here by, grateful to her. Writing this report appeared to be a great experience
to me. It added a lot to my knowledge while I was working on this project. If I
say that this project is one of my memorable experience in student life.
The project report could never been accomplished without the guidance and
cooperation from my respected faculties and my training guide Dipak Naik
(Branch Manager ) at NJ India invest, Surat ( Majura gate). I Sincerely thank
all faculties for their suggestions and help to prepare this project and also
thanks to our unit manager ishtiyaq siddiqui, and all staff member of NJ India
invest.
I am highly obliged who help me during the training period and cooperated in
solving queries. I am very grateful to my college and who have directly or
indirectly help me to bring this effort to completion.
Finally, foremost to thanks to all my respondent, who helped me to complete
my fieldwork, without them this project was not possible.
EXECUTIVE SUMMARY
This research has been undertaken basically for .A Study on Investors
buying behavior towards mutual Fund in Surat City .
The First sections contain the introduction of industry. In this section all the
type if information like introduction of Mutual Fund. History of Mutual Fund,
Organization of Mutual Fund, Advantages of Mutual Fund, Disadvantages of
Mutual Fund given.
The second section contains the Mutual Fund Industry at global, national and
state level. In this report we have also study external factors like political,
economical, social and technological which affect industry and the brief
explanation about current trends and major players of Mutual Fund industry.
Further the report consists of the history and SWOT analysis of N.J India
Investment Pvt Ltd .
The third section contains the literature review. This includes various review
given by different author and literature related with mutual funds, mutual funds
schemes and performance of mutual funds in Indian market.
The report includes the Primary data analysis with the help of questionnaire
survey and SPSS. And also includes finding along with conclusion.
TABLE OF CONTENTS
Sr. No.
Particulars
1.
Introduction
2.
Industry Profile
a. Global
b. National
c. State
d. PESTEL
e. Current trends
f. Major Players
g. Major Offerings
Company Profile
3.
a. Company Profile
b. Organogram
c. Divisions/ Departments
d. SWOT
e. Market Position
4.
Review of Literature
5.
Research Methodology
a. Problem Statement
b. Research Objective
c. Research Design
i.
Type of Design
ii.
Sampling
iii.
Data Collection
iv.
v.
6.
7.
8.
Bibliography
9.
Annexure
Page No.
LIST OF TABLES
Sr. No.
Particulars
Table
Page
No.
No.
Name of AMCs
1.1
Age
6.1
Occupation
6.2
Educational Qualification
6.3
6.4
6.5
Invest money
6.6
6.7
6.8
10
6.21
11
6.22
6.9
mutual fund
14
6.23
6.24
26
16
6.25
mutual funds?
17
6.26
6.27
6.28
20
6.29
21
6.30
22
6.31
LIST OF FIGURES
Figure
Sr. No.
Particulars
1.1
12
1.2
17
1.3
24
1.4
25
2.1
No.
percentage of GDP
6
Total assest
2.3
2.4
2.5
2.5
10
2.6
11
2.6
12
2.7
13
Organogram
3.1
14
3.2
15
Age
6.1
16
Occupation
6.2
15
Educational Qualification:
6.3
Page No.
16
6.4
17
6.5
6.6
19
6.7
6.8
21
6.9
in mutual fund
22
6.10
23
6.21
24
6.22
6.23
6.24
fund?
27
6.25
mutual funds
28
6.26
6.27
6.28
1. INTRODUCTION
14
I.
washing machine that responds to the need to have clean clothes while
avoiding having to do it by hand or go to the Laundromat.
o
Social need: the need comes from a desire for integration and belongingness
in the social environment or for social recognition. Like buying a new
fashionable bag to look good at school or choose a luxury car to show that
you are successful in life.
Need for change: the need has its origin in a desire from the consumer to
change. This may result in the purchase of a new coat or new furniture to
change the decoration of your apartment.
V. Post-purchase behavior
Once the product is purchased and used, the consumer will evaluate the
adequacy with his original needs (those who caused the buying behavior).
And whether he has made the right choice in buying this product or not. He
will feel either a sense of satisfaction for the product (and the choice). Or, on
the contrary, a disappointment if the product has fallen far short of
expectations. An opinion that will influence his future decisions and buying
behavior. If the product has brought satisfaction to the consumer, he will
then minimize stages of information search and alternative evaluation for his
next purchases in order to buy the same brand. Which will produce customer
loyalty.
The post-purchase evaluation may have important consequences for a brand.
A satisfied customer is very likely to become a loyal and regular customer.
Especially for everyday purchases with low level of involvement such as
Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods
(CPG). A loyalty which is a major source of revenue for the brand when you
combine all purchases made by customer throughout his entire life (called
lifetime customer value). The Holy Grail that all brands in the industry are
trying to achieve.
18
19
its marketing strategy. As these will play a role in the perception, habits,
behavior or expectations of consumers.
For example, in the West, it is common to invite colleagues or friends at home
for a drink or dinner. In Japan, on the contrary, invite someone home does not
usually fit into the local customs. It is preferable to do that this kind of outing
with friends or colleagues in restaurant.
Sub-cultures
A society is composed of several sub-cultures in which people can identify.
Subcultures are groups of people who share the same values based on a
common experience or a similar lifestyle in general. Subcultures are the
nationalities, religions, ethnic groups, age groups, gender of the individual,
etc..The subcultures are often considered by the brands for the segmentation
of a market in order to adapt a product or a communication strategy to the
values or the specific needs of this segment.
For example in recent years, the segment of ethnic cosmetics has greatly
expanded. These are products more suited to non-Caucasian populations and
to types of skin pigmentation for African, Arab or Indian populations for
example..
Social classes
Social classes are defined as groups more or less homogenous and ranked
against each other according to a form of social hierarchy. Even if its very
large groups, we usually find similar values, lifestyles, interests and behaviors
in individuals belonging to the same social class. We often assume three
general categories among social classes : lower class, middle class and
upper class. People from different social classes tend to have different desires
and consumption patterns. Disparities resulting from the difference in their
purchasing power, but not only. According to some researchers, behavior and
buying habits would also be a way of identification and belonging to its social
class.
20
Cultural trends
Cultural trends or Bandwagon effect are defined as trends widely followed
by people and which are amplified by their mere popularity and by conformity
or compliance with social pressure. The more people follow a trend, the more
others will want to follow it.
21
For example, a consumer may buy a Ferrari or a Porsche for the quality of the
car but also for the external signs of social success that this kind of cars
represents. Moreover, it is likely that a CEO driving a small car like a Ford
Fiesta or a Volkswagen Golf would be taken less seriously by its customers
and business partners than if he is driving a German luxury car.
III. Personal factors
Decisions and buying behavior are obviously also influenced by the
characteristics of each consumer.
Lifestyle
The lifestyle of an individual includes all of its activities, interests, values and
opinions. The lifestyle of a consumer will influence on his behavior and
purchasing decisions. For example, a consumer with a healthy and balanced
lifestyle will prefer to eat organic products and go to specific grocery stores,
will do some jogging regularly (and therefore will buy shoes, clothes and
specific products), etc..
