SUMMER TRAINING PROJECT REPORT ON

AWARENESS OF MUTUAL FUND AS AN INVESTMENT TOOL AMONG PUBLIC SECTOR BANKS INVESTORS

Submitted in partial fulfillment of the requirement for the award of Degree of Master of Business Administration By Gautam Buddh Technical University, Lucknow

By: TUSHAR SRIVASTAVA Roll No.:1112470152 MBA (Batch 2011-2013), 3rd semester Under the supervision of Mr. ANKUR TYAGI Senior Manager (PSU Banking Channel) UTI MUTUAL FUND Faculty Mentor Ms. NAMITA NIGAM Associate Professor

INSTITUTE OF COOPERATIVE CORPORATE MANAGEMENT, RESEARCH & TRAINING ,

21/467, RING ROAD, INDIRA NAGAR, LUCKNOW-226016

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DECLARATION

I, TUSHAR SRIVASTAVA, student of M.B.A. here by declare that the project report titled

AWARENESS

OF MUTUAL FUND AS AN INVESTMENT TOOL

AMONG PUBLIC SECTOR BANKS INVESTORSis completed under the guidance

of Mr. ANKUR TYAGI, is my original work. The imperial findings in this report are based on the data collected by me. This project has not been submitted to GAUTAM BUDDH TECHNICAL UNIVERSITY, LUCKNOW or any other university for the purpose of compliance of any requirement of any examination or degree.

Place: LUCKNOW Date: (TUSHAR SRIVASTAVA)

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Acknowledgements
Presenting a Summer Training project of this type is an arduous task, demanding a lot of time. I cannot in full measure reciprocate the kindness shown and contribution made by various persons in this endeavour. I will remember all of them with gratitude. I must, however, especially acknowledgement & my special sincere thanks towards Mr. Ankur Tyagi (Senior Manager of UTI Mutual Fund) for giving me a chance to take this project and for his valuable guidance, which helped me on all those points, which I needed to include in, with full intensity. I am extremely gratified to Asst.Prof. Ms. Namita Nigam who was extremely helpful in offering his professional expertise and bestowing me practical knowledge in all spheres related to the whole organization working. I am appreciative to this organization for full co-operation, support and motivation that helped me a lot in completing my summer training project here.

I am always beholden to the almighty God, for always being with me and showing me the right ways, my family, for always doing favours to me and my friends and colleagues consistently helped with encouragement and criticism throughout the project work, for always lifting my sights to higher vision.

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ABSTRACT
In few years Mutual Fund has emerged as a tool for ensuring ones 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 of number of retail mutual fund investors remaining small is that three in ten people do not know that mutual funds exist. 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, to create an investment need among such people and to use the right arguments in the sales process. Mutual funds are seemingly the easiest and the least stressful way to invest in the stock market. Quiet a large amount of money has been invested in mutual funds during the past few years. Any investor would like to invest in a reputed Mutual Fund organization. UTI is one such organization that provides a better overview of the Mutual Fund industry. Understanding the attitude of investors on their investment would help the company to increase their profits. In UTI they believe that the investors attitude would result in profits. The research was done on the topic AWARENESS OF MUTUAL FUND AS AN INVESTMENT TOOL AMONG PUBLIC SECTOR BANKS INVESTORS. The study aims at analysing the attitude of the investors towards UTI Mutual Funds. The project involves a study of mutual fund industry and evaluating and suggesting measures to create the awareness among unit bank investor about mutual funds of UTI Mutual fund and also to identify the strong as well as the weak points so that an appropriate sales pitch could be developed. The sales pitch highlighted features i.e. first Mutual Fund Industry in India, largest Investors size and Past Performance. The data was collected with the help of a questionnaire. The

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sample size considered for the study was 100 wherein all the samples were colleted by investors Public bank Investors in Lucknow.

OBJECTIVE OF THE STUDY

This project aims to identify AWARENESS OF MUTUAL FUND AS AN INVESTMENT TOOL AMONG PUBLIC SECTOR BANKS INVESTORS for the UTI Mutual Funds, to know how much people are aware of mutual fund as investment option specially union banks public sectors investors. A modest attempt has been made to study and understand the behavior and perception of the target audience, about mutual funds and their awareness. This project is tending to find out that what actually the mutual fund is, history regarding it, its types and other facts and figures related to it. Some points are listed below which can be considered as the objective of this project topic:Find out the attitude of customers towards Mutual Funds. Find out the proportion of people who are much aware and have a To give the knowledge and create awareness about UTI Mutual Fund. To identify activities that has the greatest potential benefits in To discover what is of most concern to your client, and therefore the To learn the reasons your clients stay to continue and improve in these How to improve your organization with the specific feedback from the

knowledge about mutual fund.

increasing the network. greatest risk of loosing them. areas.

.

tool and become more attractive to current and potential clients

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Mutual Fund Industry

Introduction
The Indian mutual fund industry is one of the fastest growing sectors in the Indian capital and financial markets. The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry.In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualitywise as well as quantitywise. Before, the monopoly of the market had seen an ending phase, the Assets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund family rose the AUM to Rs. 470 bn in March 1993 and till April 2004, it reached the height of 1,540 bn. Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking industry. The mutual fund industry in India has seen dramatic improvements in quantity as well as quality of product and service offerings in recent years. Mutual funds assets under management grew by 96% between the end of 2001 and June 2007 and as a result it rose from 8% of GDP to 15%. The industry has grown in size and manages total assets of more than $30351 million. Of the various sectors, the private sector accounts for nearly 91% of the resources mobilized showing their overwhelming dominance in the market. Individuals constitute 98.04% of the total number of investors and contribute US $12062 million, which is 55.16% of the net assets under management.

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Mutual Fund Industry in its true spirit rooted in a free market and oriented towards competitive functioning with the dedicated goal of service to the investors can be said to have settled in India only in 1993. However the industry took its roots much earlier with the setting up of the Unit Trust in India (UTI) in 1964 by the Government of India. During the last 36 years, UTI has grown to be a dominant player in the industry with assets of over Rs.72, 333.43 Crores as on March 31, 2000. The UTI is governed by a special legislation, the Unit Trust of India Act, 1963. In 1987 public sector banks and insurance companies were permitted to set up mutual funds and accordingly since 1987, 6 public sector banks have set up mutual funds. Also the two Insurance companies LIC and GIC established mutual funds. Securities Exchange Board of India (SEBI) formulated the Mutual Fund (Regulation) 1993, which for the first time established a comprehensive regulatory framework for the mutual fund industry. Since then several mutual funds have been set up by the private and joint sectors.

WHAT ARE MUTUAL FUNDS? CONCEPT: 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. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to 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.

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DEFINITION: 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. Pooling of money ensures that small investors get the benefit of advice and expertise that is normally available only to very large investors. A mutual fund is an investment that pools your money with the money of an unlimited number of other investors. In return, you and the other investors each own shares of the fund. The fund's assets are invested according to an investment objective into the fund's portfolio of investments. Aggressive growth funds seek long-term capital growth by investing primarily in stocks of fast-growing smaller companies or market segments. Aggressive growth funds are also called capital appreciation funds. Mutual funds are an excellent way to invest in stocks, bonds and other securities. They are a good choice of investment because:

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They are managed by professional money managers, so most of the investment research is done for you. (Most investors dont have the time or know-how to do all the necessary research.)

You diversify your investment risk by owning shares in a mutual fund, instead of buying individual stocks or bonds directly. Transaction costs are often lower than what you would pay if you invested in individual securities (the mutual fund buys and sells large amounts of securities at a time).

For those who are not adept at understanding the stock market, the task of generating superior returns at similar levels of risk is arduous to say the least. This is where Mutual Funds come into picture.

