A

SUMMER INTERNSHIP PROJECT

ON
“ A Study of Investors’ Buying Behavior Towards Mutual
Funds in Surat city’’
Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
In
Gujarat Technological University
UNDER THE GUIDANCE OF

Faculty Guide: Company Guide:

Mr. Riddhish Joshi Mr. Dipak Naik
Assistant Professor Branch Manger
(NJ India invest Pvt. Ltd.)

Submitted by
Ms. Jyoti Dabhi
[Batch No. 2015-17, Enrollment No.157500592013]

MBA SEMESTER III

S.R. LUTHRA INSTITUTE OF MANAGEMENT

MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmadabad
July, 2016
Company Certificate
 Student’s Declaration

I, Ms. Dabhi Jyoti , hereby declare that the report for Summer Internship
Project entitled “i A Study of Investors’ Buying Behavior Towards Mutual
Funds in Surat city’’ as a result of my own work and my indebtedness to
other work publications, references, if any, have been duly acknowledged.

Place: Surat

Date: _____________

__________________
(Jyoti Dabhi)
 Institute’s Certificate

Certified that this Summer Internship Project Report Titled “A study of

investors buying behavior towards Mutual fund in Surat city” is the bonafide
work of Ms. Jyoti Dabhi (Enrollment No. 157500592013), who has carried out
the research under my supervision. I also certify further, that to the best of my
knowledge the work reported herein does not form part of any other project
report or dissertation on the basis of which a degree or award was conferred
on an earlier occasion on this or any other candidate.

Place: Surat
Date: ________________

___________________
(Riddhish Joshi)
Asst. Professor

___________________
(J.M. Kapadia)
Director
 PREFACE

It is great opportunity for management students of GTU to get exposure to the

mutual fund industry as a part of in summer internship project (SIP) academic
curriculums of MBA & get wide exposure to the real world during industry
project.

This project report has been prepared in partial fulfillment of the requirement
for the subject of summer internship project report (SEM .III) & in the
academic year 2016-2017 For preparing the SIP Report. The blend of
learning & knowledge acquired during our report studies the role of mutual
fund advisor in NJ India Invest is presented in this project report.

It is great pleasure that researcher has undertaking writing of this report. It

realized during training that insurance industry is different than what we learn
in theorized. Thus, practical exposure to this industry is valuable for us as a
management student.

The prime objective of this practical training is to student get some knowledge
& experience of management affairs. In that “A Study of investors Buying
Behavior towards Mutual Fund in Surat City.” &all aspect while complete
requirement for the MBA course.
 ACKNOWLEDGEMENT

I (Jyoti Dabhi), take this opportunity to thank my guide Mr. Riddhish Joshi who
assigned me this below mentioned project topic and help me at every step
during the preparation of the work of study “A STUDY ON INVESTORS
BUYING BEHAVIOR TOWARDS MUTUAL FUND IN SURAT CITY”. I am
here by, grateful to her. Writing this report appeared to be a great experience
to me. It added a lot to my knowledge while I was working on this project. If I
say that this project is one of my memorable experience in student life.

The project report could never been accomplished without the guidance and
cooperation from my respected faculties and my training guide Dipak Naik
(Branch Manager ) at NJ India invest, Surat ( Majura gate). I Sincerely thank
all faculties for their suggestions and help to prepare this project and also
thanks to our unit manager ishtiyaq siddiqui, and all staff member of NJ India
invest.

I am highly obliged who help me during the training period and cooperated in
solving queries. I am very grateful to my college and who have directly or
indirectly help me to bring this effort to completion.

Finally, foremost to thanks to all my respondent, who helped me to complete

my fieldwork, without them this project was not possible.
 EXECUTIVE SUMMARY

This research has been undertaken basically for “”.A Study on Investor’s
buying behavior towards mutual Fund in Surat City ”.

The First sections contain the introduction of industry. In this section all the
type if information like introduction of Mutual Fund. History of Mutual Fund,
Organization of Mutual Fund, Advantages of Mutual Fund, Disadvantages of
Mutual Fund given.

The second section contains the Mutual Fund Industry at global, national and
state level. In this report we have also study external factors like political,
economical, social and technological which affect industry and the brief
explanation about current trends and major players of Mutual Fund industry.
Further the report consists of the history and SWOT analysis of “N.J India
Investment Pvt Ltd .

The third section contains the literature review. This includes various review
given by different author and literature related with mutual funds, mutual funds
schemes and performance of mutual funds in Indian market.

The fourth is Research Methodology which include objective of the study,

Methodology of the project which include Research problem, Research
design, sampling, tools for analysis and limitation of study.

The report includes the Primary data analysis with the help of questionnaire
survey and SPSS. And also includes finding along with conclusion.
 TABLE OF CONTENTS

Sr. No. Particulars Page No.

1. Introduction 1

2. Industry Profile 25

a. Global 25

b. National 27
29
c. State
31
d. PESTEL
33
e. Current trends 38
f. Major Players 46
g. Major Offerings
3. Company Profile 48

a. Company Profile 48

b. Organogram 55
56
c. Divisions/ Departments
59
d. SWOT
60
e. Market Position
4. Review of Literature 61

5. Research Methodology 73

a. Problem Statement 73

b. Research Objective 73
73
c. Research Design
73
i. Type of Design
73
ii. Sampling 73
iii. Data Collection 73
iv. Tools for Analysis 74

v. Limitations of the Study 74

6. Data Analysis & Findings 75

 7. Conclusions and Recommendations 119

8. Bibliography 120

9. Annexure 123

LIST OF TABLES

Table Page
Sr. No. Particulars
No. No.

1 Name of AMC’s 1.1 16

2 Age 6.1 75

3 Occupation 6.2 76

4 Educational Qualification 6.3 77

5 Annual Family Income(in Rs) 6.4 78

6 Percentage of total income invest per Annum 6.5 79

7 Invest money 6.6 80

Information sources do you consider before

8 6.7 82
purchasing/ investing in mutual fund
9 purpose of investing in mutual fund 6.8 84

10 time period do you invest in mutual funds 6.21 100

mode of investment you prefer while

11 6.22 101
investing in mutual fund
Important factors considered by selecting in
12 6.9 85
mutual fund
 option to get returns you generally opt for
14 6.23 102
while buying / investing in mutual fund
15 Through whom do you invest in mutual fund 6.24 103

influence your decision while investing in

16 6.25 104
mutual funds?
frequently do you track fund value of your
17 6.26 105
mutual fund after investment
option you generally prefer while withdrawing
18 6.27 107
your money in Mutual fund
you prefer to invest in Mutual Fund over other
19 6.28 109
investment avenues in future
Percentage (approximately) of total
income invest per annum and Annual
20 6.29 113
family income (in Rs.)

Type of fund preferred to invest and

21 Age 6.30 114

Influence decision while investing in

mutual funds and Educational
22 Qualification 6.31 115
 LIST OF FIGURES

Figure
Sr. No. Particulars Page No.
No.

1 Simple Model of consumer buying behavior 1.1 1

2 Factors affecting consumer buying behavior 1.2 6

3 Mutual Fund operation Flow chart 1.3 14

4 Organization of mutual fund 1.4 15

5 Long term Mutual Fund Asset as a 2.1 26

percentage of GDP
6 Total assest 2.3 33

7 Institution v/s individual current trends 2.4 34

8 Investors Categories Across Scheme Types 2.5 35

9 Scheme Wise Composition of Assets 2.5 35

10 Asset Location from B15 2.6 36

11 Distributor v/s Direct 2.6 37

12 Individual Investors Scheme 2.7 38

13 Organogram 3.1 55

14 Divisions of different departments 3.2 56

15 Age 6.1 76

16 Occupation 6.2 75
15 Educational Qualification: 6.3 77

16 Annual family income (in Rs.)? 6.4 78

17 percentage (approximately) of your total 6.5 79

income do you invest per annum
18 invest your money 6.6 81

19 Information sources do you consider before 6.7 83

purchasing/ investing in mutual fund
20 purpose of investing in mutual fund? 6.8 84

21 Important factors considered by selecting 6.9 85

in mutual fund
22 type of fund do you prefer to invest 6.10 99

23 time period do you invest in mutual funds 6.21 100

24 mode of investment you prefer while 6.22 101

investing in mutual fund
25 option to get returns you generally opt for 6.23 102
while buying / investing in mutual fund
26 Through whom do you invest in mutual 6.24 103
fund?

27 influence your decision while investing in 6.25 104

mutual funds
28 frequently do you track fund value of your 6.26 106
mutual fund after investment
29 Which option you generally prefer while 6.27 107
 withdrawing your money in Mutual fund

30 you prefer to invest in Mutual Fund over 6.28 109

other investment avenues in future
1. INTRODUCTION
Consumer Buying Behavior Defined
Consumer buying behavior is the sum total of a consumer's attitudes,
preferences, intentions, and decisions regarding the consumer's behavior in
the marketplace when purchasing a product or service. The study of
consumer behavior draws upon social science disciplines of anthropology,
psychology, sociology, and economics.

Standard Behavioral Model

[figure No .1.1]

15
 The standard model of consumer behavior consists of a methodical and
structured process. Let's take a brief look at each steps.

I. Need recognition / Problem recognition :

The need recognition is the first and most important step in the buying
process. If there is no need, there is no purchase. This recognition happens
when there is a lag between the consumer’s actual situation and the ideal and
desired one. However, not all the needs end up as a buying behavior. It
requires that the lag between the two situations is quite important. But the
“way” (product price, ease of acquisition, etc.) to obtain this ideal situation has
to be perceived as “acceptable” by the consumer based on the level of
importance he attributes to the need.

For example, you have a pool and you would like someone to take care of
regularly cleaning it instead of you (ideal situation) because it annoys you to
do it yourself (actual situation). But you don’t judge the “way” to reach this
ideal situation (pay $250 / month for a specialized company) as “acceptable”
because its price to obtain it seems too high. Especially compared to the
relatively low level of importance you attach to it. So you won’t have a
purchase behavior in this situation.

The recognition of a need by a consumer can be caused in different ways.

Different classifications are used:

 Internal stimuli (physiological need felt by the individual as hunger or thirst)

which opposes the external stimuli such as exposure to an advertisement,
the sight of a pretty dress in a shop window or the mouth-watering smell of a
french “pain au chocolate” when passing by a bakery.

 Classification by type of needs

o Functional need: the need is related to a feature or specific functions of the
product or happens to be the answer to a functional problem. Like a computer
with a more powerful video card to be able to play the latest video games or a

16
 washing machine that responds to the need to have clean clothes while
avoiding having to do it by hand or go to the Laundromat.
o Social need: the need comes from a desire for integration and belongingness
in the social environment or for social recognition. Like buying a new
fashionable bag to look good at school or choose a luxury car to “show” that
you are successful in life.
o Need for change: the need has its origin in a desire from the consumer to
change. This may result in the purchase of a new coat or new furniture to
change the decoration of your apartment.

II. Information search

Once the need is identified, it’s time for the consumer to seek information
about possible solutions to the problem. He will search more or less
information depending on the complexity of the choices to be made but also
his level of involvement. (Buying pasta requires little information and involves
fewer consumers than buying a car.)

Then the consumer will seek to make his opinion to guide his choice and his
decision-making process with:

 Internal information: this information is already present in the consumer’s

memory. It comes from previous experiences he had with a product or brand
and the opinion he may have of the brand.

Internal information is sufficient for the purchasing of everyday products that

the consumer knows – including Fast-Moving Consumer Goods (FMCG) or
Consumer Packaged Goods (CPG). But when it comes to a major purchase
with a level of uncertainty or stronger involvement and the consumer does not
have enough information, he must turns to another source:

 External information: This is information on a product or brand received from

and obtained by friends or family, by reviews from other consumers or from
the press. Not to mention, of course, official business sources such as an
advertising or a seller’s speech.

17
During his decision-making process and his Consumer Buying Decision
Process, the consumer will pay more attention to his internal information and
the information from friends, family or other consumers. It will be judged more
“objective” than these from an advertising, a seller’s speech or a commercial
brochure of the product.

III. Alternative evaluation

Once the information collected, the consumer will be able to evaluate the
different alternatives that offer to him, evaluate the most suitable to his needs
and choose the one he think it’s best for him

In order to do so, he will evaluate their attributes on two aspects The

objective characteristics (such as the features and functionality of the product)
but also subjective (perception and perceived value of the brand by the
consumer or its reputation).The consumer will then use the information
previously collected and his perception or image of a brand to establish a set
of evaluation criteria, desirable or wanted features, classify the different
products available and evaluate which alternative has the most chance to
satisfy him. The higher the level of involvement of the consumer and the
importance of the purchase are stronger, the higher the number of solutions
the consumer will consider will be important. On the opposite, the number of
considered solutions will be much smaller for an everyday product or a regular
purchase.

IV. Purchase decision

Now that the consumer has evaluated the different solutions and products
available for respond to his need, he will be able to choose the product or
brand that seems most appropriate to his needs. Then proceed to the actual
purchase itself. His decision will depend on the information and the selection
made in the previous step based on the perceived value, product’s features
and capabilities that are important to him. But his Consumer Buying Decision
Process and his decision process may also depend or be affected by such
things as the quality of his shopping experience or of the store (or online

18
shopping website), the availability of a promotion, a return policy or
good terms and conditions for the sale.

For example, a consumer committed to the idea of buying a stereo of a well-

known brand could change his decision if he has an unpleasant experience
with sellers in the store. While a promotion in a supermarket for a yogurt
brand could tip the scale for this brand in the consumer’s mind who was
hesitating between three brands of his “evoked set”.

V. Post-purchase behavior

Once the product is purchased and used, the consumer will evaluate the
adequacy with his original needs (those who caused the buying behavior).
And whether he has made the right choice in buying this product or not. He
will feel either a sense of satisfaction for the product (and the choice). Or, on
the contrary, a disappointment if the product has fallen far short of
expectations. An opinion that will influence his future decisions and buying
behavior. If the product has brought satisfaction to the consumer, he will
then minimize stages of information search and alternative evaluation for his
next purchases in order to buy the same brand. Which will produce customer
loyalty.

The post-purchase evaluation may have important consequences for a brand.

A satisfied customer is very likely to become a loyal and regular customer.
Especially for everyday purchases with low level of involvement – such as
Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods
(CPG). A loyalty which is a major source of revenue for the brand when you
combine all purchases made by customer throughout his entire life (called
“lifetime customer value”). The “Holy Grail” that all brands in the industry are
trying to achieve.

19
 (Factors Affecting consumer buying behavior)

( Figure No : 1.2)

There are 4 main types of factors influencing consumer behavior: cultural

factors, social factors, personal factors and psychological factor

I. Cultural factors

Cultural factors are coming from the different components related to culture or
cultural environment from which the consumer belongs.

 Culture and societal environment

Culture is crucial when it comes to understanding the needs and behaviors of

an individual. Throughout his existence, an individual will be influenced by his
family, his friends, his cultural environment or society that will “teach” him
values, preferences as well as common behaviors to their own culture .For a
brand, it is important to understand and take into account the cultural factors
inherent to each market or to each situation in order to adapt its product and

20
its marketing strategy. As these will play a role in the perception, habits,
behavior or expectations of consumers.

