MUTUAL FUNDS

2010

A Summer Project (2009- 2011) By Anuradha Mathuria Jayoti Vidhyapeeth Womens University, Jaipur

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CERTIFICATION
This is to certify that this dissertation Mutual Funds Advisory is the work done by ANURADHA MATHURIA, student of MBA 0911, JAYOTI VIDYA PEETH WOMEN'S UNIVERSITY JAIPUR. This dissertation has the requisite standard for the fulfillment of the Post Graduate Program in Business Administration and has been done under my guidance and supervision during the period 3 JUNE 2010 to 28 July 2010. This dissertation report has not been submitted to any other institution for any kind of assessment or consideration, to the best of my knowledge.

FACULTY MENTOR Prof. BALRAM CHAUADHARY JAYOTI VIDYA PEETH WOMEN'S UNIVERSITY JAIPUR

ACKNOWLEDGEMENT
This report is a synergetic product of many minds. I am grateful for the inspiration and wisdom of all those who were with me in this journey. I am sincerely thankful to JAYOTI VIDYA PEETH WOMEN'S UNIVERSITY, JAIPUR for providing me with the opportunity to write a research paper in the form of a dissertation on the topic Mutual Funds Advisory. To begin with my faculty mentor Prof. BALRAM CHAUADHARY, JAYOTI VIDYA PEETH WOMEN'S UNIVERSITY, JAIPUR who encouraged me to do my best.

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Without his support it would have been very difficult for me to prepare the paper so meaningful. I am also thankful to him for his guidance that helped me improve a lot. Besides this I would like to declare that this study would not have been possible without the guidance of Mr. Rajat Saxena, Branch Manager and my superiors at THE ROYAL BANK OF SCOTLAND N.V., Agra. I thank all the people whose support made it possible for me to fulfill this study. Through this research paper I have learnt a lot about the Mutual Funds as a whole and hope that this research paper will help all those Investors which are already or planning to start the process of Financial planning. ANURADHA MATHURIA En. No. JV-M/09/1101

TABLE OF CONTENTS
S.NO 1 TOPIC RBS Introduction Executive Summary Introduction Mission Statement Vision Statement RBS Global Network Mutual Fund Advisory Introduction History Myths Facts Advantage & Disadvantage Types of Mutual Fund Structure of Mutual Fund Page No.

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Introduction Statement of Problem Research problem Objectives Limitations of Study Research methodology Field of study Research Design Sampling Instrument of data collection Sources of data Scaling techniques Data analysis introduction Data analysis and Interpretation Frequency tables Cross tabulations Chi- Square Test & interpretations Suggestions Conclusion Bibliography Questionnaire

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Executive Summary
THE ROYAL BANK OF SCOTLAND N.V. is one of the largest foreign bank in India and a thoroughly established banking chain throughout the world. An extensive network of branches in India and international branches makes it one of the largest banks in the world today. THE ROYAL BANK OF SCOTLAND N.V. aggressively promotes Pay for Performance Culture with an objective to encourage a work environment of high performance and merit based compensation.

INTRODUCTION
THE ROYAL BANK OF SCOTLAND N.V. is the second largest bank in the UK and ranks sixth in the world. It employs over 180,000 staff worldwide and in addition to the provision of a full range of banking services under the one roof of THE ROYAL BANK OF SCOTLAND N.V. and Nat West brands, the group also comprises many other leading financial organizations including Direct Line and Coutts Private Banking.

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MISSION STATEMENT
To deliver superior sustainable value we run our business with integrity and openness, delivering optimum financial results within clearly defined business principles

VISION STATEMENT
The goal of THE ROYAL BANK OF SCOTLAND N.V. is to create value for its clients. Key in our relationship approach is a constant focus on the financial services needs of our client segments. It is through the professionalism and motivation of our global staff that we realize this value, resulting in maximum economic value for our shareholders.

RBS GLOBAL NETWORK

We have over 40 million customers using the financial services of over 30 brands around the world.

List of CountriesEurope, Middle East & Africa1. 2. 3. 4. 1. 2. 3. Austria Belgium Channel Islands Czech Republic Denmark Egypt Finland 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Greece Ireland Italy Kazakhstan Luxembourg Netherlands Norway Poland -5Portugal Romania 21. Russia 22. Slovakia 23. South Africa 24. Spain 25. Sweden 26. Switzerland 27. Turkey 28. Untied Arab Emirates 29. United Kingdom 30. Uzbekistan

4. France 5. Germany 6. Gibraltar

North America & Canada1. United State 2. Canada Latin America1. 2. 3. 4. 5. Argentina Chile Colombia Mexico Venezuela

Asia Pacific1. 2. 3. 4. 5. 6. 7. 8. Australia China Hong Kong Indonesia Japan Malaysia Pakistan Republic Korea 9. Singapore 10. Taiwan 11. Thailand

of

RBS BRANCH IN INDIA

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Agra Ahmedabad Bangalore Baroda Chennai Delhi Gurgaon Hyderabad Jalandhar Jodhpur Kolhapur Kolkata Lucknow Mangalore Moradabad Mumbai Noida Panipat Pune Salem

Type OF Services/ Product offered by RBS N.V. in India:

RBS offers a variety of services/ Product. It is impossible to list down each and every services/ Product but out of all the activity some of them are listed

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below: Consumer/ Commercial banking accounts Van Gogh Preferred banking accounts Trade and FX Transactions Investment Advisory/ Accounts for Mutual Fund Investment Advisory/ Accounts for Insurance through its Channel Partner Aviva And many many more.

S.W.O.T

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Strengths:
Since RBS is a multinational company itself, it is well-qualified to advise other companies on aspects of international business. With offices around the world, for the cosmopolitan client, RBS often cannot be beaten in this area. RBS knows how to succeed in M&A and organic and effective growth. As every one knows that China is the place to be now a days for businesses and banks. The best news for RBS is that as other companies grow in China, it does, too, because it gains new clients and new global opportunities with each passing day. RBS has the largest network of any foreign bank in China and deeply understands the Chinese market and customer. In a world that is increasingly going China's way, this is quite a boon to RBS. RBS is primarily listed on the London. Which saves the company much grief in complying with new American Sarbanes-Oxley laws. Many companies have chosen to list on foreign exchanges other than America because of the expensive new regulations. Quality check on employees productivity to operate efficiently and profitably. First bank to offer alternate employment to retrenched employees.

WEAKNESS
Lack of proper inquiry call centre performance. Job enrichment to only managerial positions not for lower middle order

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staff. Intense focus on customer relationship but less focuses on customers in rural areas because of less friendly employees.

OPPORTUNITIES
Now you can call RBS Phone Banking and save a trip to the branch. RBS offers Foreign Currency Accounts in multiple currencies as savings and term accounts. Use of advance technology in the country like India to provide batter customer service as compare to competitors.

