A

RESEARCH PROJECT
ON

“INVESTOR’S PERCEPTION TOWARDS

MUTUAL FUNDS
SUBMITTED TO

KURUKSHETRA UNIVERSITY, KURKSHETRA

In the partial fulfillment of the degree of

MASTER OF BUSINESS ADMINISTRATION

(2007-2009)

Under the Guidance of Submitted By:

Ms. Pooja Bansal Naveen kansal
MBA Faculty MBA (FINAL)
Roll
No.______

sSarswati Institute of Management &Technology Kaithal

Kurukshetra University, Kuruksetra

To whomsoever it may concern

1
This is to certify that the Research Project of MBA entitled , “Investor’s Perception
Towards Mutual Funds ”, done by Mr. Naveen Kansal, Roll No. 107031 is a
bonafied work carried out by her under my guidance. The matter embodied in this
project work has not been submitted in our college earlier for award of any degree or
diploma to the best of my knowledge and belief.

Name & Signature

Faculty Guide

2
 ACKNOWLEDGEMENT

This piece of work not complete without giving thanks to all the people who are some
how associated with me in completing my project file.
Particular thanks must go to my project guide “Ms. Pooja Bansal” for her many
valuable insights & suggestions. I am indebted to them for making time available for
me to sort out things. Whenever I needed their guidance, though they were always
quite busy. Their encouragement provided me the enthusiasm to work hard.

NAVEEN KANSAL

3
 DECLARATION

I, Naveen Kansal, hereby declare that the Research Project entitled “INVESTOR’S
PERCEPTION TOWARDS MUTUAL FUNDS” is assigned to me by Ms. Pooja
Bansal Faculty MBA, (SIMT), Teek for partial fulfillment of the MBA degree from
Kurukshetra University, Kurukshetra. It is an original work done by me and the
information provided in the study is authentic to the best of my knowledge.

This study has not been submitted to any other institute or university for the award of
any other degree.

NAVEEN KANSAL

4
 CONTENTS
Ch. No. Particulars Page No.

Ch-1

1.1 Introduction to the topic (01-12)

1.2 Company’s profile (12-27)

Ch-2 Review of Literature (28-30)

Ch-3 Scope of the study (31-32)

Ch-4 Objectives of the study (33-34)
Ch-5 Conceptualization (35-38)

Ch-6 Research Methodology (39-41)

6.1 Research Design

6.2 Sampling Design
6.3 Data Collection

Ch-7 Data Analysis and Interpretation (42-54)

Ch-8 Findings & Suggestions (55-57)

Ch-9 Limitation of the Study (58-59)

Ch-10 Conclusion (60-61)

Annexure (62-63)
 Bibliography/ References

 Questionnaire (64-65s)

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INTRODUCTION

6
 INTRODUCTION

These days you are hearing more and more about mutual funds as a means of
investment. If you are like most people, you probably have most of your money in a
bank savings account and your biggest investment may be your home. Apart from
that, investing is probably something you simply do not have the time or knowledge
to get involved in. You are not the only one. This is why investing through mutual
funds has become such a popular way of investing.

WHAT IS A MUTUAL FUND?

Like most developed and developing countries the mutual fund cult has been catching
on in India. There are various reasons for this. Mutual funds make it easy and less
costly for investors to satisfy their need for capital growth, income and/or income
preservation.

Understanding Mutual funds is easy as it's such a simple concept: a mutual fund is a
company that pools the money of many investors -- its shareholders -- to invest in a
variety of different securities. Investments may be in stocks, bonds, money market
securities or some combination of these. Those securities are professionally managed
on behalf of the shareholders, and each investor holds a pro rata share of the portfolio
-- entitled to any profits when the securities are sold, but subject to any losses in value
as well.
For the individual investor, mutual funds provide the benefit of having someone else
manage your investments and diversify your money over many different securities
that may not be available or affordable to you otherwise. Today, minimum investment
requirements on many funds are low enough that even the smallest investor can get
started in mutual funds. A mutual fund, by its very nature, is diversified -- its assets
are invested in many different securities. Beyond that, there are many different types
of mutual funds with different objectives and levels of growth potential, furthering
your chances to diversify.

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MUTUAL FUND OPERATION FLOW CHART

It is an ideal tool for people who want to invest but don't want to be bothered with
deciphering the numbers and deciding whether the stock is a good buy or not. A
mutual fund manager proceeds to buy a number of stocks from various markets and
industries. Depending on the amount you invest, you own part of the overall fund.
The beauty of mutual funds is that anyone with an invest able surplus of a few
hundred rupees can invest and reap returns as high as those provided by the equity
markets or have a steady and comparatively secure investment as offered by debt
instruments.

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Origin of Mutual Fund Industry:
The origin of mutual fund industry in India is with the introduction of the concept of
mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated
from the year 1987 when non-UTI players entered the industry.

In the past decade, Indian mutual fund industry had seen a dramatic improvement,
both quality wise as well as quantity wise. Before, the monopoly of the market had
seen an ending phase; the Assets under Management (AUM) were Rs. 67bn. The
private sector entry to the fund family rose the AUM to Rs. 470 bn in March 1993 and
till April 2004, it reached the height of 1,540 bn.

Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it
is less than the deposits of SBI alone, constitute less than 11% of the total deposits
held by the Indian banking industry.The main reason of its poor growth is that the
mutual fund industry in India is new in the country. Large sections of Indian investors
are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all
mutual fund companies, to market the product correctly abreast of selling.
The end of year 2004 marks 40 years of existence of mutual funds in this country. The
ride through these 40 years is not been smooth. Investor opinion is still divided. The
mutual fund industry in India started in 1964 with the formation of the Unit Trust of
India. The history of mutual funds in India can be broadly divided into four distinct
phases.

First Phase- 1964-87

The Unit Trust of India (UTI) was established on 1963 by an act of parliament. It was
set up by the Reserve Bank of India and functioned under the Regulatory and
Administrative control of the Reserve Bank of India (RBI). In 1978 UTI was delinked
from the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in the place of RBI. The first scheme launched
by the UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6700 cr. of assets
under its management.

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Second Phase- 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of the non-UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporations of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the non-UTI Mutual Fund
established in June1987, followed by Canbank Mutual Fund (December 1987), Bank
of India (June 1990), Bank of Baroda Mutual Fund (October 1992). 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 its assets of Rs. 47004cr.

