2. ACKNOWLEDGEMENT
I would like to appreciate everyone who helped me to make this report and
without their support, the report would not be able to complete . And I would like
to express my gratitude to my college and deep regards to Dr. Gulshan
Gidwani our honorable principal and Mrs. Stella Ambrose our vice principal .
I would like to thank Mrs. Amrita Basu for
helping us to make this report .Without her participation and help it would be very
difficult for us to make the report . With the help Basu ma’am we gained lots of
information and is able to complete this project report easily.
I would like to thank almighty , my parents, my
friends for their supportand constant encouragement and lastly I would like to
express my gratitude to all those who directly or indirectly helped me and
supported me in this report.
ABSTRACT
This research is “MUTUAL INVESTMENTS ARE BETTER THAN OTHER
INVESTMENTS”, And the existing literature says that mutual investments are
better than other investments. This report agrees the existing literature.
The sample size of my project is limited to
30 people and data has been collected from those 30 people in Lohegaon, Pune
through questionnaire and personal interviews. Data analysis has been conducted
and the final result is, that null hypothesis (H0) has been proved correct, i.e mutual
investments are better than other investments.
3. INDEX
S.NO TOPIC PAGE NO.
1. a.) Nature
b.) Executive summary
c.) Scope
2-3
2. Research Methodology 4-5
3. Data analysis and Data interpretation 6-15
4. Result and Interpretation 16-17
5. Recommendation 18
6. Bibliography 19
7. Questionnaire 20-23
4. NATURE
In this hypothesis testing , A null hypothesis is taken in which it is assumed that
“MUTUAL INVESTMENTS ARE BETTER THAN OTHER INVESTMENTS”
which I will prove by conducting a survey among 30 peoples stays at Lohegaon,
Pune with the help of questionnaire and by taking personal interviews. With the
help of the answers given by those 30 people I will present the data in proper
format using pie charts, line graphs etc and according to the data available I will
conclude the result of the survey.
So, H0 (i.e. null hypothesis) =>”MUTUAL FUNDS ARE BETTER THAN
OTHER INVESTMENTS”
EXECUTIVE SUMMARY
A mutual fund is a scheme in which several people invest their money for a
common financial cause. The collected money invests in the capital market and the
money, which they earned, is divided based on the number of units , which they
hold.
This project gave me a great learning experience and at the same time
it gave me enough scopeto implement my analytical ability. The analysis and
advise presented in this project report is based on market research on the saving
and investment practices of the investors and preference of the investors for
investing in mutual funds. This project will help to know about the investors ‘
preference in mutual fund’ means Are they prefer any particular asset management
company (AMC), which type of product they prefer, which option (growth or
dividend) they prefer or which investment strategy they follow (systematic
investment plan or one time plan).
5. The project consists of data and analysis
collected through survey done on 30 people. For the collection of primary data I
made a questionnaire and surveyed 30 people. I also taken interview of many
people those who were coming at SBI Branch where I done my project. This
project covers the topic “THE MUTUAL INVESTMENTS ARE BETTER THAN
OTHER INVESTMENTS.” The data collected has been well organized and
presented. I hope the research findings and conclusion will be of use.
SCOPE
A big boomhas been witnessed in mutual fund industry in recent times. A large
number of new players have entered the market and trying to gain market share in
this rapidly improving market.
The research was carried on through questionnaire. I surveyed on my project topic
“a study of preferences of the investors for investment in mutual fund” on the
visiting customers of the SBI Lohegaon Branch.
The study will help to know the preferences of the customers, mode of investment,
option for getting return and so on they prefer. This project report may help the
company to make further planning and strategy.
6. RESEARCH METHODOLOGY
This report is based on primary as well secondarydata, however primary data
collection was given more importance since it is overhearing factor in attitude
studies. One of the most important users of research methodology is that it helps in
identifying the problem, collecting, analyzing the required information data and
providing an alternative solution to the problem .It also helps in collecting the vital
information that is required by the top management to assist them for the better
decision making bothday to day decision and critical ones.
Data sources:
Research is totally based on primary data. Secondary data can be used only for the
reference. Research has been done by primary data collection, and primary data
has been collected by interacting with various people. The secondarydata has been
collected through various journals and websites.
