project on mutual fund

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STUDY OF MUTUAL FUND(IN AMRAVATI CITY & WITH REFERENCE TO STATE

BANK OF INDIA)

A PROJECT SUBMITTED BYRAKHI K. JAISWAL

MBA I

UNDER THE GUIDANCE OFMr. UNNI

(Chief Manager, main branch, Amt.)

TOSTATE BANK OF INDIAMain branch, Amravati.

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INDEX

Sr.No Name of the Chapter Page No.

1 Abstract 3

2 Mutual fund 5

3 Research Methodology 12

4 Data Interpretation & Analysis 16

5 Conclusions & Suggestion 24

6 Questionnaire 26

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Abstract 

Introduction

      Mutual fund is investment product that operates on the principle of “strength in numbers”. They collect money from large group of investors, pool it together and invest it in various securities and in capital market in line with their objective. They are an alternative to investing to directly. With increase in awareness about new investment avenues and with an ambition to gain maximum returns many people are looking for new investment options other than traditional banking system affairs. There are various investment avenues available to an investor such as  real estate, bank deposits, post office deposits, shares, debentures, bonds etc. A mutual fund is one more type of investment  avenue available to investors.  Investors need to keep their hard earned money in an investment option which yields them more attractive returns along with the low risk tolerance here is when mutual fund comes in picture. There are many reasons why investors prefer mutual funds.

      Most of the Mutual Fund companies launched various schemes such as equity, balance, debt, tax saver, etc.. These schemes are available with traditional schemes i.e.PPF, NSC, NSS, FD. Etc. All these traditional schemes generating very low revenue i.e. up to 8 to 10%. But Mutual Fund can generate more than 10 to 25% return. The basic reason behind this good return and future planning.

Research Problem

      Mutual Fund is one of the most preferred investment avenues in India. This study undertakes the work to find out awareness of mutual fund among the people, based on this awareness the prospective future for mutual fund in Amravati need to be studied. Thus to find out the potential future of mutual fund depending upon the awareness of the people of Amravati, constitute a research problem.

Research Objectives

      ‘The main aim of research is to find out the truth which is hidden and which has not been discovered’

      The study had following objectives: 

1. To study the financial awareness of the investors regarding mutual funds in Amravati city.

2. To know the investors approach towards the various mutual fund companies.

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Research Methodology

Primary data was collected through questionnaire Secondary data was collected through Magazines i.e. Business World and Outlook Money Books i.e. Indian Mutual Fund Newspaper i.e. Times of India

Universe

People of Amravati city was the universe for study. 

Sample size

The sample size for study was 60 respondents. 

Sampling Techniques

Convenience sampling technique was used. 

Conclusions

1) Majority of the people of amravati knows about the mutual fund but there are still 37% who does not know what is mutual fund.

2) The percentage of mutual fund investor in Amravati city is low i.e.48%, this is so because of less knowledge about mutual fund people does not invest in mutual fund.

3) There are 58% of responded aware about sbi mutual fund & 42% are still unaware. It is conclude that sbi mutual fund is not so popular in Amravati city.

4) Only 15% respondend invest in sbi mutual fund, which is very less no. of people, it means that already all people are not aware about mutual fund & those who are aware from them very less number of people prefer to sbi mutual fund. The reason might be that other mutual funds are providing better service or sbi is not properly advertising its product.

5) It is found that the main objective of majority of investor is getting higher return on investment.

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CHAPTER- II

MUTUAL FUND

2.1 Introduction 

      With increase in awareness about new investment avenues and with an ambition to gain maximum returns many people are looking for new investment options other than traditional banking system affairs. Investors need to keep their hard earned money in an investment option which yields them more attractive returns along with the low risk tolerance here is when mutual fund comes in picture.

       A mutual fund pools money from people with similar investment goals and invested in various securities depending on the objective of different schemes. The profit or losses are shared among investor in proportion of their investment. Investment in mutual fund has seen healthy growth in last few years with the entry of private sector funds in 1993, a new era started in mutual fund industry giving the India investor a wide choice of funds.

