A Study in Mutual Funds in India

CHAPTER 1
INTRODUCTION
A STUDY IN MUTUAL FUND IN INDIA WITH REFERENCE TO
ICICI PRUDENTIAL AMC & NJ WEALTH
1.1 INTRODUCTION OF FINANCE
Finance is often said as the management of money or “Funds” management. Modern

finance, however, is a family of business activity that includes the origination, marketing,
and the management of cash and money surrogates through a variety of capital accounts,
instruments, and the markets created for transacting and trading assets, and risks. Finance
is conceptualized, structured, and regulated by a complex system of power relations
within political economies across state and global markets.
DIFINITION OF FINANCE
“A process of organizing the flow of funds so that a business can carry its objectives in
the most efficient way”.
-KENNETH AND RONALD
“A study of money and how it is used. Finance considers the relationship of money to
time and risk. One of the main subset of finance is the study of credit and banking as this
involves money, time, and risk all together. Finance may deal with personal or corporate
issues, such as how will an individual or company acquires the money needed to perform
a certain act.”
-The Economist say
A branch of economics concerned with resources allocation as well as resources

management, acquisition and investment, finance deals with matters related to money
and the markets.
SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 1|Page

1.2 INTRODUTION TO MUTUAL FUNDS
Mutual fund is a trust that pools the savings of a number of investors who share a common
financial goal. This pool of money is invested in accordance with a stated objective. The
joint ownership of fund is thus “Mutual”, i.e. the fund belongs to all investors. The money
thus collected is then invested in capital market instruments such as shares, debentures
and other securities. The income earned through these investment and the capital
appreciation realized are shared by its unit’s holders in proportion 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. A mutual fund is an investment tool that allows small
investors access to a well-diversified portfolio of equities, bonds and other securities.
Each shareholder participates in the gain or loss of the fund. Unites are issued and can be
redeemed as needed. The fund’s Net Asset Value (NAV) is determined each day.

Investment in securities are spread across a wide cross-section of industries and sectors
and thus the risk is reduced.
CONCEPT OF MUTUAL FUND:
A mutual fund is a common pool of money into which investors place their
contributions that are to be invested in accordance with a stated objective. The ownership
of the fund is thus joint or “Mutual”, the fund belongs to all investors. A single investor’s
ownership of the fund is in the same proportion as the amount of the contribution made
by him or her bears to the total amount of the fund.
Mutual funds are trusts, which accept savings from investors and invest the same in
diversified financial instruments in terms of objectives set out in the trusts deed with the
view to reduce the risk and maximize the income and capital appreciation for distribution
for the members. A mutual fund is a corporation and the fund manager’s interest is to
professionally manage the funds provided by the investors and provide a return on them
after deducting reasonable management fees.
The objective sought to be achieved by mutual fund is to provide an opportunity for
lower income groups to acquire without much difficulty financial assets. They cater
mainly to the needs of the individual investor whose means are small and to manage
investors portfolio I a manner that provides a regular income, growth, safety, liquidity
and diversification opportunities.
DIFINITION:
“Mutual funds are collective savings and investment vehicles where savings
of small (or sometimes big) investors are pooled together to invest for their mutual benefit
and returns distributed proportionately”.
According to Kamm J.O., “Mutual fund is an open end investment company as an
organization formed for the investment of funds obtained from individuals and
institutional investors who in exchange for the funds receive shares which can be
redeemed at any time at their underlying asset values”.

Why Select Mutual Fund?
The risk return trade-off indicates that investors is willing to take higher risk
then correspondingly he can expect higher returns and vise versa if he pertains to lower
risk instruments, which would be satisfied by lower returns. For example, if an investors
opt for bank FD, which provide moderate return with minimal risk. But as he moves
ahead to invest in capital protected funds and the profit-bonds that give out more return
which is slightly higher as compared to the bank deposits but the risk involved also
increases in the same proportion.
Thus investors choose mutual funds as their primary means of investing, as mutual funds
provide professional management, diversification, convenience and liquidity. That
doesn’t mean mutual fund investment is risk free.
This is because the money that is pooled in, are not invested only in debts funds which
are less risker but are also invested in the stock markets which involves a higher risk but
can expect higher returns.
RETURN RISK MATRIX
Graph 1.1:There is assumed to be a roughly linear relationship between risk and return:

If you think about it, this is a tremendously simplifying shortcut. By assuming that markets
are efficient, we no longer have to worry about how to figure out the expected return —
rather, we rely on the fundamental belief that the risk of an investment determines its price
and therefore its return. Or in other words, expected return is assumed to be a clearly
defined function of volatility and nothing else.
CHARACTERESTICS OF MUTUAL FUNDS:
 Investors purchase mutual fund shares from the fund itself (or through a broker
for the fund) instead of from other investors on a secondary market.
 The price that investors pay for mutual fund shares is the fund's per share net
asset value (NAV) plus any shareholder fees that the fund imposes at the time of
purchase (such as sales loads).
 Mutual fund shares are "redeemable," meaning investors can sell their shares back
to the fund (or to a broker acting for the fund).
 Mutual funds generally create and sell new shares to accommodate new investors.
In other words, they sell their shares on a continuous basis, although some funds
stop selling when, for example, they become too large.
 The investment portfolios of mutual funds typically are managed by separate
entities known as "investment advisers" that are registered with the SEBI.
 Unit holders have a proportionate right in the beneficial ownership of the assets of
the scheme and to the dividend declared.
 Unit holders have a proportionate right in the beneficial ownership of the assets of
the scheme and to the dividend declared.
 They are entitled to receive dividend warrants within 42 days of the date of
declaration of the dividend.

ADVANTAGES OF MUTUAL FUND

1. Liquidity:
Unless you opt for close-ended mutual funds, it is relatively easier to buy and exit a
mutual fund scheme. You can sell your open-ended equity mutual fund units when the
stock market is high and make a profit. Do keep an eye on the exit load and expense ratio
of the mutual fund.
2. Diversification:
Equity mutual funds have their share of risks as their performance is based on the stock
market movements. Hence, the fund manager spreads your investment across stocks of
companies across various industries and different sectors called diversification. In this
way, when one asset class doesn’t perform, the other sectors can compensate to avoid
loss for investors.
3. Expert Management:
A mutual fund is good for investors who don’t have the time or skills to do the research
and asset allocation. A fund manager takes care of it all and makes decisions on what to
do with your investment.
4. Cost-efficiency
You can check the expense ratio of different mutual funds and choose the one with the
lowest expense ratio. The expense ratio is the fee for managing your mutual fund.
5. Convenience and Flexibility
You own just one security rather than many, yet enjoy the benefits of a diversified
portfolio and a wide range of services. Fund managers decide what securities to trade,
collect the interest payments and see that your dividends on portfolio securities are
received and your rights exercised. It also uses the services of a high Duality custodian
and registrar in order to make sure that your convenience remains at the top of our mind.
6. Safety
There is a general notion that mutual funds are not as safe as bank products. This is a
myth as fund houses are strictly under the purview of statutory government bodies like
SEBI and AMFI. One can easily verify the credentials of the fund house and the asset
manager from SEBI. They also have an impartial grievance redressal platform that works
in the interest of investors.

DISADVATAGES OF MUTUAL FUND
1. Costs of managing the mutual fund

The salary of the market analysts and fund manager comes from the investors along with
the operational costs of the fund. Total fund management charges are one of the first
parameters to consider when choosing a mutual fund. Higher management fees do not
guarantee better fund performance.
2. Exit Load
You have exit load as fees charged by AMCs when exiting a mutual fund. It discourages
investors from redeeming investments for some time. It also helps the fund manager
garner the required funds to purchase the appropriate securities at the right price and time.
3. Dilution
While diversification averages your risks of loss, it can also dilute your profits. Hence,
you should not invest in many mutual funds at a time.
1.3 HISTORY OF INDIAN MUTUAL FUND INDUSTRY
The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank and started its
operations in 1964 with the issue of units under the scheme US-64.
The history of mutual funds in India can be broadly divided into four distinct phases: -
Phase I: Establishment and Growth of Unit Trust of India (1964-87)
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the
RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI The first scheme launched by UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under management.

Phase II: Entry of Public Sector Funds (1987-93)
1987 marked the entry of non- UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National
Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90),
Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989
while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual
fund industry had assets under management of Rs.47, 004 crores.
Table 1.1: Showing Asset Under Management
Amount Asset Under Mobilization as % of Gross
1992-93
mobilized management domestic savings
UTI 11,057 38,247 5.2%
Public Sector 1,964 8,757 0.9%
Total 13021 47,004 6.1%
Phase III: Emergence of Private Sector Funds (1993-96)
With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund families. Also,
1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except LTI 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.

