A STUDY ON FINANCIAL PLANNING WITH MUTUAL FUNDS

AT UTI MUTUAL FUNDS AMC Ltd

Submitted in the partial fulfillment of the requirements
For the award of the degree in

MASTER OF BUSINESS ADMINISTRATION

INTERNSHIP REPORT
By
DHARANI M
(235052101012)

FACULTY OF MANAGEMENT STUDIES

Dr. M.G.R
Educational and Research Institute
(Deemed to be university)

Maduravoyal, Chennai-600 095

(An ISO 9001-2008 certified Institution)

University with Special Autonomy Status

APRIL2025

I
A STUDY ON FINANCIAL PLANNING WITH MUTUAL FUNDS

AT UTI MUTUAL FUNDS AMC Ltd

Submitted in the partial fulfillment of the requirements
For the award of the degree in

MASTER OF BUSINESS ADMINISTRATION

INTERNSHIP REPORT
By
DHARANI M
(235052101012)

Under the guidance of

MS. P RAJASRI
FACULTY OF MANAGEMENT STUDIES
Dr. M.G.R
Educational and Research Institute
(Deemed to be university)

Maduravoyal, Chennai-600 095

(An ISO 9001-2008 certified Institution)

University with Special Autonomy Status

APRIL2025

II
 DECLARATION

I’m DHARANI M hereby declare that the Internship Report

entitled “A Study on Financial Planning with Mutual Funds at UTI Mutual
Funds AMC Ltd” is done by me under the guidance of Ms. RAJASRI P is
submitted in partial fulfilment of the requirements for the award of the degree in
MASTER OF BUSINESS ADMINISTRATION.

DATE:

PLACE:

M Dharani
SIGNATURE OF THE CANDIDATE

III
 Dr. M.G.R.
Educational and Research Institute
(Deemed to be university)
Maduravoyal, Chennai- 600095
(An ISO 9001-2008 certified Institution)

FACULTY OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that this Internship Report is the Bonafide work of

Ms. DHARANI M, Reg No. 235052101012 who carried out the Internship
entitled “A Study on Financial Planning at UTI Mutual Funds AMC Ltd”
under our supervision from 26.02.2025 to 31.03.2025

Internal Guide Head of the Department

Submitted for Viva Voce Examination held on _________

IV
COMPANY CERTIFICATE

V
 ACKNOWLEDGEMENT

To acknowledge here, all those who have been a helping hand in completing
this Internship, shall be an endeavour in itself

I extremely thankful to our Chancellor Thiru AC SHANMUGAM, B.A.,

B.L., our President Er. A.C.S. ARUN KUMAR, B.E. I express my sincere thanks to
our Secretary Thiru A. RAVIKUMAR and our Vice Chancellor DR.S.
GEETHALAKSHMI, I would like to take the opportunity to express my profound
gratitude to DR. G BRINDHA, Professor & Head, Faculty of Management Studies,
for her kind permission to undergo Internship work successfully.

I thank MS RAJASRI P for guiding me to execute my internship in a successful

manner. I also thank all the faculties in our department for their support and guidance
throughout the Internship.

I thank MR. DEEBAN CHAKRAVARTHI of UTI MUTUAL FUNDS

INVESTMENT for guiding and supporting throughout my internship.

My wholehearted thanks to entire staff of the company for their cooperation and
assistance during the Internship

Name of the student

(DHARANI M)

VI
 TITLE & PAGE

CHAPTER TITLE PAGE PAGE

ABSTRACT 1

CHAPTER 1

1.1 Introduction 2-4

1.2 Industry Profile 5-8

1.3 Company Profile 9 -18

1.4 Objectives of the study 19

1.5 Need of the Study 20

1.6 Scope of the study 21

1.7 Limitations of the study 22

CHAPTER 2 - Review of Literature 23 - 28

CHAPTER 3 – Research Methodology 29 - 30

3.1 Research Design 30 -31

Research Hypothesis & Methodology 31

Data Analysis 32 - 34

Sample size 35

Data collection approach 35 - 41

CHAPTER 4 - Data Analysis and Interpretation 42 - 60

CHAPTER – 5

5.1 FINDINGS 61

5.2 SUGGESTION 62

5.3 CONCLUSION 63

REFERENCES 64

Questionnaire 65 - 68

VII
 ABSTRACT

This project, "A Study on Financial Planning at UTI Mutual Funds AMC Ltd," aims to
analyse the financial planning strategies employed by UTI Mutual Funds, focusing on
investment decision-making, risk management, and asset allocation. The study incorporates
research methodologies, statistical tools, and data collection techniques to assess the
effectiveness of financial planning in mutual fund investments.
This study looks at how UTI Mutual Funds use something called "professional fund
management" along with portfolios that hold multiple different kinds of assets called
diversification. They do research to figure out where to invest that money in ways that
maximize profits while also cutting down risks. The role of these funds in retirement planning,
children's education, wealth preservation, and short-term financial goals is assessed to
highlight their relevance across different life stages.
The research focuses on understanding how UTI Mutual Funds designs its investment
products, ensures risk diversification, and aligns its offerings with investor needs.
Additionally, it examines the role of financial advisors, regulatory compliance, and the impact
of market trends on financial planning. By analyzing real-world data, investor case studies,
and expert opinions, this study provides insights into the effectiveness of financial planning
strategies at UTI Mutual Funds. The findings aim to help investors make informed decisions
and highlight best practices in mutual fund financial planning.
Moreover, the study identifies common barriers that prevent individuals from investing in
mutual funds, such as lack of financial literacy, fear of market volatility, and misconceptions about
mutual fund products. It stresses the need for enhanced investor education programs and
personalized advisory services to bridge this gap. The findings of the study aim to provide valuable
insights for investors, financial advisors, and policymakers to encourage informed and effective
investment decisions.

In conclusion, the study reaffirms that mutual funds play a vital role in financial
planning by offering flexible, goal-oriented investment options. When chosen wisely and
aligned with individual financial goals, mutual funds can significantly contribute to building
financial security and achieving long-term prosperity.
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 CHAPTER 1

INTRODUCTION

Financial planning is a crucial aspect of managing income, expenses, savings, and

investments in a structured and disciplined manner. Effective financial planning ensures that
people can meet their short-term and long-term financial goals while maintaining financial
stability. One of the key components of financial planning is tax-saving, which allows
individuals to legally reduce their tax liabilities while growing their wealth. In India, the
government encourages tax-efficient investments through various schemes under the Income
Tax Act, 1961. Among these, mutual funds - especially Equity-Linked Savings Schemes
(ELSS) - offer significant tax benefits along with the potential for higher returns.

Mutual funds have become one of the most popular investment vehicles in India due
to their diversification, professional fund management, and flexibility. They offer investors
the ability to pool their money into a professionally managed fund, which invests in a variety
of asset classes, including equities, debt instruments, and hybrid funds. This diversification
reduces investment risk and enhances return potential. These tax benefits encourage
individuals to invest their money in a structured and disciplined manner, allowing them to
reduce their tax liabilities while generating wealth over time.

One of the most significant advantages of mutual funds in financial planning is their
accessibility and affordability. Investors can start with small investments through Systematic
Investment Plans (SIPs), making it easier to develop disciplined savings habits. Additionally,
mutual funds provide tax benefits, inflation-beating returns, and liquidity, making them a
preferred choice for both short-term and long-term financial goals.

Tax-saving investments provide individuals with an opportunity to reduce their taxable

income while simultaneously growing their wealth. The Indian government encourages such
investments by offering various tax benefits under the Income Tax Act, 1961, particularly
under Section 80C. Among the many tax-saving instruments available in India, Equity-Linked
Savings Schemes (ELSS) offered through mutual funds stand out due to their attractive blend
of tax benefits, professional management, and the potential for high returns. ELSS funds
allow investors to reduce their taxable income by up to ₹1.5 lakh per annum, while offering

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the advantage of capital appreciation through equity investments, which historically tend to
offer higher returns than traditional tax-saving options.

Over the years, mutual funds have emerged as one of the most popular investment vehicles in
India, owing to their ability to offer diversified portfolios, professional fund management, and
accessibility. Mutual funds pool the money of multiple investors to invest in a variety of asset
classes such as equities, debt, and hybrid instruments. This diversification helps mitigate risks
and enhances the potential for returns. Mutual funds are especially attractive to investors who
may not have the expertise or time to manage their investments but still want to benefit from
the potential growth of the financial markets.

One of the key benefits of mutual funds is their flexibility and accessibility. With the
introduction of Systematic Investment Plans (SIPs), investors can start with small amounts of
money, thus making mutual funds accessible to a wide range of individuals, including those
with limited capital. SIPs promote disciplined saving and investing, helping individuals build
wealth steadily over time. This feature of SIPs has made mutual funds a preferred choice for
investors looking for a low-risk, long-term investment option.

Among the various mutual fund companies in India, UTI Mutual Funds has established itself
as one of the most trusted and reputable asset management firms. Established in 1964, UTI
Mutual Funds has a long history of helping Indian investors build and manage wealth. UTI’s
Equity-Linked Savings Schemes (ELSS) are particularly well-regarded for their tax-saving
benefits under Section 80C, along with the potential for high returns. With a diverse range of
investment options, UTI Mutual Funds caters to investors with varying financial goals, risk
appetites, and investment horizons.

The primary advantage of UTI’s ELSS funds lies in their ability to combine the dual benefits
of tax savings and capital growth. ELSS funds offer a three-year lock-in period, which is the
shortest among all tax-saving investment schemes under Section 80C. This relatively short
lock-in period provides liquidity while still ensuring that investments grow over time.
Moreover, UTI Mutual Funds offers various other equity, debt, and hybrid fund options,
allowing investors to build a balanced and diversified portfolio suited to their unique financial
goals.

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Tax-saving through mutual funds goes beyond merely reducing tax liabilities; it is also a
strategy for wealth creation. By investing in mutual funds, individuals can generate higher
returns over time compared to traditional savings options such as fixed deposits or life
insurance policies. This approach to tax-saving ensures that investors not only save taxes but
also benefit from the potential of compounding returns, thereby growing their wealth for
future needs.

This study aims to explore how UTI Mutual Funds can play a significant role in financial
planning and tax-saving strategies. Specifically, the focus will be on how investors can
optimize their tax savings while building a diversified investment portfolio that aligns with
their long-term financial goals. The study will also examine the advantages of investing in
UTI ELSS funds, how they compare to other tax-saving instruments, and the role of
Systematic Investment Plans (SIPs) in fostering disciplined investing.

Furthermore, the research will delve into how individuals can utilize mutual funds as a
vehicle for financial planning, exploring the benefits of diversification, professional fund
management, and liquidity that mutual funds provide. Through a deeper understanding of the
tax-saving benefits and the wealth-building potential of mutual funds, the study will equip
investors with the knowledge needed to make informed decisions and take charge of their
financial futures.

In conclusion, mutual funds, especially ELSS, are not just tax-saving tools; they are powerful
instruments for building wealth over the long term. The accessibility and flexibility offered by mutual
funds make them an essential component of financial planning, particularly in a tax-conscious
country like India. This study explores tax benefits and financial planning using UTI Mutual
Funds, focusing on how investors can optimize their tax savings while building a strong
investment portfolio. UTI Mutual Funds, one of India’s most trusted asset management
companies, offers a range of tax-saving and wealth-building investment options suited for
different risk appetites and financial goals.

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 INDUSTRY PROFILE

UTI Mutual Fund is a part of the asset management industry in India. It is one of the
oldest and most trusted Asset Management Companies (AMCs), managing a diverse range of
investment schemes, including equity, debt, hybrid, and index funds.

The asset management industry plays a crucial role in the global financial system by
professionally managing investments on behalf of individuals, corporations, and institutions.
This industry encompasses various investment vehicles such as mutual funds, pension funds,
hedge funds, exchange-traded funds (ETFs), and private equity. Asset managers aim to
maximize returns while mitigating risks through strategic allocation of funds across different
asset classes like equities, bonds, real estate, and alternative investments. With assets under
management (AUM) exceeding $100 trillion globally, the industry has witnessed rapid
expansion due to rising financial awareness and technological advancements.

This industry is dominated by global players such as BlackRock, Vanguard, Fidelity

Investments, and J.P. Morgan Asset Management, which collectively manage trillions in
assets. In India, major firms like SBI Mutual Fund, HDFC Asset Management, ICICI
Prudential AMC, UTI Mutual Fund, and Nippon India Mutual Fund lead the market, catering
to millions of investors. The Indian asset management industry has grown significantly, with
AUM surpassing ₹50 lakh crore, fueled by increasing participation in mutual funds through
Systematic Investment Plans (SIPs) and the adoption of digital investment platforms.

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 Market trends indicate a shift towards passive investing, ESG (Environmental, Social,
and Governance) funds, and AI-driven wealth management services. Investors are now more
inclined towards automated advisory platforms (Robo-advisors) that offer data-driven insights
for optimized portfolio management. Additionally, fintech innovations are reshaping the
industry, making investment processes more accessible and transparent. However, challenges
such as market volatility, regulatory changes, economic slowdowns, and intense competition
from fintech startups pose risks to traditional asset management firms.

Looking ahead, the asset management industry is expected to witness sustained

growth, driven by technological advancements, increasing financial literacy, and globalization
of investment opportunities. The demand for sustainable and impact investing is also rising,
encouraging asset managers to develop funds aligned with social and environmental goals. As
financial markets evolve, asset managers will need to adapt to changing investor preferences,
regulatory landscapes, and digital disruptions to remain competitive in this dynamic sector.

How the Asset Management Industry Works

The asset management industry functions by professionally managing investments on behalf

of individuals, corporations, and institutions. The primary goal is to help investors grow their
wealth while minimizing risks by strategically investing in various asset classes like stocks,
bonds, mutual funds, ETFs, real estate, and alternative investments. Following steps are
followed by the AMCs for investing in funds:

1. Pooling of Funds

The process starts when investors (individuals or institutions) contribute money to an Asset
Management Company (AMC) or fund. These funds are pooled together and managed
collectively, allowing even small investors to benefit from professional investment strategies.

2. Portfolio Management

Experienced fund managers analyse the market, assess risks, and allocate the pooled funds
across different asset classes. They make investment decisions based on financial research,
economic conditions, and the specific goals of the fund (e.g., growth, income, or stability).

6
3. Diversification & Risk Management

To reduce risk, asset managers diversify investments across multiple sectors, geographies, and
financial instruments. This ensures that if one asset performs poorly, others may compensate,
balancing the overall portfolio performance.

4. Continuous Monitoring & Adjustments

Asset managers constantly track market trends, economic changes, and company
performances. They buy, sell, or hold investments to maximize returns and adjust portfolios
as per market conditions.

5. Fees & Earnings

Asset management companies earn revenue through management fees, advisory fees, and
performance-based incentives. These fees are usually a percentage of the total assets under
management (AUM).

6. Returns & Investor Benefits

Investors benefit from capital appreciation, dividends, and interest income based on their
investment type. Some funds allow liquidity (easy withdrawal), while others focus on long-
term growth.

In summary, the asset management industry works by collecting funds, strategically investing,
managing risks, monitoring performance, and delivering returns to investors, helping them
achieve their financial goals.

Basic Terms Used in the Asset Management Industry

 Assets Under Management (AUM) – The total market value of assets that an Asset
Management Company (AMC) manages on behalf of clients.
 Net Asset Value (NAV) – The per-unit price of a mutual fund calculated as (Total
Assets - Liabilities) ÷ Total Units Outstanding.
 Mutual Fund – An investment vehicle that pools money from multiple investors to
invest in a diversified portfolio of stocks, bonds, and other securities.
 Exchange-Traded Fund (ETF) – A type of investment fund that trades on stock
exchanges like a stock, offering diversification with lower fees.

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 Hedge Fund – A private investment fund that uses advanced strategies like short selling,
derivatives, and leverage to maximize returns.
 Equity Funds – Mutual funds that primarily invest in stocks to generate capital
appreciation over the long term.
 Debt Funds – Funds that invest in fixed-income securities like bonds, government
securities, and debentures, offering stable but lower returns.
 Systematic Investment Plan (SIP) – A disciplined investment approach where
investors contribute a fixed amount at regular intervals into mutual funds.
 Expense Ratio – The percentage of total assets deducted annually to cover a fund’s
management, administrative, and operational costs.
 Portfolio Diversification – A risk management strategy where investments are spread
across different asset classes, sectors, and geographies to minimize losses.
 Benchmark Index – A standard against which the performance of a fund is measured,
such as the Nifty 50, S&P 500, or Sensex.
 Alpha & Beta –Alpha measures a fund’s excess return compared to a benchmark. Beta
indicates the fund’s volatility relative to the market.
 Liquidity – The ease with which an investment can be bought or sold in the market
without affecting its price.
 Risk-Adjusted Return – A measure of investment return relative to its risk level, often
calculated using metrics like Sharpe Ratio.
 Sharpe Ratio – Measures risk-adjusted return by comparing excess return (beyond the
risk-free rate) per unit of risk (standard deviation).
 Exit load - a fee or charge imposed on investors when they sell or redeem their mutual
fund shares.
 Entry Load - a sales charge or fee that investors may be required to pay when
purchasing mutual fund shares.
 NFO - stands for New Fund Offer, or the launch of a mutual fund scheme. This is when
the scheme is offered to public for the first time.

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 COMPANY PROFILE

UTI Asset Management Company (UTI AMC) is one of India's leading asset
management companies. It manages mutual funds, portfolio management services, and
retirement solutions for individual and institutional investors. UTI Mutual Fund was launched
by the Government of India in 1963, and it is one of the oldest mutual fund companies in
India. After restructuring in 2002, UTI Mutual Fund became an independent Asset
Management Company (AMC) regulated by SEBI. Headquartered in Mumbai, India, UTI
AMC is a publicly listed company on the National Stock Exchange (NSE) and Bombay Stock
Exchange (BSE).

With over 60 years of experience, it has played a key role in shaping the Indian mutual
fund industry. The company also offer their services in India and 40+ countries
through the principal and subsidiary business entities. It has a nationwide
network comprising 190+ UTI Financial Centres and more than 170 District
Associates as of September 2024. UTI Mutual Fund offers easy-to-use online investment
platforms, mobile applications, and tech-enabled customer services.The company boasts a
substantial investor base, with over 1.22 crore investor folios. This extensive reach is
supported by a robust distribution network comprising more than 190 UTI Financial Centres,
over 210 District Associates, and approximately 56,600 distributors.

VISION: “To be the most preferred Asset Manager”

MISSION: “The most trusted brand, admired by all stakeholders. Asset

Manager with a diverse suite of products and global presence. Enable our
customers to achieve their financial goals. A socially responsible organization,
known for best corporate governance.”

