PREFACE

The preparation of this report provides a great pleasure in releasing our work and market experience in few pages which shows overall result and experienced knowledge and the practical approach about the style of a professional and think which we found various effecting to our marketing and product image.

The research termed as A STUDY OF CONSUMER PREFERENCE TOWRDS MUTUAL FUNDS WITH SPECIAL REFERENCE TO MUTUAL FUND Has made an effort to find out the issues concerning with the branded goggles.

INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS ASPECTS

Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to all investors. 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 appreciations realized are shared by its unit holders in proportion 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. A Mutual Fund is an investment tool that allows small investors access to a welldiversified portfolio of equities, bonds and other securities.
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Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time.

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.

ADVANTAGES OF MUTUAL FUND

Portfolio Diversification Professional management Reduction / Diversification of Risk Liquidity Flexibility & Convenience Reduction in Transaction cost Safety of regulated environment Choice of schemes Transparency

DISADVANTAGE OF MUTUAL FUND

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No control over Cost in the Hands of an Investor No tailor-made Portfolios Managing a Portfolio Funds Difficulty in selecting a Suitable Fund Scheme

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the Industry. In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity
6

wise. Before, the monopoly of the market had seen an ending phase; the Assets Under Management (AUM) was Rs67 billion. The private sector entry to the fund family raised the Aum to Rs. 470 billion in March 1993 and till April 2011; it reached the height if Rs. 1540 billion. The Mutual Fund Industry is obviously growing at a tremendous space with the mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under.

First Phase 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.

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

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).
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UTI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had assets under management of Rs.47,011 crores. Third Phase 1993-2003 (Entry of Private Sector

Funds)
1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,811 crores.

Fourth Phase since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities.
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One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes The second is the UTI Mutual Fund Ltd, sponsored by UTI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. consolidation and growth. As at the end of September, 2011, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

CATEGORIES OF MUTUAL FUND:

10

Mutual funds can be classified as follow:

11

 Based on their structure:

Open-ended funds: Investors can buy and sell the units from the fund, at any point of time.

Close-ended funds: These funds raise money from investors only once. Therefore, after the offer period, fresh investments can not be made into the fund. If the fund is listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, most of the New Fund Offers of close-ended funds provided liquidity window on a periodic basis such as monthly or weekly. Redemption of units can be made during specified intervals. Therefore, such funds have relatively low liquidity.

Based on their investment objective:

Equity funds: These funds invest in equities and equity
related instruments. With fluctuating share prices, such funds show volatile performance, even losses. However, short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have outperformed all asset classes in the long term. Hence, investment in equity funds should be considered for a period of at least 3-5 years. It can be further classified as:

12

i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the

benchmark index both in terms of composition and individual stock weightages. ii) Equity diversified funds- 100% of the capital is invested in equities spreading across different sectors and stocks. iii|) Dividend yield funds- it is similar to the equity diversified funds except that they invest in companies offering high dividend yields. iv) Thematic funds- Invest 100% of the assets in sectors which are related through some theme. e.g. -An infrastructure fund invests in power, construction, cements sectors etc. v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will invest in banking stocks. vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

Balanced fund: Their investment portfolio includes both

debt and equity. As a result, on the risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal
13

mutual funds vehicle for investors who prefer spreading their risk across various instruments. Following are balanced funds classes: i) Debt-oriented funds -Investment below 65% in equities. ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.

Debt fund: They invest only in debt instruments, and are a

good option for investors averse to idea of taking risk associated with equities. Therefore, they invest exclusively in fixedincome instruments like bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds depending on your investment horizon and needs. i) Liquid funds- These funds invest 100% in money market instruments, a large portion being invested in call money market. ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills.

14

iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate. iv) Arbitrage fund- They generate income through arbitrage opportunities due to mis-pricing between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities. v) Gilt funds LT- They invest 100% of their portfolio in long-term government securities. vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term debt papers. vii) MIPs- Monthly Income Plans have an exposure of 70%90% to debt and an exposure of 10%-30% to equities. viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.

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INVESTMENT STRATEGIES
1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of a month. Payment is made through post dated cheques or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA) 2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund. 3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month.

16

RISK V/S. RETURN:

17

18

19

Scope of the study

A big boom has been witnessed in Mutual Fund Industry in resent times. A large number of new players have entered the market and trying to gain market share in this rapidly improving market. The research was carried on in Mathura. I had been sent at one of the branch of State Bank of India Mathura where I completed my Project work. I surveyed on my Project Topic A study of preferences of the Investors for investment in Mutual Fund on the visiting customers of the Branch. The study will help to know the preferences of the customers, which company, portfolio, mode of investment, option for getting return and so on they prefer. This project report may help the company to make further planning and strategy.

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OBJECTIVES OF THE STUDY

1. To find out the Preferences of the investors for Asset Management Company. 2. To know the Preferences for the portfolios. 3. To know why one has invested or not invested in UTI Mutual fund 4. To find out the most preferred channel. To find out what should do to boost Mutual Fund Industry

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INTRODUCTION TO UTI FUND

Funds Our Funds FUNDS CATEGORY

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Fund Name Since Launch

Last 1 Yr.

3 Yr.

UTI Balanced Fund (Balanced) UTI Banking Sector Fund UTI Bond Fund (Debt) UTI CCP Advantage Fund UTI Children's Career Plan (Balanced) UTI Contra Fund UTI CRTS UTI Dividend Yield Fund UTI Energy Fund UTI Equity Fund UTI Equity Tax Saving Plan UTI Floating Rate Fund UTI GILT Advantage Fund

67.62% 114.19% 2.79% 48.38%

10.27% 19.47% 6.89%

17.09% 22.47% 8.53% 22.33%

33.09%

8.51%

11.76%

75.72% 28.75% 86.39% 74.14% 86.18% 73.94% 5.27% -0.60%

12.68% 12.66% 20.26%

6.48% 10.74% 22.57% -24.12%

14.48% 7.44% 7.15% 7.86%

11.60% 18.22% 6.38% 8.25%

23

UTI G-Sec Fund (Debt) (IP) UTI G-Sec Fund (Debt) (STP) UTI India Lifestyle Fund UTI Infrastructure Advantage Fund -I UTI Infrastructure Fund UTI Leadership Equity Fund UTI Liquid Fund Cash Plan UTI Long Term Advantage Fund Series I UTI Long Term Advantage Fund Series II UTI Mahila Unit Scheme UTI Master Equity Plan Unit Scheme UTI Master Index Fund (EquityIndex)

-1.00% 1.19% 73.51%

4.60% 5.51%

7.67% 5.16% -1.45

58.36%

-6.13%

66.95% 73.93% 4.77%

8.99% 6.01

24.74% 8.36% 6.81%

92.09%

5.35%

75.00%

11.95%

25.29%

12.11%

16.03%

70.09%

9.29%

28.99%

83.71%

7.62%

14.91%

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UTI Master Plus (Equity) UTI Master Value Fund UTI Mastershare UTI Mid Cap Fund UTI MIS Advantage Plan UTI MNC Fund UTI Money Market Fund (Liquid) UTI Monthly Income Scheme UTI Nifty Index Fund (Equity Index) UTI Opportunities Fund UTI Pharma & Healthcare Fund UTI Retirement Benefit Pension Fund UTI Services Industries Fund

