BLACK BOOK ON MUTUAL FUNDS IN DETAIL

1. MUTUAL FUNDS
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ANURADHA BHARATI
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CHAPTER 1
1.1 INTRODUCTION
1.2 OBJECTIVE
1.3 SCOPE
1.4 RESEARCH METHODLOGY
1.5 LIMITATIONS

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1.1 INTRODUCTION
Mutual Funds are professionally managed pool of money from a group of
investors. A Mutual fund manager invests your funds in securities including stocks and
bonds, Money Market instruments or some combination and decides the best time to buy
and sell. By pooling your resources with other investors in Mutual Funds, you can
diversify even a small investment over a wide spectrum. With the emergence of the
capital market at the center stage of the Indian financial system from its marginal role a
decade earlier, the Indian capital market also witnessed during the same period a
significant institutional development in the form of diversified structure of Mutual Funds.
A Mutual fund is a special type of investment institution which acts as an
investment conduit. It pools the savings, particularly of the relatively small investors, and
invests them in a well-diversified portfolio of sound investment. As an investment
intermediary, it offers a variety of services/advantages to the relatively small investors
who on their own cannot successfully construct and manage investment portfolio mainly
due to the small size of their funds, lack of expertise and experience, and so on.
These services include the diversification of portfolio, expertise of the professional
management, liquidity of investment, tax shelter, reduced risk and reduced cost. Mutual
fund is the most suitable investment mode for the common man as it offers an
opportunity to invest in a diversified, professionally managed portfolio at a relatively low
cost. Anybody with an investible surplus of as little as a few thousand rupees can invest
in mutual funds. Each Mutual fund scheme has a defined investment Objective and
strategy.
The most important trend in the Mutual Fund industry is the aggressive expansion of
the foreign owned mutual Fund companies and the decline of the companies floated by
nationalized banks and smaller private sector players. Funds issue and redeem shares on
demand at the fund's net asset value (NAV). Mutual fund management fees typically

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range between 0.5% and 2% of assets per year, exchange fees and other administrative
charges also apply.
According to SEBI - Mutual Fund is defined as - “A fund established in the form of
a trust to raise money’s through the sale of units to the public or a section of the public
under one or more schemes for investing in securities, including money market
instruments.”
Mutual Fund is a mechanism for pooling the resources by issuing units to the
investors and investing funds in securities in accordance with objectives as disclosed in
the offer document.

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1.2 OBJECTIVES OF THE STUDY
 To study about the factors of customer perception towards mutual funds.
 To know about the knowledge and uses of schemes used by customers
 To find out the views of the customers while using mutual funds schemes.

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1.3 SCOPE OF THE STUDY
 Area is restricted to only Navi Mumbai because due to the time constraint and not
able to visit all the branches in other cities or states.
 All the classes of the customers were taken into consideration.
 This study was covered mutual funds schemes or investment sector.
 This is a realistic source directly collected from the customers of mutual funds
users

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1.4 RESEARCH METHODOLOGY
What is Research ?
Research is defined as human activity based on intellectual application in the
investigation of matter. The primary purpose for applied research is discovering,
interpreting, and the development of methods and systems for the advancement of human
knowledge on a wide variety of scientific matters of our world and the universe. The term
research is also used to describe an entire collection of information about a particular
subject.
METHODOLOGY
It is the method followed while conducting the study on a particular project.
Through this methodology a systematic study is conducted on the basis of which the basis
of a report is produced.
It includes not only the research methods but also considers the logic behind the
methods used in the context of the study and explains why only a particular method or
technique has been used.
The methodology adopted for studying the objectives was surveying the in house
customers of mutual funds in the city of Navi Mumbai
SOURCE OF DATA
SECONDARY DATA:
 Articles on mutual funds schemes taken from journals, magazines published from
time to time.
 Through internet.

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PRIMARY DATA:
 Questionnaire was used to collect primary data from respondents.
 The questionnaire was structured type and contained questions relating to different
dimensions of mutual funds preferences among service class such as level of usage,
factors influencing the usage of mutual funds schemes, benefits accruing to the users
of mutual funds users, problems encountered.
 An attempt was also made to elicit reasons for its non-usage.
 The questions included in the questionnaire were open-ended, dichotomous and
offering multiple choices.

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1.5 LIMITATIONS
Every research is conducted under some constraints and this research is not an
exception.
Limitations of this study are as follows:-
 As a research is based on a sample, therefore, the findings may not reveal the factual
information about the research problem, though an utmost care will be taken to select
a truly representative sample.
 There may be some bias in the responses of the respondents which cannot be ruled
out fully.
 Sudden change in the mutual funds schemes practices during the course of research
can affect the results.
 The study is limited to areas of Navi Mumbai only.
 The sample size of only 50 was taken from the large population for the purpose of
study, so there can be difference between results of sample from total population.
 People were reluctant to go in to details because of their busy schedules.
 Due to continuous change in environment, what is relevant today may be irrelevant
tomorrow.

