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INTRODUCTION TO COMPANY

Master Trust Group is one of the leading financial services company in India. We
have a strong belief in nurturing investment culture, attitude and inculcating a very
strong approach towards value investing forms the central part of any sound investment
philosophy. With an impeccable track record in client servicing of over two decades, we
have now grown to 650+ strong employee organization with over 1,50,000+ client
relationships. At Master Trust, our endeavor is to constantly meet every financial need
of our esteemed clients.
mastertrust - is a one point shop for all the investment needs of a customer.
The one-stop destination is specifically targeted towards the retail customers who
require a very strong relationship driven approach towards value investing. The
philosophy of mastertrust has its genesis from Master Trust groups belief in
nurturing the investment culture towards value investing.

Mission :To always earn the right to be our clients first choice through personal &
social wealth maximization

Vision :To be well diversified financial shop for wealth creation and being an ideal
service provider in our domain of business

Corporate Philosophy
Becoming an expert at anything takes a strong will, unyielding determination and
pure ability


Value System




GROUP MILESTONES

1985 : Company was incorporated by the name of Arora Financial Consultants
Limited

1993 : Acquired status of SEBI accredited Category-I Merchant Bankers under the
name Master Trust Limited

1994 : Master Capital Services Ltd. acquired membership of NSE

1995 : Master Trust Ltd. came out with an IPO

1997 : Became RBI approved Full Fledged Money Changers.

1999 : Launched Depository Services as a Depository participant of NSDL.

2001 : Launched Depository Services as depository participant of CDSL

2002 : Entered into insurance business as advisor for Life & General Insurance

2004 : Became member of NCDEX and MCX

Became Insurance Broker under the name of M/s Master Insurance Brokers

2005 : Acquired the membership of Bombay Stock Exchange Limited

Commenced Internet Trading

Became SEBI Registered Portfolio Manager

2007 : Set up regional offices at Baroda, Kolkata, Hyderabad, Allahabad, Hissar,
Bhubneshwar & Ahmedabad

2008 : Introduced Currency Derivatives trading through MCX-SX & NSE

2009 : Established an arbitrage desk

Implemented Master Swift

Established CRM

2010 : Trading turnover peaks US$1billion/day of group companies

Became members of NSEL and ACE



Arbitrage desk activated in spot commodity

Rebranding exercise of retail services

2011 : Launched its flagship PMS product named Master Quant 10

Started algorithmic trading solutions to its trading clients named Master Pulse/
Master Trader

Opened branches in Jaipur, Patna and Mumbai

2012 : Launched Integrated Amibroker and Metatrader charting platform for clients

Declared India's best Derivatives Broker by BSE

Crossed 10,000 clients in currency segment on NSE

Acquired membership of MCX-SX India's new stock exchange in both equity
as well as derivatives segment

Activated SLBM segment on NSE as a new asset class for our esteemed
customers






BOARD OF DIRECTORS
Mr. Harjeet Singh Arora (FCA, FCS), As a founder entrepreneur,
he has been instrumental in making Master Group one of the leading
Financial Services players in India. He laid the foundation of the group
in 1985 under the name of Arora Financials (P) Ltd. He has handled
more than 150 public issues and has been involved in many other
merchant banking & investment banking mandates of top corporate of
India. He has over 30 years of experience in Corporate Finance, Capital
Market and Financial Advisory Services.




Mr. R.K.Singhania (F.C.A.) is another co-promoter of the group. He
had over 10 years experience as Director (Finance) with a top
Corporate before joining the group. He is having more than 30 years
experience in Corporate Strategy, Tax Planning, Financial Engineering
and M & A space.




Mr. Pavan Chhabra (F.C.A.) is having a rich experience of more than
20 years in Primary and Secondary Capital Market, Institutional
Broking Business and other Merchant Banking activities.



Mr. G.S. Chawla (B.E., M.B.A., D.B.F.) has worked with Public
Financial Institutions & Corporate for more than 12 years. He also has
15 years rich experience of Capital Market, Finance, Merchant
Banking, Research, IT and other related activities with group.




Mr. Harinder Singh * (B.Com, I.C.W.A.inter) has been
monitoring the Secondary Market operations of the group for more
than 15 years.





Mr. Sanjay Sood (F.C.A.) is having more than 15 years of experience
in Merchant Banking, Foreign Exchange Management, Financial and
Retail services.He ceased to be director of the Company w.e.f.
01.04.2014




Mr. Puneet Singhania* (M.B.A., C.F.A.) is involved in new
initiatives in the group and assists other Directors in corporate strategy.
Prior to Joining the Company, he was working with ING Investment
Management in India in their equity fund management department.




Mr.Jashan Arora* (A.C.A.) is overseeing the arbitrage business and also marketing
initiatives on all India Level. He is actively involved on the I-Banking front and
private equity deals for the company.













FINANCIAL PLANNING
Financial Planning is a process for you to meet your financial goals keeping in mind
your assets, liabilities, income, expenses & price inflation together
But do you really need financial planning? Not really if you have a money
machine at your home and can print as much money as you want but that is not the case
even with Mr. Mukesh Ambani or Mr. Bill Gates
Everyone needs financial planning to answer questions like:
How much do I need in ten years time to buy a house?
How much should I invest now to get that money in ten years?
What should be my return on investments?
What instruments would give me those kind of returns?
Are the instruments suitable for me based on my risk tolerance and risk taking
capacity?
How do I monitor the investments?
Many a times people are not able to differentiate between risk tolerance
and risk taking capacity and that is where expert financial planners at
mastertrust help you differentiate between the two and answer and implement
all your questions above.

Financial Planning includes
Investment planning,
Risk Management & Insurance Planning,
Retirement Planning
Tax Planning & Estate Planning.


