A Reserch Project on

“KOTAK MAHINDRA MUTUAL FUND”

Submitted to:
School of Commerce and Management
Yashwantrao Chavan Maharashtra Open University, Nashik

In partial fulfilment for the award of Master of Commerce

(M. Com-M117)

By: Rutuja Sanjay Chaudhary

PRN No: 2019017002247855

Study Centre Name:

Sonopant Dandekar College

Study Centre Code:

3502A

Under the Guidance of Prof.

Archana Vishnu Pawar

Year: 2024-2025
 Declaration by the Learner

I hereby declare that the Research project entitled “Kotak Mahindra Mutual Fund”
submitted by Rutuja Sanjay Chaudhary me for the Master of Commerce programme
of YCMOU, Nashik is the record of work carried out by me during the period from
December to January under the guidance of Prof.-Archana Pawar and has not
formed the basis for the award of any degree or diploma in this or any other University.
I further declare that the data obtained from other sources has been duly acknowledged
in this field project report.

Date: Signature of the Learner

Place:
 Certificate of the Field Project Guide

This is to certify that the work incorporated in the Research Project entitled “ Kotak
Mahindra Mutual Fund” Submitted by Rutuja Sanjay Chaudhary of the Master of
Commerce programme of YCMOU, Nashik was carried out by the learner under my
supervision/guidance.

Date: Research Supervisor/Guide

Place:
 Certificate of the Study Centre

This is to certify that the Field Project entitled“ Kotak Mahindra Mutual Fund”
submitted by Ms. Rutuja Sanjay Chaudhary of the Master of Commerce programme
of YCMOU, Nashik was carried out by the learner as per the University guidelines
and two hard bound copies this field project report has been submitted to our study
center bythe learner.

Signature of Study Centre Seal of the Study Centre

Coordinator
 Index

Sr No Content Page No
1 Introduction 1

2 Review of the Literature 5

3 Project of the Organization 7

4 Research Methodology 10

5 Data Analysis & Interpretation of Data 11

6 Findings 24

7 Suggestions 25

8 Conclusions 26

9 Bibliography 27
 Introduction

Mutual fund is a pool of funds which is divided into units of equal value and sold to
investing public and the funds so collected are utilized for collective investments in
various capitals and money market instrument. In today’s market people invest money
to gain more. So when they take into account, they mostly look out for Investment
Company where they can get more income.

Investment companies can be classified into closed-end and open-end investment

companies. Closed-end is when it is readily transferable in the market. Open-end funds
sell their own shares to investors and ready to buy back their old shares. If we talk about
the investment options today, in India we have so many investment companies like UTI,
LIC etc, all have their own special ways of servicing the customers. The investors also
feel that they are worth to be the part of that company. These days’ people mainly look
for avoiding tax so normally they look out for some investments which can help them
in doing so. When it comes to this point of view, people mainly look out for mutual
fund.

Mutual fund is a trust at law; it is a special type of managed, pooled portfolio financial
company or financial service organization that sells shares/units/stocks in itself, to the
public to obtain its resources and it invests the savings so mobilized or pooled in a large,
diversified, & sound portfolio of equity shares, bonds, money market instruments etc.,
Redeemable trust certificates are sold to investors at net asset value (NAV) plus a small
commission. All interest/dividend and principal repayments are distributed to the
holders of the certificates.

1
Meaning of Mutual Funds

Mutual fund is a pool of funds which is divided into units of equal value and sold to
investing public and the funds so collected are utilized for collective investment in
various capital and money market instrument. Investment is a commitment of a person’s
funds to derive future income in the form of interest, dividends, rent, premiums, pension
benefits or the appreciation of the value of their principal capital. Investments have a
return but there can be no return without risk.

Definitions

Different persons in different words have defined mutual fund.

The SEBI (MF) Regulations, 1993 defines mutual fund as “A fund established in the
form of a trust by a sponsor to raise money 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.”

Investment is the allocation of monetary resources to assets that are expected to

yield some gain or positive return over a given period of time. These assets range from
safe investments to risky investments. Investments in this form are also called
‘Financial Investment.

2
Characteristics of Mutual Fund

 A mutual fund actually belongs to the investors who have pooled their funds.
The ownership of the MF is in the hands of the investors.
 A MF is managed by investment professionals and other service providers, who
earn a fee for their services from the fund.
 The pool of funds is invested in a portfolio of marketable investment. The value
of the portfolio is updated every day.
 The investor’s share in the fund is denominated by units. The value of the units
changes with change in the portfolio’s value, every day. The value of one unit
of investment is called as the net assets value or NAV.
 The investment portfolio of the Mutual fund is vested according to the stated
Investment objectives of the fund.

