SUMMER INTERNSHIP

REPORT ON
PERCEPTION TOWARDS MUTUAL FUND A STUDY
OF PROBABLE INDIVIDUAL INVESTORS

AT
SUBHAM CAPITAL
Redefining the value of your money

SUBMITTED BY:
CHINMAYA SWAIN
REGD. NO- 1606284094

Under the Guidance of:

Internal Guide: External Guide:

Mr. G S Moharana Mr. Sudhansu Mohapatra
Asst. Prof. Finance Financial Advisor
Astha School Of Management Subham Capital
Bhubaneswar Bhubaneswar
 DECLARATION

I Chinmaya Swain, student of Astha School of Management in MBA course,

Bhubaneswar, declare that this project report entitle PERCEPTION TOWARD
MUTUAL FUND A STUDY OF PROBABLE INDIVIDUAL INVESTERS
is a genuine report carried out by me and at SUBHAM CAPITAL under the
guidance of Mr.Sudhanshu Mohapatra (External guide) and Asst. Prof. Gouri
Sankar Maharana (Internal guide) Astha School of Management, Bhubaneswar
towards the partial fulfillment of the Master of Business Administration degree.

This is an original work and has not been submitted as part of another degree or
diploma of other business school or university before.

The findings and conclusion of this project are based on my personal study and
experience, during the tenure of my summer internship.

Name: Chinmaya Swain

Astha School of Management

Regd.no.-1606284094
 ACKNOWLEDGEMENT

This successful project report has been made possible through the direct co-
operation and guidance of various people for whom I wish to express my
appreciation and gratitude.

First of all, I am thankful to the management of SUBHAM CAPITAL for giving

me an opportunity to do this project, which is a part of my MBA program. I extend
my heartiest thanks to Mr. Sudhansu Mohapatra (FINANCIAL ADVISOR OF
SUBHAM CAPITAL) who has given me an opportunity to work under him and
help me to complete my project in SUBHAM CAPITAL.

I would like to express my sincere gratitude to our department that has given me
an opportunity and special thanks to my esteemed Principal Prof. Dr Sharmila
Subramanian, ASM, BHUBANESWAR for her kind approval of this project work
in SUBHAM CAPITAL and also my guide Asst. Prof. Gouri Sankar
Maharana, Faculty of ASM BHUBANESWAR who have always provided me
guidance whenever needed.

I would like to acknowledge the advice and suggestions of all the staff members of
SUBHAM CAPITAL which directly or indirectly helped me in the project. And
foremost I offer my sincere thanks to my parents, cousins and friends for their
encouragement.

Name: Chinmaya Swain

Astha School of Management

 TABLE OF CONTENTS

CHAPTER NO CONTENT

Introduction
Objective
CHAPTER 1 Research methodology
Limitation of the study

Literature Review
CHAPTER 2

CHAPTER 3 Company Profile

Data Analysis
CHAPTER 4 Finding

Suggestion
CHAPTER 5 Conclusion

Reference
Annexure
 EXECUTIVE SUMMERY
In few years Mutual Fund has emerged as a tool for ensuring ones 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 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.

Chapter-1
INTRODUCTION TO MUTUAL FUND
The mutual fund industry is a lot like the film star of the finance business. Though
it is perhaps the smallest segment of the industry, it is also the most glamorous in
that it is a young industry where there are changes in the rules of the game every
day, and there are constant shifts and upheavals. The mutual fund is structured
around a fairly simple concept, the mitigation of risk through the spreading of
investments across multiple entities, which is achieved by the pooling of a number
of small investments into a large bucket. Yet it has been the subject of perhaps the
most elaborate and prolonged regulatory effort in the history of the country. Like
most developed and developing countries the mutual fund cult has been catching
on in India. There are various reasons for this. Mutual funds make it easy and less
costly for investors to satisfy their need for capital growth, income and/or income
preservation. And in addition to this a mutual fund brings the benefits of
diversification and money management to the individual investor, providing an
opportunity for financial success that was once available only to a select few.
Understanding Mutual funds is easy as it's such a simple concept: a mutual fund is
a company that pools the money of many investors -- its shareholders -- to invest in
a variety of different securities. Investments may be in stocks, bonds, money
market securities or some combination of these. Those securities are professionally
managed on behalf of the shareholders, and each investor holds a pro rata share of
the portfolio -- entitled to any profits when the securities are sold, but subject to
any losses in value as well. For the individual investor, mutual funds provide the
benefit of having someone else manage your investments and diversify your
money over many different securities that may not be available or affordable to
you otherwise. Today, minimum investment requirements on many funds are low
enough that even the smallest investor can get started in mutual funds.

A mutual fund, by its very nature, is diversified -- its assets are invested in many
different securities. Beyond that, there are many different types of mutual funds
with different objectives and levels of growth potential, furthering your chances to
diversify.
Savings form an important part of the economy of any nation. With savings
invested in various options available to the people, the money acts as the driver for
growth of the country. Indian financial scene too presents multiple avenues to the
investors. Though certainly not the best or deepest of markets in the world, it has
ignited the growth rate in mutual fund industry to provide reasonable options for an
ordinary man to invest his savings.

