Fundsroom

FINAL PROJECT REPORT

SUMMER INTERNSHIP PROJECT REPORT

ON
FINANCIAL ANALYSTS
IN
FUNDSROOM INVESTMENT SERVICES

SUBMITTED IN PARTIAL FULFILLMENT TOWARDS THE AWARD

OF POST GRADUATE DEPLOMA IN MANAGEMENT (2021-23)

SUBMITTED BY:
TEJAS DIWAKAR MOHATKAR
ROLL NO: 19
MET (PGDM)

MET Institute Of PGDM

Page No. 1
 Fundsroom
Bandra, Mumbai
MAY – JUNE 2022

Student’s Declaration

I hereby declare that this report, submitted in partial fulfilment of the requirement for
the award for the PGDM, to MET Institute Of PGDM is my original work and not used
anywhere for award of any degree or diploma or fellowship or for similar titles or prizes.

Place : Mumbai

Date : 17/6/2022

Name: Tejas Mohatkar

Class: PGDM

Roll No: 19

--------------------------------------
Signature

Page No. 2
 Fundsroom
ACKNOWLEDGEMENT

I wish to express my gratitude to Fundsroom Investment Services for giving

me an opportunity to be a part of their esteemed organization and enhance
my knowledge by granting permission for summer internship under their
guidance.

I am deeply indebted to my guide, Masroor Khan Sir, Cofounder and Rajesh

Kadam Sir, Team Head for the valuable and enlightened guidance. They
provided me with an opportunity to learn and spared their valuable time to
help me.

A special thanks to my faculty guide, Dr. Nisha Tatkar for being the chief
facilitator of this project and helped me enhance my knowledge.

This project has been possible due to the significant support of the
Infrastructure department. I would like to thank each one of the employees
them all for all their assistance.

PREFACE

Page No. 3
 Fundsroom
“Give a man a fish, he will eat it.

Train a man to fish, he will feed his family”

The above saying highlights the importance of practical knowledge. Practical

training is an important part of the theoretical studies. It ia of an immense
importance in the field of management. It offers the student to explore the
valuable treasure of experience and an exposure to real work culture
followed by the industries and thereby helping the students to bridge gap
between the theories explained in the books and their practical
implementation. Research project plays an important role in future building
of an individual so that he/she can better understand the real world in which
he has to work in future. The theory greatly enhances knowledge and provide
opportunities to blend theoretical with the practical knowledge.

I have completed the project report on Equity Research and Portfolio

Management at Fundsroom Investment Services. I have tried to cover each
and every aspect related to the topic with best of my capability.

I hope research would help many people in the future.

INDEX

Page No. 4
 Fundsroom
Student Information .....................................................................

Organization Description ...............................................................

(Concept, Industry Type, Name Address)
Objective of the project .................................................................

Background ...................................................................................

Research Problem .........................................................................

Literature Review .........................................................................

Hypotheses ..................................................................................

Methodology used .......................................................................

Findings & Conclusion ..................................................................

Recommendations .......................................................................

Limitations of Research ................................................................

Reference .....................................................................................

Page No. 5
 Fundsroom

STUDENT
INFORMATION

STUDENT INFORMATION

Page No. 6
 Fundsroom

Name: Tejas Diwakar Mohatkar

Course: Post Graduate Diploma in Management

Institute Name: MET Institute of PGDM

Date of Birth: 12th October, 1999

Phone Number: 9552069771

Email: [email protected]

Page No. 7
 Fundsroom

ORGANIZATION
DESCRIPTION

ORGANIZATION DESCRIPTION

Funds Room is growing automated platform for mutual fund investing. It

enables investor to choose best funds from across the fund universe.

Page No. 8
 Fundsroom
It chooses best of the funds from Top Equity Fund, Top Debt Fund, Top Tax
Saving Fund, Top Balanced Fund, Top Debt Fund & Top Liquid Funds. It allows
investor to invest in completely paperless manner in both Lump sum & Funds
Room investment.

Funds Room provides highest of the security so that investor can focus on his
investments. Funds Room offers many benefits some of which are like as –

 Fundsroom is Completely digital platform

 Fundsroom provides Customized portfolio for every investor.
 No requirement to have DEMAT account
 No Fees, No Charges.

Fundsroom robust technology platform backed by latest of technological

tools and application of data analytics at various stages of investment like
defining the goal, risk profiling, fund recommendation and portfolio re-
balancing makes the entire process seamless, effective & result oriented.

Fundsroom understand there are numerous choices for you to select your
investment platform. But what really differentiates is the plethora of options
we bring for you. So be it tie-up with all the funds houses in India or end to
end digitised process, we bring everything for you so that you always remain
in ahead in the world of investment.

Page No. 9
 Fundsroom
Vision: Fundsroom assign goal to each investment and draw a plan to achieve
that goal in a systematic way. It is not the investment product but a goal that
is invested in. Fundsroom robust technology platform backed by latest of
technological tools and application of data analytics at various stages of
investment like defining the goal, risk profiling, fund recommendation and
portfolio re-balancing makes the entire process seamless, effective & result
oriented.

