Investors attitude towards mutual fund

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Summer Internship Project
On
Investor’s Attitude towards Mutual Fund ---With Special
Reference to
Reliance Capital Assets Management Co.Ltd.
For
Submitted To
Marwadi Education Foundation’s Group of Institutions
In partial fulfillment of the requirement of the award for the degree of
Master of Business Administration
Under
Gujarat Technological University
Under the guidance of
Faculty Guide: Company Guide:
Prof. Archana Shah Mr. Sagar Badani
(Assistant Professor) (Relationship Manager)
Submitted By:
Dhaval Manvar
Enrolment No: 138270592083
MBA Semester- III
Marwadi Education Foundation‟s Group of Institutions
MBA Program
Affiliated to Gujarat Technological University
Ahmedabad
July 2014

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DECLARATION
I Dhaval Manvar hereby declare that the report for „Summer Training
Project‟ entitled “Investor‟s Attitude towards Mutual Fund with Special Reference to
Reliance Capital Assets Management Co.Ltd. Is a result of my own work my
indebtedness to other work publications, references, if any, have been duly
acknowledged.
.
Place: Rajkot
Date:
Signature

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PREFACE
MBA is a stepping-stone to the management carrier and to develop good
manager. It is necessary that the theoretical must be supplemented with exposure to
the real environment. Theoretical knowledge just provides the base and it is not
sufficient to produce a good manager that is why practical knowledge is needed.
Therefore the research product is an essential requirement for the
student of MBA. This research project not only helps the student to utilize his/her
skills properly learn field realities but also provides a chance to the organization to
find out talent among the budding managers in the very beginning.
Summer Internship program gives opportunity to relate theory with
practical. The training gives an excellent opportunity to a student to apply and
prove his ability, intellect knowledge belief arrangement, judgment, reasoning by
giving solution to assigned problem which reflects his caliber.
I had the privilege to do my summer Internship at Reliance Mutual
Fund, Rajkot. I have done my project on the topic “Investor Attitude towards
Mutual Fund with special Reference to Reliance Capital Assets Management Co.
Ltd. Where I have taken training as a promotion executive for Reliance mutual
Fund at Integrated Enterprise, Rajkot and also served at Karvy stock Broking Ltd,
Rajkot as a relationship trainee. And for this research I conducted survey of
investors of Rajkot city.

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ACKNOLEDGEMENT
It is with a sense of achievement and pride that I complete my research
report. It has been made possible by the unstinting support of many people. These
few words only convey my formal thanks but cannot convey the depth of my
gratitude to them.
I have to begin by thanking my college dean Dr. Chinnam Reddy sir,
under whose able guidance this work has been carried out His constructive
criticism, patience in going through my work, simplifying suggestions, constant
encouragement and rock solid moral support has gone a long way in helping me
complete my thesis. I am grateful to him for this.
I would like to express my thanks to Faculty guide Prof. Archana Shah
and Company guide Mr. Sagar Badani for sparing their valuable time in going
through my research project and providing constructive invaluable suggestions
and moral support.
I should also thank my parents, friends & all those who have helped me
directly or indirectly in preparing this report.
Place: Rajkot
Date:
Signature

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INDEX
DDD
Sr. No. Particulars Page No.
1. Industry Overview 6
2. Company Overview 15
3. Introduction of the study 30
4. Research Methodology 38
5. Analysis and interpretation of data 49
6. Results and findings 79
7. Suggestions 81
8. Conclusion 83
9. Limitations of the study 85
10. Scope for further research 87
11. Bibliography 89
12. Annexure 91

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INDUSTRY OVERVIEW
INDEX
1. History 8
2. Growth and Development 9
3. Performance and other statistical data 10
4. Market players in the industry 13

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HISTORY OF THE INDUSTRY
In India, the mutual fund industry started with the setting up of the
erstwhile Unit Trust of India in 1963. Public sector banks and financial institutions
were allowed to establish mutual funds in 1987. Since 1993, private sector and
foreign institutions were permitted to set mutual funds.
In February 2003, following the repeal of the Unit Trust of India Act 1963
the erstwhile UTI was bifurcated into two separate entities. The Specified
Undertaking of the Unit Trust of India, representing broadly, the assets of US 64
scheme, schemes with assured returns and certain other schemes and UTI
Mutual Fund conforming to SEBI Mutual Fund Regulations.
As at the end of March 2008, there were 33 mutual funds, which
managed assets of Rs. 5,05,152 crores (US $ 126 Billion)* under 956 schemes.
This fast growing industry is regulated by the Securities and Exchange Board of
India (SEBI).

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GROWTH & DEVELOPMENT OF THE INDUSTRY
A Mutual Fund is the most 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. India has a population of middle
class now estimated around 300 million. A typical Indian middle class family
can have liquid savings ranging from Rs.2 to Rs.10 Lacks today. Investments in
Banks are liquid and safe, but with the falling rate of interest offered by Banks
on Deposits, it is no longer attractive. At best a part can be saved in bank
deposits, but what are the other sources of investment for the common man?
Mutual Fund is the ready answer. Viewed in this sense globally India is one of
the best markets for Mutual Fund Business, so also for Insurance business.
This is the reason that foreign companies compete with one another in setting
up insurance and mutual fund business units in India. Thus, in India an
educated white collar employee provides unlimited scope for development of
Mutual Fund Business in India.
The Indian Mutual fund business has passed through three phases.
1. The first phase was between 1964 and 1987, when the only player was
the Unit Trust of India, which had a total asset of Rs. 6,700/- crores at
the end of 1988.
2. The second phase is between 1987 and 1993 during which period 8
funds were established (banks and one each by LIC and GIC). The total
Assets Under Management had grown to Rs. 61,028/- crores at the end
of 1994 and the number of schemes were 167.
3. The third phase began with the entry of private and foreign sectors in the
Mutual fund industry in 1993. Kothari Pioneer Mutual fund was first fund
to be established by the private sector in association with a foreign fund.