Investment in securities is spread across a wide cross-section of industries and

sectors and thus the risk is reduced. Diversification reduces the risk because all
stocks may not move in the same direction in the same proportion at the same time.
Mutual fund issues units to the investors in accordance with quantum of money
invested by them. Investors of mutual fund are known as unit holders.

When an investor subscribes for the units of a mutual fund. he becomes part owner
of the assets of the fund in the same proportion as his contribution amount put up
with the corpus (the total amount of the fund).mutual fund investor is also known
as mutual fund shareholder or a unit holder. Any change in the value of the
investments made into capital market instruments (such as shares, debentures etc)
is reflected in the Net Asset Value (NAV).

OBJECTIVE OF THE STUDY

The main purpose of the doing this project was:

To know about mutual fund and its functioning.

Explore the recent development in the mutual fund.

To study mutual fund distribution channels.

To study marketing strategy of mutual fund.

To give an idea about the regulation of mutual fund.

To analyze the perception of investor toward mutual fund

To know why investors are not investing in mutual fund.

To study the level of awareness of mutual fund.

To find out what steps to taken to boost mutual fund industry.

 RESEARCH METHODOLOGY
Research is an art of scientific investigation for a specific topic and
redefining problems suggested solutions collecting organizing and
evaluating the data and reaching conclusion.

The study is based on survey technique.

Using questionnaire method.

Personal interview & informal discussion.

The report is based on primary data & secondary data.

SAMPLINGS TECHNIQUES

In this project I have done a survey with a questionnaire with a sample size
of 150 individual who are government employee.

DURATION OF THE STUDY

The study is carried out for a period of 45 days, From June 1 st 2017 to July
15th 2017.

SOURCE OF DATA

Primary data: Primary data was collected through questionnaire giving

directly to respondents.

Secondary data: Secondary data was collected from published materials

such as periodicals, journals, reports, newspapers, magazine, and website.
 LIMITATION OF THE STUDY

Project duration has constraint of 45 days.

The customer was not providing right information to us.

Possibility of error in data collection because many of investors may have

not given actual answers of my questionnaire.

The study is limited to specific individual people like government employee.

Sample size was limited to 150 government employee in Bhubaneswar.

Mutual fund industry is unpredictable and keeps on varying from time to

time so its difficult to collect accurate data.

Appointment problem to fixed meeting with an employee.

 Chapter-2
LITERETURE REVIEW

Definition of Mutual Fund

To state in simple words, a mutual fund collects the savings from small
investors, invest them in Government and other corporate securities and earn
income through interest and dividends, besides capital gain. It works on the
principle of small drop of water makes a big ocean.

A Mutual Fund is a trust that pools the savings of a number of investors

who share a common financial goal. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities. The
income earned through these investments and the capital appreciations realized are
shared by its unit holders in proportion to the number of units owned by them.

FEATURES
Professional management-Money is invested through fund manager.
Diversification- diversification is an investing strategy that can be neatly
summed of as dont put all your eggs in one basket by owning share in
mutual fund instead of owning individual stock and bonds, the risk is spared
out.
Economy of scale-because a mutual fund buys and sells large amount of
securities at a time, its transaction cost are lower then what an individual pay
for securities transactions.
 Liquidity-just like individual shares, mutual fund investors are convertible
into money by way of sale in the market.
Simplicity-buying a mutual fund unit was simple. Many banks have
sponsored their own line of mutual fund and the minimum amount is small.
Investor should examine each of the above features carefully before
investing in mutual fund.

HISTORY OF MUTUAL FUND

The mutual fund industry in India started in1963 with the formation of Unit
Trust of India, at the initiative of the government of India and Reserve Bank. The
history of mutual funds in India can be broadly divided into following distinct
phases.

First Phase (1964-1987)

UTI was established as an act of parliament.

UTI was set up by RBI but was later delinked.

Unit Scheme 1964 was the largest scheme.

ULIP was launched in 1971. Six new scheme were launched between 1981-

84.
In 1986-87 new schemes like Children gift growth fund(1986) and Master

share (1987) were launched.

Master share is the first equity diversified scheme

The first offshore fund the India Fund was launched in 1986.

UTI floated a lot of assured return schemes

Second Phase (1987-1993)

1987 marked the entry of non- UTI, public sector mutual funds set up by

public sector banks and Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC).
SBI Mutual Fund was the first non- UTI Mutual Fund established in June

1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank
 Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India
(Jun 90), Bank of Baroda Mutual Fund (Oct 92).
LIC established its mutual fund in June 1989 while GIC had set up its
mutual fund in December 1990.
SEBI regulation for mutual funds was passed in 1992 .

Third Phase (1993-1996)

Association of mutual fund in india (AMFI) was established in 1995.

In the year 1993-94 five private sector mutual funds were launched their

schemes followed by six others in the next year.

Initial mobilization of funds was very less.

Fourth Phase (1996-2003)

st
SEBI mutual fund regulation came into being in 1996, they being the 1

mutual fund regulations under which all mutual fund.

Uniform standards were set for all mutual funds.

Last Phase (since 2003)

In February 2003, following the repeal of the Unit Trust of India Act 1963

UTI was bifurcated into two separate entities.

One is the Specified Undertaking of the Unit Trust of India with assets under

management of Rs.29, 835 cores as at the end of January 2003, representing

broadly, the assets of US 64 scheme, assured return and certain other
schemes.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and

LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations.
At the end Dec. 2015 there were over 1900 mutual fund schemes in India.