22
Motivation
Motivation is what will drive consumers to develop a purchasing behavior. It is
the expression of a need is which became pressing enough to lead the
consumer to want to satisfy it. It is usually working at a subconscious level
and is often difficult to measure.
Perception
Perception is the process through which an individual selects, organizes and
interprets the information he receives in order to do something that makes
sense. The perception of a situation at a given time may decide if and how the
person will act.
Learning
Learning is through action. When we act, we learn. It implies a change in the
behavior resulting from the experience. The learning changes the behavior of
an individual as he acquires information and experience.
23
For example, if you are sick after drinking milk, you had a negative
experience, you associate the milk with this state of discomfort and you
learn that you should not drink milk. Therefore, you dont buy milk anymore.
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 invested by the
fund manager in different types of securities depending upon the objective of
the scheme. These could range from shares to debentures to money market
instruments. The income earned through these investments and the capital
appreciations realized by the scheme are shared by its unit holders in
proportion to the number of units owned by them (pro rata). 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 portfolio at a
relatively low cost. Anybody with an investible surplus of as little as a few
thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has
a defined investment objective and strategy.
A mutual fund is the ideal investment vehicle for todays complex and modern
financial scenario. Markets for equity shares, bonds and other fixed income
instruments, real estate, derivatives and other assets have become mature
and information driven. Price changes in these assets are driven by global
events occurring in faraway places. A typical individual is unlikely to have the
knowledge, skills, inclination and time to keep track of events, understand
their implications and act speedily. An individual also finds it difficult to keep
track of ownership of his assets, investments, brokerage dues and bank
transactions etc.
24
25
people and invests their money in stocks, bonds, and other securities. Each
investor owns shares, which represent a portion of the holdings of the fund.
You can make money from a mutual fund in three ways:
1) Income is earned from dividends on stocks and interest on bonds. A fund
pays out nearly all income it receives over the year to fund owners in the form
of a distribution.
2) If the fund sells securities that have increased in price, the fund has a
capital gain. Most funds also pass on these gains to investors in a distribution.
3) If fund holdings increase in price but are not sold by the fund manager, the
fund's shares increase in price. You can then sell your mutual fund shares for
a profit. Funds will also usually give you a choice either to receive a check for
distributions or to reinvest the earnings and get more shares
CONCEPT
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:
( figure No : 1.3 ) Mutual Fund Operation Flow Chart
26
( Figure No : 1.4)
27
these are Prudential ICICI AMC and Birla Sun Life AMC. The aggregate
corpus of assets managed by this category of AMCs is in excess of Rs250bn
Nature of
ownership
Private foreign
Private Indian
Banks
Banks
Banks
Private foreign
Private foreign
Private Indian
Private Indian
Institutions
Institutions
Banks
Private foreign
Limited
J M Capital Management Limited
Private Indian
Private foreign
Private Indian
Private Indian
Institutions
Limited
Morgan Stanley Asset Management Company Private
Limited
28
Private foreign
Banks
Limited
Reliance Capital Asset Management Company Limited
Private Indian
Banks
Private Indian
Private foreign
Private Indian
Private Indian
Private foreign
Institutions
Private foreign
(Table No : 1.1)
By Structure
Open-ended Funds
An open-end fund is one that is available for subscription all through the year.
These do not have a fixed maturity. Investors can conveniently buy and sell
units at Net Asset Value ("NAV") related prices. The key feature of open-end
schemes is liquidity.
Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging
from 3 to 15 years. The fund is open for subscription only during a specified
period. 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
29
exchanges where they 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.
Interval Funds
Interval funds combine the features of open-ended and close-ended schemes.
They are open for sale or redemption during pre-determined intervals at NAV
related prices.
By Investment Objective
Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to
long- term. Such schemes normally invest a majority of their corpus in
equities. It has been proven that returns from stocks, have outperformed most
other kind of investments held over the long term. Growth schemes are ideal
for investors having a long-term outlook seeking growth over a period of time.
Income Funds
The aim of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds,
corporate debentures and Government securities. Income Funds are ideal for
capital stability and regular income.
Balanced Funds
The aim of balanced funds is to provide both growth and regular income.
Such schemes periodically distribute a part of their earning and invest both in
equities and fixed income securities in the proportion indicated in their offer
documents. In a rising stock market, the NAV of these schemes may not
normally keep pace, or fall equally when the market falls. These are ideal for
investors looking for a combination of income and moderate growth.
30
Load Funds
A Load Fund is one that charges a commission for entry or exit. That is, each
time you buy or sell units in the fund, a commission will be payable. Typically
entry and exit loads range from 1% to 2%. It could be worth paying the load, if
the fund has a good performance history.
No-Load Funds
A No-Load Fund is one that does not charge a commission for entry or exit.
That is, no commission is payable on purchase or sale of units in the fund.
The advantage of a no load fund is that the entire corpus is put to work.
Other Schemes
Tax Saving Schemes
These schemes offer tax rebates to the investors under specific provisions of
the Indian Income Tax laws as the Government offers tax incentives for
investment in specified avenues. Investments made in Equity Linked Savings
Schemes (ELSS) and Pension Schemes are allowed as deduction under
Income Tax Act, 1961.
Special Schemes
31
Index Schemes
Index Funds attempt to replicate the performance of a particular index such as
the BSE Sensex or the NSE 50.
Sectoral Schemes
Sectoral Funds are those, which invest exclusively in a specified industry or a
group of industries or various segments such as 'A' Group shares or initial
public offerings.
Diversification
Mutual Funds invest in a number of companies across a broad cross-section
of industries and sectors. This diversification reduces the risk because seldom
do all stocks decline at the same time and in the same proportion. You
achieve this diversification through a Mutual Fund with far less money than
you can do on your own.
Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many
problems such as bad deliveries, delayed payments and follow up with
brokers and companies. Mutual Funds save your time and make investing
easy and convenient.
32
Return Potential
Over a medium to long-term, Mutual Funds have the potential to provide a
higher return as they invest in a diversified basket of selected securities.
Low Costs
Mutual Funds are a relatively less expensive way to invest compared to
directly investing in the capital markets because the benefits of scale in
brokerage, custodial and other fees translate into lower costs for investors.
Liquidity
In open-end schemes, the investor gets the money back promptly at net asset
value related prices from the Mutual Fund. In closed-end schemes, the units
can be sold on a stock exchange at the prevailing market price or the investor
can avail of the facility of direct repurchase at NAV related prices by the
Mutual Fund.
Transparency
One can get regular information on the value of his investment in addition to
disclosure on the specific investments made by his scheme, the proportion
invested in each class of assets and the fund manager's investment strategy
and outlook.
Flexibility
Through features such as regular investment plans, regular withdrawal plans
and dividend reinvestment plans, you can systematically invest or withdraw
funds according to your needs and convenience.
Affordability
Investors individually may lack sufficient funds to invest in high-grade stocks.
A mutual fund because of its large corpus allows even a small investor to take
the benefit of its investment strategy. Mutual Funds offer a family of schemes
to suit your varying needs over a lifetime.
33
Well Regulated
All Mutual Funds are registered with SEBI and they function within the
provisions of strict regulations designed to protect the interests of investors.
The operations of Mutual Funds are regularly monitored by SEBI.
