SUMMER INTERNSHIP REPORT

AN ANALYSIS ON INVESTORS BEHAVIOUR REGARDING MUTUAL FUND

Submitted by
Pulkit Agarwal
A0102213049
MBA Class of 2015
Under the Supervision of

Ms. Vandana Gupta
Assistant Professor
Department of Marketing

In Partial Fulfillment of the Requirements for the Degree of
Master of Business Administration (Marketing & Sales)


AMITY BUSINESS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
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DECLARATION


The title of Summer internship is
An Analysis on Investors Behavior Regarding Mutual Fund
I declare that (a) the work presented for assessment in this Summer Internship is my
original work, that it has not previously been presented for any other assessment and that
my debts (for words, data, arguments and ideas) have been appropriately acknowledged;
(b) work conforms to the guidelines laid by the University, and (c) Plagiarism for this
report has been checked using Turnitin software and is 6 %. The summary of report is
attached along with for reference.

Date: Pulkit Agarwal
A0102213049
MBA M&S (class of 2015)





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CERTIFICATE

This is to certify that Pulkit Agarwal student of Masters of Business Administration
M&S at Amity Business School, Amity University Uttar Pradesh has completed the
Summer Internship on An Analysis on Investors Behavior Regarding Mutual Fund, in
Partial Fulfilment of the Requirements for the Degree of Master of Business
Administration Marketing & Sales under my guidance.
The report has been checked for the plagiarism and it is acceptable.

Ms. Vandana Gupta
Assistant Professor
Department of Marketing





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ACKNOWLEDGEMENT


I take this opportunity to express my deep sense of gratitude to all those who have
contributed significantly by sharing their knowledge and experience in the completion of
this project work. I am greatly obliged to, for providing me with the right kind of
opportunity and facilities to complete this venture
My first word of gratitude is due to Mr. Vinayak Sharma (Industry guide), for his
valuable guidance, constant supervision and above all his continuous encouragement &
support during the tenure of this project.
I am highly thankful to Ms. Vandana Gupta (Faculty guide) for providing me with
regular inputs and shared her vast knowledge and expertise for completing this project.
Finally, I would also like to thank all my dear friends for their cooperation, advice and
encouragement during the long and arduous task of carrying out the project and preparing
this report.






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TABLE OF CONTENTS

i. Title page,...
ii. Declaration.ii
iii. Faculty guide Certificate....iii
iv. Certificate...iv
v. Acknowledgment....v
vi. Table of contents........vi
vii. List of Figures.vii
viii. Executive Summary...viii
ix. Introduction......1
x. Company Profile......9
xi. Review of Literature17
xii. Research Methodology21
xiii. Data Analysis...24
xiv. Findings39
xv. Recommendations41
xvi. Conclusion43
xvii. Bibliography.....45
xviii. Questionnaire....47


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LIST OF FIGURES

S.No. FIGURES PAGE NO.
1 Figure 1.1 4
2 Figure 1.2 6
3 Figure 1.3 8
4 Figure 2.1 26
5 Figure 2.2 27
6 Figure 2.3 28
7 Figure 2.4 29
8 Figure 2.5 30
9 Figure 2.6 31
10 Figure 2.7 32
11 Figure 2.8 33
12 Figure 2.9 34
13 Figure 2.10 35
14 Figure 2.11 36
15 Figure 2.12 37
16 Figure 2.13 38









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EXECUTI VE SUMMARY













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(Investors Behavior Regarding Mutual Fund)
In a couple of years Mutual Fund has developed as a device for guaranteeing peoples
monetary prosperity. Mutual fund has helped the India development story as well as
helped families abuse into the accomplishment of Indian Industry. As data and
mindfulness is climbing more individuals are appreciating the profits of putting resources
into common store. The fundamental reason the amount of retail Mutual fund speculators
stays little is that eight in ten individuals in India don't have a clue about that Mutual fund
exists. Be that as it may once individuals are mindful of shared trust venture open doors,
the amount of individuals putting resources into Mutual fund will expand to upwards of
one in five individuals. The trick for changing over an individual with no learning of
shared store to another Mutual Fund client is to comprehend which of the potential
speculators are inclined to purchase Mutual fund and to utilize the right contentions
within the deals transform that clients will acknowledge as imperative and pertinent to
their choice. This venture provided for me an incredible learning background and at a
same time it provided for me enough space to actualize my explanatory capacity. The
investigation and counsel introduced in this Project report is focused around statistical
surveying on the sparing and speculation practices of the financial specialists and
inclination of the speculators for venture in common store. This report in future will help
to think about the speculator's inclination in the means of mutual fund, are they favor any
specific Asset Management Company (AMC), which kind of item they lean toward,
which choice (Growth or Dividend) they incline toward or which venture technique they
proceed(systematic financing arrangement or one time scheme). This task overall might
be isolated into two sections.
The primary section gives an understanding of Mutual Fund and its different viewpoints,
the organization profile, goals of the study, Research Methodology. One can have a short
learning about shared store and its fundamentals through the undertaking. The second
piece of the venture comprises of information and its investigation gathered through
review done on 98 individuals. For the gathering of essential information I made a survey
and studied 98 individuals. I likewise took meeting of numerous individuals the
individuals who were taking on at the Reliance Branch where I put up on a task. I went
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by different Amcs in Meerut to get some learning identified with my subject. I
considered about the items and methodologies of different Amcs in Meerut to know why
individuals like to put resources into those Amcs. This task blankets the point "AN
ANALYSIS ON INVESTORS BEHAVIOR REGARDING MUTUAL FUND" The
information gathered (ippoloto, 1989)has been decently composed and introduced. I trust
the examination discoveries and conclusion will be useful

1









INTRODUCTION







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A Mutual Fund is a professionally managed collective form of investment that pools
money from many investors and invests it in stocks, bonds, money market instrument and
other securities.
In a mutual fund, the fund manager, who is also known as the fund manager, trades the
funds, realizing capital gains or losses, a collects the dividend or interest income. The
investment regulated is passed along to the individual investors. The money earned
through these financing and the capital thanks acknowledged are imparted by its unit
holders in extent to the amount of units claimed by them. The major feature of the fund is
that the contributors and the beneficiaries are none other than the people who invest in
the mutual fund. The value of the share of the mutual fund, known as the net asset value
per share (NAV) is calculated on the daily basis as per the movement in the market on the
total value of the fund divided by the number of shares issued.
Since Indian economy is an open market and has started incorporation with the world
markets. Factors like increase in US interest rates, hike in crude prices, or other major
happenings in world market influences on the Indian stock market.
Although it is impossible for an individual investor to understand stock market and the
process of investing in the market consumes a lot of time. Mutual funds (whose fund
managers are paid to understand the market) provide an option of a care free investing.
Currently there are 33 mutual funds in India and a close to 400 mutual fund schemes. The
total funds under the mutual fund management in India are over Rs. 139000 crores. The
private funds accounts for around 77 percent.





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DEFI NI TI ONS OF MUTUAL FUNDS

Mutual fund is a corporation, which accepts money from investors and uses the same to
buy stocks, long-term bonds & short-term debt instruments used by issuers.
-IERCE & JAMES.L

The SEBI Mutual Fund Regulations 1993 defines Mutual Fund as:
Fund established in form of Trust by a Sponsor to raise money by the Trustees through
sale of units of the Public under one or more Schemes for investing in Securities in
accordance with these regulations
-WESTON..J.FRED & BRIGHAM

The mutual fund as an important vehicle for bringing wealth holders and deficit units
together indirectly
-JAMES PIERCE

Mutual fund as financial intermediaries which being a wide variety of securities within
the reach of the most modest of inventors
-FRANK RELICY


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Figure 1.1
http://wealth18.com/basics-of-mutual-fund/

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The shared trust industry in India began in 1963 with the establishment of Unit Trust of
India, with the activity of the legislature of India and Reserve Bank of India. The
historical backdrop of shared finances in India is isolated into four different expressions.
Initial Phase 1964-87:
Unit trust of India (UTI) was secured on 1963 by a show of parliament. It was organized
by the Reserve Bank of India and worked under the Regulatory and managerial control of
the Reserve Bank of India. In 1978 UTI was dislodged from the RBI and the Industrial
Bank of India (IDBI) expected control over the authoritative and managerial control set
up of RBI. The fundamental arrangement dispatched by UTI was Unit Scheme in 1964.
Prior to the end of 1988 UTI had Rs.6, 700 crores of trusts under organization.

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Second Phase- 1987-1993 (Entry of Public Sector Funds):
In 1978 non-UTI, open segment shared trusts set up by open part banks and Life
Insurance Corporation of India (LIC) and General Corporation of India (GIC). SBI
Mutual Fund was the first non-UTI Mutual Fund built in June 1978 emulated by Canara
bank Mutual store (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct
92). LIC made its common reserve in June 1989 while GIC had set up its Mutual Fund in
December 1990.
At the end of 1993, the common trust industry had possessions under administration of
Rs. 47,004 crores.

Third Phase - 1993-2003 (Entry of private Sector Funds)
With the section of Private Sector Funds in 1993, another period has begun in the Indian
common store industry, giving the Indian financial specialists a more extensive decision
of trust families. Additionally, in 1993 the first Mutual Fund Regulations was shaped,
under which each common store, with the exception of UTI were to be enlisted and
legislated. The 1993 SEBI (Mutual Fund) Regulation was substituted by a clearer and
changed Mutual Fund Regulations in 1996. The business now works under the SEBI
Regulation 1996.
The amount of common store organizations continued expanding, with numerous remote
shared stores creating in India furthermore the business has saw a few mergers and
acquisitions. By the end of January 2003, 33 Mutual Fund with composite store holdings
of Rs. 1, 21,805 crores.
Fourth Phase- February 2003
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In February 2003, after the revocation of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate substances. One was Specified Undertaking of the Unit Trust
of India with stakes under organization of Rs. 29,835 crores as by the end of January
2003, addressing exhaustively, the points of interest of 64 arrangements, ensured return
and some specific distinctive arrangements. The Specified Undertaking of Unit Trust of
India, working in guidance of a director and under the rules encompassed by organization
of India and does not go down the horizon of the Mutual Fund Regulations.
After that the UTI Mutual Fund, supported by SBI, PNB, BOB and LIC. It is enlisted
with SEBI and capacity following the Fund Regulations. With the division of the past
UTI which had in March 2000 more than Rs.76000 crores worth of benefits under
administration and with the establishment of an UTI Mutual Fund, adjusting to the SEBI
Mutual Fund Regulations, and with late mergers occurring among diverse private
division subsidizes, the shared trust industry has entered its present period of
solidification and development.

