Summer Internship Report: Investor'S Perception Towards Mutual Funds

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SUMMER INTERNSHIP REPORT

Summer Internship Project


ON

INVESTOR'S PERCEPTION TOWARDS MUTUAL FUNDS with


Sharekhan

Submitted in partial fulfillment of requirement of Bachelor of


Commerce Honours

B.Com (Hons) 5th Semester (Evening)


Batch 2016-2019
Submitted to: Submitted by:
Ms. Jasleen Rana Subham Moral
Assistant Professor 43124588817
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL,
KALKAJI
ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone who supported me throughout the
course of this internship. I am thankful for their aspiring guidance, invaluable constructive
criticism and friendly advice during the internship. I am sincerely grateful to them for sharing their
truthful and illuminating views on a number of issues related to the project.

I express my warm thanks to Mr. Deepak Rohilla and Mr. Akhil for their support and guidance
at Sharekhan Limited and all the people who provided me with the facilities being required and
conductive conditions for my internship.

I would also like to thank my mentor Ms. Jasleen Rana for helping me and guiding me for the
summer internship project.

Subham Moral

43124588817

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UNDERTAKING

I hereby certify that this is my original work and it has never been submitted elsewhere.

Subham Moral

43124588817

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3
Certificate of Completion
This is to certify that Mr. Mayank Sharma of B.COM (H) has completed his summer internship
project on “investors perception towards mutual funds at sharekhan.” of his own. His work is up
to my satisfaction.

Ms. Jasleen Rana


(Assistant Professor)

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CONTENTS

Description Page No.


Acknowledgement 1
Undertaking 2
Internship Certificate 3
Certificate of Completion 4
Executive Summary 6
Introduction to The Topic 8
Objectives of the Study 15
Literature Review 17
Company Profile 58
Research Methodology 70
Data Analysis and Interpretation 76
Findings And Inferences 87
Limitations 89
Recommendations And Conclusions 91
Appendix 93
References 96

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EXECUTIVE SUMMARY

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The report gives an insight over various trends in different types of mutual funds.
Funds are chosen from different categories which can be briefly classified as:
 Risk Appetite
 Time Period
 Investment Objectives
 Annual Return
The report also discusses about everything related to Mutual Fund Industry as a whole.
It discusses about ratios calculated against Dow Jones Industrial Average, Nasdaq Composite,
S&P 500 Index, Sensex, Nifty50. tocalculate returns.
The report shows the investors preferences for investment.
Sharekhan’s profile is also discussed. It shows the product mix of company andit’s direct
competitors.
The report briefly touches the share market and equities. Major concentration is on mutual fund
industry. It uses graphs based on historical data to show past results and make an estimate on future
trends.
Needs of various investors is taken care of and their interests are taken care in mind while preparing
the questionnaire.

Share market is gaining significant grounds with the onset of booming Indian Economy. The
project involved a “comparative study of share market and mutual fund”.

I had the privilege of doing my summer training with ShareKhanLtd. Noida Branch, New Delhi
wherein I was responsible for the sales and distribution of the Demat Account and also was
appointed Team Leader. I also got the chance to learn to trade in different market segments i.e.
Equity, Derivatives (Options), Currency and Mutual Funds. I also learnt about technical and
fundamental analysis and how to use them to establish myself better in stock market. This had
been a great learning experience for me in terms of corporate culture, etiquettes and values.

The content of this project report was decided after a detailed survey and analysis of Share market
& mutual funds.

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INTRODUCTION TO THE TOPIC

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INTRODUCTION

Investment can be defined as an item of value purchased for income or capital


appreciation. Investments are made to achieve a specific objective and savings are made
to meet an unforeseen event.

There are various avenues of investments in accordance with individual


preferences. Investments are made in different asset classes depending on an
individual’s risk and return characteristics Investment choices are physical assets and
financial assets.
Gold and Real estates are examples of physical assets, which have a physical
form to them. There is a strong preference for these assets, as these assets can be
purchased with cash and held for a long term. The obvious disadvantages with physical
assets are the risks of loss and theft, lower levels of return; illiquid secondary markets;
and adhoc valuations and transactions.
Financial assets are securities, which are certificates embodying a financial
contract between parties. Bonds, Equity shares, Deposits and Insurance policies are
some of the examples of financial assets. In financial assets investors only hold the proof
of their investments in the form of a certificate or account. These products are usually
liquid, transferable and in most cases, stored electronically with high degree of safety.
But a minimum amount of cash is always kept in hand for transactions and
contingencies. To face the contingencies and unexpected events the insurance came into
existence.
Another avenue of investment is mutual funds. It is created when investors put
their money together. It is therefore a pool of the investor’s funds. The most important
characteristics of a mutual fund is that the contributors and the beneficiaries of the fund
are the same class of people, namely the investors. The term mutual means that investors
contribute to the pool, and also benefit from the pool. There are no other claimants to the
funds. The pool of funds held mutually by investors is the mutual fund.

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A mutual fund pools the money of people with similar investment goals. The
money in turn is invested in various securities depending on the objectives of the mutual
fund scheme, and the profits (or loss) are shared among investors in proportion to their
investments.

Mutual fund schemes are usually open-ended (perpetually open for


investments and redemptions) or closed end (with a fixed term). A mutual fund scheme
issues units that are normally priced at Rs.10 during the initial offer. Thus, the number of
units you own as against the total number of units issued by the mutual fund scheme
determines your share in the profits or loss of a scheme.
In the case of open-end schemes, units can be purchased from or sold back
to the fund at a Net Asset Value (NAV) based price on all business days.
The NAV is the actual value of a unit of the fund on a given day. Thus, when
you invest in a mutual fund scheme, you normally get an account statement mentioning
the number of units that have been allotted to you and the NAV based price at which the
units have been allotted. The account statement is similar to your bank statement.
Mutual funds invest basically in three types of asset classes:

Stocks: Stocks represent ownership or equity in a company, popularly known as shares.

Bonds: These represent debt from companies, financial institutions or Government


agencies.

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Money market instruments: These include short-term debt instruments such as treasury
bills, certificate of deposits and inter-bank call money.
A mutual fund’s business is to invest the funds thus collected, according to the wishes of
the investors who created the pool. In many markets these wishes are articulated as
investment mandates.

Analysis of The perception towards these mutual funds is done here in this
project. Even what factors the investors look before investing can also be observed.

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OBJECTIVES OF THE STUDY

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 To study the level of awareness of mutual funds

 To analyse the perception of investors towards mutual funds.

