Sei sulla pagina 1di 54


A mutual fund is a pool of money collected from investors and is

invested according to certain investment objectives.
A mutual fund is created when investors put their money together . It is
therefore a pool of investors fund. The term mutual means that the
investors contribute to the pool and also benefit from the pool. There are
no other claimants to the funds. The pool of funds held mutually by
investors is the mutual fund.
A mutual funds business is to invest the funds thus collected , according
to the wishes of the investors who crested the pool. In many markets
these wishes are articulated as investment mandates. The investor
appoints professional investment managers, to manage their funds. The
same objective is achieved when professional investment managers create
a product and offer it for investment to the investors.
The most important characteristics of the mutual fund are that the
contributors and the beneficiaries of the fund are the same class of
people, namely the investors.
A mutual fund belongs to the investors who have pooled their
funds. The ownership of the fund is in the hands of investors.
Investment professionals and other service providers, who earn a
fee for their services, from the fund, manage the mutual fund.
The pool of fund is invested in a portfolio of marketable
investments. The value portfolio is updated everyday.
The investment portfolio of the mutual fund is created according to
the stated investment objectives of the fund.
The investors share in the fund is denominated by "units . The
value of the units changes with change in the portfolios value
!. $ortfolio diversification
#. $rofessional management
%. &eduction in risk
'. &eduction of transaction costs
(. )onvenience and fle*ibility
+. ,i-uidity.
!. .o control over cost / 0ince investors do not directly monitor
the funds operation they cannot control the cost effectively .
&egulators therefore usually limit the e*pense of the mutual
#. .o tailor1 made portfolios / 2utual fund portfolios are created
and marketed by A2)0 , into which investors invest. They
cannot create tailor made portfolios.
%. 2anaging a portfolio of funds / As the number of mutual funds
increases , in order to tailor a portfolio for himself, an investor
may be holding a portfolio of funds, with the costs of
monitoring them and using them, being incurred by him.
$&34500I3.A, 2A.A6525.T
27T7A, 47.8.
A. 2utual funds are managed by investment managers 9A2):
who are appointed by trustees and bound by the investment
management agreement, on the hows and whys of their
investment management functions.
;. A2)s are also re-uired to be ade-uately capitali<ed, and are
closely regulated by 05;I. A2)s competing for funds under
management therefore bring in significant professional
e*pertise and are bound by regulatory and trustee supervision.
). A2)s are prohibited by regulation to indulge in other business.
8. &egulation also ensures that trustees are able to monitor the
performance of A2)s, and there are a number of safeguards
and prudential regulations in the interest of investors.
5. Investment managers and funds are also bound by the A24I
code of ethics, which foster professional standards in the
,I=7I8IT> 45AT7&50 34 27T7A, 47.8 I.?50T25.T
!.2ost of the funds being sold today are open1ended . That is, investors
can sell their e*isting units, or buy new units at any point of time, at
prices that are related to the .A? of the fund on the date of the
#.0ince investors continuously enter and e*it funds, funds are actually
able to provide li-uidity to investors, even if the underlying market, in
which the portfolio is invested doesnt have li-uidity.
!@+% A !@BC / The 7nit Trust of India was the sole player in the
industry. It was created by an Act of $arliament in !@+%, 7TI
launched its first product, the 7nit 0cheme !@+', which even today
is the single largest mutual fund scheme. 7TI created a number of
products such as monthly income plan, childrens plan, e-uity
oriented schemes and offshore funds during this period. 7TI
managed assets of +C!D )r &s
!@BC A !@@% / In !@BC public sector banks and financial
institutions entered the mutual fund industry. 0;I mutual fund was
the first non A 7TI fund to be set up in !@BC. 0ignificant shift of
investors from deposits to mutual fund industry happened during
this period. 2ost funds were growth A oriented closed1 ended
funds. ;y the end of this period, assets under 7TIs management
grew to &s. %B,#'C )r and public sector funds managed &s. BC(D
!@@% A !@@+ / In !@@%, mutual fund industry was open to private
sector players, both Indian and foreign. 05;Isfirst set of
regulations for the industry were formulated in !@@%, and
substantially revised in !@@+. 0ignificant innovations in servicing,
product design and information disclosure happened in this phase,
mostly initiated by private sector players.