The chart demonstrates the development of advantages through the years.
Note:
Past UTI was divided into UTI Mutual Fund and the Specified Undertaking of the Unit
Trust of India viable from February 2003. The funds held by administration of the
Specified Undertaking have in this way rejected from the aggregate stakes of business in
general from February 2003 onwards.
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Figure 1.2
https://www.amfiindia.com/research-information



WORKI NG OF A MUTUAL FUND
:
SPONSOR:
Any individual, who is working alone or in the coordinated effort with an alternate body
corporate, builds a Mutual store.

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ASSET MANAGEMENT COMPANY:
A firm that contributes the pooled funds of retail speculators in stocks and other business
sector instrument. The speculation organization gives more than broadening, liquidity,
and expert administration, for a charge.
TRUSTEE:
The trustee organization holds the property of the common store in trust for the profit of
the unit holder.
MUTUAL FUND:
A firm begins in a manifestation of a trust to raise cash by offering the units to the
general population under one or m mineral plans for putting resources into securities,
including currency business sector instruments.
TRANSFER AGENT:
An exchange operator is selected by a common trust to keep up records of shareholder
records, ascertain and give profits, get ready and mail explanations and different notices.
CUSTODIAN:
Common subsidizes by law need to secure their portfolio securities by pacing them with
overseer. Basically all the shared stores are use banks as a caretaker.
UNIT HOLDER:
Unit holder is an individual who holds the unit in the plan of a shared st
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Figure 3
http://www.tatamutualfund.com/knowledge/mutual-fundas/overview











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COMPANY PROFILE








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Reliance Mutual Fund (RMF) has been built as a trust by the Indian Trusts Act, 1882
with the support of Reliance Capital Limited (RCL), as the Sponsor.
FOUNDER
Dhirubhai Ambani
Founder Chairman
Reliance Industries Limited, India
December 28, 1932- July 6, 2002
Major Group Companies:
Reliance Industries Limited, Indias largest private sector company.
INTRODUCTION
About Reliance Capital Asset Management Ltd:
Reliance Capital Asset Management, an organization enrolled by the Companies Act,
1956 which was selected to go about as the Investment Monitor of Reliance Mutual
Fund.
Reliance Company Asset Management Ltd. is a fully claimed alliance of Reliance Capital
Ltd. The whole invested capital (100%) of Reliance Capital Asset Management Ltd is
controlled by Reliance Capital.
Reliance Company Asset Management Ltd. was sanction by SEBI as the Asset
Management Company vides their letter no IIMARP/1264/95 dated June 30, 1995. The
Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM
dated May 12, 1995and was corrected on August 12, 1997 in accordance with SEBI
(Mutual Fund) Regulations 1996. As per the IMA, RCAM is approved to act Investment
Manager of Reliance Mutual Fund. The total assets of Asset Management Company
incorporates inclination imparts as on March 31, 2005 is Rs.30.13 crores.
http://reliancemutual.com/mutual/virtual/page review/
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RCAM has been enlisted as a portfolio chief vides SEBI Registration/No.inp000000423
and restored successful first August, 2003. RCAM has started these exercises. It has been
guaranteed that key faculty of the AMC, the frameworks, back office, bank and securities
records are isolated action insightful and there exists frameworks to restrict access to
inside data of different exercises. According to SEBI Regulations, it will further
guarantee that AMC meets the capital ampleness prerequisites, if any, independently for
every such movement. RCAM has been designated as the Investment Manager of
"Reliance India Power Fund", a Venture Capital Fund enrolled with SEBI vide
enrollment no. IN/VCF/05-06/062 dated June 16, 2005 yet this movement is yet to begin.
Reliance Mutual Fund was organized to dispatch diverse plans under which units are
issued to general society with a point of view to help the capital business division and to
give monetary masters the opportunity to make hypotheses in separated securities.
Reliance Mutual Fund (RMF) is one of the India's heading Mutual Fund, with Average
Assets Under Management (AAUM) of Rs.88,388 crores (AAUM for 30th April 09) and
a monetary master base of in overabundance of 71.53 Lacs. Bit of the Reliance- Anil
Dhirubhai Ambani Group, is the fastest created Mutual Funds in India. Reliance offers
money related experts an adjusted plan of things to meet contrasting theorist requirements
and has region in 118 urban groups in India. Reliance Mutual Fund dependably tries to
dispatch imaginative things and customer organization exercises to grow quality to
budgetary masters. "Reliance Mutual Fund arrangements are administered by Reliance
Capital Asset Management Limited, a sub division of Reliance capital Limited, which
holds 93.73% of the paid-up capital of RCAM, the balance paid up capital being control
by minority shareholders." Reliance Capital Limited. India's leading and snappiest
creating personal division monetary organizations associations, and rank among the
principle 3 private part budgetary in holding organization, life and general insurance,
personal quality and prohibitive hypotheses, stock broking and fiscal organizations.