The company carry's Merchant Banking activities, ranging from Issue
Management to Advisory Services and Underwriting of Issues. In 1993 SEBI
accredited Category- I Merchant Bankers under the name of M/s Master Capital
Services Ltd. A "Merchant Banker" could be defined as " An organization that
acts as an intermediary between the issuers and the ultimate purchasers of
securities in the primary security market". Merchant Banker has been defined
under the Securities & Exchange Board of India (Merchant Bankers) Rules, 1992
as " any person who is engaged in the business of issue management either by
making arrangements regarding selling, buying or subscribing to securities as
manager, consultant, advisor or rendering corporate advisory service in relation to
such issue management". As a Merchant Banker, Master Capital Services Ltd
provides:






MERCHANT BANKING
Loan Syndication
"We also provide focused corporate finance advisory services for SMEs in the areas of
Mergers & Acquisitions, Private Equity Placements, IPOs and High Yield Debt. We see
specific opportunities in cross border M&As that would bring in strategic benefits and
growth opportunities for companies in the SME sector and we are already seeing good
attraction in this area".
Our Association
We have been associated with the following Groups/Mandates in various
capacities as Merchant Bankers.
1. Oswal Agro Group of Companies.
2. Vardhman Group of Companies.
3. Trident Group of Companies
4. Surya Roshni Ltd.
5. Telephone Cables Ltd.
6. Jaidka Foods Ltd.
7. Asian Lakto Group of Companies.
8. Vee Kay Fibres Ltd.
9. PHFGroup Of Companies
10. Parkash Industries Ltd.
11. Samana Steel Ltd.
12. Shreyans Paper Mills Ltd.
13. Ritesh Group of Industries
14. Oswal Spinning Group of Companies
15. Arihant Group of Companies
16. Thapar Group of Companies
17. Punjab Alkalies & Chemicals Ltd.


18. Sigma Cements Ltd.
19. Tokyo Plast Ltd.
20. R.S Petro Chemicals Ltd.

PUBLIC OFFERS HANDLED
Public Offer of following Target companies has been handled as Managers.
1. Esteem Capital & Management services Ltd.
2. Mohan Fibre Products Ltd.
3. Oswal Overseas Ltd.
4. AEC India Ltd.
5. AEC Enterprises Ltd.
6. Polo Hotels Ltd.
7. Yokogawa Bluestar Ltd.
8. Shivalik Agro Poly Products Ltd.
Besides these we have handled IPOs / Right issues of large number of midcap
companies.

FOREX
With dedicated forex bureaus offering travel related foreign exchange
services from special counters even beyond banking hours, we offer one of the
largest bouquet of FX Services at very competitive prices. These forex bureau also
offer door delivery of foreign exchange to corporate and other specified
customers.
Services Offered
Retail Foreign Exchange
Sale & Purchase of Currency Notes & Travellers Cheques
Encashment of Travellers Cheques
Western Union Money Transfer
Travel Insurance


Western Union Money Transfer
Western Union is a global leader in money transfer services, with a history of
pioneering service dating back more than 150 years.
We have tied up with BTI SITA an agent of Western Union for secure transfer of
money into India from almost anywhere in the world. You can quickly and easily
receive money from over 200,000 Western Union Agent locations in over 190 countries
worldwide. Money transfers make it easy for you to assist family or friends back home.
When you've got to receive money, and you've got to do it fast, turn to
mastertrust
INSURANCE
Future is uncertain and one needs to provide for the uncertainty today. We
at "mastertrust" help you secure your future through insurance products. Life insurance
is a unique investment that helps you to meet your dual needs - saving for life's
important goals, and protecting your assets.

Life Stage Primary Need Life Insurance Product
Young (unmarried) Asset buildup Wealth creation products
Young (married)
Asset buildup and
protection
Wealth creation and mortgage
protection products
Married & Kids
Children's
education
Asset buildup and
protection
Education, mortgage protection &
wealth creation products
Middle aged &
Teenage Children
Retirement planning
and asset protection
Retirement solutions & mortgage
protection products
Any Life Stage Health plans Health Insurance products





Our Thrust is
To give value added and quality services to the insuring public and enable
them to get proper insurance coverage that will adequately indemnify them
in time of need.
To give risk management back up to clients through our team of managers
and experienced executives.
To work together with the customers, combining our skills, technologies
and experience - no matter what your business is or how difficult the
situation is - we give it the correct perception.
Our approach to insurance broking is holistic. mastertrust critically
views the need and adequacy of Insurance from a client's perspective:
Define risk profile
Propose a risk management plan
Source insurance quotes
Evaluate quotes with recommendations
Focus on coverage and cost optimization
Placement of insurance as per clients choice
Validate the policy in line with proposal
Policy updation
Our motto is "Total Customer Satisfaction."
Our core value helps us to build and sustain enduring corporate
relationships.
As always, we put your needs first.


INSURANCE PRODUCTS
General Insurance Products
Mediclaim Insurance
Householder Policy
Personal Accident Policy
Motor Insurance
Overseas Mediclaim Policy
Shop Keeper Insurance Policy
Fire & Loss Of Profit Insurance
Public Liability Insurance
Group Mediclaim Insurance

Life Insurance Products
Unit Linked Insurance Plans
Endowment Plans
Term Plans
Money Back
Child Plans
Retirement Solutions
Single Premium Plans
Keymans & Partners Insurance

Depository Services Branch
Master Capital Services Ltd. boasts of an ever-growing customer base of over
95,000 account holders under its retail brand - mastertrust. We are depository
participants with the NSDL & CDSL for trading and settlement of dematerialized
shares. We perform clearing services for all securities transactions through our
accounts. We offer depository services to create a seamless transaction platform
execute trades and settle these transactions. Depository Services is part of our value


added services for our clients that create multiple interfaces with the client and provide
for a solution that takes care of all your needs.

