EXECUTIVESUMMARY

Mutual funds gained public attention during 1980s and 1990s when mutual
fund investment touched boom and investors noticed incredible returns.
However, the idea for pooling funds for investment purposes was far back. In
fact, historians are not unanimous about the origin of investment funds.

Some opined that the concept of mutual fund dates back to the very dawn of
commercial history. In the very beginning Egyptians and Phoenicians started
selling shares in vessels and caravans to share the risk involved in these
transactions. Some opined that the investment company started by King
William I in 1822 in Netherlands Although in nineteenth century, many British
investment trusts invested in American stocks, the first American investment
trust was the closed-ended Boston Personal Property Trust created in 1893.
This was the first closed-end fund in the US. It was not until the 1920s that the
US experienced a boom in closed-end investment trusts. The creation of the
Alexander Fund in Philadelphia in 1907 was the first step towards the modern
mutual fund. This fund featured semi-annual issues and allowed withdrawals of
fund on demand.

The great bull markets of the 1920s and 1980s provided fertile soil for mutual
funds. Basically mutual funds in America are the concept of Unit Trust of
Britain. In USA, mutual funds have come a long way since March 21, 1924
when the first mutual fund the Massachusetts Investment Trust (MIT) was
launched in Boston in 1924. This was custodian of the MIT but later on, it
started its own fund in 1924 with Richard Paine, Richard Saltonstall and Paul
Cabot at the helm. Saltonstall with Scudder, Stevens and Clark launched the
first no load fund in 1928. In the same year the Wellington Fund was launched
which was the fund to include stocks and bonds. By 1929, there were 19 open
ended and 700 closed end funds indicating a rising trend in the mutual fund
industry.

1
 CHAPTER-I

INTRODUCTION
CONCEPT OF MUTUAL FUNDS

The idea of mutual fee range was conceived to mobilize savings from the people and
make investments them in a combination of company and government securities. The
mutual fund operators actively manipulate this portfolio of securities and earn profits
thru dividend, interest and capital earnings, that's ultimately exceeded directly to the
fund holders.

Mutual finances are dynamic economic establishments which play a vital rolein an
financial system by using manner of mobilizing financial savings and making an
investment them within the capital marketplace, for that reason, putting in place a link
amongst economic financial savings and the capital market. A mutual fund is a special
sort of institution which acts as an investment conduit. It is largely a mechanism of
pooling collectively the economic financial savings of a large range of investors for
collective investments with an avowed objective of attractive yields and appreciation
in their cost. It is a economic middleman that swimming pools the savings of buyers
for collective investment in a varied portfolio -also called Unit Trust or Open Ended
Trust- a agency that invests the fund of its subscribers in varied securities and in flip
problems gadgets representing stocks inside the ones holdings. They make non-
forestall offering of new stocks at internet asset value and redeem the shares on name
for at internet asset fee determined day by day by means of the

New Encyclopedia Britannica, 1994)1.

Encarta Encyclopedia defines mutual price variety as form of manage Investment

Company that combines the cash of its shareholders and invests those finances in a
wide form of shares, bonds and cash market gadgets (Singh,2006)2.

Thomson Dict which cash subscribed with the aid of manner of many humans is
pooled in a fund, the investment and management of that is mission to the stern jail
provision of take into account deed. The fund is invested in securities on behalf of
subscribers by means of a manage agency. The control agency and the trustee who
ought to be unbiased of each exclusive are events to the be given as proper with deed
which defines their respective obligations inside the course of the subscribers to the

2
consider fund and det (Bansal, 1996) three Mutual fund is a synonym for an
investment enterprise business enterprise in USA and an funding don't forget in UK
and distinctive European international locations. Reilly (1982) four has described
Investment Company to many man or woman that is used to accumulate a set of

According to Michael(1987)five investment business enterprise that mixes the cash of

many people whose dreams are To Pierce (1984)6 -depository or nonbanking
monetary middleman, which acts as an vital car for bringing wealth holders and As
consistent with the Mutual Fund Fact Book (1995)7 business agency that receives
cash from shareholders, invests it, earns returns on it, attempts to make it develop and
concurs to pay the shareholder coins on call for for the The Securities & Exchange
Board of India Sec. 2(m), 19938defines a mutual fund the public or a section of most
of the people below one or extra schemes for making an funding in To sum up, mutual
fund is a financial middleman set up in the form of a agree with sponsored by means
of banks, monetary agencies and exceptional commercial problems with an goal to
mobilize monetary financial savings (essentially household) by way of launching
numerous schemes and making an investment the pooled economic financial savings
in various instruments of capital and cash market.

Exhibit 2.1 depicts the operation waft chart of mutual budget. It can be very clean that
mutual budget gather cash from the investors. The fund is invested in numerous
securities through fund managers, which generates return and subsequently the cross
back is handed

once more to the investors.

Exhibit 2.1

The Mutual Fund Operation Flow Chart

3
 Source: Adapted from Association of Mutual Fund
of India

CHARACTERISTICS OF MUTUAL FUNDS

On the idea of the above definitions of mutual price range, the subsequent
characteristics of mutual price range may be indexed:

i. Common Fund : Mutual Funds acquire scattered small savings proper into a
common fund of widespread amount

ii. Fund Mobilization: Mutual price variety provide an possibility to small traders
to invest their cash in industries which is not feasible in any other case. By way of
fund mobilization sports activities from massive range of folks, mutual funds are
capable of accumulate a large sum which in a while is to be had to industries and
different monetary sports.

Iii. Professional Management: Mutual price range rent professionals for

professionalized portfolio manipulate. Thus, buyers have emerge as the benefit of
expert monetary control services.
4
Iv. Diversification of Risk: Mutual finances invest the accrued price range in
severa securities which incorporates equities, debentures and bonds of severa
companies. The investments are made in fixed and confident go back securities
similarly to cash appreciating securities. Thus the diversification of investments is
assisting the shoppers to lessen the threat and maximize the returns.

V. Disclosure of Facts: Mutual funds divulge all applicable records regarding the
fund and the schemes launched often. The maximum important disclosure is the
internet asset fee (NAV) of numerous schemes.

Vi. Sharing of Return to Investors: The income of mutual budget are dispensed the
numerous buyers in proportion to their holdings after adjusting the working prices.

ADVANTAGES OF MUTUAL FUNDS

The mutual fund industry has grown at an outstanding charge inside the current past.

In fact, there's modern trade in the mutual fund enterprise in view of its

of the important advantages of mutual budget are said underneath:

a. Professional Management

Mutual price range offer expert control as they're managed by way of expert
managers who've the considered necessary capabilities and understanding to
investigate the overall performance and potentialities of groups. They make possible
an organized investment approach, that is rarely feasible for a mean investor who
lacks the information of investment control.

B. Diversification of Risk

Investment includes an detail of chance. However, risk may be varied by making an

investment in mutual funds. Mutual funds invest in a huge sort of securities of some
of businesses. This diversification reduces risks because seldom

5
do all shares decline at the equal time and in the same share. Thus, the investor
obtains a proportion of the average market.