Mission: Fundsroom is an online investment platform which brings various

investment asset classes under one umbrella. The asset classes include but
not limited to Mutual Funds, Digital Gold, Real Estate, Insurance etc.

Page No. 10
 Fundsroom

INDUSTRY
PROFILE

INDUSTRY PROFILE

HISTORY OF MUTUAL FUNDS:

Prof K Geert Rouwenhorst in 'The Origins of Mutual Funds', states that the
origin of pooled investing concept dates back to the late 1700s in Europe,
when "a Dutch merchant and broker invited subscriptions from investors to

Page No. 11
 Fundsroom
form a trust to provide an opportunity to diversify forsmall investors with
limited means." The emergence of "investment pooling" in England in
the1800s brought the concept closer to the US shores.
The enactment of two British laws, the Joint Stock Companies Acts of 1862
and 1867, permitted investors to share in the profits of an investment
enterprise and limited investor liability to the amount of investment capital
devoted to the enterprise. Shortly thereafter, in 1868, the Foreign and
Colonial Government Trust was formed in London.
It resembled the US fund model in basic structure, providing "the investor of
moderate means the same advantages as the large capitalists by spreading
the investment over a number of different stocks." More importantly, the
British fund model established a direct link with the US securities markets,
helping finance the development of the post-Civil War US economy.
The Scottish American Investment Trust, formed in February 1873, by fund
pioneer Robert Fleming, invested in the economic potential of the US, chiefly
through American railroad bonds. Many other trusts followed them, who not
only targeted investment in America, but led to the introduction of the fund
investing concept on the US shores in the late 1800s and the early1900s. The
first mutual or 'open-ended' fund was introduced in Boston in March 1924.
The Massachusetts Investors Trust, which was formed as a common law trust,
introduced important innovations to the investment company concept by
establishing a simplified capital structure, continuous offering of shares, and
the ability to redeem shares rather than holding them until dissolution of the
fund and a set of clear investment restrictions as well as policies.
The stock market crash of 1929 and the Great Depression that followed
greatly hampered the growth of pooled investments until a succession of
landmark securities laws, beginning with the Securities Act, 1933 and
concluded with the Investment Company Act, 1940, reinvigorated investor

Page No. 12
 Fundsroom
confidence. Renewed investor confidence and many innovations led to
relatively steady growth in industry assets and number of accounts.

CONCEPT OF MUTUAL FUND:

As defined by the Association of Mutual Funds in India (AMFI), an apex body
of all registered asset management companies, “Mutual Fund is a trust that
pools the savings of a number of investors who share a common financial
goal. Anybody with an investible surplus of as little as a few thousand rupees
can invest in mutual fund units according to their stated investment objective
and strategy.” According to Securities and Exchange Board of India
(SEBI)Regulations 1996, “Mutual Fund means a fund established in the form
of a trust to raise monies through the sale of its units to the public or a
section of the public under one or more schemes for investing in securities,
including money market instruments.” As defined by the mutual Fund Book
of Investment Company Institute of the U.S., “A mutual fund is a financial
service organization that receives money from shareholders, invests it, earns
returns on it, attempts to make it grow and agrees to pay the shareholder for
the current value of his investment.”
Mutual fund is a special type of institution that acts as an investment
conduit. It is a professionally managed investment organisation that pools the
money of many individual investors having similar investment objectives. The
money thus collected is invested by the fund manager in different types of
securities as shares, debentures, money market instrument sand so on,
depending upon the objective of the scheme. Income earned and capital
appreciations thus realised by the schemes are shared by its unit holders in
proportion to the number of units owned by them. Therefore, mutual fund is
an investment institution, which assembles the savings of individuals and
institutions and conduit these savings in corporate securities. Thus, it endows

Page No. 13
 Fundsroom
the individual investors, with an opportunity to invest in a diversified,
professionally managed portfolio at a relatively low cost.
Mutual funds mobilise savings, particularly from the small and household
sectors, for investment in capital and money market. Basically, these
institutions professionally manage the funds of individuals and institutions
that may not have such high degree of expertise and sufficient time to deal
with the complexities of different investment avenues, legal provisions
associated and impulse and vicissitude of financial markets.

TYPES OF MUTUAL FUNDS

A wide variety of mutual fund schemes exist according to their investment
style that helps in meeting the financial goal of the investors. These are
grouped into three broad categories i.e. Their operations, investment
objective and others.

 CLASSIFICATION BY OPERATIONS
On the basis of operations of mutual funds schemes, they have been
classified into open-ended, close-ended and interval funds. These have been
discussed below in detail.