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PERFORMANCE AND OTHER STATISTICAL DATA
1. Growth in the AUM: - (Assets under Management)
Year INR (Billion)
2010 7486
2011 7037
2012 6709
2013 8232
Sept. 2013 8143
2. AUM Composition by Product Category:-
Year Equity Debts Balanced
2011 38% 58% 4%
2012 37% 59% 4%
2013 30% 68% 2%
Sept. 2013 27% 70% 3%

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1. 2011:-
2. 2012:-
3. 2013:-

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4. Sept. 2013:-
3. Industry AUM in March 2014:-
Category AUM In Rs. Crores
Income 458,009
Equity 166,826
ELSS Fund 25,420
Balanced Fund 13,370
Liquid Fund 259,310

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MARKET PLAYERS IN THE INDUSTRY
Many market players available in the Mutual fund industry. The
following market players of the industry.
Sr. No. Name of The Players
1. Reliance Capital Assets Management Company Ltd.
2. Baroda Pioneer Asset Management Company Ltd.
3. Birla Sun Life Asset Management Company Ltd.
4. BNP Paribas Asset Management India Pvt Ltd.
5. BOI AXA Investment Managers Pvt Ltd.
6. Canara Robeco Asset Management Company Ltd.
7. FIL Fund Management Private Ltd.
8. HDFC Asset Management Company Ltd.
9. ICICI Prudential Asset Management Company Ltd.
10. IDBI Asset Management Ltd.
11. Axis Asset Management Company Ltd.
12. IDFC Asset Management Company Ltd.
13. India Infoline Asset Management Co. Ltd.
14. Kotak Mahindra Asset Management Company Ltd.
15. L&T Investment Management Ltd.
16. Tata Asset Management Ltd.
17. UTI Asset Management Company Ltd.
18. SBI Funds Management Private Ltd.
19. Sundaram Asset Management Company Ltd.
20. Sahara Asset Management Company Private Ltd.
21. Union KBC Asset Management Company Pvt Ltd.
22. ING Investment Management (India) Pvt. Ltd.

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23. LIC NOMURA Mutual Fund Asset Management Company Ltd.
24. India Info line Asset Management Co. Ltd.

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COMPANY OVERVIEW
INDEX
1. History 17
2. Growth and Development 18
3. Performance and other key performing data 20
4. Products/ Service overview 24
5. Marketing Department 26
6. SWOT Analysis 28

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HISTORY OF THE COMPANY
The Reliance group founded by Dhirubhai H. Ambani (1932-2002) in
India‟s Largest Private sector enterprise. He is created to have brought about the
equity cult in India in the late seventies and is regarded as an icon for enterprise in
India. He epitomized the spirit “dare to dream and learn to excel”. The Reliance
Group is a Living Testimony to his Indomitable will, single-minded dedication and an
unrelenting commitment to his goal.
Unit Trust of India is the first Mutual Fund set up under a separate act, UTI
Act in 1963, and started its operation in 1964 with the issue of units under the
scheme US-641. In 1978 UTI was delinked from The RBI and Industrial
Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI.
In the year 1978 public sector banks like state Bank of India, Punjab
National Bank, Indian Bank, Bank of India, and Bank of Baroda have set-up Mutual
Funds.
Apart from these above mentioned banks Life Insurance Corporation
(LIC) and General Insurance Corporation (GIC) too have set-up Mutual Fund. LIC
established its mutual fund in June 1989. While GIC had set-up its Mutual fund in
December 1990. The mutual fund Industry had assets under management of Rs.
47,004 crores.
With the entry of private sector funds a new era has stated in Mutual
Fund Industry.

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GROWTH & DEVLOPMENT OF THE COMPANY
Reliance Mutual Fund is the largest player among assets management
companies. It is the first assets management company the Rs. 1 crore-mark in
assets under management and has 72 lakh customers out of 3 crore customers
in the entire Mutual Fund industry in India. Reliance Mutual Fund has grown to
be the leader in the Mutual Fund industry in a short span of less than 5 years.
With assets under Management (AUM) of 1, 18,251 crore, the fund house is a
clear leader with 20% lead over its nearest competition. With more than 90% of
the applicants having less than Rs. 50,000 worth of investment and over 1
million SIP investors, Reliance Mutual Fund proves that it is truly retail-focused
fund house.
Reliance Capital Assets Management is a subsidiary of Reliance
Capital which holds 93.37% of the paid-up capital of Reliance Capital Assets
Management. Especially in its flagship fund Reliance Vision Fund and is
offering 5 year returns of 25.14% as compare to the category average of
21.87%. Another category in the equity diversified fund from the house of
Reliance Mutual Fund is Reliance Growth Fund that has given five year return
of 30.17% against the category average of 25%.
The fund house is also a leader in sector-specific fund and is
running 5 sector funds.
1. Reliance Banking Fund
2. Reliance Diversified Power Sector Fund
3. Reliance Pharma Fund
4. Reliance Media and Entertainment Fund
5. Reliance Infrastructure Fund
Also, Reliance Diversified Power Sector Fund (With NAV of Rs. 78)
is the best performing fund among the top 10 funds in the 5 year category
having yielded returns of 44.04% over the last 5 years.

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According to Reliance Capital Assets Management Chief Executive
Officer Sundeep Sikka, who explained in a media interview at the end of the
crisis that could have possibly insulated itself from a crisis of such mammoth
proportion.
Reliance Assets Management Company has a vision of being a
leading player in the Mutual Fund Business and has achieved significant
success and visibility in the market. At Reliance Capital Assets Management
Ltd, the implementation and observance of ethical processes and policies have
helped the AMC in standing up to the scrutiny of our domestic and international
investors. Appreciating his team for getting the company to the global platform,
Sikka said the company‟s aim is to fulfill the financial dreams of its investors.