TYPES OF ACCOUNTS
Resident individual
HUF
Partnership
Corporate & Clearing member account etc
NRI


LOAN AGAINST SHARES
We at Mastertrust work towards servicing our clients in a better way. We
provide Loan Against Shares (LAS) facility as we understand your needs and help
meet your liquidity requirements. With LAS we allow you loan against our
approved list of shares at reasonably competitive rates of interest. This product
helps you take advantage of opportunities available in the market without
involvement of new funds by you and optimize the returns on your existing
portfolio.
Requirements for availing this facility:
Loan Agreement: The client has to enter into an agreement and related
formalities are to be executed with Master Trust Ltd.
Bank Account: The client needs to open a current account with a designated
bank, with a POA executed in favor of Master Trust Ltd.
Demat Account: The client needs to open a demat account with us, with a POA
set in favor of Master Trust Ltd.
Trading Account: The client needs a trading account with a broker
NRI SERVICES
1] NRI FAQ
2] NRI Services
3] NRI Account at Mastertrust
4] NRI Help Desk






1] NRI FAQ
Who is a Non-Resident Indian (NRI)?
"Non Resident Indian" means a person who is a citizen of India or is a person of
Indian origin residing outside India for more than 90 days for employment or carrying
on business or vocation.
Who is an Overseas Corporate Body (OCB)?
Overseas Corporate Body (OCB) means a company, partnership firm, society
and other corporate body owned directly or indirectly to the extent of at least 60% by
NRIs and includes overseas trust in which not less than 60% beneficial interest is held
by NRIs directly or indirectly but irrevocably.
What is Participatory Notes (PN) ?
Participatory notes(PN) is issued by FII-Foreign Institution Investment and its
sub accounts. This is the route by which foreign national and or company can invest in
Indian Stocks.
What is an NRE A/C?
A NRE bank account is an external saving bank account opened for Non resident
Indians. This is why it is known as Non-Resident External account. Since it is an
external account, any monies lying in NRE account can be taken outside the country or
in other words, the monies lying in NRE account are fully repatriable. This money can
be converted into any foreign currency at the behest of the account holder and can be
remitted outside the country.
What is Non Repatriable?
Non Repatriable : Any amount of profit/ money made by NRI of his investment
which is not allowed to be converted into foreign currency or allowed to be taken
abroad is called Non Repatriable.


What is Repatriable?
Repatriable: Any amount of profit or money which an NRI or PIO is allowed to
convert into foreign currency and take out of India is called Repatriable.
What is PIS?
Portfolio Investment Scheme (PIS) is a scheme of the Reserve Bank of India
(RBI) defined in Schedule 3 of Foreign Exchange Management Act 2000 under which
the Non Resident Indians (NRIs) and Person of Indian Origin (PIOs) can purchase
and sell shares and convertible debentures of Indian Companies on a recognized stock
exchange in India by routing all such purchase/sale transactions through their account
held with a Designated Bank Branch.
Any NRI wanting to trade/make fresh investments in the Indian Equity
Secondary Market needs and must have one PIS account with only one designated bank
in India. Notes:
PIS account is applicable only for NRIs and not for resident Indians.
It is only for trading in Indian markets and not any other foreign markets.
It is applicable only for equity trades and not MF investments.
Why is PIS required?
For all the Indian companies or companies listed on Indian stock
exchanges, there are certain limits which have to be monitored under FEMA-
Foreign Exchange Management Act regulations. For any company the foreign
investment into that company cannot cross certain limit. This limit is different
from company to company and sector to sector. Also individually any NRI or a
PIO cannot invest more than 5% in any Indian company.
Do NRIs need any permission of RBI to subscribe for IPOs or Private
placements of equity shares/convertible debentures of existing or new
companies?


No. NRIs do not require any permission to invest though Initial Public
Offerings (IPOs) or Private placements. In such cases, the Issuing Company
should comply with all necessary regulations for issuing securities to a person
resident outside India.
2] NRI Services
We looks forward to meet every financial need of its esteemed clients and
following services are being provided:
Stock Broking
Commodity Broking
Depository
Merchant Banking
Project Consultancy
Primary Market
Mutual funds
Forex
Money Transfers
Insurance Broking (Life & General)
SEBI and Company Law consultancy
3] NRI Account at Mastertrust
DEMAT
First Mastertrust will open your NRE Account and PIS with Axis Bank.
After PIS is opened RBI permission no. will be obtained from Bank.
Open a DEMAT ACCOUNT with repatriable status with Mastertrust.
For opening demat accounts besides the documents stated above, we need to have
copy of PAN obtained by you from IT department in India.
TRADING
After having opened NRE, PIS & Demat accounts, you can open trading account
with Mastertrust with all the relevant proofs of having opened these accounts and same
set of documents that is required for opening Demat account.


CONTACT US
HEAD OFFICE
Ludhiana
SCO 19, Feroze Gandhi Market
Ludhiana.
Phone No : +91-161-3911500
Fax No. : +91-161-2402963

REGIONAL OFFICE

Chandigarh
SCO 22-23, Sector 9 D
Chandigarh
Phone No : +91-172-4848000, 3025800
Fax : +91-172-2745865

Mumbai
C-1, Jeevan Jyot, 18/20, Cawasjee Patel Street,
Mumbai - 400 001
Phone No : +91-22-40675300
Fax : +91-22-22026067

New Delhi
1012, Arunachal Building,
19, Barakhamba Road,
New Delhi - 110001.
Phone No : +91-11-42111000
Fax : +91-11-42111040



Kolkata
6th Floor, Sabarwal House,
55 B,Mirza Galib Street,
Kolkata - West Bengal - 700016.
Phone No : +91-33-40059773-75-76
Fax : +91-33-40059774