1. OPEN-ENDED FUNDS
An open-ended fund offers its units to the investors for sale and repurchase
at all the times at a price based on the net asset value (NAV) per unit. AMFI
booklet has described NAV as the market value of the asset of the scheme
minus its liabilities. It’s per unit value is obtained by dividing the amount of
the market value of the fund’s assets (plus accrued income minus fund’s

Page No. 14
 Fundsroom
liabilities) by the number of units outstanding. Thus, the holders of the units
in such funds can buy or redeem units from the fund itself at any time. The
corpus of these funds changes constantly as investors buy from or sell their
units to the fund. Both the value and number of units fluctuate on a daily
basis as the value of the securities and the number of investors change. The
securities in the portfolio are valued at the end of each day. The value is then
divided by number of units in the fund to arrive at a price per unit i.e. their
net asset value. The advantages of this open-ended structure are numerous
as these funds are liquid, convenient, and easy to buy and sell for the
investors. Axis Triple Advantage Fund, Birla Sun Life Basic Industries Fund,
IDBI India Top 100 Equity Fund, L&T Contra Fund, Taurus Tax Shield,
Templeton Floating Rate Income Fund, UTI - G-Sec Fund are some of the open
ended mutual funds.

2. CLOSE-ENDED FUNDS
Close-ended funds offer a fixed number of units for a fixed period of
subscription to the investors as declared in their initial public offer (IPO).
After subscription period is over, these funds do not allow investors to buy or
redeem units directly from the fund house. However many close-ended funds
get themselves listed on stock exchange(s) and enable investors to buy or sell
units of these schemes in the same fashion as for the shares of a company.
The fund’s units may be traded above the NAV, called ‘selling at a premium’,
or below, called ‘selling at a discount’.
The trading price depends upon a variety of things, as supply and demand
and the market’s perception of the fund’s prospects, much like the price of a
stock. Some close-ended funds provide an exit route to the investors by
giving an option of selling back the units to the mutual fund through periodic
repurchase at NAV related prices. SEBI Regulations stipulate that at leastone
of the two exit routes are provided to the investor i.e. either through listing

Page No. 15
 Fundsroom
on stock exchanges or repurchase facility. These mutual funds schemes
disclose NAV generally on weekly basis. Canara Robeco Equity Tax Saver-93,
DSP Merrill Lynch Tax Saver Fund, Tata Life Sciences and Technology Fund, JM
Arbitrage Advantage Fund, Kotak Gold ETF are some of the close ended funds
in India.

CLASSIFICATION BY INVESTMENT OBJECTIVES

In this category, funds differ significantly with one another with respect to
their objectives and the type of securities, comprising their portfolio.
Therefore, these funds cater to the risk and return profile of different type of
investors. The following are the portfolio classification of these funds:

1. GROWTH FUND
The objective of a growth fund is to achieve capital appreciation over
medium to long term. These schemes normally invest a majority of their
funds in equities and are willing to bear short-term decline in value for
possible future appreciation. Around 80-90 percent of corpus of these funds
is invested in equity and equity linked instruments and the balance in debt
and money market securities. These schemes are not for investors seeking
regular income or needing their money back in the short term but are
suitable for long term investors seeking capital appreciation and ready to
bear a medium to high level of risk. These are also known as “nest eggs” or
“long haul” investments. BNP PARIBAS Equity Fund, Canara Robeco emerging.

2. BALANCED FUNDS
The aim of the balanced funds is to provide both capital appreciation and
periodic returns over long period of time. These funds have reasonable mix

Page No. 16
 Fundsroom
of equity and bond in their portfolio by investing both in shares and fixed
income securities in the proportion as indicated in their offer documents.
Normally a balanced fund invests 60 percent out of its net assets in equity
and 40 percent infixed income securities, money market instruments and
cash. Their risk profile is medium to high. These are also called “income–
cum –growth” funds and are ideal for investors seeking for a combination of
regular income and moderate growth. HDFC Balanced Fund, UT Balanced
Fund, Tata Balanced Funds are some of the examples of these funds in India.

3. INCOME FUND
Income funds provide regular and steady income to its investors. These funds
generally invests in fixed income securities such as government securities,
bonds, corporate debentures, money market instruments, cash and cash
equivalent while at the same time maintains a small exposure to the equity
markets. Such funds are less risky as compared to equity schemes as they are
not affected by the fluctuations in equity markets. Risk profile of income
funds is generally from low to medium however, opportunities of capital
appreciation are also limited.

 CLASSIFICATION BASED ON ASSETS INVESTED IN :

There three kinds of mutual funds based on the assets invested in. These
are as follows:

1. EQUITY FUNDS:
These are funds that invest only in stocks. As a result, they are usually
considered high risk, high return funds. Most growth funds the ones that
promise high returns over along-term –are equity funds. These funds have

Page No. 17
 Fundsroom
less tax liability in the long-run as Compared to debt funds. Equity funds
can be further classified into types based on the investment objective into
index funds, sector funds, tax-saving schemes and so on.

2. DEBT FUNDS:
These funds invest in debt-market instruments like bonds, government
securities, debentures and so on. These are called debt instruments
because they are a kind of borrowing mechanism for companies, banks as
well as the government. Simply put, you give them money, which the
company returns with interest over a period of time. After which, it
matures. Since the interest payments are fixed as well as the return of the
principle amount, debt instruments are considered low-risk, low-return
financial assets.

