OVERVIEW OF MUTUAL FUND INDUSTRY

WORKING OF MUTUAL FUND

OBJECTIVES OF THE STUDY

To study the investors Preference regarding Investment in

Mutual Funds. To know about the factor influencing choices of the customer regarding MF Overall study of the perception of investors regarding MF

Categories of Mutual Fund

BANK V/S MUTUAL FUNDS

CATEGORY
Returns Administrative exp. Risk Investment options Network Liquidity Quality of assets

BANKS
Low High Low Less High penetration At a cost Not transparent

MUTUAL FUNDS
High Low Moderate More Low but improving Better Transparent

ACCOUNTING AND VALUATION

Net Asset Value (NAV) Calculation of Net Asset Value

NAV =

Market value of investments + Current assets and other assets + Accrued income - Current liabilities and other liabilities - Accrued expenses

RESEARCH METHODOLOGY
Research Objective: STUDY OF INVESTORS PERCEPTION ABOUT INVESTMENT IN MUTUAL FUNDS
Research Design: descriptive Data Collection Method: SURVEY Research Instrument: QUESTIONNAIRE

SAMPLE DESIGN
Sample Size: 100 Sampling Technique:NONPROBABILITY
SAMPLING TECHNIQUE Data Source: PRIMARY Sampling Methods: TABLES ,CHARTS,GRAPHS

Place: chandigarh Type Of Questions: CLOSE-ENDED Number Of Questions: 12

1.Do you invest in Mutual Funds?

9% yes 28% 63% no earlier,now stopped

3.What is your Trading Preference?

Trading Preference

16%

28% Speculation Investment Both

56%

4.What is your Average investment period?

Average Investment Period
50% 23% 10% 0% Less Than 3 months 3-9 Months 9 months 2 Year Investment Period Less Than 3-9 Months 9 months - More Than Series1 23% 10% 42% 25% More Than 2 Year S1 42% 25%

5. Factors influencing the investment decisions?

Factors Influencing Investment
40% 30% 20% 10% 0% 10% 6% Self 30% 32% 20% 30%

2% Other 2%

Broke News Magzi Frien 10% 6% 20%

Series1 32%

6.How much Risk are you willing to take?

Moderate

High

Low 0% 20% 40% 60%

7.How much Appreciation do you expect from your Investments?

Expected Rise In Income

12%

8% 48% Upto 15% 15-25% 25-35% More than 35%

32%

8. What is your preference in Mutual Funds?

Preference in Mutual Funds
Equity ELSS Balanced SIP Income Others Money Market

17%

2%

19%

15% 9% 20%

18%

9.How much loss are you willing to take?

Loss Willing To Take
60% 50% 40% Percentage 30% 20% 10% 0% Less than 5% 5-10% Category More Than 10% 12% 35% 53%

10. Which type of Mutual funds do you prefer?

Type of Schemes

44% 56%

Closed Ended Funds

Open Ended Funds

11.Do you get influenced by the name of Company promoting Mutual Funds?
60% 50% 40% 30% 20% 10% 0% 56%

23%

21%

12.Do you get influenced by the returns given by a fund or by the current NAV of a fund?
60% 50% 40% 30% 23% 20% 10% 0% BY NAV RETURNS Both 21% 56%

FINDINGS and conclusion

48% respondents reflected confidence and optimism in the context of their investments. Mutual Funds are more of an investment option than the speculative avenue. Income funds and ELSS are among the few top funds People are not willing to take much risk and bear loss. Brokers advice matters to as much as 32% of the people.

Limitations Faced
Some people were not willing to disclose the investment profile.
The biasedness 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

RECOMMENDATIONS
First Aid Kit for New Entrant into Securities Market Provision for Class Room training for the new investors Toll Free Number Customer Care for general query handle More Appointments of Relationship managers

SAMPLE QUESTIONNAIRE
Name: ..... Phone: ..... Occupation: Investment Presently Held: Please list the value of the assets in your total investments portfolio :( in Rs.) Stocks: ______ Mutual Funds: _______ Bonds: ______ Bullion: _______ Options: ______ Govt. Securities:_______ Real Estate: ______ Bank Deposits: _______ (1) Over the next 3-5 years, do you expect your annual income to change? Increase Decrease Remain the same (2) Do you invest in Mutual Funds? Yes Earlier, now stopped No

(3) What is your Experience in the market? Less than a year 1-4 years

More than 4 years

(4) What is your Trading Preference? Speculation Investment Both (5) What is your Average investment period? Less than 3 months. 3 to 9 months. 9 months to 2 year. More than 2 year. (6) Factors influencing the investment decisions? Advice from Broker Current news Reviews in Financial Magazines Advice from Friends Self Evaluation Others___________ (7) How much Risk are you willing to take? High Low Moderate (8) What is your preference in Mutual Funds? A. Equity. B. Income C. Money Market Funds D. ELSS E. Balanced Funds F. SIP G. Others

(9) How much Appreciation do you expect from your Investments? up to 15% 15%-25% 25%-35% more than 35% (10) How much loss are you willing to take? High Moderate Low (11) Which type of Mutual funds do you prefer? Open Ended Schemes Closed Ended Schemes (12) Do you get influenced by the name of Company promoting Mutual Funds? No Yes (13) Do you get influenced by the returns given by a fund or by the current NAV of a fund? By NAV By Returns Both

Thanks for your co-operation