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PERFORMANCE AND OTHER KEY PERFORMING DATA
1. Reliance Regular Savings Fund:- (Debt)
Date NAV per Units
(Rs.)
Scheme Return
(%)
Since inception till 28-3-2014 10.0275 6.28
28-3-2013 to 28-3-2014 15.8251 8.28
30-3-2012 to 28-3-2013 14.4051 9.86
31-3-2011 to 30-3-2012 13.2513 8.71
2. Reliance Tax Saver (ELSS) Fund :- (Growth)
Date NAV per Units
(Rs.)
Scheme Return
(%)
28-3-2013 to 31-3-2014 21.4189 33.55
30-3-2012 to 28-3-2013 21.2993 0.56
31-3-2011 to 30-3-2012 21.1349 0.78

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3. Reliance Vision Fund: - (Growth)
Date NAV per Units
(Rs.)
Scheme Return
(%)
28-3-2013 to 31-3-2014 237.3694 24.92
30-3-2012 to 28-3-2013 254.0285 - 6.56
31-3-2011 to 30-3-2012 270.274 - 6.01

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4. Reliance Equity Opportunities Fund: - (Growth)
Date NAV per Units
(Rs.)
Scheme Return
(%)
28-3-2013 to 31-3-2014 41.1727 21.08
30-3-2012 to 28-3-2013 36.4148 13.07
31-3-2011 to 30-3-2012 35.7183 1.95
5. Reliance Small Cap Fund: - (Growth)
Date NAV per Units
(Rs.)
Scheme Return
(%)
28-3-2013 to 31-3-2014 9.3407 43.59
30-3-2012 to 28-3-2013 9.1203 2.42
31-3-2011 to 30-3-2012 9.5113 - 4.11

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PRODUCTS & SERVICE OVERVIEW
1. EQUTIY FUNDS:-
Equity funds are those that invest pre-dominantly in equity share
of companies. There is variety of ways in which an equity portfolio is created
for the investors.
Types of Schemes in Equity Funds:
 RELIANCE Growth Fund
 RELIANCE Long Term Advantage Fund
 RELIANCE Index Fund
 RELIANCE Equity Fund
 RELIANCE Capital Builder Fund
 RELIANCE Tax saver (ELSS) Fund
 RELIANCE Top 200 Fund
 RELIANCE Banking Fund
 RELIANCE Premier Multi-Cap Fund
 RELIANCE Long Term Equity Fund
2. DEBT FUND: -
Debt funds are those that invest pre-dominantly in debt securities.
Since most securities pay periodic interest to investors, these funds are
also known as income funds. However, it must be remembered that
funds investing in debt securities compromise of long term instruments
such as bond issues by central and state government, public sector
organizations, public financial institutions and private sector companies,
and short term instruments such as call money lending , commercial
papers, certificates of deposits and treasury bills.

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Types of Schemes in Debt Funds:
 RELIANCE Income Fund
 RELIANCE Liquid Fund
 RELIANCE Gilt Fund Short Term Plan
 RELIANCE Liquid Fund – PREMIUM PLUS
 RELIANCE Short Term- PREMIUM PLUS PLAN
 RELIANCE High Interest Fund
 RELIANCE Cash Management Fund
 RELIANCE Monthly Income Plan
 RELIANCE Multiple Yield Fund
 RELIANCE Fixed Maturity Plan
3. BALANCED FUND: -
Funds that invest both in equity and debt markets are called balanced
funds. A typically balanced fund would be almost equally invested in both the
markets. The variations are funds that invest pre-dominantly in equity (about
70%) and keep smaller part of their portfolios in debt securities. A balanced
fund also tends to provide investors exposure to both equity and debt markets
in one product.
Types of Schemes in Balanced Fund:
 RELIANCE Children‟s Gift Fund Investment Plan
 RELIANCE Children‟s Gift Fund Savings Plan
 RELIANCE Balanced Fund

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MARKETING DEPARTMENT
Marketing is typically seen as the task of creating, promoting &
delivering goods & services to consumers & business. The American marketing
association offers the following definitions.
“Marketing management is the process of planning & executing the
conception, pricing, promotion & distribution of ideas, goods, and services, to
create exchanging that satisfy individual & organization goals”.
Reliance Mutual Fund do the only two marketing activity to the
successful running for his organization.
1. Promotional Activity
2. Catalogues
1. Promotional Activity:-
After the product has been planned, the channels of distribution of
the product decided and the price structure evolved the next step is to decide
upon the promotional activities that the firm may follow. It has rightly been said,
“Nothing happens until somebody sells something.” This gives the philosophy
of promotional activities. The promotional activities are concerned with.
 Informing the people about products distinctive want satisfying
characteristics and its availability.
 Reminding people periodically about the product and its role.
 Persuading the people / prospective buyers that make people to do what
they might not otherwise do what they don‟t really want to do.
“Promotion is the all inclusive term representing the broad field-
advertising, personal selling and sales promotion.

