The report shows the investors expectation and perception towards Mutual Funds in Varanasi

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SUMMER TRAINING PROJECT REPORT
ON
“Investor expectation and perception towards
Mutual funds in Varanasi”
At
Under the Supervision
Of
MANU RAJ RAI
(Area Manager)
Shambhunath Institute of Management
Allahabad
Submitted to: Submitted by:
Mr.Malay Tiwari Karan Gujrati
(Head of Department) (Roll no. 1572770011)

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Declaration
I hereby declare that this project reportprepared in lieu of the compulsory
paper for the partial fulfillmentof Managementof BusinessAdministration is
my original work which I have submitted in Stock HoldingCorporationof India
Ltd. To my guideMr. Satya Singh, on topic –
“Investor expectationandperception towardsMutualfundsin Varanasi”,
No partof it has been submitted to any other university or organization.
All the information and datain my project are authentic to the best of my
knowledgeand taken from reliable sources.
Karan Gujrati

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ACKNOWLEDGEMENT
“The satisfaction euphoriathat accompaniesthe successfulcompletion of any
work would be incompleteunlesswe mention the nameof the person, who
madeit possible, whose constant guidanceand encouragementserved asa
beckon of light and crowned our efforts with success.” I consider it a privilege
to express through the pages of this report, a few wordsof gratitudeand
respect to those who guided and inspired in the completion of this project.
I am deeply indebted to Mr. Manu Raj Rai, (AreaManager), SHCIL Varanasi,
for giving me the opportunity to undergo Summer Trainingin the esteemed
organization.
I would also like to thank Mr. Satya Singh, my mentor duringmy training
period, for his continuousguidancethroughoutthe tenureof the training and
exposingme to differentactivities related to the trainingand encouragingme
to get actively involved.
I am deeply indebted to my faculty members of Shambhunath Institute of
Management, Allahabad whose continuousguidanceand supportwas
inspirational.
I am also thankfulto my friends, other internsand all the peoplewho helped
me in the successfulcompletion of my project.
At last I expressmy gratitude to my Parentsfor their continuousand
unconditionalsupportthroughoutthe project.

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Table of Contents
 Declaration
 Acknowledgement
S. No. Description Page No.
1. Overview of the financial market 5
2. Origin of Indian Stock Market 8
3. National Stock Exchange 10
4. Bombay Stock Exchange 12
5. Company Profile 15
6. SWOT Analysis 19
7 Executive Summary 21
8. Introduction to the investment avenues 23
9. Risk Return Matrix 32
10. Overview of Problem 35
11. Competitors of SHCIL 36
12. Karvy Securities 37
13. H.D.F.C. 39
14. Angel Broking 41
15. Kotak 43
16. Religare 45
17. Sharekhan 47
18. Anand Rathi 49
19. ICICI 51
20. Broker charges 53
21. Objectives 54
22. Research Methodology 55
23. Questionnaire 57
24. Data Interpretation 59
25. Findings & Interpretations 69
26. Learning & Experience 70
27. Recommendation 71
28. Limitation 72
29. Conclusion 73
30. Bibliography 74

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Overview of the financial market
Financial Market
A Financial Marketis a location where buyersand sellers meet to exchange
goods and services at prices determined by the forces of supply and demand.
A financialmarket may be a physical location or a virtualone over a network
(for example, the internet). Here, peoplewho have a specific good or service
they want to sell (the supply) interactwith people who wish to buy it
(the demand).
Prices in a financialmarket are determined by changes in supply and demand.
If market demand issteady, an increase in marketsupply results in a decline
in marketprices and vice versa. If market supply issteady, a rise in demand
results in a rise in marketprices and vice versa.
Producersadvertisegoodsand services to consumer in a financialmarket in
order to generate demand. Also, the term “market” is closely associated with
the financialassets and securities prices (for example, the stock market and
the bond market).
It facilitates transactions between buyersand sellers, as well as between
producersand consumers. Marketsexperiencefluctuationsand priceshifts
resulting from changes in supply and demand. Thesechanges resultsfrom
fluctuationsin many variablesincluding, but not limited to, consumer
preferencesand perceptions, the availability of materials and external socio
political events(for example, wars, governmentspendingand
unemployment).
In other wordswecan say that it is a market in which peopleand entities can
trade financialsecurities, commodities and other fungible items of valueat
low transaction costs and at pricesthat reflect supply and demand. Securities
includestocks and bonds, and commodities includepreciousmetals or
agricultural goods

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Functions of Financial Market:
Wecan broadly dividefunctionsas follows:
Financial Functions:
 Providingthe borrower with fundsso as to enable them to carry out
their investmentplans.
 Providingthe lenderswith earning assets so as to enable them to earn
wealth by deployingthe assets in production debentures.
 Providingliquidity in the market so as to facilitate tradingof funds.
 Providingliquidity to commercial bank.
 Facilitating credit creation etc.
FUNCTION
FINANCIAL
FUNCTION
INTERMEDIARY
FUNCTION

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Intermediary Functions:
The intermediary functionsof financialmarketsincludethe following:
 Transfer of resources:Financialmarketsfacilitate the transfer of real
economic resourcesfrom lenders to ultimate borrowers.
 Enhancing income: Financial marketsallow lendersto earn interest or
dividend on their surplusinvisiblefunds, thuscontributingto the
enhancementof the individualand thenational income.
 Productiveusage:Financialmarketallow for the productiveuseof the
fundsborrowed. Theenhancingthe income and the gross national
production.
 Capitalformation: Financialmarketprovideachannel through which
new savings flow to aid capital formation of a country.
 Pricedetermination: Financialmarketsallow for the determination of
price of the traded financial assets through the interaction of buyersand
sellers. They providea sign for the allocation of fundsin the economy
based on the demand and to the supply throughthe mechanism called
price discovery process.
 SaleMechanism: Financialmarketsprovideamechanism for selling of a
financial asset by an investor so as to offer the benefit of marketability
and liquidity of such assets.
 Information: Theactivities of the participants in the financialmarket
result in the generation and the consequentdissemination of
information to the varioussegmentsof the market. So as to reducethe
cost of transaction of financialassets.

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Origin of Indian Stock Market
The Indian stock market is nota new concept. It has a history of about 299
years old. It was in early 18th century, the main institution that dealing in the
tradingof shares and stocks in the East IndiaCompany. Later by around
1830sthemain dealingin the shares and stocks (mainly in bank and cotton)
was initiated in Bombay. However, the items in which the trading took place
increased tremendously by the end of 1839. Thereafter the conceptof broker
businesswas started which show momentum in the mid 18th century. This
concept attracted number of peopleto indulgein the trading of items. By
1860, thenumber of brokers who are dealingin the tradingof items goes up
to 60sin number. Further the broker of number increased from 60 to 250 in
around 1862-1863.
However, around 1960-61 thereis no supply of cotton from Americaas there
was civil war that took place in America. Dueto this, there is a concept of
Share Maniathat took place in India.
This is the era of 1980in whichthe Indian market had the initial flavor of the
tradingin items the concept of Stock market. Thereafter, it has shown
significant changes both in the preindependenceeraand post-independent
era.
Pre –IndependenceEra
The conceptof stock market place was not a very systematic system. People
who needs to trade generally gathered on the streets which was popularly
known asDALALSTREET and the tradingand the transaction used to take
place from the DALALSTREET. There after it was in year 1908, that the stocks
exchange in Calcutta wasformulated known as “The Calcutta Stock Exchange
Association”. This wind of stock exchange has also shown its pace in Madrasin
1920 resultingin the formation of the MadrasStock Exchange which was

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started with around 100 brokerswho are trading in the MadrasStock
Exchange. It wasin 1934 when the Lahore Stock Exchange was established.
The Uttar Pradesh stock exchange and the Nagpur Stock Exchange were
established in the year 1940. In year 1944, theHyderabad Stock Exchange
was established. It was notuntil 1947 that any stock exchange was
established in Delhi. It was in year 1947 that the “Delhi Stock and Share
Broker Association Limited” and “The Delhi stocks and Shares Exchange
Limited” was established in Delhi.
Post-Independence Era
There was shutdown of variousstock exchanges in Indiadueto the
depression that took place after Independence. Itwas under the Securities
Contracts (Regulations) Act, 1956 thatvariousstock exchanges such as
Bombay, Delhi, Hyderabad, Indoreetc. there are severalother stock exchanges
that were established post-independence.
Thus, the marketof stock exchange in Indiais tremendousand is growing
with leaps and bounds.
Manymorestockexchangeswereestablishedduring1980s, namely:
 Cochin Stock Exchange (1980)
 Uttar PradeshStock Exchange Association Limited(at Kanpur,1982)
 PuneStock Exchange Limited (1982)
 Ludhiana Stock Exchange Association Limited (1983)
 Gauhati Stock Exchange Limited (1984)
 KanaraStock Exchange Limited (1985)
 MagadhStock Exchange Association (1986)
 Coimbatore Stock Exchange
 Vadodara Stock Exchange Limited (1990)
 MeerutStock Exchange
At presentthere are twenty one recognized stock exchanges in India which
does notincludethe Over The Counter Exchange of India(OTCEI) and the
National Stock Exchange of IndiaLimited (NSEIL).

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NSE
(National Stock Exchange)
The NationalStock Exchangeof Indialimited(NSE) isthe leadingstock
exchange of India, located in Mumbai. It was established in1992 asthe first
demutualized electronicexchange in the country. NSE was the first exchange
in the country to provide a modern, fully automated screen-based electronic
tradingsystem which offered easy trading facility to the investorsspread
across the length and breadth of the country.
NSE has a marketcapitalization of more than US$1.65 trillion, makingit the
world’s12th largest stock exchange as of 23 January 2015. NSE’sflagship
index, the CNX Nifty, the 50 stock indexes, is used extensively by investorsin
Indiaand around the world as a barometer of the Indian capital markets.
NSE was set up by a group of leading Indian financialInstitutions at the behest
of the governmentof Indiato bring transparency to the Indian capital market.
Based on the recommendationslaid out by the governmentcommittee, NSE
has been established with a diversified shareholdingcomprisingdomestic and
global investors. The key domestic investorsincludeLife Insurance
Corporation of IndiaLimited. And the key global investors are Gagil FDI
Limited, GSStrategic InvestmentsLimited, SAIF II SE InvestmentsMauritius
Limited, ArandaInvestments (Mauritius) PteLimited PI OpportunitiesFund.
NSE offerstrading, clearing and settlement services in equity, equity
derivatives, debt and currency derivativessegments. It is the first exchange in

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Indiato introduce electronic tradingfacility thus connectingtogether the
investor base of the entire country. NSE has 2500 VSATsand 3000 leased lines
spread over more than 2000 citiesacross India.
MARKETS
NSE offerstradingin thefollowingsegments:
Equities
 Equities
 Indices
 Mutualfunds
 Exchange Traded funds
 Initial public offerings
 Security Lendingand BorrowingScheme
Derivatives
 Equity Derivatives(includingGlobal Indiceslike CNX 500, Dow Jones&
FTSE)
 Currency Derivatives
 Interest r Rate Futures
Debt
 CorporateBonds

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BSE
(Bombay Stock Exchange)
The BombayStock Exchange (BSE) isan Indian stock exchange located at Dalal
Street, Mumbai, Maharashtra, India, established in 1875. BSE isthe first stock
exchange in the country which obtained permanentrecognition (in 1956). It
migrated from the open outcry system to an onlinescreen based order driven
tradingsystem in 1995. Over thepast 140 years, BSE has facilitated the
growth of the Indian corporatesector by providingit an efficient capital-
raising platform. BSE providesan efficient and transparentmarket for trading
in equity, debt instruments, derivatives, mutualfunds. Italso has a platform
for trading in equities of small –and –medium enterprises(SME)
BSE also provideahost of other services to capital market participants
includingrisk management, clearing, settlement, marketdata services and
education. It has a global reach with customer around the world and a nation-
widepresence. BSE systemsand processes are designed to safeguard market
integrity, drivethe growth of the Indian capital market and stimulate
innovation and competition across all marketsegments.
The company listed on BSE command atotal market capitalization of USD 1.68
trillion as of march 2015. Itis also one of the world’sleading exchanges

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(5th largest in March 2015) for indexoption trading(source: world federation
of exchanges).
BSE’s popular equity index – the S&P indexBSE Sensex – is the India’s most
widely tradestock market benchmark index. BSEs pivotaland predetermined
role in the developmentof the Indian capital market is widely recognized.
There is perhapsno major corporatein Indiawhich has not sourced BSEs
services in raising resourcesfrom the capital market.
It is an index of 30. BSE has alwaysbeen at par with the international
standards. The systems and processesare designed to safeguard market
integrity and enhance transparency in operations.
BSE offerstradingin the followingsegment-
 Equity
 Derivatives
 Currency derivatives
 IRD (Interest Rate Derivatives)
 Debt
BSE alsohasa widerangeof servicesto empowerinvestorsand facilitate
smoothtransactions:
 Investor services:
The departmentof investor services redressesgrievances of investors.
BSE wasthe first exchange in the country to providean amountof Rs 1
million towardsthe investor protection fund; it is an amounthigher
than that of any exchange in the country. BSE launched a nationwide
investor awarenessprogramme-‘safe investing in the stock market’
under which 264 programmeswereheld in more than 200 cities.
 The BSE onlinetrading(bolt) :
BSE on-linetradingfacilitates onlinescreen based tradingin securities.
Bolt is currently operatingin 25000 trader workstationslocated across
over 359 cities in India.

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 BSEWEBX.com
In February 2001, BSE introduced theworld’sfirst centralized exchange
based internet tradingsystem, BSEWEBX .com. Thisinitiative enables
anywherein the world to trade on BSE platform.
 Surveillance
BSE’s On-LineSurveillance System (BOSS) monitorson a real time basis
the price movements, volumepositionsand members’position and real
time measurementof defaultrisk, market reconstruction and
generation of cross market alerts.
 BSE trainingInstitute
BTI impartscapital markettraining and certification, in collaboration
with reputed managementinstitutes and universities. It offersover 40
courseson variousaspects of the capital market and financialsector.
Morethan 20,000 peoplehaveattended the BTI programmes

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Company profile
Stock Holding Corporation of India Ltd. (SHCIL) was incorporated as a Public Limited Company in
1986. It has been jointly promoted by leading Banks and Financial Institutions. SHCIL is a subsidiary of
IFCL Limited. The equity capital of SHCIL is presently held by LIC, GIC, IFCI Ltd., SU-UTI, NIA,NIC,
UIC, and TOICL, all leaders in their respective fields of business Mission.
SHCIL, apartfrom being the country’spremier Custodian and Depository
Participant, SHCILis also the largest ProfessionalClearing Member; backed by
an immensecapacity to process volumeswith precision. To give an ideaof our
capability, every year weprocess around…….
Mission
To be a world-class “technology driven” and “client focused” marker
leader in financial and technical services.
Description
SHCIL also providesDerivativesclearing, PF fund accounting, SGLconstituent
account services, distribution of mutualfundsand other capital market
instruments, besides distribution of life and non-lifeinsurancepolicies.
Other offeringsadded to the bouquet are onlinenet trading, loan against
shares, Western Union Money Transfer & E-stamping. In the pipelineare a
host of services that will complementthe range of services offered by SHCIL.
CompanyOverview
It has been jointly promoted and owned by leading Banksand financial
Institutions viz., IFCILtd., IDBIBank Ltd., LIC, GIC, SU-UTI, NIA, NIC, UIC, and
TOICL, all leaders in their fields of business.
SHCIL began by offeringcustodialand post trading services, adding
depository servicesand other services to its portfolio over a period of time.

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SHCIL has established itself in Indiaas a one- stop solution provider in the
Financial Services domain.
Our values
 Safety and Efficiency of Operationsis hallmark of SHCIL.
 Professionalism and Integrity.
 Customer First.
 Relationship Building.
 Commitmentto Quality irrespectiveof asset size!
Our Technology
 Comprehensivebusinesstechnology solutions adeptin handlinghigh
volumetime critical transactions within a secured environment.
 Zero error approach towardsdelivery of productsand services.
 Single window view of business and up-to date information.
 Oracle database currently of 1.2 Terabytes size (and growing) managed
by competentIT personnelwith domain expertise.
 Data mirroringusingcluster technology and fiber optic connection as
part of Disaster ManagementPlan.
 Network Security usingFirewall, Proxy, Intrusion Detection System
(IDS) and Intrusion Prevention System (IPS).
 Internet productswithbuilt in PKI features.
 Dedicated communication channels with built-in redundanciesin
connectivity to ClientInstitution, Stock Exchanges, Clearinghouses and
Depositories.

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Products
 Demat services
 Pioneer institution in the field of Depository servicesbeing the
India’sfirst DP with NSDL& CDSL
 Cater to all typesof DP accounts – Beneficiary, Clearingmember,
Margin, RGESS, BSDA etc
 One account for holding Equity, Debt, Mutualfund, ETFand Bondsin
demat form
 Safe, secure and Convenience
 Convenienceof Online and Anywheretransactions
 ProfessionalClearingmember on Derivativessegment
 Brokingservices
 BSE Cash
 NSE Cash
 NSE F & O
 BSE Star MF
 IPO and Bond Bidding
 Online tradingPlatform
 Margin Trading(BSE)
 InvestmentProducts
 MutualFunds
 Fixed deposits& NCDs
 Tax Free Bondsof PSUs
 Capital Gain Bonds
 Inflation Indexed Bonds
 Governmentof IndiaBonds
 Initial Public Offer/ Follow on Public Offer

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 Loans
 Education Loans
 HomeLoans
 Loan against property etc.
 Gold & Silver Coins& Bars
 NPS (NationalPension System)
 NPS is a superior retirementplanningand tax saving scheme from
GOI regulated by PFRDA
 Stock Holdingauthorized by PFRDA to providefullspectrum of
NPS services to all citizens
 Corporateemployeescan savetax over and above Section 80C by
joiningNPS- Corporatemodel
 Wealth ManagementServices

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SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths,
Weakness, Opportunities and Threats involved in a project or in a business
venture. It involves specifying the objective of the business venture or project
and identifying the internal & external factors that are favorable and
unfavorable to achieving that objective.
Strengths:
1. SHCIL being one of the oldest financial institution providing DP services
enjoys huge customer base.
2. SHCIL has large network with more than 190 branches all over India
which will help in reaching remote customers also.
3. Employeesat SHCIL are dedicated towards customer services which has
helped it to maintain good customer relationship.
4. SHCIL has been diversifying its line of business as per the changing
business conditions which have helped to survive in the market.
5. SHCIL has earned contract from the e-stamping which make it sole
authority for stamping in India.
Weakness:
1. SHCIL has not changed itself to the upgraded technological changes
which may affect its customer base.
2. Charges at which SHCIL is providing services are higher than other
broking firms this can dent its business.
3. SHCIL’s promotional strategies are old and outdated which can prove
detrimental.

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Opportunities:
1. SHCIL being a government undertaking enjoys customers trust and
hence can pull investors.
2. SHCIL can diversify to other improved financial products and services.
3. It can explore market further by acting as fund manager on behalf of
investors.
Threats:
1. Mushrooming of private companies’ offerings similar services at lower
charges can put through the market SHCIL.
2. Government is deciding to abolish account maintenance charge which is
major source of income for them.

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Executive summary
Mutualfund isa scheme where many peopleinvestfor a common cause that is
to get returns. The money is collected for the investorsand is invested in
capital marketand the returnsare divided on the basis of unitsan individual
possess.
In this projectI have covered the customer’s behavior and their perception
towardsmutualfundsasmutualfundslacksawarenesspeoplegets insecure
when it comes to invest in mutualfundsalso dueto continuouslossesin
mutualfundsindustry. Thestudy is being conducted from SHCILVaranasi. In
the study a sampleof 100 peopleoutof which all were notaware about the
mutualfunds.
Also the study isconducted to observe that why peopledo not investin
mutualfundsasthe major disadvantageof mutualfundsthat it contains
hidden cost like processingfees, purchasefees, exchange fees, Management
fees, over diversification possible tax consequences, and the inability of
managementto guarantee a superior return.
And the major advantagesof investingin any of the mutualfund schemeare
professionalmanagementand the liquidity. Mutualfundsinstead of giving
high liquidity and a good managementof fundspeopledo notwant to investin
mutualfunds.
Mutualfundsarevery easy to buy and sell off. One can directly approach the
fund company and their broker to assist them in purchaseand sale of the
mutualfunds. Unlikeshare pricesfluctuate continuously the NAVof the
mutualfundsalso do. Beforeinvesting in any of the fundsoneshould do a
proper study of the scheme and mustgo through its objective, risk associated
with it, the overallof that particular scheme and the fund’smanager track
record. One should read the overall offer documentsclearly as they are also
subjected to market risk.

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There are many typesof mutualfunds. You can classify fundsbased structure
(Open ended and close ended), Nature(equity, debt, balanced), Investment
objective (growth, income, money market, etc.).
One of the most importanttrendswhich mutualfundshaveobserved wasthe
aggressive expansion of foreign owned companied and declineof private
sectors and nationalized banks.
Mutualfundsareregulated by SEBIand numerousof developmentsand
enhancementsto the regulatory frameworks.
Mutualfundsindustryiscurrently witnessinglosses about 33 lakhs investors,
measured in terms of individualaccountsor folios. This is the fifth consecutive
year of loss of folios by mutualfunds.

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Introduction
Introductionto theinvestmentavenues:-
In today’smodern erapeopleare aware of differentinvestmentavenuesand
peopleof all income groupsdearthto investin these avenuesas per the
available fundstheir objectivity might differsfrom each other as someone
invest to get good returnssome would preferably investto get liquidity,
safety, tax redemption or other reasons, but the investmentprocessis carried
out by them in these avenues. The investmentcan be donein Bank deposits,
debentures, and bondswhich have low associated risk and low return. Or one
can also invest in the stock where rate of return is high but the risk associated
to it is also high. And the recent trend in the marketshows the bearish market
so peoplemovefor diversification where the chances of getting high returns
increases on a low level of risk.
Also peoplehaving limited knowledgeof marketand the schemes let them to
approachsome good portfolio managerswho have sufficientamountof
knowledgeand managethe money of the investorsas per their requirement
and objective. But as these managerswork for the investors which levy some
fee on the investors which provescostly for the small investors. So where and
how to invest? The answer to the question is Mutualfund.
Concept of Mutualfund:-
Mutualfund isoneof the investmentswhich have a common poolwhere
investorsinvest their money asper their objective. The ownership of the fund
is ‘mutual’and the fund belongsto all the investorsand when return is
distributed according to the contributionsmade by the investors.
The primary objectiveof mutualfund isto providebenefits to the lower
income and lower middle incomegroup to acquire more returnswithout
undertakinghigh risk. Mutualfundscater to needsof small customerswho

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have limited resourcesand to managethose resourcesin a manner to provide
a regular return, liquidity, diversification, growth, safety, etc.
Typesof MutualFunds
Mutualfundsareclassified on the basis of:
A. Structure:-
I. Openended: -Theseare those fundswhich are available for
subscription throughout the year and don’tpossess any maturity
period. Open ended schemes provideliquidity to the investors.
II. Closeended: -it has a stipulated period for maturity ranging 3
to15 years. The subscription is donefor a particular period of
time. Investorsinvest into those schemes at the time of initial
public issuebut
III. Intervalschemes: -these are those schemes which have the
featuresof both open-ended and close-ended.
B. Natures:-
I. Equity: - A schememight have an investmentobjective to
invest largely in equity shares and equity-related investment
like convertible debentures. The investmentobjective of such
fundsisto seek capital appreciation through investmentin this
growth asset. Such schemes are called equity schemes.
The schemes are further subdivided into:
 Diversified equity funds
 Mid-cap funds
 Sector specifies funds
 Tax savings funds
Equity investmentsranks high on risk return matrix as they are
carried outfor longer period of time.
II. Debt: -Schemes with an investmentobjective that limits them
to investmentsin debt securities like Treasury Bills,

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GovernmentSecurities, Bondsand Debenturesarecalled debt
funds.
III. Balanced: -Balanced fundshavean investment charter that
providesfor investmentin both debt and equity. Of late, there
have been fundsthat also invest in Gold alongwith either debt
or equity or both.
C. Investmentobjectives: -
I. Growthschemes: -These schemes are also known asequity
schemes. The main aim of growth schemes is to providethe
investorscapital appreciation in medium to long time period.
II. Incomeschemes: -Incomeschemes are also known asdebt
schemes.
III. Balancedschemes
IV. Moneymarket schemes: -The main of money marketschemes is
to provideliquidity. It includesinvestmentin money market
instruments.
D. Other schemes: -
I. Tax saving schemes
II. Indexschemes
III. Sector specific schemes
Definitions
“MutualFunds arecollectively savings and investmentvehicles
where savingsof small (or sometimes Big) investorsare pooled
together to invest for their mutualbenefit and returnsdistributed
proportionately”.
“A MutualFundisan investmentthat poolsyour money withthe
money of an unlimited number of other investors. In return, you
and the other investors each own share of the fund. The Fund’s

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assets are invested accordingto an investmentobjective into the
fund’sportfolio of investments. Aggressive growth fundsseek
long term capital growth by investingprimarily in stocks of fast
growingsmaller companiesor market segments. Aggressive
growth fundsarealso called Capital Appreciation Funds”.
Advantages:
 Diversification
One ruleof investing, for both large and small investors, is asset
diversification. Diversification involvesthe mixingof investmentswithin a
portfolio and is used to managerisk. For example, by choosing to buy stocks in
the retail sector and offsetting them with stocks in the industrialsector, you
can reducethe impact of the performanceof any onesecurity on your entire
portfolio. To achieve a truly diversified portfolio, you may haveto buy stock
with differentcapitalization from differentindustriesand bondswith varying
maturity from differentissuers. For the individualinvestor, thiscan be quite
costly.
By purchasingmutualfunds, you areprovided withthe immediate benefit of
instant diversification and asset allocation without the large amountsof cash
needed to create individualportfolios. Onecaveat, however, is that simply
purchasingone mutualfund mightnot give you adequatediversification-
check to see if the fund issector or industry specific. For example, investingin
an oil and energy mutual fund mightspread your money over fifty companies,
but if energy prices fall, your portfolio willlikely suffer.

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 Economiesof Scale
The easiest way to understand economiesof scale is by thinking about volume
discounts; in many storesthe more of one productyou buy, the cheaper that
productbecomes. For example, when you buy a dozen donuts, the prizeper
donutis usually cheaper than buyinga single one. This also occurs in the
purchaseand sale of securities. If you buy only one securities at a time, the
transaction fees will be relatively large.
 Divisibility
Many investorsdon’thave the exact sumsof money to buy round lots of
securities. One to two hundred dollarsis usually notenoughto buy a round lot
of a stock, especially after deductingcommissions. Investorscan purchase
mutualfundsin smaller denominations, rangingfrom $100 to $1,000
minimums. Smaller denominationsof mutualfundsprovidemutualfund
investorsthe ability to make periodicinvestmentsthrough monthly purchase
planswhile taking advantageof dollar-cost averaging. So, rather than having
to wait untilyou have enoughmoney to buy higher- cost investments, you can
get in right away with mutualfunds. Thisprovidesadditionaladvantage-
liquidity.
Mutualfundsareable to take advantageof their buyingand selling size and
thereby reducetransaction costs for investors. When you buy a mutualfund,
you are able to diversify withoutthe numerouscommissionscharges. Imagine
if you had to buy the 10-20 stocksneeded for diversification. The commission
charges alone would eatup a good chunk of your savings. Add to this the fact
that you would haveto pay moretransaction fees every time you wanted to
modify your portfolio-asyou can see the cost begin to add up. With mutual
funds, you can maketransactions on a muchlarger scale for less money.

28. 28 | P a g e
 Liquidity
Another advantageof mutualfunds isthe ability to get in and out with relative
ease. In general, you areable to sell your mutualfundsin ashort period of
time without there being much differencebetween the sale priceand the most
currentmarket value. However, it is importantto watch out for any fees
associated with selling, includingback-end load fees. Also, unlikestocks and
exchange- traded funds(ETFs), which trade any time duringmarkethours,
mutualfundstransactonly once per day after the fund’snetasset
value(NAV)iscalculated.
 ProfessionalManagement
When you buy a mutualfund, you arealso choosing a professionalmoney
manager. This manager will use the money that you invest to buy and sell
stocks that he or she has carefully researched. Therefore, rather than having
to thoroughly research every investmentbefore you decideto buy or sell, you
have a mutualfund’smoney manager handleit for you.

29. 29 | P a g e
Disadvantages:
 FluctuatingReturns
Mutualfundsarelike many other investmentswithout a guaranteed return:
there is alwaysthe possibility that the valueof your mutualfund will
depreciate. Unlikefixed-incomesproducts, such as bondsand Treasury bills,
mutual fundsexperiencepricefluctuationsalong with the stocks that makeup
the fund. When decidingon a particular fund to buy, you need to research the
risk involved – justbecause a professionalmanager is looking after the fund,
that doesn’t mean the performancewillbe stellar.
Another importantthing to know is that mutualfundsarenotguaranteed by
the government, so in the case of dissolution, you won’tget anything back.
This is especially importantfor investors in money market funds. Unlikea
bank deposit, a mutualfund willnotbe insured by the FederalDeposit
InsuranceCorporation (FDIC).
 MisleadingAdvertisements
The misleadingadvertisementsof differentfundscan guideinvestorsdown
the wrongpath. Some fundsmay beincorrectly labeled as growth funds, while
others are classified as small cap or income funds. TheSecurities and
Exchange Commission (SEC) requirethat fundshaveat least 80% of the assets
in the particular typeof investmentimplied in their names. How the
remainingassets are invested is up to the fund manager.
However, the differentcategories that qualify for the 80%of theassets may be
vagueand wide- ranging. A fund can therefore manipulateprospective
investorsby usingnames that are attractive and misleading. Instead of
labeling itself a small cap, a fund may be sold as a “growth fund”. Or, the

30. 30 | P a g e
“Congo High- Tech Fund” could besold with the title “International High-Tech
Fund”.
 EvaluatingFunds
Another disadvantageof mutualfundsisthe difficulty they posefor investors
interested in researching and evaluatingthe differentfunds. Unlikestocks,
mutualfundsdo notoffer investorsthe opportunity to comparethe P/E ratio,
sales growth, earning per share, etc. A mutualfund’snetasset valuegives
investorsthe total valueof the fund’sportfolio lessliabilities, but how do you
know if onefund isbetter than another?
Furthermore, advertisements, rankingsand ratings issued by fund companies
only describe past performance. Alwaysnotethat mutualfund
descriptions/advertisementsalwaysincludethe tagline “past results are not
indicative of futurereturns”. Besurenot to pick fundsonly becausethey have
performed wellin past- yesterday’sbig winnersmay be today’sbig losers.

31. 31 | P a g e
Why selectMutualFund?
The risk return trade of indicates that if investor is willing to take higher risk
than correspondingly hecan except higher returnsand vice versa if he
pertainsto lower risk Instruments, which would besatisfied by lower returns.
For example, if an investor opt for Bank FD, which providemoderatereturn
with minimal risk. Butas he movesahead to investin capital protected funds
and the profitbondsthat give out morereturn which is slightly higher as
compared to the bank deposits but the risk involved also increases in the
same proportion.
Thus investorschoose mutualfundsastheir primary meansof investing, as
mutualfundsprovide professionalmanagement, diversification, convenience
and liquidity. That doesn’t mean mutualfund investmentrisk free.
Thus is because the money that is pooled in are not invested only in Debt
fundswhichare less riskier but are also invested in the stock markets which
involvesa higher risk but can expect a higher returns. Hedgefundsinvolvea
very High Risk since it is mostly traded in the derivativesmarket which is
considered very volatile.

32. 32 | P a g e
Risk Return Matrix
Key development over the years
The mutualfund industryin Indiahas come a long way. Significant spurtsin
size werenoticed in the late 80s, when public sector mutualfundswerefirst
permitted, and then in the mid-90s, when privatesector mutualfunds
commenced operations. In the last few years, institutional distributors
increased their focused on mutualfunds.
The emergenceof stock exchange brokers as an additionalchannel of
distribution, the continuinggrowth in conveniencearisingout of technological
Higher risk Moderate returns
Venture capital
Higher risk Higher returns
Equity
Low risk Low returns
Postal schemes and fixed
deposits
Low risk Moderatereturns
MutualFunds

33. 33 | P a g e
developments, and higher financialliteracy in the market should drivete
growth of mutualfundsin future.
AUM of the industry asof July 31, 2013 hastouched Rs. 760,833 crorefrom
1172 schemesoffered by 44 mutualfunds. Therewere distributed as follows:
Source: (www.amfindia.com)
Open ended
(Rs. Cr.)
Close ended
(Rs. Cr.)
Interval
(Rs. Cr.)
Total
(Rs. Cr.)
%
Income 32,9,024 92,348 10,367 4,31,744 56.7 %
Equity 1,40,499 487 - 1,40,936 18.5 %
Balanced 15,144 13 - 15,157 2.0 %
Liquid/Money
Market
1,29,000 - - 1,29,000 17.0 %
Gilt 8,203 - - 8,203 1.1 %
ELSS- equity 19,588 2,085 - 21673 2.8 %
Gold ETFs 10,669 - - 10,669 1.4 %
Other ETFs 1,394 - - 1,394 0.2 %
FOFs
Investing
overseas
2,068 - - 2,068 0.3 %
Total 6,55,539 94,933 10,361 7,68,033 100.0 %
% 86.2 % 12.5 % 1.4 % 100.0 %
In someadvanced countries, mutualfund AUM isa multiplebank deposits. In
India, mutualfund AUM isnot even 10% of bank deposits. This is indicative of
the immensepotential for growth of the industry.
The high proportion of AUM in debt, largely from institutional investorsis not
in line with the role of mutualfunds, which is to channelize retail money into
the capital market. Various regulatory measuresto reducethe costs and
increase the conveniencesfor investorsare aimed at transformingmutual
fundsinto a true retail vehicle of capital mobilization for the larger benefits of
the economy.

34. 34 | P a g e
Need For the Study
The main purposeof undertakingthe projecton mutualfund investmentswas
to know about the workingof mutualfund and its overallfunctioningwhich
will help me to get awareof mutualfund industry rightfrom its inception
stage to its growth stage and futureaspects
The projectwas also undertaken for understandingthe differentschemes of
mutualfunds. Asthere are several companies which facilitates investorswith
their differentlike equity, income and balanced. So the major study donein
the project helps the investors also to know the risk associated with the
mutualfunds.
The projectstudy was doneto ascertain to asset allocation, entry load, exit
load, associated with the mutualfunds. Ultimately this would help in
understandingthebenefits of mutualfundsto investors.
Also to comparedifferentfundsto know which fundsarebest to invest. As in
HDFC the top three fundsinvestorswantto invest in is
1) Top 200 as it providegood NAV.
2) Equity funds
3) Opportunity Funds.
And the major objective of the project is to study customer’sperception and
opinion towardsmutualfundsasInvestmentAvenue.
1) To assess the savings objectives amongindividual investorswith
demographicfactors.
2) To identify the most preferableinvestment avenueamonginvestors.
3) To know and what kind of customer invests in what kind of avenue?

35. 35 | P a g e
Overview of theProblem
A mutualfund islike a cake when cut into slices. Each slice is referred to as a
share. The price of the share is termed as Net Asset Value (NAV). Unlike stock
prices it also fluctuatesall day along.
The objective of the fund contained insidethe prospectusof the mutualfunds
which is treated as the legal documentand containsall the terms and
conditionsrelated to it.
Since investmentneedshave increased peopleseeks better investmentplans
which gives then better returnsat minimum risk. And there are already many
waysto invest in number of productsavailable in the market. Peopleprefer
banks are the safest place to invest their money and also bank providea good
interest to the customerswhich promotethe customers to invest in their
banks. Buttoday the investorspossess a great knowledgeso they plan to
invest their money in such a way that could make the most of it
The major objective of conductingthe study is to know the perception of
peopletowardsmutualfundsand their behavior and expectation while
selecting any mutualfund plan.

36. 36 | P a g e
Competitors of SHCIL
Following aresome of thecompetitors of SHCIL inVaranasi:
1. KARVY SECURITIES
2. HDFC SECURITIES
3. ANGEL BROKING
4. KOTAK SECURITIES
5. RELIGARE
6. SHAREKHAN
7. ANAND RATHI
8. ICICI SECURITIES

37. 37 | P a g e
KARVY SECURITIES
The KARVY Group isa premier integrated financial services provider. The
Group servicesover 70million individualinvestorsin variouscapacities, and
provides investor servicesto over 600 corporatehouses. KARVY Group
established its presencethrough a wide network of over 450 branches,
(or 900 offices) coveringin excess of 400 cities and towns.
KARVY covers the entire spectrum of financialservices, viz stock broking,
depository participant, distribution of financialproducts(includingmutual
funds, bondsand fixed deposits), commodities, broking, personalfinance
advisory services, merchant banking and corporate finance, wealth
management, NBFC, amongothers.
The Group isprofessionally managed and ranksamongthe best in technology,
operationsand research across the financialindustry. The KARVY Group has
evolved over the last three decadesand today it assumes many avatars.
SERVICES
FINANCIAL SERVICES:
 Equity Broking
 Depository Participant
 Wealth Management

38. 38 | P a g e
 CommoditiesBroking
 Currency Derivatives
 Non BankingFinancial Services
 Distribution of Financial Products
 Registry services for Corporateand Mutualfunds.
 InvestmentBanking
 InsuranceRepository
 The Finapolis
 Forex and Currencies
NON –FINANCIAL SERVICES:
 Data ManagementServices
 InternationalBPO
 Alternate Energy
 Data analysis
 MarketResearch
Strengths of the Company:
1. Employeesare highly empowered.
2. Strong Communication Network.
3. Good co-operation between employees.
Weakness of the Company:
1. High EmployeetTurnover.
2. Lack of loyal clientage.
3. Inexperienced staff.

39. 39 | P a g e
HDFC SECURITIES
HDFC Securities is oneof the leadingstock brokingcompaniesin India
and a subsidiary of HDFC Bank a renowned privatesector bank.
As a stock broking company, HDFC havecompleted 15yearsof
operation servinga diversecustomer base of retail and institutional
investors.
SERVICES
HDFC provides following product and services:
 Equity and IPO
 MutualFunds
 F & O and Currency Derivatives
 NPS

40. 40 | P a g e
 NRIofferings
 Insurance
 Fixed Deposits& Bonds
 Loans and Realty
Strengths of the Company:
1. One of the leading securities firm.
2. An HDFC security is fully customer centric firms.
3. Strong research backed advisory service.
4. Offersa widerange productsand servicesto its corporate and
retail customers.
Weaknesses of the Company:
1. Limited number of branches.
2. Averagepromotionalactivities.

41. 41 | P a g e
ANGEL BROKING
Angel Broking’strustwith excellence in customer relation began in1987.
Today, Angelhas emerged as oneof the mostrespected stock-broking and
wealth management companiesin India. With its uniqueretail- focused stock
tradingbusiness model, angel is committed to providing‘realvalue for money’
to all its clients.
The Angelgroup is a member of the Bombay Stock Exchange (BSE), National
Stock Exchange (NSE) and the two leading commodity exchanges in the
country: NCDEX & MCX. Angelis also registered as a depository participant
with CDSL.
VISION
To providebest valuefor money to investors through innovativeproducts,
trading/investmentsstrategies, state of the art technology and personalized
service.

42. 42 | P a g e
SERVICES
Servicesprovided by Angel Broking:
 Equity Trading
 Commodities
 Portfolio ManagementServices
 MutualFunds
 Life Insurance
 IPO
 Depository Services
 InvestmentAdvisory
 Derivatives
 PMS
 Currency Trading
 DEMATAccounting
 Intraday Tradingtips
Strengths of the Company:
1. Innovativerangeof financialproducts.
2. Known for transparentfunctions.
3. InnovativeI.T. solutions for customers.
4. Emphasison buildingstronger bond with customers.
Weaknesses of the Company:
1. Less penetration in ruralareas.
2. It facts softwarepro.

43. 43 | P a g e
KOTAK SECURITIES
Kotak Securities limited, a subsidiary of Kotak MahindraBank, is the stock
broking and distribution arm of the Kotak MahindraGroup. Oneof the oldest
broking housesin India, its operationsincludestock broking and distribution
of variousfinancialproducts. It wasfounded in 1994 and it’sheadquartered in
Mumbai, India. It is a corporatemember of both the Bombay Stock Exchange
and National Stock exchange of Indiaalso a depository participantwith
National Securities Depository Limited (NSDL) and CentralDepository
Services Limited (CDSL). It is well known with professionalTradersfor its
comprehensiveonlinetradingportal offerings.
SERVICES
It provides servicesin:
EquityTrading
 DerivativeTrading
 MutualFund Investment

44. 44 | P a g e
 IPO
 Gold ETF
 Currency Derivatives
 Fixed deposits& Tax Free Bonds
 Debentures
 Stock BrokingServices
Strengths of the Company:
1. BrandName:
The biggest strength is the tag of Kotak being oneof the largest groups
in financesector
2. CompatibleBrokerage:
Brokerageunder variousproductsof Kotak Securities is much more
compatible than others.
3. DiversifiedProducts:
The company hasdiversified product to suit the requirementsof
variousclients.
4. ResearchAdvice:
Kotak provideswith research inputand valuablerecommendation.
5. Portfolio Advice:
Provideswith free portfolio adviceand constantly monitor the valueof
the client’s portfolio with inputfrom expert advisors.
Weaknesses of the Company:
1. Proneto MarketRisk:
Equity market dependson overallmacroeconomiccondition and
market scenario.
2. Returnsto broker:
There is a very tough competition because of large number of local
brokers (for example: they providesame return on least brokerage).

45. 45 | P a g e
RELIGARE
RELIGARE EnterprisesLimited (REL) is the holdingcompany for oneof
India’sleading diversified financialservices groups. RELoffersan integrated
suite of financialservices through its underlying subsidiariesand operating
entities includingloansto SMEs, Capitalmarkets, Wealth Management, Life
and Health Insurance& Asset Management. RELis listed on the Bombay Stock
Exchange (BSE) and National Stock Exchange (NSE) in India.
As a group, RELcaters to almost every segment of the market from mass retail
to affluent, HNIs, UHNIs, mid size corporate, SMEs to large corporateand
institutions. The group has a presenceacross around 1,700locationsin India
and also has an International footprintbeyond Indiathrough its Capital
Markets& Global Asset Managementbusinesses.
Services
 Equity
 Derivatives
 Commodities
 Currency
 MutualFund

46. 46 | P a g e
 IPOs
 Tradein International Equity
 Fixed Deposits
 Insurance
 Life Insurance
 Health Insurance
 NRI
 Real Estate
Strengths of the Company:
1. It is a Ranbaxy Promoter Group company.
2. Equity Research Team, one of the best in market, which constantly
track the pulseof the marketand providetimely investmentadvice
free of cost.
Weaknesses of the Company:
1. Lack of sufficientbranch offices for speedy delivery of services.
2. Lack of awarenessamong customers because of non-aggressive
promotionalstrategies (printmedia, newspaper etc)
3. Lesser emphasis on customer retention.

47. 47 | P a g e
SHAREKHAN
SHAREKHAN isIndia’s leadingonline retail broking house. Launched on
February 8, 2000 asan online tradingportal, SHAREKHAN hastoday a pan-
Indiapresencewith over 1,529 outletsserving950,000 customersacross450
cities. It also has international presencethrough its branches in the UAE and
Oman. SHAREKHAN offersserviceslike portfolio management, trade
execution in equities, futureand options, commoditiesand distribution of
mutualfunds, insuranceand structured products. These services are backs by
quality investmentadvicefrom an experienced research team which offers
investmentand tradingideas based on fundamentaland technicalresearch
respectively, market related news, statistical information on equities,
commodities, mutualfunds, IPOand muchmore.
SHAREKHAN isa member of the Bombay Stock Exchange, the National Stock
Exchange and the country’sleadingcommodity exchanges, the NCDEX and
MCX. SHAREKHAN isalso registered as a depository participantwith National
Securities Depository and CentralDepository Services. SHAREKHAN has a set
category leadership through pioneeringinitiatives like Trade Tiger; an
Internet based executable application that emulates a broker terminal besides
providinginformation and toolsrelevanttoday traders. Its second initiative,

48. 48 | P a g e
First step, is targeted at empoweringthe first time investors. SSHAREKAHN
has also set its global footprintthrough the “IndiaFirst” initiative, a series of
seminarsconducted by SHAREKHAN to help the non residentIndians
participate and benefit from the huge investmentopportunitiesin India.
Services
Products & Services:
 Stock
 Derivatives
 Commodity
 Currency
 MutualFund
Strength of the Company:
1. Timely and accurate research.
2. Keepsupdatingto the customerson the recent happenings.
3. Widerange of innovativefinancial products.
4. Strong I.T. infrastructure.
5. Have oneof the largest networksof branches across country.
6. Pan-Indiapresencewith over 1,500 outletsserving950,000
customersacross 450 cities.
Weaknesses of the Company:
1. Lack of awarenessamong people.
2. Penetration limited to urban areas.

49. 49 | P a g e
ANAND RATHI
ANAND RATHIis a leading fullservice financialservices firm covering the
entire gamut of investors. The firm, founded in 1994by Mr. Anand Rathi,
today has a pan India presence across 750 locations. It offers a fullsuite of
productsto servetheir clients’ businesslifestyle needs, geographic reach in an
increasingly global market, and deep expertise in the core middlemarket
sectors.
ANAND RATHIis a leading fullservice investmentbank founded in 1994
offeringa widerange of financialservices and wealth managementsolutions
to institutions, corporation, high-net worth individualsand families. The firm
has rapidly expanded itsfootprintto over 350 locations across Indiawith
internationalpresence in Hong Kong, Dubai& London. Founded by Mr. Anand
Rathi and Mr. Pradeep Gupta, thegroup today employsover 2,500
professionalsthroughoutIndia and its international offices.
The firm’sphilosophy is entirely client centric, with a clear focus on providing
long term valueaddition to clients, while maintainingthe highest standardsof
excellence, ethics and professionalism. The entire firm activities are divided
across distinct client groups: Individuals, Privateclients, Corporateand
Institutions. ANAND RATHIhas been named The Best DomesticPrivate Bank
in Indiaby Asiamoney in their Fifth AnnualPrivateBankingPoll2009. The

50. 50 | P a g e
firm has emerged a winner across all key segments in Asiamoney’slargest
survey of high net worth individualsin India.
Services
Products and Services:
 Equity
 Commodities.
 Currency
 Mutualfund
 IPO
 Insurance
Strength of the Company:
1. Lower brokerage rates.
2. Less charges on accounts.
3. Good customer faiths.
4. Better onlineflexible plans.
5. Good number of terminals.
Weaknesses of the company:
1. The company isnot having its own productunlessDEMATand
tradingaccount.
2. Less pay-in/pay-outbanks.
3. Less education and awareness activities.

51. 51 | P a g e
ICICI SECURITIES
ICICI Securities empowersover 3.5 million Indiansto seamlessly access the
capital marketwith ICICIdirect.com. The platform notonly offers convenient
waysto invest in Equity, Derivatives, Currency features, MutualFundsbut
also other services. Fixed Deposits, Loans, Tax Services, New Pension System
and easy to use platform to investin equity and variousother financial
productsusingits unique3-in-1 accountwhich integrates customerssaving,
tradingand DEMATaccounts.
Apartfrom convenience, ICICIdirect.com also offersto comprehensive
research information, stock picks and mutualfund recommendationsamong
other access to comprehensive research information, stock picks and mutual
fund recommendationsamongother offerings. Tailored services and trading
strategies are available to differenttypesof customers; long term investors,
day traders, high–volumetraders and derivativestradersto namesome.
ICICIdirect.com usesthe most advanced commercially available 128-bit
encryption technology enabled Secure Socket Layer (SSL), to ensure that the
information transmitted between the client and ICICIdirect.com across the
internet is safe and cannot be accessed by an third party.

52. 52 | P a g e
ICICIdirect.com is the first broker in India to introduce‘Digital Signed
Contract Note’ to its customers. As a result, the process of generating contract
notes has been automated and the samewould be instantly available to its
customer in a safe and secure manner through the website.
SERVICES
 Equity
 Derivatives
 Currency
 MutualFunds
 ETF
 Life Insurance
 General Insurance
 FD/Bonds
 Loans
 NPS
 TAX
 E-Locker
Strength of the Company:
 It gives 3 in 1 account to the customer, the case to trade at convenient
time is the main strength of the ICICIDirect. Convenienceof the time to
trade faster transaction paperlesswork doneat one place.
 It has strength of the last technologies.
 The youngand energetic staff is also one of the strength.

Weaknesses of the Company:
 The weaknessof the ICICIdirect.com can be said its high charges
compared to other companies.

53. 53 | P a g e
BROKERGE CHARGES
CHARGES SHCIL KARVY
SEC.
ANGEL
BROKING
RELIGARE ICICI
SEC.
HDFC
SEC.
SHAREKHAN ANAND
RATHI
KOTAK
SEC.
DELIVERY
BASED
TRADING
0.55% 0.30% 0.40-
0.10%
0.25% 0.55% 0.50% 0.50% 0.02% 0.49%
INTRA
DAY
TRADING
0.5-
0.7%
0.03% 0.04-
0.01%
0.25% 0.275% 0.10% 0.20% 0.02% 0.049%
FUTURE
TRADING
0.5% 0.03% 0.04-
0.01%
0.05% 0.05-
0.03%
0.05% 0.10% 0.02% 0.049%
OPTION
TRADING
100 2.5% 0.04-
0.01%
50 95-65 100 2.5% 0.02% 100

54. 54 | P a g e
Objectives
For conducting this research following objectives were set:
1. To study and analysis the attitude and behavior investors towards
secondary market.
2. To study the decision of investor.
3. To suggest appropriate strategies to investors for taking right
investment decisions in stock market.
4. To know the expectation of those investors who invested in Broking
Agencies and their satisfaction levels with the services and investment
options provided by broking agencies.
5. To study the satisfaction level of customers with respect to various
services and investment options provided by broking agencies.
6. To study the satisfaction levels of customers with respect to various
brands of broking agencies.
7. To assess the investors’ attitude towards the investment avenues.
8. To offer suggestions for the marketers of financial services and other
investment avenues.

55. 55 | P a g e
Research Methodology
The major aim of the study is to explorethe “Investor’sattitude towards
secondary market& competitive analysisof stock brokinghouses of
Varanasi”. For an enhanced research of the study Ihave gone through a survey
to analyzethe investor’sbehavior from which I derived many valuable
conclusionsthat help usto clearly identify investor’sbehavior while investing
their money and perception for the secondary market.
1. Universeof thestudy: Thestudy wascasual in nature with survey
method being used for data collection. The survey wasconducted in
the city premisesof Varanasi.
2. Techniquesof sampling: An Empiricalstudy hasbeen conducted
based on a welldesigned questionnaire for collection of sample.
3. Samplesize: Sizeof sampleis 100 usingconveniencerandom
sampling.
4. Researchperiod: Theresearch work wascarried out in 6 week time
span.
5. Toolsusedfordatacollection: Self designed questionnairewereused
to evaluate investor’sattitude towardssecondary marketand data
was collected on objective type questionnaire.
Primarydata in thereportis collected through face to face interviews
and questionnairefrom peopleliving in Varanasi.
Secondarydata Themain source of information for the project was
authentic documentsand first available for the study. Information
regarded the services of SHCIL are provided by the SHCIL employees
and other data collected from the internet.
6. QuestionnaireDesigning: For thepurposeof collecting relevantdata I
prepared the questionnaireto fulfill the objective of the survey. This
work is carried by face to face survey and self- administered
questionnaires. The questionsoffered multiplechoices.
7. Techniques usedforanalyzingthecollectdata: Thedata is collected
from 100 respondentsthroughfilingthe questionnaire.

56. 56 | P a g e
8. Statisticaltools: Representation of statistical data by diagram, table is
moreeffective. Although the tabular representation can be easily
understand.
Mean: Thesum of a set of data divided by the number of data.
Median: Themiddler or the mean of middletwo values, when data is
arranged in numericalorder.
Mode: Thevalue(frequency) that appearsthe most.
StandardDeviation: Itis the measurethat is used to quantify the
amountof variation or dispersion of a set of data values. A standard deviation
close to 0 indicates that the data points tend to be very close to the mean or
also called the expected valueof the set, while a high standard deviation
indicates that the data pointsare spread out over a wider rangeof values.
PieChart: A piechart (or a circle chart) is circular statistical graphic,
which is divided into slices to illustrate numericalproportion. The arc length
of each slice is proportionalto the quantity it represents.
LIMITATIONS:
1. Many peoplearestill unawareabout the stock market and how it works,
so the sampleconsist of only those peoplewho have either invested in
stock market or have some kind of knowledgeabout it.
2. The place wherethe survey wasconducted that is Varanasi is a very
conservativeplace as far as stock marketis concerned.
3. The samplesize may be still be too small to come to any kind of concrete
conclusion because stock market in itself is a very vast dueto large
number of investors.

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Questionnaire sample for “Investors expectation and perception
towards Mutual funds in Varanasi”
I am Karan Gujrati pursuing MBA from Shambhunath Institute of Management, Allahabad
(Affiliated to AKTU University, Lucknow). This survey is a part of an assignment of my
training. Kindly fill all the questions given below by ticking on the option(s) which you feel
are suitable according to you. This information provided will be kept confidential and will
be used for the purpose of study only.
Name:............................................................................... Occupation:.........................................................
Mobile No.:.....................................................................
Gender: Male..................... Female:....................
Age: 18-28............... 28-38................ 38-48................ 48-58............... 58-65.................
 Which of the following is your source of income?
A) Government employment
B) Private employment
C) Self employment
D) Others (please specify)..............................................................................
 What is your mode of investment?
A) Fixed deposits
B) P.P.F
C) L.I.C
D) Mutual Funds
E) Shares
F) Others (please specify)..............................................................................
 Are you aware of mutual funds?
A) Yes B) No
 If yes, do you invest in mutual funds?
A) Yes B) No

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 On which schemes do you invest?
A) Equity schemes
B) Debt schemes
C) Balanced schemes
 Which investment plan do you prefer?
A) Systematic investment plan
B) Unsystematic investment plan
 Which type of mutualfund schemeyou prefer?
A) Open ended investment plan
B) Close ended investment plan
 As a mutual fund investor share your experience?
A) Satisfied
B) Neutral
C) Unsatisfied
 What amount of risk would you prefer to undertake?
A) High risk
B) Moderate risk
C) Low risk
 What is the expectation of customer from their investment in mutual funds?
A) Up to 15%
B) 15 to 25%
C) 25 to 35%
D) More than 35%

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Data Interpetation
Ques.1: Whichof the followingis your sourceof income?
Objective: Theobjective is to know what that source of income of the
respondents.
Interpretation: Itis observed from the abovechart that a major peoplevisiting
the bank are self employed followed by the privateemployed and government
employees.
Government
Employment
21%
Private
Employement
31%
Self Employement
48%
Sources of Income

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Ques.2: Whatisyour modeof investment?
Objective: Theobjective is to know the modeof investmentof the employees
Interpretation: From theabove chart wecan infer that 52% of the total
samples are invested capital in mutualfunds
Fixed deposis
20%
P.P.F
9%
L.I.C
5%
Mutual Fund
52%
Shares
10%
Others
4%
Mode of Investment

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Ques.3: Areyou awareof mutualfunds?
Objective: To know awarenessfor mutualfundsamongthe respondents.
Interpretation: From theabove chart wecan infer that 70% of the total
samplesare aware about mutualfunds.
Yes
70%
No
30%
Awareness among the investors

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Ques. 4: If yes, do you investin mutualfunds?
Objective: To know that being awareabout mutualfundsdo peopleinvestin
mutualfunds.
Interpretation: From theabove chart wecan infer that 34% of the people
being aware about the mutualfundsdon’tinvestin the mutualfunds.
Yes
66%
NO
34%
Invest

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Ques.5: On whichmutualfund schemedo you invest?
Objective: To know if peopledo investmentin mutualfundsin which scheme
they prefer to invest.
Interpretation: Itcan be inferred that almost half of the peopleprefer to invest
in equity schemes.
Equity
48%
Debt
23%
Balanced
29%
Schemes

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Ques.6: Whichinvestmentplan do you prefer?
Objective: To know aboutthe investor’sopinion.
Interpretation: Itis inferred that about one-third of the investors investin SIP.
Systematic
Investment Paln
77%
Unsystematic
Investment Plan
23%
Investment Plan

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Ques.7: Whichtypeof Mutualfund schemeyou prefer?
Objectives: To know the investor invest in mutualfund schemewhat the
investor prefer.
Interpretation: From theabove graph we can clearly say that a little more
than a half of the investors prefer open ended schemesfollowed by a little less
than half of peopleprefer close ended schemes.
Open ended
investment plan
51%
Close ended
investment plan
49%
Scheme Preference

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Ques.8: Asamutualfund investorsshareyour experience?
Objective: Themain objective of the question is to enquirethe satisfaction
level attained by the peoplethrough media.
Interpretation: Morethan 60% of investorsof mutualfundsareunsatisfied
with the performanceof mutualfunds10% of the investorsare satisfied and
25% of the investorshave neutralresponsetowardsthe satisfaction provided.
Satisfied
10%
Neutral
25%
Unsatisfied
65%
Satisfaction Level

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Ques.9: Whatamountof risk would you prefer to undertake?
Objective: Theobjective of the question is known whatamountof risk the
investorsare ready to take.
Interpretation: Itis concludefrom the above that a little less than half people
investingin mutualfundsaremoderaterisk bearers followed by a little more
than one third are willing to take low level of risk.
High risk
18%
Moderate risk
45%
Low risk
37%
Level of Risk

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Ques.10: Whatisthe expectation of customer from their investmentin mutual
funds?
Objectives: Theobjective of this question is to enquirethe expectations in
terms of return of the investorsof mutualfunds.
Interpretation: From theabove graph wecan clearly say that a more than one
third of the peoplewantreturn between 25 to 35% return followed by a little
morethan one-fourthof the total population between 15 to 35%
21%
29%
31%
19%
0%
5%
10%
15%
20%
25%
30%
35%
Upto 15% 15 to 25% 25 to 35% More than 35%
Percentage

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Findings and Interpretations
 Morethan one-third of the samplesize is not aware about the mutual
funds. They do not know about mutualfund asa modeof investment.
 Electronic mediais the main sourcefor spreadingawarenessamongthe
peopleregardingmutualfundsinvestment.
 Investorsare satisfied with their modeof investmentand not want
switch to any other plan.
 Peopleif aware also do notinvest in mutualfundsdueto processing
charges taken by AMCswhich the customer think are unreasonably
incurred on it.
 The satisfaction level of customersis too low i.e. they are notsatisfied
with the returnsof the mutualfunds.
 The investorswho investthrough brokers’ faces the limitation of
inadequateknowledgeabout the risk and returnsassociated with the
investment. They investon what their broker suggests.
 Investorsof mutualfundsgenerally undertakemoderateamountof risk
and expected high return.
 Mutualfund industrycontinuously facingdownfalland lossesof folios.
 The mutual fund investorsprefersequity based schemes over balanced
and debt based, Systematic plan over unsystematic plansand open
ended scheme over close ended schemes.

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Learning and Experience
 The projectprovided mea great and deep insight in learning the
concepts of mutualfundsand its overallfunctioningof mutualfunds.
 Undertakingthis project helped me to learn somemutualfundsjargons.
 Also I learnt about the other investmentavenuesin which one could
invest.
 It also gave mean understandingof when to investand when to sell off.
i.e., investmentsmustbe bought when the market is down and when the
market is high they must sell it off.
 Duringthe workingon the project I learnt how to handle and deal
customerswhich helped me to improvemy marketingskills.
 Alongsidelearningabout the mutualfundsindustry, Ilearntthe basic
normsof an organization.
 Mutualfundsindustryand someother investmentavenueslack
awarenessamong the people.
 I learnt how to build healthy relationship with customer with providing
the best of services.

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Recommendations
 Awareness: Thefindingssuggestthat one-third of the peopleare
unawareof the term.
 Mutualfundsproductstheir type and risk and return associated with it.
Therefore proper awarenessshould be created amongst the people.
 Formulation of marketingandadvertisementstrategies: Mutualfunds
lacks marketing so good marketing strategies should be formulated so
that it hits the customersand bring moreinvestorsto the mutualfunds
industry.
 New distribution centers should be opened at urban and semi urban
areas so as to increase morecustomers from those areas so as the
customer don’t get limited to the metros and big cities.
 Some customersdon’t investin mutualfundsbecauseof the high
processingfee, transaction costs and other hidden costs charged by the
AMCs, if it is reduced it can bring morecustomers to mutualfunds
industry.

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Limitation of the Study
 The information provided by thecustomers may not be true because no
one can take interest to get in filling of the questionnaires. They
consider it a work which they wantto finishas soon as they have their
own limitations.
 The responsegiven by the respondentsmay vary dueto circumstances.
 The samplesize is limited to 100 therfore conclusionswithdrawn from
it might not be true.
 The respondentscan be biased sometime and can give manipulative
results.
 It gets difficultfor the surveyor to reach the target customers.
 The respondentsarenotalways awareabout the context.
 Lack of information sourcesfor the final analysisof the reportas only
primary datais notsufficient to conclude.
 Respondentsdon’tsend repliesalways.
 Time and money werethe major limiting factors for the study.

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Conclusion
The whole study conducted in this reportarticulates the customer’s
perception and their behavior towardsthe investment. Asfinancial markets
have become more sophisticated and unconventionalpeopleneed
intermediariesto investinto the market and to providethem best knowledge
about risk and return associated with the particular schemes. While
undergoingthe project a questionnairewas conducted on 100peoplewho
visited ICICIVaranasi for their own assistance and they have been asked
about mutualfund. Itwas found that peopleare not awareabout the mutual
fundsand if they are not aware of mutualfund asa concept so how come they
will investinto it. Also a person dueto some of the limitations of mutualfunds
hesitates to invest in it. Mutualfundsaregood for the peopleof lower income
group whose resourcesare limited and they can undertake moderaterisk and
expect high returns.
One of the reasons of peoplenotinvesting in mutualfund isas the current
trend of mutualfund industryshowsdownwardfalland peoplearenot
satisfied with the return. Also peopleconsider that the hidden costs are
unnecessarily imposed by AMCswhich should not be imposed.
At last I would liketo concludethat good marketing and proper advertisement
should be donefor mutualfund industryso as to bring new and target
customerswhich help the Indian industry to flourishall over the world.

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Bibliography
Websites:-
 www.sebi.com
 www.shcil.co.in
 www.google.com
 www.amfindia.com
 www.invetsopedia.com
Books:-
“Security analysis and portfolio management” by Fisher andJordan
“Research Methodology” by C.R. Kothari

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Thank you