Customers Buying Pattern of Mutual Funds

CUSTOMER’S PERCEPTION AND
THEIR BUYING PATTERN OF

MUTUAL FUND
Raman Tripathi
Enrolment no: 0202101048
ACKNOWLEDGEMENT
Page G L O B S Y N B U S I N E S S S C H O O L
With regard to my Project with Mutual Fund I would like to thank each and every one
who offered help, guideline and support whenever required.
This project report and the learning process behind it would not have been possible
without guidance of Mr. Vinod Agrawal (Branch Manager N.J India invest, Ajmer). He
imparted me right approach that my training required for its successful practical
implementation and introduced me the idea of Mutual Funds.
I was involved with N.J India Invest for three months, and I came across a lot of
people who put in their time and effort towards acclimatizing me to the workings of their
organization. I express my thanks to Mr. Vinod Agrawal under whose guidance and
leadership I was able to enhance my financial as well as inter-personal skills. I also express
my gratitude to Ms. Vinita Joshi for her constant support and guidance. She helped me to
understand NJ and its services.
I am also grateful to our teacher Ms PALLAVI MITTAL for the help and guidance
provided to make me learn, and understand the concepts and complete my project work.
Without her help I would not have been able to complete my work in the present form.
I thank GBS-A and its management team, CRP for their co operation, help and
guidance and the opportunity.
I am grateful for each and every valuable interaction that brought me to a better
understanding of the workings of the Mutual Fund industry.
These three months were of utmost importance as they added value towards my path
of knowledge. I would like to end this acknowledgement by thanking the customers, clients,
investors, and people at large with whom I have interacted during the course of my training.
APROVAL FROM GUIDE
This is to certify that Ms. Jyoti Bhawnani student of GLOBSYN BUSINESS
SCHOOL AHEMDABAD has completed project work on “customer perception
&their buying pattern of mutual fund” under my guidance and supervision.
I certify that this is an original work and has not been copied from any source.
Signature of Guide
DATE:
Name of Project Guide
Mr.Vinod Agrawal
DECLARATION
I hereby declare that this Project Report entitled “CUSTOMER PERCEPTION

&THEIR BUYING PATTERN OF MUTUAL FUND IN N.J INDIA INVEST”
submitted in the partial fulfillment of the requirement of PGDM of GLOBSYN BUSINESS
SCHOOL AHEMDABAD is based on primary & secondary data found by me in various
departments, books, magazines and websites & Collected by me in under guidance of Mr.
Vinod Agrawal
DATE: JYOTI BHAWNANI
Enrollment No.020101048
EXECUTIVE SUMMARY
In last 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
of people who will decide to invest in mutual funds will 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 Do 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.
The second part of the Project consists of data and its analysis collected
through survey done on 150 people. For the collection of Primary data I made a
questionnaire and surveyed of 150 people. I have also taken interview of many People
those who were coming at the NJ Ajmer Branch where I have done my Project.
TABLE OF CONTENT
1. Introduction………………………………………………………….09
2. Company Profile and History………………………………………..25
3. Objective of research………………………………………………..36
4. Research Methodology………………………………………………38
5. Analysis and Interpretations………………………………………...40
6. Conclusion…………………………………………………………..61
7. Limitations …………………………………………………………64
8. Recommendations………………………………………………….65
9. Bibliography………………………………………………………..67
10. Annexure………………………………………………………...….68
LIST OF FIGURES
1. Concept of Mutual Funds……………………………………………………..09

2. Working of Mutual Funds……………………………………………………..10
3. Growth of AUM of Mutual Funds…………………………………………….17
4. Categories of Mutual Funds…………………………………………………..20
INTRODUCTION
Introduction TO MUTUAL FUNDS AND ITS
ASPECTS
MUTUAL FUND
A mutual fund, as defined in the regulations is a fund established in the form
of a trust to raise money through the sale of units to the public or a selection of the public
under one or more schemes for investing in securities, including money market
instruments .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 it is clear that a mutual fund is a collection of investments. It is a pool of money, the
combined contributions of a number of individuals. The working of the mutual fund has been
shown with the help of the following diagram.
Investors have their individual preferences on how they would like their
money invested and how much risk they are willing to take. An individual investor could
choose to hire a professional manager to manage her/his money as per investment and risk
preference. Such personal treatment often referred to as Portfolio Management Scheme
(PMS) in India, entails significant demands on the time of the managers.PMS is therefore
economically feasible only for investment portfolios above a particular value.
It is possible to balance the time and cost required to manage investments by

grouping investors together based on their preferences. In this manner, the focus of the
investment activity can be shifted from a single investor (as in the case of PMS) to group of
investors having similar expectations .This is what mutual
funds do, thus a mutual fund is a vehicle to pool money from the investors ,with a promise
that the money would be invested in a particular manner by professional managers who are
expected to honour the promise.
LEGAL STRUCTURE AND REGULATORY BODY

Mutual Funds in India have a 3 tier structure of Sponsor ,Trustee AMC and is
governed by SEBI (Mutual funds) regulations 1996 and it is mandatory for mutual funds to
have three tier structure is as follows.
• SPONSOR
• TRUSTEE
• ASSEST MANAGEMENT COMPANY(AMC)
SEBI approved Asset Management Company (AMC) manages the funds by making
the investments in various types of securities. Custodian, registered with SEBI, holds the
securities of various schemes of the fund in its custody. The general power of
superintendence and direction over AMC is vested with the trustees.
SPONSOR
Any project need to have a promoter, who initiates, establishes and promote the
project and work towards achieving the goals. In case of the mutual fund, promoter is known
as sponsor. They have to meet and satisfy SEBI requirements. Sponsor appoints the trustee,
custodian and the AMC with the prior approval of SEBI, and in accordance with SEBI
regulations.
Sponsor must have sound track record and a good reputation at businesses in financial
services for a period of minimum of five years and should have made profit in at least 3 out
of 5 years. Sponsor has to contribute at least 40% net worth of the AMC.
TRUSTEE
Trustees are people within a mutual fund organization who are responsible for
ensuring that investor’s interests in a scheme are properly taken care of. In return for their
services they are paid trustee fees, which are normally charged to scheme. The appointment
of all trustees has to be done with prior approval of SEBI.
REGULATORY REQUIRMENT OF TRUSTEE

The mutual fund which is a trust is managed either by a Trust Company or a Board of
Trustee and trust companies are governed by the provisions of the Indian Trust Acts. If the
trust is a company, it is also subjected to provisions of the Indian Companies Act. It is the
responsibility of the trustees to promote the interest of investors, whose fund is managed by
AMC.
The sponsor executes and registers a trust deed in favor of the trustees. The
appointments of all trustees are to be done with prior approval of SEBI. There must be at
least 4 members in the Board of Trustees and at least 2/3 of the trustees need to be
independent.
Trustee of one mutual fund cannot be a trustee of another mutual fund unless he is an
independent trustee in both the cases, and has the approvals of both the boards.
RIGHTS OF TRUSTEES
• The trustee has the right to obtain from the AMC, such information as they consider
necessary to fulfill their obligations.
• A majority of trustees have the right to terminate the appointment of an AMC. Any
change in the appointment of the AMC is however, subject to prior approval of SEBI
and the unit holders.
• The trustees shall not be held liable for acts done in good faith if they have exercised
adequate due diligence honestly.
OBLIGATION OF THE TRUSTEES