Advantages of Mutual Fund

Diversification: The best mutual funds design their portfolios so individual

investments will react differently to the same economic conditions. For
example, economic conditions like a rise in interest rates may cause certain
 securities in a diversified portfolio to decrease in value. Other securities in
the portfolio will respond to the same economic conditions by increasing in
value. When a portfolio is balanced in this way, the value of the overall
portfolio should gradually increase over time, even if some securities lose
value.

Professional Management: Most mutual funds pay topflight professionals

to manage their investments. These managers decide what securities the fund
will buy and sell.

Regulatory oversight: Mutual funds are subject to many government

regulations that protect investors from fraud.

Liquidity: It's easy to get your money out of a mutual fund. Write a check,
make a call, and you've got the cash.

Convenience: You can usually buy mutual fund shares by mail, phone, or
over the Internet.

Low cost: Mutual fund expenses are often no more than 1.5 percent of your
investment. Expenses for Index Funds are less than that, because index funds
are not actively managed. Instead, they automatically buy stock in
companies that are listed on a specific index

Transparency
Flexibility
Choice of schemes
Tax benefits
Well regulated
TYPES OF MUTUAL FUND

By Constitution :

a) Close Ended: In India, this type of scheme has a stipulated maturity

period
And investors can invest only during the initial lunch period know as
the NFO (New Fund Offer) period.
b) Open Ended: This scheme allows investors to buy or sell units at any
point I time. This does not have a fixed maturity date.
c) Interval: Operating as a combination of open and close ended
scheme, it allows investors to trade units at pre-defined intervals.

By Investment Objective :

a) Equity Funds: Equities are popular mutual fund categories amongst

retail
Investors. Although it could be a high-risk investment in the short
term, investors can expect capital appreciation the long run, if you are
at your prime earning stage and looking for long-term benefits, growth
scheme could be an idea investment.
 b) Debt Funds: In a debt/income scheme, major parts of the investable
fund are channelized towards debentures, government securities, and
other debt instrument. Although capital appreciation is low (compared
to equity mutual funds), this is relatively low-risk return investment
avenue which is ideal for investors seeing to steady income.
c) Cash/Balanced Funds: This scheme allows investors to enjoy growth
and income at regular intervals. Funds are invested in both equities and
fixed income securities; the proportion is pre-determined and disclosed
in the scheme related offer document. These are the ideal for the
cautiously aggressive investors. These schemes are also know as
Hybrid Scheme.

Organization of Mutual Fund

The fund sponsor

Trustees
Asset Management Company
Custodian and Depositories
Bankers
Transfer agents
Distributors
SEBI

Sponsor
Sponsor is defined under SEBI regulations as any person who acting alone or in
combination with another body corporate, establishes a mutual fund. The sponsor
establishes the mutual fund and registers the same with SEBI. Sponsor appoints the
trustees, custodians and the AMC with prior approval of SEBI and in accordance
with SEBI regulations. Sponsor must have atleast 5 year track record of business
interest in the financial markets. Sponsor must be making profit in atleast 3 of the
above 5 years. Sponsor must contribute at least 40% of the capital of the AMC.

Trustee:

The Trust mutual fund may be managed by a board of trustees a body of

individuals, or a Trust company a corporate body. The trust is created through a
document called the trust deed that is executed by the fund sponsor in favour of the
trustees. The third schedule of SEBI (MF) Regulations, 1996 specifies the contents
of the trust deed. The trustees being the primary guardians of the unit holders funds
and assets, a trustee has to be a person of high repute and integrity. SEBI has laid
down conditions to be fulfilled by the individuals being proposed as trustees of
mutual funds.

Asset Management Company:

The role of an AMC is to act as the investment manager. The trustees on the
advice of the sponsors usually appoint the AMC.The AMC is a private limited
company, in which sponsors and their associates or joint ventures are
shareholders. It has to be a SEBI registered body with a minimum net worth of Rs
10 core. The AMC functionary to be appointed and is involved in the appointment
of other functionaries. It is the operational face of the mutual fund.
Custodian and Depositories

The custodian is appointed by the board of trustees for safekeeping of physical

securities or participating in any clearing system through approved depository
companies on behalf of mutual fund in case of dematerialized securities.

Bankers

A funds activity involves dealing with money. A funds bankers, ply a crucial role
with respect to its financial dealings by holding its bank accounts and providing it
with remittance services.

Registrar and transfer Agents

They are responsible for issuing and redeeming units of the mutual fund and
providing other related services such as preparation of transfer documents and
updating investor records.

Distributors

Mutual funds operate as collective investment vehicles, on the principle of

accumulating funds from a large number of investors and then investing in big
scale. For a fund to sell units across a wide retail base of individual investors, an
established network of distribution is essential.
SEBI

SEBI is the apex regulatory of capital markets. SEBI has enacted the SEBI (mutual
fund) Regulations, 1996, which provides the scope of the regulation of the mutual
fund in India. All Mutual funds are required to be mandatorily registered with
SEBI. The structure and formation of mutual funds, appointment of key
functionaries, operation of the mutual funds, accounting and disclosure norms,
rights and obligations of functionaries and investors, investment restrictions
,compliance and penalties are all defined under the SEBI regulations. Mutual funds
have to send half yearly compliance reports to SEBI, and provide all information
about their operations.

