Vous êtes sur la page 1sur 91

EXECUTIVE SUMMARY

Kousali Institute of Management Studies Dharwad 1


Financial markets main function is to facilitate transfer of funds from surplus
sectors to deficit sectors. A financial market consists of investor or buyers, sellers,
dealers and does not refer to physical location. Indian financial system consists of
two markets, viz. money and capital market. The core of money market is the inter-
bank call money market. It has two components - oranised and unoranised.
!apital market provides the framework in which savins and investments take
place. "n one hand it enables companies to raise resources from the investin
community and on the other, it facilitate households to invest their savins in
industrial or commercial activities. The capital market consists of primary and
secondary sements. In primary market it deals with the issue of new instruments by
the corporate sector such as e#uity shares, preference shares, and debentures. The
secondary market or stock e$chanes where e$istin %ecurities are traded. !apital
market plays a ma&or role in Indian financial system.
%o, mutual fund is the part of capital market. 'utual fund industry in India
bean with settin up of (nit Trust of India )(TI* in +,-. by the overnment of India.
/ow a day mutual fund is playin very important role in the industry. Investors will
et the benefit of return, capital appreciation, ta$ benefits and safety to there
investment and companies will et the capital for there rowth. 0ecently they have
also started %ystematic Investment 1lan)%I1* with the help of this even small
investors )minimum of 0s. +22*can start investin, by this even students can also
invest in this fund. %o, we came to know how this mutual fund works. .
%tock 3oldin !orporation "f India 4imited )%3!I4* also provides services of
mutual fund. This company was incorporated under the !ompanies Act, on 5uly 67
th
of +,7-.
%3!I4 company acts as a broker for tradin the shares of the company.
%!3!I4 is the first 8epository 1articipant to be reistered with the /ational %ecurities
8epository 4imited )/%84*. This company provides mutual funds, depository, post
tradin, custodial services, securities lendin, to institutional investors and retail
investors. "ther au$iliary services provided by %3!I4 include derivatives clearin
and 1F fund accountin. 3ere in %3!I4, they do the marketin of the mutual fund of
Kousali Institute of Management Studies Dharwad 2
all the companies. In other words it acts as a broker between investors and the
mutual fund companies.
As we have various scheme in an mutual fund. I want to know which scheme
usually investors prefer and for what ob&ective they prefer that scheme. %o to find
this I have done a survey and ot necessary data. %o, I have selected my title as
Investors perception on Mutual Fund Scheme. I have taken a necessary data
by the investors as well as non investors, to make an analysis on mutual fund
schemes.
The main objective of my studies are-
To study the concept mutual funds.
To know the awareness level of mutual funds.
To study the investor perception towards mutual fund.
To find whether investment in mutual fund is better than other investments.
Methodoloy used for the studies are-
+. 1rimary data 9 :uestionnaire
6. %econdary data- ;eb sites, <rochures, Annual report

The Findins of this project are-
From mutual fund investors I came to know that the main ob&ective of the
investment of the mutual fund is for ta$ benefits, return capital appreciation.
From the investors of the mutual fund investors I came to know that the main
ob&ective of the investment of the mutual fund is for ta$ benefits, return capital
appreciation.
<y askin the respondents to rank the schemes, they have chosen e#uity
scheme as very ood, debt scheme as neutral and balanced scheme as
neutral and ood.
Kousali Institute of Management Studies Dharwad 3
Suestions for the companies-
'ost of the people are unaware of various schemes in e#uity, debt. %o detail
information should be iven by the fund manaer by conductin seminars.
'utual fund companies should also ive information of new funds to the
customers to invest e..-old fund newly introduced but not known to the most
of the customers.
!imitations of my project-
The main limitation of my pro&ect is,
%ample size is only +22
Information is collected throuh #uestionnaire only.
Actual perception of respondents may differ and
%tudy restricted to <analore city only.
"onclusion-
<y concludin I can say that investors prefer to invest in the mutual fund for
return, ta$ benefit and capital appreciation sake. And most of the people to o for
lon term investment. 'ost of the people do not know about the %I1 )%ystematic
Investment 1lan*, so company has to ive seminars and other information about this
to the customers.


Kousali Institute of Management Studies Dharwad 4

Kousali Institute of Management Studies Dharwad 5
Introduction of Mutual Fund-

A 'utual Fund is a trust that pools the savins of a number of investors
who share a common financial oal. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities. The
income earned throuh 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 'utual Fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally manaed basket of securities at a
relatively low cost.
#efinition of Mutual Fund-
The %=<I )'F* 0eulations, +,,> defines mutual fund as ?A fund
established in the form of a trust by a sponsor to raise monies by the trustees
throuh the sale of units to the public under one or more schemes for investin in
securities in accordance with these reulations.@
Mutual Fund Industry-
'utual fund industry in India bean with settin up of (nit Trust of India
)(TI* in +,-. by the overnment of India. 8urin last >, years (TI has rown to be a
dominant player in the industry. The (TI is overned by a special leislation, the (nit
Trust of India Act +,->. In +,7A public sector banks and insurance companies were
permitted to set up mutual funds and accordinly in +,7A si$ public sectors banks
have set up mutual funds. Also the two insurance companies 4I! and BI!
established the mutual funds.
%ecurities =$chane <oard of India )%=<I* formulated the mutual fund
reulation in +,,>, which for the first time established a comprehensive reulatory
framework for the mutual fund industry. %ince then several mutual funds have been
set up the private and &oint sectors.
Kousali Institute of Management Studies Dharwad 6
$istory of Mutual Fund-
The mutual fund industry in India started in +,-> with the formation of (nit
Trust of India, at the initiative of the Bovernment of India and 0eserve <ank. The
history of mutual funds in India can be broadly divided into four distinct phases
First %hase & '()*-+,
(nit Trust of India )(TI* was established on +,-> by an Act of 1arliament. It
was set up by the 0eserve <ank of India and functioned under the 0eulatory and
administrative control of the 0eserve <ank of India. In +,A7 (TI was de-linked from
the 0<I and the Industrial 8evelopment <ank of India )I8<I* took over the reulatory
and administrative control in place of 0<I. The first scheme launched by (TI was
(nit %cheme +,-.. At the end of +,77 (TI had 0s.-,A22 crores of assets under
manaement.
Second %hase & '(+,-'((- ./ntry of %ublic Sector Funds0
+,7A marked the entry of non- (TI, public sector mutual funds set up by
public sector banks and 4ife Insurance !orporation of India )4I!* and Beneral
Insurance !orporation of India )BI!*. %<I 'utual Fund was the first non- (TI 'utual
Fund established in 5une +,7A followed by !an bank 'utual Fund )8ec 7A*, 1un&ab
/ational <ank 'utual Fund )Au 7,*, Indian <ank 'utual Fund )/ov 7,*, <ank of
India )5un ,2*, <ank of <aroda 'utual Fund )"ct ,6*. 4I! established its mutual fund
in 5une +,7, while BI! had set up its mutual fund in 8ecember +,,2.
Third %hase & '((--122- ./ntry of %rivate Sector Funds0
;ith the entry of private sector funds in +,,>, a new era started in the
Indian mutual fund industry, ivin the Indian investors a wider choice of fund
families. Also, +,,> was the year in which the first 'utual Fund 0eulations came
into bein, under which all mutual funds, e$cept (TI were to be reistered and
overned. The erstwhile Cothari 1ioneer )now mered with Franklin Templeton* was
the first private sector mutual fund reistered in 5uly +,,>.
The +,,> %=<I )'utual Fund* 0eulations were substituted by a more
comprehensive and revised 'utual Fund 0eulations in +,,-. The industry now
functions under the %=<I )'utual Fund* 0eulations +,,-.
Kousali Institute of Management Studies Dharwad 7
The number of mutual fund houses went on increasin, with many forein
mutual funds settin up funds in India and also the industry has witnessed several
merers and ac#uisitions.
Fourth %hase & since February 122-
In February 622>, followin the repeal of the (nit Trust of India Act +,->
(TI was bifurcated into two separate entities. "ne is the %pecified (ndertakin of
the (nit Trust of India with assets under manaement of 0s.6,, 7>D corers as at the
end of 5anuary 622>, representin broadly, the assets of (% -. scheme, assured
return and certain other schemes. The %pecified (ndertakin of (nit Trust of India,
functionin under an administrator and under the rules framed by Bovernment of
India and does not come under the purview of the 'utual Fund 0eulations.
The second is the (TI 'utual Fund 4td, sponsored by %<I, 1/<, <"< and
4I!. It is reistered with %=<I and functions under the 'utual Fund 0eulations.
;ith the bifurcation of the erstwhile (TI which had more than 0s.A-,222 crores of
assets under manaement and with the settin up of a (TI 'utual Fund, conformin
to the %=<I 'utual Fund 0eulations, and with recent merers takin place amon
different private sector funds, the mutual fund industry has entered its current phase
of consolidation and rowth.
"oncept of Mutual Fund-


