TABLE OF CONTENTS

List of tables

List of charts

ABSTRACT

CHAPTER I INTRODUCTION

CHAPTER II REVIEW OF LITERATURE

CHAPTER III COMPANY PROFILE

CHAPTER IV SCOPE OF STUDY

CHAPTER V OBJECTIVE OF STUDY

CHAPTER VI RESEARCH METHODOLOGY

Research design
Sample design
Sample size
Sample technique
Data collection
Statistical tools

CHAPTER VII LIMITATION OF STUDY

CHAPTER VIII DATA ANALYSIS AND INTERPRETATION

CHAPTER IX FINDINGS

CHAPTER X SUGGESTION

CHAPTER XI CONCLUSION

APPENDIX Questionnaire

BIBLIOGRAPHY
 LIST OF TABLE

1. Table showing gender composition of the respondents

2. Table showing age composition of the respondents
3. Table showing educational qualification of the respondents
4. Table showing occupational composition of the respondents
5. Table showing annual income level of the respondents
6. Table showing response regarding regular investor
7. Table showing response regarding type of investment
8. Table showing source of investment advice
9. Table showing factors influencing to invest in mutual funds
10. Table showing tolerance level in mutual funds
11. Table showing respondents suitable products to invest in mutual funds
12. Table showing benefits expect by investing in mutual funds
13. Table showing rule adopt to investing in mutual funds
14. Table showing reason for withdraw of from investing in mutual funds
15. Table showing respondents preference of company
16. Table showing ranking of following mutual funds
17. Table showing reason regarding interest gives investing in sip
18. Table showing reasons for investing in sip
19. Table showing preferential features excepted in investing in mutual funds
20. Table showing services expected from a fund house.
21. Table showing relationship between term of investment and level of the
income
22. Table showing weighted average preferential features excepted in investing in
mutual funds
23. Table showing relationship between regular investor and irregular
investor with the preferential features expected while investing in mutual
funds.
24. Table showing relationship between regular investor and irregular
investor with the preferential features expected while investing in mutual
funds.
25. Table showing relationship between gender and type of investments in
funds.
LIST OF CHART

1. Chart showing gender composition of the respondents

2. Chart showing age composition of the respondents
3. Chart showing educational qualification of the respondents
4. Chart showing occupational composition of the respondents
5. Chart showing annual income level of the respondents
6. Chart showing response regarding regular investor
7. Chart showing response regarding type of investment
8. Chart showing source of investment advice
9. Chart showing factors influencing to invest in mutual funds
10. Chart showing tolerance level in mutual funds
11. Chart showing respondents suiChart products to invest in mutual funds
12. Chart showing benefits expect by investing in mutual funds
13. Chart showing rule adopt to investing in mutual funds
14. Chart showing reason for withdraw of from investing in mutual funds
15. Chart showing respondents preference of company
16. Chart showing ranking of following mutual funds
17. Chart showing reason regarding interest gives investing in sip
18. Chart showing reasons for investing in sip
19. Chart showing preferential features excepted in investing in mutual funds
20. Chart showing services expected from a fund house.
21. Chart showing weighted average preferential features excepted in investing in
mutual funds
22. Chart showing relationship between regular investor and irregular
investor with the preferential features expected while investing in
mutual funds.
ACKNOWLEDGEMENT
 ABSTRACT

The project is done in ALLIANZ SEQURITIES LTD and the topic assigned is
the study of “Investor behavior in mutual fund” in the market. The study is to know
the investor. The study is also is know the future market of mutual fund.

The research design was used was descriptive research since it is helpful in
knowing the proportion of the people in the given population behaved in a particular
manner.

The tool used for the collection of data was through questionnaire and the
secondary data are collected from the website.

The researcher chose 100 sample who have invested in mutual funds with the
help of a area sampling method in a order to present the information in an
understandable way the researcher had used various statistical tools like percentage
analysis, chi-square.

The major finding the researcher found is that the investor expects a regular
report from the financial advisor.

About the product:

Mutual fund is a service sector where the investor money is pooling in the
capital market that is in the share market.

Competitors:

Mutual funds market today has a every competition and also the mutual fund
in India is also growing in faster rate and highly competitive to keep their position in
the market. There mayor compotator in the field are KARVI, UTI securities exchange
ltd, ICICI, KOTAK securities, A.K. capital.
 INTRODUCTION

Preface

In today’s competitive world, marketing ALLIED WITH FINANCE forms a

key player. To me it is an orderly and insightful process of thinking about and
planning for market COMBINED WITH FINANCE. This process is applicable to
more than just goods and services. I think that anything can be marketed –ideas,
events, events, organizations, personalities etc. it is also involves formulating strategic
plans, evaluating results, and marking further improvement. I have put my best effort
in this direction in the company ALLIANZ SEQURITIES LTD I was given free hand
to work and apply myself in the practical market place, which was indeed a great
exposure for me. The project topic “THE STUDY OF INVESTOR BEHAVIOR ON
MUTUAL FUND” My area of survey was the region of Chennai.
 REVIEW OF LITERATURE

Investment refers to acquisition of some assert. It is also means the

conversion of money in to claims on money and use of funds for productive and
income earning assets. In essence, it means the use of fund for productive purpose, of
securing some objective like income, appreciation of capital or capital gains, or for
future production of goods and services with the objective of securing profits.

Investment activity the use of funds or saving for further creation of assets or
acquisition of existing asserts.

Capital market is a wide term used to comprise all operations stock market and
I the new issue. New issue made by the companies’ constute the primary market,
while trading in the existing securities relate to the secondary market. While we can
only buy in the primary market. We can buy and sell in the secondary market. The
term market capital encompasses all operation of the F.I.S, banks. Etc, at the long-
end of spectrum of maturities. The demand and supply for the long-term fund are
reflected in capital market, which is the market, which is a market for borrowing and
lending of funds of more than one year.

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 these investments and the capital appreciation realized are 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.

Product profile:
A mutual find is a trust 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 these investments and the capital appreciation realized are 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:

Types of mutual fund schemes

Schemes according to maturity period

A mutual fund scheme can be classfied in to
1. Open – ended scheme
2. Close – ended scheme
It is depending on their maturity period

Open – ended fund/scheme

An open – ended fund or scheme is one that is available for subscription and
repurchase.

ADVANTAGES OF MUTUAL FUNDS

The advantages of investing in a Mutual Fund are :

• Professional Management
• Diversification
• Convenient Administration
• Return potential
• Low costs
• Liquidity
• Transparency
• Flexibility
• Choice of schemes
• Tax benefits
• Well regulated
TYPES OF MUTUAL FUND SCHEMES

Wide variety of mutual fund schemes exist to cater to the needs such as
financial position, risk tolerance and return expectations etc. The table below gives
and overview into the existing types of schemes in the industry.

FREQUENTLY USED TERMS

Net asset value (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.

Sale price

Is the price you pay when you invest in a scheme. Also called offer price. It
may include a sales load.

Repurchase price is the price at which a close-ended scheme repurchases its

units and it may include a back-end load. This is also called Bid Price.

Redemption price is the price at which a close – ended scheme repurchases

their units and close-ended schemes redeem their nits on maturity. Such prices are
NAV related.

