A PROJECT REPORT

ON

MUTUAL FUND INVESTMENT

Submitted in partial fulfillment for

MASTER OF BUSINESS ADMIMISTRATION

Program of

STEVENS BUSINESS SCHOOL

GANDHINAGAR

Submitted by: Submitted to:

Nirav Patel Dr. Himani Joshi
Mitesh Shah Academic Coordinator,
Hiren Darji Stevens Business School
Punit Laheru
Bhupendra Zala
Keyur Savalia

1|Page
 Acknowledgement

It is indeed an opportunity to prepare a report on Mutual fund and consumer behavior

towards the investment in Mutual fund. Preparation of such type of report calls for
intellectual nourishment, professional help and encouragement from many areas.

We would like to thank Stevens Business School for the compulsion of this most
wonderful aspect of our MBA curriculum without which knowledge of management
studies is incomplete and futile.

We would like to thank and express my gratitude to Dr. Himani Joshi for providing us
her guidance and co- operation.

Further, we are thankful to all the respondents of our questionnaire who spared there time
from their busy schedule and obliged us by giving their co-operation and the information
we needed

Lastly, we would like to thank to all those who had helped us directly or indirectly in
completing this project successfully.

2|Page
 EXECUTIVE SUMMARY

In few years Mutual Fund has emerged as a tool for ensuring one’s financial well being. Mutual
Funds have not only contributed to the India growth story but have also helped families tap into
the success of Indian Industry. As information and awareness is rising more and more people are
enjoying the benefits of investing in mutual funds. The main reason the number of retail mutual
fund investors remains small is that nine in ten people with incomes in India do not know that
mutual funds exist. But once people are aware of mutual fund investment opportunities, the
number who decide to invest in mutual funds increases to as many as one in five people. The
trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer
is to understand which of the potential investors are more likely to buy mutual funds and to use
the right arguments in the sales process that customers will accept as important and relevant to
their decision.

This Project gave me a great learning experience and at the same time it gave me enough scope
to implement my analytical ability. The analysis and advice presented in this Project Report is
based on market research on the saving and investment practices of the investors and preferences
of the investors for investment in Mutual Funds. This Report will help to know about the
investors’ Preferences in Mutual Fund means Are they prefer any particular Asset Management
Company (AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they
prefer or Which Investment Strategy they follow (Systematic Investment Plan or One time Plan).
This Project as a whole can be divided into two parts.

The first part gives an insight about Mutual Fund and its various aspects, the Company Profile,
Objectives of the study, Research Methodology. One can have a brief knowledge about Mutual
Fund and its basics through the Project.

3|Page
The second part of the Project consists of data and its analysis collected through survey done on
40 people. For the collection of Primary data we made a questionnaire and surveyed of 40
people.

4|Page
 TABLE OF CONTENTS
Sl. No. Particular Page No.
1 Acknowledgement 2
2 Executive Summary 3
3 Introduction 6
4 Beta value 7
4.1 Public mutual fund-stat bank of India mutual fund 8

4,2 Comparison between ABIMF in oil and petroleum sector and sensex 9
Comparison between NAV(net asset value) in SBIMF schemes in 2008 and
4.3 10
2009 for reliance industry ltd
Comparison between market vale in SBIMF schemes in 2008 and 2009 for
4.4 11
reliance industry ltd
4.5 Comparison between MAV in SBIMF schemes in 2008 and 2009 for ONGC 12
Comparison between market vale in SBIMF schemes in 2008 and 2009 for
4.6 13
ONGC
4.7 Private mutual fund in oil and petroleum sector:-JM finance mutual fund 14
Comparison between market value in JM finance mf schemes in 2008 and
4.8
2009 for reliance industry ltd
Comparison between NAV in JM finance mf schemes in 2008 and 2009 for
4.9
ONGC
4.10 JM arbitrage fund with different market value and different % MAV

5 Research Objective 19
6 Data analysis and interpretation 21
6.1 Age distribution of Investors in Ahmedabad. 21

6.2 Qualification of Investors. 21

6.3 Occupation of the Investors. 21

6.4 Income of the Investors. 23

6.5 Perception of the investors about Investment. 24

6.6 People who are investing. 25

6.7 Type of the investment people have. 26

6.8 Purpose of Investment 27

6.9 Criteria for Investment. 28

Investment in different Mutual fund
6.10 29

5|Page
 6.11 Term of Investment in Mutual fund. 30

5.12 Sources of Investment in Mutual fund. 31

6.13 Most preferred AMC by Mutual fund Investors. 32

6.14 Investment in particular Sector. 33

6.15 Criteria for future investment among the Investors. 34

7 APPENDIX-1 35
8 APPENDIX-2 39

6|Page
 INTRODUCTION

What is Mutual Fund?