Dilution
It's possible to have too much diversification. Because funds have small
holdings in so many different companies, high returns from a few investments
often don't make much difference on the overall return. Dilution is also the
result of a successful fund getting too big. When money pours into funds that
have had strong success, the manager often has trouble finding a good
investment for all the new money.
34
Cost of churn
The portfolio of a fund does not remain constant. The extent to which the
portfolio changes is a function of the style of the individual fund manager i.e.
whether he is a buy and hold type of manager or one who aggressively
churns the fund. It is also dependent on the volatility of the fund size i.e.
whether the fund constantly receives fresh subscriptions and redemptions.
Such portfolio changes have associated costs of brokerage, custody fees,
registration fees etc. which lowers the portfolio return commensurately.
India with the Sensex having been changed twice in the last 5 years, with
each change being quite substantial. Another reason for change index
composition is Mergers & Acquisitions. The weight age of the shares of a
particular company in the index changes if it acquires a large company not a
part of the index.
36
2. Industry profile
This highlights that developed countries have aging populations, and that
developing countries will face similar demographic pressures in the not-toodistant future, commented ICI Global Managing Director Dan Waters expect
that demand for regulated funds will continue to grow, particularly as
investments in participant-directed DC plans, in response to these trends.
Because DC plans offer a transparent method of funding retirement that
empowers individuals by giving them ownership and control, they believe that
they will play an increasingly important role worldwide.
( Figure No : 2.1)
This notes , for example, that though populations in Asia (excluding Japan)
are relatively young, the proportion aged 65 and older is expected to rise
gradually over the next 50 years. This factor, coupled with projections by the
Organisation for Economic Co-operation and Development that the global
middle class will rise from 1.8 billion in 2009 to 4.9 billion people in 2030
with most of this growth occurring in developing Asiamake it clear that there
is considerable potential for growth in mutual fund assets outside the United
States and Europe.
This explains that rising per-capita income in developing market countries
around the world has the potential to significantly increase the demand for
long-term mutual funds and foster industry growth outside the United States
and Europe broadly. This growth potential is a natural consequence of
economic and financial developmentin particular, the growing wealth, gross
domestic production, and income per capita of many developing economies.
Investors in the Asia-Pacific region are becoming more familiar with mutual
funds as a valuable way to manage and grow their assets, commented
Qiumei Yang, Executive Vice President, Head of Asia-Pacific for ICI Global.
Also, access to cross-border funds, though currently not uniformly available
across the region, is increasing. We believe that if investors have access to a
wider range of funds, they will increase their use of funds.
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.
Industry profile State wise:Mutual fund investments are subject to market risks. But when it comes to
business, Gujaratis in Gujarat
risks. This tendency remained intact amid volatility and lower return in equity
markets as Gujaratis increased their investments in mutual fund by Rs9,833
crore. However, it still lags behind growth in bank deposits.
According to the official data of Association of Mutual Funds of India (AMFI)
as on September 2015 total assets under management (AUM) from
Gujarat stood at Rs46,396 crore compared to Rs36,582 crore in September
2013
There is a steady increase in mutual fund investments from Gujarat. The
investment objective may have changed from pure equity to a debt -oriented
scheme. However, awareness about the investment in mutual funds is
definitely increasing, said the regional head of a large mutual fund.
Penetration of mutual fund is still less, but there is an increasing trend from
direct investment in equities to putting the money in mutual funds. Systematic
Investment Plans (SIP) that allows people to invest money in installments is
one of the reasons why investors from smaller towns are also attracted.
History has also suggested that even in volatile environment mutual funds
were able to deliver better return to investors compared to taking a risk of
direct investment, industry official added.
Other than four large cities of Gujarat, 10 small towns from Gujarat also
featured in the top-100 list of highest investment in mutual fund as compiled
by the AMFI. Except Surat and Jamnagar where AUMs have declined
showing redemption by investors, all other cities have shown a steady
increase in AUM between 2015 and 2013.
However, it should be noted that mutual fund industry has a long way to go as
compared to traditional savings or investment products. For example: bank
deposits in Gujarat stood at Rs3.93 lakh crore and the same saw an increase
of Rs1.01 lakh crore in the last two years. For safe, liquid although a lower
return, people still prefer bank deposits over mutual fund investment are not
PESTEL Analysis:
PESTEL is an acronym that stands for political, economical, social,
technological, environmental and legal. It is used to describe an analysis that
is used for determining the opportunities and risks of global expansion.
Political factors
Political forces have a great on financial services industry. Political
factors have important influence in terms of the ownership and
therefore objectives of financial institutions. Any political announcement
or decision can bring forth a welter of proposals on capital regulation,
liquidity and leverage controls, and governance and remuneration
issues. These changes affect financial structure and the behavior of
borrowers and lenders.
For example, the Indian governments decision to allow FDI in multibrand retail sent the stock markets up. Allowing FDI in insurance to
49% would might see changes in the ownership pattern of many
insurance firms or attract new ones. This would affect the behavior of
investors.
Economic factors
Financial services industry is the most vulnerable to economic factors.
The stage of the economy, growth or decline in the economy, etc.
would affect the financial services industry at large. Economic indicates
like the GDP, purchasing power parity, inflation, etc. would determine
the rates of interest in the economy which has a substantial impact on
the way the intermediaries in the financial services industry operate.
Events like wars, greatly affect the stability of the financial services
industry. In other words they can say that the growth or development of
financial services industry is largely dependent on the state of economy
of the country.
Social factors
Social factors include the culture aspects and include health
consciousness, population growth rate, age distribution, career
attitudes and emphasis on safety. Trends in social factors would affect
the financial services industry. For example, an aging population may
imply a smaller and less-willing work-force, more investment in risk free
avenues, etc. furthermore, intermediaries in the financial services
industry may have to change various management strategies to adapt
to these social trends (such as recruiting older workers).
Technological factors
Technological factors also affect the financial services industry at large.
Previously, share certificates represented ownership rights, however
with technological changes they are now held in dematerialized form.
Opening accounts with banks, mutual funds and insurance companies
online; electronic transfer of funds ATM services; mobile banking; etc.
are all because of the technological changes in the world and financial
services industry is also affected by the same. It has to continuously
change the way it functions along-with the changes in technological
factors to survive in the competitive environment.
Environmental factors
Environmental factors include ecological and environmental aspects
such as weather, climate and climate changes. These factors may not
deeply affect the financial services industry; however, it may affect
insurance companies and the commodities markets. For example,
uncertainty in the amount of rainfall has led to development of new
insurance product such as weather insurance. Also shortfall of rainfall
would increase the price of commodities which would affect the
commodities market.
Legal factors
Legal factors include discrimination law, consumer law, antitrust law,
employment law, and health and safety law. These factors can affect
how intermediaries in the financial services industry operate, their
costs, and the demand for the products and services offered by them.
Laws relating to accounting standards, definitions, incorporation rules,
bankruptcy, solvency, and transparency all have an impact on the
financial services industry.
AMFI has started to disclose some additional data related to Mutual Fund
investments from October, 2015. Today, they look at a snapshot of this data:
14.5 Lakh Crores in Mutual Funds Assets managed by the MF Industry has
increased from Rs. 10.7 lakh crore in Oct-14 to Rs. 14.5 lakh crore in May16 with Debt funds taking the most investment at 45 paise of every rupee
invested.
