Académique Documents
Professionnel Documents
Culture Documents
ON
POWER OF SYSTEMATIC INVESTMENT
PLAN
TO SPECIAL
REFERENCE
(RELIANCE MUTUAL FUND)
PREFACE
The course of MBA require one to undergo a research project with
the end of the 3rd Semester, so as to get a practical knowledge and
understanding the practical aspects of all the theories read. It helps us
to make the best use of our skills and intelligence so as to make a
better research report. It is really the most important thing during the
course of the study.
KAVISHA SRIVASTAVA
MBA 3rd Semester
SMS, Varanasi
ACKNOWLEDGEMENT
I am highly indebted and thankful to each and every person who devoted
valuable time out of their busy schedule to fill-up the questionnaire in the
time. I am also thankful to our faculty and classmates for their suggestion
and support to undertake this work and also during the course of study.
KAVISHA SRIVASTAVA
MBA 3rd Semester
SMS, Varanasi
DECLARATION
I KAVISHA SRIVASTAVA a student of MBA of School of
Management Science, Varanasi hereby declares that all the information
collected through the questionnaire is correct in accordance with the sample
size. The entire statistical diagram from the information collected through
the questionnaire.
I also declare that no part of this project has been duplicated from another
source, the information included in the project has been researched and
project written by me and the information collected or presented in the
report is correct to the best of my knowledge and belief.
Thanks
KAVISHA SRIVASTAVA
MBA 3rd Semester
SMS, Varanasi
EXECUTIVE SUMMARY
Indias economy is highly developing. The development is taken place due to the growth
in the financial system. This financial system provides the background to various
investors regarding varied options to invest. Thus, development of the economy depends
on how these investors invest for the well being in long run.
As financial markets become more sophisticated and complex, investors need a financial
intermediary who provides the required knowledge and professional expertise on
successful investing. Mutual Funds represent perhaps the most appropriate investment
opportunity for investors. No wonder the concept of Mutual Fund was initially developed
in the U.S. market, but the entry of the concept in the Indian Financial Market was in the
year 1964 with the formulation of the UTI, at the initiative of the RBI and Govt. of India.
For most people, money is a delicate matter and when it comes to investing they are
wary. Simply because there are many investment options out there, each out promising
the other. An important question facing many investors is whether to invest in Banks,
National Savings, Post office, Non-banking finance companies, Fixed deposits, Shares
etc. or to invest distinctively in Mutual Funds.
I have observed that approximately 40% of the people are unaware of Trading but most
of them are interested to know about trading. They are also interested to work with
RELIANCE MUTUAL FUND if sufficient information is provided to them about
Trading and RELIANCE MUTUAL FUND.
People from service class prefers safety of income plus the regular income as well as tax
benefits while on the other hand Professional and Businessman focus on high return with
some risk.
For growth and development of the Stock Market Industry, the misconception regarding
Share Market should be removed & the awareness for the same should be made.
TITLE
S. NO.
1.
2.
INTRODUCTION
Company Profile
Overview of Industry
PROCEDURE TO INVEST IN MUTUAL FUND
3.
4.
5.
6.
RESEARCH METHODOLOGY
7.
SWOT ANALYSIS
8.
RECOMMENDATION
9.
CONCLUSION
10.
BIBLIOGRAPHY
11.
ANNEXURE
OVERVIEW OF INDUSTRY
History of the Indian Mutual Fund Industry
The mutual fund industry in India started in 1963 with the formation of
Unit Trust of India, at the initiative of the Government of India and
Reserve Bank of India. The history of mutual funds in India can be broadly
divided into four distinct phases:
First Phase 1964-87
An Act of Parliament established Unit Trust of India (UTI) on 1963. It was
set up by the Reserve Bank of India and functioned under the Regulatory
and administrative control of the Reserve Bank of India. In 1978 UTI was
de-linked from the RBI and the Industrial Development Bank of India
(IDBI) took over the regulatory and administrative control in place of RBI.