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KEY ACHIEVEMENTS OF UTI MUTUAL FUNDS

1963 – Establishment of UTI

 UTI (Unit Trust of India) was founded under an Act of Parliament, making it India’s
first mutual fund.
 The aim was to promote savings and investments among Indian investors.

1964 – Launch of Unit Scheme-1964 (US-64)

 UTI introduced US-64, India’s first-ever mutual fund scheme, which became highly
popular.
 It provided attractive returns and encouraged long-term investing.

1987 – End of Monopoly in the Mutual Fund Industry

 Until 1987, UTI was the only mutual fund provider in India.
 This year, the Government of India allowed public sector banks and financial
institutions to start mutual funds, increasing competition.

1990s – Expansion and New Fund Categories

 UTI introduced sectoral and thematic funds to cater to different investor needs.
 It played a major role in financial inclusion by launching various schemes for retail
investors.

2002 – Restructuring of UTI

Due to financial and regulatory challenges, UTI was split into two entities:

 Specified Undertaking of UTI (SUTTI) – Managed the government-controlled

assets.
 UTI Mutual Fund (UTI AMC) – Became a SEBI-regulated private-sector mutual
fund company.

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2004 – Introduction of SIP (Systematic Investment Plan)
 UTI was among the first AMCs to introduce SIP on a large scale, making investing
affordable and systematic for small investors.

2010 – ₹1 Lakh Crore AUM Milestone

 UTI Mutual Fund achieved a significant milestone by crossing ₹1 lakh crore in Assets
Under Management (AUM).

2020 – Public Listing on NSE & BSE

 UTI Mutual Fund became a publicly traded company, listing its shares on the National
Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

2023 – ₹2.5 Lakh Crore AUM Milestone

 UTI Mutual Fund surpassed ₹2.5 lakh crore in AUM, further solidifying its position as
a leading AMC in India.

FUNDS OFFERED

​ UTI Mutual Fund offers a diverse range of schemes tailored to meet various investment
objectives, risk appetites, and financial goals. Below is an overview of some notable UTI
mutual fund schemes, including their objectives, performance, expense ratios, and
suitability:​

UTI Mutual Fund offers a diverse range of schemes tailored to meet various investment
objectives, risk appetites, and financial goals. Below is an overview of some notable UTI
mutual fund schemes, including their objectives, performance, expense ratios, and suitability:

1. UTI Large & Mid Cap Fund Direct-Growth

Investment Objective: Aims to achieve long-term capital appreciation by investing

predominantly in equity and equity-related securities of large and mid-cap companies.

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Suitability: Ideal for investors seeking exposure to both large and mid-cap segments with a
long-term investment horizon and a moderately high-risk tolerance.

Performance:

1-Year Returns: 10.8%

3-Year Annualized Returns: 18.92%

5-Year Annualized Returns: 28.72%

2. UTI Value Opportunities Fund

Investment Objective: Seeks to generate capital appreciation by investing in equity and

equity-related instruments, focusing on capitalizing on opportunities arising in the market by
dynamically shifting investments among different sectors.

Expense Ratio: 1.85%

Suitability: Suitable for investors with a long-term perspective aiming for capital
appreciation through a diversified sectoral approach, willing to accept moderately high risk.

Performance:

1-Year Returns: 10.1%

3-Year Annualized Returns: 18.8%

5-Year Annualized Returns: 19.8%

3. UTI Banking & PSU Debt Fund

Investment Objective: Aims to generate steady and reasonable income with low risk
and high liquidity by investing predominantly in debt and money market securities
issued by banks and public sector undertakings (PSUs).

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 Expense Ratio: 0.55%
Suitability: Appropriate for conservative investors seeking stable returns with low to
moderate risk, focusing on debt instruments from reputable institutions.

Performance:

1-Year Returns: 7.5%

3-Year Annualized Returns: 8.5%

5-Year Annualized Returns: 7.7%

4. UTI Multi Asset Allocation Fund

Investment Objective: Seeks to provide long-term capital appreciation and income by

investing in a diversified portfolio of equity, debt, and gold-related instruments.

Suitability: Ideal for investors seeking diversification across asset classes to balance risk and
return, suitable for a medium to long-term investment horizon.

Performance:

1-Year Returns: 9.1%

3-Year Annualized Returns: 16.73%

5-Year Annualized Returns: 18.67%

5. UTI Equity Savings Fund

Investment Objective: Aims to provide capital appreciation and income distribution through
investment in equity, arbitrage opportunities, and debt and money market instruments.

Suitability: Suitable for investors seeking a balanced approach with exposure to equities and
debt, aiming for moderate returns with relatively lower volatility.
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Performance:

1-Year Returns: 6.9%

3-Year Annualized Returns: 10.7%

5-Year Annualized Returns: 13.92%

6. UTI Nifty Next 50 Index Fund

Investment Objective: Seeks to replicate the performance of the Nifty Next 50 Index by
investing in stocks comprising the index in the same proportion.

Suitability: Ideal for investors looking for passive investment in the Nifty Next 50 Index with
a long-term horizon and a preference for market-linked returns.

Performance:

1-Year Returns: 2.7%

3-Year Annualized Returns: 13.53%

5-Year Annualized Returns: 22.41%

7. UTI Small Cap Fund

Investment Objective: Aims to achieve long-term capital appreciation by investing

predominantly in equity and equity-related securities of small-cap companies.

Suitability: Suitable for investors with a high-risk appetite seeking significant growth
potential through investments in small-cap companies over a long-term period.

Performance:

1-Year Returns: 12.0%

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 3-Year Annualized Returns: 19.25%

8. UTI Healthcare Fund

Investment Objective: Seeks to provide capital appreciation through investments in equity

and equity-related instruments of companies in the healthcare sector.

Performance:

1-Year Returns: 20.1%

3-Year Annualized Returns: 19.58%

5-Year Annualized Returns: 27.51%

9. UTI Infrastructure Fund

Investment Objective: Aims to achieve long-term capital appreciation by investing

predominantly in equity and equity-related securities of companies engaged in the
infrastructure sector.

Expense Ratio: 1.79%

Suitability: Suitable for investors with a high-risk appetite seeking exposure to the
infrastructure sector, aiming for long-term capital growth.

Performance:

3-Year Annualized Returns: 22.60%

5-Year Annualized Returns: 16.82%

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10. UTI Mid Cap Fund

Investment Objective: Seeks to provide long-term capital appreciation by investing

predominantly in equity and equity-related securities of mid-cap companies.

Expense Ratio: 0.80%

Suitability: Ideal for investors looking for substantial growth potential through investments
in mid-sized companies, with a higher risk tolerance and a long-term investment horizon.

Performance:

3-Year Annualized Returns: 19.55%

5-Year Annualized Returns: 28.85%

INVESTMENT STRATEGIES USED BY UTI MUTUAL FUNDS AMC

UTI Mutual Fund follows a well-researched and diversified approach to investing,

employing a combination of traditional and modern strategies to meet the varied financial
goals of its investors—whether it be wealth creation, capital preservation, or regular income.
These strategies are applied across different fund types like equity, debt, hybrid, and multi-
asset funds.

1. Fundamental-Driven Equity Investments

One of the core strategies at UTI is investing based on strong fundamental analysis.
This involves selecting companies with proven business models, steady operating cash flows,
and consistently high Return on Capital Employed (ROCE) over a long period—typically five
years or more. The fund managers look for businesses that generate real economic value and
have solid financial health. By focusing on such fundamentally sound companies, UTI aims to

16
build a portfolio that can withstand market volatility and generate long-term returns for
investors.

2. Quantitative Investment Strategy (Factor-Based Investing)

In January 2025, UTI introduced the UTI Quant Fund, an equity fund that relies on a
systematic, quantitative investment approach rather than individual stock-picking by
human managers. The fund uses a Factor Allocation Model, where it gives variable
importance (weights) to four key factors:

 Momentum – stocks showing strong recent performance,

 Quality – financially stable companies with low debt and good profitability,
 Low Volatility – stocks with relatively stable price movements, and
 Value – stocks trading below their intrinsic value.
This quantitative model helps the fund respond dynamically to market conditions,
reducing emotional bias and improving risk-adjusted returns over time.

3. Hybrid Investment Approach

UTI also uses hybrid strategies, particularly in funds like the UTI Equity Savings
Fund, which combine investments in equities, debt securities, and arbitrage opportunities.
The equity portion is carefully selected based on valuation and growth potential, while the
debt portion is invested in high-credit-rated instruments for capital safety and income.
Arbitrage strategies, which take advantage of price differences in different markets, are used
to generate low-risk returns. This blend helps in creating a balance between growth and
income, making the fund suitable for moderate-risk investors seeking stability and reasonable
returns.

4. Multi-Asset Allocation

The UTI Multi Asset Allocation Fund invests across three key asset classes: equity,
debt, and gold (via Gold ETFs). The allocation among these asset classes is actively managed
and adjusted depending on market outlook, interest rates, inflation trends, and investor
sentiment. The purpose of this strategy is to diversify the portfolio and reduce dependence on
17
any single asset class. It helps smooth out returns, especially during uncertain or volatile
market conditions.

5. ESG-Based Investing (Environmental, Social, Governance)

UTI is increasingly integrating ESG parameters into its investment process, especially
in equity funds. This means that the fund managers evaluate companies not only based on
financial metrics but also on how responsibly they operate in terms of environmental
sustainability, social impact (like employee and community treatment), and corporate
governance (such as board structure, transparency, and ethics). This strategy ensures long-
term value creation and aligns with global trends in responsible investing.

