CHAPTER - I

INTRODUCTION
There are a lot of investment avenues available today in the financial market for an investor with

an investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where

there is low risk but low return. He may invest in Mutual of companies where the risk is high and

the returns are also proportionately high. The recent trends in the Mutual Market have shown that

an average retail investor always lost with periodic bearish tends. People began opting for portfolio

managers with expertise in Mutual markets who would invest on their behalf. Thus we had wealth

management services provided by many institutions. However they proved too costly for a small

investor. These investors have found a good shelter with the mutual funds.

Like most developed and developing countries the mutual fund cult has been catching on in India.

The reasons for this interesting occurrence are:

# Mutual funds make it easy and less costly for investors to satisfy their need for capital growth,

income and/or income preservation.

# Mutual fund brings the benefits of diversification and money management to the individual

investor, providing a Opportunity for financial success that was once available only to a select

few.
 OBJECTIVE OF THE STUDY

 To study the mutual fund industry in detail.

 To study the investment procedure in detail.

 To find out the market risk of sip plan.

 To aware the client about mutual fund investment.

 To suggest better investment option according to market behavior to the client.

 Expansion of mutual fund investment.

 To remove the past image of mutual fund from the mind of investors.

 To show the beneficiary aspect of mutual fund.

 To give the updated information to the investors about the high return and less risk fund.

SCOPE OF THE STUDY

Scope of Mutual Funds has grown enormously over the years. In the first age of mutual funds,

when the investment management companies started to offer mutual funds, choices were few.

Even though people invested their money in mutual funds as these funds offered them diversified

investment option for the first time. By investing in these funds they were able to diversify their

investment in common Mutuals, preferred Mutuals, bonds and other financial securities. At the
same time they also enjoyed the advantage of liquidity. With Mutual Funds, they got the scope of

easy access to their invested funds on requirement.

But, in today’s world, Scope of Mutual Funds has become so wide, that people sometimes take

long time to decide the mutual fund type, they are going to invest in. Several Investment

Management Companies have emerged over the years, who offer various types of Mutual Funds,

Each type carrying unique characteristics and different beneficial features.

Research Methodology

1. Research Design:

A research design is a pattern or an outline of a research project’s working. It is a statement of

only the essential element of a study, those that provide the basic guidelines for the details of the

project. It comprises a series of prior decision that taken together provide master plans for

executing a research projects.

A research design serves as a bridge between what has been established i.e., the research

objectives and what is to be done, in conduct of the study to relish those objectives. If there were

no research design, the research would have only foggy notions as about what is to be done.

 I have used of ‘Exploratory Type’. The research is of both qualitative as well as

quantitative type.

2. Unit of Analysis:
  Investors

Characteristics of interest:

 Client’s knowledge about Mutual Fund.

 Client’s knowledge about Reliance.

 Client’s interest in getting knowledge of Mutual Fund.

 Client’s willingness to deal in Mutual Fund with Reliance.

 Client’s preference in selecting tax saving instrument of investment.

 Client’s preference in selecting dealer.

3. Sources of Data:

 Primary Source:

The primary data is collected using sampling method and by survey using questionnaire.

 Secondary Source:

Secondary data includes information regarding present market scenario, Information regarding

Mutual Funds and competitors are collected by internet, Magazines and Newspaper and books.

4. Sample Planning:

 Sample Size: 50 units.

 Sample Extent: Kanpur city.

5. Sample design:

A sample design is a definite plan for obtaining a sample from a given population. It refers to the

technique or method the researcher would adopt in selecting items for the sample.

 I have used convenience sampling method

6. Data collection method:

 I have used survey method to collect the data.

 Questionnaire plan: I have used structured for gathering the required data through

contacting respondent personally

7. Type of information:

 I have collected facts, awareness, attitude, future action plan and reason using

questionnaire.

8. Type of questions:

 Close ended questions for dichotomous.

 Multiple choice type

9. Data Analysis and Interpretation:

 Data analysis is based on the data collected by way of questionnaires. The data is

tabulated and frequency distribution chart is prepared.

Use of the Project

 Through this C can take the way that in which direction they should go for promoting

mutual fund.

 Through this project (Awareness of Client towards Mutual Fund) we can know about the

securities market.

 We can know that how many investors are aware about the mutual fund.

 We can know that in which type of securities, people want to invest and why.
  We can know that if investors don’t want to invest in mutual fund so what the reason

behind that is.

 We can aware the investors about mutual funds beneficiary schemes.

 We can know about the market potential.

 By this project we can know that, which fund is growing up and which fund is going

down.

 By this we can know about the co.’s that provide the mutual fund investment facilities.

 We can know about the Reliance Mutual fund co. and it’s working.

 We can know about the mutual fund AMC (Asset Management Company)

Importance of the study

 Mutual funds offer inexperienced and experienced investors---who may not have a lot of

money to invest---the ability to invest in more than just one investment tool without

having to monitor or manage that investment personally and at a reduced risk.

 Every person who have no more knowledge about investment and he want to invest

anywhere so he can invest easily in mutual fund.

 One of the mode to invest mutual fund that’s SIP (Systematic Investment Plan) is less

risky to invest and every investor want to invest in less price.

 Mutual fund is totally depend upon the NAV value (Net Assets Value)

 By purchasing a combination of Mutuals, bonds and other securities--rather than just one

single Mutual purchase--their risk is spread out over many fields and companies, instead

of just one.

 Purchasing into a mutual fund automatically provides the investor with an experienced

investment manager to oversee their investment. This is because the mutual fund is
 composed of different investment securities and requires a competent professional to

oversee it from the onset.

 It is one of the easiest ways of investing your saving money