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Growth of Mutual Fund Business in India The Indian Mutual fund business has passed through three phases. The first phase was between 1964 and 1987, when the only player was the Unit Trust of India, which had a total asset of Rs. 6,700/- crores at the end of 1988. The second phase is between 1987 and 1993 during which period 8 funds were established (6 by banks and one each by LIC and GIC). The total assets under management had grown to Rs. 61,028/crores at the end of 1994 and the number of schemes were 167. The third phase began with the entry of private and foreign sectors in the Mutual fund industry in 1993. Kothari Pioneer Mutual fund was the first fund to be established by the private sector in association with a foreign fund. The share of the private players has risen rapidly since then. Within a short period of seven years after 1993 the growth statistics of the business of Mutual Funds in India is given in the table below: Steady growth of mutual fund business in India in the four decades from 1964, when UTI was set up is given in the table below: Aggregate Period (Year) 1964-69 1969-74 1974-79 1979-84 Investment Rupees 65 172 402 1261 1992-93 1993-94 1994-95 1995-96 Period In Crores of (Year) Aggregate Investment In Crores of Rupees 46988.02 61301.21 75050.21 81026.52

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1986-87 1987-88 1988-89 1989-90 1990-91 1991-92

4563.68 6738.81 13455.65 19110.92 23060.45 37480.20

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02

80539.00 68984.00 63472.00 107966.10 90587.00 94571.00

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Mutual funds- A BRIEF history:

The formation of Unit Trust of India marked the evolution of the Indian mutual fund industry in the year 1963. The primary objective at that time was to attract the small investors and it was made possible through the collective efforts of the Government of India and the Reserve Bank of India. The history of mutual fund industry in India can be better understood divided into following phases:

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

Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by an act of Parliament. UTI was set up by the Reserve Bank of India and it continued to operate under the regulatory control of the RBI until the two were delinked in 1978 and the entire control was transferred in the hands of Industrial Development Bank of India (IDBI). UTI launched its first scheme in 1964, named as Unit Scheme 1964 (US-64), which attracted the largest number of investors in any single investment scheme over the years.

UTI launched more innovative schemes in 1970s and 80s to suit the needs of different investors. It launched ULIP in 1971, six more schemes between 1981-84, Children's Gift Growth Fund and India Fund (India's first offshore fund) in 1986, Mastershare (Inida's first equity diversified scheme) in 1987 and Monthly Income Schemes (offering assured returns) during 1990s. By the end of 1987, UTI's assets under management grew ten times to Rs 6700 crores Second Phase 1987-1993 (Entry of Public Sector Funds):

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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. 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 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds. Fourth Phase since February 2003

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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 September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

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2003-2004: A retrospect: This year was extremely eventful for mutual funds. The aggressive competition in the business took its toll and two more mutual funds bit the dust. Alliance decided to remain in the ring after a highly public bidding war did not yield an acceptable price, while Zurich has been sold to HDFC Mutual. The growth of the industry continued to be corporate focused barring a few initiatives by mutual funds to expand the retail base. Large money brought with it the problems of low retention and consequently low profitability, which is one of the problems plaguing the business. But at the same time, the industry did see spectacular growth in assets, particularly among the private sector players, on the back of the continuing debt bull run. Equity did not find favor with investors since the market was lack-luster and performances of funds, barring a few, were quite disappointing for investors. The other aspect of this issue is that institutional investors do not usually favor equity. It is largely a retail segment product and without retail depth, most mutual funds have been unable to tap this market. The tables given below are a snapshot of the AUM story, for the industry as a whole and for debt and equity separately.

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PROS & CONS OF INVESTING IN MUTUAL FUNDS:

The Advantages of Investing in a Mutual Fund: 1)Professional Management: The investor avails of the services of experienced and skilled professionals who are backed by a dedicated investment research team which analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme. 2)Diversification: Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own. 3)Convenient Administration: Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and unnecessary follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient. 4)Return Potential: Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities. 5)Low Costs: Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. 6)Liquidity: In open-ended schemes, you can get your money back promptly at net asset value related prices from the Mutual Fund itself. With close-ended schemes, you can sell your units on a stock exchange at the prevailing market price or avail of the facility of direct repurchase at NAV related prices which some close-ended and interval schemes offer you periodically.
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7)Transparency: You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund manager's investment strategy and outlook. 8)Flexibility: Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience.

9)Well Regulated: All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.

Drawbacks of mutual funds

1) Fluctuating Returns:
Mutual funds are like many other investments without a guaranteed return:

there is always the possibility that the value of your mutual fund will depreciate. Unlike

fixed-income

products, such as bonds and Treasury bills, mutual funds experience price fluctuations along
with the stocks that make up the fund. When deciding on a particular fund to buy, you need to research the risks involved just because a

professional manager is looking after the fund, that

doesn't mean the performance will be stellar.

Another important thing to know is that mutual funds are not guaranteed by the U.S. government, so in the case of dissolution, you won't get anything back. This is especially important for investors in money market funds. Unlike a bank deposit, a mutual fund will be insured by the Federal Deposit Insurance Corporation (FDIC). 2)Diversification:
Although

diversification

is one of the keys to successful investing, many

mutual fund investors tend to overdiversify. The idea of diversification is to reduce the risks associated with holding a single security; overdiversification (also known as

diworsification)

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occurs when investors acquire many funds that are highly related and, as a result, don't get the risk reducing benefits of diversification.

At the other extreme, just because you own mutual funds doesn't mean you are automatically diversified. For example, a fund that invests only in a particular industry or region is still relatively risky. 3)Cash, Cash and More Cash:
maintain As you know already, mutual funds pool money from thousands of

investors, so everyday investors are putting money into the fund as well as withdrawing investments. To

liquidity

and the capacity to accommodate withdrawals, funds typically have to keep a

large portion of their portfolios as cash. Having ample cash is great for liquidity, but money sitting around as cash is not working for you and thus is not very advantageous.

4)Costs:

Mutual funds provide investors with professional management, but it comes at a cost. Funds will

typically have a range of different fees that reduce the overall payout. In mutual funds, the fees are classified into two categories: shareholder fees and annual operating fees.

The shareholder fees, in the forms of loads and redemption fees are paid directly by shareholders purchasing or selling the funds. The annual fund operating fees are charged as an annual percentage usually ranging from 1-3%. These fees are assessed to mutual fund investors regardless of the performance of the fund. As you can imagine, in years when the fund doesn't make money, these fees only magnify losses. 5)Misleading Advertisements: The misleading advertisements of different funds can guide investors
down the wrong path. Some funds may be incorrectly labeled as growth funds, while others are classified as

small cap or income funds. The Securities and Exchange Commission (SEC) requires
that funds have at least 80% of assets in the particular type of investment implied in their names. How the remaining assets areinvested is up to the fund manager.

However, the different categories that qualify for the required 80% of the assets may be vague and wide-ranging. A fund can therefore manipulate prospective investors by using names that are attractive and misleading. Instead of labeling itself a small cap, a fund may be sold as a "growth fund". Or, the "Congo High-Tech Fund" could be sold with the title "International High-Tech Fund".

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6)Evaluating Funds:

Another disadvantage of mutual funds is the difficulty they pose for investors

interested in researching and evaluating the different funds. Unlike stocks, mutual funds do not offer investors the opportunity to compare the P/E fund's net

ratio,

sales growth,

earnings per share,

etc. A mutual

asset value gives investors the total value of the fund's portfolio less liabilities, but how

do you know if one fund is better than another?

Furthermore, advertisements, rankings and ratings issued by fund companies only describe past performance. Always note that mutual fund descriptions/advertisements always include the tagline "past results are not indicative of future returns". Be sure not to pick funds only because they have performed well in the past - yesterday's big winners may be today's big losers. 7)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 capital-gains tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability.