The first scheme launched by UTI was Unit Scheme in 1964. At the end
of 1988 UTI had Rs.6, 700 crores of assets under management.
Second Phase 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by
public sector banks and Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC). SBI Mutual Fund was the
first non- UTI Mutual Fund established in June 1987 followed by Canbank
Mutual Fund (Dec 87), Punjab National
Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its
mutual fund in June 1989 while GIC had set up its mutual fund in December
1990.
At the end of 1993, the mutual fund industry had assets under management
of Rs.47,004 crores.
Third Phase 1993-2015 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund
families. Also, 1993 was the year in which the first Mutual Fund
Regulations came into being, under which all mutual funds, except UTI were
to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund
registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry
now functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign
mutual funds setting up funds in India and also the industry has witnessed
several mergers and acquisitions. As at the end of January 2015, there were
33 mutual funds with total assets
of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44, 541 crores of
assets under management was way ahead of other mutual funds.
Fourth Phase since February 2015
In February 2015, following the repeal of the Unit Trust of India Act 1963
UTI was bifurcated into two separate entities. One is the Specified
Undertaking of the Unit Trust of India with assets under management of
Rs.29,835 crores as at the end of January 2015, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes.
School of Management Science, Varanasi
10
OVERVEIW OF ORGANISATION
COMPANY DETAILS
11
Reliance's insurance operations constitute the nation's 27thlargest property and casualty operation. The parent company also includes a
development subsidiary in commercial real estate. Reliance's international
consulting group contains several subsidiaries in energy, environment, and
natural resources consulting. A financial arm invests in other businesses,
primarily television stations.
12
division handled all real estate operations of the parent company and other
subsidiaries.
Reliance
Industries
intermediates,
intermediates,
crackers,
polymer
chemicals,
includes
production
and
13
14
(FMPs) and collection ofRs. 7000 crore (US$ 1.75 billion) through newfund
offers (NFOs) created this surge. In AUrankings, Reliance continues to be in
thenumber one spot.
of
investment
in
the
world.
In India, a mutual fund company called the Reliance Mutual Fund is making
waves. Reliance is considered India's best when it comes to mutual funds. Its
investors number to 4.6 billion people. Reliance Capital Asset Management
Limited ranks in the top 3 of India's banking companies and financial sector
in
terms
of
net
value.
The Anil Dhirubhai Ambani Group owns Reliance; they are the fastest
growing investment company in India so far. To meet the erratic demand of
the financial market, Reliance Mutual Fund designed a distinct portfolio that
is sure to please potential investors. Reliance Capital Asset Management
Limited
manages
RMF.
15
is
also
one
of
Reliance
Mutual
Fund's
objectives.
Schemes
i.
Specific
Debt/Income
Scheme,
and
Scheme.
Sector
Specific
Scheme.
16
17
18
HEALTH:-
19
20
Energy Excellence:-
21
&
Natural
Gas
for
the
excellent
performance
in
22
Quality:-
For the first time ever, globally, a petrochemical company bagged the
Deming Prize for Management Quality. The Quality Control
Award for Operations Business Unit 2014 was awarded to the Hazira
Manufacturing Division for Outstanding Performance by Practicing
Total Quality Management.
QUALTECH PRIZE 2014, which recognizes extraordinary results
in improvement and innovation, was won by Hazira Manufacturing
Division for its Small Group Activity Project.
Vadodara Manufacturing Divisions Polypropylene-IV (PP-IV) plant
was conferred the Spheripol Process Operability Award-2006 for
the highest operability rate with an on stream factor 98.97% by M/s.
BASELL, Italy.
Allahabad Manufacturing Division won the Excellent Category Award
at National Convention of Quality Circle (NCQC) - 07.
Six-Sigma:-
23
for Best design for Six Sigma Project in International Six Sigma
Competition organized by IQPC (International Quality and
Productivity center).