THREATS
A vast flood of commercial banking sector flourishing in India may affect customer growth in future. New innovation and growth in technology and CRM of other banks may decrease banks customers. Multi nationals having better brand name and volume may hinder banks progress.

A Study on specialized mutual fund advisory Introduction

1. Mutual funds are one of the most important segments of the financial system of the country 2. The financial system consists of

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Financial institution Bank Investment bodies The capital market Introduction

3. Mutual funds are financial intermediaries that collect funds from public and invest on behalf of investors. 4. Mutual funds, thus, operate as collective investment vehicle that pools resources by issuing units to investors and collectively invests those resources in a diversified portfolio.

MUTUAL FUNDS
The concept of Mutual Funds was originated in the USA and UK way back in 1930s Known as Unit Funds. Mutual Funds started in India only in the year 1960. A mutual fund is a common pool of money into which investors place their contributions that are to be invested in different types of securities in accordance with the stated objective. An equity fund would buy equity assets ordinary shares, preference shares, warrants etc. A bond fund would buy debt instruments such as debenture bonds, or government securities/money market securities. A balanced fund will have a mix of equity assets and debt instruments. Mutual Fund shareholder or a unit holder is a part owner of the funds asset.

History of Mutual Funds

Phase I 1964 87: In 1963, UTI was set up by Parliament under UTI act and given a monopoly. The first scheme launched by UTI was Unit Scheme64. Later in 70s and80s, UTI started offering some special purpose schemes like ULIP and Childrens Gift Growth Fund. Master share, the first equity fund was launched in 1986. These were launched to suit the needs of different class of investors. Phase II 1987 93: 1987 marked the entry of non-UTI, Public Sector

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mutual funds. Some of the mutual funds launched during this period are SBI Mutual Fund, Can bank Mutual Fund, LIC Mutual Fund, Indian Bank Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. Also marked a spurt in launch of assured funds like Can triple, Magnum Triple, BOI Double Square Plus. Equity funds with assured returns were launched which later ended in disaster. Phase III 1993 96: Permission was granted for entry of private sector funds. It gave greater choice to the Indian Investors. These private funds have brought in with them the latest product innovations, investment management techniques and investor servicing technology that makes the Indian mutual fund industry vibrant and growing. This phase also marked the launch of an open-end funds. Phase IV 1996: Investor friendly regulatory measures have been taken both by SEBI to protect the investor and by the government to enhance investors returns through tax benefits.

Myths about Mutual Funds

Mutual Funds invest only in shares. Mutual Funds are prone to very high risks/actively traded. Mutual Funds are very new in the financial market. Mutual Funds are not reliable and people rarely invest in them. The good thing about Mutual Funds is that you dont have to pay attention to them.

Facts about Mutual Funds

Equity Instruments like shares form only a part of the securities held by mutual funds. Mutual funds also invest in debt securities which are relatively much safer. The biggest advantage of Mutual Funds is their ability to diversify the risk. Mutual Funds are their in India since 1964. Mutual Funds market is very evolved in U.S.A and is there for the last 60 years.

Mutual Funds are the best solution for people who want to manage risks and get good returns.

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 The truth is as an investor you should always pay attention to your mutual funds and continuously monitor them. There are various funds to suit investor needs, both as a long term investment vehicle or as a very short term cash management vehicle. US-64 is very much a part of the market and is not immune to its vagaries. The crisis has risen due to mismanagement of the fund.

Mutual Funds Operations Flow Chart

Advantages of Mutual Funds

Portfolio diversification: It enables him to hold a diversified investment portfolio even with a small amount of investment like Rs. 2000/-. Professional management: The investment management skills, along with the needed research into available investment options, ensure a much better return as compared to what an investor can manage on his own.

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 Reduction/Diversification of Risks: The potential losses are also shared with other investors. Reduction of transaction costs: The investor has the benefit of economies of scale; the funds pay lesser costs because of larger volumes and it is passed on to the investors. Wide Choice to suit risk-return profile: Investors can choose the fund based on their risk tolerance and expected returns.

Liquidity: Investors may be unable to sell shares directly, easily and quickly. When they invest in mutual funds, they can cash their investment any time by selling the units to the fund if it is open-ended and get the intrinsic value. Investors can sell the units in the market if it is closed- ended fund. Convenience and Flexibility: Investors can easily transfer their holdings from one scheme to other, get updated market information and so on. Funds also offer additional benefits like regular investment and regular withdrawal options.

Transparency: Fund gives regular information to its investors on the value of the investments in addition to disclosure of portfolio held by their scheme, the proportion invested in each class of assets and the fund manager's investment strategy and outlook

Disadvantages of Mutual Funds

No control over costs: The investor pays investment management fees as long as he remains with the fund, even while the value of his investments are declining. He also pays for funds distribution charges which he would not incur in direct investments.

No tailor-made portfolios: The very high net-worth individuals or large corporate investors may find this to be a constraint as they will not be able to build their own portfolio of shares, bonds and other securities.

Managing a portfolio of funds: Availability of a large number of

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funds can actually mean too much choice for the investor. So, he may again need advice on how to select a fund to achieve his objectives.

Delay in redemption: It takes 3-6 days for redemption of the units and the money to flow back into the investors account.

Broad Types of Mutual Funds

Open-end Vs. Closed-end Funds

Open-end Fund
Available for sale and repurchase at all times based on the net asset value (NAV) per unit.

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 Unit capital of the fund is not fixed but variable. Fund size and its total investment go up if more new subscriptions come in than redemptions and vice-versa.

Closed-end Fund
One time sale of fixed number of units. Investors are not allowed to buy or redeem the units directly from the funds. Some funds offer repurchase after a fixed period. For example, UTI MIP offers a repurchase after 3 years. Listed on stock exchange and investors can buy or sell units through the exchange. Units maybe traded at a discount or premium to NAV based on investors perception about the funds future performance and other market factors.

Mutual Fund Types

Equity Funds
Invest a major portion of their corpus in equity shares issued by companies, acquired directly in initial public offering or through secondary market and keep a part in cash to take care of redemptions. Risk is higher than debt funds but offer very high growth potential for the capital. Equity funds can be further categorized based on their investment strategy. Equity funds must have a long-term objective.

Hybrid Funds
Has a portfolio comprising of debt instruments, convertible securities, and preference and equity shares. Almost equal proportion of debt/money market securities and equities. Normally funds maintain a Equity-Debt ratio of 55:45 or 60:40. Objective is to gain income, moderate capital appreciation and preservation of capital. Ideal for investors with a conservative and long-term orientation.

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Debt Funds/Income Funds

Invest in debt instruments issued not only by government, but also by private companies, banks and financial institutions and other entities such as infrastructure companies/utilities. Target low risk and stable income for the investor. Have higher price fluctuation as compared to money market funds due to interest rate fluctuation. Have a higher risk of default by borrowers as compared to Gilt funds. Debt funds can be categorized further based on their risk profiles. Carry both credit risk and interest rate risks.