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THE MAIN OBJECTIVE OF THE TRUST IS:

The fundamental target of the Trust is:
To bear on the movement of the Mutual Fund as may be allowed at law and detail
and devise different aggregate. Schemes of reserve funds and speculations for
individuals in India and abroad furthermore guarantees liquidity of ventures for
the unit holders.
To send Funds consequently rose in order to help the Unit holders gain sensible
profits for their reserve funds
To make such strides as may be fundamental every once in a while understand the
impacts without any restriction.
The Sponsors Reliance Capital Limited Corporate and Registered Office:
Reliance Capital Ltd. H Block, first Floor, Dhirubhai Ambani Knowledge City,
Koparkhairne, Navi Mumbai- 400710.tel.022-30327000, Fax.022-30327202

PRODUCTS AND SERVICES OF RELIANCE MUTUAL FUND

Equity Schemes

Reliance Equity Fund:
(An opened finished differentiated Equity Schemes.) The essential Investment
Objective of the plan is to look to produce capital thankfulness and give long time
development open doors by putting resources into portfolio constituted of value and value
related securities of main 100 organizations by business promotion and of organizations
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which are accessible in the subordinates section every once in a while and the optional
destination returns by putting resources into obligation and currency market securities.
Reliance Tax saver (ELSS) Fund:
(An Open-Ended Diversified Equity Scheme.) The essential destination of the plan is to
produce long haul capital gratefulness from a portfolio that is put transcendentally in
value and value related instrument.
Reliance Equity Opportunities Fund:
(An Open-Ended Diversified Equity Scheme). The essential financing destination of the
plan is to try to create capital gratefulness & giving long haul development open doors by
putting resources into a portfolio constituted of value securities & value related securities
and the optional goal is to produce predictable returns by putting resources into
obligation and currency market securities.
Reliance Vision Fund:
(An Open-Ended Diversified Equity Scheme). The essential financing target of the plan
is to attain long haul development of capital by venture in value and value related
securities through an examination based financing methodology.
Reliance Growth Fund:
(An Open-Ended Diversified Equity Scheme). The essential financing target of the plan
is to attain long haul development of capital by venture in value and value related
securities through an examination based financing methodology.
Reliance Index Fund:
(An Open-Ended Diversified Equity Scheme). The Investment objective under the Nifty
arrangement is to imitate the creation of the Nifty, with a perspective to try to create
returns, which could pretty nearly be the same as that of Nifty. The Investment target
under the Sensex arrangement is to copy the structure of the Sensex.
Reliance NRI Equity Fund:
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The essential financing destination of the plan is to produce ideal returns by putting
resources into value or value linked instruments basically taken out from the Companies
in the S&p BSE 200 Index.
Debt Schemes
Reliance Monthly Income Plan:
The essential financing target of the plan is to create normal pay with a specific end goal
to make customary profit installments to unit holders and the optional destination is
development of capital.
Reliance Medium Term Fund:
The essential financing target of the plan is to create normal pay with a specific end goal
to make customary profit installments to unit holders and the optional destination is
development of capital.
Reliance Short Term Fund:
The essential financing target of the plan is to create stable returns for speculators with a
transient financing skyline by putting resources into altered salary securities of a fleeting
development
Reliance Income Fund:
The essential financing goal of the plan is to create ideal returns reliable with moderate
level of danger. This salary may be supplemented by capital valuation for the portfolio.
Likewise, ventures might prevalently be profited Market Instruments.
Reliance Gilt Securities Fund:
The essential financing goal of the plan is to create ideal credit danger free returns by
putting resources into an arrangement of securities issued and ensured by the Central
Government and State Government
Reliance Liquid Fund:
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The essential financing goal of the plan is to create ideal returns predictable with
moderate levels of danger and high liquidity. Likewise, speculations might dominantly be
profited Market Instruments.
Reliance Fixed Maturity Fund- Series 1:
(A Closed Ended Income Scheme) The Primary financing destination of the plan is to
look to accomplish standard returns/ development of capital by putting resources into an
arrangement of altered wage securities typically developing in accordance with the time
profile of the arrangement with the goal of constraining investment rate unpredictability.
Reliance Fixed Maturity Fund-Series ll:
(A Closed Ended Income Scheme) The Primary financing destination of the plan is to
look to accomplish development of capital by putting resources into an arrangement of
settled wage securities ordinarily developing in accordance with the time profile of the
separate arrangements.
Sector Specific Schemes
Reliance Banking Fund:
The essential financing destination of the plan is to try to create consistent returns by
energetically putting resources into value and value related securities of organizations in
the Banking Sector and organizations occupied with unified exercises identified with
Banking Sector.
Reliance Diversified Power Sector Fund:
The essential financing destination of the plan is to produce long haul capital increase by
putting dominantly in value and value related securities of organizations in the force
division.
Reliance Media & Entertainment Fund:
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The essential financing target of the plan is to create nonstop returns by putting resources
into value and value related or settled wage securities of Media & Entertainment and
other related organizations.
Reliance Pharma Fund:
The essential financing target of the plan is to look to create predictable returns by
putting resources into value and value related or altered salary securities of Pharma and
other related organizations.





