SlideShare ist ein Scribd-Unternehmen logo
1 von 100
Downloaden Sie, um offline zu lesen
1
A
Project Study Report On
Training Undertaken at
IDFC AMC ltd, Ahmadabad
“STUDY ABOUT INVESTORS PERCEPTION AND
INVESTMENT PETTERN IN MUTUAL FUND AT IDFC
AMC ltd”
Submitted by: - MANTHAN SONI
(Enr. No: - 137690592115)
RUSHABH PATEL
(Enr. No:- 137690592102)
MBA PROGRAMME 2013-2015
In partial fulfillment of the requirements for Summer Internship Programme for the award
of the degree of
MASTER OF BUSINESS ADMINISTRATION
SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT AND COMPUTER
APPLICATIONS (NICM-MBA)
Submitted to:-
GUJARAT TECHNOLOGICAL UNIVERSITY,
AHMEDABAD
2
PREFACE
With the growth of rapid industrialization the need of management is felt every where. A
research report provides the most natural condition under which a student can learn and got
success in implementing the theoretically learned in to the practical and current
environment of daily practices done by the people (investor) it helps a student to learn, to
improve, to improvise, to experiment, to find knowledge in all possible ways and to
translate that knowledge into action.
MBA is a foundation stone to the management career. The classroom learning needs to
practical exposure. To develop concrete managerial and administrative skills of potential
manager, it is important that the interaction to the real environment be there.
The project is a real life venture for me. It is a great privilege that you have spread your for
reading this. In forthcoming pages, an attempt has been made to present the different aspect
of my project.
Date: Manthan soni
Place: Gandhinagar (GTU’s Enrollment No: - 137690592115)
Rushabh patel
(GTU’s Enrollment No: - 137690592102)
3
Declaration
This project report entitled “Understanding Study of Investors perception and
investment pattern in mutual fund at IDFC” has been submitted to Gujarat
Technological University, Ahmadabad in partial fulfillment for the award of degree of
Master of Business Administration. I, the undersigned hereby declare that this report has
been completed by me under the guidance of Mr.Pankil thakker (Assistant Vise President)
and Prof.Rashesh Patel (Faculty Member, ShriJairambhai Patel Institute of Business
Management & Computer Applications, Gandhinagar.)
The report is entirely the result of my own efforts and has not been submitted either in part
or whole to any other institute or university for any degree.
Manthan soni
(GTU’s Enrollment No: - 137690592115)
Rushabh patel
(GTU’s Enrollment No: - 137690592102)
Date:
Place: Gandhinagar
4
ACKNOWLEDGEMENT
“Chain of mistakes leads towards failures, chain of failures leads to experience &
chain of experience leads to success.” That’s what a life’s path is.
I express my heartfelt thanks to Dr. S.O. Junare, Director of NICM for providing me an
opportunity for carrying out this study.
My special thanks to Prof. Rashesh Patel, Assistant Professor, NICM, who had been a
mentor and had supported me by his vast knowledge, experience and wisdom. He had been
a constant support me throughout the completion of the study
I take the opportunity to thank Mr. Hardik, Senior vise president, IDFC, who has
motivated us to achieve new heights and work creatively.
I would also like to thank my guide Mr. Pankil Thakker, Assistant Vise President,
IDFC. Who have immensely guided, supported and helped me in the process of completion
of my Organizational Study through his constant encouragement and suggestions.
I take the opportunity to thank Mrs.Rekha nair, Sales manager, IDFC. Who had been a
constant support throughout the completion of the study?
My sincere and humble thanks to all my faculty members, my beloved parents, my dear
friends and each and everyone who have been never ending source of knowledge,
inspiration and support to me.
Signature of the Student
Manthan soni
(GTU’s Enrollment No: - 137690592115)
Rushabh patel
(GTU’s Enrollment No: - 137690592102)
5
Shri Jairambhai Patel Institute of Business
Management and Computer Applications
(Formerly known as National Institute of Cooperative Management),
Approved by AICTE, New Delhi and Affiliated with Gujarat Technological University
Opposite Amusement Park, Indroda Circle, Gandhinagar - 382 007
Phone: 079 – 23213043, 37 - 38 - 39 Fax : 079 – 23213036
Web: www.nicm.coop E mail: director_mbanicm@yahoo.com
CERTIFICATE
This is to certify that Manthan soni & Rushabh patel, student of MBA
(2012-2014 batch) at Post Graduate Centre of Gujarat Technological University – MBA,
SJPI has prepared a Summer Internship Project Report on “ STUDY ABOUT
INVESTORS PERCEPTION AND INVESTMENT PETTERN IN MUTUAL FUND AT
IDFC AMC ltd ” in partial fulfillment of two years full-time MBA Programme of Gujarat
Technological University, Ahmedabad. This project work has been undertaken under my
supervision and found satisfactory.
Date : ----------------- Prof. Rashesh patel
Place: Gandhinagar Core Faculty – MBA Dept.
& Project Guide
Dr. S O JunareDirector – Technical Campus
6
ABSTRACT
 Being such a hot and much talked about financial product in the recent times, we take it as a
great opportunity to study and analyze the Indian mutual fund Industry and give my
observation on it. It will not only help building my career but it will also help Mahindra
finance in certain aspect.
The Indian Mutual Funds Industry has witnessed a sea change since UTI was first established in
1963. From a single player the number of players has increased to more than 30 and the number of
schemes has spiraled to more than 3500. The last decade has been a period of rapid growth for the
MF industry. The industry is in nascent stage at present. It has come a long way and still has lots of
potential for growth.
My project in IDFC mainly deals with to Understanding Investors perception and investment pattern
in mutual fund at IDFC and also selling through several financial channels available in the market.
And my main aim is to attain profit for the company and give them good business. Fist part of study,
we undertake the research study survey through questionnaire fill up on investment pattern in
mutual fund by Investors. And after that I visited the list of bank given to me Kotak, HDFC, Axis
Bank etc. And Meet with Relationship manager and try to give them knowledge about the product
and then try to sale the product to their client and Understanding of Investors perception and
investment pattern in mutual fund.
And in these project my main aim to see which schemes are giving better returns and at a reasonable
risk. But risk itself is a very subjective terms that depend on person to person. And also how asset
management companies are performing and how their ranking in investment terms is.And during the
course of the project we have not only learnt about mutual fund industry but also try to
Understanding of Investors perception and investment pattern in mutual fund at IDFC the company.
7
Table of Content
Chapter No. Particulars Page No.
Part:1 General information
1 1.1 About The Mutual fund Industry 9
1.2 Mutual fund Industry in India 9
1.3 Conceptual Framework of Mutual Fund 13
1.4 Concept of Mutual fund 15
1.5 How To Invest in Mutual fund 28
2 2.1 Company Profile 36
2.2 SWOT Analysis of Company and Its Competitors 43
2.3 Scheme of IDFC 44
Part :2 Primary Study
3 3.1 Introduction of the study 53
3.2 Literature Review 53
3.3 Background of study 56
3.4 Problem Statement 60
3.5 Objectives Of the study 61
3.6 Hypothesis
5 Research Methodology 62
4.1 Research Design 62
4.2 Source of Data 62
8
4.3 Sampling Method 63
4.4 Sampling Size 63
4.5 Data Collection Instrument 63
4.6 Statistical Tools Used 63
5 Analysis & Data interpretation 64
6 Hypothesis testing 89
7 Suggestions 91
8 Limitations of the study 93
9 Findings 93
10 Conclusion 94
11 Bibliography 95
12 Annexure 96
9
1.1 About The Mutual fund Industry
The one investment vehicle that has truly come of age in India in the past decade is mutual
funds. Today, the mutual fund industry in the country manages around Rs 329,162 crore
(As of Dec, 2006) of assets, a large part of which comes from retail investors. And this
amount is invested not just in equities, but also in the entire gamut of debt instruments.
Mutual funds have emerged as a proxy for investing in avenues that are out of reach of
most retail investors, particularly government securities and money market instruments.
Specialization is the order of the day, be it with regard to a scheme’s investment objective
or its targeted investment universe. Given the plethora of options on hand and the hard-sell
adopted by mutual funds vying for a piece of your savings, finding the right scheme can
sometimes seem a bit daunting. Mind you, it’s not just about going with the fund that gives
you the highest returns. It’s also about managing risk–finding funds that suit your risk
appetite and investment needs.
So, how can you, the retail investor, create wealth for yourself by investing through mutual
funds? To answer that, we need to get down to brass tacks–what exactly is a mutual
fund?Very simply, a mutual fund is an investment vehicle that pools in the monies of
several investors, and collectively invests this amount in either the equity market or the
debt market, or both, depending upon the fund’s objective. This means you can access
either the equity or the debt market, or both, without investing directly in equity or debt.
1.2 MUTUAL FUND INDUSTRY IN INDIA
The end of millennium marks 36 years of existence of mutual funds in this country. The
ride through these 36 years is not been smooth. Investors opinion is still divided. While
some are for mutual funds others are against it.
UTI commenced its operation fom july 1964. The impetus
for establishing a formal institution came from the desire to increase the propensity of the
middle and lower groups to save and to invest. UTI came into existence during a period
10
marked by great political and economic uncertainity in India. With was on the borders and
economic turmoil that depressed the financial market, entrepreneurs were hesitant to enter
capital market. 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 wise. Before, the monopoly
of the market had seen an ending phase: the Assent under Management(AUM) was
Rs.67bn. The private sector entry to the fund family raised the AUM to Rs.470bn in March
1993 and till April 2004; it reached the height of 1,540bn.
Putting the AUM of the Indian Mutual Funds Industry into
comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of
the total depostits held by the Indian banking industry.
The main reason of its poor growth is theat the mutual fund industry in India is new in the
country. Large sections of Indian investrors are yet to be intellect wih the concept. Hence,
it is the prime responsibility of all mutual fund companies, to market the product correctly
abreast of selling.
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 Act of Parliament. It was set up by the
Reserve Bank of India and functioned uned the Regulatory and admisnistrative control of
the Reserve Bank f India. In 1978 UTI was de-linked from RBI and the Industrial
Development Bank of India(IDBI) took ove the regulatory and admistrative control in
11
place of RBI. The first scheme launched bye UTI was Unit Scheme 1964. At te end of 1988
UTI had Rs.6,700 crores of assets under management.
Second phase 1987-1993(entry of public sector funds)
The period 1986-1993 can be termed as the period of public sector mutual funds (PMSs).
From one player in 1985 the number increased to 8 in 1993. Entry of non-UTI mutual
funds. SBI mutual fund was the first followed Canbank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Oct 90), Bank of
Baroda Mutual fund (oct 92). LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.
47,000 as assets under management. The industry was one-entity show till 1986 when the
UTI monopoly was broken when SBI and BOI, LIC, GIC etc. sponsored by public sector
banks. Starting with an asset base of Rs. 0.25bn in 1964 the industry has grown at a
compounded average growth rate of 26.34% to its current size of Rs. 1130bn.
Third phase 1990-2003 (entry of private sector funds)
When the private sector made its debut in 1993-94, the stock market was booming. Also,
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. Other Private sector mutual funds are Morgan Sanley, Jardine
Fleming, JP Morgan, George Soros and Capital International along with the host of
domestic players join the party. The 1993 SEBI (Mutual Fund)
Regulations substituted by a more comprehensive and revised Mutual Find regulations
1996. But for the equity funds, the period of 1994-96 was one of the worst in the history of
Indian Mutual Funds, But the year 1999 saw immense future potential and developments
in this sector. This year signaled the year of resurgence of mutual funds and the regaining
of investor confidence in these MF’s. As at the end of January 2003, There were 33 mutual
12
fund with total assets of Rs.1,21,805 crores. The Unit Trust of India with Rs. 44,541 crores
of assets under management was way ahead of other mutual funds.
Fourth Phase – Since February 2003
This phase had bitter experience for UTI. It was bifurcated into two separate entities. One
is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835 crores (as
on January 2003). The specified undertaking of Unit Trust of India, functioning under an
adminisratior and unde the rules framed by Government of India and Does not come under
the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC, It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000 crores
of AUM and with the setting up of a UTI mutual fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private
sector funds, the mutual fund industry has entered its current phase of consolidation
and growth. As at the end of September 2004, There were 29 fund, Which manage
assets of Rs. 153108 crores under 421 Structure of Mutual Funds in India. At the end
of year 2006 the AUM crossed 2,50,000 crores.
GROWTH IN ASSETS UNDER MANAGEMENT
13
The essential features of the mutual funds distinguishing from other of the
investments are:-
 The mutual fund is a trust into which many relatively small investors invest their
money to form a large pool of cash which is then invested in securities by the manager of
the trust.
 The price at which units can be bought and sold is governed solely by the value of
the underlying securities held by the MF and dealing in units are on the basis of net market
value of the investment per unit.
 The managers of MF are obliged to redeem any units in issue on demand or certain
specified period.
 All dividend income that the MF receives on its investments is paid out to unit
holders.
 Since the unit held by investor evidences the ownership of the fund’s assets, the
value of an investors part ownership is determined by the NAV of the number of units held.
1.3 Conceptual Framework of Mutual Fund
A mutual fund is constituted as a public trust created under the Indian Trust Act, 1882.
SEBI (mutual fund) regulations, 1996 regulate the structure of the mutual funds in India.
As per these regulations should have the following three-tier structure:
i) Sponsor
ii) Trust/trustee
iii) Asset Management Company
Apart from this mutual fund consist of
14
Sponsor
Sponsor is the person who acting alone or in combination with another body corporate
establishes a mutual fund. The sponsor establishes the mutual fund and registers the same
with SEBI. Sponsor appoints the Trustees, custodians and the AMC with prior approval of
SEBI and in accordance with SEBI Regulations. Sponsor must have a 5-year track record
of business interest in the financial markets. Sponsor must have been profit making in at
least 3 of the above 5 years. Sponsor must contribute at least 40% of the net worth of the
Investment Managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible
or liable for any loss or shortfall resulting from the operation of the Schemes beyond the
initial contribution made by it towards setting up of the Mutual Fund.
 Trust
The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian
Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration
Act, 1908.
 Trustee
15
Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals).
The main responsibility of the Trustee is to safeguard the interest of the unit holders and
inter alia ensure that the AMC functions in the interest of investors and in accordance with
the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the
provisions of the Trust Deed and the Offer Documents of the respective Schemes. At least
2/3rd directors of the Trustee are independent directors who are not associated with the
Sponsor in any manner.
 Asset Management Company (AMC)
The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The
AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to
act as an asset management company of the Mutual Fund. At least 50% of the directors of
the AMC are independent directors who are not associated with the Sponsor in any manner.
The AMC must have a net worth of at least 10 crore at all times.
 Registrar and Transfer Agent
The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to
the Mutual Fund. The Registrar processes the application form, redemption requests and
dispatches account statements to the unit holders. The Registrar and Transfer agent also
handles communications with investors and updates investor records.
 Custodian
A custodian is an agent, bank, trust company, or other organization which holds and
safeguards an individual's, mutual funds, or investment company's assets for them.
2.1 Concept of a Mutual Fund
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
16
these investments and the capital appreciation realized is shared by its unit holders in
proportion to 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. The flow chart below
describes broadly the working of a mutual fund:-
Savings form an important part of the economy of any nation. With savings invested in
various options available to the people, the money acts as the driver for growth of the
country. Indian financial scene too presents multiple avenues to the investors. Though
certainly not the best or deepest of markets in the world, it has ignited the growth rate in
mutual fund industry to provide reasonable options for an ordinary man to invest his
savings.
Investment goals vary from person to person. While somebody wants security, others might
give more weightage to returns alone. Somebody else might want to plan for his child’s
education while somebody might be saving for the proverbial rainy day or even life after
retirement. With objectives defying any range, it is obvious that the products required will
vary as well.
Investors earn from a Mutual Fund in three ways:
1. Income is earned from dividends declared by mutual fund schemes from time to
time.
17
2. If the fund sells securities that have increased in price, the fund has a capital gain.
This is reflected in the price of each unit. When investors sell these units at prices
higher than their purchase price, they stand to make a gain.
3. If fund holdings increase in price but are not sold by the fund manager, the fund's
unit price increases. You can then sell your mutual fund units for a profit. This is
tantamount to a valuation gain.
Though still at a nascent stage, Indian MF industry offers a plethora of schemes and serves
broadly all type of investors. The range of products includes equity funds, debt, liquid, gilt
and balanced funds. There are also funds meant exclusively for young and old, small and
large investors. Moreover, the setup of a legal structure, which has enough teeth to
safeguard investors’ interest, ensures that the investors are not cheated out of their hard-
earned money. All in all, benefits provided by them cut across the boundaries of investor
category and thus create for them, a universal appeal.
Investors of all categories could choose to invest on their own in multiple options but opt
for mutual funds for the sole reason that all benefits come in a package.
Advantages of Mutual Funds
1. Professional Management
Mutual Funds provide the services of experienced and skilled professionals, backed by a
dedicated investment research team that analyses the performance and prospects of
companies and selects suitable investments to achieve the objectives of the scheme. This
risk of default by any company that one has chosen to invest in, can be minimized by
investing in mutual funds as the fund managers analyze the companies’ financials more
minutely than an individual can do as they have the expertise to do so. They can manage
the maturity of their portfolio by investing in instruments of varied maturity profiles.
2. Diversification
18
Mutual Funds invest in a number of companies across a broad cross-section of industries
and sectors. This diversification reduces the risk because seldom do all stocks decline at the
same time and in the same proportion. You achieve this diversification through a Mutual
Fund with far less money than you can do on your own.
3. ConvenientAdministration
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as
bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds
save your time and make investing easy and convenient.
4. ReturnPotential
Over a medium to long-term, Mutual Funds have the potential to provide a higher return as
they invest in a diversified basket of selected securities. Apart from liquidity, these funds
have also provided very good post-tax returns on year to year basis. Even historically, we
find that some of the debt funds have generated superior returns at relatively low level of
risks. On an average debt funds have posted returns over 10 percent over one-year horizon.
The best performing funds have given returns of around 14 percent in the last one-year
period. In nutshell we can say that these funds have delivered more than what one expects
of debt avenues such as post office schemes or bank fixed deposits. Though they are
charged with a dividend distribution tax on dividend payout at 12.5 percent (plus a
surcharge of 10 percent), the net income received is still tax free in the hands of investor
and is generally much more than all other avenues, on a post-tax basis.
5. LowCosts
Mutual Funds are a relatively less expensive way to invest compared to directly investing
in the capital markets because the benefits of scale in brokerage, custodial and other fees
translate into lower costs for investors.
6. Liquidity
19
In open-end schemes, the investor gets the money back promptly at net asset value related
prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock
exchange at the prevailing market price or the investor can avail of the facility of direct
repurchase at NAV related prices by the Mutual Fund. Since there is no penalty on pre-
mature withdrawal, as in the cases of fixed deposits, debt funds provide enough liquidity.
Moreover, mutual funds are better placed to absorb the fluctuations in the prices of the
securities as a result of interest rate variation and one can benefits from any such price
movement.
7. Transparency
Investors get regular information on the value of your investment in addition to disclosure
on the specific investments made by your scheme, the proportion invested in each class of
assets and the fund manager's investment strategy and outlook.
8. Flexibility
Through features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans; you can systematically invest or withdraw funds according to your
needs and convenience.
9. Affordability
A single person cannot invest in multiple high-priced stocks for the sole reason that his
pockets are not likely to be deep enough. This limits him from diversifying his portfolio as
well as benefiting from multiple investments. Here again, investing through MF route
enables an investor to invest in many good stocks and reap benefits even through a small
investment. Investors individually may lack sufficient funds to invest in high-grade stocks.
A mutual fund because of its large corpus allows even a small investor to take the benefit
of its investment strategy.
10.ChoiceofSchemes
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
20
11.WellRegulated
All Mutual Funds are registered with SEBI and they function within the provisions of strict
regulations designed to protect the interests of investors. The operations of Mutual Funds
are regularly monitored by SEBI.
12.Tax Benefits
Last but not the least, mutual funds offer significant tax advantages. Dividends distributed
by them are tax-free in the hands of the investor. They also give you the advantages of
capital gains taxation. If you hold units beyond one year, you get the benefits of indexation.
Simply put, indexation benefits increase your purchase cost by a certain portion, depending
upon the yearly cost-inflation index (which is calculated to account for rising inflation),
thereby reducing the gap between your actual purchase cost and selling price. This reduces
your tax liability. What’s more, tax-saving schemes and pension schemes give you the
added advantage of benefits under Section 88. You can avail of a 20 per cent tax exemption
on an investment of up to Rs 10,000 in the scheme in a year.
Indian Equity
Income from
dividends-(investor-
free & DDT-NIL)
Iincome from
capital gains-(short
term-15% & long
term- free)
Others
Income from
dividends-(investor-
free & DDT-individual
& HUL-14.025 &
others-22.440
Income from capital
gains-(short term-
as per tax slab &
long term-10% or
20% with indexation
21
Disadvantages of mutual funds
Mutual funds are good investment vehicles to navigate the complex and unpredictable
world of investments. However, even mutual funds have some inherent drawbacks.
Understand these before you commit your money to a mutual fund.
1. No assured returns and no protection of capital
If you are planning to go with a mutual fund, this must be your mantra: mutual funds do not
offer assured returns and carry risk. For instance, unlike bank deposits, your investment in
a mutual fund can fall in value. In addition, mutual funds are not insured or guaranteed by
any government body (unlike a bank deposit, where up to Rs 1 lakh per bank is insured by
the Deposit and Credit Insurance Corporation, a subsidiary of the Reserve Bank of India).
There are strict norms for any fund that assures returns and it is now compulsory for funds
to establish that they have resources to back such assurances. This is because most closed-
end funds that assured returns in the early-nineties failed to stick to their assurances made
at the time of launch, resulting in losses to investors. A scheme cannot make any guarantee
of return, without stating the name of the guarantor, and disclosing the net worth of the
guarantor. The past performance of the assured return schemes should also be given.
2. Restrictive gains
Diversification helps, if risk minimization is your objective. However, the lack of
investment focus also means you gain less than if you had invested directly in a single
security. Assume, Reliance appreciated 50 per cent. A direct investment in the stock would
appreciate by 50 per cent. But your investment in the mutual fund, which had invested 10
per cent of its corpus in Reliance, will see only a 5 per cent appreciation.
3. Taxes
During a typical year, most actively managed mutual funds sell anywhere from 20 to 70
percent of the securities in their portfolios. If your fund makes a profit on its sales, you will
pay taxes on the income you receive, even if you reinvest the money you made.
22
4. Management risk
When you invest in a mutual fund, you depend on the fund's manager to make the right
decisions regarding the fund's portfolio. If the manager does not perform as well as you had
hoped, you might not make as much money on your investment as you expected. Of
course, if you invest in Index Funds, you forego management risk, because these funds do
not employ managers.
TYPES OF MUTUAL FUND SCHEMES
There are a wide variety of Mutual Fund schemes that cater to your needs, whatever your
age, financialposition, risk tolerance and return expectations. Whether as the foundation of
your investmentprogramme or as a supplement, Mutual Fund schemes can help you meet
your financial goals.
TYPES OF MUTUAL FUND SCHEME
By structure
By Investment
Objectives
Other Schemes
Open-ended
Schemes
Sector specific fund
Tax saving fund
Equity SchemesDebt Schemes
Close Ended
Schemes
23
Figure 3
(AI) By Structure
 Open-Ended Schemes
These do not have a fixed maturity. You deal directly with the Mutual Fund for your
investments and redemptions. The key feature is liquidity. You can conveniently buy and
sell your units at Net Asset Value ("NAV") related prices.
 Close-Ended Schemes
Schemes that have a stipulated maturity period (ranging from 2 to 15 years) are called
close-ended schemes. You can invest directly in the scheme at the time of the initial issue
and thereafter you can buy or sell the units of the scheme on the stock exchanges where
they are listed. The market price at the stock exchange could vary from the scheme's NAV
on account of demand and supply situation, Unit holders' expectations and other market
factors.
One of the characteristics of the close-ended schemes is that they are generally traded at a
discount to NAV but closer to maturity, the discount narrows. Some close-ended schemes
give you an additional option of selling your units directly to the Mutual Fund through
periodic repurchase at NAV related prices. SEBI Regulations ensure that at least one of the
two exit routes are provided to the investor.
 Interval Schemes
These combine the features of open-ended and close-ended schemes. They may be traded
on the stock exchange or may be open for sale or redemption during predetermined
intervals at NAV related prices.
Interval Schemes Index Schemes
Small cap fund
MM Mutual
fund
Other Debt
Schemes
FMP
Any Other
Equity Fund
Mid cap Fund
Large cap fund
24
(B) By Investment Objective
 Growth Schemes
Aim to provide capital appreciation over the medium to long term. These schemes
normally invest amajority of their funds in equities and are willing to bear short-term
decline in value for possible futureappreciation. These schemes are not for investors
seeking regular income or needing their money backin the short term.
 Income Schemes
Aim to provide regular and steady income to investors. These schemes generally invest in
fixed income securities such as bonds and corporate debentures. Capital appreciation in
such schemes may be limited.
Ideal for
 Retired people and others with a need for capital Stability and regular income
 Investor who need some income to supplement their earnings.
 Balanced Schemes
Aim to provide both growth and income by periodically distributing a part of the income
and capital gains they earn. They invest in both shares and fixed income securities in the
proportion indicated in their offer documents. In a rising stock market the NAV of these
schemes may not normally keep pace, or fall equally when the market falls.
Ideal for:
 Investors looking for a combination of income and moderate growth.
25
 Money Market/Liquid Schemes
Aim to provide easy liquidity, preservation of capital and moderate income. These schemes
generally invest in safer, short-term instruments such as treasury bills, certificates of
deposit, commercial paper and inter-bank call money. Returns on these schemes may
fluctuate, depending upon the interest rates prevailing in the market.
Ideal for:
 Corporate and individual investors as a means to park their surplus funds
for short periods or awaiting a more favorable investment alternative.
 Other Schemes
 Tax Saving Schemes
These schemes offer tax rebates to the investors under tax laws as prescribed from time to
time. This is made possible because the Government offers tax incentives for investment in
specified avenues. For example, Equity Linked Savings Schemes (ELSS) and Pension
Schemes. The details of such tax saving schemes are provided in the relevant offer
documents.
Ideal for:
 Investors seeking tax rebates.
 Special Schemes