Sales load is a charge colleted by a scheme when it sells the units. Also
called, ‘front-end’ load. Schemes that do not charge a load are called ‘no Load’
schemes.

Repurchase or ‘back-end’ Load

Is a charge collected by a scheme when it buys back the units from the unit
holders.
 MUTUAL FUNDS AND THERE SCHEMES

Alliance Mutual Fund ING savings Trust SBI Mutual fund

Equity fund Income portfolio (NRI) Magnum global fund
The Alliance ’95 Fund Growth Portfolio (NRI) Magnum multiplier plus
Liquid income Savings deposit Magnum open fund
Cash Manager Regular Income Deposit 1995
Monthly Income Growth Deposit Magnum Sector Funds
Capital Tax Relief ‘96 Savings trust Magnum Multiplier
Treasury Portfolio Scheme
Offer Document Magnum Open Fund
ANZ Grindlays Mutual IL&FS Mutual Fund Magnum Tax Gain
Fund Bond Fund Magnum Equity Fund
Super Saver Income Fund ECOM Fund Magnum LiquiBond Fund
Growth & Value Fund Magnum Balanced Fund
Birla Mutual Fund Jardine Fleming Mutual Sun F & C Mutual Fund
Advantage Fund Fund Balanced Fund
Income Plus India Bond Fund Value Fund
IT Fund
MNC Fund
Balance
Equity Plan
Cash Plus
BOB Mutual Fund JM Mutual Fund Sundaram Newton
BOB ELSS ‘96 Balanced Fund Bond Saver
Equity Fund Growth Fund
Liquid Fund
Debt Fund
G-Sec Fund
Cholamandalam Mutual Kotak Mahindra Mutual Tata Mutual Fund
Fund Fund Core Sector Equity Fund
Chola Freedom Tech. Kgilt Unit Scheme ‘98 Gilt Securities Fund
Cholo Freedom Income K30 Unit Scheme Tax Saving Fund
Cholo Triple ACE Twin Option Fund
DSP Merrill Lynch Mutual Kothari Pioneer Mutual Young Citizen’s Fund
Fund Fund Balanced Fund
Liquidity Fund Balanced Fund Income Fund
Bond Fund Bluechip Fund Liquid Fund
Equity Fund Children’s Asset Plan
Balanced Fund FMCG Fund
Government Sec. Fund Income Builder Taurus Mutual Fund
Technology.com Fund Account Open – End Growth
Dundee Mutual Funds Infotech Fund Scheme
Dundee Liquidity Fund Internet Opportunities Libra Leap
Dundee Sovereign Trust Fund Libra Tax Shield
Plan-A-PSU Bond Fund Money Market Account Discovery Stock Fund
Dundee Balanced Fund Pension Plan
Pharma Fund
Prima Plus
Prima Fund
Tax Shield
Treasury Management
Account
GIC Mutual Funds LIC Mutual Fund Unit Trust of India
GIC D’mat Dhanvikas (1) Unit Scheme 1964
GIC Fortune ‘94 Dhanaraksha
GIC Growth+Plus II Bond Fund US – 95
Gic Balanced Fund PNB Mutual Fund UTI Bond Fund
PNB Bal. Growth Fund
PNB Debt Fund
UTI G-Sec
Offer Documents Fund
GIC D’Mat Schemes Other Than
GIC Fortune ‘94 UTI – Growth Sector Fund
GIC Growth + Plus II
GIC Balanced Fund
Offer Documents
Unit Scheme 1964
US-95 / Bond Fund / G-
Sec Fund
Schemes Other Than UTI-
 Growth sector Fund
IDBI Mutual Funds Prudential ICICI Zurich India Mutual Fund
IDBI Index I-Nit ‘99 Liquid Plan Capital Builder Fund
IDBI Deposit I-Nit ‘97 Income Plan Equity Fund
Gilt Fund Treasury Plan
Gilt Fund Investment Prudence Fund
Plan
Balanced Fund Top 200 Fund
FMCG Fund High Interest Fund
Growth Plan Liquidity Fund
Tax Plan
Technology Fund Sovereign Gilt FUnd
1. ROLE OF INTERMEDIARIES IN THE INDIAN MUTUAL

FUND INDUSTRY

The mutual fund industry in India started in 1964 with the formation of the
unit trust of India (UTI). In 1987, other public sector institutions entered this
business, and it was in 1993 that the first of the private sector participants
commenced its operations.

From the beginning, UTI and other mutual funds have relied extensively on
intermediaries to market their schemes to investors. It would be accurate to
say that without intermediaries, the mutual fund industry would not have
achieved the depth and breadth of coverage amongst investors that it enjoys
today. Intermediaries have played a pivotal and valuable role in popularizing
the concept of mutual funds across India. They make the forms available to
clients, explain the schemes and provide. Administrative and paperwork
support to investors, making it easy and convenient for the clients to invest.

Intermediation itself has undergone a change over the past few decades.
While individual agents provided the foundation for growth in the early years,
in promoting mutual funds. Recently, banks, finance companies, secondary
market brokers and even post offices have also begun to market mutual funds
to their existing and potential client bases.

It is, thus clear that all types of intermediaries are required for the growth of
the industry, and their wellbeing, quality orientation and ways of doing
business will have a significant impact on how the mutual fund industry in
India evolves in the future.
2. GUIDELINES FOR SELLING AND MARKETING MUTUAL
FUNDS

Background :

Investors can purchase and sell mutual fund units through various types o
intermediaries – individual agents, distribution companies, national / regional
brokers, banks, post offices etc. as well as directly from asset management
companies (AMCs), including the Unit Trust of India.

(i) Those who want product information, advice on financial planning and
investment strategies.

(ii) Those who require only a basic level of service and execution support
i.e. delivering and collecting application forms and cheques, and other basic
paperwork and post sale activities. Intermediaries play a pivotal role in
promoting sale of mutual fund schemes. AMFI has therefore taken the
initiative of developing a cadre of trained professional intermediaries. As the
first step AMFI launched the certification programme in association with
NSE’s certification in Financial Markets (NCFM) in July 2000 and SEBI has
made AMFI certification compulsory in a phased manner. Intermediaries
consisting of individual agents, brokers, distribution houses and banks
engaged in selling of mutual fund products as of now do not have any
guidelines or regulatory framework relating to the business of selling mutual
funds. It is important and necessary that these intermediaries follow
professional and healthy practices. AMFI has therefore taken the initiative of
framing a broad set of guidelines along with a code of conduct. AMFI
working group on Best Practices for sales and marketing of Mutual Funds
under the Charimanship of Shri B. G. Daga, Former Executive Director of
Unit Trust of India with Shri Vivek reddy of Pioneer ITI, Shri Alok Vajpeyi of
DSP Merrill Lynch, Shri Nikhil Khattau of Sun F&C and shri chandrasekhar
Sathe, Formerly of Kotak Mahindra Mutual Fund has suggested formulation
of guidelines and code of conduct for intermediaries and this work has been
ably done by a sub-group consistin of Shri B.G.Daga and Shri Vivek Reddy.
 On behalf of AMFI, I record our thanks and appreciation to all the members of
the working group especially Shri B.G.Daga and Shri Vivek Reddy. Both of
tehm have devoted considerable time and efforts in formulating AGNI. It is
our request that all the intermediaries make sincere efforts to adhere to the
guidelines and the code of conduct so that all those engaged in the business of
selling and marketing of mutual fund schemes follow professional, healthy
and best practices for the sustained benefit of all concerned – investors,
intermediaries and the mutual fund industry as a whole.