3. HYBRID FUNDS:
These are funds which invest in both equities as well as debt instruments.
For this reason, they are less risky than equity funds, but more than debt
funds. Similarly, they are likely to give you higher returns than debt funds,
but lower than equity funds. As a result, they are often called ‘balanced
funds’.

 CLASSIFICATION BASED ON SPECIALITY FUNDS:

There are some other types of mutual funds also apart from the above
stated classification. These have been discussed below in detail.

1. INDEX FUNDS:

Page No. 18
 Fundsroom
The objective of index funds is to generate capital commensurate with the
index it tracks. This is done by investing in all the stocks comprising the
index in approximately the same weightage that they represent in the
specific index. Goldman Sachs Nifty BeES 1, HDFC Index Fund - Sensex Plus
Plan, IDFC Nifty Fund.

2. SECTOR FUNDS
These are a kind of equity scheme restrict their investing to one or more
pre-defined sectors like technology sector. Since they depend upon the
performance of select sectors only, these schemes are inherently more
risky than general schemes. They are best suited for informed investors,
who wish to bet on a single sector.

3. REGIONAL FUNDS
A regional fund is a mutual fund run by managers who invest in securities
from a specified geographical area, such as Latin America, Europe or Asia.
A regional mutual fund typically owns a diversified portfolio of companies
based in and operating out of its specified geographical area.

4. TAX SAVING FUNDS

Investors are now encouraged to invest in the equity markets through
the Equity Linked Savings Scheme (ELSS) by offering them a tax rebate.
When you invest in such schemes, your total taxable income falls.
However, there is a limit of Rs 1 lakh for tax purposes. The crutch is that
the units purchased cannot be redeemed, sold or transferred for a
period of three years.

Page No. 19
 Fundsroom

WHY INVEST IN MUTUAL FUNDS?

1. Professional management:
Whenever you invest in mutual funds, your money is managed by financial
experts. Investors having no time or skill for managing their portfolios, should
invest in mutual funds. You gain from the expertise of professional managers
which otherwise would have been expensive for anindividual investor.
2. Diversification:
Mutual funds extend benefits of diversification across several business
sectors and companies. They spread the investments across various asset
classes and industries. Thus, you benefit from asset allocation and
diversification, without investing a large sum of money required to build an
individual portfolio.
3. Liquidity:
Most mutual funds are liquid investments. Except the lock-in ones, you can
withdraw your money at your own will, subject to the exit load. Funds usually
take 2-3 working days to release your money. They are well integrated with
the banking system and the money is transferred directly into your bank
account.
4. Flexibility:
Investors benefit from the flexibility and convenience offered by mutual
funds from investing in an array of schemes. They offer systematic
investments and withdrawals to investors in most of the open-ended
schemes. You can invest or withdraw funds according to your convenience.
5. Low transaction cost:

Page No. 20
 Fundsroom
Because of the economies of scale, mutual funds incur lower transaction
costs and the benefits are passed on to the investors. An individual is unlikely
to enjoy the transaction cost benefit by entering the market directly.
6. Well regulated:
In India, all mutual funds are monitored and regulated the Securities and
Exchange Board of India (SEBI). It protects investor interests. All mutual funds
have to be registered with SEBI to ensure full transparency. A fund must
provide exhaustive information about its investments and the quantity of
money invested in each asset class.

Risks involved
Since mutual funds invest across various asset classes, each scheme has
different risks depending on the portfolio. Value of investments may decline
because of economic downturns or other events that affect the market. Also,
the government may introduce new regulations that may affect a particular
industry or a class of industries. These factors influence mutual fund
performance. While diversification can help ease risks by offsetting the
losses, at the same time, it could limit the upside potential provided by
holding a single security.

Page No. 21
 Fundsroom

OBJECTIVE OF
THE PROJECT
Page No. 22
 Fundsroom

OBJECTIVE OF THE PROJECT

Need for the study:

The main purpose of doing this project was to know about mutual fund and
its functioning. This helps to know in detail about mutual fund industry from
its inception stage, growth and future prospects.

OBJECTIVES:
 To get insight knowledge about mutual fund investor.
 To know the awareness of mutual fund among different group of
investors.
 An attempt has been made to measure variousvariable’s playing in the
minds of investors in terms of safety, liquidity, returns, services, tax
savings.
 To give a brief idea about the benefits available from mutual fund
investment

Page No. 23
 Fundsroom

Creating Financial reports [portfolio analysis], Risk analysis, Investment

analysis, audits for given investment asset classes as per client risk appetite,
Creating portfolio research reports on various investment sectors.

Then, utilize skills required to prepare pitch deck reports and data analytical
reports using business intelligence software such as [Power BI, Tableau].

Assigned to solve business case study based on Investment scenarios were

provided as per given scenarios where I required to analysis stock growth
position in near future.

DEMAT Account openings of clients on Edelweiss service provider and help

them in trading and investment in the stock market.

Analysing the stocks of various sectors in two methods to get a detailed

Knowledge regarding company and its stocks. The first method is to do a
fundamental Analysis which is based on both quantitative and qualitative
attributes.