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2. Catalogues:-
These are printed in form in four to six pages or even more. They give
information about the goods and services in greater details with the help of
figures and illustrations in black and white or colors. Publishers, travel
agencies, tourist departments, life insurance companies, medical firms or
prestigious industrialists etc often use them.
At the last page of brochure, it gives the information related to Reliance
Mutual Fund services offered by them and about all branches

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S.W.O.T. ANALYSIS
S.W.O.T. analysis is a tool for auditing an organization and its
environment. It is the first stage of planning and helps marketers to focus on
key issue. Ones key issues have been identify the feed in to market objective.
 Strength
 Weakness
 Opportunity
 Threats
Strengths
Opportunity
Threats
Weakness
S.W.O.T.
Analysis

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Strengths
 Vast area of services.
 Good return & Less risk
 Well design culture
 Professional Management
 Well Regulated
 Economic of Scale
 Return Potential
 Flexibility
Weakness
 Emerging Market
 Less market potential
.
Opportunity
 To invest in real estate.
 To enter in commodity market.
Threats
 Domestic competitors
 Depends on other companies and their situation.
 Currency Fluctuations

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INTRODUCTION OF THE STUDY
INDEX
1. Background of the study 32
2. Review of literature 33
3. Statement of problem 34
4. Objectives of the study 35
5. Contribution and learning from the project 36

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BACKGROUND OF THE STUDY
Research is done in order to gain some knowledge so that it may aid
in understanding the information gathered on specific topic. It is an academic
activity and it is to be used in technical sense.
Today competition and markets both have expanded. The company
every now and then cannot afford to undertake research activities as research
involves huge cost. The companies undertake research activities when it
perceives that something is going wrong or they‟re in lack of information to
solve a particular problem. In such cases only company undertakes research
activities.
The research activity is totally dependent on managerial problem
and Research Objective.
The research has been done to find out how the investor attitude
towards Mutual Fund with special reference of Reliance Mutual Fund And how
it is better useful for wealth maximization then other financial investment
instrument. The primary survey has been conducted and the data was collected
with the help of questionnaire. The main focus of research was to study
investor attitude are positive or negative towards Mutual Fund.

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REVIEW OF LITERATURE
1. A study on investor‟s attitude towards mutual funds as an investment option
by, Dr. Binod Kumar Singh (Faculty Member, Amity Global Business
School, Patna) International Journal of Research in Management. ISSN
2249-5908 Issue2, Vol. 2 (March-2012): Page No. 62, 64 and 65.
2. Mutual fund: Behavioral Finance‟s Perspective By Ms. Avani Shah & Dr.
Narayan Baser (Faculty member, Shree Chimanbhai Patel Institute of
Management & Research, Ahmadabad) Asia Pacific Journal of Marketing &
Management Review Vol..1 No. 2, October 2012, ISSN 2319-283. Page No.
34, 35,and 36.
3. Financial Planning Journal, Build competency for delivering holistic
advisories by Ranjeet S. Mudholkar (CFP) And Market Movement and
Investor Behavior in Fixed Income Funds. Page No. 37 to 42
4. Performance and Regulation of Mutual Fund in India: An Economic Analysis
By T.S. Somashekar (Faculty Member, Institute for social and economic
change, Bangalore- 560 072) December 2008. Page No. 18,25,29, and 30.
5. India‟s Leading Magazine for wealth – creation (Investors India) a Bajaj
Capital Publication, Mutual Fund Industry‟s Assets scaled to a new high, on
increase in AUM of Liquid Funds by Abhishek Bhagat Page No. 46 and 47.

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STATEMENT OF PROBLEM
Marketing management must be careful not to define the problem too
broadly or too narrowly for the marketing researcher. A marketing manager who
instructs the marketing researcher to “Find out everything you can about first
class air travelers needs”.
Marketing manager has to identify the research problem by using
marketing information system. The marketing manager has to find out your
marketing problem and then decide for his research objective.
In my research, a study on investor‟s attitude towards mutual fund
with special reference to Reliance Capital Assets Management Co.Ltd. In
Rajkot city many investors invest his money in Reliance Mutual Fund, and the
company provides a better service, return, interest, tax benefits, flexibility etc.
The research problem depends on research objective. This study specifically
taken to know why investor invest for his money in Mutual Fund compare to
other investment option. And some of the investor invests for his money to
other investment option like bank, insurance, gold or silver etc. But they are not
aware about Mutual Fund investment in this reason I took this research to
create awareness about Mutual Fund investment in the market as well to know
the investor‟s positive or negative attitude towards Mutual Fund as an
investment option.

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OBJECTIVE OF THE STUDY
 Primary Objectives :-
The study of Mutual Funds market in Rajkot was conducted with the
primary objective to know the reason why do people prefer Mutual Funds,
Specially Reliance Mutual Funds as compared to other investments.
 Secondary Objectives : -
1. To create awareness of Mutual Fund as a good investment
Avenue in a Rajkot city.
2. To know the investment objective, safety level and time period
Of investment
3. To know the share of Mutual Funds in investment portfolio of investors.
4. To study and analysis the various factors on investor attitude towards
Mutual Fund and responsible for the selection of Mutual Fund as an
investment option.

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CONTRIBUTION AND LEARNING FROM THE PROJECT
Contribution:-
1. Many investor not ready to invest his money in Mutual Fund but I explain
the benefits of Mutual Fund of them so, some investor ready to invest in
Mutual Fund. Thus, I give new investors to the company.
2. I also help to company staff to do the operation work and other financial
work.
3. The company do the only two marketing activity 1. Promotional activity
and 2. Catalogues. But only these activities not provide a more investors
to the company so I suggest one more marketing activity that is
advertizing on newspaper.
4. This research report will help to company manager to find out some of
the deviation about limitations of the company and to take some
corrective action.

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Learning:-
1. This project report gave me an opportunity to work in corporate
environment.
2. During my training I learned lots of new things that help me in my future
career.
3. And I met number of people during this time and also worked with them.
4. People in nature are different but if we understand them and give them
best guidance, they really work according to that.
5. I also learn about how the people work in corporate.
6. During my training lots of people help and guide, how to work and basics
of corporate culture.