Barabanki Manufacturing Division won the 3rd prize in All India Six
Sigma case study contest 2008 for the Case study on Reduction of
waste of Plant 2 from 16% to 8%.
Hoshiarpur Manufacturing Division won the 2nd prize in Six Sigma
competition at National Level organized by ISI and Quality Council
of India (in manufacturing category), while Dhenkanal and Barabanki
Manufacturing Divisions won the 3rd prize.
Vadodara Manufacturing Divisions Six Sigma project won the 1st prize
as the Best Six Sigma project at National level by CII.
24
Information Technology:-
Forum
for
exemplary
Information
Technology
25
The products on offer from Reliance MutualFund fall into four main
categories: equity, debt,sector specific and ETF (Exchange Traded
Fund).Each taps into a specific audience profile fulfilling their varying
needs.Under the equity category, Reliance has118 SUPERBRANDS sixteen
schemes with Reliance Growth Fundand Reliance Vision Fund as its
flagship schemes.Reliance Equity Opportunities Fund is a schemewhich
operates in the multi-cap/multi-sectorsegment; Reliance Equity Fund is a
long-shortfund, Reliance Quant Plus Fund is a quant fund.Reliance offers
investments
in
banking,
power,media,
entertainment
and
t wo-pronged
26
informationpacked
presentations
which
help
dispel
(RCAM),
subsidiary
of
management
in
February2008
and
helped
Reliance was the first fund house to launch sector funds with flexibility to
invest in a range of 0% to 100% in either equity or debt instruments Mutual
fund
investments
linked
to
anATM/debit
card
are
Reliance
27
Achievements
28
HDFC Bank Demat services offers you a secure and convenient way to keep
track of your securities and investments, over a period of time, without the
hassle of handling physical documents that get mutilated or lost in transit.
29
30
Tax
Saving
Bonds.
31
Reliance Money
Tax Saving funds Reliance Money:
Tax-saving funds (due to their equity-oriented nature) are capable
of clocking far superior returns their assured return counterparts like
National Savings Certificate (NSC) and Public Provident Fund (PPF).
However investors must appreciate that the risk profile of tax-saving funds
tends to be proportionately higher.
Reliance Tax Saver (ELSS) Fund (RTSF) is the latest entrant in the taxsaving funds segment. Flagship diversified equity funds (Reliance Growth
Fund and Reliance Equity Fund) from Reliance Mutual Fund have emerged
as top performers in their segment across time horizons. However investors
should note that these funds are managed aggressively; also they have
displayed an opportunistic streak by moving fluidly across market segments
(large caps, mid caps) to clock superior growth. RTSF is likely to be a
similar (high risk - high return) investment proposition within the tax-saving
funds segment.
32
Every fund has an objective and pattern of investing. There are various kinds
of mutual funds. There are equity funds and debt funds. Further equity funds
can be divided into equity diversified mutual fund where funds are invested
in shares of different companies , sectoral funds where investment is made in
shares of some particular sector like FMCG, IT, Auto, Oil & Gas, Banking
etc. Every fund has a NAV (net asset value) which is the value per unit. It is
calculated as the total asset is divided by the number of outstanding units. As
the value of asset changes, nav also changes.
The best way to invest in stock market is mutual fund through Systematic
Investment Plan. But to get the benefit of an SIP, a long term horizon is
must.
33
KOTAK SECURITIES:
Kotak securities ltd is India leading stock broking house with a market share
of close to 9% as on 31 march 2014. kotak securities ltd has been the largest
in IPO distribution.
The company has a full fledged research division involved in macro
economic studies sect oral research and company specific equity research
combined with a strong and well networked sales force which helps deliver
current and up to date market information and news
Kotak securities have 813 outlets servicing more than 315000 customers and
a coverage of 277 cities. Kotak securities com the online division of kotak
securities limited offers internet broking services and also online IPO and
mutual fund investment
34
A Kotak security limited manages assets around 2300 crores of assets under
management. The portfolio management service provides top class service
catering to the high end of the market. Portfolio management from kotak
securities comes as an answer to those who would like to grow from
exponentially on the crest of the stock market, with the backing of an expert.