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CHAPTER 2
CONCEPTUAL FRAME WORK OF STUDY
2.1 HISTORY OF MUTUAL FUNDS
2.2 CHARATERISTICS OF MUTUAL FUNDS
2.3 OBJECTIVE OF MUTUAL FUNDS
2.4 FUNCTIONS
2.5 TYPES
2.6 STRUCTURE
2.7 ADVANTAGE AND DISADVANTAGE
2.8 RISK

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2.1 HISTORY
Mutual funds really captured the public's attention in the 1980s and '90s when
mutual fund investment hit record highs and investors saw incredible returns. However,
the idea of pooling assets for investment purposes has been around for a long time. Here
we look at the evolution of this investment vehicle, from its beginnings in the
Netherlands in the 18th century to its present status as a growing, international industry
with fund holdings accounting for trillions of dollars in the United States alone.
In the Beginning
Historians are uncertain of the origins of investment funds; some cite the closed-
end investment companies launched in the Netherlands in 1822 by King William I as the
first mutual funds, while others point to a Dutch merchant named Adriaan van Ketwich
whose investment trust created in 1774 may have given the king the idea. Ketwich
probably theorized that diversification would increase the appeal of investments to
smaller investors with minimal capital. The name of Ketwich's fund, Eendragt Maakt
Magt, translates to "unity creates strength". The next wave of near-mutual funds included
an investment trust launched in Switzerland in 1849, followed by similar vehicles created
in Scotland in the 1880s.
The idea of pooling resources and spreading risk using closed-end investments soon
took root in Great Britain and France, making its way to the United States in the 1890s.
The Boston Personal Property Trust, formed in 1893, was the first closed-end fund in the
U.S. The creation of the Alexander Fund in Philadelphia in 1907 was an important step in
the evolution toward what we know as the modern mutual fund. The Alexander Fund
featured semi-annual issues and allowed investors to make withdrawals on demand.
The Arrival of the Modern Fund
The creation of the Massachusetts Investors Trust in Boston, Massachusetts,
heralded the arrival of the modern mutual fund in 1924. The fund went public in 1928,

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eventually spawning the mutual fund firm known today as MFS Investment Management.
State Street Investors' Trust was the custodian of the Massachusetts Investors' Trust. Later,
State Street Investors started its own fund in 1924 with Richard Paine, Richard Saltonstall
and Paul Cabot at the helm. Saltonstall was also affiliated with Scudder, Stevens and
Clark, an outfit that would launch the first no-load fund in 1928. A momentous year in
the history of the mutual fund, 1928 also saw the launch of the Wellington Fund, which
was the first mutual fund to include stocks and bonds, as opposed to direct merchant bank
style of investments in business and trade.
Regulation and Expansion
By 1929, there were 19 open-ended mutual funds competing with nearly 700
closed-end funds. With the stock market crash of 1929, the dynamic began to change as
highly-leveraged closed-end funds were wiped out and small open-end funds managed to
survive.
Government regulators also began to take notice of the fledgling mutual fund
industry. The creation of the Securities and Exchange Commission (SEC), the passage of
the Securities Act of 1933 and the enactment of the Securities Exchange Act of 1934 put
in place safeguards to protect investors: mutual funds were required to register with the
SEC and to provide disclosure in the form of a prospectus. The Investment Company Act
of 1940 put in place additional regulations that required more disclosures and sought to
minimize conflicts of interest. (For further reading, see Policing The Securities Market:
An Overview Of The SEC.)
The mutual fund industry continued to expand. At the beginning of the 1950s, the
number of open-end funds topped 100. In 1954, the financial markets overcame their
1929 peak, and the mutual fund industry began to grow in earnest, adding some 50 new
funds over the course of the decade. The 1960s saw the rise of aggressive growth funds,
with more than 100 new funds established and billions of dollars in new asset inflows.
Hundreds of new funds were launched throughout the 1960s until the bear market of 1969
cooled the public appetite for mutual funds. Money flowed out of mutual funds as quickly
as investors could redeem their shares but the industry's growth later resumed.