71.87% 131.19% 74.00% 129.45% 21.29% 80.94% 4.69% 16.78%

5.42% 14.78% 12.64% 9.63% 10.67% 12.54% 7.11% 10.30%

13.76% 22.90% 16.24% 20.35% 10.67% 16.66% 7.59% 8.51%

75.85%

8.56%

11.87%

94.21% 81.13%

19.99% 14.11%

19.56% 14.09%

30.76%

10.90%

11.87%

102.20%

4.24%

24.66%

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UTI Short Term Income Fund UTI Spread Fund UTI Sunder UTI Top 100 Fund UTI Transportation & Logistics Fund UTI Treasury Advantage Fund UTI ULIP UTI Variable Investment Scheme UTI Wealth Builder UTI Wealth Builder Fund Ser - II

9.47% 5.66% 77.44%

8.86% 8.24% 10.46%

6.93% 8.14% 25.65% 17.41%

126.83%

25.94%

4.67% 36.62% 38.81% 92.58% 61.02%

7.40% 13.18% -1.15% 13.35%

8.27% 10.97% 8.79% 11.69% 47.61%

Compare Funds
Compare Funds is a tool specifically designed to help our esteemed investors compare any two schemes under the various mutual funds offered by UTI Mutual Funds.

Investors can gauge the Type of Scheme, Scheme Objective, Asset Allocation, Entry and Exit Load, etc. among other categories and

26

parameters. This tool helps our investors to compare and analyze funds and choose the one that best suits their investment requirements.

Dividends
In order to find out the Dividend of any fund issued in the past, fill in the name of the fund and the dates. Click on submit to get the results.

Portfolio Allocation
Portfolio Allocation This section informs an investor on the percentage of investments allocated to each Fund portfolio. Each fund portfolio can include a variety of investments like domestic and foreign stocks, bonds, government securities, gold bullion and real estate stocks in a right mix depending on the nature or the the investment objective of a particular fund.

Navs

Latest NAVs
The following list contains the Net Asset Values of the various mutual fund schemes offered by UTI Mutual Funds. The displayed schemes present the inception date of the scheme, the latest NAVs, sale price and repurchase price. The following list contains the Net Asset Values of the various mutual fund schemes offered by UTI Mutual Funds. The displayed schemes present the inception date of the scheme, the latest NAVs, sale price and

27

repurchase price.

LATEST NAVs Product/Plan Date NAV Sale Price Repurchase Price

+ UTI-Liquid Cash Plan Monthly Retail Growth Institutional 10/01/2011 1031.2639 1031.2639 1031.2639

10/01/2011

1212.4916 1212.4916 1212.4916

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Weekly Institutional Income Retail Growth Retail Income Institutional Monthly Institutional +

10/01/2011

1023.5168 1023.5168 1023.5168

10/01/2011

1018.3098 1018.3098 1018.3098

10/01/2011

1206.1148 1206.1148 1206.1148

10/01/2011

1019.4457 1019.4457 1019.4457

10/01/2011

1026.8835 1026.8835 1026.8835

Growth Retail 10/01/2011 Income Retail 10/01/2011 + UTI-Money Market Fund GROWTH RETAIL INCOME RETAIL DAILY DIVIDEND 10/01/2011

12.1116 12.1116 12.1116 10.2755 10.2755 10.2755

20.6892 20.6892 20.6892

10/01/2011

17.6456 17.6456 17.6456

10/01/2011

17.5238 17.5238 17.5238

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+ UTI-Bond Fund GROWTH RETAIL INCOME RETAIL 10/01/2011 21.5785 21.5785 21.5785

10/01/2011

10.8607 10.8607 10.8607

+ UTI-Children Career Plan (Bond) INCOME RETAIL GROWTH RETAIL 10/01/2011 11.1172 11.1172 11.1172

10/01/2011

11.1173 11.1173 11.1173

+ UTI-Floating Rate Fund STP Growth Option Dividend Option 10/01/2011 1203.4485 1203.4485 1203.4485

10/01/2011

1015.8009 1015.8009 1015.8009

+ UTI-Gilt Advantage Fund LTP Dividend Plan 10/01/2011 Growth Plan Provident Fund Redemption 10/01/2011 10/01/2011 10.7282 10.7282 10.7282 15.2757 15.2757 15.2757 11.3633 11.3633 11.3633

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Provident Fund- Dividend Plan Provident Fund- Growth Plan

10/01/2011

10.6809 10.6809 10.6809

10/01/2011

11.3594 11.3594 11.3594

Provident Fund Appreciation R

10/01/2011

11.3774 11.3774 11.3774

+ UTI-G-SEC STP INCOME RETAIL GROWTH RETAIL 10/01/2011 10.6030 10.6030 10.6030

10/01/2011

11.5776 11.5776 11.5776

+ UTI-India Advantage Equity Fund Dividend Plan 10/01/2011 Growth Plan 10/01/2011 8.3100 8.3100 8.3100 8.3100 8.5000 8.5000

+ UTI-Variable Investment Scheme Growth Option 10/01/2011 16.0001 16.0001 16.2401

31

Income Option

10/01/2011

13.2603 13.2603 13.4592

+ UTI-Master Index Fund Income Option Growth Option 10/01/2011 41.9348 41.9348 41.9348

10/01/2011

41.9347 41.9347 41.9347

+ UTI-Transportation and Logistics Fund (formerly as UTI Auto Sector Fund) Income Option Growth Option 10/01/2011 15.6000 15.6000 15.9500

10/01/2011

19.5000 19.5000 19.9400

+ UTI-Banking Sector Fund Income Option Growth Option 10/01/2011 16.8100 16.8100 17.1900

10/01/2011

19.9900 19.9900 20.4400

+ UTI-Mahila Unit scheme 10/01/2011 27.4944 27.4944 27.4944

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+ UTI-G-Sec-Investment Plan INCOME RETAIL GROWTH RETAIL 10/01/2011 10.5009 10.5009 10.5009

10/01/2011

19.0824 19.0824 19.0824

+ UTI-Treasury Advantage Fund Quarterly Dividend Plan Institutional Plan- Bonus Annual Dividend Plan Bonus Plan Growth Plan 10/01/2011 11.1154 11.1154 11.1154

10/01/2011

11.4617 11.4617 11.4617

10/01/2011 10/01/2011 10/01/2011

11.3995 11.3995 11.3995 12.4810 12.4810 12.4810 18.7236 18.7236 18.7236

+ UTI-Monthly Income Scheme INCOME RETAIL GROWTH RETAIL 10/01/2011 10.8755 10.8755 10.8755

10/01/2011

13.7265 13.7265 13.7265

+ UTI-Mis Advantage Plan

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Monthly Payment Plan Monthly Dividend Plan Flexi Dividend Plan Growth Plan

10/01/2011

13.9526 13.9526 13.9526

10/01/2011

11.9821 11.9821 11.9821

10/01/2011 10/01/2011

13.9685 13.9685 13.9685 13.9685 13.9685 13.9685

+ UTI-Index Select Fund Income Option Growth Option 10/01/2011 22.4500 22.4500 22.9600

10/01/2011

33.2700 33.2700 34.0200

+ UTI-Nifty Index Fund Income Option Growth Option + UTI-Sunder 10/01/2011 + UTI-Infrastructure Fund 392.6167 392.6167 392.6167 10/01/2011 24.5748 24.5748 24.5748