Investment Company

A company or trust that uses its capital to invest in other companies. There are two
principal types – closed-ended and the open-ended. Shares in closed-ended investment
companies, some of which are listed on the New York Stock Exchange are readily
transferable in the open market and are bought and sold like other shares.

Open-ended funds sell their own shares to investors, stand ready to buy back their old
shares and are not listed. These funds are so called because their capitalization is not
fixed; they issue more shares as people want them.

3
Concept of Mutual Fund Industry

When an investor subscribes for the units of a mutual fund, he becomes part owner
of the assets of the fund in the same proportion as his contribution amount put up with
the corpus (the total amount of the fund). Mutual Fund investor is also known as a
mutual fund shareholder or a unit holder. Any change in the value of the investments
made into capital market instruments (such as shares, debentures etc.) is reflected in the
Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the
Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by
dividing the market value of scheme's assets by the total number of units issued to the
investors.

4
 Review of the Literature

Sandeep Bansal, Deepak Garg, and Sanjeev K. Saini (2012) examined several mutual f
und schemes to find out how Treynor's Ratio and Sharpe Ratio impacted them. Kishor
e Kumar analysed the outcomes of several mutual fund initiatives in India in January 2
014. The study's findings suggest that mutual funds outperform novice investors.

In his 2012 essay "Emerging Scenario of Mutual Funds in India," Dr. Yogesh Kumar
Mehta reports that tax funds were examined. This research takes into account a variety
of equity funds, including both public and private mutual funds.

July 2012 saw an analysis of Birla Sunlife and Reliance mutual funds' debt programm
es by scientists Drs. Surender Kumar Gupta and Sandeep Bansal. After determining th
e standard deviations and net asset values of two mutual funds, Reliance and Birla Sun
life, the study evaluates their debt plan performance using the Sharpe Index.

In 2013, Professor V. Vanaja and Dr. R. Karrupasamy examined the performance of s

pecific balanced category mutual fund schemes in India's private sector. Investors mig
ht find out about the greatest schemes out there, while AUMs could utilise it to fix fail
ed schemes and enhance their portfolios.

The 2011 NAVs of Indian mutual funds were examined by E. Priyadarshini and Dr. A
. Chandra Babu using AriMA. In this case, we model a handful of Indian mutual funds
using the ARIMA (Box-Jenkins autoregressive integrated moving average) method.

Drs. Ranjit, Anurag, and H. Ramananda Singh studied mutual funds in rural and subu
rban areas in August 2011. Mutual funds are becoming more popular among city dwel
lers as investment vehicles. You will find solutions to all of these problems. It determi
nes the relative importance of criteria including accessibility, affordability,

5
To assess how well Indian company mutual fund schemes worked, professors Kalpesh
P. Prajapati and Mahesh K.+ From 2007 to 2011, the research was conducted. Most m
utual funds turned a profit between 2007 and 2011, according to the numbers.

An empirical analysis on the performance of certain equity growth mutual funds in Ind
ia was carried out by C. Srinivas Yadav and Hemanth N. C. from June 1, 2010, to May
31, 2013, (Feb 2014).

In 2013, Rashmi Sharma and N. K. Pandya summed up the investment in mutual fund
s. This introductory study will teach you all you need to know about mutual funds, inc
luding how to determine their NAV and how to compare them to other investment alte
rnatives.

The effectiveness of a growth mutual fund was evaluated in May 2013 by Rahul Sing
al, Anuradha Garg, and Dr. Sanjay Singla. In order to determine whether growth mutu
al fund methods have been effective, this article examines twenty-five separate approa
ches. From 2004 to 2008. Discrepancies are typically not very great when compared to
other approaches, and these outputs define rank.

6
 Profile Of The Organisation

Corporate Profile

Kotak Mahindra is one of India's leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to investment banking, the group
caters to the financial needs of individuals and corporates.

Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned

subsidiary of KMBL, is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF).
KMAMC started operations in December 1998 and has over 4 Lac investors in various
schemes. KMMF offers schemes catering to investors with varying risk - return profiles
and was the first fund house in the country to launch a dedicated gilt scheme investing
only in government securities. KMMF has been registered with SEBI vide registration
number MF/038/98/1 dated 23rd June 1998.

The sponsor company, Kotak Mahindra Finance Limited (KMFL), was converted into
Kotak Mahindra Bank Limited (Kotak Bank) in March 2003 their being granted a
Banking License by Reserve Bank of India. KMFL promoted by Mr. Day S Kotak, Mr.
S.A.A. Pinto and Kotak & Co., was incorporated on November 21, 1985, under the
name Kotak Capital Management Finance Limited.

