mutual fund in india

A PROJECT REPORT

ON

MUTUAL FUND INVESTMENT

Submitted in partial fulfillment for

MASTER OF BUSINESS ADMIMISTRATION

Program of

STEVENS BUSINESS SCHOOL

GANDHINAGAR

Submitted by: Submitted to:

Nirav Patel Dr. Himani JoshiMitesh Shah Academic Coordinator,Hiren Darji Stevens Business SchoolPunit Laheru

Bhupendra Zala

Keyur Savalia

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Acknowledgement

It is indeed an opportunity to prepare a report on Mutual fund and consumer behavior towards the investment in Mutual fund. Preparation of such type of report calls for intellectual nourishment, professional help and encouragement from many areas.

We would like to thank Stevens Business School for the compulsion of this most wonderful aspect of our MBA curriculum without which knowledge of management studies is incomplete and futile.

We would like to thank and express my gratitude to Dr. Himani Joshi for providing us her guidance and co- operation.

Further, we are thankful to all the respondents of our questionnaire who spared there time from their busy schedule and obliged us by giving their co-operation and the information we needed

Lastly, we would like to thank to all those who had helped us directly or indirectly in completing this project successfully.

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EXECUTIVE SUMMARY

In few years Mutual Fund has emerged as a tool for ensuring one’s financial well being. Mutual

Funds have not only contributed to the India growth story but have also helped families tap into

the success of Indian Industry. As information and awareness is rising more and more people are

enjoying the benefits of investing in mutual funds. The main reason the number of retail mutual

fund investors remains small is that nine in ten people with incomes in India do not know that

mutual funds exist. But once people are aware of mutual fund investment opportunities, the

number who decide to invest in mutual funds increases to as many as one in five people. The

trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer

is to understand which of the potential investors are more likely to buy mutual funds and to use

the right arguments in the sales process that customers will accept as important and relevant to

their decision.

This Project gave me a great learning experience and at the same time it gave me enough scope

to implement my analytical ability. The analysis and advice presented in this Project Report is

based on market research on the saving and investment practices of the investors and preferences

of the investors for investment in Mutual Funds. This Report will help to know about the

investors’ Preferences in Mutual Fund means Are they prefer any particular Asset Management

Company (AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they

prefer or Which Investment Strategy they follow (Systematic Investment Plan or One time Plan).

This Project as a whole can be divided into two parts.

The first part gives an insight about Mutual Fund and its various aspects, the Company Profile,

Objectives of the study, Research Methodology. One can have a brief knowledge about Mutual

Fund and its basics through the Project.

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The second part of the Project consists of data and its analysis collected through survey done on

40 people. For the collection of Primary data we made a questionnaire and surveyed of 40

people.

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TABLE OF CONTENTS

Sl. No. Particular Page No.

1 Acknowledgement 2

2 Executive Summary 3

3 Introduction 6

4 Beta value 7

4.1 Public mutual fund-stat bank of India mutual fund 8

4,2 Comparison between ABIMF in oil and petroleum sector and sensex 9

4.3Comparison between NAV(net asset value) in SBIMF schemes in 2008 and 2009 for reliance industry ltd

10

4.4Comparison between market vale in SBIMF schemes in 2008 and 2009 for reliance industry ltd

11

4.5 Comparison between MAV in SBIMF schemes in 2008 and 2009 for ONGC 12

4.6Comparison between market vale in SBIMF schemes in 2008 and 2009 for ONGC

13

4.7 Private mutual fund in oil and petroleum sector:-JM finance mutual fund 14

4.8Comparison between market value in JM finance mf schemes in 2008 and 2009 for reliance industry ltd

4.9Comparison between NAV in JM finance mf schemes in 2008 and 2009 for ONGC

4.10 JM arbitrage fund with different market value and different % MAV

5 Research Objective 19

6 Data analysis and interpretation 21

6.1 Age distribution of Investors in Ahmedabad. 21

6.2 Qualification of Investors. 21

6.3 Occupation of the Investors. 21

6.4 Income of the Investors. 23

6.5 Perception of the investors about Investment. 24

6.6 People who are investing. 25

6.7 Type of the investment people have. 26

6.8 Purpose of Investment 27

6.9 Criteria for Investment. 28

6.10Investment in different Mutual fund

29

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6.11 Term of Investment in Mutual fund. 30

5.12 Sources of Investment in Mutual fund. 31

6.13 Most preferred AMC by Mutual fund Investors. 32

6.14 Investment in particular Sector. 33

6.15 Criteria for future investment among the Investors. 34

7 APPENDIX-1 35

8 APPENDIX-2 39

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INTRODUCTION

What is Mutual Fund?

