A

SUMMER INTERNSHIP PROJECT REPORT

ON

“KOTAK MUTUAL FUND”

ANALYSIS OF DEBT SCHEMES IN MUTUAL FUND
NEW PANDIT COLONY OFFICE, NASHIK-422002
SUBMITTED IN PARTIAL FULFULLMENT OF THE REQUIREMENT FOR THE
AWARD
OF
THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

(FINANCIAL MANAGEMENT)

SUBMITTED BY
Mr. ROHIT.TIWARI
MBA II FINANCIAL MANAGEMENT
YEAR 2014-16

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
UNDER THE GUIDANCE OF

PROF.PRAJAKTA DESHMUKH

INSTITUTE OF MANAGEMENT, RESEARCH & TECHNOLOGY

GANGAPUR ROAD, NASHIK 422002
 DECLARATION BY STUDENT

I MR. ROHIT.TIWARIconducted summer internship In “KOTAK

MUTUAL FUND”,FROM15THMAY TO 15TH JULY 2015.

I hereby declare that the information gathered during the specific period shall be
strictly utilized only for the project which is to be completed as per the pursuing in MVP
Institute of Management Research Technology.

I honestly express that the information is not collected with any commercial
intention & motivation. The sole motive is to learn about the social issue & prepare project on
it. Thus the sole object of collection of information is of academic purpose & I assure that
collected information shall put to use only for the project report & nothing.

Date: Sign:

Place: IMRTNASHIK Name: MR. ROHIT.TIWARI

 CERTIFICATE FROM THE GUIDE

This is to certify that Mr/Ms______________ROHIT.TIWARI______________________

Has completed the project report entitled _______________________
___________________________________________________________
Under my guidance and supervision and submitted the report as per the norms laid down by
SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE.
The material that has been obtained from other sources is duly acknowledged in the report.It
is further certified that the work or its part has not been submitted to any other university for
examination under my supervision. I consider this work for the award of the degree of master
of business administration, in the partial fulfillment of the curriculum.

Date: Sign:

Place:IMRTNASHIK Name: MR. ROHIT.TIWARI

 ACKNOWLEDGEMENT

I gladly take this opportunity to thank the Director DR.B.B.RAYATE.

Institute of Management& Research Technology, Nasik, for providing facilities during
progress of the project.
I am greatly indebted toPROF.PRAJAKTA DESHMUKH faculty of Institute of
Management Research Technology, Nasik, our internal guide for this guidance &
enlightening comments throughout the project work. It has been an altogether different
experience to work with him & I would like to thank him for this helpful suggestion
&numerous discussions.
I am thankful to all those who helped me directly or indirectly to develop this project &
complete it successfully. Then I would like to thank MR.SHILENDRA. PATASKAR
(branch manager) who gave permission to me for doing project in their company. Also
thank to MISS. SNEHAL PATIL .who teach me about the, how the operate mutual fund and
its operation. They had always been very prompt at extending in their helping hand & sharing
valuable knows. The smooth completion of this project would not have been possible without
their guidance.

Date: Sign:

Place:IMRTNASHIK Name: MR. ROHIT.TIWARI

 Executive Summary

Investing is an activity of putting money in an instrument for the purpose of getting a good
Return on the investment and for the growth of the principle amount. There are a large number
of investment instruments available to the investors like mutual funds, insurance, shares,
govt. securities and corporate bonds, gold, real estate etc. investors invest the money in these
instruments for getting good returns and the money invested in turn helps in the growth of the
Economy. During the present global economic crisis it is essential for the people to invest
their money so that the global economy may recover.

Mutual fund is a professionally managed collective investment scheme where a number of

Investors pool their money and this money is turn invested in different instruments including
Equity, government bonds, commodities, debt market etc. Mutual Funds have a tiered
Structure with a sponsor, who is the promoter of the fund, on top. Under the sponsor is the
Trust which holds the unit holders money. Under the trust is the AMC or Asset Management
Company which manages the fund of the investors, the registrar which processes the
Applications and the custodian who is the guardian of the funds and assets of the investors.

Mutual funds can be classified based on structure, investment objectives and the types of
Schemes. They may be classified as open ended or close ended, equity funds, debt funds,
balanced funds or money market funds, or based on schemes as ELSS, Fixed Term Plan or
SIP etc.

For the marketing of Mutual Funds we can segment the market based on the Socio Economic
Classification and the age of the investors. We can target the A, B and C segment of people
based on the various schemes. The targeting on age basis will be based on the investment
objective of a particular fund. Mutual fund can be positioned as a wealth creation and tax
saving product.
 ANALYSIS OF DEBT SCHEMES IN MUTUAL FUND

TABLE OF CONTENTS
Chapter Page
Contents
No. No.
1 INTRODUCTION 8-14
1.1 Object of the Project 9
1.2 Introduction (Selection of the topic) 10
1.3 Objectives of the study 11
1.4 Scope of the study 12
1.5 Rationale/contribution of the study 13
1.6 Limitations of the study 14
2 RESEARCH METHEDOLOGY 15-22
2.1 Method of study 16-18
2.2 Sampling 19-21
2.3 Data Collection 22
2.4 Presentation of Data, Tools of analysis & interpretation 23
3 PROFILE OF THE ORGANISATION 24-49
3.1 History & general information 25-29
3.2 Organization 30-36
3.3 Products/Activities 37-42
3.4 Corporate and Functional practices 43-49
4 REVIEW OF LITERATURE 50-56
4.1 Meaning & Concepts of the Topic 51-53
4.2 Basic theories of the topic 54-55
4.3 Review of Research on the selected topic 56
5 DATA PRESENTATION, ANALYSIS & INTERPRETATION 57-66
6 CONCLUSION & SUGGESTIONS 67-69
ANNEXURE/APPENDICES 70-71
I) QUESTIONNAIRE 70
II) REFERENCES/BIBLIOGRAPHY 71
 LIST OF TABLE NO.5.1 TO 5.7

Sr.No Table No Title

1 5.1 Awareness about mutual

fund

2 5.2 Priority for investing in

mutual fund

3 5.3 Priority factor for

investment

4 5.4 Opinion of respondents

about mutual fund

5 5.5 Comparison of debt scheme

with other funds

6 5.6 Information about debt

schemes

7 5.7 Analysis of debt schemes

through ratios
 LIST OF GRAPH NO.5.1 TO 5.6

Sr.No Graph No Title

1 5.1 Awareness about mutual

fund
2 5.2 Priority for investing in
mutual fund
3 5.3 Priority factor for
investment
4 5.4 Opinion of respondents
about mutual fund
5 5.5 Comparison of debt
scheme with other funds
6 5.6 Information about debt
schemes
 CHAPTER 1:

INTRODUCTION
1.1 OBJECTS OF THE PROJECT:

As a part and parcel of the syllabus of MBA curriculum of Pune University the subject of
summer internship project.