!@@+ A !@@@ / The implementations of the new 05;I regulations
and the restructuring of the mutual fund industry led to rapid assed
growth. ;ank mutual funds were re1cast according to the 05;I
recommendation structure, and 7TI came under voluntary 05;I
!@@@ A #DD% / This phase was marked by very rapid growth in
industry , and significant increase in market shares of private sector
players. Assets crossed &s. !,DD,DDD )r. The ta* break offered to
mutual funds in !@@@ created arbitrage opportunities for a number
of institutional players. ;ond funds and li-uid funds registered the
highest growth in this period , accounting for nearly +DE of the
assets. 7TIs share of the industry dropped(DE.
2utual funds units in modern times are issued as account
statements, with the facility to hold units in fractions up to '
decimal points. It is also simpler for investors to make additional
investments, tore1invest dividends, to converts their holding in one
fund into a holding in another, and to alter the investment options
regarding their periodical dividends. These facilities make it
possible for small investors to regularly save a fi*ed amount in a
mutual fund, and create saving plans that suit their saving habits
and financial goals.
2utual funds invest in a portfolio of securities. This means that all
funds are not invested in the same investment avenue. It is well
known that risk and returns of various investment options do not
uniformly or in sympathy with one another. If a $harma company
share is going down, an InfoTech companys may be moving up.
Therefore holding a portfolio that is diversified across investment
avenues is a wise way to manage risk. Fhen such a portfolio is
li-uid and marketed to market, it enables investors to continuously
evaluate the portfolio and manage their risks more efficiently.
$&387)T0 34 27T7A, 47.8 :
2utual funds are investment portfolios that invest financial market
instrument .These portfolio are created by pooling investor
contributors, usually denominated in units. There are a variety of ways
which mutual funds are created, to cater to varied risk and return
re-uirement of investors. 8epending on the investment portfolio that
is created, and the segment of the various markets in which funds are
invested, there is a choice of funds to investors.

65.5&I) )G3I)50 T3 27T7A, 47.8 I.?50T3&
Nature of participation :
!. 3$5.1 5.858 47.80 / In an open ended fund, investors can
buy and sell units of the fund, at .A? related prices, at any time
directly from the fund. This is called an open ended fund because
the pool of funds is open for additional sales and repurchases.
Therefore, both the amount of funds, that the mutual fund manages
and the number of units, vary everyday. The price at which
investors buy or sell units is linked to the .A?. 3pen1ended funds
have to balance the interests of the investors who come in,
investors who go out and investors who stay invested.
#. ),305815.8 47.80 / A closed1end fund is open for sale to
investors for a specific period, after which further sales are closed.
Any further transaction for buying the units or repurchasing them,
happen in the secondary markets, where closed end funds are
listed. Therefore , new investors buy from the e*iting investors
,and e*iting investors can li-uidate their units by selling them to
other willing buyers . In closed end fund, thus the pool of funds can
technically be kept constant . Investors in close end funds receive
either certificates or depository receipts, for their holding in a close
end mutual funds.
Nature of income distribution :
!. 8ividend 3ption / Investors, who choose a dividend option on their
investments, will receive dividend from mutual fund, as and when
such dividends are declared.
#. 6rowth 3ption/ Investors who do not re-uire periodic income
distributions can choose the growth option, where the incomes
earned are retained in the investment portfolio, and allowed to
grow, rather than being distributed to investors.
%. &e1investment 3ption/ 2utual funds also provide another option to
investors in the form of re1investment. Investors re1invest the
dividends that are declared by the mutual fund, back into the fund
itself at .A? that is prevalent at the time of re1investment.
T>$50 34 $&387)T 3445&58 ;>
27T7A, 47.8/
!. 5=7TI> 47.80/ 5-uity funds are those that invest pre1
dominantly in e-uity share of companies. There is variety of ways
in which an e-uity portfolio is created for the investors.