Phase IV: Growth and SEBI Regulation (1996-2003)
The mutual fund industry witnessed growth and stricter regulation from the SEBI
after the year 1996. The mobilization of funds and the number of players operation in the
industry reached new heights as investors started showing more interest in mutual funds.
Investors’ interests were safeguarded by SEBI and the government offered tax
benefits to the investors in order to encourage them. SEBI Regulations, 1996 was
introduced by SEBI that set uniform standards for all mutual funds in India. The Union
Budget in 1999 exempted all dividend incomes in the hands of investors from income
tax. Various Investor Awareness Programs were launched during this phase, both by
SEBI and AMFI, with an objective to educate investors and make them informed about
the mutual fund industry.
The UTI act was replaced and UTI was stripped of its special legal status as a trust
formed by an act of parliament. The primary objective behind this was to bring all mutual
fund players on the same level. UTI was re-organized in two parts:
1. The Specified Undertaking
2. The UTI Mutual Fund
Table 1.2: Showing Asset Under Management
Asset Under Management (Rs. Crores)
AS ON UTI PUBLIC SECTOR PRIVATE SECTOR TOTAL
31-March-99 53,320 8,292 6,869 68,472

Phase V: Since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29,835 crores as at the end of January
2003, representing broadly., the assets of US 64 scheme, assured return and certain other
schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under 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 assets under management 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 October 31, 2003, there were 31 funds, which
manage assets of Rs. 126726 crores under 386 schemes.
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of
the Unit Trust of India effective from February 2003. The Assets under management of
the Specified Undertaking of the Unit Trust of India has therefore been excluded from
the total assets of the industry as a whole from February 2003 onwards.
Currently Public Sector Banks like SBI, Canara Bank, Bank of India, and institutions like
IDBI, GIC, and LIC Foreign Institutions like Alliance, Morgan Stanley, Templeton and
Private financial companies like HDFC, Prudential ICICI, DSP Merrill Lynch,
Sundaram, and Kotak Mahindra etc. have floated their own mutual funds.
SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 10 | P a g e

Graph 1.2: The graphs indicates the growth of assets under management over the years,
GROWTH IN ASSETS UNDER MANAGEMENT

1.4 RGULATORY AUTHORITIES
To protect the interest of the investors, SEBI formulates policies and regulates the mutual
funds. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from
time to time. MF either promoted by public or by private sector entities including one
promoted by foreign entities is governed by these Regulations. SEBI approved Asset
Management Company (AMC) manages the funds by making investments in various
types of securities. Custodian, registered with SEBI, holds the securities of various
schemes of the fund in its custody.
According to SEBI Regulations, two thirds of the directors of Trustee Company or board
of trustees must be independent. The Association of Mutual Funds in India (AMFI)
reassures the investors in units of mutual funds that the mutual funds function within the
strict regulatory framework. Its objective is to increase public awareness of the mutual
fund industry. AMFI also is engaged in upgrading professional standards and in
promoting best industry practices in diverse areas such as valuation, disclosure,
transparency etc.
Graph 1.3: showing top MF AUM as of jun-21

1.5 TYPES OF MUTUAL FUNDS SCHEMES IN INDIA
Wide variety of mutual fund schemes exist to cater to the needs such as financial
position, risk tolerance and return expectations etc. Thus mutual fund has variety of
flavors, being a collection of many stocks, an investor can go for picking a mutual fund
might be easy. There are over hundreds of mutual funds schemes to choose from.
It is easier to think of mutual funds in categories, mentioned below:
Graph 1.1: Showing types of Mutual Funds

A) ON BASIS OF STRUCTURE
On the basis of structure mutual fund can be as below:
1. Open-Ended Scheme:
Most mutual funds are open-end funds, which means the fund sells and redeems its
shares. As more shares are sold, the fund grows. Sometimes open-end funds are closed
to new investors when the funds become too large to be managed effectively-though
current shareholders can continue to invest money. When a fund is closed this way, the
investment company offering the fund often creates a similar fund to capitalize on
investor interest.
2. Close-Ended Schemes:
Closed-end fund are traded on the major exchanges, as stocks are. There are a fixed
number of shares available because a closed-end fund raises its money all at once and
does not buy back shares investors want to sell. Closed-end fund shares often trade at a
discount, or less than their net asset value, but you may pay a premium, or more than the
NAV, if the fund is in demand. Their prices change constantly throughout the trading
day, unlike open-end funds whose prices are set only once, at the end of the day.
3. Interval Scheme:
Interval Schemes are that schemes, which combines the features of open-ended and
close-ended schemes. The units may be traded on the stock exchange or may be open for
sale or redemption during pre-determined intervals at NAV related prices.

B) ON BASIS OF NATURE
On the basis of nature Mutual Fund Schemes are classified into the following:
1. Equity Fund:
These funds invests in a maximum part of their corpus into equities holdings. The
structure of the fund may vary different for different schemes and the fund manager’s
outlook on different stocks. The Equity Funds are sub-classified depending upon their
investment objectives, as follows:
 Diversified Equity Funds
 Mid-Cap Funds
 Sector Specific Funds
 Tax Saving Funds(ELSS)
Equity investments are meant for a longer time horizon, thus equity funds rank
high on the risk return matrix.
2. Debt Funds
The objective of these funds is to invest in debt papers. Government authorities,
private companies, banks and financial institutions are some of the major issuers of debt
papers. By investing in debt instruments, these funds insure low risk and provide stable
income to the investors. Debt Funds are further classified as:
 Gilt Funds: Invest their corpus in securities issued by government, popularly
known as government of India debt papers. These funds carry zero default risk but
are associated with Interest Rate risk. These schemes are safer as they invest in
papers backed by government.
 Income Funds: Invest a major portion into various debt instruments such as bonds,
corporate debentures and government securities.

 MIPs: Invest maximum of their total corpus in debt instruments while they take
minimum exposure in equities. It gets benefit of both equity and debt market these
scheme ranks slightly high on the risk-return matrix when with other debt schemes.
 Short Term Plans (STPs): Meant for investment horizon for three to six months.
These funds primarily invest in short term papers like Certificate of Deposits (CDs)
and Commercial Papers (CPs). Some portion of the corpus is also invested in
corporate debentures.
 Liquid Funds: Also known as Money Market Schemes. These funds provides easy
liquidity and preservation of capital. These schemes invest in short term
instruments like Treasury Bills, inter-bank call money market, CPs and CDs.
These short term cash management of corporate houses and are meant for an
investment horizon of 1 day to 3 months. These schemes rank low on risk return
matrix and are considered to be the safest amongst all the categories of mutual
funds.
3. Balanced Funds:
As the name suggest they are a mix of equity and debts funds. They invest in both
equities and fixed income securities, which are in line with pre-defined investment
objectives of the schemes. These schemes aim to provide investors with the best of both
the worlds. Equity part provides growth and the debt part provides stability in returns.
C) ON BASIS OF INVESTMENT OBJECTIVES

On the basis of investment objectives, Mutual Fund Schemes are the following:
1. Growth Schemes:
Growth Schemes are also known as equity schemes. The aim of these schemes is
to provide capital appreciation over medium to long term. These schemes normally invest
in a major part of their fund and equities and are willing to bear short term decline in
value for possible future appreciation.

2. Income Schemes:
Income Schemes are also known as debt schemes. The aim of these schemes is 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.
3. Balanced Schemes:
Balanced Schemes aim to provide both growth and income by periodically
distributing a part of the income and capital gains they earn. These schemes invest in both
shares and fixed income securities, in the proportion indicated in their offer documents
(normally 50:50).
4. Money Market Schemes:

Money Market 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, certificate of deposit, commercial paper and inter-bank call money.
5. Load Funds:
A Load Fund is one that charge a commission for entry or exit. That is, each time
you buy or sell units in the fund, a commission will be payable. Typically entry and exit
loads range from 1% to 2%. It could be worth paying the load, if the fund has a good
performance history.
6. No-Load Funds:
A No-Load Fund is one that does not charge a commission for entry or exit. That
is, no commission is payable on purchase or sale of units in the fund. The advantage of a
no load fund is that the entire corpus is put to work.

D) OTHER SCHEMES:
Some of other Mutual Funds Schemes are as follow:
1. Tax Saving Schemes:
Tax saving schemes offers tax rebate to the investors under tax laws prescribed
from time to time. Under sec.88 of the Income Tax Act, contributions made to any Equity
Linked Savings Schemes (ELSSs) are eligible for rebate
2. Index Schemes:
Index schemes attempt to replicate the performance of a particular index such as
the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only those
stocks that constitute the index. The percentage of each stock to the total holding will be
identical to the stocks index weightage. And hence, the return from such schemes would
be more or less equivalent to those of the index.
3. Sector Specific Schemes:

These are the funds/schemes which invest in the securities of only those sectors
or industries as specified in the offer documents, e.g. Pharmaceuticals, Software, Fast
Moving Consumer Goods (FMCG), Petroleum Stocks, etc. The returns in these funds are
dependent on the performance of the respective sectors/industries. While these funds may
give higher returns, they are more risky compared to diversified funds. Investors need to
keep a watch on the performance of those sectors/industries and must exit at an
appropriate time.

PERFORMANCE MEASURES OF MUTUAL FUNDS
Return alone should not be considered as the basis of measurement of the performance
of a mutual fund scheme, it should also include the risk taken by the fund manager
because different funds will have different levels of risk attached to them. Risk associated
with a fund, in a general, can be defined as variability or fluctuations in the returns
generated by it. The higher the fluctuations in the returns of a fund during a given period,
higher will be the risk associated with it. These fluctuations in the returns generated by a
fund are resultant of two guiding forces. First, general market fluctuations, which affect
all the securities present in the market, called market risk or systematic risk and second,
fluctuations due to specific securities present in the portfolio of the fund, called
unsystematic risk.
The Total Risk of a given fund is sum of these two and is measured in terms of standard
deviation of returns of the fund. Systematic risk, on the other hand, is measured in terms
of Beta, which represents fluctuations in the NAV of the fund vis-à-vis market. The more
responsive the NAV of a mutual fund is to the changes in the market; higher will be its
beta. Beta is calculated by relating the returns on a mutual fund with the returns in the
market. While unsystematic risk can be diversified through investments in a number of
instruments, systematic risk cannot. By using the risk return relationship, we try to assess
the competitive strength of the mutual funds vis-à-vis one another in a better way.
In order to determine the risk-adjusted returns of investment portfolios, several eminent
authors have worked since 1960s to develop composite performance indices to evaluate
a portfolio by comparing alternative portfolios within a particular risk class. The most
important and widely used measures of performance are:
 The Treynor Measure
 The Sharpe Measure
 Jenson Model
 Fama Model

CHAPTER 2
RESEARCH DESIGN

2.1 RESEARCH METHODOLOGY
This report is based on primary as well as secondary data, however primary data
collection was given more importance since it is overhearing factor in attitude studies.
One of the most the most important usage of methodology is that it helps in identifying
the problem, collecting, analyzing the required information data and providing an
alternate solution to the problem. It also helps in collecting the vital information that is
required by the top management to assist them for the better decision making both day to
day decision and critical ones.
2.2 OBJECTIVES OF THE STUDY
1. To find out the level of awareness of mutual funds among financial advisors.
2. To find out how many investment advisors are interested in dealing of Mutual
Funds.
3. To find out the Preference of the investors for Asset Management Company.
4. To know the preference for the portfolios.
5. To find out why one has invested or not invested in NJ Wealth and ICICI Prudential
AMC
6. To find out what should do to boost the Mutual Fund Industry
7. To find out most preferred Channel.