                                        Working of a mutual fund

      Mutual funds are playing a remarkable role in the securities market. Lots of organizations have come forward to set up mutual funds. The concept works like a cooperative scheme. The public and the shareholders are very optimistic on the functioning of mutual funds. As a matter of fact huge money is pooled through mutual funds. Mutual fund companies are constantly creating awareness among investors and stakeholders. The future looks great for mutual funds. Mutual fund companies also generate lots of employment opportunities. As a result the economy of the nation gets stabilized. Some of the mutual fund companies are known to distribute good profits to the investors. This is one of the best options for people who are thinking about investments for the first time.  

2.2 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. The history of mutual funds in India can be broadly divided into four distinct phases.

2.2.1 First Phase – 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

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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 cores of assets under management 

2.2.2 Second Phase – 1987-1993 (Entry of Public Sector Funds)

      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 cores. 

2.2.3 Third Phase – 1993-2003 (Entry of Private Sector Funds)

      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 UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.

           The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.

      The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 cores. The Unit Trust of India with Rs.44, 541 cores of assets under management was way ahead of other mutual funds. 

2.2.4 Fourth Phase – 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 cores 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.

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With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 cores 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 September, 2004, there were 29 funds, which manage assets of Rs.153108 cores under 421 schemes.

Advantages Of mutual fund:

Professional Management 

      The primary advantage of funds (at least theoretically) is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolios. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.

Diversification

      By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you (think about Enron). Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn't be possible for an investor to build this kind of a portfolio with a small amount of money.  

Economies of Scale 

      Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions.

Liquidity 

      Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time.

Simplicity

       Buying a mutual fund is easy and pretty well but the bank has its own line of mutual funds, and the minimum investment is small. Most companies also have automatic purchase plans whereby as little as $100 can be invested on a monthly basis.

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Disadvantages of Mutual Funds

Professional Management

      Many investors debate whether or not the so-called professionals are any better than you or I at picking stocks. Management is by no means infallible, and, even if the fund loses money, the manager still takes his/her cut.  

Costs

      Mutual funds don't exist solely to make your life easier - all funds are in it for a profit. The mutual fund industry is masterful at burying costs under layers of jargon. These costs are so complicated that in this tutorial we have devoted an entire section to the subject.

Dilution

       It's possible to have too much diversification. Because funds have small holdings in so many different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

Taxes

        When making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capit

2.3 Organization of a Mutual Fund

                                     Organization of a Mutual Fund 

     A mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset Management Company (AMC) and custodian.  The trust is established by a sponsor who is like promoter of a company.  The trustees of the mutual fund hold its property for the

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benefit of the unit holders.  Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities.  Custodian, who is also registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI regulations by the mutual fund. 

Types of Mutual Fund :

  2.4.1 On The Basis Of Objectives

Equity Funds or Growth Funds o Funds that invest in equity shares are called equity funds. They carry the

principal objective of capital appreciation of the investment over the median to long term. The returns in such funds are volatile since they are directly linked to the stock market. They are different types of equity funds such as diversified funds, sector specified funds and index based funds.

Diversified Funds o These funds invest in companies spread sectors. These funds are generally

meant for risk taking investors who are not bullish about any particular sector.

Sector Funds o These funds invest primarily in equity share of companies in a particular

business sector or industry. These funds are targeted at investors who are extremely bullish about a particular sector.

Index Fund

o These funds invest in the same pattern as popular market indices like S&P 500 and BSE Index. The value of the fund varies in proportion to the benchmark index.

Tax Saving Fund o These fund offer tax benefit to investor under the income tax act.

Opportunities provided under this schemes are in the form of tax rebates U/s  88 as well saving in Capital Gain U/s 54EA and 54EB. They are best suited for investors seeking tax concessions.

Debt/ Income Funds o These funds invest predominantly in high rated fixed income bearing

instruments like bonds, debentures, government securities, commercial papers and money market instrument. They are best suited for the medium to long term investors who are averse to risk and seek capital preservation. They provide regular income and safety to the investor.