MUTUAL FUND IN INDIA

The first introduction of a mutual fund in India occurred in 1963, when

the Government of India launched Unit Trust of India (UTI). Until 1987, UTI
enjoyed a monopoly in the Indian mutual fund market. Then a host of other
government-controlled Indian financial companies came up with their own funds.
These included State Bank of India, Canara Bank and Punjab National Bank. This
market was made open to private players in 1993, as a result of the
historic constitutional amendments brought forward by the then Congress-led
government under the existing regime of Liberalization, Privatization and
Globalization (LPG). The first private sector fund to operate in India was Kothari
Pioneer, which later merged with Franklin Templeton. In 1996, SEBI formulated
the Mutual Fund Regulation which is a comprehensive regulatory framework.

Despite being available in the market less than 10% of Indian households have
invested in mutual funds. A recent report on Mutual Fund Investments in India
published by research and analytics firm, Boston Analytics, suggests investors are
holding back from putting their money into mutual funds due to their perceived
high risk and a lack of information on how mutual funds work. There are 46
Mutual Funds as of June 2013.

The primary reason for not investing appears to be correlated with city size.
Among respondents with a high savings rate, close to 40% of those who live in
metros and Tier I cities considered such investments to be very risky, whereas 33%
of those in Tier II cities said they did not know how or where to invest in
such assets

Mutual fund investments are sourced both from institutions (companies) and
individuals. Since January 2013, institutional investors have moved to investing
directly with the mutual funds since doing so saves on the expense ratio incurred.
Individual investors are, however, served mostly by Investment advisor and banks.

Name of Mutual Fund / Asset Management

Company
1. Axis Asset Management Company Ltd.
2. Baroda Pioneer Asset Management Company Ltd
3. Birla Sun Life Asset Management Company Ltd
4. BNP Paribas Asset Management India Pvt Ltd
5. BOI AXA Investment Managers Pvt Ltd
6. Canada Robeco Asset Management Company Ltd
7. Daiwa Asset Management (India) Pvt Ltd
8. Deutsche Asset Management (India) Pvt. Ltd.
9. DSP Black Rock Investment Managers Pvt. Ltd.
10. Edelweiss Asset Management Ltd
11. Escorts Asset Management Ltd
12. FIL Fund Management Private Ltd
13. Franklin Templeton Asset Management (India) Pvt Ltd.
14. Goldman Sachs Asset Management (India) Pvt Ltd.
15. HDFC Asset Management Company Ltd
16. HSBC Asset Management (India) Pvt. Ltd.
17. ICICI Prudential Asset Management Company Ltd
18. IDBI Asset Management Ltd.
19. IDFC Asset Management Company Ltd
20. India Infoline Asset Management Co. Ltd.
21. Indiabulls Asset Management Company Ltd.
22. ING Investment Management (India) Pvt. Ltd.
23. JM Financial Asset Management Pvt Limited
24. JPMorgan Asset Management India Pvt. Ltd.
25. Kotak Mahindra Asset Management Company Ltd.
26. L&T Investment Management Ltd.
27. LIC NOMURA Mutual Fund Asset Management Company Ltd.
28. Mirae Asset Global Investments (India) Pvt. Ltd.
29. Morgan Stanley Investment Management Pvt.Ltd.
30. MotilalOswal Asset Management Company Ltd.
31. Peerless Funds Management Co. Ltd.
32. Pine Bridge Investments Asset Management Company (India) Pvt. Ltd.
33. Pramerica Asset Managers Private Ltd
34. Principal PNB Asset Management Co. Pvt. Ltd.
35. Quantum Asset Management Company Private Ltd.
36. Reliance Capital Asset Management Ltd.
37. Religare Asset Management Company Private Ltd.
38. Sahara Asset Management Company Private Ltd
39. SBI Funds Management Private Ltd.
40. Sundaram Asset Management Company Ltd
41. Tata Asset Management Ltd
42. Taurus Asset Management Company Ltd
 43. Union KBC Asset Management Company Pvt Ltd
44. UTI Asset Management Company Ltd
MF Category Analysis

Equity funds

Midcap funds have significantly outperformed

Large cap funds in the last one year among sector funds, Pharma funds
delivered highest returns in the last one year

Equity diversified funds

Equity diversified funds delivered healthy returns in the last year. Midcap
funds were outperformers with 33% one year average return followed by
multicap funds with one year average return of 19% and then large caps with
13% return against BSE Sensex return of 15%
The structural medium to long term outlook for Indian equity markets
remains positive on higher GDP growth at 7.5% in sFY16, stabilizing
inflation in spite of in crude oil prices and unseasonal rains.
Caution is required in midcap and small cap mutual funds as they have
significantly outperformed large caps in the current market rally since
September 2013. Therefore, if the overall market volatility increases, midcap
and small caps may underperform

Equity Banking Funds

In the last two or three quarters, excluding the recent fall in banking stocks,
private banks have performed better on the bourses compared to their PSU peers.
Private Banks have managed their asset quality and operational performance well
despite the economy failing to provide much cheer. This is owing to their focus on
the retail segment of the business, which has provided private banks with growth
and healthy ROIs. PSU banks, on the other hand, continue to reel under asset
quality pressure, thus impacting their P&L performance heavily.