C. Liquidity of Investment

The Securities and Exchange Board of India (SEBI) calls for that mutual funds in
India need to ensure liquidity. Thus, mutual funds offer smooth liquidity to folks
that want to take away their gadgets after a stipulated time frame. The open ended
mutual price range provide immediate liquidity via repurchase facility. Close
ended schemes also offer the facility of repurchase after a specified length further
to list at the stock exchanges.

D. Flexibility

Mutual budget provide an expansion of schemes and traders have the choice of
moving their holdings from one scheme to the alternative. Moreover, the
investments of mutual price range are usually tradable at stock change. Therefore,
each time an investor desires to promote his investment he can achieve this without
problems.

E. Convenience

Investment in mutual fund is easy and convenient. This is due to the truth that
making an investment in a mutual fund reduces paper work in comparison to other
funding avenues and as a result, enables to avoid many troubles consisting of awful
deliveries, behind schedule bills and useless comply with up with agents and
corporations. Mutual fund investments store time and make investment clean and
convenient.

F. Transparency

Mutual price range offer obvious services. They provide normal statistics on the
fee of investment further to disclosure on the funding made by the scheme, the
share invested in each type of security and the fund

6
their investment and if they're no longer happy with the portfolio, they can
withdraw at a brief notice.

G. Low Operating Costs

Mutual budget having large investible finances at their disposal avail economies of
scale. The brokerage rate or buying and selling charge may be reduced
considerably. Thus mutual finances are a as a substitute lots much less high-priced
way to make investments as compared to without delay making an investment
within the capital market and the decreased operating costs manifestly increase the
earnings to be had for shoppers.

H. Safe Investment

As mutual budget are supervised through expert fund managers, funding in

mutualfunds offers safety. Besides this, the law of any u.S.A. Of the us (like SEBI
in India)additionally provides for the protection of investment. Mutual finances are
required to conform with the laid down provisions for thei interest is safeguarded.

I. Tax Benefits

Mutual price range offer the benefit of tax exemption to the traders. In India these
tax benefits are provided below sections 80 L and 88 of the Income Tax Act and
moreover below Wealth Tax Act. Under segment 88, for equity linked schemes
mutual charge range, tax rebate up to twenty% of investment is to be had. Under
section eighty L dividend earnings for mutual fund is tax exempted. Under the
wealth Tax Act, investment in mutual finances is exempted as much as Rs. 5 lakhs.

J. Shareholders Services

Mutual finances offer many beneficial offerings to shareholders like computerized

reinvestment, retirement plans, and document retaining for tax functions. In mutual
price range, it is feasible to reinvest the dividends and capital benefit. Many price
range have systematic withdrawal plans for retired people.

7
K. Better Yields

The pooling of budget form a large range of clients enables mutual finances to
have huge price range at its disposal. Due to the ones massive price range, they
may be in a function to buy cheaper and promote costlier than the small and
medium traders. They are capable of command higher market fees and lower costs
of brokerage. So they offer higher yields to buyers.

L. Providing Research

Each Mutual fund keeps a research crew which continuously analyses the groups
and the industries and recommends the fund to buy and promote a particular share.
Thus, investments are made in reality on the premise of a radical studies. Since
studies entails pretty some time, efforts and expenditure, an individual investor
can't take in this work. By investing in a mutual fund, the investor gets the
advantage of the research finished by means of the mutual fund.

ASSET MANAGEMENT COMPANY (AMC)

An Asset Management Company is required to be appointed via manner of the

sponsor or the trustees of a mutual fund. An AMC is an entity registered under the
Companies Act, 1956 to control the coins invested in the mutual fund and to
perform the schemes of the mutual fund as in keeping with regulations.
Professional money managers are appointed thru the asset manipulate organization
to take care that the traders corpus are invested in profitable securities based on the
chance appetite of the investors and in line with the mutual fund schemes. The
minimal internet well worth of an AMC is 10 crore, of which not much less than
forty% is to be contributed by the usage of the sponsor.

Custodian

A custodian is someone who has been granted a certificates of Registration to

conduct the industrial corporation of custodial services underneath the SEBI
(Custodian of Securities)

8
securities collectively with the gathering of benefits/rights accruing to a consumer.
Custodians are required because of the reality that AMC can deliver attention to
regions such as investment and manipulate of coins.

In brief, a mutual fund is a hard and fast up in the form of a accept as true with,
which has sponsor, trustees, asset control corporation (AMC) and a custodian. The
receive as authentic with is mounted through using a sponsor who's like a promoter
of a company. The trustees of the mutual fund maintain its property for the
advantage of the unit-holders. The AMC, approved by means of the SEBI,
manages the finances thru making investments in diverse types of securities. The
custodian holds the securities of diverse schemes of the fund in its custody. The
trustees are vested with the overall energy of superintendence and direction over
AMC.

9
 CHAPTER-II

Review of Literature

Manasi Kulkarni & Rawal C N (2016) has research the investment sample of
college teachers and concluded that there's huge relationship between income and
annual savings. T test effects revealed that there's no full-size courting between
gender, marital popularity and price of return while it isn't always so inside the case of
annual savings. It clearly referred to that the traders expect affordable proportionate
returns in their investments. Yearly earnings of the respondents and the anticipated
price of return had importance. Safety and tax concession had been the primary
reasons for investment. It also discovered that there's significant relationship among
annual earnings of the respondent and the expected go back on investment. Education
of youngsters and marriage had been the primary cause of making an investment for
each male and girl respondents.

Manikandan (2016) in his study on investment sample found out that there's a
sizeable relationship between the annual earnings and the yearly financial savings of
the respondents. Majority of the respondents recollect safety of the funding as crucial
standards and invested in constant
deposit. It concluded that there's no good sized courting among age and funding of the
respondents.

Suyam Praba R (2016) has executed an empirical observe on gender difference in the
funding sample of retail traders and concluded that gender variations are full-size with
the readiness to take risk among ladies and men. It is concluded that male traders have
better tolerance in their hazard profile than the lady investors, who are not above
average of their hazard profile. It is obvious from the look at that men earn more
whilst as compared to women. The have a look at also reveals that women use internet
and examine magazine more when compared to men whilst guys take self-selection on
funding in their own family whereas women verify that their parents take funding
selections of their circle of relatives. Men make investments best when surplus money
is to be had; even as women have the urge to shop for future encouraging them to

10
invest. Both men and women have ranked safety characteristic as first traits for any
funding street, and men ranked income generation as second and girls ranked capital
appreciation as 2d characteristics for the funding street. Men favored to spend money
on real property assets and ladies preferred to spend money on gold, but whilst
analyzed on their actual investment pattern, this take a look at found out that guys
have invested in financial institution deposit whilst ladies have invested in coverage.

Arti Fattepuria, Sukeshni Telgote & Hemali Choudhary (2015) studied the saving
and funding pattern in non-public college teachers within the metropolis of Wardha
and concluded that bank deposits are taken into consideration as the main road for
funding followed by means of insurance. The look at also revealed that maximum of
the lecturers considered protection for selecting the mode of funding.