Kousali Institute of Management Studies Dharwad 8
Steps of concepts of Mutual Fund-
+. 'any investors with the common ob&ective pool their money in 'utual Fund.
6. Investors on a proportionate basis, et mutual fund units for the sum
contributed to the pool.
>. The money collected by the investors is invested into the shares,
debentures and other securities by the Fund 'anaer.
.. The Fund manaer realizes ains or losses, and collects dividends or interest
Income.
D. Any capital ains or losses from such investment are passed on to the
-. Investors in proportion of the number of units held by them.
Any chane in the value of the investments made into capital market
instruments )such as shares, debentures etc* is reflected in the /et Asset Ealue
)/AE* of the scheme. /AE is defined as the market value of the 'utual Fund
schemeFs assets net of its liabilities. /AE of a scheme is calculated by dividin the
market value of schemeFs assets by the total number of units issued to the investors.
For e3ample4
A. If the market value of the assets of a fund is 0s. +22,222
<. The total number of units issued to the investors is e#ual to +2,222.
!. Then the /AE of this scheme G )A*H)<*, i.e. +22,222H+2,222 or +2
8. /ow if an investor FIF owns D units of this scheme.
Then his total contribution to the fund is 0s. D2 )i.e. /umber of units held
multiplied by the /AE of the scheme*
5hat is 6et 7sset 8alue .67809
As per %=<I )%ecurities =$chane board of India*, /AE of the scheme is
determined by dividend net asset of the scheme by the number of outstandin units
on the valuation date. Typically /AE is calculated by summin the current market
value of all securities held by the fund, addin in cash and any accrued income, then
subtractin liabilities and dividin the results by the number of units held by them.
Kousali Institute of Management Studies Dharwad 9
For e3ample:
Total Ealue of %ecurities )=#uity, <onds, 8ebentures etc.* 0s. +222
!ash 0s. +D22
4iabilities 0s. D22
Total outstandin units 0s. +22
/AE J)+222K+D22-D22*H+22L 0s. 62 per
unit.
'ost funds compute /AEs daily based on closin market prices. 'utual fund
schemes may be classified on the basis of their structure and its investment
ob&ective.
Types of 'utual Fund schemes-
7. Schemes accordin to Maturity %eriod4
A mutual fund scheme can be classified into open-ended scheme or close-
ended scheme dependin on its maturity period.
;pen-ended Fund< Scheme
An open-ended fund or scheme is one that is available for subscription and
repurchase on a continuous basis. These schemes do not have a fi$ed maturity
period. Investors can conveniently buy and sell units at /et Asset Ealue )/AE*
related prices which are declared on a daily basis. The key feature of open-end
schemes is li#uidity.
"lose-ended Fund< Scheme
A close-ended fund or scheme has a stipulated maturity period e.. D-A
years. The fund is open for subscription only durin a specified period at the time of
launch of the scheme. Investors can invest in the scheme at the time of the initial
public issue and thereafter they can buy or sell the units of the scheme on the stock
e$chanes where the units are listed. In order to provide an e$it route to the
investors, some close-ended funds ive an option of sellin back the units to the
mutual funds /AE related prices. %=<I 0eulations stipulate that at least one of the
two e$it routes is provided to the investor i.e. either repurchase facility or throuh
Kousali Institute of Management Studies Dharwad 10
listin on stock e$chanes. These mutual funds schemes disclose /AE enerally on
weekly basis.
=. Schemes accordin to Investment ;bjective4
A scheme can also be classified as rowth scheme, income scheme, or
balanced scheme considerin its investment ob&ective. %uch schemes may be open-
ended or close-ended schemes as described earlier. %uch schemes may be
classified mainly as follows-
'. />uity Funds-
=#uity funds are considered to be the more risky funds as compared to
other fund types, but they also provide hiher returns than other funds. It is advisable
that an investor lookin to invest in an e#uity fund should invest for lon term i.e. for
> years or more. There are different types of e#uity funds each fallin into different
risk bracket. In the order of decreasin risk level, there are followin types of e#uity
fundsM
?ro@th Funds - Browth Funds also invest for capital appreciation )with time
horizon of > to D years* but they are different from Aressive Browth Funds
in the sense that they invest in companies that are e$pected to outperform the
market in the future. ;ithout entirely adoptin speculative strateies, Browth
Funds invest in those companies that are e$pected to post above averae
earnins in the future.
Sector Funds4 =#uity funds that invest in a particular sectorHindustry of the
market are known as %ector Funds. The e$posure of these funds is limited to
a particular sector )say Information Technoloy, Auto, <ankin,
1harmaceuticals or Fast 'ovin !onsumer Boods* which is why they are
more risky than e#uity funds that invest in multiple sectors.
Mid-"ap or Small-"ap Funds4 Funds that invest in companies havin lower
market capitalization than lare capitalization companies are called 'id-!ap
or %mall-!ap Funds. 'arket capitalization of 'id-!ap companies is less than
that of bi, blue chip companies )less than 0s. 6D22 crores but more than 0s.
D22 crores* and %mall-!ap companies have market capitalization of less than
0s. D22 crores. 'arket !apitalization of a company can be calculated by
Kousali Institute of Management Studies Dharwad 11
multiplyin the market price of the companyFs share by the total number of its
outstandin shares in the market. The shares of 'id-!ap or %mall-!ap
!ompanies are not as li#uid as of 4are-!ap !ompanies which ives rise to
volatility in share prices of these companies and conse#uently, investment
ets risky
/>uity !inked Savin Scheme- These funds are well diversified and reduce
sector-specific or company-specific risk. 3owever, like all other funds
diversified e#uity funds too are e$posed to e#uity market risk. "ne prominent
type of diversified e#uity fund in India is =#uity 4inked %avins %chemes
)=4%%*. As per the mandate, a minimum of ,2N of investments by =4%%
should be in e#uities at all times. =4%% investors are eliible to claim
deduction from ta$able income )up to 0s + lakh* at the time of filin the
income ta$ return. =4%% usually has a lock-in period and in case of any
redemption by the investor before the e$piry of the lock-in period makes him
liable to pay income ta$ on such income)s* for which he may have received
any ta$ e$emption)s* in the past.
#ividend Aield Funds -The ob&ective of =#uity Income or 8ividend Oield
=#uity Funds is to enerate hih recurrin income and steady capital
appreciation for investors by investin in those companies, which issue hih
dividends. =#uity Income or 8ividend Oield =#uity Funds are enerally
e$posed to the lowest risk level as compared to other e#uity funds.
?old Fund- The ob&ective of this fund is accumulatin the money at the old
rate accordin to the units held by the investors. This is one of the new fund
introduced. 3ere all the investors will invest for the pool account of mutual
fund and that amount is invested in the old. And accordin to the fluctuation
of the rates of old in the market, fund manaer invest when rates are in ood
rates like this profit earned from this old fund is distributed accordin to the
units held by the investors.
Kousali Institute of Management Studies Dharwad 12
1. #ebt funds-
Funds that invest in medium to lon-term debt instruments issued by
private companies, banks, financial institutions, overnments and other entities
belonin to various sectors )like infrastructure companies etc.* are known as 8ebt H
Income Funds. 8ebt funds are low risk profile funds that seek to enerate fi$ed
current income )and not capital appreciation* to investors. In order to ensure reular
income to investors, debt )or income* funds distribute lare fraction of their surplus to
investors. Althouh debt securities are enerally less risky than e#uities, they are
sub&ect to credit risk )risk of default* by the issuer at the time of interest or principal
payment. To minimize the risk of default, debt funds usually invest in securities from
issuers who are rated by credit ratin aencies and are considered to be of
PInvestment BradeP. 8ebt funds that taret hih returns are more risky. <ased on
different investment ob&ectives, there can be followin types of debt fundsM
#iversified #ebt Funds - 8ebt funds that invest in all securities issued by
entities belonin to all sectors of the market are known as diversified debt
funds. The best feature of diversified debt funds is that investments are
properly diversified into all sectors which results in risk reduction. Any loss
incurred, on account of default by a debt issuer, is shared by all investors
which further reduces risk for an individual investor.
$ih Aield #ebt funds - As we now understand that risk of default is present
in all debt funds, and therefore, debt funds enerally try to minimize the risk of
default by investin in securities issued by only those borrowers who are
considered to be of Pinvestment radeP. <ut, 3ih Oield 8ebt Funds adopt a
different stratey and prefer securities issued by those issuers who are
considered to be of Pbelow investment radeP. The motive behind adoptin
this sort of risky stratey is to earn hiher interest returns from these issuers.
These funds are more volatile and bear hiher default risk, althouh they may
earn at times hiher returns for investors.
Kousali Institute of Management Studies Dharwad 13
7ssured Beturn Funds - Althouh it is not necessary that a fund will meet its
ob&ectives or provide assured returns to investors, but there can be funds that
come with a lock-in period and offer assurance of annual returns to investors
durin the lock-in period. Any shortfall in returns is suffered by the sponsors
or the Asset 'anaement !ompanies )A'!s*. These funds are enerally
debt funds and provide investors with a low-risk investment opportunity. To
safeuard the interests of investors, %=<I permits only those funds to offer
assured return schemes whose sponsors have ade#uate net-worth to
uarantee returns in the future. In the past, (TI had offered assured return
schemes )i.e. 'onthly Income 1lans of (TI* that assured specified returns to
investors in the future. (TI was not able to fulfill its promises and faced lare
shortfalls in returns. =ventually, overnment had to intervene and took over
(TIFs payment obliations on itself. !urrently, no A'! in India offers assured
return schemes to investors, thouh possible.
Fi3ed Term %lan Series - Fi$ed Term 1lan %eries usually are closed-end
schemes havin short-term maturity period )of less than one year* that offer a
series of plans and issue units to investors at reular intervals. (nlike closed-
end funds, fi$ed term plans are not listed on the e$chanes. Fi$ed term plan
series usually invest in debt H income schemes and taret short-term
investors. The ob&ective of fi$ed term plan schemes is to ratify investors by
eneratin some e$pected returns in a short period.
-. =alanced Fund
A balanced fund is one that has a portfolio comprisin debt instruments,
convertible securities, and 1reference e#uity shares. Their assets are enerally held
in more or less e#ual proportions between debtHmoney market securities and
e#uities. <y investin in a mi$ of this nature, balanced funds seek to attain the
ob&ectives of income, moderate capital appreciation and preservation of capital, and
are ideal for investors with a conservative and lon-term orientation.
Kousali Institute of Management Studies Dharwad 14
7#876T7?/S 76# #IS7#8/6T7?/ ;F MCTC7! FC6#
7#876T7?/S ;F MCTC7! FC6#4
+. %ortfolio #iversification4 'utual Funds invest in a well-diversified portfolio of
securities which enables investor to hold a diversified investment portfolio
)whether the amount of investment is bi or small*.
6. %rofessional Manaement4 Fund manaer underoes throuh various
research works and has better investment manaement skills, which ensure
hiher returns to the investor than what he can manae on his own.
>. !ess Bisk4 Investors ac#uire a diversified portfolio of securities even with a
small investment in a 'utual Fund. The risk in a diversified portfolio is lesser
than investin in merely 6 or > securities
.. !o@ Transaction "osts4 8ue to the economies of scale )benefits of larer
volumes*, mutual funds pay lesser transaction costs. These benefits are
passed on to the investors.
D. Fle3ibility4 Investors also benefit from the convenience and fle$ibility offered
by 'utual Funds. Investors can switch their holdins from a debt scheme to
an e#uity scheme and vice-versa. "ption of systematic )at reular intervals*
investment and withdrawal is also offered to the investors in most open-end
schemes.
-. Safety4 'utual Fund industry is part of a well-reulated investment
environment where the interests of the investors are protected by the
reulator. All funds are reistered with %=<I and complete transparency is
forced.
Kousali Institute of Management Studies Dharwad 15
#IS7#876T7?/S ;F MCTC7! FC6#
+. "ost control not in the $ands of an Investor4 Investor has to pay
investment manaement fees and fund distribution costs as a percentae of
the value of his investments )as lon as he holds the units*, irrespective of the
performance of the fund.
6. 6o "ustomiDed %ortfolios4 The portfolio of securities in which a fund invests
is a decision taken by the fund manaer. Investors have no riht to interfere in
the decision makin process of a fund manaer, which some investors find as
a constraint in achievin their financial ob&ectives.
>. #ifficulty in Selectin a Suitable Fund Scheme4 'any investors find it
difficult to select one option from the plethora of fundsHschemesHplans
available.
Kousali Institute of Management Studies Dharwad 16
Mutual Fund
Type
5ho
Should
Invest
;bjective Investment
%ortfolio
Bisk Term of
investment
Browth Fund Aressive
investors
3ih rowth =#uity
shares
3ih
0isk
>-D years
%ector Fund Aressive
investors
3ih rowth =#uity
shares
Eery
hih
+->years
'id-cap and
%mall-cap
Fund
Aressive
investors
4on term
rowth
=#uity
shares
3ih
risk
+-> years
=#uity 4inked
%avin
%cheme
'oderate
and
aressive
investors
4on-term
rowth with
ta$ savin
=#uity
shares
3ih +->years
8ividend Fund 'oderate
Investors
0eturn 1references
hares
4ow +-> years
Bold Fund 'oderate
and
aressive
investors
4on term
rowth
=#uity
shares
4ow >-D years
8iversified
debt
'oderate
and
aressive
investors
3ih rowth =#uity
shares and
1reference
share
3ih +->years
3ih yield debt 'oderate
Investors
3ih 0eturn =#uity
shares
4ow +->years
Assured return 'oderate
Investors
0eturn =#uity
shares
4ow +->years
Fi$ed term
plan
'oderate
Investors
'oderate
Investors
=#uity
shares
4ow >-D years
Kousali Institute of Management Studies Dharwad 17



Introduction4
%tock 3oldin !orporation "f India 4imited )%3!I4* was incorporated under
the !ompanies Act, on 5uly 67
th
of +,7- at the initiative of the Bovernment of India.
To provide specialized and dedicated custodian services to overnment financial
institutions. It was promoted by seven all India Financial institutions viz., Industrial
8evelopment of India, (nit Trust of India )(TI*, Industrial !redit and investment
Kousali Institute of Management Studies Dharwad 18
!orporation of India 4td )I!I!I*, Industrial Finance !o-operation of India, 4ife
Insurance <ank of India, Industrial Investment bank of India, Beneral Insurance
corporation of India and its subsidiaries.
%3!I4 commenced operation in Auust +,77 and has been providin custodial and
related services of international standard for more than a decade, bein a premier
custodian. %3!I4 today holds more than .D million certificates of clients assets in its
custody.
%3!I4 provides depository, post tradin, custodial services, securities
lendin, to institutional investors and retail investors. "ther au$iliary services
provided by %3!I4 include derivatives clearin, 1F fund accountin, %B4 constituent
account services, mutual funds and other capital market instruments distribution.