( Figure No : 2.2)
Here is the chart clearing showing the domination of the Institutions while
investing in Mutual Funds
( Figure No : 2.2)
commanded the highest increase at 62% though it has only Rs. 0.26 lakh
crore worth assets followed by Equities at 48% (Rs. 4.45 lakh crore assets)
and Debt Funds at 32% (Rs. 6.23 lakh crore assets). The EPFO investing
through ETFs started last year would have made this change.
While Individual investors prefer equity over debt for investments, Institutions
have preferred Debt over liquid funds.
Debt + Liquid funds account for a little below 90% of the assets for
Institutions while for Individual Equity + Debt funds account for a little over
95% of the assets.
Here is how the investment decisions were spread across the different
schemes between Individuals and Institutions:
( Figure No : 2.3)
( Figure No : 2.4)
everything else.
Over 83% of the assets (Rs. 12.1 lakh crore) have come from Top 15
locations while the remaining 17% (Rs. 2.31 lakh crore) has come from nonT15 locations.
T15 investors clearly love investing in Non-Equity funds when compared to
Equity Funds. Their average investment in Equity Funds has been 72% of the
assets (Rs. 8 lakh crore) while the non-T15 investors prefer a perfect
weightage between equities and non-equities. This can be explained by the
fact that most institutions and corporates are in T-15 locations (big cities).
The B15 location coverage is actually falling for both individuals and
institutions. Individual ownership in B15 has fallen about 0.5% in terms of
marketshare since last year.
( Figure No : 2.5 )
Distributors vs Direct
39% of the assets of the mutual fund industry came directly. This has been
growing.
64% of liquid/ money market scheme assets where institutional investors
dominate were direct,whereas 43% of debt oriented scheme assets were
direct.
Proportion of direct investment in equity to the total assets held by individual
investors was about 5.6% in May 2016.
( Figure No : 2.6)
( Figure No : 2.7)
Major players:
Axis Mutual Funds
Axis Bank, formerly known as Unit Trust of India, is one of the most prominent
private banks in the country. The bank offers financial services and products
in segments of retail banking, commercial banking, asset management,
agriculture banking and corporate banking. Axis Bank is head-quartered in
Mumbai and has international presence in countries like UAE, UK, Sri Lanka,
China and Hong-Kong Axis mutual funds were launched in the year 2009 with
an accomplished suite of 53 mutual fund schemes. Today, Axis mutual funds
are available to customers in over 75 cities and have a customer base of over
7 lac investors. Axis mutual funds are a professionally managed, pool of
Bharti AXA
Bharti AXA is a joint venture between Bharti Enterprises and AXA investment
managers. AXA investment managers is a part of AXA group which is known
as the world leader in financial protection and wealth management. It was
established in December 2006. The joint venture has a 74% stake from Bharti
and 26% from AXA. It offers a range of life insurance and wealth management
products. Bharti AXA Mutual Fund is an asset management company of India.
The company is controlled by Bharti AXA Investment Managers Private
Limited. It offers a variety of schemes including open ended funds, equity
funds and tax saving funds. It implements rigid risk control methods to
decrease the risk factor for the investors. The major objective of the schemes
offered by Bharti AXA Mutual Fund is to generate maximum returns to the
investor.
inheritance and financial goals of the customers. The schemes offer investors
with both conservative as well as aggressive investment plan
MOSt 50 Basket. Midcap 100 was Indias first Midcap ETF based on the CNX
Midcap Index. Midcap 100 is an open ended Index Exchange Traded Fund
which seeks results corresponding to the price performance. NASDAQ 100
was Indias first US equity ETF. NASDAQ 100 is an open ended Index
Exchange Traded Fund which seeks investment returns corresponding to the
performance of the NASDAQ-100 Index. Motilals 10 year gilt fund, the
countrys first fund to offer access to the 10 year benchmark G-sec . The
MOSt 10 year gilt fund invests 90-100% in the 10 year benchmark G-sec and
therefore accounts for nearly 50-60% of the daily trade. Lastly, MOSt Gold
Shares was Indias first Gold ETF to convert ETF units into physical gold. The
MOSt Gold Shares offer imported gold at a lower price by redeeming ETF
Units
Major offerings
The financial services industry has a wide range of products or offering
available to the public at large. Few of them are listed below:
Funds)
and
SIPs
(Systematic
Investment
Plans)
Better
3. Company Profile
a. Company profile :NJ Group is a leading player in Indian financial service industry known for its
strong distribution capabilities. It started in year 1994 by two Surat based
aspirants namely Neeraj Choksi and Jignesh Desai. They initially started the
business as agents and contact to investors directly. Then, they develop the
idea of a distributor network in year 2003. The reason behind this decision
was the reason that there exists a pool of potential investors in India itself and
it is very difficult to contact them personally. So, they thought that instead of
contacting the investors directly, they will develop a network of agents who
will in turn contact the investors
An evolving, emerging & enterprising group with it's' roots in the financial
services sector and today expanding into newer horizons with great passion.
The vision of the group is to be leaders in businesses driven by customer
satisfaction, commitment to excellence and passion for continued value
creation for all stakeholders. This vision has helped them to grow and build
the trust of Their customers and associates which is at the cornerstone of
everything they do. Trust is also at the heart of their success and the driver for
passion for success.
NJ Group is a leading player in the Indian financial services industry known
for its' strong distribution capabilities. The journey of NJ began in 1994 with
the establishment of NJ India Invest Pvt. Ltd., the flagship company, to cater
to investor needs in the financial services industry. Today, the NJ Wealth
Products:
NJ offers advisory and distribution services on the following products.
Investment Products
Mutual funds covering all AMCs & all schemes,
Fixed Deposits of companies,
PMS products (Third party & NJ)
Government/RBI bonds,
Infrastructure Bonds,
Approved securities for charitable trusts, etc
Real Estate
Residential properties
Commercial properties
Training & Education
Certification training courses
AMFI
CFP
Training products
Services
Trading &Demat Account
NJ India Invest Pvt Ltd offers benefits of trading and depository services under
one roof. NJ is registered as a Member with Bombay Stock Exchange (BSE)
& National Stock Exchange (NSE). NJ is also registered as a Depository
Participant of CDSL. Dematerialization and trading in the demat mode is the
safer and quicker alternative to holding physical securities. Under the
depository services the securities are held in electronic form for the investor
directly by Depository.
At NJ, they are committed to provide complete depository services which are
convenient, safe and secure. Customers can approach the DP Helpdesk for
any queries & grievances that they may have.
Mission
Ensure creation of the desired value for their 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
Management Team
Mr. Neeraj Choksi& Mr. Jignesh Desai (R) are two first generation
entrepreneurs who began the journey of 'NJ' in 1994. The promoters of the NJ
Group were friends since their college years and the bond between Mr.
Neeraj& Mr. Jignesh has been instrumental in the success of NJ. Discussing
upon important things before taking any decision, is a habit that they have
followed ever since they shared their hostel room in Vidhyanagar, where Mr.
Neeraj was studying his management courses and Mr. Jignesh was into
engineering. They both have a complementary style of functioning that augurs
perfectly well for the business.