Liquid Funds / Money Market Funds

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o These funds invest in highly liquid money market instruments. The period of investment could be as short as a day. They provide easy liquidity. They have emerged as an alternative for saving and short term fixed deposit accounts with comparatively higher returns. These funds are ideal for corporate, institutional investors and business houses who invest their funds for very short periods.

Gilt Funds o These funds invest in Central and State Government securities. Since they

are Government backed bonds they give a secured return and also ensure safety of the principal amount. They are best suited for the medium to long term investors who are averse to risk.

Balanced Funds o These funds invest both in equity shares and fixed income bearing

instruments (debt) in some proportion. They provide a steady return and reduce the volatility of the fund while providing some upside for capital appreciation. They are ideal for medium to long term investor willing to take moderate risks.

Hedge Funds o These funds adopt highly speculative trading strategies. They hedge in

order to order to increase the value of the portfolio.

2.4.2 On the Basis Of Flexibility 

Open-ended Funds o These funds do not have a fixed date of redemption. Generally they are for

subscription and redemption throughout the year. Their prices are linked to the daily net asset value (NAV). From the investor’s perspective, they are much more liquid than closed-ended funds. Investors are permitted to join or withdrew from the fund after an initial lock in period.

Close-ended Funds o These funds are open initially for entry during the Initial Public Offer

(IPO) and thereafter closed for entry as well as exit. These funds have fixed date of redemption. One of the characteristic of the closed-ended scheme is that they are generally traded at a discount to NAV; but the discount narrows as maturity nears. These funds are open for subscription only once on the fixed date of redemption.

Interval Funds

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o These funds combine the features of both open-ended and funds where in the fund is closed-ended for the first couple of years and open-ended thereafter. Some funds allow fresh subscriptions and redemption at fixed times every year (say six months) in order the administrative aspects of daily entry or exit, yet providing reasonable liquidity.

3. On The Basis Of Geographic Location

Domestic Funds

   These funds mobilize the saving of nationals within the country.

Offshore Funds

         These funds facilitate cross border fund flow. They invest in securities of foreign companies. They attract foreign facilitate cross border fund flow. They invest in securities of foreign companies. They attract foreign capital for investment.

You can make money from a mutual fund in three ways:

1. Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all of the income it receives over the year to fund owners in the form of a distribution.

2. If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass on these gains to investors in a distribution.

3. If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. You can then sell your mutual fund shares for a profit.

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CHAPTER III

RESEARCH METHODOLOGY

3.1 Introduction

      Research is the systematic method of collection, recording facts in the forms of numerical data relevant to the formulating at a problems and arriving at a certain conclusion over the problem bases on the collected data.  Research can be defined as logical and systematic means or technique to discover new facts or verify facts, analyse their sequence, interrelationship and casual explanations which were derived with an appropriate theoretical frame of reference develop new scientific tools, concept theories which would facilitate reliable and valid study on human behavior. As such the term “research” refers to the systematic method consisting of enunciating the problems formulating data, analysis, collecting the fact of certain conclusion the facts and reaching of solution towards the concerned problem or in certain generalization for some theoretical formulating. 

3.2  Research Problem

      Define research problem allows the researcher to focus on the how, what, which, who, when, where, why question needed to guide the formulation or research objectives.  All the efforts, time and money spent to execute research will waste if research problems are misunderstood.

      Mutual Fund is one of the most preferred investment avenues in India. This study undertakes the work to find out awareness of mutual fund among the people, based on this awareness the prospective future for mutual fund in Amravati need to be studied. Thus to find out the potential future of mutual fund depending upon the awareness of the people of Amravati, constitute a research problem.

3.3 Research Objectives

      ‘The main aim of research is to find out the truth which is hidden and which has not been discovered’

      The study had following objectives 

1.  To study the investment pattern of citizen in Amravati city.

      There are lots of investment avenues available to investor for investment. Investment is done by investors by keeping different intention in mind. According to their different requirement they like to invest in different types of investment avenues such as stock market, fixed deposit, mutual fund, real estate, etc.  At the same time they also consider investment avenue which provide them more attractive returns with low risk tolerance. 

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Hence there is a need to study the investment pattern of investor’s.  