;=E/"TI8/S ;F S$"I!4
To eliminate paper work and brin electronic stock market )=- stock market*
in India.
To ensure satisfaction throuh teamwork and professional manaement.
To e$tend effective uidance to brokers, clearin houseHcorporation,
companies and investor in =-%tock treadin.
To provide ood #uality of services on a continues basis to the satisfaction of
clients.
%B;#C"T %B;FI!/4
7## S$7B/S4
(se the dematerializes in investors account as a collateral to et loan to
account holders. %3!I4 arranes loan aainst demat shares. Tie up with reputed
Kousali Institute of Management Studies Dharwad 19
banks, which offer account holders the most competitive interest rates in the market.
Account holders can use the shares in their account as collateral and take a loan
from any of empanelled banks. %3!I4 completes clients documentation and
processin and ives the che#ue within .7 hours of application. A88 shares simplify
lon-winded loan procedures for clients and facilitates early disbursement of funds.
Features4
4oan aainst 8='AT shares held in the 81 account with %3!I4.
!ompetitive interest rates from a rane of <anks %3!I4 have tied up with.
%3!I4 processes the entire paperwork re#uired with the bank.
The service is available at any of over +22 branches of %3!I4.
/FCI=CA4
This product of SHCIL, helps the i!estors to "et f#ster credit of the sh#res ito their
#ccouts $ith ol% si"le istructio& This product h#s # !er% o'i#l ch#r"e #tt#ched to it&
( iiti#l #d!#ce of )s&1, 000 i the *urch#se (d!#ce #ccout #d repleish'ets, #s #d
$he ecess#r%, t#+e c#re of p#%'et for i!estors purch#ses&(s %our depositor% p#rticip#t,
SHCIL #ssures i!estor for s#fe deli!er% of sh#res e!er% ti'e the% ,u% o the e-ch#"e&
SHCIL.S positio #s the cle#ri" corpor#tios of le#di" stoc+ e-ch#"es esures s'ooth
#d sure credits ito i!estors #ccout&
Features4
An =#uably instruction from investor ets the shares credited into your
account the ne$t day of payout.
1ayment for investors purchase made from a runnin account called
1urchase Advance into which you remit an initial advance of 0s.+,222 and
maintain a minimum balance of 0s.6D2 at all times.
The investor can choose one or more brokers from a list of AA brokers
empanelled with %3!I4. 0eistration with broker is not necessary if you are
already reistered under any of our other product schemes.
Kousali Institute of Management Studies Dharwad 20
The investor can buy from any e$chanes either <%= or /%=.
FC6# I68/STM/6T4
Fund Invest is a basket of financial products, ranin from fi$ed income securities
like fi$ed deposits, Infrastructure bonds and !apital Bain <onds to variable income
securities like Initial 1ublic "ffers )I1"s* of =#uities and 'utual Funds.
Applications for investments can be source from any of the %3!I4 offices. Apart
from uidin investor to pick up the riht combination of investment instruments,
%3!I4 help them Fafter-salesF service, by actin as an interlocutor between the
investor and the issuer of the securities.
F/7TCB/S4
At present, %3!I4 I% distributin schemes of 6D different 'utual Fund. All these
Funds offer wide varieties of investment option dependin on the risk appetite of the
investor. %ome of the ma&or cateories areM
#ebt FundsM The 8ebt Funds have the mandate of investin primarily in 8ebt
papers
/>uity FundsM The =#uity Funds have the mandate of investin primarily in
=#uities
=alanced FundsM The <alanced Funds have the mandate of investin both in
=#uities as well as 8ebt papers.
!apital Bains <onds come under D. =! !apital Bains <onds, where
investors et e$emption from !apital Bain ta$. At present, %3!I4 is distributin
!apital Bain <onds of 0ural =lectrification !orporation, /ational 3ousin <ank,
%mall Industries 8evelopment <ank of India and /ational 3ihway Authority of India.
I!I!I <ank and I8<I.
%rivate %lacementsM %tock 3oldin distributes 8ebt papers issued for 1rivate
1lacement with %tructural "bliations by the %tate and !entral Bovernment,
typically tareted for Trusts and 1rovident Funds.
Fi3ed #eposits4 %3!I4 distribute Fi$ed 8eposits with hih investment ratin and
issued by blue- chip corporate. These papers enerally offer D2 to +22 basis points
more than bank fi$ed deposits of comparable period.
Kousali Institute of Management Studies Dharwad 21
Initial %ublic ;ffer4 I1"s offered from blue chip corporate can be subscribed from
%tock 3oldin. Issues recently distributed by us are %yndicate <ank, Oes <ank,
%askan communication, I8F! and I4QF%.
?;I =;6#S4
0<I on behalf of Bovernment of India issues %avins <onds in two different series.
-.DNta$-freebonds
7.2N ta$able bonds
These <onds are held in electronic form in an account called <ond 4eder Account
)<4A*. <ond 4eder Accounts can be opened and operated with 0<I desinated
receivin offices. %ubscriptions for %avins <onds can be submitted at any
branches.
The follo$i" c#te"ories c# su,scri,e to S#!i"s /ods0
C#te"or% of I!estor 6&51 2T#-3free4 5 8&012T#-#,le4&
Features4
/lectronic "learin Services4 Investor can avail of =lectronic !learin %ystem
)=!%* services. This ensures automatic credit of benefits and redemptions when
they accrue.
=asy accessM investor can apply for subscriptions into these <onds in any %3!I4
center across the country.
#ispatch4 There will be billin once in +D days. If client has no transaction that will
be sent once in the #uarter.
ST;"G #IB/"T4
%tock direct has chaned the way investor look at tradin in securities. From
investors desktop they can now send instructions for buyinHsellin shares. A three-
Kousali Institute of Management Studies Dharwad 22
way handshake between leadin brokers, national and international banks and
%3!I4 is the cru$ of %tock direct.
%tock direct - IndiaFs first online tradin platform was launched in +,,,. Today %tock
direct is the most secure online tradin platform which combines encryption
technoloy H diital sinature as well as %mart !ard security features.
For people who are not inclined to tradin on the net, %3!I4 have 0e#uest
Transmittin 'achines )0T's* placed at specified %3!I4 canters. This is an
electronic touch screen kiosk where client can insert his smart card and trade
effortlessly.
Features4
+. "ne %top %hop ives a sinle instruction towards funds confirmation for buy
orders, order routin to clients broker and fund and share movements for
settlement purpose.
6. Trade from home on the Internet with a floppy containin the %tock direct
%oftware or use the %mart !ard to trade throuh the 0e#uest Transmittin
'achines )0T's* placed at specified %3!I4 centers and partner banksF
8esinated branches.
>. /o minimum value of transactions.
S/B8I"/ ;ffered by S$"I!
Trade processin services
Kousali Institute of Management Studies Dharwad 23
%3!I4 has specially trained personnel handlin thousands of trade instructions
involvin lare values on sophisticated systems usin diital sinature on %T1
)%traiht throuh 1rocessin* systems, ensurin smooth trade confirmations to
%tock =$chanes, reportin and resolution of mismatches with !lients, etc.
Settlement Service-
Institutional trades are either settled throuh the !learin 3ouse of the %tock
=$chanes or as 8E1 directly with the contractin broker or !ounter 1arty. As a
!ustodian %3!I4 strives for timely settlement of Funds and %ecurities. Funds are
collectedH deposited fromHto client and settled with the !learin 3ousesH <rokersH
!ounter 1arties.
For the occasional delivery and receipt of securities in the physical mode,
%3!I4 ensures prompt scrutiny, processin and lodment of securities with the
respective !ompanyH0eistrar and Transfer Aent, with the ob&ective of final transfer
to the purchaser, with ob&ections handlin if needed, thus facilitatin delivery of
securities to the parties concerned on sale.
%hysical "ustody Services-
The transferred physical securities, when received, are held in state-of-the-art, hih-
security vaults on behalf of the clients. A pioneer in introducin the bar-codin
system to Track certificates, %3!I4 ensure the availability of each and every share
certificate at a moments notice.
Institutional #% Services
%3!I4 has installed dedicated 81's )8epository 1articipant 'odules* on
both the 8epositories, viz. /%84 )/ational %ecurities 8epository 4td* and !8%4
)!entral 8epository %ervices 4td*. A dedicated Institutional 81 team at %3!I4
addresses your need for all core 81 services like conversion of physical holdins
into electronic form, settlement of trade instructions, 0ematerialisation, repurchase
and plede instructions, providin of holdin and transaction statements and daily
reconciliation of client holdins.
6BI service
Kousali Institute of Management Studies Dharwad 24
"ver the years, %3!I4 has rown to become a ma&or player in the capital market.
;ith a network of more than +.2 offices operatin across the country and
franchisees operatin abroad, %3!I4 provides 8epository 1articipant and related
services close to 2.A million satisfied investors out of which over -222 are /0I
!lientele.
/0I cell co-ordinates with prospective /0I customers, collects and assists
in obtainin the relevant documents and ensures the 8epository Account is opened
hassle free. /0I !ell collects physical certificates to be sent for 8emat and ensures
that the certificates are in order and can be sent for 8ematerialisation under the
e$istin uidelines issued by the depositories. In this case later on the client needs
to reularise by sendin the oriinal trade delivery instruction. Any tariff and billin
related #uery are addressed by /0I !ell.
#erivative service4
%3!I4 provides !learin %ervices for derivative sement of <%=H/%= and
!ommodity sement of '!IH/!8=I. 8erivative services are classified into two they
areM
a* %tock derivative services,
b*!ommodity derivative clearin services.
As a professional clearin member, %3!I4 performs the followin functionsM
a. !learin - !omputin obliations of all his T's i.e. determinin positions to settle.
b. %ettlement - 1erformin actual settlement.
c. !ollateral 'anaement -!ollection of collateral )cashHcash e#uivalents and
securities*, valuation on a reular basis and settin up e$posure limits for T's and
Institutional clients.
d* 0isk 'anaement - %ettin position limits based on upfront deposits H marins for
each T' and monitorin positions on a continuous basis.
Stock brokin service
%tock 3oldin !orporation of India ltd, <analore recently started the stock brokin
service on +7
th
5une 622-
Tariff structure 9delivery based
Kousali Institute of Management Studies Dharwad 25
<rokerae
<ase brokerae 2.DDN
!umulative transaction value
D-+2 lacs 2.D2N
+2-62 lacs 2..DN
62-D2 lacs 2..2
D2 lacs-+crore 2.>D
+ crore-6 crore 2.>2
6 crore -D crore 2.6D
D crore-+2 crore 2.62
+2 crore and above 2.+D
$I/B7B"$I"7! STBC"TCB/ ;F S$"I! =analore =ranch
Kousali Institute of Management Studies Dharwad 26
#/%7BTM/6T7TI;6 STC#A
%3!I4 has been divided into five departments, namely
Front office
<ack office
8ispatch
Finance department
Automation
7 FB;6T ;FFI"/4
!onsists of the followinM
7ccount openin The investors willin to open a demat account has to visit
this counter.
7cceptance of The clients willin to submit their share certificates for #emat
submit
#ematerialiDation Their 8='AT re#uest forms alon with the share certificates.
7cceptance of The investors or the clients or the clearin members willin to
do.
Kousali Institute of Management Studies Dharwad 27
6eput% 7##"er
8ivisional 'anaer
Ronal 'anaer
Tr#des
7#r+eti"
(ccout
8ppei"
697(T :i#ce;
(ccout
(uto'#tio
:8 /8 :8 /8 :8 /8
:8
/ 8
7##"er
:rot 8ffice
/#c+ 8ffice
Trades instruction transaction such as market trade or off-market trade submit their
trade instruction form at this counter.
Fueries The customers willin to know their balances reardin their holdins
and transactions are eliible to make #ueries in this counter.
"nce the front office work is over the documents are transferred to back office.
=. =7"G ;FFI"/4
7ccount openin
Any investor who wishes to avail depository services must first open an account with
a 8epository participant of /%84. An Investor may open an account with several
81s or he may open several accounts with sinle 81. After e$ercisin this choice,
the investor has to enter into an areement with the 81. The form and contents of
this areement are specified by the business rules of /%84.