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Recent Developments
In 1971, William Fouse and John McQuown of Wells Fargo Bank established the
first index fund, a concept that John Bogle would use as a foundation on which to build
The Vanguard Group, a mutual fund powerhouse renowned for low-cost index funds. The
1970s also saw the rise of the no-load fund. This new way of doing business had an
enormous impact on the way mutual funds were sold and would make a major
contribution to the industry's success.
With the 1980s and '90s came bull market mania and previously obscure fund
managers became superstars; Max Heine, Michael Price and Peter Lynch, the mutual
fund industry's top gunslingers, became household names and money poured into the
retail investment industry at a stunning pace. More recently, the burst of the tech bubble
and a spate of scandals involving big names in the industry took much of the shine off of
the industry's reputation. Shady dealings at major fund companies demonstrated that
mutual funds aren't always benign investments managed by folks who have their
shareholders' best interests in mind.
Despite the 2003 mutual fund scandals and the global financial crisis of 2008-2009,
the story of the mutual fund is far from over. In fact, the industry is still growing. In the
U.S. alone there are more than 10,000 mutual funds, and if one accounts for all share
classes of similar funds, fund holdings are measured in the trillions of dollars. Despite the
launch of separate accounts, exchange-traded funds and other competing products, the
mutual fund industry remains healthy and fund ownership continues to grow.
DEFINITION
“A Mutual Fund is a financial intermediary which acts as an instrument of
investment. It collects the funds from different investors to a common pool of investible
funds and then invest these funds in a wide variety of investment opportunities in
diversified portfolios of securities such as Money Markets instrument, corporate and
government bonds and equity shares of joint stock companies. The investment may be

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diversified to spread risk and to ensure good return to the investors. The Mutual Funds
employ professional, experts and investment consultants to conduct investment analysis
and then to select the portfolio of securities where the funds are to be invested. Each
investor owns units, which represent a portion of the holdings of the fund.”
You can make money from a MF in three ways:-
1. Income is earned from dividends on stocks and interest on bonds. A Fund pays out
nearly all income it receives over the year to fund owners in the form of a distribution.
2. If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in the form of dividends.
3. If fund holdings increase in price but are not sold by the fund manager, the fund’s
shares increase in price. You can then sell your Mutual Fund units for a profit. Funds will
also usually give you a choice either to receive a cheque for dividends or to re-invest the
same and get more units

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2.2 CHARACTERISTICS OF MUTUAL FUNDS:
 A Mutual Fund actually belongs to the investors who have pooled their funds.
 The ownership of the Mutual Fund is in the hands of the investors. Mutual funds
are trusts or registered associations managed by investment professionals and
other service providers, who earn a fee for their services from the fund.
 The pools of the funds are invested in a portfolio of marketable investments
(Shares and Securities). The value of the portfolio is updated every day.
 Mutual funds collect money from small investors and in return, they will issue a
certificate in units.
 The investor’s share in the fund is denoted by “UNITS". The value of the units
changes with the change in the portfolio’s value every day.
 The profits of investments will be distributed to the unit holders. The unit holders
can sell their units in the open market at ‘Net Asset Value’ (NAV).

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2.3 OBJECTIVES OF MUTUAL FUNDS
The objectives sought to be achieved by Mutual funds are
as follows:-
 To provide an opportunity for lower income groups to acquire without much
difficulty property in the form of shares.
 To cater mainly to the need of individual investors whose means are small?
 To manage investor’s portfolio’s in a manner that provides regular income,
growth, safety, liquidity and diversification

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2.4 FUNCTION OF MUTUAL FUNDS

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1.6 TYPES OF MUTUAL FUNDS

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OPEN - ENDED SCHEME
An open-ended scheme is a scheme in which an investor can buy and sell units on
a daily basis. The scheme has a perpetual existence and flexible, ever changing corpus.
Open-Ended schemes do not have a fixed maturity period. The investors are free to buy
and sell any number of units, at any point of time, at prices that are linked to the NAV of
the units.
In these schemes the investor can invest and dis invest any amount, any time after
a short initial lock – in period. This scheme gives investors with instant liquidity and fund
announces sale and repurchase price from time to time. The units can be bought from and
sold to any Mutual Fund.
Advantages of Open-ended funds over Close-ended funds:
 Any time Entry Option.
 This provides ready liquidity to the investors and avoids reliance on transfer deeds,
signature verification and bad deliveries.
 Allows to enter the fund at any time and even to invest at regular intervals
 Any time Exit Option.
CLOSE – ENDED SCHEME
A Close-ended scheme has a stipulated maturity period. E.g. 5-7 years. A Close-
ended scheme is one in which the subscription period for the Mutual Fund remains open
only for a specific period, called the ‘redemption period’. At the end of this period, the
entire corpus is dis invested and the proceeds distributed to unit holders. After final

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distribution the scheme ceases to exist. Such schemes can be rolled over by approval of
unit holders.
 Reason’s for fluctuations in NAV Investor’s doubts about the abilities of the fund’s
management.
 Lack of sales effort (Brokers earn less commission on
 closed end schemes than on open ended schemes).
 Riskiness of the fund. Lack of marketability of the fund’s units.
INTERVAL SCHEMES
Interval schemes are those that combine both the features of both open-ended and
close-ended schemes. The units may be traded on the stock exchange or may be open for
sale redemption during predetermined intervals at NAV related prices.