Quantitative attributes where with help of Balance Sheet, Cash Flow, Profit
and loss A/c and different ratios attributes profit Earning Ratio, EPS, DPS,
ROE, GP , NP, Debt to Equity etc. While, Qualitative Attributes where by
taking into consideration the people associate with company, Shareholder
Right and Business ethics, etc.

Page No. 24
 Fundsroom
Fundamental analysis provides better understanding of Companies financial
position in stock market. Second method is technical analysis where it is a
form of investment valuation that analyses past prices to predict future price
action with use of different candles, charts for taking investment decision.

BACKGROUND

Page No. 25
 Fundsroom

BACKGROUND

I have been assigned to create financial analysis reports, Audits, and research
reports on various investment sectors. Research on various sectors in the
stock market where we are provided with sectors such as I.T, Power, Finance
and I required to do research on behaviour of the sector, Risk appetite and
trends in sector etc.

Then analysing and study of the specific stocks in detail regarding their Past 3
months and 6 months growth performance, Market capitalization and total
value, as well as future 3 months and 6 months growth prediction.

This is to be done on regular interval to understand the type of stock [i.e.

risky, stable, moderate] also need to take into consideration the news
associated with it these stocks etc.

Then, after analysing the stocks from different sector with use of
Fundamental and Technical analysis we need to create and manage a

Page No. 26
 Fundsroom
portfolio of Rs 50000 where we have to create the portfolio according to the
risk appetite of the client, we need to give proper fundamental and technical
analysis of the preferred sectors and the companies client wish to invest in
that sector.

Here, I need to make client aware with the details of each companies stock its
past annual and quarterly reports also future predictions price of stocks, its
trends and weather it will be profitable or not after investing on it.

Afterwards I required to utilize skills and prepare pitch deck reports and data
analytical reports using business intelligence software such as [Power BI,
Tableau, and Click view]. Also I have been assigned to solve business case
study based on Investment scenarios were provided by team head.

As per given scenarios I required to research on Business Model, Revenue

Model, Workforce Model, Strategies of company mentioned in case let. On
basis of these parameters I required to analysis stock growth position in near
future.

During module 1 of this project I had been assigned to prepare research

report on India biggest IPO of the year, LIC IPO where I need to research on
subscription status of IPO, listing gain expected from IPO, grey market
premium, cost price of shares in IPO for various categories.

Page No. 27
 Fundsroom
Based on research I required to suggest my clients whether to invest or not to
invest in LIC IPO. Then I have to build awareness among my friends, families
regarding benefits of Investment on stock market.

Those who Don’t have their DEMAT account at past with any stock broker
hence help them in opening their DEMAT accounts on Edelweiss and then,
teach them the basics of investment, how to invest in the stock market and
suggest them stocks which has high potential to grow in near future.

Afterwards, I required to create fundamental analysis based on both

quantitative and qualitative attributes and technical
reports reviews of different candles, charts for taking investment decision on
stocks from various sectors and get to learn about the portfolio management
services.

Page No. 28
 Fundsroom

Research
Problem

Page No. 29
 Fundsroom

RESEARCH PROBLEM

Research problem: To know investor’s behaviour regarding mutual fund as an

investment avenue.

Research objectives (primary): To know investor’s behaviour regarding

mutual fund as an investment avenue.

Research objectives (secondary):

 To identify the objectives of the investors for investing in a mutual fund
 To identify the investment pattern of the investors.
 To find out which scheme is better according to investors

Research plan:
Data source:
We have used primary source to collect the data regarding investors’
awareness about the mutual fund as an investment avenue
Research instrument:
Questionnaire was the instrument of collecting data.

Page No. 30
 Fundsroom

Literature
Review

Page No. 31
 Fundsroom

LITERATURE REVIEW

Mutual funds attracted the interests of academicians, researchers and

financial analysts mostly since 1986. A number of articles have been
published in financial dailies like economic times, business line and financial
express, periodicals like capital market, Business India etc., and in
professional and research journals. Literature Review on performance
evaluation of mutual fund is enormous. Various studies have been carried out
in India and abroad to evaluate the performance of mutual funds schemes
from time to time. A few research studies that have influenced substantially
in preparing the thesis are discussed below in this chapter.

Review of Literature

Jack Treynor (1965): developed a methodology for performance evaluation

of mutual fund that is referred to as reward to volatility measure, which is
defined as average excess return on the portfolio. This is followed by Sharpe
(1966) reward to variability measure, which is average excess return on the
portfolio divided by the standard deviation of the portfolio.

Sharpe (1966): developed a composite measure of performance evaluation

and imported superior performance of 11 funds out of 34 during the period
1944-63.

Page No. 32
 Fundsroom

Michael C. Jensen (1967): conducted an empirical study of mutual funds in

the period of 1954-64 for 115 mutual funds. The results indicate that these
funds are not able to predict security prices well enough to outperform a buy
the market and hold policy. The study ignored the gross management
expenses to be free. There was very little evidence that any individual fund
was able to do significantly better than which investors expected from mere
random chance.