For example, in the West, it is common to invite colleagues or friends at home

for a drink or dinner. In Japan, on the contrary, invite someone home does not
usually fit into the local customs. It is preferable to do that this kind of outing
with friends or colleagues in restaurant.

 Sub-cultures

A society is composed of several sub-cultures in which people can identify.

Subcultures are groups of people who share the same values based on a
common experience or a similar lifestyle in general. Subcultures are the
nationalities, religions, ethnic groups, age groups, gender of the individual,
etc..The subcultures are often considered by the brands for the segmentation
of a market in order to adapt a product or a communication strategy to the
values or the specific needs of this segment.

For example in recent years, the segment of “ethnic” cosmetics has greatly
expanded. These are products more suited to non-Caucasian populations and
to types of skin pigmentation for African, Arab or Indian populations for
example..

 Social classes

Social classes are defined as groups more or less homogenous and ranked
against each other according to a form of social hierarchy. Even if it’s very
large groups, we usually find similar values, lifestyles, interests and behaviors
in individuals belonging to the same social class. We often assume three
general categories among social classes : lower class, middle class and
upper class. People from different social classes tend to have different desires
and consumption patterns. Disparities resulting from the difference in their
purchasing power, but not only. According to some researchers, behavior and
buying habits would also be a way of identification and belonging to its social
class.

21
Cultural trends

Cultural trends or “Bandwagon effect” are defined as trends widely followed

by people and which are amplified by their mere popularity and by conformity
or compliance with social pressure. The more people follow a trend, the more
others will want to follow it.

II. Social factors

Social factors are among the factors influencing consumer behavior

significantly. They fall into three categories: reference groups, family and
social roles and status.

Reference groups and membership groups

The membership groups of an individual are social groups to which he

belongs and which will influence him. The membership groups are usually
related to its social origin, age, place of residence, work, hobbies, leisure, etc..

Family

The family is maybe the most influencing factor for an individual. It forms an
environment of socialization in which an individual will evolve, shape his
personality, acquire values. But also develop attitudes and opinions on
various subjects such as politics, society, social relations or himself and his
desires.

Social roles and status

The position of an individual within his family, his work, his country club, his
group social role is a set of attitudes and activities that an individual is
supposed to have and do according to his profession and his position at work,
his position in the family, his gender, etc.. – and expectations of the people
around him.

22
For example, a consumer may buy a Ferrari or a Porsche for the quality of the
car but also for the external signs of social success that this kind of cars
represents. Moreover, it is likely that a CEO driving a small car like a Ford
Fiesta or a Volkswagen Golf would be taken less seriously by its customers
and business partners than if he is driving a German luxury car.

III. Personal factors

Decisions and buying behavior are obviously also influenced by the

characteristics of each consumer.

Age and way of life

A consumer does not buy the same products or services at 20 or 70 years.

His lifestyle, values, environment, activities, hobbies and consumer habits
evolve throughout his life.

For example, during his life, a consumer could change his diet from unhealthy
products (fast food, ready meals, etc..) to a healthier diet, during mid-life with
family before needing to follow a little later a low cholesterol diet to avoid
health problems.

Purchasing power and revenue

The purchasing power of an individual will have, of course, a decisive

influence on his behavior and purchasing decisions based on his income and
his capital.

Lifestyle

The lifestyle of an individual includes all of its activities, interests, values and
opinions. The lifestyle of a consumer will influence on his behavior and
purchasing decisions. For example, a consumer with a healthy and balanced
lifestyle will prefer to eat organic products and go to specific grocery stores,
will do some jogging regularly (and therefore will buy shoes, clothes and
specific products), etc..

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Personality and self-concept

Personality is the set of traits and specific characteristics of each individual. It

is the product of the interaction of psychological and physiological
characteristics of the individual and results in constant behaviors.

For example, since its launch, Apple cultivates an image of innovation,

creativity, boldness and singularity which is able to attract consumers who
identify to these values and who feel valued – in their self-concept – by buying
a product from Apple.

IV. Psychological factors

Among the factors; factors influencing consumer behavior, psychological

factors can be divided into 4 categories: motivation, perception, learning as
well as beliefs and attitudes.

Motivation

Motivation is what will drive consumers to develop a purchasing behavior. It is

the expression of a need is which became pressing enough to lead the
consumer to want to satisfy it. It is usually working at a subconscious level
and is often difficult to measure.

Perception

Perception is the process through which an individual selects, organizes and

interprets the information he receives in order to do something that makes
sense. The perception of a situation at a given time may decide if and how the
person will act.

Learning

Learning is through action. When we act, we learn. It implies a change in the

behavior resulting from the experience. The learning changes the behavior of
an individual as he acquires information and experience.

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For example, if you are sick after drinking milk, you had a negative
experience, you associate the milk with this state of discomfort and you
“learn” that you should not drink milk. Therefore, you don’t buy milk anymore.

Beliefs and attitudes

A belief is a conviction that an individual has on something. Through the

experience he acquires, his learning and his external influences (family,
friends, etc..), he will develop beliefs that will influence his buying behavior.

Mutual Funds: An overview

Introduction
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is invested by the
fund manager in different types of securities depending upon the objective of
the scheme. These could range from shares to debentures to money market
instruments. The income earned through these investments and the capital
appreciations realized by the scheme are shared by its unit holders in
proportion to the number of units owned by them (pro rata). Thus a Mutual
Fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed portfolio at a
relatively low cost. Anybody with an investible surplus of as little as a few
thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has
a defined investment objective and strategy.
A mutual fund is the ideal investment vehicle for today’s complex and modern
financial scenario. Markets for equity shares, bonds and other fixed income
instruments, real estate, derivatives and other assets have become mature
and information driven. Price changes in these assets are driven by global
events occurring in faraway places. A typical individual is unlikely to have the
knowledge, skills, inclination and time to keep track of events, understand
their implications and act speedily. An individual also finds it difficult to keep
track of ownership of his assets, investments, brokerage dues and bank
transactions etc.

25
A mutual fund is the answer to all these situations. It appoints professionally
qualified and experienced staff that manages each of these functions on a full
time basis. The large pool of money collected in the fund allows it to hire such
staff at a very low cost to each investor. In effect, the mutual fund vehicle
exploits economies of scale in all three areas - research, investments and
transaction processing. While the concept of individuals coming together to
invest money collectively is not new, the mutual fund in its present form is a
20th century phenomenon. In fact, mutual funds gained popularity only after
the Second World War. Globally, there are thousands of firms offering tens of
thousands of mutual funds with different investment objectives. Today, mutual
funds collectively manage almost as much as or more money as compared to
banks.
A draft offer document is to be prepared at the time of launching the fund.
Typically, it pre specifies the investment objectives of the fund, the risk
associated, the costs involved in the process and the broad rules for entry into
and exit from the fund and other areas of operation. In India, as in most
countries, these sponsors need approval from a regulator, SEBI (Securities
exchange Board of India) in our case. SEBI looks at track records of the
sponsor and its financial strength in granting approval to the fund for
commencing operations.
A sponsor then hires an asset management company to invest the funds
according to the investment objective. It also hires another entity to be the
custodian of the assets of the fund and perhaps a third one to handle registry
work for the unit holders (subscribers) of the fund.
In the Indian context, the sponsors promote the Asset Management Company
also, in which it holds a majority stake. In many cases a sponsor can hold a
100% stake in the Asset Management Company (AMC). E.g. Birla Global
Finance is the sponsor of the Birla Sun Life Asset Management Company
Ltd., which has floated different mutual funds schemes and also acts as an
asset manager for the funds collected under the schemes.
The Definition
A mutual fund is nothing more than a collection of stocks and/or bonds. You
can think of a mutual fund as a company that brings together a group of

26
people and invests their money in stocks, bonds, and other securities. Each
investor owns shares, which represent a portion of the holdings of the fund.
You can make money from a mutual fund in three ways:
1) Income is earned from dividends on stocks and interest on bonds. A fund
pays out nearly all income it receives over the year to fund owners in the form
of a distribution.
2) If the fund sells securities that have increased in price, the fund has a
capital gain. Most funds also pass on these gains to investors in a distribution.
3) If fund holdings increase in price but are not sold by the fund manager, the
fund's shares increase in price. You can then sell your mutual fund shares for
a profit. Funds will also usually give you a choice either to receive a check for
distributions or to reinvest the earnings and get more shares

CONCEPT
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities.
The income earned through 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 Mutual Fund is the most suitable investment for the
common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. The flow
chart below describes broadly the working of a mutual fund:
( figure No : 1.3 ) Mutual Fund Operation Flow Chart

27
 ORGANISATION OF A MUTUAL FUND

( Figure No : 1.4)

Structure of the Indian mutual fund industry

The Indian mutual fund industry is dominated by the Unit Trust of India which
has a total corpus of Rs700bn collected from more than 20 million investors.
The UTI has many funds/schemes in all categories ie equity, balanced,
income etc with some being open-ended and some being closed-ended. The
Unit Scheme 1964 commonly referred to as US 64, which is a balanced fund,
is the biggest scheme with a corpus of about Rs200bn. UTI was floated by
financial institutions and is governed by a special act of Parliament. Most of its
investors believe that the UTI is government owned and controlled, which,
while legally incorrect, is true for all practical purposes.
The second largest categories of mutual funds are the ones floated by
nationalized banks. Canbank Asset Management floated by Canara Bank and
SBI Funds Management floated by the State Bank of India are the largest of
these. GIC AMC floated by General Insurance Corporation and Jeevan Bima
Sahayog AMC floated by the LIC are some of the other prominent ones. The
aggregate corpus of funds managed by this category of AMCs is about
Rs150bn.
The third largest categories of mutual funds are the ones floated by the
private sector and by foreign asset management companies. The largest of

28
these are Prudential ICICI AMC and Birla Sun Life AMC. The aggregate
corpus of assets managed by this category of AMCs is in excess of Rs250bn

Some of the AMCs operating currently are

Nature of
Name of the AMC
ownership
Alliance Capital Asset Management (I) Private Limited Private foreign
Birla Sun Life Asset Management Company Limited Private Indian
Bank of Baroda Asset Management Company Limited Banks
Bank of India Asset Management Company Limited Banks
Canbank Investment Management Services Limited Banks
Cholamandalam Cazenove Asset Management Company Private foreign
Limited
Dundee Asset Management Company Limited Private foreign
DSP Merrill Lynch Asset Management Company Limited Private foreign
Escorts Asset Management Limited Private Indian
First India Asset Management Limited Private Indian
GIC Asset Management Company Limited Institutions
IDBI Investment Management Company Limited Institutions
Indfund Management Limited Banks
ING Investment Asset Management Company Private Private foreign
Limited
J M Capital Management Limited Private Indian
Jardine Fleming (I) Asset Management Limited Private foreign
Kotak Mahindra Asset Management Company Limited Private Indian
Kothari Pioneer Asset Management Company Limited Private Indian
Jeevan Bima Sahayog Asset Management Company Institutions
Limited
Morgan Stanley Asset Management Company Private Private foreign
Limited

29
Punjab National Bank Asset Management Company Banks
Limited
Reliance Capital Asset Management Company Limited Private Indian
State Bank of India Funds Management Limited Banks
Shriram Asset Management Company Limited Private Indian
Sun F and C Asset Management (I) Private Limited Private foreign
Sundaram Newton Asset Management Company Limited Private foreign
Tata Asset Management Company Limited Private Indian
Credit Capital Asset Management Company Limited Private Indian
Templeton Asset Management (India) Private Limited Private foreign
Unit Trust of India Institutions
Zurich Asset Management Company (I) Limited Private foreign

(Table No : 1.1)

Types of Mutual Funds

Mutual fund schemes may be classified on the basis of its structure and its
investment objective.

By Structure
Open-ended Funds
An open-end fund is one that is available for subscription all through the year.
These do not have a fixed maturity. Investors can conveniently buy and sell
units at Net Asset Value ("NAV") related prices. The key feature of open-end
schemes is liquidity.

Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging
from 3 to 15 years. The fund is open for subscription only during a specified
period. 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

30
exchanges where they are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to
the Mutual Fund through periodic repurchase at NAV related prices. SEBI
Regulations stipulate that at least one of the two exit routes is provided to the
investor.

Interval Funds
Interval funds combine the features of open-ended and close-ended schemes.
They are open for sale or redemption during pre-determined intervals at NAV
related prices.

By Investment Objective
Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to
long- term. Such schemes normally invest a majority of their corpus in
equities. It has been proven that returns from stocks, have outperformed most
other kind of investments held over the long term. Growth schemes are ideal
for investors having a long-term outlook seeking growth over a period of time.

Income Funds
The aim of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds,
corporate debentures and Government securities. Income Funds are ideal for
capital stability and regular income.

Balanced Funds
The aim of balanced funds is to provide both growth and regular income.
Such schemes periodically distribute a part of their earning and invest both in
equities and fixed income securities in the proportion indicated in their offer
documents. In a rising stock market, the NAV of these schemes may not
normally keep pace, or fall equally when the market falls. These are ideal for
investors looking for a combination of income and moderate growth.

31
 Money Market Funds
The aim of money market funds is to provide easy liquidity, preservation of
capital and moderate income. These schemes generally invest in safer short-
term instruments such as treasury bills, certificates of deposit, commercial
paper and inter-bank call money. Returns on these schemes may fluctuate
depending upon the interest rates prevailing in the market. These are ideal for
Corporate and individual investors as a means to park their surplus funds for
short periods.

Load Funds
A Load Fund is one that charges a commission for entry or exit. That is, each
time you buy or sell units in the fund, a commission will be payable. Typically
entry and exit loads range from 1% to 2%. It could be worth paying the load, if
the fund has a good performance history.
No-Load Funds
A No-Load Fund is one that does not charge a commission for entry or exit.
That is, no commission is payable on purchase or sale of units in the fund.
The advantage of a no load fund is that the entire corpus is put to work.

Other Schemes
Tax Saving Schemes
These schemes offer tax rebates to the investors under specific provisions of
the Indian Income Tax laws as the Government offers tax incentives for
investment in specified avenues. Investments made in Equity Linked Savings
Schemes (ELSS) and Pension Schemes are allowed as deduction under
Income Tax Act, 1961.

Special Schemes
 Industry Specific Schemes
Industry Specific Schemes invest only in the industries specified in the offer
document. The investment of these funds is limited to specific industries like
InfoTech, FMCG, Pharmaceuticals etc.

32
 Index Schemes
Index Funds attempt to replicate the performance of a particular index such as
the BSE Sensex or the NSE 50.

 Sectoral Schemes
Sectoral Funds are those, which invest exclusively in a specified industry or a
group of industries or various segments such as 'A' Group shares or initial
public offerings.

Merits of Mutual Fund

Professional Management
Mutual Funds provide the services of experienced and skilled professionals,
backed by a dedicated investment research team that analyses the
performance and prospects of companies and selects suitable investments to
achieve the objectives of the scheme.

Diversification
Mutual Funds invest in a number of companies across a broad cross-section
of industries and sectors. This diversification reduces the risk because seldom
do all stocks decline at the same time and in the same proportion. You
achieve this diversification through a Mutual Fund with far less money than
you can do on your own.

Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many
problems such as bad deliveries, delayed payments and follow up with
brokers and companies. Mutual Funds save your time and make investing
easy and convenient.