A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to

pool their money together with a predetermined investment objective. The mutual fund will have a fund

manager who is responsible for investing the gathered money into specific securities (stocks or bonds).

When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on

investing becomes a shareholder or unit holder of the fund.

Mutual funds are considered as one of the best available investments as compare to others they are very

cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can

purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the

biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns.

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BETA VALUE

Every investment involves risk, and it's important to determine how much risk is appropriate for any fund that you are considering. Risk means making less than your planned return or even losing capital. Research by behavioral economists suggests that most people feel twice the pain over a financial loss as they do pleasure in an equivalent gain.

Although not exactly ideal, the standard deviation (dispersion around the mean return) is generally accepted as a measure of risk. Unlike the standard deviation, Beta measures the volatility of a fund relative to a benchmark index. Funds of the same type can have significantly different levels of risks. For example, funds that put in the best performances throughout the bull market of the 1990s, such as technology and Internet sector funds, usually are ranked very low in terms of risk-adjusted performance. Put another way, investors were exposed to an extreme level of volatility in return for those stellar returns. Fund-rating services such as Morningstar and Value Line rank risk in terms of Beta, a measurement of how volatile a fund is in comparison to a benchmark market indicator, such as the Standard & Poor's 500-stock index. A fund with a Beta of higher than 1.0 (1.0 = the benchmark index) would be expected to outperform the market, while one below that figure would likely underperform. But a Beta of greater than 1.0 also means the fund is volatile. In bear markets, the value of these funds may fall much more than the major market indexes.

Beta, a component of Modern Portfolio Theory statistics, is a measure of a fund's sensitivity to market movements. It measures the relationship between a fund's excess return over T-bills and the excess return of the benchmark index. Betas are typically, but not always, calculated over the last 36 months. A broad-based index for the U.K. economy is the financial Times all share index. In the U.S., equity funds are typically compared with the S&P 500 index; bond funds are compared with the Lehman Brothers Aggregate Bond index. Canadian equity fund Betas are typically calculated relative to the TSX/S&P family of indexes and Canadian bond fund Betas are typically calculated relative to the Scotia Capital Markets Universal bond index.

Here JM Basic fund has BETA value 1.25

SBI Magnum Multi Cap Fund has BETA value 0.87

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PUBLIC MUTUAL FUND-STAT BANK OF INDIA MUTUAL FUND (SBIMF)

SBIMF(STAT BANK OF INDIA MUTUAL FUND)

YEAR(FINANCIAL YEAR) SENSEX(ON YEAR ENDING)

TOTAL INVESTMENT

(RS IN BILLIONS)

INVESTMENT IN OIL AND

PETROLEUM SECTOR(RS IN

BILLIONS)1ST APRIL 2005-31ST MARCH 2006 11279.96 1122 106.451ST APRIL 2006-31ST MARCH 2007 13072.10 1290 131.451ST APRIL 2007-31ST MARCH 2008 15644.44 1416 134.52

1ST APRIL 2008-31ST MARCH 2009 9708.5 1667 155.67

INVESTMENT OF SBIMF:-

INTERPRETATION:

From the above graph, we can interpret that year by year investment in Stat bank of India mutual fund is continuously increasing and here we also conclude that around 10% of the total investment of SBIMF is in oil and petroleum sector.

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AS ON 31ST MARCH

2006

AS ON 31ST MARCH

2007

AS ON 31ST MARCH

2008

AS ON 31ST MARCH

2009

0

200

400

600

800

1000

1200

1400

1600

1800

2000

106.45 131.45 134.52 155.67

11221290 1416

1667TOTAL INVESTMENT (Rs IN BILLIONS)INVESTMENT IN OIL AND PETROLIUM SECTOR(Rs IN BILLIONS)

TIME PERIOD

INV

ESTM

ENT

IN B

ILLI

ON

S O

F R

s

COMPARISON BETWEEN SBIMF IN OIL AND PETROLEUM SECTOR AND SENSEX

AS ON 31ST MARCH 2006

AS ON 31ST MARCH 2007

AS ON 31ST MARCH 2008

AS ON 31ST MARCH 2009

SENSEX 11279.96 13072.1 15644.44 9708.5

INVEST-MENT IN OIL AND PETROLIUM SEC-TORS(Rs IN CRORES)

10645 13145 13452 15567

10003000500070009000

11000130001500017000

INVE

STM

ENT

AND

SEN

SEX

INTERPRETATION

From the above table we can interpret that there is continuous increase in sensex and SBIMF in oil and petroleum sector. So, here we can say that as sensex increases SBIMF in oil and petroleum sector also increases.