This category includes index schemes that attempt to replicate the performance of a
particular index such as the BSE Sensex or the NSE 50, or industry specific schemes
(which invest in specific industries) or sectorial schemes (which invest exclusively in
segments such as A Group shares or initial public offerings)
26
 Different Modes of Receiving the Income
Earned From Mutual Fund Investments
Mutual funds offer three methods of receiving income:
Growth Plan:
In this plan, dividend is neither declared nor paid out to the investors but it is built
into the value of the NAV. In the other words, the NAV increases over time due to
such incomes and the investor realizes only the capital appreciation on redemption
of his investment.
Income plan or Dividend Payout Plan:
In this plan, dividends are paid-out to the investors. In other words, the NAV only
reflects the capital appreciation or depreciation in the market price of the underlying
portfolio.
Dividend Reinvestment Plan:
In this plan, dividend is declared but not paid out to the investors. Instead, it is
reinvested back in to the scheme at the then prevailing NAV. In other words, the
27
RISK
TYPE OF FUND
Money
Market Fund
Debt Fund
Gilt Fund
Hybrid Fund
Equity Fund
Aggressive
Growth Fund
Flexible Asset
Allocation Fund
Growth Funds
High Yield
Debt Funds
Diversified Equity
Fund
Index Fund
Value Funds
Money Market
Funds
Equity Income
Funds
Focused
Debt Funds
Diversified
Debt Fund
Balanced FundsGilt Funds
RISK HIERARCHY OF MUTUAL FUNDS
Growth and
Income Funds
28
Mutual Fund Investment Strategies
 Systematic Investment Plan (SIP):
SIPs entail an investor to invest a fixed sum of money at regular intervals in MF scheme
the investor has chosen. This may help you gain from any appreciation in the event of
upside or alternatively, average your cost during downside.
Seeing the present volatility in the market SIP is the best option available to the investor
due to regular entry into the market which causes rupee cost averaging and hence covers
the volatility.
 Systematic Withdrawal Plan (SWPs):
These plans are best suited for people nearing retirement. In these plans investor invest in a
mutual fund scheme and is allowed to withdraw a fixed sum of money at regular intervals
to take care of expenses.
 Systematic Transfer Plan (STP):
They allow the investor to transfer on a periodic basis a specified amount from one scheme
to another with in the same fund family meaning two schemes belonging to the same
mutual fund. A transfer will be treated as redemption of units from the scheme from which
the transfer is made.
2.2 HOW TO INVEST IN MUTUAL FUNDS.
Step One- Identify your investment needs. Your financial goals will vary, based on your
age, lifestyle, financial independence, family commitments, level of income and expenses
among many other factors. Therefore, the first step is to assess your needs.
29
Step Two- Choose the right Mutual Fund. Once you have a clear strategy in mind, you
now have to choose which Mutual Fund and scheme you want to invest in. The offer
document of the scheme tells you its objectives and provides supplementary details like the
track record of other schemes managed by the same Fund Manager. Some factors to
evaluate before choosing a particular Mutual Fund are:
 The track record of performance over the last few years in relation to the
appropriate yardstick and similar funds in the same category.
 How well the Mutual Fund is organized to provide efficient, prompt and
personalized service.
 Degree of transparency as reflected in frequency and quality of their
communications.
Step Three- Select the ideal mix of Schemes.
Investing in just one Mutual Fund scheme may not meet all your investment needs. You
may consider investing in a combination of schemes to achieve your specific goals.
The following charts could prove useful in selecting a combination of schemes that
satisfy your needs.
Figure 4
This plan may suit
 Investor seeking Income & moderate growth.
 Investor looking for growth & stability with moderate risk
Aggressive Plan
Growth Scheme
Income Scheme
Money market Scheme
Balanced Scheme
30
Figure 5
Step Four - Invest regularly.
Step Five- Keep your taxes in mind
Step Six- Start early It is desirable to start investing early and stick to a regular investment
plan. If you start now, you will make more than if you wait and invest later. The power of
compounding lets you earn income on income and your money multiplies at a compounded
rate of return.
Step Seven-The final step all you need to do now is to get in touch with a Mutual Fund or
yourAgent/broker and start investing. Reap the rewards in the years to come. Mutual Funds
are suitable for every kind of investor-whether starting a career or retiring, conservative or
risk taking, growth oriented or income seeking.
What fees and commissions will you pay when you invest in mutual
funds?
The fees and commissions you may be charged can vary widely from one fund, and one
dealer, to the next. Some of the charges may be negotiable, but you should make sure that
you understand all of the costs before you invest. There are two main costs to consider –
themanagement and operating expenses that are charged tothe fund each year, and the
sales charges (or loads) that you pay when you buy or sellthe fund.
Conservative Plan
Growth Scheme
Income Scheme
Money Scheme
Balanced Scheme
31
Management and Operating Expenses are expenses paid each year by the fund and
include such things as the manager’s fees, legal and accounting fees, custodial fees and
bookkeeping costs. The Management Expense Ratio (MER) is the percentage of the
fund’s average net assets that these expenses represent. For example, if a $100 million fund
has $2 million in costs for the year its MER will be 2%. MERs can range from under 1%
per year for some money market funds to almost 3% for some equity funds. The higher the
MER, the greater the impact on the fund’s performance and the return to its investors
because these expenses are removed before the value is reported.
Sales Charges (Loads) are the commissions that you may have to pay when you buy or
redeem units of a fund. Sales charges may be applied when you buy units of the fund
(Afront-end load), when you redeem your units (a back-end load), or there may be no
sales charges at all (no-load).Where front-end loads are charged, the rate can vary
fromdealer to dealer and may be negotiable. Shop around, andremember that every dollar
you pay up-front in commissionis a dollar that does not go to work for you in the
fund.Many funds are sold on a back-end load basis, meaninggenerally that the sales charges
are applied only when youredeem the fund. Back-end load fees are paid by the
fundmanagement company to your mutual fund salesperson – youdo not pay this fee. You
do, however, pay a ‘redemption fee’ ifyou redeem your units in the fund before a certain
time period,typically 7 years. Redemption fees decline each year thatyou hold the
investment.
For example, you might have to paya 6% fee if you redeem the fund after one year, 4% if
youredeem after three years, and no commission if you redeemafter seven years.An
increasing number of funds are being sold on a no-loadbasis, in which investors pay no
sales charges, but beforeyou decide that a no-load fund is right for you, consider thefund’s
performance, its management expense ratio and thelevel of service and advice you will
receive.
32
Different Avenues of investment
OPTIONS RETURN RISK LIQUIDITY
Savings account Very low Very low High
Fixed Deposits Low Low Low
Direct Equity Very high return Very high High
Insurance Medium Low Low
Company fixed deposits Low High Very low
Debentures Low Medium Medium
Bonds Low Low Low
Mutual funds High Medium High
Post office schemes Low Low Low
Government securities Low Low Low
Real estate High High Low
Currency High High High
Bullion Medium High Medium
RISKS OF INVESTING IN MUTUAL FUNDS
Market / Interest Risk
Volatility of prices leading to “floating” returns
Largely mitigated with a holding period of over 6 months
Credit Risk
Potential default of bonds on the portfolio
Equity Risk
Possibility of the fund manager not able to meet redemptions
33
IMPACT OF TECHNOLOGY
Mutual fund, during the last one decade brought out several innovations in their products
and is offering value added services to their investors. Some of the value added services
that are being offered are:
• Electronic fund transfer facility.
• Investment and re-purchase facility through internet.
• Added features like accident insurance cover, med claim etc.
• Holding the investment in electronic form, doing away with the traditional form of
unitcertificates.
• Cheque writing facilities.
• Systematic withdrawal and deposit facility.
ONLINE MUTUAL FUND TRADING
The innovation the industry saw was in the field of distribution to make it more easily
accessible to an ever increasing number of investors across the country. For the first time in
India the mutual fund start using the automated trading, clearing and settlement system of
stock exchanges for sale and repurchase of open-ended de-materialized mutual fund units.
Systematic Investment Plan (SIP) and Systematic Withdrawal Plan (SWP) were options
introduced which have come in very handy for the investor to maximize their returns from
their investments. SIP ensures that there is a regular investment that the investor makes on
specified dates making his purchases to spread out reducing the effect of the short term
volatility of markets. SWP was designed to ensure that investors who wanted a regular
income or cash flow from their investments were able to do so with a pre-defined
automated form. Today the SW facility has come in handy for the investors to reduce their
taxes.
34
35
36
2.1 COMPANY PROFILE-
IDFC have been an integral part of the country's development story since 1997, when our
company was formed with the specific mandate to build the nation.
Since 2005, we have built on our vision to be the 'one firm' that looks after the diverse needs
of infrastructure development. Whether it is financial intermediation for infrastructure
projects and services, adding value through innovative products to the infrastructure value
chain or asset maintenance of existing infrastructure projects, we focus on supporting
companies to get the best return on investments.
Our growth has been driven by the substantial investment requirements of the infrastructure
sector in India combined with the growth in the Indian economy over the last several years.
Our ability to tap global as well as Indian financial resources makes us the acknowledged
experts in infrastructure finance. This, coupled with a strong synergy between the company
management and key shareholders, and a dedicated team of over 550 people makes us an
organization that is committed to improving the face of India's infrastructure sector.
At IDFC, our commitment to building India's infrastructure goes beyond business. We work
closely with government entities and regulators to advise and assist them in formulating
policy and regulatory frameworks that support private investment and public-private
partnerships in infrastructure development.
Mission
“To be the leading knowledge-driven financial services company, creating enduring
value, promoting infrastructure and nation building”
Values
Integrity
We engage in honest and straight forward communication with all stakeholders and adhere
to the highest ethical standards in everything we do. Our reputation is paramount. We will
act in the best interests of our clients but without compromising our values and principles.
Nurturing Humility
37
We are modest enough to know that we can be wrong and smart enough to learn from our
mistakes. We treat everyone as an equal— no task is beneath us.
Stewardship
We act as custodians of our firm and accept the charge of passing on a better business than
the one we inherited. Our actions will be guided by rules and ethical principles creating long
term value with due care for society and environment.
Partnership
We emphasize a ONE FIRM culture. We foster mutual respect and proactively collaborate
with each other, with clients, and with partners keeping just one thing in mind – to be the
best at what we do.
Initiative
We encourage new ideas and independent action within a culture that fosters sharing
knowledge and information, critical debate and constructive dissent.
Responsibility
We take complete ownership for our actions, emphasizing a results-oriented and problem-
solving approach to business. We are personally accountable to the communities that we
serve.
Excellence
We constantly strive to raise industry standards, be the employer of choice, and work to be
the best rather than the biggest. Dedication to excellence results in superior execution and
generates creative, imaginative and innovative outcomes.
Board Committees
Audit
Committee
: Mr. S. H. Khan
Chairman
Dr. Omkar Goswami
Mr. Gautam Kaji
Ms. Marianne Økland
Ms. Snehlata
Shrivastava
Nomination &
Remuneration
Committee
: Dr. Omkar Goswami
Chairman
Dr. Rajiv B. Lall
Mr. Gautam Kaji
Mr. Donald Peck
Stakeholders'
Relationship
Committee
: Mr. S. H. Khan
Chairman
Dr. Rajiv B. Lall
Mr. Vikram Limaye
38
Corporate
Social
Responsibility
Committee
: Dr. Rajiv B. Lall
Chairman
Dr. Omkar Goswami
Mr. Vikram Limaye
Executive
Committee
: Dr. Rajiv B. Lall
Chairman
Mr. S. S. Kohli
Mr. S. H. Khan
Dr. Omkar Goswami
Mr. Donald Peck
Mr. Vikram Limaye
Risk
Committee
: Mr. Gautam Kaji
Chairman
Mr. S. H. Khan
Dr. Rajiv B. Lall
Ms. Marianne Økland
Mr. Vikram Limaye
History & Timelines
Our Group was born out of the need for a specialized financial intermediary for
infrastructure. Incorporated on January 30, 1997 in Chennai, our company was set up on the
recommendations of the 'Expert Group on Commercialisation of Infrastructure Projects'
under the Chairmanship of Dr. Rakesh Mohan.
Since then, we have been a leading catalyst for providing private sector infrastructure
development in India. We focus on developing and leveraging our knowledge base in the
infrastructure space to devise and provide appropriate financing solutions to our customers.
Our strong capitalization reflects the crucial role that we play in infrastructure development.
1997
 IDFC is founded on the recommendations of the 'Expert Group on Commercialization of
Infrastructure Projects' under the Chairmanship of Dr. Rakesh Mohan. The group is
conceptualized to channel private capital into commercially viable projects.
1999
 Is notified as a Public Financial Institution under Section 4A of the Companies Act.
2000
 Gets registered with SEBI as a merchant banker.
39
2001
 Gets registered with SEBI as a debenture trustee.
 Sets up Infrastructure Development Corporation (Karnataka) Limited (iDeCK)
2002
 Sets up IDFC Private Equity as an investment manager for private equity funds.
 Sets up Uttaranchal Infrastructure Development Company Limited (UDEC).
2003
 Successfully raises $200 million for the India Development Fund, the first infrastructure-
focused private equity fund.
2005
 Becomes a public company after listing its shares on NSE and BSE.
2006
 Successfully raises $450 million for its second infrastructure - focused private equity fund.
2007
 Raises Rs. 2,100 crore through QIP.
 Sets up IDFC Project Equity Company Limited as a specialized project finance entity
focused on developing Indian infrastructure projects.
 Establishes IDFC Projects to develop, implement, own and operate projects in the
infrastructure space.
2008
 Successfully raises $930 million through the India Infrastructure Fund to invest equity
capital in infrastructure projects and $700 million in its third private equity fund.
 Enters into asset management by acquiring the AMC business of Standard Chartered Bank
in India.
 Incorporates IDFC Capital (Singapore) Pte Limited, for an emerging markets private equity
fund-of-funds business.
2009
 The company's loan book crosses Rs. 20,000 crore with more than 200 infrastructure
projects funded.
40
 Establishes IDFC Foundation to focus on capacity building, policy advisory and
sustainability initiatives.
 Becomes part of Nifty 50.
2010
 Raises additional capital of Rs. 26,542 million through a Qualified Institution Placement at
Rs.168.25 per share and CCPS at a conversion price of Rs.176 per share. Government
shareholding reduces to 18%.
 Classified as an Infrastructure Finance Company (IFC).
 Raises Rs. 480 crores in the first tranche of its Long Term Infrastructure Bonds.
2011
 Certified as India's first "Green Data Centre".
 IDFC opens an office in US.
 Sets up IDFC Foundation as a Section 25 Company for all its developmental work.
 IDFC & Natixis Global Asset Management enter into a strategic partnership.
 Raise USD 310 million of ECB's.
 Starts "Partners Program".
2012
 IDFC Completes 15 years with over 1.5 million investors.
 Launches "In Our Hands" an youth engagement initiative, to socialize the policy advocacy
work being done under the aegis of the India Infrastructure Report (IIR).
 Releases a handbook titled "EVOLVING PERSPECTIVES IN THE DEVELOPMENT OF
INDIAN INFRASTRUCTURE", encompassing the policy work done in the last 15 years.
IDFC business
 Corporate Investment
Banking
 Project Finance
 Financial Markets Group
 Securities
 Alternative Asset
Management
 Private Equity
 Infrastructure
 Real Estate
 Public Market
Asset Management
 Mutual Fund
 Foundation
 Government Advisory Services
 Policy Advocacy
 Capacity Building Initiatives
41
 Community Engagement
42
Structure of the organization
Company’s structure
Structure of the company consists of following entities:-
 Country head
 State head distribution channel
 Cluster heads of investments
 Individual brokers
 Back office operation
 Sales team
State head looks after all the operation in Karnataka region like Bellary, Mysore and other cities of Karnataka
and coordinates with asset management companies i.e. AMCs and reports to country head, and cluster heads
of investments are responsible for sales team and report to state head distribution channel and sales people
who directly interact with investors for the investments report to cluster head investment. Sales team is
supported by back office operations, like role of back office operation
43
2.2 SWOT analysis of the company and its competitor
STRENGTH
 BRANDNAME
 KNOWN TO BE ETHICAL
 PRESENCE IN ALL OVER INDIA
 EXPERIENCED PEOPLE IN THE
COMPANY
 UNBIASNESS
WEAKNESS
 BRANCHASE OF COMPANY IS LESS
ONLY 27 IN INDIA.
 LACK OF MANPOWER
 NOT HAVING NECESSARY
INFRASTRUCTURE
OPPORTUNITY
 ZERO BASE
 LACK OF PROPER SERVICES
AVAILABLE IN THE MARKET
 ABSENCE OF LEADER IN THE
MARKET, IN DISTRIBUTION (
MUTUAL FUNDS)
 HUGE POTENTIAL OF MUTUAL
FUND MARKET
 GROWTH OF MUTUAL FUND
MARKET
 INCREASE IN INCOME LEVEL OF
PEOPLE
THREATS
 INDIVIDUAL BROKERS
 ITS COMPETITOR’S
PROMOTIOAL ACTIVITIES
 ITS COMPETITOR’NEW BUSINESS
PLANS
 ATTRITION
 LACK OF MANPOWER
 NOT HAVING NECESSARY
INFRASTRUCTURE
44
Average Assets under Management
Assets under management (AUM) is a financial term denoting the market value of all the
funds being managed by a financial institution (a mutual fund, hedge fund, private equity
firm, venture capital firm, or brokerage house) on behalf of its clients, investors, partners,
depositors, etc.
The average Assets under management of all Mutual funds in India for the quarter Jul-13 to
Sep-13 (in INR billion) is given below:
Sr No Mutual Fund Name Average AUM %
1 HDFC Mutual Fund 1,034.42 12.70%
2 Reliance Mutual Fund 952.28 11.69%
3 ICICI Prudential Mutual Fund 853.03 10.48%
4 Birla Sun Life Mutual Fund 773.44 9.50%
5 UTI Mutual Fund 700.57 8.60%
6 SBI Mutual Fund 595.58 7.31%
7 Franklin Templeton Mutual Fund 448.12 5.50%
8 IDFC Mutual Fund 396.65 4.87%
9 Kotak Mahindra Mutual Fund 352.99 4.34%
10 DSP BlackRock Mutual Fund 304.86 3.74%
11 Tata Mutual Fund 179.66 2.21%
12 Deutsche Mutual Fund 170.59 2.10%
13 L&T Mutual Fund 150.79 1.85%
14 Sundaram Mutual Fund 139.47 1.71%
15 JPMorgan Mutual Fund 132.57 1.63%
16 Religare Invesco Mutual Fund 125.12 1.54%
17 Axis Mutual Fund 123.18 1.51%
18 LIC NOMURA Mutual Fund 79.76 0.98%
19 Canara Robeco Mutual Fund 76.16 0.94%
20 HSBC Mutual Fund 67.18 0.83%
21 JM Financial Mutual Fund 62.44 0.77%
22 Baroda Pioneer Mutual Fund 52.63 0.65%
23 IDBI Mutual Fund 47.71 0.59%
24 PRINCIPAL Mutual Fund 43.00 0.53%
25 Goldman Sachs Mutual Fund 41.49 0.51%
45
Sr No Mutual Fund Name Average AUM %
26 BNP Paribas Mutual Fund 35.38 0.43%
27 Morgan Stanley Mutual Fund 32.90 0.40%
28 Peerless Mutual Fund 28.35 0.35%
29 Taurus Mutual Fund 27.32 0.34%
30 Pramerica Mutual Fund 21.66 0.27%
31 Union KBC Mutual Fund 19.80 0.24%
32 Indiabulls Mutual Fund 16.06 0.20%
33 ING Mutual Fund 11.05 0.14%
34 PineBridge Mutual Fund 11.03 0.14%
35 BOI AXA Mutual Fund 10.82 0.13%
36 Mirae Asset Mutual Fund 5.08 0.06%
37 Motilal Oswal Mutual Fund 4.37 0.05%
38 Quantum Mutual Fund 3.15 0.04%
39 PPFAS Mutual Fund 2.67 0.03%
40 Escorts Mutual Fund 2.52 0.03%
41 Sahara Mutual Fund 2.33 0.03%
42 IIFL Mutual Fund 2.07 0.03%
43 Edelweiss Mutual Fund 1.94 0.02%
44 Daiwa Mutual Fund 0.51 0.01%
45 IL&FS Mutual Fund (IDF) - 0.00%
46 Shriram Mutual Fund - 0.00%
47 SREI Mutual Fund (IDF) - 0.00%
Grand Total 8,142.68
100.0%
46
CHRONICLE ORDER OF COMPANIES GIVING MOST RETURN.
Fund Category 5 Yr
Return
DSPML T.I.G.E.R. Fund Equity: Diversified 45.45
Tata Infrastructure Equity: Diversified 44.92
Magnum Contra Equity: Diversified 44.81
Kodak Opportunities Equity: Diversified 44.57
UTI Infrastructure Equity: Diversified 43.14
Reliance Growth Equity: Diversified 42.88
Magnum Multiplier Plus Equity: Diversified 42.76
Sundaram BNP Paribas Select Midcap Equity: Diversified 40.64
47
HDFC Top 200 Equity: Diversified 39.29
BoB Growth Equity: Diversified 38.57
Principal Child Benefit Hybrid: Equity-oriented 36.79
Magnum Balanced Hybrid: Equity-oriented 31.24
HDFC Prudence Hybrid: Equity-oriented 29.68
Birla Sun Life Income Debt: Medium-term 8.29
ABN AMRO Flexi Debt Plan Debt: Medium-term 7.78
ICICI Prudential Long-term Debt: Medium-term 7.55
Birla Dynamic Bond Retail Debt: Medium-term 7.51
Kotak Flexi Debt Debt: Medium-term 7.47
Sundaram BNP Paribas S... Equity: Diversified 43.35
ICICI Prudential Dynamic Equity: Diversified 43.26
DWS Investment Opportunity Equity: Diversified 43.07
DSPML Equity Fund Equity: Diversified 42.89
DSPML Top 100 Equity Reg Equity: Diversified 41.96
Kotak 30 Equity: Diversified 41.33
IDFC Premier Equity fund Equity-oriented 29.67
RANKING OF THE COMPANY
By looking at this table we can rank various asset management companies on the basis of asset under
management. They are as follows:
48
1) Reliance mutual fund
2) ICICI prudential mutual fund
3) UTI mutual fund
4) BIRLA sun life mutual fund
5) SBI mutual fund
By looking at this rank we can say that in India people prefer to invest in
reliance scheme and they are having great faith on Reliance Company.
SCHEMES OF IDFC
Scheme: IDFC Advantage Fund
Type Open ended growth scheme
Investment 70% in equity & 30% in Debt
pattern
Fund Objective Long term growth of capital
Investment Min of one year
horizon
Scheme: IDFC Dividend Yield plus
Type Open ended Growth Scheme
Investment 100% in equity
pattern
Fund objective Capital growth & income
Investment Min of one year
horizon
Scheme: IDFC Equity plan
49
Type Open ended equity linked savings schemes
Investment 80% in equity & 20% in short term, money market &
liquid instruments
Fund objective Long term growth of capital along with income tax
relief for investment
Investment Minimum of 3years
horizon
Scheme: IDFC Index Fund
Type Open ended index Linked Scheme
Investment 100% in Securities
pattern
Fund Objective Generate Returns
Investment Min of one Year
Horizon
Scheme: IDFC opportunities Fund
Type Open ended growth scheme
Investment 70-100% in equity, 30% in cash & money market
pattern instruments
Fund objective Long term growth of capital
Investment Minimum of one year
horizon
Scheme: IDFC Mid Cap Fund
Type Open ended growth scheme
Investment 65-100% in equity related companies with market
pattern capitalization of Rs.150 crores to Rs.1,500 crores
35% in equity related companies with a market
capitalization.
Fund Objective Long term growth of capital
Investment Minimum of 1 year
horizon
50
Scheme: IDFC Balance Fund
Type Open ended balanced scheme
Investment 50 to 75% in equity 25-50% in debt
pattern
Fund object To balance income requirements with long term growth
of capital
Investment Minimum of one year
horizon
Scheme: IDFC Asset Allocation Fund
Type Open ended fund of funds
Investment Aggressive plan 70-80% in equity 20-25% indebt
pattern Moderate plan 40-60% in equity 40-60% indebt
Conservative plan 20-25% in equity 75-80% indebt
Fund objective Income & capital Application with diversification in
equity & debt schemes in line with risk profile of
investor
Investment Minimum of one year
horizon
Scheme: IDFC Gilt Plus
Type Open ended governments securities schemes
Investment 100% in securities permitted by RBI
pattern
Fund objective To generate in income & capital appreciation through
investments in government securities.
Investment Least 6 months to 1 year
horizon
Scheme: IDFC Dynamic Bond Fund
Type Open ended income scheme
Investment 50-65% in Government securities, 25-35% in corporate
pattern bonds, 0-25% in cash liquid instruments.
51
Fund objective To generate optimal returns with high liquidity
Investment Minimum of one year
horizon
Scheme: IDFC Income Plus
Type Open ended income scheme
Investment 100% in debt & money market
pattern
Fund objective To generate consistent income
Investment Minimum of 1 year
horizon
52
53
3.1 Introduction to Study
• To study various investment alternatives and in particular investors preference
towards mutual funds.
• To study the preference of investors in today’s scenario (less risk and more return).
• To assess the risk of investors with reference to diversifiable risk & non-
diversifiable risk.
• To study market potentiality of mutual fund among investors.
• To study whether the investors are considering IDFC a better option or not.
3.2 LITERATURE REVIEW
Literature on mutual fund performance evaluation is enormous. A few research studies that
haveinfluenced the preparation of this paper substantially are discussed in this section.
Sharpe, William F. (1966) suggested a measure for the evaluation of portfolio performance.
Drawing onresults obtained in the field of portfolio analysis, economist Jack L. Treynor has
suggested a newpredictor of mutual fund performance, one that differs from virtually all
those used previously byincorporating the volatility of a fund's return in a simple yet
meaningful manner.
Michael C. Jensen (1967) derived a risk-adjusted measure of portfolio performance
(Jensen’s alpha) that estimates how much a manager’s forecasting ability contributes to
fund’s returns.
As indicated by Statman (2000), the e SDAR of a fund portfolio is the excess return of the
portfolio overthe return of the benchmark index, where the portfolio is leveraged to have the
benchmark index’sstandard deviation.
NarayanRao,ET. al., evaluated performance of Indian mutual funds in a bearmarket through
relative performance index, risk-return analysis, Treynor’s ratio, Sharpe’s ratio,
Sharpe’smeasure , Jensen’s measure, and Fama’s measure. The study used 269 open-ended
54
schemes (out of totalschemes of 433) for computing relative performance index. Then after
excluding funds whose returns areless than risk-free returns, 58 schemes are finally used for
further analysis. The results of performancemeasures suggest that most of mutual fund
schemes in the sample of 58 were able to satisfy investor’sexpectations by giving excess
returns over expected returns based on both premiums for systematic riskand total risk.
Bijan Roy, ET. al., conducted an empirical study on conditional performance of
Indianmutual funds. This paper uses a technique called conditional performance evaluation
on a sample ofeighty-nine Indian mutual fund schemes .This paper measures the
performance of various mutual fundswith both unconditional and conditional form of
CAPM, Treynor- Mazuy model and Henriksson-Mertonmodel. The effect of incorporating
lagged information variables into the evaluation of mutual fundmanagers’ performance is
examined in the Indian context. The results suggest that the use ofconditioning lagged
information variables improves the performance of mutual fund schemes, causingalphas to
shift towards right and reducing the number of negative timing coefficients.
Mishra, et al., (2002) measured mutual fund performance using lower partial moment. Inthis
paper, measures of evaluating portfolio performance based on lower partial moment are
developed.
Risk from the lower partial moment is measured by taking into account only those states in
which returnis below a pre-specified “target rate” like risk-free rate. Kshama Fernandes
(2003) evaluated index fundimplementation in India. In this paper, tracking error of index
funds in India is measured .Theconsistency and level of tracking errors obtained by some
well-run index fund suggests that it is possibleto attain low levels of tracking error under
Indian conditions. At the same time, there do seem to beperiods where certain index funds
appear to depart from the discipline of indexation. K. Pendaraki et al.studied construction of
mutual fund portfolios, developed a multi-criteria methodology and applied it tothe Greek
market of equity mutual funds. The methodology is based on the combination of discrete
andcontinuous multi-criteria decision aid methods for mutual fund selection and
composition. UTADISmulti-criteria decision aid method is employed in order to develop
mutual fund’s performance models.
55
Goal programming model is employed to determine proportion of selected mutual funds in
the finalportfolios.
Zakri Y.Bello (2005) matched a sample of socially responsible stock mutual funds
matchedto randomly select conventional funds of similar net assets to investigate
differences in characteristicsof assets held, degree of portfolio diversification and variable
effects of diversification on investmentperformance. The study found that socially
responsible funds do not differ significantly fromconventional funds in terms of any of
these attributes. Moreover, the effect of diversification oninvestment performance is not
different between the two groups. Both groups underperformed theDomini 400 Social Index
and S & P 500 during the study period.
Michael C. Jensen (1967) derived a risk-adjusted measure of portfolio performance
(Jensen’s alpha) that estimates how much a manager’s forecasting ability contributes to
fund’s returns.
As indicated by Statman (2000), the e SDAR of a fund portfolio is the excess return of the
portfolio over the return of the benchmark index, where the portfolio is leveraged to have
the benchmark index’s standard deviation. S.Narayan Rao,ET. al., evaluated performance of
Indian mutual funds in a bear market through relative performance index, risk-return
analysis, Treynor’s ratio, Sharpe’s ratio, Sharpe’s measure , Jensen’s measure, and Fama’s
measure. The study used 269 open-ended schemes (out of total schemes of 433) for
computing relative performance index. Then after excluding funds whose returns are less
than risk-free returns, 58 schemes are finally used for further analysis. The results of
performance measures suggest that most of mutual fund schemes in the sample of 58 were
able to satisfy investor’s expectations by giving excess returns over expected returns based
on both premiums for systematic risk and total risk.
56
3.3 Background Information
How to Calculate the value of a Mutual Fund:
The investor’s funds are deployed in a portfolio of securities by the fund manager. The
value of these investments keeps changing as the market price of the securities change.
Since investors are free to enter and exit the fund at any time, it is essential that the market
value of their investments is used to determine the price at which such entry and exit will
take place. The net assets represent the market value of assets, which belong to the
investors, on a given date.
Net Asset Value or NAV of a mutual fund is the value of one unit of investment in the fund,
in net asset terms.