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RESEARCH METHODOLOGY
INDEX
1. Research design 40
2. Sampling Method 42
3. Sampling Size 44
4. Sources of data 44
5. Data collection method 46
6. Data collection instrument 47
7. Model specification/ Data processing 48

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RESEARCH DESIGN
“It is the preparation of the design and the arrangement of the
condition for the collection and analysis of the data for a research purpose with
economy”
Components of research design
1. Sampling design:-
It is a method of selecting sample to be observed for a given
study. (1% of total population)
2. Observation design:-
Which relates to the condition under which the observations are to be
made?
3. Statistical design:-
It is concern with how many items are to be observed?
4. Operational design:-
It is specifying the procedures of the sampling observation and
statistical design can be carried out.
Types of research design
A) Exploratory research design:-
It is mainly used to explore the insight of the general research
problem. It is also used to find out relevant variable to solve the research
problem. The following methods of conducting exploratory research.
 Secondary Data Analysis
 Expert Survey
 Focus Group Interviews
 Depth Interview
 Case Analysis

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B) Descriptive research design:-
It is conducted to describe the business or market characteristics.
The descriptive research mainly answer who, what, when, where, and how kind
of questions. Descriptive researches are generally used in segmenting and
targeting the market. In this research design understand the demographics and
other characteristics of the population, and also understand the consumer
attitude about any product or services. It can be further classified into cross-
sectional study and longitudinal study.
1. Cross-Sectional Study:-
It is method of collection information from a sample of a population
at only one point of time.
2. Longitudinal Study:-
Longitudinal study involves survey of the same population over a
period of time. The sample remains the same over a period of time.
C) Causal research design:-
It is conducted to identify the cause-and effect relationship between
two or more business (decision) variable. For ex: - a Reliance Mutual Fund
company is working on the assumption that the increase in advertisement
expenditure is going to increase the sales of the company. Although this
assumption seems to be true, a strict validation of the assumption by
conducting a formal research is essentially required.
In all above research design I have use Descriptive Research design
to do research of investor attitude towards Mutual Fund with special reference
of Reliance Mutual Fund.

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SAMPLING METHOD
a) Probability sampling:-
In probability sampling method member are having an equal chance
of participation and the sample will not decide by researcher himself it is called
as a probability sampling method.
Types of probability sampling method
1. Simple random sample:-
Every member of the population has an equal chance of selection.
2. Stratified random sample:-
Population is divided group (ex: - age group) and random samples
are drawn from each group.
3. Cluster (Area) sampling:-
Population is divided into mutually exclusive group. The researcher
has drawn a sample of the group to interview.
b) Non-probability sampling:-
In non-probability sampling member are not having an equal chance
of participation and the sample will be decide by researcher himself it is called
as a non-probability sampling method.
Types of non-probability sampling method
1. Convenience sampling:-
Researcher selects the most accessible population. In other words
the researcher has to select a sample for his group, family, relatives, and for his
friend.

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2. Quota sampling:-
Researcher finds and interviews prescribe number of people in each
of several categories.
3. Judgment:-
Researcher selects population who are good prospects for accurate
information. And the researcher has to use in own skill.
In all above two types of sampling method, I have use in probability
sampling method (Simple Random Sampling Method) to do the research of
Investor attitude towards special reference of Reliance Mutual Fund.

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SAMPLING SIZE
Sample size refers to the number of element to be included in the
study. The nature of research and analysis is an important consideration while
deciding the sample size.
I have taken sample within the area of Rajkot city. Approximately
10,000 investor available in Rajkot city out of them I have taken 100
respondents.
SOURCES OF DATA
The researcher can gather primary data and secondary data or both.
Primary data are data freshly gathered for a specific purpose or for a specific
research project. Secondary data are data that were collected purpose and
already exist somewhere.
Types of primary data
Observation Survey
1. Personal 1. Personal interview
2. Mechanical instrument 2. Telephonic talk
3. Mail

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Types of secondary data
Internal External
1. Company record 1. Customer suggestion
2. Handbook 2. Public
(Distribution system)
3. Journal and Magazines
The research comprised of the mixture of primary data for the survey
and secondary data for the collecting information.

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DATA COLLECTION METHOD
Data collection is a critical part of whole research project. If data are
not collected properly then the whole project would fail to give accurate results
and will not serve the purpose of the study. So proper method has to be used to
collect the data systematically. The various methods of data collection are as
follows.
1. Observation Method:-
In Observation Method the unit under study is observed and the
behavior of them are noted down under various conditions. This method gives
very accurate results but requires a very skillful observer.
2. Survey Method:-
In survey method researcher directly approaches the respondents
and asks their view on the unit under study. The survey method consists of
following sub-methods.
 Interview Method
 Questionnaire Method
I have used survey method (Questionnaire) to do the research of
investor attitude towards Mutual Fund with special reference of Reliance Mutual
Fund.

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DATA COLLECTION INSTRUMENT
Data collection instrument refers to the device used to collect data,
such as a paper questionnaire or computer assisted interviewing system
methodology used to indentify information sources and collect information
during an evaluation.
The essentially the researcher must ensure that the instrument chosen
is valid and reliable. The validity and reliability of any research project depends
to a large extent on the appropriation of instrument.
Types of Data Collection Instrument
1. Sample Survey
2. Questionnaire
3. Interview
4. Observation
5. Case study
I have used Sample Survey and Questionnaire to do the research of
investor attitude towards Mutual Fund with special reference of Reliance Mutual
Fund.

48
MODEL SPECIFICATION / DATA PROCESSING
Data processing is concerned with editing, coding, classifying, charting
and diagramming research data. The essence of data processing in research is
data reduction. Data processing in research consists of five important steps.
They are:
1. Editing of Data
2. Coding of Data
3. Classification of Data
4. Tabulation of Data
5. Data Diagrams
But I have not use model specification / Data processing in this research
report.