Types of 7ccounts
Type of depository account depends on the operations to be performed.
There are three types of demat accounts which can be opened with a depository
participant viz. <eneficiary Accounts, !learin 'ember Accounts and, Intermediary
Accounts
A <eneficiary Account is an ownership account. The holderHs of securities in
this type of account own those securities.
The !learin 'ember Account and Intermediary Account are transitory
accounts. The securities in these accounts are held for commercial purpose
only.
A !learin 'ember Account is opened by a broker or a !learin 'ember for
the purpose of settlement of trades.
An Intermediary Account can opened by a %=<I reistered intermediary for
the purpose of stock lendin and borrowin.
#ematerialiDation
"ne of the methods for preventin all the problems that occur with physical
securities is throuh 8ematerialisation )demat*. The share certificates are shredded
Kousali Institute of Management Studies Dharwad 28
)i.e., its paper form is destroyed* and a correspondin credit entry of the number of
securities )written on the certificates* is made in the account opened with the
8epository 1articipant )81*.=ach security is identified in the depository system by
I%I/ and short name.
Steps in #ematerialisation of shares
+. !lientHInvestor submits the 80F )8emat 0e#uest Form* and physical
certificates to 81. 81 checks whether the securities are available for 8emat.
!lient defaces the certificate by stampin S%urrendered for 8ematerialisation.
81 punches two holes on the name of the company and draws two parallel
lines across the face of the certificate.
6. 81 enters the demat re#uest in his system to be sent to /%84. 81
dispatches the physical certificates alon with the 80F to the 0QT Aent.
>. /%84 records the details of the electronic re#uest in the system and
forwards the re#uest to the 0QT Aent.
.. 0QT Aent, on receivin the physical documents and the electronic re#uest,
verifies and checks them. "nce the 0QT Aent is satisfied, 8ematerialisation
of the concerned securities is electronically confirmed to /%84.
D. /%84 credits the dematerialized securities to the beneficiary account of the
investor and intimates the 81 electronically. The 81 issues a statement of
transaction to the client.
Bematerialisation
0ematerialisation is the e$act reverse of dematerialization. It refers to the process of
issuin physical securities in place of the securities held electronically in book-entry
form with a depository. (nder this process, the depository account of a beneficial
owner is debited for the securities souht to be re-materialised and physical
certificates for the e#uivalent number of securities isHare issued. The beneficial
owner desirin to receive physical security certificates in place of the electronic
holdin should make a re#uest to the issuer or its 0QT Aent throuh his 81 in the
prescribed 0ematerialisation re#uest form )00F*.
Kousali Institute of Management Studies Dharwad 29
Tradin 7nd Settlement
"ne of the basic services provided by /%84 is to facilitate transfer of securities from
one account to another at the instruction of the account holder. In /%84 depository
system both transferor and transferee have to ive instructions to its depository
participants J81sL for deliverin Jtransferrin outL and receivin of securities.
3owever, transferee can ive F%tandin InstructionsF J%IL to its 81 for receivin in
securities
Transfer of securities from one account to another may be done for any of the
followin purposesM
Transfer due to a transaction done on a person to person basis is called Foff-
marketF transaction.
Transfer arisin out of a transaction done on a stock e$chane.
Transfer arisin out of transmission and account closure.
Settlement of off-Market transaction
Steps in settlement of off-market transaction
Kousali Institute of Management Studies Dharwad 30
+. %eller ives delivery instructions to his 81 to move securities from his account
to the buyerFs account.
6. <uyer automatically receives the credit of the securities into his account on
the basis of standin instruction for credits.
>. <uyer receives credit of securities into his account only if he ives receipt
instructions, if standin instructions have not been iven.
.. 81 needs to be e$tra careful in verifyin the sinature of the client if unusual
#uantities of securities are bein debited to the account
D. Funds move from buyer to seller outside the /%84 system.
Settlement of Market transaction
The movement of funds takes place outside the /%84 system.
+. %eller ives delivery instructions to his 81 to move securities from his account
to his brokerFs account.
6. %ecurities are transferred from brokerFs account to !! on the basis of a
delivery out instruction.
>. "n pay-out, securities are moved from !! to buyin brokerFs account.
.. <uyin broker ives instructions and securities move to the buyerFs account.
D. Transfer of securities towards settlement of transactions done on a stock
e$chane is called settlement of market transaction.
Kousali Institute of Management Studies Dharwad 31
7CT;M7TI;6 #/%7BTM/6T
The Automation department deals with the followinM
This dept los on the computer and the network.
8ownload and uploadation of the data and records.
<ack up of files and check the function of network.
FI676"/ #/%7BTM/6T4
This department deals with the collection of funds and maintenance of
income and e$penditure of the company or the division of branch office.
'oreover it looks into the daily e$penditure and the payment of salary to the
workin members.
It also maintains the records of the daily e$penses occurred.
This department is responsible for the whole financial transaction of the
company.
Kousali Institute of Management Studies Dharwad 32
Title of the project-
As we have various scheme in an mutual fund. I want to know which scheme
usually investors prefer and for what ob&ective they prefer that scheme. %o to find
Kousali Institute of Management Studies Dharwad 33
this I have done a survey and ot necessary data. %o, I have selected my title as
Investors perception on Mutual Fund Scheme. I have taken a necessary data
by the investors as well as non investors, to make an analysis on mutual fund
schemes.
;bjectives-
The research is undertaken with an ob&ective to know the followin aspectsM
To study the concept mutual funds.
To %tudy individual savin patterns.
To know the awareness level of mutual funds
To know the parameters the people look in while investin in mutual fund.
To study the investor perception towards mutual fund.
To find whether investment in mutual fund is better than other investments.
To create strateies to increase sales of mutual fund.
Methodoloy
The data was collected in two ways, which are detailed belowM -
1rimary 8ata
%econdary 8ata
%BIM7BA #7T74 -
The 8ata collected for a specific purpose for the first time is "riinal known as
1rimary 8ata. The primary data is collected in two different ways.
+* "bservation 'ethod
6* :uestionnaire 'ethod
In the observation method instead of askin the respondents about the
behavior and attitudes, an "bservation was done and the data was collected.
The :uestionnaire method is a powerful tool to collect the information a structured
:uestionnaire involves in askin the #uestions in a prearraned order. This research
contained a #uestionnaire that had structured )prearraned order*, open ended )free
answer #uestions* and close ended )limited answer can be iven* #uestions. %ome
were also dichotomous #uestions i.e. havin only two options to answer.
Kousali Institute of Management Studies Dharwad 34
S/";6#7BA #7T74 -
The data that is collected from the published sources i.e. not oriinally collected
for the first time is called secondary data. 8urin the research the secondary data
was collected from various articles published in maazines, newspapers and
websites, which are related to the same field.
The follo@in are the details of research4 -
Samplin siDe
The sample composition was of +22 individuals from various levels of workin and
also income.
Samplin
The sample consists of people who are workin as
=mployees in Bovernment and 1rivate oranizations
<usiness people
1rofessionals
0etired people
Kousali Institute of Management Studies Dharwad 35
7nalysis and Interpretation
'. /umber of male and female respondents.
Kousali Institute of Management Studies Dharwad 36
?ender H investment in mutual fund "rosstabulation
!ount
A +> 62
D6 67 72
D, .+ +22
female
male
Bender
Total
yes no
investment in mutual
fund
Total
Bender
Bender
male female
F
r
e
#
u
e
n
c
y
+22
72
-2
.2
62
2
7nalysis-
From the above we can see that from the +22 respondents, 72 are male out
of which D6 have invested in mutual fund and other 67 have not invested in the
mutual fund. And from remainin 62 female only A have invested in mutual fund and
other +> are non-investors
6. Ae roup of the respondents
Kousali Institute of Management Studies Dharwad 37

ae H investment in mutual fund "rosstabulation
!ount
+ . D
67 6. D6
+D , 6.
, 6 ++
- 6 7
D, .+ +22
below 62
6+->2
>+-.2
.+-D2
above D2
ae
Total
yes no
investment in mutual
fund
Total
ae
ae
above D2 .+-D2 >+-.2 6+->2 below 62
F
r
e
#
u
e
n
c
y
-2
D2
.2
>2
62
+2
2
7nalysis-
From the above we can say that, From the ae roup below 62 amon D
people + has invested in mutual fund, from the ae roup 6+->2 amon D6 people 67
has invested in mutual fund, from the ae roup >+-.2 amon 6. people +D has
invested in mutual fund, from the ae roup .+-D2 amon ++ people , has invested
in mutual fund.
From this we can say that the ae roup between 6+->2 are the roup who
invest more in the mutual fund, here we have 67 investors out of +22 I.e. of .AN of
total population. %o, this ae roup can be the taret population.
>. "ccupation of the respondents
Kousali Institute of Management Studies Dharwad 38
occupation H investment in mutual fund "rosstabulation
!ount
- +2 +-
>. 6> DA
+6 A +,
A + 7
D, .+ +22
<usinessman
=mployee
1rofesstional
0etired person
occupation
Total
yes no
investment in mutual
fund
Total
occupation
occupation
0etired person 1rof esstional =mployee <usinessman
F
r
e
#
u
e
n
c
y
-2
D2
.2
>2
62
+2
2
7nalysis-
From the above we can say that, +- respondents are businessman out of which
- are investors, and from DA employees includin ovt and private sectors >. are
mutual fund investors. <y this we can say that most of the mutual fund investors are
employees say about D7N of total mutual fund investors in the population.
.. Annual income of the respondents
Kousali Institute of Management Studies Dharwad 39
annual income H investment in mutual fund "rosstabulation
!ount
D , +.
66 +- >7
6D +> >7
D > 7
6 6
D, .+ +22
D2222-+ lakhs
+ lakh-> lakhs
> lakhs-D lakhs
D lakhs-+2 lakhs
+2 lakhs and more
annual
income
Total
yes no
investment in mutual
fund
Total

