Main mf 1

ABSTRACT
This research is to study the reason for customer preference toward the mutual fund product in
mutual mutual fund, its service and quality .there are huge number of AMC ( assest management company)
are available in India.
There are different types of mutual fund available in India. the customer can’t able to identify
the best scheme among the available schemes invest. the need of the customer may change according to the
age ,sex and the monthly income. Thus the AMC’s should identify the need of the customer by creating
awareness towards the mutual fund scheme. Thus the AMC should identify the need of the customer by
adopting suitable techniques. The present economy necessitates the investors to adopt the innovative
mechanism such as mutual fund in a greater way.
The objective of this project is to study the various behavioral aspect such as,investment
pattern,of investment of a preference of mutual fund. The sample taken for the survey was 125 and it was
identified through simple random sampling method. Various tools have been used in the project the
quantity the qualities future analysis through study.
The analysis is helpful to the customer for their future and present financial planning.

CHAPTER-I
INTRODUCTION
1.1 ABOUT THE STUDY
THE MUTUAL Fund industry is growing in rapid which is evident from the from the fact that,
more than 10 lacks corers worth of money has been invested in the stock market through the mutual fund.
The mutual fund industry is evolving in a different way as it got penetrated among the new generation
investors . in the future, the mutual fund would become as a predominant investment option among the
various investment option available. So studying the behavioural aspect of investors is essential as future of
the industry is depends upon the investors opinion and their attitude toward for mutual fund scheme.
INTRODUCTION
A mutual fund is a trust that pool the pools the saving of a mutual fund of investors who share a
common financial goal .the money thus collected is the invited in capital market instruments such as shares,
debentures and other securities. The income earned through these investment ant the capital appreciations
realized are shared by its units holders in proportion to the number of units owned by them. Thus a mutual
fund is the most suitable investment for the common man as its offers an opportunity to in diversified,
professionally managed basket of securities at a relatively low cost. The flow chart below describe broadly
the working of a mutual fund .
MUTUAL FUND OPERATION
FLOW CHART
The mutual fund industry in India started in 1963 with the formation of unit trust of India ,at the
initiative of the Government of India and the reserve bank .the industry of mutual fund in India can be
broadly divided into four distance phases . The report discusses about
 Understanding the nature and scope of mutual fund
 Studying the advantage and drawback of mutual fund

 The study about the performance of mutual fund in India
 STUDY ABOUT the mutual fund organization
1.2ABOUT THE INDUSTRY
THE origin of mutual fund industry in India is with the introduction of the concept of mutual
fund by UTI in the year 1963.though the growth was slow, but it accelerated from the year 1987 when non-
UTI player entered the industry .In the past decade, Indian mutual fund industry had seen dramatic
improvements ,both quality wise as well as quality wise. Before, the monopoly of the market had seen an
ending phase; the Asset under management (AUM) were Rs.67bn.the private sector entry to the fund family
raised the AUM to Rs.470 bun in march 1993 and till April 2004, it reach the height of 1,540 bn.
Putting the AMU of the Indian mutual funds in industry into comparison the total of it is less
than the deposits of SBI alone, constitute less than 11%of the total deposits held by the Indian banking
industry. The main reason of its poor growth is that the mutual fund industry in India is new in the country.
Large section of Indian investors are yet to be intellectuated with the concept . hence ,it is the prime
responsibility of all mutual fund companies ,to market the product correctly abreast of selling. The mutual
fund industry can be broadly put into four phases according to the development of the sector.
PERFORMANCE OF MUTUAL FUNDS IN INDIA
In 1963, the day the concept of Mutual Fund took birth in India. Unit Trust of India invited
investors or rather to those who believed in savings, to park their money in UTI Mutual Fund.
For 30 years it goaled without a single second player. Though the 1988 year saw some new mutual fund
companies, but UTI remained in a monopoly position.
The performance of mutual funds in India in the initial phase was not even closer to satisfactory
level. People rarely understood, and of course investing was out of question. But yes, some 24 million
shareholders were accustomed with guaranteed high returns by the beginning of liberalization of the
industry in 1992. This good record of UTI became marketing tool for new entrants. The expectations of
investors touched the sky in profitability factor. However, people were miles away from the preparedness of
risks factor after the liberalization.
The net asset value (NAV) of mutual funds in India declined when stock prices started falling in
the year 1992. Those days, the market regulations did not allow portfolio shifts into alternative investments.
There was rather no choice apart from holding the cash or to further continue investing in shares. One more
thing to be noted, since only closed-end funds were floated in the market, the investors disinvested by
selling at a loss in the secondary market.
The performance of mutual funds in India suffered qualitatively. The 1992 stock market scandal,
the losses by disinvestments and of course the lack of transparent rules in the whereabouts rocked
confidence among the investors. Partly owing to a relatively weak stock market performance, mutual funds
have not yet recovered, with funds trading at an average discount of 1020 percent of their net asset value.

The securities and Exchange Board of India (SEBI) came out with comprehensive regulation in 1993
which defined the structure of Mutual Fund and Asset Management Companies for the first time.
The supervisory authority adopted a set of measures to create a transparent and competitive
environment in mutual funds. Some of them were like relaxing investment restrictions into the market,
introduction of open-ended funds, and paving the gateway for mutual funds to launch pension schemes.
The measure was taken to make mutual funds the key instrument for long-term saving. The more the
variety offered, the quantitative will be investors.
Several private sectors Mutual Funds were launched in 1993 and 1994. The share of the private
players has risen rapidly since then. Currently there are 34 Mutual Fund organizations in India managing
1,02,000 corers.
At last to mention, as long as mutual fund companies are performing with lower risks and higher
profitability within a short span of time, more and more people will be inclined to invest until and unless
they are fully educated with the dos and don’ts of mutual funds.
Mutual fund industry has seen a lot of changes in past few years with multinational companies coming into
the country, bringing in their professional expertise in managing funds worldwide. In the past few months
there has been a consolidation phase going on in the mutual fund industry in India. Now investors have a
wide range of Schemes to choose from depending on their individual profiles.
ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI):
With the increase in mutual fund players in India, a need for mutual fund association in India
was generated to function as a non-profit organization, Association of Mutual Funds in India, (AMFI) was
incorporated on 22nd August, 1995.
AMFI is an apex body of all Asset Management Companies (AMC) which has been registered
with SEBI. Till date all the AMCs are that have launched mutual fund schemes are its members. It
functions under the supervision and guidelines of its Board of Directors.
Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a
professional and healthy market with ethical lines enhancing and maintaining standards. It follows the
principle of both protecting and promoting the interests of mutual funds as well as their unit holders.
THE OBJECTIVES OF ASSOCIATION OF MUTUAL FUNDS IN INDIA:
The Association of Mutual Funds of India works with 30 registered AMCs of the country. It
has certain defined objectives which juxtapose the guidelines of its Board of Directors, the objectives are
as follows:

1.This mutual fund association of India maintains high professional and ethical standards in all areas of
operation of the industry.
2. It also recommends and promotes the top class business practices and code of conduct which is
followed by members and related people engaged in the activities of mutual fund and asset management.
The agencies that are by any means connected or involved in the field of capital markets and financial
services also involved in this code or conduct of the association.
3.AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund industry.
4.Association of Mutual Fund of India do represent the Government of India, The Reserve Bank of
India and other related bodies on manners relating to the Mutual Fund Industry.
5.It develops a team or well qualified and trained Agent distributors. It implements a programmers of
training and certification for all intermediaries and other engaged in the mutual fund industry.
6.AMFI undertakes all India awareness programmer for investors in order to promote proper
understanding of the concept and working of mutual funds.
7. At last but not the least association of mutual fund of India also disseminate information’s on Mutual
Fund Industry and undertakes studies and research either directly or in association with other bodies.
AMFI PUBLICATIONS:
AMFI publish mainly two types of bulletin. One is on the monthly basis and the other is
quarterly. These publications are of great support for the investors to get intimation of the know-how or
their parked money.
Regulatory Framework
Securities and Exchange Board of India (SEBI)
The Government of India constituted Securities and Exchange Board of India, by an Act of Parliament in
1992, the apex regulator of all entities that either raise funds in the capital markets or invest in capital
market securities such as shares and debentures listed on stock exchanges. Mutual funds have emerged as
an important institutional investor in capital market securities. Hence they come under the purview of SEBI.
SEBI requires all mutual funds to be registered with them. It issues guidelines for all mutual fund
operations including where they can invest, what investment limits and restrictions must be complied with,
how they should account for income and expenses, how they should make disclosures of information to the
investors and generally act in the interest of investor protection. To protect the interest of the investors,
SEBI formulates policies and regulates the mutual funds. MF either promoted by public or by private sector
entities including one promoted by foreign entities are governed by these Regulations. SEBI approved
Asset Management Company (AMC) manages the funds by making investments in various types of
securities. Custodian, registered with SEBI, holds the securities of various schemes of the fund in its
custody. According to SEBI Regulations, two thirds of the directors of Trustee Company or board of
trustees must be independent.
Association of Mutual Funds in India (AMFI)
With the increase in mutual fund players in India, a need for mutual fund association in India
was generated to function as a non-profit organization.

Association of Mutual Funds in India (AMFI) was incorporated on 22nd August, 1995.
AMFI is an apex body of all Asset Management Companies (AMC) which has been registered with SEBI.
Till date all the AMCs are that have launched mutual fund schemes are its member. It functions under the
supervision and guidelines of its Board of Directors.
Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a professional
and healthy market with ethical line enhancing and maintaining standards. It follows the principle of both
protecting and promoting the interests of mutual funds as well as their unit holders.
HISTORY OF MUTUAL FUNDS
An open-end fund is one that is available for subscription all through the year.
These do not have a fixed maturity. Investors can conveniently buy and sell units at Net
Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.
The Mutual fund industry in India started in 963 with the formation of UTI (united trust of India), at the
initiative of government of India. The history of Mutual Funds in India can be broadly divided into Four
Phases.
FIRST PHASE- 1964-87
Unit Trust of India was established by an act of Parliament. It was set up by the Reserve Bank
of India and functioned under the Regulatory and Administrative control of the Reserve Bank of India. In
1978 UTI was de-linked from the RBI and IDBI took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.
6700 crores of assets under management.
SECOND PHASE- 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS).
1987 marketed the entry of non-UTI, public sector mutual funds set up by public sector banks
and life insurance Corporation of India (LIC) and general Insurance Corporation of India (GIC). SBI
Mutual fund was the first non-UTI Mutual fund established in June 1987 followed by can bank Mutual fund
(Dec 1987), Punjab national bank mutual fund (August 89). India bank mutual fund (Nov 89). Bank of
India (June 90), bank of Baroda mutual fund (Oct 92). LIC established its mutual fund in Nov 1989 while
GIC had set up its mutual fund in December 1990 at the end of 1993, the mutual fund industry had asset
under management of Rs.47,004 crores.
THIRD PHASE- 1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS)
With the entry of private sector funds in 1993, an era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families, Also. 1993 was the year in
which the first mutual fund regulations came into being, under which all mutual funds, except UTI
were to be registered and governed, the Kothari pioneer (now merged with Franklin Templeton) was
the first private sector mutual fund registered in July 1993. The 1993 SEBI (mutual funds )
registrations were substituted by a more comprehensive and revised mutual funds regulations in 1996
the number of mutual funds houses went on increasing, with many foreign mutual funds setting up
funds in India and also the industry has witnessed several mergers and acquisition. As at the of Jan
2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The UTI with Rs. 44,541
crores of assets under management was way ahead of other mutual funds.

FOURTHPHASE-2003-2005:
This phase had bitter experience for UTI. It was bifurcated into two separate entities. One
is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835 crores (as on January
2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the Mutual
Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs.76,000 crores of AUM and with the setting up
of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers
taking place among different private sector funds, the mutual fund industry has entered . At the end of
September 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.
TYPES OFMUTUAL FUNDS SCHEME IN INDIA
Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk
tolerance and return expectations etc. thus mutual funds has Variety of flavors, Being a collection of many
stocks, an investors can go for picking a mutual fund might be easy. There are over hundreds of mutual
funds scheme to choose from. It is easier to think of mutual funds in categories, mentioned below.

TYPES OF MUTUAL
FUNDS
BY STRUCTURE
Open - Ended
Schemes
Close - Ended
Schemes
Interval Schemes
BY NATURE
Equity Fund
Debt Funds
Balanced Funds
BY INVESTMENT
OBJECTIVE
Growth Schemes
Income Schemes
Balanced Schemes
Money Market
Schemes
OTHER SCHEMES
Tax Saving
Schemes
Index Schemes
Sector Specific
Schemes
A). BY STRUCTURE
1. Open - Ended Schemes:
An open-end fund is one that is available for subscription all through the year. These do not
have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related
prices. The key feature of open-end schemes is liquidity.
2. Close - Ended Schemes:
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years.
The fund is open for subscription only during a specified period. Investors can invest in the scheme at the
time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock
exchanges where they are listed. In order to provide an exit route to the investors, some close-ended funds
give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related
prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.

3. Interval Schemes:
Interval Schemes are that scheme, which combines the features of open-ended and close-ended
schemes. The units may be traded on the stock exchange or may be open for sale or redemption during pre-
determined intervals at NAV related prices.
B)BY NATURE
1. Equity Fund:
These funds invest a maximum part of their corpus into equities holdings. The structure of the
fund may vary different for different schemes and the fund manager’s outlook on different stocks. The
Equity Funds are sub-classified depending upon their investment objective, as follows:
 Diversified Equity Funds
 Mid-Cap Funds
 Sector Specific Funds
 Tax Savings Funds (ELSS)
Equity investments are meant for a longer time horizon, thus Equity funds rank high on the risk-
return matrix.
2. Debt Funds:
The objective of these Funds is to invest in debt papers. Government authorities, private
companies, banks and financial institutions are some of the major issuers of debt papers. By investing in
debt instruments, these funds ensure low risk and provide stable income to the investors. Debt funds are
further classified as:
Gilt Funds: Invest their corpus in securities issued by Government, popularly known as Government of
India debt papers. These Funds carry zero Default risk but are associated with Interest Rate risk. These
schemes are safer as they invest in papers backed by Government.
Income Funds: Invest a major portion into various debt instruments such as bonds, corporate debentures
and Government securities.
MIPs: Invests maximum of their total corpus in debt instruments while they take minimum exposure in
equities. It gets benefit of both equity and debt market. These scheme ranks slightly high on the risk-return
matrix when compared with other debt schemes.
Short Term Plans (STPs): Meant for investment horizon for three to six months. These funds primarily
invest in short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs). Some portion
of the corpus is also invested in corporate debentures.
Liquid Funds: Also known as Money Market Schemes, These funds provides easy liquidity and
preservation of capital. These schemes invest in short-term instruments like Treasury Bills, inter-bank call

money market, CPs and CDs. These funds are meant for short-term cash management of corporate houses
and are meant for an investment horizon of 1day to 3 months. These schemes rank low on risk-return
matrix and are considered to be the safest amongst all categories of mutual funds.
3. Balanced Funds:
As the name suggest they, are a mix of both equity and debt funds. They invest in both equities
and fixed income securities, which are in line with pre-defined investment objective of the scheme. These
schemes aim to provide investors with the best of both the worlds. Equity part provides growth and the debt
part provides stability in returns.
Further the mutual funds can be broadly classified on the basis of investment parameter viz,
Each category of funds is backed by an investment philosophy, which is pre-defined in the objectives of the
fund. The investor can align his own investment needs with the funds objective and invest accordingly.
B.)BY INVESTMENT OBJECTIVE:
Growth Schemes:
Growth Schemes are also known as equity schemes. The aim of these schemes is to provide
capital appreciation over medium to long term. These schemes normally invest a major part of their fund in
equities and are willing to bear short-term decline in value for possible future appreciation.
Income Schemes:
Income Schemes are also known as debt schemes. The aim of these schemes is to provide
regular and steady income to investors. These schemes generally invest in fixed income securities such as
bonds and corporate debentures. Capital appreciation in such schemes may be limited.
Balanced Schemes:
Balanced Schemes aim to provide both growth and income by periodically distributing a part of
the income and capital gains they earn. These schemes invest in both shares and fixed income securities, in
the proportion indicated in their offer documents (normally 50:50).
Money Market Schemes:
Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate
income. These schemes generally invest in safer, short-term instruments, such as treasury bills, certificates
of deposit, commercial paper and inter-bank call money.
Load Funds:
A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or
sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It
could be worth paying the load, if the fund has a good performance history.

No-Load Funds:
A No-Load Fund is one that does not charge a commission for entry or exit. That is, no
commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the
entire corpus is put to work.
OTHER SCHEMES
Tax Saving Schemes:
Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to
time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme
(ELSS) are eligible for rebate.
Index Schemes:
Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex
or the NSE 50. The portfolio of these schemes will consist of only those stocks that constitute the index.
The percentage of each stock to the total holding will be identical to the stocks index weightage. And hence,
the returns from such schemes would be more or less equivalent to those of the Index.
Sector Specific Schemes:
These are the funds&schemes which invest in the securities of only those sectors or industries as
specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG),
Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective
sectors/industries. While these funds may give higher returns, they are more risky compared to diversified
funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an
appropriate time.
ADVANTAGES OF MUTUAL FUNDS:
lf mutual funds are emerging as the favorite investment vehicle, it is because of the many
advantages they have over other forms and the avenues of investing, particularly for the investor who
has limited resources available in terms of capital and the ability to carry out detailed research
and market monitoring. The following are the major advantages offered by mutual funds to all
investors:
1. Portfolio Diversification:
Each investor in the fund is a part owner of all the fund's assets, thus enabling him to hold a
diversified investment portfolio even with a small amount of investment that would otherwise
require big capital.

2. Professional Management:
Even if an investor has a big amount of capital available to him, he benefits from the
professional management skills brought in by the fund in the management of the investor's portfolio.
The investment management skills, along with the needed research into available investment
options, ensure a much better return than what an investor can manage on his own. Few investors have
the skill and resources of their own to succeed in today’s fast moving, global and sophisticated markets.
3. Reduction/Diversification Of Risk:
When an investor invests directly, all the risk of potential loss is his own, whether he places
a deposit with a company or a bank, or he buys share or debenture on his own or in any other from.
While investing in the pool of funds with investors, the potential losses are also shared with other
investors. The risk reduction is one of the most important benefits of a collective investment
vehicle like the mutual fund.
4. Reduction Of Transaction Costs:
What is true of risk as also true of the transaction costs. The investor bears all the costs or
investing such as brokerage or custody of securities. When going through a fund, he has the benefit
of economics of scale; the funds pay lesser costs because of larger volumes, a benefit passed on to its
investors.
5. Liquidity:
Often, investors hold shares or bonds they cannot directly, easily and quickly sell. When they
invest in the units or a fund, they can generally cash their investments any time, by selling their
units to the fund if open-ended, or selling them in the market if the fund is close-end. Liquidity of
investment is clearly a big benefit.
6. Convenience And Flexibility:
Mutual fund management companies offer many investor services that a direct market investor
cannot get. Investors can easily transfer their holding from One scheme to the other; get updated market
information and so on.
7. Tax Benefits:
Any income distributed after March 31, 2002 will be subject to tax in the assessment of all Unit
holders. However, as a measure of concession to Unit holders of open-ended equity- oriented funds,
income distributions for the year ending March 31. 2003 will be taxed at a concessional rate of 10.5%.
In case of Individuals and Hindu Undivided Families (HUF) a deduction upto Rs. 9,000 from
the Total Income will be admissible in respect of income from investments specified in Section 80L,
including income from Units of the Mutual Fund. Units of the schemes are not subject to Wealth-
Tax and Gift-Tax.

DRAWBACKS OF INVESTING THROUGH MUTUAL FUNDS:
1. No Control Over Costs:
An investor in a mutual fund has no control of the overall costs of investing. The investor pays
investment management fees as long as he remains with the fund, albeit in return for the professional
management and research. Fees are payable even if the value of his investments is declining. A mutual
fund investor also pays fund distribution costs, which he would not incur in direct investing. However,
this shortcoming only means that there is a cost to obtain the mutual fund services.
2. No Tailor-Made Portfolio:
Investors who invest on their own can build their own portfolios of shares and bonds and other
securities, Investing through fund means he delegates this decision to the fund managers, The very-
high-net-worth individuals or large corporate investors may find this to be a constraint in achieving their
objectives. However, most mutual fund managers help investors overcome this constraint by offering
families of funds - a large number of different schemes - within their own management company. An
investor can choose from different investment plans and constructs a portfolio to his choices.
3. Managing A Portfolio Of Funds:
Availability of a large number of funds can actually mean too much choice for the
investor. He may again need advice on how to select a fund to achieve his objectives, quite similar to
the situation when he has individual shares or bonds to select.
4. The Wisdom Of Professional Management:
That's right, this is not an advantage. The average mutual fund manager is no better at
picking stocks than the average non-professional, but charges fees.
5. No Control:
Unlike picking your own individual stocks, a mutual fund puts you in the passenger seat of
somebody else's car.
6. Dilution:
Mutual funds generally have such small holdings of so many different stocks that
insanely great performance by a fund's top holdings still doesn't make much of a difference in a mutual
fund's total performance.

7. Buried Costs:
Many mutual funds specialize in burying their costs and in hiring salesmen who do not
make those costs clear to their clients.
ORGANIZATION OF MUTUAL FUNDS IN INDIA
There are many entities involved and the digram below illustrates the organizational set
up of a mutual fund:
ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI):
With the increase in mutual fund players in India, a need for mutual fund association in
India was generated to function as a non-profit organization, Association of Mutual Funds in India,
(AMFI) was incorporated on 22nd August, 1995.
AMFI is an apex body of all Asset Management Companies (AMC) which has been
registered with SEBI. Till date all the AMCs are that have launched mutual fund schemes are its
members. It functions under the supervision and guidelines of its Board of Directors.