INTRODUCTION TO THE COMPANY

UTI MUTUAL FUNDS Vision
To be the most Preferred Mutual Fund.

Our mission is to make UTI Mutual Fund:

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The most trusted brand, admired by all stakeholders The largest and most efficient money manager with global presence The best in class customer service provider The most preferred employer The most innovative and best wealth creator A socially responsible organisation known for best corporate governance

Genesis
Jan 14, 2003 is when UTI Mutual Fund started to pave its path following the vision of UTI Asset Management Company Limited, who has been appointed by the UTI Trustee Company Limited for managing the schemes of UTI Mutual Fund and the schemes transferred/migrated from the erstwhile Unit Trust of India. The UTI Asset Management Company provides professionally managed back office support for all business services of UTI Mutual Fund (excluding fund management) in accordance with the provisions of the Investment Management Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives of the schemes. State-of-the-art systems and communications are in place to ensure a seamless flow across the various activities undertaken by UTIMF.

UTI AMC is a registered portfolio manager under the SEBI (Portfolio Managers) Regulations, 1993 on 3rd February 2004, for undertaking portfolio management services and also acts as the manager and marketer to offshore funds through its 100 % subsidiary, UTI International Limited, registered in Guernsey, Channel Islands.

Assets under Management

UTI Asset Management Company presently manages a corpus of over Rs.

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56,854 Crores as on 31st Dec 2007 (source: www.amfiindia.com) . UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizenry. It has a nationwide network consisting 79 UTI Financial Centres (UFCs) and UTI International offices in London, Dubai and Bahrain. With a view to reach to common investors at district level, 3 satellite offices have also been opened in select towns and districts. They have well-qualified, professional fund management teams, who have been highly empowered to manage funds with greater efficiency and accountability in the sole interest of unit holders. The fund managers are also ably supported with a strong in-house securities research department. To ensure better management of funds, a risk management department is also in operation.

Reliability

UTIMF has consistently reset and upgraded transparency standards. All the branches, UFCs and registrar offices are connected on a robust IT network to ensure costeffective quick and efficient service. All these have evolved UTI Mutual Fund to position as a dynamic, responsive, restructured, efficient and transparent SEBI compliant entity.

Work culture :

We believe in providing an environment that encourages employees to achieve and fulfil personal goals and that of the company. When the combined force of both, the employees and the company flow in one direction, there is ample amount of possibilities, opportunities and growth. The work culture at UTI Mutual Fund is simple work is priority and the rest follows. Our relationship with our employees

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works both ways, they give their best and we give them the best, we strike the right balance at work.
Employee Benefits

Competitive salaries Comfortable work environment Career opportunities Insurance benefits Recreational amenities

Organization Structure

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UTI AMC Structure

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UTI Asset Management Company Ltd. (UTI AMC) has been promoted by State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda, each holding 25% of the paid up capital. UTI AMC is the investment manager to the schemes of UTI Mutual Fund. It also manages offshore funds and provides support to the Specified Undertaking of the Unit Trust of India.

It is the holding company for UTI Venture Funds Management Company which manages venture funds and UTI International Ltd., which markets offshore funds to overseas investors. UTI AMC is a SEBI registered Portfolio Manager bearing registration number INP 000000860 and offers Discretionary, Non-Discretionary and Advisory services to High Net Worth clients, Corporate and Institution Unit Trust of India was created by the UTI Act passed by the Parliament in 1963.For more than two decades it remained the sole vehicle for investment in the capital market by the Indian citizens. In mid- 1980s public sector banks were allowed to open mutual funds. The real vibrancy and competition in the MF industry came with the setting up of the Regulator SEBI and its laying down the MF Regulations in 1993.UTI maintained its pre-eminent place till 2001, when a massive decline in the market indices and negative investor sentiments after Ketan Parekh scam created doubts about the capacity of UTI to meet its obligations to the investors. This was further compounded by two factors; namely, its flagship and largest scheme US 64 was sold and re-purchased not at intrinsic NAV but at artificial price and its Assured Return Schemes had promised returns as high as 18% over a period going up to two decades..!! Fearing a run on the institution and possible impact on the whole market Government came out with a rescue package and change of management in 2001.Subsequently, the UTI Act was repealed and the institution was bifurcated into two parts .UTI Mutual Fund was created as a SEBI registered fund like any other mutual fund. The assets and liabilities of schemes where Government had to come out with a bail-out package were taken over directly by the Government in a new

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entity called Specified Undertaking of UTI, SUUTI. SUUTI holds over 27% stake Axis Bank. In order to distance Government from running a mutual fund the ownership was transferred to four institutions; namely SBI, LIC, BOB and PNB, each owning 25%. Certain reforms like improving the salary from PSU levels and effecting a VRS were carried out UTI lost its market dominance rapidly and by end of 2005,when the new share-holders actually paid the consideration money to Government its market share had come down to close to 10%! A new board was constituted and a new management inducted. Systematic study of its problems role and functions was carried out with the help of a reputed international consultant. Fresh talent was recruited from the private market; organizational structure was changed to focus on newly emerging investor and distributor groups and massive changes in investor services and funds management carried out. Once again UTI has emerged as a serious player in the industry. Some of the funds have won famous awards, including the Best Infra Fund globally from Lipper. UTI has been able to benchmark its employee compensation to the best in the market, has introduced Performance Related Payouts and ESOPs. The UTI Asset Management Company has its registered office at: UTI Tower, Gn Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400051.It has over 70 schemes in domestic MF space and has the largest investor base of over 9 million in the whole industry. It is present in over 450 districts of the country and has 100 branches called UTI Financial Centers or UFCs. About 50% of the total IFAs in the industry work for UTI in distributing its products! India Posts, PSU Banks and all the large Private and Foreign Banks have started distributing UTI products. The total average Assets Under Management (AUM) for the month of June 2008 was Rs. 530 billion and it ranked fourth. In terms of equity AUM it ranked second and in terms of Equity and Balanced Schemes AUM put together it ranked FIRST in the industry. This measure indicates its revenue- earning capacity and its financial strength. Besides running domestic MF Schemes UTI AMC is also a registered portfolio manager under the SEBI (Portfolio Managers) Regulations. It runs different

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portfolios for is HNI and Institutional clients. It is also running a Sharia Compliant portfolio for its Offshore clients. UTI tied up with Shinsei Bank of Japan to run a large size India-centric portfolio for Japanese investors. For its international operations UTI has set up its 100% subsidiary, UTI International Limited, registered in Guernsey, Channel Islands. It has branches in London, Dubai and Bahrain. It has set up a Joint Venture with Shinsei Bank in Singapore. The JV has got its license and has started its operations. In the area of alternate assets, UTI has a 100% subsidiary called UTI Ventures at Bangalore This company runs two successful funds with large international investors being active participants. UTI has also launched a Private Equity Infrastructure Fund along with HSH Nord Bank of Germany and Shinsei Bank of Japan.

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SWOT Analysis of UTI Mutual Fund

Strengths of UTI-MF
Well-positioned to capitalize on favorable macro-economic conditions and industry dynamics. Large focused asset manager with diverse fund offerings, experienced fund managers and record of steady AUM growth. A scheme for every class of citizenry Broad and stable client base and multiple distribution channels. Strong brand recognition Profitable structure benefiting from large size, automated and integrated systems, and high proportion of equity and balanced/hybrid funds. First in the industry in terms of Equity and Balanced Schemes AUM

Experienced professional management and well established statesponsors with access to PSU business opportunities

Weakness:
Poor service conditions Less penetration in rural areas
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 AUM wise 4th in number

Opportunity
Stability through increased brand awareness, market penetration and Service offerings High untapped market in the semi urban and rural areas Increased saving habit among people provides a great opportunity for funds mobilization Other emerging opportunities in the financial markets

Threats:
Increased competition among local AMCs Threat of increased entry of Foreign players in the industry High level of volatility of the stock market Rising inflation could reduce savings of people and thus investments

Things you are unaware about UTI-MF:

140 UTI Financial Centers (UFCs) across India. 10 million Investor base 39000 + Individual Financial Advisors (AMFI Certified).

