A Study of Investors Perception towards SBI Mutual Funds

in Jalgaon District
INTRODUCTION :-

Mutual fund is a mechanism for pooling the resources by issuing units to theinvestors
and investing funds in securities in accordance with objectives asdisclosed in offer
document.

A mutual fund is an investment vehicle for investors who pool their savings
for investing in diversified portfolio of securities with the aim of attractive yieldsand
appreciation in their value.

Investments in securities are spread across a wide cross-section of industries and

sectors and thus the risk is reduced .Mutual funds issues units to the investors in
accordance with quantum of money invested by them. Investors of mutual funds are
known as unit-holders. The profit or losses are shared by the investors
in proportion to their investments. The mutual funds normally come out with anumber
of schemes with different investment objectives, which are launched from time to time.
A mutual fund is required to be registered with securities and exchange board of India.

A mutual fund is setup in the form of a trust, which has

1. Sponsor.

2. Trustees.

3. Asset Management Company and

4. Custodian.

The trust is established by a sponsor or more than one sponsor who is

like promoter of a company. The trustees of mutual fund hold its property for the benefi
t of the unit-holders. Asset management company (AMC) approved by SEBI manages
the funds by making investments in various types of securities.
Respective asset management companies (AMC) management mutual fund schemes.
Different business groups have sponsored these AMC s. some international funds are
also operation independently in India like Aliens and Template.

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 appreciation realized are shared by its unit holders in
proportion to the number of units owned by them. Thus a Mutual Fund is the most
suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost.

SBI Mutual fund is of the largest mutual fund in the country with an investor’s
base of over 4.6 million. Investment to allows small investors access to a
portfolio of equities, bonds and other securities. Investment in securities are
spread across of industries and sectors. Mutual fund is trust that pools the saving
a number of investors who share a common financial goal.

Saving is the surplus of income over expenditure and when such savings are
invested to generate more money, it is called investment. Livestock, land and
precious metals are some of the traditional investment options. Investment took
place in banking sector many investment option like Fixed deposit (FD),
government bond, public provident fund(PPF), to investors. Capital market,
investment in stock become a good option for generating a higher returns

Indian mutual fund industry is still lacking far behind in terms of total assets
with respect to other developed nation. Mutual fund performance in terms of
their efficiency impact of various attributes on performance and behaviour of
investors towards mutual funds and other investment option.

IMPORTANCES AND SIGNIFICANCE:-

The mutual fund industry has enjoyed substantial growth in terms of the
assets under management as well as investors accounts. Many reasons that
contributed to the growth of mutual fund industry, the fundamental one is the
increasing complexity of moderns investment. Market act differently in short
term and long term investment situation. You need to compare return on
investment over a ten yrs performance.
 Its gives better returns than FD, gold, saving account. etc.
 It helps to beat inflation.
 It helps common man to get fruits of India's economic growth as India
is fastest growing economy in the world.
 Help to convert our saving into wealth over the period of time.
 It does not required much knowledge to invest in mutual fund.
 It gives tax benefits at entry and exit level.

RATIONAL:-
 Whenever an individual or a company uses a credit that means they are
borrowing money that they promise to repay with more rate of interest
decided period.
A mutual fund is the trust that pools the saving of a number of investors who
share a common financial goal. Mutual fund is a long term investment returns
have the potential to perform better than assured return product.
Mutual fund is best opportunity to individual to invest some money to out
future benefits source and for our child saving to give better life i.e i m
choosing a mutual fund investment.
Mutual funds is a tax beneficial for all individual in income tax u/s 80c.
OBJECTIVE:-

 To study the financial awareness of mutual fund investment.

 To study investor’s perception relating to liquidity and investment decision.
 To study the effect of gender difference on investment decision.
 To study the effect of age factors on investment decision in respect of age &
gender
HYPOTHESIS:-
 There is direct relationship between financial awareness level and investment
behavior in mutual fund
 There is direct relationship between age and risk taking factors.
 There is association between liquidity factors and investment decision in mutual
funds.
RESEARCH METHODOLOGY:-
The present study aims to study the investor’s preference while investing in SBI mutual
funds. The study is based on data collected from different people investing their money
in SBI Mutual Fund
Primary Source: For collecting the primary data survey was conducted to find out the
perception level, product attributes, brand awareness etc. The data are collected in
Jalgaon City because it is commercial Centre of Jalgaon District. The data are collected
through questionnaire.
Secondary Source: consists of all information from Mutual fund Staff, different
websites, Books, Brochure, Magazines, Newspapers.
A Structured Questionnaire will be made and distributed among the respondents. The
data will be on Demographic factors, investment behaviour, and investment decisions
of investors. The results will be analysed in light of hypothesis framed and information
obtained shall be interpreted in form of findings and conclusions and required
recommendations shall be made.
EXPECTED CONTRIBUTION:-
This project help to person who wants to invests in mutual fund from our
prestigious SBI bank. It will help the assess in financial decision making for
our organisation and to develop the future business. The study may help the
organisation to enhance it further substantial. This study will put on how to get
investment in mutual fund from bank and makes the perfect decision and to
develop the business in market.
LIMITATIONS:-
Geographic Scope: The sample used for the study has been taken from the investors of
Jalgaon City.
Although adequate care was taken to elicit the accurate information from the
respondents, some of them have felt difficulty in crystallizing their feelings into words.
Apart from the problem faced in articulating, it is the validity of the feedback can be
speculated.
Despite the above limitations the study is useful in that it does point out the trends and
helps to identify the dimensions for improving the scope of mutual funds
CHAPTERIZATION SCHEME:
1) Introduction:
This Chapter deals with Introduction to topic of mutual funds, different types of mutual
funds, their operations, AMC’s etc.
2) Review of Literature:
This Chapter attempts to study research already done in the field and the outcomes of
that research.
3) Research Methodology:
This chapter deals with Scope of research, Objectives of research, Data Collection
Methods and sampling techniques used for research.
4) Introduction of SBI Mutual Funds:
This chapter gives details of theoretical background of SBI mutual funds, their history,
growth, schemes offered etc.
5) Data Analysis:
This chapter is related to analysis of data based on questionnaire designed and
distributed by researcher.
6) Findings, Conclusion and Suggestions:
This chapter deals with findings from the study and suggestions if any.