Jensen (1968): developed a classic study; an absolute measure of

performance based upon the Capital Asset Pricing Model and reported that
mutual funds did not appear to achieve abnormal performance when
transaction costs were taken into account results using annual data for 82
common stock funds over the 1948-67 periods. The results contradicted both
Sharpe and Jensen measures.

Fama (1972): developed a methodology for evaluating investment

performance of managed portfolios and suggested that the overall
performance could be broken down into several components.

John McDonald (1974): examined the relationship between the stated fund
objectives and their risks and return attributes. The study concludes that, on
an average the fund managers appeared to keep their portfolios within the
stated risk. Some funds in the lower risk group possessed higher risk than
funds in the most risky group.

Page No. 33
 Fundsroom
James R.F. Guy (1978): evaluated the risk-adjusted performance of UK
investment trusts through the application of Sharpe and Jensen measures.
The study concludes that no trust had exhibited superior performance
compared to the London Stock Exchange Index.

Henriksson (1984): reported that mutual fund managers were not ableto
follow an investment strategy that successfully times the return on the
market portfolio. Again Henriksson(1984) conclude there is strong evidence
that the funds market risk exposures change in response to the market
indicated. But the fund managers were not successful in timing the market.

Grinblatt and Titman (1989): concludes that some mutual funds consistently
realize abnormal returns by systematically picking stocks that realize positive
excess returns.

Richard A. Ippolito (1989): concluded that mutual funds on an aggregate

offer superior returns. But expenses and load charges offset them. This
characterizes the efficient market hypothesis.

Ariff and Johnson (1990): made an important study in Singapore and found
that the performance of Singapore unit trusts spread around the market
performance with approximately half of the funds performing below the
market and another half performing above the market ona risk-adjusted
basis.

Page No. 34
 Fundsroom
Cole and IP (1993): investigated the performance of Australian equity trusts.
The study found evidence that portfolio managers were unable to earn
overall positive excess risk-adjusted returns.

S Prassanna & S Kumar (2014): mention that the general knowledge &
awareness level among individual investors are so good. Mutual funds are
concerning the maximum attention of the investors in the scenario be it
individual or corporate agent.

Page No. 35
 Fundsroom

Research
Methodology

RESEARCH METHODOLOGY

Page No. 36
 Fundsroom

WHAT IS RESEARCH?
Research comprises "creative work undertaken on a systematic basis in order
to increase the stock of knowledge, including knowledge of man, culture and
society, and the useof this stock of knowledge to devise new applications. It is
used to establish or confirm facts, reaffirm the results of previous work, solve
new or existing problems, support theorems, or develop new theories.

TYPES OF RESEARCH METHODS: The goal of the research process is to

produce new knowledge or deepen understanding of a topic or issue. This
process takes three main forms (although, as previously discussed, the
boundaries between them may be obscure):
Exploratory research, which helps to identify and define a problem or
question.
Constructive research, which tests theories and proposes solutions to a
problem or question.
Empirical research, which tests the feasibility of a solution using empirical
evidence. The research room at the New York Public Library, an example of
secondary researching progress.
There are two major types of research design: qualitative research and
quantitative research. Researchers choose qualitative or quantitative
methods according to the nature of the research topic they want to
investigate and the research questions they aim to answer:
Maurice Hilleman is credited with saving more lives than any other scientist
of the 20thcentury.
Qualitative research

Page No. 37
 Fundsroom
Understanding of human behaviour and the reasons that govern such
behaviour. Asking broad question and collecting data in the form of words,
images, video etc that is analysed and searching for themes. This type of
research aims to investigate a question without attempting to quantifiably
measure variables or look to potential relationships between variables. It is
viewed as more restrictive in testing hypotheses because it can be expensive
and time consuming, and typically limited to a single set of research subjects.
[citation needed] Qualitative research is often used as a method of
exploratory research as a basis for later quantitative research hypotheses.
[citation needed]Qualitative research is linked with the philosophical and
theoretical stance of social constructionist.
Quantitative research:
Systematic empirical investigation of quantitative properties and phenomena
and their relationships. Asking a narrow question and collecting numerical
data to analyzeutilizing statistical methods. The quantitative research designs
are experimental, correlation, and survey. Statistics derived from quantitative
research can be used to establish the existence of associative or causal
relationships between variables. Quantitative research is linked with the
philosophical and theoretical stance of positivism. The Quantitative data
collection methods rely on random sampling and structured data collection
instruments that fit diverse experiences into predetermined response
categories. These methods produce results that are easy to summarize,
compare, and generalize.[citation needed] Quantitative research is concerned
with testing hypotheses derived from theory and/or being able to estimate
the size of a phenomenon of interest. Depending on the research question,
participants may be randomly assigned to different treatments (this is the
only way that a quantitative study can be considered a true experiment). If
this is not feasible, the researcher may collect data on participant and
situational characteristics in order to statistically control for their influence on
the dependent, or outcome, variable. If the intent is to generalize from the

Page No. 38
 Fundsroom
research participants to a larger population, the researcher will employ
probability sampling to select participants. In either qualitative or
quantitative research, the researchers may collect primary or secondary data.
Primary data is data collected specifically for the research, such as through
interviews or questionnaires. Secondary data is data that already exists, such
as census data, which can be re-used for the research. It is good ethical
research practice tousle secondary data wherever possible. Mixed-method
research, i.e. research that includes qualitative and quantitative elements,
using both primary and secondary data, is becoming more common.