Driven by their passion for financial well-being of customers & the mission for
transforming lives, the promoters have successfully put NJ on the forefront of
innovation & growth. With a humble beginning from home, the promoters have
successfully shaped the group's forays into many diversified businesses. Both
believe that 'Trust' has played a very important role in NJ's journey, and in
every step that they have taken. The words of the promoters aptly describes
this journey of NJ 'Built on Trust'.
FUNCTIONAL TEAM:
Mr. Abhishek Dubey
Abhishek Dubey is the Head of Strategic Business Development Unit and part
of NJ since last 9 years. Abhishek has played a key role in building the policy,
process & system structures at NJ. He is the Chief Policy & Communications
officer and also responsible for publications and the front-end - websites &
online desks at NJ.
Col. C M Dixit
Col. C M Dixit is the Head of Administration Function. A member of the Indian
Army for 39 years, he joined NJ after retirement and has been with us for
nearly 6 years. He has been very particular in managing the assets, services
and the infrastructure at all NJ offices.
Mr. MohammadaliSaiyed
Mohammadali Saiyed is responsible for the Finance Function at NJ. He is a
member of the ICAI and has an experience of nearly 5 years at NJ.
NJ INDIAINVESTS ACHIEVEMENT
NJIndia Invest is a growing company that can be very well proved from the
below achievements.
They have gained a dominant place in the Indian mutual funds distribution
business
Certified by the Association of Mutual Funds as AMFI registered Mutual
Funds advisors
Won the Pru Chairmans award twice in the year 2000 and 2002 for
outstanding performance in the scheme of Prudential ICICI Mutual Fund. The
chairman, prudential, presented the award at London both the times.
Won many other awards and certificates for outstanding performance in
various Mutual Funds schemes.
It has acquired about 15 to 17% share of total mutual fund business of
Gujarat.
Received the award for the year 2003-04 from HDFC mutual fund for highest
selling of mutual funds. NJs director at Scotland received the award.
b. Organogram
Managing
Director
Head
Manager
Senior
excutive
Assistant
excutive
( Figure No : 3.1)
c. Division/Department
Managing director
Mr. Neeraj Choksi
Mr. Jignesh Desai
National Head
Mr. Mishbhah
Buxamusa
Zonal manager
Mr. Sarfaraj Patel
Reginal Manager
Mr. Apurva Shah
Branch
manager
Mr. Dipak Naik
Unit Manger
Mr.Sallhudin
Mr. Sarthak
Mr. Ishteyaq
Branch manager
Mr. Ravi
Real
state
Mr.
Harsh
Unit
manger
Mr.
Avinash
Mr.
Harshid
( Figure No : 3.2 )
Real state
Mr.
Bhagirath
Branch manager
Mr. Chirag Desai
Unit manegr
Mr.Jignesh
Mr.Nirmal
Pioneer ITI
HDFC Mutual Fund
JM Mutual Fund
SBI Mutual
Standard Chartered Mutual Fund
Tata Mutual
SWOT ANALYSIS
STRENGHTHS
NJ India Invest is a dominant player in the Indian Mutual Funds distribution
business with over a decade of experience.
NJ can also provide personal websites to its clients.
NJ India Invest has about 16% to 18.5% share of total Mutual Fund business
of Gujarat.
NJ India Invest has Assets Under Management (AUM) more than 950 cores.
NJ India Invest has tie up with almost 25 AMC out of 37 operating in the
Mutual Fund industry.
NJ India Invest provides best services in the industry using cutting age of
technology.
WEAKNESES
There are some complaints from advisors side regarding irregular
dispatchment of commission.
NJ India Invest, in some cases, cant convince their clients about the
helpfulness of the services provided by the company.
OPPORTUNITY
NJ India Invest has great opportunities in front of it as the Mutual fund has not
penetrated in the Indian financial market.
NJ India Invest can utilize the dominant position it has and optimally use the
huge network of its partners.
NJ India Invest can use its network of partners in selling Insurance; even
company can jump in to share trading business.
THREATS
NJ India Invest is facing competition from the new entrant like Anagram
Security, Karvy Security and many new and local players.
Market Position
NJ Wealth - Financial Products Distributors Network is one of India's leading
and most successful network of distributors in the financial services industry.
Started in 2003, the NJ Wealth seeks to reach out to the common man and
extend the opportunity to create wealth through an empowered network of
financial product distributors the NJ Wealth Partners. To its Partners, NJ
Wealth provides a full service, comprehensive business platform with end-toend solutions critical for success in financial products distribution practice.
With it's 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 makes a difference.
Driven by the strong vision of 'Creating Wealth and Transforming Lives', NJ
Wealth's constant endeavour 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 21,000+ NJ
Wealth Partners, spread across 94 branches in 21 states in India with over
9,70,000+ investors and over INR 21,500+ crores + 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.
4. Review of Literature
77
performance
to
pursue
social
or
ethical
objectives.
on
corporate
finance,
asset
pricing,
and
financial
intermediation.
Beha De Bondt, Werner FM. Behavioral finance models often rely on
a concept of noise traders who are prone to judgment and decisionmaking errors. What do noise traders do? they review prior research
and present new survey evidence on the behavior of small individual
investors who manage their own equity portfolios. Many people
(1) discover naive patterns in past price movements, (2) share popular
models of value, (3) are not properly diversified, and (4) trade in
suboptimal ways.
Goetzmann, William N., and Nadav Peles. they present evidence
from questionnaire responses of mutual fund investors about
recollections of past fund performance. they find that investor
memories exhibit a positive bias, consistent with current psychological
models. they find that the degree of bias is conditional upon previous
investor choice, a phenomenon related to the well-known theory of
cognitive dissonance. Psychological and economic frictions in the
mutual fund industry are examined via a cross-sectional study of equity
mutual funds. They find an unusually high frequency of poorly
performing funds, consistent with investor inertia. they also examine
the differential responses of investment dollars to past performance,
controlling for survivorship. These show that the effect is confined to
the top quartile. they find little evidence that the response to poor
performance is unusual.
Arnswald, Torsten. A broad-based questionnaire survey, which
received a high response from German mutual f und companies,
sheds light on the black box of institutional equity investing in a
systematic manner. The survey asked for fund managers' basic views
79
and practices and for insights into their company's performancemeasuring and compensation incentives. While the results suggest
that professional equity investors primarily recognise underlying
economic information as a source of superior value, there are also
strong indications for destabilising behavioural factors arising from the
choice of information sources and investment strategies and styles.
Attempts at fundamental arbitrage are likely to be constrained
significantly by time horizons and the fear of market movements.
Agency problems are shown to have a bearing on equity fund
managers' investment behaviour.
Bailey, Warren, Alok Kumar, and David they examine the effect of
behavioral biases on the mutual fund choices of a large sample of US
discount brokerage investors using new measures of attention to news,
tax awareness, and fund-level familiarity bias, in addition to behavioral
and demographic characteristics of earlier studies. Behaviorally biased
investors typically make poor decisions about fund style and expenses,
trading frequency, and timing, resulting in poor performance.
