Study On Perceptions Of Advisors Regarding Mutual Fund Business & Investment Habits Of People Prudent CAS Ltd Ahmedabad

By: Preeti Rungta 8/4/2012 SUBMITTED TO: GLSICT-MBA, GTU

ABSTRACT In India, people are good at savings but their investments are poor. The inflation rate is growing faster while the investment returns are not high. The market has dramatically increased and decreased twice in the last 5 years. In this condition, people dont want to take risk. So there is a need of advisory. This report presents a study of semi urban areas where advisory will play major role hence they should target these areas. INTRODUCTION TO STUDY The main work of advisory firms is to find the best mutual fund companies who give greater return at lower risk and associate a connection among these companies and advisors. Hence, this research tries to understand the perception of investors regarding the savings and investments perceptions of advisors regarding mutual fund. INTRODUCTION TO COMPANY It was incorporated in year 2000 with a clear vision of providing professional services in the area of personal and corporate investments. It offers specialized services in the areas of Personal and Corporate Investment Planning through Mutual Funds, Equities, Derivatives, Third Party Products, Fixed Income Products, Life/General Insurance and Real Estate. OBJECTIVES OF THE STUDY To know the investment pattern of people at Kadi as a rural area To know the current trend of investment choices among investors To know the investment objectives of people To know the perceptions of financial advisors working in other instruments regarding the mutual funds To know possible steps for attracting advisors in mutual fund business To understand the loopholes in the mutual fund business as a subject of advisors income

RESEARCH METHODOLOGY This report is basically based upon the primary data where questionnaires are filled up by personal meeting and through internet using Google doc, Facebook and Gmail. The sampling unit is limited up to the area of Kadi which is a semi urban area covering many rural areas in its nearby. There are two groups on which study is undertaken. First is the advisors group and second is investors group. There are various hypothesis which are tested with the help of chisquare test and the main outcome is to find out the relation between advisors perception on mutual fund business and its actual working. MAJOR FINDINGS Kadi place is a good target for the mutual fund business if done properly Awareness regarding mutual fund advisory is less among investors and due to past experience; people are not ready to invest in MF while investors are investing their money in equity market hence the scope of mutual fund is high. LIC agents are attracted towards the huge initial income. Due to general trend, the responses are dependent on each other and true perceptions of advisors are not arrived. CONCLUSION/ SUGGESTIONS The MF advisory should turn to Kadi and spread awareness among investors. When investors will understand they will demand mutual fund and advisory support. The perceptions of advisors can be changed only when their clients will tell them. Those who are starting with career are more interested in entering the MF business. It can be a great opportunity to focus on them and make them ready for long run.. Most of the advisors dont know about royalty income, its good to arrange programs at different cities regarding mutual fund business and do the same in business related colleges. This will attract the youngsters to enter. Kadi is a place which is covering many villages around it and these places are full of investors who depend on their advisors. If advisory firms can prepare agents for consulting with these people, they can get huge investments.