• Trustees must ensure that the transactions of the mutual fund are in accordance with
the trust deed.
• Trustees must ensure that the AMC has systems and procedures in place, and that all
the fund constituents are appointed.
• Trustees must furnish to SEBI, on half-yearly basis, a report on the activities of the
AMC.
• Trustees must ensure that the activities of the mutual fund are in compliance with
SEBI regulations.
TRUST DEED
It has to contain certain clauses prescribed by SEBI and duly registered under the
provisions of the Indian Registration Act, 1908 and has to be executed by the sponsor in
favor of the trustees named in the deed. It cannot contain any clause which limits or
extinguishes the obligations and liabilities of the trust with respect to the mutual fund or its
investors
ASSEST MANAGEMENT COMPANY (AMC)

It is obligatory for every mutual fund to have an AMC to manage the mutual fund and
operate its schemes. The actual appointment could be made either by the sponsor or, if so
authorized by the trust deed, the trustees.
The AMC is usually a private limited company, in which the sponsors and their
associated or joint venture partners are shareholders.
REGULATORY REQUITREMENTS OF AMC

• Only SEBI registered AMC ’s can be appointed as investments managers of mutual
funds
• AMC must have a minimum net worth of Rs.10 crores at all times.
• An AMC cannot be an AMC or trustee of another mutual fund.
• AMC’s cannot indulge in any other business other than that of asset management.
• At least 50% of the members of an AMC have to be independent.
OBLIGATIONS OF AMC
The investments made by the AMC have to be in accordance with the investment
management agreement and SEBI regulations. The AMC shall be responsible for acts of
commission or omission of its employees and its other service providers.
It shall issue or publish offer document of a scheme, key information memorandum,

abridged half yearly results and annual results only after prior written approval of the
trustees. The AMC has to maintain proper books of accounts, records and documents for each
scheme. It shall maintain and preserve these for a period of eight years.
OTHER FUNCTIONARIES OF MUTUAL FUNDS
Apart from Sponsor, trustee and AMC, other important functionaries include:
1. Registrars and Transfer Agents
2. Broker
3. Custodians
4. Depository Participants (DP)
5. Distributors
6. Legal Advisor and Auditor
REGISTRARS & TRANSFER AGENTS

The R&T agents are responsible for the investor servicing functions as they maintain
the record of investors in mutual funds. They process investor applications ,record details
provided by the investor on application forms, send out to investors details regarding their
investments in the mutual funds, periodical information on the performance of the mutual
fund, process dividend payout investors, incorporate changes in information as
communicated by investors and removing new investors and removing investors who have
withdrawn their fund.
BROKERS
Brokers support the investment management function of the mutual fund, by enabling
the investment managers to buy and sell securities. Brokers are registered members of the
stock exchanges. They charge a commission for their services. In many cases, brokers also
provide investment managers with research reports on the performance of various companies
and industrial sectors, and investment recommendations .Brokers also are an important
source of market information to fund managers.
CUSTODIANS
Custodians are responsible for the securities held in the mutual fund’s portfolio. They
discharge important back office function by ensuring that securities that are bought are
delivered and transferred to the books of the mutual funds. They keep the investment account
of the mutual fund and also collect the dividends and interest payments due on the mutual
fund investments.
Custodians also track corporate actions like bonuses issues, right offers, offer for sale,
buy back and open offers for acquisition .On the advice of the fund managers they act on
these corporate actions.
DEPOSITORY PARTICIPANT (DP)

DP holds the securities of mutual funds in dematerialized form. They work with the
custodians and handle the operational aspects of actually making/receiving delivery of
securities into the account of mutual fund. On instructions from the custodian, they deliver
/receive securities from the company /stock exchanges in dematerialized form. They also
communicate the custodian’s instructions on corporate actions to the company.
DISTRIBUTORS
Mutual funds products are reached to investors across the country through selling
agents called distributors. They bring in the investor’s fund for a commission. Distributors
are institutions that appoint agents and other mechanisms to mobilize funds from investors.
Most agents and distributors are paid commission on the funds they mobilize from
investors’ .These commissions are split into initial commission which is paid on mobilization
of funds, and transaction commission, which is paid depending on the length of stay of the
investor in the mutual fund. Some agents also pass on the commission they receive, to the
investors as incentive.
LEGAL ADVISORS AND AUDITORS

Legal advisors advise mutual funds on regulatory and taxation issues. Every mutual
fund has an employee designated as compliance officer, who works under the advice of the
legal advisors.
Each mutual fund scheme created by an AMC has to maintain a separate book of
accounts and draw up its annual report. These two sets of accounts are required to be
statutorily audited. SEBI Regulations stipulate that auditors of the fund cannot be also be the
auditors of the AMC. The two sets of accounts have to be audited by two separate auditing
firms .Auditors charge a fee from the mutual fund for these services. The AMC pays the
auditors out of its incomes, for auditing its book.
REGULATORY BODY
Securities and Exchange Board of India (SEBI) is the apex regulator of capital market
instruments and the regulation of capital market intermediaries is under the purview of
SEBI.SEBI is the primary regulator of mutual funds in India.
SEBI has enacted the SEBI (Mutual funds) Regulations 1996, (hereinafter referred to
as SEBI Regulations) which provides the scope of the regulations of Mutual funds 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 disclosures norms right and obligations and functionaries of investments,
investment restrictions, compliance and penalties are all defined under the SEBI regulation.
Mutual funds have to send half-yearly compliance reports to SEBI and SEBI also is
empowered to periodically inspect mutual fund organization to ensure compliance with SEBI
Regulations.
REGULATORY JURISDICTION OF RBI over Mutual Funds