Furthermore, trend chasing appears related to behavioral biases,
rather
than
to
rationally inferring
managerial
skill
from
past
80
affect
international
portfolio
investment?
portfolio
holdings.
they
distinguish
between
The mutual fund sectors are one of the fastest growing sectors in
Indian Economy and have awesome potential for sustained future
growth. Mutual funds make saving and investing simple, accessible,
and affordable. The advantages of mutual funds include professional
management,
diversification,
variety,
liquidity,
affordability,
perception about mutual funds. It was found that mutual funds were not
that much known to investors, still investor rely upon bank and post
office deposits, most of the investor used to invest in mutual fund for
not more than 3 years and they used to quit from the fund which were
not giving desired results. Equity option and SIP mode of investment
were on top priority in investors list. It was also found that maximum
number of investors did not analyze risk in their investment and they
were depend upon their broker and agent for this work.
84
the disposition effect, meaning the disposition to sell winners too early
and to hold on to losers too long. The helps him present recent
evidence on the disposition effect and introduce some of the basic
concepts from behavioral finance for those new to the subject. Next,
the author addresses the issue of overconfidence, one of the most
prevalent behavioral phenomena. He reviews these findings which are
based on recent studies about the forecasts, trades, and performances
of participants in investment clubs. Finally, he examines two issues that
are specifically relevant for retirement portfolios, although they also
have more general implications. The first involves naive diversification
and the second pertains to the rules investors use to determine how
quickly retirement nest eggs are spent.
This
88
5. Research Methodology
Problem statement
To study the investors Buying Behavior Towards Mutual Fund
Research Objective
To identify the investors behaviour towards Mutual funds
To identify the consumer buying process of mutual fund
To identify the factors which influence the customers to purchase mutual fund
Research design
Descriptive research is used to collect information about Mutual Fund investor.
Therefore it is used in the study to describe the behavior of particular population
in a systematic and accurate way.
Samplings
Sampling size
Population : Investors of Mutual fund of Surat city
Sample Size : 150 respondents
Sampling Method
Non Probability convenience sampling method is used to collect the data from
the respondents.
Data collections
Primary Data Collection: - The Primary information is collected from the various
respondents through a questionnaire.
Secondary Data Collection: - Secondary information is also collected for
understanding the topic in better way. Its give clarity about the study. And this
information collects through website, journals, books and articles.
Tools for analysis
90
For the purpose of analysis various analytical approaches I have used various
charts, percentage, frequency. And all this analysis is done through Microsoft
Excel and SPSS Software.
91
Respondent Profile
1. Age :
Age
Frequency
Percentage
18-30 years
16
10.7
31-45 years
76
50.7
46-60 years
55
36.7
>60 years
2.0
Total
150
100
( Table No : 6.1 )
Percent
120
100
100
80
60
50.66666667
36.66666667
40
20
10.66
2
0
18-30 years
31-45 years
46-60 years
>60 years
Total
( Figure No : 6.1 )
Interpretation : From the above chart it is conveyed that that 50.7%
respondents are of 18-30 years , 36.7% respondents are of 46-60
years,10.7% respondents are of 18-30 years and 2% of respondents
are of more than 60 years
93
2. Occupation
Occupation
Frequency Percentage
Student
1.3
Salaried
73
48.67
Self Employed
58
38.67
Housewife
Retired
5.33
Total
150
100
( Table No : 6.2)
Student
Salaried
Self Employed
Housewife
Retired
1%
6%
5%
49%
39%
( Figure No : 6.2)
Interpretation : From the chart it is convey that 48.67% respondents
are Salaried person 38.67%
respondents are house wife, and 5.33% respondents are retired and
1.3% respondent are Student
94
3. Educational Qualification
Qualification
Frequency Percentage
Below HSC
5.3
Under Graduate
16
10.7
Graduate
42
28.0
Post Graduate
79
52.7
Doctorate
3.3
Total
150
100
( Table No : 6.3 )
Below HSC
Under Graduate
Graduate
Post Graduate
Doctorate
3%
5%
11%
28%
53%
( Figure No : 6.3)
Interpretation :
95
Graduate
,8%
respondents
qualification
is
Below
HSC,
Frequency
Percentage
< 150000
4.7
150000 to 3000000
34
22.7
300001 to 500000
80
53.3
>500000
29
19.3
Total
150
100
( Table No : 6.4)
Frequency
90
Percentage
80
80
70
60
53.3
50
40
34
30
29
22.7
20
10
19.3
4.7
0
< 150000
( Figure No : 6.4)
96
>500000
5%
Frequency Percentage
< 10%
10-15%
40
26.7
16-30%
89
59.3
>30%
22
14.0
Total
150
100
( Table No : 6.5)
97
Frequency
100
Percentage
89
90
80
70
59.3
60
50
40
40
26.7
30
22
14
20
10
0
< 10%
10-15%
16-30%
>30%
( Figure No : 6.6)
Interpretation: From the above chart it is conveyed that 59.3 % of
respondents invest there 16-30% of income, 26.7% invest there 1015% of income , 14% of respondents invest there more than 30% of
income
Frequency
Percentage
Life Insurance
72
48.0
76
50.7
Real Estate
89
59.3
Gold
41
27.3
NC/PPF/Post
37
24.7
98
Share Market
92
61.3
Mutual Funds
100
100
Others
Total
150
100
( Table No : 6.7)
Frequency
Others
0%
Life
Insurance
14%
Mutual Funds
20%
Share Market
18%
Bank Fixed
Deposit
15%
Real Estate
18%
Gold
8%
NC/PPF/Post
7%
( Figure No : 6.7)
Interpretation :
99
Frequency Percentage
Friends / Relatives
89
59.3
TV / Newspaper/Magazine
28
18.7
84
56.0
Online
36
24.0
Others
Total
150
100
( Table No : 6.8)
Frequency
Others
0%
Online
15%
Broker / Agent /
Advisors / Bank
35%
Friends /
Relatives
38%
TV /
Newspaper/Mag
azine
12%
( Figure No : 6.8)
100
Interpretation: 59.3%
Frequency
Percentage
Retirement Planning
Wealth Creation
38
25.3
37
24.7
Tax Benefit
28
18.7
47
31.3
Others
Others
0%
Frequency
Retirement
Planning
0%
To add
Diversification Wealth Creation
in Management
25%
31%
Tax Benefit
19%
Children
Education/
Marriage
25%
( Figure No : 6.9)
101
Frequency Percent
Not important
4.7
Neutral
29
19.3
important
33
22.0