The main purpose of doing this project is to know about mutual fund and debt schemes and its
functioning. This helps to know in details about mutual fund as well as debt schemes right
from its inception stage, growth and future prospects. It also helps in understanding different
schemes of mutual funds and other investment. Ultimately this would help in understanding
the benefits of mutual funds to investors.
It is mandatory as per curriculum of Pune University for the MBA professional course to go
for sip for a period minimum 60 days in the industry suiting to the topic of the study. This is
required to expose the students to the industry to gain not only business practice knowledge
but to achieve the following objects.
I. To enhances the interaction and communication with the corporate world.
II. To study the work culture of the organization.
III. To judge the deviation between theory and practical implementation of the principal of
management
IV.To study the policy and strategies of the management and its implementation to the down
line level, bottom and top level of the company.
1.2 SELECTION AND INTRODUCTION OF STUDY:

The topic selected for the summer internship project “KOTAK MAHINDRA MUTUAL
FUND “at ground floor ,krishnaratan, shop no.06 ,opp, hotel potoba , new pandit
colony ,nashik 422022
The mutual fund investment is one of the major chunks of the investment across the Indian
economy which is linked with fluctuations in share market of the country. Therefore, the
investment in mutual fund is one kind of promising challenge because one side it is of
progressive investment and second side sometime it is very difficult to realize its value in the
light of this. The present study has focused on various schemes of mutual funds offered by
“KOTAK MAHINDRA MUTUAL FUND”
This study is related to the various types of mutual funds. Fund investment in the share
market, ever fluctuations in the same market either at the upper side or reverse, creates lot of
problems to the investors. Sometimes, when the share economy dwindles then it is very
difficult or next to impossible to recover the face value of the investment. This annoying
situation among mutual fund in investors. Therefore, to offer various investment and to gain
the confidence of prospective investors ,it becomes rope dance to the company to convince
there mind under such a circumstance the research has taken lot of trouble to project in a such
manner that it will be a guideline to the investors and the company too.
1.3OBJECTIVES OF THE STUDY:

1. To know and understandthe best debt schemes available in kotak mutual funds.

2. To know and understand how debt schemes benefit the investor of kotak mutual funds.

3. To understand performance of debt schemes of kotak mutual funds.

4. To know and understand market status of debt schemes of mutual funds of kotak mutual
funds.

.
1.4 SCOPE OF THE STUDY:

The scope of working under the project is very wide. This project is done under the guidance
of professional employees who are working in“kotak Mahindra mutual fund’.
This will help to understand mutual fund and their various funds information. Study will help
to understand the procedure of investment in mutual funds.
The main coverage given to this study is restricted to various schemes offered by the
company from mutual fund investment. The financial viability of mutual fund is judge on the
basis of financial analysis of the company and mainly using the tools like ratios analysis and
benchmarking study of the various mutual fund schemes.
1.5 RATIONALE OF THE STUDY:

Utility to Researcher:-

1. Researcher got exposure in investment sector and real organizational environment.

2. Researcher got an opportunity to work with the organization "KOTAK MUTUAL
FUND ". Being a student of MBA- Finance,

Utility to Organization:-

1. It will help mutual researcher to know the Opportunities & Threats mutual fund.
2. It helps the researcher to understand minimum cost saving of product mutual fund.
3. It can help the researcher to know about their debt scheme segment of mutual fund.

Utility for Customer:-

1. Customer gets an opportunity to express their views towards“kotak mutual fund”.

Customer is assured of their schemes as per theirrequirement
1.6 LIMITATIONS OF THE STUDY:

This project focuses only on certain factors which are important to

discuss but they cannot be discussed completely:

1. The period of the project is very short and only for two months to give coverage to the
study.

2. The organizations did not disclose suitable data and information which is an obstacle
for the detailed study of mutual funds

3. The project is limited to Nasik city only.

4. The data provided by fact sheets may not be 100% correct

 CHAPTER 2

RESEARCH METHODOLOGY
2.1 METHOD OF STUDY:

RESEARCH: a way of examining your practice…

Research is undertaken within most professions. More than a set of skills, it is a way of
thinking: examining critically the various aspects of your professional work. It is a habit of
questioning what you do, and a systematic examination of the observed information to find
answers with a view to instituting appropriate changes for a more effective professional
service.

DEFINITION OF RESEARCH

When you say that you are undertaking a research study to find answers to a question, you are
implying that the process;

1. Is being undertaken within a framework of a set of philosophies (approaches);

2. Uses procedures, methods and techniques that have been tested for their validity and
reliability;

3. Is designed to be unbiased and objective.

EXPLORATORY

Exploratory research is undertaken to explore an area where little is known or to investigate

the possibilities of undertaking a particular research study (feasibility study / pilot study).

ANALYTICAL RESEARCH
Analytical research has to use facts or information already available and analyze these to
make a critical evaluation of the material.

TYPES OF RESEARCH:
Research can be classified from three perspectives:

1. Application of research study

2. Objectives in undertaking the research

3. Inquiry mode employed

1. Application mode:

From the point of view of application, there are two broad categories of research:

- Pure research and

- applied research.

Pure research involves developing and testing theories and hypotheses that are intellectually
challenging to the researcher but May or may not have practical application at the present
time or in the future. The knowledge produced through pure research is sought in order to add
to the existing body of research methods. Applied research is done to solve specific, practical
questions; for policy formulation, administration and understanding of a phenomenon. It can
be exploratory, but is usually descriptive. It is almost always done on the basis of basic
research. Applied research can be carried out by academic or industrial institutions. Often, an
academic institution such as a university will have a specific applied research program funded
by an industrial partner interested in that program.

2. Objectives mode:

From the viewpoint of objectives, a research can be classified as

-Descriptive

-Correlation

-explanatory

-exploratory
Descriptive research attempts to describe systematically a situation, problem, phenomenon,
service or programme, or provides information about , say, living condition of a community,
or describes attitudes towards an issue.

Correlation research attempts to discover or establish the existence of a relationship/

interdependence between two or more aspects of a situation.

Explanatory research attempts to clarify why and how there is a relationship between two or
more aspects of a situation or phenomenon.

Exploratory research is undertaken to explore an area where little is known or to investigate

the possibilities of undertaking a particular research study (feasibility study / pilot study).

In practice most studies are a combination of the first three categories.

3. Inquiry Mode:

From the process adopted to find answer to research questions – the two approaches are:

- Structured approach

- Unstructured approach

Structured approach:

The structured approach to inquiry is usually classified as quantitative research. Here

everything that forms the research process- objectives, design, sample, and the questions that
you plan to ask of respondents- is predetermined. It is more appropriate to determine the
extent of a problem, issue or phenomenon by quantifying the variation. e.g. howmany people
have a particular problem? How many people hold a particular attitude?

Unstructured approach:

The unstructured approach to inquiry is usually classified as qualitative research. This

approach allows flexibility in all aspects of the research process.
2.2SAMPLING:
DETERMINING SAMPLE DESIGN

Researchers usually draw conclusions about large groups by taking a sample .A Sample is a
segment of the population selected to represent the population as a whole. Ideally, the sample
should be representative and allow the researcher to make accurate estimates of the thoughts
and behavior of the larger population.