Sharekhan, the retail broking arm of SSKI group and one of the largest stock
broking house in the country has won the prestigious awaaz consumer vote
awards 2005 for the most preferred stock broking brand in India, in the
investment advisors category
Sharekhan won the award by vote of customer around the country, as part of
India largest consumer study cover 7000 respondents 21 product and service
across 21 major cities. the study initiated by awaaz India first dedicated
consumer channel and member of the world wide CNBC network and ac
School of Management Science, Varanasi
35
Nielsen org marg was aimed at understanding the brand preference of the
consumer and to decipher what are the most important loyalty criteria for the
consumer in each vertical
The reason behind the preferences for brands were unveiled by examines
the following:
36
The India Infoline group, comprising the holding company, India Infoline
Limited and its wholly-owned subsidiaries, straddle the entire financial
services space with offerings ranging from Equity research, Equities and
derivatives trading, Commodities trading, Portfolio Management Services,
Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small
savings instruments to loan products and Investment banking. India Infoline
also owns and manages the websites http://www.indiainfoline.com/and
http://www.5paisa.com/
The company has a network of 758 business locations (branches and subbrokers) spread across 346 cities and towns. It has more than 800,000
customers
India Infoline Limited is listed on both the leading stock exchanges in India,
viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange
(NSE) and is also a member of both the exchanges. It is engaged in the
businesses of Equities broking, Wealth Advisory Services and Portfolio
Management Services. It offers broking services in the Cash and Derivatives
segments of the NSE as well as the Cash segment of the BSE. It is registered
with NSDL as well as CDSL as a depository participant, providing a onestop solution for clients trading in the equities market. It has recently
launched its Investment banking and Institutional Broking business.
37
38
Australia based financial services major, Macquarie Bank. Religare has also
partnered with Vistaar Entertainment to launch Indias first Film Fund.
The vision is to build Religare as a globally trusted brand in the financial
services domain and present it as the Investment Gateway of India. All
employees of the group guided by an experienced and professional
management team are committed to providing financial care, backed by the
core values of diligence and transparency.
39
ABOUT INDIABULLS
40
Business of the company has grown in leaps and bounds since its inception.
Revenue of the company grew at a CAGR of 159% from FY03 to FY07.
During the same period, profits of the company grew at a CAGR of 184%.
Indiabulls became the first company to bring FDI in Indian Real Estate
through a JV with Farallon Capital Management LLC, a respected US based
investment firm. Indiabulls has demonstrated deep understanding and
commitment to Indian Real Estate market by winning competitive bids for
landmark properties in Mumbai and Delhi.
Indiabulls Financial Services Ltd
41
The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar.
He ventured into stock trading with an intention to raise capital for his own
independent enterprise. However, he recognised the opportunity offered by
the stock market to serve individual investors. Thus Indias first retailfocused stock-broking house was established in 1987. Under his leadership,
Angel became the first broking house to embrace new technology for faster,
more effective and affordable services to retail investors.
Mr. Thakkar is valued for his understanding of the economy and the stockmarket. The print and electronic media often seek his views on the market
trend as well as investment strategies.
42
43
There are a number of bodies that form a part of the mutual fund,
they are as follows:
Sponsors
The sponsor is the company which sets up the mutual fund. It
means anybody corporate acting alone or in combination with
another body corporate established a mutual fund after initiating
and completing the formalities.
Trustees
The management of the mutual fund is subject to the control of
the board of trustees of the fund. They guide the opera tions of
the fund and carry the crucial responsibility to see that AMC
always act in the best interest of the investors.