Uttar Pradesh/Uttarakhand
602, 6th Floor, Ratan Square,
Vidhan Sabha Marg,
Lucknow - 226001.
Phone No : +91-522-4911555
Hyderabad
LG-15, Lower Ground Floor,
Bhuvana Towers (CMR), S. D. Road,
Secundrabad, Andhra Pradesh - 500003.
Phone No : +91-40-30510600-04








INTRODUCTION
TO
MUTUAL FUND



INTRODUCTION TO SBI MUTUAL FUND
SBI Funds Management Pvt. Ltd. is one of the leading fund houses in the country
with an investor base of over 4.6 million and over 20 years of rich experience in
fund management consistently delivering value to its investors. SBI Funds
Management Pvt. Ltd. is a joint venture between 'The State Bank of India' one of
India's largest banking enterprises, and Socit Gnrale Asset Management
(France), one of the world's leading fund management companies that manages
over US$ 500 Billion worldwide.
Today the fund house manages over Rs 28500 crores of assets and has a diverse
profile of investors actively parking their investments across 36 active schemes. In
20 years of operation, the fund has launched 38 schemes and successfully
redeemed 15 of them, and in the process, has rewarded our investors with
consistent returns. Schemes of the Mutual Fund have time after time outperformed
benchmark indices, honored us with 15 awards of performance and have emerged
as the preferred investment for millions of investors. The trust reposed on us by
over 4.6 million investors is a genuine tribute to our expertise in fund
management.
SBI Funds Management Pvt. Ltd. serves its vast family of investors through a
network of over 130 points of acceptance, 28 Investor Service Centres, 46 Investor
Service Desks and 56 District Organizers. SBI Mutual is the first bank-sponsored fund
to launch an offshore fund Resurgent India Opportunities Fund.
Growth through innovation and stable investment policies is the SBI MF credo.
PRODUCTS OF SBI MUTUAL FUND
Equity schemes
The investments of these schemes will predominantly be in the stock markets and
endeavor will be to provide investors the opportunity to benefit from the higher
returns which stock markets can provide. However they are also exposed to the
volatility and attendant risks of stock markets and hence should be chosen only by


such investors who have high risk taking capacities and are willing to think long
term. Equity Funds include diversified Equity Funds, Sectoral Funds and Index
Funds. Diversified Equity Funds invest in various stocks across different sectors
while sectoral funds which are specialized Equity Funds restrict their investments
only to shares of a particular sector and hence, are riskier than Diversified Equity
Funds. Index Funds invest passively only in the stocks of a particular index and
the performance of such funds move with the movements of the index.
Magnum COMMA Fund
Magnum Equity Fund
Magnum Global Fund
Magnum Index Fund
Magnum Midcap Fund
Magnum Multicap Fund
Magnum Multiplier plus 1993
Magnum Sectoral Funds Umbrella
MSFU- Emerging Business Fund
MSFU- IT Fund
MSFU- Pharma Fund
MSFU- Contra Fund
MSFU- FMCG Fund
SBI Arbitrage Opportunities Fund
SBI Blue chip Fund
SBI Infrastructure Fund - Series I
SBI Magnum Taxgain Scheme 1993
SBI ONE India Fund
SBI TAX ADVANTAGE FUND - SERIES I
Debt schemes
Debt Funds invest only in debt instruments such as Corporate Bonds, Government
Securities and Money Market instruments either completely avoiding any
investments in the stock markets as in Income Funds or Gilt Funds or having a


small exposure to equities as in Monthly Income Plans or Children's Plan. Hence
they are safer than equity funds. At the same time the expected returns from debt
funds would be lower. Such investments are advisable for the risk-averse investor
and as a part of the investment portfolio for other investors.
Magnum Childrens benefit Plan
Magnum Gilt Fund
Magnum Income Fund
Magnum Insta Cash Fund
Magnum Income Fund- Floating Rate Plan
Magnum Income Plus Fund
Magnum Insta Cash Fund -Liquid Floater Plan
Magnum Monthly Income Plan
Magnum Monthly Income Plan- Floater
Magnum NRI Investment Fund
SBI Premier Liquid Fund
BALANCED SCHEMES
Magnum Balanced Fund invests in a mix of equity and debt investments. Hence
they are less risky than equity funds, but at the same time provide
commensurately lower returns. They provide a good investment opportunity to
investors who do not wish to be completely exposed to equity markets, but is
looking for higher returns than those provided by debt funds.
Magnum Balanced Fund






COMPETITORS OF SBI MUTUAL FUND
Some of the main competitors of SBI Mutual Fund in Ludhiana are as Follows:
i. ICICI Mutual Fund
ii. Reliance Mutual Fund
iii. UTI Mutual Fund
iv. Birla Sun Life Mutual Fund
v. Kotak Mutual Fund
vi. HDFC Mutual Fund
vii. Sundaram Mutual Fund
viii. LIC Mutual Fund
ix. Principal
x. Franklin Templeton
















AWARDS AND ACHIEVEMENTS
SBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award - 8
times, CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-
2006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award
2007 and 5 Awards for our schemes.

























OBJECTIVES
AND
SCOPE







OBJECTIVES OF THE STUDY
1. To find out the Preferences of the investors for Asset
Management Company.
2. To know the Preferences for the portfolios.
3. To know why one has invested or not invested in SBI Mutual
fund
4. To find out the most preferred channel.
5. To find out what should do to boost Mutual Fund Industry.


















Scope of the study
A big boom has been witnessed in Mutual Fund Industry in resent times. A large number
of new players have entered the market and trying to gain market share in this rapidly
improving market.
The research was carried on in Ludhiana. I had been sent at one of the branch of State
Bank of India Ludhiana where I completed my Project work. I surveyed on my Project
Topic A study of preferences of the Investors for investment in Mutual Fund on the
visiting customers of the SBI Boring Canal Road Branch.
The study will help to know the preferences of the customers, which company, portfolio,
mode of investment, option for getting return and so on they prefer. This project report
may help the company to make further planning and strategy.