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COMPARISON BETWEEN NAV (NET ASSET VALUE) IN SBIMF SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

MAGNUM INDEX FUND

SBI ARBI-TRAGE OP-

PORTUNITIES

MAGNUM COMA FUND

MAGNUM INCOME

PLUS FUND-INVESTMENT

PLAN

MAGNUM MULTICAP

FUND

% TO NAV IN 2008

11.1 9.1 8.02 7.05 6.05

% TO NAV IN 2009

11.97 9 8.72 6.89 6.19

1

5

9

COMPARISION BETWEEN NAV(NET ASSET VALUE) IN SBIMF SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

% O

F N

AV

INTERPRETATION

From the above graph, we can interpret that there is different Net asset value (NAV) for different kind of schemes of SBIMF. Here maximum NAV is of Magnum index fund and lowest NAV is of Magnum multicap fund. From the graph, we also conclude that there is increase in NAV in 2009 as compare to year 2008.

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COMPARISON BETWEEN MARKET VALUE IN SBIMF SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

MAGNUM TAX GAIN SCHEME-

1993

SBI ONE INDIA FUND

SBI BLUECHIP

FUND

MAGNUM MULTICAP

FUND

MAGNUM COMA FUND

MAR-KET VALUE (Rs IN LAKH)-2008

14771.06 7820.25 5381.49 4761.11 4576.55

MAR-KET VALUE (Rs IN LAKH)-2009

14508.94 3051.59 4179.6 2740.98 3459.19

100050009000

13000

COMPARISON BETWEEN MARKET VALUE IN SBIMF SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

MAR

KET V

ALUE

(RS I

N LA

KH)

INTERPRETATION

From the above graph, we can interpret that the market value of Magnum tax gain scheme-1993 is highest in 2008 while the market value of SBI one India fund is lowest in 2009 and we can conclude that market value of each scheme in 2009 is less as compare to market value of those schemes in 2008.

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COMPARISON BETWEEN NAV IN SBIMF SCHEMES IN 2008 AND 2009 FOR ONGC

MAGNUM INDEX FUND

SBI ARBI-TRAGE OP-PORTUNI-

TIES

MAGNUM COMA FUND

MAGNUM INVEST-

MENT NRI FUND-FLEXI ASSET PLAN

SBI ONE IN-DIA FUND

% TO NAV IN 2008

7.05 6.1 4.89 3.5 2.64

% TO NAV IN2009

8.28 6 3.82 4.49 4.85

0.52.54.56.58.5

COMPARISON BETWEEN NAV IN SBIMF SCHEMES IN 2008 AND 2009 FOR ONGC

Axis Title

INTERPRETATION

From the above graph, we can conclude that Magnum index fund has maximum NAV in 2009 and it increase 1.23 % from 7.05% to 8.28% while SBI one India fund has the minimum NAV in 2008.

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COMPARISON BETWEEN MARKET VALE IN SBIMF SCHEMES IN 2008 AND 2009 FOR ONGC

MAGNUM TAX GAIN SCHEME-

1993

SBI ONE IN-DIA FUND

MAGNUM SECTOR

FUNDS UM-BRELLA-CONTRA

FUND

SBI ARBI-TRAGE OP-

PORTUNITIES

SBI BLUECHIP FUND

MAR-KET VALUE (Rs IN LAKH)-2008

6743.75 4416.07 4072.6 3089.04 2995.51

MAR-KET VALUE(Rs IN LAKH)-2009

9586.65 3508.65 6277.4 347.36 2083.7

5002500450065008500

COMPARISON BETWEEN MARKET VALE IN SBIMF SCHEMES IN 2008 AND 2009 FOR ONGC

MAR

KET V

ALUE

S

INTERPRETATION

From the above graph, we can interpret that market value of magnum tax gain scheme-1993 is more in 2009 as compare to it’s market value in 2008. While the lowest market value of SBIMF scheme is SBI arbitrage opportunities in 2009 which is around only 10% of its market value of 2008.