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

With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the Indian investors a wider choice of fund families. 1993 was
also the year in which the first Mutual Fund Regulation came into being, under which
all mutual funds, except UTI were registered and governed. The erstwhile Kothari
Pioneer (now merged with Franklin Templeton) was the first private sector mutual
fund registered in July 1993.
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) Regulations1996.
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. The Unit Trust of India with Rs.44,541 crores of assets
under management was way ahead of other mutual funds.

Fourth Phase - since February 2003This 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

10
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 September, 2004, there were 29 funds,
which manage assets of Rs.153108 crores under 421 schemes.

GROWTH IN ASSETS MANAGEMENT

A mutual fund is a pool of money that is professionally managed for the benefit of all
shareholders. As an investor in a mutual fund, you own a portion of the fund, sharing
in any increases or decreases in the value of the fund. A mutual fund may focus on
stocks, bonds, cash, or a combination of these asset classes.

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TYPES OF MUTUAL FUNDS

BY STRUCTURE

1. OPEN-ENDED SCHEMES

Open-ended schemes do not have a fixed maturity period. Investors can buy or sell
units at NAV-related prices from and to the mutual fund on any business day. These
schemes have unlimited capitalization, open-ended schemes do not have a fixed
maturity, there is no cap on the amount you can buy from the fund and the unit capital
can keep growing. These funds are not generally listed on any exchange. Open-ended
schemes are preferred for their liquidity. Such funds can issue and redeem units any
time during the life of a scheme. Hence, unit capital of open-ended funds can fluctuate
on a daily basis. EG: SBI Bluechip Fund-Growth, Reliance Vision Fund

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CLOSE ENDED SCHEMES

Close-ended schemes have fixed maturity periods (generally ranging from 3 to 15

years)... Investors can buy into these funds during the period when these funds are
open in the initial issue. These schemes are launched with an initial public offer (IPO)
with a stated maturity period after which the units are fully redeemed at NAV linked
prices. In the interim, investors can buy or sell units on the stock exchanges where
they are listed. Unlike open-ended schemes, the unit capital in closed-ended schemes
usually remains unchanged. After an initial closed period, the scheme may offer direct
repurchase facility to the investors. The market price of the units could vary from the
NAV of the scheme due to demand and supply factors, investors’ expectations and
other market factors. EG: Franklin India Tax shield 97 , & 98, Benchmark Split
Capital Fund Class A.

INTERVAL FUNDS

These funds combine the features of both open–ended and close-ended funds wherein
the fund is close-ended for the first couple of years and open-ended thereafter. Some
funds allow fresh subscriptions and redemption at fixed times every year (say every
six months) in order to reduce the administrative aspects of daily entry or exit, yet
providing reasonable liquidity.

CLASSIFICATION ACCORDING TO INVESTMENT

OBJECTIVES

Mutual funds can be further classified based on their specific investment objective
such as growth of capital, safety of principal, current income or tax-exempt income.

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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 their corpus in equities. It has been
proven that returns from stocks, have outperformed most other kind of investments
held over the long term. Growth schemes are ideal for investors having a long-term
outlook seeking growth over a period of time.

INCOME FUNDS

The aim of 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 balanced funds is to provide both growth and regular income. Such
schemes periodically distribute a part of their earning 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 .For eg : DSP ML Balanced Fund , Kotak Balanced
Fund

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 safer short-term instruments
such as treasury bills, certificates of deposit, commercial paper and inter-bank call
money. Returns on these schemes may fluctuate depending upon the interest rates
prevailing in the market. These are ideal for Corporate and individual investors as a
means to park their surplus funds for short periods. Eg: DSP ML Lig(G), Llic MF
Liquid.

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OTHER SCHEMES:

TAX SAVING SCHEMES

These schemes offer tax rebates to the investors under specific provisions of the
Indian Income Tax laws as the Government offers tax incentives for investment in
specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and
Pension Schemes are allowed as deduction u/s 80 C of the Income Tax Act, 1961. In a
major break through Section 88 under which the ELSS scheme qualified for rebate,
with the maximum amount to be invested in theses schemes was Rs 10000 has been
replaced by Section 80 C, which states that investment up to Rs 1 lakh in ELSS
Schemes by individuals and HUF’s are eligible for deduction under Section 80 C of
the Income tax Act, 1961. Investment is subject to a lock-in period of three years from
the date of allotment. EG :Prud ential ICICI Tax Plan , HDFC Tax Saver.

SPECIAL SCHEMES

•INDUSTRY / SECTORAL SPECIFIC SCHEMES

Sector mutual funds are those mutual funds that restrict their investments to a
particular segment or sector of the economy. These funds concentrate on one industry
such as infrastructure, heath care, utilities, pharmaceuticals etc. The idea is to allow
investors to place bets on specific industries or sectors, which have strong growth
potential. The investment of these funds is limited to specific industries like InfoTech,
FMCG, and Pharmaceuticals etc. For eg:

•INDEX SCHEMES

Index Funds attempt to replicate the performance of a particular index such as the
BSE Sensex or the NSE 50.

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WHY INVEST IN MUTUAL FUNDS

Investing in mutual has various benefits which makes it an ideal investment avenue.
Following are some of the primary benefits.

1. PROFESSIONAL INVESTMENT MANAGEMENT

One of the primary benefits of mutual funds is that an investor has access to
professional management. The managers have real-time access to crucial market
information and are able to execute trades on the largest and most cost-effective scale.
When you buy a mutual fund, the primary asset you are buying is the manager, who
will be controlling which assets are chosen to meet the funds' stated investment
objectives.

2. DIVERSIFICATION

The cliché, "don't put all your eggs in one basket" really applies to the concept of
intelligent investing. A crucial element in investing is asset allocation. It plays a very
big part in the success of any portfolio. However, small investors do not have enough
money to properly allocate their assets. By pooling your funds with others, you can
quickly benefit from greater diversification Mutual funds invest in a broad range of
securities. This limits investment risk by reducing the effect of a possible decline in
the value of any one security.

3. AFFORDABILITY

A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon
the investment objective of the scheme. An investor can buy in to a portfolio of
equities, which would otherwise be extremely expensive. Each unit holder thus gets
an exposure to such portfolios with an investment as modest as Rs.500/-. This amount
today would get you less than quarter of an Infosys share! Thus it would be affordable
for an investor to build a portfolio of investments through a mutual fund rather than
investing directly in the stock market...

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 4. CONVENIENCE AND FLEXIBILITY

Investing in mutual funds has its own convenience. While you own just one security
rather than many, you still enjoy the benefits of a diversified portfolio and a wide
range of services. The big advantage is that you can move your funds easily from one
fund to another within a mutual fund family. This allows you to easily rebalance your
portfolio to respond to significant fund management or economic changes.