RESEARCH
METHODOLOGY








RESEARCH METHODOLOGY
This report is based on primary as well secondary data, however primary data collection was
given more importance since it is overhearing factor in attitude studies. One of the most
important users of research methodology is that it helps in identifying the problem, collecting,
analyzing the required information data and providing an alternative solution to the problem .It
also helps in collecting the vital information that is required by the top management to assist
them for the better decision making both day to day decision and critical ones.
Data sources:
Research is totally based on primary data. Secondary data can be used only for the reference.
Research has been done by primary data collection, and primary data has been collected by
interacting with various people. The secondary data has been collected through various
journals and websites.
Duration of Study:
The study was carried out for a period of two months.
Sampling:
Sampling procedure:
The sample was selected of them who are the customers/visitors of State Bank if India, Boring
Canal Road Branch, irrespective of them being investors or not or availing the services or not.
It was also collected through personal visits to persons, by formal and informal talks and
through filling up the questionnaire prepared. The data has been analyzed by using
mathematical/Statistical tool.
Sample size:
The sample size of my project is limited to 200 people only. Out of which only 120 people had
invested in Mutual Fund. Other 80 people did not have invested in Mutual Fund.
Sample design:
Data has been presented with the help of bar graph, pie charts, line graphs etc.


LIMITATION:

Some of the persons were not so responsive.
Possibility of error in data collection because many of investors may have not
given actual answers of my questionnaire.
Sample size is limited to 200 visitors of State Bank of India , Boring Canal Road
Branch, Ludhiana out of these only 120 had invested in Mutual Fund. The sample.
size may not adequately represent the whole market.
Some respondents were reluctant to divulge personal information which can affect
the validity of all responses.
The research is confined to a certain part of Ludhiana.












DATA ANALYSIS
&
INTERPRETATION








ANALYSIS & INTERPRETATION OF THE DATA
1. (a) Age distribution of the Investors of Ludhiana

Age Group <= 30 31-35 36-40 41-45 46-50 >50
No. of
Investors
12 18 30 24 20 16




Interpretation:
According to this chart out of 120 Mutual Fund investors of Ludhiana the most
are in the age group of 36-40 yrs. i.e. 25%, the second most investors are in the
age group of 41-45yrs i.e. 20% and the least investors are in the age group of
below 30 yrs.
12
18
30
24
20
16
0
5
10
15
20
25
30
35
<=30 31-35 36-40 41-45 46-50 >50
I
n
v
e
s
t
o
r
s

i
n
v
e
s
t
e
d

i
n

M
u
t
u
a
l

F
u
n
d

Age group of the Investors



(b). Educational Qualification of investors of Ludhiana


Educational Qualification Number of Investors
Graduate/ Post Graduate 88
Under Graduate 25
Others 7
Total 120


Interpretation:
Out of 120 Mutual Fund investors 71% of the investors in Ludhiana are
Graduate/Post Graduate, 23% are Under Graduate and 6% are others (under
HSC).
71%
23%
6%
Graduate/Post Graduate Under Graduate Others


c). Occupation of the investors of Ludhiana

.




Interpretation:
In Occupation group out of 120 investors, 38% are Pvt. Employees, 25%
are Businessman, 29% are Govt. Employees, 3% are in Agriculture and
5% are in others.


35
45
30
4
6
0
5
10
15
20
25
30
35
40
45
50
Govt.
Service
Pvt. Service Business Agriculture Others
N
o
.

o
f

I
n
v
e
s
t
o
r
s

Occupation of the customers
Occupation No. of Investors
Govt. Service 30
Pvt. Service 45
Business 35
Agriculture 4
Others 6


(d). Monthly Family Income of the Investors of Ludhiana.
Income Group No. of Investors
<=10,000 5
10,001-15,000
12
15,001-20,000
28
20,001-30,000
43
>30,000
32

Interpretation:
In the Income Group of the investors of Ludhiana, out of 120 investors,
36% investors that is the maximum investors are in the monthly income
group Rs. 20,001 to Rs. 30,000, Second one i.e. 27% investors are in
the monthly income group of more than Rs. 30,000 and the minimum
investors i.e. 4% are in the monthly income group of below Rs. 10,000

5
12
28
43
32
0
5
10
15
20
25
30
35
40
45
50
<=10 10-15 15-20 20-30 >30
N
o
.

o
f

I
n
v
e
s
t
o
r
s

Income Group of the Investorsn (Rs. in Th.)


(2) Investors invested in different kind of investments.
Kind of Investments No. of Respondents
Saving A/C 195
Fixed deposits 148
Insurance 152
Mutual Fund 120
Post office (NSC) 75
Shares/Debentures 50
Gold/Silver 30
Real Estate 65

Interpretation: From the above graph it can be inferred that out of 200
people, 97.5% people have invested in Saving A/c, 76% in Insurance, 74% in
Fixed Deposits, 60% in Mutual Fund, 37.5% in Post Office, 25% in Shares or
Debentures, 15% in Gold/Silver and 32.5% in Real Estate.
195
148
152
120
75
50
30
65
0 100 200 300
No.of Respondents
K
i
n
d
s

o
f

I
n
v
e
s
t
m
e
n
t



3. Preference of factors while investing
Factors (a) Liquidity (b) Low Risk (c) High Return (d) Trust
No. of
Respondents
40 60 64 36



Interpretation:
Out of 200 People, 32% People prefer to invest where there is High Return, 30%
prefer to invest where there is Low Risk, 20% prefer easy Liquidity and 18%
prefer Trust

20%
30% 32%
18%
Liquidity Low Risk High Return Trust


4. Awareness about Mutual Fund and its Operations





Interpretation:
From the above chart it is inferred that 67% People are aware of Mutual Fund
and its operations and 33% are not aware of Mutual Fund and its operations.