RBI is the monetary authority of the country and also the regulatory of the banking
system. Earlier bank sponsored mutual funds were under the dual regulatory control of RBI
and SEBI, and Money market mutual funds, which invested in short term instruments were
regulated by RBI. These provisions are no longer in place. Now SEBI is the regulator of all
mutual funds.
The present position is that RBI is involved with the Mutual fund industry, only to the
limited extent of being the regulator of the sponsors of bank –sponsored Mutual funds. If the
sponsor has made any financial commitment to the investors of the Mutual Funds, in the form
of guaranteeing assured returns, such guarantees can no longer be made without the prior
approval of RBI.RBI will review financial condition and capital adequacy of the sponsoring
bank, before permitting it to make such guarantees
HISTORY OF THE INDIAN MUTUAL FUND
INDUSTRY
The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India, at the initiative of the Government of India and Reserve Bank. Though
the growth was slow, but it accelerated from the year 1987 when non-UTI players
entered the Industry.
GROWTH OF ASSET UNDER MANAGEMENT OF MUTUAL FUNDS
PHASES OF MUTUAL FUND INDUSTRY
Mutual fund industry can be broadly put into four phases according to the
development of the sector:-
First Phase – 1964-87
This phase began with the inception of the Unit Trust of India (UTI). It remained the
only mutual fund player in the country till 1987. UTI started its operations in July 1964. it
was set up by the Indian Government with a view to augment small savings in the country
and to channelize these savings to the capital markets. UTI witnessed a slow and steady
growth over the 1970s and the 1980s. In 1978 UTI was de-linked from the RBI and the
Industrial Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI.
Second Phase – 1987-1993 (Entry of Public Sector Funds)
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 Canra 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.At the end of 1993, the mutual fund industry had assets under
management of Rs.47,004 crores. the total number of schemes increasing to about 167 by the
end of 1994.
Third Phase – 1993-2003 (Entry of Private Sector Funds)
This phase marked the entry of private sector funds. The phase also signaled the
intensification of the competition. Both domestic and foreign players entered the market,
offering a wide variety of schemes to investors. Kothari Pioneer Mutual Fund was the first
private sector fund to be established in association with a foreign fund. The opening up of the
market to private players saw international players like Morgan Stanley, Jardine Fleming, JP
Morgan, George Soros and Capital International entering the market. The 1993
SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and

revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing,
with many foreign mutual funds setting up funds in India and also the industry has witnessed
several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds
with total assets of Rs. 1,21,805 crores
Fourth Phase – since February 2003
This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is
the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835 crores (as on
January 2003). The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come under
the purview of the Mutual Fund Regulations. 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. With the bifurcation of the erstwhile UTI which had in March
2000 more than Rs.76,000 crores of AUM and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place
among different private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of March, 2008 there were 35 funds, which
manage assets of Rs 505152 crores.
CATEGORIES OF MUTUAL FUND:
OPEN ENDED SCHEME
An open ended fund is one that is available for subscription all through the year.
These do not have fixed maturity. Investors can conveniently buy and sell units at Net Assets
Value (NAV) related prices. The key feature of open ended schemes is liquidity.
CLOSE ENDED SCHEME

A close ended fund has a stipulated maturity period which generally ranges from 3 to
15 years. The fund is open for subscription only during a specified period .Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy and sell
the units of the scheme on the stock exchange where they are listed. In the order to provide
the exit route to the investors, some close ended funds give an option of selling back the units
to the Mutual fund through periodic repurchase at NAV related prices.
INTERVAL FUNDS
Interval funds combine the features of open ended and close ended schemes. They are
open for sale or redemption during pre-determined intervals at NAV related prices.
GROWTH FUNDS
The aim of growth funds is to provide capital appreciation over the medium to long
term. Such schemes normally invest a majority of corpus in equity. Growth schemes are ideal
for investors having a long term outlook seeking growth over a period of time.
INCOME FUNDS
The aim of the income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds, corporate debentures
and government securities. Income funds are ideal for capital stability and regular income.
BALANCED FUNDS
The aim of the balanced fund is to provide both growth and regular income. Such
schemes periodically distribute a part of their earnings and invest both in equities and fixed
income securities in the proportion indicated in their offer documents. In a rising stock
market, the NAV of these schemes may not normally keep pace, or fall equally when the
market falls. These are ideal for investors looking for a combination of income and moderate
growth.
MONEY MARKET FUNDS

The aim of money market funds is to provide easy liquidity, preservation of capital
and moderate income. These schemes generally invest in short term instruments such as
treasury bills, certificates of deposits, commercial papers and interbank call money. Returns
on these schemes may fluctuate depending upon the interest rates prevailing in the market.
These are ideal for corporate and individuals investors as a means to park their surplus funds
for short periods.
INDUSTRY SPECIFIC SCHEMES

Industry specific schemes invest only in the industries specified in the offer
document. the investment of these funds is limited to specific industries like Infotech,
FMCG, Pharmaceuticals.
INDEX SCHEMES
Index funds attempt to replicate the performance of a particular index such as the BSE
Sensex or the NSE 50.Such a position can be created through either of the two methods:
It can either be done by maintaining an investment portfolio that replicates the

composition of the chosen index. Thus, the stocks in such a fund’s portfolio would be same
as are used in calculating the index. The proportion of each stock in the portfolio too would
be the same as the weight of the stock in the calculation of the index. This replicating style of
investment is called passive investing.
Alternatively, a mutual fund, through its research can identify a basket of securities
and /or derivatives whose movement is similar to that of the index. Schemes that invest in
such baskets can be viewed as active index funds.
SECTORAL SCHEMES
Sect oral Schemes are those, which invest exclusively in a specified industry or a
group of industries or a various segments such as ‘A’ Group shares or initial public offerings
Mutual funds in order to cater to a range of investors have various investment

plans. Some of the important plans include:
GROWTH PLAN
Under the growth plan, the investor realizes only the capital appreciation on the
investment (by an increase in NAV) and doesn’t get any income in the form of dividend.
INCOME PLAN
Under the Income plan, the investor realizes income in the form of dividend. However
his NAV will fall to the extent of the dividend.
DIVIDEND REINVESTMENT PLAN

Here the dividend accrued on mutual funds is automatically re-invested in purchasing,
additional units in open ended funds. In most cases mutual funds offer the investor an option
of collecting dividends or reinvesting the same.
SYSTEMATIC INVESTMENT PLAN (SIP)

SIP involves investing a fixed sum of money in a specific investment scheme, on a
regular basis, for a pre-determined number of periods. It is very similar to regular saving
schemes like a recurring deposit.
SYSTEMATIC WITHDRAWAL PLAN

As opposed to the Systematic Investment Plan, the Systematic Withdrawal plan
allows the investor the facility to withdraw predetermined amount/units from his fund at a
pre-determined interval. The investor’s units will be redeemed at the existing NAV as on that
day.
SYSTEMATIC TRANSFER PLAN
Investors’ exposure to different types of securities, whether debt or equity should
flow from their risk profile or risk appetite. For instance, an investor may start with a 40:60
mix of debt and equity, as determined by her risk profile. But if equity markets boom and
debt securities lose value, then the 40:60 mix could get significantly distorted towards equity.
In such a situation, it would be prudent to sell some equity and re-invest the redeemed
amount in debt to re-balance the mix of debt and equity. In mutual funds such re-balancing
can be achieved by systematically moving moneys between schemes. This can be achieved
by systematic transfer plan.
COMPANY PROFILE AND HISTORY
NJ India Invest is one of the leading advisors and distributors of financial products
and services in India. It was established in year 1994, by Mr. Neeraj and Mr. Jignesh. NJ
has over a decade of rich exposure in financial investments space and portfolio advisory
services. From the beginning NJ over the years has evolved out to be a professionally
managed, quality conscious and costumer focused financial/investment advisory &
distribution firm.
The strength of NJ lies in the strong domain knowledge in
investment consultancy and the delivery of sustainable value to clients with support
from cutting-edge technology platform, developed in-house by NJ.
NJ believes and practice successful wealth creation for customers, SUCCESSFUL