2.3 SCOPE OF THE STUDY
The researched was carried out in Bengaluru and the study of this research is limited and
bounded only for ICICI Prudential and NJ Wealth. Situation and process might vary at
other location and other times.
The study will help to know the preference of the customers, which company, portfolio,
mode of investment, and option for getting return and so on they prefer. This project
report may help the company to make further planning and strategy.
2.4 MANAGERIAL USEFULLNESS OF STUDY
 Advisors knowledge about Mutual Funds

 Advisors interest in getting knowledge of Mutual Funds
 Advisors willingness to deal in Mutual Funds with ICICI prudential and NJ Wealth
TYPES OF RESEARCH AND DESIGN
A research design is a pattern or an outline of a research projects working. It is the

statement of only the essential elements of the study, those that provides the basic
guidelines for the details of the project. It comprises a series of prior decision making that
taken together provide master plans for executing a research project.
A research design serves as a bridge between what has been established i.e. the research
objectives and what is to be done, in conduct of the study to relish those objectives. If
there were no research design, the research would have only foggy notions as about what
is to be done.
This report contains the following research process:
 Survey and Exploratory Research

Exploratory Research is a research conducted for a problem that has not been studied
more clearly, intended to establish priorities, develop operational definitions and improve
the final research design.
Survey is defined as the process of conducting research using surveys that are sent to
survey respondents. The data collected from surveys is the statistically analyzed to draw
meaningful research conclusions.
2.5 DATA SOURCES
1. Primary data
Primary data has been collected through-
 Direct communication with the advisors.

 Questionnaire
2. Secondary Data
Secondary data includes information regarding present market scenario, information

regarding Mutual Funds and competitors.
This information is collected by-
 Internet
 Magazines
 Newspapers
 Books

2.6 LIMITATION OF THE STUDY
 Some of the persons were not so responsive.

 Some respondents were reluctant to divulge personal information which can
affect the validity of all responses.
 Properly convincing people to invest in Mutual Funds is challenging.
 The research is confined to a particular region.
 Results can’t represent the whole market.

CHAPTER 3
INDUSTRY PROFILE

3.1 HISTORY
ICICI Prudential Asset Management Company Ltd. is a leading asset management

company (AMC) in the country focused on bridging the gap between savings &
investments and creating long term wealth for investors through a range of simple and
relevant investment solutions.
The AMC is a joint venture between ICICI Bank, a well-known and trusted name in
financial services in India and Prudential Plc, one of UK’s largest players in the financial
services sectors. Throughout these years of the joint venture, the company has forged a
position of pre-eminence in the Indian Mutual Fund industry.
The AMC manages significant Assets under Management (AUM) in the mutual fund
segment. The AMC also caters to Portfolio Management Services for investors, spread
across the country, along with International Advisory Mandates for clients across
international markets in asset classes like Debt, Equity and Real Estate.
The AMC has witnessed substantial growth in scale; from 2 locations and 6 employees
at the inception of the joint venture in 1998, to a current strength of 1855 employees with
a reach across over 350 locations reaching out to an investor base of 7.4 million investors
(as on April 30, 2021). The company’s growth momentum has been exponential and it
has always focused on increasing accessibility for its investors.
Driven by an entirely investor centric approach, the organization today is a suitable mix
of investment expertise, resource bandwidth and process orientation. The AMC
endeavors to simplify its investor’s journey to meet their financial goals, and give a good
investor experience through innovation, consistency and sustained risk adjusted
performance.

ICICI Prudential Mutual Fund offers a wide range of retail and corporate investment
solutions across various asset classes - Equity, Debt, Hybrid, Solution Oriented and
Others
The Fund House has continuously aimed to provide investors with financial solutions to
aid them in achieving their lifecycle objectives. It has constantly been on the forefront of
innovation and has introduced various products aligned to meet customer needs, leading
to a well-diversified portfolio of around 68 mutual fund schemes, across equity, debt,
hybrid, solution oriented and others. The success of the various endeavors is evident in
the mutual fund investor base which has witnessed tremendous growth over the years. As
of March 31, 2019, the investor base for the AMC stood at 4 million investors
ICICI Prudential Mutual Fund gained investor trust by managing funds as per its
investment objectives and have been able to deliver superior risk adjusted returns. The
consistent long term performance was achieved on the strength of fundamentals, process
driven investment approach with enough flexibility for the fund managers to manage their
funds in their respective unique style and insight.
The fund house over the last 20 years has emerged as a leading investment solution
provider in India and has always aimed to fulfill its fiduciary responsibility of managing
investor's wealth with prudence and due diligence.
3.2 VISSION AND MISSION
 We will leverage our people, technology, speed and financial capital to:
 Be the banker of first choice for our customers by delivering high quality, world
class products and services.
 Expand the frontier of our business globally.
 Play a proactive role in the full realization of India’s potential.
 Maintain a healthy financial profile and diversify our earnings across the business.
 Maintain high standard of governance and ethics.

 Contribute positively to the various countries and markets in which we operate.

 Create value for our stakeholders.
3.3 LEADERSHIP
A) Management
 Mr. Nimesh Shah - Managing Director & CEO

 Mr. Sankaran Naren - Executive Director & CIO
 Mr. B Ramakrishna - Chief Financial Officer
 Mr. Amar Shah - Head Retail and Institutional Business
 Mr. Abhijit Shah - Head Marketing, Digital and Customer Experience
 Mr. Amit Bhosale - Head Risk Management
 Mr.Vikas Singhvi - Head Operations and Technology
 Mr. Nikhil Bhende - Head Human Resources
 Mr. Vivek Sridharan - Head Institutional Business
 Mr. Aniruddha Chaudhuri - Head Retail Business
 Mr. Suresh Subramanian - Head Operations
 Mr. Adil Bakhshi - Head Public Relations and Communication
 Mr. Rakesh Shetty - Head Compliance
B) Investment Management
 Mr. Sankaran Naren - Executive Director & Chief Investment Office

 Mr. Rahul Goswami - Chief Investment Officer, Fixed Income
 Mr. Rahul Rai - Head Real Estate Business

C) Board of Directors
 Mr. Anup Bagchi-Executive Director on the Board of ICICI Bank since

01/02/2017.
 Mr. Sandeep Batra-Executive Director on the Board of ICICI Bank since
December 23, 2020.
 Mr. Seck Wai-Kwong-Chief Executive Officer of Eastspring Investments.
 Mr. Ved Prakash Chaturvedi-Engineer and an MBA from IIM Bangalore.
 Mr. Naved Masood-was in the Indian Administrative Service.
 Ms. Vibha Paul Rishi-started her career with Tata Administrative Service.
 Mr. Antony Jacob-Chief Executive Officer at Apollo 24|7.
 Mr. Sankaran Naren-Associated with the AMC since October 2004.
 Mr. Nimesh Shah-Joined ICICI Prudential AMC (IPAMC) in 2007 as MD &
CEO.
D) Directors of the Trustee Company
 Mr. P. H. Ravikumar-is a commerce graduate and is an associate of Indian

Institute of Bankers
 Mr. Jyotin Mehta-holds a Bachelor’s Degree in Commerce from University of
Bombay
 Mr. Ranganayakulu-was the Executive Director (Legal), Securities and
Exchange Board of India from August 14, 2008 - August 11, 2017
 Mr. Pramod Rao-joined ICICI Bank as its Group General Counsel on August 16,
2018
 Mr. Lakshman Kumar-has extensive leadership experience of over 30 years at
Board/Executive Management level of multinational financial services businesses

3.4 OUR BUSINESS
1: Mutual Fund
The Fund House has continuously aimed to provide investors with financial
solutions to aid them in achieving their lifecycle objectives. It has constantly been on the
forefront of innovation and has introduced various products aligned to meet customer
needs, leading to a well-diversified portfolio of around 68 mutual fund schemes, across
equity, debt, hybrid, solution oriented and others. The success of the various endeavors
is evident in the mutual fund investor base which has witnessed tremendous growth over
the years. As of March 31, 2019, the investor base for the AMC stood at 4 million
investors.
2: ICICI Prudential Portfolio Management Services
ICICI Prudential Portfolio Management Services (PMS) enjoys a rich parentage of

two large organizations. ICICI Bank Ltd which is India's largest private sector bank in
addition to being one of the most trusted brands in financial services and Prudential Plc
UK, an international financial services company, with significant operations in Asia, US
and UK.
3: Real Estate
10 years of real estate investing experience across diversified asset class. Executed
over 65 transactions having realized more than 40 Billion through more than 40+
completed and 12+ partial exits. Headed by experts having over 60 years of cumulative
real estate investment experience.
4: Advisory Services
ICICI Prudential Asset Management runs a successful international business
franchise through its offshore advisory division, which advises India only funds and
segregated mandates for clients domiciled in jurisdictions spanning Europe, Japan,

Middle East, Taiwan & Singapore.