Equity FMCG
FMCG companies continue to witness muted demand from both rural & urban
India. With the significant correction in commodity prices, industry has taken price
cuts to pass on raw material benefit. This has affected revenue growth mainly due
to absence of price hike in sales. However, decline in commodity prices have
resulted in considerable expansion in operating margins despite companies have
increased their A&P (Advertisement & Promotion) spend In last one month,
FMCG companies valuation multiples have seen some contraction in the wake of
stringent action by food regulator after Nestls Maggie controversy.

Balanced funds

Balanced funds are hybrid funds. More than 65% of the overall portfolio is
invested in equities. Hence, as per provisions of the Income Tax Act, 1961,
any capital gains over one year become tax free. Also, dividends declared by
funds are tax free.
In case you separately invest 35% of your investible corpus in a debt fund,
the same will be subject to higher taxation. However, if the whole corpus is
invested in balanced funds, 100% shall have lower taxation applicable as
mentioned above.

Arbitrage Funds

Arbitrage funds seek to exploit market inefficiencies that get manifested as

mispricing in the cash (stock) and derivative markets.
Availability of arbitrage positions depends very much on the market
scenario. A directional movement in the broader index attracts speculators in
the market and cost of funding makes futures positions biased.
Arbitrage funds are classified as equity funds as they invest into equity share
and equity derivative instruments. Since these are classified as equity funds
 for taxation, dividends declared by the funds are tax free. No capital gains
will be applicable if they are sold after a year.
These funds can be looked upon as an alternative to liquid funds. Returns of
arbitrage funds are non-linear and, therefore, unsuitable for investors who
want consistent return across time period.
Arbitrage funds should be used as a liquid investment and should not be a
major part of the investors portfolio.
In case of positive movement, long build-up in futures puts pricing in an
upward bias and creates a window for direct arbitrage positions.
On the other hand, negative bias attracts fresh sellers in the market and
speculators try to sell the stock much cheaper than theoretical prices. In such
situations, reverse arbitrage opportunities arise.
On the other hand, a range bound market does not give ample room to create
arbitrage position.

Gilt Funds

In May 2015, gilt funds delivered 9.8% absolute return, the highest among
debt funds. Gilt funds will be less attractive due to the longer holding period
(more than three years) due to lower accrual income will neutralize the
impact of moderate capital gains in the near term.
The front loaded rate cuts by the RBI can push overall interest rates down
depending on how soon banks transit it into the system by re- pricing their
assets and liabilities lower.
The central government has signed a memorandum with the RBI setting out
a clear inflation objective to bring the inflation rate to the mid-point of the
band of 4 +/- 2%. CPI, as per our assessment, should average close to 5% for
FY16 (on assumption of normal monsoon and a stable currency).
 Aggressive investor can invest in gilt funds with an investment horizon of
one or two years.
Liquid Funds
Liquid fund returns moderated to 8.3-8.8% pretax from over 9% earned in
the previous year.
The Reserve Banks pro-active liquidity management operations ensured
that Call rates stayed range bound around the policy rate reducing day-to-
day volatility. The CBLO rates also hovered just above Repo rate. With an
improvement in liquidity conditions, the certificate of deposit and
commercial paper rates in the three month bracket also eased by 80 bps to
the 8.3-8.7% range from 9.1-9.3%. The same is likely to moderate returns in
liquid funds going forward.

Income funds

In the income funds category, long term debt funds outperformed delivering
9.5% absolute return in 2015.
The corporate bond market segment continues to be attractive over the
medium term, especially with expectations of an improvement in corporate
profitability and an improved economic outlook. The credit opportunities
funds are better placed due to stable returns and a change in taxation
warranting a minimum holding period of three years to avail indexation
benefits.
The recent sell-off in yields of government securities provide an investment
opportunity for aggressive investors to add duration funds with a one or two
year investment horizon.
Risk involved in investing in Mutual Funds:

The level of risk in mutual fund depends on what it invests in. Usually, the higher
potential returns, the higher the risk will be. For example, stocks are generally
riskier than bonds, so an equity fund tends to be riskier than a fixed income fund.

There is six common risks are covered in every investment are as follows:

Type of risk Type of investment How the fund could lose

affected money
1. Market Risk All Types The value of its investments
decline because of
unavoidable risks that affect
the entire market.
2. Liquidity Risk All Types The fund cant sell an
investment thats declining
in value because there are no
buyers.
3. Credit Risk Fixed income securities If a bond issuer cant repay
a bond, it may end up being
a worthless investment.
4. Interest Rate Fixed income securities The value of fixed income
Risk securities generally falls
when interest rates rise.
5. Country Risk Foreign investments The value of a foreign
investment declines because
of political changes or
instability in the country
where the investment was
issued.
6. Currency Risk Investments denominated in If the other currency
a currency other than the declines against the
Canadian dollar. Canadian dollar, the
investment will lose value.
Chapter-3
COMPANY PROFILE

SUBHAM CAPITAL
Redefining the value of your money

Subham capital is a financial advisory organization

established in 1997 at Bhubaneswar, odisha. Mr.
SUDHANSU MOHAPATRA is the founder of
subham capital or financial advisor.

Subham capital is the flagship company of the group provides investment

advisory services. The company is engaged in advisory and distribution services
of mutual funds. The Company provides customized solutions to the
requirements of high Net worth Individuals and Corporate clients. Our
strength lies in our ability to advice on investment strategies and structures
develop innovative products and distribute amongst a wide network of
investors across the city.