NAV= Net Asset of the scheme / Number of Units Outstanding
Where Net Assets are calculated as:-
(Market value of investment + current assets and other assets + Accrued income – current
liabilities and other liabilities – less accrued expenses) / No. of Units Outstanding as at the
NAV date.
NAV of all schemes must be calculated and published at least weekly for closed – end
schemes and daily for open- end schemes.
The major factors affecting the NAV of a fund are :
 Sale and purchase of securities
 Sale and repurchase of units
 Valuation of assets
 Accrual of income and expenses
57
. NAV-:
Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV
is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.
How is NAV calculated?
The value of all the securities in the portfolio in calculated daily. From this, all expenses are deducted
and the resultant value divided by the number of units in the fund is the fund’s NAV.
Expense Ratio
AMCs charge an annual fee, or expense ratio that covers administrative expenses, salaries,
advertising expenses, brokerage fee, etc. A 1.5% expense ratio means the AMC charges Rs1.50 for every
Rs100 in assets under management.
A fund's expense ratio is typically to the size of the funds under management and not to the returns
earned. Normally, the costs of running a fund grow slower than the growth in the fund size - so, the more
assets in the fund, the lower should be its expense.
Entry load and an exit load
Some Asset Management Companies (AMCs) have sales charges, or loads, on their funds (entry
load and/or exit load) to compensate for distribution costs. Funds that can be purchased without a sales charge
are called no-load funds. Entry load is charged at the time an investor purchases the units of a scheme. The
entry load percentage is added to the prevailing NAV at the time of allotment of units. Exit load is charged at
the time of redeeming (or transferring an investment between schemes). The exit load percentage is deducted
from the NAV at the time of redemption (or transfer between schemes). This amount goes to the Asset
Management Company and not into the pool of funds of the scheme.
58
How does "entry load" affect the investment returns?
A 2.25% entry load sounds small. But it still bites a chunk off the returns over a long period of time.
For instance, Rs 1 lakh invested directly in the no-load option of an equity fund that grows at a rate of
15% over a period of 20 years yields around Rs 16.36 lakh against Rs 15.99 lakh that a load fund
would return—a difference of Rs 36,820. This is because even a small sum of 2.25% gets
compounded over the years.
The pinch remains the same even in a systematic investment plan (SIP). As SIPs entail investments on
a regular basis, say every month, you end up paying entry loads on all your investment installments.
Assume you had invested Rs 5,000 in Reliance Vision Fund (RVF) on January 1, 2003 through a
monthly SIP. If you had withdrawn your entire investment after five years, on December 31, 2007,
you would have got back Rs 11.52 lakh in the no-load option and Rs 11.25 lakh in a load option, a
difference of a cool Rs 25,914.
Are investments in mutual fund units risk-free or safe?
This depends on the underlying instrument that a mutual fund invests in, based on its investment
objectives. Mutual funds that invest in stock market-related instruments cannot be termed “risk-free
or safe” as investment in shares are inherently risky by nature, whereas funds that invest in fixed-
income instruments are relatively safe and those that invest only in government securities are the
safest.
Why Mutual Funds are an investment option?
Firstly, we are not all investment professionals. We go to a doctor when we need medical advice or a
lawyer for legal guidance, similarly mutual funds are investment vehicles managed by professional
fund managers. And unless you rate highly on the Investment IQ Quiz, we recommend you use this
option for investing. Mutual funds are like professional money managers, however a key factor in
their favor is that they are more regulated and hence offer investors the ability to analyze and
evaluate their track record.
59
Secondly, investing is becoming more complex. There was a time when things were quite simple -
the market went up with the arrival of the first monsoon showers and every year around Diwali.
Since India started integrating with the world (with the start of the liberalization process), complex
factors such as an increase in short-term US interest rates, the collapse of the Brazilian currency or
default on its debt by the Russian government, have started having an impact on the Indian stock
market. Although it is possible for an individual investor to understand Indian companies (and
investing) in such an environment, the process can become fairly time consuming. Mutual funds
(whose fund managers are paid to understand these issues and whose asset management company
invests in research) provide an option of investing without getting lost in the complexities.
Lastly, and most importantly, mutual funds provide risk diversification: Diversification of a portfolio
is amongst the primary tenets of portfolio structuring (see The Need to Diversify). And a necessary
one to reduce the level of risk assumed by the portfolio holder. Most of us are not necessarily well
qualified to apply the theories of portfolio structuring to our holdings and hence would be better off
leaving that to a professional. Mutual funds represent one such option.
How to select a mutual fund scheme?
What's strategy got to do with selecting a mutual fund? Shouldn't you just go and invest in the best
performing fund? The answer is no. Mutual fund investing requires as much strategic input as any
other investment option. But the advantage is that the strategy here is a natural extension of your
asset allocation plan (use our Asset Allocator to understand what your optimum asset allocation plan
should be, based on your personal risk profile). The following processes are important to select a
mutual fund scheme.
 Identify funds whose investment objectives match your asset allocation needs
Just as you would buy a computer that fits your needs and budget, you should choose a mutual fund
that meets your risk tolerance (need) and your risk capacity (budget) levels (i.e. has similar
investment objectives as your own). Typical investment objectives of mutual funds include fixed
income or equity, general equity or sector-focused, high risk or low risk, blue-chips or turnarounds,
long-term or short-term liquidity focus. The investment objectives match yours are
 Evaluate past performance, look for consistency. Although past performance is no guarantee of
future performance, it is a useful way of assessing how well or badly a fund has performed in
comparison to its stated objectives and peer group. A good way to do this would be to identify the
60
five best performing funds (within your selected investment objectives) over various periods, say 3
months, 6 months, one year, two years and three years. Shortlist funds that appear in the top 5 in
each of these time horizons as they would have thus demonstrated their ability to be not only good
but also, consistent performers. .
Are investments in mutual fund units risk-free or safe?
This depends on the instrument mutual fund invests in, based on its investment objectives. Mutual
funds that invest in stock market-related instruments cannot be termed “risk-free or safe” as
investment in shares are inherently risky by nature, whereas funds that invest in fixed-income
instruments are relatively safe and those that invest only in government securities are the safest.
Role of a Fund Manager:
Fund managers are responsible for implementing a consistent investment strategy that reflects the
goals and objectives of the fund. Normally, fund managers monitor market and economic trends and
analyze securities in order to make informed investment decisions.
How are mutual funds regulated?
All Asset Management Companies (AMCs) are regulated by SEBI and or the RBI (in case the AMC
is promoted by a bank). In addition, every mutual fund has a board of directors that represents the
unit holders’ interests in the mutual fund.
3.4 STATEMENT OF PROBLEM
Mutual Funds are Financial intermediaries concern with the mobilizing savings of surplus
income & channelisation of these savings in those avenues where there is demand of funds.
The main purpose behind this study of investment preferences in Mutual Funds is to see that
how the investors are employing their resources in a manner to afford, combine benefits to
low risks, steady or consistent returns, high liquidity & capital appreciation through
61
diversification & Expert Management.
Therefore the activities of mutual funds have both short & long term impact on the savings
& capital market & the national economy. Mutual Funds, thus, assist the process of
financial depending & intermediation.
3.5 Objectives of the Study
• To study various investment alternatives and in particular investors preference
towards mutual funds.
• To study the preference of investors in today’s scenario (less risk and more return).
• To assess the risk of investors with reference to diversifiable risk & non-
diversifiable risk.
• To study market potentiality of mutual fund among investors.
• To study whether the investors are considering IDFC a better option or not.
62
Chapter: - 4
Research Methodology
4.1 Research Design
Research Methodology is a systematic method of discovering new facts or verifying old
facts, their sequence, inter-relationship, casual explanation and the natural laws which
governs them. In it we study the various steps that are generally adopted by a researcher in
the studying his research problem along with the logic behind them.
Different stages involved in research consists of enacting the problem, formulating a
hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusion
either in the form of solution towards the concerned problem or in generalization for some
theoretical formulation.
Type of Sample Design: Judgment Sampling
4.2 Data Collection
The Data is divided in two parts:
a) Primary Data.
b) Secondary Data.
Primary Data is the data, which is collected directly by direct personal interview,
Interview, indirect oral investigation, Information received through local agents, Drafting a
schedule, drafting a questionnaire.
Secondary Data is the data, which is collected from:
Various books.
Magazine and material.
Internet
Fact sheets of various MFs
The data which is stored in the organization and provide by the FINANCE people are also
secondary data. The various information is taken out regarding that subject as well other
63
subject from various sources and stored. The last years data stored can also be secondary
data. This data is kept for the internal use of the organization.
The FINANCE manual is for the internal use of the organization they are secondary data
which help people to gain information. In this report the data plays a very crucial role. For
this report the data was provided to me by FINANCE department and other departmental
head in the organization.
4.3 Sampling Method
The sampling method so as to obtain a representative sample is the Non- Probability
Sampling methods. Under non-probability sampling, we selected the respondents to the
survey on the basis of Judgment sampling with Convenience taken into account.
4.4 Sample Size: 200
4.5 Data collection instument
Research instrument
The research instrument used for this survey is a structured questionnaire. The questionnaire
contains both open-ended and close ended questions. The questionnaire provides a
provision with respect to rating scales.
4.6 Statistical Tools Used
We have chosen ANOVA and CHI-SQURE as Statistical Tools for Testing Hypothesis.
64
CHAPTER :- 5 Data Analysis and Interpritation.
TABLE -1:
AGE WISE CLASSIFICATION OF RESPONDENTS
AGE NO. OF RESPONDENTS PERCENTAGE
BELOW 20 NIL NIL
20-29 69 34.5
30-39 13 6.5
40-49 34 17
50-59 35 17.5
ABOVE 60 49 24.5
TOTAL 200 100
A G E W I S E N O O F R E S P O N D E N T S
4 9 2 0 - 2 9
6 9 3 0 - 3 9
4 0 - 4 9
3 5
1 3
5 0 - 5 9
A B O V E 6 0
3 4
Interpretation:
According to the survey the respondents were of different age groups. There are
no respondents of age below 20 are in no number. The investors of age 20-29 are 69 in
number with 34.5%. The investors of age 30-39 are 13 with 6.5%, 40-49 there are 34
65
investors with 17% and in between 50-59 there are 35 investors with 17.5% and above 60
there are 49 investors with 24.5%.
TABLE-2:
GENDER OF THE RESPONDENTS
GENDER NO. OF RESPONDENTS PERCENTAGE
MALE 158 79
FEMALE 42 21
TOTAL 200 100
GENDER OF THE RESPONDENTS
/
180
OFRESPONDENTS
160
PERCENTAGE
140
120 NO. OF
100 RESPONDENTS
80 PERCENTAGE
60
40
NO.
20
0
MALE FEMALE
GENDER
Interpretation:In the survey number of male respondents are more in number that
is about 79% & the next position has been occupied by female respondents they are
about 21% of the sample so, mainly men are preferring to go for investments.
66
TABLE-3:
OCCUPATION OF THE RESPONDENTS
OCCUPATION NO. OF RESPONDENTS PERCENTAGE
HOUSE HOLD 9 4.5
BUSINESS 46 23
SERVICE 84 42
PROFESSIONAL 30 15
RETIRED 15 7.5
STUDENT 16 8
TOTAL 200 100
OCCUPATION OF THE RESPONDENTS
16 9
HOUSE HOLD
15
46 BUSINESS
30 SERVICE
PROFESSIONAL
RETIRED
84
STUDENT
Interpretation:
According to the survey the respondents were of different occupations. Most of
respondents are from service sector is about 42% of the sample. Respondents from the
67
business are occupying 23%, then comes professional with 15%, students occupy 8%,
retired people occupy 7.5%, with house hold occupying 4.5%.
68
TABLE-4:
ANNUAL INCOME OF THE RESPONDENTS
ANNUAL NO. OF RESPONDENTS PERCENTAGE
< 1,00,000 53 26.5
1-2 LAKHS 84 42
2-3 LAKHS 48 24
ABOVE 3 LAKHS 15 7.5
TOTAL 200 100
OFRESPONDENTS/
PERCENTAGE
NO.
ANNUAL INCOME OF THE RESPONDENTS
90
80
70
NO. OF60
RESPONDENTS50
40 PERCENTAGE
30
20
10
0
0 S S
HS
00
H H
LAK LAK
K
1,0
0, A
<
2 3 3L
- -
VE1 2
AB
O
ANNUAL
INCOME
69
Interpretation:
According to the survey, the respondents of the income group of less than 1 lack are
of 26.5%. They were about 42% of the respondents are of the income group between 1-2
lack. 24% of the respondents were of the income group 2-3 lacks. 7.5% respondents were of
the income group more than 3 lacks.
TABLE-5:
DO THE RESPONDENTS INVEST THEIR MONEY
INVESTMENTS NO.OF RESPONDENTS PERCENTAGE
YES 200 100
NO NIL NIL
TOTAL 200 100
RESPONDENTS INVESTING THEIR MONEY
OFRESPONDENTS/
PERCENTAGE
NO.
250
200
150
NO. OF
RESPONDENTS
100 PERCENTAGE
50
0
YES NO
INVESTMENTS
70
Interpretation:
All the respondents considered in the sample, do invest their savings.
Out of the total sample the respondents going for investments are total in numbers with all
the two hundred respondents considered in sample are going for complete investments with
100%.
TABLE-6:
What percent of your income do you keep aside for different investment
options?
OPTIONS NO. OF RESPONDENTS PERCENTAGE
0% to 5% 24 12
5% to 10% 38 19
10% to 15% 60 30
15% to 20% 34 17
20% to 30% 24 12
Above 30% 20 10
TOTAL 200 100
0
10
20
30
40
50
60
70
0% to
5%
5% to
10%
10% to
15%
15% to
20%
20% to
30%
Above
30%
income keep aside
NO. OF RESPONDENTS
71
TABLE-7
Important factors to you consider before choosing an investment?
OPTIONS
NO. OF
RESPONDENTS PERCENTAGE
Safety of investment
principle 70 35
Opportunity for
growth 82 41
Liquidity 48 24
TOTAL 200 100
Interpritation:- from the table we can see that 41% of respondent are
consider the fector Opportunity for growth before choosing an investment
0
10
20
30
40
50
60
70
80
90
Safety of
investment
principle
Opportunity for
growth
Liquidity
Important factors
NO. OF RESPONDENTS
72
TABLE-8:
INVESTORS PREFERENCE FOR VARIOUS INVESTMENTS
OBJECIVES
OPTIONS
RANK SCORE
SECURITY 1 55
YEILD 2 47
MATURITY 4 35
TAX BENEFITS 5 22
LIQUIDITY 3 40
INVESTMENT OBJECTIVE OF THE INVESTOR
SECURITY
LIQUIDITY 7%
20%
YEILD
SECURITY
13%
YEILD
MATURITY
MATURITY
TAX BENEFITS
LIQUIDITY
TAX BENEFITS 27%
33%
Interpretation:
Different types of investors look forward to different investment objectives. Most of the
investors ranked 1st
to security, 2nd
rank to yield, 3rd
rank has been given to liquidity, 4th
& 5th
ranks for maturity & tax benefits.
73
INVESTOR PREFERENCE FOR VARIOUS INVESTMENTS
OBJECTIVES
ATTRIBUTES I II III IV V WEIGHTED RANK
AVERAGE
SECURITY 88 64 32 9 7 55 I
YEILD 63 44 46 24 23 47 II
MATURITY 19 24 45 85 27 35 IV
TAX BENEFIT 8 25 5 42 120 22 V
LIQUIDITY 22 43 72 40 23 40 III
MODEL CALCULATION:
= 88*5 + 64*4 + 32*3 + 9*2 + 7*1 / 1 + 2 + 3 + 4 + 5
= 440 + 256 + 96 +18 + 7 / 15
= 817/15
= 55.
74
TABLE-9:
AWARENESS OF MUTUAL FUNDS
OPTIONS NO. OF RESPONDENTS PERCENTAGE
YES 200 100
NO 00 00
TOTAL 200 100
Interpretation:
According to the survey, most investors are aware of mutual funds. It can be
observed from the above table that 100% of respondents are aware of Mutual
TABLE-10:
AWARENESS OF MUTUAL FUNDS IS THROUGH
0
50
100
150
200
250
YES NO
AWARENESS OF MUTUAL FUNDS
NO. OF RESPONDENTS
75
OPTION NO. OF RESPONDENTS PERCENTAGE
ADVERTISEMENT 52 26
FRIENDS 37 19
FAMILY MEMBERS 19 10
FINANCIAL ADVISORS 66 32
RELATIVES 26 13
TOTAL 200 100
INFLUENCE OF INVESTMENT DECISION IS
THROUGH
ADVERTISEME
RELATIVES NT ADVERTISEMENT13% 26%
FRIENDS
FINANCIAL FAMILY MEMBERS
ADVISORS FRIENDS FINANCIAL ADVISORS
32% FAMILY 19% RELATIVES
MEMBERS
10%
Interpretation:
According to the survey, the respondents are more aware of mutual funds through
Financial Advisors who occupy 32%, followed by Advertisements 26%, Friends 19%,
Relatives 13% & Family Members 10%
76
TABLE 11:
MUTUAL FUND IS A GOOD INVESTMENT OPTION.
OPTIONS NO. OF RESPONDENTS PERCENTAGE
YES 159 79.5
NO 41 20.5
TOTAL 200 100
MUTUAL FUND IS A GOOD INVESTMENT OPTION
/
180
OFRESPONDENTS
160
PERCENTAGE
140
120 NO. OF
100 RESPONDENTS
80 PERCENTAGE
60
40
NO.
20
0
YES NO
OPTIONS
Interpretation:
Many of the individuals are of the view that mutual fund is a good investment
option. Of the total sample survey around 79.5% of the respondents feel that mutual fund is
a good investment option & 20.5% of the respondents feel that it is not a good investment
option.
77
TABLE 12:
What is your return expectation on your investment in mutual fund?
OPTION
NO. OF
RESPONDENTS PERCENTAGE
Up to
8% 52 26
Betwee
n 8% to 18% 80 40
Above
18% 68 34
TOTAL 200 100
In
0
10
20
30
40
50
60
70
80
90
Up to 8% Between 8% to
18%
Above 18%
return expectation
NO. OF RESPONDENTS
78
Interpretation:- more no of respondent expecting 8% to 18% of return on
their investment
TABLE 13
How long are you planning to stay invest in mutual fund?
OPTION NO. OF RESPONDENTS PERCENTAGE
< 1 year 46 23
1 to 3 year 75 37.5
3 to 5 year 50 25
> 5 year 29 15.5
TOTAL 200 100
Interpritation:- from the table 75 respondent are planning to stay invest in
mutual fund for the period of 1-3 year.and only 29 75 respondent are planning
to stay invest in mutual fund for the period of >5 year.
TABLE-14:
RESPONDENTS PREFFERING IDFC AS A
DISTRIBUTOR OF MUTUAL FUNDS
0
10
20
30
40
50
60
70
80
< 1 year 1 to 3 year 3 to 5 year > 5 year
NO. OF RESPONDENTS
NO. OF RESPONDENTS
79
OPTION NO. OF RESPONDENTS PERCENTAGE
IDFC 138 69
OTHERS 62 31
TOTAL 200 100
IDFC AS A DISTRIBUTOR OF
MUTUAL FUNDS
/
160
OF
RESPONDENTS
PERCENTAGE
140
120
NO. OF
100
RESPONDENTS
80
PERCENTAGE
60
40
20
N
O
.
0
IDFC OTHERS
OPTIONS
Interpretation:
According to the survey, 69% of the respondents are aware of idfc as a
distributor of mutual funds & these 69% of the investors would like to invest in idfc
mutual fund option. The rest 31% of the respondents would like to prefer others.
TABLE-15:
TYPE OF FUNDS RESPONDENTS PREFER TO
80
OPTION NO.OF RESPONDENTS PERCENTAGE
DEBT FUND 42 30.5
EQUITY FUND 78 56.5
HYBRID FUND 18 13
TOTAL 138 100
TYPE OF FUNDS RESPONDENTS PREFER TO
/
90
OF
RESPONDENTS
80
PERCENTAGE
70
60 NO. OF
50 RESPONDENTS
40 PERCENTAGE
30
20
N
O
.
10
0
DEBT FUND EQUITY FUND HYBRID
FUND
OPTIONS
Interpretation:
From the survey conducted the respondents prefer Equity funds more in number
they occupy 56.5%, followed by Debt funds with 30.5% and a very few respondents
prefer to hybrid funds with 13%.
TABLE-16:
TYPE OF SCHEME PREFERED BY RESPONDENT IN DEBT FUNDS
81
OPTION NO. OF RESPONDENTS PERCENTAGE
LIQUID FUND 2 5
FLOATE RATE 4 10
GILT FUND 5 12
DYNAMIC BOND FUND 15 35
INCOME PLUS 7 17
BOND INDEX FUND 9 21
TOTAL 42 100
TYPE OF SCHEME PREFERED BY RESPONDENT IN
DEBT FUNDS
5%
LIQUID FUND
21% 10% FLOATE RATE
12% GILT FUND
DYNAMIC BOND FUND
17% INCOME PLUS
35% BOND INDEX FUND
Interpretation:
Based on the survey, it is found that the respondents prefer dynamic bond fund
which occupies 35%, then follows is the bond Index Fund with 21%, thirdly Income Plus
is seen with more percentage with 17, followed by Gilt Fund, Floating Rate Fund, &
Liquid Fund with 12, 10, 5.
82
TABLE-17:
TYPE OF SCHEME PREFERED IN EQUITY FUNDS
OPTION NO. OF RESPONDENTS PERCENTAGE
ADVANTAGE FUND 26 33
MID CAP 6 8
EQUITY PLAN 4 5
MNC FUND 5 6
INDEX FUND 3 4
DIVIDEND YEILD PLUS 32 41
INDIA OPPURTUNITIES FUND 2 3
TOTAL 78 100
TYPE OF SCHEME PREFFERED IN EQUITY
FUNDS ADVANTAGE FUND
MID CAP
3%
EQUITY PLAN
33%
MNC FUND
41%
INDEX FUND
4% 6% 5%
8%
DIVIDEND YEILD PLUS
INDIA OPPURTUNITIES
FUND
Interpretation:
83
Based on the survey, that out of 78 sample size, most of the investors choose
dividend yield plus which occupies 41%, followed by Advantage Fund with 33%, then
MNC fund with 6%, mid cap 8%, Equity plan 5%, India opportunities fund 3%.
TABLE-18:
TYPE OF SCHEME PREFERRED IN HYBRID FUND
OPTION NO. OF RESPONDENTS PERCENTAGE
MIP I 3 16.7
MIP II 4 22.2
BALANCED FUND 11 61.1
TOTAL 18 100
TYPE OF SCHEME PREFERRED IN HYBRID
FUND
/
OF
RESPONDENTS
70
PERCENTAGE
60
50 NO. OF
40 RESPONDENTS
30 PERCENTAGE
20
10
N
O
.
0
MIP I MIP II BALANCED
FUND
OPTIONS
Interpretation:
Based on the survey, it is found that the respondents prefer to choose balanced
fund with 61.1% of sample, followed by MIP I & MIP II schemes in the Hybrid Fund
Type with 22.2% & 16.7%.
84
TABLE 19:
RESPONDENTS PREFFERING OTHER BRANDS OF MUTUAL
FUNDS
OPTION NO.OF RESPONDENTS PERCENTAGE
HDFC 12 19
FRANKLIN TEMPLETON 18 29
HSBC 6 10
KOTAK MAHINDRA 11 18
DSP MERYLLICH 5 8
UTI 10 16
TOTAL 62 100
RESPONDENTS PREFFERING OTHER BRANDS
OF MUTUAL FUNDS
HDFC
FRANKLIN
16% 19% TEMPELTON
8% HSBC
KOTAK
MAHINDRA
18% 29%
10% DSP MERYILCH
UTI
Interpretation:
Based on the survey, it is found that the respondents would definitely prefer other
85
brands of Mutual Funds with Franklin Templeton in the lead with 29%, then HDFC with
18%, UTI in the fourth place with 16%, Kotak Mahindra with 18%, HSBC with 10% &
DSP merllich with 8%.
86
.
TABLE 20:
RESPONDENT RECOMMENDING IDFC MUTUAL FUND AS A
BETTER INVESTMENT OPPURTUNITY
OPTIONS NO. OF RESPONDENTS PERCENTAGE
YES 156 78
NO 44 22
TOTAL 200 100
IS IDFC A BETTER INVESTMENT
/
180
OFRESPONDENTS
160
PERCENTAGE
140
120 NO. OF
100 RESPONDENTS
80 PERCENTAGE
60
40
NO.
20
0
YES NO
OPTIONS
Interpretation:
87
According to the survey the respondents recommending IDFC Mutual Fund as a
better investment opportunity is of 78%. & the respondents who do not recommend idfc
as a better investment opportunity are 22%.
TABLE 21:
Tick & Rate IDFC mutual fund as compare to other mutual fund company. (1=
very good & 5= very bad)
1 2 3 4 5
OPTIONS NO. OF RESPONDENTS PERCENTAGE
1 120 60
2 32 16
3 24 12
4 16 8
5 8 4
TOTAL 200 100
Interpritation:- higher no. of responders are very satisfied and least no of
respondent are says its very bad.
OPTIONS
0
20
40
60
80
100
120
1 2 3 4 5
OPTIONS
NO. OF RESPONDENTS
88
TABLE 22:
Express your Experience to invest in mutual fund.
_____________________________________________________________
______________________
_____________________________________________________________
______________________
89
CHAPTER:-6 HYPOTESIS TESTING
H0: There is no Significant Relationship between Income of Respondent and Preferred Scheme of
Mutual fund. (Null Hypothesis)
H1: There is Significant Relationship between Income of Respondent and Preferred Scheme of
Mutual fund. (Alternate hypothesis)
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
ANNUAL INCOME * TYPE
OF FUNDS RESPONDENTS
PREFER TO
200 100.0% 0 .0% 200 100.0%
ANNUAL INCOME * TYPE OF FUNDS RESPONDENTS PREFER TO Crosstabulation
Count
TYPE OF FUNDS RESPONDENTS PREFER TO
TotalDEBT FUND EQUITY FUND HYBRID FUND
ANNUAL INCOME < 1,00,000 7 12 0 19
1-2 LAKHS 6 23 13 42
2-3 LAKHS 21 33 13 67
ABOVE 3 LAKHS 26 33 13 72
Total 60 101 39 200
Chi-Square Tests
90
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 12.382a
6 .054
Likelihood Ratio 16.382 6 .012
Linear-by-Linear Association .507 1 .476
N of Valid Cases 200
a. 1 cells (8.3%) have expected count less than 5. The minimum
expected count is 3.71.
Interpritation:- Ther is a very strong Evidence of relationship between Income of Investor and
Scheme Preferred by them.
Tabulated value is 0.05 and calculated value is 0.054(>.05)
So don’t Reject H0( null hypothisis)
ANOVA
ANNUAL INCOME
Sum of Squares Df Mean Square F Sig.
Between Groups 2.221 2 1.110 1.167 .314
Within Groups 187.459 197 .952
Total 189.680 199
Interpritation:- Ther is a very strong Evidence of relationship between Income of Investor and
Scheme Preferred by them.
Tabulated value is 0.314 and calculated value is 1.167(>.0314)
So don’t Reject H0( null hypothesis)
91
CHAPTER :-7 SUGGESTION
 Company should show its presence in the market by its strong marketing strategies which are as follows
1. Bill boards and hoardings
2. Ads in print and electronic Media
3. Corporate tie-ups
4. Road shows
5. Pamphlets
6. Contests
 Company should provide consistent customer service by time
1. submission of application forms in prescribed time
2. proper follow-up
3. transparency in the process
4. Providing every possible information about the product
5. Company can also work service recovery process if any of this kind of problem occurs
Failure in Services delivery
In general, services delivery system failures consist of three types of failures
1. Unavailable service
2. Unreasonable slow services
92
3. Other core service failures
Service recovery is concerned with the process of addressing the failure of the services here question comes how
that can be done or how Mahindra finance has done , for that there should be complain from investors side or it
should reflect in the research done by company
Bell and Zemke has proposed five ingredients for recovery which company can use for its
recovery.
 Apology - a first person apology rather than a corporate apology
 Urgent reinstatement – speed of action coupled with a gallant attempt to put things right even if it is not
possible to correct the situation
 Empathy- a sincere expression of feeling for the customer’s plight
 Symbolic atonement- a form of compensation that might include not charging for the service or offering
future service free or discounted
 Follow up- an after recovery call to ascertain that the consumer is satisfied with the recovery process
A successful recovery include following four key elements
1. acknowledgement of the problem
2. explanation of the problem
3. apology where appropriate
4. compensation as required
93
CHAPTER :- 8 LIMITATION OF STUDY
LIMITATIONS OF THE STUDY
1) Sometime stock market are not performing well so people are not interested to invest
2) Sometime because of negative sentiments in the market people are not ready to invest for e.g. the
subprime crisis in US affected the stock market in India.
3) Many people have good knowledge of the equity market by themselves so they don’t want to invest in
mutual fund
4) Many are looking for the short term benefits for which sometime mutual fund is not the best option
5) Many people who want to have high risk high return are not suitable for mutual fund
6) Some people are not ready to invest in mutual fund because of the lack of knowledge about the
product
7) Most of the time people are busy in their schedule and so they don’t want to listen to anything on the
telephone calls.
8) In small towns people are not willing to purchase mutual fund because of lack of knowledge they
rather prefer to invest in real state
9) It is also difficult to measure economic factor associated with time constrain
10) Time constrain
CHAPTER :- 9 FINDINGS
Final findings and observations
From the comparison of various mutual fund schemes, it is understand that the equity
diversified scheme is providing a good return for a longer period of investment. But the return is wholly
depending on the market. So the risk is higher compare to any other schemes. On the other hand the Gilt fund is
investing in Government securities, treasury bills, bonds, debentures etc. But in this case the return is low. But risk
94
is very low comparable to an equity diversified scheme. In the ELSS scheme, there is a locking period of 3 years.
Still most of the tax schemes give a good return through dividends also. But the MIP scheme is not giving a good
return. As this scheme is also investing in bonds and debentures, it gives a continuous return to the investors.
CHAPTER :- 10 CONCLUSION
From the comparison of various mutual fund schemes, it is understand that the equity
diversified scheme is providing a good return for a longer period of investment. But the return is wholly
depending on the market. So the risk is higher compare to any other schemes. On the other hand the Gilt fund is
investing in Government securities, treasury bills, bonds, debentures etc. But in this case the return is low. But risk
is very low comparable to an equity diversified scheme. In the ELSS scheme, there is a locking period of 3 years.
Still most of the tax schemes give a good return through dividends also. But the MIP scheme is not giving a good
return. As this scheme is also investing in bonds and debentures, it gives a continuous return to the investors.
So if one has to decide what factors to be considered while giving services, following points to be considered
Ease of availability, value added services Reduction of risk , transaction cost Variety of funds and Cost involved
in the fund because a company should know its core business ,strengths and weakness here company’s core
business is providing value based services to their customer ,which can be the inferred from the research ,
marketing and promotional activities are need of the hour to make full-fledged market presence and target
market specific marketing is required for giving service effectively for example people in software company do
not have enough time to go for research decide upon investment option so company can provide information
and solution online with personalize service secondly if target customer is required some text in local language
we should provide the same.
Company has good chances to be no.1 in mutual fund distribution house provided what services is been
provided by the company , I think company in services sector cannot afford to have unhappy customer because
95
success of services sector company depends on word of mouth publicity of the people and one happy customer
will bring ten more customer and one unhappy customer will stop ten prospective customer , in case if there has
been the cases of service failure, company should take appropriate action while fixing the problem .
CHAPTER :- 11 BIBLIOGRAPHY
BIBILOGRAPHY
 Marketing management by “ Philip Kotler ”
 Sales Management By Still, Cundiff and Govoni
 Business Policy And Strategic Management by Azhar kazmi
 Research Methodology by Pannerselvam
 Study material at IDFC finance
 AMFI Booklet
 Broachers of various fund houses
 Fund fact sheet of various fund houses
 CRISIL report
WEBILOGRAPHY
 www.mutualfundsIndia.com
 www.moneycontrol.com
 www.mahindrafinance.com
 www.amfiindia.com
 www.valueresearch.com
 www.IDFC.com
 www.bseindia.com
 www.crisil.com
Study about investors perception and investment pettern in mutual fund at idfc amc ltd
Study about investors perception and investment pettern in mutual fund at idfc amc ltd
Study about investors perception and investment pettern in mutual fund at idfc amc ltd
Study about investors perception and investment pettern in mutual fund at idfc amc ltd
Study about investors perception and investment pettern in mutual fund at idfc amc ltd