10/01/2011

24.5747 24.5747 24.5747

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Growth Option Income Option

10/01/2011

27.9700 27.9700 28.6000

10/01/2011

20.4500 20.4500 20.9100

+ UTI-Dynamic Equity Fund Growth Plan 10/01/2011 35.5800 35.5800 36.3800 19.4400 19.4400 19.8800

Dividend Plan 10/01/2011 + UTI-Equity Tax Savings Plan Income Option Growth Option 10/01/2011

18.6900 18.6900 19.1100

10/01/2011

30.4300 30.4300 31.1100

+ UTI-Growth & Value Fund Annual Dividend Plan Growth Semi-Annual Dividend Plan 10/01/2011 10/01/2011 10/01/2011 22.8400 22.8400 23.3500 56.4900 56.4900 57.7600 15.9500 15.9500 16.3100

+ UTI-Growth Sector Fund - Brand Value Income 10/01/2011 20.1400 20.1400 20.5900

35

Option Growth Option + Income Option Growth Option 10/01/2011 18.0800 18.0800 18.4900 10/01/2011 26.3300 26.3300 26.9200

10/01/2011

25.8000 25.8000 26.3800

+ UTI-Pharma & Healthcare Fund Income Option Growth Option 10/01/2011 19.5800 19.5800 20.0200

10/01/2011

22.2100 22.2100 22.7100

+ UTI-Growth Sector Fund - Services Income Option Growth Option 10/01/2011 36.1100 36.1100 36.8600

10/01/2011

48.7900 48.7900 49.8900

+ UTI-Growth Sector Fund - Software Growth 10/01/2011 27.7600 27.7600 28.3800

36

Option Income Option 10/01/2011 23.3500 23.3500 23.8800

+ UTI-Large Cap Fund Income Option Growth Option 10/01/2011 16.9100 16.9100 17.2900

10/01/2011

19.4000 19.4000 19.8400

+ UTI-Master Equity Plan Unit Scheme 10/01/2011 + UTI-Master Plus Unit Scheme Growth Option Income Option 10/01/2011 64.4500 64.4500 65.9000 39.2000 39.2000 0.0000

10/01/2011

49.4400 49.4400 50.5500

+ UTI-Master Value Fund Income Option Growth Option 10/01/2011 19.6000 19.6000 20.1100

10/01/2011

30.1100 30.1100 30.7300

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+ UTI-Equity Fund (Formerly UTI-Mastergain Unit Scheme) Income Option Growth Option 10/01/2011 29.5400 29.5400 30.2000

10/01/2011

31.9100 31.9100 32.6300

+ UTI-Top 100 Fund(earlier known as Mastergrowth) Income Option Growth Option 10/01/2011 40.0900 40.0900 40.9900

10/01/2011

43.4800 43.4800 44.4600

+ UTI-Master share Unit Scheme Income Option Growth Option 10/01/2011 27.0100 27.0100 27.6200

10/01/2011

33.5300 33.5300 34.2800

+ UTI-Mid Cap Fund Growth Option Income Option 10/01/2011 22.8500 22.8500 23.3600

10/01/2011

19.3500 19.3500 19.7900

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+ UTI-MNC Fund Income Option Growth Option + UTI-Psu Fund Income Option Growth Option 10/01/2011 14.5000 14.5000 14.8300 10/01/2011 28.6600 28.6600 29.3000

10/01/2011

34.5000 34.5000 35.2800

10/01/2011

15.9800 15.9800 16.3400

+ UTI-Balanced Fund GROWTH RETAIL INCOME RETAIL 10/01/2011 54.9600 54.9600 56.2000

10/01/2011

21.7300 21.7300 22.2200

+ UTI-Retirement Benefit Pension Fund 10/01/2011 + UTI-Unit Link Insurance Plan 10/01/2011 15.6449 15.6449 15.6449 19.5797 19.5797 19.8734

+ UTI-Children Career Plan(Balanced)

39

10/01/2011

14.9206 14.9206 15.2190

+ UTI-Charitable, Religious Trust And Registered Society 10/01/2011 + UTI-Dividend Yield Fund Income Growth 10/01/2011 10/01/2011 12.1800 12.1800 12.4500 15.5800 15.5800 15.9300 108.9283 108.9283 108.9283

+ UTI-Opportunities Fund INCOME RETAIL GROWTH RETAIL 10/01/2011 12.0100 12.0100 12.2800

10/01/2011

13.6700 13.6700 13.9800

+ UTI-Fixed Term Income Fund Series I-Plan 18 (18 Months Plan) Dividend Option 10/01/2011 10.6382 10.5584 0.0000 10.6391 10.5593 0.0000

Growth option 10/01/2011 + UTI-Leadership Equity Fund Dividend option 10/01/2011

12.1100 12.1100 12.3200

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Growth Option

10/01/2011

12.1100 12.1100 12.3200

+ UTI-Contra Fund Dividend option Growth Option 10/01/2011 9.7100 9.7100 9.9300

10/01/2011

9.7100 9.7100

9.9300

+ UTI-Fixed Term Income Fund Series I - Plan18 - Q4 Dividend Option 10/01/2011 10.6834 10.4697 0.0000 10.6834 10.4697 0.0000

Growth option 10/01/2011 + UTI-SPREAD Fund Dividend option Growth Option 10/01/2011

10.3878 10.3878 10.3878

10/01/2011

10.3878 10.3878 10.3878

+ UTI-FMP Yearly Series Jun 2011 Dividend Option 10/01/2011 10.4087 10.3116 0.0000 10.4087 10.3116 0.0000

Growth option 10/01/2011

41

+ UTI-Wealth Builder Fund Dividend option Growth Option 10/01/2011 10.3200 0.0000 0.0000

10/01/2011

10.3200 0.0000

0.0000

+ UTI-FMP Yearly Series Aug 2011 Income Retail 10/01/2011 Growth Retail 10/01/2011 10.3062 10.2031 0.0000 10.3062 10.2031 0.0000

+ UTI-FMP Yearly Series Oct 2011 Growth Retail 10/01/2011 Income Retail 10/01/2011 10.1272 9.8234 10.1272 9.8234 0.0000 0.0000

+ UTI-FMP Quarterly November, 2011 Series - I Dividend Option 10/01/2011 10.1344 9.9317 10.1344 9.9317 0.0000 0.0000

Growth option 10/01/2011 + UTI-FMP Yearly Series Sep 11 Growth option 10/01/2011 Income Option 10/01/2011

10.2441 9.9368 10.2441 9.9368

0.0000 0.0000

42

+ UTI-FMP Quarterly Oct 2011 - II Income Option Growth Option 10/01/2011 10.1723 9.9689 0.0000

10/01/2011

10.1722 9.9688

0.0000

+ UTI-FMP Quarterly November, 2006 Series - II Dividend Option 10/01/2011 10.0907 9.8889 10.0907 9.8889 0.0000 0.0000

Growth option 10/01/2011

+ UTI-FMP Quarterly Sep 2011- II Income Option Growth Option 28/12/2011 10.0061 9.8060 0.0000

28/12/2011

10.1926 9.9887

0.0000

+ UTI-FMP Quarterly August, 2011 Series - II Income Option 01/12/2011 10.0072 9.9572 0.0000