annual income
annual income
+2 lakhs and more
D lakhs-+2 lakhs
> lakhs-D lakhs
+ lakh-> lakhs
D2222-+ lakhs
F
r
e
#
u
e
n
c
y
D2
.2
>2
62
+2
2
7nalysis-
From this we can say that there are +. people whose annual income is D22222-
+ lakh amon them D people have invested in mutual fund. >7 people who have
income between + lakh-> lakh amon them 66 people have invested in mutual fund
and so on. From this we can say that people whose annual income is between >-D
lakh and +-6lakh lakh are the people who makes investment in mutual fund
D. 'onthly savins of the respondents.
Kousali Institute of Management Studies Dharwad 40
savins H objective of investment in mutual fund "rosstabulation
!ount
D D . 6 6 +7
+ , D . - 6 6A
+ D 6 + 6 ++
+ +
> + .
+ +D +, ++ , - -+
below +2222
+2222-62222
62222->2222
>2222-.2222
above .2222
savins
Total
risk return ta$ benefits
capital
appreciation safety li#uidity
ob&ective of investment in mutual fund
Total
savins
savins
above .2222
>2222-.2222
62222->2222
+2222-62222
below +2222
F
r
e
#
u
e
n
c
y
D2
.2
>2
62
+2
2
7nalysis-
From this we can say that, people who have savin below +2222 invest there
savin for return and ta$ benefits. And people who have savins rane from +2222-
62222 invest there money for return and safety purpose. 1eople who have savins
ranin from 62222->2222 invest for ta$ benefit purpose. And people who have
savins ranin from >2222-.2222 invest there sanins for ta$ benefits. And lastly
people who have savin more than .2222 have invested for ta$ benefit and capitaTl
appreciation purpose.
-. ;hich source of information will create awareness to you on 'utual FundU
Kousali Institute of Management Studies Dharwad 41
7@areness of Mutual Fund H occupation "rosstabulation
!ount
- +. 6 6 6.
D +- . 6 6A
+ +> > + +7
. +. +2 > >+
+- DA +, 7 +22
television
news paper
friends
financial advisors
Awareness
of 'utual
Fund
Total
<usinessman =mployee 1rofesstional
0etired
person
occupation
Total
Awareness of 'utual Fund
Awareness of 'utual Fund
f inancial advisors friends news paper television
F
r
e
#
u
e
n
c
y
.2
>2
62
+2
2
7nalysis-
From this we can say that, for the businessman the best source of information
of mutual fund is television. For the employees the best source of information of
mutual fund is news paper. For the professionals the best source of information of
mutual fund is financial advisors. And for retired people television and news paper.
A. 3ave you Investment in 'utual FundU
Kousali Institute of Management Studies Dharwad 42
investment in mutual fund
D, D,.2 D,.2 D,.2
.+ .+.2 .+.2 +22.2
+22 +22.2 +22.2
yes
no
Total
Ealid
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
7nalysis-
From this we can say
that, from the +22 respondents
D2 people have invested in
mutual fund and rest .+ people
have not invested in the mutual
fund.
<y this we can say that
most of the employees have
invested in the mutual fund and
businessman also invested in the mutual fund but not at more e$tend.
And this investment is based on the ob&ective of the investors.
7. If invested in the mutual fund, what is the main ob&ective of your investment in
'utual FundU
Kousali Institute of Management Studies Dharwad 43
investment in mutual fund
investment in mutual fund
no yes
F
r
e
#
u
e
n
c
y
A2
-2
D2
.2
>2
62
+2
2
objective of investment in mutual fund H invested in schemes "rosstabulation
!ount
+ +
, 6 . +D
+. . + +,
7 > ++
D . ,
> > -
>, +> , -+
risk
return
ta$ benefits
capital appreciation
safety
li#uidity
ob&ective of
investment in
mutual fund
Total
=#uity <ased 8ebt <ased
<alanced
<ased
invested in schemes
Total
ob&ective of investment in mutual fund
ob&ective of investment in mutual fund
li#uidity
saf ety
capital appreciation
ta$ benefits
return
risk
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
From this we can say that, from -+ investors of mutual fund, +D people are
investin there savins for return purpose. +, have invested there savins for ta$
benefit purpose. ++ have invested for capital appreciation purpose so they are
invesin in e#uity and balanced scheme. , have invested there savin for safety
purpose in e#uity and debt scheme. - people have invested there savins in li#uidity
purpose in e#uity and debt scheme.
,. If invested in the mutual fund, in which scheme you have investedU
Kousali Institute of Management Studies Dharwad 44
invested in schemes
>, >,.2 ->., ->.,
+> +>.2 6+.> 7D.6
, ,.2 +..7 +22.2
-+ -+.2 +22.2
>, >,.2
+22 +22.2
=#uity <ased
8ebt <ased
<alanced <ased
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
invested in schemes
invested in schemes
<alanced <ased 8ebt <ased =#uity <ased
F
r
e
#
u
e
n
c
y
D2
.2
>2
62
+2
2
7nalysis-
From this we can say that, from -+ respondents >2 people have invested in
e#uity based scheme. +> people have invested in debt based scheme. And
remainin , people have invested in balanced scheme. This investment is made on
the basis of ob&ective of the scheme. <y this we can say that most of the people
prefer e#uity base for the investment in the mutual fund.
+2. Factors considered while investin in 'utual FundU
Kousali Institute of Management Studies Dharwad 45
a. Factor while investin in e#uity scheme.
Factors considered in e>uity based
++ ++.2 +7.2 +7.2
66 66.2 >-.+ D..+
+, +,.2 >+.+ 7D.6
7 7.2 +>.+ ,7..
+ +.2 +.- +22.2
-+ -+.2 +22.2
>, >,.2
+22 +22.2
Assured returns
!apital Appreciation
Ta$ savin
safety
D
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
Factors considered in e#uity based
Factors considered in e#uity based
D
safety
Ta$ savin
!apital Appreciation
Assured returns
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
From this we can say that, most of the people prefer e#uity scheme because of
capital appreciation and ta$ savin. %o people who are in employment and havin
more salary prefer this scheme to ma$imize there capital and also for the ta$
benefits by this scheme. 1eople whose investment ob&ective is ta$ benefits and
capital appreciation can select this scheme for there investment.
b. factors while investin in debt based scheme.
Kousali Institute of Management Studies Dharwad 46
Factors considered in #ebt based
. ..2 -.- -.-
62 62.2 >6.7 >,.>
6+ 6+.2 >... A>.7
+- +-.2 6-.6 +22.2
-+ -+.2 +22.2
>, >,.2
+22 +22.2
Assured return
!apital appreciation
Ta$ benifits
%afety
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
Factors considered in 8ebt based
Factors considered in 8ebt based
%af ety
Ta$ benif its
!apital appreciation
Assured return
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
From this we can say that, most of the people who have invested in debt
based scheme , the main purpose of there investment is safety, capital appreciation,
and ta$ benefits. As in debt based there is an assured return to the investors so,
they feel safe while investin in debt based scheme. (sually for this debt based
scheme they invest for short term purpose.
c. Factors while investin in balanced scheme.
Kousali Institute of Management Studies Dharwad 47
Factors considered in =alanced based
> >.2 .., ..,
+. +..2 6>.2 6A.,
+, +,.2 >+.+ D,.2
62 62.2 >6.7 ,+.7
. ..2 -.- ,7..
+ +.2 +.- +22.2
-+ -+.2 +22.2
>, >,.2
+22 +22.2
Assured return
!apital appreciation
Ta$ benifits
%afety
D
6+
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
Factors considered in <alanced based
Factors considered in <alanced based
6+
D
%afety
Ta$ benif its
!apital appreciation
Assured return
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
Form this we can say that, most of the people invest in balanced scheme
because of safety purpose. They also invest for ta$ benefit also. As this balanced
scheme is the mi$ture of both e#uity scheme and debt scheme.
Form this we can say that people who invest in e#uity scheme will invest for
capital appreciation purpose, people who invest in debt based will invest for ta$
benefit purpose. 1eople who invest in balanced will invest for safety purpose.
++. In which scheme you have investedU
Kousali Institute of Management Studies Dharwad 48
scheme end H objective of investment in mutual fund "rosstabulation
!ount
++ +> 7 - - ..
+ . - > > +A
+ +D +, ++ , - -+
"pen ended
!losed ended
scheme
end
Total
risk return ta$ benefits
capital
appreciation safety li#uidity
ob&ective of investment in mutual fund
Total
scheme end
scheme end
!losed ended "pen ended
F
r
e
#
u
e
n
c
y
D2
.2
>2
62
+2
2
7nalysis-
From this we can say that, most of the people will o for open ended scheme
while investin there savin in mutual fund. This investment depends upon the
ob&ective of the investment. ;e can see that from -+ investors .. respondents have
one for open ended scheme for ta$ benefits and return purpose. And +A people
have one for closed ended scheme for return purpose.
Kousali Institute of Management Studies Dharwad 49
+6. If Invested in 'utual Fund, term of your investmentU
Term of investment H invested in schemes "rosstabulation
!ount
- 6 + ,
6> D - >.
- - 6 +.
. .
>, +> , -+
+-6yrs
6-Dyrs
D-+2yrs
more than +2yrs
Term of
investment
Total
=#uity <ased 8ebt <ased
<alanced
<ased
invested in schemes
Total
Term of investment
Term of investment
more than +2yrs D-+2yrs 6-Dyrs +-6yrs
F
r
e
#
u
e
n
c
y
.2
>2
62
+2
2
7nalysis-
From this we say that, from the -+ investors , are investin for +-6years I,e for
short term investment. And >. people are invested for 6-Dyears I,e for medium term
investment. +. people are invested for D-+2 years I,e for lon term investment. And
lastly . people have invested for more than +2 years I,e for lon term investment. <y
this we can say that most of the people will o for e#uity based, debt based and
balanced based durin short term. For the medium term people o for e#uity and
balanced. And for lon term people o for e#uity based.
+>. If Biven you +22 points , 8istribute it accordin to your preference
Kousali Institute of Management Studies Dharwad 50
a. 0ank of mutual fund
Mutual Fund
++ ++.2 +7.2 +7.2
66 66.2 >-.+ D..+
> >.2 .., D,.2
+- +-.2 6-.6 7D.6
- -.2 ,.7 ,D.+
> >.2 .., +22.2
-+ -+.2 +22.2
>, >,.2
+22 +22.2
+2
62
6D
>2
.2
D2
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
'utual Fund
'utual Fund
D2 .2 >2 6D 62 +2
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
3ere we can see that most of the people have ranked mutual fund as 62. 3ere
we have asked to rank the followin accordin to there preference. %o mutual fund
rank will be 62 from +22 points
b. 0ank of stocks by investors.
Kousali Institute of Management Studies Dharwad 51
Stock
+ +.2 +.- +.-
+6 +6.2 +,.A 6+.>
67 67.2 .D., -A.6
+ +.2 +.- -7.,
+> +>.2 6+.> ,2.6
+ +.2 +.- ,+.7
D D.2 7.6 +22.2
-+ -+.2 +22.2
>, >,.2
+22 +22.2
D
+2
62
6D
>2
>D
.2
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
%tock
%tock
.2 >D >2 6D 62 +2 D
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
3ere we can see that most of the people have ranked stocks as 62.
3ere we have asked to rank the followin accordin to there preference. %o stock is
also ranked as 62 from +22 points.
c. 0ankin of real estate.
Kousali Institute of Management Studies Dharwad 52
Beal /state
D D.2 7.6 7.6
D D.2 7.6 +-..
+D +D.2 6..- .+.2
6 6.2 >.> ...>
66 66.2 >-.+ 72.>
D D.2 7.6 77.D
- -.2 ,.7 ,7..
+ +.2 +.- +22.2
-+ -+.2 +22.2
>, >,.2
+22 +22.2
2
D
+2
+D
62
>2
.2
D2
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
0eal =state
0eal =state
D2 .2 >2 62 +D +2 D 2
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
3ere we can see that most of the people have ranked real estate as 62.
3ere we have asked to rank the followin accordin to there preference. %o real
estate is also ranked as 62 from +22 points.
d. 0ank of insurance.
Kousali Institute of Management Studies Dharwad 53
Insurance
++ ++.2 +7.2 +7.2
, ,.2 +..7 >6.7
6> 6>.2 >A.A A2.D
+6 +6.2 +,.A ,2.6
- -.2 ,.7 +22.2
-+ -+.2 +22.2
>, >,.2
+22 +22.2
2
D
+2
62
>2
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
Insurance
Insurance
>2 62 +2 D 2
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
3ere we can see that most of the people have ranked insurance as +2. 3ere
we have asked to rank the followin accordin to there preference. %o insurance is
ranked as +2 from +22 points.
e. 0ank of Fi$ed deposits
Kousali Institute of Management Studies Dharwad 54
Fi3ed deposite
. ..2 -.- -.-
, ,.2 +..7 6+.>
+, +,.2 >+.+ D6.D
66 66.2 >-.+ 77.D
D D.2 7.6 ,-.A
6 6.2 >.> +22.2
-+ -+.2 +22.2
>, >,.2
+22 +22.2
2
D
+2
62
>2
.2
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
Fi$ed deposite
Fi$ed deposite
.2 >2 62 +2 D 2
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
3ere we can see that most of the people have ranked fi$ed deposits as 62.
3ere we have asked to rank the followin accordin to there preference. %o fi$ed
deposits is also ranked as 62 from +22 points.
f. 0ank of post office
Kousali Institute of Management Studies Dharwad 55
%ost ;ffice
+. +..2 6>.2 6>.2
+2 +2.2 +-.. >,.>
6> 6>.2 >A.A AA.2
+ +.2 +.- A7.A
+6 +6.2 +,.A ,7..
+ +.2 +.- +22.2
-+ -+.2 +22.2
>, >,.2
+22 +22.2
2
D
+2
+D
62
>2
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
1ost "ffice
1ost "ffice
>2 62 +D +2 D 2
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
3ere we can see that most of the people have ranked insurance as +2. 3ere
we have asked to rank the followin accordin to there preference. %o insurance is
ranked as +2 from +22 points.
Kousali Institute of Management Studies Dharwad 56
+.. 0ate these 'utual Fund accordin to your preference )+ is least and D is
ma$imum*
a. 0ank of =#uity mutual fund.
Bank of />uity
7 7.2 +>.> +>.>
+6 +6.2 62.2 >>.>
+6 +6.2 62.2 D>.>
7 7.2 +>.> --.A
62 62.2 >>.> +22.2
-2 -2.2 +22.2
.2 .2.2
+22 +22.2
very bad
bad
neutral
ood
very ood
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
0ank of =#uity
0ank of =#uity
very ood ood neutral bad very bad
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
From here we can sat that, most pof the people have ranked e#uity as very
ood. And some people have said its neutal and bad this may be because of risk
involved in this scheme. %o by this we can say that most of the people o for e#uity
even there is a risk involved, the return will be more.
Kousali Institute of Management Studies Dharwad 57
b. 0ank of 8ebt mutual fund.
Bank of #ebt
. ..2 -.A -.A
7 7.2 +>.> 62.2
6, 6,.2 .7.> -7.>
+- +-.2 6-.A ,D.2
> >.2 D.2 +22.2
-2 -2.2 +22.2
.2 .2.2
+22 +22.2
very bad
bad
neutral
ood
very ood
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
0ank of 8ebt
0ank of 8ebt
very ood ood neutral bad very bad
F
r
e
#
u
e
n
c
y
.2
>2
62
+2
2
7nalysis-
<y this we can say that most of the people have said debt based as neutral
and some of them have said as ood. This may be people are not ready to take risk
in there return because it is based on market rates. %o most of the fund manaer will
see the market and than invest in these schemes. %o here most of people have
ranked debt scheme as neutral.
Kousali Institute of Management Studies Dharwad 58
c. 0ank of balanced mutual fund
Bank of =alanced
. ..2 -.A -.A
7 7.2 +>.> 62.2
+A +A.2 67.> .7.>
+- +-.2 6-.A AD.2
+D +D.2 6D.2 +22.2
-2 -2.2 +22.2
.2 .2.2
+22 +22.2
very bad
bad
neutral
ood
very ood
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
0ank of <alanced
0ank of <alanced
very ood ood neutral bad very bad
F
r
e
#
u
e
n
c
y
62
+2
2
7nalysis-
From this we can say that most of the people will o for balanced scheme. As
they have ranked this balanced scheme as neutral ood and very ood.
As this balanced scheme is the mi$ture of both e#uity and debt. %o we can say that
people can et ta$ benefit to some e$tend and assured return also so people will o
for this scheme. %o they have ranked neutral ood and very ood.