 To study the factors considered by the investors and those which ultimately
influence him while investing.

 To determine the type of mutual fund investor prefers the most.

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LITERATURE REVIEW

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MUTUAL FUNDS

THEORITICAL BACKGROUND
Mutual fund is a mechanism for pooling the resources by issuing units to the investors and
investing funds in securities in accordance with objectives as disclosed in offer document.
A mutual fund is an investment vehicle for investors who pool their savings for investing
in diversified portfolio of securities with the aim of attractive yields and appreciation in
their value.
Investments in securities are spread across a wide cross-section of industries and sectors
and thus the risk is reduced .Mutual funds issues units to the investors in accordance with
quantum of money invested by them. Investors of mutual funds are known as unit-holders.
The profit or losses are shared by the investors in proportion to their investments. The
mutual funds normally come out with a number of schemes with different investment
objectives, which are launched from time to time. A mutual fund is required to be registered
with securities and exchange board of India.
A mutual fund is setup in the form of a trust, which has
1. Sponsor
2. Trustees
3. Asset Management Company and
4. Custodian.
The trust is established by a sponsor or more than one sponsor who is like promoter of a
company. The trustees of mutual fund hold its property for the benefit of the unit-holders.
Asset management company (AMC) approved by SEBI manages the funds by making
investments in various types of securities.
Respective asset management companies (AMC) management mutual fund schemes.
Different business groups have sponsored these AMC s. some international funds are also
operation independently in India like Aliens and Template.

A BRIEF HISTORY OF MUTUAL FUND

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The concept of” mutual fund” is a new feather in Indian capital market but not to
international capital markets. The formal origin of mutual funds can be traced to Belgium
where society generated Belgium was established in 1822 as an investment company to
finance investments in National Industries with high associated risk. The concept of mutual
funds spread to USA in the beginning of 20th century and three investment companies were
started in 1924 since then the concept of mutual funds has been growing all around the
world

In India, first mutual fund was started in 1964 when unit trust of India (UTI) was
established in the similar line of operation of the UK.

The term ‘Mutual fund’ has not been explained in British literature but it is considered as
synonym of investment trust of
DEFINITIONS

The concept of mutual fund has been defined in various ways.


“The mutual fund as an important vehicle for bringing wealth holders and deficit units
together indirectly”
...Mr. James pierce
“Mutual fund as financial intermediaries which being a wide variety of securities with in
the reach of the most modest of investors”.
…Frank Relicy

According to SEBI mutual fund regulations 1993, “Mutual fund means a fund established
in the form of trust by sponsor to raise moneys by the trustees through the sale of units to
the public under one or more schemes for investing in securities in accordance with these
regulations.

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CONCEPT OF MUTUAL FUNDS

A Mutual Fund is a trust that pools the savings of a number of investors who share
a common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized are shared by its unit holders in
proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost.

The flow chart below describes broadly the working of a mutual fund:

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VALUE CHAIN OF MUTUAL FUND

SPONSOR:

Any person who, acting alone or in combination with another body corporate,
establishes a mutual fund.

Asset Management Company

A firm that invests the pooled funds of retail investors in securities in line with the stated
investment objectives. For a fee, the investment company provides more than
diversification, liquidity, and professional management service than is normally available
to individual investors.

Trustee

The Board of Trustees or the Trustee company who hold the property of the Mutual Fund
in trust for the benefit of the unit holders.

Mutual Fund

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A fund established in the form of a trust to raise money through the sale of units to the
public or a section of the public under one or more schemes for investing in securities,
including money market instruments.

Transfer Agent

A transfer agent is employed by a mutual fund to maintain records of shareholder


accounts calculate and disburse dividends and prepare and mail shareholder account
statements, federal income tax information and other shareholder notices.

Custodian

Mutual funds are required by law to protect their portfolio securities by placing them
with a custodian. Nearly all mutual funds use qualified bank custodians.

Unit Holder

A person who is holding units in a scheme of a mutual fund.

CLASSIFICATION OF SCHEMES

 By Structure

Open-ended

A scheme where investors can buy and redeem their units on any business day. Its units
are not listed on any stock exchange but are bought from and sold to the mutual fund.

Close-ended

A mutual fund scheme that offers a limited number of units, which have a lock-in period,
usually of three to five years. The units of closed-end funds are often listed on one of the
major stock exchanges and traded like securities at prices, which may be higher or lower

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than its NAV.In India 90% of the schemes is open-ended fund and the rest 10% is close-
ended funds. There are 1062 open-ended funds and 119 close-ended funds.

By Objective

A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended
schemes as described earlier. Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme

The aim of growth funds is to provide capital appreciation over the medium to long- term.
Such schemes normally invest a major part of their corpus in equities. Such funds have
comparatively high risks. These schemes provide different options to the investors like
dividend option, capital appreciation, etc. and the investors may choose an option
depending on their preferences. The investors must indicate the option in the application
form. The mutual funds also allow the investors to change the options at a later date.

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Growth schemes are good for investors having a long-term outlook seeking appreciation
over a period of time.

Income / Debt Oriented Scheme

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,
Government securities and money market instruments. Such funds are less risky compared
to equity schemes. These funds are not affected because of fluctuations in equity markets.
However, opportunities of capital appreciation are also limited in such funds. The NAVs
of such funds are affected because of change in interest rates in the country. If the interest
rates fall, NAVs of such funds are likely to increase in the short run and vice versa.
However, long-term investors may not bother about these fluctuations.

Balanced Fund

The aim of balanced funds is to provide both growth and regular income as such schemes
invest both in equities and fixed income securities in the proportion indicated in their offer
documents. These are appropriate for investors looking for moderate growth. They
generally invest 40-60% in equity and debt instruments. These funds are also affected
because of fluctuations in share prices in the stock markets. However, NAVs of such funds
are likely to be less volatile compared to pure equity funds.

Money Market or Liquid Fund

These funds are also income funds and their aim is to provide easy liquidity, preservation
of capital and moderate income. These schemes invest exclusively in safer short-term
instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank
call money, government securities, etc. Returns on these schemes fluctuate much less
compared to other funds. These funds are appropriate for corporate and individual investors
as a means to park their surplus funds for short periods.

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Gilt Fund

These funds invest exclusively in government securities. Government securities have no


default risk. NAVs of these schemes also fluctuate due to change in interest rates and other
economic factors as, is the case with income or debt oriented schemes.