Weitere ähnliche Inhalte

Was ist angesagt?

Comparative analysis on investment in mutual fund
Comparative analysis on investment in mutual fundComparative analysis on investment in mutual fund
Comparative analysis on investment in mutual fundvaibhav belkhude
 
A study of investors perception towards the mutual fund investment
A study of investors perception towards the mutual fund investmentA study of investors perception towards the mutual fund investment
A study of investors perception towards the mutual fund investmenthingal satyadev
 
37711902 project-on-online-trading-at-sharekhan-ltd (1)
37711902 project-on-online-trading-at-sharekhan-ltd (1)37711902 project-on-online-trading-at-sharekhan-ltd (1)
37711902 project-on-online-trading-at-sharekhan-ltd (1)Venkat Chowdary
 
Rahul Gupta MBA Finance IVth SEMESTER Project
Rahul Gupta MBA Finance IVth SEMESTER ProjectRahul Gupta MBA Finance IVth SEMESTER Project
Rahul Gupta MBA Finance IVth SEMESTER ProjectRahul Gupta
 
mutual fund in india
mutual fund in indiamutual fund in india
mutual fund in indiakeyursavalia
 
Comparitive study of_mutual_fund
Comparitive study of_mutual_fundComparitive study of_mutual_fund
Comparitive study of_mutual_fundnanak singh
 
INVESTMENT PATTERN OF SALARIED INDIVIDUALS
INVESTMENT PATTERN OF SALARIED INDIVIDUALSINVESTMENT PATTERN OF SALARIED INDIVIDUALS
INVESTMENT PATTERN OF SALARIED INDIVIDUALSRanjana Singh
 
Project on mutual funds is the better investments plan
Project on mutual funds is the better investments planProject on mutual funds is the better investments plan
Project on mutual funds is the better investments planProjects Kart
 
Mba finance-project-report-on-a-competitive-analysis-of-trading-in-reliance-m...
Mba finance-project-report-on-a-competitive-analysis-of-trading-in-reliance-m...Mba finance-project-report-on-a-competitive-analysis-of-trading-in-reliance-m...
Mba finance-project-report-on-a-competitive-analysis-of-trading-in-reliance-m...Rishi Gupta
 
Performance evaluation-of-public-and-private-sector-mutual-funds-mba-project
Performance evaluation-of-public-and-private-sector-mutual-funds-mba-projectPerformance evaluation-of-public-and-private-sector-mutual-funds-mba-project
Performance evaluation-of-public-and-private-sector-mutual-funds-mba-projectjaikk
 
Comparative analysis of broking firms
Comparative analysis of broking firmsComparative analysis of broking firms
Comparative analysis of broking firmsUtsav Roy
 
summer project of ICICI on MF
summer project of ICICI on MFsummer project of ICICI on MF
summer project of ICICI on MFshubham5ashtikar
 
A project report on awareness regarding mutual fund with special reference to...
A project report on awareness regarding mutual fund with special reference to...A project report on awareness regarding mutual fund with special reference to...
A project report on awareness regarding mutual fund with special reference to...Projects Kart
 
Study on Mutual Fund
Study on Mutual FundStudy on Mutual Fund
Study on Mutual FundVivek Saha
 
A PERFORMANCE EVALUATION OF MUTUAL FUND
A PERFORMANCE EVALUATION OF MUTUAL FUND A PERFORMANCE EVALUATION OF MUTUAL FUND
A PERFORMANCE EVALUATION OF MUTUAL FUND Nirav Thanki
 
Study on Mutual fund in India
Study on Mutual fund in IndiaStudy on Mutual fund in India
Study on Mutual fund in Indiadiliprai25april
 
Full Project Report on SBI mutual funds.
Full Project Report on SBI mutual funds.Full Project Report on SBI mutual funds.
Full Project Report on SBI mutual funds.AKSHAY TYAGI
 
Project on Mutual Funds
Project on  Mutual FundsProject on  Mutual Funds
Project on Mutual FundsRavindra Jeet
 

Was ist angesagt? (20)

Comparative analysis on investment in mutual fund
Comparative analysis on investment in mutual fundComparative analysis on investment in mutual fund
Comparative analysis on investment in mutual fund
 
A study of investors perception towards the mutual fund investment
A study of investors perception towards the mutual fund investmentA study of investors perception towards the mutual fund investment
A study of investors perception towards the mutual fund investment
 
project on sharekhan
project on sharekhanproject on sharekhan
project on sharekhan
 
37711902 project-on-online-trading-at-sharekhan-ltd (1)
37711902 project-on-online-trading-at-sharekhan-ltd (1)37711902 project-on-online-trading-at-sharekhan-ltd (1)
37711902 project-on-online-trading-at-sharekhan-ltd (1)
 
Rahul Gupta MBA Finance IVth SEMESTER Project
Rahul Gupta MBA Finance IVth SEMESTER ProjectRahul Gupta MBA Finance IVth SEMESTER Project
Rahul Gupta MBA Finance IVth SEMESTER Project
 
mutual fund in india
mutual fund in indiamutual fund in india
mutual fund in india
 
Comparitive study of_mutual_fund
Comparitive study of_mutual_fundComparitive study of_mutual_fund
Comparitive study of_mutual_fund
 
INVESTMENT PATTERN OF SALARIED INDIVIDUALS
INVESTMENT PATTERN OF SALARIED INDIVIDUALSINVESTMENT PATTERN OF SALARIED INDIVIDUALS
INVESTMENT PATTERN OF SALARIED INDIVIDUALS
 
Project on mutual funds is the better investments plan
Project on mutual funds is the better investments planProject on mutual funds is the better investments plan
Project on mutual funds is the better investments plan
 
A study on
A study on A study on
A study on
 
Mba finance-project-report-on-a-competitive-analysis-of-trading-in-reliance-m...
Mba finance-project-report-on-a-competitive-analysis-of-trading-in-reliance-m...Mba finance-project-report-on-a-competitive-analysis-of-trading-in-reliance-m...
Mba finance-project-report-on-a-competitive-analysis-of-trading-in-reliance-m...
 
Performance evaluation-of-public-and-private-sector-mutual-funds-mba-project
Performance evaluation-of-public-and-private-sector-mutual-funds-mba-projectPerformance evaluation-of-public-and-private-sector-mutual-funds-mba-project
Performance evaluation-of-public-and-private-sector-mutual-funds-mba-project
 
Comparative analysis of broking firms
Comparative analysis of broking firmsComparative analysis of broking firms
Comparative analysis of broking firms
 
summer project of ICICI on MF
summer project of ICICI on MFsummer project of ICICI on MF
summer project of ICICI on MF
 
A project report on awareness regarding mutual fund with special reference to...
A project report on awareness regarding mutual fund with special reference to...A project report on awareness regarding mutual fund with special reference to...
A project report on awareness regarding mutual fund with special reference to...
 
Study on Mutual Fund
Study on Mutual FundStudy on Mutual Fund
Study on Mutual Fund
 
A PERFORMANCE EVALUATION OF MUTUAL FUND
A PERFORMANCE EVALUATION OF MUTUAL FUND A PERFORMANCE EVALUATION OF MUTUAL FUND
A PERFORMANCE EVALUATION OF MUTUAL FUND
 
Study on Mutual fund in India
Study on Mutual fund in IndiaStudy on Mutual fund in India
Study on Mutual fund in India
 
Full Project Report on SBI mutual funds.
Full Project Report on SBI mutual funds.Full Project Report on SBI mutual funds.
Full Project Report on SBI mutual funds.
 