7
In early 1986, the promoters were joined by Late Mr. Harish Mahindra and Mr. Annand
G Mahindra and the Company’s name was changed to Kotak Mahindra Finance
Limited. Kotak & Co is a highly respected trading company of Mumbai, with
international business. KMFL started with a capital base of Rs.30.88 lakhs. From being
a provider of a single financial product, KMFL grew substantially during the seventeen
years of its existence into a highly diversified financial services company and has now
converted into a Bank. As on September 30, 2005, the net worth of Kotak Bank is
around Rs. 800 crore and combined with its subsidiaries, the Group net worth (before
minority interest) is around Rs. 2,000 crore. There are over 47,000 shareholders of
Kotak Bank.

The Sponsor and its subsidiaries / associates offer wide ranging financial services such
as loans, lease and hire purchase, consumer finance, home loans, commercial vehicles
and car finance, investment banking, stock broking, primary market distribution of
equity and debt products and life insurance. The group has offices in over 88 Indian
cities and also present internationally in Mauritius, London, Dubai and New York.
Kotak Mahindra (UK) Limited, an ultimate subsidiary of Kotak Bank, is the first
company owned from India to be registered with the Financial Services Authority in
UK. Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between
Kotak Bank and Old Mutual Plc based in the UK and with large presence in the South
African insurance market.

Some of the other subsidiaries of Kotak Bank are Kotak Mahindra Securities Limited,
Kotak Mahindra Prime Limited, Kotak Mahindra International Limited, Kotak
Mahindra Private-Equity Trustee Limited, Kotak Mahindra Investments Limited,
Kotak Mahindra Inc., and Kotak Forex Brokerage Limited. The Sponsor has been
consistently profitable and dividend paying company since inception. All group
companies are professionally run companies, employing over 5,000 professional staff
including CAs, MBAs and Engineers.

8
Credit recognitions and awards :

 NDTV AWARDS, 2006



 LIPPER FUND AWARDS, 2006

 ICRA AWARDS, 2006

 ICRA MFR 1 (December 2004 & December 2005)

 OUTLOOK MONEY BEST WEALTH CREATOR DEBT 2003

 CRISIL BEST FUND AWARD 2003

9
 Research Methodology

Primary Analytical Research Method was used for the study. Questionnaire was
prepared and used for collecting the data about individual investors’ preference towards
various investment avenues, their portfolio behaviors. The research required primary
and secondary source of data. The primary data is obtained through structured
questionnaires which were collected from Investors in Jahangir Banks and Brokerage
Offices such as Axis Bank, Reliance Money, Bajaj Capital etc., Secondary Data’s are
the one which is collected from web site of Kotak Mahindra, investors and company
records.

Sampling Design

The Sampling technique used in this research is Convenient Judgment Sampling

Method. Judgment Random Sampling, which by using the available information,
concerning the population, attempts to design a more efficient sample. The study
includes investors, financial institutions, investors who are interested in Kotak
Mahindra Asset Management Company’s mutual fund and also the individuals who are
interested in the investment on the mutual fund. The individuals without investment are
also included in the study.

10
 Data Analysis & Interpretation

1. To See The Respondent Is An Income Tax Assesse.

Sr No Attributes No. of respondents Percentage
1 Yes 76 76

2 No 24 24

3 Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 76% of the respondents say that
they are income tax assesses and the rest 24% say that they are not.

This is illustrated in the following graph.

Graph No.1 – To See the Respondent Is an Income Tax Assesse

80 76
70
Percentage

60
50
40
30 24
20
10
0
Yes No

Attributes

11
2. To See Whether Respondents Invest For Tax Exemption
Or Tax Savings
Sl. No. Attributes No. of respondents Percentage
1 Yes 70 70
2 No 30 30
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 70% of the respondents say that
they invest for tax exemption and the rest 30% say that they do not.

This is illustrated in the following graph.

Graph No 2. To See Whether Respondents Invest For Tax Exemption

Or Tax Savings

80
70
70
Percentage

60
50
40
30
30
20
10
0
Yes No

Attributes

12
3. Investment Preference of Respondents

Sl. No. Attributes No. of respondents Percentage

1 Fixed Deposits 33 33
2 Real Estate 27 27
3 Insurance 21 21
4 Mutual Fund 9 9
5 Gold 9 9
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 33% of the respondents invest in
fixed deposits, 27% invest in Real Estate, 21% in Insurance, 9% in Mutual Fund and
the rest 9% say that they invest in gold.