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 450 + Offices of Chief Representatives & Chief Agents at District &Taluka level out of 604 districts of India. International Offices at London, Dubai, Bahrain & Singapore Tie ups with PSU Banks, Select Private Banks, leading distribution houses & India Post across the country. UTI Mastershare was the first equity mutual fund scheme to be launched in India in 1986 & has declared a dividend every year. In 1971, UTI launched the first Unit Linked Insurance Plan UTI Childrens Career Plan enabling financial planning specifically for your Childs future (Launched in 1993). UTI Mutual Fund has a fully automated and integrated system for managing its entire investment management process After its IPO, UTI Mutual Fund would become the first asset management company in India to provide ESOPs to all its employees Since 1st February 2003, UTI Mutual Fund has paid out more than Rs. 6700 Crore (US$ 1.68 billion) as dividend First to facilitate transactions through NSE (Launched in November 2009)

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 Selected by GOI as one of three asset managers to provide Portfolio Management Services (PMS) to the National Investment Fund ("NIF"). Selected by PFRDA for Pension Funds management under the New Pension System Micro Pension initiative with SEWA Bank, COMPFED, SHEPHERD, MAANDESHI. Has started Mukhyamantri Kanya Suraksha Yojna with Govt. of Bihar.

Manage offshore and foreign institutional investor ("FII") funds as well as venture capital and private equity funds. UTI has tie up with Shinsei Bank of Japan for running a large size Indiacentric portfolio for Japanese investors.

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PRODUCTS OF UTI MUTUAL FUND

Equity schemes
UTI Banking Sector Fund UTI CCP Advantage UTI Energy Fund

UTI Contra Fund UTI DYF UTI Equity Fund UTI Infrastructure Fund UTI Master Index Fund UTI Master share Unit

UTI Equity Tax Savings Plan

UTI Leadership Equity Fund UTI Master plus Unit Scheme Scheme UTI Master Value Fund UTI MNC Fund UTI Opportunities Fund Fund

UTI Mid-cap Fund UTI Nifty Index Fund UTI Pharma & Healthcare

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 UTI Sunder Fund UTI Top 100 Fund Logistics Fund UTI Wealth Builder Fund-SeriesII

UTI Services Industries

UTI Transportation &

Debt schemes
UTI Bond Fund UTI Floting Rate Fund UTI G-Sec Fund UTI Treasury Advantage Fund UTI-MIS-Advantage Plan . UTI-Monthly Income Scheme .UTI-Variable Investment Scheme-ILP .UTI Fixed Maturity Plan .UTI Gilt Advantage Fund .UTI Liquid Fund .UTI Mahila Unit Scheme .UTI-Money Market Fund
.UTI-CRTS

Balanced Schemes
UTI Balanced Fund . UTI-childrens Career Plan (UTI-CCP) . UTI-Retirement Benefit Pension Fund (UTI-RBP) . UTI-Unit Linked Insurance Plan (UTI-ULIP)

Liquid Schemes
UTI Money Market Funds UTI Liquid Cash Plan UTI Liquid Advantage Fund

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Most Opted Schemes by Investors Dividend Yield Fund UTI Mastershare Unit Scheme Unit Linked Insurance Plan (ULIP)

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Awards received by UTI Mutual Fund

UTI Mahila Unit Scheme has been ranked as the Best Fund over a period of five years and has won Lipper Fund Awards 2011- India under the category of Mixed Asset INR Conservative UTI Childrens Career Balanced Plan has been ranked as the Best Fund over a period of ten years and has won Lipper Fund Awards 2011-

India under the category of Mixed Asset INR Conservative UTI AMC 's CMO has won MYKM Stars of   Industry Youth Icon Award from 94.3 Radio FM. The Best Large Cap Fund by Morningstar Fund   Awards (India) -2011. UTI MF has won the Financial Leadership Awards 2011 for Most Innovative Investor Education Initiative Swatantra from Bloomberg UTV Source Mr Amandeep Chopra and Mr Manish Joshi have been adjudicated as the Best Debt Fund Managers of the Year 2010 by Business Standard Source Business Standard - 25th March 2011 UTI CCP Advantage Fund has won the Business World Best Mutual Fund Awards as the Best Hybrid Equity Oriented Fund for the year 2010. Source Second time in a row, UTI Mutual Fund has been awarded the Most Investor-Friendly Fund House of the Year by CNBCTV18-CRISIL Mutual Fund Awards 2011. Mr Jaideep Bhattacharya, Chief Marketing Officer, UTI AMC 's CMO has won MYKM Stars of Industry Youth Icon Award from 94.3 Radio FM Source UTI Dividend Yield Fund has been adjudged the The Best Large Cap
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Fund by Morningstar Fund Awards (India) -2011. Source UTI AMC has won the Golden Peacock Innovation Award 2011 for its Investor Education initiative Swatantra. UTI AMC has won the Customer and Brand Loyalty Award 2011 for its Investor Education initiative Swatantra.
UTI MF wins 2 CNBC TV 18- CRISIL Mutual Funds Awards 2010 UTI Mutual Fund wins 7 ICRA Mutual Funds Awards 2010

UTI Mutual Fund has won three International Best of the Best Awards-2010 from Asia Asset Management... Harsha Upadhyaya has received an Award from Outlook Money Awards -2010 as the Best Fund Manager (Equity) Runner Up...
UTI MF wins CNBC TV18-CRISIL Award

UTI MF wins CNBC TV18-CRISIL Award...

Lipper Fund Awards09-UTI Mahila Unit-5 yrs Lipper Fund Awards09-UTI Mahila Unit-3 yrs UTI MF sweeps ICRA mutual fund Award 2009

Loyalty Awards 2009 UTI MF sweeps ICRA mutual fund Award 2009... UTI MF wins the Best Debt Fund House Award.. UTI AMC gets 3 International Awards... UTI MF CNBC Award 2009... UTI Mutual Fund sweeps ICRA mutual fund Award 2009... Loyalty Awards - 2009 ... UTI MF wins the Best Debt Fund House Award... Top Performing Infrastructure Fund - Income...
UTI MF wins the Best Debt Fund House Award

Golden Peacock Innovative Award-2008

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Golden Peacock Innovative Product/Service Award-2008... Lipper Fund Awards09-UTI Mahila Unit-5 yrs... Lipper Fund Awards09-UTI Mahila Unit-3 yrs...
Readers Digest Trusted Brand 2008. Lipper Fund Awards - Gulf 2008

Readers Digest Trusted Brand 2008... Lipper Fund Awards - Gulf 2008... Top Performing Infrastructure Fund - Income ... Brand loyalty Awards 2008... Brand loyalty Awards 2008... Four ICRA 7 Star Gold Award... Four ICRA 5 Star Award... ICRA Mutual Fund Award 2007... Lipper Fund Awards 2007... CRISIL-CNBC-TV18-Mutual Fund of the year Award 2007... ICRA Mutual Fund Award 2006... Lipper Fund Awards... CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award 2006... CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award... ICRA online Mutual Fund Award: UTI NIFTY INDEX FUND won the award for the year 2004... CNBC India Mutual Fund of the Year Award... UTI Nifty Index Fund wins Gold at ICRA Online... UTI Dynamic Equity Fund wins Silver at ICRA Online... UTI Growth Value Fund has been ranked by CRISIL...