WEALTH CREATION is the mission of NJ. With such a mission NJ is evolved in making
right product accessions and services in all offerings. NJ provide a 360 degree comprehensive
business platform with unmatched IT solutions to its partners, empowering them to set the
best practice standards so as they deliver real value to their customers. With this passion NJ
has grown and expanded rapidly, setting new benchmarks. NJ works only for betterment of
people and believes in transforming their lives by providing right kind of information
regarding their investments.
NJ had over INR 5,050* crores of mutual fund assets under advice with a wide
presence in over 130 locations in 22 states in India.
These numbers reflects the trust, commitment and value that NJ shares with its clients.
PHILOSOPHY
At NJ what inspire and shape the thoughts, beliefs, attitude, actions
and decisions of employees is NJ’s service and investing
philosophy…
SERVICE PHILOSOPHY:
NJ believes that success of a company lies in customer satisfaction.
NJ is committed to provide its customers with continuous, long term improvements and value-
additions to meet their needs. The company aims to deliver the best service possible to
customers.
INVESTING PHILOSOPHY
At NJ providing need based solution is first and foremost aim for long-term wealth creation of
customers.
Page NJ believes in providing customers
G L O B with
S true,
Y N unbiased;
B U S need
I N based
E S Ssolutions
S C and
H O O L
advice that best meets their stated and unstated needs.
NJ India Invest has distinct divisions of business as follows of which 2 are
major i.e. fundz network and wealth advisors
Mission and Vision

VISION
Like all NJ’s vision is off course to be leader in the field and
this they want and are achieving through:
• Total customer satisfaction

• Commitment to excellence
• Successful wealth creation of customers.
MISION
• To ensure creation of the desired value for customers, employees and associates,
through constant improvement, innovation and commitment to service & quality.
• To provide solutions which meet expectations and maintain high professional &
ethical standards along with the adherence to the service commitments.
DIVISIONS
DIVISIONS
NJ Fundz Network, started in 2003, it is a dedicated channel for
providing independent financial advisors or IFA's with a complete
business platform for the strengthening and development of their advisory practice. NJ
offers advisors under its network with all the products; support and services that
enables them to add considerable value to their business emerge as a 'new age
professional financial advisor' and compete confidently in the industry.
NJ Wealth Advisors Pvt. Ltd. established as a distinct entity, it seeks to offer

comprehensive financial planning and portfolio advisory services to premium clients.
With NJ Wealth Advisors, NJ seeks to leverage the strong financial advisory and
portfolio management skills gained in over a decade of experience in the industry. NJ
Wealth Advisors offers its clients with quality, unbiased, need-based advisory services
& investment solutions.
This sporadic growth in terms of need of performers in financial advisory

services has lead to the crunch of available performers. Though lots of youngsters are
getting into financial advisory services, but the greatest challenge is of RIGHT
SELLING, for which adequate Training is a prerequisite. Advisory function demands
updated knowledge, backed up by honed skills to fetch effective business. Building
long term relationship with clients depends upon possessing clear edge over others in
the field. Hence continuous people development has an important role in building this
fraternity.
Technology has traditionally been NJ's key strength. NJ’s offering on the
technological front is unmatched, vibrant, and comprehensive in nature. The focus &
commitment on technology can be gauged from the fact that NJ have set-up distinct
entity with a very strong, talented work-force for the sole purpose of providing the best
to NJ in terms of technology and support. Finlogic Technologies (India) Pvt. Ltd. does
all the development & support work in-house on a continuous basis. It has successfully
developed & implemented a powerful support system for the mutual fund distribution
business at NJ with a provision for integrating the same with other investment products
as well as the financial accounting system.
PRODUCTS
NJ offers advisory and distribution services on the following
products.
1. Mutual funds – covering all AMCs & all schemes,
2. Life insurance – Prudential ICICI
3. Fixed deposits of companies,
4. Government/RBI bonds,
5. Infrastructure Bonds,
6. Approved securities for charitable trusts, etc
RECOGNITIONS
Year 2003:
For Outstanding Performance presented by Group Chief Executive,
Prudential Plc. at London
Year 2004:
Among Most Valued Business Associates presented by HDFC Standard
Life at Edinburgh, Scotland
Year 2004:
MANAGMENT
For Outstanding Performance by Deputy CEO, Prudential Singapore at Malaysia
Year 2006:
Award for mobilizing the Highest Number of SIPs at National Level by Fidelity Mutual
The management at NJ brings together a team of people
Fund Plc at Mumbai with wide experience and knowledge in the financial services
domain. The management provides direction and guidance to the
Year 2006: whole organization. The management has strong visions for NJ as a
Award – Vietnam globally respected company providing comprehensive services in
financial sector.
The 'Customer First' philosophy is deeply ingrained in the
management at NJ. The aim of the management is to bring the best
to the customers in terms of
Range of products and services offered

Quality Customer Service
The key members of the management are:

Mr. Neeraj Choksi Jt. Managing Director
Mr. Jignesh Desai Jt. Managing Director
Key Sales Team:

Mr. Misbah Baxamusa National Head
Mr. Naveen Rathod V.P. (Sales)
Mr.Kulbhushan Nandwani A.V.P. (Marketing)
Mr. Prashant Kakkad A.V.P. (Sales)
Key Executive Team :

Mr. Shirish Patel Information Technology
Mr. Abhishek Dubey Business Process
Mr. Vinayak Rajput Operations
Mr. Dhaval Desai Human Resources
Mr. Col. Dixit Administration
Mr. Tejas Soni Finance
Mr. Viral Shah Research
Mr. Rakesh Tokarkar Compliance
SERVICE STANDARDS
Service is the key to unlocking customer