Kousali Institute of Management Studies Dharwad 59
+D. If you have interested or invested in =#uity based 'utual Fund 1lease rank the
followin %chemesU
Botated "omponent Matri3
a:b
.+2- .77+ .+6A
-..AD .A6D -.>62
-6.D+=-26 -6.>-=-26 .,A,
.7.D .+67 7.D6D=-26
.,22 >.D+.=-26 -.++D
.+A> .-.A -D..,=-26
Browth funds
%ector Funds
'idcapH%mallcap funds
=#uity 4inked %avin
%cheme
8ivident Fund
Bold fund
+ 6 >
!omponent
=$traction 'ethodM 1rincipal !omponent Analysis.
0otation 'ethodM Earima$ with Caiser /ormalization.
0otation convered in . iterations.
a.
"nly cases for which 0ank of =#uity G very ood are
used in the analysis phase.
b.
7nalysis-
<y this factor analysis we can come to know that , these variables are reduced
to > factors on the basis of very ood, neutral and bad. From the above we can say
that for =4%% and dividend fund are very ood in first factor. From the second factor
rowth fund and sector fund are very ood and lastly from the third factor mid-cap
and small cap are very ood. And the rest which are showin less points are neutral
once in each cateory and remainin with the neative points shows bad
performance in each factor.
Kousali Institute of Management Studies Dharwad 60
+-. If you have interested or invested in 8ebt based 'utual Fund 1lease rank the
followin %chemesU
"orrelations
+.222 .-66V .-.,V -.+++
. .26> .2+- .A+7
+> +> +> +>
.-66V +.222 ..-6 -.++-
.26> . .++6 .A2A
+> +> +> +>
.-.,V ..-6 +.222 .626
.2+- .++6 . .D27
+> +> +> +>
-.+++ -.++- .626 +.222
.A+7 .A2A .D27 .
+> +> +> +>
1earson !orrelation
%i. )6-tailed*
/
1earson !orrelation
%i. )6-tailed*
/
1earson !orrelation
%i. )6-tailed*
/
1earson !orrelation
%i. )6-tailed*
/
8iversified fund
3ih Oield Fund
Assured return
Fi$ed term plan
8iversified
fund
3ih Oield
Fund
Assured
return
Fi$ed
term plan
!orrelation is sinificant at the 2.2D level )6-tailed*.
V.
7nalysis-
From this we can say that, there is a sinificant positive correlation between
diversified fund and hih yield fund i.e. .-66 means that they both can o hand in
hand. 4ikewise there is a sinificant positive correlation between diversified fund and
assured return I.e. .-.,. As also we can see that there is neative correlation
between diversified fund and fi$ed term plan, I.e. they cant o hand in hand. And
also there is a neative correlation between hih yield fund and fi$ed term plan. And
there is positive correlation between assured return and fi$ed term plan.
Kousali Institute of Management Studies Dharwad 61
+A. ;hy you have not invested in mutual fundU
6on investers in Mutual fund
- -.2 +D.. +D..
++ ++.2 67.6 .>.-
++ ++.2 67.6 A+.7
++ ++.2 67.6 +22.2
>, >,.2 +22.2
-+ -+.2
+22 +22.2
insufficient fund
risk of return
lack of information
low savins
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
/on investers in 'utual fund
/on investers in 'utual fund
low savins lack of inf ormation risk of return insuff icient f und
F
r
e
#
u
e
n
c
y
+6
+2
7
-
.
6
2
7nalysis-
From this we can say that, most of the people are not invested in the mutual
fund because of risk of return, lack of information and also because of low savins.
%o here we can come to know that the reason for not investin in the mutual fund.
"nly some people have said that because of insufficient fund they have not invested.
Kousali Institute of Management Studies Dharwad 62
+7. ;here you have planned to Invest and rank them accordin to your preference
a. 0ank of mutual fund
Mutual fund
. ..2 +2.> +2.>
6 6.2 D.+ +D..
+D +D.2 >7.D D>.7
A A.2 +A., A+.7
+2 +2.2 6D.- ,A..
+ +.2 6.- +22.2
>, >,.2 +22.2
-+ -+.2
+22 +22.2
+
6
>
.
D
-
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
'utual fund
'utual fund
- D . > 6 +
F
r
e
#
u
e
n
c
y
+-
+.
+6
+2
7
-
.
6
2
7nalysis-
From this we can come to know that, most of the non investors have iven third
preference, if they decided to invest in the future. <y investin in the first and second
preferences ne$t if savins left than ne$t preference of investin will be of mutual
fund.
Kousali Institute of Management Studies Dharwad 63
b. 0ank of stock
Stock
+> +>.2 >>.> >>.>
D D.2 +6.7 .-.6
- -.2 +D.. -+.D
A A.2 +A., A,.D
. ..2 +2.> 7,.A
. ..2 +2.> +22.2
>, >,.2 +22.2
-+ -+.2
+22 +22.2
+
6
>
.
D
-
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
%tock
%tock
- D . > 6 +
F
r
e
#
u
e
n
c
y
+.
+6
+2
7
-
.
6
2
7nalysis-
From this we can come to know that, most of the non investors have iven
first preference to the stocks, if they decided to invest in the future. The first
preference will be investin in the stock because of li#uidity. %o we can say that
there is a ood response of no investors towards stocks.
Kousali Institute of Management Studies Dharwad 64
c. 0ank of real estate
Beal /state
D D.2 +6.7 +6.7
> >.2 A.A 62.D
6 6.2 D.+ 6D.-
D D.2 +6.7 >7.D
++ ++.2 67.6 --.A
+> +>.2 >>.> +22.2
>, >,.2 +22.2
-+ -+.2
+22 +22.2
+
6
>
.
D
-
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
0eal =state
0eal =state
- D . > 6 +
F
r
e
#
u
e
n
c
y
+.
+6
+2
7
-
.
6
2
7nalysis-
From this we can come to know that, most of the non investors have iven
last preference towards real estate, if they decided to invest in the future.
After investin in all the field if savins left means than ne$t and the last option of
investin will be real estate.
Kousali Institute of Management Studies Dharwad 65
d. 0ank of insurance
insurance
- -.2 +D.7 +D.7
62 62.2 D6.- -7..
7 7.2 6+.+ 7,.D
. ..2 +2.D +22.2
>7 >7.2 +22.2
-6 -6.2
+22 +22.2
+
6
>
.
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
insurance
insurance
. > 6 +
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
From this we can come to know that, most of the non investors have iven
second preference towards insurance, if they decided to invest in the future. After
investin in the stocks than the ne$t preference will be insurance for the safety
purpose. %o most of the non investors have ranked insurance as second preference.
Kousali Institute of Management Studies Dharwad 66
e. 0ank of fi$ed deposits
fi3ed deposites
, ,.2 6>.+ 6>.+
A A.2 +A., .+.2
7 7.2 62.D -+.D
- -.2 +D.. A-.,
7 7.2 62.D ,A..
+ +.2 6.- +22.2
>, >,.2 +22.2
-+ -+.2
+22 +22.2
+
6
>
.
D
-
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
fi$ed deposites
fi$ed deposites
- D . > 6 +
F
r
e
#
u
e
n
c
y
+2
7
-
.
6
2
7nalysis-
From this we can come to know that, most of the non investors have iven first
preference towards fi$ed deposits, if they decided to invest in the future. After
investin in the stocks the e#ual preference is iven to fi$ed deposits also because
of return and safety purpose.
Kousali Institute of Management Studies Dharwad 67
f. 0ank of post office
%ost ;ffice
6 6.2 D.+ D.+
+ +.2 6.- A.A
+2 +2.2 6D.- >>.>
A A.2 +A., D+.>
+, +,.2 .7.A +22.2
>, >,.2 +22.2
-+ -+.2
+22 +22.2
+
6
.
D
-
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
1ost "ffice
1ost "ffice
- D . 6 +
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
From this we can come to know that, most of the non investors have iven
last preference towards post office, if they decided to invest in the future. After
investin in the all the securities if savins left means than only they are preferrin to
invest in the post office, so they have iven last preference towards post office
deposits.
Kousali Institute of Management Studies Dharwad 68
+,. 3ave you planned to Invest in 'utual Fund in the futureU
%laned to invest in future in MF
>. >..2 7,.D 7,.D
. ..2 +2.D +22.2
>7 >7.2 +22.2
-6 -6.2
+22 +22.2
yes
no
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
1laned to invest in future in 'F
1laned to invest in future in 'F
no yes
F
r
e
#
u
e
n
c
y
.2
>2
62
+2
2
7nalysis-
From this we can come to know that from the no investors respondents of >7
people >. are interested in investin in the future. And now because of some reason
they have not invested. And . of them are not interested in investin in the future
also. <ecause of risk of return, not interested to invest and some for insufficient
information.
Kousali Institute of Management Studies Dharwad 69
62. If yes, in which scheme you are plannin to investU
a. 0ank of e#uity.
e>ty rank if planed to invest in future
+, +,.2 D..> D..>
, ,.2 6D.A 72.2
A A.2 62.2 +22.2
>D >D.2 +22.2
-D -D.2
+22 +22.2
first
second
third
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
e#ty rank if planed to invest in future
e#ty rank if planed to invest in future
third second f irst
F
r
e
#
u
e
n
c
y
62
+2
2
7nalysis-
From this we can say that, most of the no investors, who are ready to invest in
the future, i.e. from >D people, +, people have ranked as +
st
to invest in the e#uity
mutual fund only . This may be because of capital appreciation and ta$ benefits. %o
most of the people are oin for e#uity based scheme.
Kousali Institute of Management Studies Dharwad 70
b. 0ank of debt
debt rank if planed to invest in future
. ..2 ++.. ++..
- -.2 +A.+ 67.-
6D 6D.2 A+.. +22.2
>D >D.2 +22.2
-D -D.2
+22 +22.2
first
second
third
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
debt rank if planed to invest in future
debt rank if planed to invest in future
third second f irst
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
From this we can say that, most of the no investors, who are ready to invest
in the future, i.e. from >D people, 6D people have ranked as >
rd
to invest in the debt
based mutual fund only . This may be because of assured return and safety. %o
most of the people are ivin last preference for debt based scheme.
Kousali Institute of Management Studies Dharwad 71
c. 0ank of balanced
balanced rank if planed to invest in future
++ ++.2 >+.. >+..
62 62.2 DA.+ 77.-
. ..2 ++.. +22.2
>D >D.2 +22.2
-D -D.2
+22 +22.2
first
second
third
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
balanced rank if planed to invest in future
balanced rank if planed to invest in future
third second f irst
F
r
e
#
u
e
n
c
y
>2
62
+2
2
7nalysis-
From this we can say that, most of the no investors, who are ready to invest in
the future, i.e. from >D people, 62 people have ranked as 6
nd
to invest in the
balanced mutual fund only . This may be because of capital appreciation, return and
ta$ benefits. %o most of the people are oin for balanced based scheme.
Kousali Institute of Management Studies Dharwad 72
6+. Factors considered while plannin investin in 'utual Fund in the futureU
a. Factors considered while investin in mutual fund
factors of e>uity by non investors
+ +.2 6., 6.,
+6 +6.2 >..> >A.+
++ ++.2 >+.. -7.-
A A.2 62.2 77.-
. ..2 ++.. +22.2
>D >D.2 +22.2
-D -D.2
+22 +22.2
risk
return
capital appreciation
ta$ benefits
safety
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
factors of e#uity by non investors
factors of e#uity by non investors
safety
ta$ benef its
capital appreciation
return
risk
F
r
e
#
u
e
n
c
y
+.
+6
+2
7
-
.
6
2
7nalysis-
From this we can say that most of the non investors are plannin to invest in
the future I.e. from >D, for e#uity scheme, +6 respondents think that they will et
ood return by investin in this scheme and also ++ people have planned for capital
appreciation sake.
Kousali Institute of Management Studies Dharwad 73
b. Factors considered while investin in debt mutual fund
factors of debt by non investors
> >.2 7.- 7.-
, ,.2 6D.A >..>
A A.2 62.2 D..>
++ ++.2 >+.. 7D.A
D D.2 +..> +22.2
>D >D.2 +22.2
-D -D.2
+22 +22.2
risk
return
capital appreciation
ta$ benefits
safety
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
factors of debt by non investors
factors of debt by non investors
safety
ta$ benef its
capital appreciation
return
risk
F
r
e
#
u
e
n
c
y
+6
+2
7
-
.
6
2
7nalysis-
From this we can say that most of the non investors are plannin to invest in
the future I.e. from >D, for debt scheme, ++ respondents think that they will et ta$
benefits by investin in this scheme and also , people have planned for assured
return sake.
Kousali Institute of Management Studies Dharwad 74
c. Factors considered while investin in balanced mutual fund
factors of balanced by non investors
+ +.2 6., 6.,
+ +.2 6., D.A
++ ++.2 >+.. >A.+
7 7.2 66., -2.2
+. +..2 .2.2 +22.2
>D >D.2 +22.2
-D -D.2
+22 +22.2
risk
return
capital appreciation
ta$ benefits
safety
Total
Ealid
%ystem 'issin
Total
Fre#uency 1ercent Ealid 1ercent
!umulative
1ercent
factors of balanced by non investors
factors of balanced by non investors
safety
ta$ benef its
capital appreciation
return
risk
F
r
e
#
u
e
n
c
y
+-
+.
+6
+2
7
-
.
6
2
7nalysis-
From this we can say that most of the non investors are plannin to invest in
the future I.e. from >D, for balanced scheme, +. respondents think that they will et
safety by investin in this scheme and also ++ people have planned for capital
appreciation sake.