33
Return Potential
Over a medium to long-term, Mutual Funds have the potential to provide a
higher return as they invest in a diversified basket of selected securities.

Low Costs
Mutual Funds are a relatively less expensive way to invest compared to
directly investing in the capital markets because the benefits of scale in
brokerage, custodial and other fees translate into lower costs for investors.

Liquidity
In open-end schemes, the investor gets the money back promptly at net asset
value related prices from the Mutual Fund. In closed-end schemes, the units
can be sold on a stock exchange at the prevailing market price or the investor
can avail of the facility of direct repurchase at NAV related prices by the
Mutual Fund.

Transparency
One can get regular information on the value of his investment in addition to
disclosure on the specific investments made by his scheme, the proportion
invested in each class of assets and the fund manager's investment strategy
and outlook.

Flexibility
Through features such as regular investment plans, regular withdrawal plans
and dividend reinvestment plans, you can systematically invest or withdraw
funds according to your needs and convenience.

Affordability
Investors individually may lack sufficient funds to invest in high-grade stocks.
A mutual fund because of its large corpus allows even a small investor to take
the benefit of its investment strategy. Mutual Funds offer a family of schemes
to suit your varying needs over a lifetime.

34
Well Regulated
All Mutual Funds are registered with SEBI and they function within the
provisions of strict regulations designed to protect the interests of investors.
The operations of Mutual Funds are regularly monitored by SEBI.

Demerits of Mutual Fund

Professional Management
Many investors debate over whether or not the so-called professionals are
any better than you or I at picking stocks. Management is by no means
infallible, and, even if the fund loses money, the manager still takes his/her
cut.

Dilution
It's possible to have too much diversification. Because funds have small
holdings in so many different companies, high returns from a few investments
often don't make much difference on the overall return. Dilution is also the
result of a successful fund getting too big. When money pours into funds that
have had strong success, the manager often has trouble finding a good
investment for all the new money.

Entry and exit costs

Mutual funds are a victim of their own success. When a large body like a fund
invests in shares, the concentrated buying or selling often results in adverse
price movements at the time of buying, the fund ends up paying a higher price
and while selling it realizes a lower price. This problem is especially severe in
emerging markets like India, where, excluding a few stocks, even the stocks
in the Sensex are not liquid, So, there is simply no way that a fund can beat
the Sensex or any other index, if it blindly invests in the same stocks as those
in the Sensex and in the same proportion. For obvious reasons, this problem
is even more severe for funds investing in small capitalization stocks.
However, given the large size of the debt market, excluding UTI, most debt
funds do not face this problem.

35
Wait time before investment
It takes time for a mutual fund to invest money. Unfortunately, most mutual
funds receive money when markets are in a boom phase and investors are
willing to try out mutual funds. Since it is difficult to invest all funds in one day,
there is some money waiting to be invested. Further, there may be a time lag
before investment opportunities are identified. This ensures that the fund
underperforms the index. For open-ended funds, there is the added problem
of perpetually keeping some money in liquid assets to meet redemptions. The
problem of impracticability of quick investments is likely to be reduced to
some extent with the introduction of index futures.

Fund management costs

The costs of the fund management process are deducted from the fund. This
includes marketing and initial costs deducted at the time of entry itself, called
"load". Then there is the annual asset management fee and expenses,
together called the expense ratio. Usually, the former is not counted while
measuring performance, while the latter is. A standard 2% expense ratio
means that, everything else being equal, the fund manager underperforms the
benchmark index by an equal amount.

Cost of churn
The portfolio of a fund does not remain constant. The extent to which the
portfolio changes is a function of the style of the individual fund manager i.e.
whether he is a buy and hold type of manager or one who aggressively
churns the fund. It is also dependent on the volatility of the fund size i.e.
whether the fund constantly receives fresh subscriptions and redemptions.
Such portfolio changes have associated costs of brokerage, custody fees,
registration fees etc. which lowers the portfolio return commensurately.

Change of index composition

World over, the indices keep changing to reflect changing market conditions.
There is an inherent survivorship bias in this process, with the bad stocks
weeded out and replaced by emerging blue chips. This is a severe problem in

36
India with the Sensex having been changed twice in the last 5 years, with
each change being quite substantial. Another reason for change index
composition is Mergers & Acquisitions. The weight age of the shares of a
particular company in the index changes if it acquires a large company not a
part of the index.

37
2. Industry profile
Industry Profile Globally

The global mutual fund industry’s assets have grown more than sevenfold in
the last two decades, according to a new research report by ICI Global. The
paper offers a statistical analysis—the first of its kind conducted on post of
financial crisis data—of the numbers of mutual funds and assets under
management in various regions around the world. It also details the
prerequisites for mutual fund growth, such as strong, appropriate regulation
and capital markets, and the primary factors driving fund growth, such as a
country’s economic development and demographics and whether a country
has a defined contribution (DC) plan that allows participants to invest in
mutual funds.

 Strong Market Returns and Net Sales Have Driven Asset

Growth Worldwide

The report, Globalisation and the Global Growth of Long-Term Mutual Funds,
finds that mutual funds worldwide have experienced strong growth in assets
over the past two decades, increasing from $4 trillion to almost $29 trillion in
September 2015. This growth reflects increases in each of four broad
regions—the United States, Europe, Asia-Pacific, and the rest of the world.
Broken out by region:

‘The data paint a picture of a booming environment for mutual funds,’ said ICI
Senior Economist Chris Plantier, author of the report. ‘Though local factors,
such as high returns on Brazilian bond funds, and changes in statistical
reporting are behind some of the more exceptional growth seen in the “rest of
the world” region, the research shows that, worldwide, investors are
expressing a clear demand for mutual funds as a savings vehicle.’
  A Number of Factors Influence Fund Development

The study also shows that a number of key factors help to drive mutual fund
growth, including:

 Improving levels of economic development

 Deep and liquid markets
 The existence of a DC plan system that enables participants to invest
in mutual funds

‘This highlights that developed countries have aging populations, and that
developing countries will face similar demographic pressures in the not-too-
distant future,’ commented ICI Global Managing Director Dan Waters ‘expect
that demand for regulated funds will continue to grow, particularly as
investments in participant-directed DC plans, in response to these trends.
Because DC plans offer a transparent method of funding retirement that
empowers individuals by giving them ownership and control, they believe that
they will play an increasingly important role worldwide.’

( Figure No : 2.1)

 Middle Class Growth in Developing Countries

Represents Growth Potential
As developing countries’ populations mature, their middle classes expand,
and investors better understand and desire the benefits of domestic and
international diversification, mutual fund markets have the potential to grow
rapidly.

This notes , for example, that though populations in Asia (excluding Japan)
are relatively young, the proportion aged 65 and older is expected to rise
gradually over the next 50 years. This factor, coupled with projections by the
Organisation for Economic Co-operation and Development that the global
middle class will rise from 1.8 billion in 2009 to 4.9 billion people in 2030—
with most of this growth occurring in developing Asia—make it clear that there
is considerable potential for growth in mutual fund assets outside the United
States and Europe.

This explains that rising per-capita income in developing market countries

around the world has the potential to significantly increase the demand for
long-term mutual funds and foster industry growth outside the United States
and Europe broadly. This growth potential is a natural consequence of
economic and financial development—in particular, the growing wealth, gross
domestic production, and income per capita of many developing economies.

‘Investors in the Asia-Pacific region are becoming more familiar with mutual
funds as a valuable way to manage and grow their assets,’ commented
Qiumei Yang, Executive Vice President, Head of Asia-Pacific for ICI Global.
‘Also, access to cross-border funds, though currently not uniformly available
across the region, is increasing. We believe that if investors have access to a
wider range of funds, they will increase their use of funds.’

Industry profile nationally:

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 - 1964-1987

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. 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 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 crores3

Third Phase - 1993-2003 (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 2003, 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 2003

In February 2003, 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 2003, representing broadly, the assets of US 64
scheme, assured return and certain other schemes. The Specified
Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the
purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It
is registered with SEBI and functions under the Mutual Fund Regulations.
With the bifurcation of the erstwhile UTI which had in March 2000 more than
Rs. 76,000 crores of assets under management and with the setting up of a
UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with
recent mergers taking place among different private sector funds, the mutual
fund industry has entered its current phase of consolidation and growth

Industry profile State wise:-

Mutual fund investments are subject to market risks. But when it comes to
business, Gujaratis in Gujarat have always been inclined towards taking
risks. This tendency remained intact amid volatility and lower return in equity
markets as Gujaratis increased their investments in mutual fund by Rs9,833
crore. However, it still lags behind growth in bank deposits.

According to the official data of Association of Mutual Funds of India (AMFI) —

as on September 2015 — total assets under management (AUM) from
Gujarat stood at Rs46,396 crore compared to Rs36,582 crore in September
2013
“There is a steady increase in mutual fund investments from Gujarat. The
investment objective may have changed from pure equity to a debt -oriented
scheme. However, awareness about the investment in mutual funds is
definitely increasing,” said the regional head of a large mutual fund.

Despite the huge figure, Gujarat’s contribution is quite minuscule — just

5.74% — compared to the total AUM of the country — Rs8.08 lakh crore. Top
five cities — Mumbai, Delhi, Bangalore, Kolkata and Chennai — contribute
around 73.55% of the total investment in this passive mode of investment in
the securities market.

Similarly, Ahmedabad emerged as the largest investor in mutual funds from

Gujarat. The city has a total investment of Rs28,755 crore or 62% of total
AUM. It is followed by Vadodara (Rs4,917 crore), Surat (Rs4,347 crore) and
Rajkot (Rs1,996 crore) as on September 2015.

“Penetration of mutual fund is still less, but there is an increasing trend from
direct investment in equities to putting the money in mutual funds. Systematic
Investment Plans (SIP) that allows people to invest money in installments is
one of the reasons why investors from smaller towns are also attracted.
History has also suggested that even in volatile environment mutual funds
were able to deliver better return to investors compared to taking a risk of
direct investment,” industry official added.

Other than four large cities of Gujarat, 10 small towns from Gujarat also
featured in the top-100 list of highest investment in mutual fund as compiled
by the AMFI. Except Surat and Jamnagar where AUMs have declined
showing redemption by investors, all other cities have shown a steady
increase in AUM between 2015 and 2013.

However, it should be noted that mutual fund industry has a long way to go as
compared to traditional savings or investment products. For example: bank
deposits in Gujarat stood at Rs3.93 lakh crore and the same saw an increase
of Rs1.01 lakh crore in the last two years. For safe, liquid although a lower
return, people still prefer bank deposits over mutual fund investment are not
immune to market risks.
  PESTEL Analysis:

PESTEL is an acronym that stands for political, economical, social,

technological, environmental and legal. It is used to describe an analysis that
is used for determining the opportunities and risks of global expansion.

 Political factors
Political forces have a great on financial services industry. Political
factors have important influence in terms of the ownership and
therefore objectives of financial institutions. Any political announcement
or decision can bring forth a welter of proposals on capital regulation,
liquidity and leverage controls, and governance and remuneration
issues. These changes affect financial structure and the behavior of
borrowers and lenders.
For example, the Indian government’s decision to allow FDI in multi-
brand retail sent the stock markets up. Allowing FDI in insurance to
49% would might see changes in the ownership pattern of many
insurance firms or attract new ones. This would affect the behavior of
investors.

 Economic factors
Financial services industry is the most vulnerable to economic factors.
The stage of the economy, growth or decline in the economy, etc.
would affect the financial services industry at large. Economic indicates
like the GDP, purchasing power parity, inflation, etc. would determine
the rates of interest in the economy which has a substantial impact on
the way the intermediaries in the financial services industry operate.
Events like wars, greatly affect the stability of the financial services
industry. In other words they can say that the growth or development of
financial services industry is largely dependent on the state of economy
of the country.
 Social factors
Social factors include the culture aspects and include health
consciousness, population growth rate, age distribution, career
attitudes and emphasis on safety. Trends in social factors would affect
the financial services industry. For example, an aging population may
imply a smaller and less-willing work-force, more investment in risk free
avenues, etc. furthermore, intermediaries in the financial services
industry may have to change various management strategies to adapt
to these social trends (such as recruiting older workers).

 Technological factors
Technological factors also affect the financial services industry at large.
Previously, share certificates represented ownership rights, however
with technological changes they are now held in dematerialized form.
Opening accounts with banks, mutual funds and insurance companies
online; electronic transfer of funds’ ATM services; mobile banking; etc.
are all because of the technological changes in the world and financial
services industry is also affected by the same. It has to continuously
change the way it functions along-with the changes in technological
factors to survive in the competitive environment.

 Environmental factors
Environmental factors include ecological and environmental aspects
such as weather, climate and climate changes. These factors may not
deeply affect the financial services industry; however, it may affect
insurance companies and the commodities markets. For example,
uncertainty in the amount of rainfall has led to development of new
insurance product such as weather insurance. Also shortfall of rainfall
would increase the price of commodities which would affect the
commodities market.
  Legal factors
Legal factors include discrimination law, consumer law, antitrust law,
employment law, and health and safety law. These factors can affect
how intermediaries in the financial services industry operate, their
costs, and the demand for the products and services offered by them.
Laws relating to accounting standards, definitions, incorporation rules,
bankruptcy, solvency, and transparency all have an impact on the
financial services industry.

 Current trends in mutual fund industry

AMFI has started to disclose some additional data related to Mutual Fund
investments from October, 2015. Today, they look at a snapshot of this data:

14.5 Lakh Crores in Mutual Funds Assets managed by the MF Industry has
increased from Rs. 10.7 lakh crore in Oct-14 to Rs. 14.5 lakh crore in May-
16 with Debt funds taking the most investment at 45 paise of every rupee
invested.

( Figure No : 2.2)
Here is the chart clearing showing the domination of the Institutions while
investing in Mutual Funds

 Institutions v/s Individuals

Investments by Individuals account for a little over 45% of the total assets
while the remaining 55% is constituted by Institutions

Investments from Individuals stands at Rs. 6.57 lakh crore for the month of
May-16 compared to Rs. 5.63 lakh crore for the same month of previous year
while investments from Institutions stands at Rs. 7.88 lakh crore for the
month of May-16 compared to Rs. 6.62 lakh crore for the same month of
previous year. That is Individuals are at least a year behind in terms of
monetary investments in MF compared to Institutions.

Investment amount has increased every month except for Mar-16 in case of
Institution which witnessed a Rs. 0.1 lakh crore drop while for Individuals it
was in the month of Feb-16 – a drop of Rs. 0.15 lakh crore.

( Figure No : 2.2)

Scheme Wise Composition

While investments in liquid funds (Rs. 3.51 lakh crore assets) has only
increased by 25% in May-16 compared to Oct-14 levels, ETF has
commanded the highest increase at 62% though it has only Rs. 0.26 lakh
crore worth assets followed by Equities at 48% (Rs. 4.45 lakh crore assets)
and Debt Funds at 32% (Rs. 6.23 lakh crore assets). The EPFO investing
through ETFs – started last year – would have made this change.

While Individual investors prefer equity over debt for investments, Institutions
have preferred Debt over liquid funds.

Debt + Liquid funds account for a little below 90% of the assets for
Institutions while for Individual Equity + Debt funds account for a little over
95% of the assets.