Types of Samples

1. Probability samples

1.1 Simple random sample:

Every member of the population has a known and equal chance of being selected.

1.2 Stratified random sample:

Population is divided into mutually exclusive groups such as age groups and random samples
are drawn from each group.

1.3 Cluster (area) sample:

The population is divided into mutually exclusive groups such as blocks, and the researcher
draws a sample of the group to interview.

2. Non probability samples

2.1 Convenience sample:

The researcher selects the easiest population members from which to obtain information

2.2 Judgment sample:

The researcher uses his/her judgment to select population members who are good prospects
for accurate information.

2.3 Quota sample:

The researcher finds and interviews a prescribed number of people in each of several
categories
2.3 DATA COLLECTION:
COLLECTING THE DATA

BY OBSERVATION:

This method implies the collection of information by way of investigator’s own observation,
without interviewing the respondents. The information obtained relates to what is currently
happening and is not complicated by either the past behavior or future intentions or attitudes
of respondents. This method is no doubt an expensive method and the information provided
by this method is also very limited. As such this method is not suitable in inquiries where
large samples are concerned.

THROUGH PERSONAL INTERVIEW:

The investigator follows a rigid procedure and seeks answers to a set of pre-conceived
questions through personal interviews. This method of collecting data is usuallycarried out in
a structured way where output depends upon the ability of the interviewer to a large extent.

THROUGH TELEPHONE INTERVIEWS:

This method of collecting information involves contacting the respondents on telephone itself.
This is not a very widely used method but it plays an important role in industrial surveys in
developed regions, particularly, when the survey has to be accomplished in a very limited
time.

BY MAILING OF QUESTIONNAIRES:

The researcher and the respondents do come in contact with each other if this method of
survey is adopted. Questionnaires are mailed to the respondents with a request to return after
completing the same. It is the most extensively used method in various economic and
business surveys. Before applying this method, usually a Pilot Study for testing the
questionnaire is conduced which reveals the weaknesses, if any, of the questionnaire?
Questionnaire to be used must be prepared very carefully so that it may prove to be effective
in collecting the relevant information.
THROUGH SCHEDULES:

Under this method the enumerators are appointed and given training. They are provided with
schedules containing relevant questions. These enumerators go to respondents with these
schedules. Data are collected by filling up the schedules by enumerators on the basis of
replies given by respondents. Much depends upon the capability of enumerators so far as this
method is concerned. Some occasional field checks on the work of the enumerators may
ensure sincere work.18 Research Methodology The researcher should select one of these
methods of collecting the data taking into consideration the nature of investigation, objective
and scope of the inquiry, financial resources, available time and the desired degree of
accuracy.
 2.4 PRESENTATION OF DATA TOOLS OF ANALYSIS &
INTERPRETATION:
THE RESEARCH METHODOLOGY APPLIED FOR THIS STUDY IS AS FOLLOWS:

a) Types of Research Exploratory, analytical

b) Population and Sample unit Nasik city ( 50 respondents)

c) Sampling unit KotakMahindra mutual fund

d) Collection of Data
1 Primary data Interview and Questionnaire
2 Secondary data Internet, Websites, Newspaper, Books…
publications, fact sheets, journals.
e) Analysis of data Average method, Percentage method

.
 CHAPTER 3
PROFILE OF KOTAK MAHINDRA
MUTUAL
3.1 HISTORY & GENERAL INFORMATION:
Kotak Mahindra is one of India's leading financial institutions, offering complete
financial solutions that encompass every sphere of life. From commercial banking, to stock
broking, to mutual funds, to life insurance, to investment banking, the group caters to the
financial needs of individuals and corporates.

The group has a net worth of around Rs.5,997 crore and employs around 20,000
employees across its various businesses servicing around 5 million customer accounts through
a distribution network of branches, franchisees, representative offices and satellite offices
across 370 cities and towns in India and offices in New York, London, Dubai, Mauritius and
Singapore.

Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly own

Kotak mutual fund sponsored by Kotak Mahindra Bank Limited, one of India's fastest
growing banks, with a pedigree of over twenty years in the Indian Financial Markets. Kotak
Mahindra Asset Management Co. Ltd., a wholly owned subsidiary of the bank, is our
Investment Manager.
Subsidiary of KMBL is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF).
KMAMC started operations in December 1998 and has over 10 Lac investors in various
schemes. KMMF offers schemes catering to investors with varying risk - return profiles and
was the first fund house in the country to launch a dedicated gilt scheme investing only in
government securities.

Kotak mutual fund made a humble beginning in the Mutual Fund space with the launch of our
first scheme in December, 1998. Today we offer a complete bouquet of products and services
suiting the diverse and varying needs and risk-return profiles of our investors.

Kotak Mahindra committed to offering innovative investment solutions and world-class

services and conveniences to facilitate wealth creation for our investors.
VISION:
To positively contribute towards economic, environmental and social well-being of
communities through Corporate Social Responsibility agenda

MISSION:
Create a lasting value for communities by:
Promoting and supporting education and other interventions for the under privileged
Encouraging employee volunteering
Supporting Non-Governmental Organizations and other institutions with financial and other
resources to collectively deliver community initiatives

CSR FOCUS AREAS:

Promoting Education - Primary Focus Area
Enhancing vocational skills and livelihood projects
Promoting preventive healthcare and sanitation
Reducing inequalities faced by socially and economically backward groups
Environmental Sustainability
SPONSORS:
The erstwhile Sponsor Company, Kotak Mahindra Finance Limited (KMFL) was
converted into Kotak Mahindra Bank Limited(Kotak Bank) in March 2003 after being granted
a banking license by the Reserve Bank of India. Thus, the Sponsor of the Fund is Kotak Bank.
KMFL promoted by Mr. Uday S. Kotak, Mr. S.A.A. Pinto and Kotak& Co., was incorporated
on November 21, 1985 under the name Kotak Capital Management Finance Limited.

In early 1986, the promoters were joined by Late Mr.Harish Mahindra and Mr. Anand
G. Mahindra and the Company’s name was changed to Kotak Mahindra Finance Limited. Mr.
UdayKotak, a scion of the Kotak family, was an outstanding student through school,
Sydenham College (Bombay University) and Jamanalal Bajaj Institute of Management
Studies (Bombay University). Mr. S. A. A. Pinto, trained as a lawyer, has held senior
positions in well-known organisations like ICI and Grindlays Bank. For instance, he was part
of the team in Grindlays Bank, which started the first merchant banking unit in India in 1968.
Mr. Harish Mahindra an industrialist of repute played a prominent role in social service and
public life, thereby earning him high esteem.