Association of Mutual Funds India has brought down the Indian Mutual Fund Industry
to a professional and healthy market with ethical lines enhancing and maintaining standards. It
follows the principle of both protecting and promoting the interests of mutual funds as well as their
unit holders.
The Objectives of Association of Mutual Funds in India:
The Association of Mutual Funds of India works with 30 registered AMCs of the
country. It has certain defined objectives which juxtapose the guidelines of its Board of Directors,
the objectives are as follows:
1.This mutual fund association of India maintains high professional and ethical standards in all
areas of operation of the industry.
2.It also recommends and promotes the top class business practices and code of conduct which is
followed by members and related people engaged in the activities of mutual fund and asset
management. The agencies that are by any means connected or involved in the field of capital
markets and financial services also involved in this code or conduct of the association.
3.AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund industry.
4.Association of Mutual Fund of India do represent the Government of India, The
Reserve Bank of India and other related bodies on manners relating to the Mutual Fund Industry.
5.It develops a team or well qualified and trained Agent distributors. It implements a programmers
of training and certification for all intermediaries and other engaged in the mutual fund industry.
6.AMFI undertakes all India awareness programmer for investors in order to promote proper
understanding of the concept and working of mutual funds.
7.At last but not the least association of mutual fund of India also disseminate information’s on
Mutual Fund Industry and undertakes studies and research either directly or in association with
other bodies.

AMFI Publications:
AMFI publish mainly two types of bulletin. One is on the monthly basis and the other is
quarterly. These publications are of great support for the investors to get intimation of the know-how
or their parked money.
SEBI REGULATIONS:
1.As far as mutual funds are concerned, SEBI formulates policies and regulates the
mutual funds to protect the interest of the investors.
2.SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds
sponsored by private sector entities were allowed to enter the capital market.
3.The regulations were fully revised in 1996 and have been amended thereafter from
time to time.
4.SEBI has also issued guidelines to the mutual funds from time to time to protect
the interests of investors.
5.All mutual funds whether promoted by public sector or private sector entities
including those promoted by foreign entities are governed by the same set of
Regulations. The risks associated with the schemes launched by the mutual funds
sponsored by these entities are of similar type. There is no distinction in regulatory
requirements for these mutual funds and all are subject to monitoring and inspections
by SEBI.
6.SEBI Regulations 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.
7.Also, 50% of the directors of AMC must be independent. All mutual funds are
required to be registered with SEBI before they launch any scheme.
8.Further SEBI Regulations, inter-alia, stipulate that MF’s cannot guarantee returns
in any scheme and that each scheme is subject to 20:25 condition [i.e. minimum 20
investors per scheme and one investor can hold more than 25% stake in the corpus in
that one scheme].
9.Also, SEBI has permitted MF’s to launch schemes overseas subject various
restrictions and also to launch schemes linked to Real Estate, Options and Futures,
Commodities, etc.

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Our Services
Mutual Funds

Investors are our priority. Our mission has been to establish Mutual Funds as a viable
investment option to the masses in the country. Working towards it, we developed innovative, need-
specific products and educated the investors about the added benefits of investing in capital markets
via Mutual Funds.
Today, we have been actively managing our investor's assets not only through our
investment expertise in domestic mutual funds, but also offshore funds and portfolio management
advisory services for institutional investors.
This makes us one of the largest investment management firms in India, managing
investment mandates of investors.
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I trade in advising various financial institutions, pension funds, and local and
international asset management companies.
We have excelled by understanding our investor's requirements and terms of risk / return
expectations, based on which we suggest customized asset portfolio recommendations. We also
provide an integrated end-to-end customized asset management solution for institutions in terms of
advisory service, discretionary and non-discretionary portfolio management services.
Offshore Funds
I trade has been successfully managing and advising dedicated funds . mutual Funds
Management was the asset management company fund Opportunities Fund' with an objective to
provide our investors with opportunities for long-term growth in capital, through well-researched
investments in a diversified basket of stocks of Indian Companies.
Today, iTrade Capital Market is also one of the top financial franchise business
providers. One key factor in the growth of this company is its franchise concept which helped us to
open our franchise centers in different parts of the country.
iTrade Provide Special – ZERO DEPOSIT FRANCHISE
Highest Revenue Sharing in the Industry
They have two branch office
 Salem
 Erode

COMPANYKEY INFORMATION
Trustee I TRADE CAPITAL MART PRIVATE LIMITED
CEO / MD Mr. Ganesh moorthy
Regd off: No 95# First Floor,
N.S.R Road, "S" Bend,
Saibaba Colony,
Coimbatore-641011
Tel: +91422 - 4221022
Mobile: +91 - 9600512124
Email: itradecmpl@gmail.com
iTrade Capital Markets Private Limited. CIN No: U74999TZ2013PTC019767
iTrade Capital Markets Private Limited. NSE Authoried Person.
Regn No: AP0030002313 for segments CMFOCD

PRODUCT OR SERVICE PORTFOLIO
PRODUCT
OR
SERVICES PORTFOLIO
INVESTMENT
BONDS
MUTUAL FUND
FIXED DEPOSITS
STOCKS
INSURANCE
LIFE INSURANCE
GENERAL INSURANCE
OTHER SERVICES
POSTAL DEPOSITS
 BANKING DEPOSITS

CHAPTER 2
2.1 OBJECTIVE OF THE STUDY
1. To examine the performance of selected equity schemes of mutual fund.
2. To analyze the level of risk associated with the selected equity schemes.
3. To find the return on the selected equities of the mutual fund.
4. To study the volatility of the selected mutual fund schemes.
5. To study the various product schemes of the mutual fund.
2.2SCOPE OF THE STUDY
1. The study was carried out to find the behavioral aspects of the investors of the mutual fund
industry . The same study can be replicated in other sectors of financial aspect such as fixed
deposited, insurance etc…,
2. The study was carried out in Coimbatore and can be done in the domiciles of TamilNadu with
some additional factors .
2.3LIMITATION OF THE STUDY
1. The determination market return is not possible.
2. The study has been carried out for six months only.
2.4 RESEARCH METHODOLOGY
INTRODUCTION
Research methodology is a way to systematically solve the research problem. It includes the over
all research design, the sampling procedure, data collection method and analyses procedure.
RESEARCH DESIGN
 A research design is the arrangement of condition for collection and analysis of data in a
manner which may result in an economic in procedure.
 It stand for advantage planning for collection of the relevant data and the technique to be
used in analysis, keeping in view the objective of the research and availability of time.

SAMPLING TECHNIQUIES
 The simple random sampling technique was employed in the selection of the sample.
 Sample size
 The number of items selected from the population constitutes the sample size. The study
covers the customer in the city if Coimbatore. Total sample for the study is 125.
DATA COLLECTION METHOD
While deciding about the method of data collection for the study the research should keep in
mind the two source of the data.
 PRIMARY DATA
 SECONDARY DATA
PRIMARY DATA :
The primary data are those which are collection afresh and for the first time and thus happen to
the original in character. The structure questionnaires has been used for the collection of the primary
data from the respondents.
SECONDARY DATA :
Secondary data will be used for the data collection. Secondary data’s like publication, periodicals,
journals magazine, journal and internet sources.
STATISTICAL TOOLS
The data are analyzed through statistical method. There are various statistical tools to analysis.
1. SIMPLE PERCENTAGE METHOD
2. CHI SQUARE METHOD
3. WEIGHTED AVERAGE METHOD
RESEARCH PLAN
Data source : primary and secondary
Research instrument: Questionnaire
Sample size : 125

2.5 REVIEW OF LITERATURE ON MUTUAL FUND
This chapter tries to review the literature available on the mutual fund scheme in India.The
existing studies on “investment patterns of investors” are very few and very little information is
available about investor perception ,preformance,attitudes and behaviour.In spite of this limitation,a
few of the parallel and releted studies are reviewed here under.
1. Jack Treynor (1965) developed a methodology for performance evaluation of a mutual fund
that is referred to as reward to volatility measure, which is defined as average excess return on the
portfolio.
2. Sharpe (1966) reward to variability measure, which is average excess return on the portfolio
divided by the standard deviation of the portfolio. Sharpe (1966) developed a composite measure of
performance evaluation and imported superior performance of 11 funds out of 34 during the period
1944-63.
3. Michael C. Jensen(1967) conducted an empirical study of mutual funds in the period of 1954-
64 for 115 mutual funds. The results indicate that these funds are not able to predict security prices
well enough tooutperform a buy the market and hold policy. The study ignored the gross
management expenses to be free. There was very little evidence that any individual fund was able to
do significantly better than which investors expected from mere random chance.
4. Jensen(1968) developed a classic study; an absolute measure of performance based upon the
Capital Asset Pricing Model and reported that mutual funds did not appear to achieve abnormal
performance when transaction costs were taken into account.
5. Carlsen (1970) evaluated the risk-adjusted performance and emphasized that the conclusions
drawn from calculations of return depend on the time period, type of fund and the choice of
benchmark. Carlsen essentially recalculated the Jensen and Shape results using annual data for 82
common stock funds over the 1948-67 periods. The results contradicted both Sharpe and Jensen
measures.
6. Fama (1972) developed a methodology for evaluating investment performance of managed
portfolios and suggested that the overall performance could be broken down into several
components.
7. John McDonald (1974) examined the relationship between the stated fund objectives and their
risks and return attributes. The study concludes that, on an average the fund managers appeared to
keep their portfolios within the stated risk. Some funds in the lower risk group possessed higher risk
than funds in the most risky group.
8. James R.F. Guy (1978) evaluated the risk-adjusted performance of UK investment trusts
through the application of Sharpe and Jensen measures. The study concludes that no trust had
exhibited superior performance compared to the London Stock Exchange Index.
9. Henriksson (1984) reported that mutual fund managers were not able to follow an investment
strategy that successfully times the return on the market portfolio.
10. Again Henriksson (1984) conclude there is strong evidence that the funds market risk
exposures change in response to the market indicated. But the fund managers were not successful in
timing the market.

11. Grinblatt and Titman (1989) concludes that some mutual funds consistently realize
abnormal returns by systematically picking stocks that realize positive excess returns. Richard A.
12. Ippolito (1989) concluded that mutual funds on an aggregate offer superior returns. But
expenses and load charges offset them. This characterizes the efficient market hypothesis.
13. Ariff and Johnson (1990) made an important study in Singapore and found that the
performance of Singapore unit trusts spread around the market performance with approximately half
of the funds performing below the market and another half performing above the market on a risk-
adjusted basis.
14. Cole and IP (1993) investigated the performance of Australian equity trusts. The study
found evidence that portfolio managers were unable to earn overall positive excess risk-adjusted
returns. Vincent A.
15. Warther(1995) in the article entitled “aggregate mutual fund flows and security returns”
concluded that aggregate security returns are highly correlated with concurrent unexpected cash
flows into MFs but unrelated to concurrent expected flows. The study resulted in an unexpected flow
equal to 1 percent of total stock fund assets corresponds to a 5.7 percent increase in stock price
index. Fund flows are correlated with the returns.
16. Bansal’s book (1996) “mutual fund management & working” included a descriptive
study of concept of mutual funds, Management of mutual funds, accounting & disclosure standards,
Mutual fund schemes etc.

CHAPTER - 3
DATA ANALYSIS AND INTERPRETATION
3.1 SIMPLE PERCENTAGEMETHOD
Simple percentage analysis refers to a specified kind which is used in making comparison
between two or more series of data. Simple percentage analysis are based on descriptive relationship. It
compares the relative items. Since the percentage reduces everything to a common base and thereby allow
meaning comparison. Simple percentage analysis is the method to represent raw streams of data as a
percentage (a part in 100 percent ) for better understanding of collected data.
FORMULA:
Number of Respondent
Simple percentage = ---------------------------------------- *100
Total number of respondent
TABLE3.1.1 GENDEROF THE RESPONDENTS
GENDER NO OF RESPODENTS PERCENTAGE
MALE 77 62
FEMALE 48 38
TOTAL 125 100
INTERPRETATION:
From the above table it is interpreted that the male respondents are 62% and female
respondents are 38%.
Thus it is evident from analysis that the majority (62%) of the respondents fall in the
male category.

CHART NO. 3.1.1 GENDER OF THE RESPONDENTS
62
38
100
0
20
40
60
80
100
120
MALE FEMALE TOTAL

TABLE 3.1.2 OCCUPATION OF THE RESPONDENTS
OCCUPATION NO OF RESPONDENT PERCENTAGE
SELF EMPLOYED 54 43
SALARIED 71 57
TOTAL 125 100
INTERPREATION:
From the above table it is interpreted that the self employed respondents are 43% and
salaried respondents are 57%.
salaried Category.

CHART NO 3.1.2 OCCUPATIONOF THE RESPONDENTS
0
20
40
60
80
100
120
SELF EMPLOYED SALARIED TOTAL

TABLE NO 3.1.3 ANNUAL INCOME OF THE RESPONDENTS.
ANNUAL INCOME No.of
resppondent
Percentage
Up to 100000 21 17
100000-200000 51 41
200000-300000 41 33
Above 300000 12 9
Total 125 100
INTERPETATION:
From the above table it states that the income above 2-3 lakhs are 33%; 1-2 lakhs are
41% and greater than 3 lakhs are 9% & below less than 1 lakh are 17%.
category of 1-2 lakhs are income groups.

CHART NO 3.1.3 ANNUAL INCOME OF THE RESPONDENTS.
0
20
40
60
80
100
120
up to 100000 100000-200000 200000-300000 above 300000 total

TABLE NO 3.1.4 TYPES OF FUNDS
Types of fund No of respondent Percentage
Debt fund 32 26
Equity fund 91 73
Hybrid fund 2 1
Total 125 100
INTERPETATION:
From the table it is found that 73%of respondents have invested in equity fund and
26%of respondents invested in debt fund,1%of respondents have invested in hybird
fund.
category of Equity fund .

CHART NO 3.1.4 TYPES OF FUNDS
0
20
40
60
80
100
120
debt fund equitty hybrid fund total

TABLE NO 3.1.5 TIME PERIOD OF INVESTMENT.
T Time period No of respondent Percentage
Less than 3 month 1 9 15
Short term0-1 year 35 28
Medium term 1-3 year 52 42
Long term more than 3
y Years
1 9 15
Total 1 25 100
From the table it is found that 42% of respondents have been with the company for
medium term 1-3 years as investors,28%of the respondents have been with the
company for short term 0-1 year as investors ,15% of the respondents have been with
the company for less than 3 month as investors and 15% of the respondents long term
more than 3 years as investors.
category of medium term 1-3 years.

CHART NO 3.1.5 TIME PERIOD OF INVESTMENT.
0
20
40
60
80
100
120
less than 3 month short term 0-1
year
medium tearm1-3
year
long term more
than 3 years
total

TABLE NO 3.1.6 AWARNESS TOWARDS THE MUTUALFUND
Awareness No.ofrespondents Percentage
High 32 26
Medium 49 39
Low 28 23
Very low 13 10
Not aware 3 2
Total 125 100
INTERPRETATION:
From the table it is found that 39%of the respondents having high awareness ,26%
of the respondents having medium awareness ,23%of the respondents having low
awareness,10% of the respondenthaving very low awareness and 2%of the
respondents having high awareness about the mutual fund.

CHART NO 3.1.6 AWARNESS TOWARDS THE MUTUALFUND
0
20
40
60
80
100
120
high medium low very low not aware total

TABLE NO 3.1.7 RISKLEVEL TOWARDS INVESTMENT
RISK LEVEL No. of respondents Percentage
Very high 41 33
High 47 38
Moderate 30 24
Low 4 3
Very low 3 2
Total 125 100
INTERPREATION:
From the table it is found that 38% of the respondent having high awarness,33% of
the respondents felt that investing in mutual fund is a very high risk venture,24%of the
respondent felt that investing in mutual fund is a moderate venture,3% of the
respondents felt that investing in mutual fund is a moderate the respondents felt that
investing in mutual fund is a very low risk venture.
category of high risk level MF.

CHATR NO 3.1.7 RISKLEVEL TOWARDS INVESTMENT
0
20
40
60
80
100
120
very high high moderate low very low total

TABLE NO 3.1.8 RETURN LEVEL TOWARDS INVESTMENT.
Return level No.of respondents Percentage
Very high 37 30
High 49 39
Moderate 27 22
Low 9 7
Very low 3 2
Total 125 100
INTERPRETATION:
From the table it is found that 39%of the respondents felt that investing in mutual
fund is a high return venture,30% of the respondents felt that investing in mutual fund
is a very high return venture,22% of the respondents felt that investing in mutual fund
is moderate venture,7%of the respondentfelt that investing in mutual fund is a low
return venture and 2% of the respondents felt that investing in mutual fund is a very
low return venture.
category of high risk level MF.

CHART NO 3.1.8 RETURN LEVEL TOWARDS INVESTMENT.
0
20
40
60
80
100
120
very high high moderate low very low total

TABLE NO 3.1.9 MUTUAL FUND AS A TOOL FOR SAVING TAX
saving tax No of respondents Percentage
Yes 87 70
No 38 30
Total 125 100
INTERPERATION:
From the table it is found that 70% of the respondents felt, that investing in mutual
fund is one of the tax saving option,30%of the respondents felt that investing in
mutual fund is one of the tax saving option.
category of tools for saving MF.

CHART NO 3.1.9 MUTUAL FUND AS A TOOL FOR SAVING TAX
0
20
40
60
80
100
120
yes No total

TABLE NO 3.1.10 FACTORS OF INVEST IN MUTUAL FUND
Factor of investors No of respondents Percentage
Return 42 34
Credit rating 33 26
Inflation 25 20
Company 9 7
Lock in period 16 13
Total 125 100
INTERPRETATION:
From the table it is found that 34% of the respondents felt that, getting high return
is one of the the factors of investing in mutual fund ,26%of the respondents felt that
resented the credit rating as the factor of investors ,20%of the respondents felt that
resented the inflation as the factor of investors,13%of the respondentfelt that, resented
the lock in period as the factor of investors ,7% of the respondents felt that resented
the credit of the factor of investors.
category of tools for credit rating MF.

CHART NO 3.1.10FACTORS OF INVEST IN MUTUALFUND
0
20
40
60
80
100
120
Return Credit rating Inflation company lock in period total

TABLE NO 3.1.11 INVESTORS PREFERENCE OF MUTUAL FUND SCHEME
Types of mutual fund No of respondents Percentage
Debt 40 32
Equity 25 68
Total 125 100
INTERPRECATION:
From the table it is found that 68%of the respondents invested in equity oriented
fund and 32%of the respondents invested in dept oriented fund.

CHART NO 3.1.11 INVESTORS PREFERENCE OF MUTUAL FUND SCHEME
0
20
40
60
80
100
120
Debt Equity Total

TABLE NO 3.1.12 INVESTORS PREFERENCE TOWARDS TO TYPE OF TERM.
Types of Term No of respondents Percentage
Long term 48 38
Short term 77 62
Total 125 100
INTERPETATION:
From The table it is found that 62%of the respondents of the preferred to invest in the
short term, basis 38% of the respondents prefer to invest in long term.

CHART NO 3.1.12 INVESTORS PREFERENCE TOWARDS TO TYPE OF TERM.
0
20
40
60
80
100
120
Long Term Short Term Total

TABLE NO 3.1.13 INVESTORS OPINIONS ABOUT TO RISK LEVEL
Risk Level No of Respondents Percentage
Very high risk 51 41
High Risk 42 34
Medium risk 24 10
Low risk 6 5
Very low risk 2 2
Total 125 100
INTERPERTATION:
From the table it is found that 41%of the respondentfelt that investing in mutual fund
is a very high risk venture ,34%of the respondents felt that investing in mutual fund
high risk venture ,10%of the respondentfelt that investing in mutual fund is a medium
risk venture, 5% of the respondents felt that investing in mutual fund is a low risk
venture and 2% of investing in mutual fund is a very low risk venture.

CHART NO 3.1.13 INVESTORS OPINIONS ABOUT TO RISK LEVEL
0
20
40
60
80
100
120
very high risk high risk medium risk low risk very low risk Total

TABLE NO 3.1.14 OPTION ABOUT MUTUAL FUND
Opinion MF No of Respondents Percentage
Better option 96 77
Not a better option 29 23
Total 125 100
INTERPRETATION
From the table it is found that 77%of the respondents felt thet the investing in
mutual fund scheme offered by the mutual fund is a better option and 23% of the
respondents felt that the investing in mutual fund scheme offered by the mutual is a
not better option.

CHART NO 3.1.14 OPTION ABOUT MUTUAL FUND
0
20
40
60
80
100
120
Better option Category 2 Not a better option Total

TABLE NO 3.1.15INVERTORS WILLING ON RECOMMEND OF MUTUAL FUND TO
OTHERS
Recommend MF No of Respondents Percentage
Yes 76 61
No 49 39
Total 125 100
INTERPRETATION:
From the table it is found that 61% of the respondents expressed willingness to
recommend mutual fund to other people,30% of the respondentnot have willing to
recommend mutual fund.

CHART NO 3.1.15 INVERTORS WILLING ON RECOMMEND OF MUTUAL FUND TO
OTHERS
0
20
40
60
80
100
120
Yes No Total

TABLE NO 3.1.16 SOURCE OF AWARENESS
Source of awareness No of respondents Percentage
Financial advisers 74 60
Advertisement 25 20
Family Members 16 12
Friends 8 6
Relatives 2 2
Total 125 100
INTERRETATION:
From the table it is found that 60% of the respondents felt that they get awareness
mutual fund from financial advisors ,20%of the respondents felt that they get
awareness about mutual fund from advisement ,12% of the respondent felt that they
get awareness about mutual fund from family members,6% of the respondents felt
they get awareness about mutual fund from friends and 2% of the respondentfelt that
they get awareness about mutual fund from relative.

CHART NO 3.1.16 SOURCE OF AWARENESS
0
20
40
60
80
100
120
financial
advisers
Adverstiment Family
members
Friends Relative Total

TABLE NO 3.1.17 INVESTORS EXPECTATION ON RETURN FROM THE MUTUAL
FUND
Mutual Fund expectation No of Respondents Percentage
Yes 86 69
No 39 31
Total 125 100
INTERPRETATION:
From the table it is found the 69% of the respondentshows optimistic about the
return from the mutual fund and 31%of the respondents expressed pessimism about to
return from the mutual fund.

CHART NO 3.1.17 INVESTORS EXPECTATION ON RETURN FROM THE MUTUAL
FUND
0
20
40
60
80
100
120
Yes No Total

TABLE NO 3.1.18 INVESTORS PERCEPTION PERFORMS TO MUTUAL FUND
Perform of MF No of respondents Percentage
Excellent 25 20
Very good 48 38
Good 41 33
Average 10 8
Not good 1 1
Total 125 100
INTERPRETATION:
From the table it is found that 38% of the respondent perceived that the mutual
fund schemes are perform in very good manner ,33% of the respondent perceived that
the mutual fund schemes are perform in good manner,20% of the respondents
perceived that the mutual fund scheme are perform in excellent manner,8% of the
respondents perceived that the mutual fund schemes are performance in average and
1% of the respondents perceived that the mutual fund scheme are perform in not good
manner.