Here is how the investment decisions were spread across the different
schemes between Individuals and Institutions:

( Figure No : 2.3)

Here is the trend over the past 8 months:

 ( Figure No : 2.4)

B15/ T15 Mix

The top fifteen cities in India are marked as T15 for mutual fund investors – so
if you’re in these cities, your investment is a T15 investment. B15 is
everything else.

Over 83% of the assets (Rs. 12.1 lakh crore) have come from Top 15
locations while the remaining 17% (Rs. 2.31 lakh crore) has come from non-
T15 locations.

T15 investors clearly love investing in Non-Equity funds when compared to

Equity Funds. Their average investment in Equity Funds has been 72% of the
assets (Rs. 8 lakh crore) while the non-T15 investors prefer a perfect
weightage between equities and non-equities. This can be explained by the
fact that most institutions and corporates are in T-15 locations (big cities).

The B15 location coverage is actually falling – for both individuals and
institutions. Individual ownership in B15 has fallen about 0.5% in terms of
marketshare since last year.
 ( Figure No : 2.5 )

Distributors vs Direct

39% of the assets of the mutual fund industry came directly. This has been
growing.

64% of liquid/ money market scheme assets where institutional investors

dominate were direct,whereas 43% of debt oriented scheme assets were
direct.

Proportion of direct investment in equity to the total assets held by individual

investors was about 5.6% in May 2016.

( Figure No : 2.6)
 Individual-Investor Assets Composition

66% of the assets of Individual Investors are from T15 cities brought in by
distributors.

Direct investments amount to 14% of individual assets i.e. 3% from B15 and
11% from T15.

( Figure No : 2.7)

Major players:

 Axis Mutual Funds

Axis Bank, formerly known as Unit Trust of India, is one of the most prominent
private banks in the country. The bank offers financial services and products
in segments of retail banking, commercial banking, asset management,
agriculture banking and corporate banking. Axis Bank is head-quartered in
Mumbai and has international presence in countries like UAE, UK, Sri Lanka,
China and Hong-Kong Axis mutual funds were launched in the year 2009 with
an accomplished suite of 53 mutual fund schemes. Today, Axis mutual funds
are available to customers in over 75 cities and have a customer base of over
7 lac investors. Axis mutual funds are a professionally managed, pool of
 savings of a number of investors who share a common financial aim. This
collated money is then invested into shares, debentures and securities. The
income thus earned is shared by investors in ratio of the number of share
units held by them.

 Bharti AXA

Bharti AXA is a joint venture between Bharti Enterprises and AXA investment
managers. AXA investment managers is a part of AXA group which is known
as the world leader in financial protection and wealth management. It was
established in December 2006. The joint venture has a 74% stake from Bharti
and 26% from AXA. It offers a range of life insurance and wealth management
products. Bharti AXA Mutual Fund is an asset management company of India.
The company is controlled by Bharti AXA Investment Managers Private
Limited. It offers a variety of schemes including open ended funds, equity
funds and tax saving funds. It implements rigid risk control methods to
decrease the risk factor for the investors. The major objective of the schemes
offered by Bharti AXA Mutual Fund is to generate maximum returns to the
investor.

 Birla Sun Life

Birla Sun Life Mutual Fund aims at giving investors the benefit of diverse
investments. It strives to providing customers with minimal time and
knowledge regarding investments with a sound financial portfolio. Birla Sun
Life Mutual Fund has been consistently known for guiding customers to meet
their financial goals. Birla Sun Life Mutual Fund furnishes investors with one
of the most economical ways of earning returns through professional money
management. Customers with various investment goals ranging from wealth
creation, tax saving, personal savings to regular income building have
achieved them with Birla Sun Life Mutual Fund. The company’s mutual fund
schemes are customised to suit different parameters including, career paths,
 inheritance and financial goals of the customers. The schemes offer investors
with both conservative as well as aggressive investment plan

DSP Black Rock mutual funds

DSP Black Rock mutual funds are managed by DSP Black Rock Investment
Managers. DSP Black Rock Investment is an asset management company
which is a joint venture between the DSP Group and Black Rock. DSP group
is one of the oldest business groups of the country and is over 145 years old.
On the other hand, Black Rock is the largest listed asset management
company in the world. It provides asset management and investment services
to customers across 26 countries. In the year 2008, DSP Black Rock mutual
funds came into existence as a result of renaming of DSP Merrill Lynch
mutual fund. DSP Blackrock has many fund schemes, some of which are
considered the best mutual fund schemes in the financial industry. DSP Black
Rock has a variety of mutual funds to choose from. The company is known for
offering funds that can be tailored according to customer preference.

 Edelweiss Mutual Fund

Edelweiss Finance Limited was founded in the year 1996 and has been a lead
player in the financial industry ever since. The company provides asset
management, insurance broking and investment banking services to its
customers. The company has its headquarters in Mumbai and has operations
in 19 Indian states. Edelweiss got approval to launch its own mutual fund
business in the year 2008. Edelweiss mutual funds are an integral part of the
Edelweiss Group. These mutual funds are a professionally managed pool of
funds that are invested on behalf of customers in various shares, securities
and debentures. The income earned from these is then shared with the
investors in proportion to the number of share units held by them. Edelweiss
Asset Management Ltd. manages mutual funds for Edelweiss. The company
follows a process-oriented and research-driven approach to help investors
grow and manage their funds. The fund management team at Edelweiss
comes with a deep experience in the field of mutual funds.
 Franklin Templeton Mutual Fund

Franklin Resources, Inc. is a global investment management organisation

widely known as Franklin Templeton Investments. It boasts of being a single
firm housing world class investment teams backed by one of the world’s
largest investment managers. The company perseveres to deliver first-rate
asset management to its customers. Franklin Templeton began its association
with India with the establishment of its India’s office called Templeton Asset
Management. Franklin Templeton focusses on identifying value in an
investment and passing the value onto the customer. The company
concentrates on short term market fluctuation, cash flow, revenue and intrinsic
value of a company to deliver the best option for investing to their customers.
Franklin Templeton Mutual Funds provide investors with solid and risk
adjusted returns.

 HDFC Mutual Fund

HDFC or the Housing Development Finance Corporation Limited is one of

India’s premier financial conglomerates. It was established in 1977 as a
mortgage company and has since grown into a financial giant that has, as its
major subsidiaries, companies likes HDFC Bank, HDFC Standard Life
Insurance Company Limited and even HDFC Asset Management Company
among others. The services provided by the company range from mortgages
to insurance to mutual funds. Mutual funds are the products offered by the
asset management company HDFC Mutual Funds. It was established as a
trust under HDFC along with Standard Life Investments Limited as the
sponsor. The trustee of the company is HDFC Trustee Company Limited. The
company launched its first products in 2000 and has grown considerably since
them to offer mutual funds spread across 11 different types of funds. In a
recent move, HDFC Mutual Funds, which is India’s largest mutual funds
manager, bought out Morgan Stanley’s business when they exited the
country. The eight schemes of Morgan Stanley that were bought by HDFC
had a combined value of Rs 3,290 crore. This move has put HDFC Mutual
funds even further ahead of its competitors in the mutual funds markets.
 IDFC Mutual Fund

Incorporated in 1997, IDFC or Infrastructure Development Finance Company

is one of the major infrastructure finance players in India. IDFC provides
finance and advisory services in the domains of alternative asset
management (private equity, infrastructure, real estate), public market asset
management (mutual fund), infrastructure projects and corporate investment
banking. Acquired in 2008, IDFC Mutual Fund falls under the aegis of IDFC
Asset Management Company Ltd (IDFC AMC) which manages products for
both retail and institutional investors. IDFC AMC attempts to ensure growth of
assets through several measures including directing corporate and private
savings into equity and debt markets.

 Kotak Mutual Fund

Kotak Mahindra Bank is the 4th largest private sector bank in India in terms of
market capitalization. It has been rated 245th among the world’s top 500
banks, with a brand value of US$ 481 million and has a brand rating of AA+.
Kotak Mahindra Mutual Funds has Rs. 41,337.

 L&T Mutual Fund

Larsen & Toubro is an Indian private sector company headquartered in

Mumbai, India. The company is into the business of financial services,
manufacturing goods, engineering and information technology. L&T has over
130 subsidiaries and 15 associate companies. The company also has offices
in the Middle East and other parts of Asia. L&T Mutual Fund is a mutual fund
company in India. It has many mutual fund schemes that cater to the
investment needs of investors. L&T Investment Management Limited is the
asset management company for all L&T mutual fund schemes. It is sponsored
by L&T Finance Holdings Limited which is registered as a non-banking
financial company under RBI. L&T’s Mutual Funds follow a disciplined
approach to risk and investment management.
 ICICI Prudential Mutual Fund

ICICI is a multinational Indian Bank that ranks among India’s top banking
concerns. Its services extend from banking to other financial services too. The
bank was established in 1994 as a subsidiary of the Industrial Credit and
Investment Corporation of India. ICICI has played a major role in the Indian
financial sector. ICICI Prudential Asset Management Company Ltd. is one of
India’s largest asset management companies and is a joint venture between
ICICI Bank of India and Prudential Plc of UK and was established in 1998.
The company handles mutual funds and also offers portfolio management
services to its customers. It also boasts of a customer base in excess of 3
million customers and is continuing its growth at an impressive pace.

 LIC Mutual Fund

The Life Insurance Corporation of India (LIC) is the largest life insurance
provider in India. LIC also provides mutual funds through a subsidiary in
collaboration with the Nomura Group of Japan. The company, previously
known as LIC Mutual Fund, was incorporated in 1989 and went into a
partnership with Nomura in 2011. With an illustrious history of over 25 years
of investing in mutual funds, the LIC Nomura Mutual Fund is currently among
the top choices in the Indian mutual fund space. The company is presently
headed by Shri Nilesh Sathe. LIC Nomura Mutual Fund offers funds under 7
categories namely debt, equity, ETF (exchange traded fund), liquid, interval,
fixed maturity and hybrid. Funds are also offered in miscellaneous categories
such as ULIS (unit-linked insurance scheme) and CPOF (capital protection
oriented fund).

 Motilal Oswal Mutual Fund

Motilal Oswal has been offering a slew of several innovative funds such as
MOSt Shares M50 which was the country’s first fundamentally weighted ETF
based on S&P CNX Nifty Index. M50 is an open-ended fundamentally
weighted ETF which seeks returns corresponding to the performance of the
 MOSt 50 Basket. Midcap 100 was India’s first Midcap ETF based on the CNX
Midcap Index. Midcap 100 is an open ended Index Exchange Traded Fund
which seeks results corresponding to the price performance. NASDAQ 100
was India’s first US equity ETF. NASDAQ 100 is an open ended Index
Exchange Traded Fund which seeks investment returns corresponding to the
performance of the NASDAQ-100 Index. Motilal’s 10 year gilt fund, the
country’s first fund to offer access to the 10 year benchmark G-sec . The
MOSt 10 year gilt fund invests 90-100% in the 10 year benchmark G-sec and
therefore accounts for nearly 50-60% of the daily trade. Lastly, MOSt Gold
Shares was India’s first Gold ETF to convert ETF units into physical gold. The
MOSt Gold Shares offer imported gold at a lower price by redeeming ETF
Units

 Reliance Mutual Fund

Reliance Mutual Fund is one of the fastest growing mutual funds in India.
Incorporated in 1995, the company has a long history of providing impressive
returns to customers. It is currently headed by Mr Sundeep Sikka. Reliance
Mutual Fund has an impressive Rs.1,37,124 crores of average asset under
management (AAUM), and has a pan-India presence across 160 cities.
Reliance Mutual Fund provides funds under 5 classes – Debt Funds, Equity
Funds, Liquid Funds, Gold Funds and Retirement Funds (both equity and
debt). Funds are available for investment in 20 distinct categories subject to
individual funds’ terms and conditions, which include – Ultra Short Term, Gilt,
Short Term, Long Term, MIP (monthly income plan) Dynamic, ETF, Liquid etc.
Reliance Mutual Fund provides more than 200 different schemes to choose
from and more than 800 different scheme options.

 SBI Mutual Fund

SBI Funds Management Private Ltd. is one of the leading asset management
companies in India with 25 years of experience in fund management, and also
having an investor base of over 4.58 million. The company has been
constantly delivering value to its investors since its inception which is a joint
venture between the State Bank of India and AMUNDI, another leading fund
 management company. SBI Fund Management Company serves a huge
family of investors with its network of over 222 points of acceptance
throughout the country, and offers stable investment policies to help investors
meet their financial objectives. SBI Mutual funds (SBIMF) are managed by
SBI Fund Management Company. These funds serve as a viable investment
option for a large group of investors in India. SBI Mutual Fund offers both
domestic and offshore funds.

 Tata Mutual Fund

Tata Mutual Fund has earned the trust of their investors with consistent
performance and long term results aiming at the overall excellence while
being transparent and taking rigorous risk control methods. Consistent results
are maintained through the value based investing methods. Tata Mutual Fund
offers operational flexibility is offered to cater to the specific needs of the
customers. Considering the challenges faced by the investors, wide range of
services are offered. Tata Mutual Fund manages around 26,968 crores worth
of assets according to the first quarter from January to March 2015. The Tata
Group has almost two-thirds of the equity in trusts which hosts institutions
such as natural sciences, medical care, energy and arts. The trust grants
endowment to individuals in areas of healthcare, education and social uplift.

 UTI Mutual Fund

Being the first mutual fund company in India, UTI offers some of the best
types of mutual funds investing in which you can get assured returns on your
investments. You can invest in UTI MFs at anytime from anywhere, and
access your mutual fund account 24 hours a day, 7 days a week, and 365
days a year via UTI’s website and keep you updated about your investments.
UTI MFs are trusted and innovative wealth creators and they are designed to
best suit your investment needs. Resident Indian individuals, HUFs, minors
(under the guidance of guardian/parents and NRIs – they all can invest in UTI
Mutual Funds
  Major offerings
The financial services industry has a wide range of products or offering
available to the public at large. Few of them are listed below:

1. Financial for various purpose such as housing, automobiles, agriculture, etc.

2. Mutual fund services
3. Debt market services
4. Investment banking
5. Depository services
6. Portfolio management services
7. Investment advisory services
8. NRI services
9. Services for easy subscription to IPOs
10. Currency, derivatives and equity trading
11. Life and general insurance services
12. Research reports to guide investors

In any industry, innovation and improvements happen when the rules are
changed. Large-scale environmental changes such as those that have taken
place in the last three years must lead to innovation and evolution.
Newer leaner operating structures will have to evolve which will entail the use
of technology that helps an AMC (Asset Management Company) reach the
retail end user with solutions that enable transactions via platforms such as
mobile or online platforms. This will not only give greater direct access but will
also help AMCs to better understand investor behaviour and create the
appropriate environment and products to move towards long and healthy
relationships with the investors.

As the industry evolves, outsourcing an increasing number of functions to

reduce the head-count and increase efficiency might be the norm. All aspects
of operating costs must be examined for efficiencies.
A rational look at schemes of an AMC by their management teams is needed
to better understand the mix, the cost and the benefits – to the investors as
well as to the AMCs. Agile product design, re-positioning of ETFs (Exchange
Traded Funds) and SIPs (Systematic Investment Plans) Better
communication of scheme returns on a relative basis to investors is required.
The alpha achieved is insufficiently communicated or understood. The new
AIF (Alternative Investment Fund) guidelines will create opportunities to
broaden the revenue base without commensurate cost increases.

