A Presentation on Study on Awareness about Mutual Fund in Rajkot City

1. A
SUMMER INTERNSHIP PROJECT REPORT
on
“A Study on Awareness About Mutual Fund In Rajkot City”
For
Kotak Asset Management Company Ltd
Submitted By
Abhimanyu Singh Rajput
Enrolment No.: 147340592001
Marwadi Education Foundation’s Group of Institutions- Rajkot

2. Industry Overview
 The mutual fund industry in India started in 1963 with the formation of Unit Trust of India,
at the initiative of the Govt. of India and Reserve Bank.
 It pools the money of several investors and invests this in stocks, bonds, money market
instruments and other types of securities.
 There are 46 Mutual Fund Companies are operating in the sector, approximately 80 %
of the AUM concentrated with 8 of the leading players in the market
 An asset managed by the Indian mutual fund industry has grown from Rs. 9.91 trillion in
May 2014 to Rs. 12.26 trillion in May 2015.

3. Advantages Of Mutual Fund from customers’
perspective
• Return on investment
• Systematic saving
• Value for money
• Good option as compared to other investment
avenues
• Average ROI (dependent upon market
performance)
• Tax saving

4. Company Overview
• Kotak Mahindra group, established in 1985 by Uday Kotak, is one of India’s leading
financial services conglomerates
• Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned
subsidiary of Kotak Mahindra bank Limited (KMBL), is the Asset Manager for Kotak
Mahindra Mutual Fund (KMMF).
• KMAMC started operations in December 1998 and has approximately 7.5 Lac investors
in various schemes.
• KMMF offers schemes catering to investors with varying risk - return profiles and was the
first fund house in the country to launch a dedicated gilt scheme investing only in
government securities.
• The company is present in 76 cities and has 79 branches.

5. Research Objective
Primary objective
 To measure the awareness of customers towards mutual funds
Secondary objectives
 To study which modes of investments are preferred by the customers.
 To understand important determinants which affect the selection of mutual fund
 To examine the performance of mutual funds and to give suggestions.

6. Review of literature
S Prassanna & S Kumar (2014) mention that the general knowledge & awareness level among the
individual investors are so good. Mutual funds are cornering the maximum attention of the investors in today’s
scenario be it individual or corporate investors.
Desai & Joshi (2013) note that majority of the mutual fund investors invest in insurance sector which
emphasize their demand for safety and security of their funds. Majority of the mutual fund investors consider
balanced funds as a highly important type whereas the least preferred type is the tax saving funds.
Singh and Vanita (2002) The findings of the study were that the investors' preferred to invest in public
sector mutual funds with an investment objective of getting tax exemptions and stayed invested for a
period of 3-5 years and the investors evaluated past performance. The study further concludes by stating
that majority of the investors were dissatisfied with the performance of their mutual fund and belonged to
the category who held growth schemes.

7. Research Methodology
Research Design Descriptive Research
Sampling Method Convenience Sampling
Sample Size 100
Source Of The Data Primary :- Questionnaire
Secondary :- Fact sheet ,
pamphlets, websites, Journal.
Data Collection Instrument Questionnaire
Data Processing Microsoft Excel is used for
Statistical Data processing

8. Analysis Of Data
1) You belong to which of the following Category:
7%
8%
20%
20%
45%
Profession
Government Employee
Self Employed
Professional
Bussiness Person
Agriculturist
Private firm Employee

9. 2)What is percentage of savings from your total income ?
81%
17%
2%
0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
< 25 % < 50 % < 75 % Others
% of Savings

10. 3)What are the factors to which you give priority when you invest ?
52%
30%
11%
5% 2%
Factors
Safety
High Return
Liquidity
Less Risk
Markeability

11. 4) Do you know about Mutual fund ?
66%
34%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
Awareness
Yes
No

12. 5) Do you Invest in Mutual fund ?
45%
55%
0%
10%
20%
30%
40%
50%
60%
Yes No

13. 6) What is your investment pattern ?
18%
33%
49%
0%
10%
20%
30%
40%
50%
60%
Monthly Lump Sum SIP/Lumpsum
Investment Pattern
Investment
Pattern No. Of Investors
Monthly 11
Lump Sum 23
SIP/Lumpsum 34

14. 7) What do you look before investing in particular mutual funds?
0%
10%
20%
30%
40%
50%
60%
NAV Ratings AMC Expert
advise
56%
4%
32%
8%
Criteria
Criteria
No. Of
Investors
NAV 21
Ratings 4
AMC 11
Expert advise 2

15. 8) You have invested in which type of Mutual fund Scheme ?
68%
15%
17%
Mutual Schemes
Equity Fund
Debt Fund
Hybrid Fund

16. 9) Is there any need for creating awareness among the public of
Rajkot about the benefits of Mutual Fund ?
98%
2%
Need For Creating awareness
Yes
No

17. 10)You have not invested in Mutual fund because :
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
A B C D E F
4%
3%
2%
34%
42%
15%
Reason for not investing
Sr.
No Reason for not investing
No. Of
Investors
A It’s not lucrative investment
instrument
4
B
No satisfactory return on
investment compared to others 3
C No safety for funds invested 2
D
Risky investment instrument
34
E No knowledge about how to
invest
42
F It is related to share market So,
it is risky and returns are not
guaranteed
15

18. Findings
 In majority of the respondents the knowledge level is confined to good knowledge.
 Approximately 34% of the respondents do not have proper knowledge about Mutual funds
and 66% of respondents are aware about mutual funds.
 Most of the investors are aware about mutual fund but they are not investing in mutual fund
because of several reasons , some are not investing because it is related to share market
and it is a risky investment instrument
 The investors in Rajkot are potential to invest to in mutual fund they only need proper
guidance and information about mutual fund

19. Limitations
 Time constraint
 Biased answers
 Research limited for Rajkot city only
 Sample size could have been expanded given more time

20. Suggestions
 Mutual fund companies should try to educate the investors to invest in mutual funds through
regular awareness programs
 Mutual Fund Agencies should spread the information about all the aspects of investing in
mutual funds.
 Make investors aware about the benefits of investing mutual fund with their investment
objective. Retail participation in mutual funds is very low. It is therefore, required to increase the
reach by offering solutions to the investors based on their needs

21. Conclusion
 Majority of the mutual fund investors invest Savings bank and Fixed Deposits which
emphasizes their demand for safety and security of their funds.
 68% of investors shows their preference in Equity Schemes which shows that Equity
funds are more preferred by Investors than Debt & Hybrid funds
 We can conclude that from the responses I received that there is a lack of proper
information about the mutual funds and government and mutual fund provider companies
should create more awareness about mutual fund’s benefits.

22. Bibliography
Kumar, S., & Kumar, S. (n.d). “Awareness and Knowledge Of Mutual Fund among the
Investors with reference to Chennai” 2(4), 4-4. doi:2014
Desai, D., & Joshi, M. (n.d). “A Study about Awareness of Mutual Funds Among the Investors
Of Navsari District.” 3(1), 13-13. doi:January 2013
Singh, and Vanita, (n.d). "Mutual Fund Investors' Perceptions and Preferences-A Survey.“3(1),
d.o.i:2002
www.kotak.com
www.assetmanagement.kotak.com
www.amfiindia.com
www.moneycontrol.com
www.valueresearchonline.com