INTRODUTION

A Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. 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. Thus 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 relativity low cost. The flow chart below describes the working of a mutual fund.

A mutual fund is a body corporate registered with the SEBI of India that pools up the money from individual/corporate investors and invests the same on behalf of the investors/unit holders, in equity shares, Govt. securities, Bonds, Call money Markets etc, and distributes the profits Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at same time. Investors of mutual funds are known as unit holders. The investors in proportion to their investments share the profits of losses. The mutual funds normally come out with a number of schemes with different investments objectives which are launched

from time to time a mutual fund is required to be registered with SEBI which regulate securities markets before it can collect funds from the public SBI mutual fund is a fully owned subsidiary of the SBI, Indias premier and highly respected bank with largest banking operation in the country. SBI Mutual fund strategy to have a full control upon the risks concentrating for a heading growth at a reasonable price. The combination top down and Bottom up approaches are followed. Employees a multi stage filtering process. In the debt sector it always aim at the risk adjusted returns. based on the investors risk tolerance. The four steps are. Manage the schemes on a Portfolio base.
Active management of interest rate risk. Credit risk management by following the conservative approach. Continuous monitoring.

ORGANIZATION STRUCTURE
MUTUAL FUND

OF

R EGULATIONS SEBI

SEBIs introduction of SEBI (Mutual Funds) regulation in 1993 is to have direct control on all mutual funds of both public and private sector. The Mutual funds are regulated under the SEBI (Mutual fund) regulation 1996. It is regulatory institution which is responsible for formulating policies and guidelines for operation of mutual fund in India. Bank operated mutual funds supervised by RBI. NAV to be declared everyday for open-ended and every week for closeended. Disclose on website, AMFI, newspapers. Select benchmark depending on scheme and company. AMC registered as companys registered under companys Act 1956.

ASSOCIATION OF MUTUAL FUND IN INDIA (AMFI)

Association of MFs in India (AMFI) was incorporated on 22, August 1995. AMFI is an apex body of all Asset Management Committee (AMC) which has registered with SEBI. It follows the principle of both protecting and promoting the interest of MFs as well as their unit holders.

AREA OF RESEARCH
Mutual funds by nature are custodian of the money of investors, entrusting their savings in the belief that the former have better expertise and skills for investing than of their own and registered under SEBI. A Trustees is appointed who holds the property of the mutual fund in trust for the benefit of the unit holders. Trustees are regulated by trust deed which is to be submitted to SEBI. The trustees are to manage the mutual fund in accordance with the laws, regulations, directions and guidelines issued by SEBI. Trustees appoint Asset Management Committee (AMC) to float the schemes in consultation with sponsors. It is trustees duty to observe and ensure that AMC is

managing schemes in accordance with the trust deed. It is the responsibility of trustees to supervise the collection of any income due to be paid to the schemes.

NEEDS

OF THIS TOPIC

SAVING ARE EXCESS OF INCOME OVER EXPENDITURE FOR ANY ECONOMIC UNIT. SAVINGS FLOW INTO INVESTMENTS FOR RETURN BUT SAVINGS KEPT AS CASH ARE BARREN AND DID NOT EARN ANYTHING SAVINGS ARE INVESTED IN ASSETS DEPENDING ON THEIR RISK AND RETURN PERCEPTION OF INVESTORS LIKE RETURNS BUT AT THE SAME TIME THEY DISLIKE RISKS MAKING AN INVESTMENT IS AN ART WHICH MORE PEOPLE LACK. THERE ARE DIFFERENT INVESTMENT AVENUES, MUTUAL FUND IS ONE AMONG THEM.TO KNOW THE AWARENESS OF MUTUAL FUNDS AMONG PEOPLE,AND INTEREST OF PEOPLE IN INVESTING IN MUTUAL FUNDS,BEHAVIOUR OF INVESTORS ACCORDING TO DIFFERENT AGE GROUP TO ASCERTAIN THE PERCENTAGE OF INCOME THE INVESTORS INVEST IN MUTUAL FUND. TO KNOW THE DIFFERENT ATTITUDE OF PEOPLE REGARDING RISK , RATE OF RETURN PERIOD OF INVESTMENT.