Mr. Anand Mahindra, an MBA from Harvard University, is the Managing Director of one of
India’s most reputed industrial firms, Mahindra & Mahindra Limited.
KMFL started with a capital base of Rs. 30.88 lakh. From being a provider of a single
financial product, KMFL grew substantially during the seventeen years of its existence into a
highly diversified financial services company and has now converted into a Bank. As on
March 31, 2008, the net worth (capital plus reserves & surplus) of Kotak Bank is Rs.
3,535.49 crore and combined with its subsidiaries, the Group net worth (before minority
interest) is Rs. 5824 crore. There are over 92,200 shareholders of Kotak Bank. The Sponsor
and its subsidiaries/associates offer wide ranging financial services such as loans, lease and
hire purchase, consumer finance, home loans, commercial vehicles and car finance,
investment banking, stock broking, mutual funds, primary market distribution of equity and
debt products and life insurance. The group has offices (including representative offices and
franchise offices) in 370 Indian cities and
present internationally in Mauritius, San Francisco, London, Dubai, New York and Singapore.
Kotak Mahindra (UK) Limited, a subsidiary of Kotak Bank, is the first company owned from
India to be registered with the Financial Services Authority in UK. Kotak Mahindra Old
Mutual Life Insurance Limited is a joint venture between Kotak Bank and Old Mutual Plc
based in the UK and with large presence in the South African insurance market. Some of the
other subsidiaries of Kotak Bank are Kotak Investment Advisors Ltd formerly known as
(Kotak Mahindra Securities Limited), Kotak Mahindra Prime Limited, Kotak Mahindra
(International) Limited, Kotak Mahindra Trusteeship Services Limited (formerly known as
Kotak Mahindra Private-Equity Trustee Limited), Kotak Mahindra Investments Limited,
Kotak Mahindra Inc., and KotakForex Brokerage Limited.

No. of schemes 46

No. of schemes including options 116

Equity Schemes 22

Debt Schemes 70

Short term debt Schemes 8

Equity & Debt 3

Money Market 0

Gilt Fund 7
COMPETITORS OF KOTAK MUTUAL FUND:
Some of the main competitors of Kotak Mutual Fund in Nasik are as
Follows:

1) ICICI Mutual Fund

2) Reliance Mutual Fund

3) UTI Mutual Fun

4) Birla Sun Life Mutual Fund

5) SBI Mutual Fund

6) HDFC Mutual Fund

7) LIC Mutual Fund

8) Axis Mutual Fund

9) Franklin Templeton Mutual Fund

10) Other investments companies

AWARDS:

 ICRA AWARDS, 2009

 NDTV AWARDS, 2006

 LIPPER FUND AWARDS, 2006

 ICRA AWARDS, 2006

 ICRA MFR 1 (December 2004 & December 2005)

 OUTLOOK MONEY BEST WEALTH CREATOR DEBT 2003

 CRISIL BEST FUND AWARD 2000

 3.2 KOTAK MAHINDRA MUTUAL FUND:

STRUCTURE OF KOTAK MAHINDRA MUTUAL FUND

ORGANISATION STRUCTURE
A. Sponsor - Sponsor of the Mutual Fund is the promoter of the Mutual Fund. It
Establishes the Mutual Fund and registers the same with SEBI. The sponsor can be a bank
like SBI, PNB ICICI etc., a financial institution like Fidelity, Franklin Templeton etc. or a
corporate like Reliance, Tata, and Birla etc. According to SEBI regulation the sponsor must
have a 5 year experience in the financial services market and should have been profitable for
at least 3 years. This is done to ensure that the fund is promoted by an experienced entity
with which the public will have faith in handling their money. The sponsor appoints the
AMC, trustees and the custodians with prior approval of SEBI. It also contributes at least
40% of the net worth of the AMC.
B. Trust - According to SEBI regulation the Mutual Funds in India is a trust established
Under the Indian Trust Act 1982. The trust is managed by a board of trustees or by a trustee
company. There are at least 4 members in the board of trustees and 2/3rd of the board is
independent. The trustees hold the unit holders money in a fiduciary capacity. The trustees
also appoint the AMC in consultation with the sponsor and according to the SEBI regulation.
C. AMCs - The Asset Management companies are the public face of the Mutual Fund.
They are appointed by the sponsors and the trust under the guidelines of SEBI. The AMC
should have the net worth of minimum Rs. 10 Crore. Half of the members of the board of the
AMC should be independent. The main job of the AMC is to manage the funds of the
investors. It researches the best investment options to put the money in so that the investors
get the maximum return on their investment. There is a fund manager and his team which
carries out the research. The AMC floats a number of schemes for the investors to invest
their money based on their investment objectives and risk appetite. These varied schemes
help attract the public to the company. Some of the AMCs in India are reliance Mutual Fund,
HDFC Bank Mutual Fund, ICICI Prudential Mutual Fund etc.
D. Registrar - The registrar processes the applications and records the details of the
Investors. They process the dividend payouts to the investors and send information to them.
Thus they maintain the backend operations of the Mutual Fund.
E. Custodian - it is the guardian of the funds and the assets of the investor. It is appointed
by the board of trustees and is responsible for the securities held in the Mutual Funds portfolio. It
is also regulated by the SEBI

Classification of Funds:
Mutual Funds can be classified in a variety of ways. In this report the classification of Mutual
fund on basis of structure, investment objectives and scheme wise classification will be
discussed. The types of mutual funds can be as depicted in
Type of equity
TYPES OF MUTUAL FUNDS:
Structure - The most basic classification of the Mutual Funds is on the structure of the
Fund. This classification is based on the premise whether the Fund is an Open Ended or a
Close Ended Fund

A. Open Ended Fund - An open ended Mutual Fund is a Fund where in the investor can
Invest at any point of time and for any duration that he or she wants. The investors can buy or sell
the units of the fund at NAV related prices at any point of time directly from the fund. The open
ended fund is not traded at the stock market and is redeemed at the NAV. The number of
outstanding units of the fund changes every day based on the NAV of the fund on the particular
day. The minimum subscription amount for the fund is Rs. 50 Corer. The Amount subscribed is
redeemed if the minimum subscription amount is not reached by the Fund. The corpus of the
Open Ended scheme changes every day and the unit capital is not fixed

B. Close Ended Fund - A Close Ended Fund is a fund wherein an investor can invest only
During a fixed period of time. This investment is for a fixed duration as specified in the offer
document of the fund. The close ended funds are listed in the stock exchange. If an investor
wishes to invest in the fund after the time period of the fund he will have to buy the units of the
fund from the stock market. The prices at which the units are sold or redeemed depend on the
market prices which are linked to the NAV. The number of units of the fund and the unit capital
remains unchanged in case of a Close Ended Fund. The minimum subscription amount of the
fund is Rs. 20 Crore. The amount subscribed is redeemed if the minimum subscription amount is
not reached by the fund.