Kousali Institute of Management Studies Dharwad 75

Findins and suestions
Kousali Institute of Management Studies Dharwad 76
Findins-
Amon the respondents, the ae roup between 6+->2 has invested more in
mutual fund compared to other ae roups. %o, I can say that this ae
roup who are the employees can be taret customers for mutual fund
companies.
From the survey, I came to know that most of the people amon the
respondents savins are +2222 to 62222 and they are investin in the
mutual fund due to return, safety and ta$ benefit purpose.
About the awareness we can say that most popular media for advertisin
the mutual fund is financial advisors because they will be investin for ta$
benefit and return purpose. And also news paper is the best media for
advertisin the mutual fund.
From the investors of the mutual fund investors I came to know that the
main ob&ective of the investment of the mutual fund is for ta$ benefits, return
and capital appreciation.
;hile investin in the e#uity scheme most of the respondents ob&ective was
capital appreciation. ;hile investin in the debt scheme most of the
respondents ob&ective was ta$ benefit and capital appreciation both. ;hile
investin in the debt scheme most of the respondents ob&ective was ta$
benefit and safety both.
'ost of the respondents have invested in open ended scheme as compared
to that of closed ended scheme.
'ost of the respondents have invested in the mutual fund for the 6 to D
years. <y this we can say that most of the people prefer to o for mutual
fund investment for 6 to D years dependin upon there ob&ectives on
investment.
<y askin the respondents to rank the schemes, they have chosen e#uity
scheme as very ood, debt scheme as neutral and balanced scheme as
neutral and ood.
Kousali Institute of Management Studies Dharwad 77
<y askin them to rank the various e#uity schemes, respondents have
ranked as dividend fund, madcap fund, Browth and =4%% schemes as very
ood schemes.
<y askin them to rank the various debt schemes, respondents have
ranked as diversified fund, hih yield fund, assured return fund are iven
more preference, than fi$ed term fund.
'ost of the non investors have not invested due to risk of return, lack of
information and low savins.
'ost of the non investors amon the respondents ive mutual fund third
preference while investin.
'ost of the non investors also ive e#uity scheme as first preference,
balanced scheme as second preference, and debt scheme as third
preference.
Kousali Institute of Management Studies Dharwad 78
Suestions4
As we can see that 6+->2 are the taret customers, the mutual fund
companies should also focus on the customers between >+-.2, by ivin
them necessary benefits for which they are investin.
'ost of the people whose savin is +2222-62222 are investin in the mutual
fund for safety and return. The companies should also taret whose income
is below +2222 also and they will be investin for return and capital
appreciation. The companies can introduce more schemes for these income
people.
To create awareness of mutual fund the best media will be news paper
because employees, businessman and retired people will be readin news
paper daily.
'utual fund companies should also provide the facility for li#uidity purpose
so that some people whose ob&ective will be this can invest in these
schemes.
As we can see that most of the people have invested in open-ended
scheme and very rare in closed-ended scheme. 'utual fund companies
should attract customers with these schemes also.
3ere by the survey I came to know that most of the people prefer to invest
for 6-Dyears . and very few people are interested in investin more than D
years. %o mutual fund companies should induce the customers to o for
lon term and they could et some benefits like ta$ benefits, safety etc.
'ost of the people are unaware of various schemes in e#uity, debt. %o
detail information should be iven by the fund manaer while investin the
fund.
'utual fund companies should also ive information of new funds to the
customers to invest e..-old fund newly introduced but not known to the
most of the customers.
To educate the non-investors about %I1 )systematic investment plan*. In
these parts of the state %I1 plan of mutual funds is not popular it has to be
Kousali Institute of Management Studies Dharwad 79
increased in order to fetch more savins of middle and low level of income
peoples savins. And this will not be risky to invest in the mutual fund.
As I have seen in the survey that most of the non-investors are ivin
mutual fund third preference and prefers e#uity scheme. so company should
inform non-investors that even debt and balanced is beneficial to them.
All mutual fund companies should conduct seminars, workshops on financial
markets, which will help the individuals to asses, the risk involved in
investin in mutual funds and also know the possible returns they will et if
they invest in that particular sector. 1referably these seminars should be
held on weekends
Kousali Institute of Management Studies Dharwad 80

Kousali Institute of Management Studies Dharwad 81

:uestionnaire
8ear respondents,
I am the students of Gousali Institute of Manaement Studies, Carnataka
(niversity, 8harwad conductin research on Investors %erception on Mutual Fund
Scheme. I kindly re#uest you to fill up this #uestionnaireT the inputs provided by you
will utmost important for our further analysis and we assure you that the information
provided by you will be kept confidential.
/ameM WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
+. BenderM 'aleM FemaleM
6. AeM
a. <elow 62 M b. 6+->2M
c. >+-.2 M d. .+-D2M
e. 'ore than D2M
>. "ccupationM
a. <usinessman b. =mployee
c. 1rofessional d. 0etired person
.. Annual income
a. D2222- + lakh b. + lakh-> lakh
c. > lakh- D lakh d. D lakh and +2 lakh
e. +2 lakh and more
D. 3ow much will be your 'onthly savinsU
a. <elow +2222 b. +2222-62222
c. 62222->2222 d. >2222-.2222
d. Above D2222
-. ;hat source of information will create awareness to you on 'utual FundU
a. T.E b. /ews 1aper Friends
d. Financial Advisor e. If any other specifyWWWWWWWWWWWWWWWWWW
A. 3ave you Investment in 'utual FundU
a. Oes b. /o
JIf /o, skip to +A
th
#uestionL
7. If Oes, what is the main ob&ective of your investment in 'utual FundU
a. 0isk b. 0eturn
c. Ta$ <enefits d. !apital Appreciation
e. %afety f. 4i#uidity
f. If any other please specifyWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
,. If invested in the mutual fund, in which scheme you have investedU
a. =#uity based b. 8ebt based c. <alanced based
Kousali Institute of Management Studies Dharwad 82
+2. Factors considered while investin in 'utual FundU
Attribute Assured
0eturn
!apital
Appreciation
Ta$
savin
%afety
=#uity based
8ebt based
<alanced
++. In which scheme you have investedU
a. "pen =nded b. !losed =nded
+6. If Invested in 'utual Fund, term of your investmentU
a. +-6yrs b. 6-Dyrs
c .D-+2yrs d .'ore than +2yrs
+>. If Biven you +22 points , 8istribute it accordin to your preference
'utual Fund Insurance
%tocks Fi$ed 8eposits
0eal =state 1ost "ffice
+.. 0ate these 'utual Fund accordin to your preference )+ is least and D is
ma$imum*
Attribute + 6 > . D
=#uity based
8ebt based
<alanced
+D. If you have interested or invested in =#uity based 'utual Fund 1lease rank the
followin %chemesU
Attribute + 6 > . D
Browth Fund
%ector Fund
'id cap or
%mall cap Fund
=#uity 4inked
savin %cheme
8ividend Fund
Bold Fund
+-. If you have interested or invested in 8ebt based 'utual Fund 1lease rank the
followin %chemesU
Attribute + 6 > . D
8iversified 8ebt
3ih Oield 8ebt
Assured 0eturn
Fi$ed Term 1lan
Kousali Institute of Management Studies Dharwad 83
If 6on Investors of Mutual Fund please ans@er the follo@in Fuestions
+A. ;hy you have not invested in mutual fundU
a. Insufficient fund b. 0isk of return
c. 4ack of information d. 4ow savins
+7. ;here you have planned to Invest and rank them accordin to your preference
a. 'utual Fund e. Insurance
b. %tocks f. Fi$ed 8eposits
c. 0eal =state . 1ost "ffice
+,. 3ave you planned to Invest in 'utual Fund in the futureU
a. Oes b. /o
If /o whyWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
62. If yes, in which scheme you are plannin to investU
a. =#uity based 'utual Fund
b. 8ebt based 'utual Fund
c. <alanced based 'utual Fund
6+. Factors considered while plannin investin in 'utual Fund in the futureU
Attribute 0isk 0eturn !apital
Appreciation
Ta$
<enefits
%afety
=#uity based
8ebt based
<alanced

Thank you

Kousali Institute of Management Studies Dharwad 84
Bibliography
Internet-
+. www.amfiindiaHconcept.com
6. www.oole.com
>. www.onlinestockholdin.com
.. www.bseindia.com
Books-
+. 'arketin 0esearch D
th
edition by /aresh C 'alhotra
6. %tock 3oldin !orporation of India 4td, operatin procedure for <eneficary
Account 3older.
>. !8%4 Oour 8epository book.
.. <usiness standard news paper 'onday issue.
D. Annual report of the company.