5. LIQUIDITY

With open-end funds, you can redeem all or part of your investment any time you
wish and receive the current value of the shares. Funds are more liquid than most
investments in shares, deposits and bonds. Moreover, the process is standardized,
making it quick and efficient so that you can get your cash in hand as soon as
possible.

6. TRANSPARENCY

Regulations for mutual funds have made the industry very transparent. You can track
the investments that have been made on you behalf and the specific investments made
by the mutual fund scheme to see where your money is going. In addition to this, you
get regular information on the value of your investment. As a unit holder, you are
provided with regular updates, for example daily NAVs, as well as information on the
fund's holdings and the fund manager's strategy.

7. VARIETY

There is no shortage of variety when investing in mutual funds. You can find a mutual
fund that matches just about any investing strategy you select. There are funds that
focus on blue-chip stocks, technology stocks, bonds or a mix of stocks and bonds. The
greatest challenge can be sorting through the variety and picking the best for you.

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INDUSTRY
PROFILE

18
 List of Asset Management Companies
Deutsche Bank has compiled a shortlist of top-performing funds from India’s leading
fund houses. These have been chosen through a rigorous selection procedure and
constantly undergo a comprehensive review. They cover all the fund categories and
cater to varied investor needs and risk profile. Choose from the following fund
houses:

 UTI Asset Management Pvt Ltd

 ABN Amro Asset Management Pvt Ltd

 AIG GIG Asset Management Pvt Ltd

 Benchmark Asset Management Pvt Ltd

 Birla Sun Life Asset Management Pvt Ltd

 Deutsche Asset Management Pvt Ltd

 DSP Merrill Lynch Asset Management Pvt Ltd

 Fidelity Asset Management Pvt Ltd

 Franklin Templeton Asset Management Pvt Ltd

 HDFC Asset Management Pvt Ltd

 HSBC Asset Management Pvt Ltd

 ICICI Prudential Asset Management Pvt Ltd

 ING Asset Management Pvt Ltd

 JP Morgan Asset Management Pvt Ltd

 Kotak Mahindra Asset Management Pvt Ltd

 Optimix Asset Management Pvt Ltd

 Principal PNB Asset Management Pvt Ltd

 Reliance Asset Management Pvt Ltd

 SBI Asset Management Pvt Ltd

 Standard Chartered Asset Management Pvt Ltd

 Tata Asset Management Pvt Ltd

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The setting up of the Unit Trust of India (UTI) in 1963 heralded the birth of the Indian
mutual fund industry. In 1964, UTI mutual fund launched its flagship scheme US-64
and went on to become a generic term for the mutual fund sector till the government
allowed public sector banks to start mutual funds in 1987.
.
Despite being the trendsetter in the segment, the UTI mutual fund could not sustain
the initial tempo and was on the verge of a collapse in 2001, before the government
bailed it out and restructured the fund. After the restructuring, the fund has somewhat
redeemed its credibility through professional management and a booming market
.
The fund's sponsors are public sector financial giants like Life Insurance Corporation,
SBI, Bank of Baroda and Punjab National Bank. The sponsors hold equal stakes in the
asset management company, UTI Asset Management Company Private Limited. UTI
Mutual Fund remains the largest fund in the country with assets of over Rs.35,028
crore under management as of Aug 2006.

In 2003, UTI was divided into two parts, UTI Mutual Fund (UTI MF) and a specified
undertaking of UTI or UTI-I. UTI MF was brought under SEBI regulations while
UTI-I was kept under direct government control since its schemes offered guaranteed
returns.
Here is a list of mutual funds of UTI which includes Liquid Funds, Income Funds,
Asset Allocation Fund, Index Funds, Equity Funds and Balanced Fund.

Scheme Name NAV (Net Asset Value)

UTI - Mahila Unit Scheme (MUS) 30.9315

UTI - MIS-Growth 16.0007
UTI - MIS-Income 10.9914
UTI - Retirement Benefit Pension Fund 18.8868
UTI - Unit Linked Insurance Plan 14.1008
UTI Bond Fund-Growth (for rep. After 6 months- No Load) 25.1848
UTI Bond Fund-Income (for rep. Within 3 months) 11.1204
UTI C C BALANCED FUND 12.0433
UTI - Equity Fund-Growth Option 27.22
UTI - Equity Fund-Income Option 25.03
UTI - GROWTH & VALUE FUND-ANNUAL DIVIDEND 22.92
UTI - GROWTH & VALUE FUND-GROWTH 56.69
UTI - GROWTH & VALUE FUND-SEMI ANNUAL 16
DIVIDEND
UTI - INDEX SELECT FUND-Growth Option 28.28
UTI - INDEX SELECT FUND-Income Option 12.37

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UTI - INDIA ADVANTAGE EQUITY FUND-DIVIDEND 8.35
UTI - INDIA ADVANTAGE EQUITY FUND-GROWTH 8.36
UTI - Master Growth 93-Growth Option 32.74
UTI - Master Growth 93-Income Option 28.27
UTI - Master Index Fund-Growth Option 31.9737
UTI - Master Index Fund-Income Option 31.9736
UTI - Master Plus Unit Scheme-Growth Option 46.71
UTI - Master Plus Unit Scheme-Income Option 33.67
UTI - Master Value Fund-Growth Option 20.44
UTI - Master Value Fund-Income Option 11.72
UTI - MNC Fund (UGS 10000)-Growth Option 27.99
UTI - MNC Fund (UGS 10000)-Income Option 18.81
UTI - NIFTY Index Fund-Growth Option 20.2255
UTI - NIFTY Index Fund-Income Option 10.2985
UTI Banking Sector Fund-Growth Option 17.39
UTI Banking Sector Fund-Income Option 11.92
UTI Contra Fund-Growth-Growth Option 8
UTI Contra Fund-Income-Dividend Option 8
UTI Growth Sector Funds-UTI - GSF - Brand Value- 25.60
Growth Option
UTI Growth Sector Funds-UTI - GSF - Brand Value- 19.59
Income Option
UTI Energy Fund-Growth Option 6.79
UTI Energy Fund-Income Option 7.69
UTI Pharma & Healthcare Fund-Growth Option 18.15
UTI Pharma & Healthcare Fund-Income Option 14.84
UTI Services Industries Fund-Growth Option 28.72
UTI Services Industries Fund-Income Option 13.44
UTI Software Fund-Growth Option 17.12
UTI Software Fund-Income Option 14.43
UTI Infrastructure Fund-Growth Option 22.13
UTI Infrastructure Fund-Income Option 13.63
UTI Large Cap Fund-Growth Option 0
UTI Large Cap Fund-Income Option 0
UTI Leadership Equity Fund-Dividend-Dividend Option 8.94
UTI Leadership Equity Fund-Growth-Growth option 8.94
UTI Mid Cap Fund-Growth Option 12.95
UTI Mid Cap Fund-Income Option 10.94
UTI Opportunities Fund-Dividend Option 8.73
UTI Opportunities Fund-Growth Option 13.37
UTI PSU Fund-Growth Option 0
UTI PSU Fund-Income Option 0
UTI Spread Fund - Dividend Option 11.0175
UTI Spread Fund - Growth Option 12.7035
UTI Sunder 337.5253
UTI-Auto Sector Fund-Growth Option 10.91
UTI-Auto Sector Fund-Income Option 8.79
UTI-Dividend Yield Fund.-Growth 15.7
UTI-Dividend Yield Fund.-Income 9