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Risk Vs Reward
Having understood the basics of mutual funds the next step is to build a successful investment portfolio. Before you can begin to build a portfolio, one should understand some other elements of mutual fund investing and how they can affect the potential value of your investments over the years. The first thing that has to be kept in mind is that when you invest in mutual funds, there is no guarantee that you will end up with more money when you withdraw your investment than what you started out with. That is the potential of loss is always there. The loss of value in your investment is what is considered risk in investing. Even so, the opportunity for investment growth that is possible through investments in mutual funds far exceeds that concern for most investors. Heres why. At the cornerstone of investing is the basic principal that the greater the risk you take, the greater the potential reward. Or stated in another way, you get what you pay for and you get paid a higher return only when you're willing to accept more volatility.

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Risk then, refers to the volatility -- the up and down activity in the markets and individual issues that occurs constantly over time. This volatility can be caused by a number of factors -- interest rate changes, inflation or general economic conditions. It is this variability, uncertainty and potential for loss, that causes investors to worry. We all fear the possibility that a stock we invest in will fall substantially. But it is this very volatility that is the exact reason that you can expect to earn a higher long-term return from these investments than from a savings account. Different types of mutual funds have different levels of volatility or potential price change, and those with the greater chance of losing value are also the funds that can produce the greater returns for you over time. So risk has two sides: it causes the value of your investments to fluctuate, but it is precisely the reason you can expect to earn higher returns. You might find it helpful to remember that all financial investments will fluctuate. There are very few perfectly safe havens and those simply don't pay enough to beat inflation over the long run.

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Types of risks
All investments involve some form of risk. Consider these common types of risk and evaluate them against potential rewards when you select an investment.

Market Risk At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. When this happens, the stock prices of both an outstanding, highly profitable company and a fledgling corporation may be affected. This change in price is due to "market risk". Also known as systematic risk. Inflation Risk Sometimes referred to as "loss of purchasing power." Whenever inflation rises forward faster than the earnings on your investment, you run the risk that you'll actually be able to buy less, not more. Inflation risk also occurs when prices rise faster than your returns. Credit Risk In short, how stable is the company or entity to which you lend your money when you invest? How certain are you that it will be able to pay the interest you are promised, or repay your principal when the investment matures? Interest Rate Risk Changing interest rates affect both equities and bonds in many ways. Investors are reminded that "predicting" which way rates will go is rarely successful. A diversified portfolio can help in offsetting these changes. Exchange risk A number of companies generate revenues in foreign currencies and may have investments or expenses also denominated in foreign currencies. Changes in exchange rates may, therefore, have a positive or negative impact on companies which in turn would have an effect on the investment of the fund. Investment Risks The sectoral fund schemes, investments will be predominantly in equities of select companies in the particular sectors. Accordingly, the NAV of the schemes are linked to the equity performance of such companies and may be more volatile than a more diversified portfolio of equities.

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Changes in the Government Policy Changes in Government policy especially in regard to the tax benefits may impact the business prospects of the companies leading to an impact on the investments made by the fund

An industries' key asset is often the personnel who run the business i.e. intellectual properties of the key employees of the respective companies. Given the everchanging complexion of few industries and the high obsolescence levels, availability of qualified, trained and motivated personnel is very critical for the success of industries in few sectors. It is, therefore, necessary to attract key personnel and also to retain them to meet the changing environment and challenges the sector offers. Failure or inability to attract/retain such qualified key personnel may impact the prospects of the companies in the particular sector in which the fund invests.

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RESEARCH DESIGN AND METHODOLOGY

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A research design is the detailed blueprint used to guide a research study toward its objectives. The process of designing a research study involves many interrelated decisions. The most significant decision is the choice of research approach, because it determines how the information will be obtained.

To design something also means to ensure that the pieces fit together. The achievement of this fit among objective, research approach, and research tactics is inherently an iterative process in which earlier decisions are constantly reconsidered in light of subsequent decisions. Research design Defining the purpose of research

Determining the data required and their resources. A Questionnaire was designed to get detailed information.

Face to face interviews was taken were conducted to get the required information. Analysis of Data

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Drawing Conclusions Suggestions/ Recommendation

Research Methodology:
Title of the Project Study: A project study conducted for AWARENESS OF MUTUAL FUND AS AN INVESTMENT AMONG PUBLIC SECTOR BANKS INVESTORS Project Duration: -- 45 Days

Research Methodology is a way to systematically solve the problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology used. Researchers not only need to know how to develop certain indices or tests, how to calculate mean or median or mode, how to apply particular research techniques but must also know which of these methods or techniques are relevant and what would they mean and indicate and why Research process consists of series of actions or steps necessary to effectively carry out the research.

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The project was a unique experience for me for tracking down information from various types of people and all through it is a vast learning process. There were several things that I had made out and learnt out of this project of mine.

Problem of the Project: The problem of this project is to know that how much public banks investors are aware about the mutual fund and why they prefer banks to invest and them far away from mutual funds industry and whether they are quite aware about mutual fund or not.

Approach to the problem: All the objectives were taken into account before preparing the questionnaire. The questionnaire was prepared on scientific basis, deliberately hidden questions were asked to get the required information. Besides this, extensive research was done. Information was extracted from other sites of different companies and various other mutual fund associations. Though complete focus was kept, to broaden the horizon of research topic, attempt was made to know the opportunities and threats related to other players in mutual funds.

Strategic planning for the Research: To familiarize with a business organization.

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 To familiarize with the different departments in the organization and their functioning. To enable to understand how the key business process are carried out in organizations. Understand how information is used in organization for decision making at various levels. To know the history about the company. To get clear cut idea about the management and administration. To know about the industrial relation in the company. To analyze the strength and weakness. To get clear cut idea about the various departments and functions. To give findings and solutions. To relate theory with practice.

Problem Definition

A problem exists when the decision-maker faces uncertainty regarding which action to adopt in the situation. If only one action is available (or none at all) or if there is certainty about the outcomes of the alternatives, there really is no problem. Defining a problem is a situation where: 1) The decision-maker has not yet determined how to exploit an opportunity or 2) There are difficulties that are currently faced or are anticipated.

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RESEARCH DESIGN A research design is the detailed blueprint used to guide a research study toward its objectives. The process of designing a research study involves many interrelated decisions. The most significant decision is the choice of research approach, because it determines how the information will be obtained. To design something also means to ensure that the pieces fit together. The achievement of this fit among objective, research approach, and research tactics is inherently an iterative process in which earlier decisions are constantly reconsidered in light of subsequent decisions. The function of research design is to provide for collection of relevant evidence with minimal expenditure of time effort and money. The following methodology was adopted for the study purpose: Type of research: Descriptive and qualitative research designs were used while conducting the project. Sampling Design was taken by the researcher as the Research design.

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The major purpose of the study is to describe the state of affairs as it exists at present.

Research Method/Technique: In the project report the researcher used following techniques while conducting his study: Analysis of documents Survey Method: A market survey was done on VARIOUS PUBLIC BANKS. Interview (Personal): Both open and closed ended (unstructured) questions were asked while taking some information from the Investors of the banks at LUCKNOW. Questionnaire (Structured): A structured designed comprehensive questionnaire was framed and Protested for data collection from the customer of mobile Data collection sources Research Data Data is the key activity of marketing research. The design of the data collecting method is backbone of research design. Data can be obtained from two important sources, namely: 1. Primary Data 2. Secondary Data

Data Collection Technique:

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1. PRIMARY SOURCE

Survey method: Definition: Survey research is one of the most important areas of measurement in applied social research. The broad area of survey research encompasses any measurement procedures that involve asking questions of respondents.

Types of surveys: Surveys can be divided into two broad categories: the questionnaire and the interview.