Kousali Institute of Management Studies Dharwad 85
Master "odin Sheet-
:.+ :.6 :.> :.. :.D :.- :.A :.7 :., :.+2

:.++ :.+6
Ben Ae "cc Ann %av Awa Inv "b& %ch fac Ter
=#u 8eb <al %ch
a e d c c a a e a b c c b
a e d d e d a c a b c c a d
a d c c c d a c a b c d a c
a c b b c d a f a b c d a b
a d d c b c a f a c d e a c
a d b b a a a e b c d b a c
a c c c b b a b a d c b a b
a e d c b b a b c d c b a c
b c c c b a a b c b c d a b
a c b d c d a c a c b c a b
a d a c b a a b c d b b b b
a c b c b b a c b c d b a b
a b c e e b a c a c b c a d
a b b d e d a c a c d b a d
a c b c b b a e a b c d a c
a c a b b b a b b c b c a c
a c d c b a a d a c b c a c
a b c d d d a c a c d b b b
b d d c b d a c b a c b b c
a b c c b d a e b c b c b b
a b c c b c a e b d b a b a
a b b b a b a f b d c d a b
a b b b a a a d c d b d a b
b b a b a a a c b b c b b a
a b b c b c b d c c b d a c
a b b b b c a c b b c d a b
b b c e e d a d a b a c a b
a c c d c d a c a c b d b c
a c b b a a a c a a b c a a
b b b a a a a b a a d b a a
a b c b a a a b a b a d a a
a b b b b a a c a b a b a b
a e b b a b a d a a b c a b
a c b c b b a d a a b a a d
a c b b a a a b a c d b b b
a c b a a b a b a b d d b a
a d d a a d a b a d b d a a
a b b b a c a c c a b c b b
a d a c b c a b a a d d a b
a d a a a d a d a b a d a a
a c b c b a a a c b c d b b
b b b c c d a c a b c b a b
b b b b b c a e a b c a a b
a e b c c b a b a a b d a b
a a b b a a a c a a c d a b
a e a a a b a e a b c d a b
Kousali Institute of Management Studies Dharwad 86
a c b b a b a c a b c d a b
a b b b a c a f a c b d a b
a b b b a c a d a c b c b b
a b b b b d a b a a d b a b
a b b b b a b b b d c b b c
a b c c c d a c a e d c a b
a d c b b b a d c c d e b a
a b b b b d a e a a d e a c
a b b c c c a d a c d c a b
a b b c b c a f b b c c a c
a b b c b c a c a b d c b b
a b b b b c a b c b d c a b
a b b c b c a e b c b e b b
a b b c c c a f b b c c a c
a b b c c b a d a c b c b b
a b c b b c b . . . . . . .
a a a a a b b . . . . . . .
a a a a a b b . . . . . . .
b a a a a a b . . . . . . .
a a a a a a b . . . . . . .
b d a c b a b . . . . . . .
a b a c b d b . . . . . . .
a b a d e d b . . . . . . .
a c c c b b b . . . . . . .
b b b d c d b . . . . . . .
b b b a a a b . . . . . . .
a e a b b d b . . . . . . .
b b b b a b b . . . . . . .
a d c b b c b . . . . . . .
a b a c b b b . . . . . . .
a c b b b d b . . . . . . .
b b b b b d b . . . . . . .
b b b b a a b . . . . . . .
a b b b a b b . . . . . . .
a b b c c d b . . . . . . .
b b b b a a b . . . . . . .
a b b c b d b . . . . . . .
a c b d c d b . . . . . . .
a c a a a a b . . . . . . .
a c b c a b b . . . . . . .
b b b a a d b . . . . . . .
a b c a a d b . . . . . . .
a e a b a a b . . . . . . .
a c b c b b b . . . . . . .
a c b c b a b . . . . . . .
a b b c a b b . . . . . . .
b b b b a d b . . . . . . .
b b b b a b b . . . . . . .
b b b b a a b . . . . . . .
a b c b b d b . . . . . . .
a c d c b b b . . . . . . .
a b b c c b b . . . . . . .
b c c c b d b . . . . . . .
a b c a a d b . . . . . . .
Kousali Institute of Management Studies Dharwad 87
:.+> :.+. :.+D :.+-
Kousali Institute of Management Studies Dharwad 88
1referance 0ate =#uity rates
'F %to

0ea

Ins F8 1os =#u 8eb <al Bro %ec 'id =4% 8iv Bol 8iv 3i 0et Fi$
62 +2 +2 62 62 62 e d d e d c d c b . . . .
62 62 62 +2 +2 62 e d c e c d d c b . . . .
62 62 +2 62 62 +2 c d e e c d c d e . . . .
62 62 62 62 +2 +2 c d e e c d d c b . . . .
>2 62 +2 +2 62 +2 e d e e d c d d b . . . .
62 62 62 62 +2 +2 e c d . . . . . d c e d
62 +2 +2 62 62 62 e d e e d c c b a . . . .
>2 62 +2 +2 62 +2 c d e e d c d d b e d d e
62 62 62 +2 62 +2 d c e e d c e b b e c d b
62 +2 +2 62 >2 +2 d e d e d c e c b . . . .
62 62 +2 +2 62 +2 c e d . . . . . . d c e d
+2 +2 62 62 62 62 d c e . . . . . . e d c d
62 62 62 62 +2 +2 e d c e d d e d b . . . .
>2 62 D >2 +2 D b b c e d c d d b . . . .
>2 62 D >2 +2 D e c d e d c e d b . . . .
62 62 +2 62 62 +2 e d c . . . . . . c d e d
62 +2 62 62 +2 62 e c d e d c e b b . . . .
62 62 +2 62 62 +2 d c d e c d c d d . . . .
+2 +2 62 +2 62 >2 e c d e c c d d e . . . .
>2 +2 62 +2 +2 62 c d b a c c c d e . . . .
>2 >2 62 +2 D D c b b b c d c d e . . . .
>2 62 >2 D D +2 b a c . . . . . . b c a d
62 62 .2 +2 D D c a d b c a c d a . . .
+2 62 +2 >2 +2 62 d c e . . . . . d c c d
+2 62 D >2 62 D e c d b c a d e b b c a d
62 >2 +2 62 +2 62 . . . . . . . . . c d b a
+2 62 .2 +2 +2 +2 e d e e c d c b b . . . .
.2 >2 62 D D 2 d c d d c d e d b . . . .
6D >D 62 D +2 D a d c e d c e c c . . . .
+2 .2 +D +2 +2 +D a c b d c b e c b . . . .
D2 >2 62 +2 D D e c d e b c e e c . . . .
>2 .2 +2 D D +2 a c a e d e e b b . . . .
.2 >2 +2 +2 +2 2 e e d e c c d d c . . . .
+2 +2 .2 +2 62 +2 e c e e c d e d b . . . .
+2 D >2 >2 62 D a b c b e c a c d . . . .
D2 +2 2 +2 62 +2 e c d c b a e d a . . . .
>2 .2 2 2 >2 2 e d c e e c c e e . . . .
62 6D 2 D .2 +2 b c a a d b c d a . . . .
6D >2 D +2 62 +2 e c e b a e d e a . . . .
+2 +2 62 +2 +2 +2 e c d e e a b b b . . . .
>2 >2 62 +2 2 +2 c b e d c d d c b . . . .
62 62 +2 +2 62 62 c c c d b a c c c . . . .
+2 62 62 >2 +2 +2 b d b b c d d a c . . . .
>2 >2 .2 2 2 2 e d e a c c a a b . . . .
62 62 62 +2 +2 62 b c e e d c d d b . . . .
6D .2 +D 2 62 2 a c d d c c e e b . . . .
.2 62 +2 +2 +2 +2 d c c c c c d d d . . . .
62 >2 62 2 >2 2 b c b b c a c b a . . . .
>2 62 62 2 >2 2 b c a b c d b c a . . . .
>2 .2 2 +2 2 62 d c b c c b e d b . . . .
D2 +2 62 2 62 2 b b c a c b a d a . . . .
Kousali Institute of Management Studies Dharwad 89
.2 62 62 2 62 2 c c c a b a b a a . . . .
+2 62 D2 +2 D D c d c e c d c d c . . . .
.2 +2 >2 2 62 2 b c b a b c b c a . . . .
>2 62 >2 2 2 62 b a c c b d b c a . . . .
62 >2 .2 2 +2 2 a b c . . . . . . a b a d
.2 62 2 2 .2 2 a c e a c b d e b . . . .
>2 >2 D D >2 2 b a c b a c b a b . . . .
62 >2 >2 D D +2 c b b . . . . . . d c a b
62 >2 .2 D D 2 a b c . . . . . . a b a d
>2 62 62 D 62 D b c a b c d b c a . . . .
:.+A :.+7 :.+, :.62 :.6+
0eason
of non
invt 0ank of 1referance
Interest
in 'F Invtplan Factor consider
'utual
Fund %tock
0eal
=state Insurance F8
1ost
"ffice =#uity 8ebt <alanced =#uity 8ebt
Kousali Institute of Management Studies Dharwad 90
a > + D 6 . - a 6 > + e d c
a > + - 6 . D a + > 6 b d e
a > . D + 6 - a 6 > + b c d
a . + - 6 > D a 6 > + b d c
a > . D 6 + D a + > 6 c b d
a D . - > 6 + a + > 6 d a e
b + . D > 6 - a + > 6 c d e
b D + - 6 > . a + 6 > c d e
b D + . 6 > - a + > 6 c c d
b . > D + 6 - a + > 6 d e e
b D . - . > + b > + 6 a e d
b > + D 6 . - . . . . . . .
b > - . 6 + D a 6 > + c b c
b - > 6 + D . a + > 6 b a e
b > D . 6 + - a + > 6 b d c
b D > 6 . + - a 6 > + e d c
b > 6 + . D - a + > 6 d e c
c D + - 6 > . b . . . . . .
c . + D 6 > - a + > 6 d c e
c + . D > 6 - a + > 6 b d c
c + D - > 6 . a 6 > + b c d
c . > 6 + D - a > 6 + d c e
c D - + 6 > . a > + 6 b d c
c . + > 6 D - b . . . . . .
c > + D 6 . - b . . . . . .
c D > . 6 + - a 6 > + b b e
c 6 D - > + . a + > 6 e b d
c > D + 6 - . a > 6 + c e c
d > 6 . + D - a + > 6 c b b
d D + - 6 > . a + 6 > b c d
d + 6 > . D - a + > 6 c b e
d D 6 + > . - a > + 6 c a d
d . > - 6 + D a + 6 > d b e
d > 6 + . D - a + > 6 e d c
d 6 . - > + D a 6 > + c b e
d > - D + 6 . a 6 > + b d e
d . - D > + 6 a > + 6 d b e
d > + - 6 D . a > 6 > b c c
d > + - 6 . D a + > 6 c e a
Kousali Institute of Management Studies Dharwad 91

Vous aimerez peut-être aussi