The asset management industries in the US and in Japan have had their “401
k” (a type of retirement savings account in the US) moments. In the late 70s
market regulators in the US permitted pension funds (later 401K) to invest a
portion of their funds (at the discretion of the individual) into mutual fund
schemes. This saw a huge upsurge in the AUM of the industry as a whole.
Similarly the Japanese asset management industry went on a growth surge
around the turn of the century when the pension and retirement funds were
permitted to be invested in the asset management schemes. The EPF
(Employee Pension Fund) in India is a huge pool of long-term investible
funds. These are expected to yield high returns. If the right mechanism were
to be created to channelise even a small proportion of the funds to be
invested in the Indian mutual fund schemes (specific schemes can be
selected if required), it will provide a boost to the industry, apart from
maintaining the more important objective of having the funds managed by a
regulated sector and by persons with a track record. Imagine the change if
20% of the 3,00,000
3. Company Profile
a. Company profile :-

NJ Group is a leading player in Indian financial service industry known for its
strong distribution capabilities. It started in year 1994 by two Surat based
aspirants namely Neeraj Choksi and Jignesh Desai. They initially started the
business as agents and contact to investors directly. Then, they develop the
idea of a distributor network in year 2003. The reason behind this decision
was the reason that there exists a pool of potential investors in India itself and
it is very difficult to contact them personally. So, they thought that instead of
contacting the investors directly, they will develop a network of agents who
will in turn contact the investors
An evolving, emerging & enterprising group with it's' roots in the financial
services sector and today expanding into newer horizons with great passion.
The vision of the group is to be leaders in businesses driven by customer
satisfaction, commitment to excellence and passion for continued value
creation for all stakeholders. This vision has helped them to grow and build
the trust of Their customers and associates which is at the cornerstone of
everything they do. Trust is also at the heart of their success and the driver for
passion for success.
NJ Group is a leading player in the Indian financial services industry known
for its' strong distribution capabilities. The journey of NJ began in 1994 with
the establishment of NJ India Invest Pvt. Ltd., the flagship company, to cater
to investor needs in the financial services industry. Today, the NJ Wealth
 Distributor Network, earlier known as the NJ Funds Network, started in 2003
is among the largest networks of financial products distributor in India.
Over the years, NJ Group has diversified into other businesses and today has
the presence in businesses ranging from financial products distributor
network, asset management, real estate, insurance broking, training &
development and technology. Their rich experience in financial services,
combined with exceptional capabilities and strong process & system
orientation, has enabled us to shape a rising growth trajectory in their
businesses.
NJ Group is based out of Surat in Gujarat (India) and has presence in 94*
locations in India and has over 1,100+* employees.

 Products:
NJ offers advisory and distribution services on the following products.
 Investment Products
 Mutual funds – covering all AMCs & all schemes,
 Fixed Deposits of companies,
 PMS products (Third party & NJ)
 Government/RBI bonds,
 Infrastructure Bonds,
 Approved securities for charitable trusts, etc

 Real Estate
 Residential properties
 Commercial properties

 Training & Education

 Certification training courses
 AMFI
 CFP
 Training products
 Services
 Trading &Demat Account
 NJ India Invest Pvt Ltd offers benefits of trading and depository services under
one roof. NJ is registered as a Member with Bombay Stock Exchange (BSE)
& National Stock Exchange (NSE). NJ is also registered as a Depository
Participant of CDSL. Dematerialization and trading in the demat mode is the
safer and quicker alternative to holding physical securities. Under the
depository services the securities are held in electronic form for the investor
directly by Depository.
 At NJ, they are committed to provide complete depository services which are
convenient, safe and secure. Customers can approach the DP Helpdesk for
any queries & grievances that they may have.

 Vision and Mission

 Vision
 To be the leader in their field of business through:
 Total Customer Satisfaction
 Commitment to Excellence
 Determination to Succeed with strict adherence to compliance
 Successful Wealth Creation of their Customers

 Mission
 Ensure creation of the desired value for their customers, employees and
associates, through constant improvement, innovation and commitment to
service & quality. To provide solutions which meet expectations and maintain
high professional & ethical standards along with the adherence to the service

 Service Provided To Valuable Clients and Agents

 The weekly performance sheet (it covers performance of leading mutual fund
schemes).
 The monthly fund fact sheet (it covers comprehensive analysis of various
mutual funds).
 Various subscription services via E-mail.
 Dedicated portfolio planning and restructuring on demand.
 Sharing relevant information related to the Indian investment world.
 Varied services through njfundz network for partners.
Over all NJ also provide net-based services to their clients and agents. NJ E-
services are provided by a comprehensive website “www.njindiainvest.com”. It
covers detailed information about the Mutual Fund industry; it passes various
financial planner to satisfy investment goals like retirement planning, child’s
marriage planning etc. it also posses various analytical tools to measure the
performance of the Mutual Funds schemes like Return calculators, SIP return
calculators, and many others. There is a separate desk for the clients to get
their portfolio information on fingertips.

 The partners of NJ get valuable services from The Client Desk

@ NJ India invest. Com. From which they get following
services
 Transaction summary report (Mutual funds, fixed deposits, RBI bonds & other)
 Portfolio valuation report.
 Portfolio Performance report.
 Profit and loss a/c (FY wise)
 Consolidated sector & stock profile for equity investment through mutual
funds.
 Consolidated rating and script –profile across debt funds through mutual
funds.
 Consolidated assets allocation report across various assets.
 Alert processing facility across different parameters.

 Management Team
Mr. Neeraj Choksi& Mr. Jignesh Desai (R) are two first generation
entrepreneurs who began the journey of 'NJ' in 1994. The promoters of the NJ
Group were friends since their college years and the bond between Mr.
Neeraj& Mr. Jignesh has been instrumental in the success of NJ. Discussing
 upon important things before taking any decision, is a habit that they have
followed ever since they shared their hostel room in Vidhyanagar, where Mr.
Neeraj was studying his management courses and Mr. Jignesh was into
engineering. They both have a complementary style of functioning that augurs
perfectly well for the business.
Driven by their passion for financial well-being of customers & the mission for
transforming lives, the promoters have successfully put NJ on the forefront of
innovation & growth. With a humble beginning from home, the promoters have
successfully shaped the group's forays into many diversified businesses. Both
believe that 'Trust' has played a very important role in NJ's journey, and in
every step that they have taken. The words of the promoters aptly describes
this journey of NJ – 'Built on Trust'.

 SALES & PRODUCT TEAM

 Mr. Misbah Baxamusa
MisbahBaxamusa is the National Sales Head for NJ Wealth Distributor
Network. One of the oldest in team NJ, he has over 13 years of rich
experience in the financial services industry. An MBA by education, Misbah is
known for his deep understanding of the distribution practices and its
challenges.
 Mr. Husaini Kanchwala
HusainiKanchwala is the Product Head for Investments, having earlier been a
part of sales. With an experience over 8 years in the financial services
industry, Husaini is responsible for invest product promotions and tie-ups with
manufacturers.

 Mr. Jigesh Desai

Jigesh Desai is the Product Head for Real Estate having joined NJ 6 years
back after being an entrepreneur in the realty market. With an experience of
over 15 years, Jigesh is the person with sound grip on the realty market
 FUNCTIONAL TEAM:
 Mr. Abhishek Dubey
Abhishek Dubey is the Head of Strategic Business Development Unit and part
of NJ since last 9 years. Abhishek has played a key role in building the policy,
process & system structures at NJ. He is the Chief Policy & Communications
officer and also responsible for publications and the front-end - websites &
online desks at NJ.

 Col. C M Dixit
Col. C M Dixit is the Head of Administration Function. A member of the Indian
Army for 39 years, he joined NJ after retirement and has been with us for
nearly 6 years. He has been very particular in managing the assets, services
and the infrastructure at all NJ offices.

 Mr. Dhaval Desai

Dhaval Desai is the Head of Human Resources Function. With an experience
of 10 years, Dhaval has been a key player in setting best practices in
employee Management. He is also responsible for NJ Gurukul and its training
programs.

 Mr. Janak Patel

Janesh Bhatt total experience of over 17 years and has been with NJ since
over 15 years. Janesh has been instrumental in putting in shaping the IT
projects and services at NJ as part of the Finlogic team.

 Mr. MohammadaliSaiyed
Mohammadali Saiyed is responsible for the Finance Function at NJ. He is a
member of the ICAI and has an experience of nearly 5 years at NJ.
 NJ INDIAINVEST’S ACHIEVEMENT
NJIndia Invest is a growing company that can be very well proved from the
below achievements.

 They have gained a dominant place in the Indian mutual funds distribution
business
 Certified by the Association of Mutual Funds as AMFI registered Mutual
Funds advisors
 Won the Pru Chairman’s award twice in the year 2000 and 2002 for
outstanding performance in the scheme of Prudential ICICI Mutual Fund. The
chairman, prudential, presented the award at London both the times.
 Won many other awards and certificates for outstanding performance in
various Mutual Funds schemes.
 It has acquired about 15 to 17% share of total mutual fund business of
Gujarat.
 Received the award for the year 2003-04 from HDFC mutual fund for highest
selling of mutual funds. NJ’s director at Scotland received the award.
b. Organogram

Managing
Director

Head

Manager

Senior
excutive

Assistant
excutive

( Figure No : 3.1)
c. Division/Department

Managing director
Mr. Neeraj Choksi
Mr. Jignesh Desai

National Head
Mr. Mishbhah
Buxamusa

Zonal manager
Mr. Sarfaraj Patel

Reginal Manager
Mr. Apurva Shah

Branch Branch manager Branch manager

manager
Mr. Ravi Mr. Chirag Desai
Mr. Dipak Naik

Unit
manger Real state Unit manegr
Unit Manger Real Mr. Mr. Mr.Jignesh
Mr.Sallhudin state Avinash Bhagirath Mr.Nirmal
Mr. Sarthak Mr. Mr.
Mr. Ishteyaq Harsh Harshid

( Figure No : 3.2 )
AMC’S WITH NJ INDIA INVEST

Birla Mutual Fund

Cholamandalam Cazenove Mutual Fund

DSP Merrill Lynch Mutual Fund

Dundee Mutual Fund

Escorts Mutual Fund

First India Mutual Fund

Franklin Templeton Mutual Fund

Pioneer ITI

HDFC Mutual Fund

HSBC Mutual Fund

IDBI Principal

IL & FS Mutual Fund

ING Savings Trust

JM Mutual Fund
LIC Mutual Fund

Prudential ICICI Mutual Fund

SBI Mutual

Standard Chartered Mutual Fund

Sun F&C Mutual Fund

Sundaram Mutual Fund

Tata Mutual

Unit Trust Of India

Zurich India Mutual Fund

 SWOT ANALYSIS

STRENGHTHS

NJ India Invest is a dominant player in the Indian Mutual Funds distribution

business with over a decade of experience.
NJ can also provide personal websites to its clients.
NJ India Invest has about 16% to 18.5% share of total Mutual Fund business
of Gujarat.
NJ India Invest has Assets Under Management (AUM) more than 950 cores.
NJ India Invest has tie up with almost 25 AMC out of 37 operating in the
Mutual Fund industry.
NJ India Invest provides best services in the industry using cutting age of
technology.

WEAKNESES
There are some complaints from advisors side regarding irregular
dispatchment of commission.
NJ India Invest, in some cases, can’t convince their clients about the
helpfulness of the services provided by the company.

OPPORTUNITY
NJ India Invest has great opportunities in front of it as the Mutual fund has not
penetrated in the Indian financial market.
NJ India Invest can utilize the dominant position it has and optimally use the
huge network of its partners.
NJ India Invest can use its network of partners in selling Insurance; even
company can jump in to share trading business.

THREATS

NJ India Invest is facing competition from the new entrant like Anagram
Security, Karvy Security and many new and local players.
 Market Position

NJ Wealth - Financial Products Distributors Network is one of India's leading

and most successful network of distributors in the financial services industry.

Started in 2003, the NJ Wealth seeks to reach out to the common man and
extend the opportunity to create wealth through an empowered network of
financial product distributors – the NJ Wealth Partners. To its Partners, NJ
Wealth provides a full service, comprehensive business platform with end-to-
end solutions critical for success in financial products distribution practice.
With it's compelling set of offerings covering every area of distribution
practice, NJ Wealth has managed to successfully transform the lives of many
small and big distributors.

To the common man, NJ Wealth offers a comprehensive wealth management

platform with a wide choice of financial and non-financial products. Backed by
high levels of excellence in operational and service standards, NJ Wealth
offers customers of its' Partners with solutions that truly makes a difference.

Driven by the strong vision of 'Creating Wealth and Transforming Lives', NJ

Wealth's constant endeavour is to build on the ideas that are meaningful &
effective in scaling business challenges, seizing available opportunities and
serving the interests of the customer.

The NJ Wealth family has grown steadily and today it has over 21,000+ NJ
Wealth Partners, spread across 94 branches in 21 states in India with over
9,70,000+ investors and over INR 21,500+ crores + of mutual fund assets
under advice. Irrespective of the numbers though, it is trust in us which fuels
the passion for creating solutions with excellence that touch many lives, day
after day.
4. Review of Literature
Ranganathan, Kavitha. Studied Consumer behaviour from the marketing
world and financial economics has brought together to the surface an exciting
area for study and research: behavioural finance. The realization that this is a
serious subject is, however, barely dawning. Analysts seem to treat financial
markets as an aggregate of statistical observations, technical and
fundamental analysis. A rich view of research waits this sophisticated
understanding of how financial markets are also affected by the 'financial
behaviour' of investors. With the reforms of industrial policy, public sector,
financial sector and the many developments in the Indian money market and
capital market, Mutual Funds which has become an important portal for the
small investors, is also influenced by their financial behaviour. Hence, this
study has made an attempt to examine the related aspects of the fund
selection behaviour of individual investors towards Mutual funds, in the city of
Mumbai. From the researchers and academicians point of view, such a study
will help in developing and expanding knowledge in this field.

 Lewellen, Lease and Schlarbaum (cited in Nagy and Obenberger

1994 ) conducted the research on demographic basis i.e. age, gender,
income and education affects investor preferences for overall return,
capital gain and dividend yield. Barnewell (cited in Nagy and
Obenberger individual investor behavior can be predicted by
occupation, life style and risk aversion. Warren et al. founded that
individual investment choice based upon life style and demographic
attributes

 Anjan Chakarabarti and Harsh Rungta (2000) stressed the

importance of brand effect in determining the competitive position of
the AMCs. Their study reveals that brand image factor, though cannot
be easily captured by computable performance measures, influences
the investor’s perception and hence his fund/scheme selection.

