By ABHISHEK JAIN
CERTIFICATE
I feel great pleasure in certifying that the thesis entitled A systematic and comprehensive analysis about awareness of mutual funds in Udaipur embodies a record of the results of investigations carried out by ABHISHEK JAIN under my guidance. I am satisfied with the analysis of data, interpretation of results and conclusions drawn. I recommend the submission of MRP.
DECLARATION
I hereby declare that the work incorporated in the present thesis entitled A systematic and comprehensive analysis about awareness of mutual funds in Udaipur is my own work and is original. This work (in part or in full) has not been submitted to any university in partial fulfillment of the award of a degree or diploma.
DATE:
/0 /2011
-----------------------------ABHISHEK JAIN
ACKNOWLEDGEMENT
It is good to have knowledge: it is good to have enthusiasm, but in order to achieve effectiveness , it is essential to have training
(Pandit Jawaharlal Nehru) I would also like to thank my project guide DR. ANIL KOTHARI sir whose able guidance this project reached its completion, who helped me at, various instance and had been kind enough to offer invaluable information about their company profile and details of their vast product range. Last but not least, I am indebted to my college, Faculty of management studies for giving me the opportunity to work on this project and avail an opportunity to learn about and interest with such a prestigious organization.
TABLE CONTENT
1. Declaration 2. Preface 3. Acknowledgement 4. Industry Profile 5. Products and service 6. Mutual fund 7. Assets management company 8. Formulation and regulation 9. Investing Strategies 10. ULIP v/s Mutual fund 11. data analysis 12. facts and finding 13. Conclusion 14. Suggestions 15. Questionnaire 16. Bibliography
INDUSTRIAL PROFILE
Introduction of Stock Market
Indian stock market is one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealing in India are meagre and obscure. The East India company was the dominate institution in those days and business in its loan securities used to be transacted towards the close of the 18th century.By1830s business stocks and shares in Bank and cotton presses took place in Bombay. Though the trading list was broader in 1839. There were only half a dozen broker recognized by banks and merchants during 1840and 1850. The 1850s witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field &by1860the number of brokers increased into 60. In 1860-61 the American civil war broke out &cotton supply from United States of Europe was stopped: thus the Share Mania in India begun. The number of brokers increased to about 200to 250.however, at the end of the American civil war in 1865, a disastrous slump began. (EX. Bank of Bombay share which had touched Rs.2850 could only be sold at Rs.87). In India they formally established in Bombay, the Native Share &Stock brokers Association (which is alternative known as The Stock Exchange).In 1895, the stock Exchange acquired a premises in the same street and it was inaugurated in 1899. Thus the Stock Exchange at Bombay was consolidated.
Placing Order
fund of securities
Trade excution
Transation Cycle
Sattelment of traders
clearing of traders
A person holding assets (securities/ funds), either to meet his liquidity needs or to reshuffle his holding in response to changes in his perception about risk &return of the assets, decided to buy/sell order the securities. He selects a broker and instructs him to place buy/sell order on an exchange. The order is converted to a trade as soon as it finds a matching sell/buy order. At the end of the trade cycle, the traders are netted to determine the obligations of the trading members Securities/ funds and acquire ownership of the securities.
A Securities translation Cycle is presented above, just because of this Transaction cycle, the whole business of Securities and stock broking has emerged. And as a reshuttle his holding in response to changes in his perception about risk and return of the assets, decides to buy or sell the securities He selects a broker and instructs him to place buy/sell order. The order is converted to a trade as soon as it finds a matching sell/buy order. At the end of the trade cycle, the traders are netted to determine the obligations of the trading members securities and receive securities /funds and acquire ownership of the Securities.
A Securities transaction cycle is presented above. Just because of this Transaction cycle, the whole business of securities and stock Broking has emerged. And as an Extension of Stock Broking, the business of online stock broking/online trading/ E-Broking has emerged.