6. Thematic and Sectoral Investments

In addition to diversified funds, UTI offers thematic and sector-specific funds, such as
those focused on infrastructure, banking, technology, and consumption. These funds are
designed to capture the growth potential of particular sectors or macro themes influenced by
government policy, economic reforms, or global demand trends. Fund managers rotate
exposure between themes based on where they foresee maximum opportunity, which allows
investors to tap into high-growth areas of the market.

7. Active Duration Management in Debt Funds

In the fixed-income category, UTI follows active duration management to control

interest rate risk. Duration is a measure of a bond’s sensitivity to interest rate changes. During
periods of expected interest rate hikes, the fund managers reduce the duration to protect
capital, and in falling interest rate scenarios, they increase the duration to enhance returns.
This active monitoring and shifting of the debt portfolio help in navigating the changing
interest rate environment and generating optimal returns for investors in debt schemes.

18
 OBJECTIVE OF THE STUDY

 To Understand the Financial Planning Process

To examine how the financial planning process is conducted at UTI Mutual Funds.

 To Evaluate Investment Strategies

To analyze the different investment strategies (equity, debt, hybrid funds) pursued by UTI
Mutual Funds.

 To Evaluate Risk Management Practices.

To analyze the risk management methods adopted in the financial planning process.

 To Examine Customer Preferences and Satisfaction

To determine the UTI Mutual Funds' customers' preferences, expectations, and investment
behavior and gauge their satisfaction levels for financial planning services.

 To Measure Financial Performance

To measure the financial performance of UTI Mutual Funds in terms of returns, growth, and
market standing.

 To Provide Recommendations for Improvement

To determine the loopholes in the financial planning process and recommend potential
improvements for greater efficiency and customer satisfaction.

 To Analyze the Role of Asset Allocation in Risk Reduction

To examine how UTI Mutual Funds use asset allocation strategies (mixing equity, debt, and
other asset classes) to reduce risk and enhance returns.

 To Analyze the Impact of Fees and Charges on Investor Returns

To study how various fees (management fees, fund expenses, advisory fees) impact the net
returns received by investors in UTI Mutual Funds.

19
 NEED OF THE STUDY

 Importance of Financial Planning

Proper financial planning helps individuals manage their income, expenses, and savings. It
ensures financial security and helps achieve life goals like education, home, and retirement.

 Mutual Funds as an Investment Tool

Mutual funds provide a safe and diversified way to grow wealth over time. They are managed
by experts, making them ideal for both beginners and experienced investors.

 Understanding UTI Mutual Funds

UTI Mutual Fund offers various investment options suited for different financial goals. This
study will help investors choose the right fund based on their needs.

 Investor Awareness and Education

Many people invest without proper knowledge, leading to financial losses. This study will
educate investors on mutual fund benefits, risks, and strategies.

 Comparing Risk and Returns

Every investment carries some risk, but mutual funds balance risk and reward effectively.
This study will analyze different UTI funds based on their past performance and risk factors.

 Impact of Market Fluctuations

Mutual fund returns depend on stock market movements, interest rates, and economic
conditions. Understanding these factors will help investors make better decisions.

 Role in Tax Savings

Mutual funds like ELSS help investors save tax under Section 80C of the Income Tax Act.
This study explains how tax-saving funds can provide dual benefits of savings and returns.
20
 SCOPE OF THE STUDY

This study explores how UTI Mutual Funds help individuals and businesses in
financial planning, wealth creation, and risk management. It covers various aspects of
investment strategies, fund performance, investor behavior, and market trends.

 Understanding Financial Planning through Mutual Funds

The study explains how mutual funds help in budgeting, saving, and investing to meet
financial goals like education, home buying, retirement, and emergencies.

 Analysis of UTI Mutual Fund Schemes

It examines different mutual fund schemes offered by UTI Mutual Fund, including equity,
debt, hybrid, and ELSS funds, to understand their role in financial planning.

 Investment Strategies & Risk Management

The study explores how investors can use SIP (Systematic Investment Plan), lump-sum
investments, and diversification to balance risk and returns.

 Investor Awareness & Decision-Making

It analyzes investor behavior, including how much people know about mutual funds, their
investment preferences, and the challenges they face.

 Tax Planning & Retirement Benefits

The study highlights how tax-saving mutual funds (like ELSS) and retirement plans help
investors build a secure financial future while reducing tax liabilities.

 Performance Analysis of UTI Mutual Fund Schemes

It evaluates the past performance, returns, risk levels, and NAV trends of UTI Mutual Funds,
helping investors make informed decisions.

21
 LIMITATIONS OF THE STUDY

While this study provides valuable insights into financial planning using UTI Mutual Funds, it
has certain limitations that may affect the overall findings.

 Limited to UTI Mutual Funds Only

The study focuses only on UTI Mutual Fund schemes and does not compare mutual funds
from other Asset Management Companies (AMCs) like SBI, HDFC, or ICICI.

 Past Performance Does Not Guarantee Future Results

Mutual fund returns depend on market conditions, economic factors, and fund management
strategies. Past performance analysis may not accurately predict future returns.

 Market Risks and Economic Uncertainty

External factors like inflation, interest rate changes, government policies, and global financial
crises can impact mutual fund performance, making it difficult to provide fixed conclusions.

 Variations in Investor Behavior

Different investors have different financial goals, risk-taking abilities, and investment time
frames. The study may not apply equally to all types of investors.

 Limited Availability of Updated Data

Mutual fund data is constantly changing, and this study may not always reflect the latest
updates, new schemes, or changes in fund strategies.

 Influence of Fund Manager Decisions

A mutual fund’s performance is highly dependent on the fund manager’s investment strategy,
which may change over time and impact returns.

22
 CHAPTER 2

REVIEW OF LITERATURE

Journal 1

Title: Modern Portfolio Theory

Author: Markowitz, 1952

Literature Summary:

Markowitz introduced Modern Portfolio Theory (MPT), which emphasizes diversification as

a key strategy to minimize investment risk. According to MPT, investors should construct a
portfolio that includes a variety of assets—such as stocks, bonds, and other securities—so that
the overall risk is lowered through the combination of assets with different levels of return
and risk. The idea is that not all assets will perform poorly at the same time, and gains in
some investments can offset losses in others.

MPT also introduces the concept of the efficient frontier, which represents the set of optimal
portfolios that offer the highest expected return for a given level of risk. Investors are
encouraged to select portfolios along this frontier depending on their risk tolerance. The
theory assumes that investors are rational and markets are efficient, and it uses mathematical
models to analyze risk-return trade-offs.

Journal 2

Title: Mutual Funds and Risk Reduction

Author: Statman, 1987

23
Literature Summary:

Statman argued that mutual funds help small investors achieve diversification, which reduces
unsystematic risk (company-specific or industry-specific risk). By pooling funds from many
investors and allocating them across a wide range of securities—such as stocks, bonds, and
other financial instruments—mutual funds ensure that the impact of any single asset’s poor
performance is minimized within the overall portfolio.

This is particularly beneficial for retail investors, who often lack the capital, expertise, or time
to individually purchase and manage a large and diversified portfolio. Through mutual funds,
even small investors gain exposure to a broader investment base, which helps improve
stability and consistency of returns.

Journal 3

Title: Wealth Accumulation with SIPs

Author:Singh & Yadav, 2015

Literature Summary:

Singh and Yadav found that Systematic Investment Plans (SIPs), where investors invest a
fixed amount in mutual funds at regular intervals, help in long-term wealth accumulation.
SIPs take advantage of rupee cost averaging, reducing the impact of market fluctuations, and
enabling disciplined investing without the need for market timing.

Their study emphasized that SIPs promote financial discipline by encouraging regular saving
habits and helping investors stay committed to their goals. SIPs are especially suitable for
salaried individuals, as they allow investment with small amounts starting from as low as
₹500. Over time, SIPs benefit from the power of compounding, where reinvested returns
generate additional earnings, significantly boosting wealth.

24
Journal 4

Title: Index Funds vs. Active Funds

Author: Bogle, 1999

Literature Review:

John Bogle, the founder of Vanguard, argued that low-cost index funds consistently
outperform actively managed mutual funds over time. Since index funds track a benchmark
index with minimal management fees, they deliver better net returns compared to actively
managed funds, where fees and transaction costs can erode profits.

Bogle highlighted that most active fund managers fail to consistently beat the market after
accounting for expenses, making passive investing a more reliable long-term strategy. Index
funds also offer greater transparency, as their holdings mirror the underlying index, making
them easier for investors to understand.

Journal 5

Title: Investor Behavior and Professional Fund Management

Author: Barber & Odean, 2000

Literature Summary:

This study found that individual investors often make poor investment decisions due to
emotional biases, such as panic-selling during downturns and overconfidence in stock
selection. Professional fund management in mutual funds helps mitigate these risks by
making data-driven investment decisions rather than emotional reactions.

25
Journal 6

Title: Behavioral Biases in Mutual Fund Investment

Author: Shefrin & Statman, 2000

Literature Summary:

Shefrin and Statman explored psychological biases like loss aversion (investors fear losses
more than they value gains) and overconfidence (believing they can outperform the market).
These biases often lead to impulsive and suboptimal investment decisions, such as buying
high in a bull market or selling during market corrections.