21
 UTI - Variable Investment Scheme-Growth Option 12.1196
UTI - Variable Investment Scheme-Income Option 9.1202
UTI – Balanced Fund-Growth 46.34
UTI – Balanced Fund-Income 14.76
UTI- Liquid Fund-Short Term Plan-Growth 12.6451
UTI- Liquid Fund-Short Term Plan-Income 10.3943
UTI MMF-Daily Dividend 18.2317
UTI MMF-Growth 24.6315
UTI - ETSP-Growth Option 22.06
UTI - ETSP-Income Option 10.29
UTI - FLOATING RATE STP-DIVIDEND 1047.4926
UTI - FLOATING RATE STP-GROWTH 1430.243
UTI Wealth Builder Fund - Dividend Option 10.85
UTI Wealth Builder Fund - Growth Option 10.84
UTI - Master Equity Plan Unit Scheme 38

ICICI Bank is India's second-largest bank with total assets of about Rs. 344,658
crores as at March 31, 2007 and profit after tax of Rs. 3,110 crores for the year ended
March 31, 2007 (Rs. 2,540 crores for the year ended March 31, 2006). ICICI Bank
has a network of about 710 branches and 45 extension counters and over 3,271
ATMs. ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialised subsidiaries and affiliates in the areas of investment banking, life and non-
life insurance, venture capital and asset management. ICICI Bank set up its
international banking group in fiscal 2002 to cater to the cross border needs of clients
and leverage on its domestic banking strengths to offer products internationally. ICICI
Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches
in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Centre
and representative offices in the United States, United Arab Emirates, China, South
Africa and Bangladesh. UK subsidiary of ICICI Bank has established a branch in
Belgium. ICICI Bank is the most valuable bank in India in terms of market
capitalisation. (Source: Overview at www.icicibank.com).

22
Headquartered in London, Prudential plc is a leading international financial services
group, offering a significant portfolio of life insurance and fund management products
in the United Kingdom, the United States, Asia and continental Europe.
Prudential plc is a leading international financial services group providing retail
financial products and services and fund management to many millions of customers
worldwide. As a group Prudential plc has, as of 31 Dec 2007, £267 billion in assets
under management and more than 26,000 employees worldwide as of December 31,
2006.
In the United Kingdom Prudential is a leading life and pensions provider offering a
range of retail financial products. M&G is Prudential's UK & European Fund
Manager, with around £250 billion of funds under management (as of 31 December
2006). Jackson National Life, acquired by Prudential in 1986, is a leading provider of
long-term savings and retirement products to retail and institutional customers
throughout the United States.
In Asia, Prudential is the leading financial services group with an extensive network
of over 30 life insurance and 10 fund management operations spanning 13 diverse
markets.

SBI Asset Management Pvt Ltd

SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an
enviable track record in judicious investments and consistent wealth creation.

The fund traces its lineage to SBI - India’s largest banking enterprise. The
institution has grown immensely since its inception and today it is India's
largest bank, patronised by over 80% of the top corporate houses of the
country.

SBI Mutual Fund is a joint venture between the State Bank of India and
Société Générale Asset Management, one of the world’s leading fund
management companies that manages over US$ 500 Billion worldwide.In
twenty years of operation, the fund has launched 38 schemes and successfully
redeemed fifteen of them. In the process it has rewarded it’s investors handsomely

23
with consistently high returns. A total of over 4.6 million investors have reposed their
faith in the wealth generation expertise of the Mutual Fund.

Schemes of the Mutual fund have consistently outperformed benchmark

indices and have emerged as the preferred investment for millions of investors
and HNI’s. Today, the fund manages over Rs. 28500 crores of assets and has a
diverse profile of investors actively parking their investments across 36 active
schemes.

The fund serves this vast family of investors by reaching out to them through
network of over 130 points of acceptance, 28 investor service centers, 46
investor service desks and 56 district organisers.

SBI Mutual is the first bank-sponsored fund to launch an offshore fund – Resurgent
India Opportunities Fund . Growth through innovation and stable investment policies
is the SBI MF credo.The investment environment is becoming increasingly
complex. Innumerable parameters need to be factored in to generate a clear
understanding of market movement and performance in the near and long term
future.
At SBIMF, we devote considerable resources to gain, maintain and sustain our
profitable insights into market movements. We consistently push the envelope
to ensure our investors get the maximum benefits year after year.

24
 Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment
managers of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla
Group and the Sun Life Financial Services Inc. of Canada. The joint venture brings
together the Aditya Birla Group's experience in the Indian market and Sun Life's
global experience.

Since its inception in 1994, Birla Sun Life Mutual fund has emerged as one of India's
leading Mutual Funds managing assets of a large investor base. The fund offers a
range of investment options, which include diversified and sector specific equity
schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of
debt and treasury products and offshore funds.

BSLAMC follows a long-term, fundamental research based approach to investment.

The approach is to identify companies, which have excellent growth prospects and
strong fundamentals. The fundamentals include the quality of the company’s
management, sustainability of its business model and its competitive position,
amongst other factors. Birla Sun Life Asset Management Company has one of the
largest team of research analysts in the industry, dedicated to tracking down the best
companies to invest in.

Birla Sun Life AMC strives to provide transparent, ethical and research-based
investments and wealth management services.