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REVIEW OF LITERATURE









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In this area the writing study has been carried out by investigating the different
exploration studies done by the different analysts in this respect i.e the speculators
recognition and mindfulness in regards to the common store venture every once in a
while. In India, one of the soonest endeavors was made by NCAER in 1964 when an
overview of families was attempted to comprehend the state of mind towards and
inspiration for sparing of people. An alternate NCAER examine in 1996 broke down the
structure of the capital market and displayed the perspectives and mentality of individual
shareholders.
SEBI NCAER Survey (2000):
It was done to gauge the amount of families and the number of inhabitants in
individual financial specialists, their monetary and demographic profile, portfolio size,
and speculation inclination for value and different investment funds instruments. This
is an exceptional and thorough investigation of Indian Investors, for; information was
gathered from 3,00,0000 geologically scattered rustic and urban families. A portion of
the applicable discoveries of the study are:
Family unit's inclination for instruments matches their danger observation; Bank
Deposit has a bid over all wage class; 43% of the non-financial specialist families
comparable to around 60 million family units (assessed) evidently need mindfulness
about stock exchanges; and, contrasted and low salary aggregates ,the higher pay
gatherings have higher offer of speculations in Mutual Funds (Mfs) implying that Mfs
have still not gotten to be genuinely the financing vehicle for little speculators. All
things considered, the study predicts that in the following two years (i.e., 2007 thus)
the speculation of families in Mfs is liable to build. (Note : Behavior is a response to a
circumstance. So as circumstance progressions, conduct gets adjusted. Consequently,
discoveries and expectations of conduct studies ought to be seen appropriately).
(Sharpe, 1966)
So as to assess the balanced danger execution of common stores presented the
measure known as prize to-variability proportion (presently Sharpe degree). This
proportion helps him to assess the reappearance of 34 open-end common subsidizes in
the period 1945-1963. It demonstrated that to a significant degree the capital business
was exceedingly proficient because of which larger part of the example performed
beneath as contrasted with the Dow Jones Index. Sharpe (1966) found that from 1954-
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1963 just 11 trusts beat the Dow- Jones Industrial Average (DJIA) while 23 stores
were beated by the DJIA. Study inferred that the common trusts were substandard
speculations amid the period. Results have additionally assessed that great store
directors prioritize on assessing hazard and giving expansion.

(Arditti, 1971):
It scrutinized the prize to-variability model proposed by Sharpe (1966) on the way that
the initial two minutes of the likelihood dissemination of returns is used. Creator
recommended that, a measure of the bearing and size of the dispersion's tail ought to
be incorporated in the investigation. It further asserted that financial specialists
favored positive skewness as higher return is suggested by the positive skewness.
Consequently stakes with generally low compensate to-variability degrees would not
be second rate financing
Ippolito (1989):
They guided an examination to break down the suitability in capital markets when
data is absurd to acquire. Example of 143 conferred stores was demonstrated in the
1965 entry of Wiesenberger. The (Arditti, 1971) (ippoloto, 1989) (Ajay, 2007)
(Malkiel, 1995) (Sharpe, 1966) (P, 2007)dissection was carried out the time of 1965-
1984. Ippolito (1989) utilized CAPM model and made a relationship of results in the
ordinary trust industry, net of charges and costs, were basically indistinct to returns
accessible in record stores. It was exhibited that portfolio turnover and association
expenses were not essential to hold execution. The master affected that granted trusts
to higher turnover charges and costs, get rates of return sufficiently high to modify the
higher charges. Look at in addition regulated that the customary recoveries were able
in the exchanging and data social occasion works out.
(Malkiel, 1995)
They directed exploration to break down the execution of value shared stores for the
period 1971 to 1991. This study included an information set that incorporated the
comes back from all shared subsidizes in presence in every year of the period. In the
wake of analyzing the returns from all trusts he found that imparted saves neglected to
meet desires the business division. Survivorship inclination was thought to be the vital
bit of the examination. Neither considers also assessed the trust returns in the
association of the capital holding esteeming skeleton and none, of these found any
confirmation of excess return nor viewed any threat return relationship communicated
by the capital stake evaluating model. Study assumed that it was better for the
21

monetary authorities to purchase a minimal effort record store than to pick an element
trust boss.
Arugaslan and Ajay (2008):
They inspected the danger balanced execution of US-based universal value stores
from 1994-2003. The dissection was ruined five-year period 1999-2003 and ten-year
period 1994-2003. For this a specimen of 50 vast US based global value trusts was
taken and another system old estimation Modigliani and Modigliani (M squared) was
connected. The execution was contrasted and both residential and worldwide
benchmarks files. The result demonstrated that the danger has great affect on the
engaging quality of stores. Higher return trusts may detach appeal because of higher
danger while lower return stores may be alluring to speculators because of the lower
hazard.
Vanniarajan T. and Gurunathan T.(2007):
They broke down a few components in their work on "Venture in Mutual stores: A
Customer Centric Analysis". It is underscored that MF associations are focusing on
adjusted things on account of hot contention. The study concentrates on critical
components prompting financing in common stores which are money related, center
item, subsidize quality, limited time measures, client desires and administration
quality









22











RESEARCH METHODOLOGY










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OBJECTIVES
The primary point of undertaking this study is to fulfill the accompanying target:
Understanding the investor perception towards Mutual Fund.
Analyzing the investment pattern of an investor.
Thoroughly understanding and assessment of Mutual Fund as an investment
alternative.

RESEARCH METHODOLOGY

Examination could be characterized as a systemized exertion to addition new
information. An exploration is done by distinctive philosophies which have their own
particular upsides and downsides. Research philosophy is an approach to tackle look into
in study and taking care of exploration issues alongside rationale behind them are
characterized through examination strategy.
We are in setting of our exploration concentrates on and clarify why it is, no doubt
utilized a specific strategy or system and why it is continuously utilized a specific
technique or method and why the others are not utilized. So research result is equipped
for being assessed either via specialist himself or by others.

Applied Context of the Research:
As the goal of the exploration concentrate on the impression of speculator's mindfulness
and desires towards Mutual store it will help the organization to expand its piece of the
pie, which is the essential target of shared trust businesses at this point. The Research
endeavors to study the conduct of financial specialists and mindfulness among the
populace of Meerut (U.p) in regards to the Mutual Fund Industry.

