1. ““DESCRIPTIVE STUDY OF MUTUALDESCRIPTIVE STUDY OF MUTUAL
FUNDS AND STUDY OF INVESTORSFUNDS AND STUDY OF INVESTORS
PERCEPTION ABOUT INVESTMENT INPERCEPTION ABOUT INVESTMENT IN
MUTUAL FUNDS”MUTUAL FUNDS”
SUMEET
KHANDELWAL
MBA 3rd
SEM

2. Flow Of PresentationFlow Of Presentation
Objectives of StudyObjectives of Study
Timeline of Mutual FundsTimeline of Mutual Funds
Overview of Mutual Fund IndustryOverview of Mutual Fund Industry
Working of Mutual FundsWorking of Mutual Funds
Company ProfileCompany Profile
Concept of Mutual FundConcept of Mutual Fund
Types of Mutual FundsTypes of Mutual Funds
Role of BrokersRole of Brokers
Bank V/S Mutual FundsBank V/S Mutual Funds
Risk – TypesRisk – Types
Accounting and ValuationAccounting and Valuation
Research MethodologyResearch Methodology
Sample DesignSample Design
Data Analysis and interpretationData Analysis and interpretation
FindingsFindings
LimitationsLimitations
Scope of StudyScope of Study
Recommendation and suggestionsRecommendation and suggestions
Sample Questionnaire

3. OBJECTIVES OF THE STUDYOBJECTIVES OF THE STUDY
To study the Mutual funds industry in brief.To study the Mutual funds industry in brief.
To gain the depth knowledge about the Mutual Funds.To gain the depth knowledge about the Mutual Funds.
To study the Investment procedure in Mutual funds.To study the Investment procedure in Mutual funds.
To study in brief various types Mutual funds.To study in brief various types Mutual funds.
To study the investors Preference regarding InvestmentTo study the investors Preference regarding Investment
in Mutual Funds.in Mutual Funds.
To know about the factor influencing choices of theTo know about the factor influencing choices of the
customer regarding MFcustomer regarding MF
Overall study of the perception of investors regardingOverall study of the perception of investors regarding
MFMF

4. Timeline of Mutual FundTimeline of Mutual Fund
Phase 1. (1964-87) Establishment andPhase 1. (1964-87) Establishment and
growth of Unit Trust of Indiagrowth of Unit Trust of India
Phase 2. (1987-1993) Entry of publicPhase 2. (1987-1993) Entry of public
sector fundssector funds
Phase 3 (1993-96) Emergence of privatePhase 3 (1993-96) Emergence of private
sector fundssector funds
Phase 4 (1996-2004) Growth and SEBIPhase 4 (1996-2004) Growth and SEBI
regulationsregulations
Phase 5 (2004 Onwards) Growth andPhase 5 (2004 Onwards) Growth and
ConsolidationConsolidation

5. OVERVIEW OF MUTUAL FUNDOVERVIEW OF MUTUAL FUND
INDUSTRYINDUSTRY

6. Structure of Mutual Fund IndustryStructure of Mutual Fund Industry
SEBISEBI
SponsorSponsor
TrusteesTrustees
Asset Management CompanyAsset Management Company
Unit HoldersUnit Holders
CustodianCustodian
The Transfer AgentsThe Transfer Agents

7. WORKING OF MUTUAL FUNDWORKING OF MUTUAL FUND

8.  AnandRathi (AR) is a leading full service securities firmAnandRathi (AR) is a leading full service securities firm
providing the entire gamut of financial services.providing the entire gamut of financial services.
 Founded in 1994 by Mr. AnandRathi.Founded in 1994 by Mr. AnandRathi.
 Today has a pan India presence as well as an internationalToday has a pan India presence as well as an international
presence through offices in Dubai and Bangkok.presence through offices in Dubai and Bangkok.
 AR provides a breadth of financial and advisory servicesAR provides a breadth of financial and advisory services
including wealth management, investment banking,including wealth management, investment banking,
corporate advisory, brokerage & distribution of equities,corporate advisory, brokerage & distribution of equities,
commodities, mutual funds and insurance etc.commodities, mutual funds and insurance etc.