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1.7 STRUCTURE OF MUTUAL FUNDS

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SPONSOR:
Establishes the MUTUAL FUND
→ Need to have sound financial track record.
→ Appoints TRUSTEES.
→ Appoints Asset Management Company.
→ Must contribute 40% of the net worth of the AMC.
 Sometimes this power is given by the sponsor to the trustees through the trust deed.
 At least 50% of directors on the board of Asset Management Company should be
independent of the sponsor.
 Asset Management Company shall not deal with any broker or firm associated with
sponsor beyond 5% of daily gross business of the Mutual Fund.
 All securities transactions of the Asset Management Company with its associates
should be disclosed
TRUSTEE:
 Manages the Mutual Fund and look after the operation of the appointed AMC.
 The investments are held by the Trustees, in a fiduciary responsibility.
 Trustees approve each Mutual Fund Scheme floated by AMC.
 Furnish report to SEBI on half yearly basis on AMC and Fund Functioning.
ASSET MANAGEMENT COMPANY:
 AMC acts as investment manager of the trust under the board supervision and
direction of the trustees.
 AMC floats the different Mutual Fund schemes.

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 Submits report to the Trustees on quarterly basis, mentioning activity and compliance
factor.
 AMC is responsible to the trustees.
 AMC fees have a ceiling, decided by SEBI.
 Should have a net worth of at least Rs.11 crores at all the times.
CUSTODIAN:
 Appointed by board of trustees for safekeeping of Securities.
 It’s an entity independent of sponsors.
 SEBI regulates the securities market in India. According to SEBI every Mutual Fund
require that at least two thirds of the directors of trustee company or board of trustees
must be independent i.e. they should not be associated with the sponsors. Also, 50%
of the directors of AMC must be independent.
 All Mutual Fund are required to be registered with SEBI before they launch any
Scheme

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1.8 ADVANTAGE AND DISADVANTAGE
The key advantages of both open and close-end Mutual Funds is that they put
professional managers with experience and access to sophisticated financial research to
work for you this, and other wide range of key benefits are as follows :-
1)Professional Management
Experienced portfolio managers carefully select a fund’s holdings according to the fund’s
seated investment objective. The portfolio management team continuously monitors and
evaluates the fund’s holdings to help make sure it keeps pace with changing market
conditions. The team decides when to buy and sell securities. There is a fee associated
with this professional management.
2) Diversification
A Single diversified Mutual Fund may invest in dozens – even hundreds – of different
holdings. This approach may reduce the impact on your return if any one investment held
by the fund declines. Diversification spreads your assets among different types of
holdings and may be one of the best ways to protect yourself amid the complexity and
uncertainty of the financial markets.
3) Compounding
In a Mutual Fund, you may choose to reinvest your earnings automatically to buy more
shares. When you reinvest, not only do you have the potential to earn money on your
initial investment, you may also have the opportunity to earn money on the dividends and
capital gains you accumulate. Compounding may increase the impact of what you
contribute and can help your money grow faster. And the longer you invest, the greater
the potential growth.
4) Systematic Investing :
You can invest in most mutual funds automatically through regular payments directly
from your bank account; you can start building a long-term investment program. With
systematic investing you invest a fixed amount of money at regular intervals regardless of
market conditions, helping out market fluctuations.
5) Hassle-free operations
With most Mutual Funds, buying and selling shares, changing distribution options, and
obtaining information can be accomplished conveniently by telephone, by mail, or online.

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Although a fund’s shareholder is relieved of the day-to-day tasks involved in researching,
buying and selling securities, an investor will still need to evaluate a Mutual Fund based
on investment goals and risk tolerance before making a purchase decision. Investors
should always read the prospectus carefully before investing in any Mutual Fund
6) Buying Power
When you invest in a mutual fund, you join the other investors in a pool of investment
money. The result is that you have a “partial stake” in each company the fund holds for a
relatively small amount of principal invested, while potentially offsetting some of the risk
associated with holding individual securities.
7) Choice
There is an incredible array of mutual funds – more than 11,000 – available to meet your
specific Investment objective. Funds have different investment objectives and degrees of
investment risk – often indicated through asset classes and sub-classes, such as money
market funds, fixed income funds, balanced funds, growth and income funds, growth
funds and aggressive growth funds.
8 )Liquidity
Mutual fund shares are liquid and orders to buy or sell are placed during market hours.
However, orders are not executed until the close of business when the NAV (Net Asset
Value) of the fund can be determined. Fees or commissions may or may not be applicable.
Fees and commissions are determined by the specific fund and the Institution that
executes the order.
9) Transparency
You get regular information on the value of your investments in addition to disclosure on
the specific investments made by your scheme, the proportion invested in each class of
assets and the fund manager’s investment strategy and outlook.

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DISADVANTAGES OF MUTRUAL FUNDS
1. Management Fees
Mutual fund companies have to pay salaries and marketing expenses and they always get
paid FIRST before the investors/owners get paid! Management fees are one of the key
metrics to watch out for as an investor because they can quickly and devilishly eat into
your profits over time. Do higher management fees correlate to higher returns and better
performance? As it turns out, the answer is NO. In fact, many studies have been done that
show higher fees generally correlate to lower performance.
2. Locked in Clause.
There are two different mutual fund structures - one allows you to go in and out at any
time. The other one is locked in for 5-7 years. With this one, if you try to take your
money out earlier, you’ll get charged for it. Make sure to ask your financial advisor
which type you are investing in.
3. Wasted Cash.
Because people occasionally want to withdraw their mutual funds, there must always be
funds available - in cash - for payouts. When money’s in cash, it’s not collecting interest.
Since this comes from a portion of the investment funds, it means it doesn’t collect any
interest for you. That amount of cash is better off sitting in your bank account.
4. Mutual Fund Charges.
Mutual funds charge fees when you redeem your money. There are also “operating
expense” fees. This is a percentage of what it costs to run the fund. Let’s say you invested
$10,000, and the operating fees are 2%. This means that you are effectively paying $200
every year in operating charges

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1.9 RISK ASSOCIATED WITH MUTUAL FUNDS
The Principal that the greater risk you take, the greater the potential reward.
Typically, risk is defined as short – term price variability. But on a long – term basis, risk
is the possibility that your accumulated real capital will be insufficient to meet your
financial goals. And if you want to reach your financial goals, you must start with an
honest.
At the cornerstone or investing is the basic appraisal of your own personal comfort
zone with regard to risk. Individual tolerance for risk varies, creating a distinct
‘investment personality’ for each investor. Some investors can accept short-term volatility
with ease, others with near panic. So whether you consider you investment temperament
to be conservative, moderate or aggressive, you need to focus on how comfortable or
uncomfortable you will be as the value of your investment moves up or down.

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CHAPTER 3
REVIEW OF LITERATURE
1. Jaya dev (1996) “Mutual Fund Performance: An Analysis of Monthly Returns”,
Finance Indian, Vol X, No. 1, March, 1996
2. Massimo Massa and Lee Xhang (2008) “The Effects of Organizational Structure
on Asset Management”,
3. Ammann, M. and Verhofen, M. (2008) “The Impact of Prior Performance on the
Risk-Taking of Mutual Fund Manager”, Annals of Finance, No 5, pp. 69–90.
4. Smith, D.M. (2009) “The Economics of Mutual Funds”, Chapter-3 of
forthcoming in John A Haslem (ed.) ‘A Companion to Mutual Funds’, John Wiley
Sons, USA.
5. Choi, Y.K. (2006) “Relative Portfolio Performance Evaluation and Incentive
Structure”, Journal of Business, Vol. 79, No. 2, pp. 903–21.
6. Gupta, M. and Aggarwal, N. (2009) “Mutual Fund Portfolio Creation Using
Industry Concentration”, The ICFAI Journal of Management Research, Vol. Viii,
No. 3, pp. 7–20
7. Sharpe, William F. (1964) “Capital Asset Prices: A Theory of Market
Equilibrium under Conditions of Risk”, Journal of Finance, 19: Sept, pp. 225–242.
8. Treynor, J.L (1965) “How to Rate Management of Investment Funds”, Harvard
Business Review, Vol. 43, pp. 63–75.
9. Treynor, J.L. and Mazuy, K.K. (1966) “Can Mutual Funds Outguess the
Makrets”, Harvard Business Review, Vol. 44, pp. 131–136.

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10. Jensen, M.C. (1967) “The Performance of Mutual Funds in the Period 1945–64”,
Journal of Finance, Vol. 23, No. 2, pp. 389–416.
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Q.1 WHAT KIND OF INVESTMENT YOU PREFER MOST?
SAVING ACCOUNT 30
FIXED DEPOSIT 10
MUTUAL FUNDS 5
PPF 5
TOTAL 50
INTERPRETATION: The above fig. Shows that the 60% respondents are investing

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saving accounts and then 20% respondents are using investing in fixed deposit and 10%
in mutual funds and PPF.
Q.2 WHILE INVESTING YOUR MONEY WHICH FACTOR YOU PREFER
MOST?
LIQUIDITY 25
LOW RISK 15
HIGH RISK 5
COMPANY REPUTATION 5
TOTAL 50
INTERPRETATION: The above fig shows that the investing factors i.e 50% people
invest for liquidity and then 30% for low risk and then the rest.