67%
33%
Yes No
Response Yes No
No. of Respondents 135 65


5. Source of information for customers about Mutual Fund
Source of information No. of Respondents
Advertisement 18
Peer Group 25
Bank 30
Financial Advisors 62

Interpretation:
From the above chart it can be inferred that the Financial Advisor is the most
important source of information about Mutual Fund. Out of 135 Respondents,
46% know about Mutual fund Through Financial Advisor, 22% through Bank,
19% through Peer Group and 13% through Advertisement.


0
20
40
60
80
Advertisement Peer Group Bank Financial Advisors
18
25
30
62
N
o
.

o
f

R
e
s
p
o
n
d
e
n
t
s

Source of Information


6. Investors invested in Mutual Fund
Response No. of Respondents
YES 120
NO 80
Total 200


Interpretation:
Out of 200 People, 60% have invested in Mutual Fund and 40% do not have
invested in Mutual Fund.


Yes
60%
No
40%


7. Reason for not invested in Mutual Fund
Reason No. of Respondents
Not Aware
65
Higher Risk
5
Not any Specific Reason
10


Interpretation:
Out of 80 people, who have not invested in Mutual Fund, 81% are not aware of
Mutual Fund, 13% said there is likely to be higher risk and 6% do not have any
specific reason.

81%
13%
6%
Not Aware Higher Risk Not Any


8. Investors invested in different Assets Management Co. (AMC)
Name of AMC No. of Investors
SBIMF
55
UTI
75
HDFC
30
Reliance
75
ICICI Prudential
56
Kotak
45
Others
70

Interpretation:
In Ludhiana most of the Investors preferred UTI and Reliance Mutual Fund. Out
of 120 Investors 62.5% have invested in each of them, only 46% have invested
in SBIMF, 47% in ICICI Prudential, 37.5% in Kotak and 25% in HDFC.

75
75
56
55
45
30
70
0 20 40 60 80
UTI
Reliance
ICICI
SBIMF
Kotak
HDFC
Others
No. of Investors
N
a
m
e

o
f

A
M
C



9. Reason for invested in SBIMF
Reason No. of Respondents
Associated with SBI 35
Better Return 5
Agents Advice 15


Interpretation:
Out of 55 investors of SBIMF 64% have invested because of its association with
Brand SBI, 27% invested on Agents Advice, 9% invested because of better
return.


64%
9%
27%
Associated with SBI Better Return Agents Advice


10. Reason for not invested in SBIMF
Reason No. of Respondents
Not Aware 25
Less Return 18
Agents Advice 22



Interpretation:
Out of 65 people who have not invested in SBIMF, 38% were not aware with
SBIMF, 28% do not have invested due to less return and 34% due to Agents
Advice.

38%
28%
34%
Not Aware Less Return Agent's Advice


11. Preference of Investors for future investment in Mutual Fund
Name of AMC No. of Investors
SBIMF
76
UTI
45
HDFC
35
Reliance
82
ICICI Prudential
80
Kotak
60
Others
75

Interpretation:
Out of 120 investors, 68% prefer to invest in Reliance, 67% in ICICI Prudential,
63% in SBIMF, 62.5% in Others, 50% in Kotak, 37.5% in UTI and 29% in
HDFC Mutual Fund.
0 20 40 60 80 100
SBIMF
UTI
HDFC
Reliance
ICICI Prudential
Kotak
Others
76
45
35
82
80
60
75
No. of Investors
N
a
m
e

o
f

A
M
C



12. Channel Preferred by the Investors for Mutual Fund
Investment
Channel Financial Advisor Bank AMC
No. of Respondents 72 18 30


Interpretation:
Out of 120 Investors 60% preferred to invest through Financial Advisors, 25%
through AMC and 15% through Bank.



60%
15%
25%
Financial Advisor Bank AMC


13. Mode of Investment Preferred by the Investors
Mode of Investment One time Investment Systematic Investment Plan (SIP)
No. of Respondents 78 42


Interpretation:
Out of 120 Investors 65% preferred One time Investment and 35 % Preferred
through Systematic Investment Plan.



65%
35%
One time Investment SIP


14. Preferred Portfolios by the Investors
Portfolio No. of Investors
Equity 56
Debt 20
Balanced 44


Interpretation:
From the above graph 46% preferred Equity Portfolio, 37% preferred Balance
and 17% preferred Debt portfolio



46%
17%
37%
Equity Debt Balance


15. Option for getting Return Preferred by the Investors
Option Dividend Payout Dividend
Reinvestment
Growth
No. of Respondents 25 10 85



Interpretation:
From the above graph 71% preferred Growth Option, 21% preferred Dividend
Payout and 8% preferred Dividend Reinvestment Option.


21%
8%
71%
Dividend Payout Dividend Reinvestment Growth


16. Preference of Investors whether to invest in Sectoral Funds
Response No. of Respondents
Yes 25
No 95



Interpretation:
Out of 120 investors, 79% investors do not prefer to invest in Sectoral Fund
because there is maximum risk and 21% prefer to invest in Sectoral Fund.


