CONSUMER AWAERNESS REGARDING MUTUaL FUNDS

SUBMITTED BY: Mr. kanwal gurleen singh SUBMITTED by: deepika mba iii(b) 3209

content
1) Introduction of Axis Bank 2) Introduction of the Study 3) SWOT Analyses 4) Review of Literature 5) Need, Scope and Objectives 6) Research Methodology 7) Limitations of study 8) Data Analysis 9) Findings 10)Conclusion and Recommendation

CONSUMER AWAERNESS REGARDING MUTUAL FUNDS

Introduction of Axis Bank

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank's Registered Office is at Ahmadabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1700 branch offices and Extension Counters. ATMs providing 24 hrs a day banking convenience to its customers. UTI Bank has started itself as AXIS Bank on July 30, 2007.

CONSUMER AWAERNESS REGARDING MUTUAL FUNDS

Adash kishore Shikha Sharma Rama Bijapurkar K.N.Prithviraj V.R.Kaundinya S.B Mathur Prasad Menon Rabindranath Bhattachaeyya Prof. Samir K Barua A.K Dasgupta

Chairman MD & CEO Director Director Director Director Director Director

Director Director

CONSUMER AWAERNESS REGARDING MUTUAL FUNDS

Introduction of the Study

MUTUAL FUNDS Mutual Fund is an institutional arrangement which mobilizes savings of millions of investors for investment. Mutual Fund means a fund established in the form of a trust to raise monies through sale of units to the public or a section of the public under one or more schemes for investing in securities, including money market instrument
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CONT.
A Mutual Fund is a collective investment vehicle in the capital markets. A large numbers of investors get together, pool their resources in the capital market on their behalf. Mutual Fund companies operate both in public and private sector. UTI alone manages more than 70% of the funds. Starting with an assets base of Rs. 25 crores in 1964 the industry has grown at a compounded growth rate of 26.34%.

CONSUMER AWAERNESS REGARDING MUTUAL FUNDS

ADDITIONAL FACILITIES PROVIDED BY MUTUAL FUNDS TO THE INVESTERS

Systematic Investment Plan (SIP):An existing unit holder can benefit under this facilities by investing specified amount regularly. By investing a fixed amount of rupees at regular interval, one would end up buying more units of the fund when price is low and fewer units when price is high . Systematic Withdrawal Plan (SWP):In this plan investor can receive regular /quarterly payment from the scheme into his account. The unit holder can opt to withdraw a fixed amount subject to a prescribed minimum amount per month or per quarter. Systematic Transfer Plan(STP):Investors can choose

between a fixed systematic transfer plan and capital appreciation systematic transfer plan.
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Cont
Dividend Transfer Plan (DTP):Under dividend
transfer plan, investor can choose transfer their dividends of one scheme on to the other scheme as a when dividend are paid out.

Electronic Clearing Service (ECS):A

systematic investment plan can be affected in two ways. The investor can pay posted cheques dated at requisite intervals or investor can choose for an auto debit facility/ ECS.

CONSUMER AWAERNESS REGARDING MUTUAL FUNDS

SWOT ANALYSES
Strength It allows small investors to invest in market cheaply and efficiently. Weakness Lack of flexibility.

SWOT Opportunity MF making investments in property should be allowed. Government is making necessary efforts.

Threat ULIP (Unit Linked Investment Plan) - if the time horizon of the investor is more than 15 years, ULIP becomes a threat to fund industry.

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Fama and French

1991

the mutual fund industry has developed rapidly over the past 20 years, there has concomitantly evolved a rich plausible academic literature consisting of numerous topics. One of the most frequently addressed topics in the current literature is that of mutual fund performance. Pointed out that customer perception and retention are critical for retail banks, and investigates the major determinants of customer perception and future intentions in the retail bank sector. Concluded in his study that quality expectations and evaluation of services received were marginally higher in the private than in the public sector in most of the dimensions measured; the relative importance attached to each quality attribute was, however, of a similar profile for the two sectors. examined the relationship between changes in the team leadership of branch managers (as measured by employee ratings) and concomitant changes in customer perception for branches of a regional bank. 12

Selden

1993

Tversky and Kahneman

1997

Thaler

2008

Plous

1996

the mutual fund industry has developed rapidly over the past 20 years, there has concomitantly evolved a rich plausible academic literature consisting of numerous topics. One of the most frequently addressed topics in the current literature is that of mutual fund performance. Pointed out that customer perception and retention are critical for retail banks, and investigates the major determinants of customer perception and future intentions in the retail bank sector. Concluded in his study that quality expectations and evaluation of services received were marginally higher in the private than in the public sector in most of the dimensions measured; the relative importance attached to each quality attribute was, however, of a similar profile for the two sectors. examined the relationship between changes in the team leadership of branch managers (as measured by employee ratings) and concomitant changes in customer perception for branches of a regional bank.
CONSUMER AWAERNESS REGARDING MUTUAL FUNDS

Shleifer and Vishny

1993

Barberis and Huang

1999

Bondt and Richard Thaler

2009

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NEED

OBJECTIVES

The review of literature the fact that the majority of researches have conducted a full fledge study on the mutual funds. In this study covered some aspects of Mutual Funds towards investors perseption. And the analyzing mutual funds as safe investment options by different perspectives.