3.5 PARENT COMPANY AND SPONSORS
1: ICICI Bank
ICICI Bank is India's leading private sector bank with consolidated total assets at Rs.
14.76 trillion. The bank currently has a network of 5,288 branches and 15,158 ATMs
across India. (Data as on September 30, 2020
2: Prudential plc
Prudential plc is an Asia-led portfolio of businesses focused on structural growth markets.
The business helps individuals to de-risk their lives and deal with their biggest financial
concerns through life and health insurance, and retirement and asset management
solutions. Prudential has 20 million customers, and is listed on stock exchanges in
London, Hong Kong, Singapore and New York.
The Prudential plc Group consists of Prudential Corporation Asia, Jackson Holdings LLC
and Prudential Africa.
3: Prudential Corporation Asia (PCA)
Prudential is a leading life insurer that spans 15 markets in Asia, covering Cambodia,
China, Hong Kong, India, Indonesia, Laos, Malaysia, Myanmar, Philippines, Korea,
Singapore, Taiwan, Thailand and Vietnam. Prudential has a robust multi-channel
distribution platform providing a comprehensive range of savings, investment and
protection products.
East spring Investments manages investments across Asia on behalf of a wide range of
retail and institutional investors, with about half of its assets sourced from life and
pension products sold by Prudential plc. It is one of the region’s largest asset managers
with a presence in 11 major Asian markets as well as distribution offices across North
America and Europe. It has USD 248 billion in assets under management (as on
December 31, 2020), managing funds across a range of asset classes including equity,
fixed income, multi-asset, quantitative and alternative strategies.
4: Jackson Holdings LLC
Jackson is one of the largest life insurance companies in the US, providing retirement
products and income strategies aimed at helping Americans pursue financial freedom
for life. Jackson is also one of the top three providers of variable annuities in the US.
Founded over 50 years ago, Jackson has a long and successful record of providing
advisers with the products, tools and support to design effective retirement solutions for
their clients.

3.6 COMPETITORS INFORMATION
1: Funds India
. An FOF Scheme of a primarily invests in the units of another Mutual Fund scheme.
2: SBI Mutual Fund

SBI Mutual Fund was incorporated in 1987 with its corporate head office located in
Mumbai, India.
3: Mahindra Manulife Mutual Fund
The joint venture of Mahindra & Mahindra Financial Services Limited and Manulife
Investment Management (Singapore)
4: Axis Mutual Fund
Axis Mutual Fund launched its first scheme in October 2009 since then Axis Mutual fund
has grown strongly.
5: BNP Paribas Mutual Fund
BNP Paribas Mutual Fund is part of a global network seeking to combine in-depth local
market knowledge with the expertise gained from managing investments throughout
numerous market cycles and conditions across the world.

6: HDFC Mutual Funds

Started in 1999, One of India’s largest fund manager with 4.2 Trillion in asset under
management.
7: Reliance Mutual Fund

Nippon India Mutual Fund (Reliance Mutual Fund) is one of India’s top asset
management companies.
8: Kotak Mutual Fund

Kotak Mahindra is a banking and financial firm that offers deposit accounts, loans and
investment services.
PLAYERS IN INDUSTRY
Top Asset Management Companies in the industry are:
1. HDFC Mutual Fund
2. Aditya Birla Sun Life Mutual fund
3. Reliance Mutual Fund
4. SBI Mutual Fund
5. L&T Mutual Fund
6. Kotak Mahindra Mutual Fund
7. Franklin Templeton Mutual Fund

3.7 SWOT ANALYSIS OF THE ORGANIZATION
SWOT analysis is a tool auditing an organization and its environments. It is the first stage
of planning and helps markets to focus on key issues. SWOT stands for Strength
weakness opportunity and threats. Strength and weakness are internal factor.
Opportunities and threats are external factors.
STRENGHT
 Company with Low Debt
 ICICI Prudential AMC funds over INR 4, 28,085.84 Crores of mutual funds asset
under advice
 Strong momentum: Price above short, medium and long term moving average
 ICICI Prudential AMC is a dominant player in the Indian Mutual Fund
distribution business with over two decades experience.

 ICICI Prudential AMC has strong 360* degree support which makes it different
from its competitors.
WEAKNESS
 Degrowth in revenue and profit
 Promoter decreasing their shareholding
 Poor cash generated from core business- Declining Cash Flow from operations for
last 2 years.
 ICICI Prudential AMC is only dominant in mutual funds. They have also focused
on other financial instrument.
OPPORTUNITIES
 They have very wide scope in financial market.
 ICICI Prudential AMC can utilize the dominant position. It has optimally used
the huge network of its partners.
 ICICI Prudential can use its network of partners in selling insurance, even
company can jump shares trading business.
THREATS
Threat for the company can be considered as growing competition, change in
government rules which is negative for stock market low prices of local brokers low
awareness of computer in public. The other threat of the new entrants in the market will
take up the share from them. Now a days many of the financing companies are entering
the market which is a biggest threat for the banks as they provide the finance to the to the
customers at very less rates and also at the quickest.

3.8 HISTORY
NJ Group is a leading player in the Indian financial services industry known for its strong
distribution capabilities. The journey of NJ began in 1994 with the establishment of NJ
India Invest Private Limited, the flagship company, to cater to investor needs in the
financial services industry. Today, the NJ Wealth Distributor Network, earlier known as
the NJ Fundz Network, started in 2003 is among the largest networks of financial
products distributor in India.
Started in 2003, NJ Invest Private Ltd seeks to reach out the common man and extend
the opportunity to create wealth through an empowered network of financial product
distributors – the NJ Wealth Partners. To its Partners, NJ wealth provides a full service,
comprehensive business platform with end-to-end solutions critical for success in
financial products distribution practice. With its compelling set of offerings covering
every area of distribution practice, NJ Wealth has managed to successfully transform the
lives of many small and big distributions.
The common man, NJ Wealth offers a comprehensive wealth management platform with
a wide choice of financial and non-financial products. Baked by high level of excellence
in operational service standards, NJ Wealth offers customers of its Partners, with solution
that truly make a difference.
Driven by the strong vision of creating Wealth and Transforming Lives, NJ Wealth’s
constant endeavor is to build on the ideas that are meaningful and effective in scaling
business challenges, seizing available opportunities and serving the interest of customer.

The NJ Wealth Family has grown steadily and today it has over 40,000 NJ Wealth
partners, spread across 95 branches in 19 States in India with over 18 lacs+ investors,
and over 1,07,400 Crore +*crores of mutual fund assets under advice.
NJ Group is based out of Surat in Gujarat (India) and has presence in 95+ locations in
India and has over 1475+ employees.
An evolving, emerging & enterprising group with its roots in the financial services sector
and today expanding into newer horizons with great passion.
Irrespective of the numbers though, it is trust in us which fuels the passion for creating
solutions with excellence that touch many lives, day after day.
NJ Wealth-Financial Products Distributors Network has a strong lineage as a part of NJ
Group. NJ India Invest Pvt. Ltd. is today the flagship company of NJ Group, the journey
of which began in 1994.The idea then was to cater to the growing needs of customers in
an evolving financial services industry. Today, with nearly two decades of untiring
efforts, NJ has not only managed to build a strong business, but has also earned the trust
and respect of various stakeholders in the industry. The financial products distribution
business of NJ Wealth Network, formerly known as NJ Funds Network, lies at the
heart of NJ Group.
Over the last few years, NJ Group has expanded into other businesses, and today it also
has presence in businesses of asset management, real estate, insurance broking, training
& development and technology. NJ Wealth leverages from opportunities and services
offered by the group's other businesses to seamlessly add more value to its customers. NJ
Wealth also draws great inspiration from the vision of NJ Group, which is to be leaders
in all its businesses driven by customer satisfaction, commitment to excellence and
passion for continued value creation for all stakeholders.
OBJECTIVES
NJ believes that trust is key for sustainability of any business. As a part of the NJ Group,
NJ Wealth has a very strong philosophy of corporate and self-governance. We believe
that we have the great duty towards to all our stakeholders-employees, customers and
vendors to business partners, authorities, and the community at large, NJ Wealth is
committed to ensure that t6he interest of all stakeholders are best served with true spirit
of prudent, rationale and ethical business practice.
As part of NG Groups, NJ Wealth has strong policy, process, system oriented culture and
practices, which collectively cover various aspects of governance, NJ Wealth is also
committed to follow appropriate due diligence, compliance and risk management
practices in all its activities. It is committed to provide its customers with highest feasible
quality of services. The customers are requested to raise any complaint or grievance
through right channels communicated for quick resolution.
3.9 VISSION
NJ Wealth has the vision of Creating Wealth and Transforming Lives by bringing
financial inclusion and easy access to investment opportunities to the masses. Underlying
the philosophy, is our conviction in sound long-term, investment management principles
with asset allocation at its core. As part of the NJ Group, NJ Wealth also has a very strong
philosophy towards strong corporate and self-governance.
The vision of the group is to be leaders in businesses driven by customer satisfaction,
commitment to excellence and passion for continued value creation for all stakeholders.
This vision has helped us grow and build the trust of our customers and associates which
is at the cornerstone of everything we do. Trust is also at the heart of our success and the
driver for passion for our success.
MISSION
The team at NJ Wealth works with great energy and passion to keep the customer's
interest supreme by exceling in all areas of operations. NJ Wealth strives to earn and build
upon the trust and respect of its employees, customers, Partners, regulators, industry
members and the community at large, by following its vision and philosophy with ethics,
commitment, rationale and focus.