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PRIVATE MUTUAL FUND IN OIL AND PETROLEUM SECTORJM FINANCE MUTUAL FUND

COMPARISON BETWEEN NAV (NET ASSET VALUE) IN JM FINANCE MF SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

JM NIFTY PLLUS FUND

JM TAX GAIN FUND

JM ARBITRAGE ADVANTAGE

FUND

JM EQUITY FUND

JM BASIC FUND

% TO NAV-2008

8.5 10.11 2.35 2.09 0.02

% TO NAV 2009

8.6 7.18 6.21 4.05 0.06

13579

11

COMPARISON BETWEEN NAV(NET ASSET VALUE) IN JM FINANCE MF SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

% T

O N

AV

INTERPRETATION

From the above graph, we can interpret that JM tax gain fund scheme has highest NAV which is 10.11% in 2008 and JM basic fund has lowest NAV which is o.o2% in 2008.

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COMPARISON BETWEEN MARKET VALUE IN JM FINANCE MF SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

JM NIFTY PLUS FUND

JM TAX GAIN FUND

JM ARBITRAGE ADVANTAGE

FUND

JM EQUITY FUND

JM BASIC FUND

MARKET VALUE (Rs IN LAKH)-2008

235.45 465.41 680.93 157 20.72

MARKET VALUE (Rs IN LAKH)-2009

257.65 236.76 383.54 235.5 46.83

50

250

450

650

COMPARSION BETWEEN MARKET VALUE IN JM FINANCE SCHEMES IN 2008 AND 2009 FOR RELIANCE INDUSTRY LTD

MAR

KET V

ALUE

(Rs I

NLAK

H)

INTERPRETATION

From the above graph, we can interpret that JM arbitrage advantage fund has highest market value in 2008 which is Rs. 680.93 lakhs and the lowest market value is of JM basic fund in 2008 which is Rs. 20.72 lakhs.

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COMPARSION BETWEEN NAV IN JM FINANCE MF SCHEMES IN 2008 AND 2009 FOR ONGC

JM ARBITRAGE ADVAN-TAGE FUND

JM EQUITY FUND JM NIFTY PLUS FUND

% TO NAV IN 2008

1.52 3.6 5.98

% TO NAV IN 2009

6.77 4.3 2.38

0.51.52.53.54.55.56.5

COMPARSION BETWEEN NAV IN JM FINANCE MF SCHEMES IN 2008 AND 2009 FOR ONGC

% N

AV IN

200

8 AN

D 20

09

INTERPRETATION

From the above graph, we can interpret that JM arbitrage advantage fund has highest NAV in 2009 which is 6.77% NAV while it is lowest in 2008 which value is 1.52%NAV.

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JM ARBITRAGE FUND WITH DIFFENT MARKET VAUE AND DIFFERENT % NAV

JM ARBITRAGE FUND

YEAR ISSUER MARKET VALUE(Rs IN LAKHS) % TO NAV31-03-2008 PETROLIUM PRODUCTS 8363.78 11.84

OIL SECTOR 1072.98 1.5230-09-2008 PETROLIUM PRODUCTS 2990.95 6.04

OIL SECTOR 1965.42 6.7731-03-2009 PETROLIUM PRODUCTS 680.93 2.35

OIL SECTOR 1395.2 2.2630-09-2009 PETROLIUM PRODUCTS 3832.54 6.21

OIL SECTOR 257.93 0.4430-01-2010 PETROLIUM PRODUCTS 2380.88 4.05

INTERPRETATION

From the above table we can interpret that highest NAV for petroleum sector is 11.84% NAV as on 31st march 2008 and lowest is 2.35% NAV as on 31st march 2009. While for oil sector, highest NAV is 6.77 %NAV as on 30th September 2008 and lowest NAV for oil sector is 0.44%NAV as on 30th September 2009. We also conclude that highest market value for petroleum sector is Rs.8363.78 lakh as on 31st march 2008 and lowest is Rs.680.93lakhs as on 31st march 2009. While in oil sector, highest market value is Rs.1965.42 lakh as on 30 th

September 2008 and lowest market vaue is Rs.257.93 lakh as on 30th September 2009.

Objective of research;18 | P a g e

The main objective of this project is concerned with getting the opinion of people

regarding mutual funds and what they feel about availing the services of financial

advisors.

We have tried to explore the general opinion about mutual funds. It also covers why/ why

not investors are availing the services of financial advisors.

Scope of the study:

The research was carried on in the West Region of India. It is restricted to Ahmedabad. We have

visited people randomly nearby my locality, different shopping malls, small retailers etc.