At the end of the American civil war, the broker who thrived out of civil war in 1874, found a place in a street (now appropriately called as Dalal Street ) where establishment in Bombay, The Native Share& Stock Brokers Association (Which is alternatively known as The Stock Exchange) acquired a premise in the same street and it was inaugurated in 1899. The stock Exchange at Bombay was Consolidated.
What is an Index?
An Index shows how a specified portfolio of share prices is moving in order to give an indication of market trends. It is a basket of securities and the average price movement of the basket of securities indicates the index movement, whether upwards or downwards.
ROLE OF SEBI
The SEBI, that is, the Securities and the Exchange Board of India, is the national regulatory body for the securities market, set up under the securities and Exchange Board of India act, 1992, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith and incidental too. SEBI has its head office in Mumbai and it has now set up regional offices in the metropolitan cities of Kolkata, Delhi, and Chennai. The Board of SEBI comprises a Chairman, two members from the central government representing the ministries of finance and law, one member from the Reserve Bank of India and two other members appointed by the central government. As per the SEBI act, 1992, the power and functions of the Board encompass the regulation of Stock Exchanges and other securities markets; registration and regulation of the working stock brokers, sub-brokers, bankers to an issue (a public offer of capital), trustees of trust deeds, registrars to an issues, merchant bankers, under writers, portfolio managers, investment advisors SEBI as the watchdog of the industry has an important and crucial role in the market in ensuring that the market participants perform their duties in accordance with the regulatory norms. The Stock Exchange as a responsible Self Regulatory Organization (SRO) function to regulate the market and its prices as per the prevalent regulations. SEBI and the Exchange play complimentary roles to enhance the investor protection and the overall quality of the market.
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PRODUCT
Products:--
D SERVICES:
Service
Dail research report and market review(Hi h Noon& Eagle Eye) Pre-market Report (Morning cuppa) Daily trading calls based on Technical Analysis Cool trading products (Daring Derivatives and Market Strategy) Personalised Advice Live Market information Depository service: Demat and Remat transactions Derivative trading (Future and option) Commodities Trading IPOs &Mutual funds Distribution Internet-based Online trading: Speed Trade
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MISSION
1) 2) 3) 4) 5) 6) We shall strive to deliver value for money to the customer in all our business segments. Fostering a Customer centric approach. Facilitating Ease of transaction by leveraging technology. Providing Professional and unbiased counseling. Ensuring Transparent dealings . To provide Services in the Segment of investment: (a)Equity (b)Debt (c)Commodity (d) Currency future
VISION
1) 2) 3) To be the most trusted business house adopting a professional approach par excellence and heralding new standards in the quality of services. To be one of the most preferred organizations for wealth maximization of all our stake holders including customers, employees and channel partners. To create management systems that adopts global standards of corporate governance Corporate Social Responsibility.
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VALUE
1) 2) 3) 4) 5) 6) 7)
Customer First. Pursuit of Excellence Fairness to all Stakeholders. Transparent and Ethical conduct of business. Leveraging all business opportunities. Team work, based on mutual trust. Continuous Innovation.
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MUTUAL FUNDS
MUTUAL FUNDS: AN INTRODUCTION
y y y y y
A Mutual Fund actually belongs to the investors who have pooled their Funds. The ownership of the mutual fund is in the hands of the Investors. A Mutual Fund is managed by investment professional and other Service providers, who earn a fee for their services, from the funds. The pool of Funds is invested in a portfolio of marketable investments. The value of the portfolio is updated every day. The investors share in the fund is denominated by units. The value of the units changes with change in the portfolio value, every day. The value of one unit of investment is called net asset value (NAV). The investment portfolio of the mutual fund is created according to The stated Investment objectives of the Fund.
To provide an opportunity for lower income groups to acquire without much difficulty, property in the form of shares. To cater mainly of the need of individual investors who have limited means. To manage investors portfolio that provides regular income, growth, safety, liquidity, tax advantage, professional management and diversification.