25
Vision
To be the most trusted name in investment and wealth management, to be the
preferred employer in the industry and to be a catalyst for growth and excellence of
the asset management business in India.
Mission
• To consistently pursue investor's wealth optimization by:
• Achieving superior and consistent investment results.
• Creating a conducive environment to hone and retain talent.
• Providing customer delight.
• Institutionalizing system-approach in all aspects of functioning.
• Upholding highest standards of ethical values at all times.

Reliance Financial Group, Inc. (RFG, Inc.) is a company that is committed

to making positive contributions to the business and professional communities
and individuals we serve. Our company looks for long term relationships
where we assist company owners, executives, and employees in the pursuit of
opportunities that result in financial security.

RFG, Inc. is committed to helping protect our clients from unforeseen contingencies.
We assist executives, professionals, and individuals in achieving financial
independence, and preserving wealth for future generations by proper estate planning.

RFG, Inc., has assembled a experienced team of professionals who are committed to
understanding the needs of our clients. We then match these needs with appropriate
tax saving and financial strategies while providing the necessary education. We also
work with our clients' advisors as needed. Businesses and professionals need not be
placed in reactive positions where alternatives are few. We strive to put our clients in

26
situations where they are able to make proactive decisions rather than decisions by
default.
Reliance Financial Group, Inc. is a fee based registered investment advisory company
licensed in the state of North Carolina. The information presented herein is for
informational purposes only and does not constitute an offer to sell securities or
investment advisory services. Such an offer can only be made in North Carolina or
any state where an exemption from notification is currently available under the de
minimis exemption rule.
The investment advisor is an independent advisor and receives no compensation from
any corporations, brokerage houses, organizations or special interest groups by
making recommendations to purchase any of the investment products used. The
advisor is a fee-only advisor and receives no commissions for client trades.

Asset Management

RFG, Inc. works together with you through a five-step process that has proven
effective for many of our clients.

27
Step 1 We will review your risk profile and objectives to determine the rate of return
you need and the risk you can comfortably afford.

Step 2 We agree on your asset allocation policy. This policy is committed to writing
through an Investment Policy Statement that becomes a framework for long-term
investing. A recommended allocation is developed to guide the selection of asset
classes, according to percentage guidelines.

Step 3 We implement and monitor your portfolio to achieve diversification across

asset classes and within styles. This might involve some adjustments to your holdings,
which could be done on a tax-aware basis.

Step 4 Your portfolio is automatically rebalanced when needed to tactically adjust

for changes created by market valuations. This prevents over-exposure in any given
asset class, and maintains diversification across classes.

Step 5 This involves periodic strategic reviews of your results, compared to market
benchmarks and the goals you have set. These reviews also can consider whether any
changes have occurred in your profile or objectives that require a change in allocation
policy.

This 5-step process is a cycle that can adjust over time to changes, without over-
reacting to fads or temporary trends.

Tata Asset Management Pvt Ltd

Incorporated in 1994, Tata Asset Management (TAM) is one of the oldest fund houses
in India. Registered with and regulated by the Securities Exchange Board of India,
TAM manages an asset base of about Rs22,980.76 crore as on 31 March 2008, and
serves an investor base of over one million investors.

A leading player in the mutual fund arena, TAM offers a wide array of products for
institutional and individual investors at various life stages across the risk-reward
spectrum. The company offers investment products under three main categories for
every financial need and under varied market conditions:

• Equity funds

28
 • Balanced funds
• Debt funds

The core strength of TAM stems not only from its sound systems and processes but
also from the quality of its intellectual capital, which is made up of the best and
brightest minds. At the same time, the company provides a robust risk management
framework with in-built controls and balances.

Tata Asset Management Company has tied up with UK-based New Star Asset
Management to provide advisory services to the India Equity fund that will be raised
by New Star from retail investors in the UK.

The India dedicated equity fund will be launched in the UK in the second quarter of
this year. Tata AMC will put together a separate team to make investment decisions
with regard to this fund, which will seek foreign institutional investor (FII)
registration from the Securities and Exchange board of India (Sebi).

Details of the India Equity fund have not yet been submitted to the UK regulator,
Financial Services Authority (FSA), and will be announced in due course.

Last year, Tata AMC had entered into a tie-up with UK-based investment
management house Invesco for the Indo-Global Infrastructure fund, where the
Mumbai-based fund house would invest up to 65 per cent in to domestic equities, up
to 20 per cent in Invesco’s Asia Infrastructure fund and 10 per cent in Powershare
(Global Ex Asia) and the remaining in cash. The money had been raised from Indian
investors to invest in Invesco’s fund.

The London-headquartered AMC has assets under management (AUMs) of about

£24.9 billion on May 31, 2007 with around 45 per cent of these assets managed on
behalf of institutions.

29
AIG Investments

AIG Investments comprises a group of international companies which provide

investment advice and market asset management products and services to clients
around the world. AIG Investments is a worldwide leader in asset management, with
extensive capabilities in equity, fixed income, hedge funds, private equity, and real
estate.

AIG Investments manages nearly US $753 billion in assets, and employs more than
2,000 professionals in 45 offices around the world as of 31 December 2007.

Services and products are provided by one or more affiliates of American

International Group, Inc. (AIG)

The financial services described on this website are not intended for use by and
specifically are not directed to any person in any jurisdiction or country, including,
without limitation, the United States or any state therein, where the offering or use of
such services would be contrary to law or regulation or would obligate AIG
Investments to comply with any additional law, regulation, registration or similar
requirement within such jurisdiction or country. Accordingly, certain portions of this
website and any corresponding services are intended to be utilized only by persons for
whom AIG Investments may lawfully offer and provide such services. Services
provided to U.S. persons will be solely provided by U.S. members of AIG
Investments, and services provided to non-U.S. persons will be provided by non-U.S.
members of AIG Investments in the applicable jurisdictions. As a result, the
information contained on any portion of this website that describes any entity or
location of AIG Investments is intended, with respect to persons not resident in such
location, to describe the worldwide resources that may be utilized by members of AIG
Investments in providing services locally.

AIG Global Asset Management Company (India) Private Limited

30
AIG offers asset management services through AIG Investments, a group of
international companies which provide investment advice and market asset
management products and services to clients around the world. AIG Investments was
formed in 1996 by consolidating the investment divisions of various AIG
subsidiaries worldwide. In its short history, it has grown both organically and by
acquisition.
AIG Investments is headquartered in New York and has a total of 45 investment
offices operating in regional centers in North America, Europe, South America,
Africa and Asia and employing over 2,000 persons as of 31 December 2007.
Additionally, the extensive network and resources of AIG, which operates in 130
countries and jurisdictions, complement AIG Investments’ network.