Index Funds

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index,
S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the same
weightage comprising of an index. NAVs of such schemes would rise or fall in accordance
with the rise or fall in the index, though not exactly by the same percentage due to some
factors known as "tracking error" in technical terms. Necessary disclosures in this regard
are made in the offer document of the mutual fund scheme.

There are also exchange traded index funds launched by the mutual funds that are traded
on the stock exchanges.

AVENUES OF INVESTMENTS

Savings form an important part of the economy of any nation. With the savings invested in
various options available to the people, the money acts as the driver for growth of the
country. Indian financial scene too presents a plethora of avenues to the investors.

Banks:

Considered as the safest of all options, banks have been the roots of the financial system in
India. For an ordinary person though, they have acted as the safest investment avenue
wherein a person deposits money and earns interest on it. One and all have effectively used
the two main modes of investment in banks, savings accounts and fixed deposits. However,

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today the interest rate structure in the country is headed southwards, keeping in line with
global trends. With the banks offering little above 7% in their fixed deposits for one year,
the yields have come down substantially in recent times. Add to this, the inflationary
pressures in economy and you have a position where the savings are not earning. The
inflation is creeping up, to almost 8% at times, and this means that the value of money
saved goes down instead of going up. This effectively mars any change f gaining from the
investments in banks.

Post office Schemes

Among all saving options, post office schemes have been offering the highest rates. Added
to it is that the investments are safe with the department being a government of India entity.
So the two basic and most sought for features, those of return safety and quantum of returns
were being handsomely taken care of Public Provident Funds act as options to save for the
post retirement period for most people and have been considered good option largely due
to the fact that returns were higher than most other options and also helped people gain
from tax benefits under various sections. The following are the post office savings schemes
available for the investors:

Monthly Income scheme:

This scheme offers an interest of 8%p.a, payable monthly and a bonus of 10% payable at
maturity after 6 years. There is no tax deductible at source (TDS) applicable on investments
made in this scheme.

National Savings Scheme:

This scheme offers an interest of 8% p.a; compounded half yearly and payable at maturity
in 6 years.

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Post Office Time Deposits:

There are 4 options available to investors depending on the term of investment desired
by the investor. They are:

1 year) this gives an interest of 6.25% p.a

2 year) This gives an interest of 6.5% p.a

3 year) This gives an interest of 7.25% p.a

4 year) This gives an interest of 7.5% p.a

Kisan Vikas Patra:

An important feature of this scheme is that it assures that the money invested doubles in
8 years and 7 months.

Public Provident Fund:

This scheme gives a return of 8% per annum, compounded annually for maturity of 15
years.

Government of India Bonds:

The GOI Bonds have the following investment options:

6.5% Tax free bonds

There is no ceiling on the amount of investment in these bonds. The effective yields of
these bonds are 9.28% p.a for the period of 5 years and premature encashment option
available to investors only after the completion of 3 years.

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8% Taxable Bonds:

These bonds do not have any TDS charged on them. There is no maximum limit of
investment in these bonds but there should be a minimum investment of Rs.1, 000. The
maturity period is 6 years. The investor has the option of interest payable half yearly or
cumulative. The investors can also avail tax benefit under section 80L of income Tax Act,
up to Rs. 15,000.

Company Fixed Deposits:

Companies have used fixed deposit schemes as a means of mobilizing funds for their
operations and have paid interest on them. The safer a company is rated, the lesser the
return offered has been the thumb rule. However, there are several potential roadblocks in
these.

The danger of financial position of the company not being understood by the investor
lurks.

1. Liquidity is a major problem with the amount being received monthly


after the due dates.

2. The safety of principal amount has been found lacking.

Stock markets:

Stock markets provide an option to invest in a high risk, high return game. While the
potential return is much more than 10-11% any of the options discussed above can
generally generate, the risk is undoubtedly of the highest order. However, as it might

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appear, people generally are clueless as to how the stock market functions and in the
process can endanger the hard-earned money.

For those who are not adept at understanding the stock market, the task of
generating superior returns at similar levels of risk is arduous to say the least. This is where
mutual funds come into picture.

COMPARISION OF OTHER AVENUES WITH MUTUAL FUNDS

The mutual fund sector operates under stricter regulations as compared to most other
investment avenues. Apart from offering investors tax efficiency and legal comfort, how
do mutual funds compare with other products?

Company Fixed Deposits versus Mutual Funds

Fixed deposits are unsecured borrowings by the company accepting the deposit.
Credit rating of the fixed deposit program is an indication of the inherent default risk in t
he investment. The money of investors in a mutual fund scheme are invested by the AMC
in specified investments under that scheme. These investments are held and managed in-
trust for the benefit of the scheme’s investors. On the other hand, there is no such direct
correlation between a company’s fixed deposit mobilization, and the avenues where it
deploys these resources.

There can be no certainty of yield, unless a named guarantor assures a return or to a


lesser extent, if the investment is in a serial gilt scheme. O the other hand, the return under
a fixed deposit is certain, subject only to the default risk of the borrower.

The basic value at which fixed deposits are encashable is not subject to market risk.
However, the value at which units of a scheme are redeemed entirely depends on the
market. If securities have gained value during the period, then the investor can even earn

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that is higher than what she anticipated when she invested. Conversely, she could also end
up with a loss.

Early encashment of fixed deposits is always subject to a penalty charged by the


company that accepted the fixed deposit. Mutual fund schemes also have the option of
charging a penalty on ”early” redemption of units (by way of an “exit load”).

Bank Fixed Deposits versus Mutual Funds

Bank fixed deposits are similar to company fixed deposits. The major difference is
that banks are more stringently regulated than are companies. They even operate under
stricter requirements regarding Statutory Liquidity ratio(SLR) and Cash Reserve Ratio
(CRR) mandated by RBI.

While the above are for comfort, bank deposits too are subject to default risk.
However, given the political and economic impact of bank defaults, the government as well
as Reserve Bank of India (RBI) tries to ensure that banks do not fail.

Further, the Deposit Insurance and Credit Guarantee Corporation (DICGC) protect
bank deposits up to Rs. 100,000. The monetary ceiling of Rs.100,000 is for all the deposits
in all the branches of a bank, held by the depositor in the same capacity and right.

Bonds and Debentures versus Mutual funds

As in the case of fixed deposits, credit rating of a bond or debenture is an indication of


the inherent default risk in the investment. However, unlike fixed deposits, bonds and
debentures are transferable securities.

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While an investor may have an early encashment option from the issuer ( for instance
through a “put” option), liquidity is generally through a listing in the market, implications
of this are:

The value that the investor would realize in an early exit is subject to market risk.
The investor could have a capital gain or a loss. This aspect is similar to a mutual fund
scheme.