This is illustrated in the following graph.

Graph No 3. Investment Preference of Respondents

35 33
30 27
25 21
Percentage

20
15
9 9
10
5
0

Attributes

13
4. Reasons of Investment Preference of Respondents

Sl. No. Attributes No. of respondents Percentage

1 Less Risk 28 28
2 Good Returns 21 21
3 Liquidity 12 12
4 Assured Returns 36 36
5 Other Reasons 3 3
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 28% of the respondents prefer
investment due to less risk, 21% due to good returns, 12% due to liquidity, 36% due to
assured returns and the rest 3% do it due to other reasons.

This is illustrated in the following graph.

Graph No 4. Reasons of Investment Preference Of Respondents

40 36
35
30 28
Percentage

25 21
20
15 12
10
5 3
0
Less Risk Good Liquidity Assured Other
Returns Returns Reasons
Attribute

14
5. Current Investment Portfolio of Respondents

Sl. No. Attributes No. of respondents Percentage

1 Govt securities and bonds 61 61
2 Mutual funds & company 18 18
FD’s
3 Equity Shares 21 21
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 61% of the respondents invest in
Govt securities and bonds, 18% in Mutual funds and company fixed deposits and the
rest 21% in equity shares.

This is illustrated in the following graph:

Graph No 5. Current Investment Portfolio of Respondents

70
61
60
Percentage

50

40

30
21
18
20

10

0
Govt securities and bonds Mutual funds & company Equity Shares
FD’s

Attributes

15
6. Nature of Investment That the Respondents Like

Sl. No. Attributes No. of respondents Percentage

1 Steadily 61 61
2 At average rate 27 27
3 Fast 12 12
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 61% of the respondents like their
investment to grow steadily, 27% in an average rate and the rest 12% in a fast rate.

This is illustrated in the following graph.

Graph No 6. Nature of Investment That the Respondents Like

70
61
60
Percentage

50
40
30 27

20 12
10
0
Steadily At average rate Fast

Attributes

16
7. Percentage Of Income That The Respondents Invest

Sl. No. Attributes No. of respondents Percentage

1 5% 24 24
2 5% - 10% 37 37
3 More than 10% 39 39
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 24% of the respondents invest 5%
of their total income, 37% invests 5-10% and the rest 39% invest more than 10%.

This is illustrated in the following graph.

Graph No 7. Percentage of Income That the Respondents Invest

45
39
40 37
35
Percentage

30
24
25

20

15

10

0
5% 5% - 10% More than 10%

Attribute

17
8.To See Whether The Respondent Is An Investor Of Mutual
Fund

Sl. No. Attributes No. of respondents Percentage

1 Yes 27 27
2 No 73 73
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, only 27% of the respondents are
investors of mutual funds and the rest 73% are not.

This is illustrated in the following graph.

Graph No 8. To See Whether The Respondent Is An Investor Of

Mutual Fund

80
73
70

60
Percentage

50

40

30 27

20

10

0
Yes No

Attribute

18
9. Reasons For Not Investing In Mutual Funds

Sl. No. Attributes No. of respondents Percentage

1 Awareness 15 15
2 Risky 58 58
3 Returns not assured 27 27
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 15% of the respondents do not
invest in mutual funds because of lack of awareness, 58% as it is risky and the rest 27%
as the returns are not assured.

This is illustrated in the following graph.

Graph No 9. Reasons For Not Investing In Mutual Funds

70

60 58

50
Percentage

40

30 27

20 15

10

0
Awareness Risky Returns not assured

Attribute

19
10. Reasons For Investing In Mutual Funds

Sl. No. Attributes No. of respondents Percentage

1 Less Risky 21 21
2 Liquidity 30 30
3 Professional Mgmt 24 24
4 Fast Appreciation 25 25
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 21% of the respondents feel that
investing in mutual funds are less risky and hence they invest, 30% invest due to
liquidity, 24% due to Professional management and the rest 25% due to fast
appreciation.

This is illustrated in the following graph.

Graph No 10. Reasons For Investing In Mutual Funds

35
30
30
25
Percentage

24
25 21
20
15
10
5
0

Attribute

20
11. Type Of Scheme The Respondents Prefer

Sl. No. Attributes No. of respondents Percentage

1 Equity 49 49
2 Debit 42 42
3 Balance 9 9
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 49% of the respondents prefer
equity type of scheme, 42% prefer debit type of scheme and the rest 9% due to balance
type of scheme.

This is illustrated in the following graph.