A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to
pool their money together with a predetermined investment objective. The mutual fund will have a fund
manager who is responsible for investing the gathered money into specific securities (stocks or bonds).
When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on
investing becomes a shareholder or unit holder of the fund.

Mutual funds are considered as one of the best available investments as compare to others they are very
cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can
purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the
biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns.

7|Page
BETA VALUE
Every investment involves risk, and it's important to determine how much risk is appropriate for
any fund that you are considering. Risk means making less than your planned return or even
losing capital. Research by behavioral economists suggests that most people feel twice the pain
over a financial loss as they do pleasure in an equivalent gain.

Although not exactly ideal, the standard deviation (dispersion around the mean return) is
generally accepted as a measure of risk. Unlike the standard deviation, Beta measures the
volatility of a fund relative to a benchmark index. Funds of the same type can have significantly
different levels of risks. For example, funds that put in the best performances throughout the bull
market of the 1990s, such as technology and Internet sector funds, usually are ranked very low in
terms of risk-adjusted performance. Put another way, investors were exposed to an extreme level
of volatility in return for those stellar returns. Fund-rating services such as Morningstar and
Value Line rank risk in terms of Beta, a measurement of how volatile a fund is in comparison to
a benchmark market indicator, such as the Standard & Poor's 500-stock index. A fund with a
Beta of higher than 1.0 (1.0 = the benchmark index) would be expected to outperform the
market, while one below that figure would likely underperform. But a Beta of greater than 1.0
also means the fund is volatile. In bear markets, the value of these funds may fall much more
than the major market indexes.

Beta, a component of Modern Portfolio Theory statistics, is a measure of a fund's sensitivity to

market movements. It measures the relationship between a fund's excess return over T-bills and
the excess return of the benchmark index. Betas are typically, but not always, calculated over the
last 36 months. A broad-based index for the U.K. economy is the financial Times all share index.
In the U.S., equity funds are typically compared with the S&P 500 index; bond funds are
compared with the Lehman Brothers Aggregate Bond index. Canadian equity fund Betas are
typically calculated relative to the TSX/S&P family of indexes and Canadian bond fund Betas
are typically calculated relative to the Scotia Capital Markets Universal bond index.

Here JM Basic fund has BETA value 1.25

SBI Magnum Multi Cap Fund has BETA value 0.87

8|Page
PUBLIC MUTUAL FUND-STAT BANK OF INDIA MUTUAL FUND
(SBIMF)

SBIMF(STAT BANK OF INDIA MUTUAL FUND)

YEAR(FINANCIAL YEAR) SENSEX(ON TOTAL INVESTMENT IN
YEAR ENDING) INVESTMENT OIL AND
(RS IN BILLIONS) PETROLEUM
SECTOR(RS IN
BILLIONS)
1ST APRIL 2005-31ST MARCH 2006 11279.96 1122 106.45
1ST APRIL 2006-31ST MARCH 2007 13072.10 1290 131.45
1ST APRIL 2007-31ST MARCH 2008 15644.44 1416 134.52
1ST APRIL 2008-31ST MARCH 2009 9708.5 1667 155.67

INVESTMENT OF SBIMF:-
INVESTMENT IN BILLIONS OF Rs

2000
1800
1600
1400
1200
1000 1667
800 1290 1416 TOTAL INVESTMENT (Rs IN BILLIONS)
600
1122
400 INVESTMENT IN OIL AND
200 131.45 134.52 155.67
0 106.45 PETROLIUM SECTOR(Rs IN BILLIONS)
AS ON 31ST AS ON 31ST AS ON 31ST AS ON 31ST
MARCH MARCH MARCH MARCH
2006 2007 2008 2009
TIME PERIOD

INTERPRETATION:

From the above graph, we can interpret that year by year investment in Stat bank of India mutual
fund is continuously increasing and here we also conclude that around 10% of the total
investment of SBIMF is in oil and petroleum sector.

9|Page
COMPARISON BETWEEN SBIMF IN OIL AND PETROLEUM SECTOR
AND SENSEX

18000
16000
INVESTMENT AND SENSEX

14000
12000
10000
8000
6000
4000
2000
0
AS ON 31ST AS ON 31ST AS ON 31ST AS ON 31ST
MARCH MARCH MARCH MARCH
2006 2007 2008 2009
SENSEX 11279.96 13072.1 15644.44 9708.5
INVESTMENT IN OIL AND
PETROLIUM SECTORS(Rs IN 10645 13145 13452 15567
CRORES)

INTERPRETATION

From the above table we can interpret that there is continuous increase in sensex and SBIMF in
oil and petroleum sector. So, here we can say that as sensex increases SBIMF in oil and
petroleum sector also increases.