Project on Mutual Funds
Project on  Mutual FundsProject on  Mutual Funds
Project on Mutual Funds
 

Andere mochten auch

Investors attitude towards Mutual fund (Questionnaire)
Investors attitude towards Mutual fund (Questionnaire)Investors attitude towards Mutual fund (Questionnaire)
Investors attitude towards Mutual fund (Questionnaire)Naren Kumar
 
A STUDY ON AWARENESS OF INVESTORS ABOUT THE MUTUAL FUND INVESTMENTS IN MUSIRI...
A STUDY ON AWARENESS OF INVESTORS ABOUT THE MUTUAL FUND INVESTMENTS IN MUSIRI...A STUDY ON AWARENESS OF INVESTORS ABOUT THE MUTUAL FUND INVESTMENTS IN MUSIRI...
A STUDY ON AWARENESS OF INVESTORS ABOUT THE MUTUAL FUND INVESTMENTS IN MUSIRI...IAEME Publication
 
A study on perspective of investors about mutual
A study on perspective of investors about mutualA study on perspective of investors about mutual
A study on perspective of investors about mutualRatan Gohel
 
Study of Mutual Fund Investment
Study of Mutual Fund InvestmentStudy of Mutual Fund Investment
Study of Mutual Fund InvestmentJaydeep Songara
 
A study on investors’ awareness level on mutual fund & promotion of sip plan
A study on investors’ awareness level on mutual fund & promotion of sip planA study on investors’ awareness level on mutual fund & promotion of sip plan
A study on investors’ awareness level on mutual fund & promotion of sip planProjects Kart
 
Investor's perception about mutual funds
Investor's perception about mutual fundsInvestor's perception about mutual funds
Investor's perception about mutual fundsaditya kashyap
 
Project report of axis mutual fund by kamal
Project report of axis mutual fund by kamalProject report of axis mutual fund by kamal
Project report of axis mutual fund by kamalKamal Sharma
 
25786437 questionnaire-on-mutual-fund-invetment
25786437 questionnaire-on-mutual-fund-invetment25786437 questionnaire-on-mutual-fund-invetment
25786437 questionnaire-on-mutual-fund-invetment9015207039
 
Customer perception towards mutual funds
Customer perception towards mutual fundsCustomer perception towards mutual funds
Customer perception towards mutual fundsProjects Kart
 
Mutual funds
Mutual fundsMutual funds
Mutual fundsSweetp999
 
comparative Analysis of mutual fund
comparative Analysis of mutual fundcomparative Analysis of mutual fund
comparative Analysis of mutual fundParneet Walia
 
Project report on_consumer_behaviour_regarding_various_branded_shoes
Project report on_consumer_behaviour_regarding_various_branded_shoesProject report on_consumer_behaviour_regarding_various_branded_shoes
Project report on_consumer_behaviour_regarding_various_branded_shoespitulidesai
 
A project report on comparative study of mutual funds in india
A project report on comparative study of mutual funds in indiaA project report on comparative study of mutual funds in india
A project report on comparative study of mutual funds in indiaProjects Kart
 
List of mba project topics reports
List of  mba project topics  reportsList of  mba project topics  reports
List of mba project topics reportsBabasab Patil
 
Mutual Fund Question Bank 2
Mutual Fund Question Bank 2Mutual Fund Question Bank 2
Mutual Fund Question Bank 2shallz
 
LinkedIn SlideShare: Knowledge, Well-Presented
LinkedIn SlideShare: Knowledge, Well-PresentedLinkedIn SlideShare: Knowledge, Well-Presented
LinkedIn SlideShare: Knowledge, Well-PresentedSlideShare
 
How to Make Awesome SlideShares: Tips & Tricks
How to Make Awesome SlideShares: Tips & TricksHow to Make Awesome SlideShares: Tips & Tricks
How to Make Awesome SlideShares: Tips & TricksSlideShare
 
Getting Started With SlideShare
Getting Started With SlideShareGetting Started With SlideShare
Getting Started With SlideShareSlideShare
 

Andere mochten auch (19)

Investors attitude towards Mutual fund (Questionnaire)
Investors attitude towards Mutual fund (Questionnaire)Investors attitude towards Mutual fund (Questionnaire)
Investors attitude towards Mutual fund (Questionnaire)
 
A STUDY ON AWARENESS OF INVESTORS ABOUT THE MUTUAL FUND INVESTMENTS IN MUSIRI...
A STUDY ON AWARENESS OF INVESTORS ABOUT THE MUTUAL FUND INVESTMENTS IN MUSIRI...A STUDY ON AWARENESS OF INVESTORS ABOUT THE MUTUAL FUND INVESTMENTS IN MUSIRI...
A STUDY ON AWARENESS OF INVESTORS ABOUT THE MUTUAL FUND INVESTMENTS IN MUSIRI...
 
A study on perspective of investors about mutual
A study on perspective of investors about mutualA study on perspective of investors about mutual
A study on perspective of investors about mutual
 
Study of Mutual Fund Investment
Study of Mutual Fund InvestmentStudy of Mutual Fund Investment
Study of Mutual Fund Investment
 
A study on investors’ awareness level on mutual fund & promotion of sip plan
A study on investors’ awareness level on mutual fund & promotion of sip planA study on investors’ awareness level on mutual fund & promotion of sip plan
A study on investors’ awareness level on mutual fund & promotion of sip plan
 
Investor's perception about mutual funds
Investor's perception about mutual fundsInvestor's perception about mutual funds
Investor's perception about mutual funds
 
Project report of axis mutual fund by kamal
Project report of axis mutual fund by kamalProject report of axis mutual fund by kamal
Project report of axis mutual fund by kamal
 
25786437 questionnaire-on-mutual-fund-invetment
25786437 questionnaire-on-mutual-fund-invetment25786437 questionnaire-on-mutual-fund-invetment
25786437 questionnaire-on-mutual-fund-invetment
 
Customer perception towards mutual funds
Customer perception towards mutual fundsCustomer perception towards mutual funds
Customer perception towards mutual funds
 
Mutual funds ppt
Mutual funds pptMutual funds ppt
Mutual funds ppt
 
Mutual funds
Mutual fundsMutual funds
Mutual funds
 
comparative Analysis of mutual fund
comparative Analysis of mutual fundcomparative Analysis of mutual fund
comparative Analysis of mutual fund
 
Project report on_consumer_behaviour_regarding_various_branded_shoes
Project report on_consumer_behaviour_regarding_various_branded_shoesProject report on_consumer_behaviour_regarding_various_branded_shoes
Project report on_consumer_behaviour_regarding_various_branded_shoes
 
A project report on comparative study of mutual funds in india
A project report on comparative study of mutual funds in indiaA project report on comparative study of mutual funds in india
A project report on comparative study of mutual funds in india
 
List of mba project topics reports
List of  mba project topics  reportsList of  mba project topics  reports
List of mba project topics reports
 
Mutual Fund Question Bank 2
Mutual Fund Question Bank 2Mutual Fund Question Bank 2
Mutual Fund Question Bank 2
 
LinkedIn SlideShare: Knowledge, Well-Presented
LinkedIn SlideShare: Knowledge, Well-PresentedLinkedIn SlideShare: Knowledge, Well-Presented
LinkedIn SlideShare: Knowledge, Well-Presented
 
How to Make Awesome SlideShares: Tips & Tricks
How to Make Awesome SlideShares: Tips & TricksHow to Make Awesome SlideShares: Tips & Tricks
How to Make Awesome SlideShares: Tips & Tricks
 
Getting Started With SlideShare
Getting Started With SlideShareGetting Started With SlideShare
Getting Started With SlideShare
 

Ähnlich wie Study about investors perception and investment pettern in mutual fund at idfc amc ltd

Summer intership report on idfc mutual fund for MBA
Summer intership report on idfc mutual fund for MBASummer intership report on idfc mutual fund for MBA
Summer intership report on idfc mutual fund for MBAManthan Soni
 
MUKESH MAURYA BRP REPORT.pdf
MUKESH MAURYA BRP REPORT.pdfMUKESH MAURYA BRP REPORT.pdf
MUKESH MAURYA BRP REPORT.pdfPrinceVerma938105
 
Internship _report_AT IDFC MUTUAL FUNDS.pdf
Internship _report_AT IDFC MUTUAL FUNDS.pdfInternship _report_AT IDFC MUTUAL FUNDS.pdf
Internship _report_AT IDFC MUTUAL FUNDS.pdfPranavChauhan38
 
Financial services for fund based credit facility in the from of cash credit
Financial services for fund based credit facility in the from of cash creditFinancial services for fund based credit facility in the from of cash credit
Financial services for fund based credit facility in the from of cash creditPritesh Radadiya
 
NJ india summer training report
NJ india summer training reportNJ india summer training report
NJ india summer training reportpravinks1610
 
DERIVATIVES STRATEGIES IN DAILY LIFE
DERIVATIVES STRATEGIES IN DAILY LIFEDERIVATIVES STRATEGIES IN DAILY LIFE
DERIVATIVES STRATEGIES IN DAILY LIFEpratim roy
 
A survey of investors for analyzing the various aspects of fixed deposit mark...
A survey of investors for analyzing the various aspects of fixed deposit mark...A survey of investors for analyzing the various aspects of fixed deposit mark...
A survey of investors for analyzing the various aspects of fixed deposit mark...123satyendra
 
Impact of Advertisements on Investors at HDFC Standard Life Insurance
Impact of Advertisements on Investors at HDFC Standard Life InsuranceImpact of Advertisements on Investors at HDFC Standard Life Insurance
Impact of Advertisements on Investors at HDFC Standard Life InsuranceProjects Kart
 
A project report on hul pureit
A project report on hul pureitA project report on hul pureit
A project report on hul pureitSoumyaprakash Pani
 
A project report on hul pureit
A project report on hul pureitA project report on hul pureit
A project report on hul pureitSoumyaprakash Pani
 
Research report on affect of investment style on mutual fund performance
Research report on affect of investment style on mutual fund performanceResearch report on affect of investment style on mutual fund performance
Research report on affect of investment style on mutual fund performancePratap Kumar
 
A STUDY OF INVESTORS AWARENESS ON DIGIALIZATION OF MUTUAL FUNDS
A STUDY OF INVESTORS AWARENESS ON DIGIALIZATION OF MUTUAL FUNDSA STUDY OF INVESTORS AWARENESS ON DIGIALIZATION OF MUTUAL FUNDS
A STUDY OF INVESTORS AWARENESS ON DIGIALIZATION OF MUTUAL FUNDSshweta rani
 
SIP Report - Equity Research (Fundamental and Technical Analysis).docx
SIP Report - Equity Research (Fundamental and Technical Analysis).docxSIP Report - Equity Research (Fundamental and Technical Analysis).docx
SIP Report - Equity Research (Fundamental and Technical Analysis).docxHrishikeshHimesh
 

Ähnlich wie Study about investors perception and investment pettern in mutual fund at idfc amc ltd (20)

Summer intership report on idfc mutual fund for MBA
Summer intership report on idfc mutual fund for MBASummer intership report on idfc mutual fund for MBA
Summer intership report on idfc mutual fund for MBA
 
MUKESH MAURYA BRP REPORT.pdf
MUKESH MAURYA BRP REPORT.pdfMUKESH MAURYA BRP REPORT.pdf
MUKESH MAURYA BRP REPORT.pdf
 
Internship _report_AT IDFC MUTUAL FUNDS.pdf
Internship _report_AT IDFC MUTUAL FUNDS.pdfInternship _report_AT IDFC MUTUAL FUNDS.pdf
Internship _report_AT IDFC MUTUAL FUNDS.pdf
 
Financial services for fund based credit facility in the from of cash credit
Financial services for fund based credit facility in the from of cash creditFinancial services for fund based credit facility in the from of cash credit
Financial services for fund based credit facility in the from of cash credit
 
NJ india summer training report
NJ india summer training reportNJ india summer training report
NJ india summer training report
 
DERIVATIVES STRATEGIES IN DAILY LIFE
DERIVATIVES STRATEGIES IN DAILY LIFEDERIVATIVES STRATEGIES IN DAILY LIFE
DERIVATIVES STRATEGIES IN DAILY LIFE
 
A survey of investors for analyzing the various aspects of fixed deposit mark...
A survey of investors for analyzing the various aspects of fixed deposit mark...A survey of investors for analyzing the various aspects of fixed deposit mark...
A survey of investors for analyzing the various aspects of fixed deposit mark...
 
MBA Dissertation Report
MBA Dissertation ReportMBA Dissertation Report
MBA Dissertation Report
 
Impact of Advertisements on Investors at HDFC Standard Life Insurance
Impact of Advertisements on Investors at HDFC Standard Life InsuranceImpact of Advertisements on Investors at HDFC Standard Life Insurance
Impact of Advertisements on Investors at HDFC Standard Life Insurance
 
vishal and bhavesh
vishal and bhaveshvishal and bhavesh
vishal and bhavesh
 
157340592132
157340592132157340592132
157340592132
 
2
22
2
 
A project report on hul pureit
A project report on hul pureitA project report on hul pureit
A project report on hul pureit
 
A project report on hul pureit
A project report on hul pureitA project report on hul pureit
A project report on hul pureit
 
Research report on affect of investment style on mutual fund performance
Research report on affect of investment style on mutual fund performanceResearch report on affect of investment style on mutual fund performance
Research report on affect of investment style on mutual fund performance
 
A STUDY OF INVESTORS AWARENESS ON DIGIALIZATION OF MUTUAL FUNDS
A STUDY OF INVESTORS AWARENESS ON DIGIALIZATION OF MUTUAL FUNDSA STUDY OF INVESTORS AWARENESS ON DIGIALIZATION OF MUTUAL FUNDS
A STUDY OF INVESTORS AWARENESS ON DIGIALIZATION OF MUTUAL FUNDS
 
Jagdishsodha
JagdishsodhaJagdishsodha
Jagdishsodha
 
SIP Report - Equity Research (Fundamental and Technical Analysis).docx
SIP Report - Equity Research (Fundamental and Technical Analysis).docxSIP Report - Equity Research (Fundamental and Technical Analysis).docx
SIP Report - Equity Research (Fundamental and Technical Analysis).docx
 
Sip zeeshan khan
Sip zeeshan khanSip zeeshan khan
Sip zeeshan khan
 
mba report
mba reportmba report
mba report
 

Kürzlich hochgeladen

P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfP4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfYu Kanazawa / Osaka University
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17Celine George
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...CaraSkikne1
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxKatherine Villaluna
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxSaurabhParmar42
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRATanmoy Mishra
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesCeline George
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsEugene Lysak
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.EnglishCEIPdeSigeiro
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfMohonDas
 
How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17Celine George
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptxmary850239
 
UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17Celine George
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptxraviapr7
 
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptxSandy Millin
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice documentXsasf Sfdfasd
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...Nguyen Thanh Tu Collection
 

Kürzlich hochgeladen (20)

P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdfP4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
P4C x ELT = P4ELT: Its Theoretical Background (Kanazawa, 2024 March).pdf
 
How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17How to Add a New Field in Existing Kanban View in Odoo 17
How to Add a New Field in Existing Kanban View in Odoo 17
 
5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...5 charts on South Africa as a source country for international student recrui...
5 charts on South Africa as a source country for international student recrui...
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptx
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptx
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 Sales
 
The Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George WellsThe Stolen Bacillus by Herbert George Wells
The Stolen Bacillus by Herbert George Wells
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.
 
HED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdfHED Office Sohayok Exam Question Solution 2023.pdf
HED Office Sohayok Exam Question Solution 2023.pdf
 
How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17
 
3.21.24 The Origins of Black Power.pptx
3.21.24  The Origins of Black Power.pptx3.21.24  The Origins of Black Power.pptx
3.21.24 The Origins of Black Power.pptx
 
UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
 
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
2024.03.23 What do successful readers do - Sandy Millin for PARK.pptx
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice document
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
 

Study about investors perception and investment pettern in mutual fund at idfc amc ltd