A hypothecation or mortgage of identified fixed and / or current assets could back


debt securities, e.g secured bonds or debentures. In such a case, if there is a default, the
identified assets become available for meeting redemption requirements.

An unsecured bond or debenture is for all practical purposes like a fixed deposit, as
far as access to assets is concerned.

A custodian for the benefit of investors in the scheme holds the investment of a mutual
fund scheme.

Equity versus Mutual fund

Investment in both equity and mutual funds are subject to market risk. Investment in an
open-end mutual fund eliminates this direct risk of not being able to dell the investment in
the market. An indirect risk remains, because the scheme has to realize its investments to
pay investors. The AMC is however in a better position to handle the situation. Further, on
account of various SEBI regulations, such as illiquid securities are likely to be only a part
of the scheme’s portfolio.

Another benefit of equity mutual fund scheme is that they give investors the benefit of
portfolio diversification through a small investment.

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RISK AND RETURN GRID:

An investor has mainly three investment objectives.

1. Safety of Principal

2. Return

3. Liquidity

BANKS FIXED BONDS AND EQUITY MUTUAL


DEPOSIT DEBENTURE MARKET FUND
S
Returns Low Low to Low to Moderate to high Better
Moderate moderate
Administrativ High Moderate Moderate to Low to Low
e expenses to High high Moderate
Risk Low Low to Low to High Moderate
Moderate moderate
Investment Less Few Few Many More
options
Network High Low Low Low but Low but
penetratio penetratio penetration improving fast improving
n n
Liquidity At a cost Low Low to Moderate to Better
moderate High

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Quality of Not Not Not Transparent Transparen
Assets transparen transparen transparent t
t t
Guarantee Maximum None
Rs 1 lakh

Pricing

The net asset value of the fund is the cumulative market value of the asset fund net of its
liabilities. In other words, if the fund is dissolved or liquidated, by selling off all the assets
in the fund, this is the amount that the shareholders would collectively own. This gives rise
to the concept of the net asset value per unit, which is the value, represented by the
ownership of one unit in the fund. It is calculated simply by dividing the net asset value of
the fund by the number of units. However, most people refer loosely to the NAV per unit
as NAV, ignoring the “per unit”. We also abide by the same convention.

Calculation of NAV

The most important part of the calculation is the valuation of the assets owned by the
fund. Once it is calculated, the NAV is simply the net value of assets divided by the number
of units outstanding. The detailed methodology for the calculation of the asset value is
given below.

Asset value = (Value of investments+ receivables+ accrued income+ other current


assets- liabilities- accrued expenses) /Number of units outstanding.

ADVANTAGES OF INVESTING IN MUTUAL FUND:

Number of options available

Mutual funds invest according to the underlying investment objective as specified


at the time of launching a scheme. Mutual fund have equity funds, debt funds, gilt funds
and many others that cater to the different needs of the investor. While equity funds can be

30
as risky as the stock markets themselves, debt funds offer the kind of security that is aimed
for at the time making investments. The only pertinent factor here is that the fund has to be
selected keeping the risk profile of the investor in mind because the products listed above
have different risks associated with them.

Diversification

Diversification reduces the risk because all stocks don’t move in the same direction
at the same time. One can achieve this diversification through a Mutual Fund with far less
money that one can on his own.

Professional Management

Mutual Funds employ the services of the skilled professionals who have years of
experience to back them up. They use intensive research techniques to analyze each
investment option for the potential of returns along with their risk levels to come up with
the figures for the performance that determine the suitability of any potential investment.

Potential of returns

Returns in the mutual are generally better than any option in any other avenue over
a reasonable period of time. People can pick their investment horizon and stay put in the
chosen fund for the duration.

Liquidity

The investors can withdraw or redeem money at the Net Asset Value related prices
in the open-end schemes. In the Closed-end Schemes, the units can be transacted at the

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prevailing market price on a stock exchange. Mutual Funds also provide the facility of
direct repurchase at NAV related prices.

Well Regulated

The Mutual Fund industry is very well regulated. All investment has to be accounted
for, decisions judiciously taken. SEBI acts as a true watch dog in this case and can impose
penalties on the AMC’s at fault. The regulations designed to protect the investors interests
are implemented effectively.

Transparency

Being under a regulatory frame work, Mutual Funds have to disclose their holdings,
investment pattern and all the information that can be considered as material, before all
investors. This means that investment strategy, outlooks of the markets and scheme related
details are disclosed with reasonable frequency to ensure that transparency exists in the
system.

Flexible, Affordable and Low cost

Mutual Funds offer a relatively less expensive way to invest when compared to other
avenues such as capital market operations. The fee in terms of brokerages, custodial fees
and other management fees are substantially lower than other options and are directly
linked to the performance of the scheme. Investment in Mutual Funds also offer a lot of
flexibility with features such as regular investment plans, regular withdrawal plans and
dividend investment plans enabling systematic investment or withdrawal of funds.

Convenient Administration

Investment in the mutual fund reduces paper work and helps you avoid many
problems such as bad deliveries, delayed payments and follow up with brokers and
companies. Mutual Funds save your time and make investing easy and convenient.

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TAXATION ON MUTUAL FUNDS

An Indian mutual fund registered with the SEBI, or schemes sponsored by specified
public sector banks/financial institutions and approved by the central government or
authorized by the RBI are tax exempt as per the provisions of section 10(23D) of the
income tax act. The mutual fund will receive all income without any deduction of tax at
source under the provisions of section 196(iv), of the income tax act.

COMPANY PROFILE

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S. S. KANTILAL ISHWARLAL SECURITIES PVT. LTD.
(sharekhan.com):

Sharekhan, India’s leading stock broker is the retail arm of SSKI, and offers you depository
services and trade execution facilities for equities, derivatives and commodities backed with
investment advice tempered by decades of broking experience. A research and analysis team is
constantly working to track performance and trends. That’s why Sharekhan has the trading
products, which are having one of the highest success rates in the industry. Sharekhan is having
2800 outlets in 575 cities
; the largest chain of retail share shops in India is of Sharekhan.In future, Sharekhan is planning to
enter in Mutual funds, Insurance sector and banking sector to expand beyond the market currently
covered by it. And it has started MF (Mutual Funds) on priority basis but wants to grow in it.
It was founded 18 years ago. It now has 1.7 million customers with 46,900crore customer assets.
Sharekhan is now a fully owned subsidiary of BNP Paribas, it was rebranded as Sharekhan by
BNP Paribas.