satisfaction, which again is key for sustainability of any
business. NJ has set strict processes in place to deliver
quality services to customers. At NJ strict quality service
standards are set and a well-defined process is established
and followed religiously by all quality customer service
teams. Performance is evaluated on a frequent basis and
glitches are ironed out.
But quality service also involves quality people in addition to processes. NJ gives
significant focus to the proper training and development of the people involved in the service
delivery chain.
Further NJ
• Have well-defined "Privacy Policy" to keep clients’ information confidential &
internal audits done on the same at regular intervals
• Receive various statistics which are analyzed on an ongoing basis to improve the
service standards
Service Commitments …
The service commitments are to guide the actions of the people at NJ. Clearly stated,
customers can freely communicate any such actions/events wherein they feel that any of the
following commitments have been breached / compromised. NJ desire to honour
commitments at all points of time and to all customers without any bias.
• To provide customer-focused need-based valued services
• To provide reliable, accurate and timely information
• To maintain all records in privacy
• To optimize services/benefits at least justifiable cost
• To develop and grow the customers ’ business
• To provide constructive after sales service
COMPETITORS OF NJ
Anand Rathi-
Anand Rathi is one of the major competitors of NJ India Invest. The firm, founded in
1994 by Mr. Anand Rathi, today has a pan India presence as well as an international presence
through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory
services including wealth management, investment banking, corporate advisory, brokerage &
distribution of equities, commodities, mutual funds and insurance, structured products - all of
which are supported by powerful research teams.
Karvy-
The karvy group was formed in 1983 at Hyderabad, India, karvy ranks among the top
player fields in almost all the fields it operates. Karvy computer share limited is India’s
largest registrar and transfer agent with a client base of nearly 500 blue chip corporate,
managing over 2 crores accounts, Karvy stock brokers limited. Karvy also works as
distribution house of some AMCs.
India Infoline
The India Infoline group, comprising the holding company, India Infoline Limited
and its wholly-owned subsidiaries, straddle the entire financial services space with offerings
ranging from Equity research, Equities and derivatives trading, Commodities trading
Portfolio management services, Mutual Funds, Life Insurance, Fixed deposits, Gov. Bonds
and other small savings instruments to loan products and investment banking. The company
has a network of 758 business locations (branches and sub-brokers) spread across 346 cities
and towns. It has more than 800,00 customers.
Bajaj capital
The Bajaj Capital Group is one of India’s leading
Investment Advisory and Financial Planning companies. Bajaj Capital is also SEBI-approved
Category I Merchant Bankers. Bajaj Capital offers Personalized investment Advisory and
Financial Planning services to individual investors, corporate houses, institutional investors,
Non-Residents Indians (NRIs) and High Net worth Clients, among others. Bajaj Capital
offers a wide range of investment products such as mutual funds, life and general insurance,
bonds, post office schemes, etc. offered by public and private and government organizations.
BONANZA-
Bonanza is a leading Financial Services & Brokerage House. It also distributes mutual
funds of various AMCs.
ALL BANKS AND OTHER FINANCIAL INSTITUTIONS-

In India many banks also distributes Mutual funds of various AMCs such as
Karnataka bank distributes mutual funds of Franklin Templeton. So these banks and other
financial institutions are also major competitor of NJ India invest. Though these
organizations are engaged in distribution of mutual funds bud most of them have a different
concept from NJ India invest they are selling Mutual funds directly to the investors whereas
NJ India invest distributes Mutual funds of all the AMCs indirectly (through its channel
partners) except of four cities
S.W.O.T. Analysis of NJ INDIA INVEST
STRENGTHS
The biggest strength of the organization is the;
• Money power, which makes them ignorant about gestation period.

• Brand image, business experience and innovative products.
• The agents are very selectively chosen have excellent communication
skills.
• Service quality which is the crux of their mission.
WEAKNESS
• High target for financial advisor and sales departments.
• Many competitors in market offer same products by the little difference in
the offering.
• Sustainable to risk associated with investments in money market.
OPPORTUNITY
• Huge market is literally untapped; out of estimated 320 million only 20%
of population has investment in mutual fund industry.
• Equity and ELSS schemes, contribute an estimated market potential of
approximately $15 billion.
THREATS
• Entry of many other private player companies with equally strong experience
and financial strength of foreign partners making the competition difficult and
saturating the urban market.
• Current govt. policies which do not encourage gross domestic saving. If the
tax liability of service class rises the customer will have little money to invest.
OBJECTIVE OF STUDY
1. To find out the Preferences of the investors for Asset Management Company.
2. To know the Preferences for the portfolios.
3. To find out the most preferred channel.
4. To find out preferred option for getting returns.
5. To find out investments objective.
SCOPE OF STUDY
A big boom has been witnessed in Mutual Fund Industry in recent times. A
large number of new players have entered the market and trying to gain market share in
this rapidly improving market.
The research was carried on in Ajmer. I had been sent at one of the branch of NJ
INDIA INVEST in Ajmer where I completed my Project work. I surveyed on my
Project Topic “A study of preferences of the Investors for investment in Mutual Fund”
on the visiting customers of NJ INDIA and advisors office.
The study will help to know the preferences of the customers, which company,
portfolio, mode of investment, and option for getting return and so on they prefer. This
project report may help the company to make further planning and strategy.
RESARCH 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
day to day decision and critical ones.
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
collected through various journals and websites.
DURATION OF STUDY:
The study was carried out for a period of three months, from 2nd April to 2nd
July 2009.
SAMPLING:
 SAMPLING PROCEDURE:
The sample was selected from people who are the customers/visitors of
NJ India invest Ajmer branch, irrespective of them being investors or not or
availing the services or not. It was also collected through personal visits to
Ajmer railway office and to some govt. schools, by formal and informal talks
and through filling up the questionnaire prepared. The data has been analyzed
by using mathematical/Statistical tool.
 SAMPLE SIZE:
The sample size of my project is limited to 150 people only. Out of

which only 140 people had invested in Mutual Fund. Other 10 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.
DATA ANALYSIS AND INTERPRETATION
a)AGE DISTRIBUTION OF INVESTORS OF

NJ INDIA:
NO. OF
AGE GROUP INVESTORS
20-30 38
30-40 55
40-50 43
above 50 14
INTERPRETATION
According to this chart out of 150 respondents who visited NJ office maximum
55 respondents are in age group of 30-40 that is they constitute approx 37 %,the second
most investors i.e. 43 respondents are in age group of 40-50 and this constitute 29 %
and people above 50 yrs of age are the one who invest least.
b)EDUCATIONAL QUALIFICATION OF
INVESTORS
EDUCATIONAL QUALIFICATION NO. OF INVESTORS
Graduate 76
Undergraduate 25
post graduate and above 49
INTERPRETATION
Out of 150 investors 51% of investors are graduate and 32% are post graduate and
above rest constitute undergraduates.
c) OCCUPATION OF INVESTORS
OCCUPATION NO.OF INVESTORS

government job 35
private job 43
entrepreneur 17
Others 10
INTERPRETATION
From the chart above out of 150 respondents’ maximum no. of investors for NJ
India are in private job i.e. 41%. After that 33% people are entrepreneur 16% in
government job rest constitute students, house wives and others.
d)YEARLY FAMILY INCOME OF

INVESTORS
INCOME GROUP NO.OF INVESTORS
60000-1lakh 9
1lakh-2lakh 39
2lakh-3lakh 53
above 3lakh 49
INTERPRETATION
According to income group of investors maximum no. of investors are in

income group of 2lakh-3lakh i.e. they constitute approx 38% after that investors of
income group more than 3lakh invest which constitute around 32% and rest 26% are in
income group of 1lakh-2lakh and remaining are in age group of 60000-1lakh
e)PERCENTAGE OF INCOME INVESTORS

INVEST
%AGE OF INCOME
INVESTED NO. OF INVESTORS
5%-10% 55
10%-20% 52
20% and above 43
INTERPRETATION:
From the graph it is seen that investors invest maximum of 5-10% of their
income and this group constitute around 37% of investors after that it is 34% of people
who invest 10-20% of their income rest 29% people invest more than 20% of their
income.
f) MODES OF DIFFERENT INVESTMENT