AIG Investments offers the widest range of investment capabilities divided into five
major groups – Equity, Fixed Income, Real Estate, Private Equity, Hedge funds and
Other Alternate asset classes. It is also one of the largest asset management firms in
the world with nearly US $753 billion in assets as of 31 December 2007.

Our strengths lie in our globally integrated operations and investment teams, our
disciplined and established investment processes, and the knowledge and expertise of
our diverse group of employees.

With AIG as our parent company, we also enjoy the benefits of a premier insurance
and financial services organization with a distinguished history, renowned financial
leadership and extensive resources.

31
32
REVIEW OF
LITERATURE

33
REVIEW OF LITERATURE

 According to Dr. Sanjay J.Bhayani in 2006 on topic “A STUDY OF

AWARENESS LEVEL OF MUTUAL FUND & INVESTMENT
PREFERENCE OF INVESTORS” After globalization and reforms in
financial sector various financial instruments are available in money market.
Out of various options Mutual Fund is also one of the instruments. Since last
decade so many Indians as well as foreign companies have entered in the
business of mutual fund in the market there are so many schemes of mutual
fund available to investors & also give high returns to the investors. The
analysis identified three meaningful variables: Return, Services & Risk levels
which make the mutual fund most preferable option for investment. The study
found that services of mutual fund are excellent and due to this reason mutual
funds have become very popular among the investors.
 Jaspal Singh in 2004 on topic “GROWTH, PERFORMANCE AND
PROSPECTS OF MUTUAL FUNDS IN INDIA” The last Decade has seen
enormous expansion in the size of mutual fund industry in India. Especially,
the private sector has shown galloping growth. The present study was
undertaken to know the perception of small investors, who are the most
exploited lot in the Indian capital market. The study also examined, whether
the claims of mutual funds as the media for diversified portfolio of securities
so as to earn better return is justified or not by measuring the most preferred
mutual funds. Result predict that majority of investors preferred to invest in
mutual funds. As regards choice of a mutual fund for investment people are
moving away from UTI and prefer to invest in private sector mutual funds.

 Kulbhushan Chandel & OP Verma in 2005 on topic “MANAGING

MUTUAL FUND INVESTMENTS IN THE ERA OF CHANGE” The
present study is confined to evaluate the performance of mutual funds on the
basis of weekly returns compared with risk free security returns & BSE index.
The active involvement of mutual funds in economic development can be seen
by their dominant presence in the money and capital market. The study
predicts that portfolio managers done fairly a good job in generating positive

34
 returns. Thus overall good performance of sector specific fund is a good sign
of development in new era in capital market. So the future of mutual funds in
India is bright because it meets investors need perfectly.

 Syed Shahabuddin in 2007 on topic “MUTUAL FUNDS IN INDIA:

RETROSPECTIVE AND FUTURE” The MF industry in India began in
1963 with the formation of UTI. The indian mutual fund has seen the launch
of various new & innovative schemes over the last few years. Funds worth
Rs.1.4 trillion were raised through NFO’as against Rs. 705.83 bln in 2006-07.
MF are now among the top 4 investment options. Out of 321 million paid
workers 5.3 mln people have invested in MFs(1.65% of earning population).
Middle class income group invest more in MFs as compared to higher income
& low income group. Product differentiation and quality standards of mutual
funds are the key enablers of growth. Growth potential of mutual fund
industry is very high.

 K.D.Mehru in 2004 on topic “PROBLEMS OF MUTUAL FUNDS IN

INDIA” The main objective of the study was to examine and study the
problems of mutual funds in our country. The private sector mutual funds have
benefited the investors by providing them more options & better services. The
present state of mutual funds, their performance, profitability and decline of
NAV’s below issue prices have been causing concern to the investors. The
mutual funds have failed to provide safety, liquidity and returns on
investments to the small investors. The greater transparency, increased
innovations better services to the investors, liquidity & higher returns will
make mutual fund schemes more popular and investor friendly. Today mutual
fund industry is growing because it has analyzed these problems and provide
investors better services.

35
SCOPE OF THE
STUDY

36
 SCOPE OF THE STUDY

Mutual funds are such a wide area of research that no single study can cover different
related dimensions. Even primary surveys for studying the perceptions of investors
towards mutual funds time to time are not a regular feature in India, hence there is
much potential of research on a bigger scale covering wider area.
Further, a research can also be conducted for studying perceptions of institutional
investors towards mutual funds, the area which has been left out of the scope of the
present study.
Another important area for carrying out research is the need to develop a benchmark
for the purpose of evaluation of debt securities like different share indices are
available for performance evaluation of investments in equity shares. However, only
recently Securities Exchange Board of India and Association of Mutual Funds of
India (AMFI) jointly have evolved a committee to work in this area.

37
OBJECTIVES
OF THE
STUDY

38
OBJECTIVES OF THE STUDY

The project titled " INVESTOR’S PERCEPTION TOWARDS MUTUAL

FUNDS " is limited to explore the possibility of trapping the competitive market. The
Broad objective of the project is to make people aware about the different scheme and
benefits offered by the Mutual funds . Also to convince them about how Mutual
Funds out score other instruments as investment option . The main objectives of the
study is to:

• To study the perception of investor towards mutual funds.

• To study the various factors affecting the choice of investor.
• To study the reasons for investing in mutual funds

• To make People aware of Mutual Funds.

• To promote Mutual Funds.

• To study the behavior of market.

• To study the risk associated with Mutual funds.

• To analyze the yield & returns associated with Mutual funds.

39
CONCEPTUALISATION

40
41
 CONCEPTUALISATION

Consumer decision making process and level of involvement

Information Search
Internal and External

Alte
rnative
Evaluation
Few attributes, simple
decision rules, few
alternatives

Purchase

42
 Information Search

Internal Information External Information

Actively acquired Passive acquired

Actively acquired

Low
involvement
Past Personal learning
Search experience

Independent Personal Experiential Marketing

groups contacts information

43
sFACTOR AFFACTING THE PURCHASE DECISION

INITIATOR

INFLUENCER

BUYER

USER

44
 RESEARCH
METHODOLOGY

45
RESEARCH METHODLOGY
Research generally refers to search for knowledge. It is search for knowledge in
systematic and scientific manner for required information on particular topic.
According to the Clifford Woody, “Research comprises defining & redefining
problems, formulation hypothesis or suggested solution, collecting, organizing and
evaluating data, making deduction and reading conclusion and at last carefully tasting
the conclusion to determine whether they fit the formulation hypothesis”

Research Design
The research carried out in this project is Exploratory as well as descriptive in nature.
Exploratory Research is the one which is conducted to explore the horizons of
problems. For this project, it was done using the secondary data analysis.
Descriptive Research is conducted to define the characteristics of population. This
was doe using survey method. For getting the responses from respondents,
questionnaires were used.