Questionnaires are usually paper-and-pencil instruments that the respondent completes. The interviewer based on what the respondent says completes interviews.

Questionnaires:

Mail survey: when a respondent receives a questionnaire by mail it is known as mail survey. Advantages: They are relatively inexpensive to administer. You can send the exact same instrument to a wide number of people. They allow the respondent to fill it out at their own convenience.

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Disadvantages: Response rates from mail surveys are often very low. Mail questionnaires are not the best vehicles for asking for detailed written responses. Group-administered questionnaire: A sample of respondents is brought together and asked to respond to a structured sequence of questions. Traditionally, questionnaires were administered in-group settings for convenience. The researcher could give the questionnaire to those who were present and be fairly sure that there would be a high response rate If the respondents were unclear about the meaning of a question they could ask for clarification. And, there were often organizational settings where it was relatively easy to assemble the group (in a company or business, for instance).

Selecting the survey method:

Selecting the type of survey you are going to use is one of the most critical decisions in many social research contexts. You have to use your judgment to balance the advantages and disadvantages of different survey types. Following are the issues that the researcher must look into before conducting a research. Sampling issues:

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 What data is available? What information do you have about your sample? Do you know their current addresses? Their current phone numbers? Are your contact lists up to date? Can your respondents be located? Who is the respondent in your study? If the specific individual is unavailable is the researcher willing to interview another? Are response rates likely to be a problem?

Questions: What types of questions can be asked? Are they personal or require a detailed answer? Can question sequence be controlled? Your survey is one where you can construct in advance a reasonable sequence of questions? Or, are you doing an initial exploratory study where you may need to ask lots of follow-up questions that you can't easily anticipate. Cost is often the major determining factor in selecting survey type. You might prefer to do personal interviews, but can't justify the high cost of training and paying for the interviewers. You may prefer to send out an extensive mailing but can't afford the postage to do so. Do you have the facilities (or access to them) to process and manage your study? In phone interviews, do you have well-equipped phone surveying facilities? For focus groups, do you have a comfortable and accessible room to host the group? Do you have the equipment needed to record and transcribe responses Some types of surveys take longer than others. Do you need responses immediately (as in an overnight public opinion poll)? Have you budgeted

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enough time for your study to send out mail surveys and follow-up reminders, and to get the responses back by mail? Have you allowed for enough time to get enough personal interviews to justify

Types of questions: Survey questions can be divided into two broad types: structured and unstructured Dichotomous Questions: When a question has two possible responses, we consider it dichotomous. Surveys often use dichotomous questions that ask for a Yes/No, True/False or Agree/Disagree response. E.g. please enter your gender Male female

2. SECONDARY SOURCE SECONDARY DATA: Secondary data are data that were developed for some purpose other than helping to solve the problem at hand. Secondary data can be gathered quickly and is inexpensive as compared to primary data. Even when reports or publications are ordered, the time involved is generally less than the time required to collect original data. A thorough search on secondary data will often provide sufficient information to resolve the problem. In some cases where the secondary data cannot solve the
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problem, they can often help to structure the problem and eliminate some variables from consideration. Or, it may be possible to utilize the secondary data in conjunction with primary data. Secondary data can provide a complete or partial solution to many problems and help in structuring other problems. They tend to cost substantially less than primary data and can be collected in less time also.

Problems Encountered with Secondary Data

Before secondary data are applied to a particular marketing problem, their relevance and accuracy must be assessed. Relevancy refers to the extent to which the data fits the information needs of research problem. Even when the data covers the same general topic as that required by the research problem, they may not fit the requirements of the problem. Three general problems reduce the relevance of data that would otherwise be useful. They are: There is often a difference in the units of measurement. E.g. many retail decisions require detailed information on the characteristics of the population within their trade area. However, the available population statistics may focus on countries, cities or census tracts that do not match the trade area of the retail outlet. The second general problem that can reduce relevancy of secondary data is the definition of classes. E.g. a manufacturer may have a product that appeals to children 8 to 12 years old. If available secondary data are based on age categories 5 to 9 and 10 to 14, the firm will have a hard time utilizing it.

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 The final major factor that is affecting relevancy is time. Generally, research problems require current, if not future, data. Most secondary data, on the other hand, have been in existence for some time. E.g. complete census reports are not available for several years. Data are frequently collected one to three years prior to its publication. Accuracy is the second major concern of the user of secondary data. The real problem is not inaccuracy; it is the difficulty of determining how inaccurate the data is likely to be. While using secondary data, the original source should be used if possible. This is important because, the original report is generally more complete than the second or third reports. Secondly using original source allows the data to be examined in context and may provide a better basis for assessing the competence and motivation of the collector.

Sources of Secondary Data: There are two general sources of secondary data internal sources and external sources. Internal data are available within the firm whereas external sources provide data that are developed outside the firm. Internal Sources: Internal sources include sales record, sales force reports, operating statements, budgets, previous research reports and the likes. The most useful type of internal information is generally sales data. But, unfortunately many companies do not collect or maintain sales data in the manner that allows the researcher to tap their full potential. Such records, if properly utilized, allows the researcher to isolate profitable and unprofitable customers, territories, and product lines, to identify developing trends and perhaps to measure the effects of manipulations of marketing mix variables.
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Internal data must be collected in a usable format and must be analyzed to be of value. Many firms have useful but unutilized data. By changing the format of collection forms (sales invoices, salesman call reports, etc) other useful data can be often collected. They are available and inexpensive; internal data are the best information buy. External Sources Numerous sources external to the firm may produce data relevant to the firms requirements. There are four types of general external secondary information, they are: Published sources, and Websites. Published Sources There is virtually endless array of periodicals, books, dissertations, newspapers and the like, that contain information relevant to marketing decisions. Channel information is available to the firm at four levels manufacturers, intermediaries, retailers and consumers. A manufacturers sales and shipment are generally available only through the firms own internal records. Therefore, although a firm can monitor its own activities at this level, it can only infer the output of other manufacturing firms. At the intermediary or wholesale level, several syndicated firms provide information on the flow of products and brands to retail outlets. Store audits provide data on the movement of brands through retail outlets.

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Prospects and scope of research:

Area wise Identifying Potential Prospective distributors, which leads to increase the business. THE PROSPECTS: The Starting point is everyone who might conceivably buy the product that is called suspects and from these the company determines the most likely prospects which it hopes to convert into first time customers then repeat customers and then clients.

Suspects

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Prospects First Time Customers

Marketing Marketing planning planning and and information information system system Planning Planning system system Strategic Strategic plans plans Tactical Tactical plans plans Information Information system system Database Database DSS DSS

Disqualified Prospects

Repeat Customers 1. 1. Agree Agree on on Research Research Purpose Purpose

Problems Problems or or opportunities opportunities Decision Decision alternatives alternatives Research Research users users

Clients Inactive or ex customers

2. 2. Establish Establish Research Research Objectives Objectives Research Research questions questions Hypotheses Members Hypotheses Boundaries of study Boundaries of study

Advocates
ESTIMATE ESTIMATE

Partners THE THE VALUE VALUE

Is Is benefit benefit > > cost? cost?

OF OF INFORMATIO INFORMATIO N N

DO DO NOT NOT CONDUCT CONDUCT MR MR

RESEARCH PROCESS: STEPS:

4. 4. Design Design the the research research

Choose Choose among among alternative alternative research research approaches approaches Specify Specify the the sampling sampling plan plan Design Design the the experiment experiment Design Design the the questionnaire questionnaire

5. 5. Collect Collect the the data data

6. 6. Prepare Prepare and and analyze analyze the the data data

7. 7. Report Report the the research research results results and and provide provide strategic strategic recommendations. recommendations.

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LIMITATION OF THE PROJECT:

Many constraints were involved in doing this study. Some of them are:The most signified limitation has been the individuals involved in this study had a little experience.