  • 1. 1 A Project Study Report On Training Undertaken at IDFC AMC ltd, Ahmadabad “STUDY ABOUT INVESTORS PERCEPTION AND INVESTMENT PETTERN IN MUTUAL FUND AT IDFC AMC ltd” Submitted by: - MANTHAN SONI (Enr. No: - 137690592115) RUSHABH PATEL (Enr. No:- 137690592102) MBA PROGRAMME 2013-2015 In partial fulfillment of the requirements for Summer Internship Programme for the award of the degree of MASTER OF BUSINESS ADMINISTRATION SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT AND COMPUTER APPLICATIONS (NICM-MBA) Submitted to:- GUJARAT TECHNOLOGICAL UNIVERSITY, AHMEDABAD
  • 2. 2 PREFACE With the growth of rapid industrialization the need of management is felt every where. A research report provides the most natural condition under which a student can learn and got success in implementing the theoretically learned in to the practical and current environment of daily practices done by the people (investor) it helps a student to learn, to improve, to improvise, to experiment, to find knowledge in all possible ways and to translate that knowledge into action. MBA is a foundation stone to the management career. The classroom learning needs to practical exposure. To develop concrete managerial and administrative skills of potential manager, it is important that the interaction to the real environment be there. The project is a real life venture for me. It is a great privilege that you have spread your for reading this. In forthcoming pages, an attempt has been made to present the different aspect of my project. Date: Manthan soni Place: Gandhinagar (GTU’s Enrollment No: - 137690592115) Rushabh patel (GTU’s Enrollment No: - 137690592102)
  • 3. 3 Declaration This project report entitled “Understanding Study of Investors perception and investment pattern in mutual fund at IDFC” has been submitted to Gujarat Technological University, Ahmadabad in partial fulfillment for the award of degree of Master of Business Administration. I, the undersigned hereby declare that this report has been completed by me under the guidance of Mr.Pankil thakker (Assistant Vise President) and Prof.Rashesh Patel (Faculty Member, ShriJairambhai Patel Institute of Business Management & Computer Applications, Gandhinagar.) The report is entirely the result of my own efforts and has not been submitted either in part or whole to any other institute or university for any degree. Manthan soni (GTU’s Enrollment No: - 137690592115) Rushabh patel (GTU’s Enrollment No: - 137690592102) Date: Place: Gandhinagar
  • 4. 4 ACKNOWLEDGEMENT “Chain of mistakes leads towards failures, chain of failures leads to experience & chain of experience leads to success.” That’s what a life’s path is. I express my heartfelt thanks to Dr. S.O. Junare, Director of NICM for providing me an opportunity for carrying out this study. My special thanks to Prof. Rashesh Patel, Assistant Professor, NICM, who had been a mentor and had supported me by his vast knowledge, experience and wisdom. He had been a constant support me throughout the completion of the study I take the opportunity to thank Mr. Hardik, Senior vise president, IDFC, who has motivated us to achieve new heights and work creatively. I would also like to thank my guide Mr. Pankil Thakker, Assistant Vise President, IDFC. Who have immensely guided, supported and helped me in the process of completion of my Organizational Study through his constant encouragement and suggestions. I take the opportunity to thank Mrs.Rekha nair, Sales manager, IDFC. Who had been a constant support throughout the completion of the study? My sincere and humble thanks to all my faculty members, my beloved parents, my dear friends and each and everyone who have been never ending source of knowledge, inspiration and support to me. Signature of the Student Manthan soni (GTU’s Enrollment No: - 137690592115) Rushabh patel (GTU’s Enrollment No: - 137690592102)
  • 5. 5 Shri Jairambhai Patel Institute of Business Management and Computer Applications (Formerly known as National Institute of Cooperative Management), Approved by AICTE, New Delhi and Affiliated with Gujarat Technological University Opposite Amusement Park, Indroda Circle, Gandhinagar - 382 007 Phone: 079 – 23213043, 37 - 38 - 39 Fax : 079 – 23213036 Web: www.nicm.coop E mail: director_mbanicm@yahoo.com CERTIFICATE This is to certify that Manthan soni & Rushabh patel, student of MBA (2012-2014 batch) at Post Graduate Centre of Gujarat Technological University – MBA, SJPI has prepared a Summer Internship Project Report on “ STUDY ABOUT INVESTORS PERCEPTION AND INVESTMENT PETTERN IN MUTUAL FUND AT IDFC AMC ltd ” in partial fulfillment of two years full-time MBA Programme of Gujarat Technological University, Ahmedabad. This project work has been undertaken under my supervision and found satisfactory. Date : ----------------- Prof. Rashesh patel Place: Gandhinagar Core Faculty – MBA Dept. & Project Guide Dr. S O JunareDirector – Technical Campus
  • 6. 6 ABSTRACT  Being such a hot and much talked about financial product in the recent times, we take it as a great opportunity to study and analyze the Indian mutual fund Industry and give my observation on it. It will not only help building my career but it will also help Mahindra finance in certain aspect. The Indian Mutual Funds Industry has witnessed a sea change since UTI was first established in 1963. From a single player the number of players has increased to more than 30 and the number of schemes has spiraled to more than 3500. The last decade has been a period of rapid growth for the MF industry. The industry is in nascent stage at present. It has come a long way and still has lots of potential for growth. My project in IDFC mainly deals with to Understanding Investors perception and investment pattern in mutual fund at IDFC and also selling through several financial channels available in the market. And my main aim is to attain profit for the company and give them good business. Fist part of study, we undertake the research study survey through questionnaire fill up on investment pattern in mutual fund by Investors. And after that I visited the list of bank given to me Kotak, HDFC, Axis Bank etc. And Meet with Relationship manager and try to give them knowledge about the product and then try to sale the product to their client and Understanding of Investors perception and investment pattern in mutual fund. And in these project my main aim to see which schemes are giving better returns and at a reasonable risk. But risk itself is a very subjective terms that depend on person to person. And also how asset management companies are performing and how their ranking in investment terms is.And during the course of the project we have not only learnt about mutual fund industry but also try to Understanding of Investors perception and investment pattern in mutual fund at IDFC the company.
  • 7. 7 Table of Content Chapter No. Particulars Page No. Part:1 General information 1 1.1 About The Mutual fund Industry 9 1.2 Mutual fund Industry in India 9 1.3 Conceptual Framework of Mutual Fund 13 1.4 Concept of Mutual fund 15 1.5 How To Invest in Mutual fund 28 2 2.1 Company Profile 36 2.2 SWOT Analysis of Company and Its Competitors 43 2.3 Scheme of IDFC 44 Part :2 Primary Study 3 3.1 Introduction of the study 53 3.2 Literature Review 53 3.3 Background of study 56 3.4 Problem Statement 60 3.5 Objectives Of the study 61 3.6 Hypothesis 5 Research Methodology 62 4.1 Research Design 62 4.2 Source of Data 62
  • 8. 8 4.3 Sampling Method 63 4.4 Sampling Size 63 4.5 Data Collection Instrument 63 4.6 Statistical Tools Used 63 5 Analysis & Data interpretation 64 6 Hypothesis testing 89 7 Suggestions 91 8 Limitations of the study 93 9 Findings 93 10 Conclusion 94 11 Bibliography 95 12 Annexure 96
  • 9. 9 1.1 About The Mutual fund Industry The one investment vehicle that has truly come of age in India in the past decade is mutual funds. Today, the mutual fund industry in the country manages around Rs 329,162 crore (As of Dec, 2006) of assets, a large part of which comes from retail investors. And this amount is invested not just in equities, but also in the entire gamut of debt instruments. Mutual funds have emerged as a proxy for investing in avenues that are out of reach of most retail investors, particularly government securities and money market instruments. Specialization is the order of the day, be it with regard to a scheme’s investment objective or its targeted investment universe. Given the plethora of options on hand and the hard-sell adopted by mutual funds vying for a piece of your savings, finding the right scheme can sometimes seem a bit daunting. Mind you, it’s not just about going with the fund that gives you the highest returns. It’s also about managing risk–finding funds that suit your risk appetite and investment needs. So, how can you, the retail investor, create wealth for yourself by investing through mutual funds? To answer that, we need to get down to brass tacks–what exactly is a mutual fund?Very simply, a mutual fund is an investment vehicle that pools in the monies of several investors, and collectively invests this amount in either the equity market or the debt market, or both, depending upon the fund’s objective. This means you can access either the equity or the debt market, or both, without investing directly in equity or debt. 1.2 MUTUAL FUND INDUSTRY IN INDIA The end of millennium marks 36 years of existence of mutual funds in this country. The ride through these 36 years is not been smooth. Investors opinion is still divided. While some are for mutual funds others are against it. UTI commenced its operation fom july 1964. The impetus for establishing a formal institution came from the desire to increase the propensity of the middle and lower groups to save and to invest. UTI came into existence during a period
  • 10. 10 marked by great political and economic uncertainity in India. With was on the borders and economic turmoil that depressed the financial market, entrepreneurs were hesitant to enter capital market. 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 wise. Before, the monopoly of the market had seen an ending phase: the Assent under Management(AUM) was Rs.67bn. The private sector entry to the fund family raised the AUM to Rs.470bn in March 1993 and till April 2004; it reached the height of 1,540bn. Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of the total depostits held by the Indian banking industry. The main reason of its poor growth is theat the mutual fund industry in India is new in the country. Large sections of Indian investrors are yet to be intellect wih the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly abreast of selling. 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 Act of Parliament. It was set up by the Reserve Bank of India and functioned uned the Regulatory and admisnistrative control of the Reserve Bank f India. In 1978 UTI was de-linked from RBI and the Industrial Development Bank of India(IDBI) took ove the regulatory and admistrative control in
  • 11. 11 place of RBI. The first scheme launched bye UTI was Unit Scheme 1964. At te end of 1988 UTI had Rs.6,700 crores of assets under management. Second phase 1987-1993(entry of public sector funds) The period 1986-1993 can be termed as the period of public sector mutual funds (PMSs). From one player in 1985 the number increased to 8 in 1993. Entry of non-UTI mutual funds. SBI mutual fund was the first followed Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Oct 90), Bank of Baroda Mutual fund (oct 92). LIC in 1989 and GIC in 1990. The end of 1993 marked Rs. 47,000 as assets under management. The industry was one-entity show till 1986 when the UTI monopoly was broken when SBI and BOI, LIC, GIC etc. sponsored by public sector banks. Starting with an asset base of Rs. 0.25bn in 1964 the industry has grown at a compounded average growth rate of 26.34% to its current size of Rs. 1130bn. Third phase 1990-2003 (entry of private sector funds) When the private sector made its debut in 1993-94, the stock market was booming. Also, 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. Other Private sector mutual funds are Morgan Sanley, Jardine Fleming, JP Morgan, George Soros and Capital International along with the host of domestic players join the party. The 1993 SEBI (Mutual Fund) Regulations substituted by a more comprehensive and revised Mutual Find regulations 1996. But for the equity funds, the period of 1994-96 was one of the worst in the history of Indian Mutual Funds, But the year 1999 saw immense future potential and developments in this sector. This year signaled the year of resurgence of mutual funds and the regaining of investor confidence in these MF’s. As at the end of January 2003, There were 33 mutual
  • 12. 12 fund with total assets of Rs.1,21,805 crores. The Unit Trust of India with Rs. 44,541 crores of assets under management was way ahead of other mutual funds. Fourth Phase – Since February 2003 This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835 crores (as on January 2003). The specified undertaking of Unit Trust of India, functioning under an adminisratior and unde the rules framed by Government of India and Does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC, It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of AUM and with the setting up of a UTI mutual fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September 2004, There were 29 fund, Which manage assets of Rs. 153108 crores under 421 Structure of Mutual Funds in India. At the end of year 2006 the AUM crossed 2,50,000 crores. GROWTH IN ASSETS UNDER MANAGEMENT
  • 13. 13 The essential features of the mutual funds distinguishing from other of the investments are:-  The mutual fund is a trust into which many relatively small investors invest their money to form a large pool of cash which is then invested in securities by the manager of the trust.  The price at which units can be bought and sold is governed solely by the value of the underlying securities held by the MF and dealing in units are on the basis of net market value of the investment per unit.  The managers of MF are obliged to redeem any units in issue on demand or certain specified period.  All dividend income that the MF receives on its investments is paid out to unit holders.  Since the unit held by investor evidences the ownership of the fund’s assets, the value of an investors part ownership is determined by the NAV of the number of units held. 1.3 Conceptual Framework of Mutual Fund A mutual fund is constituted as a public trust created under the Indian Trust Act, 1882. SEBI (mutual fund) regulations, 1996 regulate the structure of the mutual funds in India. As per these regulations should have the following three-tier structure: i) Sponsor ii) Trust/trustee iii) Asset Management Company Apart from this mutual fund consist of
  • 14. 14 Sponsor Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. The sponsor establishes the mutual fund and registers the same with SEBI. Sponsor appoints the Trustees, custodians and the AMC with prior approval of SEBI and in accordance with SEBI Regulations. Sponsor must have a 5-year track record of business interest in the financial markets. Sponsor must have been profit making in at least 3 of the above 5 years. Sponsor must contribute at least 40% of the net worth of the Investment Managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund.  Trust The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.  Trustee
  • 15. 15 Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter alia ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor in any manner.  Asset Management Company (AMC) The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund. At least 50% of the directors of the AMC are independent directors who are not associated with the Sponsor in any manner. The AMC must have a net worth of at least 10 crore at all times.  Registrar and Transfer Agent The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records.  Custodian A custodian is an agent, bank, trust company, or other organization which holds and safeguards an individual's, mutual funds, or investment company's assets for them. 2.1 Concept of a Mutual Fund A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through
  • 16. 16 these investments and the capital appreciation realized is shared by its unit holders in proportion to 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. The flow chart below describes broadly the working of a mutual fund:- Savings form an important part of the economy of any nation. With savings invested in various options available to the people, the money acts as the driver for growth of the country. Indian financial scene too presents multiple avenues to the investors. Though certainly not the best or deepest of markets in the world, it has ignited the growth rate in mutual fund industry to provide reasonable options for an ordinary man to invest his savings. Investment goals vary from person to person. While somebody wants security, others might give more weightage to returns alone. Somebody else might want to plan for his child’s education while somebody might be saving for the proverbial rainy day or even life after retirement. With objectives defying any range, it is obvious that the products required will vary as well. Investors earn from a Mutual Fund in three ways: 1. Income is earned from dividends declared by mutual fund schemes from time to time.
  • 17. 17 2. If the fund sells securities that have increased in price, the fund has a capital gain. This is reflected in the price of each unit. When investors sell these units at prices higher than their purchase price, they stand to make a gain. 3. If fund holdings increase in price but are not sold by the fund manager, the fund's unit price increases. You can then sell your mutual fund units for a profit. This is tantamount to a valuation gain. Though still at a nascent stage, Indian MF industry offers a plethora of schemes and serves broadly all type of investors. The range of products includes equity funds, debt, liquid, gilt and balanced funds. There are also funds meant exclusively for young and old, small and large investors. Moreover, the setup of a legal structure, which has enough teeth to safeguard investors’ interest, ensures that the investors are not cheated out of their hard- earned money. All in all, benefits provided by them cut across the boundaries of investor category and thus create for them, a universal appeal. Investors of all categories could choose to invest on their own in multiple options but opt for mutual funds for the sole reason that all benefits come in a package. Advantages of Mutual Funds 1. Professional Management Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme. This risk of default by any company that one has chosen to invest in, can be minimized by investing in mutual funds as the fund managers analyze the companies’ financials more minutely than an individual can do as they have the expertise to do so. They can manage the maturity of their portfolio by investing in instruments of varied maturity profiles. 2. Diversification
  • 18. 18 Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own. 3. ConvenientAdministration Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient. 4. ReturnPotential Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities. Apart from liquidity, these funds have also provided very good post-tax returns on year to year basis. Even historically, we find that some of the debt funds have generated superior returns at relatively low level of risks. On an average debt funds have posted returns over 10 percent over one-year horizon. The best performing funds have given returns of around 14 percent in the last one-year period. In nutshell we can say that these funds have delivered more than what one expects of debt avenues such as post office schemes or bank fixed deposits. Though they are charged with a dividend distribution tax on dividend payout at 12.5 percent (plus a surcharge of 10 percent), the net income received is still tax free in the hands of investor and is generally much more than all other avenues, on a post-tax basis. 5. LowCosts Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. 6. Liquidity
  • 19. 19 In open-end schemes, the investor gets the money back promptly at net asset value related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund. Since there is no penalty on pre- mature withdrawal, as in the cases of fixed deposits, debt funds provide enough liquidity. Moreover, mutual funds are better placed to absorb the fluctuations in the prices of the securities as a result of interest rate variation and one can benefits from any such price movement. 7. Transparency Investors get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund manager's investment strategy and outlook. 8. Flexibility Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans; you can systematically invest or withdraw funds according to your needs and convenience. 9. Affordability A single person cannot invest in multiple high-priced stocks for the sole reason that his pockets are not likely to be deep enough. This limits him from diversifying his portfolio as well as benefiting from multiple investments. Here again, investing through MF route enables an investor to invest in many good stocks and reap benefits even through a small investment. Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy. 10.ChoiceofSchemes Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
  • 20. 20 11.WellRegulated All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI. 12.Tax Benefits Last but not the least, mutual funds offer significant tax advantages. Dividends distributed by them are tax-free in the hands of the investor. They also give you the advantages of capital gains taxation. If you hold units beyond one year, you get the benefits of indexation. Simply put, indexation benefits increase your purchase cost by a certain portion, depending upon the yearly cost-inflation index (which is calculated to account for rising inflation), thereby reducing the gap between your actual purchase cost and selling price. This reduces your tax liability. What’s more, tax-saving schemes and pension schemes give you the added advantage of benefits under Section 88. You can avail of a 20 per cent tax exemption on an investment of up to Rs 10,000 in the scheme in a year. Indian Equity Income from dividends-(investor- free & DDT-NIL) Iincome from capital gains-(short term-15% & long term- free) Others Income from dividends-(investor- free & DDT-individual & HUL-14.025 & others-22.440 Income from capital gains-(short term- as per tax slab & long term-10% or 20% with indexation
  • 21. 21 Disadvantages of mutual funds Mutual funds are good investment vehicles to navigate the complex and unpredictable world of investments. However, even mutual funds have some inherent drawbacks. Understand these before you commit your money to a mutual fund. 1. No assured returns and no protection of capital If you are planning to go with a mutual fund, this must be your mantra: mutual funds do not offer assured returns and carry risk. For instance, unlike bank deposits, your investment in a mutual fund can fall in value. In addition, mutual funds are not insured or guaranteed by any government body (unlike a bank deposit, where up to Rs 1 lakh per bank is insured by the Deposit and Credit Insurance Corporation, a subsidiary of the Reserve Bank of India). There are strict norms for any fund that assures returns and it is now compulsory for funds to establish that they have resources to back such assurances. This is because most closed- end funds that assured returns in the early-nineties failed to stick to their assurances made at the time of launch, resulting in losses to investors. A scheme cannot make any guarantee of return, without stating the name of the guarantor, and disclosing the net worth of the guarantor. The past performance of the assured return schemes should also be given. 2. Restrictive gains Diversification helps, if risk minimization is your objective. However, the lack of investment focus also means you gain less than if you had invested directly in a single security. Assume, Reliance appreciated 50 per cent. A direct investment in the stock would appreciate by 50 per cent. But your investment in the mutual fund, which had invested 10 per cent of its corpus in Reliance, will see only a 5 per cent appreciation. 3. Taxes During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on the income you receive, even if you reinvest the money you made.
  • 22. 22 4. Management risk When you invest in a mutual fund, you depend on the fund's manager to make the right decisions regarding the fund's portfolio. If the manager does not perform as well as you had hoped, you might not make as much money on your investment as you expected. Of course, if you invest in Index Funds, you forego management risk, because these funds do not employ managers. TYPES OF MUTUAL FUND SCHEMES There are a wide variety of Mutual Fund schemes that cater to your needs, whatever your age, financialposition, risk tolerance and return expectations. Whether as the foundation of your investmentprogramme or as a supplement, Mutual Fund schemes can help you meet your financial goals. TYPES OF MUTUAL FUND SCHEME By structure By Investment Objectives Other Schemes Open-ended Schemes Sector specific fund Tax saving fund Equity SchemesDebt Schemes Close Ended Schemes
  • 23. 23 Figure 3 (AI) By Structure  Open-Ended Schemes These do not have a fixed maturity. You deal directly with the Mutual Fund for your investments and redemptions. The key feature is liquidity. You can conveniently buy and sell your units at Net Asset Value ("NAV") related prices.  Close-Ended Schemes Schemes that have a stipulated maturity period (ranging from 2 to 15 years) are called close-ended schemes. You can invest directly in the scheme at the time of the initial issue and thereafter you can buy or sell the units of the scheme on the stock exchanges where they are listed. The market price at the stock exchange could vary from the scheme's NAV on account of demand and supply situation, Unit holders' expectations and other market factors. One of the characteristics of the close-ended schemes is that they are generally traded at a discount to NAV but closer to maturity, the discount narrows. Some close-ended schemes give you an additional option of selling your units directly to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations ensure that at least one of the two exit routes are provided to the investor.  Interval Schemes These combine the features of open-ended and close-ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during predetermined intervals at NAV related prices. Interval Schemes Index Schemes Small cap fund MM Mutual fund Other Debt Schemes FMP Any Other Equity Fund Mid cap Fund Large cap fund
  • 24. 24 (B) By Investment Objective  Growth Schemes Aim to provide capital appreciation over the medium to long term. These schemes normally invest amajority of their funds in equities and are willing to bear short-term decline in value for possible futureappreciation. These schemes are not for investors seeking regular income or needing their money backin the short term.  Income Schemes Aim to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital appreciation in such schemes may be limited. Ideal for  Retired people and others with a need for capital Stability and regular income  Investor who need some income to supplement their earnings.  Balanced Schemes Aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. They invest in both shares and fixed income securities in the proportion indicated in their offer documents. In a rising stock market the NAV of these schemes may not normally keep pace, or fall equally when the market falls. Ideal for:  Investors looking for a combination of income and moderate growth.
  • 25. 25  Money Market/Liquid Schemes Aim to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer, short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate, depending upon the interest rates prevailing in the market. Ideal for:  Corporate and individual investors as a means to park their surplus funds for short periods or awaiting a more favorable investment alternative.  Other Schemes  Tax Saving Schemes These schemes offer tax rebates to the investors under tax laws as prescribed from time to time. This is made possible because the Government offers tax incentives for investment in specified avenues. For example, Equity Linked Savings Schemes (ELSS) and Pension Schemes. The details of such tax saving schemes are provided in the relevant offer documents. Ideal for:  Investors seeking tax rebates.  Special Schemes This category includes index schemes that attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50, or industry specific schemes (which invest in specific industries) or sectorial schemes (which invest exclusively in segments such as A Group shares or initial public offerings)
  • 26. 26  Different Modes of Receiving the Income Earned From Mutual Fund Investments Mutual funds offer three methods of receiving income: Growth Plan: In this plan, dividend is neither declared nor paid out to the investors but it is built into the value of the NAV. In the other words, the NAV increases over time due to such incomes and the investor realizes only the capital appreciation on redemption of his investment. Income plan or Dividend Payout Plan: In this plan, dividends are paid-out to the investors. In other words, the NAV only reflects the capital appreciation or depreciation in the market price of the underlying portfolio. Dividend Reinvestment Plan: In this plan, dividend is declared but not paid out to the investors. Instead, it is reinvested back in to the scheme at the then prevailing NAV. In other words, the
  • 27. 27 RISK TYPE OF FUND Money Market Fund Debt Fund Gilt Fund Hybrid Fund Equity Fund Aggressive Growth Fund Flexible Asset Allocation Fund Growth Funds High Yield Debt Funds Diversified Equity Fund Index Fund Value Funds Money Market Funds Equity Income Funds Focused Debt Funds Diversified Debt Fund Balanced FundsGilt Funds RISK HIERARCHY OF MUTUAL FUNDS Growth and Income Funds