TYPES OF DATA:
There are two different types of data that we use when we are carrying our
research projects. These two different types of data are called Primary and
Secondary data collection.
Primary data: Data collected by the investigator himself/ herself for a specific
purpose. Examples: Data collected by a student for his/her thesis or research
project.
Secondary data: Data collected by someone else for some other purpose (but
being utilised by the investigator for another purpose). Examples: Census
data being used to analyse the impact of education on career choice and
earning.
Some advantages of using primary data:
1. The investigator collects data specific to the problem under study.2.

2. There is no doubt about the quality of the data collected (for the
investigator).

Page No. 39
 Fundsroom
3. If required, it may be possible to obtain additional data during the study
period.

Some Disadvantages of using Primary data (for reluctant/ uninterested

investigators)
1. The investigator has to contend with all the hassles of data collection-
 deciding why, what, how, when to collect
 getting the data collected (personally or through others)
 getting funding and dealing with funding agencies
 ethical considerations (consent, permissions, etc.)

2. Ensuring the data collected is of a high standard-

 all desired data is obtained accurately, and in the format, it is required
in
 there is no fake/ cooked up data.
 unnecessary/ useless data has not been included.

3. Cost of obtaining the data is often the major expense in studies.

Some Advantages of using Secondary data:

1. The data’s already there - no hassles of data collection
2. It is less expensive
3. The investigator is not personally responsible for the quality of data (“I
didn’t do it”)

Some disadvantages of using Secondary data:

Page No. 40
 Fundsroom
1. The investigator cannot decide what is collected (if specific data about
something is required, for instance).
2. One can only hope that the data is of good quality
3. Obtaining additional data (or even clarification) about something is not
possible (most often).

Sampling plan:
Sampling unit: all the investors who are occasionally or regularly investing in
financial assets and non-financial assets.
Sample size: Survey population comprises of the total reputed businessman,
professionals, and individual investors was approx. 70
Sampling method: In this study as suggested by the company a sample of
reputed businessman, professionals, and individual investors was selected
and it was selected through non-probability, convenience sampling method.
Because all the business, professionals, and individual investors could not be
interviewed as per our requirement but according to their availability and
accessibility we meet them.

Page No. 41
 Fundsroom

Questionnaire

QUESTIONNAIRE

1. Which are the investment tools you invest in?

o Bank Fixed Deposits
o RBI Bonds
o Mutual Funds

Page No. 42
 Fundsroom
o Equities
o Others (please specify)2.

2. You primarily invest for (Rank 1-4 according to your preference)

Returns
Liquidity
Savings
 Tax benefit3.

3. What is the frequency of your investments?

o Once a month
o Once in 6month
o Once a Year4.

4. Do you invest in Mutual Funds?

YES
NO

5. If yes, are you aware of various scheme offered by Mutual Funds?

o Yes
o No
o Few(a)

Page No. 43
 Fundsroom
6. Which type of Mutual Fund you invest in?
o Debt
o Equity

7. On whose external advice do you invest?

o Bank
o Distributor
o Agents

8. Balanced(b) Do you know that you can get tax advantage by investing in
Mutual Funds?
o Yes
o No
o Not sure

Page No. 44
 Fundsroom

DATA ANALYSIS AND

INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

QUESTIONNAIRE ANALYSIS
1. Occupation:

INTERPRETATION:

Page No. 45
 Fundsroom
44% Of The Respondents Were From business class
5% of the respondents were students
28% Of The Respondents Were From Service class
6% of the respondents were housewives
17% Of The Respondents Were professionals.

2. Which are the investment tools you invest in?

INTERPRETATION:
As per the above diagram 21 out of 70 respondents are investing in bank
fixed deposits, 3 are investing in RBI or government bonds.
Majority of them are investing in mutual funds as they consider it as a safer
tool to save money for future. Only 15% of them are investing in equities as
equities mostly give long term gains ranging from 7-12 years.

3. What is the frequency of your investment?

INTERPRETATION:
The above data represents that majority of investors who invest once in a
month are professionals such as lawyers, doctors, teachers etc
The data shows above explains that majorly business class prefer to invest in
once in six months as they less prefer to have more number of transaction
that’s they invest in this way. Lump sum amount is being paid by them.

Page No. 46
 Fundsroom
The data shows above explains that majorly business class prefer to invest in
once a year also service class people who are normally paid higher than
normal are covered here. Lump sum amount is being paid by them.
The above figure shows that out of 70 respondents 65% (approx..45 out of
70) of them were investing in mutual funds. While 35% (approx..25 out of 70)
of them were not investing in mutual funds.