50
ANALYSIS AND INTERPRETATION OF DATA
1. Age:-
Particulars No. of
Respondents
Below 25 32
25-35 36
36-45 27
Above 45 05
In above analysis it Cleary shows that most of the respondents are of
working age People. And minimum respondents are of above 45 years age

51
2. Gender:-
Particulars No. of
Respondents
Male 78
Female 22
It shows that majority of the Respondents are of male as compared to female.

52
3. Occupation:-
Particulars No. of
Respondents
Business 27
Professional 18
Agriculturist 07
Housewife 12
Student 19
Retired Person 03
Government Service 09
Others 05
In above analysis most of the respondents are as business class
people and professional and minimum respondent are retired person and
others.

53
4. Annual Income:-
Particulars No. of
Respondents
Not Applicable 31
Below 1 Lacks. 09
1-5 Lacks. 33
5-10 Lacks. 24
Above 10 Lacks. 03
In above diagram of annual income shows that those respondents
who are middle class income earner are maximum that is between 1 to 5 lacks
and simentantily it also shows respondents whose income is above 10 lacks.

54
5. Do you have any investment Plan?
Particulars No. of
Respondents
Yes 83
No 17
In above interpretation of data regarding investment plan, 83% of the
respondents very much clear about the investment plan where as rest do not
have such kind of plan.

55
6. Your preferred investment Avenue:-
Particulars No. of
Respondents
Bank / Fixed Deposit 72
Insurance 56
Mutual Fund 28
Post Office 06
Shares 10
Gold / Sliver 20
Real Estate 18
Others 18
The above analysis show the 72 respondents are risk aware so they
investing in Bank / F.D. whereas those respondents who are investing Mutual
Fund are only 28 out of 100 sample.

56
7. Primary goal of your investment:-
Particulars No. of
Respondents
Education 36
Saving Purpose 78
Retirement Benefits 20
Others 24
The common primary goal of the respondents is saving purpose and
education because many people think about future benefits of investment like
retirement benefits also.

57
8. Do you know about Mutual Fund investment?
Particulars No. of
Respondents
Yes 74
No 26
74% of the investors aware about the Mutual Fund and rest are not aware.

58
9. Sources of information about different AMC of Mutual Funds:-
Particulars No. of
Respondents
Financial Institution 24
Broker Financial 14
Consultant 14
TV Channel 38
Magazine Internet 16
In above analysis regarding source of information about different
AMC, 41% of the respondents common source of awareness regarding Mutual
fund is TV media, Financial broker and consultant plays less important role in
the awareness.

59
10. With which AMC would you like to invest?
In above chart show that the most preferred AMC is Reliance as
compare to others and the less preferred AMC is Birla and rest of the AMCs are
having equal preference.
Particulars No. of
Respondents
Reliance 44
HDFC 14
ICICI 16
Birla 06
UTI 10
Others 12

60
11. Your preferred investment sector in Mutual Fund:-
Particulars No. of
Respondents
Equity Fund 38
Balance / Hybrid Fund 22
Debts Fund 24
It depicts that 45%, 26% and 29% of the respondents prefer Equity
Fund, Balance Fund and Debts Fund Respectively.

61
12. You prefer to invest in Mutual Fund because:-
Particulars No. of
Respondents
It is a good investment instrument. 40
It is a better to invest Mutual Fund rather than investing directly in
shares.
18
They give assured and consistent return. 18
They provide high return with low risk. 20
Mutual Fund provides the benefit of cheap access to expensive
stock.
16
Mutual Fund Diversified risk of the investor by investing in a
basket of assets.
18
Investor invest his money in Mutual Fund because many investor say
that the Mutual Fund is good financial instrument, it provide more return
compare to shares, consistent return with low risk and Mutual Fund diversified
risk by investing a basket of assets.

62
13. What do you look before investing in a particular Mutual Fund?
Particulars No. of
Respondents
Past Performance 34
Ratings 16
Assets Management Companies 20
Expert Advise 30
In above graph it shows that investors before investing his/her money in
mutual fund they look company‟s past performance and take some advise of
financial expert and some the investor give preference to ratings and Assets
Management company.

63
14. Since how many years you are investing in Mutual Fund?
Particulars No. of
Respondents
Not Investing 50
Less than 1 year 14
Between 1 to 3 year 14
Between 3 to 5 year 08
More than 5 year 14
According to this analysis 50% Respondent not investing his money in
Mutual Fund and out of 50% majority of the investor preferred to invest for long
term and medium term weighted given for short term that is 0 to 3 years.

64
15. Are you interested to invest money in Reliance Mutual Fund?
Particulars No. of
Respondents
Yes 44
No 56
In above analysis regarding preference for Reliance Mutual Fund, 56%
of the investors are having negative preference for the Reliance Mutual Fund
as a source of Investment Avenue.

65
16. Your Preferred Reliance Mutual Fund schemes:-
Particulars No. of
Respondents
Equity Funds:-
1. Large Cap Fund.
2. Mid Cap Fund.
3. Small Cap Fund.
32
08
10
26
Debts Fund:-
1. Reliance Regular Saving Fund.
2. Reliance Dynamic Bond Fund.
16
14
06
Hybrid or Balanced Fund. 06
Not Investing 46
In above anaysis clearly show that 46% of the investors are not investing,
where as 32% are an Equity, 16% are Debts and 6% Hybrid.

66
Most of the investor preferred Small Cap Fund in the anaysis of preferrence
for Equity Fund.
Most of the investor preferred Regular Saving Fund in the anaysis of
preferrence for Debts Fund.

67
17. What is your expected return?
Particulars No. of
Respondents
5-10% 12
10-15% 44
15-20% 12
Above 20% 26
According to this chart regarding the expected return of the investor,
47% of the respondents are expecting the range of 10-15%. Which is moderate
return, where as 27% are expecting quite high return that is above 20%.

68
18. Your preferred investment pattern in Mutual Fund:-
Particulars No. of
Respondents
Monthly (SIP) 46
Once in Six Month 06
Once in a Year 08
Very Rare 02
The most of the investors preferred a systematic investment plan
because they don‟t like a lump sum investment and some of the respondents
like yearly investment.

69
19. Does Reliance Mutual Fund investment provide a more return as
Compare to other investment option?
The above analysis shows that 32% of the respondents somewhat
agree, where as 16% of the respondents are neutral and 28% are strongly
Agree.
Particulars No. of
Respondents
Strongly Agree 14
Agree 08
Somewhat Agree 16
Disagree 08
Strongly Disagree 04

70
20. Anticipation of Risk:-
Particulars No. of
Respondents
Minimum 48
Moderate 22
Maximum 22
In this analysis many 52% investors are risk aware, so they prefer
minimum risk and maximum return.

71
21. Your preferred Mutual Fund factors:-
Particulars No. of
Respondents
Tax Benefits 18
Regular Income 20
Reduction of Risk 16
Better Return & Security 30
Diversified 06
The investor invest his money in Mutual Fund because, most of the
investors preferred better return, security and regular income, where as less
preference given to diversification.

72
22. What advantage do you find when you invest in Reliance Mutual
Fund?
Monetary Advantages No. of
Respondents
Non- Monetary
Advantages
No. of
Respondents
Return Potential 20 Professional Mgt. 24
Low Cost 18 Diversification 14
Liquidity 14 Transparency 12
Choice of Scheme 18 Flexibility 26
Tax Benefits 12 Well Regulated 16
Economic of Scale 14 Simplicity 24

73
Non-Monetary Advantages are more as compare to monetary Advantages.

74
23. Are you satisfied with the return provided by Reliance Mutual Fund?
Particulars No. of
Participates
Fully Satisfy 06
Satisfy 20
Somewhat Satisfy 14
Non-Satisfy 04
In above graph of investor response regarding return provided by
Reliance Mutual Fund clearly show that majority investor are satisfy regarding
return provided by company and few investor are somewhat satisfy or non-
satisfy.

75
24. Rate the following factors with respect to Reliance Mutual Fund.
Particulars Very
High
High Moderate Low Very
Low
Liquidity 04 10 16 14 00
Return 06 10 16 12 00
Risk 02 08 30 04 00
Expenses 02 02 30 08 02
Price 02 08 32 08 00
Diversification 06 04 30 04 00
Brand Image 10 04 14 04 00
Investments Option 14 14 16 00 00
Management Response 14 18 12 00 00
1. Liquidity :-
2. Return:-

76
3. Risk:-
4. Expenses:-
5. Price:-

77
6. Diversification:-
7. Band Image:-
8. Investment Option:-

78
9. Management Response:-
Majority of the respondents are rating Risk, Expenses, Price and
Diversification as moderate factors. And Liquidity, Return, and Investment
option‟s rating are also a moderate level. Whereas Brand Image and
Management Response very high level.

80
RESULT AND FINDING
The Study was aimed at identifying the level of attitude towards the
Mutual Funds. The investment is different from investor to investor, the study shows
that out of 100 respondents the Majority people aware about Mutual Fund, and 50%
respondents have a positive attitude because they say….
1. Mutual Fund is a good investment instrument.
2. It is a better to invest Mutual Fund rather than investing directly in shares.
3. Mutual Fund Diversified risk of the investor by investing in a basket of
assets.
 The most preferable AMC for investment, according to this study is
Reliance, ICICI and HDFC.
 And 50% respondents have a negative attitude towards the Mutual Fund
because they say….
1. Mutual Fund investments are subject to market risk.
2. Anticipation of minimum risk.
3. Mutual Fund does not provide return, according to the expectation.
The study shows that majority of respondents are still confused about the
mutual funds, it has been observed that majority of the respondents having lack of
awareness about the various function and benefits of mutual funds. Thus, majority of
the people preferred Bank FD and insurance as a safe financial Instrument.

82
SUGGESTION
1. Still there are many people don‟t know about mutual fund and it‟s concept
so, for that purpose investor awareness programme is needed.
2. As some of the people think that Mutual Fund is risky so the company
should show people the advantage of the Mutual Fund and how it is better
than the other investment avenue.
3. The company needs some clear rules and regulation to boost more
investments and to encourage more investors to invest in to the company.
4. For investors to continue with their investment in Mutual Fund, industry
needs to give at least stable return as compare to their benchmark.
5. For increase the investors to invest in mutual fund an aggressive advertizing
campaign should be there to encourage more people.
6. For professional management of investment of an individual person,
company should convince the potential investors, that how Mutual Fund is
better than other financial investment instrument.
7. The company should show how Mutual Fund fulfills all long term financial
goal of an individual through the combination of various scheme of Mutual
Fund.

84
CONCLUSION
Reliance Mutual Fund has good reputed organization in the market.
Objective of survey is to know the investor attitude towards Mutual Fund with
special reference of Reliance Mutual Fund. I have already discussed the
objects in the survey.
For the survey purpose I have taken sample size of 100 and most of
the investors are having negative attitude towards Mutual Fund, But some of
the investors having a positive attitude towards Reliance Mutual Fund.
Lastly I can say that Reliance Mutual Fund has bright future for the
coming years. And I hope this Marketing Research Report will help them taking
right decision and fulfill their investor‟s demand.