44
Custodian
A custodian is a person carrying on the activities of the
safekeeping of the securities or participating in any clearin g
system on behalf of the clients to effect deliveries of the
securities.
45
46
47
48
49
50
how
many
units
you
get.
that is NAV.
NAV
The Net Asset Value is the price of a unit of a fund. Let's say that the NAV
on the day you invest is Rs 50.
So you will get 200 units (Rs 10000 / 50).
2. Periodic investments
This is referred to as a SIP.That means that, every month, you commit to
investing, say, Rs 1,000 in your fund. At the end of a year, you would have
invested Rs 12,000 in your fund. Let's say the NAV on the day you invest in
the first month is Rs 20; you will get 50 units. The next month, the NAV is
Rs 25. You will get 40 units. The following month, the NAV is Rs 18. You
will get 55.56 units.
51
So, after three months, you would have 145.56 units. On an average, you
would have paid around Rs 21 per unit. This is because, when the NAV is
high, you get fewer units per Rs 1,000. When the NAV falls, you get more
units per Rs 1,000.
Here are some Facts on the SIP
1. Is there a load?
An exit load is a fee you pay the fund when you sell the units, the funds
never charged an entry load on SIPs. An exit load is charged if you stop the
SIP
mid-way.
Which is 1%. Let's say you have a one-year SIP but discontinue after five
months, and then an exit load will be levied. These conditions will wary
between mutual funds.
2. What is the minimum investment?
If you do a one-time investment, the minimum amount that you have to
invest is Rs 5,000.If you invest via an SIP, the amount drops. Each fund has
their own minimum amount. Some may keep it at least Rs 500 per month;
others may keep it as Rs 1,000.
3. How often does one have to invest?
It would depend on the fund. Some insist the SIP must be done every month.
Others give you the option of investing once in three months or once in six
months.They also give fixed dates. So you will get the option of various
dates and you will have to choose one. Let's say you are presented with these
dates: 1, 10, 20 or 30. You can pick any one date. If you pick the 10 th of the
School of Management Science, Varanasi
52
month, then on that day, the amount you have decided to invest in the fund
has to be credited to your mutual fund.
4. How must the payment be made?
You can opt for the Electronic Clearance Service from your bank; this
means the mutual fund will, as per your instructions, debit a certain amount
from your account every month.Let's say you have a SIP of Rs 1,000 every
month and you have chosen to invest in it on the 10 th of every month. Under
this option, you can instruct your mutual fund to directly debit your bank
account of Rs 1,000 on the due date.
If you don't have the required money in your account, then for that month,
no units will be allocated to you. But, if this continues periodically, the
mutual fund will discontinue the SIP. You need to check with each mutual
fund what their parameters are.
Alternately, you can give cheques to your mutual fund. In this case, they
may ask for five Post Dated Cheques upfront with your first investment.
Since these cheques are dated ahead of time, they cannot be processed till
the date indicated.
5. Must I state for how long I want the SIP?
Yes. You will have to state whether you want it for a year or two years, etc.
If, during the course of this period, you realize you cannot continue with the
SIP, all you have to do is inform the fund 15 days prior to the payout. The
SIP will be discontinued. You can continue to keep your money with the
fund and withdraw it when you want.
School of Management Science, Varanasi
53
54
the units you sell in February 2006. For tax purposes, the units that you sell
first will be considered as the first units bought.
8. How will an SIP help?
When you buy the units of a fund, you may do so when the NAV is really
high. For instance, let's say you bought the units of a fund when the bull run
was at its peak, leading to a high NAV.
If the market dips after that, the value of your investments falls and you may
have to wait for a long while to make a return on your investment. But, if
you invest via a SIP, you do not commit the error of buying units when the
market is at its peak. Since you are buying small amounts continuously, your
investment will average out over a period of time.
You will end up buying some units at a high cost and some units a lower
price. Over time, your chances of making a profit are much higher when
compared to an one-time investment.
