Darshan.B.Purohit

137140592045

RESEARCH METHODOLOGYPrimary objective -

To study the Mutual Fund Market in Ahmedabad with the primary

objective to know Potential of mutual fund as an investment option.

Secondary Objective:

•To study the perception of Investor about different investment options

available in the market.

•To know the awareness of Mutual Funds in the market of Ahmedabad.

•To see the interest of people in investing in MUTUAL FUNDS.

CONTINUE…Research Design

Sampling

Sampling Unit

Sampling Size

Method of data collection

A Primary data collection source

Secondary data collection sources

Nature of Research

The MUTUAL FUNDS Industry Overview

The first was started in the Netherlands in 1822, and the second in Scotland in the 1880's.

First Phase – 1964-87

Second Phase – 1987-1993 (Entry of Public Sector Funds)

Third Phase – 1993-2003 (Entry of Private Sector Funds)

Fourth Phase – since February 2003

GROWTH OF MUTUAL FUNDS IN INDIA

STRUCTURE OF A MUTUAL FUNDSEBI

SPONSORTRUSTEE

OPERATIONSAMC

FUND

MANAGER

MKT. / SALESMUTUAL FUND

MKT. / SALES

SCHEMES DISTRIBUTER

INVESTORS

TYPES OF MUTUAL FUND SCHEMES

By Investment Objectives.

By Duration/Constitution.

Load and No-Load Funds.

Other types of schemes.

NJ IndiaInvest Pvt. Ltd.

Analysis and Interpretation

Age of respondent Occupation of respondent

0

5

10

15

20

25

18-25 26-35 36-45 46-55 56>

Age Group

No.of Investor

No.of Investor

0

2

4

6

8

10

12

14

16

18

20

Student Professional Business Service

Occupation of Investor

No of Investors

Investors invested in different kind of

investments

0 5 10 15 20 25 30

Saving A/c

Fixed Deposits

Mutual Fund

Post Office

Shares & Debentures

Gold & Silver

Real Estate

Other

Investors invested in different kind of investments

No of Investors

5%

33%

41%

4% 17%

Main Objective of investment for which investor invest.

Preservation of Principal

Current Income

Growth and Income

Conservative Growth

Aggressive Growth

Investment scheme investor invested

0 5 10 15 20 25 30

Saving A/c

Fixed Deposits

Mutual Fund

Post Office

Shares & Debentures

Gold & Silver

Real Estate

Other

In which investment scheme you invested

No of Investors

20

16

14

invested in last five years (In Lac)

00 to 03

04 to 05

5>

4 4

20

20

5

10

15

20

25

Source of awerness about mutual fund

Investors

0

2

4

6

8

10

12

14

16

18

QuickReturns

Growth RetirementPlanning

Tax

Series1 1 18 13 9

Reason for choosing AMC

44%

56%

Mode of Investment Preferred by the Investors

Lum Sum

SIP

Yes56%

No44%

Satisfaction with investment

0

2

4

6

8

10

12

14

16

18

20

Yes No

Series1 20 7

Ax

is T

itle

Would you like to Countinue investing in MF?

30%

61%

9%

Reason for not investing in mutual fund

Not Aware High Risk No Reason

Most of respondents are in the age group of 18-25 years. the second most investors are in the age group of 26-35 years.

investors seek to invest more in fixed deposits and their next preference is saving a/c,mutual funds,postoffice and gold and silver.

Fixed deposit is more attractive for those who park their money into safe place.

Majority investor invested 00 to 03 lac.in last five years.The next highest investment is 04 to 05 lac.

Findings

Conti… Financial Advisor is the most important source of

information about Mutual Fund.

Mostly MF investment is through agent only.Directinvestment is less attrective for investor.

Most of investor doing SIP(systemetic investment planning),and remaining are doing lum-sup.someinvestor also investing in both scheme.

Almost 56% investor are satisfied with their investment in mutual fund.

Most of people who are not investing in mutual fund they think mutual fund is high risky.

RECOMMENDATIONS The most vital problem spotted is of ignorance.

Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing.

Mutual funds offer a lot of benefit which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is? They only see it as just another investment option. So the advisors should try to change their mindsets.

Conti… Mutual Fund Company needs to give the training of

the Individual Financial Advisors about the Fund/Scheme and its objective, because they are the main source to influence the investors.

Systematic Investment Plan (SIP) is one the innovative products launched by Assets Management companies very recently in the industry. SIP is easy for monthly salaried person as it provides the facility of do the investment in EMI.

Conclusion Running a successful Mutual Fund requires complete

understanding of the peculiarities of the Indian Stock Market and also the psyche of the small investors.

“Brand” plays important role for the investment. People invest in those Companies where they have faith or they are well known with them.

Distribution channels are also important for the investment in mutual fund. Financial Advisors are the most preferred channel for the investment in mutual fund. They can change investors’ mind from one investment option to others.

Thank You