PREFERRED BY INVESTORS
NO. OF
MODE OF INVESTMENT INVESTORS
FD 29
RD 13
Insurance 93
Share market 42
Real estate 11
Mutual Funds 140
FD + RD 13
FD +insurance 2
FD+ share market 0
FD+ MF 14
RD+insurance 2
RD+share market 7
RD+real estate 1
RD+MF 4
Insurance+share market 2
insurance+real estate 49
insurance+MF 26
Share market+real estate 31
share market+MF 110
real estate+MF 3
INTERPRETATION
Out of 150 investors 140 of them invest in MF in NJ India invest, after which
there are investors who invest in MF as well as share market, after that there are
investors who invest in insurance, and then in insurance as well as real estate.
g) Investor’s preference while investing IN
A PARTICULAR MODE
INVESTORS PREFRENCE NO.OF

WHILE INVESTING INVESTORS
Trust 43
good returns 53
Security 51
Others 3
INTERPRETATION
Out of 150 respondents 37% i.e. maximum no. of respondents prefer good
returns while investing in a mode of investments while 34% investors prefer security
while investing and rest 28% prefer to have trust in the mode of investment they are
investing.
h) Respondents who invested in MUTUAL

FUND
INVEST IN MF NO.OF INVESTORS

yes 140
No 10
INTERPRETATION
Out of 150 investors 140 i.e. 93% of investors do invest in mutual funds and
rest 7% don’t invest in mutual funds.
i) Reason for not investing in mutual

funds
REASON FOR NOT
INVESTING NO. OF INVESTORS
not aware 3
high risk 4
not any specific reason 3
INTERPRETATION
Out of 10 investors who don’t invest in mutual funds 4 of them consider MF as

risky mode for investment, other 3 are not aware about MF and rest 3 have no specific
reason for not investing in MF.
j) AWARENESS ABOUT Mf and its

operations
AWARNESS ABOT MF NO. OF INVESTORS

Bank AMC 29
Television/newspaper
advertisement 35
Peer group 15
MF advisor 61
INTERPRETATION
Out of 140 respondents maximum of investors i.e.43% were made aware about
MF through their financial advisors. Rest 25% came to know about MF through TV
and newspaper advertisement and 20% through bank AMC.
k) TIME PERIOD from now INVESTING IN

MUTUAL FUNDS
FOR HOW MANY YEARS

INVESTING IN MF NO. OF INVESTORS
less than 6 months 39
last 1 year 36
last 2 year 36
more than 2 years 29
INTERPRETATION
Out of 140 respondents it is 28% of investors who have invested in MF since

last 6 months, rest 25% investors are already in MF since last 2 or 1 years and there are
only 17% investors who are in MF for more than 2 years.
L) INVESTORS OBJECCTIVE BEHIND

INVESTING IN MUTUAL FUNDS
NO. OF
OBJECTIVE FOR INVESTMENT INVESTORS
only retirement 86
retirement + future commitments 97
future commitments 113
regular income 65
regular income + retirement + future 84
commitments
regular income + future commitments 73
INTERPRETATION
Out of 140 investors maximum no. of investors invest in MF to fulfill their
future commitments i.e. child’s education and child’s marriage, after which
investors invest in order to fulfill their needs for both future commitments and their
secured retirement period, while there are still investors who invest for safe
retirement period, some invest for future commitments as well as safe retirement
period as well as source of regular income, while there are very few investors who
invest only for regular income
M) PREFRENCE OF AMC FOR

INVESTMENTS IN MF
NO. OF
INVESTOR
AMC S
UTI 1
SBI 73
reliance 21
HDFC 15
TATA 7
sundaram 8
ICICI 13
others 2
INTERPRETATION
Out of 35 AMC under NJ India in Ajmer branch maximum no. of investor
prefer SBI as their preference for investments as out of 140 investors 53%
investors invest in SBI’s fund, after that investor prefer reliance and HDFC and
ICICI
n) REASON FOR INVESTING IN A

PARTICULAR amc
REASON NO. OF INVESTORS
Brand 20
company product 28
advisors
recommendation 64
market trend 28
INTERPRETATION
From the graph it is seen that out of 140 investors 64 of them that is 46% of
investors select that AMC which their advisor recommend them rest either see the
market trend or company product
o) MODE OF INVESTMENT PREFERRED

BY INVESTOR
NO. OF
MODE OF INVESTOR
INVESTMENT S
lump sump 51
SIP 89
INTERPRETATION
Most of the investors prefer to invest in SIP mode which constitute of 64%
while only 36% investors prefer to invest in a lump sum mode.
p) OPTION FOR GETTING RETURNS
PREFERRED BY INVESTORS
OPTION PREFERED NO. OF INVESTORS

growth 73
dividend reinvest 24
dividend-payout 38
INTERPRETATION
Out of 140 investors 73 of them i.e.53% of investors prefer to get growth option
while rest of them i.e. 27% prefer dividend payout and remaining prefer dividend
reinvest.
q) TENURE PREFERRED BY INVESTORS

FOR INVESTMENT
TENURE PREFERED NO. OF INVESTORS

short term 40
medium term 47
long term 53
INTERPRETATION
Out of 140 people 53 people prefer to invest for long term and rest 33% prefer
for medium term and 28% prefer to invest for short duration.
r) PREFERE PORTFOLIO FOR
INVESTMENT BY INVESTORS
PREFERRED
PORTFOLIO NO. OF INVESTORS
DEBT 24
EQUITY 47
BALANCED 69
INTERPRETATION
Out of 140 investors 49% investors prefer to invest in balanced portfolio, 33%
prefer equity and remaining 17% prefer debt funds.
s) INVESTORS PREFERENCE FOR

SECTORAL FUNDS
PREFRENCE NO. OF
FOR SECTORAL INVESTOR
FUND S
No 123
Yes 17
INTERPRETATION
72% of investors don’t prefer to invest in sectoral funds while only 28% of
investors prefer sectoral funds.
t) INVESTORS REACTION IF MARKET