9. SERVICESSERVICES
 Call n TradeCall n Trade
 Mutual FundMutual Fund
 Depository servicesDepository services
 CommoditiesCommodities
 IPOsIPOs
 InsuranceInsurance
 Online ReportsOnline Reports
 BondsBonds
 TradingTrading
 CurrencyCurrency
 Premium securitiesPremium securities

10. CONCEPT OF MUTUAL FUNDCONCEPT OF MUTUAL FUND
 A mutual fund is a professionally-A mutual fund is a professionally-
managed firm of collective investmentsmanaged firm of collective investments
that pools money from many investorsthat pools money from many investors
and invest it in stocks, bonds etc.and invest it in stocks, bonds etc.
 Mutual fund have a fund manager whoMutual fund have a fund manager who
invests the money on behalf of theinvests the money on behalf of the
investors by buying/selling stocks,investors by buying/selling stocks,
bonds etc.bonds etc.
 A Mutual Fund is a trust registered withA Mutual Fund is a trust registered with
the Securities and Exchange Board ofthe Securities and Exchange Board of
India (SEBI).India (SEBI).

11. Pros and Cons of MutualPros and Cons of Mutual
FundsFunds
AdvantagesAdvantages
Portfolio DiversificationPortfolio Diversification
ProfessionalProfessional
ManagementManagement
Low CostLow Cost
LiquidityLiquidity
TransparencyTransparency
FlexibilityFlexibility
AffordabilityAffordability
Well RegulatedWell Regulated
DisadvantagesDisadvantages
No GuaranteeNo Guarantee
Fees and CommissionFees and Commission
TaxesTaxes
Management RiskManagement Risk

12. Categories of Mutual FundCategories of Mutual Fund

13. RISK Vs. RETURN

14. Role of Brokers in a Mutual FundRole of Brokers in a Mutual Fund
They enable the investment managers to buyThey enable the investment managers to buy
and sell securities.and sell securities.
Brokers are the registered members of the stockBrokers are the registered members of the stock
exchange.exchange.
They charge a commission for their services.They charge a commission for their services.
In some cases, provide investment managersIn some cases, provide investment managers
with research reports.with research reports.
Act as an important source of marketAct as an important source of market
information.information.

15. CATEGORY BANKS MUTUAL
FUNDS
Returns Low High
Administrative exp. High Low
Risk Low Moderate
Investment options Less More
Network High penetration Low but improving
Liquidity At a cost Better
Quality of assets Not transparent Transparent
BANK V/S MUTUAL FUNDSBANK V/S MUTUAL FUNDS

16. RISKS ASSOCIATED WITHRISKS ASSOCIATED WITH
MUTUAL FUNDSMUTUAL FUNDS

17. ACCOUNTING AND VALUATIONACCOUNTING AND VALUATION
Net Asset ValueNet Asset Value (NAV)(NAV)
Calculation of Net Asset ValueCalculation of Net Asset Value
NAV =NAV = Market value of investmentsMarket value of investments
+ Current assets and other assets+ Current assets and other assets
+ Accrued income+ Accrued income
- Current liabilities and other liabilities- Current liabilities and other liabilities
- Accrued expenses- Accrued expenses

18. RESEARCH METHODOLOGYRESEARCH METHODOLOGY
Research ObjectiveResearch Objective: “: “STUDY OF INVESTORSSTUDY OF INVESTORS
PERCEPTION ABOUT INVESTMENT INPERCEPTION ABOUT INVESTMENT IN
MUTUAL FUNDS”MUTUAL FUNDS”
» Research DesignResearch Design:: ANALYTICALANALYTICAL
» Data Collection MethodData Collection Method: SURVEY: SURVEY
» Research InstrumentResearch Instrument:: QUESTIONNAIREQUESTIONNAIRE

19. SAMPLE DESIGNSAMPLE DESIGN
» Sample SizeSample Size:: 100100
» Sampling TechniqueSampling Technique::NONPROBABILITYNONPROBABILITY
SAMPLING TECHNIQUESAMPLING TECHNIQUE
» Data SourceData Source:: PRIMARYPRIMARY
» Sampling MethodsSampling Methods:: TABLES ,CHARTS,GRAPHSTABLES ,CHARTS,GRAPHS
» PlacePlace:: JAIPURJAIPUR
» Type Of QuestionsType Of Questions:: CLOSE-ENDEDCLOSE-ENDED
» Number Of QuestionsNumber Of Questions: 12: 12