Very important
81
54.0
Total
150
100
( Table No : 6.10)
60
50
40
30
Datenreihen1
20
10
0
not at all
important
Not important
Neutral
important
( Figure No : 6.10)
102
Very important
Transparency
Factors
Frequency
Percent
Not important
4.0
Neutral
23
15.3
Important
48
32.0
Very important
73
48.7
Total
150
100.0
( Table No : 6.11)
60
50
40
30
Percent
20
10
0
Not at all
important
Not
important
Neutral
Important
( Figure No : 6.11)
103
Very
important
Liquidity
Factors
Frequency
Percent
Not important
4.7
Neutral
28
18.7
Important
48
32.0
Very important 67
44.7
Total
100
150
( Table No: 6.12)
50
45
40
35
30
25
Percent
20
15
10
5
0
not at all
important
Not
important
Neutral
Important
( Figure No : 6.12)
104
Very
important
Past Return
Factors
Frequency
Percent
Not important
5.3
Neutral
25
16.7
Important
64
42.7
Very important
53
35.3
Total
150
100
( Table No : 6.13)
45
40
35
30
25
20
Percent
15
10
5
0
Not at all
important
Not
important
Neutral
Important
( Figure No : 6.13)
105
Very
important
important,
16.7% considered Past returns Neutral and and 5.3% considered Past returns
Not important factor while investing in Mutual Fund
Tax Benefits
Factors
Frequency
Percent
Not important
2.7
Neutral
19
12.7
Important
78
52.0
Very important
49
32.7
Total
150
100
( Table No : 6.14)
106
60
50
40
30
Percent
20
10
0
not at all
important
Not
important
Neutral
Important
Very
important
( Figure No : 6.14)
important,
12.7% considered Tax Benefit Neutral and and 2.7% considered Tax Benefit Not
important factor while investing in Mutual Fund
Regular Savings
Factors
Frequency
Percent
Not important
4.7
Neutral
18
12.0
Important
81
54.0
Very important
44
29.3
Total
150
100
( Table No : 6.15)
107
60
50
40
30
Percent
20
10
0
Not at all
inportant
Not
important
Neutral
Important
Very
important
( Figure No : 6.15)
Frequency
Percent
Not important
2.0
Neutral
24
16.0
Important
62
41.3
Very important
61
40.7
Total
150
100
( Table No : 6.16)
108
50
45
40
35
30
25
Percent
20
15
10
5
0
Not at all
important
Not
important
Neutral
Important
Very
important
( Figure No : 6.16)
Factors
Frequency
Percent
Not important
.7
Neutral
24
16.0
Important
69
46.0
Very important
56
37.3
Total
150
100.0
109
( Table No : 6.17)
45
40
35
30
25
20
Percent
15
10
5
0
Not at all
important
Not
important
Neutral
Important
Very
important
( Figure No : 6.17)
110
Charges
Factors
Frequency
Percent
Not important
1.3
Neutral
18
12.0
Important
54
36.0
Very imp
76
50.7
Total
150
100.0
( Table No : 6.18)
60
50
40
30
Percent
20
10
0
Not at all
important
Not
important
Neutral
Important
Very imp
( Figure No : 6.18)
Charges are Very important factor, 36% considered Charges are important ,
12% considered Charges are Neutral and 1.3% considered charges are Not
important factor while investing in Mutual Fun
111
Convince
Factors
Frequency
Percent
Not important
.7
Neutral
20
13.3
Important
54
36.0
Very important
75
50.0
Total
150
100.0
( Table No : 6.19)
60
50
40
30
Percent
20
10
0
Not at all
important
Not
important
Neutral
Important
Very
important
( Figure No : 6.19)
112
Frequency
Percentage
Equity
Debt
38
25.3
Balance
112
74.7
Others
Total
150
100
( Table No : 6.20)
Equity
Debt
Balance
Others
0% 0%
25%
75%
( Fig. No : 6.20)
Interpretation: 74.7 respondents prefer to invest in Balance Fund and
25.3% respondents prefer to invest in Debt Fund
113
Time Period
Frequency
Percentage
<1 year
1-3 years
45
30.0
4-6 years
82
54.7
>6 years
23
15.3
Total
150
100
(Table No : 6.21)
Frequency
90
Percentage
82
80
70
54.7
60
45
50
40
30
30
23
15.3
20
10
0
<1 year
1-3 years
4-6 years
>6 years
( Figure No : 6.21)
Interpretation:
respondents take 1-3 years and 15.3% respondents take more than 6
years time period to invest in mutual fund
114
Frequency
Percentage
97
64.7
53
35.3
Total
150
100
( Table No : 6.22)
35%
65%
( Figure No : 6.22)
Interpretation: 64.7% of respondents prefer Systematic Investment
Plan
(SIP)
and
35.3%
of
respondents
prefer
One
Time
115
13. Which option to get returns you generally opt for while
buying / investing in mutual fund :
Option To get Return
Frequency Percentage
Dividend Payout
Dividend Reinvestment
35
23.3
Growth
115
76.7
Total
150
100
( Table No : 6.23)
Dividend Payout
Dividend Reinvestment
Growth
0%
23%
77%
( Figure No : 6.23)
Interpretation: 76.7% respondents opt Growth option and 23.3%
respondents opt Dividend Reinvestment option to get return while
investing in mutual funds
116
Frequency Percentage
Through Agent/Advisor/Broker
63
Through Bank
15
42.0
Online
72
58.0
Total
150
100
( Table No ; 6.24)
Frequency
Through Agent/Advisor/Broker
Through Bank
Online
42%
48%
10%
( Figure No : 6.24)
Interpretation: 72% of respondents invest through Online and 15%
respondents invest through Bank and 63 % invest through through
Agent/Advisor/Broker
117
Frequency Percentage
Self Decision
2.0
Media Reports
52
34.7
Advertisements
24
16.0
71
47.3
Others
( Table No : 6.25)
Family/ Others
0%
Friends/
Relatives
2%
Self Decision
0%
Media
Reports
35%
Broker/ Agent
/ Advisor/
Bank advice
47%
Advertisemen
ts
16%
( Figure No : 6.25)
118
Interpretation:
47.3%
respondents
decision
influence
by
16.
Frequency Percentage
Always
Very Often
14
9.3
Sometimes
95
63.3
Rarely
24
16.0
Never
17
11.3
Total
150
100
( Figure No : 6.26)
119
Always
Very Often
Sometimes
Rarely
Never
0%
11%
9%
16%
64%
( Figure No : 6.26)
17.
Frequency
Percentage
Lump Sump
62
41.3
88
58.7
Total
150
100
( Table No : 6.27)
120
Frequency
Lump Sump
0%
Systematic
withdrawal
Planning (
SWP)
41%
Partial
withdrawal
plan
59%
( Figure No : 6.27)
121
18.
Frequency
Percentage
Definitely Wont
Probably Wont
54
36.0
Cant Say
84
56.0
Probably Will
10
6.7
Definitely Will
1.3
Total
150
100
( Table No : 6.28)
1% 0%
Definitely Wont
Probably Wont
Probably Will
Definitely Will
7%
36%
56%
( Figure No : 6.28)
122
Cant Say
Interpretation : 56%
123
( Figure No : 6.29)
124
125
How many percentage (approximately) of your total income do you invest per
annum * Annual family income (in Rs.) Cross tabulation
Percentage (approximately)
of total income invest per
annum
Total
<
15000
0
150000 to
300000
300001 to
500000
>
50000
0
1015%
13
20
40
1630%
15
50
19
89
>30
%
10
21
34
80
29
150
Total
( Table No : 6.29)
Chi-Square Tests
Value
Pearson ChiSquare
6.236
Likelihood Ratio
Df
Asymp.