CRASHES
INVESTORS REACTION NO. OF

ON MARKET CRASH INVESTORS
Withdraw money 46
Invest more money 23
Take advisors advice 52
wait for market to recover 19
INERPRETATION
If market crash out of 140 investors maximum of them i.e.37% will take their
financial advisors advice, 33% of investors will withdraw their money, 16% will still
invest in such situation and rest investors will wait for market to recover.
FINDINGS AND CONCLUSIONS
• Investors who invested in NJ Ajmer branch are maximum in age group of 30-40
and least in age group of above 50.
• According to educational qualification maximum investors in NJ are graduate
and very few of them are undergraduate
• According to occupation maximum no. of investors are in private job and very
few of them are others i.e. either students or house wives.
• According to yearly family income of investors majority of investors are in
income group of 2lakh-3lakh and very few of investors are in income group of
60000-1lakh
• According to %age of income which investors invest maximum no. of investors
invest 5-10% of their income while very few of them invest 20% and more of
their income
• When investors invest maximum of them prefer to have good returns on their
investments.
• Out of 150 respondents taken into consideration of NJ India 140 of them invest
in Mutual Funds
• Respondents who don’t invest in mutual fund consider it risky or are not aware
about it.
• Investors who invest in mutual funds maximum of them got information about
mutual fund through their advisors and very few of them came to know about
mutual funds through their friends.
• Maximum no. of Investors who are associated with mutual funds are investing
in MF since last 6 months and very few of them are investing since last 2 years
or more.
• In preference for AMC investors prefer SBI as most preferred and least
preferred AMC are kotak, shara and others.
• Reason behind preferring a particular AMC given by maximum investors is that
their advisors advice for that particular AMC while very few of investors
consider a particular AMC due to its brand name.
• According to mode of investment majority of investors prefer to invest
systematically through SIP while very few prefer to invest as a lump sum.
• In preference to get a return on their investment majority of investors prefer to
choose growth option for their returns while very few of them prefer dividend
reinvest.
• According to tenure for which investors prefer to invest in a particular fund
maximum investor prefer to invest for long term i.e. for more than 3 years and
very few of investors prefer to invest for short duration.
• According to investment portfolio maximum of investors prefer to have

balanced portfolio and very few prefer debt funds.
• For a investment option in sectoral funds maximum of investors don’t prefer to
invest in sectoral funds
• When there is a market crash situation majority of investors prefer to take their
financial advisors advice. And very few of investors prefer to wait for market to
recover
• According to investors objective for investment maximum no. of investors
prefer to invest for their future commitments of life i.e. child’s marriage and
child’s education while very few consider investments as mode of getting
regular income.
Conclusion
Running a successful Mutual Fund requires complete understanding of the
peculiarities of the Indian Stock Market and also the psyche of the small investors.
This study has made an attempt to understand the financial behavior of Mutual Fund
investors in connection with the preferences of Brand (AMC), Products, Channels etc.
I observed that many of people 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
awareness although they have money to invest. As the awareness and 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 Ajmer 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, HDFC, 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 like
Principle, Sundaram, etc.
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.
Limitation
• Some of the persons were not so responsive.

• Possibility of error in data collection because many of investors may have not given
actual answers of my questionnaire
• Sample size is limited to 150 visitors of N J India invest Ajmer branch out of these
only 140 had invested in Mutual Fund. The sample size may not adequately represent
the whole market.
• Some respondents were reluctant to divulge personal information
which can affect the validity of all responses.
• The research is confined to a certain part of Ajmer
Suggestions and Recommendations
• The most vital problem spotted is of ignorance. Investors should be

made aware of the benefits. Nobody will invest until and unless he is fully
convinced. Investors should be made to realize that ignorance is no longer bliss
and what they are losing by not investing.
• Mutual funds offer a lot of benefit which no other single option could
offer. But most of the people are not even aware of what actually a mutual fund is?
They only see it as just another investment option. So the advisors should try to
change their mindsets. The advisors should target for more and more young
investors. Young investors as well as persons at the height of their career would
like to go for advisors due to lack of expertise and time.
• Mutual Fund Company needs to give the training of the Individual

Financial Advisors about the Fund/Scheme and its objective, because they are the
main source to influence the investors.
• Before making any investment Financial Advisors should first enquire

about the risk tolerance of the investors/customers, their need and time (how long
they want to invest). By considering these three things they can take the customers
into consideration.
• Younger people under 35 age group will be a key new customer group
into the future, so making greater efforts with younger customers who show some
interest in investing should pay off.
• Customers with graduate level education are easier to sell to and there is
a large untapped market there. To succeed however, advisors must provide sound
advice and high quality.
• Systematic Investment Plan (SIP) is one the innovative products

launched by Assets Management companies very recently in the industry. SIP is
easy for monthly salaried person as it provides the facility of do the investment in
EMI. Though most of the prospects and potential investors are not aware about the
SIP. There is a large scope for the companies to tap the salaried persons.
BIBLIOGRAPHY
• NEWS PAPERS
• OUTLOOK MONEY
• TELEVISION CHANNEL (CNBC AAWAJ)
• MUTUAL FUND HAND BOOK
• FACT SHEET AND STATEMENT
• WWW.MONEYCONTROL.COM
• WWW.AMFIINDIA.COM
• WWW.ONLINERESEARCHONLINE.COM
• WWW. MUTUALFUNDSINDIA.COM
Questionnaire
1. Name----------
2. Age group
a) 25-35 b) 35-45 c) 45-55 d) Above 55
3. Occupation
a) Business b) Private Job c) Government Job d) student
4. Education qualification
a) Graduate b) post graduate and above c) under graduate
5. Income level (yearly)
a) 60,000 – 1, 00,000 b) 2, 00,000 – 3, 00,000 c) 1, 00,000 – 2, 00,000
d) Above 3, 00,000
6. What percentage of your income do you invest?
a) 5% to 10% b) 10% to 20% c) 20% and above
7. Which is your mode of investment?
a) Bank b) FD c) stock market d) mutual funds
e) Real estate f) RD g) insurance
8. Which factor you see while investing in that mode?
a) Security b) trust c) good returns d) other
9. Do you prefer to invest in Mutual funds?
a) Yes b) no
If no
10. Why you have not invested in mutual fund?
a) Not aware b) high risk c) not any specific reasons
If yes
11. From where did you get awareness about MF?
a) News paper/TV advertisement b) peer group c)MF advisor
d) Through bank of that AMC
12. From how many years you are investing in MF?
a) Less than 6 months b) From last 1 yr c) Last 2 yr
d) More than 2 yr
13. While investing what are your investment objectives?
a) To receive regular income b) To plan for future commitment (child education,
marriage etc.) c) To have safe retirement period
14. In which AMC you invest?
a) Reliance b) SBI c) HDFC d) sundaram e) ICICI
f) UTI g) others
15. What affects your decision while selecting AMC for investment?
a) Brand name b) company product c) advisors recommendation
d) Market trend
16. What is your mode of investment?
a) One time investment (lump sum) b) SIP
17. What is your preferred portfolio of investment?
a) Equity b) Debt c) Balanced
18. What tenure of investments do you prefer?
a) Short term (up to 1 year) b) Medium term (1 to 3 years)
c) Long term (above 3 years)
19. What is your preferred option for getting returns?
a) Growth b) dividend reinvests c) dividend payout
20. Do you prefer to invest in sectoral funds?
a) Yes b) no
21. How will you react if market goes down?
a) Take advisors advice b) withdraw c) will wait for market to recover
d) Invest
GLOSSARY
Asset Allocation
Diversifying investments in different assets such as stocks, bonds, real estate, and cash in
order to optimize risk.
Fund Manager
The individual responsible for making portfolio decision for a mutual fund, in line with
fund’s objective.
Fund Offer Document
Document with investment objectives, risk factors, expenses summary, how to invest etc.
Dividend
Profits given to the investor from time to time.
Growth
Profits ploughed back into scheme. This causes the NAV to rise.
NAV
Market value of assets of scheme minus its liabilities.
Per unit NAV = Net Asset Value
No. of Units Outstanding on Valuation date
Entry Load/Front-End Load (0-2.25%)