10 | P a g e
COMPARISON BETWEEN NAV (NET ASSET VALUE) IN SBIMF
SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

COMPARISION BETWEEN NAV(NET ASSET VALUE) IN SBIMF SCHEMES IN 2008

AND 2009 FOR RELIANCE INDUSTRY LTD

12
10
% OF NAV

8
6
4
2
0
MAGNUM SBI MAGNUM MAGNUM MAGNUM
INDEX FUND ARBITRAGE COMA FUND INCOME MULTICAP
OPPORTUNI PLUS FUND- FUND
TIES INVESTMEN
T PLAN
% TO NAV IN 2008 11.1 9.1 8.02 7.05 6.05
% TO NAV IN 2009 11.97 9 8.72 6.89 6.19

INTERPRETATION

From the above graph, we can interpret that there is different Net asset value (NAV) for different
kind of schemes of SBIMF. Here maximum NAV is of Magnum index fund and lowest NAV is
of Magnum multicap fund. From the graph, we also conclude that there is increase in NAV in
2009 as compare to year 2008.

11 | P a g e
COMPARISON BETWEEN MARKET VALUE IN SBIMF SCHEMES IN
2008 AND 2009 FOR RELIANCE INDUSTRY LTD

COMPARISON BETWEEN MARKET VALUE IN SBIMF SCHEMES IN 2008

AND 2009 FOR RELIANCE INDUSTRY LTD

16000
MARKET VALUE(RS IN LAKH)

14000
12000
10000
8000
6000
4000
2000
0
MAGNU SBI ONE SBI MAGNU MAGNU
M TAX INDIA BLUECHIP M M COMA
GAIN FUND FUND MULTICA FUND
SCHEME- P FUND
1993
MARKET VALUE (Rs IN LAKH)-2008 14771.06 7820.25 5381.49 4761.11 4576.55
MARKET VALUE (Rs IN LAKH)-2009 14508.94 3051.59 4179.6 2740.98 3459.19

INTERPRETATION

From the above graph, we can interpret that the market value of Magnum tax gain scheme-1993
is highest in 2008 while the market value of SBI one India fund is lowest in 2009 and we can
conclude that market value of each scheme in 2009 is less as compare to market value of those
schemes in 2008.

12 | P a g e
COMPARISON BETWEEN NAV IN SBIMF SCHEMES IN 2008 AND 2009
FOR ONGC

COMPARISON BETWEEN NAV IN SBIMF SCHEMES IN

2008 AND 2009 FOR ONGC
9
8
7
6
Axis Title

5
4
3
2
1
0
MAGNUM SBI MAGNUM MAGNUM SBI ONE
INDEX FUND ARBITRAGE COMA FUND INVESTMENT INDIA FUND
OPPORTUNITI NRI FUND-
ES FLEXI ASSET
PLAN
% TO NAV IN 2008 7.05 6.1 4.89 3.5 2.64
% TO NAV IN2009 8.28 6 3.82 4.49 4.85

INTERPRETATION

From the above graph, we can conclude that Magnum index fund has maximum NAV in 2009
and it increase 1.23 % from 7.05% to 8.28% while SBI one India fund has the minimum NAV in
2008.

13 | P a g e
COMPARISON BETWEEN MARKET VALE IN SBIMF SCHEMES IN
2008 AND 2009 FOR ONGC

COMPARISON BETWEEN MARKET VALE IN SBIMF SCHEMES

IN 2008 AND 2009 FOR ONGC

10000
9000
8000
MARKET VALUES

7000
6000
5000
4000
3000
2000
1000
0
MAGNUM SBI ONE MAGNUM SBI SBI
TAX GAIN INDIA SECTOR ARBITRAGE BLUECHIP
SCHEME- FUND FUNDS OPPORTUN FUND
1993 UMBRELLA- ITIES
CONTRA
FUND
MARKET VALUE (Rs IN LAKH)-2008 6743.75 4416.07 4072.6 3089.04 2995.51
MARKET VALUE(Rs IN LAKH)-2009 9586.65 3508.65 6277.4 347.36 2083.7

INTERPRETATION

From the above graph, we can interpret that market value of magnum tax gain scheme-1993 is
more in 2009 as compare to it’s market value in 2008. While the lowest market value of SBIMF
scheme is SBI arbitrage opportunities in 2009 which is around only 10% of its market value of
2008.