86
LIMITATION OF THE STUDY
1. Narrow conception of the research. Many managers think that marketing
research is fact finding operation. They except that the researcher has to do
all the tasks regarding sampling, questionnaire, facing management without
classifying the problems.
2. Due to limitation of time and cost constraints a sample size of only 100
individual investors is taken.
3. Marketing Research is time consuming and expensive, marketing managers
are disappointed when marketing research costs too much or takes too
much time.
4. Data Analysis and interpretation done may not be that strong due to small
sample and random sampling method.
5. Poor framing of the problem sometimes the objectives and problems
regarding the research will not be exactly defined or clarify at that time it‟s
create a change of meaning.
6. This exploratory research is done focusing on the individual investors of
Rajkot city in Saurashtra region and therefore findings and suggestions
given on the basis of this research are cannot be considered for the entire
Mutual Fund industry.
7. There is a chance of error due to sampling procedure undertaken.

88
SCOPE FOR FURTHER RESEARCH
1. In This research report I have use only the questionnaire to collect the
sample but it is possible to use interview, observation method and case
study method as a tool of Data collection.
2. I do the survey in Rajkot city only but it is possible to take sample outside of
Rajkot city like district wise, state wise.
3. I taken only 100 investors survey and in this survey not provide a proper
result but it is possible to take more than 100 respondents to provide a
proper result and findings.
4. I have used only descriptive research design but it is possible to use
exploratory research design and causal research design.
5. I have use only simple random sampling method to do the survey but it is
possible to use stratified random sample and cluster sampling.
6. I do the survey to all the people who are not investing his / her money in any
financial instrument but it is possible to do the survey only those people who
are investing his / her money in particular financial instrument.

90
BIBLIOGRAPHY
1. Industry Website:-
www.mutualfund.com
2. Company Website:-
www.reliancemutual.com
3. Research Method.pdf
4. Marketing Management:-
Publishing House: - Pearson Education (India)
Author: - Philip Kotler
Edition: - Eleventh Edition
Page Number: - 130 to 140
5. Research Methodology:-
Publishing House: - Dorling Kindersley (India) Pvt. Ltd.
Licensees of Pearson Education in
South Asia.
Author: - Naval Bajpai
Page Number: - 25 to 35, 96

91
ANNEXURES
1. Name……………………………………………………………………………
2. Age:-
o Below 25
o 25-35
o 36-45
o Above 45
3. Gender:-
o Male
o Female
4. Occupation:-
oBusiness
oProfessional
oAgriculturist
oHousewife
oStudent
oRetired Person
oGovernment Service
oOthers
5. Annual Income:-
o Below 1 Lacks.
o 1-5 Lacks.
o 5-10 Lacks.
o Above 10 Lacks.
6. Do you have any investment plan?
o Yes
o No

92
7. Your preferred investment Avenue:-
o Bank / Fixed Deposit
o Insurance
o Mutual Fund
o Post Office
o Shares
o Gold / Silver
o Real Estate
o Others
8. Primary goal of your investment:-
o Education
o Saving Purpose
o Retirement Benefits
o Others
9. Do you know about Mutual Fund investment?
o Yes
o No
10. Sources of information about different AMC of Mutual Funds:-
o Financial Institution
o Broker Financial
o Consultant
o TV Channel
o Magazine Internet.
11.With which AMC would you like to invest?
o Reliance
o HDFC
o ICICI
o Birla
o UTI
o Others

93
12.Your preferred investment sector in Mutual Fund:-
oEquity Fund
oBalance / Hybrid Fund
oDebts Fund
13. You prefer to invest in Mutual Fund because:-
o It is a good investment instrument.
o It is a better to invest Mutual Fund rather than investing
directly in shares.
o They give assured and consistent return.
o They provide high return with low risk.
o Mutual Fund provides the benefit of cheap access to
expensive stocks.
o Mutual Fund Diversified risk of the investor by investing
in a basket of assets.
14. What do you look before investing in a particular Mutual Fund?
o Past Performance
o Ratings.
o Assets Management Companies
o Expert Advise
15. Since how many years you are investing in Mutual Fund?
o Less than 1 year
o Between 1 to 3 year
o Between 3 to 5 year
o More than 5 year
16. Are you interested to invest money in Reliance Mutual Fund?
o Yes
o No

94
17. Your preferred Reliance Mutual Fund schemes:-
o Equity Funds:-
1. Large Cap Fund.
2. Mid Cap Fund.
3. Small Cap Fund.
o Debts Funds:-
1. Reliance Regular Saving Fund.
2. Reliance Dynamic Bond Fund.
o Hybrid or Balanced Fund.
18. What is your expected return?
o 5-10%
o 10-15%
o 15-20%
o Above 20%
19.Your preferred investment pattern in Mutual Fund:-
o Monthly (SIP)
o Once in six month
o Once in a year
o Very Rare
20.Does Reliance Mutual Fund investment provide a more return as
compare to other investment option?
o Agree
o Disagree
o Strongly Agree
o Strongly Disagree
o Somewhat Agree
21.Anticipation of Risk:-
o Minimum
o Moderate
o Maximum

95
22.Your preferred Mutual Fund factors:-
o Tax Benefits
o Regular Income
o Reduction of Risk
o Better Return & Security
o Diversified
23.What advantage do you find when you invest in Reliance Mutual Fund?
o Professional Management
o Diversification
o Return Potential
o Low Cost
o Liquidity
o Transparency
o Flexibility
o Choice of Scheme
o Tax Benefits
o Well Regulated
o Economic of Scale
o Simplicity
24.Are you satisfied with the return provided by Reliance Mutual Fund?
o Fully Satisfy
o Satisfy
o Somewhat Satisfy
o Non-Satisfy

96
25.Rate the following factors with respect to Reliance Mutual Fund.
Particulars High Low Moderate Very
High
Very
Low
Liquidity
Return
Risk
Expenses
Price
Diversification
Brand Image
Investments Option
Management Response
Anything you would like to add about Mutual Fund. You are welcome:-
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………

Investors attitude towards mutual fund

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