Investment Objective - A Mutual fund can also be classified based on the investment
Objectives of the fund. These investment objectives are based on the risk appetite of the
investors and the returns that they expect from the funds. The classification based on the
investment objectives of the fund is whether the fund invests in Equity Market, Debt Market or
the Money Market.
Equity Funds - The Equity Funds are those funds which invest primarily in the Equity
Market. The money of the investors is invested in the shares of the various companies. These
companies are chosen based on the objectives of the fund as stated in the offer documents. Thus
they can be large-cap or mid-cap companies or they can be companies in a particular sector of
the economy like infrastructure or power. Some funds which are index funds may invest in
companies which form the part of the index the fund considers as a base for example the B.S.E. 30
or Nifty 50 etc. The equity funds usually have growth and dividend options. In growth option the
customer is not given any dividend but in the dividend option the customer has the choice of
either getting the dividend or reinvesting it in the shares of the companies. The equity funds are
characterized by high risk and high returns. Over a period of 5-7 years equity funds give a
CAGR of more than 18-20% and they generally outperform the share market. These returns are
one of the highest returns generated by the various investment instruments. Equity based Mutual
Funds outperform the stock market mainly because the fund managers not only invest in the
stocks of major companies in the stock market but also in the stocks of smaller companies also
which are likely to give good returns.

Debt Funds - The debt funds are those funds that invest primarily in the debt market. These
Funds invest in the government securities and corporate bonds. Within debt funds there are a lot
of type of funds depending on which instruments they invest in. Some of the funds invest in AAA
and AA commercial papers. Others like Gilt funds invest only in the government securities. The
level of risk and returns in the case of Debt Funds depend on the instruments that the funds have
invested in but are overall less risky than equity based funs. At the same time these funds can’t
match the level of returns that are generated by the equity based funds. These are recommended for
people with no fixed level of earnings and a low risk appetite like retirees who want a source of
investment for their savings but don’t want to involve in the vagaries of the stock market.
Balanced Funds - These funds are a combination of Equity Funds and Debt funds with
Some portion of the fund invested in the share market while other is invested in the
government securities and corporate bonds. They offer the best of both Equity and Debt funds
as they have manageable amount of risks and also give good returns. Some funds like the ICICI
Prudential Target Returns Fund invest initially in the Equity market and then after getting the
profit invest the same in the Debt Market thus giving the investors best of both worlds.

Money Market - The Money Market or Liquid Funds are those funds which are invested in
The short term or money market. These are invested in the instruments with maturity period of less
than 1 year like treasury bills, commercial papers, certificates of debt etc. The investment portfolio
is very liquid and enables the investors to hold their investments for very short horizons of a day
or more. These funds have zero risk and they also give good returns to their investors. They are
mainly offered to people who have excess money to invest over a short period of time only.

Scheme Wise - Mutual Funds can also be classified based on the various types of the
Schemes that are offered to the public. These schemes help the public in managing their
investments based on the investment objectives of the different investors. The flexibility of
investing in different types of schemes is a highly attractive feature of Mutual Funds. Some of
the major types of schemes available to the investors are described below.

.
ELSS - The ELSS or Equity Linked Saving Scheme is a very popular scheme of Mutual
Funds for the purpose of tax saving. As the name suggest the Mutual Fund under ELSS invests
at least 90% of the fund in the stock market. The fund usually has a 3 year lock in
Period. It can be an open ended or a close ended fund. Investments made under ELSS are
Used to save tax. Under the section 80C of income tax investment of up to Rs 1 Lac in ELSS is
tax deductible. The dividends earned under this scheme are also tax free. The investors also benefit
in terms of the long term capital gain taxation. Thus financial planners strongly advise their clients
to invest in this fund during tax planning.
Fixed Term Plan - FTP or Fixed Term Plan schemes are special schemes of Mutual Funds.
These are short term close ended schemes. The AMCs issue a fixed number of units for each
series only once and then the issue is closed after the initial offering period. These units are not
listed in the stock market. FTPs are generally offered in money market funds. They can be
considered as an alternative to investing in the corporate deposits or bank deposits as they give a
higher rate of return.

SIP - One of the best schemes of Mutual Funds is considered to be SIP or Systematic
Investment Plan. The basic funda of SIP is to encourage the people to invest a small amount on a
regular basis. Under SIP one can invest as little as Rs 100 per month in mutual funds. This
regular investment over a large period of time gives fantastic returns to the individuals. The
major reason for high returns of SIP investments as compared to others is the concept of Rupee
Cost Averaging. When the market is booming the value of the units bought by the investors have
increased while in the bearish market when the NAV of the funds fall then the number of units
allotted is more.
3.3 PRODUCT & SERVICES:

DEBT FUND OF KOTAK MUTUAL FUND:

1. KOTAKBANKING AND PSU DEBT FUND

Open Ended Debt Scheme

Inception Date: Dec 29, 1998

Fund Managers: Mr. DeepakAgrawal

Objective: to generate income by predominantly investing in debt &money market securities

issued by banks & PSU and reverse repos in such securities .sovereign securities
issued by the central government and state government.

Plans and Options : dividend payout, dividendreinvestment&growth

Face Value (Rs/Unit) : Rs. 10

Minimum Investment : Rs.5000

Benchmark :CRISIl Liquid Fund Index

Load structure

Entry load- Nil

Exit load: Nil (applicable for all plans) bonus units issued on reinvestment of dividends shall not
be subject to exit load.

Other details

Additional Inv.-` 1000 & in multiples of `1

Standard Deviation ^0.23 %

2. KOTAK MONTHLY INCOME PLAN

Open Ended Debt Scheme

Inception Date: Dec 02, 2003

Fund Managers: Mr. Abhishek.bisen

Objective: to enhance returns over a portfolio of debt instrument with a moderate exposure in
equity and equity related instrument.

Plans and Options : dividend payout, dividend reinvestment& growth

Face Value (Rs/Unit) : Rs. 10

Minimum Investment : Rs.5000

Benchmark : CRISIL MIP Blended Index

Load structure

Entry load- Nil

Exit load: For redemptions / switch outs (including SIP/STP) within 3 years from the date of
allotment of units, irrespective of the amount of investment: 1%.
For redemption/switch outs (including SIP/STP) after 3 year from the date of allotment of units,
irrespective of the amount of investment: Nil

Other details

Additional Inv.-` 1000 & in multiples of `1

Standard Deviation ^3.01%

3. KOTAK GILT INVESTMENT

Open Ended Debt Scheme

Inception Date:Nov 11, 2003

Fund Managers: Mr. Deepak. Agrawal

Objective: to generate risk free returns through investment in .sovereign securities issued by the
central government and state government.

Plans and Options : dividend payout, dividend reinvestment& growth

Face Value (Rs/Unit) : Rs. 10

Minimum Investment : Rs.5000

Benchmark : ISEC Composite Index

Load structure

Entry load- Nil

Exit load: Nil (applicable for all plans) bonus units issued on reinvestment of dividends shall not
be subject to exit load.

Other details

Additional Inv.-` 1000 & in multiples of `1

Standard Deviation ^3.64 %

4. KOTAK FLOATER SHORT TERM

Open Ended Debt Scheme

Inception Date: July 14, 2003

Fund Managers: Mr. Abhishek. Bisen

Objective: to reduce the interest rate risk associated with investment in fixed rate instrument
by investing predominantly in floating rate securities, money market instrument and
using appropriate derivatives.