Sharekhan is the largest standalone retail brokerage in the country and the third largest in terms of
customer base after ICICI Direct and HDFC Securities.Sharekhan is one of the pioneers of online
trading in India.It offers a broad range of financial products and services including securities
brokerage, mutual fund distribution, loan against shares, ESOP financing, IPO financing and
wealth management.

History
Sharekhan was founded by Mumbai-based entrepreneur ShripalMorakhia in 2000. Sharekhan
pioneered the online retail broking industry and leveraged on the first wave of digitization, when
dematerialization (demat) of securities came into effect and electronic trading was introduced in
the stock exchanges.

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In India, Sharekhan has over 4800+ employees, and is present in over 575 cities through
153 branches, more than 2,500 business partners. The company has 1.4 million customer
base and on an average, executes more than 4 lakh trades per day.

About Organisation

Founded in 2000 and a subsidiary of BNP Paribas since November 2016, Sharekhan was
one of the first brokers to offer online trading in India. With 16 lakh customers, 153
branches and more than 2400 business partners spread across over 575 locations,
Sharekhan is one of the largest brokers in India. Sharekhan offers a wide range of savings
& investment solutions including equities, futures and options. currency trading, portfolio
management, research and mutual funds and investor education. On an average, Sharekhan
executes more than 400,000 trades daily.

Key Management Personnel


CEO- Mr. JaideepArora
Parent- BNP Paribas
Founded- 2000
Acquisition- 2005

Organisation Structure
● Registered with NSE and BSE for capital market, futures and options and currency
segments and CDSL and NSDL for depository services.

● A full-service stock broking firm providing online services right from online account
opening to trading and investments.

35
● Created India’s best online trading platforms: Website (www.sharekhan.com), Trade Tiger
(the ultimate desktop trading software), Sharekhan App (available for Android and iOS
devices) and Sharekhan Mini (a low bandwidth website especially for mobile browsers)

● A strong brick-and-mortar network with over 2600 outlets in 575+ cities

● Research-based financial advice on all asset classes to suit all investing and trading styles

● Dedicated Education and training courses for investors and traders in association with
Online Trading Academy.

Product Mix

1. Trade Tiger
If you believe in trading like a professional, experience the power of a broker's terminal
with our advanced online desktop trading platform - TradeTiger.
What's more, navigation around the software is a piece of cake which gives you more time
to formulate winning trading strategies. Plus, with TradeTiger you can trade easily in
multiple segments from a single platform, gain access to advanced trading tools like Trade
from Excel and HeatMap, and obtain real-time market feeds without any hiccups.
Experience TradeTiger now to take your trading to the next level.

Features

● Fast and Reliable Feeds

● Access to Research Calls

● Multiple Exchange Platform

● Best in Class Charting

● Advance Tools

● Advance Orders

36
● Personalisation

● Free Online Trading

● Online Support Desk

2. Sharekhan Website

Investing can be fun and engaging, that too at the click of a button with the Sharekhan
website

Features:
● Explore the all new website
The new Sharekhan website is revamped to help you trade efficiently. Watch the demo to
find the new features and locate your sections.
● My Portfolio
My Portfolio gives a detailed & a comprehensive view of your investments. Watch the
demo to find out the new features of My Portfolio.
● Check all the Reports
Check various Reports to check the capital gains for tax calculation purposes in a better
way and all other reports related to orders and open and closed financial positions
● Segmentation
Website is divided in four segments with easy navigation to differentiate profits from
different segments of market.

3. Sharekhan App
The new Sharekhan App is user friendly and has been redesigned keeping user’s
requirements in mind. Along with its fresh new look, it also offers extensive features for
both traders and investors alike. Now, you can initiate trade easily, keep track of your
stocks and manage portfolio, all in one place. Sharekhan would surely become your
preferred trading and investment app for the features mentioned below.

App Features:

37
● Navigate easily across the app with user friendly design
● Stay updated with global and domestic market info
● Save the effort of typing user id and password again & again by perpetual login feature
● Trade, view charts & detailed quote, add to marketwatch& virtual portfolio directly from
scrip search page
● Introduction to powerful multi exchange streaming marketwatch with enhanced details
about scrips and contracts

Features for Traders:


● Trade smart with enhanced live charts (Line, Candlestick, Bar, Area)
● Trade in advanced orders (Bracket Order) and track the orders in enhanced report section
● Extensive and in–depth analysis using advanced charts and studies like Candle Stick,
Retracement Line, Bollinger Band, RSI, Moving Average etc
● Search for your favourite stock easily with Advanced Future & Option search

Features for Investors:


● Track your investments with newly introduced portfolio
● Enhanced global markets to keep you update about market news around the world
● Stay informed with the latest market news & updates
● Get access to domestic market news, top gainer, top loser, top traded volume, top traded
turnover, 52 week high, 52 week low

4. Sharekhan Mini
SharekhanMini is designed for mobile phone users and users who want to access Sharekhan on
low bandwidth.
SharekhanMini is low bandwidth website, which works both on smartphone as well as on a basic
2G phone. Anyone who has a basic phone and 2G network can trade through SharekhanMini
without any hassle.
SharekhanMini is packed with amazing features, some of which are mentioned below:
● Track as well as trade in all segments with multi exchange streaming watchlist
● Trade seamlessly in NSECURR & MCXCURR and also invest in Mutual Fund

38
● Track Equity and MF portfolio on the go
● Access charts for scrips in NSE and BSE segments
● Get updates on Sharekhan Research calls and latest news
● Stay updated with information of global indices as well as domestic markets
● Single touch access to MarketWatch, Order page, Charts and Futures & Options
● Keep an eye on your favorite stocks through watchlist
● View all Call & Put contracts for a particular scrip with the help of Option Chain
● Know your contract information like Span Margin, Greeks etc. with help of Span
Calculator
● Transfer funds securely from Bank to Trading A/c, MF A/c, IPO A/c & vice versa

5. Dial N Trade
Free with your Sharekhan Trading Account, the Dial-N-Trade service enables you to place
orders for buying and selling shares, futures & options and currencies through your
telephone. All you have to do is dial any one of our dedicated numbers (1-800-270-7050
or 1-800-22-7050 or 30307600), enter your TPIN number (which is provided at the time
of opening your account) and on authentication, you'll be given an option to select either
Equity or Currency segment. Then, you'll be directed to a telebroker who will place the
orders on your behalf.