Growth option 01/12/2011 + UTI-Unit Scheme 2011 INCOME 21/11/2011

10.1863 10.1354 0.0000

13.8100 0.0000

0.0000

43

RETAIL GROWTH RETAIL 21/11/2011 13.8100 0.0000 0.0000

+ UTI-FMP Yearly Series Sep 11 Income Retail 10/11/2011 Growth Retail 10/11/2011 + UTI-FMP Yearly Series July 11 Income Retail 11/09/2011 Growth Retail 11/09/2011 10.0618 9.9612 0.0000 10.0314 9.9311 0.0000

10.6342 10.5279 0.0000

10.6566 10.5500 0.0000

+ UTI-FMP Quarterly May, 2011Series - II Growth option 31/08/2011 Dividend Option 31/08/2011 10.1732 10.1223 0.0000 10.0166 9.9665 0.0000

+ UTI-FMP Quarterly March, 2011 Series - I Growth option 26/06/2011 Dividend Option 26/06/2011 10.2162 10.2162 0.0000 10.0225 10.0225 0.0000

+ UTI-FMP Quarterly Feb 11 - Series II Dividend 29/11/2011 10.0232 9.9731 0.0000

44

Option Growth option 29/11/2011 10.1948 10.1438 0.0000

+ UTI-FMP Quarterly January, 2011 Series - II Dividend Option 11/11/2011 10.0242 9.9741 0.0000

Growth option 11/11/2011 + UTI-FMP Yearly Series Feb 11 Income Retail 10/11/2011 Growth Retail 10/11/2011

10.1874 10.1365 0.0000

10.0080 9.9079

0.0000

10.6599 10.5533 0.0000

+ UTI-FMP Quarterly December 2011 - I Dividend Option 23/03/2011 10.0111 9.9611 0.0000

Growth option 23/03/2011

10.1625 10.1117 0.0000

+ UTI-FMP Quarterly November 2011 - II Dividend option Growth Option 27/02/2011 10.0182 9.9681 0.0000

27/02/2011

10.1613 10.1111 0.0000

+ UTI-Fixed Maturity Plan-Yrly Nov11 (DP)

45

02/01/2011

10.1139 9.9534

0.0000

+ UTI-Fixed Maturity Plan-Yrly Nov11 (GP) 02/01/2011 + UTI-Grandmaster Unit Scheme 15/07/2011 + UTI-Master Equity Plan 2011 15/07/2011 + UTI-Master Equity Plan 2011 15/07/2011 + UTI-PEF Unit Scheme 15/07/2011 + UTI-Unit Scheme 2011 15/07/2011 + UTI-Liquid Advantage Fund Dividend Reinv Plan 30/06/2011 1006.4856 1006.4856 1006.4856 1250.9727 1250.9727 1250.9727 32.3700 31.7200 0.0000 27.2100 27.2100 27.8200 34.8400 34.1400 0.0000 19.9900 19.5900 0.0000 23.6300 23.6300 24.1600 10.6668 10.5601 0.0000

Growth Plan 30/06/2011

+ UTI-Bond Advantage Fund STP

46

Dividend Reinvestment Plan Growth Plan

30/06/2011 30/06/2011

10.1967 10.1967 10.1967 12.2634 12.2634 12.2634

+ UTI-Gilt Advantage Fund STP Growth Plan 30/06/2011 13.5140 13.5140 13.5140 10.7610 10.7610 10.7610

Dividend Plan 30/06/2011

+ UTI-Index Advantage Fund (NIFTY) 30/06/2011 13.4788 13.4788 13.4788

+ UTI-Index Advantage Fund (SENSEX) 30/06/2011 13.8949 13.8949 13.8949

+ UTI-FMP Quarterly March 2011 - II Income Retail 30/06/2011 Growth Retail 30/06/2011 10.0087 9.9086 0.0000

10.1454 10.1139 0.0000

+ UTI-FMP Quarterly February 2011 - I Income Retail 20/11/2011 Growth Retail 20/11/2011 + Senior Citizens Unit Plan 29/11/2011 14.8606 0.0000 0.0000 10.0119 9.9618 0.0000

10.1378 10.0871 0.0000

47

+ UTI-FMP Quarterly January2011 - I (GR) 25/11/2011 10.1492 10.0985 0.0000

+ UTI-FMP Quarterly January2011 - I (IR) 25/11/2011 10.0150 9.9649 0.0000

+ UTI-FMP QUATERLY DEC2011-I Div Gr 21/03/2011 21/03/2011 10.0098 10.0098 0.0000 10.1424 10.1424 0.0000

+ UTI-Fixed Maturity Plan(Jan2011) 18/02/2011 10.6068 10.6068 0.0000

+ UTI-Fixed Maturity Plan Qrtly Nov11 11/02/2011 + MIP -2000(III) Annual Cumulative Monthly + MIP-2001 Annual Cumulative 20/01/2011 20/01/2011 10.5552 0.0000 10.7530 0.0000 10.5552 10.7530 20/01/2011 20/01/2011 20/01/2011 9.7773 0.0000 9.7773 10.0986 9.3021 10.1419 10.1419 0.0000

10.0986 0.0000 9.3021 0.0000

48

Monthly + MIP -2011(II) Annual Cumulative Monthly

20/01/2011

9.9431

0.0000

9.9431

20/01/2011 20/01/2011 20/01/2011

9.5448 0.0000 9.9979 0.0000 9.0616 0.0000

9.5448 9.9979 9.0616

+ UTI-Fixed Maturity Plan Quarterly -August-11 03/12/2011 + 01/11/2011 16.4993 0.0000 0.0000 10.1173 0.0000 10.1173

+ UTI-Fixed Maturity Plan Quarterly -July-11 01/11/2011 10.1239 0.0000 10.1239

Statutory : Past Performance may or may not be sustained. As with any investments in securities, the NAV of Units issued under the Schemes can go up or down depending on the factors and forces affecting the securities market in general. Historic NAVs In order to find out the NAV of any fund issued in the past, fill in the name of the fund and the dates. Click on submit to get the results. Mail Back If order to receive NAVs of UTI Mutual funds through our mail back
49

service, select the name of the scheme and the format in which you would like to receive these details

HEAD OFFICE Addresses

UTI Mutual Fund - Corporate Head Office UTI Tower , 'GN' Block, Bandera Kurla Complex, Bandera (E), Mumbai 400111. Tel: +91 (022) 6678 6666 Email: service@uti.co.in

50

Careers UTI AMC, a pioneer in the mutual fund industry is executing an ambitious plan to expand its marketing activities in India.

To realize these plans, the Company is now looking for energetic, self-paced professionals to support our efforts in empowering people.

At UTI AMC, we are committed to provide a work environment where our employees take pride in what they do. We provide a nurturing environment that gives ample scope to grow professionally and personally. If you have the passion to see beyond the obvious, we have a place for you. We are seeking passionate professionals to be a part of our team.

Work culture

51

We believe in providing an environment that encourages employees to achieve and fulfill personal goals and that of the company. When the combined force of both, the employees and the company flow in one direction, there is ample amount of possibilities, opportunities and growth. The work culture at UTI Mutual Fund is simple work is priority and the rest follows. Our relationship with our employees works both ways, they give their best and we give them the best, we strike the right balance at work.

Employee Benefits
Competitive salaries Comfortable work environment Career opportunities Insurance benefits Recreational amenities

Introduction: Jan 14, 2003 is when UTI Mutual Fund started to pave its
path following the vision of UTI Asset Management Company Private Limited. Click here for a brief overview of UTI Mutual Funds

Vision
To be the most Preferred Mutual Fund.

Our mission is to make UTI Mutual Fund:

The most trusted brand, admired by all stakeholders
52

 The largest and most efficient money manager with global presence The best in class customer service provider The most preferred employer The most innovative and best wealth creator A socially responsible organization known for best corporate governance

Genesis
January 14, 2003 is when UTI Mutual Fund started to pave its path following the vision of UTI Asset Management Co. Ltd. (UTIAMC), which was appointed by UTI Trustee Co, Pvt. Ltd. for managing the schemes of UTI Mutual Fund and the schemes transferred/migrated from the erstwhile Unit Trust of India. UTIAMC provides professionally managed back office support for all business services of UTI Mutual Fund in accordance with the provisions of the Investment Management Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives of the schemes. State-of-the-art systems and communications are in place to ensure a seamless flow across the various activities undertaken by UTIMF. Since February 3, 2011, UTIAMC is also a registered portfolio manager under the SEBI (Portfolio Managers) Regulations, 1993 for undertaking portfolio management services. UTIAMC also acts as the manager and marketer to offshore funds through its 100 % subsidiary, UTI International Limited, registered in Guernsey, Channel Islands.

Trustee: UTI Trustee Company Private Limited, a company incorporated

under The Companies Act, 1956 will be the Trustee of transferred/migrated schemes are the first and sole trustee of the Mutual Fund under the Trust Deed
53

dated December 9, 2002 executed between the Sponsors and the Trustee Company (the Trustee)

Trustee

UTI Trustee Company Private Limited a company incorporated under

The Companies Act, 1956 will be the Trustee of transferred/migrated schemes are the first and sole trustee of the Mutual Fund under the Trust Deed dated December 9, 2002 executed between the Sponsors and the Trustee Company (the Trustee).

Registered office:
UTI Tower, Gn Block, Bandra - Kurla Complex, Bandra (East), Mumbai 400 111

Trustee Shri Janki Ballabh, Chairman, Former Chairman, UTI Flat No. 611, Versova Vinayak Co-op. Hsg. Soc., HSG Plot No. Dr. P G Apte Director, Indian Institute of Management, Bangalore, 415, IIMB Campus,

54

8, Near Versova Telephone Exchange, Versova, Andheri (W), Mumbai 400 113 Shri S P Oswal Chairman & Managing DirectorVardhman Textiles Ltd. Auro Mirra Bhawan, 2722, Gurdev Nagar, Pakhowal Road, Ludhiana. Shri Ashok K Kini Flat No. B-202, Mantri Pride Apartment, 1st Cross Mountain Road, Jayanagar, 1st Block, Bangalore - 560011 Prof P V Ramana

Bannerghatta Road, Bangalore - 560 076

Shri Babasaheb Neelkanth Kalyani Chairman & Managing Director Bharat Forge Limited 'Amit' 221/A, Kalyani Nagar, Yerawada, Pune - 411 006

Shri S Ravi Senior Partner,Ravi Rajan & Co. Chartered Accountants D-218, Saket, New Delhi - 110 017

Chairman, ITM Business School, Kharghar Bungalow No 12, Gulab View, Near Chembur, Mumbai - 400 071

Key People
55

Mr. U.K. Sinha Mr. Satish Chandra Dikshit Mr. Rama Mohan Rao Mr. Anoop Bhaskar Mr. Asish Ranawade Mr. Manas Lal Mitra

Mr. Jaideep Bhattacharya Mr. Imtaiyazur Rahman Mr. T.N.Radhakrishna Mr. Amandeep Singh Chopra Mr. S.L.Pandian

Mr U.K. Sinha Mr. U K Sinha has a M.Sc. and LLB degree. He was the Joint Secretary, Department of Economic Affairs, Ministry of Finance, for the period June 2002 to October 2011 looking after the Capital Market, External Commercial Borrowing, Pension Reforms and Foreign Exchange Management functions in the Ministry. He was responsible for drafting the SEBI (Amendment) Act, 2002, UTI (Repeal) Act, 2002, the Securities Law Amendment Act, 2011 and the PFRDA Bill 2011.

Earlier, he was Joint Secretary in the Banking Division of the Ministry of Finance dealing with the financial institutions. He has been on the Board of Directors of SIDBI, IFCI, Bank of Baroda, Central Bank of India, UTI AMC and the Pension Funds Regulatory & Development Authority.

56

He started as a probationary officer in the State Bank of India where he served for three years. He was also the Managing Director of the State Credit and Investment Corporation at Mathura.

He has been associated with UTI AMC since 2011 as its Chairman and Managing Director.

Mr. Jaideep Bhattacharya

Mr. Jaideep Bhattacharya is an MA in Economics. He has more than 21 years of work experience with over 16 years in financial sector. He has vast experience in Banking, Products, Channels and Marketing of financial services. He has earlier worked with Foreign Banks in various divisions. Before joining UTI AMC, he was the Country Head of the largest Private Sector Bank, in-charge of Products, Channels and Marketing for the Small and Medium Enterprise Group. He is designated as a Director in the Board of AMFI. He is also a member of SEBI - Advisory Committee of Mutual Funds. He has been with UTI AMC since 2006 and is functioning as the Chief Marketing Officer.

Mr. Satish Chandra Dikshit

57

Mr. Satish Chandra Dikshit is a B.Sc., M.A and LLB. He has over three decades post qualification experience of legal / regulatory matters in its diverse branches covering a wide gamut of Corporate, Industrial, Commercial, Economic & Fiscal Laws. Prior to joining UTI he has worked with Employees State Insurance Company of India, U.P. State Spinning Mills and Northern Leasing Industries Ltd. He has also been member of Committees constituted by FIs (on legal documentation)/AMFI (concerning MF industry). He has been with UTI AMC since 1989 and is presently in charge of the legal affairs of the company as its Chief Legal Advisor. He is also the Chief Vigilance Officer and the Head of the department of Risk Management

Mr. Imtaiyazur Rahman

Mr. Imtaiyazur Rahman is a B.Sc. graduate with FICWA, FCS and CPA (USA). He has over 17 years of experience in Finance, Accounts, Taxation, Administration, IT, Operations, HR and Secretarial functions. Prior to joining UTI, he has worked with Bells Controls Ltd., Leasing Finance India Ltd., Sumeet Machines Ltd. and UTI TSL. He has been with UTI AMC since 2003 as Company Secretary and is looking after the Investment Accounts, AMC-Accounts, Information Technology and Secretarial Functions of UTI Mutual Fund.

He is presently the Chief Financial Officer, the Company Secretary and

58

Head-Department of Administration & IT and Department of Funds Management (Dealing Section-Administration)

Mr. Rama Mohan Rao

Mr. Rama Mohan Rao is a Chartered Accountant and a CAIIB. He has been with UTI AMC since 1980 and has served in different capacities as Branch Manager, Manager in Primary Market Investment division, Chief Investment Officer for Balance funds. He was on deputation to UTI Securities Exchange Ltd. as the Managing Director for 5 years (July, 2002 to April, 2007). He is presently functioning as the Head of the Department of Internal Audit & Compliance and Project Management Office.