Types of 0chemes in 5-uity 4unds/
&5,IA.)5 6rowth 4und
&5,IA.)5 ,ong Term Advantage 4und
&5,IA.)5 Inde* 4und
&5,IA.)5 5-uity 4und
&5,IA.)5 )apital ;uilder 4und
&5,IA.)5 Ta* saver 4und
&5,IA.)5 Top #DD 4und
&5,IA.)5 )ore H 0atellite 4und
&5,IA.)5 $remier 2ulti1)ap 4und
&5,IA.)5 ,ong Term 5-uity 4und
#. 85;T 47.8/ 8ebt funds are those that invest pre1dominantly in
debt securities. 0ince most securities pay periodic interest to
investors, these funds are also known as income funds. Gowever, it
must be remembered that funds investing in debt securities
compromise of long term instruments such as bond issues by
central and state government, public sector organi<ations, public
financial institutions and private sector companies, and short term
instruments such as call money lending , commercial papers,
certificates of deposits and treasury bills.
Types of 0chemes in 8ebt 4unds/
&5,IA.)5 Income 4und
&5,IA.)5 ,i-uid 4und
&5,IA.)5 6ilt 4und 0hort Term $lan
&5,IA.)5 ,i-uid 4und A $&52I72 $,70
&5,IA.)5 0hort Term1 $&52I7.2 $,70 $,A.
&5,IA.)5 Gigh Interest 4und
&5,IA.)5 )ash 2anagement 4und
&5,IA.)5 2onthly Income $lan
&5,IA.)5 2ultiple >ield 4und
&5,IA.)5 4i*ed 2aturity $lan
%. ;A,A.)58 47.8/ 4unds that invest both in e-uity and debt
markets are called balanced funds. A typically balanced fund
would be almost e-ually invested in both the markets. The
variations are funds that invest pre1dominantly in e-uity 9about
CDE: and keep smaller part of their portfolios in debt securities. A
balanced fund also tends to provide investors e*posure to both
e-uity and debt markets in one product.
Types of 0chemes in ;alanced 4und/
&5,IA.)5 )hildrens 6ift 4und Investment $lan
&5,IA.)5 )hildrens 6ift 4und 0avings $lan
&5,IA.)5 ;alanced 4und
&5,IA.)5 $rudence 4und
Investment managers charge a fee for managing funds, and also impose
certain operational costs on the investment income of a fund. These are
usually called load. Fhether the investors or the A2)s bear these costs
in what differentiates a load fund and a no1load fund.
,3A8 / ,oad is the factor that is applied to the .A? of a scheme
to arrive at the price. If a commission is paid to agents, to bring in
new business, this represents a cost incurred by the mutual fund,
for the additional sales. The fund may therefore decide that
investors, who are already in the scheme, need not bear this cost.
Therefore it may decide to impose this cost on the new investors,
by increasing the price at which they can buy units. This is called
the "entry load or the "sales load .
0imilarly, if investors stays in a fund for a short while, and decided
to repurchase his units, the fund may incur same costs in
li-uidating the portfolio and paying off this investor. The fund may
want to impose the costs of this operation on the e*iting investor,
in form of a load. This is called an "e*ist load .
0A,5 A.8 &5$7&)GA05 $&I)5 / The sale price is that price at
which a mutual fund is willing to sell the units to investors. An
investor, who buys or invests in a mutual fund, pays the sales price.
The repurchase price represents the price at which the mutual fund
is willing to buy the units back from the investor. That is the price
at which the investor can sell his holdings to mutual fund. The
mutual fund decided the sale and repurchase price, based on the
.A? of the scheme. Gowever, mutual funds did not make units
available for sale and repurchase at the .A? of the scheme. They
can alter the .A? by a factor called the "load and charge a
different sale and repurchase prices.
The structure of mutual funds in India is governed by the 05;I
&egulations, !@@+. The regulations make it mandatory for mutual funds
to have a three1tier structure of 0ponsor A Trustee A A2) . The sponsor
is the promoter of the mutual fund, and appoints the Trustee. The trustees
are responsible to the investors in the mutual fund, and appoint the A2)
for managing the investment portfolio. The A2) is the business face of
the mutual fund, as it manages all the affairs of the mutual fund. The
mutual fund and the A2) have to be registered with 05;I.