3.10 MNAGEMENT TEAM

Mr. Neeraj Choksi & Mr. Jignesh Desai (R)
are the two first generation entrepreneurs who
began the journey of NJ in 1994. The
promoters of NJ Group were friends since their
college years and the bond between Mr. Neeraj
Choksi & Mr. Jignesh Desai has been
instrumental in the success of NJ.
Driven by their passion for financial well-
being of customers & the mission for
transforming lives, the promoters started NJ
Wealth, previously known as - NJ Fundz
Network, in the year 2003. With their strong
vision and guidance, NJ Wealth Financial
Products Distributors Network is on the
forefront of innovation & growth. Both believe that the trust of our distributors and
investors has played a very important role in NJ's journey, and in every step that we have
taken. The desire is to help the masses access the best of the financial products & services
and thereby positively transform their lives. This is also the responsibility and the vision
that the entire team at NJ believes in.
Leadership Team
The senior leadership team at NJ brings together a team of people with wide experience
and knowledge in the financial services domain. The key senior members of NJ are:
Sales team: Product Team
 Mr. Misbah Baxamusa Mr. Husaini Kanchwala

 Mr. Manish Gadhvi
 Mr. Prashant Kakkad
 Mr. Safaraz Patel
 Mr. Tushar Bhajantri
 Mr. Vinay Baraiya

3.11 PRODUCT BASKET

1. Mutual Funds:
NJ has tie-ups with all Asset Management Companies (AMCs) and all mutual funds
schemes are part of the product basket. Eligible Partners can offer any mutual fund
scheme to their client from day one of their association with NJ. The customers have a
single window access to any mutual fund product / scheme they would like to access.
2. Capital Market – Direct Equity & ETFs:

NJ is a SEBI registered member for NSE & BSE and capital markets. Clients of NJ E-
Wealth A/c service have access to capital market products of direct equity stocks and
Exchange Traded Funds (ETFs). One can undertake transaction online or through Call &
Transact facility.
3. Fixed Income:
NJ has also entered into tie-ups with leading companies / institutions for distribution of
fixed income products, namely Non-Convertible Debentures, Infrastructure / RBI Bonds,
Company Deposits, etc. The availability of fixed income products in addition to mutual
funds, makes the product basket even more attractive.
4. Portfolio Management Services (PMS):

NJ has its own PMS offerings with NJ Asset Management Private Limited, a group
company, being a PMS Service provider. The existing strategies have mutual funds as
the underlying, one of very few in the industry. In addition to this, PMS products by other
leading PMS Service providers also regularly form a part of the product basket with
Partners. Clients can subscribe to the PMS products of NJ / other providers through their
Partners. Access to NJ PMS products are exclusively available for NJ Partners only.
5. Real Estate:
In addition to the investment products, NJ Partners and clients also have access to the real
estate properties across India. NJ regularly enters into tie-ups with leading developers in
India for distribution of their products. In addition to this, exclusive projects handled by
NJ Realty are available to clients only through eligible NJ Partners. The exclusive
projects are those where NJ Realty is actively engaged in project management, execution
and/or distribution.

3.12 FUNCTIONS
1. Strong Linage and Commitment to the Business

Since its birth in 1994, NJ Groups has grown into a diversified business group in the last
21 years. The business of financial product distribution is the flagship business of the
group and it remains at the heart of NJ Group. The management and team at NJ share
have very strong vision for the business and are committed to further strengthen and
expand. NJ Wealth also gets complemented and benefited with the growing presence of
NJ Group in other business.
2. Customer Centric Approach

The work culture of NJ Wealth is geared towards helping customers win with solutions
covering all critical areas of success. Be it NJ Wealth Partners or their customers, NJ
continuous focus has been to design, deliver and enrich our value proposition in areas of
product & service offerings, operational excellence, service quality, technology,
governance and more. The business and wealth management ideas and strategies
propagated at NJ are also centered on sound, proven principles that serves the best interest
of customers. With the continued trust of our customers, we are confident to steadfastly
maintain the course of building strong customer relationships and experience.
3. Access to Multiple Products, Single Window Solution

NJ provides easy access to a wide range of financial and non-financial products in diverse
asset classes. The products are available to the customers of NJ Partners. The product
basket available includes all mutual funds schemes; direct equity,
ETFs, PMS and fixed income products like banks, NCDs, Company Deposits, and
real estate properties. In addition to products, NJ also offers the services of Demat and
Trading account with online and Call & Transact facility andalso mobile trading service
in mutual funds. The product & service basket is enough to meet the needs and build the
entire portfolio for any retail, HNI or corporate client.

4. Effect use of technology

At NJ we have constantly tried to see technology as an enabler to meaningfully deliver
the most critical and relevant needs first. With our rich experience, understanding and an
in-house team we have custom build our entire platform to reach customer needs. Our
integrated technology setup covers a gamut of business areas including customer
offerings like online desk to the critical operations process and all important areas of
business management. NJ also has adopted global standards and the best practices in
information security, customer privacy and network, infrastructure management. The
effective use of technology has helped us to manage the business growth and deliver
solution in a reliable, effective and secured fashion.
5. Controls Through Well Defined Process

NJ wealth also governance, compliance and risk management as equally important
business areas in addition to customer solutions and operational excellence. The culture
at NJ has evolved over the years to be strong policy, process and system oriented. We
have put strong internal controls and monitoring mechanisms in place on one hand, while
removed people dependency and atomized processes on the other. We continue to evolve
our control and processes to mitigate business risk, offer standard services, enhance
productivity and improve customer experience and satisfaction.

3.13 COMPETITORS INFORMATION
1. Karvy Private Wealth

Karvy Private Wealth is a private wealth management firm that offers advice on wealth
management and financial planning in India.
2. JM Financial
JM Financial provides financial solutions and services in investment banking,
institutional equity sales, trading and other financial sectors.
3. Share Khan
Share khan is an online portal for trading, investments and stock marketing.
4. Kotak Mahindra
Kotak Mahindra is a banking and financial firm that offers deposit accounts, loans and
investment services.
5. Motilal Oswal
Motilal Oswal provides wealth management, retail broking and distribution, institutional
broking, asset management and investment banking services.

3.14 SWOT ANALYSIS OF THE ORGANIZATION
SWOT analysis is a tool auditing an organization and its environments. It is the first stage
of planning and helps markets to focus on key issues. SWOT stands for Strength
weakness opportunity and threats. Strength and weakness are internal factor.
Opportunities and threats are external factors.
STRENGHT
 NJ India invest has given very good research support to his advisors.
 NJ India is a dominant player in the Indian Mutual Fund distribution business with
over a decade experience.
 NJ India Invest has tied up with almost all AMC’s and with 16 insurance
companies.
 NJ Funds over INR 15000+ Crores of mutual funds asset under advice.
 NJ has strong 360* degree support which makes it different from its competitors.

WEAKNESS
 The first and foremost lacking element in the company is that the awareness
about company is very less in the market.
 NJ Funds is only dominant in mutual funds. They have also focused on other
financial instrument.
OPPORTUNITIES
 They have very wide scope in financial market.

 NJ India Invest can utilize the dominant position. It has optimally used the huge
network of its partners.
 NJ can use its network of partners in selling insurance, even company can jump
shares trading business.
THREATS
 Prudent Private Limited
 Blue Chip Private Limited

CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION

DATA ANALYSIS AND INTEREPRETATION
The data collected through the research has been analyzed in such a way so as to meet
the sequence of objectives. This chapter discuss hoe the data obtained was tabulated and
analyzed in order to draw inferences.
Data was grouped into categories or classes. In other words, in statistical terms it was
tabulated. The objectives was to organize the information and prepare a summary which
would highlight its salient features.

1: Do you invest your savings in mutual Funds?

Table 4.1: Showing Investment Willingness
Investment Number of Respondents
Yes 68
No 32
Total 100
Chart 4.1: Showing Investment Willingness along Percentage
Investment Willingness
32%
68%
YES NO
Interpretation: From the above table and pie chart we observe that a large number of
68% of all the respondents invest in various mutual funds. However, it can be clearly
stated that 32% of our total respondents do not invest in any mutual fund at all for
various reason mostly because of no awareness of the Mutual Fund trading or not
having the basic knowledge how to invest in mutual funds.

2: Do you have complete Information about mutual fund?

Table 4.2: Showing the Awareness Level of the respondents
Information Number of Respondents
Yes 56
No 24
Not Much 20
Total 100
Chart 4.2: Showing the Awareness Level of the respondents
Awareness Level
20%
56%
24%
YES NO NOT MUCH
Interpretation: From The above table we observe that 56% of all the respondents have
complete information about mutual funds. We have got 24% of our total respondents
who are not aware of and do not have complete information of mutual fund at all.
However, 20% of our total respondents have some information of mutual fund. So
according to above data almost 80% of the respondents are aware and have the
information about Mutual Funds.

3: Are you an investor who is interested in getting good deduction from tax?
Table 4.3: Showing the Respondents Interest in Tax Deduction
Information Number of Respondents
YES 89
NO 11
Total 100
Chart 4.3: Showing the Respondents Interest in Tax Deduction
Tax Deduction
11%
89%
Yes No
Interpretation: Here it can be clearly stated that 89% of all the respondents are
interested in getting good deduction from tax by the help of Mutual Funds. We have
got 11% of our total respondents who are not interested in getting good deduction from
tax at all.
From above table the number of persons who are interested in getting good deduction
from tax is almost nine times more than persons who are not interested at all it shows
the awareness of persons about mutual funds is more.

4: Do you know Mutual Fund is a good instrument of tax saving?

Table 4.4: Showing awareness of respondents regarding Tax Saving
YES 58
NO 25
Not Much 17
Total 100
Chart 4.4: Showing awareness of respondents regarding Tax Saving
Tax Saving
17%
25% 58%
YES NO Not Much
Interpretation: Here we observe that 58% of all the respondents have the awareness
about mutual fund being a good instrument of tax saving and tax deduction. We have
got 25% of our total respondents who are not aware about mutual fund being a good
instrument of tax deduction and tax saving. We also got 17% of the respondent who
are less aware of tax saving in Mutual Fund.

5: Among which of the following income group you fall?