14 | P a g e
PRIVATE MUTUAL FUND IN OIL AND PETROLEUM SECTOR
JM FINANCE MUTUAL FUND

COMPARISON BETWEEN NAV (NET ASSET VALUE) IN JM FINANCE

MF SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

COMPARISON BETWEEN NAV(NET ASSET VALUE) IN JM FINANCE MF

SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

12
10
% TO NAV

8
6
4
2
0
JM NIFTY JM TAX JM JM EQUITY JM BASIC
PLLUS GAIN FUND ARBITRAGE FUND FUND
FUND ADVANTAG
E FUND
% TO NAV-2008 8.5 10.11 2.35 2.09 0.02
% TO NAV 2009 8.6 7.18 6.21 4.05 0.06

INTERPRETATION

From the above graph, we can interpret that JM tax gain fund scheme has highest NAV which is
10.11% in 2008 and JM basic fund has lowest NAV which is o.o2% in 2008.

15 | P a g e
COMPARISON BETWEEN MARKET VALUE IN JM FINANCE MF
SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

COMPARSION BETWEEN MARKET VALUE IN JM FINANCE SCHEMES IN 2008 AND

2009 FOR RELIANCE INDUSTRY LTD

700
MARKET VALUE (Rs INLAKH)

600
500

400
300

200

100
0
JM NIFTY JM TAX JM JM EQUITY JM BASIC
PLUS FUND GAIN FUND ARBITRAGE FUND FUND
ADVANTAG
E FUND
MARKET VALUE (Rs IN LAKH)-2008 235.45 465.41 680.93 157 20.72
MARKET VALUE (Rs IN LAKH)-2009 257.65 236.76 383.54 235.5 46.83

INTERPRETATION

From the above graph, we can interpret that JM arbitrage advantage fund has highest market
value in 2008 which is Rs. 680.93 lakhs and the lowest market value is of JM basic fund in 2008
which is Rs. 20.72 lakhs.

16 | P a g e
COMPARSION BETWEEN NAV IN JM FINANCE MF SCHEMES IN 2008
AND 2009 FOR ONGC

COMPARSION BETWEEN NAV IN JM FINANCE MF

SCHEMES IN 2008 AND 2009 FOR ONGC
% NAV IN 2008 AND 2009

7
6
5
4
3
2
1
0
JM ARBITRAGE JM EQUITY FUND JM NIFTY PLUS
ADVANTAGE FUND
FUND
% TO NAV IN 2008 1.52 3.6 5.98
% TO NAV IN 2009 6.77 4.3 2.38

INTERPRETATION

From the above graph, we can interpret that JM arbitrage advantage fund has highest NAV in
2009 which is 6.77% NAV while it is lowest in 2008 which value is 1.52%NAV.

17 | P a g e
JM ARBITRAGE FUND WITH DIFFENT MARKET VAUE AND
DIFFERENT % NAV

JM ARBITRAGE FUND
YEAR ISSUER MARKET VALUE(Rs IN LAKHS) % TO NAV
31-03-2008 PETROLIUM PRODUCTS 8363.78 11.84
OIL SECTOR 1072.98 1.52
30-09-2008 PETROLIUM PRODUCTS 2990.95 6.04
OIL SECTOR 1965.42 6.77
31-03-2009 PETROLIUM PRODUCTS 680.93 2.35
OIL SECTOR 1395.2 2.26
30-09-2009 PETROLIUM PRODUCTS 3832.54 6.21
OIL SECTOR 257.93 0.44
30-01-2010 PETROLIUM PRODUCTS 2380.88 4.05

INTERPRETATION

From the above table we can interpret that highest NAV for petroleum sector is 11.84% NAV as
on 31st march 2008 and lowest is 2.35% NAV as on 31st march 2009. While for oil sector,
highest NAV is 6.77 %NAV as on 30th September 2008 and lowest NAV for oil sector is
0.44%NAV as on 30th September 2009. We also conclude that highest market value for
petroleum sector is Rs.8363.78 lakh as on 31st march 2008 and lowest is Rs.680.93lakhs as on
31st march 2009. While in oil sector, highest market value is Rs.1965.42 lakh as on 30th
September 2008 and lowest market vaue is Rs.257.93 lakh as on 30th September 2009.

18 | P a g e
Objective of research;

 The main objective of this project is concerned with getting the opinion of people
regarding mutual funds and what they feel about availing the services of financial
advisors.
 We have tried to explore the general opinion about mutual funds. It also covers why/ why
not investors are availing the services of financial advisors.