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MUTUAL FUNDSTRUCTURE
Sponsor
Trustees
Mutual fund
Custodian
Registrar
A mutual fund is structured as mentioned above. Firstly, the investor invests his money in the fund. Every mutual fund organization has a sponsor who is required to contribute a minimum of 40% of the net worth of the AMC. It is the duty of the sponsor to establish a fund and apply to SEBI for its registration. A person or a group of persons known as trustee is given an overall authority over the fund managers. They basically safeguard the assets of the fund. The fund is created which is managed by the AMC which is given the powers to take all decisions relating to the investment. There is another entity known as the custodian, who basically stocks a funds securities and other assets. The registrar is an institution which maintains a register of all the unit holders of a fund along with their ownership. Finally, the SEBI is the ultimate authority.
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ORGANIZATION AND MANAGEMENT OF MUTUAL FUNDS In India Mutual Fund usually formed as trusts, three parties are generally involved viz.
y y y y
Settler of the trust or the sponsoring organization. The trust formed under the Indian trust act, 1982 or the trust company registered under the Indian companies act, 1956 Fund mangers or The merchant-banking unit Custodians.
Planning and formulating Mutual Funds schemes. Seeking SEBIs approval and authorization to these schemes. Marketing the schemes for public subscription. Seeking RBI approval in case NRIs subscription to Mutual Fund is Invited Attending to trusteeship function. This function as per guidelines can be assigned to separately established trust companies too. Trustees are required to submit a consolidated report six monthly to SEBI to ensure that the guidelines are fully being complied with trusted are also required to submit an annual report to the investors in the fund.
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CUSTODIANS OF MUTUAL FUNDS:Mutual funds run by the subsidiaries of the nationalized banks had their respective sponsor banks as custodians like Canara bank, SBI, PNB, etc. Foreign banks with higher degree of automation in handling the securities have assumed the role of custodians for mutual funds. With the establishment of stock Holding Corporation of India the work of custodian for mutual funds is now being handled by it for various mutual funds. Besides, industrial investment trust company acts as sub-custodian for stock Holding Corporation of India for domestic schemes of UTI, BOI MF, LIC MF, etc.
RESPONSIBILITY OF CUSTODIANS:j j j j
Receipt and delivery of securities Holding of securities. Collecting income Holding and processing cost
FUNCTIONS OF CUSTODIAN:j j j j
SCHEMES:1. Mutual funds are allowed to start and operate both closed-end and open-end schemes; 2. Each closed-end schemes must have a Minimum corpus (pooling up) of \ 20 crore; 3. Each open-end scheme must have a Minimum corpus of \ 50 crore
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4. In the case of a Closed End scheme if the Minimum amount of \ 20 crore or 60% of the target amount, which ever is higher is not raised then the entire subscription has to be refunded to the investors;
INVESTMENT NORMS:1. No mutual fund, under all its schemes can own more than five percent of any companys paid up capital carrying voting rights; 2. No mutual fund, under all its schemes taken together can invest more than 10 percent of its funds in shares or debentures or other instruments of any single company; 3. No mutual fund, under all its schemes taken together can i nvest more than 15 percent of its fund in the shares and debentures of any specific industry, except those schemes which are specifically floated for investment in one or more specified industries in respect to which a declaration has been made in the offer letter. 4. No individual scheme of mutual funds can invest more than five percent of its corpus in any one companys share; 5. Mutual funds can invest only in transferable securities either in the money or in the capital market. Privately placed debentures, securitized debt, and other unquoted debt, and other unquoted debt instruments holding cannot exceed 10 percent in the case of growth funds and 40 percent in the case of income funds. DISTRIBUTION: Mutual funds are required to distribute at least 90 percent of their profits annually in any given year. Besides these, there are guidelines governing the operations of mutual funds in dealing with shares and also seeking to ensure greater investor protection through detailed disclosure and reporting by the mutual funds. SEBI has also been granted with powers to over see the constitution as well as the operations of mutual funds, including a common advertising code. Besides, SEBI can impose penalties on Mutual funds after due investigation for their failure to comply with the guidelines.