Table 4.5: Showing respondents income per year
Income Group Number of Respondents
Up to 1,00,000 20
1,00,001 to 2,00,000 50
2,00,001 to 3,00,000 17
3,00,001 & more 13
Total 100
Chart 4.5: Showing respondents income per year
Income
13%
20%
17%
50%
Upto 1,00,000 1,00,001 to 2,00,000 2,00,001 to 3,00,000 3,00,001 & MORE
Interpretation: We observe that 20% of all the respondents fall under income group
of less than 1, 00,000 income per year.
We have got 50% of our total respondents fall under income group of 1,00,001 to
2,00,000 and 17% of our respondents fall under income group of 2,00,001 to 3,00,000
while 13% of our respondents fall under income group of 3,00,001 and more.

6: Which are the investments you hold at present?

Table 4.6: Showing respondents Investment Holding at present
Mutual Fund 30
Equity Market 54
Real Estate 18
Insurance 45
Government Bonds 0
Bank FD 42
Post Office 26
Chart 4.6: Showing respondents Investment Holding at present
Investment
12% 14%
20%
25%
21% 8%
Mutual Fund Equity Market Real Estate Insurance Bank FD Post Office Govt Bonds
Interpretation: We observed that many respondents invest in more than one

instrument of saving. The people are not channelizing all of their savings in just one
Investment Avenue but they invest in various investment instruments avenues like, real
estate, insurance and others for getting higher return on taking risk, tax deduction,
wealth creation and etc.

7: What is the basic purpose of your investment?

Table 4.7: Showing respondents Purpose of Investment
Investment Purpose Number of Respondents
Higher Return 20
Tax Benefit 18
Saving 45
Wealth Creation 10
Risk Diversification 7
Total 100
Chart 4.7: Showing respondents Purpose of Investment
Investment Purpose
7%
20%
10%
18%
45%
higher Return Tax Benefit Saving Wealth Creation Risk Diversification
Interpretation: From the above date it is clearly stated that 20% of all the respondents
invest for the purpose of high return which involve higher risk, 18% Invest for the
purpose of tax benefit and tax deduction, 45% of respondents Invest for the purpose of
saving, 10% respondents Invest for the purpose of wealth creation and 7% respondents
Invest for the purpose of risk diversification.

8: What returns do you receive at present from all your investments?

Table 4.8: Showing respondents Return from Investment
Investment Returns Number of Respondents
Less than 5% 8
5%-10% 60
10%-15% 15
15%-20% 10
Greater than 20% 7
Total 100
Chart 4.8: Showing respondents Return from Investment
Investment Return
7% 8%
10%
15%
60%
Less than 5% 5%-10% 10%-15% 15%-20% Greater than 20%
Interpretation: Here we observe that 8% of all the respondents get less than 5% return
from their investment, 60% of all the respondents get between 5%-10% return, 15% of
all the respondents get between 10%-15%, 10% of all the respondents get between
15%-20% and 7% of all the respondents get more than 20%.
Most of the respondents get 5%-10% return from their investment which almost
includes 60% of the respondents which is more than all other classes.

9: What type of funds would you like to prefer for your investment in Mutual Fund?
Table 4.9: Showing respondents Fund Preference
Investment Reference Number of Respondents
Equity Fund 57
Debt Fund 17
Balance Fund 26
Total 100
Chart 4.9: Showing respondents Fund Preference
Fund Preference
26%
57%
17%
Equity Fund Debt Fund Balance Fund
Interpretation: From the above table and pie chart it is clearly stated that 57% of all
the respondents prefer investment in Equity Fund those funds that primarily an
principally invest in stocks, 17% of all the respondents prefer investment in Debt Fund
those funds that invest in fixed income instruments such as corporate and government
bonds, and remaining 26% of all the respondents prefer investment in Balanced Fund
those funds that contains components of stock and bonds.

10: What are the products in your existing business?

Table 4.10: Showing respondents Products in Existing Business
Products of Business Number of Respondents
Life Insurance 120
General Insurance 18
Postal Schemes 3
Others 9
Chart 4.10: Showing respondents Products in Existing Business
Products of Business
2%
6%
12%
80%
Life Insurance General Insurance Postal Schemes Others
Interpretation: From the above data we observe that large number of 80% of all the
respondents existing business products are in Life Insurance, 12% of all the respondents
are in General Insurance, of which only 2% of all the respondents in Postal Schemes
and the remaining 6% in other financial services.

11: Give your preference for tax saving plan of ICICI Prudential?
Table 4.11: Showing respondents preference regarding ICICI Prudential Tax
Saving Plan
Investment Preference for ICICI Number Of Respondents
Most Preferred 12
Favorably Preferred 16
Preferred 44
Less Preferred 11
Not Preferred 17
Total 100
Chart 4.11: Showing respondents preference regarding ICICI Prudential Tax

Saving Plan
ICICI Tax Saving Plan
12%
17%
16%
11%
44%
Most Preferred Favorably Preferred Preferred Less Preferred Not Preferred
Interpretation: We have observed that a large number of investor prefer ICICI

Prudential Tax Saving Plan over the other financial institutions that only 17% of the
respondents do not prefer ICICI Tax saving plan due to more rules and regulations and
prefer other financial services.

12: Give your preference for tax saving plan of NJ Wealth?

Table 4.12: Showing respondents preference regarding to NJ Wealth Tax
Saving Plan
Investment Preference for NJ Wealth Number Of Respondents
Most Preferred 2
Favorably Preferred 5
Preferred 24
Less Preferred 11
Not Preferred 58
Total 100
Chart 4.12: Showing respondents preference regarding to NJ Wealth Tax

Saving Plan
NJ Wealth Tax Saving Plan

2% 5%
24%
58%
11%
Most Preferred Favorably Preferred Preferred Less Preferred Not Preferred
Interpretation: We have observed that a large number of 58% respondents do not

prefer NJ Wealth Tax Saving Plan that whilst other remaining are mostly Preferred or
less preferred. According to above data NJ Wealth tax saving plan is mostly not
preferred by the respondents compare to ICICI Prudential it is way more where only
17% respondents do not prefer it.

13: Do you Know Mutual Fund SIP as a product for wealth creation of customer?
Table 4.13: Showing respondents awareness about Mutual Fund SIP
Investment in Mutual Fund SIP Number of Respondents

Yes 32
No 46
Knows Slightly 22
Chart 4.13: Showing percentage of respondents’ awareness about Mutual

Fund SIP
Awareness of Mutual fund SIP
22%
32%
46%
Yes No Knows Slightly
Interpretation: As it can be clearly stated from the above Chart that mostly 46% of
the respondents does not have the knowledge about Mutual Fund SIP alongside 22%
of the respondents knows slightly or not much about SIP. However, only 32% of the
respondents has the awareness of Mutual Funds SIP which is almost twice less than
the persons who doesn’t have the Knowledge about SIP.
Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds
wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals.

14: Do you know about revenue and commission in Mutual Fund and SIP business
for advisors?
Table 4.14: Showing respondents awareness about revenue and commission
in Mutual Fund & SIP
Revenue and Commission in MF & SIP Number of Respondents
Yes 36
No 53
No, Would Like to know 11
Total 100
Chart 4.14: Showing percentage of respondents’ awareness about revenue

and commission in Mutual Fund SIP
Revenue and Commission in Mutual Fund & SIP

11%
36%
53%
Yes No Would Like to Know
Interpretation: According to above survey and chart showing again that almost 65%
of the respondents don’t have awareness about revenue and commission in Mutual
Fund & SIP from which only 11% of the respondents want to find out about it if the
opportunity was there for them. 36% 0f the respondents know about the revenue and
commission in Mutual Funds and SIP which is less.

15: Do you know the advantages of adding of Mutual fund and SIP as a product
along with your existing product?
Table 4.15: Showing respondents awareness about advantages of Mutual
Fund & SIP
Investment in Mutual Fund and SIP Number of Respondents
Yes 12
No 32
Would Like To Know 56
Chart 4.15: Showing respondents’ awareness about advantages of Mutual

Funds & SIP
Advantages of Mutual Fund and SIP
12%
56% 32%
Yes No Would Like to Know
Interpretation: As in previous page it was observed that most of the persons are not
aware of Mutual Fund SIP and its revenue, same according to the above chart 88% of
the respondents are not aware of the advantages of Mutual Fund & SIP from which
56%of them wanted to gain the knowledge about it. Only 12% of the respondents
know about its advantages.

16: Have you attended any business opportunity programs about Mutual Funds?
Table 4.16: Showing respondents’ attended programs about Mutual Fund
Attend Business Opportunity Programs Number of Respondents
Yes 36
No 52
No, But I Would Like to 12
Total 100
Chart 4.16: Showing respondents’ attended programs about Mutual Fund
Business Opportunity Programs

12%
36%
52%
Yes No No, but I would Like to
Interpretation: From the above data it is observed that almost 55% of the respondents
haven’t attended any awareness and knowledge gaining programs about mutual funds,
from which only 12% the respondents would like to attend if the opportunities were
provided.
From the above table it is clear that 36% of the respondents have attended various
awareness programs about Mutual Funds.

17: Do you know about AMFI Exam?

Table 4.17: Showing respondents awareness about AMFI Exam
Awareness of AMFI Exam Number of Respondents
Yes 29
No 47
Not Much 24
Chart 4.17: Showing respondents awareness about AMFI Exam
Awareness of AMFI Exam
24%
29%
47%
Yes No Not Much
Interpretation: It can be clearly stated that from the above figure 29% of the
respondents have full awareness of the AMFI exam, 24% do not have much awareness
about AMFI Exam and 47% of the respondents have clearly no idea about AMFI Exam,
so in this case it can be stated that almost half of the respondents are not aware of AMFI
Exam.
AMFI (Association of Mutual Fund in India): The NISM Mutual Fund Distributors
Certification Examination is the NISM Series VA of NISM Certifications. After launch
of NISM Mutual Fund Exam, AMFI Exam, which was earlier conducted by NSE, does
not exist anymore.

18: Have you cleared your AMFI Exam?