55
Its An Experts Field: The Fund Manager who are the expert in
management of the fund and have experience of 8-10 years manages Funds.
56
Its All Transparent And Well Regulated: The Mutual Fund Industry is
well regulated both by SEBI and AMFI.
Let's take an example of Mr. X, wherein he started investing Rs. 4,000 every
month in the Maximiser Fund of the Lifetime Super Plan.
57
Period
7th Apr
'03
7th May
'03
9th
Jun
'03
7th
Jul
'03
7th Aug
'03
8th
Set
'03
7th
Oct
'03
7th Nov
'03
8th Dec
'03
7th
Jan
'04
S9th Feb
'04
Invested
NAV of Maximiser
Units
Premium (Rs.)
allocated
4,000
11.34
352.73
4,000
11.01
363.31
4,000
12.05
331.95
4,000
13.13
304.65
4,000
13.67
292.61
4,000
15.81
253.00
4,000
16.78
238.38
4,000
18.28
218.82
4,000
18.71
213.79
4,000
21.48
186.22
4,000
21.49
186.13
58
8th Mar
'04
Total
4,000
21.98
181.98
48,000
59
at
the
beginning
of
the
period.
Thus Rupee Cost Averaging smoothens out the market ups and downs
and reduces the risk of investing in volatile markets. However, rupee cost
averaging does not guarantee a profit, as this depends on the performance of
the market.
60
Asset
NAV
3yr
Size (Rs./Unit
(Rs. cr.)
1,083.58
45.37
686.89
17.38
2.9
0.8
4.8
29.65 -0.3
6.4
384.83
79.54
847.67
16.59 -0.5
1,376.30
Asset
NAV
0.8
1.0
5.1
3yr
Size (Rs./Unit
(Rs. cr.)
174.14
24.48
0.4
2.9
61
Balanced
1,159.48
131.15 -0.5
3.4
3.0
2,465.31
216.61
0.2
4.2
16.57 -0.2
4.7
5.5
20.39
4.8
97.58
1,155.62
Asset
NAV
0.1
3yr
Size (Rs./Unit
(Rs. cr.)
62
161.19
56.47 -0.4
195.13
0.5
3.4
539.15
21.09
0.2
2.9
2.3
155.77
50.54
0.4
4.1
234.41
37.14 -0.3
4.5
Asset
Plan
Size (Rs./Unit
4,113.52
Monthly Income
3.7
NAV
3yr
(Rs. cr.)
4,771.44
20.69
--
0.9
2.4
6,397.61
21.72
0.2
1.3
3.1
120.05
17.49 -0.1
0.9
1.9
4.0
78.45
15.58 -0.1
1.2
3.7
414.36
18.60 -0.2
0.9
1.2
63
Money Market
Asset
NAV
3yr
Size (Rs./Unit
(Rs. cr.)
1,159.52 1,311.80
0.1
0.5
1.5
2.6
60.17 1,234.95
0.1
0.4
1.2
2.3
4.7 14.0
--
6,023.68
20.23
0.1
0.4
1.2
2.3
2,639.66
17.06
0.1
0.4
1.2
2.2
3,149.10
19.47
0.1
0.4
1.2
2.2
Asset
NAV
3yr
Size (Rs./Unit
(Rs. cr.)
64
58.92
16.08
0.5
2.7
4.9
40.80
3.2
4.2
215.44
19.95
0.1
0.3
2.6
3.0
322.72
16.16
0.1
0.2
1.5
2.8
3,891.48
18.71
0.1
0.4
1.7
3.3
Asset
NAV
0.1
3yr
Size (Rs./Unit
(Rs. cr.)
86.42
27.46
0.1
0.3
5.7
79.17
18.52
0.2
0.3
1.4
1.9
4,991.56 1,878.17
0.1
0.4
1.7
3.4
0.1
0.3
3.1
3.8
68.75
32.71
65
Birla SL Dynamic
Bond -RP (G)
8,611.67
15.73
Debt - Floating
Asset
Rate
Size (Rs./Unit
(Rs. cr.)