The researchers pointed out that behavioral biases often prevent investors from sticking to a
long-term strategy, causing them to chase short-term gains and time the market. Mutual funds,
managed by professionals, help investors avoid such mistakes by following structured
investment strategies that are based on long-term goals, rather than emotional reactions to
market movements.

Journal 7

Title : Investor Perception and Satisfaction

Author: Saini, Anjum & Saini (2011)

Literature Summary:

Investor satisfaction depends on various aspects such as returns, transparency, ease of

transactions, and customer service. Saini, Anjum & Saini (2011) found that mutual funds are
perceived positively due to their affordability (low minimum investment), easy withdrawal,
online accessibility, and wide variety of schemes. These features make mutual funds attractive
to both novice and experienced investors, as they offer flexibility and simplicity in investing.

26
The low entry barrier of mutual funds, where investors can start with as little as ₹500, makes
them accessible to a large portion of the population, especially first-time investors and those
with limited capital.

Journal 8

Title: Professional Management

Author: Grinblatt & Titman, 1994

Literature Summary:

Grinblatt and Titman (1994) examined the impact of professional management on mutual
fund performance. They argued that skilled fund managers can add value through careful
selection of assets, portfolio diversification, and timely decision-making. While markets may
be efficient, the expertise of professional managers allows mutual funds to outperform passive
investments by leveraging their knowledge and access to market research.

Their study highlighted that professional managers are capable of analyzing financial data,
identifying investment opportunities, and managing risk better than individual investors.
Furthermore, they pointed out that active management often involves adjusting the portfolio
based on macroeconomic trends and company-specific news, which helps avoid market
inefficiencies.

Journal 9

Title: Liquidity

Author: Elton et al., 2003

Literature Summary:

Elton et al. (2003) discussed the importance of liquidity in mutual funds and its impact on
investor decisions. Liquidity refers to the ease with which assets in a portfolio can be bought
27
or sold without affecting their price significantly. According to their research, mutual funds
offer superior liquidity compared to other investment options like real estate or certain stocks,
as they can be quickly converted into cash at the current market value, typically on any
business day.

The study emphasized that the liquidity of mutual funds makes them an attractive choice for
investors who need access to their investments in the short-term while maintaining the
potential for long-term growth. This flexibility provides a significant advantage over less
liquid assets, allowing investors to respond to changes in their financial needs or market
conditions without significant penalties.

Journal 10

Title: Accessibility and Affordability

Author: Malkiel, 1995

Literature Summary:

Mutual funds allow small investors to participate in stock and bond markets with low
minimum investment amounts. This makes investing accessible to a broader audience without
requiring large capital, providing an opportunity for wealth creation over time. According to
Malkiel (1995), mutual funds democratize access to financial markets, allowing individuals
with limited resources to diversify their investments in a variety of asset classes, thus
reducing the risks associated with investing in a single asset.

28
 CHAPTER 3

RESEARCH METHODOLOGY

MEANING

Research Methodology refers to the systematic plan and structure of conducting research. It
includes the procedures, tools, and techniques used to identify, collect, analyze, and interpret
information about a research problem. It is considered the backbone of any research because it
guides the researcher on how the data will be gathered, from where it will be collected, how it
will be analyzed, and how the results will be interpreted. In simpler terms,Research
Methodology is the blueprint for the research process and explains how a study is conducted,
ensuring it is scientific, logical, and reliable.

OBJECTIVES OF RESEARCH METHODOLOGY

The primary objectives of using research methodology are:

 To provide a structured and logical approach to research.

 To identify suitable methods for data collection and analysis.
 To ensure the accuracy, consistency, and objectivity of results.
 To minimize errors, bias, and subjectivity in the research process.
 To ensure that the research findings can be replicated and validated.
 To clearly explain why a particular approach or technique was used.
 To support decision-making with strong, evidence-based conclusions.

TYPES OF RESEARCH METHODOLOGY

A. Based on Nature of Data:

 Qualitative Methodology: Deals with non-numerical data like emotions, opinions, and
behavior.

Methods: Interviews, focus groups, case studies.

29
 Example: Studying investor satisfaction or perception.

 Quantitative Methodology:Involves numerical data and statistical analysis.

Methods: Surveys, experiments, observational data, SPSS/Excel analysis.

Example: Measuring returns, risk levels, fund performance.

 Mixed-Methods Research Methodology - This combines both qualitative and

quantitative methods in a single study to provide a more complete understanding

B. Based on Purpose of Research:

 Descriptive Research – Describes characteristics or functions.

 Analytical Research – Analyzes existing facts/data to evaluate relationships.
 Exploratory Research – Investigates unexplored areas to formulate new ideas or
hypotheses.
 Experimental Research – Tests hypotheses under controlled conditions.
 Fundamental Research – Focuses on developing theories or general knowledge.
 Applied Research – Aims to solve practical problems using scientific methods.

3.1 RESEARCH DESIGN

The research design used for the study titled "A Study on Financial Planning with
Mutual Funds" is a Descriptive Research Design.

Descriptive research is used to systematically describe a situation, behavior, or

phenomenon. It does not involve manipulating variables but focuses on what is happening,
how it is happening, and who is involved. The objective is to systematically describe and
analyze the financial planning behavior of different segments of the population with respect to
mutual funds. Descriptive research helps in understanding what is happening in the
investment space, who is investing in mutual funds, how they are planning financially, and
why they choose particular fund types.

30
The study does not manipulate any variables but observes and interprets existing conditions,
behavior, and preferences of individuals in real life. The data collected is used to describe
patterns, compare different demographic groups (like students vs. retired individuals), and
highlight the factors influencing mutual fund investment decisions.

3.2 RESEARCH HYPOTHESIS & METHODOLOGY

A research hypothesis is a statement that predicts the relationship between two or

more variables. It gives a direction to the study and helps the researcher test assumptions
through data analysis. It is like an educated guess about what the researcher expects to find.

Types of study:

 Null Hypothesis (H₀):It assumes no relationship between the variables.

 Alternative Hypothesis (H₁):It assumes there is a relationship or effect.

Hypothesis of the study:

 Null Hypothesis (H₀):: “Occupation has no effect on mutual fund investment

decisions.”
 Alternative Hypothesis (H₁):: “Occupation significantly affects mutual fund
investment decisions.”

Methodology Overview:

 This mixed-method approach ensures a thorough understanding of the subject,

providing actionable insights that can be applied in real-world financial planning and
investment practices.
 A structured questionnaire distributed via Google Forms to collect quantitative and
opinion-based feedback

 Secondary data sources, such as magazines, mutual fund company websites, and fact
sheets, are also used to support the primary data and provide contextual information
about the mutual fund industry.

31
 3.3 DATA ANALYSIS

Data analysis plays a crucial role in transforming raw information into meaningful
insights. In this study, the collected data—both numerical and categorical—will be
systematically analyzed to evaluate how effectively UTI Mutual Funds’ financial planning
strategies enhance investor understanding and confidence in mutual fund investments. The
analysis is structured to test research hypotheses, compare group perceptions, and identify
patterns or trends that support or challenge existing financial planning practices.

The responses collected through the Google Form are first organized and cleaned
using Microsoft Excel or Google Sheets, ensuring no missing or invalid entries. This cleaned
dataset is then prepared for statistical analysis using tools such as SPSS, Excel, or online
statistical calculators, depending on the type of test applied.

Statistical Tools Considered for Analysis:

1. Descriptive Statistics

Descriptive statistics form the foundation of this data analysis by summarizing the responses
in a meaningful way. These include:
- Mean (Average): Helps understand the central tendency of responses such as satisfaction
with financial advice or ease of understanding investment plans.
- Median and Mode: Useful for analyzing skewed or categorical data like preferred
investment durations or fund types.
- Standard Deviation and Variance: Measure the spread or consistency of investor feedback
across different financial services.
- Frequencies and Percentages: Used to quantify how often particular responses were selected
in multiple-choice or Likert scale questions (e.g., risk preference, fund awareness).

32
2. Chi-Square Test (χ² Test)

The Chi-square test is used to examine the relationship between two categorical variables.

Application Example:
- Investigating whether investment preferences (e.g., equity vs. debt funds) vary significantly
by age group.
- Data Required: Two categorical variables (e.g., age group and fund preference)
- Purpose: To test associations between demographic factors and investment choices.

3. T-Test (Independent Samples T-Test)

The t-test compares the means of two independent groups to see if the difference is
statistically significant.

Application Example:
- Comparing average financial confidence scores between male and female investors.
- Data Required: One numerical variable (e.g., confidence score) and one categorical
variable (e.g., gender)
- Purpose: To test mean differences between two groups.

4. ANOVA (Analysis of Variance)

ANOVA is used when comparing means across three or more independent groups.

Application Example:
- Comparing the effectiveness of financial planning across different income groups.
- Data Required: One categorical variable with 3+ groups (e.g., income brackets), and one
continuous outcome variable (e.g., satisfaction score)
- Purpose: To identify significant differences in perceptions among multiple segments.

33
5. F-Test

The F-test compares variances between two groups. It is often used to validate assumptions
before applying other tests like ANOVA or t-tests.

Application Example:
- Testing whether the variability in investment satisfaction scores differs significantly
between new and experienced investors.
- Data Required: Two sets of numerical data
- Purpose: To compare variability in responses between groups.

6. Correlation Analysis (Pearson’s Correlation Coefficient)

This analysis measures the strength and direction of the relationship between two continuous
variables.

Application Example:
- Assessing whether an increase in investor knowledge is associated with higher financial
planning satisfaction.
- Data Required: Two continuous variables (e.g., financial knowledge score and satisfaction
rating)
- Purpose: To examine relationships between education and investor confidence.