78
 Gupta Amitabh (2000) evaluated the performance of 73 selected
schemes with different investment objectives, both from the public and
private sector using Market Index and Fundex. NAV of both closeend
and open-end schemes from April 1994 to March 1999 were tested.
The sample schemes were not adequately diversified, risk and return
of schemes were not in conformity with their objectives, and there was
no evidence of market timing abilities of mutual fund industry in India

 Grinblatt, Mark, and Matti Keloharju Using data from Finland, this
study analyzes the extent to which past returns determine the
propensity to buy and sell. It also analyzes whether these differences in
past-return-based behavior and differences in investor sophistication
drive the performance of various investor types. They find that foreign
investors tend to be momentum investors, buying past winning stocks
and selling past losers. Domestic investors, particularly households,
tend to be contrarians. The distinctions in behavior are consistent
across a variety of past-return intervals. The portfolios of foreign
investors seem to outperform the portfolios of households, even after
controlling for behavior differences.

 .Renneboog, Luc, Jenke Ter Horst, and Chendi Zhang This paper
provides a critical review of the literature on socially responsible
investments (SRI). Particular to SRI is that both financial goals and
social objectives are pursued. Over the past decade, SRI has
experienced an explosive growth around the world reflecting the
increasing awareness of investors to social, environmental, ethical and
corporate governance issues. they argue that there are significant
opportunities for future research on the increasingly important area of
SRI. A number of questions are reviewed in this paper on the causes
and the shareholder-value impact of corporate social responsibility
(CSR), the risk exposure and performance of SRI funds and firms, as
well as fund subscription and redemption behavior of SRI investors.
they conclude that the existing studies hint but do not unequivocally
79
 demonstrate that SRI investors are willing to accept suboptimal
financial performance to pursue social or ethical objectives.
Furthermore, the emergence of SRI raises interesting questions for
research on corporate finance, asset pricing, and financial
intermediation.

 Beha De Bondt, Werner FM. Behavioral finance models often rely on

a concept of noise traders who are prone to judgment and decision-
making errors. What do noise traders do? they review prior research
and present new survey evidence on the behavior of small individual
investors who manage their own equity portfolios. Many people
(1) discover naive patterns in past price movements, (2) share popular
models of value, (3) are not properly diversified, and (4) trade in
suboptimal ways.

 Goetzmann, William N., and Nadav Peles. they present evidence

from questionnaire responses of mutual fund investors about
recollections of past fund performance. they find that investor
memories exhibit a positive bias, consistent with current psychological
models. they find that the degree of bias is conditional upon previous
investor choice, a phenomenon related to the well-known theory of
cognitive dissonance. Psychological and economic frictions in the
mutual fund industry are examined via a cross-sectional study of equity
mutual funds. They find an unusually high frequency of poorly
performing funds, consistent with investor “inertia.” they also examine
the differential responses of investment dollars to past performance,
controlling for survivorship. These show that the effect is confined to
the top quartile. they find little evidence that the response to poor
performance is unusual.

 Arnswald, Torsten. A broad-based questionnaire survey, which

received a high response from German mutual f und companies,
sheds light on the black box of institutional equity investing in a
systematic manner. The survey asked for fund managers' basic views
80
 and practices and for insights into their company's performance-
measuring and compensation incentives. While the results suggest
that professional equity investors primarily recognise underlying
economic information as a source of superior value, there are also
strong indications for destabilising behavioural factors arising from the
choice of information sources and investment strategies and styles.
Attempts at fundamental arbitrage are likely to be constrained
significantly by time horizons and the fear of market movements.
Agency problems are shown to have a bearing on equity fund
managers' investment behaviour.

 Bailey, Warren, Alok Kumar, and David they examine the effect of
behavioral biases on the mutual fund choices of a large sample of US
discount brokerage investors using new measures of attention to news,
tax awareness, and fund-level familiarity bias, in addition to behavioral
and demographic characteristics of earlier studies. Behaviorally biased
investors typically make poor decisions about fund style and expenses,
trading frequency, and timing, resulting in poor performance.
Furthermore, trend chasing appears related to behavioral biases,
rather than to rationally inferring managerial skill from past
performance. Factor analysis suggests that biased investors often
conform to stereotypes that can be characterized as Gambler, Smart,
Overconfident, Narrow Framer, and Mature.

 Alexander, Gordon J., Gjergji Cici, and Scott Gibson they relate the
performance of mutual fund trades to their motivation. A fund manager
who buys stocks when there are heavy investor outflows is likely to be
motivated by the belief that the stocks are significantly undervalued. In
contrast, when there are heavy inflows, the manager is likely to be
motivated to work off excess liquidity by buying stocks. There analysis
reveals that managers making purely valuation-motivated purchases
substantially beat the market but are unable to do so when compelled

81
 to invest excess cash from investor inflows. A similar, but weaker,
pattern is found for stocks that are sold.

 Kozup, John, Elizabeth Howlett, and Michael Pagano Choosing

how to best invest for retirement is one of the most important decisions
a consumer can make. Unfortunately, this can be an especially
challenging task given the current financial information disclosure
environment. The objective of this research was to explore whether a
modified method of supplemental information disclosure impacts
investors’ fund evaluations and investment intentions. Results indicate
that while investors continue to place too much emphasis on prior
performance, the provision of supplemental information, particularly in
a graphical format, interacts with performance and investment
knowledge to influence perceptions and evaluations of mutual funds.

 McKechnie, Sally.Examines existing models of buyer behaviour and

evaluates their relevance to financial services in the light of the specific
characteristics of the sector and its products. Reviews empirical work
relating to both personal and corporate buying behaviour and suggests
the IMP framework as a basis for future conceptual work because of its
emphasis on the relationships and interactions in the buying process.

 Gelos, R. Gaston, and Shang-Jin Wei Does country

transparency affect international portfolio investment?
theyexamine this and related questions using some new
measures of transparency and a unique micro dataset on
international portfolio holdings. they distinguish between
government and corporate transparency. There is clear evidence
that international funds invest systematically less in less
transparent countries. On the other hand, herding among funds
tends to be more prevalent in less transparent countries. There
is also some evidence that during crises, funds flee non-
transparent countries by a greater amount.
82
 Ramasamy, Bala, and Matthew CH Yeung Growth, both in terms of
size and choice, in the mutual fund industry among emerging markets
has been impressive. However, mutual fund research in emerging
markets hardly exists. This paper intends to fill this gap. In particular,
the paper surveys the relative importance of factors considered
important in the selection of mutual funds by financial advisors in
emerging markets. Their survey focuses on Malaysia where the mutual
industry started in the 1950s but only gained importance in the 1980s
with the establishment of a government initiated programme. The
results of their survey point to three important factors which dominate
the choice of mutual funds. These are consistent past performance,
size of funds and costs of transaction. Factors which relate to fund
managers and investment style are not considered to be relatively
important. With the impending liberalization of the financial markets in
the developing world, their findings would assist those international
funds that are considering expanding their operations into these
emerging markets.accounts at a large U.S. discount broker for the six
years ending in 1996.

 The mutual fund sectors are one of the fastest growing sectors in
Indian Economy and have awesome potential for sustained future
growth. Mutual funds make saving and investing simple, accessible,
and affordable. The advantages of mutual funds include professional
management, diversification, variety, liquidity, affordability,
convenience, and ease of recordkeeping—as well as strict government
regulation and full disclosure. Financial markets are becoming more
extensive with wide-ranging financial products trying innovations in
designing mutual funds portfolio but these changes need unification in
correspondence with investor’s expectations. Thus, it has become
imperative to study mutual funds from a different angle, which is to
focus on investor’s perception and expectations. This research paper
focused attention on number of factors that highlights investors’

83
 perception about mutual funds. It was found that mutual funds were not
that much known to investors, still investor rely upon bank and post
office deposits, most of the investor used to invest in mutual fund for
not more than 3 years and they used to quit from the fund which were
not giving desired results. Equity option and SIP mode of investment
were on top priority in investors’ list. It was also found that maximum
number of investors did not analyze risk in their investment and they
were depend upon their broker and agent for this work.

 Journal of Behavioral Finance, 2006, noted that financial markets are

affected by the financial behavior of investors. She observed that
consumer behavior from the marketing world and financial economics
had brought together a need to study an exciting area of ‘behavioral
finance’. this study was an attempt to examine the related aspects of
the fund selection behavior of individual investors towards mutual funds
in the city of Mumbai.

 Mittal M. and A. Dhade (2007) in their research paper “Gender

Difference In Investment Risk-Taking: An Empirical Study” published in
The ICFAI Journal of Behavioral Finance, 2007, Observed that risk-
taking involves the selection of options that might result in negative
outcomes. While present is certain, future is uncertain Hence, all
investment involves risk
 Rajesh Dhawan (2011) in his article “Gold ETF – An investment
option” published in TAXMANN’S corporate professionals Today,
investment planning, May 1 to 15, 2011 concluded that gold ETFs are
open-ended mutual fund schemes that will invest the money collected
from investors in standard gold bullion (0.995 purity). The investors
holding will be denoted in units, which will be listed on a stock
exchange. The author have attempts to explain: how ETFs works, and
what are its advantages. He opines that given the uncertainty in global

84
 markets and the consequent volatility in equity markets, investor should
warm up.

 Soumya saha and Munmun Day (2011) in their article “Analysis of

Factors affecting investors perception of Mutual fund investment”
published in The IUP journal of Management Research, April 2011
concluded that consumer behavior is an important area of research
studies. Investors expectation is a very important factor in this regard
that needs to be analyzed by all alternative investment avenues. The
success of any mutual fund a popular means of investment depends on
how efficiently it has been able to meet the investor’s expectation. MF
industry in India has a large untapped market. Electronic sale of
financial products is gaining volumes with the widespread acceptability
of e-buyingo the idea of including gold ETFs in their asset allocation
plan.

 Mohit Gupta and Navdeep Aggarwal (2009) in their article “Mutual

funds portfolio creation using industry concentration” published in The
Icfaian journal of Management Research, March 2009 concluded that
mutual funds are innovative and provide value addition in personal
finance. Problems occur when a choice has to be made from the large
number of mutual funds. The study has used the cluster method, taking
industry concentration as a variable to construct the portfolio. The
study reflects the importance of portfolio creation by the method
involved, and highlights the important decision of risk management,
one of the important purposes for which mutual funds came into being.
Outperformance by the created portfolio, especially in the case of risk
mitigation, without sacrificing higher returns, will surely help the
investors to achieve optimal investment benefits.

85
 Schwarzkopf, D.L. (2003) In his article “The Effects of Attraction on
Investment Decisions.” Published in Journal Of Behavioral Finance,
2003 pointed out that the attraction effect occurs when an inferior item
changes a decision-maker's perception of the relationship between
other available alternatives, contrary to the expectations of rational
decision-making. This study presented the first evidence that this
effect, which has appeared persistently in consumer research, can
influence investment decisions. Results of an. experiment conducted
on graduate students with investing experience or interest showed that
the investor's perceived values of reported financial or nonfinancial
performance, quality of earnings, and information source reliability
were.

 Charlotte B. Beyer (2010) in his article “Investor Education: What’s

Broken and How to Fix It” published in The Journal of Wealth
Management, Summer 2010 In this article, the author argues that the
traditional approach to investor education has failed and that radical
reform is needed. After observing how one group of investors learned
far more in experiential settings, the author submits that these
investors might be convincing proof that experiential investor education
is superior. Signaling good news for the investment advisory industry,
the hiring, use, and retention of advisors by these same bettereducated
investors is stable. This group also expressed positive views of how
well served they are by the industry overall. While the ultra-wealthy
arguably might have easier access to superior advisors, the author
believes that overhauling investor education will benefit all investors,
not just the wealthiest.

 Hersh Shefrin (2000) in his article “Recent Developments in

Behavioral Finance” published in The Journal of Wealth Management,
Summer 2000 concluded that First, he discusses recent evidence of

86
 the ‘disposition effect,’ meaning ‘the disposition to sell winners too early
and to hold on to losers too long.’ The helps him present recent
evidence on the disposition effect and introduce some of the basic
concepts from behavioral finance for those new to the subject. Next,
the author addresses the issue of overconfidence, one of the most
prevalent behavioral phenomena. He reviews these findings which are
based on recent studies about the forecasts, trades, and performances
of participants in investment clubs. Finally, he examines two issues that
are specifically relevant for retirement portfolios, although they also
have more general implications. The first involves naive diversification
and the second pertains to the rules investors use to determine how
quickly retirement nest eggs are spent.

 Jim Peters (2003) in his article “Keeping a Watchful Eye on Your

Investments” published in Special Issues, 2003 concluded that In this
tough economic environment, private equity investors and other
institutional investors are scrambling for solutions to prevent their
portfolios from declining in value. Private equity board members have
to do more than just ensure proper financial reporting and attend board
meetings of their portfolio companies. They need to be sensitive to
early warning signs of business failure and to focus on leading
indicators of people and operating performance rather than just
financial performance, which is a lagging indicator. Directors need to
create a culture of open discussion and to feel free to ask questions
about business strategy and context, critical performance metrics,
continuous improvement processes, performance targets, and overall
parameters of business success.

 Alex Wang (2011) in his article “Younger Generations’ Investing

Behaviors in Mutual Funds: Does Gender Matter?” published in The
Journal of Wealth Management, Spring 2011 concluded that This

87
 study aims to understand younger generations’ investing behaviors in
mutual funds in order to help wealth advisors understand how better to
work with younger generations. his study reveals that knowledge,
experience, and income are important factors that influence younger
generations’ investing behaviors in mutual funds. Moreover, gender
emerges as the most important factor that differentiates younger
generations’ investing behaviors in mutual funds. The findings point out
challenges for younger women’s wealth management, as they tend to
exhibit fewer investing behaviors in mutual funds than their
counterparts do. Consistent with previous research on wealth
management among older generations, gender differences have
significant implications for wealth advisors. As a result, wealth advisors
should help younger women enhance their wealth management and
financial future by facilitating.

 Philip Z. Maymin and Gregg S. Fisher (2011) in their article

“Preventing Emotional Investing: An Added Value of an Investment
Advisor” published in The Journal of Wealth Management, Spring 2011
concluded that an important service provided by investment advisors,
and apparently desired by individual investors, is the barrier the advisor
provides to prevent the individual from aggressively trading and
thereby losing money. The authors analyze a unique, comprehensive,
multi-decade dataset of all communications with clients by a boutique
investment advisory and investment management firm to explore the
behavior of individuals involved in financial decision making. They
propose and test a theory of self-regulation to explain both the appeal
and the value of investment managers to individual investors, and they
find that all of the predictions of the theory are borne out by the data.

 Diana J . Beal , Michelle Goyen , and Peter Philips (2005) in their

article “Why Do they increase in happiness, an approach that lends

88
itself to empirical testing to improve their understanding of why they
invest ethically Invest Ethically?” published in The Journal of Investing,
2005 concluded that Analysis of three potential motives for ethical
investment—financial returns, non-wealth returns, and social change—
indicates that these motives are neither exhaustive nor exclusive; one
single motive will not explain the behavior of all ethical investors. There
may be a trade-off between financial and psychic returns for some
investors. The trade-off for consumption-investors is expected to be
close to zero (total utility is maximized at low levels of ethical
investment in the fun of participation model) and is expected to vary
with the ethical intensity of investment-investors, as shown when
ethical intensity is included in the investor's utility function.

89
5. Research Methodology
 Problem statement
To study the investor’s Buying Behavior Towards Mutual Fund

Research Objective
 To identify the investors behaviour towards Mutual funds
 To identify the consumer buying process of mutual fund
 To identify the factors which influence the customers to purchase mutual fund

Research design
Descriptive research is used to collect information about Mutual Fund investor.
Therefore it is used in the study to describe the behavior of particular population
in a systematic and accurate way.