Duration of Study:
The study was carried out for a period of one month, from 23rd august to 24th
September 2016.
7. SAMPALING
Sampling procedure:
The sample was selected of them who are the customers/visitors of State Bank of
India, Lohegaon Branch, irrespective of them being investors or not or availing the
services or not. It was also collected through personal visits to persons, by formal
and informal talks and through filling up the questionnaire prepared.
Sample size:
The sample size of my project is limited to 30 people only. Out of which only 21
people had invested in Mutual Fund. Other 7 people did not have invested in
Mutual Fund.
Sample design:
Data has been presented with the help of bar graph, pic charts, line graphs etc.
Limitation:
1. Some of the persons were not so responsive.
2. Possibility of error in data collection becausemany of investors may have not
given actual answers of my questionnaire.
3. Some respondents were reluctant to divulge personal information which can
affect the validity of all responses.
4. The research is confined to a certain part of Pune.
8. ANALYSIS AND INTERPRETATION OF THE DATA
(I) Age distribution of the investors
Age
group
<=30 31-35 36-40 41-45 46-50 >50
No. of
investors
1 3 6 5 4 2
INTERPRETATION-
According to this chart out of 30 mutual fund investors of Lohegaon, PUNE , the
most are in the age group of 36-40 years , the second most investors are in the age
group of 41-45 years and the least investors are in the age group of below 30 years.
0
1
2
3
4
5
6
7
<=30 31-35 36-40 41-45 46-50 >50
NO.OFINVESTORS
AGE GROUP OF INVESTORS
9. (II) Educational qualification of investors
Educational qualification Number of investors
Graduate/ post graduate 17
Under graduate 3
Others 1
Total 21
INTERPRETATION-
Out of 21 mutual fund investors 81% of the investors in Lohegaon, Pune are
graduate/ postgraduate, 14% are under graduate and 5% are others (under
HSC).
81%
14%
5%
Graduate/Post Graduate
Under Graduate
others
10. (III) Occupation of the investors
Occupation No. of investors
Govt. services 3
Pvt. Services 10
Business 6
Agriculture 1
Others 1
INTERPRETATION-
In occupation group out of 21 investors, 48% are Pvt. Employees, 29% are
Businessman, 14% are Govt. employees, 4% are in agriculture and 5% are in
others.
0
2
4
6
8
10
12
Govt. services Pvt. Services Business Agriculture Others
NO.OFINVESTORS
OCCUPATION
11. (IV) MONTHLY FAMILY INCOMES OF INVESTORS
INCOME GROUP NO. OF INVESTORS
<=10,000 2
10,001- 15,000 3
15,001- 20,000 4
20,001- 30,000 8
>30,000 6
.INTERPRETATION-
In the income group of investors out of 21 people , 38% investors i.e. the
maximum investors are in the monthly income group Rs. 20,001 to
Rs.30,000, second one i.e. 29 % investors are in the monthly income group
of more than Rs.30,000 and the minimum investors i.e. 5% are in the
monthly group of below Rs.10,000.
0
1
2
3
4
5
6
7
8
9
<=10,000 10,001-15,000 15,001-20,000 20,001-30,000 >30,000
NO.OFINVESTORS
INCOME GROUP
12. (V) INVESTORS INVESTED IN DIFFERENT KIND OF
INVESTMENTS
Kind Of Investments No. Of Respondents
Saving A/C 28
Fixed deposits 25
Insurance 27
Mutual Funds 21
Post Office (NSC) 17
Shares/Debentures 14
Gold/Silver 15
Real Estate 18
INTERPRETATION-
From the above graph it can be inferred that out of 30 people, 93% people have
invested in savings A/C, 90% people have invested in Insurance, 83% people have
invested in FDs , 70% people have invested in Mutual Funds, 60% people have
invested in real states, 56% in postoffice, 50% in Gold/Silver and 46% in shares
or debentures.