NAV
0.2
0.4
1.5
3.4
3yr
233.48
15.98
0.1
0.4
1.3
2.9
1,490.80
16.05
0.1
0.5
1.6
2.6
5,102.00
15.32
0.1
0.4
1.3
2.6
412.85
17.04
0.1
0.4
1.2
2.3
14.80
0.1
0.4
1.3
2.5
10,000.0
0
66
67
68
RESEARCH METHODOLOGY
69
TYPES OF DATA
There are two types of data:
1. Primary Data
2. Secondary Data
Primary Data is that data which is collected by the researcher as per his/her
needs.
Secondary Data is that data which is collected through references as
websites, journals, books, newspapers, magazines etc.
PRUDENT.
RESEARCH DESIGN
This research is Explorative and conclusive in nature because it aims to
collect the data about the behavior of investors in which way they invest in
Mutual Funds. The research approach used is survey based and the analysis
is largely based on the primary data.
70
RESEARCH INSTRUMENT
Structured questionnaire: open- ended and close- ended.
CONTACT METHOD
Personal interview
RESEARCH APPROACH
Any methodology includes the overall research design, the sampling
procedure and data collection method. The methodology adopted by me for
purpose of finding the investment behavior of investors was DIRECT
SURVEY METHOD.
RESEARCH TYPE
Conclusive and explorative approach has been adopted in the study. As
here the topic of research problem has been explored so that hidden facts can
come into the light and then the final conclusion is given.
POPULATION
Kanpur City
SAMPLE SIZE
71
Servicemen
working
in
government
organization
&
private
organization.
Professionals who includes doctors, lawyers, teachers etc.
FINDINGS
The analysis is done based on the structured questions and we got following
points:
55% investor invests in SIP mode.
84% got more profit in SIP.
The maximum duration of investment in SIP is 3 years i.e. 34%.
The maximum allocation criteria in SIP are Rs. 1000-3000 i.e. 45%.
72
ANALYSIS
Ans:
Financial Instrument Investment in %
Mutual Funds
76
Bond
15
Online Trading
Derivatives
Mutual fund
Bond
Online trading
Derivatives
Interpretation: From above pie chart, I have analysed that 75% of investors
invest in Mutual Funds. Rest of the investors invest in Bond (i.e. 16%),
Online Trading (i.e. 7%) and Derivatives (i.e. 2%).
73
Ans:
66
Close-ended funds
22
Interval Funds
12
Interpretation: The above pie chart depicts that 66% investors invest in
Open-ended funds, 22% in close-ended funds and 12% in interval funds.
74
Ans:
Type of schemes on the Basis of Investment Objective Investment in %
Growth Schemes
55
Income Schemes
13
Balanced Schemes
32
Interpretation: From above pie chart, I conclude that there are 55%
investors who invest in Growth Schemes, 13% investors invest in Income
Schemes and 32% investors invest in Balanced Schemes.
75
Ans:
Types of Funds Investment in %
Index Fund
41
15
Sectorial Fund
44
Interpretation: The above chart depicts that the maximum no. of investors
i.e.41% investors invest in Sectorial Funds, 44% in Index funds and 15% in
Tax saver funds.
76
Ans:
Repeatition of Investment Investers In %
Yes
68
No
32
Interpretation: The above pie chart depicts that 68% of investors invest
again after the initial investments.
77
Ans:
% Of earnings invested in Investors in
MF
%
Up to 10%
43
Up to 25%
32
Up to 50%
15
Above 50%
10
78
Ans:
Type of
Investment
Investment
in %
SIP
55
Lumpsum
10
Both
35
Interpretation: From above chart I have analysed that 55% investors have
invested in Systematic Investment Plan, 10% in Lumpsum and 35% in both
the category.