Place : Mumbai A P KURIAN

Date : February 19, 2002 CHAIRMAN
Association of Mutual funds in India
Regd. Office: 1218, B-Wing, Dalamal Tower, Free Press Journal Marg.
Nariman Point, Mumbai – 400 021. Tel: 232 4524 / 232 4525 / Fax: 283 1163

(iii) Those who prefer to do it all themselves, including choice of

investments as well as the process /paperwork related to investments.

To cater to different types of investors, the Mutual fund industry comprising of

AMCs and intermediaries at present offers the following two levels of services:

(a) Value added services :-

Financial planning and investment strategies. The advice encompasses analyzing
an investor’s financial goals depending upon the segment of investor, assessing
his/her resources, determining his/her risk bearing capacity/preference and then
using this information to recommend an asset allocation/specific investment/s that
are in tanden with the investor’s needs. Investors may also receive portfolio
rebalancing to remain aware about the changes / developments in market
conditions and adjust the portfolio from time to time according to their needs. In
such advisory services, the emphasis is on building an ongoing relationship with
the investor/s. In India, given that mutual funds are relatively new, there is low
level of awareness amongst investors about the working and benefits of Mutual
funds. Also, very few investors take an organized approach to financial planning.
Therefore, it is clear that the vast majority of investors would benefit significantly
from the value-added services enumerated above.

(b) Basic services:-

The includes providing the basic information on schemes launched to investors,
assisting them in filling application forms, submission of application forms
alongwith cheques at the respective office/s, delivering redemption. Proceeds and
answering scheme related queries investor/s may have. What investors receive
here is convenience and access to mutual funds through agents and employee of
brokers who visit them and facilitate the paperwork related to investment. related
to investment. These services are also given through the branches and front office
staff of AMCs and intermediaries. These are transaction-oriented service where
investors make the investment decisions themselves, and rely on the AMC and
intermediary mostly for execution and logistics support. Recommendations

While institutions can continue to be serviced by AMCs and intermediaries, it is

proposed that AMCs and the intermediary community focus more on individual
investors and take every effort to:

a) Provide high quality advice and product (information to such customers.

b) Explain and position this service in such a way that clients recognize it as a
specialized and value added service, a task which may be difficult to accomplish
on their own.
c) Convince investors that the transaction and intermediation cost they are paying
is justified in lieu of the long-term benefits accruing from such counseling and
guidance.

The Mutual fund industry has to now take the more difficult but long-term
sustainable route of gathering assets from individual investors by proving them
value added, financial planning services and ensuring that Mutual fund are an
integral part of their overall portfolio. Only if this happens will AMCs and
intermediaries command higher margins and levels of profitability, and not suffer
from the low margins associated with dispensing only basic types of service/s.
 While doing this, the mutual fund industry in should take care to ensure that:

(a) each investor, institutional or individual, receives the exact level of service
they choose and correct advice based on clear and concrete facts and figures.
Correspondingly, the intermediation and transaction cost investors incur should
reflect the value of the of the service and advice they receive.

(b) Mutual funds are accurately represented and appropriately positioned to

investors, whichever channel or mode they choose to invest in. The industry
should safeguard the investor’s right towards correct description of the product,
good service, transparency and ability to take informed decisions.

(c) There is comprehensive knowledge and understanding to Mutual Funds

amongst all individuals instrumental in selling the Mutual Fund schemes to
investors including Fund schemes to investors including employees of
intermediaries, individual agents and financial planners.

2.7 The AMFI Certification is designed to be a professional qualification that

provides intermediaries with a thorough understanding of mutual funds and
how to present them appropriately to clients. The AMFI certification is needed
both for individuals and corporate distributors. The certification is required for
all individuals selling and representing mutual funds to clients, whether they
are employees of an intermediary organization or they are individual financial
planner / agent.

3. Code of conduct for intermediaries

3.1 Take necessary steps to ensure that the clients’ interest is protected.

3.2 Adhere to SEBI Mutual Fund Regulations and guidelines related to selling,
distribution and advertising practices. Be fully conversant with the key
provisions of the offer document as well as the operational requirements of
various schemes.
3.3 Provide full and latest information of schemes to investors in the form of offer
documents, performance reports, fact sheets, portfolio disclosures and
recommend schemes appropriate for the client’s situation and needs.

3.4 Highlight risk factors of each scheme, avoid misrepresentation and

exaggeration, and urgeinvestors to go through offer documents/keyinformation
memorandum before deciding to make investments.

3.5 Disclose all material information related to the schemes/plans while

canvassing for business.

3.6 Abstain from indicating or assuring returns in any type of scheme, unless the
offer document is explicit in this regard.

3.7 Maintain necessary infrastructure to support the AMCs in maintaining high

service standards to investors, and ensure that critical operations such as
forwarding forms and cheques to AMCs / registrars and dispatch of statement
of account and redemption cheque to investors are done within the time frame
prescribed in the offer document and SEBI Mutual Fund Regulations.

3.8 Avoid colluding with clients in faulty business practices such as bouncing
cheques, wrong claiming of dividend / redemption cheques, etc.

3.9 Avoid commission driven malpractices such as :

(a) recommending inappropriate products solely because the
intermediary is getting higher commission there form.
(b) Encouraging over transacting and churning of mutual fund
investments to earn high commissions, even if they mean higher
transaction costs and tax for investors.

3.10 Avoid making negative statements about any AMC or scheme and ensure that
comparisons if any, are made with similar and comparable products.
3.11 Ensure that all investor related statutory communications (such as charges in
fundamental attributes, exit/entry load, exit options, and other material
aspects) are sent to investors reliably and on time.

3.12 Maintain confidentiality of all investor deals and transactions.

3.13 When marketing various schemes, remember that a client’s interest and
suitability to their financial needs is paramount, and that extra commission or
incentive earned should never form the basis for recommending a scheme to
the client.

3.14 Intermediaries will not rebate commission back to investors and avoid
attracting clients through temptation of rebate/gifts etc.

3.15 A focus on financial planning and advisory services ensures correct selling,
and also reduces the trend towards investors asking for passback of
commission.

3.16 All employees engaged in sales and marketing should and marketing should
obtain AMFI certification. Employees in other functional areas should also be
encouraged to obtain the same certification. Sequence of steps in the Event of
Breach of Above “Code of Conduct” by the Intermediary if any breach of the
above Code of Conduct for intermediary is reported to AMFI by either an
investor or an AMC in writing, then AMFI will initiate the following steps:

 Write to the intermediary (enclosing copies of the complaint the other

documentary evidence) and ask for an explanation within a time limit of 3
weeks
 In case an explanation is not received within the time limit, or the explanation
is not satisfactory, AMFI will issue a warning letter indicating that any
subsequent violation will result in cancellation of AMFI Registration.
 If there is a proved second violation by the intermediary, the registration will
be cancelled and an intimation sent to all AMCs. The intermediary will have a
right of appeal to AMFI.
 COMPANY PROFILE

One of the leading Investment Banks in India, providing a full range of

investment, advisory and financial services to a substantial and diversified
client base. ASL is a credible, professional and client oriented investment bank
with the ability to anticipate, understand and respond to client needs in a time
bound manner.