Company constantly endeavored to develop new

instruments, tailor made to the requirements of our clients, enabling them to
earn efficient post tax returns in accordance with their specific risk, return and
maturity profiles. The company is currently having Asset under Management
above 20k satisfied customers. Additionally, the company provides advisory
services for alternate investment options like portfolio management services
in equity, debt and commodities besides investment in venture capital funds.

Subham capital adopt a structured and disciplined advisory

approach and provide you portfolio solutions which meet your desired financial
goals and milestones.
 Work with us to develop a wealth creation and protection plan
that provides you with the best chance to reach your financial goals according to
your specific needs and comfort levels. Our estate planning , insurance, and
wealth management expertise will put you in the best position to succeed while
allowing you to maximize your time devoted to focusing on the pursuits that are
most important to you.

Offer following specific solutions to clients:

Investment Advisory Services MF

Fixed Deposits
Equity Shares
Life and General Insurance

Associated with AMC Like:

Reliance Mutual Fund

HDFC Mutual Fund

SBI Mutual Fund

UTI

ICICI Prudential Mutual Fund

KOTAK Mutual Fund

Birla Sun Life Mutual Fund

DSP Blackrock mutual fund

Reliance mutual fund

This group dominates this key area in the financial sector. This mega business
houses show that it has assets under management of Rs.90,938 core(US$ 22.73
billion) and an investor base of over 6.6million (Source:www.amfiindia.com).
Reliances mutual fund schemes are managed by Reliance Capital Asset
Management Limited CAM), a subsidiary of Reliance Capital Limited, which holds
93.37% of the paid-up capital of RCAM.

The company healthy growth of Rs.16,354 core(US$ 4.09 billion)in

assets under management in February2008 and helped propel the total industry-
wide AUM toRs.565,459core(US$141.36billion)(Source:indiainvestments.com). A
sharp rise in fixed maturity plans (FMPs) and collection of Rs. 7000 core (US$ 1.75
billion) through new fund offers (NFOs) created this surge. In rankings, Reliance
continues to be in the number one spot.

HDFC Mutual Fund

HDFC Asset Management Company Ltd (AMC) was incorporated under the
Companies Act, 1956, on December 10, 1999, and was approved to act as an
Asset Management Company for the HDFC Mutual Fund by Securities and
Exchange Board of India (SEBI) vide its letter dated July 3, 2000.

The registered office of the AMC is situated at HDFC House, 2nd Floor, H. T.
Parekh Marg, 165-166, Back bay Reclamation, Church gate, Mumbai - 400 020.
The Company Identification Number (CIN) is U65991MH1999PLC123027. .

In terms of the Investment Management Agreement, the HDFC Trustee Company

Ltd has appointed the HDFC Asset Management Company Limited (AMC) to
manage schemes of the Mutual Fund. The paid up capital of the AMC is Rs. 25.241
core as on September 30, 2013.
SBI Mutual Fund

SBI Mutual Fund is a bank sponsored fund house with its corporate
headquarters in Mumbai, India. It is a joint venture between the State Bank of
India, an Indian multinational, Public Sector banking and financial
services company and Amundi, a European asset management company.

SBI Mutual Fund became the first non-UTI mutual fund in India. In July
2004, State Bank of India decided to divest 37 per cent of its holding in its mutual
fund arm, SBI Funds Management Pvt. Ltd, to Society General Asset Management,
for an amount in excess of $35 million. Post-divestment, State Bank of India's
stake in the mutual fund arm came down to 67%. In May 2011, Amundi picked up
37% stake in SBI Funds Management that was held by Society General Asset
Management, as part of a global move to merge its asset management business
with Credit Agricola.

SBI Mutual Fund offers mutual fund schemes such as Debt Schemes, Equity
Schemes, Hybrid Schemes, Exchange-traded fund, Liquid Schemes and Fixed
Maturity Plans. It also offers Portfolio Management and Advisory Services to
financial institutions and asset management companies.

UTI Mutual Fund

Being one of the top mutual fund companies, we at UTI MF have always aimed at
being trusted, efficient and innovative wealth creators. This is made possible by a
strong team of professionals who never lose sight of the objectives of our
investors.

UTI Mutual Fund is promoted by the four of the largest Public Sector Financial
Institutions as sponsors, viz., State Bank of India, Life Insurance Corporation of
India, Bank of Baroda and Punjab National Bank with each of them presently
holding an 18.5% stake in the paid up capital of UTI AMC. T Rowe Price Group Inc
(TRP Group) through its wholly owned subsidiary T Rowe Price International Ltd.
(TRP) has acquired a 26% stake in UTI Asset Management Company Limited (UTI
AMC).
ICICI Prudential Mutual Fund

ICICI Prudential Asset Management Company Ltd. is the largest asset

management company (AMC) in the country (as per average assets under
management as on March 31, 2016 of Rs. 175881 Cores, focused on bridging the
gap between savings & investments and creating long term wealth for investors
through a range of simple and relevant investment solutions.

The AMC is a joint venture between ICICI Bank in India and Prudential Plc, one
of UKs largest players in the financial services sectors.