Options Available to the Investor

Mutual Funds VS. Other Investments

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Product

Return

Safety

Liquidity

Tax Convenie Benefi nce t No No High Moderate

Bank Deposit Equity Instruments Debentures Fixed Deposits by Companies Bonds RBI Relief Bonds PPF National Saving Certificate National Saving Scheme Monthly Income Scheme Life Insurance Mutual Funds (Open-end) Mutual Funds

Low High

High Low

High High or Low Low Low

Moderate Moderate

Moderate Low

No No

Low Moderate

Moderate Moderate Moderate Moderate

Moderate High High High

Moderate Low Low Low

Yes Yes Yes Yes

Moderate Moderate Moderate Moderate

Moderate

High

Low

Yes

Moderate

Moderate

High

Low

Yes

Moderate

Moderate Moderate

High Moderate

Low High

Yes No

Moderate High

Moderate

Moderate

High

Yes

High

Fund Sponsor
The Fund Sponsor
Any person or corporate body that establishes the Fund

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and registers it with SEBI. Form a Trust and appoint a Board of Trustees. Appoints Custodian and Asset Management Company either directly or through Trust, in accordance with SEBI regulations. SEBI regulations also define that a sponsor must contribute at least 40% to the net worth of the asset management company.

Trustees
Created through a document called the Trust Deed that is executed by the Fund Sponsor and registered with SEBI. The Trust-the mutual fund may be managed by a Board of Trustees- a body of individuals or a Trust Company- a corporate body. Protector of unit holders interests. 2/3 of the trustees shall be independent persons and shall not be associated with the sponsors.

Rights of Trustees:
Approve each of the schemes floated by the AMC. The right to request any necessary information from the AMC. May take corrective action if they believe that the conduct of the fund's business is not in accordance with SEBI Regulations. Have the right to dismiss the AMC, Ensure that, any shortfall in net worth of the AMC is made up.

Obligations of the Trustees:

Enter into an investment management agreement with the AMC. Ensure that the fund's transactions are in accordance with the Trust Deed. Furnish to SEBI on a half-yearly basis, a report on the fund's activities Ensure that no change in the fundamental attributes of any scheme or the trust or any other change which would

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affect the interest of unit holders is happens without informing the unit holders. Review the investor complaints redressed of the same by the AMC. received and the

Asset Management Company

Acts as an invest manager of the Trust under the Board Supervision and direction of the Trustees. Has to be approved and registered with SEBI. Will float and manage the different investment schemes in the name of Trust and in accordance with SEBI regulations. Acts in interest of the unit-holders and reports to the trustees. At least 50% of directors on the board are independent of the sponsor or the trustees.

Obligation Company:

of

Asset

Management

Float investment schemes only after receiving prior approval from the Trustees and SEBI. Send quarterly reports to Trustees. Make the required disclosures to the investors in areas such as calculation of NAV and repurchase price. Must maintain a net worth of at least Rs. 10 crores at all times. Will not purchase or sell securities through any broker, which is average of 5% or more of the aggregate purchases and sale of securities made by the mutual fund in all its schemes. AMC cannot act as a trustee of any other mutual fund. Do not undertake any other activity conflicting with managing the fund.

Structure of Mutual Funds

Custodian
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 Has the responsibility of physical handling and safe keeping of the securities. Should be independent of the sponsors and registered with SEBI.

Depositories
Indian capital markets are moving away from physical certificates for securities to dematerialized form with a Depository. Will hold the dematerialized security holdings of the Mutual Fund.

Distribution Channels
Mutual Funds are primary vehicles for large collective investments, working on the principle of pooling funds. A substantial portion of the investments happen at the retail level. Agents and distributors are a vital link between the mutual funds and investors.

Agents
Is a broker between the fund and the investor and acts on behalf of the principal? He is not exclusive to the fund and also sells other financial services. This in a way helps him to act as a financial advisor.

Distribution Companies
Is a company which sells mutual funds on behalf of the fund. It has several employees or sub-broker under it. It manages distribution for several funds and receives commission for its services.

Banks and NBFCs

Several banks, particularly private and foreign banks are involved in a fund distribution by providing similar services like that of distribution companies. They work on commission basis.

Direct Marketing
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 Mutual funds sell their own products through their sales officers and employees of the AMC. This channel is normally used to mobilize funds from high net worth individuals and institutional investors.

Sales Practices
Agent Commissions
No rules prescribed for governing the maximum or minimum commissions payable by a fund to its agents. As per SEBI regulations, 1996 all initial expenses including brokerage charges paid to agents cannot exceed 6% of resources raised under the scheme. Excess distribution charges have to be borne by the AMC. A no-load fund is authorized to charge the schemes with the commissions paid to agents as part of the regular management and marketing expenses allowed by SEBI.

Accounting and Taxation

Accounting
Calculating Net Asset Value
Unit Capital is the investors subscriptions. In mutual funds it is not treated as a liability. Investments made on behalf of the investors are reflected on the assets side of the balance sheet. There are liabilities of short-term nature. Funds Net Asset = Asset Liabilities Net Asset Value = Net Assets of the scheme / No. of Outstanding Units i.e NAV = (Market value of investments + Receivables + Other Accrued Income + Other assets Accrued Expenses Other Payables Other liabilities) / ( No. of Units Outstanding as at the NAV date)

Accounting
The factors affecting the NAV are as following: - 21 -

 Capital Gains or Losses on the sale or purchase of the Investment securities. Dividend and income earned on the assets. Capital Appreciation in the underlying value of the stocks held in the portfolio. Other assets and liabilities. Number of units sold or purchased.

Accounting
SEBI regulations for NAV
The day on which NAV is calculated by a fund is called valuation date. NAV of all schemes must be calculated and published at least weekly. This is applicable to both open-end and closed-end fund. Some closed end funds (Monthly Income Schemes) that are not listed on stock exchange may publish it monthly quarterly.

SEBI Guidelines for Pricing of Units:

The mutual fund shall ensure that the re-purchase price is not lower than 93% of the NAV. The sale price is not higher than 107% of the NAV. Repurchase price of closed end scheme shall not be lower than 95% of the NAV. The difference between the repurchase price and the sale price of the units shall not exceed 7% of the sale price.

Accounting
Since investments held by a mutual fund in its portfolio are to be marked to the market, the NAV includes two components: Realized gains or losses. Unrealized gains or losses. As per SEBI guidelines, unrealized appreciation cannot be distributed by a fund, whereas the realized gain can be distributed.

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Investment Management Fees and Advisory Fees:

1.25% of the first Rs.100 crores of weekly average net assets outstanding in the accounting year. 1% weekly average net assets in excess of Rs. 100 crores. A no load scheme can charge an additional management fee up to 1% of weekly average net assets outstanding in the accounting year.