7. Regression Analysis (Optional Advanced Tool)

Regression analysis helps determine the extent to which one or more independent variables
can predict a dependent variable.
Application Example:
- Predicting investor satisfaction based on variables like risk tolerance, fund type preference,
and income level.
- Data Required: One dependent variable and multiple independent variables
- Purpose: To understand and quantify the influence of various factors on financial planning
outcomes.

34
 3.4 SAMPLE SIZE

The study incorporates responses from a total of 50 participants, categorized into:

 Company Staff: Employees from various departments within UTI Mutual Funds,
including finance, sales & Marketing, customer support, and investment advisory
roles. These participants were selected through purposive sampling, ensuring that
individuals with relevant exposure to mutual fund planning and client interaction
were included.
 Finance Students: Academic peers with foundational knowledge of financial
planning and investment principles, selected using convenience sampling. These
individuals provide insights based on theoretical understanding gained through
coursework and academic exposure.

This sample enables a practical comparative analysis between real-world professional

experience and academic perceptions of financial planning effectiveness, mutual fund clarity,
and overall investor satisfaction.

DATA COLLECTION APPROACH

Example 1:

T -TEST

A t-test is a statistical test used to compare the means (averages) of one or two groups
to determine whether the difference between them is statistically significant. It uses the t-
distribution, especially when sample sizes are small and population standard deviation is
unknown.

35
Types of T-tests

1. One-Sample T-test

Purpose: Compares the sample mean to a known or hypothesized population mean.

Example:Is the average return of a mutual fund portfolio higher than the market average?

2. Independent Samples T-test (also called Unpaired T-test)

Purpose: Compares the means of two independent groups.

Example: Do investors who follow a financial plan achieve higher returns than those who do
not?

3. Paired Samples T-test (also called Dependent T-test)

Purpose: Compares means from the same group at two different times

Example: Did financial knowledge improve after attending a mutual fund awareness seminar?

When to Use a T-test?

Use a t-test when:

You want to compare means.You have quantitative (numerical) data.Your data is

approximately normally distributed.You know the sample standard deviation, not the
population standard deviation.

Interpreting T-test Results:

t-value: Tells how big the difference is compared to the variation.

p-value: Tells if the difference is statistically significant.

p ≤ 0.05 → Significant difference.

p > 0.05 → Not significant (insignificant).

36
 Std. Std. Mean
Dimens
Gender N Mean Deviati Error Differe t-Value Sig.
ions
on Mean nce
Result

Male 26 2.46 1.067 0.209 .253 .825

Not
.677
Preferre Signific
d Type ant
Female 24 2.21 1.103 0.225 .253 .824

Male 26 2.69 1.320 0.259 .609 1.613

Primary Not
.543
Objecti Signific
ve ant
Female 24 2.08 1.349 0.275 .609 1.612

Male 26 1.35 0.485 0.095 .054 .405

Risk Not
.421
Appetit Signific
e ant
Female 24 1.29 0.464 0.095 .054 .406

Male 26 2.04 0.916 0.180 .163 .736

Percent Not
.122
age Of Signific
Savings ant
Female 24 1.88 0.612 0.125 .163 .747

Reactio Male 26 1.65 0.797 0.156 -.013 -.054

Not
ns To
.926 Signific
Fluctuat
ant
ions Female 24 1.67 0.868 0.177 -.013 -.054

37
Interpretation of the Table:

The independent sample t-test was conducted to compare the financial behavior
of male and female respondents across five key dimensions: Preferred Type, Primary
Objective, Risk Appetite, Percentage of Savings, and Reactions to Fluctuations. The results
indicate that for each dimension, the Sig. (p-value) is greater than the commonly accepted
threshold of 0.05, meaning that the differences in the mean scores between males and females
are not statistically significant. For instance, while males had a slightly higher mean score
than females in dimensions like "Preferred Type" (2.46 vs. 2.21) and "Primary Objective"
(2.69 vs. 2.08), the differences are not large enough to conclude that gender plays a
meaningful role in influencing these behaviors. Similarly, in terms of "Risk Appetite" and
"Reactions to Fluctuations", both genders showed very close average responses, indicating
similar attitudes towards financial risk and market changes. These findings suggest that
gender does not significantly affect financial decision-making patterns among the respondents
in this sample. As a result, any variations observed in the data are likely due to random
chance rather than actual gender-based behavioral differences.

Based on the independent sample t-test results, there is no statistically

significant difference between male and female respondents across all five financial behavior
dimensions: Preferred Type, Primary Objective, Risk Appetite, Percentage of Savings, and
Reactions to Fluctuations. All p-values were greater than the standard significance level of
0.05, indicating that gender does not have a meaningful influence on these aspects. This
suggests that both males and females exhibit similar financial attitudes and behaviors in the
context of the variables studied.

38
Example 2:

One way ANOVA Test

One-Way ANOVA (Analysis of Variance) is used to determine whether there are statistically
significant differences in the preferences or behaviors of investors across different age groups.

 Independent Variable:

1.Age Group (18-24,25-30,31-35,above 36)

 Dependent Variables:

1. Preferred type of mutual fund (e.g., equity, debt, hybrid)

2. Primary investment objective (e.g., wealth creation, tax saving, retirement)
3. Risk appetite (e.g., high, medium, low)
4. % of income allocated to investment.
5. Reaction to market fluctuations (e.g., hold, sell, invest more)

Purpose of One-Way ANOVA in This Context

The test checks:

Do investors of different age groups significantly differ in how they invest, what they
prefer, how much risk they take, and how they respond to the market?For example:

 Does risk appetite vary significantly with age?

 Do younger investors prefer equity funds more than older investors?

Hypothesis of the test:

Null Hypothesis (H₀):

"There is no significant difference among various age groups of investors regarding

their preferred type of mutual funds, primary investment objectives, risk appetite,
percentage of income allocated to investments, and reaction to market fluctuations."
39
Alternative Hypothesis (H₁):

"There is a significant difference among various age groups of investors in terms of

their preferred type of mutual funds, primary investment objectives, risk appetite,
percentage of income allocated to investments, and their reaction to market
fluctuations."

Mean
Dimensions Age n df F Sig.
Square

18-24 24 3 1.269 1.093 .362

25-30 10

Preferred type of 31-36 7

funds
36
9 46 1.161
& Above

Total 50 49

18-24 24 3 3.735 2.181 .103

25-30 10

Primary 31-36 7
Objective
36
9 46 1.713
&Above

Total 50 49

18-24 24 3 .243 1.102 .358

25-30 10

31-36 7
Risk Appetite
36
9 46 .221
&Above

Total 50 49

40
 18-24 24 3 .105 .163 .920

25-30 10

Percentage of 31-36 7
Savings alloted
36
9 46 .644
&Above

Total 50 49

18-24 24 3 .483 .700 .557

25-30 10

Reactions to 31-36 7
fluctuations
36
9 46 .691
&Above

Total 50 49

Interpretation:

A one-way ANOVA was conducted to examine whether there are significant

differences in financial behavior across different age groups (18–24, 25–30, 31–36,
and 36 & above) based on five dimensions: Preferred Type of Funds, Primary
Objective, Risk Appetite, Percentage of Savings Allotted, and Reactions to
Fluctuations. The results showed that in all five dimensions, the Sig. (p-value) was
greater than the standard threshold of 0.05, indicating that the differences observed
between age groups are not statistically significant. For example, while the F-value for
"Primary Objective" was slightly higher (F = 2.181), the p-value (.103) still suggests
no meaningful difference. Likewise, for dimensions like "Preferred Type of Funds" (p
= .362), "Risk Appetite" (p = .358), and "Reactions to Fluctuations" (p = .557), the
variations between age groups were minimal. The highest p-value was for "Percentage
of Savings Allotted" (p = .920), strongly confirming that saving behavior is consistent
across ages. Overall, these findings imply that age does not significantly influence
financial preferences or behavior in this dataset.

41
 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

4.1 Table Showing Response Based on “Age”

S.No Age Group Frequency Percentage (%)

1 18–24 24 48.00%

2 25–30 10 20.00%

3 36 and above 9 18.00%

4 31–35 7 14.00%

Total 50 100.00%

Interpretation:
The highest number of respondents (48%) belong to the 18–24 age group, reflecting a
younger audience, mostly students or early career professionals. The next significant group is
25–30 years (20%), followed by 36 and above (18%), and 31–35 years (14%). This suggests
the study captures a broad range of age perspectives with a focus on young investors.

42
 4.2 Table Showing Response Based on “Gender”

S.No Gender Frequency Percentage (%)

1 Male 27 54%

2 Female 23 46%

Total 50 100.00%

Interpretation:
The respondent pool consists of 54% males and 46% females, indicating a nearly balanced
gender representation. This balance allows for more inclusive insights when analyzing
perceptions and understanding of financial planning with mutual funds across different gender
perspectives.

43
 4.3 Table Showing Response Based on “Occupation”

S.No Occupation Frequency Percentage (%)

1 Business Owner 3 6.00%

2 Salaried Employee 27 54.00%

3 Student 17 34.00%

4 Retired 6 12.00%

Total 50 100.00%

Interpretation:
The majority of the respondents (54.00%) are Salaried Employees, followed by Students
(34.00%). A smaller percentage comprises Retired individuals (12.00%) and Business
Owners (6.00%). This indicates that the working-class and student community form the major
part of the sample population surveyed.