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Moving up the risk spectrum, there are people who would like to take some risk and invest in equity funds/capital market. However, since their appetite for risk is also limited, they would rather have some exposure to debt as well. For these investors, balanced funds provide an easy route of investment, armed with expertise of investment techniques, they can invest in equity as well as good quality debt thereby reducing risks and providing the investor with better returns than he could otherwise manage. Since they can reshuffle their portfolio as per market conditions, they are likely to generate moderate returns even in pessimistic market conditions. Next comes the risk takers, risk takers by their nature, would not be averse to investing in high-risk avenues. Capital markets find their fancy more often than not, because they have historically generated better returns than any other avenue, provided, the money was judiciously invested. Though the risk associated is generally on the higher side of the spectrum, the return-potential compensates for the risk attached.
MUTUAL FUNDTYPES 1. OPEN-ENDED MUTUAL FUNDS:The holders of the shares in the Fund can resell them to the issuing Mutual Fund company at the time. They receive in turn the net assets value (NAV) of the shares at the time of resale. Such Mutual Fund Companies place their funds in the secondary securities market. They do not participate in new issue market as do pension funds or life insurance companies. Thus they influence market price of corporate securities. Open-end investment companies can sell an unlimited number of Shares and thus keep going larger. The openend Mutual Fund Company Buys or sells their shares. These companies sell new shares NAV plus a Loading or management fees and redeem shares at NAV. In other words, the target amount and the period both are indefinite in such funds.
2. CLOSED-ENDED MUTUAL FUNDS:A closedend Fund is open for sale to investors for a specific period, after which further sales are closed. Any further transaction for buying the units or repurchasing them, Happen in the secondary markets, where closed end Funds are listed. Therefore new investors buy from the existing investors, and existing investors can liquidate their units by selling them to other willing buyers. In a closed end Funds, thus the pool of Funds can technically be kept constant. The asset management company (AMC) however, can buy out the units from the investors, in the secondary markets, thus reducing the amount of funds held by outside investors. The price at which units can be sold or redeemed Depends on the market prices, which are fundamentally linked to the NAV. Investors in closed end Funds receive either certificates or Depository receipts, for their holdings in a closed end mutual Fund.
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These schemes mainly invest in equity. They seek to achieve long-term capital appreciation by responding to the dynamically changing Indian economy by moving across sectors such as Lifestyle, Pharma, Cyclical, Technology, etc.
j SECTOR SCHEMES:These schemes focus on particular sector as IT, Banking, etc. They seek to generate longterm capital appreciation by investing in equity and related securities of companies in that particular sector.
j INDEX SCHEMES:These schemes aim to provide returns that closely correspond to the return of a particular stock market index such as BSE Sensex, NSE Nifty, etc. Such schemes invest in all the stocks comprising the index in approximately the same weightage as they are given in that index.
j EXCHANGE TRADED FUNDS (ETFS):ETFs invest in stocks underlying a particular stock index like NSE Nifty or BSE Sensex. They are similar to an index fund with one crucial difference. ETFs are listed and traded on a stock exchange. In contrast, an index fund is bought and sold by the fund and its distributors.
j EQUITY TAX SAVING SCHEMES:These work on similar lines as diversified equity funds and seek to achieve long-term capital appreciation by investing in the entire universe of stocks. The only difference between these funds and equity-diversified funds is that they demand a lock-in of 3 years to gain tax benefits.
j DYNAMIC FUNDS:These schemes alter their exposure to different asset classes based on the market scenario. Such funds typically try to book profits when the markets are overvalued and remain fully invested in equities when the markets are undervalued. This is suitable for investors who find it difficult to decide when to quit from equity.