1. Sponsor :
The 0ponsor is the promoter of the mutual fund. The sponsor
establishes the mutual fund and registers the same with 05;I.
87TI50 34 0$3.03& /
!: 0ponsor appoints the trustees, custodians and the A2) with prior
approval of 05;I and in accordance with 05;I regulations.
#: 0ponsor must be carrying on business in financial services for a
minimum period of five years.
%: .et worth of sponsor is positive in all preceding five years.
': .et worth in immediately proceeding year is more than capital.
(: 0ponsor must have been profit making in at least % of the
immediately preceding ( years including the (
+: 0ponsor must contribute at least 'DE of the net worth of the A2).
0T&7T7&5 34 27T7A, 47.8 /
!. )ompany form, in which investors hold shares of the mutual fund.
In this structure, management of the firm is in the hands of an
elected board, which in turns appoints investment managers to
manage the fund.
#. Trust form, in which the funds of investors are held by a trust, on
behalf of the investors. The trust appoints investment managers and
monitors their functioning in the interest of investors.
2A.A6I.6 TG5 27T7A, 47.8 / The sponsor acting through the
trustee appoints all the functionaries re-uired for managing the investors
money. The functionaries are as follows /
!. Investment managers known as the A2).
#. &egistrars H transfer Agents.
%. ;rokers
'. 0elling H 8istribution Agents .
(. )ustodians
+. 8epository $articipants.
C. ,egal Advisor and Auditors.
2. Trustees :
The mutual fund, which is a trust is managed either by a Trust
company or a ;oard of Trustees. ;oard of trustees and trust companies
Are governed by the provisions of the Indian Trust Act. If the trustee is a
company, it is also subjected to the provisions of the Indian )ompanies
Act. It is responsibility of the trustees to protect the interest of the
investors, whose fund is managed by the A2).
&I6GT0 34 TG5 T&70T550 /
!. Trustees appoint the A2), in consultation with the sponsor
and according to 05;I regulations.
#. All mutual fund schemes floated by the A2) have to be
approved by trustees
%. Trustees can seek information from the A2) on the
operations and compliance of the mutual fund, with
provision of the trust deed, investment management
agreement and the 05;I regulations. These mandatory
reviews and monitoring are to be made on -uarterly basis.
'. Trustees can seek remedial action from A2) and in the
e*treme situation of dissatisfaction with performance,
dismiss the A2).
3.AMC- Asset Manageent C!"an# :
The trustees on the advice of the usually appoints the A2). The trust
deed authori<es the trustees to appoint the A2). The A2) is usually a
private limited company , in which the sponsors and their associates or
joint venture partners are shareholders. The A2) has to be a 05;I
registered entity, and should have minimum net worth of &s. !D )r. The
trustees sign an investment management agreement with the A2),
which spells out the functions of the A2).
&567,AT3&> &5=7I&525.T 43& TG5 A2) /
!. 3nly 05;I registered A2)s can be appointed as investment
managers of mutual funds.
#. A2) must have a minimum net worth of &s. !D )r. at all times
%. An A2) cannot be an A2) or Trustees of another mutual fund.
'. At least half of the members of the board of an A2) have to be
independent .
(. The investment management agreement entered into the trustees
and the A2), spells out the rights and obligations of both parties.
T>$50 34 A2)s. /
A2)s owned by banks .
A2)s owned by financial institutions.
A2)s owned by the Indian private sector companies.
A2)s owned by the foreign institutional investors.
A2)s owned jointly by Indian and foreign sponsors.
3;,I6ATI3.0 34 TG5 A2)s /
!. Investments have to be according to the investment management
agreement and the 05;I regulations.
#. The actions of its employees and its associates have to be as
mandated by the trustees.
%. A2)s have to submit detailed -uarterly reports on the working
and performance of the mutual fund, and compliance with 05;I
'. A2)s have to make the necessary statutory disclosures on
portfolio, .A? and price to investors.