Sig. (2sided)
6
.397
7.229
.300
Linear-by-Linear
Association
2.120
.145
N of Valid Cases
150
( Table No : 6.30)
126
Age
1830
year
s
Debt
Balance
Total
31-45
years
Total
46-60
years
>60
years
18
15
38
12
58
40
112
16
76
55
150
( Table No : 6.31)
127
Chi-Square Tests
Value
Df
Pearson ChiSquare
Likelihood Ratio
Linear-by-Linear
Association
N of Valid Cases
.321a
Asymp. Sig.
(2-sided)
.956
.315
.193
3
1
.957
.660
150
( Table No : 6.32)
128
Options
Educational Qualification
Total
Below
HSC
Und
er
Grad
uate
Gra
duat
e
Post
Grad
uate
Docto
rate
Family/
Friends/Relatives
Media Reports
18
24
52
Advertisement
11
11
24
Broker/ Agent
/Advisor/Bank
advice
12
43
71
16
42
79
150
Total
( Table No : 6.33)
Chi-Square Tests
Value
Pearson ChiSquare
Likelihood Ratio
Linear-by-Linear
Association
N of Valid Cases
Df
12.98
1a
14.79
4
.729
150
( Table No : 6.34)
129
12
Asymp.
Sig. (2sided)
.370
12
.253
.393
Interpretation: Here, value of chi square is 0.370( which is greater than 0.05)
so there is no significant relation between Influence decision while investing in
mutual funds and Educational Qualification
130
Findings
59.3 % of respondents invest their income for the investment
Majority of the respondent considered family/ relatives and agent advisors
as a source of information before purchasing/investing in mutual funds
Main purpose of investors to invest in mutual fund is to add diversification
From the important factors which are considered in mutual fund 54.7% of
respondent considered safety as a Very important factor,37.3% of
respondent considered professional fund management and diversification
as an important factor , 18.7% of respondents are neutral and 7%
considered not important the above mentioned factors
74.7% of investors prefer to invest in Balance Fund
54.7 % of respondents take 4-6 years of time period to invest in mutual
fund
64.7% of respondents prefer Systematic Investment Plan (SIP) as a mode
of investment while investing in mutual funds.
76.7% respondents opt Growth option to get return while investing in
mutual fund
72% of respondents invest through Online
47.3% respondents decision influence by Broker/Agent/Advisor/Bank
advice
63.3% of respondent sometimes track their fund value of mutual fund after
investment
58.7% of respondents prefer Partial withdrawal Planning while
withdrawing money in mutual funds.
56% of respondents Cant Say that they will prefer to invest in mutual
fund over other investment avenues in future.
50.7% of respondents are of the age of 46-60 years
48.67% of the respondents are salaried person
131
132
Conclusion
From the above report it is concluded People do investment with the
suggestion of their friends and relatives ,agent and advisors also. There
main purpose to invest is to add diversification and for the professional
fund management . Most of them prefer to invest in balance fund so they
can track the value of the fund. So this way mutual fund have become one
of the most attractive way for the average person to invest their savings
A Mutual Fund pools resources from thousands of investors and then
diversifies its investment into many different holdings such as stocks,
bonds or Government securities in order to provide high relative safety
and returns .Also generate leads of the prospective investors in Mutual
Funds for the asset Management Company ( AMC)
There are Many Improvement Pending in the field and it has to happen as
soon as possible so as to call the Mutual Fund industry as an Organized
and well developed sector.
133
7. Bibliography
134
Khorana, Ajay, and Henri Servaes. "What drives market share in the
mutual fund industry?." Review of Finance 16.1 (2012): 81-113.
135
Mller, Sebastian, and Martin Weber. "Financial Literacy and Mutual Fund
Investments: Who Buys Actively Managed Funds?." Schmalenbach
Business Review 62 (2010): 126-153.
Bollen, Nicolas PB. "Mutual fund attributes and investor behavior." Journal
of Financial and Quantitative Analysis 42.03 (2007): 683-708.
<https://www.amfiindia.com/research-information/mf-history>.
<https://www.dnb.co.in/BFSI2009/BrokingOverview.asp>.
<http://business.mapsofindia.com/india-company/top-10-brokeragefirms.html>.
<http://www.mydigitalfc.com/mutual-funds/gujarat-investors-love-equityfunds-delhiites-fancy-debt-778>.
<http://www.investopedia.com/terms/f/financial-advisor.asp>.
<http://www.reliancecapital.co.in/Perspectives-2016-Reliance-MutualFund.aspx>.
136
<https://www.iciglobal.org/iciglobal/news/news/ci.14_news_icig_globalisati
on.global>.
<http://www.njgroup.in/businesses.php>.
Das, Bhagaban, Sangeeta Mohanty, and Nikhil Chandra Shil. "Mutual fund
vs. life insurance: Behavioral analysis of retail investors." International
journal of Business and management 3.10 (2009): p89.
Walia, Nidhi, and Ravi Kiran. "An analysis of investors risk perception
towards mutual funds services." International Journal of business and
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137
138
Annexure:
Respected Sir/Madam,
I, Jyoti B.Dabhi, student of M.B.A from S.R Luthra Institute of Management, I am
conducting survey on A Study of Investors Buying Behavior Towards
Mutual Funds in Surat city as a part of my curriculum. I request you to spare
few minutes of your valuable time to fill up this questionnaire. I ensure that
information provided by you will be kept confidential and used for academic
purpose only.
Questionnaire
1. How many percentage (approximately) of your total income do you invest per
annum?
(
) < 10%
) 10-15%
) 16-30%
) > 30%
) Life Insurance
) Real Estate
) Gold
) NC/ PPF/Post
) Share Market
) Mutual Fund
)Others _______________
) Friends / Relatives
) TV / Newspaper/Magazine
) Online
) Others ________________
) Retirement Planning
) Wealth Creation
) Tax Benefit
) Others ________________
140
Safety
Transparency
Liquidity
Past Returns
Tax Benefit
Regular Saving
Professional fund
Management
Diversification
Benefits
Charges
Convenience
) Equity
) Debt
) Balance
) Others ________________
141
) < 1 year
) 1-3 years
) 4-6 years
) > 6 years
9. Whiich option to get returns you generally opt for while buying / investing in
mutual fund ?
( ) Dividend Payout
(
( ) Dividend Reinvestment
) Growth
( ) Through bank
( ) online
11. Who influence your decision while investing in mutual funds?
( ) Self Decision
( ) Media Reports
( ) Advertisements
( ) Others ________________
12. How frequently do you track fund value of your mutual fund after investment?
(
) Always
) Very Often
) Sometimes
) Rarely
) Never
13. Which option you generally prefer while withdrawing your money in Mutual
fund?
(
) Lump Sump
14. Will you prefer to invest in Mutual Fund over other investment avenues in
future?
( ) Definitely Wont
( ) Probably Wont
( ) Cant Say
( ) Probably Will
( ) Definitely Will
142
Personal Details:
Name:
Phone no:
Email Id:
Age: 18-30 year (
) 31-45 year (
) 46-60 year (
) >60 year (
Occupation:
( ) Student
( ) Salaried
( ) Self Employed
( ) Housewife
( ) Retire
Educational Qualification:
( ) Below HSC
( ) Under Graduate
( ) Graduate
( ) Post graduate
( ) Doctorate
Annual family income (in Rs.)?
( ) < 150000
( ) 150000 to 300000
( ) 300001 to 500000
( ) > 500000
143