0 5 10 15 20 25 30
Saving A/C
Fixed deposits
Insurance
Mutual Funds
Post Office (NSC)
Shares/Debentures
Gold/Silver
Real Estate
No. Of Respodents
kindOfInvestments
13. (VI) PREFERNCE OF FACTORS WHILE INVESTING
Factors (a)Liquidity (b)Low
Risk
(c)High
Return
(d)Trust
No. of
Respondents
5 8 13 4
INTERPRETATION-
Out of 30 people 43% people prefer to invest where there is high return,
26% prefer to invest where there is low risk, 17% prefer easy liquidity and
14% prefer trust.
17%
26%
43%
14%
Liquidity
Low Risk
High Return
trust
14. (VII) AWARENESS ABOUT MUTUAL FUND AND ITS
OPERATIONS
RESPONSE YES NO
NO. OF
RESPONDENTS
24 6
INTERPRETATION-
From the above chart it is inferred that 80% people are aware of mutual fund
and its operations and 20% are not aware of Mutual Fund and its operations.
80%
20%
YES
NO
15. (VIII) SOURCES OF INFORMATION FOR CUSTOMERS ABOUT
MUTUAL FUND
Sources Of Information No. Of Respodents
Advertisement 3
Peer Group 5
Financial Advisors 11
Bank 7
INTERPRETATION-
From the above chart it can be inferred that the financial advisor is the most
important source of information about Mutual Fund. Out of 26 respondents
42% know about Mutual Fund through financial advisor, 27% through bank,
19% through Peer Group and 12% through Advertisement.
0
2
4
6
8
10
12
Advertisement Peer Group Financial Advisors Bank
No.ofRespodents
Sources ofInformation
16. (IX) INVESTORS INVESTED IN MUTUAL FUND
Response No. Of Respondents
YES 21
NO 7
TOTAL 30
INTERPRETATION-
Out of 30 people, 70%have invested in Mutual Fund and 30% do not have
invested in Mutual Fund.
70%
30%
YES
NO
17. (X) REASONS FOR NOT INVESTEDIN MUTUAL FUND
Reasons No. Of Respondents
Not Aware 4
Higher Risk 1
Not Any Specific Reason 2
INTERPRETATION -
Out of 7 people, who have not invested in Mutual Fund, 57% not aware of
Mutual Fund, 29% said there is likely to be higher risk and 14% do not have
any specific reason.
57%
14%
29%
Not Aware
Higher Risk
Not Any Specific
Reason
18. RESULTS
In Lohegaon,Pune in the Age Group of 36-40 years were more in numbers. The
second most Investors were in the age group of 4 1-45 years and the least were in
the age group of below 30 years.
In Lohegaon, Pune most of the Investors were Graduate or PostGraduate and
below HSC there were very few in numbers.
In Occupation group most of the Investors were Private employees, the second
most Investors were govt. employees and the least were associated with
Agriculture.
In family Income group, between Rs. 20,001- 30,000 were more in numbers, the
second most were in the Income group of more than Rs.30,000 and the least were
in the group of below Rs. 10,000.
About all the Respondents have a Saving A/c in Bank. 76% Invested in Fixed
Deposits and Only 70% Respondents invested in Mutual fund.
Mostly Respondents preferred High Return while investment, the second most
preferred Low Risk then liquidity and the least preferred Trust.
Only 80% Respondents were aware about Mutual fund and its operations and 20%
were not.
Among 30 Respondents only 70% had invested in Mutual Fund and 30% did not
have invested in Mutual fund.
Out of 7 Respondents 57% were not aware of Mutual Fund, 29% told there is not
any specific reason for not invested in Mutual Fund and 14% told there is likely to
be higher risk in Mutual Fund.
19. CONCLUSION
Running a successfulMutual Fund requires complete understanding of the
peculiarities of the Indian StockMarket and also the psyche of the small investors.
This study has made an attempt to understand the financial behavior of Mutual
Fund investors. Many of people do not have invested in mutual fund due to lack of
awareness although they have money to invest. As the awareness and income is
growing , the number of mutual fund investors are also growing. Financial
Advisors are the most preferred channel for the investment in mutual fund. They
can change investors’ mind from one investment option to others.
INTERPRETATION
Mutual Fund Investments are better than other Investments, we can say this
because other investments such as fixed deposits, bonds and debentures, life
insurance, investment in real estates, etc. are less preferred by people compared to
mutual fund investments.