Plans and Options : dividend payout, dividend reinvestment& growth

Face Value (Rs/Unit) : Rs. 10

Minimum Investment : Rs.5000

Benchmark : CRISIL Liquid Fund Index

Load structure

Entry load- Nil

Exit load: Nil (applicable for all plans) bonus units issued on reinvestment of dividends shall not
be subject to exit load.

Other details

Additional Inv.-` 1000 & in multiples of `1

Standard Deviation ^0.16%

 5. KOTAK BOND

Open Ended Debt Scheme

Inception Date: Nov 25, 1999

Fund Managers: Mr. Abhishek .Bisen

Objective: to create a portfolio of debt and money market instrument of different maturities so
as to spread the risk a wide maturity horizon & different kinds of issues in the
debentures

Plans and Options : dividend payout, dividend reinvestment& growth

Face Value (Rs/Unit) : Rs. 10

Minimum Investment : Rs.5000

Benchmark : CRISIL Composite Bond Fund Index

Load structure

Entry load- Nil

Exit load: Nil (applicable for all plans) bonus units issued on reinvestment of dividends shall not
be subject to exit load.

Other details

Additional Inv.-` 1000 & in multiples of `1

Standard Deviation ^3.23 %

6. KOTAK LIQUID

Open Ended Debt Scheme

Inception Date: Nov 04, 2003

Fund Managers: Mr. AbhishekBisen

Objective: to provide reasonable returns and high level of liquidity by investing on debt fund
and money market instrument of different maturities some as to spread risk across
different types of issuers in debt market.

Plans and Options : dividend payout, dividend reinvestment& growth

Face Value (Rs/Unit) : Rs. 10

Minimum Investment : Rs.5000

Benchmark : CRISIL Liquid Fund index

Load structure

Entry load- Nil

Exit load: Nil (applicable for all plans) bonus units issued on reinvestment of dividends shall not
be subject to exit load.

Other details

Additional Inv.-` 1000 & in multiples of `1

Standard Deviation ^.14 %

3.4 CORPORATE & FUNCTIONAL PRACTICES:
FINANCE

OVERVIEW OF EXISTING SCHEMES EXISTED IN MUTUAL FUND CATEGORY

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk
tolerance and return expectations etc. The table below gives an overview into the existing types
of schemes in the Industry.

1: The Role of Each Participant

 1. Open Ended Scheme:
2. Close Ended Schemes:
3. Interval Schemes:
4. Equity fund:
 Diversified Equity Funds
 Index Funds
 Aggressive Growth Funds
 Large-Cap/Mid-Cap/Small Cap Funds
 Sector Specific Funds
 Specialty/ Thematic Funds
 Growth Funds
 Dividend Yield Funds
 Value Funds
 Tax Savings Funds (ELSS)
5. Debt funds:
 Gilt Funds:
 Diversified Debt Fund:
 Focused Debt Funds
 Income Funds
 High Yield Debt Fund:
 Assured Return Funds:
 Fixed term Plan Funds:
6. Balanced funds:
7. Growth And Income Funds:
8. Assets Allocation Funds:
9. Commodity Funds:
10. Real Estate Funds:
11. Exchange Traded Funds:
12. Fund of Funds:
13. Liquid Funds(MMMF):
TYPES OF RETURNSSSSS:
There are three ways, where the total returns provided by mutual funds can be enjoyed by
investors:
 Income is earned from dividends on stocks and interest on bonds. A fund pays out
nearly all income it receives over the year to fund owners in the form of a distribution.
 If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in a distribution.
 If fund holdings increase in price but are not sold by the fund manager, the fund's
shares increase in price. You can then sell your mutual fund shares for a profit. Funds
will also usually give you a choice either to receive a check for distributions or to reinvest
the earnings and get more shares.
Advantages of Mutual Funds:

1. Professional Management - The basic advantage of funds is that, they are

professional managed, by well qualified professional. Investors purchase funds because they do
not have the time or the expertise to manage their own portfolio. A mutual fund is considered to
be relatively less expensive way to make and monitor their investments.

2. Diversification - Purchasing units in a mutual fund instead of buying individual stocks

or bonds, the investors risk is spread out and minimized up to certain extent. The idea behind
diversification is to invest in a large number of assets so that a loss in any particular investment
is minimized by gains in others.

3. Economies of Scale - Mutual fund buy and sell large amounts of securities at a time,
thus help to reducing transaction costs, and help to bring down the average cost of the unit for
their investors.

4. Liquidity - Just like an individual stock, mutual fund also allows investors to liquidate
their holdings as and when they want.

5. Simplicity - Investments in mutual fund is considered to be easy, compare to other

available instruments in the market, and the minimum investment is small. Most AMC also have
automatic purchase plans whereby as little as Rs. 2000, where SIP start with just Rs.50 per
month basis.
INVESTMENT PLANS:
The term ‘investment plans’ generally refers to the services that the fund providing to investor
offering different ways to invest or reinvest. The different reinvestment plans are an important
consideration in the investment decision, because they determine the level of flexibility
available to the investor, alternate investment plans offered fund allow the investor freedom
with respect to investing one time or at regular intervals, making transfers to different schemes
within the same fund family, or receiving income at specified intervals or accumulating
distributions. Below, we look at some of the investment plans offered by mutual fund in India.

AIP: AUTOMATIC INVESTMENT PLAN:

These require the investor to invest a fixed sum periodically, thereby letting the investor
save in disciplined and phased manner. The mode of investment could be through direct debit
to the investor’s salary bank account. Such plans are also known as ‘SIP’ investors looking at
“rupee cost averaging” will generally opt for fund that offer this facility. A modified version of
is the Voluntary Accumulation Plan (VAP) that allow the investor flexibility with respect to
the amount and frequency of investment. Both AIP and VAP are only two optional ways of
investing in a disciplined manner, in open end funds. The different in that in the AIP, the
investor agrees as a contractual obligation to keep investing, whereas in case of VAP, he is not
obliged to keep investing but has to impose a certain voluntary-self-discipline on himself.
SWP: SYSTEMATIC WITHDRAWL PLAN:
Such plans allow the investors to make systematic withdrawals from his fund investment
account on a periodic basis, thereby providing the same benefit as regular income. The investor
must withdraw a specific minimum amount with the facility to have withdrawal amount with
the facility to have withdrawal amount sent to his residence by a cheque a credited directly to
his bank account. The amount withdrawn is treated as redemption of units at the applicable
NAV as specified in the offer document.