Samplings

 Sampling size
Population : Investors of Mutual fund of Surat city
Sample Size : 150 respondents

 Sampling Method
Non Probability convenience sampling method is used to collect the data from
the respondents.

Data collections
 Primary Data Collection: - The Primary information is collected from the various
respondents through a questionnaire.
 Secondary Data Collection: - Secondary information is also collected for
understanding the topic in better way. It’s give clarity about the study. And this
information collects through website, journals, books and articles.
Tools for analysis

91
 For the purpose of analysis various analytical approaches I have used various
charts, percentage, frequency. And all this analysis is done through Microsoft
Excel and SPSS Software.

Limitation of the Study

 The study is limited to 150 respondents only, from Surat city and
surrounding regional rural areas. The findings of research may not
apply to the Gujarat state or the country.

 The Investors buying pattern keeps changing with the introduction of new
innovation in terms of product, price, place and promotion. If there is
introduction of new financial product, investors buying behavioural pattern
may change

92
6.DATA ANALYSIS & FINDINGS
 Respondent Profile

1. Age :

Age Frequency Percentage

18-30 years 16 10.7

31-45 years 76 50.7

46-60 years 55 36.7

>60 years 3 2.0

Total 150 100

( Table No : 6.1 )

Percent

120
100
100

80

60 50.66666667
36.66666667
40

20 10.66
2
0
18-30 years 31-45 years 46-60 years >60 years Total

( Figure No : 6.1 )

Interpretation : From the above chart it is conveyed that that 50.7%

respondents are of 18-30 years , 36.7% respondents are of 46-60
years,10.7% respondents are of 18-30 years and 2% of respondents
are of more than 60 years

94
2. Occupation

Occupation Frequency Percentage

Student 2 1.3
Salaried 73 48.67
Self Employed 58 38.67
Housewife 9 6
Retired 8 5.33
Total 150 100

( Table No : 6.2)

Student Salaried Self Employed Housewife Retired

1%

5%
6%

49%
39%

( Figure No : 6.2)

Interpretation : From the chart it is convey that 48.67% respondents

are Salaried person 38.67% respondent are Self Employed, 6%
respondents are house wife, and 5.33% respondents are retired and
1.3% respondent are Student

95
3. Educational Qualification

Qualification Frequency Percentage

Below HSC 8 5.3

Under Graduate 16 10.7

Graduate 42 28.0

Post Graduate 79 52.7

Doctorate 5 3.3

Total 150 100

( Table No : 6.3 )

Below HSC Under Graduate Graduate Post Graduate Doctorate

3%
5%
11%

53% 28%

( Figure No : 6.3)

Interpretation : From the above chart it is convey that 79% of the

respondents qualification is Post Graduation ,42% respondents
qualification is Graduate,16% respondents qualification is Under

96
 Graduate ,8% respondents qualification is Below HSC, 5%
respondents qualification is Doctorate

4. Annual family income (in Rs.)

Annual Family Income Frequency Percentage

< 150000 7 4.7

150000 to 3000000 34 22.7

300001 to 500000 80 53.3

>500000 29 19.3

Total 150 100

( Table No : 6.4)

Frequency Percentage

90
80
80
70
60 53.3
50
40 34
29
30 22.7
19.3
20
10 7 4.7
0
< 150000 150000 to 3000000 300001 to 500000 >500000

( Figure No : 6.4)

97
 Interpretation: 53.3% respondents Annual Income is 300001 to
500000 Rs, 22.7% respondents Annual Income is 150000 to 300000
Rs , 19.3% respondents Annual Income is more than 500000 Rs and
4.7% respondents Annual Income is more than 1500000 Rs

5. How many percentage (approximately) of your total

income do you invest per annum

Total Income Frequency Percentage

< 10% 0 0

10-15% 40 26.7

16-30% 89 59.3

>30% 22 14.0

Total 150 100

( Table No : 6.5)

98
 Frequency Percentage

100
89
90
80
70
59.3
60
50
40
40
30 26.7
22
20 14
10
0 0
0
< 10% 10-15% 16-30% >30%

( Figure No : 6.6)

Interpretation: From the above chart it is conveyed that 59.3 % of

respondents invest there 16-30% of income, 26.7% invest there 10-
15% of income , 14% of respondents invest there more than 30% of
income

6. Where do you invest your money:

Options Frequency Percentage

Life Insurance 72 48.0

Bank Fixed Deposit 76 50.7

Real Estate 89 59.3

Gold 41 27.3

NC/PPF/Post 37 24.7

99
Share Market 92 61.3

Mutual Funds 100 100

Others 0 0

Total 150 100

( Table No : 6.7)

Frequency
Others
0%

Life
Insurance
Mutual Funds 14%
20% Bank Fixed
Deposit
15%
Share Market
18%
Real Estate
18%
Gold
8%
NC/PPF/Post
7%

( Figure No : 6.7)

Interpretation : From the above chart it is conveys that 48 %

respondent invest in Life Insurance,50.7% invest in Bank Fixed
Deposit, 59.3% respondent invest in Real Estate, 27.3% respondents
invest in Gold, 24.7% respondents invest in NC/PPF/Post, 61.3%
respondents invest in Share Market , 100% of respondents invest in
Mutual Funds. Because in this respondents are mutual funds investors
only

100
7. Which Information sources do you consider before
purchasing/ investing in mutual fund:
Information Sources Frequency Percentage

Friends / Relatives 89 59.3

TV / Newspaper/Magazine 28 18.7

Broker / Agent / Advisors / Bank 84 56.0

Online 36 24.0

Others 0 0

Total 150 100

( Table No : 6.8)

Frequency
Others
0%

Online
15%

Friends /
Relatives
Broker / Agent / 38%
Advisors / Bank
35%

TV /
Newspaper/Mag
azine
12%

( Figure No : 6.8)

101
Interpretation: 59.3% respondents considered Friends and Relatives, 56%
considered Broker/ Agent/Advisors/Bank , 24% respondents considered Online
and 18.7 % respondent considered TV/Newspaper/Magazine as a source of
Information before Purchasing/investing in Mutual Funds

8. What is your purpose of investing in mutual fund:

Purpose Frequency Percentage

Retirement Planning 0 0

Wealth Creation 38 25.3

Children Education/ Marriage 37 24.7

Tax Benefit 28 18.7

To add Diversification in Management 47 31.3

Others 0 0

Others
Frequency Retirement
Planning
0% 0%

To add
Diversification Wealth Creation
in Management 25%
31%
Children
Education/
Tax Benefit Marriage
19% 25%

( Figure No : 6.9)

102
Interpretation: 31.3% respondents purpose is To Add Diversification, 25.3%
respondents purpose is Wealth creation, 24.7% respondents purpose is Children
Education / Marriage and 18.7% respondents purpose is Tax Benefits of
investing in mutual funds

9. Please tick appropriate box according to its importance

by selecting in mutual fund
 Safety

Factors Frequency Percent

Not important 7 4.7

Neutral 29 19.3

important 33 22.0

Very important 81 54.0

Total 150 100

( Table No : 6.10)
60

50

40

30
Series1
20

10

0
not at all Not important Neutral important Very important
important

( Figure No : 6.10)

103
Interpretation: it is conveyed that 54.7% of respondents considered that Safety
is Very important factor, 22% considered Safety important, 19.3% considered
Safety Neutral and and 4.7% considered Safety Not important factor while
investing in Mutual Fund

 Transparency

Factors Frequency Percent

Not important 6 4.0

Neutral 23 15.3

Important 48 32.0

Very important 73 48.7

Total 150 100.0

( Table No : 6.11)

60

50

40

30
Percent
20

10

0
Not at all Not Neutral Important Very
important important important

( Figure No : 6.11)

104
Interpretation: it is conveyed that 48.7% of respondents considered that
Transparency is Very important factor, 32% considered Transparency important,
15.3% considered Transparency Neutral a and 4% considered Transparency
Not important factor while investing in Mutual Fund

 Liquidity

Factors Frequency Percent

Not important 7 4.7

Neutral 28 18.7

Important 48 32.0

Very important 67 44.7

Total 150 100

( Table No: 6.12)

50
45
40
35
30
25
20 Percent

15
10
5
0
not at all Not Neutral Important Very
important important important

( Figure No : 6.12)

105
Interpretation: it is conveyed that 44.7% of respondents considered that
Liquidity is Very important factor, 32% considered Liquidity important, 18.7%
considered Liquidity Neutral and and 4.7% considered Liquidity Not important
factor while investing in Mutual Fund

 Past Return

Factors Frequency Percent

Not important 8 5.3

Neutral 25 16.7

Important 64 42.7

Very important 53 35.3

Total 150 100

( Table No : 6.13)
45
40
35
30
25
20 Percent
15
10
5
0
Not at all Not Neutral Important Very
important important important

( Figure No : 6.13)

106
Interpretation: it is conveyed that 42.7% of respondents considered that Past
returns is Important factor, 35.3% considered Past returns Very important,
16.7% considered Past returns Neutral and and 5.3% considered Past returns
Not important factor while investing in Mutual Fund

 Tax Benefits

Factors Frequency Percent

Not important 4 2.7

Neutral 19 12.7

Important 78 52.0

Very important 49 32.7

Total 150 100

( Table No : 6.14)

107
 60

50

40

30
Percent
20

10

0
not at all Not Neutral Important Very
important important important

( Figure No : 6.14)

Interpretation: it is conveyed that 52% of respondents considered that Tax

Benefit is Important factor, 32.7% considered Tax Benefit Very important,
12.7% considered Tax Benefit Neutral and and 2.7% considered Tax Benefit Not
important factor while investing in Mutual Fund

 Regular Savings

Factors Frequency Percent

Not important 7 4.7

Neutral 18 12.0

Important 81 54.0

Very important 44 29.3

Total 150 100

( Table No : 6.15)

108
 60

50

40

30
Percent
20

10

0
Not at all Not Neutral Important Very
inportant important important

( Figure No : 6.15)

Interpretation : it is conveyed that 54% of respondents considered that Regular

savings is important factor, 29.3% considered Regular savings is very important,
12% considered regular savings is Neutral and and 4.7% considered regular
saving isNot important factor while investing in Mutual Fund

 Diversification Benefit

Factors Frequency Percent

Not important 3 2.0

Neutral 24 16.0

Important 62 41.3

Very important 61 40.7

Total 150 100

( Table No : 6.16)

109
 50
45
40
35
30
25
20 Percent

15
10
5
0
Not at all Not Neutral Important Very
important important important

( Figure No : 6.16)

Interpretation: it is conveyed that 46% of respondents considered that

Diversification Benefit is important factor, 37.3% considered Diversification
Benefit is very important , 16% considered Diversification Benefit is Neutral and
7% considered Diversification Benefit is Not important factor while investing in
Mutual Fund

 Professional Fund Management

Factors Frequency Percent

Not important 1 .7

Neutral 24 16.0

Important 69 46.0

Very important 56 37.3

Total 150 100.0

110
 ( Table No : 6.17)

45
40
35
30
25
20 Percent
15
10
5
0
Not at all Not Neutral Important Very
important important important

( Figure No : 6.17)

Interpretation: it is conveyed that 46% of respondents considered that

Professional fund managements important factor, 37.3% considered Professional
fund managements is very important , 16% considered Professional fund
management is Neutral and and 7% considered Professional fund management
is Not important factor while investing in Mutual Fund

111
  Charges

Factors Frequency Percent

Not important 2 1.3

Neutral 18 12.0

Important 54 36.0

Very imp 76 50.7

Total 150 100.0

( Table No : 6.18)

60

50

40

30
Percent
20

10

0
Not at all Not Neutral Important Very imp
important important

( Figure No : 6.18)

Interpretation: it is conveyed that 50.7% of respondents considered that

Charges are Very important factor, 36% considered Charges are important ,
12% considered Charges are Neutral and 1.3% considered charges are Not
important factor while investing in Mutual Fun

112
  Convince

Factors Frequency Percent

Not important 1 .7

Neutral 20 13.3

Important 54 36.0

Very important 75 50.0

Total 150 100.0

( Table No : 6.19)
60

50

40

30
Percent
20

10

0
Not at all Not Neutral Important Very
important important important

( Figure No : 6.19)

Interpretation : it is conveyed that 50% of respondents considered that

Convince is very important factor, 36% considered Convince is important , 13.3%
considered Convince is Neutral and 7% considered convince is Not important
factor while investing in Mutual Fund

113
10. In which type of fund do you prefer to invest :

Types of Fund Frequency Percentage

Equity 0 0

Debt 38 25.3

Balance 112 74.7

Others 0 0

Total 150 100

( Table No : 6.20)

Equity Debt Balance Others

0% 0%

25%

75%

( Fig. No : 6.20)
Interpretation: 74.7 respondents prefer to invest in Balance Fund and
25.3% respondents prefer to invest in Debt Fund

114
11. For how much time period do you invest in mutual
funds:

Time Period Frequency Percentage

<1 year 0 0

1-3 years 45 30.0

4-6 years 82 54.7

>6 years 23 15.3

Total 150 100

(Table No : 6.21)

Frequency Percentage

90 82
80
70
60 54.7
50 45
40
30
30 23
20 15.3
10
0 0
0
<1 year 1-3 years 4-6 years >6 years

( Figure No : 6.21)

Interpretation: 54.7 % of respondents take 4-6 years , 30% of

respondents take 1-3 years and 15.3% respondents take more than 6
years time period to invest in mutual fund

115
12. Which mode of investment you prefer while investing in
mutual fund:

Mode of Investment Frequency Percentage

Systematic Investment Plan (SIP) 97 64.7

One Time Investment/ Lump Sump 53 35.3

Systematic Transfer Plan ( STP) 0 0

Total 150 100

( Table No : 6.22)

Systematic Investment Plan (SIP) One Time Investment/ Lump Sump

Systematic Transfer Plan ( STP)

0%

35%

65%

( Figure No : 6.22)

Interpretation: 64.7% of respondents prefer Systematic Investment

Plan (SIP) and 35.3% of respondents prefer One Time
Investment/Lump Sump as a mode of investment while investing in
mutual funds.

116
13. Which option to get returns you generally opt for while
buying / investing in mutual fund :

Option To get Return Frequency Percentage

Dividend Payout 0 0

Dividend Reinvestment 35 23.3

Growth 115 76.7

Total 150 100

( Table No : 6.23)

Dividend Payout Dividend Reinvestment Growth

0%

23%

77%

( Figure No : 6.23)

Interpretation: 76.7% respondents opt Growth option and 23.3%

respondents opt Dividend Reinvestment option to get return while
investing in mutual funds

117
14. Through whom do you invest in mutual fund:

Through Whom Frequency Percentage

Through Agent/Advisor/Broker 63 0

Through Bank 15 42.0

Online 72 58.0

Total 150 100

( Table No ; 6.24)

Frequency
Through Agent/Advisor/Broker Through Bank Online

42%
48%

10%

( Figure No : 6.24)

Interpretation: 72% of respondents invest through Online and 15%

respondents invest through Bank and 63 % invest through through
Agent/Advisor/Broker

118
15. Who influence your decision while investing in mutual
funds:

Influence your decision Frequency Percentage

Self Decision 0 0

Family/ Friends/ Relatives 3 2.0

Media Reports 52 34.7

Advertisements 24 16.0

Broker/ Agent / Advisor/ Bank advice 71 47.3

Others 0 0

( Table No : 6.25)

Others Self Decision Family/

0% 0% Friends/
Relatives
2%

Broker/ Agent Media

/ Advisor/ Reports
Bank advice 35%
47%

Advertisemen
ts
16%

( Figure No : 6.25)

119
Interpretation: 47.3% respondents decision influence by
Broker/Agent/Advisor/Bank advice, 34.7% respondents decision influence by
Media Reports,16% respondents decision influence by Advertisement, 2%
decision influence by Family/Friends/Relatives while investing in mutual fund.

