PRESENTATION ON ANALYSIS OF MUTUAL FUND AS AN INVESTMENT AVENUE IN INDIA

COMPILED BYVIVEK KUMAR GUPTA MBA 2010-12

Objective of Study
To find the consumer perception for mutual fund. Change in consumer trend for traditional investment. To find the awareness of investor for mutual fund investment. To examine whether mutual funds are really having a better prospect in India. To examine whether mutual funds are really having a better return than banking investment.

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.

Research Design
A Research design is an arrangement of conduction for collection & analysis of data in a manner that aims to combine relevant to a research purpose economy in producer.

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, Primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites.

Limitation of Study
Due to uncertainty of market people are not ready to give any information. As most of the persons burn their fingers in share market so they think that mutual funds are same as shares so they did not want to talk anything about mutual funds.

No proper assurance of right information. The Data sources are telephonic information and Offices visit. Some people do not want to reveal information about their mutual funds product and services.

Some respondents are unwilling to talk. Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call.

 Some people think that mutual funds are too risky and just another name of gamble but they dont know its not at all that risky for long term investor
The sample size taken for the research is small due to constraint of time.

Karvy Stock Broking Ltd.

One of the most admired Financial Services Provider
Presence in 375 cities with more than 550 offices

Amongst the largest DP in the country with over 6,80,000 active customers
Leading Mutual Fund Distributor with an average assets under advise at 20 Bn

 Largest Retail Broker with over 2.50 lacs customers and around 5% share of NSE cash market trades and volumes Largest Registrar in the country with over 16 Mn customers under service Amongst Top 10 Investment Bankers with offices in Dubai and New York

Offerings
Stock Broking (NSE, BSE, F&O) Commodities Trading Mutual Funds (Distribution and Advisory) IPOs, Bonds (Infrastructure, Capital Gains, RBI) Insurance (Life and General) Depository services TFC (TIN FACILITATION CENTER) Home Loans Realty Services

Findings
With the help of above research we found out following things about mutual fund which are given below 1-All most all companies launch their mutual funds. 2-Systematic investment plan is more beneficial than one time investment. 3-Equity fund is more preferred by investor for high growth. 4-Mutual funds give better interest than bank 5-Costomers has more option of investment in mutual fund in comparison to bank.

 6-People invested in mutual funds for better interest rate than banking investment.
7-People can earn better amount than banking investment. 8-It is more beneficial for invested long time in comparison to short time. 9-There are chances of loss in mutual fund (because it is depend on market condition). 10-Most of the people are unaware about mutual fund in India.

Conclusion
By the above finding we conclude following result which are given below 1-A mutual fund brings together a group of people and invests their money in stocks, bonds, and other securities . 2-The advantages of mutual funds are professional management, diversification, economies of scale, simplicity and liquidity. 3-The disadvantages of mutual funds are high costs, over-diversification, possible tax consequences, and the inability of management to guarantee a superior return.

4-There are many types of mutual funds. You can classify funds based on asset class, investing strategy, region, etc.
5-Mutual funds have lots of costs.

 6-Costs can be broken down into on-going fees (represented by the expense ratio) and transaction fees (loads).
7-The biggest problems with mutual funds are their costs and fees. 8-Mutual funds are easy to buy and sell. You can either buy them directly from the fund company or through a third party. 9-Mutual fund ads can be very deceiving.

Suggestion
The most vital problem spotted is of ignorance .Investor should be made aware of benefits .Nobody will invest until and unless he is fully convinced. Investor should be made to realize that ignorance is no longer bliss and what they are losing by not investing.

Proper training and up to date knowledge of every financial product should be given to every financial advisor so that they can give their best performance to their client.
In India investor have inadequate knowledge about mutual fund. So proper marketing of various scheme is required, company should arrange more and more seminar on mutual funds

 Company should also provide knowledge about growth rate and expected growth rate of mutual fund industry in India. Most of people aware about life insurance, NSC, PPF for tax saving so company should market various tax saving scheme for their benefits.
Mutual fund offer a lot of benefit which no other single option could offer but most of the people not even aware about what actually a mutual fund is? They only see it as just another investment option. So the advisors should try to change their mind-sets. Advisors should target for more and more young investors. Young investors or person at the height of their career would like to go for advisor due to lack of expertise and time

BIBLIOGRAPHY
BOOKS:
C.R. KOTHARI; RESEARCH METHODOLOGY

COMPANY BOOKLETS:
KARVY FINAPOLISE

WEB SITES:
WWW.KARVY.COM WWW.KARVYONLINE.COM WWW.KARVYCOMPUTERSHARE.COM WWW.NSEINDIA.COM WWW.BSEINDIA.COM WWW.GOOGLE.COM WWW.MONEYCONTROL.COM WIKIPEDIA.COM WWW.AMFIINDIA.COM

QUESTIONNIRE :
Name Age Educational Qualification Occupation : .............................................................. : .. : ...................................... : ..

1-Do you know about mutual fund? a-Yes b-No

2-Do you invested in any mutual fund scheme? a-Yes b- No

3-Do you think investment in mutual fund is better than any bank scheme? a-yes b- No c- Cant say

4-Which type of mode of payment you prefer? a-monthly b- quarterly c- half yearly d- annually

5- What is your source of information while investing in mutual funds? a-Internet b-Financial Advisor c-Magazine d-Advertisement e-Friends

6- Which type of fund you prefer in mutual fund? a-Equity b- Debt c- Tax saving d- Balanced fund e-Arbitrage

7- Which option you prefer most in mutual funds? a- Growth b- Dividend c- Dividend payout d- Reinvestment

8-How long period you prefer to investing in mutual fund? 1-LongTime b- Short time

9-How much return you except from your investment in mutual fund? a-Up to 8% b- between 8%-15% c- between 15% - 25% d- above 25%

10- What is most important to you in investing your money? a - Intrest b- Safety c-Principal d- Diversification e- Liquidity
11- Do you think SEBI should make some new guideline for companies to prevent investor loss in mutual funds? a-Yes b- No c- Cant say

12-Do you think mutual funds as an investment avenue? a-Yes b- No c - Cant say