Accounting
Total expenses charged by the AMC to a scheme, excluding issue or redemption expenses but including investment management and advisory fees have following limits: 2.5% - On the first Rs. 100 crores of average weekly net assets 2.25% - On the next Rs. 300 crores of average weekly net assets 2% - On the next Rs. 300 crores of average weekly net assets 75% - On the balance of average weekly net assets For bond funds, the above percentages are required to be lower by 0.25%

Taxation in the Hands of the Fund

Income earned by any mutual fund registered with SEBI or set up by a public sector bank/Financial Institution or authorized by RBI is exempt from tax. Income distributed to unit holders by a closed-end or debt fund has to pay a distribution tax of 10% plus surcharge of 1% I.e. a tax of 11%. This tax is also applicable to distributions made by open-end funds which have less than 50% allocation to equity. The Impact on the Fund and the Investor Due to the tax payment by the fund, the NAV and the value of the investors investment will come down. The tax bears no relationship to the investors tax bracket. This tax makes the income schemes less attractive than growth schemes.

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 The fund cannot avoid tax even if the investor chooses to reinvest the distribution back into the fund. Tax Rebate available on Subscriptions to Mutual Funds (In accordance with Section 88 of Income Tax Act) Investments up to Rs. 60,000 in units of any specified mutual fund qualifies for tax rebate to the extent of 20% of such investment. In case of Infrastructure Bonds, investments up to Rs. 70,000 is eligible for 20% tax rebate. Total investment eligible for tax rebate cannot exceed Rs. 60,000. Investment up to Rs. 10,000 in an equity linked saving scheme (ELSS) qualifies for tax rebate of 20%.

Dividend

Tax : The tax paid by the investor on receiving dividends from a mutual fund. There is no dividend tax to be paid at the investors end. There is no dividend tax deduction from NAV in all funds which are open- end and with over 50% allocation of investment to equities.
Tax of 10.2% is deducted from the NAV by the fund in the following cases: All closed end funds including equity. funds with less than 50% All open end allocation in equity.

Capital Gains on Sale of Units: Capital Gains tax is

charged when something is sold at profit. If the investor sells his units and earns Capital Gains, the investor is subject to the Capital Gains Tax. If the units are held for less than 12 months, they will be treated as short term capital gain. Other wise, they are called long term capital gains. For short term, capital gains = Sale consideration (Cost of Acquisition + Cost of Improvements + Cost of Transfer) The tax charged depends on the income bracket of the investor. For long term capital gains, the investor gets the benefit of Indexation by which his purchase price is marked up by an inflation index.

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Cost of acquisition or improvement = actual cost of acquisition or improvement * cost of inflation index for year of transfer/cost of inflation index for year of acquisition or improvement. The tax charged is either 10% or (20% - rate of inflation).

Debt Funds
Diversified Debt Funds:
Invests in all available types of debt securities, issued by entities across all industries and sectors. Derives benefit of risk reduction through risk diversification.

Focused Debt Funds:

Have a narrow focus with less diversification in its investments. Include Sector, Specialized and Offshore debt funds. Have a higher risk as compared to diversified debt funds.

High Yield Debt Funds:

Invest in debt instruments that are not backed by tangible assets and considered below investment grade. May earn higher returns though at the cost of higher risk.

Assured Variant:

Return

Funds-

An

Indian

Assured Return or Guaranteed Monthly Income Plans are essentially Debt/Income funds. Returns are indicated in advance for all the future years of the closed-end funds. Any shortfall is borne by the sponsors or managers. Market regulator, SEBI has been discouraging fund managers from offering assured return schemes. If offered, explicit guarantee is required from a guarantor whose name is specified in advance in the offer document of the scheme.

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Equity Funds
Aggressive Growth Funds
Objective is to earn very high returns for the investor. Target is maximum capital appreciation. Invest in less researched or speculative shares and may adopt speculative investment strategies. High volatility and risk as compared to other funds.

Growth Funds:
Objective is capital appreciation over a long time, 7 - 10 years span. Invest in companies whose earnings are expected to rise at an above average rate. These companies will be considered to have growth potential, but not entirely unproven and speculative. Less volatile than aggressive growth funds.

Specialty Funds
Thematic funds that have a theme for investments. Narrow portfolio orientation and invest companies that meet pre-defined criteria. More volatile than diversified funds. Specialty funds are further sub-categorized based on their investments. only in

Diversification is limited to one type of investment.

Diversified Equity Funds:

Invest only in equities except for a very small portion in liquid money market securities. It is not focused on any one or few sectors or shares. Reduce the sector or stock specific risks through diversification. Lower risks than growth funds.

Sector Funds:
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 Portfolios consists of investments in only in one industry or sector of the market such as IT, Pharmaceuticals or FMCG. Higher level of company or sector specific risk than diversified funds.

Offshore Funds:
Invest in equities in one or more foreign countries. Sensitive to foreign exchange rate risk and economic conditions of the countries they invest in.

Small-Cap Equity Funds:

Invest in shares of companies with relatively low market capitalization that that of big blue chip companies. More volatile than other funds as smaller companies are not very liquid. In terms of investment style, it may be aggressivegrowth or growth type or even value fund.

Equity Linked Savings Schemes - an Indian Variant:

Investment in these schemes entitles the investor to claim an income tax rebate. Usually has a lock-in period of 3 years before the end of which funds cannot be withdrawn. There are no specific restrictions on the investment objectives for the fund managers. Generally, such funds would be Diversified Equity Funds.

Equity Income Funds:

Objective is to give high level of current income along with some steady capital appreciation. Invest in shares of companies with high dividend yields and do not fluctuate as much as other shares. Ex Power/Utility sector. Less volatile and risky than other equity funds.

Equity Index Funds:

The objective is to match the performance of the stock

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market by tracking an index that represents the overall market. Invests in shares that constitute the index and in the same proportion. Sensitive to overall market risk. Example: UTI Nifty Fund

Value Funds:
Invest in fundamentally sound companies whose shares are currently under-priced in the market. Have lower risk as compared to Growth Funds and take a long term approach. Often invested in cyclical industries.

Example: Templeton India Growth fund that has shares

of Cement/Aluminum and other cyclical industries.

Hybrid Funds
Growth & Income Funds:
Strike a balance between capital appreciation and income for the investor. Portfolio is a mix between companies with good dividend paying records and those with potential for capital appreciation. Less risky than growth funds but more risky than income funds.

Asset Allocation Funds:

Follow variable asset allocation policy. Move in an out of an asset class (equity, debt, money market or even non-financial assets) Asset allocation funds that follow more stable allocation policies are like balanced funds. Asset allocation funds that follow more flexible allocation policies are like aggressive growth or speculative funds.

Scenario
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Mrs. Sudhakar is investing Rs. 1000 every month for 3 months in ABC mutual fund. Following are the details:

Date January February March

Amount Invested 1000 1000 1000

averaging method

NAV R. 10/Rs. 8/Rs. 12.50

will prove

Check whether rupee cost beneficial to Mrs. Sudhakar.