&50T&I)TI3.0 3. TG5 ;70I.500 A)TI?ITI50 34 A2)s /
!. The A2) shall not act as a trustee of any mutual funds.
#. A2) shall not undertake any business activity e*cept in the nature
of portfolio management services, management and advisory
services to offshore funds etc, provided these activities are not in
conflict with activities of mutual fund.
%. A2) shall not invest in any of its scheme unless full disclosure of
its intention to invest has been made in the offer document.
The mutual fund is re-uired to file with the 05;I a detailed
information memorandum in a prescribed format that provides all the
information about the fund and the scheme. This document is also
called as the $rospectus or the offer document and is very detailed and
contains most of the relevant information that an investor would need.
An abridged version of the offer document, in a prescribed format, is
appended to the application form. Investors can get a summary of the
other document, in the abridged version, which is also called as the
key information memorandum. Investors have the right to ask for a
free copy of the offer document.
3ffer document is very important for the following reasons/
!. Information about the scheme, and is fundamental attributes,
are specified in the offer document. Therefore it forms the
basis for the investors decisions.
#. 3ffer document is a legal document that specifies the details
of the offer made by the mutual fund, and before buying the
mutual fund product, and investor must read and understand
the terms of the offer.
!. $reliminary Information.
#. 4und1specific Information
%. 0cheme attributes
'. 8etails of the scheme being offered
(. ,oads, fee structure and e*penses
+. 7nit holders rights
C. Associate transaction
!. .ame of the mutual
#. .ame of the 0cheme
%. Type of the 0cheme 9growth, income , balanced :
'. .ame of the A2)
(. )lasses of units offered for sale
+. $rice of units
C. .ame of the guarantor in case of assured return schemes
B. The opening, closing and earliest closing date of the offer
@. 2andatory statements

0tandard risk factors are 05;I stipulated factors that apply for mutual
fund products as a category. These have to be stated in the first section of
the offer document .The standard risk factors are/
2utual fund and securities investments are subject to market risks
and there is no assurance or guarantee that the objectives of the
mutual fund will be achieved.
As with any investment in securities, the .A? of units issued
under the scheme can go up or down, depending on factors and
forces affecting capital markets.
$ast performance of the sponsorIA2)I2utual fund dose not
indicate the future performance of the scheme.
The name of the scheme does not in any manner indicate other
-uality of the scheme or its future prospects and returns.
&isk associated with the use of derivative instruments, if the fund
plans to use such instruments.
!. &isk arising from investment objective, investment strategy
and asset allocation of a scheme.
#. &isk arising from non1diversification.
%. If a scheme offers assured returns, the scheme must state that
the assurance is on the basis of guarantees provided by
sponsorIA2). The net worth and li-uidity of such guarantor
should also be disclosed.
'. If the A2) has no previous e*perience in managing a
mutual fund, a disclosure to the affect that this is the first
scheme being launched under its management should be
0ince the offer document is very detailed, it is not feasible for mutual
funds to provide them to all prospective investors. 05;I regulation allows
mutual funds to summari<e the key points in a summary document called
the key information memorandum. It is mandatory that the key
information to all investors, along with the application forms.
Investment plans are the different ways to reinvest in a scheme by
investor. These are services offered by different mutual funds to their
investors. These plans provide variable degree of convenience and
fle*ibility to the investors.
!. 0ystematic investment plan 90I$:
#. Automatic &einvestment plan 9A&$:
%. 0ystematic Transfer plan 90T$:
'. 0ystematic Fithdrawal plan 90F$:
The si<e of the company in the e-uity markets is determined by the
number of the shares issued by the company times the market price at
which the shares are traded. This number is called as market
capitali<ation. If the market capitali<ation of the company is high, we call
such a company as a large1cap company. )ompanies which are closely
held, or are very small , tend to have a smaller market capitali<ation.
These are called as small1cap companies. &esearch has shown that small1
cap companies tend to be higher than that of large1cap companies.