Mr. Anoop Bhaskar

Mr. Anoop Bhaskar is a B.Com graduate from the Delhi University and a MBA (Finance) from SIBM, Pune.

He has over 16 years of experience in the Finance & Research. Prior to joining UTI AMC, Mr. Bhaskar has worked with Sundaram Asset

59

Management, Chennai as Head-Equity, Templeton Asset Management as Senior Research Analyst, Shriram Financial Services Ltd. as ManagerInvestments, Brisk Financial Services and Cross Borders Finance & Project. Mr. Bhaskar has assumed the role of Head- Equity at UTI AMC since April, 2007.

Mr. Amandeep Singh Chopra

Mr. Amandeep Singh Chopra is a graduate from St. Stephens College, Delhi and an MBA from FMS, Delhi. Prior to joining UTI he has worked with Aaina Exports Ltd. as a production co-ordinator and at Stenay Ltd. as a Quality Control Inspector. He has been with UTI AMC since 1994 and has been responsible for increasing the asset value in some of the select funds. He has achieved CPR1 and CPR2 ranking for several funds as a Fund Manager. Three of his funds namely UTI Liquid Cash Plan, UTI liquid Cash Plan-Institutional and UTI Bond Fund has been awarded CNBC TV-18 Crisil Mutual Award. Presently, he is functioning as the Head of Fixed Income.

Mr. Ashish Ranawade

60

Mr. Ashish Ranawade is currently heading the Portfolio Management Services Division of UTI AMC. He is a B.E.( Electronics) from VJTI in Mumbai and M.M.S. (Finance) from Jamnalal Bajaj Institute, Mumbai.

He joined UTI in 1994 and worked as a credit analyst till May 1999, where-in he handled rating assignments for over 300 companies across various industries. He was made the fund manager for balanced funds in May 1999 and handled funds of over Rs 4000 crores. In the year 2000, he moved to offshore funds, where he set up and managed a private equity fund. He was also involved in raising resources and in launching structured products in the offshore markets. In the the year 2011, he was assigned the task of setting up UTI's Portfolio Management Services Division and managing customized portfolios. Presently he is the Head of PMS Division.

Mr. S.L.Pandian
Mr. S.L. Pandian is an MBA, M.Com, MA, M Phil, LLB, AMP(MDI Gurgaon), CIA(USA),CSFA(USA),CISA and CAIIB . He has been with UTI AMC since 1986, working in a wide spectrum of areas including investor service, compliance, internal audit, fund accounting, dealing in equities and equity related derivatives in secondary market and scheme operations. He was a member of the UTIs Special Team on Business Process Re-engineering (BPR) exercise assigned to M/s McKinsey & Co.

61

Recently he had been associated with a BCG Pilot Project on Cross Selling. Prior to joining UTI, he had worked with UTI. In the recent past, he functioned as Head-Internal Audit and Compliance Officer. Currently he is functioning as the Chief Operating Officer and is in charge of the Department of Operations.

Mr. Manas Lal Mitra

Mr. Manas Lal Mitra is a B.E.(Electrical) and a PGDM from IIM, Bangalore. He has over 18 years of experience in the field of Finance and Infrastructure. Prior to joining UTI AMC Ltd., Mr. Mitra has worked with ICICI Bank Ltd. as a key member in Global Project Finance Department, GMR Infrastructure Ltd. as Incharge of Transport Finance, IDBI, Shaw Wallace and Hindustan Petroleum. Mr. Manas Mitra has assumed the role of Head & CIO-Department of Global Investment Advisory Services at UTI AMC Ltd. since July, 2008.

Assets Under Management

UTIAMC presently manages a corpus of over Rs. 80,218 Crores* as on 31st March 2010 (source: www.amfiindia.com). UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of
62

citizens. It has a nationwide network consisting 141 UTI Financial Centres (UFCs) and UTI International offices in London, Dubai and Bahrain. UTIAMC has a well-qualified, professional fund management team, which has been fully empowered to manage funds with greater efficiency and accountability in the sole interest of the unit holders. The fund managers are ably supported by a strong in-house securities research department. To ensure investors interests, a risk management department is also in operation. Reliability UTIMF has consistently reset and upgraded transparency standards. All the branches, UFCs and registrar offices are connected on a robust IT network to ensure cost-effective quick and efficient service. All these have evolved UTIMF to position as a dynamic, responsive, restructured, efficient and transparent entity, fully compliant with SEBI regulations.

Investment Philosophy
UTI Mutual Funds investment philosophy is to deliver consistent and stable returns in the medium to long term with a fairly lower volatility of fund returns compared to the broad market. It believes in having a balanced and welldiversified portfolio for all the funds and a rigorous in-house research based approach to all its investments. It is committed to adopt and maintain good fund management practices and a process based investment management.

63

UTI Mutual Fund follows an investment approach of giving as equal an importance to asset allocation and sectoral allocation, as is given to security selection while managing any fund. It combines top-down and bottom-up approaches to enable the portfolios/funds to adapt to different market conditions so as to prevent missing an investment opportunity. In terms of its funds performance, UTI Mutual Fund aims to consistently remain in the top quartile vis--vis the funds in the peer group.

64

65

RESEARCH METHODOLOGY
This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones.

Data sources:
Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites.

Duration of Study:
66

The study was carried out for a period of two months, from 30 th May to 30th July 2008.

Sampling: Sampling procedure:

The sample was selected of them who are the customers/visitors of State Bank if India, Branch, irrespective of them being investors or not or availing the services or not. It was also collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool.

Sample size:
The sample size of my project is limited to 200 people only. Out of which only 120 people had invested in Mutual Fund. Other 80 people did not have invested in Mutual Fund.

Sample design:
Data has been presented with the help of bar graph, pie charts, line graphs etc.

67

68

69

70

ANALYSIS & INTERPRETATION OF THE DATA

1. (a) Age distribution of the Investors of Mathura Age Group No. of Investors <= 30 12 31-35 18 36-40 30 41-45 24 46-50 20 >50 16

71

Investors invested in Mutual Fund

35 30 25 20 15 10 5 0 <=30 31-35 36-40 41-45 46-50 >50 Age group of the Investors 12 18 30 24 20 16

Interpretation:
According to this chart out of 120 Mutual Fund investors of Mathura the most are in the age group of 36-40 yrs. i.e. 25%, the second most investors are in the age group of 41-45yrs i.e. 20% and the least investors are in the age group of below 30 yrs.

(b). Educational Qualification of investors of

Mathura

72

Educational Qualification Graduate/ Post Graduate Under Graduate Others Total

Number of Investors 88 25 7 120

6% 23% 71%

Graduate/Post Graduate

Under Graduate

Others

Interpretation:
Out of 120 Mutual Fund investors 71% of the investors in Mathura are Graduate/Post Graduate, 23% are Under Graduate and 6% are others (under HSC). c). Occupation of the investors of Mathura
73

Occupation Govt. Service . Pvt. Service Business Agriculture Others

50 45 40 35 30 25 20 15 10 5 0 No. of Investors

No. of Investors 30 45 35 4 6

35

45 30 4

6
Others

Govt. Service

Pvt. Service

Business

Agriculture

Occupation of the customers

Interpretation:
In Occupation group out of 120 investors, 38% are Pvt. Employees, 25% are Businessman, 29% are Govt. Employees, 3% are in Agriculture and 5% are in others.