Fixed deposits are unsecured borrowings by the company
accepting the deposit. Credit rating of the fixed deposit program is an indication of
the inherent default risk in the investment, whereas in the case of mutual
investment the moneys of investors in a mutual fund scheme are invested by the
AMC in specific investments under that scheme. Similarly if we see case insurance
then occasionally on account of market inefficiencies or mis-pricing of products in
india, life insurance products have offered a return that is higher than a comparable
“safe” fixed return security, but such opportunities are not sustained in long run,
whereas mutual investments need not to deal with such things.
Since by comparing
mutual fund investments with other investments and taking the views of 30 people
on whom I conducted my survey through questionnaire and personal interviews, I
got to know that more people prefer to invest in mutual fund investment rather than
other investments because they are better.
Hence it proves null
hypothesis (H0) i.e. “MUTUAL FUND INVESTMENTS ARE
BETTER THAN OTHER INVESTMENTS.” Is correct.
20. SUGGESTIONS OR RECOMMENDATIONS
The most vital problem spotted is of ignorance. Investors should be made aware of
the benefits. Nobody will invest until and unless he is fully convinced. Investors
should be made to realize that ignorance is no longer bliss and what they are losing
by not investing.
Mutual funds offer a lot of benefit which no other single option could offer. But
most of the people are not even aware of what actually a mutual fund is’? They
only see it as just another investment option. So the advisors should try to change
their mindsets. The advisors should target for more and more young investors.
Young investors as well as persons at the height of their career would like to go for
advisors clue to lack of expertise and time.
Mutual Fund Company needs to give the training of the Individual Financial
Advisors about the Fund/Scheme and its objective, because they are the main
sourceto influence the investors.
Before making any investment Financial Advisors should first enquire about the
risk tolerance of the investors/customers, their need and time (how long they want
to invest). By considering these three things they can take the customers into
consideration.
Younger people aged under 35 will be a key new customer group into the future,
so making greater efforts with younger customers who show some interest in
investing should pay off.
Customers with graduate level education are easier to sell to and there is a large
untapped market there. To succeed however, advisors must provide sound advice
and high quality.
21. BIBLIOGRAPHY
MUTUAL FUND HAND BOOK
FACT SHEET AND SATATEMENT
WWW.AMFIINDIA.COM
WWW.ONLINERESEARCHONLINE.COM
WWW.MUTUALFUNDINDIA.COM
OUTLOOK MONEY
NEWS PAPERS
22. QUESTIONNAIRE
A STUDY OF PREFERNCES OF THE INVESTORS FOR THE
INVESTMENT IN MUTUAL FUNDS
(I). Personal Details:
(a). Name:
(b). Address: (c).Phone:
(d). Age:
CHOOSE ONE OPTION FOR EACH QUESTION AND TICK(√) YOUR
ANSWER :
(II). Qualification:
1. Graduation/PG
2. Under Graduate
3. Others
(III). Occupation:
1. Govt. Services
2. Pvt. Services
3. Business
4. Agriculture
5. Others
23. (IV). What is your monthly family income approximately’?
1. Up to 10,000
2. Rs.10.001 to Rs.15,000
3. Rs.15.001 to Rs.20,000
4. Rs.20.001 to Rs.30,000
5. Rs.30,001 and above
(V). What kind of investments you have made so far?
(All applicable, If required).
1. Saving account
2. Fixed deposits
3. Insurance
4. Mutual Fund
5. Post Office-NSC, etc
6. Shares/Debentures
7. Gold/ Silver
8. Real Estate
24. (VI). ‘While investing your money, which factor will you prefer?
1. Liquidity
2. Low Risk
3. High Return
4. Trust
(VII). Are you aware about Mutual Funds and their operations?
1. Yes
2. No
(VIII). If yes, how did you know about Mutual Fund?
1. Advertisement
2. Peer Group
3. Banks
4. Financial Advisors
25. (IX). Have you ever invested in Mutual Fund?
1. Yes
2. No
(X). If not invested in Mutual Fund then why?
1. Not aware of MF
2. Higher risk
3. Not any specific reason