05;I regulations provide prudential guidelines regarding the investment
management function of the mutual fund . The following are some of the
significant regulatory re-uirements /
!. 2utual fund can invest only in marketable securities.
#. All investment by the mutual fund has to be the delivery basis that
is a mutual fund has to pay for each buy transaction, and delivery
securities for every sell transactions. It cannot enter into trades with
the view to s-uaring off the positions.
%. A mutual fund under all its schemes cannot hold more than !DE of
the paid1up capital of a company.
'. 5*cept in the case of 0ectoral funds and inde* funds, a mutual fund
scheme cannot invest more than !DE of its .A? in a single
(. Investments in rated investment grade issues of a single issuer
cannot e*ceed !(E of the net assets can be e*tended to #DE , with
the approval of the trustees.
+. Investment in unlisted shares cannot e*ceed (E of net assets for an
open1ended scheme, and !DE of net assets for a closed end
C. 2utual funds invest in a limited manner in treasury bonds and
AAA rated corporate debt issued outside India.
After the product has been planned, the channels of distribution of the
product decided and the price structure evolved the ne*t step is to decide
upon the promotional activities that the firm may follow . It has rightly
been said, .othing happens until somebody sells something. This gives
in a nutshell the philosophy of promotional activities . The promotional
activities are concerned with . / 9!: I.43&2I.6 the people about
products distinctive want satisfying characteristics and its availability, 9#:
&52I.8I.6 people periodically about the product and its role and 9%:
$5&07A8I.6 the people I prospective buyers that make people to do
what they might not otherwise do what they dont really want to do.
$romotion is the all inclusive term representing the broad field1
advertising, personal selling and sales promotion.
These are printed in form in four to si* pages or even more.
They give information about the goods and services in greater details
with the help of figures and illustrations in black and white or colors.
$ublishers, travel agencies, tourist departments , life insurance
companies, medical firms or prestigious industrialists etc often use them.
At the last page of browsers they are giving information related to
&5,IA.)5 2utual 4und and services offered by them and about all
It has been perceived that there is huge potential market in &ajkot
city. The strategy is to know the consumer needs H their behavior
towards various available Investment options such as 0ecured Investment
?Is &isk taking Investment.
This is an analytical research. The consumer behavior towards
2utual 4unds is to find out when they have different options available in
the market for investment . 8uring the time of recession in the market
there was a serious shortage of short term management of funds in the
hands of people .
$rimary 3bjectives /
The study of 2utual 4unds market in &ajkot was conducted
with the primary objective to know the reason why do people prefer
2utual 4unds during the time of recession in market.
0econdary 3bjectives /
!. To know the awareness of 2utual 4unds in the markets of
#. To generate the awareness about 2utual 4unds .
%. To know the investment objective, safety level and time
period of investment
'. To know the share of 2utual 4unds in investment portfolio
of investors.

0A2$,5 0IJ5 /
!DD &espondents.
A&5A )3?5&58 /
I.0T&725.T 7058 /
=uestionnaire 0tructure /
=uestionnaire 0tructure refers to the se-uence in
which the various subjects should appear on the -uestionnaire. The
=uestionnaire 0tructure is generally divided into five steps.
!:. 3pening or ,ead in =uestions /
To start the flow of the response and gain
#:. =ualifying =uestions /
To find out whether a person is of the right type
to provide the correct information.
%:. Farm1 7p =uestions /
To direct the thinking and memory.
':. 0pecifies /
To find out the real information sort by the study.
(:. 8emographic study /
To describe the person who responded study.
=!. Age 6roup of &espondents.
Age group
Results (percentage)
Below 25
above 45

The above findings show that most of the
respondents are of age of %+1'( because they have more knowledge
about the investment criteria in 2utual funds H other investment
instruments. And second age group is below #(.

=#. Average >early Income.
Average yearly income
Results (percentage)
Below 100000
400000 & more

The findings presented in the
above graph show that more respondents have there yearly income
between #,DD,DDD1',DD,DDD. As they more investment re-uirement so
they more interest in investment.
=%. 3ccupation of respondents.