4. Do you invest in mutual funds?

INTERPRETATION:

The above figure shows that out of 70 respondents 65% (approx..45 out of
70) of them were investing in mutual funds. While 35% (approx..25 out of 70)
of them were not investing in mutual funds.

5. If yes, are you aware of various scheme offered by Mutual Funds?

INTERPRETATION:
The above graph displays that not all respondents were aware about the
various scheme sin which they were investing their amount out of 70
respondents 27 of them were aware about the schemes. 12 of them were
have having some knowledge about the schemes while 6 of them of they
simply invested their amount without having any kind of understanding of
the schemes.

6. Which type of mutual fund you invest in?

Page No. 47
 Fundsroom

INTERPRETATION:
There are majorly three types of mutual funds based upon the returns
and risk factor. Equity type of mutual funds contains high risk so
accordingly have high returns as compared to debt and balanced fund. The
above level shows that the risk-taking capacity changes as per the
occupation of an individual. The above diagram shows that business class
consider highest level of holding in equities after that they consider debt
and then in balanced fund. In the same way professionals consider to
invest less in balanced ,service class consider to invest more inequity,
students prefers to invest more in balanced and housewives also consider
to invest more in balanced funds.

7. On whose external advice do you invest?

INTERPRETATION:
The figure shown above displays that 28 people (40%) take external advice
from bank, 21 people (30%) take advice from distributors among 7 of them
(10%) take advice from direct investors, 10 people(14.28% believes that
agents can give better investment advice and remaining 4 of them (5.72%)
think that C.A. will suggest them in a proper way.

8. Do you know that you can get tax advantage by investing in Mutual
Funds?

INTERPRETATION:

Page No. 48
 Fundsroom
The above figure explains that 42 60% of the respondents (42 people out of
70people) know that by investing in mutual funds they are getting tax
advantage and 18.57% of the respondents(13 people out of 70 people) have
no idea about tax benefit and 21.43% of the respondents(15 people out of 70
people) were not sure about the tax advantage.

Page No. 49
 Fundsroom

FINDINGS

FINDINGS

 The investors in Mumbai are having potential to invest in mutual fund

they only need proper guidance and information about mutual fund.

 Around 50% of the investors invest to maximize their returns and they
are ready to take moderate risks in their investment portfolio.

Page No. 50
 Fundsroom
 Most of the investors give importance to the fact that their investment
should grow over a period of time.

 Knowledge about mutual funds and their various scheme is moderate

among investors. Most of the investors give importance to return, tax
saving etc.

 Objectives of the investors are to get something in return for their

investment and the risk they are taking.

 Here the objective of the investor between the age 20-35 is to earn the
higher return. While the age group above 40 years concentrates on
safety and tax saving and they even take care of the liquidity.

Page No. 51
 Fundsroom

SUGGESTIONS &
CONCLUSIONS

SUGGESTIONS & CONCLUSIONS

 Mutual fund companies should try to educate the investors to invest in

mutual funds through regular awareness program.

Page No. 52
 Fundsroom
 Mutual fund agencies should spread the information about all the
aspects of investing in mutual funds.

 Make investors aware about the benefits of investing mutual fund with
their investment objective.

 Retail participation in mutual funds is very low. It is therefore, required

to increase the reach by offering solutions to the investors based on
their needs

 To create portfolio of clients according to their risk appetite and

Expected returns within certain time frame.

 To Create Help plan, design business processes and make

recommendations and Improvements as required.

 Creating investment reports based on Fundamental and technical

analysis and Analysing quantitative data using different Business
Intelligence .

Page No. 53
 Fundsroom

Limitations of
the study

Limitations of the study

Every research has its own limitation and present research work is no
exception to this general rule the inherent limitations of the study are as
under:

Page No. 54
 Fundsroom
Questionnaire method can be used only when respondents are literate and
co-operative.
 Sampling size was 50 that are not enough to study the awareness of
independent individuals.

 Though I tried to collect some primary data but they were too
inadequate for the purposes of the study.

 As sampling technique is convenient sampling so it may result in

personal bias. Every respondent gives bias answer.

 Time is the main constraint of the research as we have been given

project as a well as study simultaneously.

 Research limited for city only.

Page No. 55
 Fundsroom

REFERENCES

REFERENCES

BOOKS:
 Kumar, S., & Kumar, S. (n.d).’Awareness and knowledge of mutual fund
among the investors with reference to Chennai”2(4), 4-4.doi:2014
 Desai, D., & Joshi, M. (n.d).” A Study about Awareness of Mutual Funds
among the Investors of Navsari District.”3(1), 1-13.doi: January 2013

Page No. 56
 Fundsroom
 Singh, and Vanita (n.d).” Mutual fund investors’ perceptions and
preferences – a survey.”3(1),

SITES:
https://www.moneycontrol.com
https://m.economictimes.com/
https://www.livemint.com/amp
https://finance.yahoo.com/
https://www.capitalmarket.com
https://www.screener.in/

Page No. 57