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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
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
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
Profile, Objectives of the study, Research Methodology. One can have a brief
knowledge about Mutual Fund and its basics through the Project.
The second part of the Project consists of data and its analysis collected through survey
done on 200 people. For the collection of Primary data I made a questionnaire and
surveyed of 200 people. I also taken interview of many People those who were coming
at the SBI Branch where I done my Project. I visited other AMCs in Dehradoon to get
some knowledge related to my topic. I studied about the products and strategies of
other AMCs in Dehradoon to know why people prefer to invest in those AMCs. This
Project covers the topic “THE MUTUAL FUND IS BETTER INVESTMENT PLAN.”
The data collected has been well organized and presented. I hope the research findings
Acknowledgement
Declaration
Executive Summary
Chapter - 1 INTRODUCTION
BIBLIOGRAPHY
Chapter-1
Introduction
INTRODUCTION TO SBI MUTUAL FUND
SBI Funds Management Pvt. Ltd. is one of the leading fund houses in the
country with an investor base of over 4.6 million and over 20 years of rich
SBI Funds Management Pvt. Ltd. is a joint venture between 'The State Bank of
India' one of India's largest banking enterprises, and Société Générale Asset
Today the fund house manages over Rs 28500 crores of assets and has a diverse
redeemed 15 of them, and in the process, has rewarded our investors with
consistent returns. Schemes of the Mutual Fund have time after time
and have emerged as the preferred investment for millions of investors. The
SBI Funds Management Pvt. Ltd. serves its vast family of investors through a
Investor Service Desks and 56 District Organizers.SBI Mutual is the first bank-
Equity schemes
and endeavor will be to provide investors the opportunity to benefit from the
higher returns which stock markets can provide. However they are also exposed
to the volatility and attendant risks of stock markets and hence should be
chosen only by such investors who have high risk taking capacities and are
willing to think long term. Equity Funds include diversified Equity Funds,
Sectoral Funds and Index Funds. Diversified Equity Funds invest in various
stocks across different sectors while sectoral funds which are specialized Equity
Funds restrict their investments only to shares of a particular sector and hence,
are riskier than Diversified Equity Funds. Index Funds invest passively only in
the stocks of a particular index and the performance of such funds move with
MSFU- IT Fund
Debt schemes
avoiding any investments in the stock markets as in Income Funds or Gilt Funds
Plan. Hence they are safer than equity funds. At the same time the expected
returns from debt funds would be lower. Such investments are advisable for the
risk-averse investor and as a part of the investment portfolio for other investors.
BALANCED SCHEMES
Magnum Balanced Fund invests in a mix of equity and debt investments. Hence
they are less risky than equity funds, but at the same time provide
Follows:
ix. Principal
x. Franklin Templeton
AWARDS AND ACHIEVEMENTS
SBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award - 8
times, CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-
2006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award
Company.
3. To know why one has invested or not invested in SBI Mutual fund
A big boom has been witnessed in Mutual Fund Industry in resent times. A large
number of new players have entered the market and trying to gain market share in this
The research was carried on in Dehradoon. I had been sent at one of the branch of State
Project Topic “A study of preferences of the Investors for investment in Mutual Fund”
The study will help to know the preferences of the customers, which company,
portfolio, mode of investment, option for getting return and so on they prefer. This
project report may help the company to make further planning and strategy.
Chapter – 4
Research Methodology
RESEARCH METHODOLOGY
This report is based on primary as well secondary data, however primary data
collection was given more importance since it is overhearing factor in attitude studies.
One of the most important users of research methodology is that it helps in identifying
the problem, collecting, analyzing the required information data and providing an
alternative solution to the problem .It also helps in collecting the vital information that
is required by the top management to assist them for the better decision making both
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. The secondary data has been
Duration of Study:
The study was carried out for a period of two months, from 30th May to 30th July 2008.
Sampling:
Sampling procedure:
The sample was selected of them who are the customers/visitors of State Bank if India,
Boring Canal Road Branch, irrespective of them being investors or not or availing the
services or not. It was also collected through personal visits to persons, by formal and
informal talks and through filling up the questionnaire prepared. The data has been
Sample size:
The sample size of my project is limited to 200 people only. Out of which only 120
people had invested in Mutual Fund. Other 80 people did not have invested in Mutual
Fund.
Sample design:
Data has been presented with the help of bar graph, pie charts, line graphs etc.
Limitation:
Possibility of error in data collection because many of investors may have not
Sample size is limited to 200 visitors of State Bank of India , Boring Canal Road
Branch, Dehradoon out of these only 120 had invested in Mutual Fund. The
sample.
size may not adequately represent the whole market.
Chapter – 5
Data Analysis
&
Interpretation
No. of 12 18 30 24 20 16
Investors
Interpretation:
According to this chart out of 120 Mutual Fund investors of Dehradoon the most are in
the age group of 36-40 yrs. i.e. 25%, the second most investors are in the age group of
41-45yrs i.e. 20% and the least investors are in the age group of below 30 yrs.