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j BALANCED SCHEMES:-
These schemes seek to achieve long-term capital appreciation with stability of investment and current income from a balanced portfolio of high quality equity and fixed-income securities.
j DEBT SCHEMES:-
j FLOATING RATE FUNDS:They invest in debt securities with floating interest rates, which are generally linked to some benchmark rate like MIBOR. Floating rate funds have a high relevance when interest rates are on the rise helping investors to ride the interest rate rise.
j MONTHLY INCOME PLANS (MIPS):These are basically debt schemes, which make marginal investments in the range of 10-25% in equity to boost the schemes returns. MIP schemes are ideal for investors who seek slightly higher return that pure long-term debt schemes at marginally higher risk.
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j Growth Plan:In this plan, dividend is neither declared nor paid out to the investor but is built into the value of the NAV. In other words, the NAV increases over time due to such incomes and the investor realizes only the capital appreciation on redemption of his investment.
j Dividend Plan:In this plan, dividends are paid-out to the investor. In other words, the NAV only reflects the capital appreciation or depreciation in market price of the underlying portfolio.
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Number of available options Mutual funds invest according to the underlying investment objective as specified at the time of launching a scheme. So, we have equity funds, debt funds, gilt funds and many others that cater to the different needs of the investor. The availability of these options makes them a good option. While equity funds can be as risky as the stock markets themselves, debt funds offer the kind of security that is aimed for at the time of making investments. Money market funds offer the liquidity that is desired by big investors who wish to park surplus funds for very short-term periods. Balance Funds cater to the investors having an appetite for risk greater than the debt funds but less than the equity funds. Diversification Investments are spread across a wide cross-section of industries and sectors and so the risk is reduced. Diversification reduces the risk because all stocks dont move in the same direction at the same time. One can achieve this diversification through a Mutual Fund with far less money than one can on his own. Professional Management Mutual Funds employ the services of skilled professionals who have years of experience to back them up. They use intensive research techniques to analyze each investment option for the potential of returns along with their risk levels to come up with the figures for performance that determine the suitability of any potential investment. Liquidity Mutual Funds offer the benefit of liquidity which provides the investor with the option of easy conversion to money. As in the case of fixed deposits, where the investor can get his money back only on the completion of a fixed period, an investor can get his money back as and when he wants. Investors can redeem their money at the prevailing NAVs (Net Asset Values). Mutual funds directly re-purchase at the current NAV.
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Well Regulated Unlike the company fixed deposits, where there is little control with the investment being considered as unsecured debt from the legal point of view, the Mutual Fund industry is very well regulated. All investments have to be accounted for, decisions judiciously taken. SEBI acts as a true watchdog in this case and can impose penalties on the AMCs at fault. The regulations, designed to protect the investors interests are also implemented effectively. Transparency Being under a regulatory framework, mutual funds have to disclose their holdings, investment pattern and all the information that can be considered as material, before all investors. This means that the investment strategy, outlooks of the market and scheme related details are disclosed with reasonable frequency to ensure that transparency exists in the system. On the other hand, the investor is totally clueless in case of the other investment alternatives as nothing is disclosed. Savings Tax saving schemes of Mutual Funds offer investor a tax rebate under section 88 of the Income Tax Act. Under this section, an investor can invest up to \ 10,000 per Financial year in a tax saving scheme. The rate of rebate under this section depends on the investors total income
Unsystematic risk. The Total Risk of a given fund is sum of these two and is measured in terms of standard deviation of returns of the fund. Systematic risk, on the other hand, is measured in terms of Beta, which represents fluctuations in the NAV of the fund vis--vis market. The more responsive the NAV of a Mutual Fund is to the changes in the market; higher will be its beta. Beta is calculated by relating the returns on a Mutual Fund with the returns in the market. While Unsystematic risk can be diversified through investments in a number of instruments, systematic risk cannot. By using the risk return relationship, we try to assess the competitive strength of the Mutual Funds one another in a better way. In order to determine the risk-adjusted returns of investment portfolios, several eminent authors have worked since 1960s to develop composite performance indices to evaluate a portfolio by comparing alternative portfolios within a particular risk class.