  • 28. 28 Mutual Fund Investment Strategies  Systematic Investment Plan (SIP): SIPs entail an investor to invest a fixed sum of money at regular intervals in MF scheme the investor has chosen. This may help you gain from any appreciation in the event of upside or alternatively, average your cost during downside. Seeing the present volatility in the market SIP is the best option available to the investor due to regular entry into the market which causes rupee cost averaging and hence covers the volatility.  Systematic Withdrawal Plan (SWPs): These plans are best suited for people nearing retirement. In these plans investor invest in a mutual fund scheme and is allowed to withdraw a fixed sum of money at regular intervals to take care of expenses.  Systematic Transfer Plan (STP): They allow the investor to transfer on a periodic basis a specified amount from one scheme to another with in the same fund family meaning two schemes belonging to the same mutual fund. A transfer will be treated as redemption of units from the scheme from which the transfer is made. 2.2 HOW TO INVEST IN MUTUAL FUNDS. Step One- Identify your investment needs. Your financial goals will vary, based on your age, lifestyle, financial independence, family commitments, level of income and expenses among many other factors. Therefore, the first step is to assess your needs.
  • 29. 29 Step Two- Choose the right Mutual Fund. Once you have a clear strategy in mind, you now have to choose which Mutual Fund and scheme you want to invest in. The offer document of the scheme tells you its objectives and provides supplementary details like the track record of other schemes managed by the same Fund Manager. Some factors to evaluate before choosing a particular Mutual Fund are:  The track record of performance over the last few years in relation to the appropriate yardstick and similar funds in the same category.  How well the Mutual Fund is organized to provide efficient, prompt and personalized service.  Degree of transparency as reflected in frequency and quality of their communications. Step Three- Select the ideal mix of Schemes. Investing in just one Mutual Fund scheme may not meet all your investment needs. You may consider investing in a combination of schemes to achieve your specific goals. The following charts could prove useful in selecting a combination of schemes that satisfy your needs. Figure 4 This plan may suit  Investor seeking Income & moderate growth.  Investor looking for growth & stability with moderate risk Aggressive Plan Growth Scheme Income Scheme Money market Scheme Balanced Scheme
  • 30. 30 Figure 5 Step Four - Invest regularly. Step Five- Keep your taxes in mind Step Six- Start early It is desirable to start investing early and stick to a regular investment plan. If you start now, you will make more than if you wait and invest later. The power of compounding lets you earn income on income and your money multiplies at a compounded rate of return. Step Seven-The final step all you need to do now is to get in touch with a Mutual Fund or yourAgent/broker and start investing. Reap the rewards in the years to come. Mutual Funds are suitable for every kind of investor-whether starting a career or retiring, conservative or risk taking, growth oriented or income seeking. What fees and commissions will you pay when you invest in mutual funds? The fees and commissions you may be charged can vary widely from one fund, and one dealer, to the next. Some of the charges may be negotiable, but you should make sure that you understand all of the costs before you invest. There are two main costs to consider – themanagement and operating expenses that are charged tothe fund each year, and the sales charges (or loads) that you pay when you buy or sellthe fund. Conservative Plan Growth Scheme Income Scheme Money Scheme Balanced Scheme
  • 31. 31 Management and Operating Expenses are expenses paid each year by the fund and include such things as the manager’s fees, legal and accounting fees, custodial fees and bookkeeping costs. The Management Expense Ratio (MER) is the percentage of the fund’s average net assets that these expenses represent. For example, if a $100 million fund has $2 million in costs for the year its MER will be 2%. MERs can range from under 1% per year for some money market funds to almost 3% for some equity funds. The higher the MER, the greater the impact on the fund’s performance and the return to its investors because these expenses are removed before the value is reported. Sales Charges (Loads) are the commissions that you may have to pay when you buy or redeem units of a fund. Sales charges may be applied when you buy units of the fund (Afront-end load), when you redeem your units (a back-end load), or there may be no sales charges at all (no-load).Where front-end loads are charged, the rate can vary fromdealer to dealer and may be negotiable. Shop around, andremember that every dollar you pay up-front in commissionis a dollar that does not go to work for you in the fund.Many funds are sold on a back-end load basis, meaninggenerally that the sales charges are applied only when youredeem the fund. Back-end load fees are paid by the fundmanagement company to your mutual fund salesperson – youdo not pay this fee. You do, however, pay a ‘redemption fee’ ifyou redeem your units in the fund before a certain time period,typically 7 years. Redemption fees decline each year thatyou hold the investment. For example, you might have to paya 6% fee if you redeem the fund after one year, 4% if youredeem after three years, and no commission if you redeemafter seven years.An increasing number of funds are being sold on a no-loadbasis, in which investors pay no sales charges, but beforeyou decide that a no-load fund is right for you, consider thefund’s performance, its management expense ratio and thelevel of service and advice you will receive.
  • 32. 32 Different Avenues of investment OPTIONS RETURN RISK LIQUIDITY Savings account Very low Very low High Fixed Deposits Low Low Low Direct Equity Very high return Very high High Insurance Medium Low Low Company fixed deposits Low High Very low Debentures Low Medium Medium Bonds Low Low Low Mutual funds High Medium High Post office schemes Low Low Low Government securities Low Low Low Real estate High High Low Currency High High High Bullion Medium High Medium RISKS OF INVESTING IN MUTUAL FUNDS Market / Interest Risk Volatility of prices leading to “floating” returns Largely mitigated with a holding period of over 6 months Credit Risk Potential default of bonds on the portfolio Equity Risk Possibility of the fund manager not able to meet redemptions
  • 33. 33 IMPACT OF TECHNOLOGY Mutual fund, during the last one decade brought out several innovations in their products and is offering value added services to their investors. Some of the value added services that are being offered are: • Electronic fund transfer facility. • Investment and re-purchase facility through internet. • Added features like accident insurance cover, med claim etc. • Holding the investment in electronic form, doing away with the traditional form of unitcertificates. • Cheque writing facilities. • Systematic withdrawal and deposit facility. ONLINE MUTUAL FUND TRADING The innovation the industry saw was in the field of distribution to make it more easily accessible to an ever increasing number of investors across the country. For the first time in India the mutual fund start using the automated trading, clearing and settlement system of stock exchanges for sale and repurchase of open-ended de-materialized mutual fund units. Systematic Investment Plan (SIP) and Systematic Withdrawal Plan (SWP) were options introduced which have come in very handy for the investor to maximize their returns from their investments. SIP ensures that there is a regular investment that the investor makes on specified dates making his purchases to spread out reducing the effect of the short term volatility of markets. SWP was designed to ensure that investors who wanted a regular income or cash flow from their investments were able to do so with a pre-defined automated form. Today the SW facility has come in handy for the investors to reduce their taxes.
  • 34. 34
  • 35. 35
  • 36. 36 2.1 COMPANY PROFILE- IDFC have been an integral part of the country's development story since 1997, when our company was formed with the specific mandate to build the nation. Since 2005, we have built on our vision to be the 'one firm' that looks after the diverse needs of infrastructure development. Whether it is financial intermediation for infrastructure projects and services, adding value through innovative products to the infrastructure value chain or asset maintenance of existing infrastructure projects, we focus on supporting companies to get the best return on investments. Our growth has been driven by the substantial investment requirements of the infrastructure sector in India combined with the growth in the Indian economy over the last several years. Our ability to tap global as well as Indian financial resources makes us the acknowledged experts in infrastructure finance. This, coupled with a strong synergy between the company management and key shareholders, and a dedicated team of over 550 people makes us an organization that is committed to improving the face of India's infrastructure sector. At IDFC, our commitment to building India's infrastructure goes beyond business. We work closely with government entities and regulators to advise and assist them in formulating policy and regulatory frameworks that support private investment and public-private partnerships in infrastructure development. Mission “To be the leading knowledge-driven financial services company, creating enduring value, promoting infrastructure and nation building” Values Integrity We engage in honest and straight forward communication with all stakeholders and adhere to the highest ethical standards in everything we do. Our reputation is paramount. We will act in the best interests of our clients but without compromising our values and principles. Nurturing Humility
  • 37. 37 We are modest enough to know that we can be wrong and smart enough to learn from our mistakes. We treat everyone as an equal— no task is beneath us. Stewardship We act as custodians of our firm and accept the charge of passing on a better business than the one we inherited. Our actions will be guided by rules and ethical principles creating long term value with due care for society and environment. Partnership We emphasize a ONE FIRM culture. We foster mutual respect and proactively collaborate with each other, with clients, and with partners keeping just one thing in mind – to be the best at what we do. Initiative We encourage new ideas and independent action within a culture that fosters sharing knowledge and information, critical debate and constructive dissent. Responsibility We take complete ownership for our actions, emphasizing a results-oriented and problem- solving approach to business. We are personally accountable to the communities that we serve. Excellence We constantly strive to raise industry standards, be the employer of choice, and work to be the best rather than the biggest. Dedication to excellence results in superior execution and generates creative, imaginative and innovative outcomes. Board Committees Audit Committee : Mr. S. H. Khan Chairman Dr. Omkar Goswami Mr. Gautam Kaji Ms. Marianne Økland Ms. Snehlata Shrivastava Nomination & Remuneration Committee : Dr. Omkar Goswami Chairman Dr. Rajiv B. Lall Mr. Gautam Kaji Mr. Donald Peck Stakeholders' Relationship Committee : Mr. S. H. Khan Chairman Dr. Rajiv B. Lall Mr. Vikram Limaye
  • 38. 38 Corporate Social Responsibility Committee : Dr. Rajiv B. Lall Chairman Dr. Omkar Goswami Mr. Vikram Limaye Executive Committee : Dr. Rajiv B. Lall Chairman Mr. S. S. Kohli Mr. S. H. Khan Dr. Omkar Goswami Mr. Donald Peck Mr. Vikram Limaye Risk Committee : Mr. Gautam Kaji Chairman Mr. S. H. Khan Dr. Rajiv B. Lall Ms. Marianne Økland Mr. Vikram Limaye History & Timelines Our Group was born out of the need for a specialized financial intermediary for infrastructure. Incorporated on January 30, 1997 in Chennai, our company was set up on the recommendations of the 'Expert Group on Commercialisation of Infrastructure Projects' under the Chairmanship of Dr. Rakesh Mohan. Since then, we have been a leading catalyst for providing private sector infrastructure development in India. We focus on developing and leveraging our knowledge base in the infrastructure space to devise and provide appropriate financing solutions to our customers. Our strong capitalization reflects the crucial role that we play in infrastructure development. 1997  IDFC is founded on the recommendations of the 'Expert Group on Commercialization of Infrastructure Projects' under the Chairmanship of Dr. Rakesh Mohan. The group is conceptualized to channel private capital into commercially viable projects. 1999  Is notified as a Public Financial Institution under Section 4A of the Companies Act. 2000  Gets registered with SEBI as a merchant banker.
  • 39. 39 2001  Gets registered with SEBI as a debenture trustee.  Sets up Infrastructure Development Corporation (Karnataka) Limited (iDeCK) 2002  Sets up IDFC Private Equity as an investment manager for private equity funds.  Sets up Uttaranchal Infrastructure Development Company Limited (UDEC). 2003  Successfully raises $200 million for the India Development Fund, the first infrastructure- focused private equity fund. 2005  Becomes a public company after listing its shares on NSE and BSE. 2006  Successfully raises $450 million for its second infrastructure - focused private equity fund. 2007  Raises Rs. 2,100 crore through QIP.  Sets up IDFC Project Equity Company Limited as a specialized project finance entity focused on developing Indian infrastructure projects.  Establishes IDFC Projects to develop, implement, own and operate projects in the infrastructure space. 2008  Successfully raises $930 million through the India Infrastructure Fund to invest equity capital in infrastructure projects and $700 million in its third private equity fund.  Enters into asset management by acquiring the AMC business of Standard Chartered Bank in India.  Incorporates IDFC Capital (Singapore) Pte Limited, for an emerging markets private equity fund-of-funds business. 2009  The company's loan book crosses Rs. 20,000 crore with more than 200 infrastructure projects funded.
  • 40. 40  Establishes IDFC Foundation to focus on capacity building, policy advisory and sustainability initiatives.  Becomes part of Nifty 50. 2010  Raises additional capital of Rs. 26,542 million through a Qualified Institution Placement at Rs.168.25 per share and CCPS at a conversion price of Rs.176 per share. Government shareholding reduces to 18%.  Classified as an Infrastructure Finance Company (IFC).  Raises Rs. 480 crores in the first tranche of its Long Term Infrastructure Bonds. 2011  Certified as India's first "Green Data Centre".  IDFC opens an office in US.  Sets up IDFC Foundation as a Section 25 Company for all its developmental work.  IDFC & Natixis Global Asset Management enter into a strategic partnership.  Raise USD 310 million of ECB's.  Starts "Partners Program". 2012  IDFC Completes 15 years with over 1.5 million investors.  Launches "In Our Hands" an youth engagement initiative, to socialize the policy advocacy work being done under the aegis of the India Infrastructure Report (IIR).  Releases a handbook titled "EVOLVING PERSPECTIVES IN THE DEVELOPMENT OF INDIAN INFRASTRUCTURE", encompassing the policy work done in the last 15 years. IDFC business  Corporate Investment Banking  Project Finance  Financial Markets Group  Securities  Alternative Asset Management  Private Equity  Infrastructure  Real Estate  Public Market Asset Management  Mutual Fund  Foundation  Government Advisory Services  Policy Advocacy  Capacity Building Initiatives
  • 42. 42 Structure of the organization Company’s structure Structure of the company consists of following entities:-  Country head  State head distribution channel  Cluster heads of investments  Individual brokers  Back office operation  Sales team State head looks after all the operation in Karnataka region like Bellary, Mysore and other cities of Karnataka and coordinates with asset management companies i.e. AMCs and reports to country head, and cluster heads of investments are responsible for sales team and report to state head distribution channel and sales people who directly interact with investors for the investments report to cluster head investment. Sales team is supported by back office operations, like role of back office operation
  • 43. 43 2.2 SWOT analysis of the company and its competitor STRENGTH  BRANDNAME  KNOWN TO BE ETHICAL  PRESENCE IN ALL OVER INDIA  EXPERIENCED PEOPLE IN THE COMPANY  UNBIASNESS WEAKNESS  BRANCHASE OF COMPANY IS LESS ONLY 27 IN INDIA.  LACK OF MANPOWER  NOT HAVING NECESSARY INFRASTRUCTURE OPPORTUNITY  ZERO BASE  LACK OF PROPER SERVICES AVAILABLE IN THE MARKET  ABSENCE OF LEADER IN THE MARKET, IN DISTRIBUTION ( MUTUAL FUNDS)  HUGE POTENTIAL OF MUTUAL FUND MARKET  GROWTH OF MUTUAL FUND MARKET  INCREASE IN INCOME LEVEL OF PEOPLE THREATS  INDIVIDUAL BROKERS  ITS COMPETITOR’S PROMOTIOAL ACTIVITIES  ITS COMPETITOR’NEW BUSINESS PLANS  ATTRITION  LACK OF MANPOWER  NOT HAVING NECESSARY INFRASTRUCTURE
  • 44. 44 Average Assets under Management Assets under management (AUM) is a financial term denoting the market value of all the funds being managed by a financial institution (a mutual fund, hedge fund, private equity firm, venture capital firm, or brokerage house) on behalf of its clients, investors, partners, depositors, etc. The average Assets under management of all Mutual funds in India for the quarter Jul-13 to Sep-13 (in INR billion) is given below: Sr No Mutual Fund Name Average AUM % 1 HDFC Mutual Fund 1,034.42 12.70% 2 Reliance Mutual Fund 952.28 11.69% 3 ICICI Prudential Mutual Fund 853.03 10.48% 4 Birla Sun Life Mutual Fund 773.44 9.50% 5 UTI Mutual Fund 700.57 8.60% 6 SBI Mutual Fund 595.58 7.31% 7 Franklin Templeton Mutual Fund 448.12 5.50% 8 IDFC Mutual Fund 396.65 4.87% 9 Kotak Mahindra Mutual Fund 352.99 4.34% 10 DSP BlackRock Mutual Fund 304.86 3.74% 11 Tata Mutual Fund 179.66 2.21% 12 Deutsche Mutual Fund 170.59 2.10% 13 L&T Mutual Fund 150.79 1.85% 14 Sundaram Mutual Fund 139.47 1.71% 15 JPMorgan Mutual Fund 132.57 1.63% 16 Religare Invesco Mutual Fund 125.12 1.54% 17 Axis Mutual Fund 123.18 1.51% 18 LIC NOMURA Mutual Fund 79.76 0.98% 19 Canara Robeco Mutual Fund 76.16 0.94% 20 HSBC Mutual Fund 67.18 0.83% 21 JM Financial Mutual Fund 62.44 0.77% 22 Baroda Pioneer Mutual Fund 52.63 0.65% 23 IDBI Mutual Fund 47.71 0.59% 24 PRINCIPAL Mutual Fund 43.00 0.53% 25 Goldman Sachs Mutual Fund 41.49 0.51%
  • 45. 45 Sr No Mutual Fund Name Average AUM % 26 BNP Paribas Mutual Fund 35.38 0.43% 27 Morgan Stanley Mutual Fund 32.90 0.40% 28 Peerless Mutual Fund 28.35 0.35% 29 Taurus Mutual Fund 27.32 0.34% 30 Pramerica Mutual Fund 21.66 0.27% 31 Union KBC Mutual Fund 19.80 0.24% 32 Indiabulls Mutual Fund 16.06 0.20% 33 ING Mutual Fund 11.05 0.14% 34 PineBridge Mutual Fund 11.03 0.14% 35 BOI AXA Mutual Fund 10.82 0.13% 36 Mirae Asset Mutual Fund 5.08 0.06% 37 Motilal Oswal Mutual Fund 4.37 0.05% 38 Quantum Mutual Fund 3.15 0.04% 39 PPFAS Mutual Fund 2.67 0.03% 40 Escorts Mutual Fund 2.52 0.03% 41 Sahara Mutual Fund 2.33 0.03% 42 IIFL Mutual Fund 2.07 0.03% 43 Edelweiss Mutual Fund 1.94 0.02% 44 Daiwa Mutual Fund 0.51 0.01% 45 IL&FS Mutual Fund (IDF) - 0.00% 46 Shriram Mutual Fund - 0.00% 47 SREI Mutual Fund (IDF) - 0.00% Grand Total 8,142.68 100.0%
  • 46. 46 CHRONICLE ORDER OF COMPANIES GIVING MOST RETURN. Fund Category 5 Yr Return DSPML T.I.G.E.R. Fund Equity: Diversified 45.45 Tata Infrastructure Equity: Diversified 44.92 Magnum Contra Equity: Diversified 44.81 Kodak Opportunities Equity: Diversified 44.57 UTI Infrastructure Equity: Diversified 43.14 Reliance Growth Equity: Diversified 42.88 Magnum Multiplier Plus Equity: Diversified 42.76 Sundaram BNP Paribas Select Midcap Equity: Diversified 40.64
  • 47. 47 HDFC Top 200 Equity: Diversified 39.29 BoB Growth Equity: Diversified 38.57 Principal Child Benefit Hybrid: Equity-oriented 36.79 Magnum Balanced Hybrid: Equity-oriented 31.24 HDFC Prudence Hybrid: Equity-oriented 29.68 Birla Sun Life Income Debt: Medium-term 8.29 ABN AMRO Flexi Debt Plan Debt: Medium-term 7.78 ICICI Prudential Long-term Debt: Medium-term 7.55 Birla Dynamic Bond Retail Debt: Medium-term 7.51 Kotak Flexi Debt Debt: Medium-term 7.47 Sundaram BNP Paribas S... Equity: Diversified 43.35 ICICI Prudential Dynamic Equity: Diversified 43.26 DWS Investment Opportunity Equity: Diversified 43.07 DSPML Equity Fund Equity: Diversified 42.89 DSPML Top 100 Equity Reg Equity: Diversified 41.96 Kotak 30 Equity: Diversified 41.33 IDFC Premier Equity fund Equity-oriented 29.67 RANKING OF THE COMPANY By looking at this table we can rank various asset management companies on the basis of asset under management. They are as follows:
  • 48. 48 1) Reliance mutual fund 2) ICICI prudential mutual fund 3) UTI mutual fund 4) BIRLA sun life mutual fund 5) SBI mutual fund By looking at this rank we can say that in India people prefer to invest in reliance scheme and they are having great faith on Reliance Company. SCHEMES OF IDFC Scheme: IDFC Advantage Fund Type Open ended growth scheme Investment 70% in equity & 30% in Debt pattern Fund Objective Long term growth of capital Investment Min of one year horizon Scheme: IDFC Dividend Yield plus Type Open ended Growth Scheme Investment 100% in equity pattern Fund objective Capital growth & income Investment Min of one year horizon Scheme: IDFC Equity plan
  • 49. 49 Type Open ended equity linked savings schemes Investment 80% in equity & 20% in short term, money market & liquid instruments Fund objective Long term growth of capital along with income tax relief for investment Investment Minimum of 3years horizon Scheme: IDFC Index Fund Type Open ended index Linked Scheme Investment 100% in Securities pattern Fund Objective Generate Returns Investment Min of one Year Horizon Scheme: IDFC opportunities Fund Type Open ended growth scheme Investment 70-100% in equity, 30% in cash & money market pattern instruments Fund objective Long term growth of capital Investment Minimum of one year horizon Scheme: IDFC Mid Cap Fund Type Open ended growth scheme Investment 65-100% in equity related companies with market pattern capitalization of Rs.150 crores to Rs.1,500 crores 35% in equity related companies with a market capitalization. Fund Objective Long term growth of capital Investment Minimum of 1 year horizon
  • 50. 50 Scheme: IDFC Balance Fund Type Open ended balanced scheme Investment 50 to 75% in equity 25-50% in debt pattern Fund object To balance income requirements with long term growth of capital Investment Minimum of one year horizon Scheme: IDFC Asset Allocation Fund Type Open ended fund of funds Investment Aggressive plan 70-80% in equity 20-25% indebt pattern Moderate plan 40-60% in equity 40-60% indebt Conservative plan 20-25% in equity 75-80% indebt Fund objective Income & capital Application with diversification in equity & debt schemes in line with risk profile of investor Investment Minimum of one year horizon Scheme: IDFC Gilt Plus Type Open ended governments securities schemes Investment 100% in securities permitted by RBI pattern Fund objective To generate in income & capital appreciation through investments in government securities. Investment Least 6 months to 1 year horizon Scheme: IDFC Dynamic Bond Fund Type Open ended income scheme Investment 50-65% in Government securities, 25-35% in corporate pattern bonds, 0-25% in cash liquid instruments.
  • 51. 51 Fund objective To generate optimal returns with high liquidity Investment Minimum of one year horizon Scheme: IDFC Income Plus Type Open ended income scheme Investment 100% in debt & money market pattern Fund objective To generate consistent income Investment Minimum of 1 year horizon
  • 52. 52
  • 53. 53 3.1 Introduction to Study • To study various investment alternatives and in particular investors preference towards mutual funds. • To study the preference of investors in today’s scenario (less risk and more return). • To assess the risk of investors with reference to diversifiable risk & non- diversifiable risk. • To study market potentiality of mutual fund among investors. • To study whether the investors are considering IDFC a better option or not. 3.2 LITERATURE REVIEW Literature on mutual fund performance evaluation is enormous. A few research studies that haveinfluenced the preparation of this paper substantially are discussed in this section. Sharpe, William F. (1966) suggested a measure for the evaluation of portfolio performance. Drawing onresults obtained in the field of portfolio analysis, economist Jack L. Treynor has suggested a newpredictor of mutual fund performance, one that differs from virtually all those used previously byincorporating the volatility of a fund's return in a simple yet meaningful manner. Michael C. Jensen (1967) derived a risk-adjusted measure of portfolio performance (Jensen’s alpha) that estimates how much a manager’s forecasting ability contributes to fund’s returns. As indicated by Statman (2000), the e SDAR of a fund portfolio is the excess return of the portfolio overthe return of the benchmark index, where the portfolio is leveraged to have the benchmark index’sstandard deviation. NarayanRao,ET. al., evaluated performance of Indian mutual funds in a bearmarket through relative performance index, risk-return analysis, Treynor’s ratio, Sharpe’s ratio, Sharpe’smeasure , Jensen’s measure, and Fama’s measure. The study used 269 open-ended
  • 54. 54 schemes (out of totalschemes of 433) for computing relative performance index. Then after excluding funds whose returns areless than risk-free returns, 58 schemes are finally used for further analysis. The results of performancemeasures suggest that most of mutual fund schemes in the sample of 58 were able to satisfy investor’sexpectations by giving excess returns over expected returns based on both premiums for systematic riskand total risk. Bijan Roy, ET. al., conducted an empirical study on conditional performance of Indianmutual funds. This paper uses a technique called conditional performance evaluation on a sample ofeighty-nine Indian mutual fund schemes .This paper measures the performance of various mutual fundswith both unconditional and conditional form of CAPM, Treynor- Mazuy model and Henriksson-Mertonmodel. The effect of incorporating lagged information variables into the evaluation of mutual fundmanagers’ performance is examined in the Indian context. The results suggest that the use ofconditioning lagged information variables improves the performance of mutual fund schemes, causingalphas to shift towards right and reducing the number of negative timing coefficients. Mishra, et al., (2002) measured mutual fund performance using lower partial moment. Inthis paper, measures of evaluating portfolio performance based on lower partial moment are developed. Risk from the lower partial moment is measured by taking into account only those states in which returnis below a pre-specified “target rate” like risk-free rate. Kshama Fernandes (2003) evaluated index fundimplementation in India. In this paper, tracking error of index funds in India is measured .Theconsistency and level of tracking errors obtained by some well-run index fund suggests that it is possibleto attain low levels of tracking error under Indian conditions. At the same time, there do seem to beperiods where certain index funds appear to depart from the discipline of indexation. K. Pendaraki et al.studied construction of mutual fund portfolios, developed a multi-criteria methodology and applied it tothe Greek market of equity mutual funds. The methodology is based on the combination of discrete andcontinuous multi-criteria decision aid methods for mutual fund selection and composition. UTADISmulti-criteria decision aid method is employed in order to develop mutual fund’s performance models.
  • 55. 55 Goal programming model is employed to determine proportion of selected mutual funds in the finalportfolios. Zakri Y.Bello (2005) matched a sample of socially responsible stock mutual funds matchedto randomly select conventional funds of similar net assets to investigate differences in characteristicsof assets held, degree of portfolio diversification and variable effects of diversification on investmentperformance. The study found that socially responsible funds do not differ significantly fromconventional funds in terms of any of these attributes. Moreover, the effect of diversification oninvestment performance is not different between the two groups. Both groups underperformed theDomini 400 Social Index and S & P 500 during the study period. Michael C. Jensen (1967) derived a risk-adjusted measure of portfolio performance (Jensen’s alpha) that estimates how much a manager’s forecasting ability contributes to fund’s returns. As indicated by Statman (2000), the e SDAR of a fund portfolio is the excess return of the portfolio over the return of the benchmark index, where the portfolio is leveraged to have the benchmark index’s standard deviation. S.Narayan Rao,ET. al., evaluated performance of Indian mutual funds in a bear market through relative performance index, risk-return analysis, Treynor’s ratio, Sharpe’s ratio, Sharpe’s measure , Jensen’s measure, and Fama’s measure. The study used 269 open-ended schemes (out of total schemes of 433) for computing relative performance index. Then after excluding funds whose returns are less than risk-free returns, 58 schemes are finally used for further analysis. The results of performance measures suggest that most of mutual fund schemes in the sample of 58 were able to satisfy investor’s expectations by giving excess returns over expected returns based on both premiums for systematic risk and total risk.
  • 56. 56 3.3 Background Information How to Calculate the value of a Mutual Fund: The investor’s funds are deployed in a portfolio of securities by the fund manager. The value of these investments keeps changing as the market price of the securities change. Since investors are free to enter and exit the fund at any time, it is essential that the market value of their investments is used to determine the price at which such entry and exit will take place. The net assets represent the market value of assets, which belong to the investors, on a given date. Net Asset Value or NAV of a mutual fund is the value of one unit of investment in the fund, in net asset terms. NAV= Net Asset of the scheme / Number of Units Outstanding Where Net Assets are calculated as:- (Market value of investment + current assets and other assets + Accrued income – current liabilities and other liabilities – less accrued expenses) / No. of Units Outstanding as at the NAV date. NAV of all schemes must be calculated and published at least weekly for closed – end schemes and daily for open- end schemes. The major factors affecting the NAV of a fund are :  Sale and purchase of securities  Sale and repurchase of units  Valuation of assets  Accrual of income and expenses