Allianz Securities Ltd. (ASL) is one of the leading Investment Bank in

India, providing a full range of investment, advisory and financial services to a
substantial and diversified client base. ASL is a credible, professional and
client focused investment bank with the capacity to anticipate, understand and
respond to client needs.

 Category – I Merchant Banker since 1994.

 Pure fee based Company – Emerging Leader
 Offering “Integrated Merchant Banking Services” including :
 Corporate Finance, Investment Banking & Advisory (CFIB)
 Primary Debt, Equity & Financial Product mobilization (Primary
Division)
 Secondary Debt (Secondary Division)
 Corporate Offices in New Delhi & Mumbai with 8 Branch Offices.
 Highly experienced & professional board
 An integrated team of more than 150 professionals

The professional team of Allianz consists of persons having

experience in Banking, privatization, Corporate Finance, Business
evaluatioin, treasury/forex operations, investment banking, etc.
• Sh. Sanjeev Gupta, Chartered Accountant - Executive Director :
He has experience of more than fifteen years in Investment Banking,
Corporate Finance & Advisory and Investment Analysis. He is a
specialist in planning and raising funds from capital markets, financial
institutions, banks and private equity investors within and outside the
country, both on Debt and Equity. He heads the Capital Market &
Corporate Finance group of the Company.

• Sh. Anuj Agrawal,M.Sc (Hons), CAIIB- Executive Director : He is

an experienced banker and financial industry professional with strength
in business development and opportunity generation. His core
Competence areas are Feasibility studies, Corporate finance,
BIFR/AAIFR matters, Rehabilitation Strategies and Financial
Restructuring. He has been providing Financial Advisory services in
Power Sector and BOT Road Projects. He heads Infrastructure Advisory
& Loan Syndication Department of the Company.

• Sh. Sunil Chandra, B.Com (H),CAIIB. - Executive Director : He is

an experienced banker with unique blend of experience in various
segments of the money markets including a leading pubic sector bank.
His Experience includes Treasury Operations (Domestic as well as
Foreign Exchange) Debt Markets (Primary as well as Secondary),
General Banking, Merchant Banking, Inspection and Audit, Broking,
Rural Economics, etc. This extensive exposure has helped give an
exceptional insight into the functioning of various facets of the Indian
economy (with emphasis on capital markets). He heads Treasury &
Investment Group of the Company.

• Sh. Sameer Apte, B.Com (H). - Executive Director : He has over 10

years of experience in the marketing of financial products. He is the
overall In-charge of the Western Region operations of the company.
• Sh. L.N. Sachdeva, B.Com (H), CFA, CAIIB- Senior Vice
President : He is a professionally trained Banker and having a degree in
Commerce, from University of Delhi and Chatered Financial Analyst
from ICFAI, Hyderabad with specialisation in Banking, Finance, Capital
Market and Economic Laws. He has rich Experience of 22 years in
Banking Industry more particularly in field of Corporate Financing,
Project Financing and Rehabilitation of sick units through financial
restructuring, merger and demerger, takeovers etc. He has also
substantial exposure to rural Banking and deposit mobilisation.

• Sh. Sankha Dasgupta, B.Com(H), PGDM- Senior Vice President :

He has over 9 years of experience in the Investment Banking operations.
He heads the Original & Client Relationship on an All India basis.

• Sh. Sanjay Dewan, B.Com (H), CAIIB, PGDFM - Senior Vice

President : He is having over 18 years of experience in Merchant
Banking and has an exhaustive knowledge on Due-Diligence, Issue
Management, Co-ordination with various Regulatory Authorities like
SEBI, RBI, Stock Exchanges, etc. He is the Compliance Officer to SEBI
for Merchant Banking activities of the Company. He is also having
experience in the field of private placement of debt, marketing and
distribution of various financial products, etc.

• Sh. Hamendra Modi, B.Com (H)- Senior Vice President : He is

having 12 years of experience in marketing of various financial
products. He heads mutual fund distribution of the Company on an All
India basis.

• Rohit Chawdhry, BE,MBE- Chief Strategist : He has over 8 years of

Experience in Indian and Global financial Market. He is responsible for
developing appropriate investment strategies for client and the firm depending
on their risk appetite and the investment climate. He has also worked as
Strategist/Portfolio Manager in Middle East, Managing global equity portfolio
of over USD 1 Billion. He has contributed extensively on global financial
marketsIn the area of Mergers & Acquisitions, we provide our clients expertise
and a comprehensive set of services that help them achieve their strategic and
financial objectives. Our spectrum of services include Mergers, Acquisitions /
Takeovers (including Tender Offers), Divestments, Spin-Offs / Restructuring,
Joint Ventures / Strategic Alliances, Demergers.

We are able to add value to our clients due to our unmatched expertise,
our in-depth understanding of a wide range of industries, our comprehensive
network spanning Corporate India and our ability to structure innovative &
customized solutions to suit client needs. Our approach has centered, around
being with the client right through the transaction and beyond and offering the
following services amongst others:

 Strategy formulation Identification (Targets/Buyers)

 Valuation (Including valuations of intangibles, brand valuations
etc)
 Negotiations / Bidding
 Capital Structuring
 Transaction Structuring
 Assistance in Legal Documentation
 Acquisition Financing - Strategy & implementation

Divestment Consultancy

We provide full range of Divestment Consultancy. The range of services been

provided by us include: -
  Acting as Financial Advisor to the Divestment process.
 Determination of Purchase consideration
 Determination of 'Control premium'
 Determining the exact road-map for the smooth
completion of the Divestment Process
 Assisting the management in selecting the exact method of
disinvestments, viz, Strategis Sale or Disinvestment through
Public Offering.

Delisting of Shares

We provide our consultancy services in the voluntary Delisting of

Shares of the Company from the Stock Exchanges having Nationwide
Terminals. The range of services being provided by us in this segment includes

 Assisting the company in making Public Announcement

before delisting
 Handling the exit option required to be provided to the
shareholders
Management of overall delisting process

Buy-Back of Securities:

We provide full range of consultancy in the buy back of securities of

bodies corporate like

 Compliance of the Statutory requirements

Overall management of the Buy-Back Process utilizing our expertise

in the management of Public Issues
 SCOPE OF THE STUDY

Through this study the researcher will assisting the management to design

future marketing strategies for the promotion of mutual funds, debt by Allianz

Securities Ltd. To make there way of service to promote the company as one of the

leading companies in chennai.

During the study the researcher also analyses the strength and weekness of its

competitors, so as to make some broad ideas could be provided to the management.

 OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE:

 To analyse the investor behavior in mutual funds

 To assess the awareness level of mutual funds among the investor

SECONDARY OBJECTIVE:

 To find out investors

preferred Fund House

 To analyse the factors

influencing investors to invest in mutual funds

 To analyse the ways of

present selection of Fund House

 To find out the type of

investment in mutual funds

 To extract whether the

investor seek advice from for investing mutual funds

 RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is the arrangement of condition for collection and analysis

of data in manner that aims to combine relevance to the research purpose with the
economy in procedure”. In fact, the research design is the conceptual structure with in
which research is conducted; it constitutes the blue print for the collection,
measurement and analysis of data.