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Methods
Primary Data:
The example size of 98 respondents is taken and study is directed in Meerut area. Today
the shared trusts are getting to be rising speculator division. So we attempt to focus on the
individuals who have mutual fund plans furthermore who are intrigued however limited
by business sector hazard. An overview is led crosswise over different gatherings,
occupation, with distinctive salary levels. In the overview we attempt to discover the
different elements that impact the individual while putting money in the Mutual funds.
Secondary Data:
A lot of optional information has been gathered from secondary sources like :
As a piece of my venture I gathered some data from site, www.amfi.com,
www.reliancemutual.com, www.sebi.com and other related pages.
The leaflet, handouts and pamphlets supplied by dependence helped me to
assemble some data.
And likewise my task aide supplied every one of those vital information,
fundamental for the undertaking.
Research Design:
An examination outline gives the schema to be utilized as an aide within gathering and
examining information.
Descriptive Research:
Client study is one of the best illustrations of engaging exploration. This is one-shot
examination study at a given purpose of time, and comprises of a specimen of the number
of inhabitants in investment. Its focal points are that it gives a decent general picture of
the position at a given time. It can blanket numerous variable of investment, and is not
influenced by the development of components in the specimen, in light of the fact that
different components could be substituted for them
25

Statistical tool use for analyzing an investors behavior regarding
Mutual Fund is:
EXCEL SHEET














26






DATA ANALYSIS











27


Data Analysis

Knowing the awareness and perception of the customers is very important in any
industry. This provides insight into the customer behavior and his expectation from the
industry players. This survey attempts to know the mutual fund investor better. It
examines some interesting choices of the retail investor including the reason behind
investing in mutual funds and the risk tolerance levels of the investors. The investors
knowledge about the mutual fund and what according to him is the best mutual fund is
also analyzed. This Meerut city survey was conducted to know the retail investor
awareness and behavior about mutual funds. It is hoped that this survey in Meerut city
would go a long way in benefiting for Reliance Mutual Fund.
The total sample for the study was 98 across Meerut city.


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Which Age group you belong to?
Table no 1 (a) showing age profile of respondents
S.No Age (in years) No. of Respondents Percentage
1 20-25 18 18%
2 25-40 40 41%
3 40-55 20 21%
4 55-60 15 15%
5 60-above 5 5%
Total 98 100






Figure 2.1
Interpretation:
In this survey I found out that maximum no of respondents belongs to the age group of
25-40 years.
18%
41%
21%
15%
5%
20-25
25-40
40-55
55-60
60-above
29


Which Income group you belong to?
Table No.1(c) shows the income wise profile of the respondents:
S.No Income (per anum) No. of Respondents Percentage
1 Less than 1.0 Lakh 8 8%
2 1.0-2.0 Lakh 20 20%
3 2.0-3.0 Lakh 24 25%
4 3.0-5.0 Lakh 36 37%
5 More than 5.0 Lakh 5 5%
6 No Response 5 5%
Total 98 100%

Figure 2.2
Interpretation:
In this survey I found that people with annual income between 3-5 lakh have most
number of respondents followed by income group of 2-3 lakh and 1-2 lakh. Mostly the
people with 1 lakh to 5 lakh of income group are the most no of people who incur the
benefits of mutual fund.

8%
20%
25%
37%
5%
5% less than 1.0 lakh
1.0-2.0 lakh
2.0-3.0 lakh
3.0-5.0 lakh
more than 5.0 lakh
No Response
30

What is your Qualification?
Table No.1 (e) shows qualification profile of the respondents:
S.No Qualification No. of Respondents Percentage
1 Undergraduates 6 6%
2 Graduates 38 39%
3 Postgraduates 40 41%
4 Others 1 1%
5 No Response 13 13%
98 100%



Figure 2.3
Interpretation:
The surveyed group is a well educated group with highest no. of respondent is post
graduate followed by 39% of graduates. This shows that the people with higher
qualification are aware about the mutual fund industry.

6%
39%
41%
1%
13%
Undergraduates
Graduates
Post Graduates
Others
No Response
31

How much do you understand or your knowledge about Mutual Fund?
This Table shows the knowledge of respondents about Mutual Fund
S.No. Knowledge of
Mutual Fund
No. of
Respondents
Percentage
1 Very good 4 4%
2 Good 8 8%
3 Average 32 33%
4 Poor 50 51%
5 No Response 4 4%
98 100%



Figure 2.4
Interpretation:
In this survey it was found that 51% of the respondents dont know about mutual funds or
they just have slight idea about mutual funds while only 4% of respondents rated their
knowledge as very good. Here we can see that the knowledge about mutual funds is very
low among people.
4%
8%
33%
51%
4%
Very Good
Good
Average
Poor
No Response
32

Do you know that Mutual Fund is related to Share market?
This table shows knowledge of the respondents about Share market.
S.No. Mutual Fund related
to Share Market
No. of
Respondents
Percentage
1 Yes 32 33%
2 No 62 63%
3 Cant say 4 4%
98 100%


Figure 2.5
Interpretation:
It was found that 63% of respondents dont know that the mutual fund is related to share
market. They also unaware about the fact that mutual funds returns are affected by the
fluctuations in share market.


33%
63%
4%
Yes
No
Can't say
33

Which end-scheme do you prefer?
This section of survey was aimed to know the preference of investors regarding end-
schemes.

S.No. End-scheme No. of Respondents Percentage
1 Open End 68 69%
2 Closed End 30 31%
Total 98 100%


Figure 2.6
Interpretation:
In this survey I found out that 69% of investors prefer open ended scheme at as they
want to have an access of their money whenever they want this kind of liberty they
cannot have in close ended scheme which 31% of respondents prefer.