2. To study the financial awareness of the investors regarding mutual funds.

      There are too many Mutual funds companies are working in the market. Considering different requirement of different type of investor, various schemes are launched by all of these Mutual Fund Companies with the number of benefit for the investors i.e. tax saving and good returns with low risk tolerance. Hence to the study the financial awareness of investor regarding mutual fund. 

3. To know the investors approach towards the various mutual fund companies.

   The market consists of variety of mutual funds companies with different schemes and different risk and return options.  The investor need to keep their hard earned money in that mutual fund company  which yield them more attractive returns with low risk tolerance.  Hence it is necessary to know the investors approach towards the various mutual fund companies such as SBI mutual fund, Reliance Mutual Fund, and Birla Sun Life Mutual Fund, etc. 

3.4 Research Design

 Re sear ch Design 

It is the plan structure and strategy of investigation conceived so as to obtained answers to research questions and research design is the specification of methods and procedures for acquiring the information needed.   3.4.1 Data Collection 

      Data means information required in research.  Data has been collected from primary and secondary sources.

A) Primary data

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Primary Data

1. Interviews

2. Questionnaire

 Secondary Data

  1) Books 2) Magazines

3. Websites 4. Newspapers

Classification

&Tabulation

Analysis & Interpretation

Conclusions

Suggestions

& Findings

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      Primary data are those which are collected a fresh and for the first time.  Primary data was collected through questionnaire.

      The researcher selected this method for study because it was more useful and economical in the situation.  It isolates the respondent form external influence.  The respondent was totally free to express the views according to his/her knowledge, view and attitudes in on unbiased manner.  Data obtained without external influence is more valid and reliable.

B) Secondary data

      Secondary data are those which have already been collected by someone else and which have been passed through statistical process.  Secondary data was collected through Books, Magazines, Websites and News Papers etc. 

3.4.2 Tools of Data Collection

      Data was collected through structured questionnaires of multiple choice questions based on objectives of studies.

      A structured questionnaire is a formal list questions frame so as to get the facts.  The interviewer asks the questions in accordance with prearranged order.  A questionnaire was designed keeping in mind research objectives. 

           Following are the advantages of using questionnaires as the tool of data collection.

1. It facilitates the collection of information in systematic and orderly manner. 2. It is free from the bias of interviewer. 3. Answers are in respondent’s own words. 4. Respondents have adequate time to give answers. 5. The qualitative and quantitative data can be collected. 6. Large samples can be covered.

         Hence researcher uses questionnaires as tool for data collection. 

3.4.3 Universe

      People of Amravati city was the universe for study. 

3.4.4 Sample Unit 

      It is primary purpose of research to discover principles that have universal applications.  According to Calvin, “Sample is a miniature picture or cross section of entire group.

      Sample was taken middle class people of Amravati city.. 

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3.4.5 Sample Size

            Determining the sample size is a very important issue because if that are too large may waste time, resources and money while samples that are too small may lead to inaccurate results.

      The researcher must consider the problem at hand, the budget and accuracy needed in the data before sample size to be decided.   

The sample size was 60 respondents.

3.4.6 Sampling Techniques

      A convenience sample is that where the samples are selected, in part or in whole, as per convenience of the researcher. The researcher makes no attempt, or only a limited attempt, to insure that this sample is an accurate representation of some larger group or population. The classic example of a convenience sample is standing at a shopping mall and selecting shoppers as they walk by to fill out a survey.

      A convenience sample chooses the individuals that are easiest to reach or sampling that is done easy. Hence convenience sampling method was used for the research. 

3.5 Limitations for study

      Every coin has two sides likewise each subject has two sides. Means each subjects for study has some scope as well as relevance’s and limitations. The limitation of this research is as follows

1. The study will be limited to Amravati city only.2. Sample size is small, that’s why drawing conclusion is difficult.

CHAPTER 4

DATA INTERPRETATION AND ANALYSIS 

Introduction

      Data are to be analyzed in a proper way by using different statistical tools for quantifiable data. From the questions of the questionnaire the researcher has attempted to arrive at an average opinion expressed by majority of respondents.