CHART NO 3.1.18 INVESTORS PERCEPTION PERFORMS TO MUTUAL FUND
0
20
40
60
80
100
120
Excellent Very good Good Average Not good Total

TABLE NO 3.1.19 INVESTORS PERCEPTION TOWARDS SERVICE LEVEL
Service level No of Respondents Percentage
Highly satisfied 37 30
Satisfied 49 39
Neutral 26 21
Dissatisfied 9 7
Highly dissatisfied 4 3
Total 125 100
INTERPREETATION:
From the table 39%of the respondentexpressed 39%of the respondents expressed
satisfied,30% of the respondents expressed,39% of the respondents expressed highly
satisfied,21% of the respondentexpressed neutral,7% of the respondent expressed
dissatisfied and 3%of the respondent expressed highly dissatisfied towards the service
level of mutual fund.

CHART NO 3.1.19 INVESTORS PERCEPTION TOWARDS SERVICE LEVEL
0
20
40
60
80
100
120
Highly satisfied satisfied Neutral Dissatisfied highly
dissatisfied
Total

TABLE NO 3.1.20 MUTUAL FUND PREFERENCE OF INVESTORS
NOTE: Risk may be represent as
(B) investors understand that their principle will be at low risk
(Y) investors understand will be at low risk will be at medium risk
(BR) investors will be at high risk will be at high risk
Preference of investors No of respondents Percentages
Blue 76 61
Yellow 44 35
Brown 5 4
Total 125 100
INTERRPREATION:
From the table 61% of the respondent blue investor under stand that their principle
will be at low risk,35% yellow investors understand that their principle will be at
medium risk,4% brown investor understand that their principle will be at high risk.

CHART NO 3.1.20 MUTUAL FUND PREFERENCE OF INVESTORS
0
20
40
60
80
100
120
Blue Yellow Brown Total

TABLE NO 3.1.20 OPTION TOWARDS REDEMPTION OF THE SCHEME BENEFIT
Closing option No of respondents Percentages
Highly satisfied 34 22
Satisfied 47 38
Neutral 34 27
Dissatisfied 8 6
Highly dissatisfied 2 2
Total 125 100
INTERPRETATION:
From the table 38% of the respondent closing redemption of the investor
expressedsatisfied,27% of the respondents closing redemption of the investor
expressed neutral, 22% of the respondents closing redemption of the investor
expressed highly satisfied,6% of the respondents closing redemption of the investor
expressed dissatisfied,2% of the respondents closing redemption of the investor
expressed highly dissatisfied.

CHART NO 3.1.21 OPTION TOWARDS REDEMPTION OF THE SCHEME BENEFIT
0
20
40
60
80
100
120
Highly satisfied Satisfied Neutral Dissatisfied Highly
dissatisfied
Total

3.2 CHI-SQUARE TEST
Chi-square test is applied to those problem in which wheather the frequency with which a given
event has occurred is significally different from the one as expected theoretically. the chi-square is
computed on the basis of frequencies in a sample and the value of chi-square obtained.
TEST NO 1
GENDER AND MUTUAL FUND PREFERANCE
NULL HYPOTHESIS (H0):
There is no relationship between gender and mutual fund preference.
ALTERNATIVE HYPOTHESIS (H1):
There is relationship between gender and mutual fund preference.
TABLE NO 3.2.1 GENDER AND MUTUAL FUND PREFERANCE
Gender Blue yellow Brown Total
Male 43 30 4 77
Female 33 14 1 48
Total 76 44 5 125
Chi-square Tests

Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 2.331(a)
2.411
2 .312
Likelihood Ratio
Fisher’sExact Test
2.158
2
.300
Linear-by-Linear
Association
2313© 1 .128
N of Valid Cases
125
INTERPRETATION:
The chi-square value(.312) is more than signification value (0.05).so the null
hypothesis (H0) is expected and the alternative hypothesis (H1) is rejected. So there is
no relationship between gender and mutual fund preference
.

TEST NO 2
OCCUPATION AND TYPES OF TERM
NULL HYPOTHESIS (H0)
There is no relationship between occupation and type of term.
ALTERNATIVE HYPOTHESIS(H1):
There is relationship between occupation and Types of term.
TABLE NO 3.2.2 OCCUPATION AND TYPES OF TERM
Occupation Long
term
Short
term Total
Self employed
Salaried
22
26
32
45
54
71
Total 48 77 125

Chi-Square Tests
Value Df
Asymp.
Sig. (2-sided)
Pearson Chi-
Square
.220(
b)
1 .639
Continuity
Correctionb
.080 1 .777
Likelihood
Ratio
.220 1 .639
Fisher's Exact
Test
Linear-by-
Linear
Association
.218(
c)
1 .640
N of Valid
Casesb
125
INTERPRETATION
no relationship between occupation and types of term.

TEST NO 3
ANNUL INCOME AND TYPES OF FUNDS
NULL HYPOTHESIS (H0)
There is no relationship between annul income and types of funds
ALTERNATIVE HYPOTHESIS(H1):
There is relationship between annul income and types of funds.
TABLE NO 3.2.3 ANNUL INCOME AND TYPES OF FUNDS
ANNUAL
INCOME
TYPES OF FUNDS
TotalDebt
fund
Equity fund Hybrid fund
UP to 1laks
1lacks to2 lacks
2lacks to 3lacks
Above 3lacks
Total
5
17
6
4
32
16
33
34
8
91
0
1
1
0
2
21
51
41
12
125

Chi-Square Tests
Value Df
Asymp.
Sig. (2-
sided)
Pearson Chi-Square 5.305(a)
6.027
6 .495
Likelihood Ratio
fIsher’s Exact test
5.943 6 .420
Linear-by-Linear
Association
.321© 1 .571
N of Valid Cases 125
INTERPRETATION:
no relationship between annul income and types of funds.

3.3 WEIGHTED AVERAGE METHOD
The collected data is analyzed by using weighted average method. This method can analyze the
high/low scores based on the weighted ages identified.
FORMULA
Weighted average method =Σ FW / ΣF
TABLE NO 3.3.1 KNOWLEDGE IN MUTUAL FUND
Weight Frequency FW
High 5 26 130
Medium 4 39 156
Low 3 23 69
Very low 2 10 20
Not aware 1 2 2
Total 377
Weighted average 3.77
INTERPRETATION
We can find that the having medium awareness of the customer in the mutual fund.

TABLE NO 3.3.2 PERFORMANCE OF MUTUAL FUND
Rate Weight Frequency FW
Excellent 5 20 100
Very good 4 38 152
Good 3 33 99
Average 2 8 16
Not good 1 1 1
Total 368
INTERPRETATION
We can find that the mutual fund schemes are performance in very good manner of
the customer.

TABLE NO 3.3.3 SERVICE LEVEL
Rate Weight Frequency FW
Higly satisfied 5 30 150
Satisfied 4 39 156
Netural 3 21 63
Dis satisfied 2 7 14
Highly dissatisfied 1 3 3
Total 386
INTERPRETATION:
We can find that most of the customer are satisfied with the service of mutual
fund.