21%
79%
Yes No





FINDINGS AND
CONCLUSION







FINDINGS
In Ludhiana in the Age Group of 36-40 years were more in
numbers. The second most Investors were in the age group of
41-45 years and the least were in the age group of below 30
years.
In Ludhiana most of the Investors were Graduate or Post
Graduate and below HSC there were very few in numbers.
In Occupation group most of the Investors were Govt.
employees, the second most Investors were Private employees
and the least were associated with Agriculture.
In family Income group, between Rs. 20,001- 30,000 were more
in numbers, the second most were in the Income group of more
than Rs.30,000 and the least were in the group of below Rs.
10,000.
About all the Respondents had a Saving A/c in Bank, 76%
Invested in Fixed Deposits, Only 60% Respondents invested in
Mutual fund.
Mostly Respondents preferred High Return while investment,
the second most preferred Low Risk then liquidity and the least
preferred Trust.
Only 67% Respondents were aware about Mutual fund and its
operations and 33% were not.
Among 200 Respondents only 60% had invested in Mutual
Fund and 40% did not have invested in Mutual fund.
Out of 80 Respondents 81% were not aware of Mutual Fund,
13% told there is not any specific reason for not invested in


Mutual Fund and 6% told there is likely to be higher risk in
Mutual Fund.
Most of the Investors had invested in Reliance or UTI Mutual
Fund, ICICI Prudential has also good Brand Position among
investors, SBIMF places after ICICI Prudential according to the
Respondents.
Out of 55 investors of SBIMF 64% have invested due to its
association with the Brand SBI, 27% Invested because of
Advisors Advice and 9% due to better return.
Most of the investors who did not invested in SBIMF due to not
Aware of SBIMF, the second most due to Agents advice and
rest due to Less Return.
For Future investment the maximum Respondents preferred
Reliance Mutual Fund, the second most preferred ICICI
Prudential, SBIMF has been preferred after them.
60% Investors preferred to Invest through Financial Advisors,
25% through AMC (means Direct Investment) and 15%
through Bank.
65% preferred One Time Investment and 35% preferred SIP
out of both type of Mode of Investment.
The most preferred Portfolio was Equity, the second most was
Balance (mixture of both equity and debt), and the least
preferred Portfolio was Debt portfolio.
Maximum Number of Investors Preferred Growth Option for
returns, the second most preferred Dividend Payout and then
Dividend Reinvestment.
Most of the Investors did not want to invest in Sectoral Fund,
only 21% wanted to invest in Sectoral Fund.


CONCLUSION
Running a successful Mutual Fund requires complete understanding
of the peculiarities of the Indian Stock Market and also the psyche of
the small investors. This study has made an attempt to understand the
financial behavior of Mutual Fund investors in connection with the
preferences of Brand (AMC), Products, Channels etc. I observed
that many of people have fear of Mutual Fund. They think their
money will not be secure in Mutual Fund. They need the knowledge
of Mutual Fund and its related terms. Many of people do not have
invested in mutual fund due to lack of awareness although they have
money to invest. As the awareness and income is growing the
number of mutual fund investors are also growing.
Brand plays important role for the investment. People invest in
those Companies where they have faith or they are well known with
them. There are many AMCs in Ludhiana but only some are
performing well due to Brand awareness. Some AMCs are not
performing well although some of the schemes of them are giving
good return because of not awareness about Brand. Reliance, UTI,
SBIMF, ICICI Prudential etc. they are well known Brand, they are
performing well and their Assets Under Management is larger than


others whose Brand name are not well known like Principle,
Sunderam, etc.
Distribution channels are also important for the investment in mutual
fund. Financial Advisors are the most preferred channel for the
investment in mutual fund. They can change investors mind from
one investment option to others. Many of investors directly invest
their money through AMC because they do not have to pay entry
load. Only those people invest directly who know well about mutual
fund and its operations and those have time.













SUGGESTIONS
AND
RECOMMENDATIONS







SUGGESTIONS AND RECOMMENDATIONS
The most vital problem spotted is of ignorance. Investors
should be made aware of the benefits. Nobody will invest
until and unless he is fully convinced. Investors should be
made to realize that ignorance is no longer bliss and what they
are losing by not investing.
Mutual funds offer a lot of benefit which no other single
option could offer. But most of the people are not even aware
of what actually a mutual fund is? They only see it as just
another investment option. So the advisors should try to
change their mindsets. The advisors should target for more
and more young investors. Young investors as well as persons
at the height of their career would like to go for advisors due
to lack of expertise and time.
Mutual Fund Company needs to give the training of the
Individual Financial Advisors about the Fund/Scheme and its
objective, because they are the main source to influence the
investors.

Before making any investment Financial Advisors should first
enquire about the risk tolerance of the investors/customers, their
need and time (how long they want to invest). By considering
these three things they can take the customers into
consideration.


Younger people aged under 35 will be a key new customer
group into the future, so making greater efforts with younger
customers who show some interest in investing should pay off.
Customers with graduate level education are easier to sell to
and there is a large untapped market there. To succeed
however, advisors must provide sound advice and high quality.
Systematic Investment Plan (SIP) is one the innovative
products launched by Assets Management companies very
recently in the industry. SIP is easy for monthly salaried
person as it provides the facility of do the investment in EMI.
Though most of the prospects and potential investors are not
aware about the SIP. There is a large scope for the companies
to tap the salaried persons.








BIBLIOGRAPHY



BIBLIOGRAPHY
NEWS PAPERS

OUTLOOK MONEY

TELEVISION CHANNEL (CNBC AAWAJ)

MUTUAL FUND HAND BOOK

FACT SHEET AND STATEMENT

WWW.SBIMF.COM

WWW.MONEYCONTROL.COM

WWW.AMFIINDIA.COM

WWW.ONLINERESEARCHONLINE.COM

WWW. MUTUALFUNDSINDIA.COM






ANNEXURE
Dear Sir/ Madam,
I am, Mansi Khosla student of M.Com -2
nd
at Arya College, Ludhiana doing
a project A study of preferences of the investors for investment in SBI
mutual funds. Please co-operate to fill this questionnaire.
1. Personal Details:

(a). Name:-

(b). Add: - Phone:-

(c). Age:-


(d). Qualification:-




(e). Occupation. Pl tick ()