      There were total 60 respondents with whom the researcher managed to fill up the questionnaire. These 60 respondents are general public of Amravati city who gave their views & information about their mutual fund investment.

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      Before the collected data have been processed, it is necessary that these data must be analyzed. This chapter presents the data collected from the answer of questions from questionnaire in tabular form and with the help of charts. The percentage method is use for marking the analysis of the data.

      The analysis and interpretation of collected data has been done in the following manner.

The question asked and its objective has been discussed in the first part. Table showing responses, tabulation and frequency for each question follow it. Finally the interpretation drawn from the table and graph has been discussed in

brief.

4.1. Occupation wise distribution of respondent

Occupation No. of respondent Percentage

Govt. Employee 17 28%

Businessmen 21 35%

Private Employees 16 27%

Student 6 10%

Total 60 100% 

Occupation wise distribution

Govt.Employee28%

Businessmen35%

Private Employees27%

Student10%

Govt.Employee

Businessmen

Private Employees

Student

 INTERPRETATION

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From the above table and graph it can be interpreted that respondent constitute majority

of businessmen i.e. 35%, followed by govt. employee 28%, private employee 27% &

students are 10% of respondent..

4.2 Income wise distribution of respondent:  

Income wise distribution

6 7

15

32

10%

53%

25%

12%

0

5

10

15

20

25

30

35

Below 5000 5000-10000 10000-15000 Above 15000

Series2

Series1

  INTERPRETATION

From the above table and graph it can be interpreted that most of the respondent’s per month income is above 15000Rs, 25% from 10000-15000 group, 12% from 5000-10000 group & only 10% belongs to below 5000 income group.

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Income per month No. of respondent Percentage

Below 5000 6 10%

5000-10000 7 12%

10000-15000 15 25%

Above 15000 32 53%

Total 60 100%

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 4.3 Mutual fund awareness of respondent:

Option No. of respondent Percentage

Yes 38 63%

NO 22 37%

Total 60 100%

Yes, 38

Yes, 63%

NO, 22

NO, 37%

0

5

10

15

20

25

30

35

40

Yes NO

Mutual fund awareness

Series2

Series1

INTERPRETATION

From the above table and graph it can be interpreted that maximum percentage is 63% , it means 63% respondents are aware about mutual fund but there are still 37% those are unaware about mutual fund in Amravati city.

4.4 Response regarding mutual fund investment:

Option No. of respondent Percentage

Yes 29 48%

NO 31 52%

Total 60 100%

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Response regarding mutual fund Investment

Yes48%NO

52%

Yes

NO

 INTERPRETATION

From the above table and graph it can be interpreted that majority of people in Amravati city i.e.52%, does not invest their money in mutual fund and only 48% people are investing in mutual fund.

4.5 Response regarding awareness of SBI mutual fund:

Option No. of respondent Percentage

Yes 35 58%

NO 25 42%

Total 60 100%

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Awareness of SBI mutual fund

Yes58%

NO42% Yes

NO

 INTERPRETATION

From the above table and graph it can be interpreted that 58% people of Amravati aware about SBI mutual fund and 42% are unaware about SBI mutual fund.

4.6 Response regarding investment in SBI mutual fund: 

Option No. of respondent Percentage

Yes 9 15%

NO 51 85%

Total 60 100%

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SBI mutual fund investors

Yes15%

NO85%

Yes

NO

INTERPRETATION

From the above table and graph it can be interpreted that very few people of Amravati are investing their money in SBI mutual fund, maximum percentage of respondent is 85% those are not investing in SBI mutual fund.

4.7 Response regarding objective of investment in mutual fund:

Objective No. of Respondent Percentage

Return 37 62%

Low risk 7 12%

Security 11 18%

Liquidity 5 8%

Total 60 100

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Objectives of investment

37

711

5

8%

18%

12%

62%

0

5

10

15

20

25

30

35

40

Return Low risk Securitty Liquidity

Series2

Series1

INTERPRETATION

From the above table and graph it can be interpreted that most of the investor give preference to return while investing in mutual fund. 62% respondend choose return, 18% security, 12% see risk in investment & only 8% give preference to liquidity,

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CHAPTER V

             CONCLUSION, FINDINGS AND SUGGESTION 

Introduction

This chapter contains the Conclusion, Suggestion and Finding, which were based on the questionnaire, the response taken from respondents i.e. people of Amravati city. It is come across that investor invest in the different investment option as per their need. Investor invests for the different purpose such as future planning and good return. While selecting mutual fund as an avenue for investment most of the investors want to earn a good return on their investment at a low risk.