Rupee Cost Averaging

Solution Date January February March Amount Invested 1000 1000 1000 NAV R. 10/Rs. 8/Rs. 12.50 Units Purchased 100 125 80

Average cost per unit under the plan = 3000/305 = Rs. 9.84 Average NAV = (10 + 8 + 12.50)/3 = Rs. 10.17 Average of the three NAVs is higher than the figure achieved through rupee-cost averaging. So, we can say that rupee-cost-averaging is beneficial to Investors.

ABOUT PROBLEM

THE

RESEARCH

The study poses a management dilemma in the form of trying to understand the level of effectiveness of mutual fund advisory services. To answer this management problem research has be undertaken in two main areas. The first concern is with the informational factors which mainly deal with the credibility and usage of advice facilitated by specialized Mutual fund advisors. Investors may expect a lot of informational parameters to be fulfilled which will help them to take the correct decision. Some most common features of informational factors are: Accuracy

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 Reliability Timeliness Completeness Clarity Lucidity Conciseness We also have another factor to be taken into consideration that is in the form of economic and usage characteristics of these social networking sites which make the information content look more appealing and easy to locate. These factors can be expected show major changes in the perceptions of the end users as some people expect a highly technologically aided website environment while some dont. So the study will be assessing various indicators under these heads and the student preference.

OBJECTIVES
PRIMARY OBJECTIVES
To analyze the Investors perceptions and expectations from Specialized Mutual fund Advisory services. To analyze what are the informational factors that investors seeks from a specialized Mutual fund Advisor.

SECONDARY OBJECTIVES
A literature review was conducted to understand various concepts on Specialized Mutual Fund Advisory. From the

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results gathered we identified properties which were used to measure the effectiveness level of the Mutual fund Advisors. Each property consists of a few indicants which were used for designing instrument. With these properties we have formulated secondary objectives to find the impact of these variables on the Level of effectiveness. To identify the characteristics of usage of advisory among investors. To identify the association between Effectiveness and the features for which one looks regarding a Mutual funds. To rate features which are essential for marketing a Specialized Mutual fund Advisory services.

LIMITATIONS OF THE STUDY

The study was conducted for a short period of time i.e. 8 weeks. Some of the respondents did not respond properly due to their busy schedule. Information received from the respondents may not be true as they may not have had taken much care to fill in the responses pertaining to all the queries with the same level of dexterity. Area covered for the project while doing survey also was very large and it was difficult to correlate two different customers/respondents perceptions.

RESEARCH METHODOLOGY
FIELD OF STUDY

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 We chose to do a study on the Investors perceptions and expectations from Specialized Mutual fund Advisory services. These samples were taken from various residential colonies of Agra mainly Adan Bagh, Amar Vihar, Ellora Enclave, Hira Bagh, Rajdeep Enclave, Madhuvan Enclave, and Ashoka Enclave etc. these colonies are in Dayal Bagh Area which are nearby Royal Bank of Scotland Sikandra, Agra Branch.

RESEARCH DESIGN
The research design chosen for the study is CAUSAL in nature. The essential element of causation is that A produces B or A forces B to occur. Here we are testing the level of satisfaction of the students from the various factors identified which will help in the decision making process. Hence we use the causal mode of study to understand what factor influences the level of satisfaction to the maximum.

SAMPLING
Technique
For the study we use NON PROBABILITY/ NON RANDOM CONVENIENCE Sampling method. Here we chose random members from the population to respond to our instrument hence its the term Convenience.

Sample Size
Originally intended size was 120 students. but the number of responses received back which could be used was 100 in number.

INSTRUMENT OF DATA COLLECTION

Our primary instrument of data collection was the Questionnaire with structured and standardized questions for respondents to answer according to their preference.

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SOURCES OF DATA
Our primary source of data was using the Self administered method of survey i.e. using the Questionnaire to elicit responses about the topic from the respondents. Our secondary sources of data were online journals, articles and reference books used to gain information about the identification of the main variables and factors to be studied. We also undertook a Literature Review for the identification and clarification of the main attributes to be tested.

SCALING TECHNIQUES
The scaling technique used in the questionnaire was closed ended questions. The data type collected was not interval in nature. Each and every main attribute was divided into a host of indicators and were given direct options to each questions. The technique was chosen as it elicits reliable, quick, voluminous and easily testable data.

DATA ANALYSIS:The data collected from the questionnaire was fed into the SPSS data sheet for data analysis. The two main used analysis methods-Factor analysis, ChiSquare Analysis. The Chi-Square test was used because it is the most popular and easy statistical inference procedure for finding the level of association between the 2 or more attributes i.e. to find the level of relation or independence.

DATA ANALYSIS
Frequency Tables

Statistic
Prima ry N Mean Investme nt Valid Missing Objectiv e 100 0 2.21

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Question: 1
Valid Primary Investment Objective Frequenc Percen Valid y t percent Preservation of Principal 11 11.0 11.0 Growth and Income 65 65.0 65.0 Conservative Growth 16 16.0 16.0 Aggressive Growth 8 8.0 8.0 Total 100 100.0 100.0 Cumulative % 11.0 76.0 92.0 100.0

Interpretation:

Out of various investment objectives, we quantified 4 most preferred one. Growth and Income is the most likely option for majority of the investors as it is the safest side for them. Moreover, growth of the principal amount and generation of income out of it gives a less risk bearing perception to the majority of the investors.

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Question: 2

Investment Vehicles Most Comfortable

Valid Fixed Deposits Stocks/ Share Mutual Funds Real Estate Total Frequenc y 39 12 26 23 100 Percent 39.0 12.0 26.0 23.0 100.0 Valid % 39.0 12.0 26.0 23.0 100.0 Cumulative % 39.0 51.0 77.0 100.0

Interpretation:

This pie chart clearly indicates that 39% of the respondent are willing to invest in fixed deposits because majority of people perceive that FDs are the safest mode for investment despite of this fact around 26% people are interested in Mutual funds.