79
Investment in %
Investment in %
1000-3000
45
3000-5000
36
10
50
45
40
35
30
25
20
15
10
5
0
1000 - 3000
3000-5000
Above 5000
Alocation criteria in Rs
Interpretation: From above chart I have analysed that the allocation criteria
of investment is 45% in the range Rs.1000 to Rs.3000.
80
Investment in %
25
34
25
Interpretation: The above bar chart depicts that most of the investors (i.e.
33.33%) invest in less than 3 years.
81
84
Lumpsum
16
Interpretation: The above Pie chart depicts that 83.33% of investors have
got more profit in Systematic Investment Plan.
82
Ans:
Responses of
FUND
Investors
Yes
65%
No
35%
Interpretation: The above chart depicts that 65% investors are satisfied
with the redemption facilities provided by RELIANCE MUTUAL FUND.
School of Management Science, Varanasi
83
[ ]
GOOD
[ ]
AVERAGE
[ ]
UNSATISFIED
[ ]
84
Agents training
Others
85
Though the Reliance mutual fund have a very good ascribed plan with
exclusive band of opportunities but as nothing is free from the hurdles
therefore there are few shortcomings which I felt makes Reliance mutual
fund fail to achieve its target.
.
There is high potential market for Mutual Fund Advisors in kanpur
city, but this market needs to be explored as investors are still hesitated
to invest their money in Mutual Funds.
Company should also provide knowledge about the growth rate and the
expected growth rate of Mutual Fund industry in India.
86
Most of people aware of life insurance, NSC and PPF for tax saving
so, company should market various tax saving schemes of Mutual
Funds and their benefits.
The interface among the investors and the Mutual Fund Companies is
the agents, so the agents should have proper knowledge about Mutual
Funds as well as market so that they can help investors in their
investment decisions. The quality of agents performance and investors
trust on them can be improved only if they are permanent in nature.
87
88
SWOT ANALYSIS
Strength :
A well-known name in
Financial Companies.
Weakness :
No access to rural market.
No direct link between
field.
Dedicated Employees.
Tie up with many financial
institutions.
Ever growing distribution
network.
Good Infrastructure.
Experienced Fund
Managers.
Easy access to the branch.
Opportunity :
Threat :
Untapped market.
89
CONCLUSION
FINDINGS :
Our findings during the training with Reliance mutual fund Stock Broking
Limited, Kanpur
Companys Plan was good on the following ground:
and
CDSL,
provide
broker
and
Remissers.
Cheque updating in 15 mins. And the credit limit up to 10 times.
90
91
BIBLIOGRAPHY:Websites:
www.indiacorporateadvisor.com
www.amfiindia.com
www.nsdl.co.in
www.wikipedia.com
www.moneycontrol.com
92
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QUESTIONNAIRE
NAME: ______________________________________
__________________
AGE:
0-18_____
18-36_____
36-54_____
54-72______
72
ABOVE______
GENDER:
Male
[ ]
Female
[ ]
OCCUPATION: Businessman
[ ]
Govt. Employee [ ]
Student
[ ]
Pvt. Employee
[ ]
Professional
[ ]
Other (specify):________
Mutual Funds
Bonds
Derivatives
Property
NSC
Bank Deposit
PPF
[ ]
94
[ ]
Income Schemes
[ ]
Balanced Schemes
[ ]
[ ]
Index funds
[ ]
Sectorial funds
[ ]
Q5. Did you repeat your investment after your initial investments?
Yes
No
Up to 25%
Up to 50%
Above 50%
Lumpsum
Both
1000-3000
3000-5000
>5000
95
<= 2 yr.
<= 3 yr.
<= 4 yr.
<= 5 yr.
Lumpsum
[ ]
Yes
[ ]
[ ]
GOOD
[ ]
AVERAGE
[ ]
UNSATISFIED
[ ]
Agents training
Others
96