With its Corporate Office based in Bandra Kurla Complex, Mumbai, India the AMC
has witnessed substantial growth in scale; from 2 locations and 6 employees at
the inception of the joint venture in 1998, to a current strength of more than
1000 employees with around 120 locations reaching out to an investor base of
more than 1.9 million investors.

Kotak Mutual Fund

Kotak Mahindra Mutual Fund: Get the Latest Information on

Kotak Mahindra Mutual Fund Schemes, Returns, Latest Nav, and Ratings. Mutual
Fund: Kotak Mahindra Mutual Fund.

Sponsor: Kotak Mahindra Bank Limited

Assets Managed: Rs. 101196.80 crore (Jun-30-2017

Setup Date: Jun-23-1998

Chapter-4

DATA ANALYSIS
The following are the findings of investors perception towards mutual fund??

No of clients visited 500

No of clients know about the 122

basic of Mutual Fund
No of clients already invested in 33
Mutual Fund
No of clients attend the meeting 45
related to Mutual fund
No of clients given their 150
feedback

500
150
122

45
33

No of clients know No of clients already No of clients attend No of clients given

about the basic of invested in Mutual the meeting related to their feedback
Mutual Fund Fund Mutual fund

Interpretation:

In my study I have visited near about 500 clients and able to collect
information about awareness among them.
I came to know that around 122 clients knew about Mutual fund basics and
only 33 clients have already invested in this scheme and 45 of others have
already attended meetings held on Mutual fund.
However I am able to collect feedback about Mutual fund from 150 clients.
Q-1 Gender of the Respondents

Gender No Of Respondent

Male 122

Female 28

Total 150

No Of Respondent

Female
19%

Male
81%

Interpretation

From those I have taken feedback I found 122 males and only 28 females.
This shows that males are more interested in mutual fund than females.
Q-2 Qualification of the Respondent?

QUALIFICATION NO OF RESPONS
+2 08
GRADUATE 93
POST GRADUATE 13
OTHER 36

5%

24%

2
GRADUATE
POST GRADUATE
9%
OTHER

62%

Interpretation
Whatever I had studied I found most of the respondents are graduates as
compared to others.
Q-3. Age of the Respondent?

AGE NO. OF RESPONDANT

Below 30 30
30 to 45 80
45 and above 40

NO. OF RESPONDANT

20%
27%
Below 30
30 to 45
45 and above

53%

Interpretation

In my study the maximum no of respondents are the age between (30-45)

near about 54% of the total respondents, from some of them shows their
interest to know about Mutual Fund for the investment purpose.

The second highest is (45 and above) year of age which is 27% as because
they are in the age above 45 so they are happy with their investment plan
and dont want to take any short of risk.
Q-4. Occupation of the Respondent?
OCCUPTION NO. OF RESPONDANT
GOVT. SERVICE 150
PRIVATE SERVICE 0
BUSINESS 0
OTHER 0

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
GOVT. SERVICE PRIVATE SERVICE BUSINESS OTHER
Q-5. What is your monthly family income?

INCOME NO. OF RESPONDANT

BELOW 20000 0
20000-30000 25
30000-40000 90
40000-50000 10
ABOVE 50000 25

NO. OF RESPONDANT
0%

17% 17%

BELOW 20000
6%
20000-30000
30000-40000
40000-50000
ABOVE 50000

60%

Interpretation

Most of the respondents (60%) have their income in the range Rs

30000 40000, while only 10% have their income in between Rs
40000 50000.
Q-6. Do you have any investment plan?

YES-90 NO-60

Respondents
YES NO

40%

60%

Interpretation :
Also I found that 60% of the clients have already invested in
Mutual funds, however only 40% dont have.
Q-7. Primary goal of your investment?

INVESTMENT GOAL NO. OF RESPONDANT

CHILDREN EDUCATION 80
HOUSE 20
RETIREMENT BENIFIT 40
LIFESTYLE 10

7%

27% CHILDREN EDUCATION

HOUSE
RETIREMENT BENIFIT
53%
LIFESTYLE

13%

Interpretation

In the above outcome there are more about 53% of respondent

primary goal is children education. They invest money in long term
basic.
Q-8. While investing your money which factor you prefer most?

FACTOR NO. OF RESPONDANT

LIQUIDITY 70
LOW RISK 40
HIGH RETURN 30
COMPANY REPUTATION 10

LIQUIDITY LOW RISK HIGH RETURN COMPANY REPUTATION

7%

20%

46%

27%

Interpretation

46% of the customers given their view that the liquidity factor is the most
important factor for their investment because without liquidity there is no
importance of investment.

Low risk factor is being rated as the second preferred factor for the
investment purpose. This is the view point of the respondents who are in
their retirement age because they avoid risk as much as possible.
Q-9. What kind of investment you prefer most?

TYPES NO OF RESPONDANT
FD 60
RD 15
INSURANCE 30
MUTUAL FUND 20
POST OFFICE 10
PF/EPF 10
PROPERTY 5

NO OF RESPONDANT
FD RD INSURANCE MUTUAL FUND POST OFFICE PF/EPF PROPERTY

7% 3%

7%

40%

13%

20%

Interpretation

The maximum no (40%) of the respondents given their view that FD is the
best way of investment because it gives a guaranteed return and there is no
need of tracking the market trend.