Deepak Sood & Navdeep Kaur (2015) studied the saving and investment pattern of
salaried elegance humans in Chandigarh and suggested that there is substantial dating
among age, income and annual financial savings of the buyers. The observe concluded
that there's no huge relationship between education and annual savings.

Jeyakumari J J & Soundavalli SV (2015) studied the funding pattern of college

teachers within the metropolis of Thanjavur. The take a look at carried out with
various funding avenues concluded that
the respondents aren't aware of the stock marketplace, bond and debenture market. All
the respondents have given extra importance to secure funding such as bank deposits,
Insurance, PPF and small financial savings in put up office. College instructors pick
liquidity for their funding, right go back and protection of finances with minimum
hazard and maximum returns.

Sathiyamoorthy C & Krishnamurthy K (2015) studied the impact of education

stage, age, range of circle of relatives participants on choices within the funding
avenues. The observe exhibits that there is no giant distinction
among nativity and data to acquire diverse investment avenues and
also the awareness stage approximately technical aspect of the investments. It also
reveals that maximum of the salaried investors opt for Bank deposits, insurance
guidelines and Government securities because the investment choice and there may be
11
lack of know-how with reference to other avenues like shares, debentures, and mutual
fund and so on. In order to put money into these avenues they should examine
newspapers, journals and articles often associated with inventory marketplace.
Majority of the buyers prefers to invest within the existence insurance, NSC and PPF
for tax saving and hence investment businesses should market various tax saving
schemes through proportion marketplace and their benefits. The suggest fee of diverse
funding avenues suggest that publish workplace deposits, actual property
funding, life insurance schemes Government bonds and public provident
price range are the excessive degree funding portfolio of presidency employees and in
the case of private personnel’ high level portfolios incorporate bank deposits, gold and
silver simplest. Sreelatha Reddy & Lalitha Narayanan (2015) studied the of funding
pattern of running women in twin town and concluded that Provident fund become the
most preferred funding street many of the 17 funding avenues placed earlier
than the respondents. Post office funding takes the second one role. Saving for his or
her youngsters, retirement plans are the primary objectives of the respondents
observed by means of destiny emergencies, protection and educational funding. It also
installed that increase in age does no longer increase the yearly earnings of the
respondents. It also revealed that safety of the tool is the most critical parameter
followed by using the opportunity for consistent increase and proved that threat
aversion is one of the critical motives for searching ahead to safe and steady return
investment.

Vijayachandran Pillai B & Sandhya S (2015) studied the savings and investments
sample a few of the college teachers and concluded that college instructors invest their
money for
meeting their emergency wishes and the subsequent precedence is for profits tax
benefits. Relationship exists between profits and savings, month-to-month profits and
expected rate of go back, age of the respondents and annual savings. Provident Fund,
Life Insurance and Bank deposits take the first three positions in investment avenues.
Only very few instructors are interested by share market. It additionally concluded
that age and earnings have an impact on the saving behavior in instructors.

Ganapathi R (2014) analyzed the investment pattern of Government personnel in

Madurai City and concluded that the affiliation among the age, gender, income and
12
savings dependancy and opinion of respondents in the direction of their funding
pattern is huge while the opinion of the respondents toward their investment sample is
not massive in case of instructional qualification, marital popularity, designation and
size of the circle of relatives.

Rajeswari Jain (2014) analyzed the profits and funding pattern of working women
inside the town of Ahmedabad concluded that fixed deposit, gold jewelry and
coverage schemes are the first 3 preferred selections within the order. Safety, regular
earnings, tax financial savings are the three primary reasons for investing their
income. Investments are made to fulfill their private dreams and meet their financial
requirement. Investments make the respondents experience cozy about their future.

Sudha K, Buvaneswari R, Pothigaimalai P V & Subasri N (2014) studied the

funding pattern of investors on jewelry at Pattukottai town and suggested that there
may be no massive affiliation between age and investment choice of jewellery.
Similarly there is no dating among region of the respondents and exceptional pride of
the jewellery.

Thulasipriya B (2014) carried out an empirical observe on Investment pattern of

Government Employees and pointed out that the government personnel make
investments greater or less in economic property and bodily assets. Significant part of
the personnel have shown eager hobby on brief term profits. Elderly investors select
safe investments together with financial institution deposits at the same time as girls
investors choose the equal for tax advantages. Similarly better income institution has
shown greater interest toward proportion market funding while middle and decrease
income institution prefer bank deposits and insurance because the maximum preferred
investment avenues.

Anand Pawar I (2013) undertaken a observe on the funding sample and behaviour of
traders in capital market within the metropolis of Hyderabad and concluded that the
income element would affect the investment avenues like coverage, savings financial
institution and actual estate investments. Age also plays an essential function in the
decision making method.

13
Bhawana Bharadwaj, Nisha Sharma & Dipankar Sharma (2013) finished a
examine on the income, saving and investment sample of employees on numerous
funding avenues and concluded that funding in share marketplace securities are
considered as quite dangerous due to lack of understanding at the identical. Deposits
with financial institution and put up workplace are highly liquid and marketable.
Majority of the employees are privy to investments and additionally possess a honest
knowledge on securities. Awareness and schooling level had fantastic dating. The
predominant cause for no longer investing in commercial securities is lack of
knowledge and worry of high risk concerned.

Harshavardhan N Bhavsar (2013) studied the saving and investment sample of

school instructors in Ahmednagar and concluded that majority of the woman buyers
select bank deposits. Children education and marriage, tax concession are the
important reason of investments. Gender, marital reputation and annual savings
haven't any significant relationship with the predicted price of go back and no
extensive courting exist among annual income of the investors and the expected rate
of the return.

Kaushal A Bhatt (2013) studied the investment and trading pattern of people dealing
in stock market in the metropolis of Jamnagar and concluded that the investors are
very touchy about the protection of their investment and additionally insist on greater
safety and reliability. Equity marketplace is greater famous amongst investors because
of higher go back however at the same time lack of right information and ambiguity
go away traders forget about this quarter. But buyers with knowledge and willingness
to take chance to some extent are making an investment in Equity marketplace. It
concluded that traders of Jamnagar town invest their money with a balanced view on
safety, reliability and go back on investment.
Sreepriya R & P Gurusamy (2013) studied at the investment sample of salaries
human beings within the district of Coimbatore and determined that majority of the
buyers are knowledgeable as much as university and are aware of the funding
avenues. It established a full-size courting among instructional qualification and
fulfillment level of the buyers. It also concluded that majority of the respondents
prefers long term investment and bank deposits as the most desired investment.
Investors do now not face any issues with their investments.
14
Ujwala Bairagi & Charu Rastogi (2013) performed an empirical examine at the
saving pattern and investment preferences of person family in the city of Pune and
concluded that majority of the respondents had high diploma of awareness in the
direction of bank deposits and actual estates as investment avenues. Gender has no
have an effect on on the extent of recognition. Salaried employees had higher
attention of the funding avenues than another occupational classes. Safety of the
investment and return on earnings were the main goals of the respondents followed by
using liquidity and marketability, capital appreciation and tax benefits. It also
concluded that maximum of the respondents are able to keep drastically from their
annual income and are in a position to make funding.