16. How frequently do you track fund value of your

mutual fund after investment :

Track Frequency Percentage

Always 0 0

Very Often 14 9.3

Sometimes 95 63.3

Rarely 24 16.0

Never 17 11.3

Total 150 100

( Figure No : 6.26)

120
 Always Very Often Sometimes Rarely Never

0%

11% 9%

16%

64%

( Figure No : 6.26)

Interpretation: 63.3% of respondent sometimes track their fund

value ,16% of respondents Rarely track their Fund values,11.3%of
respondents Never track their fund value , 9.3 % of respondents
Very Often track their fund value of mutual fund after investment

17. Which option you generally prefer while withdrawing

your money in Mutual fund :

Options Frequency Percentage

Lump Sump 0 0

Systematic withdrawal Planning ( SWP) 62 41.3

Partial withdrawal plan 88 58.7

Total 150 100

( Table No : 6.27)

121
 Frequency
Lump Sump
0%

Systematic
withdrawal
Planning (
Partial SWP)
withdrawal 41%
plan
59%

( Figure No : 6.27)

Interpretation: 58.7% of respondents prefer Partial withdrawal

Planning , 41.3% Of Respondents prefer Systematic Withdrawal
Planning while withdrawing money in mutual funds.

122
18. Will you prefer to invest in Mutual Fund over other
investment avenues in future:

Options Frequency Percentage

Definitely Won’t 0 0

Probably Won’t 54 36.0

Can’t Say 84 56.0

Probably Will 10 6.7

Definitely Will 2 1.3

Total 150 100

( Table No : 6.28)

1% 0%
Definitely Won’t Probably Won’t Can’t Say
Probably Will Definitely Will
7%

36%

56%

( Figure No : 6.28)

123
Interpretation : 56% of respondents Can’t Say , 36% of
respondents Probably Won’t, 6.7 % Probably Will , 1.3% of
respondents Definitely Will prefer to invest in mutual fund over
other investment avenues in future.

124
  Testing of Kruiskal Wallis Test

H0: There is no difference in response across the categories of occupation

H1: There is difference in response across the categories of occupation

( Figure No : 6.29)

125
Interpretation : As null Hypothesis is rejected it means there is significance
difference across Safety, transparency, Past Returns, Charges and Convenience
and categories of Occupation and from this it is also concluded that as H 0 is
accepted there is no significance difference across Liquidity, Tax benefit, Regular
Saving, Professional Fund Management ,Diversification Benefits and categories
of Occupation

 Chi Square Test

 Percentage (approximately) of total income invest per annum and

Annual family income (in Rs.)

H0: There is no difference in response between Percentage of total

income invest per annum and Annual family income ( in Rs)
H1: There is difference in response between Percentage of total income
invest per annum and Annual family income ( in Rs)

126
 How many percentage (approximately) of your total income do you invest per
annum * Annual family income (in Rs.) Cross tabulation

Percentage (approximately) Annual family income (in Rs.) Total

of total income invest per
< 150000 to 300001 to >
annum
15000 300000 500000 50000
0 0

10- 2 13 20 5 40
15%

16- 5 15 50 19 89
30%

>30 0 6 10 5 21
%

Total 7 34 80 29 150

( Table No : 6.29)

Chi-Square Tests

Value Df Asymp.
Sig. (2-
sided)

Pearson Chi- 6.236 6 .397

Square a

Likelihood Ratio 7.229 6 .300

Linear-by-Linear 2.120 1 .145

Association

N of Valid Cases 150

( Table No : 6.30)

127
 Interpretation: Here, value of chi square is 0.397( which is greater than
0.05) so there is no significant relation between Percentage of Total
income invest per annum and Annual income ( in Rs)

 Type of fund preferred to invest and Age

H0: There is no difference in response between type of fund prefer to

invest and age
H1: There is difference in response between type of fund prefer to invest
and age

Type of fund you prefer to invest and Age Crosstabulation

Type of Fund Prefer to invest Age Total

18- 31-45 46-60 >60

30 years years years
year
s

Debt 4 18 15 1 38

Balance 12 58 40 2 112

Total 16 76 55 3 150

( Table No : 6.31)

128
 Chi-Square Tests
Value Df Asymp. Sig.
(2-sided)
Pearson Chi- .321a 3 .956
Square
Likelihood Ratio .315 3 .957
Linear-by-Linear .193 1 .660
Association
N of Valid Cases 150
( Table No : 6.32)

Interpretation: Here, value of chi square is 0.956( which is greater than

0.05) so there is no significant relation between Type of fund prefer to
invest and Age

 Influence decision while investing in mutual funds and Educational

Qualification

H0: There is no difference in response between Influence decision while

investing in mutual funds and Educational Qualification
H1: There is difference in response between Influence decision while investing
in mutual funds and Educational Qualification

129
Who influence your decision while investing in mutual funds * Educational
Qualification Cross tabulation

Options Educational Qualification Total

Below Und Gra Post Docto

HSC er duat Grad rate
Grad e uate
uate

Family/ 0 1 1 1 0 3
Friends/Relatives

Media Reports 3 5 18 24 2 52

Advertisement 0 2 11 11 0 24

Broker/ Agent 5 8 12 43 3 71
/Advisor/Bank
advice

Total 8 16 42 79 5 150

( Table No : 6.33)

Chi-Square Tests
Value Df Asymp.
Sig. (2-
sided)
Pearson Chi- 12.98 12 .370
Square 1a
Likelihood Ratio 14.79 12 .253
4
Linear-by-Linear .729 1 .393
Association
N of Valid Cases 150
( Table No : 6.34)

130
Interpretation: Here, value of chi square is 0.370( which is greater than 0.05)
so there is no significant relation between Influence decision while investing in
mutual funds and Educational Qualification

131
 Findings

 59.3 % of respondents invest their income for the investment

 Majority of the respondent considered family/ relatives and agent advisors
as a source of information before purchasing/investing in mutual funds
 Main purpose of investors to invest in mutual fund is to add diversification
 From the important factors which are considered in mutual fund 54.7% of
respondent considered safety as a Very important factor,37.3% of
respondent considered professional fund management and diversification
as an important factor , 18.7% of respondents are neutral and 7%
considered not important the above mentioned factors
 74.7% of investors prefer to invest in Balance Fund
 54.7 % of respondents take 4-6 years of time period to invest in mutual
fund
 64.7% of respondents prefer Systematic Investment Plan (SIP) as a mode
of investment while investing in mutual funds.
 76.7% respondents opt Growth option to get return while investing in
mutual fund
 72% of respondents invest through Online
 47.3% respondents decision influence by Broker/Agent/Advisor/Bank
advice
 63.3% of respondent sometimes track their fund value of mutual fund after
investment
 58.7% of respondents prefer Partial withdrawal Planning while
withdrawing money in mutual funds.
 56% of respondents Can’t Say that they will prefer to invest in mutual
fund over other investment avenues in future.
 50.7% of respondents are of the age of 46-60 years
 48.67% of the respondents are salaried person

132
 52.7% of the respondents having educational qualification of post
graduation
 53.3% of respondents Annual income is 300001 to 500000

133
 Conclusion

From the above report it is concluded People do investment with the

suggestion of their friends and relatives ,agent and advisors also. There
main purpose to invest is to add diversification and for the professional
fund management . Most of them prefer to invest in balance fund so they
can track the value of the fund. So this way mutual fund have become one
of the most attractive way for the average person to invest their savings
A Mutual Fund pools resources from thousands of investors and then
diversifies its investment into many different holdings such as stocks,
bonds or Government securities in order to provide high relative safety
and returns .Also generate leads of the prospective investors in Mutual
Funds for the asset Management Company ( AMC)

There are Many Improvement Pending in the field and it has to happen as
soon as possible so as to call the Mutual Fund industry as an Organized
and well developed sector.

134
7. Bibliography :

135
 Jones, Michael A., Vance P. Lesseig, and Thomas I. Smythe. "Financial
advisors and mutual fund selection." Journal of Financial Planning 18.3
(2005): 64-70.

 Ramasamy, Bala, and Matthew CH Yeung. "Evaluating mutual funds in an

emerging market: factors that matter to financial advisors." International
Journal of Bank Marketing 21.3 (2003): 122-136.

 Bergstresser, Daniel, John MR Chalmers, and Peter Tufano. "Assessing

the costs and benefits of brokers in the mutual fund industry." Review of
Financial Studies (2009): hhp022

 Krumsiek, Barbara J. "The emergence of a new era in mutual fund

investing: Socially responsible investing comes of age." The Journal of
Investing 6.4 (1997): 25-30.

 Deli, Daniel N. "Mutual fund advisory contracts: An empirical

investigation." The journal of finance 57.1 (2002): 109-133.

 Khorana, Ajay, and Henri Servaes. "What drives market share in the
mutual fund industry?." Review of Finance 16.1 (2012): 81-113.

 Khorana, Ajay, and Henri Servaes. "The determinants of mutual fund

starts." Review of Financial Studies 12.5 (1999): 1043-1074.

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 Müller, Sebastian, and Martin Weber. "Financial Literacy and Mutual Fund
Investments: Who Buys Actively Managed Funds?." Schmalenbach
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 Huhmann, Bruce A., and Nalinaksha Bhattacharyya. "Does mutual fund

advertising provide necessary investment information?." International
Journal of Bank Marketing 23.4 (2005): 296-316.

 Grinblatt, Mark, Sheridan Titman, and Russ Wermers. "Momentum

investment strategies, portfolio performance, and herding: A study of
mutual fund behavior." The American economic review (1995): 1088-1105.
 Bollen, Nicolas PB. "Mutual fund attributes and investor behavior." Journal
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 Ranganathan, Kavitha. "A Study of Fund Selection Behaviour of Individual
Investors Towards Mutual Funds-with Reference to Mumbai City." Indian
Institute of Capital Markets 9th Capital Markets Conference Paper. 2006.
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Advisors?." Available at SSRN 1115886 (2008).
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 <https://www.dnb.co.in/BFSI2009/BrokingOverview.asp>.

 <http://business.mapsofindia.com/india-company/top-10-brokerage-
firms.html>.

 <http://www.mydigitalfc.com/mutual-funds/gujarat-investors-love-equity-
funds-delhiites-fancy-debt-778>.

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 <https://www.iciglobal.org/iciglobal/news/news/ci.14_news_icig_globalisati
on.global>.

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 Rao, P. Hanumantha, and Vijay Kr Mishra. "Mutual Fund: A Resource

Mobilizer in Financial Market." (2007).

 Das, Bhagaban, Sangeeta Mohanty, and Nikhil Chandra Shil. "Mutual fund
vs. life insurance: Behavioral analysis of retail investors." International
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 Walia, Nidhi, and Ravi Kiran. "An analysis of investor’s risk perception
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138
139
Annexure:
Respected Sir/Madam,
I, Jyoti B.Dabhi, student of M.B.A from S.R Luthra Institute of Management, I am
conducting survey on ‘’ A Study of Investors’ Buying Behavior Towards
Mutual Funds in Surat city’’ as a part of my curriculum. I request you to spare
few minutes of your valuable time to fill up this questionnaire. I ensure that
information provided by you will be kept confidential and used for academic
purpose only.

Questionnaire
1. How many percentage (approximately) of your total income do you invest per
annum?
( ) < 10% ( ) 10-15%
( ) 16-30% ( ) > 30%
2. Where do you invest your money? (Multiple ticks allowed)
( ) Life Insurance ( ) Bank Fixed Deposit
( ) Real Estate ( ) Gold
( ) NC/ PPF/Post ( ) Share Market
( ) Mutual Fund ( )Others _______________
3 .Which Information sources do you consider before purchasing/ investing in
mutual fund? (Multiple ticks allowed).
( ) Friends / Relatives ( ) TV / Newspaper/Magazine
( ) Broker / Agent / Advisors / Bank ( ) Online
( ) Others ________________
4. What is your purpose of investing in mutual fund?
( ) Retirement Planning ( ) Wealth Creation

( ) Children Education / Marriage ( ) Tax Benefit

( ) To add Diversification in Management ( ) Others ________________

141
5. Please tick appropriate box according to its importance by selecting in mutual
fund?
5=Very important, 4= important, 3= Neutral, 2 = Not important, 1= Not at all
important
1 2 3 4 5

Safety

Transparency

Liquidity

Past Returns

Tax Benefit

Regular Saving

Professional fund
Management

Diversification
Benefits

Charges

Convenience

6. In which type of fund do you prefer to invest?

( ) Equity ( ) Debt
( ) Balance ( ) Others ________________

142
7. For how much time period do you invest in mutual funds?
( ) < 1 year ( ) 1-3 years
( ) 4-6 years ( ) > 6 years
8. Which mode of investment you prefer while investing in mutual fund?
( ) Systematic Investment Plan (SIP) ( ) One Time Investment/ Lump Sump
( ) Systematic Transfer Plan ( STP)
9. Whiich option to get returns you generally opt for while buying / investing in
mutual fund ?
( ) Dividend Payout ( ) Dividend Reinvestment
( ) Growth
10. Through whom do you invest in mutual fund?
( ) Through agent/ advisor/ broker ( ) Through bank
( ) online
11. Who influence your decision while investing in mutual funds?
( ) Self Decision ( ) Family/ Friends/ Relatives
( ) Media Reports ( ) Advertisements
( ) Broker/ Agent / Advisor/ Bank advice ( ) Others ________________

12. How frequently do you track fund value of your mutual fund after investment?
( ) Always ( ) Very Often
( ) Sometimes ( ) Rarely
( ) Never
13. Which option you generally prefer while withdrawing your money in Mutual
fund?
( ) Lump Sump ( ) Systematic withdrawal Planning ( STP)
( ) Partial withdrawal plan
14. Will you prefer to invest in Mutual Fund over other investment avenues in
future?
( ) Definitely Won’t ( ) Probably Won’t
( ) Can’t Say ( ) Probably Will
( ) Definitely Will

143
Personal Details:
Name:
Phone no:
Email Id:
Age: 18-30 year ( ) 31-45 year ( ) 46-60 year ( ) >60 year ( )

Occupation:
( ) Student ( ) Salaried
( ) Self Employed ( ) Housewife
( ) Retire

Educational Qualification:
( ) Below HSC ( ) Under Graduate
( ) Graduate ( ) Post graduate
( ) Doctorate
Annual family income (in Rs.)?
( ) < 150000 ( ) 150000 to 300000
( ) 300001 to 500000 ( ) > 500000

144