Sbi Mutual Fund Project Report - baixardoc

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SUMMER INTERNSHIP PROJECT – 2013

ON

“INVESTOR PERCEPTION ABOUT INVESTMENT IN MUTUAL FUND”

SUBMITTED FOR THE

PARTIAL FULFILLMENT OF TWO YEARS FULL TIME

COURSE

MBA (2013-2015)

SUBMITTED TO

INTERNAL GUIDE: EXTERNAL GUIDE: N.N PANDAY Mr. ABHINAV CHOUDHRY IMS Unison University SBI Mutual fund pvt. Ltd.

SUBMITTED BY: AKSHAY TYAGI

13 MBA 068

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DECLARATION

We hereby declare that the project work entitled “INVESTOR PERCEPTION ABOUT INVESTMENT IN MUTUAL FUND” A SPECIAL REFERENCE TO SBI MUTUAL FUND PVT. LTD. submitted

to the “IMS UNISON UNIVERSITY”, is a record of an original work done by

us under the guidance of Prof. N.N. Panday, Faculty Member, MBA and this

project work has not performed the basis for the award of any Degree and

similar project if any.

AKSHAY TYAGI

13 MBA 068

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ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in the success of any

venture. In the present world of cutthroat competition project is likely a bridge between

theoretical and practical working, willingly we have prepared this particular project.

First of all, I would like to thank the supreme power, the almighty god who is obviously the

one who has always directed us to work on the right path of our life. With this grace this

grace this project could become a reality.

We feel highly delighted with the way our dissertation report on topic “INVESTOR’S

PERCEPTION ABOUT INVESTMENT” IN MUTUAL FUND: WITH SPECIAL

REFERENCE TO SBI MUTUAL FUND PVT. LTD. DEHRADUN” has been completed.

We would like to thanks Prof. N.N.Panday to provide us the fruitful guidance to complete the

project.

Finally, I would like to thanks all the faculty members and others people who helped us in

completing this project.

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INTERNAL GUIDE CERTIFICATE

I have the pleasure in certifying that Mr. AKSHAY TYAGI is a bonafide student of 3rd Semester of the Master’s Degree in Business Administration (Batch 2013-15), of IMS, Unison University, Dehradun, Roll No 13 MBA 068. He has completed his/her project work entitled “investor’s perception towards investment in mutual fund: a special reference to SBI Mutual fund management. Pvt. Ltd. dehradun” under my guidance. I certify that this is his/her original effort & has not been copied from any other source. This project has also not been submitted in any other Institute / University for the purpose of award of any Degree. This project fulfils the requirement of the curriculum prescribed by this Institute for the said course. I recommend this project work for evaluation & consideration for the award of Degree to the student. Signature : …………………………………… Name of the Guide : …………………………………… Designation : …………………………………… Date : ……………………………………

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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

100 people. For the collection of Primary data I made a questionnaire and surveyed of 100

people. I also taken interview of many People those who were coming at the SBI Branch where

I done my Project. I visited other AMCs in Dehradun to get some knowledge related to my

topic. I studied about the products and strategies of other AMCs in Dehradun to know why

people prefer to invest in those AMCs. This Project covers the topic “INVESTORS

PERCEPTION ABOUT INVESTMENT IN MUTUAL FUND.” The data collected has been

well organized and presented. I hope the research findings and conclusion will be of use.

.

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COMPANY CERTIFICATE

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CONTENTS

Sr. no. Chapter Page. No.

DECLERATION 2

ACKNOWLEDGMENT 3

INTERNAL GUIDE CERTIFICATE 4

EXECUTIVE SUMMARY 5

COMPANY CERTIFICATE 6

CHAPTER-01

1. INTRODUCTION 9

2. HISTORY OF MUTUAL FUND 12

3. INTRODUCTION TO ORGANISATION 14

4. SBI MUTUAL FUND PRODUCT 17

5. COMPETITORS 26

6. TYPE OF MUTUAL FUND SCHEMES 28

7. MERITS & DEMERITS OF MUTUAL FUND 42

CHAPTER-02

1. RESEARCH METHODOLOGY 51

CHAPTER-03

1. OBJECTIVE & SCOPE OF STUDY 55

CHAPTER-04

1. ANALYSIS & INTERPRETATION OF THE DATA

58

FINDINGD 71

CONCLUSION 73

RECOMMENDATIONS AND SUGGESTIONS 75

BIBLIOGRAPHY 77

ANNEXURE-QUESTIONNAIRE 78

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CHAPTER - 01

INTRODUCTION

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1. INTRODUCTION TO THE INDUSTRY

A mutual fund is a professionally-managed form of collective investments that pools

money from many investors and invests it in stocks, bonds, short-term money market

instruments, and/or other securities. In a mutual fund, the fund manager, who is also known as

the portfolio manager, trades the fund's underlying securities, realizing capital gains or losses,

and collects the dividend or interest income. The investment proceeds are then passed along to

the individual investors. The value of a share of the mutual fund, known as the net asset value

per share (NAV) is calculated daily based on the total value of the fund divided by the number

of shares currently issued and outstanding.

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 the 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 investments and the capital

appreciations realized are shared by its unit 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. Units are issued and can be redeemed as needed. The funds Net

Asset value (NAV) is determined each day.

Investments in securities are spread across a wide cross-section of industries and

sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may

not move in the same direction in the same proportion at the same time. Mutual fund issues

units to the investors in accordance with quantum of money invested by them. Investors of

mutual funds are known as unit holders.

When an investor subscribes for the units of a mutual fund, he becomes part owner of

the assets of the fund in the same proportion as his contribution amount put up with the corpus

(the total amount of the fund). Mutual Fund investor is also known as a mutual fund

shareholder or a unit holder.Any change in the value of the investments made into capital

market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV)