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““DESCRIPTIVE STUDY OF MUTUALDESCRIPTIVE STUDY OF MUTUAL
FUNDS AND STUDY OF INVESTORSFUNDS AND STUDY OF INVESTORS
PERCEPTI...
Flow Of PresentationFlow Of Presentation
Objectives of StudyObjectives of Study
Timeline of Mutual FundsTimeline of Mutual...
OBJECTIVES OF THE STUDYOBJECTIVES OF THE STUDY
To study the Mutual funds industry in brief.To study the Mutual funds indus...
Timeline of Mutual FundTimeline of Mutual Fund
Phase 1. (1964-87) Establishment andPhase 1. (1964-87) Establishment and
gr...
OVERVIEW OF MUTUAL FUNDOVERVIEW OF MUTUAL FUND
INDUSTRYINDUSTRY
Structure of Mutual Fund IndustryStructure of Mutual Fund Industry
SEBISEBI
SponsorSponsor
TrusteesTrustees
Asset Manageme...
WORKING OF MUTUAL FUNDWORKING OF MUTUAL FUND
 AnandRathi (AR) is a leading full service securities firmAnandRathi (AR) is a leading full service securities firm
provi...
SERVICESSERVICES
 Call n TradeCall n Trade
 Mutual FundMutual Fund
 Depository servicesDepository services
 Commoditie...
CONCEPT OF MUTUAL FUNDCONCEPT OF MUTUAL FUND
 A mutual fund is a professionally-A mutual fund is a professionally-
manage...
Pros and Cons of MutualPros and Cons of Mutual
FundsFunds
AdvantagesAdvantages
Portfolio DiversificationPortfolio Diversif...
Categories of Mutual FundCategories of Mutual Fund
RISK Vs. RETURN
Role of Brokers in a Mutual FundRole of Brokers in a Mutual Fund
They enable the investment managers to buyThey enable the...
CATEGORY BANKS MUTUAL
FUNDS
Returns Low High
Administrative exp. High Low
Risk Low Moderate
Investment options Less More
N...
RISKS ASSOCIATED WITHRISKS ASSOCIATED WITH
MUTUAL FUNDSMUTUAL FUNDS
ACCOUNTING AND VALUATIONACCOUNTING AND VALUATION
Net Asset ValueNet Asset Value (NAV)(NAV)
Calculation of Net Asset ValueC...
RESEARCH METHODOLOGYRESEARCH METHODOLOGY
Research ObjectiveResearch Objective: “: “STUDY OF INVESTORSSTUDY OF INVESTORS
PE...
SAMPLE DESIGNSAMPLE DESIGN
» Sample SizeSample Size:: 100100
» Sampling TechniqueSampling Technique::NONPROBABILITYNONPROB...
DATA ANALYSISDATA ANALYSIS
&&
INTERPRETATIONINTERPRETATION
1.Do you invest in Mutual Funds?1.Do you invest in Mutual Funds?
63%
28%
9%
yes
no
earlier,now
stopped
2. What is your Experience in the2. What is your Experience in the
market?market?
Experience
26%
21%
53%
Less Than a Year
...
3.What is your Trading Preference?3.What is your Trading Preference?
Trading Preference
28%
56%
16%
Speculation
Investment...
4.What is your Average investment4.What is your Average investment
period?period?
Less Than
3 months
3-9 Months 9 months -...
5. Factors influencing the5. Factors influencing the
investment decisions?investment decisions?
32%
10%
6%
20%
30%
2%
0%
1...
6.How much Risk are you willing to6.How much Risk are you willing to
take?take?
0% 20% 40% 60%
Low
High
Moderate
7.How much Appreciation do you7.How much Appreciation do you
expect from your Investments?expect from your Investments?
Ex...
8. What is your preference in8. What is your preference in
Mutual Funds?Mutual Funds?
Preference in Mutual Funds
19%
18%
2...
9.How much loss are you willing to9.How much loss are you willing to
take?take?
53%
35%
12%
0%
10%
20%
30%
40%
50%
60%
Per...
10. Which type of Mutual funds do10. Which type of Mutual funds do
you prefer?you prefer?
Type of Schemes
56%
44%
Closed E...
11.Do you get influenced by the name of11.Do you get influenced by the name of
Company promoting Mutual Funds?Company prom...
12.Do you get influenced by the returns given by12.Do you get influenced by the returns given by
a fund or by the current ...