Data sources:

Research is totally based on primary data. Secondary data can be used only for the reference.

Research has been done by primary data collection, and primary data has been collected by

interacting with various people.

Sampling:

Sampling procedure:

The sample is selected in a random way, irrespective of them being investor or not or

availing the services or not. It was collected through mails and personal visits to the

known persons, by formal and informal talks and through filling up the questionnaire

prepared. The data has been analyzed by using the measures of central tendencies like

mean, median, mode. The group has been selected and the analysis has been done on the

basis statistical tools available.

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Sample size:

The sample size of my project is limited to 40 only.

Sample design:

Data has been presented with the help of bar graph, pie charts, line graphs etc.

DATA ANALYSIS AND INTERPERTETION

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1.(a) Age distribution of Investors in Ahmedabad.

Interpretation:

According to this chart out of 40 Mutual Fund investors in Ahmedabad the most are in the age group of 36-45 yrs. i.e. 60%, the second most investors are in the age group of 46-55yrs i.e. 26% and the least investors are in the age group of below 25 yrs.

1.(b) Qualification of Investors .

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Less then 25 26 to 35 36 to 45 46 to 55 Above 560

2

4

6

8

10

12

14

16

18

3

7

18

8

4

Age group

No.

of i

nves

tors

Table-1Age No. of investorsLess then 25 326 to 35 736 to 45 1846 to 55 8Above 56 4

Table-2Graduation/PG 26Under Graduate 8Others 6

Interpretation:

Out of 40 Mutual Fund investors 65% of the investors in Ahmedabad are Graduate/Post Graduate, 20% are Under Graduate and 15% are others (under HSC).

1.(c) Occupation of the Investors.

Table-3Government sec. 8Private sec. 16Business 12Other 4

Interpretation:

In Occupation group out of 40 investors, 40% are Pvt. Employees, 30% are Businessman, 8% are Govt. Employees and 5% are in others.

1.(d) Income of the Investors.

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Occupation

Government sec. Private sec.

Business Other

Graduation/PG65%

Under Graduate20%

Others15%

Investors

Table-4Income per monthUp to Rs.10,000 4Rs. 10,001 to 15000 5Rs. 15,001 to 20,000 8Rs. 20,001 to 30,000 13Rs. 30,001 and above 10

Interpretation:

In the Income Group of the investors of Ahmedabad, out of 40 investors, 33% investors that is the maximum investors are in the monthly income group Rs. 20,001 to Rs. 30,000, Second one i.e. 25% investors are in the monthly is income group of more than Rs. 30,000 and the minimum investors i.e. 10% are in the monthly income group of below Rs. 10,000.

2. Perception of the investors about Investment

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Up to Rs.10,000 Rs. 10,001 to 15000

Rs. 15,001 to 20,000

Rs. 20,001 to 30,000

Rs. 30,001 and above

0

2

4

6

8

10

12

14

Table-5

Observation ResponsesHigh future optimization 8Recession 2Income generation 10Vague option 1Tax benefit 6Future uncertainty 13

High fu

ture

optim

ization

Reces

sion

Inco

me

gener

ation

Vague

option

Tax

benefi

t

Futu

re u

ncert

ainty0

2

4

6

8

10

12

14

8

2

10

1

6

13

Interpretation:

As per the perception of the investors of Ahmedabad, out of 40 investors, 32.5% investors do their investment because of the future uncertainty, 25% invest for income genereion, 20% for high future optimization and 15% for tax benefit.

3. People who are investing.

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Interpretation:

Group of the people who is investing their money is very high in proportion of the people who do not like to invest their money which is clearly seen in the observation that 80% of the people invest their money where as only 20% people do not like to invest their money.

4. Type of the investment people have.

Table-7

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32

8

Table-6Observation ResponsesYes 32No 8

Type of investment Responses % Response Saving account 38 95%Insurance 32 80%Fixed deposit 25 62.5%Real estate 9 22.5%Shares 24 60%Mutual fund 30 75%Post office 15 37%Gold/silver 7 17.5%PPF/PF 14 35%

Interpretation:

From the above graph it can be inferred that out of 40 people, 95% people have invested in Saving A/c, 80% in Insurance, 65.5% in Fixed Deposits, 75% in Mutual Fund, 37% in Post Office, 60% in Shares or Debentures, 17% in Gold/Silver and 22.5% in Real Estate.