Under Graduate 25
Others 7
Total 120
Interpretation:
Out of 120 Mutual Fund investors 71% of the investors in Dehradoon are
Graduate/Post Graduate, 23% are Under Graduate and 6% are others (under HSC).
.
Interpretation:
In Occupation group out of 120 investors, 38% are Pvt. Employees, 25% are
others.
Interpretation:
In the Income Group of the investors of Dehradoon, out of 120 investors, 36%
investors that is the maximum investors are in the monthly income group Rs.
20,001 to Rs. 30,000, Second one i.e. 27% investors are in the monthly
income group of more than Rs. 30,000 and the minimum investors i.e. 4%
97.5% people have invested in Saving A/c, 76% in Insurance, 74% in Fixed Deposits,
60% in Mutual Fund, 37.5% in Post Office, 25% in Shares or Debentures, 15% in
Factors (a) Liquidity (b) Low Risk (c) High Return (d) Trust
No. of 40 60 64 36
Respondents
Interpretation:
Out of 200 People, 32% People prefer to invest where there is High Return, 30% prefer
to invest where there is Low Risk, 20% prefer easy Liquidity and 18% prefer Trust
Response Yes No
No. of Respondents 135 65
Interpretation:
From the above chart it is inferred that 67% People are aware of Mutual Fund and its
operations and 33% are not aware of Mutual Fund and its operations.
Interpretation:
From the above chart it can be inferred that the Financial Advisor is the most
important source of information about Mutual Fund. Out of 135 Respondents, 46%
know about Mutual fund Through Financial Advisor, 22% through Bank, 19%
Interpretation:
Out of 200 People, 60% have invested in Mutual Fund and 40% do not have invested
in Mutual Fund.
7. Reason for not invested in Mutual Fund
Not Aware 65
Higher Risk 5
Not any Specific Reason 10
Interpretation:
Out of 80 people, who have not invested in Mutual Fund, 81% are not aware of Mutual
Fund, 13% said there is likely to be higher risk and 6% do not have any specific
reason.
Interpretation:
In Dehradoon most of the Investors preferred UTI and Reliance Mutual Fund. Out of
120 Investors 62.5% have invested in each of them, only 46% have invested in SBIMF,
Interpretation:
Out of 55 investors of SBIMF 64% have invested because of its association with
Brand SBI, 27% invested on Agent’s Advice, 9% invested because of better return.
Interpretation:
Out of 65 people who have not invested in SBIMF, 38% were not aware with SBIMF,
28% do not have invested due to less return and 34% due to Agent’s Advice.
Interpretation:
Out of 120 investors, 68% prefer to invest in Reliance, 67% in ICICI Prudential, 63%
in SBIMF, 62.5% in Others, 50% in Kotak, 37.5% in UTI and 29% in HDFC Mutual
Fund.
Out of 120 Investors 60% preferred to invest through Financial Advisors, 25% through
No. of Respondents 78 42
Interpretation:
Out of 120 Investors 65% preferred One time Investment and 35 % Preferred through
From the above graph 46% preferred Equity Portfolio, 37% preferred Balance and 17%
Reinvestment
No. of Respondents 25 10 85
Interpretation:
From the above graph 71% preferred Growth Option, 21% preferred Dividend Payout
Out of 120 investors, 79% investors do not prefer to invest in Sectoral Fund because
Chapter – 6
Findings and
Conclusion
Findings
numbers. The second most Investors were in the age group of 41-45
years and the least were in the age group of below 30 years.
second most Investors were Private employees and the least were
numbers, the second most were in the Income group of more than
Rs.30,000 and the least were in the group of below Rs. 10,000.
About all the Respondents had a Saving A/c in Bank, 76% Invested
second most preferred Low Risk then liquidity and the least preferred
Trust.
Only 67% Respondents were aware about Mutual fund and its
Among 200 Respondents only 60% had invested in Mutual Fund and
told there is not any specific reason for not invested in Mutual Fund
Most of the investors who did not invested in SBIMF due to not
Aware of SBIMF, the second most due to Agent’s advice and rest due
to Less Return.
65% preferred One Time Investment and 35% preferred SIP out of
The most preferred Portfolio was Equity, the second most was
Balance (mixture of both equity and debt), and the least preferred
Reinvestment.
Most of the Investors did not want to invest in Sectoral Fund, only
Conclusion
peculiarities of the Indian Stock Market and also the psyche of the small
have fear of Mutual Fund. They think their money will not be secure in
Mutual Fund. They need the knowledge of Mutual Fund and its related
terms. Many of people do not have invested in mutual fund due to lack of
income is growing the number of mutual fund investors are also growing.
“Brand” plays important role for the investment. People invest in those
Companies where they have faith or they are well known with them. There
are many AMCs in Dehradoon but only some are performing well due to
Brand awareness. Some AMCs are not performing well although some of
the schemes of them are giving good return because of not awareness
about Brand. Reliance, UTI, SBIMF, ICICI Prudential etc. they are well
known Brand, they are performing well and their Assets Under
Management is larger than others whose Brand name are not well known
Distribution channels are also important for the investment in mutual fund.