The commission charged at the time of buying the fund.
To cover costs for selling, processing
Exit Load/Back- End Load (0.25-2.25%)
The commission or charge paid when an investor exits from a mutual fund. Imposed to
discourage withdrawals
May reduce to zero as holding period increases.
Sale Price/ Offer Price
Price you pay to invest in a scheme. May include a sales load. (In this case, sale price is
higher than NAV)
Re-Purchase Price/ Bid Price

Price at which close-ended scheme repurchases its units
Redemption Price
Price at which open-ended scheme sales its units.
MUTUAL FUND IN NEWS SINCE JUNE 1ST
• Fidelity MF announces merger of two of its schemes
• Reliance MF first to cross Rs 1lakh average AUM in MAY
• Equity funds gain 31% in May; best in 17 years
• MF industry’s assets zoom, cross 6 lakh crores mark; an all time high
• The combined average assets under management of mutual funds crossed the Rs 6
trillion-mark (Rs 6 lakh crores) in May
• Average AUM of 34 out of 35 mutual funds rose 16% to Rs 6, 37,609 crores in May.
• Kotak Mahindra MF ties up with BoB
• Corporate, banks and foreign institutional investors collectively control more than
half the assets of Indian mutual fund industry, data compiled by the Association of
Mutual Funds in India (AMFI) show
• After launching an infrastructure fund in collaboration with Macquaire and IFC, State
Bank of India is in the process of setting up 'several' other funds to cash in on the
area, which is gaining importance as an alternate asset class
• Shinsei to enter AMC space in India
• Baroda Pioneer AMC on Wednesday launched Baroda Pioneer Treasury Advantage
Fund, an open-ended debt fund, which aims to provide optimal returns and liquidity
by investing in a portfolio comprising of debt securities and money market
instruments.
• Buoyed by the pickup in insurance venture with Daiichi, Union Bank of India will
soon foray into mutual funds business by setting up an asset management company
along with its Belgium partner-KBC Group.
• The capital market regulator, the Securities and Exchange Board of India (SEBI) will
shortly revise its rules to introduce variable entry loads for mutual funds (MFs) and
make disclosure of commissions mandatory for fund houses.
• Birla Sun Life Mutual fund (BSLMF) on Tuesday launched iSIP or internet based
systematic investment plan, a mode of transaction facility that will enable investors to
start their SIP investments online
• The government is set to exempt an annual investment of Rs 50,000 or less by
investors in MFs from the requirement of submitting details of their PAN at the time
of investment
• Union Bank of India would make a foray into the mutual fund business by December,
a top bank official said Union Bank of India would make a foray into the mutual fund
business by December, a top bank official said
• SEBI removes entry load on MF schemes
• There may be no signs of the monsoon as yet, but it is raining dividends in the mutual
fund (MF) arena. And investors are really pleased with it.
• SEBI's move to ban entry fees for investments into MFs will lead to a jump in long-
term inflows
• Birla Sun Life Mutual Fund has declared 50 per cent dividend in the Birla Sun Life
Basic Industries Fund-dividend option.
• The new regulations will hurt MF distributors badly, and to some extent, the industry
too, says expert.
NEW RULES OF SEBI REGARDING MUTUAL

FUND
• The government is set to exempt an annual investment of Rs 50,000 or less by
investors in MFs from the requirement of submitting details of their PAN at the time
of investment
• SEBI removes entry load on MF schemes

Customers Buying Pattern of Mutual Funds

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Customers Buying Pattern of Mutual Funds

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CUSTOMER’S PERCEPTION AND

THEIR BUYING PATTERN OF

APROVAL FROM GUIDE

I hereby declare that this Project Report entitled “CUSTOMER PERCEPTION

2. Company Profile and History………………………………………..25

5. Analysis and Interpretations………………………………………...40

1. Concept of Mutual Funds……………………………………………………..09

It is possible to balance the time and cost required to manage investments by

LEGAL STRUCTURE AND REGULATORY BODY

• ASSEST MANAGEMENT COMPANY(AMC)

REGULATORY REQUIRMENT OF TRUSTEE

OBLIGATION OF THE TRUSTEES

ASSEST MANAGEMENT COMPANY (AMC)

REGULATORY REQUITREMENTS OF AMC

• An AMC cannot be an AMC or trustee of another mutual fund.

• At least 50% of the members of an AMC have to be independent.

It shall issue or publish offer document of a scheme, key information memorandum,

1. Registrars and Transfer Agents

4. Depository Participants (DP)

6. Legal Advisor and Auditor

REGISTRARS & TRANSFER AGENTS

DEPOSITORY PARTICIPANT (DP)

LEGAL ADVISORS AND AUDITORS

REGULATORY JURISDICTION OF RBI over Mutual Funds

GROWTH OF ASSET UNDER MANAGEMENT OF MUTUAL FUNDS

First Phase – 1964-87

Second Phase – 1987-1993 (Entry of Public Sector Funds)

Third Phase – 1993-2003 (Entry of Private Sector Funds)

SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and

Fourth Phase – since February 2003

CATEGORIES OF MUTUAL FUND:

CLOSE ENDED SCHEME

MONEY MARKET FUNDS

INDUSTRY SPECIFIC SCHEMES

It can either be done by maintaining an investment portfolio that replicates the

Mutual funds in order to cater to a range of investors have various investment

DIVIDEND REINVESTMENT PLAN

SYSTEMATIC INVESTMENT PLAN (SIP)

SYSTEMATIC WITHDRAWAL PLAN

SYSTEMATIC TRANSFER PLAN

COMPANY PROFILE AND HISTORY

NJ believes and practice successful wealth creation for customers, SUCCESSFUL

NJ believes that success of a company lies in customer satisfaction.

Mission and Vision

• Total customer satisfaction

NJ Wealth Advisors Pvt. Ltd. established as a distinct entity, it seeks to offer

This sporadic growth in terms of need of performers in financial advisory

Range of products and services offered

The key members of the management are:

Key Sales Team:

Key Executive Team :

Service is the key to unlocking customer

ALL BANKS AND OTHER FINANCIAL INSTITUTIONS-

S.W.O.T. Analysis of NJ INDIA INVEST

• Money power, which makes them ignorant about gestation period.

2. To know the Preferences for the portfolios.

3. To find out the most preferred channel.

4. To find out preferred option for getting returns.

The sample size of my project is limited to 150 people only. Out of

a)AGE DISTRIBUTION OF INVESTORS OF

OCCUPATION NO.OF INVESTORS

d)YEARLY FAMILY INCOME OF