15
 CHAPTER-III
COMPANYPROFILE

Name of Organisation: Margin Sentiments Advisorys Private Limited

Address of Organisation: 13/1, 3RD FLOOR, RAYAPATI TOWERS, Thambu

Chetty Palya Main Rd, Subhash Nagar, Bhattarahalli, Sannatammanahalli,
Krishnarajapura, Bengaluru, Karnataka 560049

Company Email ID: [email protected]

Company Website: www.marginsentimentadvisorys.com

Company Contact No: +91- 9986503947

Industry Type: Finance Industry

Company Mentor: Mr. Touffiq Kalim

About Organisation:

MS Advisorys is an organisation which provides financial or advisory services

about stock market to the customers.

M S Advisory’s is a financial consultant firm that began in 2015

headquartered in Bangalore. Having more than 5 years of experience in Financial
Service sectors, we offer technology-based services for clients to effectively

16
monitor their portfolio and help them in reaching their financial goals. After years
in the stock market industry, it came to realization that it was near impossible for
the average person to earn from the stock market. Traditional services were simply
too complicated, and expensive to manage.

The creation behind M S Advisory’s was keeping the trader's perspective

in mind. We wanted to offer a service that would require no knowledge of market
or trading experience. Focus in training and educating individuals about global
market and to sharpen their skills to participate in the financial world came alive
with the intention to provide support and guidance to new comers to the trading
world. With the knowledge and years of experience in trading, we have customized
the training programmed and made it simplefor a layman to understand the financial
market. We keep it simple, so traders can focus on creating an amazing profit from
the market.Best of all - it's easy to learn. After seeing an increased need for
Advisory services, we developed one of the only easy and risk-free trading
techniques, allowing retail investors to trade in market. The endeavour is to be a one
stop solution for financial boutique and to be immense help to their investors,
learners and provide help regarding, stock market, advisory services, training and
Investments. Today, we're proud to empower individuals and small investors
around the nation. Everyone deserves a value, and we're excited to see what you
create.

Historical Background:

MS ADVISORY’S Ltd. was incorporated in 2015. Having over 5 years of

involvement with Financial Service parts, we offer innovation-based
administrations for customers to viably screen their portfolio and help them in
arriving at their budgetary objectives. After years in the financial exchange
industry, it came to acknowledgment that it was close to unthinkable for the
normal individual to gain from the securities exchange. Conventional
administrations were basically excessively muddled, and costly to oversee. The
creation behind M S Advisory’s was remembering the dealer's point of view. We
needed to offer a help that would require no information on market or exchanging
experience. Focus in preparing and teaching people about worldwide market and

17
to hone their abilities to take an interest in the money related world woke up with
the goal to offer help and direction to new comers to the exchanging scene. With
the information and long stretches of involvement with exchanging, we have
redone the preparation program and made it straightforward for a layman to
comprehend the budgetary market. We keep it basic, so dealers can concentrate on
making an astounding benefit from the market. Best of all - it's anything but
difficult to learn. In the wake of seeing an expanded requirement for Advisory

administrations, we created one of the main simple and hazard free exchanging
procedures, permitting retail financial specialists to exchange showcase. The
undertaking is to be a one stop answer for budgetary boutique and to be monstrous
assistance to their financial specialists, students and give assistance with respect
to, securities exchange, warning administrations, preparing and Investments.
Today, we're pleased to engage people and little financial specialists around the
country. Everybody merits a worth, and we're eager to perceive what you make.

Nature Of Business:

MS Advisory’s Pvt Ltd is a financial consultant which suggest and render

financial services to client based on their financial situation. We also typically
provide clients/customers with financial products and services based on the license
they hold and training they had. Based on the requirement we customize our
services to cater to the needs of our clients. We may create financial plans for
clients or sell financial products, or combination of both.

MS Advisory’s Pvt Ltd is a financial service providing firm and has various
business activities like—

▪ Information & Training Centre

▪ Foreign Exchange Trading Advise
▪ Indian stock exchange Advise
▪ Insurance Services
▪ Taxation

We are passionate about three things:

18
 ▪ Creating values for customers.
▪ How can we improve our services?
▪ How can we make it simple?

Equities
Portfolio Executive
Manager
(E&C) Commoditi
es
Executive
Portfolio Forex
Manager Market
Founder Executive
s (Int)
HR Assistant
Manager HR

Customer
Assistant
Relationship CRM
Manager
Members:

Mission and Vision of the Company:

Statement: Our mission is to educate the population of the country into financial
literacyby bringing all stake holders in one platform, thereby bringing about a unique
mix of social, education and business cause into one common theme in this
platform, making it win-win for all the stake holders. Our vision is to make every
Indian an "informed" Investor and help achieve his "Financial Goals" by offering
services of credible and qualified Financial Advisors and Distributors.

Mission: To develop meaningful and life long relationship with the clients by
providing them the highest quality services and address every aspect of their
financial related issues. By distributing our energies to research-based innovation,
we want to generate values and deliver better experience to customers. Our great
focus is on achieving sustainable business performance with the help of synergy of

19
 customers, communities and partners by ongoing learning, unlearning and
adaption our mission is to be the first choice of our customers amongothers.

We want to provide quality services and also maintain good relations with
customers. Overall, our main mission is to provide best services to people of our
country so that our country will develop in a right way by using our services and
invest their money on right place

Vision: To be the most trusted and respected professional services firm recognized
by our clients delivering excellent services, which is value for money and more
than their expectations. We want to increase profits at very steady and speedy
face. We focused at lying on positive attitude, sincerity, humility, united
determination.

Overall, our main mission and vision is to provide best services to people of our
country so that we can build trust in minds of customers and also will be able to
make our company as brand.

Organisational Shared Values:

▪ Integrity
▪ Pursuit of excellence
▪ Accountability
▪ Collaboration
Values ▪ Passion

Organisation Objectives:

1. To promote financial literacy among people.

2. To build a community of likeminded people having financial goals to

chattogether, create and share ideas.

20
 3. To make it easy to understand for a layman on how the financial market
functions.

4. To provide customized services based on client objectives.

5. To provide transparency in trading, dealings with brokers and

commissions.

6. To encourage people to trade and learn the importance of compounding.

SWOT ANALYSIS

MS Advisory’s Pvt. Ltd is a company functioning since 2015 in training and

educating individuals about global market and to sharpen their skills to participate
in the financial world.

MS Advisory’s Pvt. Ltd (came alive with the intention to provide support and
guidance to new comers to the trading world. With our knowledge and years of
experience in trading we have customized the training programmed and made it
simple for a layman to understand the financial market.

In this time the company has developed various strengths and taken different
opportunities to grow and be at a position where it is at this point of time.
Similarly, the company has some weaknesses that the company tirelessly works to
overcome. The company has very tactically dealt with the threats that have come
on its way and move forward positively from every speed breaker in the way of its
progress.