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EXPENSES
Not mandatory
Generally permitted for free or at a nominal cost Section 80C benefits are
TAX BENEFITS
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DATA ANALYSIS All the above data and conclusions has been drawn based on the survey falling under the perview of the questionnaire
1. Investors choice while choosing an investment alternatives, ranked in the descending order with the highest preferred given the highest score a. Saving account b. Fixed deposits c. Insurance d. Mutual Fund e. Post Office-NSC, etc f. Shares/Debentures g. Gold/ Silver h. Real Estate I. PPF j. PF 10 9 8 7 6 7 7 3 2 1
I. PPF j. PF
2. Factors affecting investors choice of decision while choosing an investment alternatives: Liquidity Low Risk High Return Company reputation 20 14 16 10
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Liqui i ty Low i sk
3.No of people who have invested money into mutual funds ever?
Yes 51 No 9 a) perception of people about themselves regarding mutual fund investment? Totally ignorant Partial knowledge of mutual funds Aware only of any specific scheme in which you invested Fully aware 07 11 28 05
yes
o
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Aware only of any specific scheme in which you invested Fully aware
b) Choice of type of mutual fund? Public 18 , Private 26 , both 7 c) Source of knowledge for mutual fund investors a. Advertisement 13 Advisors 18 b. Peer Group 12 c. Banks 8 d. Financial
a. Advertisement
b. Peer Group c. Banks d. Financial Advisors
d) Mutual fund schemes prefered by investors while inveesting? Open-ended Liquid fund 5 Close-ended Mid- Cap 8 Regular Income fund 12 Sector fund 8
T tally ig
ra t
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If no, a) Reasons for not choosing mutual funds investment ? 9 Not aware of MF 6 Higher risk 2 Not any specific reason 1
Not a are of MF
igher risk
4. Feature of the mutual funds alluring the investors maximum Diversification Better return and safety Reduction in risk and transaction cost Regular Income Tax benefit 13 17 9 7 5
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5. Investment in mutual funds under various AMCs a. SBIMF b. UTI c. HDFC d. Reliance e. ICICI prudential funds f. JM mutual fund g. Other. Specify 8 10 7 11 6 2 7
other
6. Mode of investment preferred by investors regarding investment in mutual funds a. One Time Investment b. Systematic Investment Plan (SIP)
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7. Convenience option chosen while purchasing units of any mutual fund ? Directly from the AMCs Brokers only Brokers/ sub-brokers Other sources [ 18] [ 11] [9 ] [ 13]
Directly from the AMCs Brokers only Brokers/ subbrokers Other sources
8. AMCs preferred by investors regarding choice of investment? Assets Management Co. a. SBIMF b. UTI c. Reliance d. HDFC e. Kotak f. ICICI g. JM finance 9 13 14 07 02 05 01
9. Choice of types of mutual funds on the basis of their policies and investment strategy i. Equity ii. Oil and petroleum iii. Gold fund iv. Diversified equity fund v. Power sector 6 3 4 12 5
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vi. Debt fund vii. Banking fund viii. Real estate fund
7 9 5
Equity Oil and etroleum Gold fund Diversified equity fund Power sector Debt fund Banking fund Real estate fund
10. Returns mode preferred by mutual fund investors? a. Dividend payout 7 b. Dividend re-investment 12 c. Growth in NAV 32
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With a number of mutual funds scheme existing in the market, it is very difficult by an investor to choose the best among them. This paper provides a necessary and sufficient result to help to choose the best portfolio to get maximum return with minimum risk. Mutual Fund is worthy investment rather than equity market but people are unaware about it. Mutual Fund Return is Higher and safe than any available instrument in the market. There are large range of investment available of different AMCs from the risk & Return capacity of investor.
y y
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BALANCED 42%
EQUITY 45%
DEBT 13%
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INCOME 22%
BONUS 8%
GROWTH 21%
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MUTU FUND
N R F R D
TH
ON TME INVESTMENT
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PAST PERFORMANCE
BRAND NAME
FUND MANAGER
This analysis shows that recommendation & fund manager are being least considered by the people. While investment objective, past performance & brand name are being most influencing factor in selecting mutual funds.