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Q.3 HAVE YOU EVER INVESTED YOUR MONEY IN MUTUAL FUNDS?
YES 42
NO 8
TOTAL 50
INTERPRETATION: The above fig shows that the 84% people invested in mutual
funds and rest are not interested.

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Q.4 WHERE DO YOU FIND YOUR SELF AS MUTUAL FUND INVESTORS?
TOTALLY IGNORANT 28
PARTIAL KNOWLEDGE OF MF 5
AWARE ONLY OF ANY SPECIFIC
SCHEME IN WHICH YOU INVESTED
15
FULLYAWARE 2
TOTAL 50
INTERPRETATION: The above fig shows that the self-investors that are 56% don’t
have knowledge about mutual funds and 30% are only aware about their specific schemes

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and then 10% are partially known and the rest are having full knowledge.
Q.5 IN WHICH KIND OF MUTUAL YOU WOULD LIKE TO INVEST?
PUBLIC 35
PRIVATE 15
TOTAL 50
INTERPRETATION: The above fig shows about the sector of investments i.e 70% ppl
invest in public sector while rest in private sector.

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Q.6 IN WHICH MUTUAL FUNDS YOU HAVE INVESTED?
SBIMF 33
UTI 8
HDFC 4
ICICI 5
TOTAL 50
INTERPRETATION: The above fig shows that the organization for investments i.e 66%
in SBIMF as it is public sector and the in UTI 16% then in ICICI 10% and rest in HDFC

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Q.7 WHERE YOU INVEST IN MUTUAL FUNDS WHICH MODE OF
INVEESTMENT WILL YOU PREFER?
ONE TIME 8
SYSTEMATIC INVESTMENT PLAN 42
TOTAL 50
INTERPRETATION: The above fig shows the mode of investment i.e 84% ppl invest
systematically with plans and rest one time investment.

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Q.8 WHERE FROM YOU PURCHASE MUTUAL FUNDS?
DIRECTLY FROM AMC 22
BROKERS ONLY 4
BROKERS/SUB BROKERS 14
OTHERS 10
TOTAL 50
INTERPRETATION: The above fig shows that the 44% ppl purchase directly from
AMC and then from 28% from sub brokers then from others 20% and rest from brokers

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Q.9 WHICH AMC WILL YOU PREFER TO INVEST?
SBIMF 33
HDFC 4
UTI 6
ICICI 7
TOTAL 50
INTERPRETATION: The above fig shows that the 66% ppl prefer SBIMF for
investments then ICICI 14% then UTI 12% and the rest in HDFC.

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Q.10 HOW WOULD YOU LIKE TO RECEIVE THE RETURN EVERY YEAR?
DIVIDEND PAYOUT 28
DIVIDEND RE INVESTMENT 12
GROWTH IN NAV 10
TOTAL 50
INTERPRETATION: The above fig shows that the returns i.e 56% for dividend payout
then 24% for re investments 20% for growth in NAV.

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Q.11 WHICH SECTOR ARE YOU INVESTING IN MUTUAL FUNDS SECTORS?
DEBT FUNDS 4
GOLD FUNDS 16
BANKING FUNDS 21
REAL ESTATE 9
TOTAL 50
INTERPRETATION: The above fig shows that the investment sectors i.e 42% banking
funds then 32% gold funds then real estate 18% and rest for debt funds.

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Q.12 HOW IS YOUR INVESTMENT PATTERN?
MONTHLY 9
ONCE IN SIX MONTHS 26
ONCE IN YEAR 8
VERY RARE 7
TOTAL 50
INTERPRETATION: The above fig shows that the investment pattern i.e once in six
months 52% then monthly 18% then once in year 16% then the rest are very rare.

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Q.13 IF DEBT FUNDS THEN WHICH CATEGORY?
GILT FUNDS 4
INCOME FUNDS 21
SHORT TERM PLANS 6
LIQUID FUNDS 19
TOTAL 50
INTERPRETATION: The above fig shows that the debt category i.e 42% income funds
then 38% liquid funds then short term plans12% and the rest for gilt funds.

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Q.14 ACCORDING TO YOU, WHICH ONE DO YOU RATE AS THE BEST
INVESTMENT INSTRUMENT?
SAVING BANK 12
FIXED DEPOSITE 6
POSTAL SAVING 11
INSURANCE 21
TOTAL 50
INTERPRETATION: The above fig shows that the investment instruments i.e 42%
insurance then 24% saving bank then 22% postal saving and rest for fixed deposit.