STP: SYSTEMATIC TRANSFER PLAN:

These plans allow the investor to transfer on periodic basis a specified amount from one
scheme to another within the same fund family- meaning two schemes managed by the same
AMC and belonging to the same fund. A transfer will be treated as the redemption of units
from the scheme from which the transfer is made, and as investment in unit of the scheme in to
which the transfer is made. Such redemption or investment will be at the applicable NAV at the
respective scheme as specified in the offer document. It is necessary for the investor to
maintain the balance in the scheme from which the transfers are made. But UTI and other
private fund may generally offer this service to investor in India. Many funds do not even
charge any transaction fees for this service- an added advantage for active investor.
PROCESS OF NFO:

1. Establishment of Idea

2. Market Analysis

3. Setting Objective and Sector Allocation

4. Appointment of Managers

5. Registration with SEBI and AMFI

6. Offer Document

7. Advertisement

8. Subscription

9. Allotment of Units

NET ASSET VALUE (NAV):

A mutual fund is a common investment vehicle where the assets of the fund belong directly to
the investor. Investors’ subscriptions are accounted for by the fund not as liabilities or deposits
but as unit capital. On the other hand, the investments on behalf of the investors are reflected on
the assets side and are the main constituents of the balance-sheet. There are, however, liabilities
of strictly short term nature that may be part of the balance sheet. The fund’s net assets are
therefore defined as the assets minus liabilities. As there are many investors in a fund, it is
common practice for mutual funds to compute the share of each investor on the basis of the NET
ASSET PER UNIT, commonly known as the NAV.The following are the regulatory requirement
and accounting definition laid down by SEBI.
 CHAPTER 4

REVIEW OF LITERATURE
4.1 MEANING AND CONCEPTS OF THE TOPIC:
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. It is essentially a diversified portfolio of financial instruments - these could be
equities, debentures/bonds or money market instruments. The corpus of the fund is then
deployed in investment alternatives that help to meet predefined investment objectives. The
income earned through these investments and the capital appreciation realized is shared by its
unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is a
suitable investment for the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost.

Debt funds are those mutual funds that invested in fixed income securities like bonds and
treasury bills. Gilt fund, monthly income plans, short term plans, liquid funds and fixed maturity
plans are some of the investment options in debt funds. Apart from these categories, debt funds
include various funds investing in short term, medium term and long term bonds.

Debt funds are preferred by individuals who are not willing to invest in a highly volatile equity
market. A debt fund provides a steady but low income relative to equity. It is comparatively less
volatile.
• By structure

Open-ended Funds

An Open-ended Fund is one that is available for subscription all through the year. These do not
have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value (NAV)
related prices.

Close-ended Funds

A Close-ended Fund has a stipulated maturity period, which generally ranges from 3 to 15 years.
The fund is open for subscription only during a specified period. Investors can invest in the
scheme at the time of the new fund offer and thereafter they can buy or sell the units of the
scheme on the Stock Exchanges, if they are listed. The market price at the stock exchange could.
Vary from the scheme's NAV on account of demand and supply situation, unit holders'
expectations and other market factors.

Growth Funds:

The aim of Growth Funds is to provide capital appreciation over the medium to long term. Such
schemes normally invest a majority of their corpus in equities. Growth schemes are ideal for
investors who have a long-term outlook and are seeking growth over a period of time.

Income Funds:

The aim of Income Funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures and Government
securities.

Income Funds are ideal for capital stability and regular income. Capital appreciation in such
funds may be limited, though risks are typically lower than that in a growth fund.
Balanced Funds:

The aim of Balanced Funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents. This proportion affects the risks
and the returns associated with the balanced fund - in case equities are allocated a higher
proportion, investors would be exposed to risks similar to that of the equity market.

Balanced funds with equal allocation to equities and fixed income securities are ideal for
investors looking for a combination of income and moderate growth.

Money market Funds:

The aim of Money Market Funds is to provide easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer short-term instruments such as
Treasury Bills, Certificates of Deposit, Commercial Paper and Inter-Bank Call Money. Returns
on these schemes may fluctuate depending upon the interest rates prevailing in the market.

These are ideal for corporate and individual investors as a means to park their surplus funds for
short periods.
4.2 BASIC THEORIES OF THE TOPIC:

To cater to different investment needs, Mutual Funds offer various investment options. Some of
the important investment options include:

 Growth Option:

Dividend is not paid-out under a Growth Option and the investor realizes only the capital
appreciation on the investment (by an increase in NAV).

 Dividend Payout Option:

Dividends are paid-out to investors under the Dividend Payout Option. However, the NAV of the
Mutual Fund scheme falls to the extent of the dividend payout.

 Dividend Re-Investment Option:

Here the dividend accrued on Mutual Funds is automatically re-invested in purchasing additional
units in Open-ended Funds. In most cases Mutual Funds offer the investor an option of collecting
dividends or re-investing the same.

 Systematic Investment Plan (SIP):

Here the investor is given the option of preparing a pre-determined number of post-dated
cheques in favor of the fund. The investor is allotted units on a predetermined date specified in
the offer document at the applicable NAV.

 Systematic Encashment Plan (SEP):

As opposed to the Systematic Investment Plan, the Systematic Encashment Plan allows the
investor the facility to withdraw a pre-determined amount/units from his fund at a pre-
determined interval. The investor's units will be redeemed at the applicable NAV as on that day.
RATIOS:

There are three main indicators of investment risk that apply to the analysis of stocks, bonds and
fund portfolios. They are standard deviation, yield to maturity(YTM) and modified duration.
These statistical measures are historical predictors of investment risk/volatility and are all major
components of modern portfolio theory (MPT). The MPT is a standard financial and academic
methodology used for assessing the performance of debt, fixed-income and mutual fund
investments by comparing them to market benchmarks.

All of these risk measurements are intended to help investors determine the risk-reward
parameters of their investments. In this article, we'll give a brief explanation of each of these
commonly used indicators.

Standard Deviation:
Standard deviation measures the dispersion of data from its mean. In plain English, the more that
data is spread apart, the higher the difference is from the norm. In finance, standard deviation is
applied to the annual rate of return of an investment to measure its volatility (risk). A volatile
stock would have a high standard deviation. With mutual funds, the standard deviation tells us
how much the return on a fund is deviating from the expected returns based on its historical
performance

Yield to maturity:

Calculation of yield to maturity assume that all coupon payments are reinvested at the same rate
as bond’s current yield, and take in to account the bond’s current market price, par value,
coupon interest rate and term to maturity. Ytm is a complex but accurate calculation of a bond’s
return that can help investors to compare bond’s with different maturities and coupons.

Modified duration:

The term modified duration is based on the concept that security prices and interest rates are
inversely related. It measures the sensitivity of bond prices to the interest rates.
4.3 REVIEW OF RESEARCH ON THE TOPIC:

AUTHOR: JoydeepSen

BOOK TITLE: Vehicles for fixed income investments

LANGUAGE: English

PUBLISHER DATE: 5 Nov 2014

ABSTRACT OF BOOK: it wasfound in their book that different investment avenues are
available to investors by doing theinvestment in mutual funds but they also carry certain risks.
The investors should compare the risk and expected yields after adjustment of tax in various
instruments while taking investment decisions.