The strengths, weaknesses, opportunities and threats that MS Advisory’s Pvt Ltd
faces and has at present can be represented in a better way with the help of a SWOT
table as follows:

21
 Strengths Weakness

• High liquidity for investors. • Newly established in

• Emphasis on building stronger bond India.
with customers i.e. (less brokerage • Growth and
compared to others). Expansion.
• Training and
consulting
PMS
services

Opportunities Threats
• Growing Forex market emerging • Highly competitive environment.
stock markets. • Government policies and global
• Expansion in untapped market. financial crises.
• Expansion in emerging economies.

MARKETING COMPETITION

There is a huge competition in the market for this business. Some of the companies in
competition are given below: -

Invest 24*7: -They are providing Advisory are Services to Customers since 1998.
They provide a range of personalized Insurance and investment advisory services: -
Life Insurance, Medical Insurance, Motor Vehicle Insurance, Mutual Funds, Industrial
and non-industrial, Stock Broking, International Stocks, Custom Package.

DOFORT CAPITAL: - DOFORT CAPITAL in Manyata Tech Park has a wide scope
ofitems and administrations to take into account the shifted necessities of their clients.
The staff at this foundation are affable and brief at giving any help. They promptly
answer any inquiries or questions that you may have. Pay for the item or
administration easily by utilizing any of the accessible methods of instalment, for
example, Cash.
22
Geojit Financial services Ltd.: - Geojit Financial Services Ltd in Jalahalli Cross has a
wide scope of items and/or administrations to take into account the differed
prerequisites of their clients. The staff at this foundation are respectful and brief at
giving any help. They promptly answer any inquiries or questions that you may have.
Pay for the item or administration easily by utilizing any of the accessible methods of
instalment, for example, Checks, UPI.

Money Maker Research Pvt Ltd: - Money Maker Research Pvt Ltd in Indore is one
of the leading businesses in the Share Consultants. Also known for Advisory Services,
Investment Advisory Services, Share Brokers, Stock Brokers, Stock Consultants,
Equity Research, Share Consultants, Financial Advisers and much more.

Capitalvia Global Research: - Capitalvia Global Research Ltd in Indore is one of the
leading businesses in the Investment Advisory Services. Also known for Advisory
Services, Investment Advisory Services, Share Brokers, Stock Brokers, Stock
Consultants,Equity Research, Share Consultants, Stock Market Analysis etc.

There are so many other companies in competition but only few are explained above.

23
 CHAPTER-IV

THEORETICALBACKGROUND

The expansion of mutual fund industry was a continuous phenomenon. The number
of open-ended funds stood at 100 at the beginning of 1950s. The situation of 1929
was gradually improving and as a result in 1954, the mutual fund industry began to
grow in earnest adding some 50 new funds. During 1960s, significant rise was
registered in respect of aggressive growth funds. More than 100 new funds were
established duringthis period.

The bear market of 1969 caused a cooling off period, but the growth in the industry
later resumed. In Australia and New Zealand mutual funds are commonly known as
managed funds or unit trusts. Australia has had managed funds since the second

world

the Capital Issues Committee who until then were blocking attempts to introduce
this type of investment. However, the Portfolio Investment Entity (PIE) regime
which started on October, 2007 relating to effective taxation rate is an attempt to
simplify mutual fund investments in New Zealand.

During 1970s many no-load funds and index funds emerged. In 1971, William
Fouse and John McQuown of Wells Fargo Bank established the first index fund. In
1976, John Bogle introduced the Vanguard Group, a mutual fund powerhouse which
was popular for low cost index funds. During 1980s, and 1990s, the bull market
mania came and, therefore, the previously obscure fund managers become the
leaders. Max Haine, Michael Price and Peter Lynch became much popular in
pooling retail investment form household investors.

In 1993, the exchange traded funds (ETFs) was introduced by State Advisors and the
American Stock Exchange which is a remarkable development in mutual fund
industry worldwide. It was started with standard and poor depository receipts
popularly known as spiders. diamonds, qubes, webs and vipers were added later.

24
These new comers with strange nicknames have exploded in popularity within a
very short time. As on June 2004, investors had poured over $ 178 billion into them.

More recently, the 2003 mutual fund scandals and the global financial crisis of
2008- 2009 put the mutual fund industry in hardship. However, in spite of
these, the story of mutual fund is far from over. The industry is still growing at
a slow rate. In the US alone, there are more than 10,000 mutual funds at
present holding trillions of dollarsof assets under management.

Table 2.1

World-wide Total Net Assets in USD (Millions)

Year Net Assets Change (%)
2001 11,654,866 ------
2002 11,324,129 -2.84
2003 14,048,311 24.06
2004 16,164,793 15.07
2005 17,771,366 9.94
2006 21,808,884 22.72
2007 26,132,316 19.82
2008 18,920,057 -27.60
2009 22,945,623 21.28
2010 24,710,398 7.69
2011 23,796,672 -3.70
CAGR 7.40

Source: Compiled and Computed from Investment Company Institute Fact

Book, 2006, 2011.

It is apparent from Table-2.1 that the total net assets in USD of mutual funds
worldwide has increased during the period 2001-2011 except having negative
growth rate in 2002 (2.84%), 2008 (27.60%) and 2011 (3.70%)

The above data relates to 46 countries of the world. The Table-2.1 shows that
in the year 2001, the total net assets of mutual funds worldwide stood at USD

25
 11,654,866 million, which increased to USD 23,796,672 million in 2011
registering a CAGR of

7.40 percent.

Exhibit 2.2

World-wide Mutual Funds Total Net Assets

30000000
World Wide Net Assets of Mutual Funds (USD Million)

25000000

20000000

15000000
Year
Net Assets

10000000

5000000

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Year

26
Exhibit 2.2 shows that the net assets of mutual funds worldwide have increased
during the period 2001-2011. It was the highest in the year 2007 (26,132,316
million USD). The growth trend was hit by global financial crisis in 2008 and
the net assets declined by 27.6 percent but afterwards the situation was
improving gradually.

At present mutual funds worldwide offer varied schemes with different

investment objective and options. Exhibit-2.3 shows the composition of
worldwide mutual fund assets.

Note: Other/ unclassified includes total funds in Ireland.

Exhibit 2.3 shows that at the end of the first quarter of 2011, 43 percent of
worldwide mutual fund assets were held in equity funds, 22 percent in bond
fund, 11 percent in balanced/mixed fund, 19 percent in money market and the
rest 5 percent in other/ unclassified fund (Source: Investment Company
Institute, News, Q1,2011).

Exhibit 2.4 shows that by region 55 percent of worldwide assets were in the
Americas in the first quarter of 2011, 32 percent were in Europe and 13 percent
were in Africa and the Asia and Pacific region.

27
 CHAPTER-V

RESEARCHMETHODOLOGY

Statement of the problem.

Investors are commonly extra cautious whilst making funding decisions and
presence of rationality. Every investor demands higher return at minimal
threat but whilst markets are it is not feasible to advantage extraordinary
returns. Investors opt for merchandise where the go back is indicated upfront. The
take a look at is taken to apprehend the funding, its advantages, chance and returns
in mutual budget and financial institution deposits. The have a look at is vital so that
traders stay vigilant at the same time as making an investment in economic
property.

Objective of the study

• To study the investors preferences about mutual fund and bank deposit
investment.