The sample size selected for the survey was too small as compared to large population. The project was carried out only in the Jaipur city so findings on data gathered can be best true for Jaipur only and not applicable to other parts of state and country. Our reliance was made on the primary data.
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Time and money are critical factors limiting this study. The data provided by the prospects may not be 100% correct as they too have their limitations. Finding and suggestion have been given from personal point of view. Due to work pressure, detailed interaction with the chartered accountants and tax consultants was not possible. Some people were not willing to disclose the investment profile. The baseness was being taken care of. The area of sample was decided after taking into consideration the major factors like:

Availability of investors Approachability. Time available with investor for interaction, etc.

Area of Sample:

The areas covered up in this survey was LUCKNOW Selection of units under study:

Article I.

AREA OF LUCKNOW WHERE SURVEY IS DONE

1) Gomti nagar 2) Kapoorthala 3) Indira nagar 4) Hajaratganj 5) Aliganj

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Source list (Sampling Frame): GOVERNMENT EMPLOYEES: 28 NON GOVT EMPLOYEES: 62 BUSINESS MAN: 47 OTHERS: 13 Sample size: 150 Sampling Procedure: Probability Sampling (Simple Random Sampling

Data analysis and interpretation:

Que.1) Personal Details: (a). Name:(b). Add: (c).Contact No:(d). Age:(e). Qualification:(f). Occupation. Pl tick () Govt. Sec 28 respondents Pvt. Sec 62 respondents Business 47 respondents Agriculture & Others 13 respondents
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70 60 50 40 30 20 10 0
Govt sector P vt sector

Interpretation: First question was to determine 28 participants were in govt sector, 62 participants were in pvt sector, 47 participants were in business and 13 participants were in agriculture

Que.2) What is your education qualification? a. under graduate b. Graduate c. PG d. any other Ans:- (a) 32 (b) 57 (c) 38 (d) 23

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60 50 40 30 20 10 0
Under g radua te g radua te P G

Interpretation: Second question was to determine the educational qualification of 150 participants, in which 32 participants were under graduate, 57 were graduate, 38 participants were post graduate and 23 were other degree holder 3. What is your monthly family income approximately? Pl tick (). (a)Up to Rs.10, 000 (b)Rs. 10,001 to 15,000 (c)Rs. 15,001 to 30,000 (d)Rs. 30,001 and above Ans:- (a) 35 (b) 51 (c) 39 (d) 25

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16 0 14 0 12 0 10 0 80 60 40 20 0
3 0 0 0 1 & above 1 5 0 0 1 to 3 0 0 0 0 1 0 0 0 1 to 1 5 0 0 0 Upto10 0 0 0

Interpretation: Third question was to determine monthly family income of participants among which 23% participants monthly family income is upto rs. 10,000, 35% participants monthly family income is 10,001 to 15,000, 25% participants monthly family income is 15,001 to 30,000 and 17% participants monthly family income is 30,000 & above. Thats shows maximum participants belong 10,000 to 15,000 Que.4) What kind of investments you prefer most? Pl tick (). All applicable. a. Saving account b. Fixed deposits c. Insurance d. Mutual Fund e. Post Office-NSC, etc f. Shares/Debentures g. Gold/ Silver h. Real Estate I. PPF j. PF

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Interpretation: Fourth question was to determine the investments preference o participants so on the basis of graph we can say that maximum people prefer to invest in saving account and fixed deposit because in these investment there are less risk in comparison to other

Que.5) While investing your money, which factor you prefer most? a. Company reputation b. Liquidity c. Low Risk d. High Return e. Any one

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45 40 35 30 25 2 0 1 5 1 0 5 0
com pany reputation H ig h return L owris k L iquidity Anyone

Interpretation: Fifth question was to determine that during the investment what the things that participants consider are high return, low risk, liquidity, company reputation and other. On the basis of research we can say that first preference is high return, second one is liquidity and third one is low risk. Que.6) Have you ever invested your money in mutual fund? a. Yes b .No Ans:- a) 91 b) 59

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yes no

1. Interpretation: Sixth questions was to check that how many participants have invested their money in mutual fund and how many have not, among 150 participants 40% participants have invested and 60% have not. That shows many people are not aware about mutual fund. 7. Where do you find yourself as a mutual fund investor? a. Totally ignorant [ ] b. Partial knowledge of mutual funds [ ] c. Aware only of any specific scheme in which you invested [ ] d. Fully aware [ ] Ans:- a) 27 b) 70

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c) 36 d) 17

70 60 50 40 30 20 10 0

T otally ig norant P artial knowledg e Awareonlyof any s pcifics chem e F ullyaware

Interpretation: This questions was to determine the awareness of mutual fund among participants that shows 46% are partially aware about mutual fund and rest are totally ignorant, aware only of any specific scheme and fully aware.

8. In which kind of mutual you would like to invest? a. Public [ ] b. Private [ ] Ans:- a) 95 b) 45

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Interpretation: This question was to determine whether the participants invest their money in public sector or in private sector. 63% participants are like to invest in private sector and only 37% participants like to invest in public sector

9. How do you come to know about Mutual Fund? a. Advertisement b. Peer Group c. Banks d. Financial Advisors Ans:- a) 33 b) 42

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c) 48 d) 27

50 45 40 35 30 25 20 15 10 5 0
Advertisem ent P eer g roup Banks F ina ncia l advisor

Interpretation: This question was to determine what are the sources of information about mutual fund among participants on the basis of graph 33 participants was aware by advertisement, 42 participants by peer group, 48 participants by banks and 27 by financial advisors. 10. Which mutual fund scheme have you used? a. Open-ended b. Close-ended c. Liquid fund d. Growth fund

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2. Interpretation: This question was to determine which mutual fund scheme have participants used. On the basis of questionnaires 49 participants use open-ended and 21 participants use close-ended, 42 participants use liquid fund and 38 participants use growth fund.

Que.11) if not invested in Mutual Fund then why? a. Not aware of MF b. Higher risk c. Not any specific reason

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Interpretation: This question was to determine that if participants not invested in Mutual fund then why? 0n the basis of primary data 61 participants not invested in mutual fund due to unawareness of mutual fund, 49 participants not invested in mutual fund due to high risk and 49 participants not invested in mutual fund because of not any specific reason.

Que.12) Which feature of the mutual funds allure you most? a. Diversification [ ] b. Better return and safety [ ] c. Reduction in risk and transaction cost [ ] d. Regular Income [ ]

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e. Tax benefit [ ]

Interpretation: This question was to check that which feature of the mutual funds allure the participants most and 25 participants invest in mutual fund due to diversification, 32 invest due to better return, 44 invest invested due to reduction in risk and transaction costs. 36 participants invested due to regular income and 13 invested because of tax benefit.

Que.13) In which Mutual Fund you have invested? Please tick (). All applicable. a. SBIMF b. UTI c. HDFC

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d. Reliance e. ICICI prudential funds f. JM mutual fund g. other. Specify

Interpretation: This question was to determine that how many participants among 150 have invested in which mutual fund and on the basis of the questionnaire we can say that 26 participants have invested in SBI mutual fund, 19 participants have invested in RELIANCE, 25 participants have invested in HDFC, 30 participants have invested in UTI, 24 participants have invested in ICICI, 15 participants have invested in JM mutual fund and 11 participants have invested in other mutual fund. Que.14) When you invest in Mutual Funds which mode of investment Will you prefer? a. One Time Investment

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b. Systematic Investment Plan (SIP)

Interpretation: This question was to determine how many people like to invest in one time investment plan and how many like to invest in systematic investment plan (SIP) on the basis of graph we can say that in 150 participants 42.66% like to invest in one time plan and 57.34% like to invest in SIP.