Question: 3

Time Period for Investment

Frequenc Percent y Valid % Cumulative %

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Valid

1-6 Months 6-12 Months 2-5 Years 5-10 Years Total

16 14 46 24 100

16.0 14.0 46.0 24.0 100.0

16.0 14.0 46.0 24.0 100.0

16.0 30.0 76.0 100.0

Interpretation: Majority (45 %) says that they want to

invest for the time period of 2 5 yrs. It indicates that people needs income to increase over considerable time. Moreover, they are also willing to tolerate principal fluctuation to achieve current income that pace with inflation. People who want to invest for more than 10 yrs. are experienced investors and are comfortable with short term negative rates of return and loss of principal because over time they expect to generate higher return on their overall investments

Question: 4 Reason for Investment

Facilities Childs Education N Valid Missing Mean Median Mode 100 0 3.78 4.00 5

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Std. Deviation

1.151

Facilitates Childs Education

Valid Frequen cy Strongly 4 Disagree 12 Neutral 19 Agree 32 Strongly Agree 33 Total 100 Percent 4.0 12.0 19.0 32.0 33.0 100.0 Valid % Cumulative % 4.0 4.0 12.0 16.0 19.0 35.0 32.0 67.0 33.0 100.0 100.0

Question: 4 B Cater Old age Needs

Valid Strongly Disagree Neutral Agree Strongly Agree Total Frequen cy 2 11 23 33 31 100 Percent 2.0 11.0 23.0 33.0 31.0 100.0 Valid % 2.0 11.0 23.0 33.0 31.0 100.0 Cumulative % 2.0 13.0 36.0 69.0 100.0

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Interpretation: Now a day, people are aware about

investing in Mutual funds, they know that mutual funds would give them good returns and can cater their needs when they enter in old age

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Question: 4 C Helps to get Quick Profits

Valid Strongly Disagree Neutral Agree Strongly Agree Total Frequen cy 1 9 30 38 22 100 Perce nt 1.0 9.0 30.0 38.0 22.0 100.0 Valid % 1.0 9.0 30.0 38.0 22.0 100.0 Cumulative % 1.0 10.0 40.0 78.0 100.0

Interpretation: Despite of some acceptance level, there is a section that

does not have any comment on getting quick returns as they are not relying on current market conditions.

Question: 4 E For Security Purpose

Frequen cy Perce nt Valid % Cumulative %

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Valid

Strongly Disagree Neutral Agree Strongly Agree Total

7 6 27 28 32 100

7.0 6.0 27.0 28.0 32.0 100.0

7.0 6.0 27.0 28.0 32.0 100.0

7.0 13.0 40.0 68.0 100.0

Interpretation: Almost all the people say that money at bank is more
secured then money at home which may get robbed/ theft anytime. So, they are willing to invest their money for the preservation of the principal. They are also aspiring for growth of their capital.

Question: 5 Comfort level in Making Decisions

Valid Low, You are not very Comfortable Moderate, you are somewhat comfortable High, You are very Frequency Perce nt 13 13.0 56 31 56.0 31.0 Valid % 13.0 56.0 31.0 Cumulative % 13.0 69.0 100.0

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Comfortable Total

100

100.0

100.0

Interpretation: The respondents who comes under high category are

experienced in sense of investments and know when and where to invest. People who come under low and moderate category are the potential clients of the Mutual fund Advisor. Moreover the majority comes under this category only.

Question: 6 Preferences
Valid Minor Fluctuation, lower Return Some fluctuation, modest Return Noticeable monthly fluctuation, higher Return Noticeable daily Fluctuation, highest Frequency Perce nt 14 14.0 29 39 18 29.0 39.0 18.0 Valid % 14.0 29.0 39.0 18.0 Cumulative % 14.0 43.0 82.0 100.0

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possible return Total

100

100.0

100.0

Question: 7 Satisfactory Source for Investment

Valid Strongly Disagree Neutral Agree Strongly Agree Total Frequen cy 13 31 31 19 6 100 Perce nt 13.0 31.0 31.0 19.0 6.0 100.0 Valid % 13.0 31.0 31.0 19.0 6.0 100.0 Cumulative % 13.0 44.0 75.0 94.0 100.0

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Question: 8
CROSS TABULATIONS FEATURES BETWEEN GENDER AND CERTAIN MAIN

Case Processing Summary

Valid N Percent Cases Missing N Percent Total N Percent

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Gender of the Respondent mutual fund Investment

100

100.0%

0,0%

100

100.0%

Question: 8 A

Count
Unimpo rtant Gender of the Respondent Total (TABLE-1) Male 2 Debt Fund Less Neutr Import Importan al ant t 5 12 24 Very Total Importan t 15 58

Female 0 2

9 14

14 26

12 36

7 22

42 100

Chi-Square Table
Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases count is .84 7.847 8.569 3.088 100 DF 4 4 1 Asymp. Sig. (2sided) 0.097 0.073 0.079

a. 2 cells (20.0%) have expected count less than 5. The minimum expected

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Count Gender of the respondent * Equity fund Cross tabulation

Unimpor tant Gender of Responden t Total Male 2 Equity Fund Less Neutr Import Importan al ant t 4 22 19 Very Total Importan t 11 58

Female 1 3

8 12

16 38

12 31

5 16

42 100

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(TABLE-2)

Chi-Square Table
Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases count is 1.26. 3.947 3.980 1.959 100 DF 4 4 1 Asymp. Sig. (2sided) 0.408 0.409 0.162

a. 2 cells (20.0%) have expected count less than 5. The minimum expected

Question: 8 C Gender of the respondent * Hybrid fund Cross tabulation

Count
Hybrid Fund

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Unimpo rtant Gender of Respondent Male 2

Less Importa nt 4

Neutr al 25

Impor tant 15

Very Importan Total t 12 58

Female Total

0 2

7 11

18 43

9 24

8 20

42 100

(TABLE-3)

Chi-Square Tests
Value Pearson Chi-Square 3.795 Likelihood Ratio 4.496 Linear-by-linear 0.273 Association N of Valid Cases 100 a. 3 cells (30.0%) have expected count expected count is .84. DF 4 4 1 Asymp. Sig. (2sided) 0.434 0.343 0.601

less than 5. The minimum

Question: 9 CROSS TABULATIONS BETWEEN AGE AND CERTAIN MAIN FEATURES Case Processing Summary
Valid Cases Missing Total

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CROSS TABULATIONS BETWEEN AGE AND CERTAIN MAIN FEATURES Case Processing Summary
N Age of the respondent* Expert Advice 100 Percent 100.0% N 0 Percent 0,0% N 100 Percent 100.0%

Age of the respond* Expert Advice Cross Tabulation Expert Advice Count
Ofte n Age of the Responden t 65 and over 45 35 25 24 Total (TABLE-4) 64 44 34 and under 1 5 1 4 4 15 To an Extend 5 3 3 1 0 12 Subject to the amount Invested 6 15 7 9 4 41 Neve r 6 13 3 3 7 32

Total

18 36 14 17 15 100

Chi-Square Tests
Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases 16.040 17.098 0.388 100 DF 12 12 1 Asymp. Sig. (2sided) 0.189 0.146 0.533

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a. 11 cells (55.0%) have expected count less than 5. The minimum expected count is 1.68.

Age of the respond* Specific recommendations Cross Tabulation

Count Specific Recommendations Total Strongl Disagr Neutr Agree Strongl y ee al y Agree Disagre e 0 1 5 8 4 18 1 0 0 0 1 0 2 2 2 7 10 3 4 3 25 16 4 6 6 40 9 5 5 4 27 36 14 17 15 100

Age of the Responden t

65 and over 45 35 25 24 64 44 34 and under

Total (TABLE-5)

Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases 8.681 10.974 0.48 100

DF 16 16 1

Asymp. Sig. (2sided) .926 .811 .826

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a. 18 cells (72.0%) have expected count less than 5. b. The minimum expected count is 14.