Scope of study:
The scope of study is confined to urban area of Yamuna Nagar and Karnal. The study
covers all the general information regarding mutual funds industry, various schemes
offered and investor’s perception towards those schemes.

Research Instrument:
Primary Data:-
Primary Data has been collected through Questionnaire which gives us the relevant
information about the product to achieve the objectives of our market research.

Secondary Data:
The secondary data is data available on Internet, Magazine, Newspapers, and
Journals.

Sampling Plan:

46
Sampling Procedure:-
The sampling procedure for this project was Non Probability sampling.
Sampling Technique:-
Sampling Techniques used is the Judgment.
Sampling Unit:-
The sampling units chosen for the study is Individual.
Sample Size:-
The sample size is the 100 investors.

Research Instrument- Questionnaire

A Questionnaire is often the heart of a survey operation. If the heart is not properly
set up then the whole operation is bound to fail. Thus studying the main objective of
the questionnaire is important. There are two main objectives in designing a
questionnaire:

1. To maximize the proportion of subjects answering our questionnaire that

is, the response rate.
2. To obtain accurate relevant information for our survey.

Thus the most important parameters in questionnaire designing can be described as:

1. Question Content
2. Question Phrasing
3. Question Sequencing
4. Question Layout

47
DATA ANALYSIS
AND
INTERPRETATION

48
 ANALYSIS
1. Have you made investment in mutual funds?

Particulars No. of Respondents

Yes 78
No 22
Total 100

49
 80
70
60

50
78
40

30

20 22
10

0
Y es No
From the sample of 100 people 78 have invested in mutual funds while rest 22 have
not invested in mutual funds but those who have not invested till now they said that
they are planning to invest in mutual funds.

50
2. Who recommended you to invest in mutual funds?

Particulars No. of Respondents

Friends 45

Advertisements 28
Consultants 12
Service Providers 15
Total 100

45
45
40
35
28
30 friends
25 advertisements
20 consultants
15
12 service providers
15
10
5
0
respondents

Out of 100 respondents 45 have invested in mutual funds because of their friend’s
recommendations, 28 have invested due to advertisements, 12 due to consultants
advice and rest of 15 have invested because service providers have suggested them to
invest in mutual funds.

51
3. What is your objective for investing in mutual funds?

Particulars No. of Respondents

Returns 38
Safety 23
Liquidity 18
Tax Benefits 21
Total 100

21
38 Returns
Safety
Liquidity
18 Tax Benefits

23

38 respondents invest in mutual funds for returns, 23 consider it safe instrument for
investing their money, and objective of 21 is to have tax benefit, 18 for liquidity.

52
4. In which sector you prefer to invest in mutual funds?

Particulars No. of Respondents

Private Sector 65
Public Sector 35
Total 100

70
60
50
40 65
30
35
20
10
0
P rivate S ec tor P ublic S ec tor

It was found that most of the investors prefer private sector for investment. Out of 100
respondents 65 prefer private sectors for investment where as 35 prefer public sector.

53
5. Why do you prefer to invest in this particular sector?

Particulars Private Sector Public Sector

Return 28 8
Safety 10 13

Services 21 4

Cost of Investing 6 10

Total 65 ss35

70
6
60
21
50
Cost of Investing
40 Services
10
10 Safety
30
4 Return
20 13
28
10
8
0
Private Sector Public Sector

Choice of a particular sector depends upon returns, safety, services and cost of
investing. 36 choose a particular sector due to returns, 23 for safety, 25 for services
and rest of 16 due to less cost of investing.

54
6. Have you invested in open ended or close ended funds?

Particulars Private sector Public Sector

Open-ended 47 14
Close-ended 18 21
Total 65 35

100
90
35
80
70
60 14
Public Sector
50
Private sector
40
65
30 21
47
20
10 18

0
Open-ended Close-ended Total

61 investors have invested in open ended mutual funds so easy liquidity could be
there without any time constraint and rest of 39 respondents have invested in close
ended mutual funds.

55
7. In which industry you have invested your money?

Particulars No. of Respondents

Reliance 29
Prudential ICICI 30
SBI 17
UTI 24
Total 100

24
29

Reliance
Prudential ICICI
SBI
UTI
17

30

Reliance RSF Equity fund is top performer these days that’s why 29 investors have
invested in this fund, 30 have purchased Prudential ICICI mutual fund, 17 have
Purchased SBI and rest 24 have purchased UTI funds.

56
8. On what basis you have chosen this particular industry?

Particulars No. of Respondents

Brand Image 25
Promotional Factors 12
Returns 35
Services Offered 28

Particulars 100

28 25
Brand Image
Promotional Factors
Returns
Services Offered

12

35

Out of 100 respondents 25 have chosen a particular industry due to its brand image,
35 due to good returns, 28 due to services offered and rest 12 due to promotional
factors.

57
9. In which plan you have invested?

Particulars Private sector Public Sector

Growth Plan 18 21

Dividend Plan 47 14

65 35

70 65

60

47
50

40 35
P rivate s ec to
30 P ublic S ec to
21
18
20 14

10

0
G rowth P lan Dividend P lan Total

58
39 respondents have invested in Growth plan while rest of 61 has invested their
money in dividend income plan because they want regular income to fulfill their daily
requirements.

59
10. Do you understand all the terms and conditions (load factors,
maintainance charges and fees) before investing?

Particulars No. of Respondents

Yes 38
No 62

Total 100

100

80

60 100
40 62
38
20
Response
0
Y es No Total

When respondents were asked about terms and conditions it has been found that they
don’t have time to understand all the terms and conditions. They just complete the
formalities and invest the money. Only 38 respondents were aware of all the terms
and conditions and rest of 62 respondents are not aware of it.

60
11. Is your investment depends upon load factors?

Particulars Private sector Public Sector

Yes 18 27

No 47 8

Total 65 35

70

60 65

50
47
40 27 35
P rivate
30
P ublic S
20 18
8
10
0
Y es
No
Total

Out of 100 respondents 45 said that yes their investment depend upon load factor
while rest of 55 said that their investment does not depend upon load factors they are
just concerned about returns. As there is no entry load in public sector that why 27
investors have invested in public sector.