Scope of the study:

The research was carried on in the West Region of India. It is restricted to Ahmedabad. We have
visited people randomly nearby my locality, different shopping malls, small retailers etc.

Data sources:

Research is totally based on primary data. Secondary data can be used only for the reference.
Research has been done by primary data collection, and primary data has been collected by
interacting with various people.

Sampling:

 Sampling procedure:

The sample is selected in a random way, irrespective of them being investor or not or
availing the services or not. It was collected through mails and personal visits to the
known persons, by formal and informal talks and through filling up the questionnaire
prepared. The data has been analyzed by using the measures of central tendencies like

19 | P a g e
 mean, median, mode. The group has been selected and the analysis has been done on the
basis statistical tools available.

 Sample size:

The sample size of my project is limited to 40 only.

 Sample design:

Data has been presented with the help of bar graph, pie charts, line graphs etc.

20 | P a g e
 DATA ANALYSIS AND INTERPERTETION

1.(a) Age distribution of Investors in Ahmedabad.

18
20
Table-1 15
Age No. of investors

No. of investors
7 8
Less then 25 3 10
3 4
26 to 35 7 5
36 to 45 18
46 to 55 8 0
Above 56 4 Less 26 to 35 36 to 45 46 to 55 Above
then 25 56
Age group

Interpretation:

According to this chart out of 40 Mutual Fund investors in Ahmedabad the most are in the age
group of 36-45 yrs. i.e. 60%, the second most investors are in the age group of 46-55yrs i.e. 26%
and the least investors are in the age group of below 25 yrs.

21 | P a g e
1.(b) Qualification of Investors.

Others
15%
Investors
Table-2
Graduation/PG 26 Under
Graduate
Under Graduate 8 20%
Others 6 Graduatio
n/PG
65%

Interpretation:

Out of 40 Mutual Fund investors 65% of the investors in Ahmedabad are Graduate/Post
Graduate, 20% are Under Graduate and 15% are others (under HSC).

1.(c) Occupation of the Investors.

Table-3
Government sec. 8 Occupation
Private sec. 16
Government sec.
Business 12
Other 4 Private sec.
Business
Other

Interpretation:

In Occupation group out of 40 investors, 40% are Pvt. Employees, 30% are Businessman, 8% are
Govt. Employees and 5% are in others.

22 | P a g e
1.(d) Income of the Investors.

Table-4
Income per month
Up to Rs.10,000 4
Rs. 10,001 to 15000 5
Rs. 15,001 to 20,000 8
Rs. 20,001 to 30,000 13
Rs. 30,001 and above 10

14
12
10
8
6
4
2
0
Up to Rs. 10,001 to Rs. 15,001 to Rs. 20,001 to Rs. 30,001 and
Rs.10,000 15000 20,000 30,000 above

Interpretation:

In the Income Group of the investors of Ahmedabad, out of 40 investors, 33% investors that is
the maximum investors are in the monthly income group Rs. 20,001 to Rs. 30,000, Second one
i.e. 25% investors are in the monthly is income group of more than Rs. 30,000 and the minimum
investors i.e. 10% are in the monthly income group of below Rs. 10,000.

23 | P a g e
2. Perception of the investors about Investment

Table-5

Observation Responses
High future optimization 8
Recession 2
Income generation 10
Vague option 1
Tax benefit 6
Future uncertainty 13

14
12
10
8
6 13
10
4 8
6
2
2 1
0
High future Recession Income Vague option Tax benefit Future
optimization generation uncertainty

Interpretation:

As per the perception of the investors of Ahmedabad, out of 40 investors, 32.5% investors do
their investment because of the future uncertainty, 25% invest for income genereion, 20% for
high future optimization and 15% for tax benefit.

24 | P a g e
3. People who are investing.

Table-6
Observation Responses
Yes 32
No 8

32

Interpretation:

Group of the people who is investing their money is very high in proportion of the people who
do not like to invest their money which is clearly seen in the observation that 80% of the people
invest their money where as only 20% people do not like to invest their money.

25 | P a g e
4. Type of the investment people have.

Table-7
Type of investment Responses % Response
Saving account 38 95%
Insurance 32 80%
Fixed deposit 25 62.5%
Real estate 9 22.5%
Shares 24 60%
Mutual fund 30 75%
Post office 15 37%
Gold/silver 7 17.5%
PPF/PF 14 35%

40
35
30
25
20 38
32 30
15 25 24
10 15 14
5 9 7
0

Interpretation:

From the above graph it can be inferred that out of 40 people, 95% people have invested in
Saving A/c, 80% in Insurance, 65.5% in Fixed Deposits, 75% in Mutual Fund, 37% in Post
Office, 60% in Shares or Debentures, 17% in Gold/Silver and 22.5% in Real Estate.