The method of conducting research will be explained here besides; It also

deals with research designs, data collection method, sampling method, and fieldwork.
It explain about nature of research work to be done such as exploratory, descriptive
nature of research, which this particular design is used and what its importance is
explained in this section.

DIFFERENT RESEARCH DESIGN

Different research design can conveniently described if we categories them as

(1) Research design in case of exploratory research studies

(2) Research design in case of descriptive and diagnostic research
(3) Research design in case of hypothesis testing research studies

The type of research design involves in this study is descriptive research design

RESEARCH DESIGN IN CASE OF DESCRIPTIVE RESEARCH

STUDIES

Descriptive research studies are those studies, which are concerned with
describing the characteristics of particular individual, or of group, where as diagnostic
research studies determine the frequency, which some thing occurs, or it association
with something else. This study concern with concern certain variables are associated
example of diagnostic research studies. As against this, studies concerned with
specific prediction, with narration of facts and characteristics concerning individual,
group or situation are all examples of descriptive research studies. Most of the social
research comes under this category. From the point of view of the research design, the
descriptive as well as diagnostic studies share common requirements and as such we
may group together these two types of research studies. In descriptive as well as in
diagnostic studies the research must to able to define clearly, what he wants to
measure and must find adequate methods for measuring it along with a clear cut
definition of ‘population’ he wants to study. Since the aim is to obtain complete
accurate information in the said studies, the procedure to be used must be carefully
planned. The research design must make enough provision for protection against bias
and maximize reliability, with due concern for the economical completion of research
study.

In a descriptive study the first step is to specify the objective with sufficient
precision on ensure that data collected are relevant if this is not done carefully, the
study may not provide desired information.

SAMPLE DESIGN:

A sample design is a definite plan for obtaining a sample from a given

population. It refers to the techniques or the procedure the researcher would adopt in
selecting items for the sample. Sample design may as well lay down the number of
items to be included in the sample i.e., the size of the sample. Sample design is
determined before data are collected.

While developing a sample design, the researcher must pay attention to the
following points.

 Type of universe
 Sampling unit
 Source list
 Size of sample
 Parameters of interest
 Budgetary constraint
 Sampling procedure
SIZE OF SAMPLE:

This refers to the number of items to be selected from the universe to

constitute a sample. This is a major problem before a researcher. The size of sample
should neither be excessively large, nor too small. It should be optimum. An optimum
sample is one, which fulfils the requirement of efficiency, representative ness
reliability and flexibility while deciding the size of sample; researcher must determine
the desired precision as also an acceptable confidence level for the estimate. The size
of population variance needs to be considered as in cas of larger variance usually
bigger sample is needed.

This study involves the sample size of 100 investor’s in mutual funds

SAMPLING TECHNIQUES:

Sampling technique are normally classified as two, namely

 Probability sampling
 Non-probability sampling

In this the researcher has used the non-probability sampling technique. Under
this the probability sampling the researcher has chosen the convenience sampling
method.

AREA SAMPLING METHOD:

Area sampling is quite close to cluster sampling and is often talk about when
the geography area of interest happened to de big one. Under area sampling we first
divide the total area in to number of smaller non-overlapping area, generally called
geography cluster, then the number of these area are randomly selected, and all these
smaller area are included in the sample. Area sampling is specially helpful where we
do not have the list of population concerned. It also makes the field interviewing
more efficient since interviewer can do many interviews at each location.
DATA COLLECTION:

The task of data collection begins after a research problem has been defined
and research design/plan chalked out. While deciding about the method of data
collection to be used for the study, the researcher should keep in mind two types of
data viz., primary and secondary.

PRIMARY DATA:

The primary data are those, which are collected for the first time and thus
happened to be original in character. Such data are collected with specific set of
objectives to assess the current status of any problem.

SECONDARY DATA:

Secondary data are those which have already been collected by some other and
which have already been processed. Such data are collected and used for some other
purpose with the objective of understanding the past status of any problem.

COLLECTION OF PRIMARY DATA:

We collect primary data during the course of doing experiments in an

experiment research but in case we do research of the descriptive type and perform
surveys whether sample surveys or census surveys, then we can obtain primary data
either through observation or though direct communication with respondents in one
form or another or through personal interviews.

Here the researcher used the method or personal interview method to collect
primary data.
STATISTICAL TOOLS:

The collected data has been subjected to analysis by using appropriate tools
like percentage, weighted average, rank correlation, cross tabulation and chi-
square methods.

PERCENTAGE ANALYSIS:

In this tool, various percentages are identified in the analysis and they are
presented by way of bar and pie diagrams in order to have better understanding.

WEIGHTED AVERAGE METHOD:

We use weighted average method when the relative importance of the

different items is not the same the term weight stands for relative importance of the
different items. The statistical technique used in this research is weighted arithmetic
mean especially for rank type first preference of the respondents were given ranks and
the weighted arithmetic mean was the relative important of the different observations
is not the same.

The term ‘weight’ stands for the relative importance of different observations.
The formula for computing weighted arithmetic mean is,

X=WX/W
Where, WX represents the weighted arithmetic mean,
X=variable
W=weight attached to the variable X.

An important problem that arises while using weighted mean is regarding

selection of weights may be either actual or arbitrary i.e., estimated. In the absence of
actual weights arbitrary or imaginary weights may be used. The use of arbitrary
weights may leads to some error, but this is better than no weights at all. In practice it
is found that if weights are intelligently assigned keeping phenomena in view, error
evolved will be so small that it can be easily overlooked.
 LIMITATIONS OF THE STUDY

1. Many investors refused to provide data as it was related to their

investment.

2. Non-availability of investors on the time assured by them.

3. Because to meet the investors in personally we have to meet them in there

home it would take more time.

4. Because of falling market in the present period few have refused to co-
operate.

5. Because of the personal interview it led to lot of expenses.

6. The study was conducted only in the city of Chennai and this may not the
representative sample of the entire population.
 DATA ANALYSIS AND INTERPRETATION

Analysis of data is process of orderly breaking down into parts and

manipulating the data to obtain an answer for research objectives. The primary data
collected is in crude form that is not ready for analysis. The researcher must take
some measure to bring the data to form where it can be easily analyzed. The various
steps include editing, coding, and tabulation.

The analysis is carried out using statistical tools like percentage, chi-square,
and weighted average method. Thus the analysis is totally based on frequency,
percentage, chi-square and weighted average calculations.

