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