Govt. Ser Pvt. Ser Business Agriculture Others


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

Up to
Rs.10,000
Rs. 10,001 to
15000
Rs. 15,001 to
20,000
Rs. 20,001 to
30,000
Rs. 30,001 and
above


2. What kind of investments you have made so far? 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


3. While investing your money, which factor will you prefer?
.
(a) Liquidity (b) Low Risk (c) High Return (d) Trust



4. Are you aware about Mutual Funds and their operations? Pl tick (). Yes No
Graduation/PG Under Graduate Others




5. If yes, how did you know about Mutual Fund?

a. Advertisement b. Peer Group c. Banks d. Financial Advisors


6. Have you ever invested in Mutual Fund? Pl tick (). Yes No

7. If not invested in Mutual Fund then why?

(a) Not aware of MF (b) Higher risk (c) Not any specific reason


8. If yes, in which Mutual Fund you have invested? Pl. tick (). All applicable.

a. SBIMF b. UTI c. HDFC d. Reliance e. Kotak f. Other. specify


9. If invested in SBIMF, you do so because (Pl. tick (), all applicable).

a. SBIMF is associated with State Bank of India.
b. They have a record of giving good returns year after year.
c. Agent Advice


10. If NOT invested in SBIMF, you do so because (Pl. tick () all applicable).

a. You are not aware of SBIMF.
b. SBIMF gives less return compared to the others.
c. Agent Advice


11. When you plan to invest your money in asset management co. which AMC will you prefer?


Assets Management Co.
a. SBIMF
b. UTI
c. Reliance
d. HDFC
e. Kotak
f. ICICI




12. Which Channel will you prefer while investing in Mutual Fund?

(a) Financial Advisor (b) Bank (c) AMC



13. When you invest in Mutual Funds which mode of investment will you prefer? Pl. tick ().

a. One Time Investment b. Systematic Investment Plan (SIP)


14. When you want to invest which type of funds would you choose?

a. Having only debt
portfolio
b. Having debt & equity
portfolio.
c. Only equity portfolio.



15. How would you like to receive the returns every year? Pl. tick ().

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



16. Instead of general Mutual Funds, would you like to invest in sectorial funds?
Please tick (). Yes No








PROJECT REPORT
ON
A STUDY OF PREFERENCES OF THE INVESTORS
FOR INVESTMENT IN SBI MUTUAL FUND


In partial fulfillment of the requirement for the
Award of the degree of
MASTER OF COMMERCE
(2012-2014)




SUBMITTED BY: PROJECT GUIDE :
Mansi Khosla Mr. A.K. Singla
M.Com (2
nd
Sem) HOD, Dept. of Comm.
Roll No.



ARYA COLLEGE, LUDHIANA
AFFILIATED TO:
PANJAB UNIVERSITY, CHANDIGARH


CERTIFICATE
This is to certify that the project report entitled A STUDY OF PREFERENCES
OF THE INVESTORS FOR INVESTMENT IN SBI MUTUAL FUNDS
submitted by Mansi Khosla is a bonafide piece of work conducted under my
direct supervision and guidance. No part of this work has been submitted for any
other degree of any other degree of any other university. The data sources have
been duly acknowledged. It may be considered for evaluation in the partial
fulfillment of the requirement for the award of the degree of Bachelor of Business
Administration.


Date : Mr. A. K. Singla
Project Guide
Arya College, Ludhiana
















PREFACE
With immense pleasure and deep sense of sincerity, I have completed my Industrial
training. It is an essential requirement for each and every student to have some practical
exposure towards real world situations. Training is systematized practical experience to
inculcate self-confidence in a student so that they can mentally prepare themselves for
this competitive environment.
The purpose of training is:
1. Developing intellectual ability of student
2. Bring confidence
3. Developing skills
4. Modify Attitudes
How do businesses succeed in todays competitive environment? The factor that can set
an organization apart is its people. The quality of the organization employees, their
enthusiasm and satisfaction with their jobs, their experience, and of fair treatment all
affects the firms productivity, customer service, reputation and survival. In short,
people make the difference.
To increase the effectiveness of their promotion measures, insurance companies should
increasingly incorporate such measures into specific management programmes as well
as general management measures with regard to personnel development, organisational
development and quality control.
Formulating manpower-planning policies is one of the most critical and difficult
challenges faced by an organisation. In particular, after recruitment, formulating
promotion policies from one grade to another becomes more difficult as the organisation
requires more expertise, since it is linked to the productivity enhancement of the
organisation.







ACKNOWLEDGEMENT

I wish to express my deep gratitude to Mr. A.K. Singla for acting as a guide and
providing me with continuous support and guidance. This report could not have
completed without the inputs and the words of advice from her far which I shall always
remain grateful to her.
I with gratitude to my other faculty members for taking keen interest in
my project work and fine-tuning my efforts as and when required.




Mansi Khosla
Roll No.14110000370









CONTENTS

Acknowledgement
Declaration
Executive Summary

Chapter - 1 INTRODUCTION
Chapter - 2 COMPANY PROFILE
Chapter - 3 OBJECTIVES AND SCOPE
Chapter - 4 RESEARCH METHODOLOGY
Chapter - 5 DATA ANALYSIS AND INTERPRETATION
Chapter - 6 FINDINGS AND CONCLUSIONS
Chapter - 7 SUGGESTIONS & RECOMMENDATIONS
BIBLIOGRAPHY





EXECUTIVE SUMMARY
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 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.
The second part of the Project consists of data and its analysis collected through survey done on
200 people. For the collection of Primary data I made a questionnaire and surveyed of 200
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 Ludhiana to get some knowledge related to my
topic. I studied about the products and strategies of other AMCs in Ludhiana to know why
people prefer to invest in those AMCs. This Project covers the topic THE MUTUAL FUND
IS BETTER INVESTMENT PLAN. The data collected has been well organized and
presented. I hope the research findings and conclusion will be of use.