Finally, meaningful information is extracted from analysis. The collected data

is illustrated using Bar charts and Pie diagrams. The conclusions and
recommendations and the research are given on the interpretation, drawn from the
analysis.
 DATA ANALYSIS AND INTERPRETATION

TABLE NO.1

TABLE SHOWING GENDER COMPOSITION OF THE

RESPONDENTS

Sl. Number of
Gender Percentage
No Respondents
1 Male 79 79
2 Female 21 21
Total 100 100

Inference
CHART NO 1

CHART SHOWING GENDER COMPOSITION OF THE RESPONDENTS

80

70

60

50

40

30

20

10

0
Male Female
TABLE NO.2

TABLE SHOWING AGE COMPOSITION OF THE RESPONDENTS

Sl. Number of
Age Percentage
No Respondents
1 Less than 25 9 9
2 25-30 26 26
3 31-40 38 38
4 41-50 3 3
5 More than 50 24 24
Total 100 100

Inference
CHART NO.2

CHART SHOWING AGE COMPOSITION OF THE RESPONDENTS

40

35

30

25

20

15

10

0
Less than 25-30 31-40 41-50 More than
25 50
TABLE NO.3

TABLE SHOWING EDUCATIONAL QUALIFICATION OF THE

RESPONDENTS

Sl. Number of
Educational Qualification Percentage
No Respondents
1 School Level 1 1
2 Under graduate 29 29
3 Post graduate 36 36
4 Professional 34 34
5 Others - -
Total 100 100

Inference
CHART NO.3

CHART SHOWING EDUCATIONAL QUALIFICATION OF THE

RESPONDENTS

40

35

30

25

20

15

10

0
School Level Under graduate Post graduate Professional Others
TABLE NO.4

TABLE SHOWING OCCUPATIONAL COMPOSITION OF THE

RESPONDENTS

Sl. Number of
Occupation Percentage
No Respondents
1 Pvt Employee 21 21
2 Govt. Employee 9 9
3 Business 12 12
4 Profession 50 50
5 Others 8 8
Total 100 100

Inference
CHART NO. 4

CHART SHOWING OCCUPATIONAL COMPOSITION OF THE

RESPONDENTS

50

45

40

35

30

25

20

15

10

0
Pvt Employee Govt. Business Profession Others
Employee
TABLE NO.5

TABLE SHOWING ANNUAL INCOME LEVEL OF THE

RESPONDENTS

Sl. Number of
Income level Percentage
No Respondents
1 Less than 100,000 72 72
2 100,000 – 200,000 19 19
3 200,000 – 300,000 3 3
4 300,000 – 400,000 5 5
5 More than 400,000 1 1
Total 100 100

Inference
CHART NO. 5

CHART SHOWING ANNUL INCOME LEVEL OF THE

RESPONDENTS

80

70

60

50

40

30

20

10

0
Less than 100,000 – 200,000 – 300,000 – More than
100,000 200,000 300,000 400,000 400,000
TABLE NO.6

TABLE SHOWING RESPONSE REGARDING REGULAR INVESTOR

Sl. Number of
Response Percentage
No Respondents
1 Yes 76 76
2 No 24 24
Total 100 100

Inference
CHART NO.6

CHART SHOWING RESPONSE REGARDING REGULAR INVESTOR

24%

76%

Yes No
TABLE NO.7

TABLE SHOWING RESPONSE REGARDING TYPE OF

INVESTMENT

Sl. Number of
Type of investment Percentage
No Respondents
1 Short term investment 39 39
2 Medium term investment 25 25
3 Long term investment 36 36
Total 100 100

Inference
CHART NO.7

CHART SHOWING RESPONSE REGARDING TYPE OF

INVESTMENT

40

35

30

25

20

15

10

0
Short term investment Medium term Long term investment
investment
TABLE NO.8

TABLE SHOWING SOURCE OF INVESTMENT ADVICE

Sl. Number of
Type of investment Percentage
No Respondents
1 Own Decision 53 53
2 Advisors 4 4
3 CA’s - -
4 Banks - -
5 Financial consultant 26 26
6 Brokers 2 2
7 Friends / Relatives 15 15
8 Others - -
Total 100 100

Inference
CHART NO.8

CHART SHOWING SOURCE OF INVESTMENT ADVICE

60

50

40

30

20

10

0
Own CA’s Financial Friends /
Decision consultant Relatives
TABLE NO.9

TABLE SHOWING FACTORS INFLUENCING TO INVEST IN

MUTUAL FUNDS

Sl. Number of
Type of investment Percentage
No Respondents
1 Safety 82 82
2 Liquidity 67 67
3 Tax benefit 26 26
4 Service level 2 2
5 Brand Image 18 18
6 Diversified Risk 76 76
7 Convenience 7 1
8 Capital appreciation 17 17
Total 295 295

Inference
CHART NO.9

CHART SHOWING FACTORS INFLUENCING TO INVEST IN

MUTUAL FUNDS

90

80

70

60

50

40

30

20

10

0
Safety Liquidity Taxbenefit Service level Brand Image Diversified Risk Convenience Capital
appreciation
TABLE NO.10

TABLE SHOWING TOLERANCE LEVEL IN MUTUAL FUNDS

Sl. Number of
Tolerance level Percentage
No Respondents
1 High 11 11
2 Low 16 16
3 Medium 73 73
Total 100 100

Inference
CHART NO. 10

CHART SHOWING TOLERANCE LEVEL IN MUTUAL FUNDS

80

70

60

50

40

30

20

10

0
High Low Medium
TABLE NO.11

TABLE SHOWING RESPONDENTS SUITABLE PRODUCTS TO

INVEST IN MUTUAL FUNDS

Sl. Number of
Product Percentage
No Respondents
1 Bank 48 48
2 FD - -
3 Company - -
4 Equality funds 44 44
5 Debt funds 8 8
Total 100 100

Inference
CHART NO.11

CHART SHOWING RESPONDENTS SUITABLE PRODUCTS TO

INVEST IN MUTUAL FUNDS

50

45

40

35

30

25

20

15

10

0
Bank FD Company Equally funds Debt funds
TABLE NO.12

TABLE SHOWING BENEFITS EXPECT BY INVESTING IN MUTUAL

FUNDS

Sl. Number of
Benefits Percentage
No Respondents
1 Liquidity 89 89
2 Diversification 21 21
3 Post tax returns 36 36
4 Tax free dividends 81 81
Total 227 227

Inference
CHART NO.12

CHART SHOWING BENEFITS EXPECT BY INVESTING IN MUTUAL

FUNDS

90

80

70

60

50

40

30

20

10

0
Liquidity Diversification Post tax returns Tax free dividends
TABLE NO.13

TABLE SHOWING RULE ADOPT TO INVESTING IN MUTUAL

FUNDS

Sl. Number of
Benefits Percentage
No Respondents
1 Assess yourself 91 91
2 Speculating 3 3
3 Right time to sell 4 4
4 Getting advice 5 5
5 Understanding money 16 16
flown
6 Right funds 25 25
7 Joint name work 88 88
Total 232 232

Inference
CHART NO. 13

CHART SHOWING RULE ADOPT TO INVESTING IN MUTUAL

FUNDS

100

90

80

70

60

50

40

30

20

10

0
Assess Right time to Understanding Joint name
yourself sell money flow n w ork
TABLE NO. 14

TABLE SHOWING REASON FOR WITHDRAW OF FROM

INVESTING IN MUTUAL FUNDS

Sl. No Reason No of respondents %

1 Not playing 90 90
2 Change in 1 1
investment style
3 Fund experience 8 8
4 Fund Msv. 1 1
Change
Total 100 100

Inference
CHART NO. 14

CHART SHOWING REASON FOR WITHDRAW OF FROM INVESTING IN

MUTUAL FUNDS

90

80

70

60

50

40

30

20

10

0
Not playing Change in Fund experience Fund Msv. Change
investment style
TABLE NO. 15

TABLE SHOWING RESPONDENTS PREFERENCE OF COMPANY

No.of
Sl. No Company %
respondents
1 HDFC 8 8
2 SBI 21 21
3 ICICI 3 3
4 Franklin templeton 49 49
5 UTI 4 4
6 HSBC 2 2
7 ABN Amro 1 1
8 Others 12 12
Total 100 100