Graph No 11. Type Of Scheme The Respondents Prefer

60

49
50

42
40
Percentage

30

20

9
10

0
Equity Debit Balance

Attributes

21
12. The Preference Among Different Mutual Funds

Sl. No. Attributes No. of respondents Percentage

1 UTI 25 25
2 Kotak 15 15
3 HDFC 23 23
4 Birla Sun Life 20 20
5 LIC 17 17
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 15% of the respondents prefer UTI
mutual funds, 15% prefer Kotak, 30% prefer HDFC, 19% Templeton and the rest 21%
prefer.

This is illustrated in the following graph.

Graph No 12. The Preference Among Different Mutual Funds

30

25
25 23

20
20
Percentage

17
15
15

10

0
UTI Kotak HDFC Birla Sun life LIC

Attributes

22
13. Immediate Reactions In Case Of Sudden Dip In Stock
Market

Sl. No. Attributes No. of respondents Percentage

1 Would withdraw the investment 39 39
2 Would wait and watch 55 55
3 Would invest more in it 6 6
Total 100 100

Interpretation:
It is clear from the table that out of 100 respondents, 39% of the respondents would
withdraw the investment, 55% would wait and watch the show and the rest 6% say that
they would invest more.

This is illustrated in the following graph.

Graph No 13. Immediate Reaction In Case Of Sudden Dip In Stock

Market

60 55

50
39
Percentage

40

30

20

10 6

0
Would withdraw the Would wait and watch Would invest more in it
investment

Attributes

23
 Finding

Majority of the respondents are income tax assesses and invest for the purpose of Tax
exemption or savings.

Most of the respondents prefer to invest in Fixed Deposits, Real Estate and Insurance
because of less risk and assured returns.

The investment portfolio of majority of the respondents is in govt securities and bonds.

Though mutual funds exist in the market, the people who tend to invest in it is very low
compared to other investments. The reason behind is the high risk factor involved with
Mutual Funds.

Majority of the people prefer open-ended equity scheme.

Majority of Investors prefer brand name of the company and then invest in their
schemes so UTI as gained more investors as risk is less and there is an assured return.

If there is a sudden dip in Stock Market majority of Investors doesn’t withdraw their
money instead wait for some time.

Among the surveyed Investors everyone has heard Kotak Mutual Fund and majority of
them have rated Kotak Mutual Fund schemes as Moderate.

24
 Suggestions

1. Proper care should be taken to give the correct guidance to the investors so that
they will invest more.

2. Good campaigns can be arranged so that people will know more about Mutual
Funds and will tend to invest in it.

3. Nice advertisements can be entertained so that people will get interest in Mutual
Funds.

4. Kotak can come up with good, attractive schemes for its investors.

5. Nowadays Indian Mutual Fund Industry is attracting more and more retail
investors because of economic stability and increasing growth rate, it leads to
gradual increase in the stock market indices.

6. Interest rates are falling gradually and mutual fund industry is booming because
of this reason investor can move from Bank deposits to mutual funds so mutual
fund organizations should bring new schemes to satisfy the investors.

7. Mutual fund schemes have not gained importance as there is a lack of awareness
about Mutual fund schemes so the executives of the organization should take
certain steps to educate the investors.

25
 Conclusions

The study “Investors preferences towards Mutual Funds” was carried out on behalf of
Mutual Funds of Kotak Mahindra Asset Management Company Ltd. The data was
collected from various sources and also through the tools like questionnaires and
relevant interactions with concerned persons. The needs were identified in the form of
findings and suitable suggestions were put forth in the form of recommendations to the
concerned authorities for further discussions. A few recommendations have been
considered for implementation.

 Mutual fund schemes are subject to market risk.

 On the basis of above statements, it has proved higher the risk higher the
return and lower the risk lowers the return.
 Nowadays Mutual Fund schemes are increasing because of falling
interest rates so the organization can provide further new schemes and
attract the new customers.
 Investment in Mutual fund schemes gives diversified portfolio to
investors.
 Nowadays Indian Mutual Fund industry is attracting more and more
retail investors because of economic stability and increasing growth rate,
it leads to gradual increase in the stock market Indices.

26
 Bibliography

Books

Author Book

Ronald J Jordan Management

V K Bhalla Investment Management

By I.M. Pandey Financial Management 7th Edition

L M Bhole Financial Institutions and Markets

Preethi Singh Portfolio Management

Journals and Newspapers

Business World

Mint

Financial Express

Websites

www.kotakmutual.com

wwwebi.com

www.mutualfundsindia.com

www.amfiindia.com

27