69%
31%
Open End
Closed END
34

What is your major objective or decision of investing in mutual fund?
This section of survey was aimed at understanding the main reason behind the investment
decision made by an individual. I tried to catch the factor that contributes in making of an
investment portfolio off an individual.
S.No Investment
objective
No. of Respondent Percentage
1 Capital Gain 20 21%
2 Generate Regular
Return
5 5%
3 Secure future 58 59%
4 Tax Benefits 15 15%
Total 98 100%


Figure 2.7
Interpretation:
It was found that securing the future is the major concerned of most of the respondent
which is 59% followed by capital gain at 21%, after that they consider tax benefits (14%)
and the least objective of the respondent is regular returns at 6%.
21%
5%
59%
15%
Capital Gain
Generate Regular Return
Secure Future
Tax Benefits
35

What are the factors which affect the decision making while investing in Mutual
Fund?
S.No. Factors Affecting
Decision
No of Respondents Percentage
1 Economic Scenario 18 18%
2 Company Image 44 45%
3 Fund Performance 20 21%
4 Fund manager
Image
2 2%
5 Tax Incentive 14 14%
Total 98 100%


Figure 2.8
Interpretation:
There are certain overall factors that tend to affect the investment decision of the
investor. I tried to know the respondent opinions on these macro factors that further
tend to affect their investment decision. The survey showed that company image act
as the determining factor for their investment with 44%. The second most important
factor was Fund performance at 21% followed by economic scenario at 19%.
18%
45%
21%
2% 14%
Economic Scenario
Company Image
Fund Performance
Fund Manager Image
Tax Incentive
36

What is your Investment Horizon?
In this survey I tried to know that how long an investor can hold their money in the
market before needing access to it.
S.No Investment Horizon No. of Respondents Percentage
1 Up to 2 years 15 15%
2 2-3 years 24 25%
3 3-5 years 35 36%
4 5-10 years 18 18%
5 Above 10 years 6 6%
Total 98 100%


Figure 2.9
Interpretation:
In this survey respondent are not willing to keep their money invested for a very long
period of time as 36% of respondents can keep their money invested for 3-5 years and
25% of respondents can keep their money invested for 2-3 years followed by 18% of
respondents for 5-10 years. Only 6% of people are willing to keep their money
invested for more than 10 years.
15%
25%
36%
18%
6%
Up to 2 years
2-3 years
3-5 years
5-10 years
above 10 years
37

What is your Information source regarding Mutual Funds?
S.No. Information
Sources
No. of Respondents Percentage
1 Print Media 28 29%
2 Electronic Media 20 20%
3 Friends/Relatives 6 6%
4 Financial Advisors 9 9%
5 Personal Analysis 14 14%
6 Agent 21 22%
98 100


Figure 2.10
Interpretation:
In this survey I found out that the major role of information source about mutual fund
is Print media that affect the initiative of the people toward mutual fund at 29%
followed by Agents who lay a huge impact on the investors decision at 22%
followed by Electronic media at 20%. These three play a major role in influencing the
decision of an investor.


29%
20%
6%
9%
14%
22% Print Media
Electronic Media
Friends/Rea=latives
Financial Advisors
Personal analysis
Agent
38

What are your Investment Avenues?
S.No. Investment
Avenues
No. of Respondents Percentage
1 Post Schemes 10 10%
2 Insurance 4 4%
3 Bank 66 68%
4 Share Market 3 3%
5 Mutual Fund 7 7%
6 Government
Securities
8 8%
98 100%


Figure 2.11
Interpretation:
In this survey, I asked the respondents to select the investment avenues they would
prefer to keep their investment portfolio. 68% of investor preferred to have bank
savings as one of the investment avenue as they believe that bank deposits are the
safest option. While 12% of the investor said that they would certainly like to have
post office schemes as one of their preferred investment avenues.
10%
4%
68%
3%
7%
8%
Post Schemes
Insurance
Bank
Share Market
Mutual Fund
Government Securities
39

How much return do you expect from Mutual Funds?
S.No. Return Expectation
From Mutual Funds
No. of Respondents Percentage
1 5-10% 5 5%
2 11-15% 24 25%
3 16-20% 30 31%
4 More than 20 15 15%
5 Cant Say 4 4%
Total 98 100%



Figure 2.12
Interpretation:
In this survey I found out that most of the respondent expects a return of 16-20%
from the invested amount at 31% followed by the return range of 11-15% at 25% and
15% of respondents expects a return of more than 20%.


5%
25%
31%
15%
5-10%
11-15%
16-20%
More than 20
Can't Say
40

Which Investment schemes do you prefer while buying a Mutual fund?
S.No. Investment Pattern
Preferred in Mutual
Fund
No. of Respondent Percentage
1 Growth Schemes 40 41%
2 Balanced Schemes 10 10%
3 Sector Specific
Schemes
6 6%
4 Liquid Schemes 8 8%
5 ELSS 18 19%
6 Cant Say 16 16%
Total 98 100%


Figure 2.13
Interpretation:
In this survey respondents prefer to invest in growth scheme which is an equity
scheme and a very volatile scheme.41% of respondents goes for growth scheme
followed by 19% of people who opt for tax saver scheme and 16% of respondents are
confused in selecting a scheme and only 8% of respondent prefer liquid scheme as
they consider liquid scheme as a low return investment scheme
41%
10% 6%
8%
19%
16%
Growth Schemes
Balanced Schemes
Sector Specific Schemes
Liquid Schemes
ELSS(Tax Saver Scheme)
Can't Say
41