SCOPE

To know about the various avenues of mutual fund available in the market.

This study has covered the 100 respondents of Jalandhar City.

To know the growth and development of mutual fund industries.

Investors perception regarding mutual fund.

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 Secondary Data Primary Data

Descriptive Research

100 Respondents from Jalandhar City

Tables,Percentage, Bar graphs and Pie charts

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LIMITATIONS OF THE STUDY

There was inadequacy of information relating to few funds, since certain facts about Funds could not be obtained either from a particular funds fact sheet or from the Internet. Scope of survey is limited in Jalandhar city only. As a part of the survey depends upon secondary sources of data any mistake in them is reflect the original position. On different parameters different funds performed better. Therefore in a generalized form nothing could be said about a fund in comparison to the other fund. The researcher took a sample size of 100 consumers which may not reflect the original position. Lack of interest, reluctance to share information and biasness on the part of customers cant reflect the original position.
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Statement 1: Awareness about the Mutual Funds

No. of Respondents
90 80 70 60 50 40 30 20 10 0 No. of Respondents

Axis Title

Yes 86

No 14

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Statement 2: Investment in Mutual Funds

No. of Respondents
80 70 60 Axis Title 50 40 30

20
10 0 No. of Respondents Yes 78 No 22

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Statement 3: List of most popular Mutual Funds

No. of Respondents
No. of Respondents

26 22 22

14 10

Reliance Mutual Fund

ICICI PRU HDFC Mutual UTI Mutual Fund Fund

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Others

Dont Invest
22

Statement 4: List of sources where people get knoeledge about the different Investment avenues available in the markets. No. of Respondents
35 30 25 Axis Title 20 15

10
5 0 Friends No. of Respondents 24 Colleague s 22 Advertise ment 30

Agent 18

Others 6
23

CONSUMER AWAERNESS REGARDING MUTUAL FUNDS

Statement 5: Portfolio of Investment

No of Respondents
Others Government Securities Stock Trading Mutual Fund Insurances Fixed Deposits 0 5 10 15 Stock Trading 12 20 25 30

Fixed Insurance Mutual Deposits s Fund No of Respondents 20 14 23

Governm Others ent Securities 28 3

24

CONSUMER AWAERNESS REGARDING MUTUAL FUNDS

Statement 6: Investment objectives

No of Respondents
No of Respondents 33

30
25

Appreciation of To gets regular For Tax savings For maintaining money income purpose liquidity
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Others

25

Statement 7: Factors which Investment the Investment Pattern

Others 0%

No of Respondents
Liquidity 10%
Risk 24%

Past Performance 18% Duration 16%

Return 32%

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Statement 8: All the details of the Mutual Fund policy

No of Respondents
35 30

25
Axis Title 20 15 10 5 0 No of Respondents Yes 35 No 31 Cant say 12 Dont Invest 22
27

CONSUMER AWAERNESS REGARDING MUTUAL FUNDS

Statement 9. Types of Mutual Funds

No of Respondents
Dont Funds Hybrid Funds Equity Funds Liquid Funds

Income Funds
0 5 10 15 20 25

No of Respondents

Income Funds 18

Liquid Funds 14

Equity Funds 25

Hybrid Funds 21

Dont Funds
22
28

CONSUMER AWAERNESS REGARDING MUTUAL FUNDS

Statement10: Amount of money Yearly Invested in Mutual Funds

No of Respondents
No of Respondents 33

22
14

22

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Statement 11:Investment Style

No of Respondents

Not aware 28%

Conservative 16%

Moderate 31%

Aggressive 25%

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Statement 12: Investment through Bank

No of Respondents
Readymade Portfolio Experts Information Availability

14%

45%

41%

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Statement 13: Certified in AMFI

No of Respondents

Not Aware 26%

Yes 33%

No 41%

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FINDINGS OF THE STUDY

People are much more aware about Mutual Fund in current era.

Most of the customers try to collect full information about the policy in which they are investing.

Mostly the customers invest Mutual Fund to avail tax benefits followed by risk coverage benefit.

Most of the customers are not certified in AMFI(Association of Mutual Fund in India) Most of the mutual fund investors prefer equity funds.
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CONT.
Bank provides experts and full knowledge thats why customer invested through banking sector.

Most of the customer gets knowledge from advertisement.

Customer wants to maximum return in which they have invested.

Most of the customer invested in mutual fund because it gives maximum return in the minimum period.

Most of the customer invested in reliance mutual fund because they provide better return other than.
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RECOMMENDATIONS

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CONT.

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