Table 4.18: Showing respondents cleared AMFI Exam
Clearance of AMFI Exam Number of Respondents
Yes 8
No 92
Total 100
Chart 4.18: Showing respondents cleared AMFI Exam
Clearance of AMFI Exam

8%
92%
Yes No
Interpretation: As in previous page it was observed that almost half of the respondents
do not have the awareness of AMFI or NISM Exam and in remaining half most of the
respondents were only aware of the basics, so in above data it can be clearly stated that
why number of the respondents who have cleared AMFI Exam are only 8%, where
92% of the respondents haven’t cleared the exam because of the less or completely no
awareness of the respondents.

19: If No, would you like to give the exam if adequate reading materials and
Training given?
Table 4.19: Showing respondents if they would attend AMFI Exam
Training For AMFI Exam Number of Respondents
Yes 24
No 57
Not Sure 19
Chart 4.19: Showing respondents if they would attend AMFI Exam
Training for AMFI Exam
19%
24%
57%
Yes No Not Sure
Interpretation:
The above table showing that if adequate readings and proper training was given to the
respondents will they attend and clear the AMFI or NISM Exam from which only 24%
of the persons responded with Yes who are way less than the persons who denied to
clear the exams which contain 57% of the respondents because of no awareness of the
particular exam. However, the remaining 19% of the respondents were not sure whether
they will attend and clear the exam.

20: Which of the following Mutual Funds have you invested in?
Table 4.20: Showing respondents investment in Mutual Funds
Name of The Company Number of Respondents
ICICI Prudential 33
Reliance Mutual Fund 11
HDFC Mutual Fund 19
SBI Mutual Fund 9
Kotak Mutual Fund 13
Others 15
Chart 4.20: Showing respondents investment in Mutual Funds
Invest In Mutual Fund

15%
33%
13%
9%
11%
19%
ICICI Prudential Reliance Mutual Fund HDFC Mutual Fund

SBI Mutual Fund Kotak Mutual Fund Others
Interpretation: From this above Pie Chart it can be clearly stated that 33% , 11%, 9%
of the people like to invest in large cap companies where return is comparatively less
but risk is low thus they invest in ICICI Prudential, Reliance, SBI respectively.
19%, 13% of the people like to invest in Mutual Fund Companies like HDFC Mutual
Fund, Kotak Mutual Fund, etc. where risk is slightly higher than the above two
mentioned companies as well as return is also slightly high.
15% of the investors like to invest in other Small Cap’s and Mid Cap’s companies.

NOTE:- The cross tabulation is done to analyze that how many investors in various
classes and Age groups prefer Mutual Funds over other investment options.
Table 4.21: Age wise break up “Service-Pvt” Class Respondents

Service Class 20-30 30-40 40-50 50-60 >60 Total
Mutual Fund 12 8 3 0 0 23
Equity Market 5 6 1 0 0 12
Real Estate 0 1 1 0 0 2
Life Insurance 4 1 1 0 0 6
Government Bonds 0 0 0 0 0 0
Bank FD 3 2 0 0 0 5
Post Office 0 1 1 0 0 2
Total 24 19 7 0 0 50
Chart 4.21: Age wise break up “Service-Pvt” Class Respondents
Service Class
14
12
10
0
Mutual Fund Equity Market Real Estate Life Insurance Govt Bonds Bank FD Post Office
20-30 30-40 40-50 50-60 >60
Interpretation: It is observed that people in the age group of 20-30 years are more open
to mutual funds holding and equity market. The share of mutual fund holding decreases
as the age increases. It is observed that people above the age of 40 prefer Life Insurance
policies and Government Securities over Equity and Mutual Funds.

Table 4.22: Age wise break up “Service-Govt” Class Respondents

Professional 20-30 30-40 40-50 50-60 >60 Total
Bank FD 0 0 1 2 0 3
Total 3 7 8 2 0 20
Chart 4.22: Age wise break up “Service-Govt” Class Respondents
Service Govt Class

6
0
20-30 30-40 40-50 50-60 >60
Interpretation: We observe that people in the age category of 30-40 and 40-50 years
have a certain preference for equity holdings, Mutual Fund, Real Estate. However
these people are very conscious for the assured return and security.

Table 4.23: Age wise break up “Business” Class Respondents

Business Class 20-30 30-40 40-50 50-60 >60 Total
Bank FD 1 2 1 0 0 4
Total 3 17 2 0 0 22
Chart 4.23: Age wise break up “Business” Class Respondents
Business Class
7
0
20-30 30-40 40-50 50-60 >60
Interpretation: We observe that maximum classification of investment is made in 30-

40 age group investors. Also they are holding a diversified portfolio which includes
PPF, Postal Schemes, Fixed Deposit, as well as Equity Schemes (Mutual fund, Stock
Market).
Age group 20-30 holds investments in Equity Market, Bank FD, and some also hold
their Money in Real Estate. Business class people focuses more on high return with
moderate security of return so majority of their investment is made in Mutual
Investment.

Table 4.24: Age wise break up “Retired” Class Respondents

Professional 20-30 30-40 40-50 50-60 >60 Total
Bank FD 0 0 0 1 0 1
Total 0 0 0 4 4 8
Chart 4.24: Age wise break up “Retired” Class Respondents
Retired Class
3.5
2.5
1.5
0.5
0
20-30 30-40 40-50 50-60 >60
Interpretation: It is observed in this category mostly consisting of retired people the

preference for mutual fund holding is low. However, Bank Fixed Deposits, Post
Schemes, Life Insurance have the greatest preference amongst people in this category.

Analyzing According to Occupation:
Chart 4.25: Showing the investors from various profession
Investor Profession
8%
22%
50%
20%
Service Pvt Service Govt Business Retired
Interpretation: Here it is amazed to see that around 50% of the investment is been
invested by the persons working in Private sectors, according to them investing in
Mutual Funds is safer as well as more gainer.
Then we find that the businessmen of around 22% gives more preference in investing
in mutual funds, and other securities. Next we see that the persons working in
Government sectors of around 20% only invests in Mutual Fund. Only 8% of retired
persons invest in Mutual Funds and other securities.
Analyzing According to Qualification:
Chart 4.26: Showing the investors according to their qualifications

Qualification of Investors
9% 15%
19%
57%
Under Graduates Graduates Post Graduates Others
Interpretation: Out of my survey of 100 respondents, 76% of the investors are

Graduates and Post Graduates and 24% are Under Graduates and Others, around 11%,
which may include persons who have passed their 10th standard or 12th standard invests
in Mutual Funds.
Analyzing Data According to Factors Seen Before Investing:
Chart 4.27: Showing the factors seen by investors before investing
Preference of Investment
6%
11%
27%
56%
Liquidity Low Risk Hgh Return Trust

Interpretation: As it can be clearly stated from the above Chart that investors before
investing, the main criteria that they used to give more Preference is Low Risk.
According to them, if a scheme is low risk, it may or may not give a very good return,
but still 56% of the investors choose low risk as the option while investing in Mutual
Funds.
Then we see that 27% of the investors take High return as one of their most important
criteria. According to them, if there is no high return then we should opt for Post office
and not mutual fund.
11% of the investors take trust as one of their important factors and only 6% of the
Investors think liquidity as their most preferable options.
Analyzing Data Regarding Mode of Investment:
Chart 4.28: Showing the data according to mode of investment
Mode of Investment
22%
78%
Short Term Long Term
Interpretation: It can be clearly stated from the above Figure that 78% of the investors
like to invest in SIP, as the investor feels that they are more comfortable to save via SIP
than the Long term.
While 22% of the investors find SIP as very burdensome, and they are more reluctant
to save in Long term investment.

CHAPTER 5
FINDINGS, SUGESTION AND
CONCLUSION

FINDINGS
 We observe that the number of respondents who invest in mutual funds are more
than the respondents who do not invest in mutual funds at all.
 Most number of respondents have the basic knowledge about investing in mutual
funds, while only 24% of the respondents are not aware of the knowledge about
Mutual Funds.
 Everyone is interested in getting good deduction in tax while same almost 90% of
the respondents were interested in getting tax deduction. However only the
remaining were not interested in it.
 Who is not interested in tax saving but how many people know the instruments to
save tax, meanwhile we got almost 75% of the respondents who are aware about
mutual fund being a good instrument of tax saving.
 Almost half of the respondents fall in a group who are getting 1,00,000 to 2,00,000
of income per year whilst some of the respondents get less income than this and
some have more income per year.
 We observe that many of the respondents invest in more than one instruments of
saving. The people are not channelizing all their savings in one Investment Avenue
but invest in various and more investment avenues.
 We observe that the persons invest in investment avenues for various purposes
mostly 45% are for saving, the remaining respondents invest for the purpose of
higher return, tax benefit, wealth creation and reducing the risk.
 From the particular survey 8% of all the respondents get less than 5% return from
their investment, 60% of all the respondents get between 5%-10% return, 15% of
all the respondents get between 10%-15%, 10% of all the respondents get between
15%-20% and 7% of all the respondents get more than 20%.
 Here statistically showing that most of the investors prefer investing in Equity
Funds which include 57% of the respondents and the remaining respondents prefer
investing in Debt Fund and Balanced Fund.
 In this general question large number of 80% respondents existing products are in
life insurance, while the remaining respondent’s products were general insurance,
postal schemes and others.