Financial Advisors are the most preferred channel for the investment in
mutual fund. They can change investors’ mind from one investment option
to others. Many of investors directly invest their money through AMC
because they do not have to pay entry load. Only those people invest
directly who know well about mutual fund and its operations and those
have time.
Chapter – 7
Suggestions
And
Recommendations
made aware of the benefits. Nobody will invest until and unless he
investing.
could offer. But most of the people are not even aware of what
mindsets. The advisors should target for more and more young
time.
and time (how long they want to invest). By considering these three
and potential investors are not aware about the SIP. There is a large
BIBLIOGRAPHY
NEWS PAPERS
OUTLOOK MONEY
TELEVISION CHANNEL (CNBC AAWAJ)
WWW.SBIMF.COM
WWW.MONEYCONTROL.COM
WWW.AMFIINDIA.COM
WWW.ONLINERESEARCHONLINE.COM
WWW. MUTUALFUNDSINDIA.COM
ANNEXURE
1. Personal Details:
(a). Name:-
(c). Age:-
(d). Qualification:-
2. What kind of investments you have made so far? Pl tick (√). All applicable.
4. Are you aware about Mutual Funds and their operations? Pl tick (√). Yes No
(a) Not aware of MF (b) Higher risk (c) Not any specific reason
8. If yes, in which Mutual Fund you have invested? Pl. tick (√). All applicable.
10. If NOT invested in SBIMF, you do so because (Pl. tick (√) all applicable).
11. When you plan to invest your money in asset management co. which AMC will you prefer?
12. Which Channel will you prefer while investing in Mutual Fund?
14. When you want to invest which type of funds would you choose?
a. Having only debt b. Having debt & equity c. Only equity portfolio.
portfolio portfolio.
15. How would you like to receive the returns every year? Pl. tick (√).
16. Instead of general Mutual Funds, would you like to invest in sectorial funds?
Please tick (√). Yes No
PROJECT REPORT
ON
(2009-2012)
This is to certify that the project report entitled “A STUDY OF PREFERENCES OF THE
INVESTORS FOR INVESTMENT IN MUTUAL FUNDS” submitted by Ranjana is a
bonafide piece of work conducted under my direct supervision and guidance. No part of this
work has been submitted for any other degree of any other degree of any other university. The
data sources have been duly acknowledged. It may be considered for evaluation in the partial
fulfillment of the requirement for the award of the degree of Bachelor of Business
Administration.
With immense pleasure and deep sense of sincerity, I have completed my Industrial training. It is an
essential requirement for each and every student to have some practical exposure towards real world
situations. Training is systematized practical experience to inculcate self-confidence in a student so
that they can mentally prepare themselves for this competitive environment.
The purpose of training is:
1. Developing intellectual ability of student
2. Bring confidence
3. Developing skills
4. Modify Attitudes
How do businesses succeed in today’s competitive environment? The factor that can set an
organization apart is its people. The quality of the organization employees, their enthusiasm and
satisfaction with their jobs, their experience, and of fair treatment all affects the firm’s productivity,
customer service, reputation and survival. In short, people make the difference.
To increase the effectiveness of their promotion measures, insurance companies should increasingly
incorporate such measures into specific management programmes as well as general management
measures with regard to personnel development, organisational development and quality control.
Formulating manpower-planning policies is one of the most critical and difficult challenges faced by
an organisation. In particular, after recruitment, formulating promotion policies from one grade to
another becomes more difficult as the organisation requires more expertise, since it is linked to the
productivity enhancement of the organisation.
ACKNOWLEDGEMENT
I wish to express my deep gratitude to Miss Ragini Khanna for acting as a guide and providing me
with continuous support and guidance. This report could not have completed We express our gratitude
to the persons who guided me through this effort. It is very difficult to individualize my gratefulness
here to all whose contribution has blossomed into this presentation. We owe a great deal to my faculty
members which gave timely support and encouragement. It is the matter of privilege to bestow deep
sense of gratitude and thanks to Mis. Ragini Khanna (Senior Sales Manager) DLF Pramerica.
Dr. Balram dogra (director), APEEJAY Institute of Mangement. and Dr. Rajesh Bagga (head of
department) APEEJAY Institute of Mangement and in the end to Ms. Shweta Gupta (Lecturer in
management ) for their constructive criticism, valuable suggestions and constant encouragement at all
the stages of development of the project. I thank all the employees of DLF Pramerica for providing a
conducive environment for the development of the project and for extending the necessary facilities
for the completion of the project.
The project would not have been taken the shape without the guidance, advice and insight of my
project gratitude, It has added to our practical knowledge and build my confidence and our parents,
teachers and friends, who have been our source of strength.
Certificate (i)
Preface (ii)
Acknowledgement (iii)
1 Introduction 1-35
7 Conclusion 75
Bibliography 76-77
Annexure
Questionnaire 78-81