FINDINGS








42

FINDINGS

The finding is concluded after the analysis of the responses shown and received in the
questionnaire and through interview of employees.
Most of the people do not have even an average knowledge about mutual funds.
People who usually invest in a mutual fund mostly belong to the age group of 25-
40 years.
Most of the people have an impression that these funds are not safe due to high
volatility.
People are less interested in knowing about the product as they have a pre
assumption that mutual fund is always a high risk and low return investment.
Most of the people consider open ended scheme as a good option because they
need a freedom to access their investment at any time they want.
People consider banks as the safest option to invest rather than mutual fund.
The major objective of the people to invest in the mutual fund is to secure future
and capital gain out of the investment.
The major source of information about mutual fund is print media and electronic
media.
People usually like to invest in growth schemes and tax saver ELSS (Tax saver
schemes)
Most of the people expect 16-20% of the returns from a mutual fund.
Most of the people are impatient and does not like to keep their money invested
for more than 5 years.




43







RECOMMENDATIONS









44

There should be more awareness made about the Mutual Fund companies and
their services by giving more advertisement.
Mutual Fund companies should go for joint venture with the big corporate houses.
Mutual fund companies should organize some events to build their brand image in
the minds of people.
As per customers point of view, they feel that mutual fund companies should
open more branches for the smooth access.
Give proper training to the agents or sales person so that they can take up the
queries of the investors effectively
A seminar or programs related to mutual fund should be conducted where the
information about the product is highlighted including the risk factor associated
with the different classes of assets.












45








CONCLUSION








46

CONCLUSI ON

As analyzed, people are rarely aware about mutual funds as people are not properly
informed about the policies but when they made aware they shows a little interest in
getting more information about the funds. By this we can say that mutual fund is in its
initial growth stage today and soon will rise at a great level.
Mutual funds have been compared to ULIP (Unit Linked Insurance Policies), people
are more aware about insurance policies than mutual fund which takes more customer
to the insurance sector but slowly as people are getting more aware of the funds they
will surely start investing in mutual funds. Many investors preferred to invest in
mutual fund in order to have high return at low level of risk but that is not always
possible as mutual funds deals with share market as well in which market is highly
volatile but if the investors have patience then they can enjoy a good amount of return
from their investment.
As mutual funds companies are showing a huge growth and recently provided a good
amount of return to the investors and with the recent tax benefit in the union budget
people will invest more.








47








BIBLIOGRAPHY







48

Bibliography
Ajay, A. a. (2007). Evaluating large US-based equity mutual funds using risk-adjusted
performance measures.
Arditti. (1971). Another look at mutual fund performance .
ippoloto. (1989). Efficiency with costly information.
Malkiel. (1995). Returns from investing in equity Mutual fund .
P, V. T. (2007). Investing in Mf's: A customer centric Analysis".
Sharpe. (1966). Mutual Fund Performance.

Websites

www.amfindia.com
www.mutualfundsindia.com
www.sebi.gov.in
www.reliancemutual.com
www.rbi.org.in
http://www.tatamutualfund.com/knowledge/mutual-fundas/overview
http://wealth18.com/basics-of-mutual-fund/







49






QUESIONNAIRE








50

Quesionnaire

Please go through the following questionnaire and identify the appropriate responses for each of them.
There is no such thing as a correct answer, so feel free to respond. Please forward it as many people as you
can.
Disclaimer: Your response via this questionnaire will be used strictly for academic purposes. There will not
be any commercial solicitation or usage of the response in any kind / form whatsoever.

What is Your good name?


Gender?
o Male
o Female

How much do you understand about mutual fund or what is your knowledge level
about mutual fund
o Very Good
o Good
o Average
o Poor
o No Response

What is your annual income?
o Less than 1 lakh
o 100000-200000
o 200000-300000
o 300000-500000
o More than 5 lakh
o No response

51


What is your Qualification?
o Undergraduates
o Graduates
o Post Graduates
o Others
o No response

How much do you understand or your knowledge about Mutual Fund?
o Very Good
o Good
o Average
o Poor
o No Response

Do you know Mutual Fund is related to Share market?
o Yes
o No
o Can't Say

Which end-scheme do you prefer?
o Open-End
o Closed End

What is your major objective of investing in Mutual Fund?
o Capital Gain
o Generate Regular Return
o Secure Future
o Tax Benefits
o Option 5



52


What are the factors which affect the decision making while investing in Mutual
Fund?
o Economic Scenario
o Company Image
o Fund Performance
o Fund manager Image
o Tax Incentive

What is your Investment Horizon?
o Up to 2 years
o 2-3 years
o 3-5 years
o 5-10 years
o Above 10 years

What is your Information source regarding Mutual Funds?
o Print Media
o Electronic Media
o Friends/Relatives
o Financial Advisors
o Personal Analysis
o Agent

What are your Investment Avenues?
o Post Schemes
o Insurance
o Bank
o Share Market
o Mutual Fund
o Government Securities



53


How much Return do you expect from Mutual Funds?
o 5-10%
o 11-15%
o 16-20%
o More than 20
o Can't say

Which Investment schemes do you preferred while buying a Mutual Fund?
o Growth Schemes
o Balanced Schemes
o Sector Specific Schemes
o Liquid Schemes
o ELSS (Tax saver Scheme)
o Can't Say

Anything you would like to add about Mutual Fund
Your Welcome

Submit