Insurance is being chosen as the second best alternative that is 20%

because it gives both investment benefit as well as life assurance.
Q-10. Are you satisfied with your investment option?

YES- 90 NO-60

YES NO

40%

60%

Interpretation

60% of the total respondents given their view that they are satisfied with
their investment option because according their opinion the investment
option are fulfilling their stated objective.

Still 40% of the customers are not satisfied with their investment plan
because they want to invest in Mutual Fund, Stocks, and Bonds but due to
lack of knowledge they are not able to fulfilling their target objective.
Q-11. Have you ever invest your money in mutual fund?

OPINION RESPONDENT
YES 45
NO 105

YES 30%

NO 70%

Interpretation
There is an opportunity for the Mutual Fund industry as well as for the
investors because 70% of the respondents are still not invested their money
in Mutual Fund.
Whereas 30% of the respondents are invested in mutual fund and getting
the benefit out of it.
IF YES
where do you find yourself as Mutual Fund investor? (Total 45)

Totally ignorant 8
Partial knowledge of mutual funds 12
Aware only of any specific scheme 23
in which you invested
Fully aware 2

4%
18%

Totally ignorant

Partial knowledge of mutual

funds
Aware only of any specific
scheme in which you invested
51% 27%
Fully aware

Interpretation
From the 45 respondents 23 respondents are aware only of any specific
scheme in which they have invested and 8 of the respondents dont have
any idea about how it works? Which shows that there is a huge ignorance
about Mutual Fund industry in the market?
IF NO
If not invested in Mutual Fund then why (Total 105)

Not aware about Mutual Fund 71

Higher Risk 12

Difficult to track the market trend 07

Not any specific reason 05

Not Secure 10

5% 9% Sales

7% Not Aware
High Risk

11% Difficult to track Market

Not any specific reason

68% Not secure

From this question it was found that out of 105 respondents 68 %( approx.)
Respondents are not known about the basics of Mutual Fund.

Some of the respondents also think that it consists of high risk but actually
it is not like that. So the level of awareness among the respondents is very
poor.
Q12. Are you interested to attend a free seminar on Mutual Fund
which will be conducted by Subham Capital?

ATTEND MEETING RESPONDENT

INTRESTED 60
NOT INTRESTED 90

YES 40%

NO 60%

Interpretation :

In my survey when we decided to conduct a seminar program on behalf

of SUBHAM CAPITAL only 40% are interested and 60% dont because
they have complete knowledge about this program.
 Feedback of the meeting

RESPONSE RESPONDENT
EXCELLENT 32
GOOD 20
AVERAGE 5
POOR 3

5%
8%

EXCELLENT
GOOD
AVERAGE
54%
33% POOR

Interpretation

In the above feedback 87% of respondents are satisfied with the

meeting, because they earn knowledge about investment in
mutual fund and other investment.
In the other hand only 13% of respondents not satisfied with the
meeting, because they need more seminar and meeting to
understand the mutual fund scheme.
 FINDINGS

A probable investor basically looks for the tax exemption, safety and
security while investing.
Investors are mainly concerned with the risk factors of mutual fund.
Many of people are not aware about mutual fund.
Some investors are aware of mutual funds but their perception towards them
is not positive.
Most of the people dont know the advantages of mutual fund and the types
of mutual fund.
Chapter-5

SUGGESTIONS

Make people aware of Mutual fund

Arranging more free seminars in different organizations about mutual fund

investment.
More advertisements need to come to explain the various advantages of
mutual fund and even the various schemes offered by them.

Key role of financial advisor

The key for mutual fund investors is to define and recognize the value of
professional financial services and the insist on getting that value. When you pay a
sales charge or fee, what can you expect a professional to do for you? Your advisor
should at least.

Understand investors need and help him to formulate long-term investment

goals and objectives.
 CONCLUSION

As mutual fund is an innovative and very professionally designed

vehicle for investment but there are some awareness needed for
unknown people to make them aware.
Many people in Bhubaneswar are not aware about mutual fund so
thats why they are not interested to do business in mutual fund. If
we organized seminar or BOP about MF so the people are gaining
some knowledge about Mutual Fund and its benefits.
 BIBLIOGRAPHY
Website
www.subhamcapital.com
www.bankbazaar.com
www.amfiindia.com
www.mutual funds india.com
www.moneycontrol.com
www.mutualstocksblogspot.in
www.Indian researchjournals.com
Books
Mutual fund simplified (Ritu Gupta)
Mutual Funds in India - H. Sadhak, Response Books, New Delhi.
Financial Management khan & Jain
 ANNEXURE

Are you planning to save?

Yes No
What is your monthly family income?
Ans. ( )
Do you have any investment plan?
Yes No
Primary goal of your investment?

CHILDREN EDUCATION
HOUSE
RETIREMENT BENIFIT
LIFESTYLE

While investing your money which factor you prefer most?

LIQUIDITY
LOW RISK
HIGH RETURN
COMPANY REPUTATION

What kind of investment you prefer most?

1) Bank
2) Insurance
3) Mutual fund
4) Post office
 Are you satisfied with your investment option?
Yes No
Have you ever invest your money in mutual fund
Yes No
IF YES
where do you find yourself as Mutual Fund investor?
IF NO
If not invested in Mutual Fund then why?
Are you interested in attending meeting, seminar if conducted for
financial education?
Yes No