FINDINGSFINDINGS
 People with less experience were inclined towards investmentPeople with less experience were inclined t...
Limitations FacedLimitations Faced
Some people were not willing to disclose theSome people were not willing to disclose th...
Scope of the StudyScope of the Study
Provide information about prospectiveProvide information about prospective
investors ...
RECOMMENDATIONSRECOMMENDATIONS
 First Aid Kit for New Entrant into SecuritiesFirst Aid Kit for New Entrant into Securitie...
SAMPLESAMPLE QUESTIONNAIREQUESTIONNAIRE
Name: ...…………………….. Occupation: ………………………Name: ...…………………….. Occupation: ………………………...
(3) What is your Experience in the market?(3) What is your Experience in the market?
Less than a yearLess than a year 1-4 ...
(9) How much Appreciation do you expect from your Investments?(9) How much Appreciation do you expect from your Investment...
Thanks for your co-operation
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27314798 presentation-of-summer-training-project-report-on-mutual-fund

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27314798 presentation-of-summer-training-project-report-on-mutual-fund

  1. 1. ““DESCRIPTIVE STUDY OF MUTUALDESCRIPTIVE STUDY OF MUTUAL FUNDS AND STUDY OF INVESTORSFUNDS AND STUDY OF INVESTORS PERCEPTION ABOUT INVESTMENT INPERCEPTION ABOUT INVESTMENT IN MUTUAL FUNDS”MUTUAL FUNDS” SUMEET KHANDELWAL MBA 3rd SEM
  2. 2. Flow Of PresentationFlow Of Presentation Objectives of StudyObjectives of Study Timeline of Mutual FundsTimeline of Mutual Funds Overview of Mutual Fund IndustryOverview of Mutual Fund Industry Working of Mutual FundsWorking of Mutual Funds Company ProfileCompany Profile Concept of Mutual FundConcept of Mutual Fund Types of Mutual FundsTypes of Mutual Funds Role of BrokersRole of Brokers Bank V/S Mutual FundsBank V/S Mutual Funds Risk – TypesRisk – Types Accounting and ValuationAccounting and Valuation Research MethodologyResearch Methodology Sample DesignSample Design Data Analysis and interpretationData Analysis and interpretation FindingsFindings LimitationsLimitations Scope of StudyScope of Study Recommendation and suggestionsRecommendation and suggestions Sample Questionnaire
  3. 3. OBJECTIVES OF THE STUDYOBJECTIVES OF THE STUDY To study the Mutual funds industry in brief.To study the Mutual funds industry in brief. To gain the depth knowledge about the Mutual Funds.To gain the depth knowledge about the Mutual Funds. To study the Investment procedure in Mutual funds.To study the Investment procedure in Mutual funds. To study in brief various types Mutual funds.To study in brief various types Mutual funds. To study the investors Preference regarding InvestmentTo study the investors Preference regarding Investment in Mutual Funds.in Mutual Funds. To know about the factor influencing choices of theTo know about the factor influencing choices of the customer regarding MFcustomer regarding MF Overall study of the perception of investors regardingOverall study of the perception of investors regarding MFMF
  4. 4. Timeline of Mutual FundTimeline of Mutual Fund Phase 1. (1964-87) Establishment andPhase 1. (1964-87) Establishment and growth of Unit Trust of Indiagrowth of Unit Trust of India Phase 2. (1987-1993) Entry of publicPhase 2. (1987-1993) Entry of public sector fundssector funds Phase 3 (1993-96) Emergence of privatePhase 3 (1993-96) Emergence of private sector fundssector funds Phase 4 (1996-2004) Growth and SEBIPhase 4 (1996-2004) Growth and SEBI regulationsregulations Phase 5 (2004 Onwards) Growth andPhase 5 (2004 Onwards) Growth and ConsolidationConsolidation
  5. 5. OVERVIEW OF MUTUAL FUNDOVERVIEW OF MUTUAL FUND INDUSTRYINDUSTRY
  6. 6. Structure of Mutual Fund IndustryStructure of Mutual Fund Industry SEBISEBI SponsorSponsor TrusteesTrustees Asset Management CompanyAsset Management Company Unit HoldersUnit Holders CustodianCustodian The Transfer AgentsThe Transfer Agents
  7. 7. WORKING OF MUTUAL FUNDWORKING OF MUTUAL FUND
  8. 8.  AnandRathi (AR) is a leading full service securities firmAnandRathi (AR) is a leading full service securities firm providing the entire gamut of financial services.providing the entire gamut of financial services.  Founded in 1994 by Mr. AnandRathi.Founded in 1994 by Mr. AnandRathi.  Today has a pan India presence as well as an internationalToday has a pan India presence as well as an international presence through offices in Dubai and Bangkok.presence through offices in Dubai and Bangkok.  AR provides a breadth of financial and advisory servicesAR provides a breadth of financial and advisory services including wealth management, investment banking,including wealth management, investment banking, corporate advisory, brokerage & distribution of equities,corporate advisory, brokerage & distribution of equities, commodities, mutual funds and insurance etc.commodities, mutual funds and insurance etc.
  9. 9. SERVICESSERVICES  Call n TradeCall n Trade  Mutual FundMutual Fund  Depository servicesDepository services  CommoditiesCommodities  IPOsIPOs  InsuranceInsurance  Online ReportsOnline Reports  BondsBonds  TradingTrading  CurrencyCurrency  Premium securitiesPremium securities
  10. 10. CONCEPT OF MUTUAL FUNDCONCEPT OF MUTUAL FUND  A mutual fund is a professionally-A mutual fund is a professionally- managed firm of collective investmentsmanaged firm of collective investments that pools money from many investorsthat pools money from many investors and invest it in stocks, bonds etc.and invest it in stocks, bonds etc.  Mutual fund have a fund manager whoMutual fund have a fund manager who invests the money on behalf of theinvests the money on behalf of the investors by buying/selling stocks,investors by buying/selling stocks, bonds etc.bonds etc.  A Mutual Fund is a trust registered withA Mutual Fund is a trust registered with the Securities and Exchange Board ofthe Securities and Exchange Board of India (SEBI).India (SEBI).
  11. 11. Pros and Cons of MutualPros and Cons of Mutual FundsFunds AdvantagesAdvantages Portfolio DiversificationPortfolio Diversification ProfessionalProfessional ManagementManagement Low CostLow Cost LiquidityLiquidity TransparencyTransparency FlexibilityFlexibility AffordabilityAffordability Well RegulatedWell Regulated DisadvantagesDisadvantages No GuaranteeNo Guarantee Fees and CommissionFees and Commission TaxesTaxes Management RiskManagement Risk
  12. 12. Categories of Mutual FundCategories of Mutual Fund
  13. 13. RISK Vs. RETURN
  14. 14. Role of Brokers in a Mutual FundRole of Brokers in a Mutual Fund They enable the investment managers to buyThey enable the investment managers to buy and sell securities.and sell securities. Brokers are the registered members of the stockBrokers are the registered members of the stock exchange.exchange. They charge a commission for their services.They charge a commission for their services. In some cases, provide investment managersIn some cases, provide investment managers with research reports.with research reports. Act as an important source of marketAct as an important source of market information.information.
  15. 15. CATEGORY BANKS MUTUAL FUNDS Returns Low High Administrative exp. High Low Risk Low Moderate Investment options Less More Network High penetration Low but improving Liquidity At a cost Better Quality of assets Not transparent Transparent BANK V/S MUTUAL FUNDSBANK V/S MUTUAL FUNDS
  16. 16. RISKS ASSOCIATED WITHRISKS ASSOCIATED WITH MUTUAL FUNDSMUTUAL FUNDS
  17. 17. ACCOUNTING AND VALUATIONACCOUNTING AND VALUATION Net Asset ValueNet Asset Value (NAV)(NAV) Calculation of Net Asset ValueCalculation of Net Asset Value NAV =NAV = Market value of investmentsMarket value of investments + Current assets and other assets+ Current assets and other assets + Accrued income+ Accrued income - Current liabilities and other liabilities- Current liabilities and other liabilities - Accrued expenses- Accrued expenses
  18. 18. RESEARCH METHODOLOGYRESEARCH METHODOLOGY Research ObjectiveResearch Objective: “: “STUDY OF INVESTORSSTUDY OF INVESTORS PERCEPTION ABOUT INVESTMENT INPERCEPTION ABOUT INVESTMENT IN MUTUAL FUNDS”MUTUAL FUNDS” » Research DesignResearch Design:: ANALYTICALANALYTICAL » Data Collection MethodData Collection Method: SURVEY: SURVEY » Research InstrumentResearch Instrument:: QUESTIONNAIREQUESTIONNAIRE
  19. 19. SAMPLE DESIGNSAMPLE DESIGN » Sample SizeSample Size:: 100100 » Sampling TechniqueSampling Technique::NONPROBABILITYNONPROBABILITY SAMPLING TECHNIQUESAMPLING TECHNIQUE » Data SourceData Source:: PRIMARYPRIMARY » Sampling MethodsSampling Methods:: TABLES ,CHARTS,GRAPHSTABLES ,CHARTS,GRAPHS » PlacePlace:: JAIPURJAIPUR » Type Of QuestionsType Of Questions:: CLOSE-ENDEDCLOSE-ENDED » Number Of QuestionsNumber Of Questions: 12: 12
  20. 20. DATA ANALYSISDATA ANALYSIS && INTERPRETATIONINTERPRETATION
  21. 21. 1.Do you invest in Mutual Funds?1.Do you invest in Mutual Funds? 63% 28% 9% yes no earlier,now stopped
  22. 22. 2. What is your Experience in the2. What is your Experience in the market?market? Experience 26% 21% 53% Less Than a Year 1-4 Years More Than 4 Years
  23. 23. 3.What is your Trading Preference?3.What is your Trading Preference? Trading Preference 28% 56% 16% Speculation Investment Both
  24. 24. 4.What is your Average investment4.What is your Average investment period?period? Less Than 3 months 3-9 Months 9 months - 2 Year More Than 2 Year S1 23% 10% 42% 25% 0% 50% Investment Period Average Investment Period Series1 23% 10% 42% 25% Less Than 3-9 Months 9 months - More Than
  25. 25. 5. Factors influencing the5. Factors influencing the investment decisions?investment decisions? 32% 10% 6% 20% 30% 2% 0% 10% 20% 30% 40% Factors Influencing Investment Series1 32% 10% 6% 20% 30% 2% Broke News Magzi Frien Self Other
  26. 26. 6.How much Risk are you willing to6.How much Risk are you willing to take?take? 0% 20% 40% 60% Low High Moderate
  27. 27. 7.How much Appreciation do you7.How much Appreciation do you expect from your Investments?expect from your Investments? Expected Rise In Income 48% 32% 12% 8% Upto 15% 15-25% 25-35% More than 35%
  28. 28. 8. What is your preference in8. What is your preference in Mutual Funds?Mutual Funds? Preference in Mutual Funds 19% 18% 20% 9% 15% 17% 2% Equity Balanced Income Money Market ELSS SIP Others
  29. 29. 9.How much loss are you willing to9.How much loss are you willing to take?take? 53% 35% 12% 0% 10% 20% 30% 40% 50% 60% Percentage Less than 5% 5-10% More Than 10% Category Loss Willing To Take
  30. 30. 10. Which type of Mutual funds do10. Which type of Mutual funds do you prefer?you prefer? Type of Schemes 56% 44% Closed Ended Funds Open Ended Funds
  31. 31. 11.Do you get influenced by the name of11.Do you get influenced by the name of Company promoting Mutual Funds?Company promoting Mutual Funds? 23% 56% 21% 0% 10% 20% 30% 40% 50% 60%
  32. 32. 12.Do you get influenced by the returns given by12.Do you get influenced by the returns given by a fund or by the current NAV of a fund?a fund or by the current NAV of a fund? 23% 56% 21% 0% 10% 20% 30% 40% 50% 60% BY NAV RETURNS Both
  33. 33. FINDINGSFINDINGS  People with less experience were inclined towards investmentPeople with less experience were inclined towards investment in the Mutual Funds.in the Mutual Funds.  48% respondents reflected confidence and optimism in the48% respondents reflected confidence and optimism in the context of their investments.context of their investments.  Mutual Funds are more of an investment option than theMutual Funds are more of an investment option than the speculative avenue.speculative avenue.  Income funds and ELSS are among the few top fundsIncome funds and ELSS are among the few top funds  People are not willing to take much risk and bear loss.People are not willing to take much risk and bear loss.  Broker’s advice matters to as much as 32% of the people.Broker’s advice matters to as much as 32% of the people.