IMPORTANT CHARACTERISTICS OF A MUTUAL FUND

A mutual fund is managed by investment professional and other service providers, who earns a fee for their services from the funds

The pool of funds is invested in a portfolio of marketable investments. The value of the portfolio is updated every day. The investors share in the fund is denominated by units. The value of the units changes with change in the portfolio value everyday. The value of one unit of investment is called net asset value (NAV).

The investments portfolio of the mutual fund is created according to the staled investment objectives of the funds.

OBJECTIVES OF A MUTUAL FUND

To know the awareness of mutual funds among people. To see the interest of people in investing in mutual funds. To know the investment behavior of investors in mutual fund according to different age group.

To ascertain the percentage of income the investors invest in mutual fund. To know the different attitude of people regarding risk, rate of return period of investment.

To know the investors preferred financial product for investment.

Scope
There are four divisions in SBI mutual fund for the purpose of marketing and sales. They give special attention for the retention of customers. i.e. investors, distributors and brokers. Four divisions are:1. National distributors.

2. Banking. 3. Individual financial advisors. 4. FIIS Mutual funds are relevant in national interest.

SCHEMES

OF MUTUAL FUNDS

1. Operational classification

i. Open ended scheme ii. Close ended scheme 2. Return- based classification Income Funds Growth funds Conservation Funds 3. Investment-based classification Equity Fund Bond Fund Balanced Fund Fund of funds(FOF)

4. Sector-based classificationGold and Silver Real state

5. Leverage-based classification:Leveraged funds

LIMITATIONS
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A mutual fund scheme shall not invest more the 15% of its NAV in debt

instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorized to carry out such activity under the Act. Such investment limit may be extended to 20% of the NAV of the scheme

with the prior approval of the board of trustees and the board of asset management company. 2No mutual fund under all its schemes should own more than 10% of

any companys paid up capital carrying voting rights. 3The initial issue expenses in respect of any scheme may not exceed

6% of the funds raised under that scheme.

METHODOLOGY FOLLOWED
Methodology basically means the selection of the various methods and techniques in the research conducted. The various steps includes1-

Selection of a representative sample from the general population, which depicts the characteristic of the complete population.

2- Application of various tools and techniques to obtain relevant information

related to a case. 3- Collection of relevant data.

5- Generation of a final report.

RESEARCH DESIGN
The following methodology is adopted for comparison Step 1- Selection of few well-performing funds of big fund houses of India. Step 2- Collection of data (against various parameters) for comparison of funds. Step 3- Analyses of the parameters and their relevance in comparing the funds. Step 4- Comparing and Ranking these funds on the basis of inputs from executive and the rating agencies. Step 5- Generation of a project report.

Data Collection
The primary data collection was the most important part of the project. This includes collecting the information through field research and printed data in annual report. For collecting information, a personal interview was conducted with the help of questionnaire and the required information was collected for the respondents.

Data Analysis
After collecting the data, data is to be analyzed. The findings and the analysis have been mentioned further in the report.

Advantages of Mutual Funds.

Diversification- The best mutual funds design their portfolios so individual investment with react differently to the same economic conditions. For example Economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value.

Professional management Most mutual funds pay top flight professionals to manage their investments. These managers decide what securities the fund will buy bend sell.
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Regulatory oversight- Mutual funds are subject to many govt. regulations that protect investors from fraud.

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Liquidity Its easy to get your money out of a mutual fund. Convenience You can usually buy mutual fund shares by mail, phone or over the interest.

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Low cost Mutual fund expenses are often no more than 15% of your investments expenses for index funds are less than that because index funds are not activity managed instead, they automatically buy stock in COs that are listed on a specific index.

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Transparency Flexibility Choice of schemes Tax benefits Well regulated

Reference
My project is divided into 5 chapters & they are given as under:1234-

Chapter 1 is an introduction of the mutual fund industry and the company. Chapter 2 deals with review of literature. Chapter 3 states the methodology being used in the project. Chapter 4 basically states the Analysis of the mutual funds. Chapter 5 deals with the use of findings conclusion, suggestions and limitations.

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Contents
1Title of the Project 23-

Introduction

Rational of study Review of Literature Objectives of the study Research Methodology Chapterization Bibliography

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Project Title
INVESTORS AWARENESS AND PERCEPTION ABOUT SBIS MUTUAL FUND IN LUCKNOW