44
 4.4 Table Showing Response Based on “Investment Awareness”

S.No Awareness Level Frequency Percentage (%)

1 Very Aware 15 30.00%

2 Somewhat Aware 25 50.00%

3 Not Very Aware 8 16.00%

4 Not Aware At All 2 4.00%

Total 50 100.00%

Interpretation:
Half of the respondents (50%) are somewhat aware of mutual fund investments, while 30%
report being very aware. This suggests a moderate-to-high level of familiarity among
participants. However, 20% still lack strong awareness, indicating a need for more
educational outreach and investor literacy programs in the mutual fund space.

45
 4.5 Table showing Response based on “How did you come to know about
Mutual Funds?”

S.No Source Frequency Percentage (%)

1 Financial Advisors 8 16.00%

2 Friends & Family 18 36.00%

3 Online Resources 15 30.00%

4 Social Media/Advertisements 9 18.00%

Total 50 100.00%

Interpretation:
Based on the data, the most common source through which people learned about mutual funds
was "Friends & Family" (36.00%). The next most popular sources were "Online Resources"
(30.00%) and "Financial Advisors" (16.00%). Social Media and Advertisements made up the
smallest portion of the responses, contributing 18.00% of the total responses.

46
4.6 Table showing Response based on Type of Mutual Fund people prefer

S.No Type of Mutual Fund Frequency Percentage (%)

1 Debt Funds 14 28.00%

2 Equity Funds 17 34.00%

3 Hybrid Funds 15 30.00%

4 Others 4 8.00%

Total 50 100.00%

Interpretation:

From the data collected, the highest preference is for Equity Funds (34.00%), followed
closely by Hybrid Funds (30.00%).Debt Funds were preferred by 28.00% of respondents,
while a smaller group (8.00%) chose Other types of funds.

47
 4.7 Table showing Response based on primary objective for investing in
mutual funds

S.No Primary Objective Frequency Percentage (%)

1 Retirement Planning 14 28.00%

2 Short-Term Gains 7 14.00%

3 Wealth Creation 23 46.00%

4 Tax Savings 6 12.00%

5 Others 2 4.00%

Total 50 100.00%

Interpretation:

The majority of investors (46.00%) have chosen Wealth Creation as their primary objective
for investing in mutual funds. This is followed by Retirement Planning (28.00%).Short-Term
Gains (14.00%) and Tax Savings (12.00%) are other notable objectives, while only a small
percentage (4.00%) invested for Other reasons.

48
4.8 Table showing Response based on Influencing factor for investment

Percentage
S.No Influencing Factors Frequency
(%)

Returns & Growth

1 18 36.0%
Potential

2 Fund Manager's Reputation 14 28.0%

3 Past Performance 10 20.0%

4 Risk Factor 8 16.0%

Total 50 100.0%

Interpretation:

The majority of respondents (40%) invest in mutual funds primarily for wealth creation,
showing a strong preference for long-term financial growth.Retirement planning is the second
most popular objective (28%), indicating a focus on securing future financial stability. Short-
term gains (14%) and tax savings (10%) are also motivating factors for a smaller group. A
minor portion (8%) cited other reasons, reflecting diverse investment goals among
participants.
49
 4.9 Table Showing Response Based on “Preferred Mode of Investment in
Mutual Funds”

S.No Mode of Investment Frequency Percentage (%)

1 Systematic Investment Plan (SIP) 25 50.00%

2 Both 17 34.00%

3 Lump Sum 2 4.00%

Total 50 100.00%

Interpretation:

The highest number of respondents (50%) prefer the Systematic Investment Plan (SIP) mode,
indicating a strong inclination toward disciplined and regular investing habits. A significant
portion (34%) of investors prefer both SIP and Lump Sum, reflecting a desire for flexibility
and a balanced approach. Only a small percentage (4%) rely solely on Lump Sum investments,
suggesting that few are comfortable investing large amounts at once. Overall, the data shows
a clear preference toward regular investment strategies among mutual fund investors.

50
 4.10 Table Showing Response Based on “Risk Appetite When Investing in
Mutual Funds”

S.No Risk Appetite Frequency Percentage (%)

1 High (Willing to take high risks) 18 36.00%

2 Low (Prefer stable returns with minimal risk) 32 64.00%

Total 50 100.00%

Interpretation:

A majority of respondents (64%) prefer stable returns with minimal risk, suggesting a
conservative investment approach.Meanwhile, 36% of respondents are willing to take high
risks for potentially higher returns, indicating a considerable minority favor aggressive growth
strategies.Overall, the data highlights a cautious attitude toward mutual fund investments
among the majority of investors.

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 4.11 Table Showing Response Based on “Assessment of Risk When
Investing in Mutual Funds”

S.No Risk Assessment Method Frequency Percentage (%)

1 Analyze Market Trends 24 48.00%

2 Consult Financial Experts 18 36.00%

3 Check Fund Ratings & Reviews 6 12.00%

4 Do Not Assess Risk 3 6.00%

Total 50 100.00%

Interpretation:

Almost half of the respondents (48.00%) prefer to Analyze Market Trends to assess risk
before investing in mutual funds.Consulting Financial Experts is the second most popular
method at 36.00%. A smaller portion checks Fund Ratings & Reviews (12.00%), while a very
small group (6.00%) does not assess risk at all before investing.

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 4.12 Table Showing Response Based on “Belief That Mutual Funds Help
in Effective Financial Planning”

S.No Response Frequency Percentage (%)

1 Strongly Agree 5 10.00%

2 Agree 33 66.00%

3 Neutral 11 22.00%

4 Disagree 1 2.00%

Total 50 100.00%

Interpretation:

A significant majority (66%) of respondents agree that mutual funds help in effective
financial planning, showing strong confidence in their role in wealth management. An
additional 10% strongly agree, reinforcing this positive perception.Meanwhile, 22% remain
neutral, indicating a need for greater awareness or clarity about the benefits. Only 2% of
respondents disagreed, suggesting minimal skepticism about mutual funds’ contribution to
financial planning.
53
 4.13 Table Showing Response Based on “Percentage of Total Savings
Allocated to Mutual Funds”

S.No Allocation Range Frequency Percentage (%)

1 Less than 10% 14 28.00%

2 10–30% 26 52.00%

3 30–50% 8 16.00%

4 More than 50% 2 4.00%

Total 50 100.00%

Interpretation:

The majority of respondents (52%) allocate 10–30% of their total savings to mutual funds,
indicating a moderate investment approach. About 28% allocate less than 10%, reflecting a
more conservative stance toward mutual fund investments. A smaller segment (16%) invests
30–50% of their savings, while only 4% allocate more than half of their savings, suggesting
that few take an aggressive position toward mutual fund investment.

54
4.14 Table Showing Response Based on “Challenges Faced While Investing
in Mutual Funds”

S.No Challenge Frequency Percentage (%)

1 Market Volatility 26 52.00%

2 Lack of Knowledge 13 26.00%

3 Difficult Investment Process 8 16.00%

4 High Charges 3 6.00%

Total 50 100.00%

Interpretation:

More than half of the respondents (52%) cited market volatility as the major challenge when
investing in mutual funds, indicating concerns over fluctuating returns.
Lack of knowledge is the second most common challenge (26%), suggesting a need for more
investor education. A smaller proportion (16%) find the investment process itself difficult,
while only 6% are concerned about high charges.
Overall, the findings highlight that market-related risks and awareness issues are the primary
barriers to mutual fund investing.

55
4.15 Table Showing Response Based on “Methods to Ensure Tax-Efficiency
in Mutual Fund Investments”

S.No Method Used Frequency Percentage (%)

1 Consulting with a tax advisor 23 46.00%

2 Using capital gains harvesting strategies 11 22.00%

3 Investing in tax-saving ELSS funds 12 24.00%

4 I do not actively plan for tax efficiency 4 8.00%

Total 50 100.00%

Interpretation:

Nearly half of the respondents (46%) consult with a tax advisor to ensure their mutual fund
investments are tax-efficient, indicating a strong reliance on expert advice. 24% prefer
investing in tax-saving ELSS funds, taking advantage of the Section 80C tax deductions. 22%
adopt capital gains harvesting strategies to minimize tax liabilities systematically.A small
portion (8%) do not actively plan for tax efficiency, suggesting that tax planning is not a
priority for every investor.
56
 4.16 Table Showing Response Based on “Reaction to Market Fluctuations
Affecting Mutual Fund Investments”

S.No Reaction Frequency Percentage (%)

1 Stay invested and wait for long-term growth 27 54.00%

2 Partially withdraw funds to minimize loss 17 34.00%

3 Invest more during market down 3 6.00%

4 Exit completely to avoid risk 2 4.00%

Total 50 100.00%

Interpretation:

A majority of respondents (54%) prefer to stay invested and wait for long-term growth,
reflecting a patient and growth-oriented investment mindset.Around 34% react by partially
withdrawing funds, showing a cautious approach toward preserving capital during market
downturns.A small portion (6%) see market declines as an opportunity to invest more,
indicating a more aggressive investment strategy.Only 4% choose to exit completely,
highlighting that very few investors completely abandon their mutual fund investments during
market volatility.
57
 4.17 Table Showing Response Based on “Frequency of Reviewing Mutual
Fund Investments”

S.No Review Frequency Frequency Percentage (%)

1 Monthly 18 36.00%

2 Quarterly 23 46.00%

3 Annually 3 6.00%

4 Only during major financial changes 6 12.00%

Total 50 100.00%

Interpretation:

The highest proportion of respondents (46%) review their mutual fund investments quarterly,
reflecting a balanced and timely approach to portfolio management.36% review their
investments monthly, indicating a more active and closely monitored financial planning style.
Only 6% review annually, and 12% review their investments only during major financial
changes, suggesting that a small portion of investors are either passive or event-driven in their
review habits.
58
4.18 Table Showing Response Based on “Tools Used to Track and Manage
Mutual Fund Investments”

S.No Tool Used Frequency Percentage (%)

1 Financial advisor’s reports 22 44.00%

2 Online portals and mobile apps 17 34.00%

3 Manual tracking through statements 9 18.00%

4 I do not actively track my investments 2 4.00%

Total 50 100.00%

Interpretation:

The majority of respondents (44%) rely on financial advisor’s reports to track and manage
their mutual fund investments, indicating trust in professional guidance.Online portals and
mobile apps are the second most popular choice (34%), reflecting a growing trend toward
digital self-management. 18% still prefer manual tracking through statements, showing a
preference for traditional methods.Only 4% do not actively track their investments,
suggesting that most investors are reasonably engaged with their portfolio performance.