Inference
CHART NO. 15

CHART SHOWING RESPONDENTS PREFERENCE OF COMPANY

50

45

40

35

30

25

20

15

10

0
HDFC SRI ICICI Franklin UTI HSBC ABN Amro Others
temptation
TABLE NO. 16

TABLE SHOWING RANKING OF FOLLOWING MUTUAL FUNDS

Sl. Company
RI R II R III R IV RV Total
No Royal
1 UTI 41 28 28 1 2 100
2 HDFC 31 41 22 5 1 100
3 Franklin templeton 26 39 26 8 1 100
4 Kotak 11 49 21 15 4 100
5 ICICI 12 31 38 11 8 100
6 SBI 38 31 18 12 1 100
7 Reliance 12 36 41 10 1 100
Total

Inference
CHART NO. 16

CHART SHOWING RANKING OF FOLLOWING MUTUAL FUNDS

100

90

80

70

60

50

40

30

20

10

0
UTI HDFC Franklin Kotak ICICI SBI Advance
temptation
TABLE NO. 17

TABLE SHOWING REASON REGARDING INTEREST GIVES

INVESTING IN SIP

Sl. No Reason No of respondents %

1 Yes 63 63
2 No 37 37
Total 100 100

Inference
CHART NO. 17

CHART SHOWING REASON REGARDING INTEREST GIVES

INVESTING IN SIP

37%

63%

Yes No
TABLE NO. 18

TABLE SHOWING REASONS FOR INVESTING IN SIP

No.of
Sl. No Company responden %
ts
1 Helping in investing distinguishers 31 31
2 Helped interest economic situation 2 2
3 Helpful investing 48 48
4 Helpful saving Helpful cost averaging 19 19

Inference
CHART NO. 18

CHART SHOWING REASONS FOR INVESTING IN SIP

50

45

40

35

30

25

20

15

10

0
Helping in investing Helped interest economic Helpful investing Helpful saving Helpful
distinguishers situation cost averaging
TABLE NO. 19

TABLE SHOWING PREFERENTIAL FEATURES EXCEPTED IN

INVESTING IN MUTUAL FUNDS

Sl. Rank Rank Rank Rank Rank Rank Rank Total

No Features 1 2 3 4 5 6
1 Quick returns 78 12 39 42 20 9 200
2 Diversification 10 19 48 52 63 8 200
3 Liquidity 81 62 33 4 3 17 200
4 Tax reduction 2 5 15 18 38 122 200
5 Safe 4 49 60 53 4 30 200
investment
6 Constant 25 53 5 31 72 14 200
return
Total 200 200 200 200 200 200

Inference
CHART NO. 19

CHART SHOWING PREFERENTIAL FEATURES EXCEPTED IN

INVESTING IN MUTUAL FUNDS

200

180

160

140

120

100

80

60

40

20

0
1 2 3 4 5 6

Quick returns Diversification Liquidity

Tax reduction Safe investment Constant return
TABLE NO. 20

TABLE SHOWING SERVICES EXPECTED FROM A FUND HOUSE.

Sl.
Features No. of respondent Percentage
No
1 Advising investors 182 91
2 Brand image 62 31
3 Grievance handling 112 56
4 Courteous services 116 58
5 Package offers 18 9
6 Advertisement 26 13
7 Promising high returns 128 64
8 Ensuring safety 196 98
Total

Inference
CHART NO. 20

CHART SHOWING SERVICES EXPECTED FROM A FUND HOUSE.

100

90

80

70

60

50

40

30

20

10

0
Advising Grievance Package Promising high
investors handling offers returns
 CROSS TABULATION ANALYSIS
TABLE NO.21

TABLE SHOWING RELATIONSHIP BETWEEN TERM OF

INVESTMENT AND LEVEL OF THE INCOME

Sl. Term of investment Medium

Short term Long term Total
No Income level terms
1 < 10,000 28 20 24 72
2 10000-20000 11 3 5 19
3 20000-30000 - 1 2 3
4 30000-40000 - 1 4 5
5 > 40000 - - 1 1
Total 39 25 36 100

Inference

From the above table it is inferred that

 72% of the short term investors are in the monthly income group of less
than 10000 per month
 80% of the long term investors are in the monthly income group of
30000-40000 per month
 57% of the respondent in the income category of 10000-20000 are short
term investors.
 WEIGHTED AVERAGE ANALYSIS
TABLE NO. 22

TABLE SHOWING WEIGHTED AVERAGE PREFERENTIAL

FEATURES EXCEPTED IN INVESTING IN MUTUAL FUNDS

Rank WT-6 WT-5 WT-4 WT-3 WT-2 WT-1

Sl. Weighted Weighted
Rank Rank Rank Rank Rank Rank
No Total average
Features 1 2 3 4 5 6
1 Quick returns 468 60 156 126 40 9 859 40.9
2 Diversification 60 95 192 156 126 8 637 30.3
3 Liquidity 486 310 132 12 6 17 963 45.8
4 Tax reduction 12 25 60 54 76 122 349 16.6
5 Safe
24 245 240 159 8 30 706 33.6
investment
6 Constant
150 265 20 93 144 14 686 32.6
return

Inference

From the above table it is inferred that

 While investing in mutual funds following at the features at listed rank wise
through preferential wise.

Rank 1 Liquidity
Rank 2 Quick returns
Rank 3 Safe investment
Rank 4 Constant return
Rank 5 Diversification
Rank 6 Tax reduction
CHART NO. 21

CHART SHOWING WEIGHTED AVERAGE PREFERENTIAL

FEATURES EXCEPTED IN INVESTING IN MUTUAL FUNDS

1000

900

800

700

600

500

400

300

200

100

0
Quick returns Diversification Liquidity Tax reduction Safe Constant
investment return
 RANK CORRELATION ANALYSIS
To test the relationship between regular investor and irregular investor with the
preferential features expected while investing in mutual funds.

TABLE NO. 23

TABLE SHOWING RELATIONSHIP BETWEEN REGULAR INVESTOR

AND IRREGULAR INVESTOR WITH THE PREFERENTIAL
FEATURES EXPECTED WHILE INVESTING IN MUTUAL FUNDS.

Sl. Irregular
Features Regular investor
No investor
1 Quick returns 2 1
2 Diversification 3 5
3 Liquidity 1 3
4 Tax reduction 6 4
5 Safe investment 5 6
6 Constant return 4 2

Rank correlation

= 1 – 6 ∑d2 / n3-n
= 0.49

Inference

Since the rank correlation is less than 0.5, the preferential feature expected
while investing in mutual funds for regular investor and irregular are not same.
CHART NO. 22

CHART SHOWING RELATIONSHIP BETWEEN REGULAR

INVESTOR AND IRREGULAR INVESTOR WITH THE
PREFERENTIAL FEATURES EXPECTED WHILE INVESTING IN
MUTUAL FUNDS.