(d). Monthly Family Income of the Investors of

Mathura.
74

Income Group <=10,000 10,001-15,000 15,001-20,000 20,001-30,000 >30,000

50 45 40 35 30 25 20 15 10 5 0

No. of Investors 5 12 28 43 32

No. of Investors

43 28 12 5 32

<=10

10-15

15-20

20-30

>30

Income Group of the Investorsn (Rs. in Th.)

Interpretation:
In the Income Group of the investors of Mathura, out of 120 investors, 36% investors that is the maximum investors are in the monthly income group Rs. 20,001 to Rs. 30,000, Second one i.e. 27% investors are in the monthly income group of more than Rs. 30,000 and the minimum investors i.e. 4% are in the monthly income group of below Rs. 10,000
75

(2)

Investors

invested

in

different

kind

of

investments.
Kind of Investments Saving A/C Fixed deposits Insurance Mutual Fund Post office (NSC) Shares/Debentures Gold/Silver Real Estate No. of Respondents 195 148 152 120 75 50 30 65

76

65
Kinds of Investment

30 50 75 120 152 148

195
0 100 200 300

No.of Respondents

Interpretation: From the above graph it can be inferred that

out of 200 people, 97.5% people have invested in Saving A/c, 76% in Insurance, 74% in Fixed Deposits, 60% in Mutual Fund, 37.5% in Post Office, 25% in Shares or Debentures, 15% in Gold/Silver and 32.5% in Real Estate.

77

. Preference of factors while investing Factors (a) Liquidity No. of Respondents 40 (b) Low Risk 60 (c) High Return 64 (d) Trust 36

78

18%

20%
30%

32%

Liquidity

Low Risk

High Return

Trust

Interpretation:
Out of 200 People, 32% People prefer to invest where there is High Return, 30% prefer to invest where there is Low Risk, 20% prefer easy Liquidity and 18% prefer Trust

4. Awareness about Mutual Fund and its Operations

Response

Yes
79

No

No. of Respondents

135

65

33%

67%

Yes

No

Interpretation:
From the above chart it is inferred that 67% People are aware of Mutual Fund and its operations and 33% are not aware of Mutual Fund and its operations.

80

5.

Source of information for customers about

Mutual Fund
Source of information Advertisement Peer Group Bank Financial Advisors No. of Respondents 18 25 30 62

80 No. of Respondents 60 40 62 20 18 25 Peer Group 30 Bank Financial Advisors

0
Advertisement

Source of Information

Interpretation:
From the above chart it can be inferred that the Financial Advisor is the most important source of information about Mutual Fund. Out of 135 Respondents, 46% know about Mutual fund Through Financial Advisor, 22% through Bank, 19% through Peer Group and 13% through Advertisement.

81

6. Investors invested in Mutual Fund Response YES NO Total No. of Respondents 120 80 200

No 40%

Yes 60%

Interpretation:
82

Out of 200 People, 60% have invested in Mutual Fund and 40% do not have invested in Mutual Fund.

7. Reason for not invested in Mutual Fund Reason Not Aware Higher Risk Not any Specific Reason No. of Respondents 65 5 10

13%

6% 81%

Not Aware

Higher Risk

Not Any

83

Interpretation:
Out of 80 people, who have not invested in Mutual Fund, 81% are not aware of Mutual Fund, 13% said there is likely to be higher risk and 6% do not have any specific reason.

8. Investors invested in different Assets Management Co. (AMC)

Name of AMC UTIMF UTI HDFC Reliance ICICI Prudential Kotak Others No. of Investors 55 75 30 75 56 45 70

84

Others HDFC Name of AMC Kotak SBIMF ICICI Reliance UTI 0 20 40 No. of Investors 60 30 45 55 56

70

75 75 80

Interpretation:
In Mathura most of the Investors preferred UTI and Reliance Mutual Fund. Out of 120 Investors 62.5% have invested in each of them, only 46% have invested in UTIMF, 47% in ICICI Prudential, 37.5% in Kotak and 25% in HDFC.

9. Reason for invested in UTIMF

Reason Associated with UTI Better Return Agents Advice
85

No. of Respondents 35 5 15

27% 9% 64%

Associated with SBI

Better Return

Agents Advice

Interpretation:
Out of 55 investors of UTIMF 64% have invested because of its association with Brand UTI, 27% invested on Agents Advice, 9% invested because of better return.

10. Reason for not invested in UTIMF

Reason Not Aware
86

No. of Respondents 25

Less Return Agents Advice

18 22

34%

38%
28%

Not Aware

Less Return

Agent's Advice

Interpretation:
Out of 65 people who have not invested in UTIMF, 38% were not aware with UTIMF, 28% do not have invested due to less return and 34% due to Agents Advice.

87

11. Preference of Investors for future investment in Mutual Fund

Name of AMC UTIMF UTI HDFC Reliance ICICI Prudential Kotak Others No. of Investors 76 45 35 82 80 60 75

Others Kotak Name of AMC ICICI Prudential Reliance HDFC 35 60

75

80 82

UTI
SBIMF 0

45
76 20 40 60 80 100

No. of Investors

Interpretation:

88

Out of 120 investors, 68% prefer to invest in Reliance, 67% in ICICI Prudential, 63% in UTIMF, 62.5% in Others, 50% in Kotak, 37.5% in UTI and 29% in HDFC Mutual Fund.

12. Channel Preferred by the Investors for Mutual Fund Investment

Channel Financial Advisor No. of Respondents 72 18 30 Bank AMC

25% 15% 60%

Financial Advisor

Bank

AMC

Interpretation:
Out of 120 Investors 60% preferred to invest through Financial Advisors, 25% through AMC and 15% through Bank.

89

13. Mode of Investment Preferred by the Investors Mode of Investment No. of Respondents One time Investment 78 Systematic Investment Plan (SIP) 42

35% 65%

One time Investment

SIP

90

Interpretation:
Out of 120 Investors 65% preferred One time Investment and 35 % Preferred through Systematic Investment Plan.

14. Preferred Portfolios by the Investors Portfolio Equity Debt Balanced No. of Investors 56 20 44

91

37% 17%

46%

Equity

Debt

Balance

Interpretation:
From the above graph 46% preferred Equity Portfolio, 37% preferred Balance and 17% preferred Debt portfolio

15. Option for getting Return Preferred by the

Investors
Option Dividend Payout Dividend Reinvestment No. of Respondents
92

Growt h 85

25

10

21% 8% 71%

Dividend Payout

Dividend Reinvestment

Growth

Interpretation:
From the above graph 71% preferred Growth Option, 21% preferred Dividend Payout and 8% preferred Dividend Reinvestment Option.

16. Preference of Investors whether to invest in Sectoral Funds

93

Response Yes No

No. of Respondents 25 95

21% 79%

Yes

No

Interpretation:
Out of 120 investors, 79% investors do not prefer to invest in Sectoral Fund because there is maximum risk and 21% prefer to invest in Sectoral Fund.