61
12. Do you think Mutual funds are providing you required return?

Particulars No. of Respondents

Yes 84
No 16

Total 100

100
100
90 84
80
70
60
50
40
30
20
16
10
0
Y es
No
Total

84 respondents said that mutual funds are providing them required rate of return while
rest of 16 those who have not made any investment in mutual fund and even not
planned to invest considers that it is not providing required return.

62
 FINDINGS
AND
SUGGESTIONS

63
FINDINGS:

Objective 1: To study the perception of investor towards mutual funds

• Most of the investors have invested their money in mutual funds. They
consider mutual fund as a better option to invest their money. Those who have
not invested in mutual funds even they are planning to invest. This shows that
investors has positive attitude towards the mutual funds.
• Due to continue growth of mutual fund sector investor’s preference for mutual
fund is more than other alternatives.

Objective 2: To study the various factors affecting the choice of investors

It is clear from the Ist objective that investors prefer to invest in mutual funds but
the choice of investors is affected by various factors like

• Professional Management
• Diversification of Funds
• Services Offered and
• Easy Liquidity

Objective 3: To study the reasons for investing in mutual funds

It has been founded by the research that returns provided by mutual funds attract most
of the investors. Other reasons for more preference of mutual funds are tax benefits,
services offered, less cost of investing and easy liquidity
.

64
SUGGESTIONS
From the conducted market survey, we come to know about the investor’s
perception towards mutual funds in Yamuna Nagar and Karnal city.
So here are some suggestions for the companies for better performance in
future.
 Mutual funds should extend full support to the investors in terms of:
• Investment advisory service
• Participation in investment decision making of the concerned fund
• Ensuring full disclosure of relevant information to investors by the
fund
• Consultancy regarding understandability of terms of issue of different
schemes
 In the industry there are too many intermediaries between investors and asset
management company it should be remove step by step.
 To give better services broker should know the latest information about the
market, dividend declaration, rate of dividend, new launches of scheme, and
all the messages should be communicated to the investors as early as possible.
 Investors need excellent services of mutual fund because ultimately it is
service industry so that they have to provide door to door services to the
investor and needs valuable advice in portfolio management.
 To provide greater liquidity to the investors, mutual funds should develop a
wide infrastructure of self- sufficient branches.

65
LIMITATIONS

66
LIMITATIONS
The probable limitations of this study are as under:-

 The first and foremost limitation was the time constraint, but still efforts have
been made to put the picture as clear and candid as possible.
 The number of respondents selected, as sample size is not the total, therefore
the limitation of the sample not being proper representative of population.
 Respondents had lots of confusion when they were being asked several
questions, so I had to help them and this may give biased data.
 The conservative attitude of the respondents was limiting factor in gaining
information.
 The study also depends on secondary data so limitation of data may convert
into limitation of study.
 Since the results have been drawn on the basis of information provided by the
respondents, chance of response error might hav

67
CONCLUSION

68
CONCLUSION
Mutual fund is the ideal investment vehicle for today’s complex and modern financial
scenario. Market for equity shares, bonds and other fixed income instruments have
become matured and information driven. Price changes in these assets are driven by
global events occurring in far away places. The typical individual is unlikely to have
skills, knowledge, inclination and time to keep track of events, understand their
implication and act speedily.
A mutual fund is answer to all these situations it appoints professionally qualified and
experienced staff that manages each of these functions on a full time basis. Mutual
fund provides varieties of schemes for different kind of customers to suit their goals.
Mutual funds have open-ended and close-ended schemes, children’s plan, diversified
equity fund, balanced fund, liquid plan, income fund, short term fund, sector fund and
pension plan. So the future of mutual funds in India is bright, because it meets
investor’s confidence.

69
ANNEXTURE

70
BIBLIOGRAPHY
JOURNAL
 Dr. Bhayani J.Sanjay, Management Journal of Delhi Productivity Council
and Institute of Management, Volume-9, No.-35, Page-62-70, Jan-April-2006
 Singh Jaspal, Finance India, Volume XVIII, No-4, Page-1755-1760,
December-2004
 Chandel Kulbhushan and Verma O P, ICFAI Journal of Applied Finance,
VolumeII, No-9, Page-56-67, Oct-2005
 Shahabuddini Syed, Journal of Indian Institute of Banking and Finance,
Volume-78, No-4, Pge-21-27, Oct-Dec-2007.
 Mehru K D, Finance India, VolumeXVIII, No-1, Page-225-228, March-
2004

WEBSITES
 http://www.deutschebank.co.in/1322.html
 http://www.tata.com/tata_assetmgt/index.htm/media/20080402.htm
 http://www.assetmanagement.abnamro.co.in/aboutus/aboutus.html
 http://www.birlasunlife.com/birlasunlife/mutual_fund/profile.aspx
 http://www.myreliance.com/section5
 http://www.sbimf.com/aboutus_expertise.asp
 www.icicipruamc.com/pruicici/htdos/html/index1.html
 www.moneycontrol.com
 www.mutualfundindia.com

BOOKS

 Research Methodology in Social Sciences by Prof. P.C. Tripathi.

 C.R. Kothari , Research Methodology Second Addition, Wishwa Prakashan,
New Delhi.
 Bery G.C. Marketing Research, Tata McGraw Hill (2001)

71
QUESTIONNAIRE

Objective: To Study Investor’s perception towards mutual funds.

1) Name : ……………………………………………………………………….
2) Age:…………………………………………………………………………...
3) Occupation: ………………………………………………………………….
4) Income Level: ……………………………………………………………….

1. Have you made investment in mutual funds?

Yes No

2. Who recommended you to invest in mutual funds?

Friends Advertisements
Consultants Service Providers

3. What is your objective for investing in mutual funds?

Returns Safety
Liquidity Tax Benefits

4. In which sector you prefer to invest in mutual funds?

Private sector Public sector

5. Why do you prefer to invest in this sector?

Returns Safety
Services Cost of Investing

6. Have you invested in open ended or closed ended funds?

Open ended Closed ended

72
7. In which industry you have invested your money?
Reliance Prudential ICICI
SBI UTI

8. On what basis you have chosen this particular industry?

Brand image Promotional Factors

Returns Services Offered

9. In which plan you have invested?

Growth Plan Dividend Plan

10. Do you understand all the terms and conditions (load factors &
maintenance charges & fees) before investing?
Yes No

11. Is your investment depends upon load factors?

Yes No

12. Do you think mutual funds are providing you required return?
Yes No

73