 We have observed that a large number of investor prefer ICICI Prudential Tax
Saving Plan over the other financial institutions.
 As For NJ Wealth the case is different where large number of the investors do not
prefer their tax saving plan where they prefer other financial institutions tax saving
plan over NJ Wealth.
 Mutual Fund SIP is an investment route offered by Mutual Funds wherein one can
invest a fixed amount in a Mutual Fund scheme at regular intervals. However a
large number of the respondents are not aware of the SIP and only 32% of them
have the basic knowledge about SIP.
 We observe that many respondents are not aware of the revenue and commission
advantages in Mutual Funds and SIP and are not aware of adding SIP as a product
along existing business.
 Large number of the respondents haven’t any opportunity and awareness programs
about mutual funds.
 AMFI or NISM is a Mutual Fund Distributors Certification Examination, while
most of the respondents are not aware of the particular exam also 92% of the
respondents haven’t cleared the exam.
 Investors generally like to invest in large Cap Companies.
 People in age group of 20-30 and 30-40 of any class are more open in investing
mutual funds holdings and equity market, as age increases the share of mutual fund
holdings decreases. People above 40 prefer life insurance policies and govt
securities over Mutual Fund holdings.
 We observe that most of the investors in mutual funds are well educated,
undergraduates and post graduates.
 Most of the investors prefer investing in short term investments over long term
investment as the numbers are less for it.

Investor Profession
8%
22%
50%
20%
Service Pvt Service Govt Business Retired
 It is amazed to see that around 50% of the investment is been invested by the
persons working in Private sectors, according to them investing in Mutual Funds
is safer as well as more gainer.
 Then we find that the businessmen of around 22% gives more preference in
investing in mutual funds, and other securities. Next we see that the persons
working in Government sectors of around 20% only invests in Mutual Fund. Only
8% of retired persons invest in Mutual Funds and other securities.

RECOMMENDATION AND
SUGESTIONS

RECOMMENDATION AND SUGESTIONS
 There is need to build awareness of the new funds among the investors and giving
the basic knowledge about mutual funds with constantly being in contact with the
investors.
 Some of the investors have asked for periodical market report about stock market
so they can get the knowledge properly.
 AMC’s and NJ should go for increasing more awareness about different facilities
of investment such as SIP among the investors and provide various opportunities
of adding SIP as a product alongside existing business.
 ICICI and especially NJ must try to locate hard working distributors who are
providing good business in their respective geographical area.
 The companies should advertise their tax saving plan more for investors so they
can gain more customers.
 NJ has more advisors (almost 40000 advisors are partners with NJ) but NJ is
lacking somewhere in its marketing. NJ need to advertise its brand to gain the
image of Mutual Fund distributors.

CONCLUSION

CONCLUSION
Mutual Funds now represent perhaps most appropriate investment opportunity for most
investors. As financial markets become more complex, investors need a financial
intermediary who provides the required knowledge and professional expertise on
successful investing.
The mutual fund investors prefer more of the equity fund as they want more return on
their money. They avoid going in debt funds because they can get same amount of return
on their banks that is also without taking risk.
Usually people prefer to invest in mutual fund during NFO rather than seeing the
performance of mutual fund scheme. Sometimes due to lack of detailed awareness about
mutual fund scheme the investors seek advice of distributors.
There is need to build awareness of the new funds among the investors and giving the
basic knowledge about mutual funds with constantly being in contact with the investors.
Investors feels that NJ should go for more promotional activities and should try to come
up with new innovative schemes which can easily be understood by the investors.
However, it must be said that even these difficult times, the mutual funds industry is
continuing its efforts to improve customer satisfaction as well as set new standards in
areas such as transparency and disclosure norms.
In order to improve the training process of mutual funds distribution, the Association of
Mutual Funds in India (AMFI) has introduced the AMFI Certification Program. The
Security and Exchange Board of India (SEBI) has made it mandatory to all distributors
and agents of mutual funds to pass the AMFI certification program. The improvement of
knowledge of distributors and agents will ultimately help the investors to make informed
investment.

BIBLIOGRAPHY

REFERENCES
Name of the Year of The

SL. No Name of the Author Title of the Book
publisher Publication
1 Inderpal Singh Portfolio Management Kalyani Second Edition
Gurpreet Singh Publisher (2009)
2 M. Farooq Pasha Financial Markets & Kalyani 2014
Samiya Mubeen Service Publisher
3 Shashi K. Gupta Investment Kalyani 2016
Rosy Joshi Management Publisher
WEBSITES
https://www.icicipruamc.com
https://www.njgroup.in/about.php
https://njwealth.in/njwealth/index.fin
https://www.amfiindia.com/

ANNEXURE

QUESTIONAIRE
Dear Respondent:
I am pleased to introduce myself as Nazir Ahmad Barak 6th semester BBA student of
Seshadripuram First Grade College, As part of our curriculum I have undertaken a project
on “ A study on Mutual Funds In India With Reference ICICI Prudential and NJ
Groups”, I will appreciate your cooperation with regard by filling this questioner
carefully. I assure that the information collected will be used for Academic purpose only.
Thank You
Name:
Address:
Mobile No.:
1: Do you invest your savings in mutual Funds?

a) Yes
b) No
2: Do you have complete Information about mutual fund?

a) Yes
b) No
c) Not Much
3: Are you an investor who is interested in getting good deduction from tax?
a) Yes
b) No

4: Do you know Mutual Fund is a good instrument of tax saving?

a) Yes
b) No
5: Among which of the following income group you fall?

a) Up to 1,00,000
b) 1,00,001 to 2,00,000
c) 2,00,001 to 3,00,000
d) 3,00,001 & more
6: Which are the investments you hold at present?

a) Mutual Fund
b) Equity Market
c) Real Estate
d) Insurance
e) Bank FD
f) Post Office
7: What is the basic purpose of your investment?

a) Higher Return
b) Tax Benefit
c) Saving
d) Wealth Creation
e) Risk Diversification

8: What returns do you receive at present from all your investments?

a) Less than 5%
b) 5%-10%
c) 10%-15%
d) 15%-20%
e) Greater than 20%
9: What type of funds would you like to prefer for your investment in Mutual
Fund?
a) Equity Fund
b) Debt Fund
c) Balance Fund
10: What are the products in your existing business?

a) Life Insurance
b) General Insurance
c) Postal Schemes
d) Others
11: Give your preference for tax saving plan of ICICI Prudential?
a) Most Preferred
b) Favorably Preferred
c) Preferred
d) Less Preferred
e) Not Preferred

12: Give your preference for tax saving plan of NJ Wealth?

a) Most Preferred
b) Favorably Preferred
c) Preferred
d) Less Preferred
e) Not Preferred
13: Do you Know Mutual Fund SIP as a product for wealth creation of customer?
a) Yes
b) No
c) Know Slightly
d)
14: Do you know about revenue and commission in Mutual Fund and SIP business
for advisors?
a) Yes
b) No
c) Know Slightly
15: Do you know the advantages of adding of Mutual fund and SIP as a product
along with your existing product?
a) Yes
b) No
c) Would Like to Know
16: Have you attended any business opportunity programs about Mutual Funds?
a) Yes
b) No

c) No, but I would Like to Attend
17: Do you know about AMFI Exam?

a) Yes
b) No
c) Not Much
18: Have you cleared your AMFI Exam?

a) Yes
b) No
19: If No, would you like to give the exam if adequate reading materials and
Training given?
a) Yes
b) No
c) Not Sure
20: Which of the following Mutual Funds have you invested in?
a) ICICI Prudential
b) Reliance Mutual Fund
c) HDFC Mutual Fund
d) SBI Mutual Fund
e) Axis Mutual Fund
f) Kotak Mutual Fund

A Study in Mutual Funds in India

Uploaded by

Copyright:

Available Formats

A Study in Mutual Funds in India

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

A Study in Mutual Funds in India

Uploaded by

Copyright:

Available Formats

CHAPTER 1

1.1 INTRODUCTION OF FINANCE

Finance is often said as the management of money or “Funds” management. Modern

-KENNETH AND RONALD

A branch of economics concerned with resources allocation as well as resources

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 1|Page

1.2 INTRODUTION TO MUTUAL FUNDS

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 2|Page

CONCEPT OF MUTUAL FUND:

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 3|Page

Why Select Mutual Fund?

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 4|Page

CHARACTERESTICS OF MUTUAL FUNDS:

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 5|Page

ADVANTAGES OF MUTUAL FUND

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 6|Page

DISADVATAGES OF MUTUAL FUND

1. Costs of managing the mutual fund

1.3 HISTORY OF INDIAN MUTUAL FUND INDUSTRY

Phase I: Establishment and Growth of Unit Trust of India (1964-87)

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 7|Page

Phase II: Entry of Public Sector Funds (1987-93)

Phase III: Emergence of Private Sector Funds (1993-96)

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 8|Page

Phase IV: Growth and SEBI Regulation (1996-2003)

Asset Under Management (Rs. Crores)

AS ON UTI PUBLIC SECTOR PRIVATE SECTOR TOTAL

31-March-99 53,320 8,292 6,869 68,472

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 9|Page

Phase V: Since February 2003

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 10 | P a g e

GROWTH IN ASSETS UNDER MANAGEMENT

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 11 | P a g e

1.4 RGULATORY AUTHORITIES

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 12 | P a g e

1.5 TYPES OF MUTUAL FUNDS SCHEMES IN INDIA

Graph 1.1: Showing types of Mutual Funds

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 13 | P a g e

On the basis of structure mutual fund can be as below:

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 14 | P a g e

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 15 | P a g e

C) ON BASIS OF INVESTMENT OBJECTIVES

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 16 | P a g e

4. Money Market Schemes:

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 17 | P a g e

3. Sector Specific Schemes:

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 18 | P a g e

PERFORMANCE MEASURES OF MUTUAL FUNDS

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 19 | P a g e

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 20 | P a g e

2.1 RESEARCH METHODOLOGY

2.2 OBJECTIVES OF THE STUDY

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 21 | P a g e

2.3 SCOPE OF THE STUDY

2.4 MANAGERIAL USEFULLNESS OF STUDY

 Advisors knowledge about Mutual Funds

TYPES OF RESEARCH AND DESIGN

A research design is a pattern or an outline of a research projects working. It is the

 Survey and Exploratory Research

SESHADRIPURAM FIRST GRADE COLLEGE, YELAHANKA 22 | P a g e