2. RESEARCH METHODOLOGY
Primary objective -
To study the Mutual Fund Market in Ahmedabad with the primary
objective to know Potential of mutual fund as an investment option.
Secondary Objective:
•To study the perception of Investor about different investment options
available in the market.
•To know the awareness of Mutual Funds in the market of Ahmedabad.
•To see the interest of people in investing in MUTUAL FUNDS.
3. CONTINUE…
Research Design
Sampling
Sampling Unit
Sampling Size
Method of data collection
A Primary data collection source
Secondary data collection sources
Nature of Research
4. The MUTUAL FUNDS Industry Overview
The first was started in the Netherlands in 1822, and
the second in Scotland in the 1880's.
First Phase – 1964-87
Second Phase – 1987-1993 (Entry of Public Sector
Funds)
Third Phase – 1993-2003 (Entry of Private Sector
Funds)
Fourth Phase – since February 2003
GROWTH OF MUTUAL FUNDS IN INDIA
5. STRUCTURE OF A MUTUAL FUND
SEBI
TRUSTEE SPONSOR
OPERATIONS
AMC
FUND
MANAGER
MKT. / SALES
MUTUAL FUND
MKT. / SALES
SCHEMES DISTRIBUTER
INVESTORS
6. TYPES OF MUTUAL FUND SCHEMES
By Investment Objectives.
By Duration/Constitution.
Load and No-Load Funds.
Other types of schemes.
NJ IndiaInvest Pvt. Ltd.
8. Age of respondent Occupation of respondent
25
20
15
10
5
0
No.of Investor
18-25 26-35 36-45 46-55 56>
Age Group
20
18
16
14
12
10
No.of Investor
8
6
4
2
0
Occupation of Investor
Student Professional Business Service
No of Investors
9. Investors invested in
different kind of
investments
Investors invested in different kind of
0 5 10 15 20 25 30
Other
Real Estate
Gold & Silver
Shares & Debentures
Post Office
Mutual Fund
Fixed Deposits
Saving A/c
investments
Main Objective of investment for
which investor invest.
4% 17%
No of Investors
5%
33%
41%
Preservation of Principal
Current Income
Growth and Income
Conservative Growth
Aggressive Growth
10. Investment scheme
investor invested
In which investment scheme you
0 5 10 15 20 25 30
Other
Real Estate
Gold & Silver
Shares & Debentures
Post Office
Mutual Fund
Fixed Deposits
Saving A/c
invested
No of Investors
invested in last five years (In
20
16
14
Lac)
00 to 03
04 to 05
5>
12. Mode of Investment Preferred by the
44%
56%
Investors
Lum Sum
SIP
Satisfaction with investment
Yes
56%
No
44%
13. 20
18
16
14
12
10
8
6
4
2
0
Yes No
Series1 20 7
Axis Title
Would you like to Countinue investing in MF?
Reason for not investing
in mutual fund
Not Aware High Risk No Reason
30%
9%
61%
14. Findings
Most of respondents are in the age group of 18-25
years. the second most investors are in the age group
of 26-35 years.
investors seek to invest more in fixed deposits and
their next preference is saving a/c,mutual funds,post
office and gold and silver.
Fixed deposit is more attractive for those who park
their money into safe place.
Majority investor invested 00 to 03 lac.in last five
years.The next highest investment is 04 to 05 lac.
15. Conti…
Financial Advisor is the most important source of
information about Mutual Fund.
Mostly MF investment is through agent only.Direct
investment is less attrective for investor.
Most of investor doing SIP(systemetic investment
planning),and remaining are doing lum-sup.some
investor also investing in both scheme.
Almost 56% investor are satisfied with their
investment in mutual fund.
Most of people who are not investing in mutual fund
they think mutual fund is high risky.
16. RECOMMENDATIONS
The most vital problem spotted is of ignorance.
Investors should be made aware of the benefits.
Nobody 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.
17. Conti…
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.
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.
18. 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.
“Brand” plays important role for the investment.
People invest in those Companies where they have
faith or they are well known with them.
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.