59
 4.19 Table Showing Response Based on “Advice for Starting Financial Planning
Through Mutual Funds”

S.No Advice Given Frequency Percentage (%)

1 Start early with small, regular investments 21 42.00%

2 Seek expert advice before investing 16 32.00%

3 Diversify across fund categories 9 18.00%

4 Set clear financial goals and track progress 4 8.00%

Total 50 100.00%

Interpretation:

The majority (42%) advise starting early with small, regular investments, highlighting the
importance of building wealth gradually and benefiting from compounding. 32% recommend
seeking expert advice before investing, emphasizing the need for professional guidance to
make informed decisions. 18% stress diversification across fund categories to manage risks
effectively, and a smaller portion (8%) believe setting clear financial goals and tracking
progress is critical for successful financial planning.

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 CHAPTER 5

5.1 FINDINGS

 UTI Mutual Funds use diversification and professional fund management to optimize
returns and minimize risk.
 Mutual funds play a vital role in achieving financial goals like retirement planning,
wealth creation, and tax savings.
 SIPs (Systematic Investment Plans) are the preferred investment method for most
investors.
 Majority of investors have a low-risk appetite, preferring stable returns over high-risk,
high-reward investments.
 Wealth creation is the primary reason for investing in mutual funds, followed by
retirement planning.
 Most investors allocate between 10% to 30% of their total savings into mutual funds.
 Friends, family, and online resources are major sources of information about mutual
funds.
 Market volatility is the biggest challenge faced by mutual fund investors.
 Consulting tax advisors is the most common method used for ensuring tax efficiency
in investments.
 Investors prefer to stay invested during market fluctuations, showing a long-term
investment mindset.
 Financial advisor reports and online apps are the top tools used to track and manage
investments.
 Investor awareness is moderate; however, there is still a notable gap in deep financial
literacy.
 Returns, fund manager reputation, and past performance are key factors influencing
investment decisions.
 Early and disciplined investing, along with diversification, is highly recommended by
experienced investors.

61
 5.2 SUGGESTIONS

 Enhance Investor Education through workshops and digital content to improve

financial literacy and confidence.
 Promote SIPs more aggressively among young and first-time investors to encourage
disciplined investing habits.
 Simplify Investment Processes to make it easier for new investors to understand and
start investing.
 Increase Awareness of Risk Management strategies like diversification to reduce fear
of market volatility.
 Strengthen Digital Platforms (apps, portals) for better tracking, easier transactions, and
investor engagement.
 Expand Tax Planning Campaigns highlighting ELSS funds and capital gains strategies
to maximize tax benefits.
 Tailor Products for Different Age Groups based on risk appetite and financial goals
(e.g., aggressive funds for youth, stable funds for retirees).
 Offer Personalized Advisory Services to bridge the gap between professional advice
and investor needs.
 Highlight Fund Manager Performance and transparency in communication to build
investor trust.
 Launch Investor Loyalty Programs rewarding long-term and SIP investors to
encourage retention.
 Focus on Emotional Investing Behavior by offering content on staying calm during
market fluctuations.
 Develop More Hybrid and Multi-Asset Funds for moderate-risk investors seeking
balanced growth.
 Organize Regular Portfolio Review Campaigns reminding investors to assess their
funds quarterly.
 Reduce Overall Fund Expenses where possible to enhance net returns for investors.
 Leverage Social Media and Influencers to spread simple, positive messaging about
mutual fund benefits.
62
 5.3 CONCLUSION

The study on financial planning with mutual funds reveals that mutual funds have become an
increasingly recognized and preferred investment option among individuals seeking
structured financial growth. The research indicates that while awareness of mutual funds is
relatively high—primarily due to digital media, advertisements, and peer influence—actual
participation in mutual fund investments remains moderate. This highlights a gap between
awareness and actionable financial behavior, often caused by a lack of deep financial
understanding and trust in the markets.

A significant number of respondents showed a preference for Systematic Investment Plans

(SIPs), driven by their affordability, ease of investment, and long-term benefits. Equity
mutual funds emerged as a popular choice among younger investors with higher income
levels and a greater appetite for risk, while older or more conservative individuals leaned
towards debt funds. Risk tolerance and investment choices were also influenced by income
levels and educational backgrounds, emphasizing that demographic factors play a key role in
financial decision-making.

The research further establishes that the primary objectives of investing in mutual funds
include wealth creation, tax savings, children’s education, and retirement planning. Most
investors are inclined toward medium- to long-term investment horizons, which reflects a
maturing perspective on financial planning. However, many investors still face confusion
around fund selection, risk assessment, and market volatility, pointing to the need for
enhanced financial literacy and advisory support.

In conclusion, mutual funds are playing a critical role in modern financial planning. They
offer a balanced combination of return potential, diversification, and flexibility, suitable for
various income groups and financial goals. To fully realize their potential, it is essential to
strengthen investor education, improve accessibility to credible information, and promote
guided financial planning services that help individuals make confident and informed
investment decisions.

63
 REFERENCE

 https://www.utimf.com/
 https://groww.in/mutual-funds/amc/uti-mutual-funds
 https://tracxn.com/d/companies/uti-mutual-
fund/__3Rn4aDlOTA5_ajd2LHV2LwQPfd25WoC7EdPO7FWwvEI
 https://www.ashoka.edu.in/profile/uti-amc/
 https://www.dreamstime.com/photos-images/asset-management.html
 https://en.wikipedia.org/wiki/UTI_Asset_Management
 https://guidedchoice.com/modern-portfolio-
theory/#:~:text=In%201952%2C%20an%20economist%20named,E
conomics%20nearly%20four%20decades%20later.


64
 QUESTIONNARIE

1. Name

2. Age Group

a) 18-24

b) 25-30

c) 31-35

d) 36 and above

3. Gender

a) Male

b) Female

c) Prefer not to say

4. Occupation

a) Student

b) Salaried Employee

c) Business Owner

d) Retired

5. Are you aware of Mutual Funds?

a) Yes

b) No

6. How did you come to know about Mutual Funds?

a) Financial Advisors

b) Social Media/Advertisements

c) Friends & Family

d) Online Resources

65
7. Which type of Mutual Fund do you prefer?

a) Equity Funds

b) Debt Funds

c) Hybrid Funds

d) Others

8. What is your primary objective for investing in mutual funds?

a) Wealth Creation

b) Tax Savings

c) Retirement Planning

d) Short-Term Gains

e) Others

9. What factors influence your investment decision in Mutual Funds?

a) Past Performance

b) Risk Factor

c) Fund Manager's Reputation

d) Returns & Growth Potential

10.What is your preferred mode of investment in mutual funds?

a) Systematic Investment Plan (SIP)

b) Lump Sum

c) Both

11.What is your risk appetite when investing in Mutual Funds?

a) Low (Prefer stable returns with minimal risk)

b) High (Willing to take high risks for higher returns)

66
12.How do you assess the risk before investing in a mutual fund?

a) Consult Financial Experts

b) Check Fund Ratings & Reviews

c) Analyze Market Trends

d) Do Not Assess Risk

13. Do you believe mutual funds help in effective financial planning?

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

14. What percentage of your total savings is allocated to mutual funds?

a) Less than 10%

b) 10-30%

c) 30-50%

d) More than 50%

15. What challenges do you face while investing in Mutual Funds?

a) Lack of Knowledge

b) Market Volatility

c) High Charges

d) Difficult Investment Process

16. How do you ensure your mutual fund investments are tax-efficient?

a) Investing in tax-saving ELSS funds

b) Using capital gains harvesting strategies

67
 c) Consulting with a tax advisor

d) I do not actively plan for tax efficiency

17. How do you react to market fluctuations affecting your mutual fund investments?

a) Stay invested and wait for long-term growth

b) Partially withdraw funds to minimize loss

c) Exit completely to avoid risk

d) Invest more during market down

18. How often do you review your mutual fund investments as part of your financial plan?

a) Monthly

b) Quarterly

c) Annually

d) Only during major financial changes

19. What tools do you use to track and manage your mutual fund investments?

a) Online portals and mobile apps

b) Financial advisor’s reports

c) Manual tracking through statements

d) I do not actively track my investments

20. What advice would you give someone starting financial planning through mutual funds?

a) Start early with small, regular investments

b) Diversify across fund categories

c) Set clear financial goals and track progress

d) Seek expert advice before investing

68