• To study the investment pattern, return expected and risk associated with
investment

• To analyse the factors which the investors need to understand at the

time of investment infinancial assets

• To examine the awareness of the respondents towards their investment

behaviour.
• .To understand the considerable factors of the respondents towards the
investment.
• To find the impact of motivational factors towards Investment
behaviour.

28
 Data collection

Primary information: The number one data has been accrued thru random sampling,
from the sample respondents via the time table with the assist of the questionnaire
which turned into distributed online.
Secondary data: secondary records has been accrued from standard reference e-book
and diverse web sites.
Tools of data collection

Data collection tools refer to the devices/instruments used to collect data. The
success of any research depends solely on the data which drives it. In this
study, data is collected through well-structured questionnaire.

Sampling design

Stratified sampling technique is used to select the sample.

Sample size

The sample size is limited to 71.

Tools used for analysis

The data collection tools refer to the devices or instruments used to collect
the data. The success of any research depends solely on the data which drives
it. In this study data is collected through well structured questionnaire.

29
 CHAPTER-VI

DATA ANALYSIS

1. Age

Particulars Respondents

1-18 years 9

19-40 years 56

41 – 60 years 5

Above 60 years 1

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 09 are 1-18 years of
age, 56 are 19-40 years of age, 05 are 41-60 years of age, & 01 are above 60 years of
age.

30
Interpretation:-

From the above chart we can interpret that out of 71 respondents 09 are 1-18 years of
age, 56 are 19-40 years of age, 05 are 41-60 years of age, & 01 are above 60 years of
age.

31
 2. Occupation
Particulars Respondents

professional 09

working 47

Student 15

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 09 are professional,
47 are working & 15 are student.

Interpretation:-

From the above chart we can interpret that out of 71 respondents 09 are professional,
47 are working & 15 are student.

32
 3. Salary
Particulars Respondents

0 – 10,000 43

10,000-20,000 06

20,000-30,000 06

Above 30,000 16

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 43 comes under
salary bracket of 0-10,000/- range, 06 comes under salary bracket of 10,000-20,000/-
range, 06 comes under salary bracket of 20,000-30,000/- range & 16 comes under
salary bracket of above 30,000/- range.

33
Interpretation:-

From the above chart we can interpret that out of 71 respondents 43 comes under
salary bracket of 0-10,000/- range, 06 comes under salary bracket of 10,000-20,000/-
range, 06 comes under salary bracket of 20,000-30,000/- range & 16 comes under
salary bracket of above 30,000/- range.

34
 4. Family type
Particulars Respondents

Nuclear 55

Joint 16

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 55 are of nuclear
family type & 16 are of joint family type.

Interpretation:-

From the above chart we can interpret that out of 71 respondents 55 are of nuclear
family type & 16 are of joint family type.

35
 5. Have you invested in any kind of investment?
Particulars Respondents

Yes 45

No 26

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 45 have invested in
any kind investment & 26 have not invested in any kind investment.

Interpretation:-

From the above chart we can interpret that out of 71 respondents 45 have invested in
any kind investment & 26 have not invested in any kind investment.

36
 6. Which is the most preferable for investment?
Particulars Respondents

Mutual funds 23

Bank fixed deposit 48

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 23 has choosen
mutual funds as preferable investment & 48 has choosen bank fixed deposit as
preferable investment.

Interpretation:-

From the above chart we can interpret that out of 71 respondents 23 has choosen
mutual funds as preferable investment & 48 has choosen bank fixed deposit as
preferable investment.

37
 7. Amount invested?
Particulars Respondents

Less than 1 lakh 41

1 to 2 lakhs 14

2 to 4 lakhs 7

More than 4 lakhs 9

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 41 have invested less
than 1 lakh, 14 has invested 1 to 2 lakhs, 07 has invested 2 to 4 lakhs & 09 has
invested more than 4 lakhs.

Interpretation:-

From the above chart we can interpret that out of 71 respondents 41 have invested less
than 1 lakh, 14 has invested 1 to 2 lakhs, 07 has invested 2 to 4 lakhs & 09 has
invested more than 4 lakhs.

38
 8. Reasons for selecting Mutual fund or bank fixed deposits?
Particulars Respondents

Rate of interest 22

Low risk 36

Tax savings 13

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 22 has selected rate
of interest as reason for selecting Mutual fund or bank fixed deposits, 36 has selected
low risk as reason for selecting Mutual fund or bank fixed deposits & 13 has selected
tax savings as reason for selecting Mutual fund or bank fixed deposits.

Interpretation:-
From the above chart we can interpret that out of 71 respondents 22 has selected rate
of interest as reason for selecting Mutual fund or bank fixed deposits, 36 has selected
low risk as reason for selecting Mutual fund or bank fixed deposits & 13 has selected
tax savings as reason for selecting Mutual fund or bank fixed deposits.

39
 9. What are the factors considered by investors for investment in Mutual fund or
bank fixed deposits?
Particulars Respondents

Preservation on capital 10

Increase in current income 14

Aggressive growth 07

Growth and income 32

Conservation growth 08

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 10 has selected
preservation on capital as the factors considered by investors for investment in Mutual
fund or bank fixed deposits, 14 has selected increase in current income as the factors
considered by investors for investment in Mutual fund or bank fixed deposits, 07 has
selected aggressive growth as the factors considered by investors for investment in
Mutual fund or bank fixed deposits, 32 has selected growth and income as the factors
considered by investors for investment in Mutual fund or bank fixed deposits & 08
has selected Conservation growth as the factors considered by investors for
investment in Mutual fund or bank fixed deposits.

40
Interpretation:-

From the above chart we can interpret that out of 71 respondents 10 has selected
preservation on capital as the factors considered by investors for investment in Mutual
fund or bank fixed deposits, 14 has selected increase in current income as the factors
considered by investors for investment in Mutual fund or bank fixed deposits, 07 has
selected aggressive growth as the factors considered by investors for investment in
Mutual fund or bank fixed deposits, 32 has selected growth and income as the factors
considered by investors for investment in Mutual fund or bank fixed deposits & 08
has selected Conservation growth as the factors considered by investors for
investment in Mutual fund or bank fixed deposits.

41
 10. Which investment is more risky?
Particulars Respondents

Mutual funds 64

Bank fixed deposit 07

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 64 consider mutual
funds as risky investment & 07 consider bank fixed deposit as risky.

Interpretation:-

From the above chart we can interpret that out of 71 respondents 64 consider mutual
funds as risky investment & 07 consider bank fixed deposit as risky.

42
 11. Which sector makes benefit for investors?
Particulars Respondents

Private sector 47

Public sector 24

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 47 consider private
sector can benefit the investors & 24 consider public sector can benefit the investors.

Interpretation:-

From the above chart we can interpret that out of 71 respondents 47 consider private
sector can benefit the investors & 24 consider public sector can benefit the investors.

43
 12. Which type of investment do you prefer?
Particulars Respondents

Short term 24

Long term 47

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 24 prefer short term
investment & 47 prefer long term investment.

Interpretation:-

From the above chart we can interpret that out of 71 respondents 24 prefer short term
investment & 47 prefer long term investment.