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Q.15 ARE THE SUFFICENT MUTUAL FUNDS INVESTOR EDUCATION AND
SERVICE CENTER IN NAVI MUMBAI?
YES 43
NO 7
TOTAL 50
INTERPRETATION: The above fig shows that the service center i.e 86% yes and rest
don’t know about it.

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Q. 16 YOU BELONG TO WHICH OF THE FOLLOWING CATEGORY?
GOVT EMPLOYEE 9
PROFFESSIONALS 15
BUSINESS 26
TOTAL 50
INTERPRETATION: The above fig shows that the occupation i.e 52% business then
30% professionals and the rest are govt. employees.

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Q.17 WHAT IS THE PERCENTAGE OF SAVING FROM YOUR TOTAL
INCOME?
<=25% 23
<=50% 7
<=75% 4
NONE 16
TOTAL 50
INTERPRETATION: The above fig shows that the % of total income for investments
i.e 46% for <=25% then 32% for none then <=50% for 14% and the rest for <=75%.

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Q.18 IF EQUITY FUNDS THEN, IN WHICH CATEGORY?
DIVERSIFIED EQUITY FUNDS 11
MID CAP FUNDS 9
SECTOR SPECIFIED FUNDS 10
TAX SAVINGS 20
TOTAL 50
INTERPRETATION : The above fig shows that the equity funds category i.e 40% tax
saving then 22% diversified equity funds then 20% specific sector funds and then rest for
mid cap funds.

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Q. 19 SINCE HOW MANY YEARS YOU ARE INVESTING IN MUTUAL FUNDS
SCHEME?
ONE YEAR 14
MORE THEN 2 YEAR 16
MORE THEN 5 YEAR 12
NONE 8
TOTAL 50
INTERPRETATION: The above fig shows that the years of investments i.e 32% more
than 2 years then 28% one year then 24% more than 5 years and rest for none.

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Q.20 CAN MUTUAL FUNDS CAN BE RISK FREE INVESTMENTS?
YES 27
NO 23
TOTAL 50
INTERPRETATION : The above fig shows about the risk free investments i.e 54% says
yes its risk free but 46% say no its not risk free.

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CHAPTER 5
CONCLUSIONS
This study attempted to identify key quality attributes of mutual funds schemes by
analyzing their comments on investments experience. The findings of this study show
that despite of many better schemes people are yet not aware of investments in mutual
funds. Although every bank today provides the facility of investments in assets but
mostly people invest only once in 2 years.
Identification & measurement of customer’s expectations of the investments plans
provides a frame of reference & their related expectations dimension. The main factors
which persuade people to saving accounts are comfortable. Therefore the implementation
of quality initiatives should begin with defining customer’s need & preferences & their
related expectations dimensions.
There is still a lot needed for the mutual funds to make reforms and train their
customers for investing for their benefits. Going through the survey the main problem lies
that still customer have a fear of losing their money i.e risk
Banks are trying their level best by providing the best security options to the
customers but then to there is lot of factors which betrays a customer from investing in
mutual funds.By asking the mutual funds employs we came to know that maximum
numbers of investors are professionals and business man.
If proper training should be given to customer by the mutual funds employs to
invest and the RBI guide lines on various aspects of mutual funds investments will
definitely help in rapid growth of organization in India.

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FACTS AND FINDINGS
 From our study we find out that people are not properly aware of mutual funds
schemes.
 Most of the respondents who lies under the occupation business and professionals are
investing in mutual funds schemes. 52% of respondents are business men as they
have much money to invest and are aware of schemes
 Among those aware (which account for 50 in number) about 42 persons have
invested in mutual funds. Mutual funds schemes are from many constitutes schemes
provided in terms of period, risk, income, occupation,etc.,
 When asked to list various benefits accruing from investments highest chosen are
liquidity and low risk.
 Among the users, various problems that are encountered while investments that they
fully don’t trust in investing in mutual funds as there is little amount of risk.
 Most of the trust in SBIMF for investments. Then they believe in other organizations.
 Majority of people invest in public sector rather than private sector. As the public
sectors are much better then private sectors.

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CHAPTER 6
RECOMENDATION AND SUGGESTION
 Organization should make people aware about the investment schemes and the
benefits of investments.
 People are not having knowledge about the investments plans.
 Employees of organization should make an effort towards customers to know about
the investments and benefits they should get proper knowledge about the investments
 Organization should promote their schemes so that people can understand easily.
 The policy should be according to the norms of RBI so that they should be secure
and people can trust in investments.
 There should be good relationship between the investor and the employees so that
people will understand their language and can trust them.