5. Purpose of Investment

Table-8

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Saving account

Insurance Fixed deposit

Real estate Shares Mutual fund

Post office Gold/silver

PPF/PF0

5

10

15

20

25

30

35

40

38

32

25

9

24

30

15

7

14

Purpose Responses % Responses Tax benefit 15 37.5%Market trend 8 20%Passion 5 12.5%Surplus income 34 85%Other (please specify) 10 40%

Tax benefit Market trend Passion Surplus income Other 0

5

10

15

20

25

30

35

15

85

34

10

Interpretation:

From the above graph it can be inferred that out of 40 people, 85% people have invested to get surplus income, 37% for tax benefit, 20% of people influenced by market abd 40% people have a reason like his friend told him, no specific reason etc.

6. Criteria for Investment.

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Table-9 Stability of return 11Maximum benefits 14Low risk 5Tax benefits 6Other (please specify) 3Diversification 1

Stability of return; 11

Maximum benefits; 14

Low risk; 5

Tax benefits; 6

Other, 3 Diversificatin, 1

Interpretation:

From the response we received and from above graph it can be inferred that out of 40 people,14 people have invested their money to get maximum benefit that may includes surplus income, 11 people have invested to get continues returns and only 1 person has invested his money for diversification.

7. Investment in different Mutual fund

Table-10Mutual Fund Responses %Responses

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SBIMF 30 75%UTI 14 35%HDFC 16 40%Reliance 32 80%ICICI prudential funds 23 57.5%JM finance 9 22.5%Other (please specify) 12 30%

Interpretation:

From the above graph it can be inferred that 80% people have invested their money in Reliance mutual fund which shows that Reliance is the most popular mutual fund, then 75% invested in SBIMF and 57.57% in ICICI prudential mutual fund, 40% have invested in HDFC mutual fund other mutual fund includes Kotak, ABN amro, Bank of Baroda etc.

8. Term of Investment in Mutual fund.

Table-11

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SBIM

FU

TI

HDFC

Relia

nce

ICIC

I pru

dential

funds

JM fi

nance

Oth

er 0

5

10

15

20

25

30

35

30

14 16

32

23

9 12

One time investment 14Monthly Systemic investment plan 22Daily systemic investment plan 4

Interpretation:

Above graph how those out of 40 people 22 have invested their money as a monthly Systematic investment plan (SIP), 14 people have invested in one time investment and only 4 people have preferred to do their investment in daily systematic investment plan. This results show that 55% people prefers to investment in monthly SIP.

9. Sources of Investment in Mutual fund.

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One time ; 14

Monthly SIP; 22

Daily SIP; 4

Table-12Direct from the AMCs 6Brokers only 10Sub-brokers 20Other sources (please specify) 4

Direct from the AMCs Brokers only Sub-brokers Other sources 0

2

4

6

8

10

12

14

16

18

20

6

10

20

4

Interpretation:

Above graph show that out of 40, 20 people prefers to invest their money in mutual fund though sub-brokers which includes all the agents and financial advisors, whereas 10 people do their investment through main brokers and only 6 people have did their investment directly through the AMCs. Here, other refers like friend and family advised them to do investment.

10. Most preferred AMC by Mutual fund Investors.

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Table-12AMCs Responses %ResponsesSBIMF 28 70%UTI 21 52.5%Reliance 26 65%HDFC 17 42.5%KOTAL 12 30%ICICI 24 60%JM Finance 8 20%

Interpretation:

Above graph shows that out of 40 people in Ahmedabad, 70% prefers that SBIMF is bets AMC where as 65% prefers that Reliance is the most preferable. ICICI prudential fund was preferred by 60% people and then UTI was preferred by 52.5% people. Whereas HDFC was preferred by 42.5% and Kotak and JM finance stand to 30% and 20%.

11.Investment in particular Sector.

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SBIMF UTI Reliance HDFC KOTAL ICICI JM Finance0

5

10

15

20

25

30

28

21

26

17

12

24

8

Table-13Sector Responses %Responses General fund 20 50%Oil and petroleum 12 30%Gold fund 8 20%Diversified equity fund 4 10%Power equity fund 24 60%Debt fund 14 35%Banking fund 28 70%Real estate fund 33 82.5%

Inference:

Percentage obtained form the received data show that majority of the investment is done in the Real estate i.e. 82.5%, and banking sector has an investment of 70%. After the banking sector 60% of the investment is done in the Power sector, 50% in general fund and 35% investment in Debt fund. Where as investment in Oil and petroleum, Gold fund and Diversification is 30%, 20% and 10%

12.Criteria for future investment among the Investors.