Features:
● A quick and secure 3-step process to place your orders. Just enter your phone ID and TPIN
and select the segment you want from our varied offering [1 for Equity; 2 for Currency]
● Availability of all Sharekhan research advice on all segments:
○ Intraday
○ Momentum Call
○ Smart Chart Calls
○ Fundamental Calls
● Facility to discuss and understand trends and factors affecting the markets
● Guidance and education on market concepts
● Pan-India accessibility

39
● No limit on calls made for trading
● Complete recording infrastructure for all calls
● 2 toll-free numbers

6. Pattern Finder
Sharekhan brings you PatternFinder - a tool that analyzes stocks and indices, extracts
profitable opportunities from them and delivers the information piping hot to you

How Does it Work?


● Scans stocks in all supported markets every night, based on standards of Technical
Analysis
● Throws up charts, patterns and forecasts prices
● Delivers this information, via SMS and email alerts, before the market opens the next day

How Does it Help Investor?


● Saves you a lot of time and effort as PatternFinder does all the analysis
● Equips you with critical pattern recognition information and trading ideas
● Delivers profitable trading opportunities

What do I do?
● Just log into your Sharekhan account
● Click on the 'PatternFinder' link to subscribe for all the updates and alerts
● Intimation will be sent to you via email/SMS confirming your subscription

7. PMS- Wealth Optimizer


The Indian equity market presents an excellent opportunity for long-term investors.
Sharekhan offers you solutions to meet your financial objectives. WealthOptimizer is a
portfolio management product that involves enhancing wealth over the long term. The goal
is not only to outperform the market but also to generate superior returns.

40
Strategy:
● To identify undervalued growth stocks on the investment day
● Automated decision making system performs fundamental analysis and assigns a fair value
to each stock on the basis of reported financial performance
● Stocks with higher scope to grow are selected

How The Product Works


● Fundamental analysis is performed on more than 5,000 companies
● Stocks with sound fundamentals are picked, subject to strategy conditions
● Top 10 stocks are selected each day based on the maximum scope to grow
● No particular sector forms more than 20% of the client’s portfolio
● Fundamentals of stocks held are reviewed every quarter based on quarterly results
● Automated decision making system for transparent and disciplined investing

Key Product Specifications


● Minimum Investment Amount: Rs 25 Lacs.
● Recommended Investment Duration: 2 years or more.

41
Direct Competitors

FIRMS NAME HDFC ICICI RELIGARE INDIABULLS SHAREKHAN


FACTS
OPENING RS.750/- Rs.750/- Rs.500/- Rs.1250/500 Nil/-
CHARGES
AMC Rs. 750/- Rs. 750/- Rs .16 per Rs.16per Rs. 400/-
transaction transaction

RESEARCH NO NO R. M. R.M. DAILY BASIS


REPORT
DIAL N TRADE Rs.20per call Rs.20per call NO NO FREE
chargeable chargeable

BROKERAGE INT 0.15% INT 0.15% INT 0.10% INT 0.10% INT 0.02%
DEL0.75% DEL0.75% DEL0.50% DEL 0.50% DEL 0.15%

LIVE NO NO YES YES YES


TERMINAL
EXPOSURE NO NO 8timeonly 8time only 5time
trading trading 2days+trading

TRADING 9:15to3:30 9:15to3:30 9:15to3:30 9:15to3:30 9:15to3:30


TIMING

Systematic Investment Plan


An SIP or a Systematic Investment Plan allows an investor to invest a fixed amount regularly in a
mutual fund scheme, typically an equity mutual fund scheme.

42
Why should you invest in SIP?
One, it imparts financial discipline to your life. Two, it helps you to invest regularly without
wrestling with market mood, index level, etc. For example, if you are supposed to put a fixed
amount every month in a mutual fund scheme, you need to find time to do it. When you have the
time, you might be worried about market conditions and think of postponing your investments. Or
you might be thinking of investing more if the mood is optimistic. SIP puts an end to all these
predicaments. The money is automatically invested regularly in a scheme without any effort on
your part.

What are the other benefits of SIPs?


SIPs help you to average your purchase cost and maximise returns. When you invest regularly
over a period irrespective of the market conditions, you would get more units when the market is
low and less units when the market is high. This averages out the purchase cost of your mutual
fund units.

Another benefit, called the eighth wonder of the world by some, is the power of compounding.
When you invest over a long period and earn returns on the returns earned by your investment,
your money would start compounding. This helps you to build a large corpus that help you to
achieve your long-term financial goals with regular small investments.

How much money do I need to start an SIP?


You can start investing in a mutual fund scheme via SIP with a minimum of Rs 500.

Can I customise my SIP?


Yes, you can. Though the most popular SIP is investing a fixed amount every month, investors
can customise the way they put money via SIPs. Many fund houses allow investors to invest
monthly, bi-monthly and fortnightly, according to their convenience.
Apart from this, Step-up SIPs allow investors to increase the SIP amount periodically. ‘Alert SIP’
is another form of the regular systematic investment plan which sends an alert to the investor to
buy more when the markets are down.

43
In case of the ‘perpetual SIPs,’ investors don't have to choose the end date of the SIP. Once the
goal is met, the investors can stop the SIP by sending a written communication to the fund house.

Systematic Transfer Plan (STP)


STP is a variant of SIP. STP is essentially transferring investment from one asset or asset type into
another asset or asset type. The transfer happens gradually over a period.

STP and its importance


Systematic Transfer Plan is of two types; fixed STP, and capital appreciation STP. A fixed STP is
where investors take out a fixed sum from one investment to another. A capital appreciation STP
is where investors take the profit part out of one investment and invest in the other.

Example of STP
Suppose you have invested 5 lakhs in debt funds because you thought market is trading at close to
peak. The PE ratio of the market is 25 and hence you think that fall is imminent. Hence you
invested your money in debt fund. Now assume that your prophecy was right and the market indeed
fell to a level where you can make entry to equities. However, there are overall weak sentiments
which may push market further down. What is the best strategy in this case?

You can take out 5 lakhs out of debt fund and invest in equity oriented mutual fund. The risk is
that if the market goes further down, your fund value will also fall. This is a risky strategy.
Moreover, if the weak sentiments prolong for some time, you will lose on the opportunity cost
because your money is stuck with an investment which has gone down in value.
There is other way which can really minimize the risk. The way is called STP. In this case, you
can withdraw a fixed amount from your debt fund investment and invest in equity oriented fund.
This can go on for several months depending upon your choice. For example, if you want to
continue STP for 3 years, you can direct your fund to do this and the fund will withdraw money
automatically from your debt fund and put into equity oriented fund every month.