20. DATA ANALYSISDATA ANALYSIS
&&
INTERPRETATIONINTERPRETATION

21. 1.Do you invest in Mutual Funds?1.Do you invest in Mutual Funds?
63%
28%
9%
yes
no
earlier,now
stopped

22. 2. What is your Experience in the2. What is your Experience in the
market?market?
Experience
26%
21%
53%
Less Than a Year
1-4 Years
More Than 4
Years

23. 3.What is your Trading Preference?3.What is your Trading Preference?
Trading Preference
28%
56%
16%
Speculation
Investment
Both

24. 4.What is your Average investment4.What is your Average investment
period?period?
Less Than
3 months
3-9 Months 9 months -
2 Year
More Than
2 Year
S1
23%
10%
42%
25%
0%
50%
Investment Period
Average Investment Period
Series1 23% 10% 42% 25%
Less Than 3-9 Months 9 months - More Than

25. 5. Factors influencing the5. Factors influencing the
investment decisions?investment decisions?
32%
10%
6%
20%
30%
2%
0%
10%
20%
30%
40%
Factors Influencing Investment
Series1 32% 10% 6% 20% 30% 2%
Broke News Magzi Frien Self Other

26. 6.How much Risk are you willing to6.How much Risk are you willing to
take?take?
0% 20% 40% 60%
Low
High
Moderate

27. 7.How much Appreciation do you7.How much Appreciation do you
expect from your Investments?expect from your Investments?
Expected Rise In Income
48%
32%
12%
8%
Upto 15%
15-25%
25-35%
More than 35%

28. 8. What is your preference in8. What is your preference in
Mutual Funds?Mutual Funds?
Preference in Mutual Funds
19%
18%
20%
9%
15%
17%
2%
Equity Balanced Income Money Market
ELSS SIP Others

29. 9.How much loss are you willing to9.How much loss are you willing to
take?take?
53%
35%
12%
0%
10%
20%
30%
40%
50%
60%
Percentage
Less than 5% 5-10% More Than
10%
Category
Loss Willing To Take

30. 10. Which type of Mutual funds do10. Which type of Mutual funds do
you prefer?you prefer?
Type of Schemes
56%
44%
Closed Ended Funds Open Ended Funds

31. 11.Do you get influenced by the name of11.Do you get influenced by the name of
Company promoting Mutual Funds?Company promoting Mutual Funds?
23%
56%
21%
0%
10%
20%
30%
40%
50%
60%

32. 12.Do you get influenced by the returns given by12.Do you get influenced by the returns given by
a fund or by the current NAV of a fund?a fund or by the current NAV of a fund?
23%
56%
21%
0%
10%
20%
30%
40%
50%
60%
BY NAV RETURNS Both

33. FINDINGSFINDINGS
 People with less experience were inclined towards investmentPeople with less experience were inclined towards investment
in the Mutual Funds.in the Mutual Funds.
 48% respondents reflected confidence and optimism in the48% respondents reflected confidence and optimism in the
context of their investments.context of their investments.
 Mutual Funds are more of an investment option than theMutual Funds are more of an investment option than the
speculative avenue.speculative avenue.
 Income funds and ELSS are among the few top fundsIncome funds and ELSS are among the few top funds
 People are not willing to take much risk and bear loss.People are not willing to take much risk and bear loss.
 Broker’s advice matters to as much as 32% of the people.Broker’s advice matters to as much as 32% of the people.

34. Limitations FacedLimitations Faced
Some people were not willing to disclose theSome people were not willing to disclose the
investment profile.investment profile.
The biasedness was being taken care of.The biasedness was being taken care of.
The area of sample was decided after taking intoThe area of sample was decided after taking into
consideration the major factors likeconsideration the major factors like
 Availability of investorsAvailability of investors
 Approachability,Approachability,
 Time available with investor for interaction, etcTime available with investor for interaction, etc