  34. 34. Limitations FacedLimitations Faced Some people were not willing to disclose theSome people were not willing to disclose the investment profile.investment profile. The biasedness was being taken care of.The biasedness was being taken care of. The area of sample was decided after taking intoThe area of sample was decided after taking into consideration the major factors likeconsideration the major factors like  Availability of investorsAvailability of investors  Approachability,Approachability,  Time available with investor for interaction, etcTime available with investor for interaction, etc
  35. 35. Scope of the StudyScope of the Study Provide information about prospectiveProvide information about prospective investors .investors . Provide key information about the investor’sProvide key information about the investor’s perception and preferences.perception and preferences. Provides the problems related to distribution ofProvides the problems related to distribution of Mutual Fund.Mutual Fund. Provides the complete information about allProvides the complete information about all close competitors in Mutual Fund investment.close competitors in Mutual Fund investment. Provides the AMC a feedback from customersProvides the AMC a feedback from customers regarding their problems and perception aboutregarding their problems and perception about investing in mutual funds so that they caninvesting in mutual funds so that they can improve their servicesimprove their services
  36. 36. RECOMMENDATIONSRECOMMENDATIONS  First Aid Kit for New Entrant into SecuritiesFirst Aid Kit for New Entrant into Securities MarketMarket  Provision for Class Room training for the newProvision for Class Room training for the new investorsinvestors  Toll Free NumberToll Free Number  Customer Care for general query handleCustomer Care for general query handle  More Appointments of Relationship managersMore Appointments of Relationship managers
  37. 37. SAMPLESAMPLE QUESTIONNAIREQUESTIONNAIRE Name: ...…………………….. Occupation: ………………………Name: ...…………………….. Occupation: ……………………… Phone: ...……………………..Phone: ...…………………….. Investment Presently Held:Investment Presently Held: Please list the value of the assets in your total investments portfolio :( in Rs.)Please list the value of the assets in your total investments portfolio :( in Rs.) Stocks: ______Stocks: ______ Mutual Funds: _______Mutual Funds: _______ Bonds: ______Bonds: ______ Bullion: _______Bullion: _______ Options: ______Options: ______ Govt. Securities:_______Govt. Securities:_______ Real Estate: ______Real Estate: ______ Bank Deposits: _______Bank Deposits: _______ (1(1) Over the next 3-5 years, do you expect your annual income to change?) Over the next 3-5 years, do you expect your annual income to change? IncreaseIncrease DecreaseDecrease Remain the sameRemain the same (2) Do you invest in Mutual Funds?(2) Do you invest in Mutual Funds? YesYes NoNo Earlier, now stoppedEarlier, now stopped
  38. 38. (3) What is your Experience in the market?(3) What is your Experience in the market? Less than a yearLess than a year 1-4 years1-4 years MoreMore than 4 yearsthan 4 years (4) What is your Trading Preference?(4) What is your Trading Preference? SpeculationSpeculation InvestmentInvestment BothBoth (5) What is your Average investment period?(5) What is your Average investment period? Less than 3 months.Less than 3 months. 3 to 9 months.3 to 9 months. 9 months to 2 year.9 months to 2 year. More than 2 year.More than 2 year. (6) Factors influencing the investment decisions?(6) Factors influencing the investment decisions? Advice from BrokerAdvice from Broker Current newsCurrent news Reviews in Financial MagazinesReviews in Financial Magazines Advice from FriendsAdvice from Friends Self EvaluationSelf Evaluation Others___________Others___________ (7) How much Risk are you willing to take?(7) How much Risk are you willing to take? HighHigh LowLow ModerateModerate (8) What is your preference in Mutual Funds?(8) What is your preference in Mutual Funds? A. Equity.A. Equity. B. IncomeB. Income C.C. Money Market FundsMoney Market Funds D. ELSSD. ELSS E.E. Balanced FundsBalanced Funds F. SIPF. SIP G.G. OthersOthers
  39. 39. (9) How much Appreciation do you expect from your Investments?(9) How much Appreciation do you expect from your Investments? up to 15%up to 15% 15%-25%15%-25% 25%-35%25%-35% more than 35%more than 35% (10) How much loss are you willing to take?(10) How much loss are you willing to take? HighHigh ModerateModerate LowLow (11) Which type of Mutual funds do you prefer?(11) Which type of Mutual funds do you prefer? Open Ended SchemesOpen Ended Schemes Closed Ended SchemesClosed Ended Schemes (12) Do you get influenced by the name of Company promoting Mutual Funds?(12) Do you get influenced by the name of Company promoting Mutual Funds? NoNo YesYes (13) Do you get influenced by the returns given by a fund or by the current NAV of a(13) Do you get influenced by the returns given by a fund or by the current NAV of a fund?fund? By NAVBy NAV By ReturnsBy Returns BothBoth
  40. 40. Thanks for your co-operation

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