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General f

und

Oil and petro

leum

Gold fund

Diversi

fied equity fu

nd

Power equity

fund

Debt fund

Banking fu

nd

Real esta

te fu

nd0

5

10

15

20

25

30

35

2012 8 4

2414

2833

Sector

Re

spo

nse

s

Table-14Growth in NAV 2Having only debt portfolio 11Having debt & equity portfolio 9Only equity portfolio 18

Interpretation:

Out of 40 people 18 people looks the Only equity portfolio before investing money and 11 looked for Only debt portfolio. Whereas 9 people have looked for equity and debt portfolio. Only 2 people have a preference for investment was Growth in NAV.

APPENDIX-1

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Growth in NAV; 2

Having only debt portfo-

lio; 11

Having debt & equity portfo-lio; 9

Only equity portfolio; 18

QUESTIONNAIRE

To study a preferences of the investors for investment in Mutual funds

1. What do you think about the investment?

a) High future optimizationb) Recessionc) Income generationd) Vague optione) Tax benefitf) Future uncertainty

2. Have you been investing?

a) Yes b) No

3. What kind of instrument you have invested?

a) Saving accountb) Insurancec) Fixed depositd) Real estatee) Sharesf) Mutual fundg) Post officeh) Gold/silveri) PPF/PF

4. Why do you invest?

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a) Tax benefitb) Market trendc) Passiond) Surplus incomee) Other (please specify)

5. What criteria do your look during investment?

a) Stability of returnb) Maximum benefitsc) Low riskd) Tax benefitse) Other (please specify)f) Diversification

6. Which of Mutual fund you have obtained?

a) SBIMFb) UTIc) HDFCd) Reliancee) ICICI prudential fundsf) JM financeg) Other (please specify)

7. When you invest in mutual fund which mode of investment will you prefer?

a) One time investmentb) Monthly Systemic investment planc) Daily systemic investment plan

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8. From where do you practice mutual fund?

a) Direct from the AMCsb) Brokers onlyc) Sub-brokersd) Other sources (please specify)

9. Which of the following AMC you have approach so far? Please rank them according to saving.

a) SBIMFb) UTIc) Relianced) HDFCe) KOTALf) ICICIg) JM Finance

10. Which of the following do you prefer?

a) General fundb) Oil and petroleumc) Gold fundd) Diversified equity funde) Power equity fundf) Debt fundg) Banking fundh) Real estate fund

11. What will you prefer from the following option for future investment in mutual fund?

a) Growth in NAVb) Having only debt portfolioc) Having debt & equity portfoliod) Only equity portfolio

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12. Personal Details:

(a). Name:-

(b). Add: - Contact No:-

(c). Age:-

(d). Qualification:-

(e). Occupation. Pl tick (√)

Govt. Sec Pvt. Sec Business Agriculture Others

(g). What is your monthly family income approximately? Pl tick (√).

Up to Rs.10,000

Rs. 10,001 to 15000

Rs. 15,001 to 20,000

Rs. 20,001 to 30,000

Rs. 30,001 and above

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Graduation/PG Under Graduate Others