AUTHOR: Mohanan

BOOK TITLE: Mutual fund for wealth building

LANGUAGE: English

PUBLISHER DATE: 26 April 2006

ABSTRACT OF BOOK: it was found that Indian mutual fund industry was one of
thefastest growing sectors in the Indian capital and financial markets. The mutual fund
Industry in India has seen dramatic improvements in quantity as well as quality of product
and service offerings in recent years

.
 CHAPTER 5

DATA PRESENTATION, ANALYSIS &

INTERPRETATION
1.Awareness of respondents about mutual fund

Table No.5.1

Response Respondent Percentage

Yes 35 70%
No 15 30%
TOTAL 50 100%

Source – Primary Data(Questionnaire)

Graph No.5.1

Analysis –

In table no. 5.1 mostly 70% people know about mutual fund because they are aware about
mutual fund and only 30% people are not aware about mutual funds.

Inference –

It is showing that maximum people aware about mutual fund because they have knowledge about
mutual fund.
2. Priority of respondents for investing in mutual fund

Table No.5.2

Response Respondent Percentage

Yes 33 65%
No 17 35%
TOTAL 50 100%

Source – Primary Data(Questionnaire)

Graph No.5.2

Analysis –

In table no. 5.2 65% people invested in mutual fund because they are interested and already
invested in mutual fund and res 35% people are not interested and don’t know about mutual
fund.

Inference –

It shows that maximum people are interested in mutual fund but still there are people who don’t
know about mutual fund.
3. Priority factor considered for investment by respondents.

Table No.5.3

Response Respondent Percentage

Mutual fund 10 20%
Insurance 15 30%
Bank FDs 25 50%
TOTAL 50 100%
Source – Primary Data (Questionnaire)

Graph No.5.3

Analysis –

In table no. 5.3 50 % people like to invest in bank FDs. Because they think bank FDs are safe
as compare to other investment. And 30% people like to invest in insurance. Because they are
concerned about their life.

Inference –

It is shows that maximum people give preference in bank FDs because they think bank FDs are
safe as compare to other investment
4. Mutual Fund Is a Risk Free Investment.

Table No.5.4

Response Respondent Percentage

Yes 30 60%
No 20 40%
TOTAL 50 100%

Source – Primary Data (Questionnaire)

Graph No.5.4

Analysis –

In table no. 5.4 60% people said mutual fund is a risk free investment because they are getting
good returns. And 40% people said mutual fund is not risk free investment because .they have
suffered from loss.

Inference –

It is shows that maximum people think that mutual fund are a risk free investment.

5. Comparison of debt fund with other funds.

Table No.5.5

Response Respondent Percentage

Equity fund 30 60%
Debt fund 14 28%
ETF fund 6 12%

TOTAL 50 100%

Source – Primary Data (Questionnaire)

Graph No.5.5

Analysis –

In table no. 5.5.60 % people interested in equity fund because they are getting high returns.
And only 28% peopleare interested in debt funds. Because they are getting good returns with less
risk.

Inference –

It is shows that maximum people are interested in equity fund. Because they are getting high
returns from it.

6. Information of debt schemes by the respondents.

Table No.5.6

Response Respondent Percentage

Yes 32 64%
No 18 36%
TOTAL 50 100%

Source – Primary Data (Questionnaire)

Graph No.5.6

Analysis –

In table no. 5.6 64 % people have information about debt schemes. Because they have
invested in debt schemes. And 36% people don’t know about debt schemes. Because they never
invest in debt schemes.

Inference –

It is shows that maximum people have information of debt schemes because they have invested
in debt schemes.

COMPARISON TABLE NO.5.7

COMPARISON OF DEBTS SCHEMES THROUGH RATIOS:

Debts schemes Standard Yield To Maturity Modified Duration

deviation(SD) (YTM)

1. Kotak Banking 0.23% 8.56% 0.45Yrs.

and PSU DEBT
FUND

2. Kotak Monthly 3.01% 8.63% 4.33Yrs.

Income Plan

3. Kotak Guilt 3.65% 8.00% 7.65yrs.

Investment

4.Kotak Floater Short 0.16% 8.29% 0.08Yrs.

term

5. Kotak Bond 0.89% 9.02% 2.21Yrs.

6. Kotak Liquid 0.14% 8.33% 0.09Yrs.

Source – Secondary Data(fact sheets)

Analysis- In table no.5.7 we see that kotak income monthly plan scheme is performing very
good as compare to other debt schemes of mutual fund.
 CHAPTER 6

CONCLUSION AND SUGGESTIONS

6.1 FINDINGS:
1. In table no. 5.1 mostly 70% people know about mutual fund because they are aware
about mutual fund and only 30% people are not aware about mutual funds.
2. In table no. 5.2 65% people invested in mutual fund because they are interested and
already invested in mutual fund and res 35% people are not interested and don’t know
about mutual fund.
3. In table no. 5.3 50 % people like to invest in bank FDs. Because they think bank FDs are
safe as compare to other investment. And 30% people like to invest in insurance. Because
they are concerned about their life.
4. In table no. 5.4 60% people said mutual fund is a risk free investment because they are
getting good returns. And 40% people said mutual fund is not risk free investment
because .they has suffered from loss.
5. In table no. 5.5.60 % people interested in equity fund because they are getting high
returns. And only 28% people are interested in debt funds. Because they are getting good
returns with less risk.
6. In table no. 5.6 64 % people have information about debt schemes. Because they have
invested in debt schemes. And 36% people don’t know about debt schemes. Because they
never invest in debt schemes.
6.2 CONCLUSIONS:

1. It is showing that maximum people aware about mutual fund because they have
knowledge about mutual fund.
2. It shows that maximum people are interested in mutual fund but still there are people who
don’t know about mutual fund.
3. It is shows that maximum people give preference in bank FDs because they think bank
FDs are safe as compare to other investment
4. It is shows that maximum people think that mutual fund are a risk free investment.
5. It is shows that maximum people are interested in equity fund. Because they are getting
high returns from it.
6. It is shows that maximum people have information of debt schemes because they have
invested in debt schemes.

6.3 SUGGESTIONS & RECOMMENDATION:

1. Kotak Mahindra mutual fund should launch a fund with an aggressive fund objective to attract
customers easily.

2. Frequently fund progress report should be provided to the investors to know about the actual
investment status.

3. The Mutual Fund industry needs to create awareness among investors about the risk involved
in the investment and guarantee of return to make investment financial viable.

4. Training programs are important for giving the information to the Costomers, Such as
Seminars, inductions, investor meet etc. For the orientation of customers of their present
involvement.

5. Investor should have good assets allocations in his portfolio, right investment product should
be there in right proportion. The portfolio management of investor should be precise one to make
investment with minimum possible risk.

ANNEXURE/APPENDICES:
 I.QUESTIONNAIRE

1. Awareness of respondents about mutual fund

2. Priority of respondents for investing in mutual fund

3. Priority factor consider for investment by respondents.

4. Mutual Fund Is a Risk Free Investment.

5. Comparison of debt schemes with other funds.

6. Information of the respondents about the debt schemes of mutual fund

II.BIBLIOGRAPHY
Sr No Author’s Name Title of Book Edition Year Publication

Research New Age International (P)

1 C.R.Kothari 2003-2004
Methodology Ltd.

Business
Aditi kale and
2 Research 2013-2014 Thakur Publication
Bhatikumar
Method

www.google.com

www.assetmanagement.kotak .com