12

10

0
Quick returns Diversification Liquidity Tax reduction Safe Constant return
investment
 CHI-SQUARE ANALYSIS
Need for the test
To test the relationship between gender and type of
investments in funds.

Null-hypothesis (H0)
There is no significant difference between gender and type
of investments in funds.

Alternate Hypothesis (H1)

There is significant difference between gender and type of
investments in funds.

TABLE NO. 25

TABLE SHOWING RELATIONSHIP BETWEEN GENDER AND TYPE

OF INVESTMENTS IN FUNDS.

Sl. Benefit Fixed Equity Debt

Bank Company Total
No Gender deposit funds funds
1 Male 31 - - 41 7 79
2 Female 17 - - 3 1 21
Total 48 - - 44 8 100
TABLE NO. 26

CALCULATION OF CHI-SQUARE VALUE

Observed frequency Expected frequency (O-E)2/E

31 37.92 1.26
- - -
- - -
41 34.76 1.12
7 6.32 .07
17 10.08 4.75
- - -
- - -
3 9.24 4.21
1 1.68 0.27
Total 11.68

Calculated value ∑(O-E)2/E

= 11.68
Table value = Degree of freedom (r-1) (c-1)
= (2-1) (5-1)
= 4 @ 5% significant level
= 7.92

Inference

Since calculated value more than table value null-hypothesis rejected

Conclusion

There is significant difference between gender and type of investments

in funds.
 SUGGESTIONS

1. Always keep in touch with the investor

2. In case of any new scheme have been introduced it must be made
known to customers at any cost.
3. Necessary financial advice has to be provided to the customer in
order to clear out his doubts, as it is difficult to understand certain schemes.
4. In case of any new scheme have been introduced it must be made
known to customers at any cost.
5. Proper steps have to be taken in preventing intermediaries between
the investor and the company, as there is much risk for customers of loosing
money.
6. Like other company our company should also provide online
treading and some research website.
7. They should also have to concentrate on individual
8. They should try to convert, as many sub broker’s as possible for
the development of the company in future for the 1st rank.
9. Some educational programs should be conducted.
10. I also recommend that to make advertisement that makes the
company famous and improve there standard.
 CONCLUSION

Indian industries are changing very fast with in mutual fund as they are
making a greater contribution in the service sector of our country. It is found that
they would make a growth of 40% with in few years that would make a stronger part
in the capital market also.

The mutual fund should provide continuous liquidity. Closed end schemes
should be listed on exchanges. For open-end schemes mutual fund shall sell an
repurchase unit at predetermined price on the net asset value and such price should be
published at least once in a week in both TVs media and papers.

Each scheme under the same management should have a clearly identified and
responsible fund manager.

Mutual fund must take delivery of scrips purchased and give delivery in the
case of scrips sold and in no case shall engage in short selling or carry
forward transactions or badla finance. The scraps purchased should be
transferred to the fund’s name and schemes also.
 QUESTIONNAIRE

PERSONAL PROFILE :

Name :

Gender : Male [ ] Female [ ]

Age : Below 25 [ ] 25-30 [ ] 31- 40 [ ]

41 – 50 [ ] Above 50 [ ]

Ed. Qualifications : School level [ ] UG [ ] PG [ ]

Professional [ ] Others [ ]

Occupation
Pvt employee [ ] Govt. Employees [ ] Business [ ]
Profession [ ] Others [ ]

Income level P.A

Below 1,00,000 [ ] 100,000 to 200,000 [ ]
200,0001 to 300,000 [ ] 3,00,000 to 4,00,000 [ ]
Above 4,00,000 [ ]

PROJECT PROFILE:

1. Are you a regular Investor

Yes [ ] No [ ]

2. What type of investment you prefer?

Short term investment [ ] Medium term investment [ ]
Long term investment [ ]

3. Please mention the source of investment advice

Own Decision [ ] Financial consultant
[ ]
Advisors [ ] Brokers [ ]
CA’s [ ] Friends / Relatives [ ]
Banks [ ] Others [ ]
4. Which of the following mutual funds you have invested?

Particulars Yes No Name of funds Schemes

Equity
Balanced
Income
Money Market
GILT
Monthly Income Plan
SIP
Liquid Funds
Equity Tax Savings

5. What are the various factors influencing to invest in mutual funds

Safety [ ] Liquidity [ ] Tax benefit [ ]
Service level [ ] Brand Image [ ] Diversified Risk [ ]
Convenience [ ] Capital appreciation [ ]

6. What is the risk tolerance level when you invest in Mutual funds?
High [ ] Low [ ] Medium [ ]

7. What are your suitable products when you invest in Mutual funds?
Bank [ ] FD [ ] Company [ ]
Equity funds [ ] Debt funds [ ]

8. What are the benefits you expect by investing in Mutual funds?

Liquidity [ ] Post tax returns [ ]
Diversification [ ] Tax free dividends [ ]

9. What general rule you adopt for investing in mutual funds?

Assess yourself [ ] Understanding where the money flows [ ]
Speculating [ ] Right funds [ ]
Right time to sell [ ] Doing home work [ ]
Getting advice [ ]

10. When do you withdraw from investing in Mutual funds ?

Not performing [ ] Changes in investment style [ ]
Fund expense ratio rise [ ] Fund manager changes [ ]

11. Which company’s fund you prefer?

HDFC [ ] Franklin Templeton Ltd., [ ] HSBC [ ]
SBI [ ] UTI [ ] ABN AMRO [ ]
ICICI [ ] Others [ ]
12. Rank the following mutual funds in a scale of 1 – 5
(Excellent – 1; Very Good – 2; Good– 3 Fair – 4;
Poor – 5)

UTI [ ] HDFC [ ] Franklin Templeton [ ]

Kotak [ ] ICICI [ ] SBI [ ] Reliance [ ]

13. Are you interested in investing in SIP (Systematic Investment Plan)?

Yes [ ] No [ ]

14. If yes the reasons for investing in SIP

Helping in investing disposable funds [ ]
Helpful in tuff economic situation [ ]
Helpful in reaching financial goals [ ]
Helpful in giving rupee cost averaging [ ]
Others _________________________

15. What are the various parameter you consider for investing in mutual funds
(Please rank)
Quick returns [ ] Diversification [ ] Liquidity [ ]
Tax reduction [ ] Safe investment [ ] Constant return [ ]

16. What are the services you expect from a fund house.
Advising investors [ ] Brand Image [ ] Grievance
handling [ ] Courteous services [ ] Package offers [ ]
Advertisements [ ] Promising high returns [ ]
Ensuring safety [ ]

17. Suggestions
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 BIBLIOGRAPHY

Author
Book Name Publish Place Edition Year
Name
Research Wishiwa New Delhi, Second
CR Kothari 1985
methodology Publication India Edition
S.P. Guptha Sulthan
Business New Delhi, Tenth revised
/ M.P. chand & 1992
statistics India edition
Guptha Sons
David J. Marketing Pentirhal of New Delhi,
Eighth edition 1996
luck business India India

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