94

95

Findings

In Mathura in the Age Group of 36-40 years were more in numbers. The second most Investors were in the age group of 41-45 years and the least were in the age group of below 30 years. In Mathura most of the Investors were Graduate or Post Graduate and below HSC there were very few in numbers. In Occupation group most of the Investors were Govt. employees, the second most Investors were Private employees and the least were associated with Agriculture. In family Income group, between Rs. 20,000- 30,000 were more in numbers, the second most were in the Income group of more than Rs.30,000 and the least were in the group of below Rs. 10,000. About all the Respondents had a Saving A/c in Bank, 76% Invested in Fixed Deposits, Only 60% Respondents invested in Mutual fund. Mostly Respondents preferred High Return while

investment, the second most preferred Low Risk then liquidity and the least preferred Trust.

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 Only 67% Respondents were aware about Mutual fund and its operations and 33% were not. Among 200 Respondents only 60% had invested in Mutual Fund and 40% did not have invested in Mutual fund. Out of 80 Respondents 81% were not aware of Mutual Fund, 13% told there is not any specific reason for not invested in Mutual Fund and 6% told there is likely to be higher risk in Mutual Fund. Most of the Investors had invested in Reliance or UTI Mutual Fund, ICICI Prudential has also good Brand Position among investors, UTIMF places after ICICI Prudential according to the Respondents. Out of 55 investors of UTIMF 64% have invested due to its association with the Brand UTI, 27% Invested because of Advisors Advice and 9% due to better return. Most of the investors who did not invested in UTIMF due to not Aware of UTIMF, the second most due to Agents advice and rest due to Less Return. For Future investment the maximum Respondents preferred Reliance Mutual Fund, the second most preferred ICICI Prudential, UTIMF has been preferred after them. 60% Investors preferred to Invest through Financial Advisors, 25% through AMC (means Direct Investment) and 15% through Bank. 65% preferred One Time Investment and 35% preferred SIP out of both type of Mode of Investment.
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Recommendations and Suggestions

The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody
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will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. Mutual funds offer a lot of benefit which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is? They only see it as just another investment option. So the advisors should try to change their mindsets. The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective, because they are the main source to influence the investors. Before making any investment Financial Advisors should first enquire about the risk tolerance of the investors/customers, their need and time (how long they want to invest). By considering these three things they can take the customers into consideration. Younger people aged under 35 will be a key new customer group into the future, so making greater efforts with younger customers who show some interest in investing should pay off. Customers with graduate level education are easier to sell to and there is a large untapped market there. To
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succeed however, advisors must provide sound advice and high quality. Systematic Investment Plan (SIP) is one the innovative products launched by Assets Management companies very recently in the industry. SIP is easy for monthly salaried person as it provides the facility of do the investment in EMI. Though most of the prospects and potential investors are not aware about the SIP. There is a large scope for the companies to tap the salaried persons.

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Conclusion
Running a successful Mutual Fund requires complete understanding of the peculiarities of the Indian Stock Market and also the psyche of the small investors. This study has made an attempt to understand the financial behavior of Mutual Fund investors in connection with the preferences of Brand (AMC), Products, Channels etc. I observed that many of people have fear of Mutual Fund. They think their money will not be secure in Mutual Fund. They need the knowledge of Mutual Fund and its related terms. Many of people do not have invested in mutual fund due to lack of awareness although they have money to invest. As the awareness and income is growing the number of mutual fund investors are also growing.

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Brand plays important role for the investment. People invest in those Companies where they have faith or they are well known with them. There are many AMCs in Mathurabut only some are performing well due to Brand awareness. Some AMCs are not performing well although some of the schemes of them are giving good return because of not awareness about Brand. Reliance, UTI, UTIMF, ICICI Prudential etc. they are well known Brand, they are performing well and their Assets Under Management is larger than others whose Brand name are not well known like Principle, Sunderam, etc. Distribution channels are also important for the investment in mutual fund. Financial Advisors are the most preferred channel for the investment in mutual fund. They can change investors mind from one investment option to others. Many of investors directly invest their money through AMC because they do not have to pay entry load. Only those people invest directly who know well about mutual fund and its operations and those have time.

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QUESTIONNAIRE

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A study of preferences of the investors for investment in mutual funds. 1. Personal Details:

(a). Name:-

(b). Add: (c). Age:(d). Qualification:-

Phone:-

Graduation/PG

Under Graduate

Others

(e). Occupation. Pl tick ()

Govt. Ser

Pvt. Ser

Business

Agriculture

Others

(g). What is your monthly family income approximately? Pl tick ().

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Up to Rs.10,000

Rs. 10,001 to Rs. 15,001 to Rs. 20,001 to Rs. 30,001 15000 20,000 30,000 and above

2. What kind of investments you have made so far? Pl tick (). All applicable.

a. Saving account e. Post OfficeNSC, etc

b. Fixed deposits f.

c. Insurance g. Gold/

d. Mutual Fund h. Real Estate

Shares/Debentures Silver

3. While investing your money, which factor will you prefer? . (a) Liquidity (b) Low Risk (c) High Return (d) Trust

4. Are you aware about Mutual Funds and their operations? Pl tick (). Yes No

5. If yes, how did you know about Mutual Fund? a. b. Peer c. Banks d. Financial

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Group

Advisors

6. Have you ever invested in Mutual Fund? Pl tick (). No

Yes

7. If not invested in Mutual Fund then why?

(a) Not aware of MF (b) Higher risk (c) Not any specific reason 8. If yes, in which Mutual Fund you have invested? Pl. tick (). All applicable.

a. UTIMF

b. UTI

c. HDFC

d. Reliance

e. Kotak

f. Other. specify

9. If invested in UTIMF, you do so because (Pl. tick (), all applicable).

a. UTIMF is associated with State Bank of India. b. They have a record of giving good returns year after year.

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c. Agent Advice

10. If NOT invested in UTIMF, you do so because (Pl. tick () all applicable).

a. You are not aware of UTIMF. b. UTIMF gives less return compared to the others. c. Agent Advice

11. When you plan to invest your money in asset management co. which AMC will you prefer?

Assets Management Co. a. UTIMF

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b. UTI c. Reliance d. HDFC e. Kotak f. ICICI

12. Which Channel will you prefer while investing in Mutual Fund?

(a) Financial Advisor

(b) Bank

(c) AMC

13. When you invest in Mutual Funds which mode of investment will you prefer? Pl. tick ().

a. One Time Investment

b. Systematic Investment Plan (SIP)

14. When you want to invest which type of funds would you choose?

a. Having only debt

b. Having debt &

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c. Only equity

portfolio

equity portfolio.

portfolio.

15. How would you like to receive the returns every year? Pl. tick ().

a. Dividend payout

b. Dividend reinvestment

c. Growth in NAV

16. Instead of general Mutual Funds, would you like to invest in sectorial funds? Please tick (). Yes No

Thank you very much for your co-operation!

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BIBLIOGRAPHY

NEWS PAPERS

OUTLOOK MONEY

TELEVISION CHANNEL (CNBC AAWAJ)

MUTUAL FUND HAND BOOK

FACT SHEET AND STATEMENT

WWW.UTIMF.COM

WWW.MONEYCONTROL.COM

WWW.AMFIINDIA.COM

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 WWW.ONLINERESEARCHONLINE.COM

WWW. MUTUALFUNDSINDIA.COM

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