APPENDIX-2

Table-1

RELIANCE INDUSTRY LTD

SBIMF SCHEMES MARKET VALUE(Rs IN LAKHS) IN 2008

% TO NAV IN 2008

MAGNUM TAX GAIN SCHEME-1993 14771.06 4.68

SBI ONE INDIA FUND 7820.25 5.54

SBI BLUECHIP FUND 5381.49 4.74

MAGNUM MULTICAP FUND 4761.11 6.05

SBI ABBITRAGE OPPRTUNITIES 4605.99 9.1

MAGNUM COMA FUND 4576.55 8.02

MAGNUM BALANCED FUND-1995 1924.83 5.19

MAGNUM EQUITY FUND 1811.6 5.53

SBI TAX ADVANTAGE FUND 1585.14 2.55

SBI INFRASTRUCTURE FUND 1250 0.51

MAGNUM SECTOR FUNDS UMBRELLA-CNTRA FUND

1109.34 4.97

MAGNUM INDEX FUND 197.19 11.1

MAGNUM CHILDREN'S BENEFIT FUND 66.8 3.31

MAGNUM INCOME PLUS FUND-INVESTMENT PLAN

39.18 7.05

MAGNUM INVESTMENT NRI FUND-FLEXI ASSET PLAN

22.09 3.11

MAGNUM MONTHLY INCOME PLAN-FLOATER

13.59 1.02

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Table-2

RELIANCE INDUSTRY LTD

SBIMF SCHEMESMARKET VALUE(Rs IN

LAKHS) IN 2009% TO NAV IN

2009

MAGNUM TAX GAIN SCHEME-1993 14508.94 5.2MAGNUM SECTOR FUNDS UMBRELLA-CNTRA FUND

10871.02 6.15

SBI INFRASTRUCTURE FUND 7086.31 5.76SBI BLUECHIP FUND 4179.6 5.94MAGNUM COMA FUND 3459.19 8.72SBI ONE INDIA FUND 3051.59 4.21MAGNUM MULTICAP FUND 2740.98 6.19SBI TAX ADVANTAGE FUND 2444.16 6.61MAGNUM BALANCED FUND-1995 1675.52 5.46MAGNUM EQUITY FUND 1218.56 5.61MAGNUM INDEX FUND 178.73 11.97MAGNUM INVESTMENT NRI FUND-FLEXI ASSET PLAN

38.06 5.35

MAGNUM INCOME PLUS FUND-INVESTMENT PLAN

26.35 6.89

MAGNUM CHILDREN'S BENEFIT FUND 44.93 2.31MAGNUM MONTHLY INCOME PLAN-FLOATER

9.14 0.85

SBI ABBITRAGE OPPRTUNITIES 31.99 0.09OIL AND NTURAL GAS CORPORATION LTD

SBIMF SCHEMESMARKET VALUE(Rs IN

LAKHS) IN 2008% TO NAV IN

2008MAGNUM TAX GAIN SCHEME-1993 6743.75 2.14SBI ONE INDIA FUND 4416.07 3.13MAGNUM SECTOR FUNDS UMBRELLA-CNTRA FUND

4072.6 1.83

SBI ABBITRAGE OPPRTUNITIES 3089.04 6.1SBI BLUECHIP FUND 2995.51 2.64SBI INFRASTRUCTURE FUND 2879.98 1.78MAGNUM COMA FUND 2790.68 4.89MAGNUM MULTICAP FUND 1530.72 2.53MAGNUM BALANCED FUND-1995 942.1 2.54SBI TAX ADVANTAGE FUND 490.67 0.79MAGNUM INDEX FUND 125.59 7.05MAGNUM INVESTMENT NRI FUND-FLEXI ASSET PLAN

40.24 3.5

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Table-3OIL AND NTURAL GAS CORPORATION LTD

SBIMF SCHEMESMARKET VALUE(Rs IN

LAKHS) IN 2009% TO NAV IN

2009

MAGNUM TAX GAIN SCHEME-1993 9586.65 3.44

MAGNUM SECTOR FUNDS UMBRELLA-CNTRA FUND

6277.4 3.55

SBI ONE INDIA FUND 3508.65 4.85

SBI INFRASTRUCTURE FUND 3118.8 2.54

SBI BLUECHIP FUND 2083.7 2.96

MAGNUM MULTICAP FUND 1565.77 3.53

SBI TAX ADVANTAGE FUND 1529.45 4.14

MAGNUM COMA FUND 1515.52 3.82

MAGNUM BALANCED FUND-1995 896.66 2.92

SBI ABBITRAGE OPPRTUNITIES 347.36 1

MAGNUM INDEX FUND 123.61 8.28

MAGNUM INVESTMENT NRI FUND-FLEXI ASSET PLAN

31.97 4.49

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Table-4

RELIANCE INDUSTRY LTD

JM FINANCE SCHEMES

MARKET VALUE(Rs IN LAKHS) IN 2008

MARKET VALUE(Rs IN LAKHS) IN 2009

% TO NAV IN

2008

% TO NAV IN

2009

JM NIFTY PLUS FUND

235.45 257.65 8.5 8.6

JM TAX GAIN FUND

465.41 236.76 10.11 7.18

JM ARBITRAGE ADVANTAGE FUND

680.93 3832.54 2.35 6.21

JM EQUITY FUND 157 235.5 2.09 4.05

JM BASIC FUND 20.72 46.83 0.02 0.06

Table-5

OIL AND NATURAL GAS CORPORATION(ONGC)

JM FINANCE SCHEMES % TO NAV IN 2008 % TO NAV IN 2009

JM ARBITRAGE ADVANTAGE FUND

1.52 6.77

JM EQUITY FUND 3.6 4.3

JM NIFTY PLUS FUND 5.98 2.38

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