SUMMER INTERNSHIP PROJECT

REPORT

Name: Suryakant Ojha

URN: 2352112
Section: A
Batch: MBA (2023-25)

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 INDEX

S. No. TOPIC Page No.

1 Acknowledgement 3
2 Preface 4

3 Organisation Description 5

4 Industry Profile 7

5 Objective of the project 17

6 Background 19

7 Research Problem 21

8 Literature Review 22

9 Research Methodology 26

10 Questionnaire 31

11 Data Analysis and Interpretation 33

12 Findings 37

13 Suggestions & Conclusions 38

13 Limitation of Study 40

14 Reference 41
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 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, Avinash Kagdi Sir 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, Sir Ajay Rathore 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.

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 PREFACE
“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.

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 ORGANIZATION DESCRIPTION
Funds Room is growing automated platform for mutual fund investing. It enables
investor to choose best funds from across the fund universe.
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

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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.

▪ 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

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 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
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.
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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 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 the individual investors, with an
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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
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
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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
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

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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

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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

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 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:

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 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.

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▪ 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.

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 5. Low transaction cost:

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.

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 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

✓ 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.

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 ✓ 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.

✓ 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.

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 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
✓ 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.

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 ✓ 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
nearfuture.

✓ 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.

✓ 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

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 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.

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 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 period1944-63.

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 ✓ 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 bothSharpe 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

fundobjectives and their risks and return attributes. The study concludes
that, onan 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.

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 ✓ 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
evidencethat 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 positiveexcess 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.

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 ✓ 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.

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 RESEARCH METHODOLOGY

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
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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

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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. 28
 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”)

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 Some disadvantages of using Secondary data:

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. 30
 QUESTIONNAIRE

1. Which are the investment tools you invest in?

o Bank Fixed Deposits
o RBI Bonds
o Mutual Funds
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

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5. If yes, are you aware of various scheme offered by Mutual Funds?
o Yes
o No
o Few(a)

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

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 DATA ANALYSIS AND INTERPRETATION
QUESTIONNAIRE ANALYSIS:
1. Occupation:

INTERPRETATION:
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.

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 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 The data
shows above explains that majorly business class prefer to invest inonce 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
Page No. 34
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?

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.

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

INTERPRETATION:

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. 36
 FINDINGS

❖ The investors in the Mumbai are having potential to invest in mutual fund
they only need proper guidance and information about mutual fund.

❖ Around 50% of the investor invest to maximize their returns and they are
ready to take moderate risk in their investment portfolio.

❖ 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. 37
 SUGGESTIONS & CONCLUSIONS
❖ Mutual fund companies should try to educate the investors to invest in
mutual funds through regular awareness program.

❖ Are ready to take moderate risks in their investment portfolio.

❖ 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.

❖ 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

Page No. 38
 ❖ 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. 39
 LMITATIONS OF THE STUDY

o 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:
o Questionnaire method can be used only when respondents are literate
and co-operative.
o Sampling size was 50 that are not enough to study the awareness of
independent individuals.

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

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

personal bias. Every respondent gives bias answer.

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

project as a well as study simultaneously.

o Research limited for city only.

Page No. 40
 REFERENCES
BOOKS:
o 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
o 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
o Singh, and Vanita (n.d).” Mutual fund investors’ perceptions and
preferences – a survey.”3(1),

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