44
 13. What is your time horizon of investment?
Particulars Respondents

Less than 1 year 16

1 to 2 years 19

2 to 3 years 13

3 to 5 years 08

5 years and above 15

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 16 prefer Less than 1
year as time horizon of investment, 19 prefer 1 to 2 years as time horizon of
investment, 13 prefer 2 to 3 years as time horizon of investment, 08 prefer 3 to 5 years
as time horizon of investment & 15 prefer 5 years and above as time horizon of
investment.

45
Interpretation:-

From the above chart we can interpret that out of 71 respondents 16 prefer Less than 1
year as time horizon of investment, 19 prefer 1 to 2 years as time horizon of
investment, 13 prefer 2 to 3 years as time horizon of investment, 08 prefer 3 to 5 years
as time horizon of investment & 15 prefer 5 years and above as time horizon of
investment.

46
 14. What are the returns expected from the investment?

Particulars Respondents

Less than 5% 12

5 to 10% 34

10 to 15 % 18

More than 15% 7

Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 12 expect Less than
5% returns as expected from the investment, 34 expect 5 to 10% returns as expected
from the investment, 18 expect 10 to 15% returns as expected from the investment &
07 expect More than 15% returns as expected from the investment.

47
Interpretation:-

From the above chart we can interpret that out of 71 respondents 12 expect Less than
5% returns as expected from the investment, 34 expect 5 to 10% returns as expected
from the investment, 18 expect 10 to 15% returns as expected from the investment &
07 expect More than 15% returns as expected from the investment.

48
 15. Source of Information consider for making investment
Particulars Respondents

Friends / Colleagues 22
Internet/Websites / What’s app 0
Financial News / Annual Reports 0
Market Reference 28
Financial Advisors 12
Family Members 0
Newspaper /Magazines 04
Radio /TV Advertisement 05
Leaflet / Phone calls / Sign Boards 0
Total 71

Interpretation:-

From the above table we can interpret that out of 71 respondents 22 Source of
Information consider for making investment are Friends / Colleagues, 00 Source of
Information consider for making investment are Internet/Websites / What’s app, 00
Source of Information consider for making investment are Financial News / Annual
Reports, 28 Source of Information consider for making investment are Market
Reference, 12 Source of Information consider for making investment are Financial
Advisors, 00 Source of Information consider for making investment are Family
Members, 04 Source of Information consider for making investment are Newspaper
/Magazines, 05 Source of Information consider for making investment are Radio /TV
Advertisement & 00 Source of Information consider for making investment are
Leaflet / Phone calls / Sign Boards.

49
Interpretation:-

From the above chart we can interpret that out of 71 respondents 22 Source of
Information consider for making investment are Friends / Colleagues, 00 Source of
Information consider for making investment are Internet/Websites / What’s app, 00
Source of Information consider for making investment are Financial News / Annual
Reports, 28 Source of Information consider for making investment are Market
Reference, 12 Source of Information consider for making investment are Financial
Advisors, 00 Source of Information consider for making investment are Family
Members, 04 Source of Information consider for making investment are Newspaper
/Magazines, 05 Source of Information consider for making investment are Radio /TV
Advertisement & 00 Source of Information consider for making investment are
Leaflet / Phone calls / Sign Boards

50
 CHAPTER-VII

FINDINGS

1. • Total 70 respondents were analyzed to understand the awareness about

mutual fund investments & bank deposits
a. 63.4% were male respondents and 36.6% were female respondents.

b. 28.50% of respondents were in age group of up to 25 years that is young

generation, 37.60 % were in age group of 25 - 40 years, 27.60
% were in age group of 40 - 50 years and 6.30% were above 50 yearsof age.

c. 29.70 % were HSC passed, 40% were graduates and 30.30 were post
graduates.

d. 42.10% respondents were from income group of Rs. 10,000 - 25,000,

25.20% were in income group of Rs. 25,001 - 40,000, 16.20% in income
range of Rs. 40,001 - 50,000 and 16.50% were having income above Rs.
50,000.

2. An analysis of the data about what are the purposes of respondent for
investing their savings, it was found that majority of male as well as female
respondent give priority to future safety,it is seen that gender wise there is no
difference for purpose behind investment.

3. Investors are having so many options of investment in real assets and

financialassets. Each option differs in it’s risk, returns, liquidity, safety simplicity
etc. Secondly the investors’ purpose while investing also differs significantly
depending upon their age, income and education etc. and hence there lies
significant difference in preference for investment in Mutual Funds and other
Investment options. On analysis of data about investors’ preference, it was
revealed that the fixed deposit was the most preferred investment avenue because
of its safety and liquidity features and at the same time it offers guaranteed
returns.

51
 Mutual fund as an investment option at first three ranks was preferred only by 24%
of the respondents. Only 6% of the investors had given first rank to the mutual fund
in their investment portfolio. But at the same time shares, bonds and commodities
are having lesser preference than the mutual funds. When the responses were
collected from the investors about their preferences in case their income increases
further, it was found that the mutual fund is at 4th rank. After fixed deposit, real
estate and gold, mutual fund is the most preferred investment avenue.

4. There is a difference between awareness of mutual fund as an

investment option and having the detailed technical knowledge about its
functioning.

5. On data analysis it was revealed that majority of the respondents

(77.20%) were aware of mutual fund as an investment avenue. The awareness
was almost same among male and female respondents. More awareness (86.32%
of the young investors are aware) was seen among the youngsters. Less
awareness was observed among middle age group respondents. It was observed
that education is not having much impact on awareness of respondents. Though
majority of respondents were aware of mutual fund investment as one of the
investment options, still only 62.20% of respondents were investing or ready to
invest in mutual fund. This is because non investors feels that it is high risk
Investment Avenue as it is associated with the share market. Youngsters are more
interested for investing in mutual fund as compared to middle age and elder age
respondents. There is no much difference because of income level in interest
shown by respondents for investment in mutual funds. Maximum respondents
were ready to invest up to 25% of their savings in mutual fund.

6. Mutual Funds are gaining the popularity in recent years. Hence more
and more youngsters are entering into mutual fund industry but in elderly age
group the entry in mutual fund industry is reduced. Hence, it can be concluded

52
 that it is the preferred investment option for the youngsters. While investing
70.42% of the youngsters prefer for one time investment option and 60.87% in
elderly age group people prefer SIP as their preferred mode of investment. It is
because the elder age groups are having different priorities for their savings and
investment and as the age increases they are more cautious about their
investments. But youngsters' capacity and willingness to take risk is always
more, hence they preferred one time investment mode. On overall analysis of
brokers’ data, it was found that SIP was the most preferred mode of investment
in Mutual Fund.

7. The data analysis to know the preferred type of mutual fund revealed
equity funds as most preferred type of fund of investors. 70.42% of the
respondents choose equity fund as their preferred type of mutual fund. It is
because maximum of the investors those who are investing in mutual fund are
aware of the risk factor in it and they know that if the risk is taken the can get
more returns also. Hence, they did not find much difference between the debt
fund, hybrid fund and other safe investment avenues available in the financial
market like Fixed Deposits and Bonds. So if investment is to be made in mutual
fund industry, then equity funds was the only type of fund up to their expectation.
But when brokers response were analyzed, they were of the opinion that, hybrid
fund is the most preferred type of fund. It shows the need for the brokers to study
the investors’ preferences.