26 | P a g e
5. Purpose of Investment

Table-8
Purpose Responses % Responses
Tax benefit 15 37.5%
Market trend 8 20%
Passion 5 12.5%
Surplus income 34 85%
Other (please specify) 10 40%

35

30

25

20
34
15

10
15
5 8 10
5
0
Tax benefit Market trend Passion Surplus income Other

Interpretation:

From the above graph it can be inferred that out of 40 people, 85% people have invested to get
surplus income, 37% for tax benefit, 20% of people influenced by market abd 40% people have a
reason like his friend told him, no specific reason etc.

27 | P a g e
6. Criteria for Investment.

Table-9
Stability of return 11
Maximum benefits 14
Low risk 5
Tax benefits 6
Other (please specify) 3
Diversification 1

Diversificatin,
Other, 3 1

Tax Stability of
benefits, 6 return, 11

Low risk, 5

Maximum
benefits, 14

Interpretation:

From the response we received and from above graph it can be inferred that out of 40 people,14
people have invested their money to get maximum benefit that may includes surplus income, 11
people have invested to get continues returns and only 1 person has invested his money for
diversification.

28 | P a g e
7. Investment in different Mutual fund

Table-10
Mutual Fund Responses %Responses
SBIMF 30 75%
UTI 14 35%
HDFC 16 40%
Reliance 32 80%
ICICI prudential funds 23 57.5%
JM finance 9 22.5%
Other (please specify) 12 30%

35
30
25
20
30 32
15
23
10 16
14 12
5 9
0
SBIMF UTI HDFC Reliance ICICI JM Other
prudential finance
funds

Interpretation:

From the above graph it can be inferred that 80% people have invested their money in Reliance
mutual fund which shows that Reliance is the most popular mutual fund, then 75% invested in
SBIMF and 57.57% in ICICI prudential mutual fund, 40% have invested in HDFC mutual fund
other mutual fund includes Kotak, ABN amro, Bank of Baroda etc.

29 | P a g e
8. Term of Investment in Mutual fund.

Table-11
One time investment 14
Monthly Systemic investment plan 22
Daily systemic investment plan 4

Daily SIP, 4

One time ,
14

Monthly
SIP, 22

Interpretation:

Above graph how those out of 40 people 22 have invested their money as a monthly Systematic
investment plan (SIP), 14 people have invested in one time investment and only 4 people have
preferred to do their investment in daily systematic investment plan. This results show that 55%
people prefers to investment in monthly SIP.

30 | P a g e
9. Sources of Investment in Mutual fund.

Table-12
Direct from the AMCs 6
Brokers only 10
Sub-brokers 20
Other sources (please specify) 4

20

15
20
10
10
5 6
4
0
Direct from the Brokers only Sub-brokers Other sources
AMCs

Interpretation:

Above graph show that out of 40, 20 people prefers to invest their money in mutual fund though
sub-brokers which includes all the agents and financial advisors, whereas 10 people do their
investment through main brokers and only 6 people have did their investment directly through
the AMCs. Here, other refers like friend and family advised them to do investment.

31 | P a g e
10. Most preferred AMC by Mutual fund Investors.

Table-12
AMCs Responses %Responses
SBIMF 28 70%
UTI 21 52.5%
Reliance 26 65%
HDFC 17 42.5%
KOTAL 12 30%
ICICI 24 60%
JM Finance 8 20%

30

25

20

15 28 26 24
10 21
17
5 12
8
0
SBIMF UTI Reliance HDFC KOTAL ICICI JM Finance

Interpretation:

Above graph shows that out of 40 people in Ahmedabad, 70% prefers that SBIMF is bets AMC
where as 65% prefers that Reliance is the most preferable. ICICI prudential fund was preferred
by 60% people and then UTI was preferred by 52.5% people. Whereas HDFC was preferred by
42.5% and Kotak and JM finance stand to 30% and 20%.

32 | P a g e
 11.Investment in particular Sector.

Table-13
Sector Responses %Responses
General fund 20 50%
Oil and petroleum 12 30%
Gold fund 8 20%
Diversified equity fund 4 10%
Power equity fund 24 60%
Debt fund 14 35%
Banking fund 28 70%
Real estate fund 33 82.5%

35
30
25
20
33
15 28
Responses

24
10 20
12 14
5 8
4
0

Sector

Inference:

Percentage obtained form the received data show that majority of the investment is done in the
Real estate i.e. 82.5%, and banking sector has an investment of 70%. After the banking sector
60% of the investment is done in the Power sector, 50% in general fund and 35% investment in
Debt fund. Where as investment in Oil and petroleum, Gold fund and Diversification is 30%,
20% and 10%

33 | P a g e
12.Criteria for future investment among the Investors.