CHAPTER-4
FINDINGS, SUGESTIONSAND CONCLUSION
4.1 FINDINGS
The study was conducted to a customer randomly who are investors of mutual
fund. The data was collected from 125 respondents using the questionnaire which
contains 24 questions . The collected data is analyzed using the statistical tools like
percentage analysis , weighted average and chi square tests.
From the analyzed data some the findings were founded:
PERCENTAGE ANALYSIS:
1. The male respondents are 62% and female respondents
are 38%.
2. The self employed respondents are 43% and salaried respondents are 57%.
3. The income above 2-3 lakhs are 33%; 1-2 lakhs are 41%;
and greater than 3 lakhs are 9% & below less than 1 lakh are 17%.
4. 73%of respondents have invested in equity fund and 26%of respondents invested
in debt fund,1%of respondents have invested in hybird fund.
5. 42% of respondents have been with the company for medium term 1-3 years as
investors,28%of the respondents have been with the company for short term 0-1 year
as investors ,15% of the respondents have been with the company for less than 3
month as investors and 15% of the respondents long term more than 3 years as
investors.
6. 39%of the respondents having high awareness ,26% of the respondents having
medium awareness ,23%of the respondents having low awareness,10% of the
respondent having very lowawarness and 2%of the respondents having high
awareness about the mutual fund.
7. 38% of the respondenthaving high awarness,33% of the respondents felt that
investing in mutual fund is a very high risk venture,24%of the respondentfelt that
investing in mutual fund is a moderate venture,3% of the respondents felt that
investing in mutual fund is a moderate the respondents felt that investing in mutual
fund is a very low risk venture.

8. 39%of the respondents felt that investing in mutual fund is a high return
venture,30% of the respondents felt that investing in mutual fund is a very high return
venture,22% of the respondents felt that investing in mutual fund is moderate
venture,7%of the respondent felt that investing in mutual fund is a low return venture
and 2% of the respondents felt that investingin mutual fund is a very low return
venture.
9. 70% of the respondents felt, that investing in mutual fund is one of the tax saving
option,30%of the respondents felt that investing in mutual fund is one of the tax
saving option.
10. 34% of the respondents felt that, getting high return is one of the the factors
of investing in mutual fund ,26%of the respondents felt that resented the credit rating
as the factor of investors ,20%of the respondents felt that resented the inflation as the
factor of investors,13%of the respondent felt that, resented the lock in period as the
factor of investors ,7% of the respondents felt that resented the credit of the factor of
investors
11. 68%of the respondents invested in equity oriented fund and 32%of the
respondents invested in dept oriented fund.
12. 62%of the respondents of the preferred to invest in the short term, basis 38%
of the respondents prefer to invest in long term.
13. 41%of the respondent felt that investing in mutual fund is a very high risk
venture ,34%of the respondents felt that investing in mutual fund high risk venture
,10%of the respondentfelt that investing in mutual fund is a medium riskventure, 5%
of the respontents felt that investing in mutual fund is a low risk venture and 2% of
investing in mutual fund is a very low risk venture.
14. 77%of the respondents felt thet the investing in mutual fund scheme offered
by the mutual fund is a better option and 23% of the respondents felt that the investing
in mutual fund scheme offered by the mutual is a not better option.
15. 61% of the respondents expressed willingness to recommend mutual fund to
other people,30% of the respondent not have willingto recommend mutual fund.
16. 60% of the respondents felt that they get awareness mutual fund from
financial advisors ,20%of the respondents felt that theyget awareness about mutual
fund from advisement ,12% of the respondentfelt that they get awarness about mutul
fund from family members,6% of the respondents felt they get awareness about
mutual fund from friends and 2% of the respondentfelt that they get awareness about
mutual fund from relative.

17. 69% of the respondent shows optimistic about the return from the mutual
fund and 31%of the respondents expressed pessimism about to returm from the
mutual fund.
18. 38% of the respondentperceived that the mutual fund schemes are perform
in very good manner ,33% of the respondent perceived that the mutual fund schemes
are perform in good manner,20% of the respondents perceived that the mutual fund
scheme are perform in excellent manner,8% of the respondents perceived that the
mutual fund schemes are performance in average and 1% of the respondents perceived
that the mutual fund scheme are perform in not good manner,
19. 39%of the respondent expressed 39%of the respondents expressed
satisfied,30% of the respondents expressed,39% of the respondents expressed highly
satisfied,21% of the respondentexpressed neutral,7% of the respondent expressed
dissatisfied and 3%of the respondent expressed highly dissatisfied towards the service
level of mutual fund.
20. 61% of the respondentblue investor under stand that their principle will be
at low risk,35% yellow investors understand that their principle will be at medium
risk,4% brown investor understand that their principle will be at high risk.
21. 38% of the respondentclosing redemption of the investor
expressedsatisfied,27% of the respondents closing redemption of the investor
expressed neutral, 22% of the respondents closing redemption of the investor
expressed highly satisfied,6% of the respondents closing redemption of the investor
expressed dissatisfied,2% of the respondents closing redemption of the investor
expressed highly dissatisfied.

SUGESTIONS
1. Female group of the investors have to be targeted and better awareness level have
to
be created. By doing so the number of mutual fund investors can be increased.
2. The retired group of people has to be ensured about the risk diversification concept
in mutual fund. The investor who are above 60 year of age are a good sourceof
lump sum investment.
3. To increase the market share professionals and self-employed people should be
targeted.
4. Moderate income group should be continued contacted. The reason for high
income
group not going for mutual fund investment should be analysed for evolving suitable
strategy for bringing then also under the fold of mutual fund.
5. The performance of mutual funds should be increased which acts as a influencing
factor and the asset management companies should concentrate more on the
advertisement so that it can reach the customer easily.
6. The advantage of various funds can also be explained clearly so that the option of
insufficient funds can be avoided and hence the investors of mutual funds can be
increased.
7. Forthose assets management companies that have not captured the attention of the
investors should go on with more advertisement and research so that they get more
supportfrom the client side.lxi

4.3 CONCLUSION
 The study helped in bringing out the various investment opportunities available
for the investors.
 Among all the investments, there were very specific reasons to why people
preferred investing in onemode of investment. The dominating factor as far as
Mutual fund investment was considered is thevery low risk due to
diversification.
 As far as Asset management companies were considered there was clarity
among theinvestors as to which company‟s products should be selected for
investing.
 The demographic factorplayed vital role in their decision making process. For
those Asset management companies that havenot captured the attention of the
investors should go on with more advertisements and research so that they get
more supportfrom the client side.
 Thus this study helped to understand the perception of investors.
 The future scopeofresearch area may be a study that concentrates more on
specific sector such as the lump sum investors or the SIP (systematic
investment plan) investors.
 This will help in getting clear picture of the segments of investors.

REFERENCES
BOOKS:
1. David A.Aker, V.Kumar & George S. Day(2002), John Wiley & Sons, INC,
Marketing
research.
2. Kothari C.R “ Research Methodology and Techniques” ( 12th edition, new age
international ltd, publisher)
3. Philip kotler “Marketing management” (12th edition ,prentice hall of india ltd)
4. Prasanna Chandra “ investment analysis and portfolio management”
5. Richard I. Levin & David S. Rubin, ”STATISTICS FOR MANAGEMENT”,
Pearson
Education, Seventh Edition, 2002.
6. V.A Avadhani (2003), Himalaya Publishers, Security Analysis and Portfolio
Management.
WEBSITE:
1. www.itradecm.in
2. www.amfiinda.com
3. www.mutualfunds.com
4. www.moneycontrol.com
5. www.linkedin.com
6. www.scribd.com
7. www.nseindia.com
8. www.investments.com
9. www.finance-glossary.com
10. www.rediff.com

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