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WEBLOGRAPHY
 www.mutualfundsindia.com
 www.groww.in
 www.economictimes.com
 www.sbimf.com
 www.hdfcfunds.com
 www.icicifunds.com

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QUESTIONNAIRE
PERSONAL DETAILS
NAME:-________________________________________________________________
AGE:-____________________
GENDER:- MALE
FEMALE
OCCUPATION:-________________________________________
Q.1 WHAT KIND OF INVESTMENT YOU PREFER MOST?
1. SAVING ACCOUNT
2. FIXED DEPOSIT
3. MUTUAL FUNDS
4. PPF
5.
Q.2 WHILE INVESTING YOUR MONEY WHICH FACTOR YOU PREFER
MOST?
1. LIQUIDITY
2. LOW RISK
3. HIGH RISK
4. COMPANY REPUTATION

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Q.3 HAVE YOU EVER INVESTED YOUR MONEY IN MUTUAL FUNDS?
1.YES
2.NO
Q.4 WHERE DO YOU FIND YOUR SELF AS MUTUAL FUND INVESTORS?
1. TOTALLY IGNORANT
2. PARTIAL KNOWNLEDGE OF MF
3. AWARE ONLY OF ANY SPECIFIC SCHEME IN WHICH YOU INVESTED
4. FULLY AWARE
Q.5 IN WHICH KIND OF MUTUAL YOU WOULD LIKE TO INVEST?
1. PUBLIC
2. PRIVATE
Q.6 IN WHICH MUTUAL FUNDS YOU HAVE INVESTED?
1. SBIMF
2. UTI
3. HDFC
4. ICICI

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Q.7 WHEN YOU INVEST IN MUTUAL FUNDS WHICH MODE OF
INVEESTMENT WILL YOU PREFER?
1. ONE TIME INVESTMENT
2. SYSTEMATIC INVESTMENT PLAN
Q.8 WHERE FROM YOU PURCHASE MUTUAL FUNDS?
1. DIRECTLY FROM THE AMC ’ s
2. BROKERS ONLY
3. BROKERS/ SUB BROKERS
4. OTHER SOURCES
Q.9 WHICH AMC WILL YOU PREFER TO INVEST?
1.SBIMF
2.HDFC
3.UTI
4.ICICI
Q.10 HOW WOULD YOU LIKE TO RECEIVE THE RETURN EVERY YEAR?
1. DIVIDEND PAYOUT

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2. DIVIDEND RE-INVESTMENT
3. GROWTH IN NAV
Q.11 WHICH SECTOR ARE YOU INVESTING IN MUTUAL FUNDS SECTORS?
1.DEBT FUND
2.GOLD FUND
3.BANKING FUND
4.REAL ESTATE FUND
Q.12 HOW IS YOUR INVESTMENT PATTERN?
1. MONTHLY
2. ONCE IN SIX MONTHS
3. ONCE IN YEAR
4. VERY RARE
Q.13 IF DEBT FUNDS THEN WHICH CATEGORY?
1.GILT FUNDS
2.INCOME FUNDS
3.SHORT TERM PLANS
4.LIQUID FUNDS

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Q.14 ACCORDING TO YOU, WHICH ONE DO YOU RATE AS THE BEST
INVESTMENT INSTRUMENT?
1. SAVING BANK
2. FIXED DEPOSITE
3. POSTAL SAVING
4. INSURANCE
Q.15 ARE THE SUFFICENT MUTUAL FUNDS INVESTOR EDUCATION AND
SERVICE CENTER IN NAVI MUMBAI?
1. YES
2. NO
Q.16 YOU BELONG TO WHICH OF THE FOLLOWING CATEGORY?
1. GOVT. EMPLOYEE
2. PROFESSIONAL
3. SELF EMPLOYED
4. BUSINESS PERSON

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Q.17 WHAT IS THE PERCENTAGE OF SAVING FROM YOUR TOTAL INCOM?
1. <=25%
2. <=50%
3. <=75%
4. OTHERS
Q.18 IF EQUITY FUNDS THEN, IN WHICH CATEGORY ?
1. DIVERSIFIED EQUITY FUNDS
2. MID CAP FUNDS
3. SECTORS SEPCIFIC FUNDS
4. TAX SAVINF FUNDS
Q.19 SINCE HOW MANY YEARS YOU ARE INVESTING IN MUTUAL FUNDS
SCHEME?
1. ONE YEAR
2. MORE THEN TWO YEAR
3. MORE THEN FIVE YEAR
4. NONE

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Q.20 CAN MUTUAL FUNDS CAN BE RISK FREE INVESTMENTS?
1. YES
2. NO
THANK YOU VERY MUCH FOR YOUR KIND
SUPPORT
AND
CO-OPERATION.