  • 57. 57 . NAV-: Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date. How is NAV calculated? The value of all the securities in the portfolio in calculated daily. From this, all expenses are deducted and the resultant value divided by the number of units in the fund is the fund’s NAV. Expense Ratio AMCs charge an annual fee, or expense ratio that covers administrative expenses, salaries, advertising expenses, brokerage fee, etc. A 1.5% expense ratio means the AMC charges Rs1.50 for every Rs100 in assets under management. A fund's expense ratio is typically to the size of the funds under management and not to the returns earned. Normally, the costs of running a fund grow slower than the growth in the fund size - so, the more assets in the fund, the lower should be its expense. Entry load and an exit load Some Asset Management Companies (AMCs) have sales charges, or loads, on their funds (entry load and/or exit load) to compensate for distribution costs. Funds that can be purchased without a sales charge are called no-load funds. Entry load is charged at the time an investor purchases the units of a scheme. The entry load percentage is added to the prevailing NAV at the time of allotment of units. Exit load is charged at the time of redeeming (or transferring an investment between schemes). The exit load percentage is deducted from the NAV at the time of redemption (or transfer between schemes). This amount goes to the Asset Management Company and not into the pool of funds of the scheme.
  • 58. 58 How does "entry load" affect the investment returns? A 2.25% entry load sounds small. But it still bites a chunk off the returns over a long period of time. For instance, Rs 1 lakh invested directly in the no-load option of an equity fund that grows at a rate of 15% over a period of 20 years yields around Rs 16.36 lakh against Rs 15.99 lakh that a load fund would return—a difference of Rs 36,820. This is because even a small sum of 2.25% gets compounded over the years. The pinch remains the same even in a systematic investment plan (SIP). As SIPs entail investments on a regular basis, say every month, you end up paying entry loads on all your investment installments. Assume you had invested Rs 5,000 in Reliance Vision Fund (RVF) on January 1, 2003 through a monthly SIP. If you had withdrawn your entire investment after five years, on December 31, 2007, you would have got back Rs 11.52 lakh in the no-load option and Rs 11.25 lakh in a load option, a difference of a cool Rs 25,914. Are investments in mutual fund units risk-free or safe? This depends on the underlying instrument that a mutual fund invests in, based on its investment objectives. Mutual funds that invest in stock market-related instruments cannot be termed “risk-free or safe” as investment in shares are inherently risky by nature, whereas funds that invest in fixed- income instruments are relatively safe and those that invest only in government securities are the safest. Why Mutual Funds are an investment option? Firstly, we are not all investment professionals. We go to a doctor when we need medical advice or a lawyer for legal guidance, similarly mutual funds are investment vehicles managed by professional fund managers. And unless you rate highly on the Investment IQ Quiz, we recommend you use this option for investing. Mutual funds are like professional money managers, however a key factor in their favor is that they are more regulated and hence offer investors the ability to analyze and evaluate their track record.
  • 59. 59 Secondly, investing is becoming more complex. There was a time when things were quite simple - the market went up with the arrival of the first monsoon showers and every year around Diwali. Since India started integrating with the world (with the start of the liberalization process), complex factors such as an increase in short-term US interest rates, the collapse of the Brazilian currency or default on its debt by the Russian government, have started having an impact on the Indian stock market. Although it is possible for an individual investor to understand Indian companies (and investing) in such an environment, the process can become fairly time consuming. Mutual funds (whose fund managers are paid to understand these issues and whose asset management company invests in research) provide an option of investing without getting lost in the complexities. Lastly, and most importantly, mutual funds provide risk diversification: Diversification of a portfolio is amongst the primary tenets of portfolio structuring (see The Need to Diversify). And a necessary one to reduce the level of risk assumed by the portfolio holder. Most of us are not necessarily well qualified to apply the theories of portfolio structuring to our holdings and hence would be better off leaving that to a professional. Mutual funds represent one such option. How to select a mutual fund scheme? What's strategy got to do with selecting a mutual fund? Shouldn't you just go and invest in the best performing fund? The answer is no. Mutual fund investing requires as much strategic input as any other investment option. But the advantage is that the strategy here is a natural extension of your asset allocation plan (use our Asset Allocator to understand what your optimum asset allocation plan should be, based on your personal risk profile). The following processes are important to select a mutual fund scheme.  Identify funds whose investment objectives match your asset allocation needs Just as you would buy a computer that fits your needs and budget, you should choose a mutual fund that meets your risk tolerance (need) and your risk capacity (budget) levels (i.e. has similar investment objectives as your own). Typical investment objectives of mutual funds include fixed income or equity, general equity or sector-focused, high risk or low risk, blue-chips or turnarounds, long-term or short-term liquidity focus. The investment objectives match yours are  Evaluate past performance, look for consistency. Although past performance is no guarantee of future performance, it is a useful way of assessing how well or badly a fund has performed in comparison to its stated objectives and peer group. A good way to do this would be to identify the
  • 60. 60 five best performing funds (within your selected investment objectives) over various periods, say 3 months, 6 months, one year, two years and three years. Shortlist funds that appear in the top 5 in each of these time horizons as they would have thus demonstrated their ability to be not only good but also, consistent performers. . Are investments in mutual fund units risk-free or safe? This depends on the instrument mutual fund invests in, based on its investment objectives. Mutual funds that invest in stock market-related instruments cannot be termed “risk-free or safe” as investment in shares are inherently risky by nature, whereas funds that invest in fixed-income instruments are relatively safe and those that invest only in government securities are the safest. Role of a Fund Manager: Fund managers are responsible for implementing a consistent investment strategy that reflects the goals and objectives of the fund. Normally, fund managers monitor market and economic trends and analyze securities in order to make informed investment decisions. How are mutual funds regulated? All Asset Management Companies (AMCs) are regulated by SEBI and or the RBI (in case the AMC is promoted by a bank). In addition, every mutual fund has a board of directors that represents the unit holders’ interests in the mutual fund. 3.4 STATEMENT OF PROBLEM Mutual Funds are Financial intermediaries concern with the mobilizing savings of surplus income & channelisation of these savings in those avenues where there is demand of funds. The main purpose behind this study of investment preferences in Mutual Funds is to see that how the investors are employing their resources in a manner to afford, combine benefits to low risks, steady or consistent returns, high liquidity & capital appreciation through
  • 61. 61 diversification & Expert Management. Therefore the activities of mutual funds have both short & long term impact on the savings & capital market & the national economy. Mutual Funds, thus, assist the process of financial depending & intermediation. 3.5 Objectives of the Study • To study various investment alternatives and in particular investors preference towards mutual funds. • To study the preference of investors in today’s scenario (less risk and more return). • To assess the risk of investors with reference to diversifiable risk & non- diversifiable risk. • To study market potentiality of mutual fund among investors. • To study whether the investors are considering IDFC a better option or not.
  • 62. 62 Chapter: - 4 Research Methodology 4.1 Research Design Research Methodology is a systematic method of discovering new facts or verifying old facts, their sequence, inter-relationship, casual explanation and the natural laws which governs them. In it we study the various steps that are generally adopted by a researcher in the studying his research problem along with the logic behind them. Different stages involved in research consists of enacting the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusion either in the form of solution towards the concerned problem or in generalization for some theoretical formulation. Type of Sample Design: Judgment Sampling 4.2 Data Collection The Data is divided in two parts: a) Primary Data. b) Secondary Data. Primary Data is the data, which is collected directly by direct personal interview, Interview, indirect oral investigation, Information received through local agents, Drafting a schedule, drafting a questionnaire. Secondary Data is the data, which is collected from: Various books. Magazine and material. Internet Fact sheets of various MFs The data which is stored in the organization and provide by the FINANCE people are also secondary data. The various information is taken out regarding that subject as well other
  • 63. 63 subject from various sources and stored. The last years data stored can also be secondary data. This data is kept for the internal use of the organization. The FINANCE manual is for the internal use of the organization they are secondary data which help people to gain information. In this report the data plays a very crucial role. For this report the data was provided to me by FINANCE department and other departmental head in the organization. 4.3 Sampling Method The sampling method so as to obtain a representative sample is the Non- Probability Sampling methods. Under non-probability sampling, we selected the respondents to the survey on the basis of Judgment sampling with Convenience taken into account. 4.4 Sample Size: 200 4.5 Data collection instument Research instrument The research instrument used for this survey is a structured questionnaire. The questionnaire contains both open-ended and close ended questions. The questionnaire provides a provision with respect to rating scales. 4.6 Statistical Tools Used We have chosen ANOVA and CHI-SQURE as Statistical Tools for Testing Hypothesis.
  • 64. 64 CHAPTER :- 5 Data Analysis and Interpritation. TABLE -1: AGE WISE CLASSIFICATION OF RESPONDENTS AGE NO. OF RESPONDENTS PERCENTAGE BELOW 20 NIL NIL 20-29 69 34.5 30-39 13 6.5 40-49 34 17 50-59 35 17.5 ABOVE 60 49 24.5 TOTAL 200 100 A G E W I S E N O O F R E S P O N D E N T S 4 9 2 0 - 2 9 6 9 3 0 - 3 9 4 0 - 4 9 3 5 1 3 5 0 - 5 9 A B O V E 6 0 3 4 Interpretation: According to the survey the respondents were of different age groups. There are no respondents of age below 20 are in no number. The investors of age 20-29 are 69 in number with 34.5%. The investors of age 30-39 are 13 with 6.5%, 40-49 there are 34
  • 65. 65 investors with 17% and in between 50-59 there are 35 investors with 17.5% and above 60 there are 49 investors with 24.5%. TABLE-2: GENDER OF THE RESPONDENTS GENDER NO. OF RESPONDENTS PERCENTAGE MALE 158 79 FEMALE 42 21 TOTAL 200 100 GENDER OF THE RESPONDENTS / 180 OFRESPONDENTS 160 PERCENTAGE 140 120 NO. OF 100 RESPONDENTS 80 PERCENTAGE 60 40 NO. 20 0 MALE FEMALE GENDER Interpretation:In the survey number of male respondents are more in number that is about 79% & the next position has been occupied by female respondents they are about 21% of the sample so, mainly men are preferring to go for investments.
  • 66. 66 TABLE-3: OCCUPATION OF THE RESPONDENTS OCCUPATION NO. OF RESPONDENTS PERCENTAGE HOUSE HOLD 9 4.5 BUSINESS 46 23 SERVICE 84 42 PROFESSIONAL 30 15 RETIRED 15 7.5 STUDENT 16 8 TOTAL 200 100 OCCUPATION OF THE RESPONDENTS 16 9 HOUSE HOLD 15 46 BUSINESS 30 SERVICE PROFESSIONAL RETIRED 84 STUDENT Interpretation: According to the survey the respondents were of different occupations. Most of respondents are from service sector is about 42% of the sample. Respondents from the
  • 67. 67 business are occupying 23%, then comes professional with 15%, students occupy 8%, retired people occupy 7.5%, with house hold occupying 4.5%.
  • 68. 68 TABLE-4: ANNUAL INCOME OF THE RESPONDENTS ANNUAL NO. OF RESPONDENTS PERCENTAGE < 1,00,000 53 26.5 1-2 LAKHS 84 42 2-3 LAKHS 48 24 ABOVE 3 LAKHS 15 7.5 TOTAL 200 100 OFRESPONDENTS/ PERCENTAGE NO. ANNUAL INCOME OF THE RESPONDENTS 90 80 70 NO. OF60 RESPONDENTS50 40 PERCENTAGE 30 20 10 0 0 S S HS 00 H H LAK LAK K 1,0 0, A < 2 3 3L - - VE1 2 AB O ANNUAL INCOME
  • 69. 69 Interpretation: According to the survey, the respondents of the income group of less than 1 lack are of 26.5%. They were about 42% of the respondents are of the income group between 1-2 lack. 24% of the respondents were of the income group 2-3 lacks. 7.5% respondents were of the income group more than 3 lacks. TABLE-5: DO THE RESPONDENTS INVEST THEIR MONEY INVESTMENTS NO.OF RESPONDENTS PERCENTAGE YES 200 100 NO NIL NIL TOTAL 200 100 RESPONDENTS INVESTING THEIR MONEY OFRESPONDENTS/ PERCENTAGE NO. 250 200 150 NO. OF RESPONDENTS 100 PERCENTAGE 50 0 YES NO INVESTMENTS
  • 70. 70 Interpretation: All the respondents considered in the sample, do invest their savings. Out of the total sample the respondents going for investments are total in numbers with all the two hundred respondents considered in sample are going for complete investments with 100%. TABLE-6: What percent of your income do you keep aside for different investment options? OPTIONS NO. OF RESPONDENTS PERCENTAGE 0% to 5% 24 12 5% to 10% 38 19 10% to 15% 60 30 15% to 20% 34 17 20% to 30% 24 12 Above 30% 20 10 TOTAL 200 100 0 10 20 30 40 50 60 70 0% to 5% 5% to 10% 10% to 15% 15% to 20% 20% to 30% Above 30% income keep aside NO. OF RESPONDENTS
  • 71. 71 TABLE-7 Important factors to you consider before choosing an investment? OPTIONS NO. OF RESPONDENTS PERCENTAGE Safety of investment principle 70 35 Opportunity for growth 82 41 Liquidity 48 24 TOTAL 200 100 Interpritation:- from the table we can see that 41% of respondent are consider the fector Opportunity for growth before choosing an investment 0 10 20 30 40 50 60 70 80 90 Safety of investment principle Opportunity for growth Liquidity Important factors NO. OF RESPONDENTS
  • 72. 72 TABLE-8: INVESTORS PREFERENCE FOR VARIOUS INVESTMENTS OBJECIVES OPTIONS RANK SCORE SECURITY 1 55 YEILD 2 47 MATURITY 4 35 TAX BENEFITS 5 22 LIQUIDITY 3 40 INVESTMENT OBJECTIVE OF THE INVESTOR SECURITY LIQUIDITY 7% 20% YEILD SECURITY 13% YEILD MATURITY MATURITY TAX BENEFITS LIQUIDITY TAX BENEFITS 27% 33% Interpretation: Different types of investors look forward to different investment objectives. Most of the investors ranked 1st to security, 2nd rank to yield, 3rd rank has been given to liquidity, 4th & 5th ranks for maturity & tax benefits.
  • 73. 73 INVESTOR PREFERENCE FOR VARIOUS INVESTMENTS OBJECTIVES ATTRIBUTES I II III IV V WEIGHTED RANK AVERAGE SECURITY 88 64 32 9 7 55 I YEILD 63 44 46 24 23 47 II MATURITY 19 24 45 85 27 35 IV TAX BENEFIT 8 25 5 42 120 22 V LIQUIDITY 22 43 72 40 23 40 III MODEL CALCULATION: = 88*5 + 64*4 + 32*3 + 9*2 + 7*1 / 1 + 2 + 3 + 4 + 5 = 440 + 256 + 96 +18 + 7 / 15 = 817/15 = 55.
  • 74. 74 TABLE-9: AWARENESS OF MUTUAL FUNDS OPTIONS NO. OF RESPONDENTS PERCENTAGE YES 200 100 NO 00 00 TOTAL 200 100 Interpretation: According to the survey, most investors are aware of mutual funds. It can be observed from the above table that 100% of respondents are aware of Mutual TABLE-10: AWARENESS OF MUTUAL FUNDS IS THROUGH 0 50 100 150 200 250 YES NO AWARENESS OF MUTUAL FUNDS NO. OF RESPONDENTS
  • 75. 75 OPTION NO. OF RESPONDENTS PERCENTAGE ADVERTISEMENT 52 26 FRIENDS 37 19 FAMILY MEMBERS 19 10 FINANCIAL ADVISORS 66 32 RELATIVES 26 13 TOTAL 200 100 INFLUENCE OF INVESTMENT DECISION IS THROUGH ADVERTISEME RELATIVES NT ADVERTISEMENT13% 26% FRIENDS FINANCIAL FAMILY MEMBERS ADVISORS FRIENDS FINANCIAL ADVISORS 32% FAMILY 19% RELATIVES MEMBERS 10% Interpretation: According to the survey, the respondents are more aware of mutual funds through Financial Advisors who occupy 32%, followed by Advertisements 26%, Friends 19%, Relatives 13% & Family Members 10%
  • 76. 76 TABLE 11: MUTUAL FUND IS A GOOD INVESTMENT OPTION. OPTIONS NO. OF RESPONDENTS PERCENTAGE YES 159 79.5 NO 41 20.5 TOTAL 200 100 MUTUAL FUND IS A GOOD INVESTMENT OPTION / 180 OFRESPONDENTS 160 PERCENTAGE 140 120 NO. OF 100 RESPONDENTS 80 PERCENTAGE 60 40 NO. 20 0 YES NO OPTIONS Interpretation: Many of the individuals are of the view that mutual fund is a good investment option. Of the total sample survey around 79.5% of the respondents feel that mutual fund is a good investment option & 20.5% of the respondents feel that it is not a good investment option.
  • 77. 77 TABLE 12: What is your return expectation on your investment in mutual fund? OPTION NO. OF RESPONDENTS PERCENTAGE Up to 8% 52 26 Betwee n 8% to 18% 80 40 Above 18% 68 34 TOTAL 200 100 In 0 10 20 30 40 50 60 70 80 90 Up to 8% Between 8% to 18% Above 18% return expectation NO. OF RESPONDENTS
  • 78. 78 Interpretation:- more no of respondent expecting 8% to 18% of return on their investment TABLE 13 How long are you planning to stay invest in mutual fund? OPTION NO. OF RESPONDENTS PERCENTAGE < 1 year 46 23 1 to 3 year 75 37.5 3 to 5 year 50 25 > 5 year 29 15.5 TOTAL 200 100 Interpritation:- from the table 75 respondent are planning to stay invest in mutual fund for the period of 1-3 year.and only 29 75 respondent are planning to stay invest in mutual fund for the period of >5 year. TABLE-14: RESPONDENTS PREFFERING IDFC AS A DISTRIBUTOR OF MUTUAL FUNDS 0 10 20 30 40 50 60 70 80 < 1 year 1 to 3 year 3 to 5 year > 5 year NO. OF RESPONDENTS NO. OF RESPONDENTS
  • 79. 79 OPTION NO. OF RESPONDENTS PERCENTAGE IDFC 138 69 OTHERS 62 31 TOTAL 200 100 IDFC AS A DISTRIBUTOR OF MUTUAL FUNDS / 160 OF RESPONDENTS PERCENTAGE 140 120 NO. OF 100 RESPONDENTS 80 PERCENTAGE 60 40 20 N O . 0 IDFC OTHERS OPTIONS Interpretation: According to the survey, 69% of the respondents are aware of idfc as a distributor of mutual funds & these 69% of the investors would like to invest in idfc mutual fund option. The rest 31% of the respondents would like to prefer others. TABLE-15: TYPE OF FUNDS RESPONDENTS PREFER TO
  • 80. 80 OPTION NO.OF RESPONDENTS PERCENTAGE DEBT FUND 42 30.5 EQUITY FUND 78 56.5 HYBRID FUND 18 13 TOTAL 138 100 TYPE OF FUNDS RESPONDENTS PREFER TO / 90 OF RESPONDENTS 80 PERCENTAGE 70 60 NO. OF 50 RESPONDENTS 40 PERCENTAGE 30 20 N O . 10 0 DEBT FUND EQUITY FUND HYBRID FUND OPTIONS Interpretation: From the survey conducted the respondents prefer Equity funds more in number they occupy 56.5%, followed by Debt funds with 30.5% and a very few respondents prefer to hybrid funds with 13%. TABLE-16: TYPE OF SCHEME PREFERED BY RESPONDENT IN DEBT FUNDS
  • 81. 81 OPTION NO. OF RESPONDENTS PERCENTAGE LIQUID FUND 2 5 FLOATE RATE 4 10 GILT FUND 5 12 DYNAMIC BOND FUND 15 35 INCOME PLUS 7 17 BOND INDEX FUND 9 21 TOTAL 42 100 TYPE OF SCHEME PREFERED BY RESPONDENT IN DEBT FUNDS 5% LIQUID FUND 21% 10% FLOATE RATE 12% GILT FUND DYNAMIC BOND FUND 17% INCOME PLUS 35% BOND INDEX FUND Interpretation: Based on the survey, it is found that the respondents prefer dynamic bond fund which occupies 35%, then follows is the bond Index Fund with 21%, thirdly Income Plus is seen with more percentage with 17, followed by Gilt Fund, Floating Rate Fund, & Liquid Fund with 12, 10, 5.
  • 82. 82 TABLE-17: TYPE OF SCHEME PREFERED IN EQUITY FUNDS OPTION NO. OF RESPONDENTS PERCENTAGE ADVANTAGE FUND 26 33 MID CAP 6 8 EQUITY PLAN 4 5 MNC FUND 5 6 INDEX FUND 3 4 DIVIDEND YEILD PLUS 32 41 INDIA OPPURTUNITIES FUND 2 3 TOTAL 78 100 TYPE OF SCHEME PREFFERED IN EQUITY FUNDS ADVANTAGE FUND MID CAP 3% EQUITY PLAN 33% MNC FUND 41% INDEX FUND 4% 6% 5% 8% DIVIDEND YEILD PLUS INDIA OPPURTUNITIES FUND Interpretation:
  • 83. 83 Based on the survey, that out of 78 sample size, most of the investors choose dividend yield plus which occupies 41%, followed by Advantage Fund with 33%, then MNC fund with 6%, mid cap 8%, Equity plan 5%, India opportunities fund 3%. TABLE-18: TYPE OF SCHEME PREFERRED IN HYBRID FUND OPTION NO. OF RESPONDENTS PERCENTAGE MIP I 3 16.7 MIP II 4 22.2 BALANCED FUND 11 61.1 TOTAL 18 100 TYPE OF SCHEME PREFERRED IN HYBRID FUND / OF RESPONDENTS 70 PERCENTAGE 60 50 NO. OF 40 RESPONDENTS 30 PERCENTAGE 20 10 N O . 0 MIP I MIP II BALANCED FUND OPTIONS Interpretation: Based on the survey, it is found that the respondents prefer to choose balanced fund with 61.1% of sample, followed by MIP I & MIP II schemes in the Hybrid Fund Type with 22.2% & 16.7%.
  • 84. 84 TABLE 19: RESPONDENTS PREFFERING OTHER BRANDS OF MUTUAL FUNDS OPTION NO.OF RESPONDENTS PERCENTAGE HDFC 12 19 FRANKLIN TEMPLETON 18 29 HSBC 6 10 KOTAK MAHINDRA 11 18 DSP MERYLLICH 5 8 UTI 10 16 TOTAL 62 100 RESPONDENTS PREFFERING OTHER BRANDS OF MUTUAL FUNDS HDFC FRANKLIN 16% 19% TEMPELTON 8% HSBC KOTAK MAHINDRA 18% 29% 10% DSP MERYILCH UTI Interpretation: Based on the survey, it is found that the respondents would definitely prefer other
  • 85. 85 brands of Mutual Funds with Franklin Templeton in the lead with 29%, then HDFC with 18%, UTI in the fourth place with 16%, Kotak Mahindra with 18%, HSBC with 10% & DSP merllich with 8%.
  • 86. 86 . TABLE 20: RESPONDENT RECOMMENDING IDFC MUTUAL FUND AS A BETTER INVESTMENT OPPURTUNITY OPTIONS NO. OF RESPONDENTS PERCENTAGE YES 156 78 NO 44 22 TOTAL 200 100 IS IDFC A BETTER INVESTMENT / 180 OFRESPONDENTS 160 PERCENTAGE 140 120 NO. OF 100 RESPONDENTS 80 PERCENTAGE 60 40 NO. 20 0 YES NO OPTIONS Interpretation:
  • 87. 87 According to the survey the respondents recommending IDFC Mutual Fund as a better investment opportunity is of 78%. & the respondents who do not recommend idfc as a better investment opportunity are 22%. TABLE 21: Tick & Rate IDFC mutual fund as compare to other mutual fund company. (1= very good & 5= very bad) 1 2 3 4 5 OPTIONS NO. OF RESPONDENTS PERCENTAGE 1 120 60 2 32 16 3 24 12 4 16 8 5 8 4 TOTAL 200 100 Interpritation:- higher no. of responders are very satisfied and least no of respondent are says its very bad. OPTIONS 0 20 40 60 80 100 120 1 2 3 4 5 OPTIONS NO. OF RESPONDENTS
  • 88. 88 TABLE 22: Express your Experience to invest in mutual fund. _____________________________________________________________ ______________________ _____________________________________________________________ ______________________
  • 89. 89 CHAPTER:-6 HYPOTESIS TESTING H0: There is no Significant Relationship between Income of Respondent and Preferred Scheme of Mutual fund. (Null Hypothesis) H1: There is Significant Relationship between Income of Respondent and Preferred Scheme of Mutual fund. (Alternate hypothesis) Case Processing Summary Cases Valid Missing Total N Percent N Percent N Percent ANNUAL INCOME * TYPE OF FUNDS RESPONDENTS PREFER TO 200 100.0% 0 .0% 200 100.0% ANNUAL INCOME * TYPE OF FUNDS RESPONDENTS PREFER TO Crosstabulation Count TYPE OF FUNDS RESPONDENTS PREFER TO TotalDEBT FUND EQUITY FUND HYBRID FUND ANNUAL INCOME < 1,00,000 7 12 0 19 1-2 LAKHS 6 23 13 42 2-3 LAKHS 21 33 13 67 ABOVE 3 LAKHS 26 33 13 72 Total 60 101 39 200 Chi-Square Tests
  • 90. 90 Value df Asymp. Sig. (2- sided) Pearson Chi-Square 12.382a 6 .054 Likelihood Ratio 16.382 6 .012 Linear-by-Linear Association .507 1 .476 N of Valid Cases 200 a. 1 cells (8.3%) have expected count less than 5. The minimum expected count is 3.71. Interpritation:- Ther is a very strong Evidence of relationship between Income of Investor and Scheme Preferred by them. Tabulated value is 0.05 and calculated value is 0.054(>.05) So don’t Reject H0( null hypothisis) ANOVA ANNUAL INCOME Sum of Squares Df Mean Square F Sig. Between Groups 2.221 2 1.110 1.167 .314 Within Groups 187.459 197 .952 Total 189.680 199 Interpritation:- Ther is a very strong Evidence of relationship between Income of Investor and Scheme Preferred by them. Tabulated value is 0.314 and calculated value is 1.167(>.0314) So don’t Reject H0( null hypothesis)
  • 91. 91 CHAPTER :-7 SUGGESTION  Company should show its presence in the market by its strong marketing strategies which are as follows 1. Bill boards and hoardings 2. Ads in print and electronic Media 3. Corporate tie-ups 4. Road shows 5. Pamphlets 6. Contests  Company should provide consistent customer service by time 1. submission of application forms in prescribed time 2. proper follow-up 3. transparency in the process 4. Providing every possible information about the product 5. Company can also work service recovery process if any of this kind of problem occurs Failure in Services delivery In general, services delivery system failures consist of three types of failures 1. Unavailable service 2. Unreasonable slow services
  • 92. 92 3. Other core service failures Service recovery is concerned with the process of addressing the failure of the services here question comes how that can be done or how Mahindra finance has done , for that there should be complain from investors side or it should reflect in the research done by company Bell and Zemke has proposed five ingredients for recovery which company can use for its recovery.  Apology - a first person apology rather than a corporate apology  Urgent reinstatement – speed of action coupled with a gallant attempt to put things right even if it is not possible to correct the situation  Empathy- a sincere expression of feeling for the customer’s plight  Symbolic atonement- a form of compensation that might include not charging for the service or offering future service free or discounted  Follow up- an after recovery call to ascertain that the consumer is satisfied with the recovery process A successful recovery include following four key elements 1. acknowledgement of the problem 2. explanation of the problem 3. apology where appropriate 4. compensation as required
  • 93. 93 CHAPTER :- 8 LIMITATION OF STUDY LIMITATIONS OF THE STUDY 1) Sometime stock market are not performing well so people are not interested to invest 2) Sometime because of negative sentiments in the market people are not ready to invest for e.g. the subprime crisis in US affected the stock market in India. 3) Many people have good knowledge of the equity market by themselves so they don’t want to invest in mutual fund 4) Many are looking for the short term benefits for which sometime mutual fund is not the best option 5) Many people who want to have high risk high return are not suitable for mutual fund 6) Some people are not ready to invest in mutual fund because of the lack of knowledge about the product 7) Most of the time people are busy in their schedule and so they don’t want to listen to anything on the telephone calls. 8) In small towns people are not willing to purchase mutual fund because of lack of knowledge they rather prefer to invest in real state 9) It is also difficult to measure economic factor associated with time constrain 10) Time constrain CHAPTER :- 9 FINDINGS Final findings and observations From the comparison of various mutual fund schemes, it is understand that the equity diversified scheme is providing a good return for a longer period of investment. But the return is wholly depending on the market. So the risk is higher compare to any other schemes. On the other hand the Gilt fund is investing in Government securities, treasury bills, bonds, debentures etc. But in this case the return is low. But risk
  • 94. 94 is very low comparable to an equity diversified scheme. In the ELSS scheme, there is a locking period of 3 years. Still most of the tax schemes give a good return through dividends also. But the MIP scheme is not giving a good return. As this scheme is also investing in bonds and debentures, it gives a continuous return to the investors. CHAPTER :- 10 CONCLUSION From the comparison of various mutual fund schemes, it is understand that the equity diversified scheme is providing a good return for a longer period of investment. But the return is wholly depending on the market. So the risk is higher compare to any other schemes. On the other hand the Gilt fund is investing in Government securities, treasury bills, bonds, debentures etc. But in this case the return is low. But risk is very low comparable to an equity diversified scheme. In the ELSS scheme, there is a locking period of 3 years. Still most of the tax schemes give a good return through dividends also. But the MIP scheme is not giving a good return. As this scheme is also investing in bonds and debentures, it gives a continuous return to the investors. So if one has to decide what factors to be considered while giving services, following points to be considered Ease of availability, value added services Reduction of risk , transaction cost Variety of funds and Cost involved in the fund because a company should know its core business ,strengths and weakness here company’s core business is providing value based services to their customer ,which can be the inferred from the research , marketing and promotional activities are need of the hour to make full-fledged market presence and target market specific marketing is required for giving service effectively for example people in software company do not have enough time to go for research decide upon investment option so company can provide information and solution online with personalize service secondly if target customer is required some text in local language we should provide the same. Company has good chances to be no.1 in mutual fund distribution house provided what services is been provided by the company , I think company in services sector cannot afford to have unhappy customer because
  • 95. 95 success of services sector company depends on word of mouth publicity of the people and one happy customer will bring ten more customer and one unhappy customer will stop ten prospective customer , in case if there has been the cases of service failure, company should take appropriate action while fixing the problem . CHAPTER :- 11 BIBLIOGRAPHY BIBILOGRAPHY  Marketing management by “ Philip Kotler ”  Sales Management By Still, Cundiff and Govoni  Business Policy And Strategic Management by Azhar kazmi  Research Methodology by Pannerselvam  Study material at IDFC finance  AMFI Booklet  Broachers of various fund houses  Fund fact sheet of various fund houses  CRISIL report WEBILOGRAPHY  www.mutualfundsIndia.com  www.moneycontrol.com  www.mahindrafinance.com  www.amfiindia.com  www.valueresearch.com  www.IDFC.com  www.bseindia.com  www.crisil.com