Table-14
Growth in NAV 2
Having only debt portfolio 11
Having debt & equity portfolio 9
Only equity portfolio 18

Growth in
NAV, 2

Only Having
equity only debt
portfolio, portfolio,
18 11

Having
debt &
equity
portfolio,
9

Interpretation:

Out of 40 people 18 people looks the Only equity portfolio before investing money and 11
looked for Only debt portfolio. Whereas 9 people have looked for equity and debt portfolio. Only
2 people have a preference for investment was Growth in NAV.

34 | P a g e
APPENDIX-1

QUESTIONNAIRE

To study a preferences of the investors for investment in Mutual funds

1. What do you think about the investment?

a) High future optimization

b) Recession
c) Income generation
d) Vague option
e) Tax benefit
f) Future uncertainty

2. Have you been investing?

a) Yes b) No

3. What kind of instrument you have invested?

a) Saving account
b) Insurance
c) Fixed deposit
d) Real estate
e) Shares
f) Mutual fund
g) Post office
h) Gold/silver
i) PPF/PF

35 | P a g e
4. Why do you invest?

a) Tax benefit
b) Market trend
c) Passion
d) Surplus income
e) Other (please specify)

5. What criteria do your look during investment?

a) Stability of return
b) Maximum benefits
c) Low risk
d) Tax benefits
e) Other (please specify)
f) Diversification

6. Which of Mutual fund you have obtained?

a) SBIMF
b) UTI
c) HDFC
d) Reliance
e) ICICI prudential funds
f) JM finance
g) Other (please specify)

7. When you invest in mutual fund which mode of investment will you prefer?

a) One time investment

b) Monthly Systemic investment plan
c) Daily systemic investment plan

36 | P a g e
8. From where do you practice mutual fund?

a) Direct from the AMCs

b) Brokers only
c) Sub-brokers
d) Other sources (please specify)

9. Which of the following AMC you have approach so far? Please rank them according to
saving.

a) SBIMF
b) UTI
c) Reliance
d) HDFC
e) KOTAL
f) ICICI
g) JM Finance

10. Which of the following do you prefer?

a) General fund
b) Oil and petroleum
c) Gold fund
d) Diversified equity fund
e) Power equity fund
f) Debt fund
g) Banking fund
h) Real estate fund

11. What will you prefer from the following option for future investment in mutual fund?

a) Growth in NAV
b) Having only debt portfolio
c) Having debt & equity portfolio
d) Only equity portfolio

37 | P a g e
12. Personal Details:

(a). Name:-

(b). Add: - Contact No:-

(c). Age:-

(d). Qualification:-

Graduation/PG Under Graduate Others

(e). Occupation. Pl tick (√)

Govt. Sec Pvt. Sec Business Agriculture Others

(g). What is your monthly family income approximately? Pl tick (√).

Up to Rs. 10,001 to Rs. 15,001 to Rs. 20,001 to Rs. 30,001

Rs.10,000 15000 20,000 30,000 and above

38 | P a g e
APPENDIX-2

Table-1
RELIANCE INDUSTRY LTD

SBIMF SCHEMES MARKET VALUE(Rs IN LAKHS) % TO NAV IN

IN 2008 2008
MAGNUM TAX GAIN SCHEME-1993 14771.06 4.68

SBI ONE INDIA FUND 7820.25 5.54

SBI BLUECHIP FUND 5381.49 4.74

MAGNUM MULTICAP FUND 4761.11 6.05

SBI ABBITRAGE OPPRTUNITIES 4605.99 9.1

MAGNUM COMA FUND 4576.55 8.02

MAGNUM BALANCED FUND-1995 1924.83 5.19

MAGNUM EQUITY FUND 1811.6 5.53

SBI TAX ADVANTAGE FUND 1585.14 2.55

SBI INFRASTRUCTURE FUND 1250 0.51

MAGNUM SECTOR FUNDS UMBRELLA-
1109.34 4.97
CNTRA FUND
MAGNUM INDEX FUND 197.19 11.1

MAGNUM CHILDREN'S BENEFIT FUND 66.8 3.31

MAGNUM INCOME PLUS FUND-
39.18 7.05
INVESTMENT PLAN
MAGNUM INVESTMENT NRI FUND-FLEXI
22.09 3.11
ASSET PLAN
MAGNUM MONTHLY INCOME PLAN-
13.59 1.02
FLOATER