44
RESEARCH METHODOLOGY

45
Research refers to the systematic investigation into and study of materials and sources in order to establish
facts and reach new conclusions. Research comprises "creative work undertaken on a systematic basis to
increase the stock of knowledge, including knowledge of humans, culture and society, and the use of this
stock of knowledge to devise new applications." It is used to establish or confirm facts, reaffirm the results
of previous work, solve new or existing problems, support theorems, or develop new theories. In the
broadest sense of the word, the definition of research includes any gathering of data, information, and facts
for the advancement of knowledge. It is a process of steps used to collect and analyze information to
increase our understanding of a topic or issue". It consists of three steps: pose a question, collect data to
answer the question, and present an answer to the question.

The process used to collect information and data for the purpose of making business decisions is called as
Research Methodology. The methodology may include publication research, interviews, surveys and
other research techniques, and could include both present and historical information.

The purpose of Methodology is to describe the purpose involved in the Research Work. This includes the
overall Research Design, the data collection method. Research Methodology refers to the various sequential
steps to be adopted by a Researcher in studying a problem with certain object or objective in view.

Research Design
A research design is the set of methods and procedures used in collecting and analyzing measures of the
variables specified in the research problem research. The design of a study defines the study type
(descriptive, correlational, semi-experimental, experimental, review, meta-analytic) and sub-type (e.g.,
descriptive-longitudinal case study), research problem, hypotheses, independent and dependent
variables, experimental design, and, if applicable, data collection methods and a statistical analysis plan.
Research design is the framework that has been created to find answers to research questions. There are
many ways to classify research designs, but sometimes the distinction is artificial and other times different
designs are combined. Nonetheless, the list below offers a number of useful distinctions between possible
research designs. A research design is an arrangement of conditions or collections.

A research design is a systematic approach that a researcher uses to conduct a scientific study. It
is the overall synchronization of identified components and data resulting in a plausible
outcome. To conclusively come up with an authentic and accurate result, the research
design should follow a strategic methodology, in line with the type of research chosen. To have a

46
better understanding of which research paper topic, to begin with, it is imperative to first identify
the types of research.

Types of Research Design:

 Exploratory Research
Exploratory research, as the name implies, intends merely to explore the research questions
and does not intend to offer final and conclusive solutions to existing problems. This type of
research is usually conducted to study a problem that has not been clearly defined yet.
 Descriptive Research
Descriptive research can be explained as a statement of affairs as they are at present with the
researcher having no control over variable. Moreover, “descriptive studies may be
characterised as simply the attempt to determine, describe or identify what is, while analytical
research attempts to establish why it is that way or how it came to be”

Data Collection
Data collection is the process of gathering and measuring information on variables of interest, in an
established systematic fashion that enables one to answer stated research questions, test hypotheses, and
evaluate outcomes.A formal data collection process is necessary as it ensures that the data gathered are both
defined and accurate and that subsequent decisions based on arguments embodied in the findings are
valid. The process provides both a baseline from which to measure and in certain cases an indication of
what to improve.

Methods of Data Collection


There are two types of data collection methods namely primary data collection and secondary data
collection.

Primary data

47
Primary Data is the data which is originally collected by an investigator or agency for the first time for
specific purpose. The source from which the primary data is collected is called the primary source. Such
data is original in character as it is collected for the first time. It is first-hand information. Primary Data
once collected and published becomes Secondary Data. There are many methods to collect primary data
and the main methods include:
 Questionnaires
 Interviews
 Focus group interviews
 Observation

Secondary data
The data which is not directly collected but rather obtained from the published or unpublished sources is
known as Secondary Data. It is also known as Second Hand Data. These are not original data since the
enumerators or investigators themselves do not collect these data. They simply make use of the data
collected by the others. Common sources of secondary data include:
 Census
 Large surveys
 Internet
 Journals
 Books
 News papers
 Organizational records

Thus, the data for is collected through primary sources (questionnaire ) and the research is
descriptive in nature. The study was conducted among 30 individuals. The data has been collected in
the form of questionnaire from these 30 respondents on various factors that can help me determine
the investment strategy

How do we know something exists? There are a numbers of ways of knowing…


 -Sensory Experience
 -Agreement with others
 -Expert Opinion
 -Logic

48
 -Scientific Method (we’re using this one)

The Scientific Process (replicable)


1. Identify a problem
2. Clarify the problem
3. Determine what data would help solve the problem
4. Organize the data
5. Interpret the results

General Types of Educational Research


 Descriptive — survey, historical, content analysis, qualitative
 Associational — correlational, causal-comparative
 Intervention — experimental, quasi-experimental, action research (sort of)

Methods Used

Primary and Secondary methods are used in the collection of data for the report.
Primary data includes the responses taken from the market survey, from the personal interaction
with the clients of the company and data about various funds from the sharekhan’s portal and other
various sites.

Secondary data includes the analysis taken from the various news articles and other various
websites from the internet. It also includes the advisor recommendations from the investment
advisors from sharekhan.

Primary Data used:

Market Survey was done with a sample size of 50 respondents at Connaught Place, New Delhi.

Research Design Used:


49
This research is based on descriptive research design. It shows the current sentiment of investors
in mutual fund segment. The survey was done to check the emerging trends in mutual fund
segment.

RESEARCH PROCESS IN THIS PROJECT/STUDY

 Research Type : Exploratory and Descriptive


 Data Collection :Primary Data and Secondary both
 Population : Investors (Individual)
 SAMPLE SIZE: 30
 REASEARCH AREA: New Delhi – Connaught Circus
 RESEARCH TOOLS: Pie Chart & Bar Graphs
 TOOLS OF ANALYSIS: Percentage and Ratios

50
DATA ANALYSIS AND INTERPRETATION

51
Q.1 What kind of investment you prefer most?

Preference
6
11
Mutual Fund
4 Equity
Bank FD
Bank RD
4
Real Estate
Gold
10
7

Interpretation:

1. Majority of the investors are inclined towards Mutual Funds and Equity
2. Gold and Bank FDs form the middle range for investment preference
3. Bank RD and Real Estate are least preferable investment options

52
Q.2 Have you ever invested your money in Mutual Funds?

30 28

25
22

20

15

10

0
Yes No

Interpretation:

1. Half of the total sample surveyed had invested in any type of investment
2. Other half did not preferred to make any investment

53
Q.3 Are you aware that you can save taxes by investing in Mutual Funds?

26.5
26
26

25.5

25
Tax Saving
24.5
24
24

23.5

23
Yes No

Interpretation:

1. Half of the people in the sample about tax saving mutual fund schemes
2. Other half either didn’t knew or didn’t invested at all

54
Q.4 Do you think investment in Mutual Funds has given better returns
compared to other investment alternatives?

40
34
35

30

25

20
16 Better Returns in Equity
15

10

0
Yes No

Interpretation:

1. Majority of the sample believed that returns in equity were more than those in mutual
funds
2. Some had invested in mutual funds for safe returns

55
Q.5 Would you be interested to know more about Mutual Fund investments?

40
34
35

30

25

20
16 Interested in Learning
15

10

0
Yes No

Interpretation:

1. Majority of the people were interested in learning about investment instruments


2. College students were mostly open for learning about the investment alternatives

56
Q.6 Do you prefer high risk investments in hope for high returns?

35

30 29

25
21
20
Prefer High Risk High
15 Return

10

0
Yes No

Interpretation:

1. Most investors prefer to play safe rather than going for high returns
2. Risk appetite of investors is low

57
Q.7 What should be the average time period of your investment?

Average Time Period


20 18
18
16 15
14
12 11
10
8 Average Time Period
6
6
4
2
0
Less than 1 1-3 years 3-5 years More than 5
year years

Interpretation:

1. General sentiment is long term investment


2. Investors are investing for long term targets

58
Q.8 Which type of Mutual Fund scheme would you prefer investing
in?

Type of Mutual Fund Scheme


8 6
Debt Fund
4 Hybrid Fund
Balanced Fund
Large Cap Fund
9
6 Thematic Fund
Mid and Small Cap Fund
MultiCap Fund
Money Market Fund
6 10
1

Interpretation:

1. Investors usually prefer Large Cap and MultiCap Funds


2. New schemes have usually less investment

59
Q.9 Do you keep a specific investment objective before investing?

30 28

25
22

20

15
Investment Objective

10

0
Yes No

Interpretation:

1. Majority of the investors have a specific investment objective before investing


2. Others usually invest for the general purpose of creating wealth

60
Q.10 Do you do your own research before investing or prefer to
consult from an investment advisor?

35
32

30

25

20 18
Prefer Own Research or
15 Professional Advisor

10

0
Own Research Professional Advisor

Interpretation:

1. Most investors prefer to take professional advice before making any kind of investment
2. Investors generally prefer to collect information other reliable sources before investing

61
FINDINGS AND INFERENCES

62
FINDINGS

 Many of the investors are aware of mutual funds but most of their perception towards them
is not positive.
 Investors are mainly concerned with the risk factors of mutual funds and are not directing
towards them.
 The investors who have invested in mutual funds mainly go for it because of the Liquidity
matter and Tax exemption.
 Most of the people don’t know the advantages of mutual funds and the various types of
mutual funds.
 There are nearly 1173 schemes of mutual funds offered by various mutual fund houses,
which an ordinary person is not aware.
 A common investor basically looks for the Tax exemption and Safety & security while
investing.
 Investors often feel that those people, who have surplus amount with them and invest to
avail Tax exemption, can do investing in mutual funds.

63
LIMITATIONS

64
Though the present study aims to achieve the earlier-mentioned objectives in full earnest and
accuracy, it was hampered due to certain limitations. Some the limitations of this study may be
summarized as follows:

 There was time constraint as the time period of internship was only 2 months to analyse all
aspects of Mutual Funds.
 Certain data was not available for effective study.
 Confidential data of company was not provided for research.
 Mutual Funds data was not available directly from asset management companies which
increased dependency on other sources.
 Sharekhan’s contracts with Mutual Fund AMCs were not available which has made report
favouring some particular funds.
 Audited financial statements of the company were not available for proper study.
 Sample size was limited and there were geographical boundations which hampered data
collections for research.

65
RECOMMENDATIONS AND CONCLUSIONS

66
SUGGESTIONS

Make people aware of mutual funds by:

1. Arranging free seminars in different organizations about mutual fund


investments.

2. Arranging stalls in Public places is a good publicity.

3. More advertisements need to come to explain the various advantages of


mutual funds and even the various schemes offered by them.

4. The key for mutual fund investors is to define and recognize the value of
professional financial services, and then insist on getting that value. When you pay
a sales charge or a fee, what can you expect a professional to do for you? Your
advisor should at least:
5. Understand investor needs and help him formulate long-term investment
goals and objectives.
Before making specific recommendations, advisor should try to gain a
whole picture of investors past experience, lifestyle and goals, as well as
his other investments and current financial situation. When the investor
planning to retire, for example? Does the investor have life insurance?
Does he own real estate? How secured is his job?
6. Help the investor develop realistic expectations by discussing the risks and
rewards of each investment. Every investment choice has its strengths and
weaknesses, and investor should never feel less than fully informed. When
investor ask questions, or have doubts,

67
7. Investor should expect your financial advisor to answer honestly, and help
him develop a strategy that is both realistic and comfortable for him.

8. Match investor’s goals and objectives with appropriate mutual funds.


Investor should expect your advisor to make clear and specific
recommendations, and explain the reasons behind them in terms he can
understand.
9. Conduct regular reviews to ensure that your strategy continues to provide
optimal results for you.

68
APPENDIX

69
Questionnaire

70
REFRENCES

71
1. Andersen, Carl E: “Modern Mutual Fund Families and variable Life: Tools for investment,
Growth and tax benefits “,Dow Jones Irwin, Homewoodillioi,1988.
2. Dr. Bernadette D’ Silva 2012, “A study of factors influencing mutual fund investment in
India” , The International Journal’s Research journal of commerce and behavioural science
–ISSN:2251-1547, Vol.1.( March 2012)pp.24-26Gupta, L.C., (1994), ‘Mutual Funds and
Asset Preference, Society for Capital Market Research and Development’, Delhi. p.123.
3. Halan, M. (2013). Why do Indians buy so much gold jewelry? HT Mint, June 13.
4. Harrison, T. (2000). Financial services marketing. Essex, England: Pearson Education
Limited.
5. J.R. Kale and V. Pachapagesan, “India mutual fund industry: Opportunities and
Challenges” Peer Reviewed journal IIMB Management Review (2012) 24, 245e258
6. Jambodekar M. V., "Marketing Strategies of Mutual Funds – Current Practices and Future
Directions", Working Paper, UTI – IIMB Centre for Capital Markets Education and
Research, Bangalore, 1996
7. Vijay C, “Mutual Funds an Overview”, Journal On Banking And Finance, Vol.XVII(4),
(April 2004), pp.24 - 27.

72

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