Question: 9 B Age of the respond* reasons for the recommendations Cross Tabulation
Count Reasons for the Recommendations Total Strongl Disagr Neutr Agree Strongl y ee al y Agree

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Disagre e Age of the Responden t 65 and over 45 35 25 24 Total (TABLE-6) Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases 14.066 15.617 .733 100 DF 16 16 1 Asymp. Sig. (2sided) .594 .480 .392 64 44 34 and under 0 1 0 0 1 2 2 0 1 1 0 4 5 12 3 5 2 27 7 15 3 7 7 39 4 8 7 4 5 28 18 36 14 17 15 100

a. 17 cells (68.0%) have expected count less than 5. b. The minimum expected count is 28.

Question: 9 C - 51 -

Age of the respondent* strengths and weakness Cross Tabulation

Count Disagree Age of the Responden t 65 and over 45 64 35 44 25 34 24 and under Total (TABLE-7) 2 2 1 0 0 5 Strengths and weakness Neutral Agree Strongly Agree 4 8 2 2 3 19 8 17 7 9 7 48 4 9 4 6 5 28 total 18 36 14 17 15 100

Chi-Square Tests
Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases 4.993 6.287 2.907 100 DF 12 12 1 Asymp. Sig. (2-sided) .958 .901 .088

a. 12 cells (60.0%) have expected count less than 5. b. The minimum expected count is 70.

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Question: 9 D Age of the respondent* economical to hire Cross Tabulation

Count Disagree Age of the Responden t 65 and over 45 64 35 44 25 34 24 and under Total 2 4 2 0 1 9 Economical to hire Neutral Agree 4 9 3 2 3 21 9 14 5 6 6 40 Strongly Agree 3 9 4 9 5 30 total 18 36 14 17 15 100

(TABLE-8) Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases 8.342 9.549 3.326 100 DF 12 12 1 Asymp. Sig. (2-sided) .758 .655 .068

c. 11 cells (55.0%) have expected count less than 5. d. The minimum expected count is 1.26

Question: 9 E - 53 -

Age of the respondent* Easy to access Cross Tabulation

Count Disagree Age of the Respondent 65 and over 45 35 25 24 64 44 34 and under 2 1 1 0 0 4 Easy to access Neutral Agree 2 11 7 3 3 26 10 13 4 9 8 44 Strongly Agree 4 11 2 5 4 26 total 18 36 14 17 15 100

Total

(TABLE -9) Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases 13.246 13.740 .526 100 DF 12 12 1 Asymp. Sig. (2-sided) .318 .318 .468

a. 13 cells (65.0%) have expected count less than 5. b .The minimum expected count is 56

Question: 9 F Age of the respondent* Convenient in approach Cross Tabulation - 54 -

Count Disagree Age of the Respondent 65 and over 45 35 25 24 64 44 34 and under 1 1 1 0 1 4

Convenient in approach Neutral 5 7 5 5 1 23 Agree 8 13 6 5 6 38 Strongly Agree 4 15 2 7 7 36 total 18 36 14 17 15 100

Total

(TABLE-10) Chi-Square Tests Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases Value 9.385 11.021 .908 100 DF 12 12 1 Asymp. Sig. (2-sided) .670 .527 .341

a. 10 cells (50.0%) have expected count less than 5. b. The minimum expected count is 56

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Disagree Age of the Respondent 65 and over 45 64 35 44 25 34 24 and under 1 2 3 0 1 7

Neutral 6 6 2 3 3 20

Agree 6 16 6 7 4 39

Total

Strongly Agree 5 12 3 7 7 34

total 18 36 14 17 15 100

(TABLE-11) Chi-Square Tests Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases Value 10.499 10.070 .973 100 DF 12 12 1 Asymp. Sig. (2-sided) .572 .610 .324

a. 10 cells (50.0%) have expected count less than 5. b. The minimum expected count is 98

Question: 9 H Age of the respondent* Lower the risk factor cross tabulation
Count Disagree Age of the Responden t 65 and over 45 64 35 44 25 34 24 under 1 0 0 0 0 1 Lower the risk factor Neutr Agre strongl Strongly al e y Agree Disagree 1 1 1 0 1 4 5 7 4 3 2 21 8 18 6 8 7 47 3 10 3 6 5 27 Total

18 36 14 17 15 100

Total

(TABLE-12) Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases 9.102 8.615 2.136 100

DF 16 16 1

Asymp. Sig. (2sided) .909 .928 .144

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e. 18 cells (72.0%) have expected count less than 5. f. The minimum expected count is 14

Question: 9 I Age of the respondent* Increase Gains Cross Tabulation

Count Strongl y Disagre e 0 2 0 1 0 0 1 3 0 0 0 5 Increase Gains Disagre Neut Agree e ral 7 9 6 4 5 29 7 13 2 8 5 35 Total Strongl y Agree 4 11 5 5 5 30 18 36 14 17 15 100

Age of the Responden t

65 and over 45 64 35 44 25 34 24 and under

Total (TABLE- 13)

Chi-Square Tests
Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases 15.096 15.050 0.921 100 DF 16 16 1 Asymp. Sig. (2sided) .518 .521 .337

Question: 9 J Age of the respondent* Extensively Experienced Cross Tabulation

Count Strongl y Disagre e 0 2 0 2 4 0 Extensively Experienced Total Disagre Neut Agree Strongl e ral y Agree 6 8 2 8 15 8 2 9 2 18 36 14

Age of the Responden t

65 and over 45 64 35 44

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25 34 24 and under Total (TABLE-14)

0 0 2

3 0 9

3 2 21

7 4 42

4 9 26

17 15 100

Chi-Square Tests
Value Pearson Chi-Square 29.346 Likelihood Ratio 25.914 Linear-by-linear 4.223 Association N of Valid Cases 100 a. 18 cells (72.0%) have expected count expected count is .28. DF 16 16 1 Asymp. Sig. (2sided) .022 .055 .040

less than 5. The minimum

Question: 10
Age of the Respondent* New Products in Market like private Equity/ Structure Products Cross Tabulation Count New Products in Market like private Equity/ Structure Products Yes To an Never Extend heard 4 3 11 7 18 11 Total

Age of the Responden

65 and over 45 64

18 36

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t 35 44 25 34 24 and under Total (TABLE-15) 3 5 3 22 5 7 8 41 6 5 4 37 14 17 15 100

Chi-Square Tests
Value Pearson Chi-Square Likelihood Ratio Linear-by-linear Association N of Valid Cases 8.583 8.834 1.465 100 DF 8 8 1 Asymp. Sig. (2sided) .379 .357 .226

INTERPRETATIONS:
In the first table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 7.847 < 9.488 In the second table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 3.987 < 7.779 In the third table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 3.795 < 9.488 In the fourth table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 16.040 < 21.026 In the fifth table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 8.681 < 26.296 In the sixth table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 14.066 < 26.296 In the seventh table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 4.993 < 9.488

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 In the eighth table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 8.342 < 21.026 In the ninth table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 13.042 < 15.507 In the tenth table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 9.385 > 21.026 In the eleventh table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 10.499 < 21.026 In the twelveth table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 9.102< 26.296 In the thirteenth table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 15.096 < 26.296 In the Fourteenth table the hypothesis is not accepted as the calculated value of the significance level is lesser than the table value i.e. 29.346 > 26.296 In the Fourteenth table the hypothesis is accepted as the calculated value of the significance level is greater than the table value i.e. 8.583 < 15.507

When The Hypothesis Is Not Accepted We See That There Is An Association Between The Effectiveness Of Specialized Mutual Funds Advisory Services And The Given Parameters.

SUGGESTIONS
Very few people know only about Mutual Funds & their different schemes. So, there is a need for increasing awareness about it. Advisors also have to compare Mutual Funds with other investment option & also give details on them from the safety, returns & other points of

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view. So, people think on it & in future they will also invest in such schemes. Customer should get specific idea about the optimum portfolios that give maximum returns with minimum risk. Advisors have to find out the reason for why people are not interested for investing in mutual funds & also find solution to remove their wrong concept about mutual fund & company. Moreover there is a section of people who dont rely on Advisory services because they perceive that these counselors are selfish in nature and give those advices in which they are getting high commission. Therefore, AMC have to take steps to gain investors trust. Advisers should have to also arrange different programmers & seminars, which give guidelines on mutual fund & risk-return concern with it. Therefore, knowledge of people increasing.

CONCLUSION
Knowledge is power and so the chip has become a mighty thing. In this age of rapidly moving technology, information has become a major pivotal point in the decision making process of both individuals and the society at large. From all the above graph & findings from it one can finds that there a need for increasing the awareness of different schemes of mutual funds & benefits & risk associates with it& also provides data on different schemes & safety under that investment as we find the above analysis that most of the agents see safety first for investing in any avenues. mutual fund is booming sector now a days and it has lot of scope to generate income and poviding return to the investor, the mutual fund is one of the way to development of country and helps to mobilizing dead money in the economy which helps to develop the economic conditions of the country and people. Mutual fund helps the people for studying the market conditions, it providing lot of opportunities to the people for research work and help the people to know the things going on around the world. It gave the knowledge to the person, because it diversifies the risk by investing in different securities.

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BIBLIOGRAPHY BOOK REFERENCESV.N AVADHANI- Security analysis and portfolio management, Himalaya
publishing house.

L.M BHOLE- Financial institutions and market, Tata McGraw- hill. FISHER AND JORDEN Security analysis and portfolio management,
prentice hall.

Website:

www.njindiainvest.com www.navindia.com www.mutualfundIndia.co.in www.investorsideas.com www.ingim.co.in www.amfindia.com

PUBLISHED MAGAZINES AND ARTICLESThomas Davenport- Mutual fund investors India. Sanjay J Bhayani An empirical analysis of performance evaluation of
mutual fund schemes in India capital market (Icfai Journals).

P. Prasad Rao-Distribution channels in the mutual fund industry

money market (ICFAI Journals).

Siddhartha Srivastava Real estate fund, present conditions and

future of the fund capital market (Investment management).

Questionnaire:

- A Study on Effectiveness of Mutual Fund Advisory Services imparting by the Certified Investment Counselor or a Bank OBJECTIVE- we intend to measure the effectiveness of Mutual Fund Advisory Services which has been facilitated by Certified Investment Counselor or a

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Bank so that we can make recommendations and may optimize the level of services. Name Contact No. Email ID (If any) How old are you? (1) 65 and over (2) 45 to 64 (5) 24 and under Occupational Details (Please tick any one) (1) Private sector service (2) Business (3) Retired (4) Fore dealer (5) Public sector/ Govt. (6) Professional (7) Student (8) Housewife (3) 35 to 44 (4) 25 to 34 Address Gender -- M / F

(Ques1) What is your primary investment objective? (1) Preservation of Principal (2) Growth and Income (Ques2) Which of these investment (3) Conservative Growth (4) Aggressive Growth vehicles are you most

comfortable with? (1) Fixed Deposits (2) Stocks / Shares (5) Others specify (3) Mutual Funds (4) Real estate

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(Ques3)

The specific date when you hope to meet your

financial goal after considering market scenario? (1) 1 - 6 months (2) 6 12 months (5) 10 + yrs (Ques4) You prefer to invest because:(3) 2 5 yrs (4) 5 10 yrs

Features It Facilitates childs education It caters old age needs It helps to get quick profits It ensures higher returns For Security purpose

Strongly Agree

Agre e

Neutr al

Disagre Strongly e Disagree

(Ques5) Your comfort level in making investment decisions can best be described as: (1) Low, you are not very comfortable. (2) Moderate, you are somewhat comfortable. (3) High, you are very comfortable. (Ques6) You would prefer to have: (1) Minor fluctuations in the value of your account, but consistently earn a lower return on your investments. (2) Some fluctuations in the value of your account, but earn a modest return. (3) Noticeable monthly fluctuations in the value of your account, but earn a higher return. (4) Noticeable daily fluctuations in the value of your account, but earn the highest possible return (Ques7) Are Mutual Funds the satisfactory source for investment?

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(1) Strongly agree (2) Agree (3) Neutral

(4) Disagree (5) strongly disagree

(Ques8) Given below are some features which are important in terms of information you look for regarding mutual fund investments. Rate each according to every information category. INFORMATION Debt funds ( Govt. bonds, Banks) Equity funds ( Shares) Debt + Equity funds (Ques9) Before investing do you take experts advice (say a Certified Investment Counselor or a bank)? (1) Often (2) To an extend (3) Subject to the amount invested (4) Never V.IM P IMP NEUTRAL LESS IMP UNIM P

(Ques10) You can expect your Mutual fund adviser (say a Certified Investment Counselor or a bank) to:FEATURES
Make Clear And Specific Recommendations Explain The Reasons For The Recommendations Point Out The Strengths And Weaknesses Be Economical To Hire Be Easy To Access Be Convenient In Approach

STR. AGREE

AGREE

NEUTRAL

DISAGREE STR. DISAGREE

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May Provide reliable information May Lowers the risk factor May Increase gains Be extensively experienced

(Ques11) Are you familiar with the terms like Private equity / Structure Products? (1) Yes (2) To an extend (3) Never heard

(Ques12) Certified Investment Counselor or a Bank helps a lot in taking decisions of investing in Mutual Funds and you wish to meet any of them in near future. (1) Completely agree (2) Subject to the need (3) Neutral (4) Disagree

Project Coordinator
Anuradha mathuria

JAYOTI VIDYA PEETH WOMENS UNIVERSITY Jaipur

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