39 | P a g e
Table-2
RELIANCE INDUSTRY LTD
MARKET VALUE(Rs IN % TO NAV IN
SBIMF SCHEMES
LAKHS) IN 2009 2009

MAGNUM TAX GAIN SCHEME-1993 14508.94 5.2

MAGNUM SECTOR FUNDS UMBRELLA-
10871.02 6.15
CNTRA FUND
SBI INFRASTRUCTURE FUND 7086.31 5.76
SBI BLUECHIP FUND 4179.6 5.94
MAGNUM COMA FUND 3459.19 8.72
SBI ONE INDIA FUND 3051.59 4.21
MAGNUM MULTICAP FUND 2740.98 6.19
SBI TAX ADVANTAGE FUND 2444.16 6.61
MAGNUM BALANCED FUND-1995 1675.52 5.46
MAGNUM EQUITY FUND 1218.56 5.61
MAGNUM INDEX FUND 178.73 11.97
MAGNUM INVESTMENT NRI FUND-FLEXI
38.06 5.35
ASSET PLAN
MAGNUM INCOME PLUS FUND-
26.35 6.89
INVESTMENT PLAN
MAGNUM CHILDREN'S BENEFIT FUND 44.93 2.31
MAGNUM MONTHLY INCOME PLAN-
9.14 0.85
FLOATER
SBI ABBITRAGE OPPRTUNITIES 31.99 0.09
OIL AND NTURAL GAS CORPORATION LTD
MARKET VALUE(Rs IN % TO NAV IN
SBIMF SCHEMES
LAKHS) IN 2008 2008
MAGNUM TAX GAIN SCHEME-1993 6743.75 2.14
SBI ONE INDIA FUND 4416.07 3.13
MAGNUM SECTOR FUNDS UMBRELLA-
4072.6 1.83
CNTRA FUND
SBI ABBITRAGE OPPRTUNITIES 3089.04 6.1
SBI BLUECHIP FUND 2995.51 2.64
SBI INFRASTRUCTURE FUND 2879.98 1.78
MAGNUM COMA FUND 2790.68 4.89
MAGNUM MULTICAP FUND 1530.72 2.53
MAGNUM BALANCED FUND-1995 942.1 2.54
SBI TAX ADVANTAGE FUND 490.67 0.79
MAGNUM INDEX FUND 125.59 7.05
MAGNUM INVESTMENT NRI FUND-
40.24 3.5
FLEXI ASSET PLAN

40 | P a g e
Table-3
OIL AND NTURAL GAS CORPORATION LTD
MARKET VALUE(Rs IN % TO NAV IN
SBIMF SCHEMES
LAKHS) IN 2009 2009
MAGNUM TAX GAIN SCHEME-1993 9586.65 3.44
MAGNUM SECTOR FUNDS UMBRELLA-
6277.4 3.55
CNTRA FUND
SBI ONE INDIA FUND 3508.65 4.85
SBI INFRASTRUCTURE FUND 3118.8 2.54
SBI BLUECHIP FUND 2083.7 2.96
MAGNUM MULTICAP FUND 1565.77 3.53
SBI TAX ADVANTAGE FUND 1529.45 4.14
MAGNUM COMA FUND 1515.52 3.82
MAGNUM BALANCED FUND-1995 896.66 2.92
SBI ABBITRAGE OPPRTUNITIES 347.36 1
MAGNUM INDEX FUND 123.61 8.28
MAGNUM INVESTMENT NRI FUND-
31.97 4.49
FLEXI ASSET PLAN

41 | P a g e
Table-4
RELIANCE INDUSTRY LTD
% TO % TO
JM FINANCE MARKET VALUE(Rs MARKET VALUE(Rs
NAV IN NAV IN
SCHEMES IN LAKHS) IN 2008 IN LAKHS) IN 2009
2008 2009

JM NIFTY PLUS
235.45 257.65 8.5 8.6
FUND
JM TAX GAIN
465.41 236.76 10.11 7.18
FUND
JM ARBITRAGE
ADVANTAGE 680.93 3832.54 2.35 6.21
FUND
JM EQUITY FUND 157 235.5 2.09 4.05
JM BASIC FUND 20.72 46.83 0.02 0.06

Table-5

OIL AND NATURAL GAS CORPORATION(ONGC)

JM FINANCE SCHEMES % TO NAV IN 2008 % TO NAV IN 2009

JM ARBITRAGE
1.52 6.77
ADVANTAGE FUND
JM EQUITY FUND 3.6 4.3

JM NIFTY PLUS FUND 5.98 2.38

42 | P a g e