8. Only 67% of respondents were aware of the risk in mutual fund

investment, 33% of the respondents were not aware of it. Many of the youngsters
were not aware of the risk factors in the mutual fund investment. When it was
analyzed with education, it was observed that highly educated people were more
aware of the riskiness of the mutual fund investment.

9. 100% of the imvestors felt that risk involved in mutual fund

investment is moderate where as 47.80% of the investors felt that there is
moderate risk. And 17.70% of investor felt that there is no risk. So it can be
concluded that many of the investors were well aware of the fact that there is no

53
 much risk involved in mutual fund investment.

10. Mutual Funds invest the pooled funds in various options available in
capital market. As it is associated with capital market and share market it
involves the risk. 76% of the respondents were well aware of this fact in which,
the highly educated and elderly people were more aware of it. This may be due to
more investment experience and obvious education makes a difference while
understanding the minute details about anything.

11. Income level and age does not make any difference in attitude of the
investors while taking complete information before investing in mutual fund. It
was observed that though the maximum of the investors 82.64% take complete
information before investing in mutual funds, educated people are taking more
interest compared to less educated people.

12. Elderly age group people were less interested in analyzing the information
they take before investing. It may be due to lack of knowledge and skills and no
desire to learn the new things in latter age. Out of total 72.15% of the investors
who were analyzing the information, more awareness was seen in lower income
group. It is quite obvious that those who are having little funds to invest are
more cautious about its investment.

13. Various sources like reports by media, publications of mutual fund

companies, consultants, family and friends are available to the investors for
collecting the information about Mutual Fund. By whatever source the
information is collected, selection of type of mutual fund, scheme and company
depends on in depth analysis made by them, which in turn relates to their
attitude and temperament towards the investment objective. The in depth
analysis of mutual fund involves analysis of past performance, current NAV,
rating given by Research Agencies, newspapers & magazines, reputation of
mutual fund company, fund manager, portfolio of the scheme, exit load,
availability of tax benefits, turnover, asset size etc. It is observed that
demographic factors age, income and education are very much significant

54
 while giving the importance to the various factors listed above for mutual fund
investment.

14. The mutual fund investors can add money to the mutual fund scheme in
which they have invested. They can take the decision to withdraw or transfer the
money to another scheme. All these decisions are possible if the investors are
monitoring the performance of Mutual Fund Scheme in which they haveinvested.
It is revealed from the data analysis that the behavior of the investor in
connection with monitoring the performance of the Mutual Fund Scheme is
associated with demographic factors, age, income and education. Youngsters and
elderly age group people were keener in monitoring the performance as
compared to middle age group. It may be so because generally in middle age
group a person is having more responsibilities to handle.

15. It is a normal tendency of a human that when he is having little, then he

is more cautious about it's safety. And this is the reason the young generation's
frequency of monitoring the performance of mutual fund is more as compared to
other age groups. Even education affects the tendency to monitor the
performance. HSC passed and graduates were more regularly monitoring the
performance as compared to post graduates.

55
 CHAPTER-VIII

SUGGESTIONS/RECOMMENDATIONS

• Even though the mutual funds are good source of income, the people lack
awareness and information towards mutual funds. So the following suggestions
were made in order to increase the awareness and development of Mutual Fund
Industry.

1. Even among the investors who invest in mutual funds are unclear about how
they function and how to manage them. So proper information must be provided to
the investors by brokers, AMCs and Mutual Fund Companies in order to increase
the loyalty among the investors.

2. The Mutual Fund companies should also try to change their advertisement
pattern. They should also pay attention towards educating the investors along with
giving advertisement to their schemes launched.

3. Mutual Fund Awareness Program followed by personal services for small

groups of prospective investors will also have the great help in increasing the
awareness among the investors.

4. Fund manager should invest the funds collected in such a manner which can
guarantee the returns to some extent at the same time liquidity must be ensured.

5. Investors are having various sources to get the information about the mutual
fund schemes such as companies' reports, rating by research agencies; newspapers;
audio visual Medias, etc. But at the same time AMCs should see to it that the
information should reach to the investor in simple, jargon free, common man's
language. Instead of giving the technicalities and charts etc. more lucid language
which will be understood by common man should be used.
6. Nowadays Digital India Movement is in full swing. Various Financial
Institutions are giving their application software on the consumer's smart phone to

56
 make them aware of the happening about their investment and also gives them
important alerts. AMFI and SEBI should also develop user friendly software
application which will give the information about the mutualfund industry.

7. Feedback should be taken from the existing investors at regular intervals.

Investors’ complaints should be given first priority. Good quality of portfolio
services should be given to investor as a complimentary service.

8. While launching any new scheme heavy advertisement should be made and
investors’ awareness program should also be arranged along with brokers’
distributors training programs. The Mutual Fund Companies should categorize the
investors on the basis of age and education while planning the schemes.

9. UTI Mutual Funds are regulated by UTI Act. In same manner a common
Act should be enacted to give the legal framework to all the constituents to mutual
fund and legal protection to mutual fund investors.

10. If investors are working in private, public or government sector, AMCs can
arrange for direct directions from the salary of the employees for SIP schemes. This
will definitely help them to get more response.

11. Investors should have a clear objective while investing in mutual fund
scheme and they should choose mutual fund scheme to match that objective.
Otherwise if there is mismatch in objective of investor and mutual fund scheme
selected by the investors, it will affect the expected returns. Along with website
information and expert's opinion investors should study the

prospectus of the schemes which gives complete information about objective of the
scheme, type of the securities in which funds will be invested, fees and expenses
etc.

57
 CHAPTER-IX

CONCLUSIONS

The mutual fund industry has become highly competitive. To become

successful in industry it is a core requirement for its marketers to understand the
buying behavior and preferences of investors. The present study analyses the
mutual fund investment in relation to awareness among the investors about it
and also the perception of investors towards mutual fund investment.

Investors select mutual funds on the basis of regular income, safety,

profitability. Investors prefer growth schemes followed by income schemes.
Experts & consultants & market trends were the main source of information
about mutual funds. Important factors while choosing mutual fund schemes
were reputation of Mutual Fund Company, mutual fund manager, past
performance of the company and tax benefits. Whereas Asset size/total capital
of the mutual fund scheme is given less importance while selecting the mutual
fund scheme. On an average 78 % of the Investors were satisfied with the
performance of the mutual funds they had invested in. The major reason for
unawareness about mutual fund among the investors is lack of information.

Mutual funds are good source of returns. Even though there is ample
opportunity to invest in various types of mutual fund schemes still average
investors are restricting themselves to the conventional options like Fixed
Deposits and gold. Many people hesitate to invest in mutual fund because of
lack of information and its association with share market. People investing in
mutual funds are not clear about how they function. And because of it they
are not able to manage them. So the organizations

which are offering mutual funds have to provide complete information to the
prospective investors relating to mutual funds.

58
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