35. Scope of the StudyScope of the Study
Provide information about prospectiveProvide information about prospective
investors .investors .
Provide key information about the investor’sProvide key information about the investor’s
perception and preferences.perception and preferences.
Provides the problems related to distribution ofProvides the problems related to distribution of
Mutual Fund.Mutual Fund.
Provides the complete information about allProvides the complete information about all
close competitors in Mutual Fund investment.close competitors in Mutual Fund investment.
Provides the AMC a feedback from customersProvides the AMC a feedback from customers
regarding their problems and perception aboutregarding their problems and perception about
investing in mutual funds so that they caninvesting in mutual funds so that they can
improve their servicesimprove their services

36. RECOMMENDATIONSRECOMMENDATIONS
 First Aid Kit for New Entrant into SecuritiesFirst Aid Kit for New Entrant into Securities
MarketMarket
 Provision for Class Room training for the newProvision for Class Room training for the new
investorsinvestors
 Toll Free NumberToll Free Number
 Customer Care for general query handleCustomer Care for general query handle
 More Appointments of Relationship managersMore Appointments of Relationship managers

37. SAMPLESAMPLE QUESTIONNAIREQUESTIONNAIRE
Name: ...…………………….. Occupation: ………………………Name: ...…………………….. Occupation: ………………………
Phone: ...……………………..Phone: ...……………………..
Investment Presently Held:Investment Presently Held:
Please list the value of the assets in your total investments portfolio :( in Rs.)Please list the value of the assets in your total investments portfolio :( in Rs.)
Stocks: ______Stocks: ______ Mutual Funds: _______Mutual Funds: _______
Bonds: ______Bonds: ______ Bullion: _______Bullion: _______
Options: ______Options: ______ Govt. Securities:_______Govt. Securities:_______
Real Estate: ______Real Estate: ______ Bank Deposits: _______Bank Deposits: _______
(1(1) Over the next 3-5 years, do you expect your annual income to change?) Over the next 3-5 years, do you expect your annual income to change?
IncreaseIncrease DecreaseDecrease
Remain the sameRemain the same
(2) Do you invest in Mutual Funds?(2) Do you invest in Mutual Funds?
YesYes NoNo
Earlier, now stoppedEarlier, now stopped

38. (3) What is your Experience in the market?(3) What is your Experience in the market?
Less than a yearLess than a year 1-4 years1-4 years MoreMore
than 4 yearsthan 4 years
(4) What is your Trading Preference?(4) What is your Trading Preference?
SpeculationSpeculation InvestmentInvestment BothBoth
(5) What is your Average investment period?(5) What is your Average investment period?
Less than 3 months.Less than 3 months. 3 to 9 months.3 to 9 months.
9 months to 2 year.9 months to 2 year. More than 2 year.More than 2 year.
(6) Factors influencing the investment decisions?(6) Factors influencing the investment decisions?
Advice from BrokerAdvice from Broker Current newsCurrent news
Reviews in Financial MagazinesReviews in Financial Magazines Advice from FriendsAdvice from Friends
Self EvaluationSelf Evaluation
Others___________Others___________
(7) How much Risk are you willing to take?(7) How much Risk are you willing to take?
HighHigh LowLow ModerateModerate
(8) What is your preference in Mutual Funds?(8) What is your preference in Mutual Funds?
A. Equity.A. Equity. B. IncomeB. Income
C.C. Money Market FundsMoney Market Funds D. ELSSD. ELSS
E.E. Balanced FundsBalanced Funds F. SIPF. SIP
G.G. OthersOthers

39. (9) How much Appreciation do you expect from your Investments?(9) How much Appreciation do you expect from your Investments?
up to 15%up to 15% 15%-25%15%-25% 25%-35%25%-35%
more than 35%more than 35%
(10) How much loss are you willing to take?(10) How much loss are you willing to take?
HighHigh ModerateModerate LowLow
(11) Which type of Mutual funds do you prefer?(11) Which type of Mutual funds do you prefer?
Open Ended SchemesOpen Ended Schemes Closed Ended SchemesClosed Ended Schemes
(12) Do you get influenced by the name of Company promoting Mutual Funds?(12) Do you get influenced by the name of Company promoting Mutual Funds?
NoNo YesYes
(13) Do you get influenced by the returns given by a fund or by the current NAV of a(13) Do you get influenced by the returns given by a fund or by the current NAV of a
fund?fund?
By NAVBy NAV By ReturnsBy Returns BothBoth

40. Thanks for your co-operation