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CONCLUSION
From the analysis of the responses received from the investors in Udaipur, majorities of the investors are found to be conscious and enlightened regarding their investments, returns and growth. We have a good market in Udaipur, which comprises potential investors, but due to lack of basic promotions and publicity these investors are fully aware and whosoever is aware, their investments decision are done on the basis of security, analysis of risk yield and return. The Indian mutual fund industry needs to widen its range of products with affordable and competitive schemes to tap the semi-urban and rural markets in order to attract more investors. The industry has still not been able to penetrate among retail investors and it needs to share best practices from mature markets like US and Britain where mutual funds are the most preferred form of investment. Mutual fund companies need to introduce products for the semi-urban and rural markets that are affordable and yet competitive against low-risk assured returns of government sponsored saving schemes such as post office saving deposits. The industry is also overwhelmed by scarce technological infrastructure and needs to collaborate with other sectors of the economy such as banking and telecommunications. Mutual fund companies are also required take advantage of the growing opportunity in the commodities market. Further, the mutual funds could also enable the small investors to participate in the real estate boom through real estate mutual funds. With a strong regulatory framework, clear guidelines and the talent to back it up, the Indian mutual fund industry is in a position to cater to the new breed of investors who are keen to diversify their risks.
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APPENDIX QUESTIONNAIRE
A study of preferences of the investors for investment in mutual funds. 1. Have you ever invested your money in mutual fund? Yes No If yes, a) Where do you find yourself as a mutual fund investor? Totally ignorant [ ] Partial knowledge of mutual funds [ ] Aware only of any specific scheme in which you invested [ ] Fully aware [ ] b) In which kind of mutual you would like to invest? Public [ ] Private [ ] c) how do you come to know about Mutual Fund? a. Advertisement b. Peer Group c. Banks d. Financial Advisors d) Which mutual fund scheme have you used? Open-ended Close-ended Liquid fund Mid- Cap Growth fund Regular Income fund Long-Cap Sector fund If no, a) If not invested in Mutual Fund then why? Not aware of MF Higher risk
2. What kind of investments you prefer most? Pl tick (). All applicable a. Saving account b. Fixed deposits c. Insurance d. Mutual Fund e. Post Office-NSC, etc f. Shares/Debentures g. Gold/ Silver h. Real Estate I. PPF j. PF 3. While investing your money, which factor you prefer most? Any one: Liquidity Low Risk High Return Company reputation 4. which feature of the mutual funds allure you most? Diversification [ ] Better return and safety [ ] Reduction in risk and transaction cost [ ] Regular Income [ ] Tax benefit [ ]
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5. In which Mutual Fund you have invested? Please tick (). All applicable. a. SBIMF b. UTI c. HDFC d. Reliance e. ICICI prudential funds f. JM mutual fund g. Other. Specify 6. When you invest in Mutual Funds which mode of investment will you prefer? a. One Time Investment b. Systematic Investment Plan (SIP) 7. Where from you purchase mutual funds? Directly from the AMCs [ ] Brokers only [ ] Brokers/ sub-brokers [ ] Other sources [ ] . Which AMC will you prefer to invest? Assets Management Co. a. SBIMF b. UTI c. Reliance d. HDFC e. Kotak f. ICICI g. JM finance 9. Which sector are you investing in mutual fund sector? i. Equity ii. Oil and petroleum iii. Gold fund iv. Diversified equity fund v. Power sector vi. Debt fund vii. Banking fund viii. Real estate fund 10. How would you like to receive the returns every year? a. Dividend payout b. Dividend re-investment c. Growth in NAV
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BIBLIOGRAPHY
y y y y y y y
Magazines Business World Outlook Money Offer documents of different schemes Fund Fact Sheet Investment and Portfolio Management by Prassnna Chandra Research Methodology, C.R. Kothari
WEBSITES
y y y y y
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