Que.15) Where from you purchase mutual funds? a. Directly from the AMCs [ ] b. Brokers only [ ]

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c. Brokers/ sub-brokers [ d. Other sources [ ]

3. Interpretation: On the basis of this question we can say that among 150 participants 55 participants purchase mutual fund directly from the AMCs, 36 participants purchase from broker only, 40 participants purchase from brokers & sub brokers and 19 participants purchase from other sources.

Que.16) Which AMC will you prefer to invest? Assets Management Co. a. SBIMF

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b. UTI c. Reliance d. HDFC e. Kotak f. ICICI g. JM finance

Interpretation: This question was to determine that how many people will prefer to invest in which Assets Management Company (AMC). The chart shows that 18% will invest in SBI mutual fund, 15% will invest in RELIANCE, 23% will invest in UTI, 13% will invest in HDFC, 19% will invest in ICICI and 12% will invest in KOTAK & JM finance. 17. Which sector are you investing in mutual fund sector?

i. General 1st

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ii. Oil and petroleum iii. Gold fund iv. Diversified equity fund v. Debt fund vi. Banking fund vii. Real estate fund

40 35 30 25 20 15 10 5 0
General 1st Oil & petroleum Gold D iversified Ba nkingfund Rea l statefund

Interpretation: On the basis of this question we can say that among 150 participants 28 participants are investing in general 1st sector, 18 participants are investing in Oil & petroleum sector, 27 participants are investing in gold sector, 38 participants are investing in Diversified equity fund sector, 25 participants are investing in banking fund and 14 participants are investing in real estate fund. 18. How would you like to receive the returns every year?

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a. Dividend payout b. Dividend re-investment c. Growth in NAV

Interpretation: This question was to determine that how would participants like to receive the returns every year? On the basis on questionnaire we can analyze that among 150 participants 26% participants like to receive the returns every year as dividend payout, 32% participants like to receive the returns every year as dividend re-investment and 58% participants like to receive the returns every year as growth in NAV.

SWOT Analysis A type of fundamental analysis of the health of a company by examining its strengths(S), weakness (W), business opportunity (O), and any threat (T) or dangers it might be exposed to.

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Strengths of UTI-MF
Well-positioned to capitalize on favorable macro-economic conditions and industry dynamics. Large focused asset manager with diverse fund offerings, experienced fund managers and record of steady AUM growth. A scheme for every class of citizenry Broad and stable client base and multiple distribution channels. Strong brand recognition Profitable structure benefiting from large size, automated and integrated systems, and high proportion of equity and balanced/hybrid funds. First in the industry in terms of Equity and Balanced Schemes AUM

Experienced professional management and well established statesponsors with access to PSU business opportunities

Weakness:
Poor service conditions Less penetration in rural areas AUM wise 4th in number

Opportunity
Stability through increased brand awareness, market penetration and Service offerings High untapped market in the semi urban and rural areas Increased saving habit among people provides a great opportunity for funds mobilization
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 Other emerging opportunities in the financial markets

Threats:
Increased competition among local AMCs Threat of increased entry of Foreign players in the industry High level of volatility of the stock market Rising inflation could reduce savings of people and thus investments

Findings:

Lucknow has huge untapped market as far as MF is concerned. Mutual Funds are more of an investment option than the speculative avenue. People tend to gain through long investments rather than through short term.

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Brokers advice matters to as many of the people. Major part of people preferred self-evaluation as best. Most of the people look at the returns that are given by funds some are the fund before investing into a Mutual Fund. Experience was the main factor that made a person invest in mutual funds. in this

favor and some people are those who consider Fund name and current NAV of

Limitation
People are not willing to take much risk and bear loss. For proper evaluation it was insufficient time. On the basis of particular area we cannot conclude whole. Information provided by respondents may be false. Lack of awareness about MF in public. Lack of interest. Lack of cooperation from the respondents.

Recommendations and Suggestions

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Brand Equity of UTI is very high just, so go & hit the market. Remove the differences in perception of audience about Private Company & PSU. Create Awareness about Mutual Fund. Literate audience about MF as better investment option. Run some program to bring MF in final decision set while prospects decide about distributorship. Advertisement on television is the main source of attraction so the company must advertise its products heavily. Product must be improved. There should be provision of complain suggestion boxes at each branch

Bibliography

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Annual report of the Company. Kotare Philip., Marketing Management, Pearson Education, India, 2004. Kothari. C.R., Research Methodology, New Age Publication, India, 2006.

http://www.amfiindia.com http://en.wikipedia.org/wiki/Mutual_fund http://utimf.com http://www.moneycontrol.com http://www.getpaidindia.com/category/mutual-funds/fund-houses/reliancemf/ http://www.investopedia.com http://finance.indiamart.com/markets/mutual_funds/ http://mutualfundsindia.com/fund_portfolio.asp http://www.yahoo.com http://www.google.com

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QUESTIONAAIRE
Que.1) Personal Details: (a). Name:(b). Add: (c).Contact No:(d). Age:(e). Qualification:(f). Occupation. Pl tick () Govt. Sec Pvt. Sec Business Agriculture & Others Que.2) What is your education qualification? a. under graduate b. Graduate c. PG d. any other Que.3) What is your monthly family income approximately? Pl tick (). (a)Up to Rs.10, 000 (b)Rs. 10,001 to 15,000 (c)Rs. 15,001 to 30,000 (d)Rs. 30,001 and above Que.4) What kind of investments you prefer most? Pl tick (). All applicable.

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a. Saving account b. Fixed deposits c. Insurance d. Mutual Fund e. Post Office-NSC, etc f. Shares/Debentures g. Gold/ Silver h. Real Estate I. PPF j. PF Que.5) While investing your money, which factor you prefer most? a. Company reputation b. Liquidity c. Low Risk d. High Return e. Any one Que.6) Have you ever invested your money in mutual fund? a. Yes b .No Que.7) Where do you find yourself as a mutual fund investor? a. Totally ignorant [ ] b. Partial knowledge of mutual funds [ ] c. Aware only of any specific scheme in which you invested [ ] d. Fully aware [ ] Que.8) In which kind of mutual you would like to invest? a. Public [ ] b. Private [ ]
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Que.9) How do you come to know about Mutual Fund? a. Advertisement b. Peer Group c. Banks d. Financial Advisors 10. Which mutual fund scheme have you used? a. Open-ended b. Close-ended c. Liquid fund d. Growth fund Que.11) if not invested in Mutual Fund then why? a. Not aware of MF b. Higher risk c. Not any specific reason Que.12) Which feature of the mutual funds allure you most? a. Diversification [ ] b. Better return and safety [ ] c. Reduction in risk and transaction cost [ ] d. Regular Income [ ] e. Tax benefit [ ]

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Que.13) In which Mutual Fund you have invested? Please tick (). All applicable. a. SBIMF b. UTI c. HDFC d. Reliance e. ICICI prudential funds f. JM mutual fund g. other. Specify Que.14) When you invest in Mutual Funds which mode of investment Will you prefer? a. One Time Investment b. Systematic Investment Plan (SIP) Que.15) Where from you purchase mutual funds? a. Directly from the AMCs [ ] b. Brokers only [ d. Other sources [ ] ] ] c. Brokers/ sub-brokers [

Que.16) Which AMC will you prefer to invest? Assets Management Co. a. SBIMF b. UTI c. Reliance d. HDFC
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e. Kotak f. ICICI g. JM finance Que.17) Which sector are you investing in mutual fund sector? i. General 1st ii. Oil and petroleum iii. Gold fund iv. Diversified equity fund v. Debt fund vi. Banking fund vii. Real estate fund

Que.18) How would you like to receive the returns every year? a. Dividend payout b. Dividend re-investment c. Growth in NAV

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