Conclusions

While going through the research process, researcher draws some findings and

conclusion on the basis of analysis of each factor that are affecting those facts of this

research study.

      From the analysis of the collected data following conclusions have been made-

6) Majority of the people of amravati knows about the mutual fund but there are still 37% who does not know what is mutual fund.

7) The percentage of mutual fund investor in Amravati city is low i.e.48%, this is so because of less knowledge about mutual fund people does not invest in mutual fund.

8) There are 58% of responded aware about sbi mutual fund & 42% are still unaware. It is conclude that sbi mutual fund is not so popular in Amravati city.

9) Only 15% respondend invest in sbi mutual fund, which is very less no. of people, it means that already all people are not aware about mutual fund & those who are aware from them very less number of people prefer to sbi mutual fund. The reason might be that other mutual funds are providing better service or sbi is not properly advertising its product.

10) It is found that the main objective of majority of investor is getting higher return on investment.

Suggestions

Suggestion is the opinion of the researcher after studying the finding, observation, conclusion that is the result of the various activities by the researcher.

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Different suggestion are given by the different researcher depend upon the seriousness of the problem; it is the different opinion of the researchers.

For Investors:

1) In mutual funds the investment decisions are taken by the fund managers who have lots of experience and knowledge in that field. Hence it is suggested to investors that just put their funds in the hands of expert people and try to get the knowledge about mutual funds.

2) There are some investment plans in mutual funds such as systematic investment plan where the investor can put money in small installment. It is suggested to investors that they can make use of such type of plan for investment.

3) The investor should check the risk level of the scheme and find out whether themselves is able or unable to bear that much risk.

4) The investors should not always chase the returns because what goes up must come down.

5) The investors should evaluate their schemes timely. These will be helping them in getting good returns from the scheme.

For Bank:

1) Bank should provide basic information about mutual fund to its customer; proper information & guidance help them to invest in mutual fund.

2) Most of people are interested in mutual fund but avoid it due to lack of knowledge & information, bank can approach such people through free seminars & providing information.

3) It is found that most of the people did not show interest in sbi mutual fund, for this bank try give better customer service and try to enhance its services compare to other mutual fund.

4) Bank should provide information desk at bank, from where customer can get information about mutual fund investment.

5) Launching special website of branch can help bank to provide customer easy access to bank product and services. This will help in improving customer service and satisfaction.

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QUESTIONNAIRE

(Mutual fund)

(Tick the option which you find appropriate)

1) Name : ____________________________________

2) Occupation :

1) Govt. Employee [ ] 2) Businessmen [ ]

3) Private Employee [ ] 4) Student [ ]

5) Other [ ]

3) Income per month

1) Below 5000 [ ] 2) 5000 –10,000 [ ]

3) 10000 – 15,000 [ ] 4) Above15,000 [ ]

4) Do you know what is mutual fund ?

1) Yes [ ] 2) No [ ]

5) Do you invest in mutual fund?

1) Yes [ ] 2) No [ ]

6) If yes then in which mutual fund and if no then, Why?

________________________________________________________

________________________________________________________

7) What is your average annual investment ?

________________________________________________________

_______________________________________________________

8) Are you aware about SBI Mutual fund?

1) Yes [ ] 2) No [ ]

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9) Do you invest in SBI Mutual fund?

1) Yes [ ] 2) No [ ]

10) What is your objective while investing in mutual Fund?

1) Return [ ] 2) Low Risk [ ]

3) Security [ ] 4) Liquidity[ ]

11) Are you satisfied by services of mutual fund?

1) Yes [ ] 2) No [ ]

12) Any suggestions for improvement in the service of mutual

fund?

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