The above graph shows that the most of
the respondents approached are of business class as they have to watch
more about the investment portfolio and other sector people like job H
professionals have a fi*ed income level so they are less interested in
taking risk.
='. Investment Instruments.
The data above shows that today
everyone is interest in investing in different instruments provided by the
different institutions. 2ore H more people are investing in different
options of investments.
=(. Investment 3ptions provided to &espondents.
Investment Options




The more preferred investment option by the
respondents is 2utual fund as it provides more safety on investments
=+. 4re-uency of investments.
Frequency of Investment
1-15 0a1s
15-30 0a1s
1-3 ,ont's
3-6 ,ont's
6-12 ,ont's
1- ,ore
The fre-uency in which the more
investment is done is between ! month to %months. And the less
fre-uency is !day to !( days.
=C Awareness about Investment )ompany of 24.
Different MF Investment
0 5 10 15 20 25 30
Rel ,-
-ran/ln ,-
$B+ ,-
20-3 ,-
4545 ,-
% Investment
The more awareness and interest for investment in
2utual 4unds is about &eliance 2utual funds. As more people are aware
about &eliance 24 . 0econd important investment interest is in G8)4
24. Fhereas TATA 24 H 0;I 24 are having e-ual awareness .
=B. Interested to know more about 24.
)es 67
*o 21
In todays business world people are more
interested to know that how they save there income by investing it into
different instruments .0o about C@E of people in &ajkot are interested in
knowing more about 24.
The respondents meet for the research report were mainly of
business sector so they were mostly affected by the market trends as they
are the part in which affects the market in a manner so they are directly
affected by the market . In such sector to respondents they manage their
short term cash by using them in their working cycle or some part is left
Fhile, the other sectors of the survey were of service H
professionals as they are not a part of business trends they dont have any
working capital to invest whatever they earn is liable for their personnel
use, e*cept their personal e*penses nothing is dont by them from their
money so they are least affected by the market trends .
2utual fund trend is fast growing trend in the city . As it has
developed a lot. There is very huge no. of people who are aware about
2utual fund

!. 0pread awareness more about 24 on larger H private basis.
#. There should be more private approaches towards potential
%. 2ore local advertising, through newspaper a local means of
communication should be used.
.o firm can work for the shake of work. 5ach and every firm wants to
have their own prestige in market there can be many other objectives like
to earn more profit to satisfy customers need, to maintain -uality . ;ut
none of above can be achieved or got without analy<ing firms own
performance. A firm having sound performance assessment policy will be
succeeding in the up coming future.
5very firm wants to compare its performance but we all know that if any
firm will not consider its weakness in performance assessment, it cannot
say that we are not lacking anywhere. In real, it is lacking but due to lack
of vision they are saying so.
There fore, 0F3T analysis is one of the tools to measure company
performance. It includes 0trengths Feakness, 3pportunities and Threats .
4or any particular firm this is the parameter which includes both the
aspects i.e. area which has been already improved and areas which are
needed to be improved . A firm has try to develop its weak areas retain its
strengths look for new opportunities with considering competitors
upcoming strategies that is what 0F3T is all about.
?A0T A&5A 34 05&?I)50.
6338 I.)&58I;I,IT>
F5,, 850I6.58 )7,T7&5
8I0$AT)G 85$A&T25.T T3 ;5 0>0T52IJ58

T3 I.?50T I. &5A, 5A0TAT5.
T3 5.T5& I. )32238IT> 2A&K5T.
83250TI) )32$5TIT3&0
85$5.80 3. 3TG5& )32$A.I50 A.8 TG5I& 0IT7ATI3..
After completion of this research report I have found out
that the most part of the people in &ajkot are aware about the concept of
2utual funds and its working but they are somewhat not ready to take
risk in investing in 2utual funds as the investment option preferred bye
the people are government schemes and banks as they bring in sure
amount of interest and there is safety in such options . The customers in
&ajkot are not ready to take high risk in investment. ;ut segment which
suits the 2utual 4unds concept as the right investors so the company
should try to tap on such potential customers H create more surety of
returns in their investment.
2arketing 2anagement
;y $hillip Kotler