INVESTORS AWARENESS ABOUT INDIAN

MUTUAL FUNDS

SUMMER INTERNSHIP PROJECT REPORT

Submitted by
Sadakat Hussain
(2111310700062)

Under the guidance of

Mr. Prakhar Mishra

Submitted in the partial fulfilment of the requirements for the

award of the Degree of

Master of Business Administration

Of Dr. A.P.J. Kalam Technical University

Allenhouse Institute of Management

(October,2022)
 DECLARATION

I undersigned, hereby declare that the summer internship project titled “Investors awareness
about mutual funds in India” submitted in partial fulfilment for the award of Degree of
Master of Business Administration of Dr. A P J Abdul Kalam Technological University is a
bonafide record of work done by me under the guidance of Mr. Prakhar Mishra, Allenhouse
Institute of Management. This report has not previously formed the basis for the award of any
degree, diploma, or similar title of any University.

DATE: SADAKAT HUSSAIN

 ACKNOWLEDGEMENT

First and foremost, I would like to thank Allenhouse Institute Of Management, for providing
me with a wonderful opportunity to work with Prudent corporate advisory services limited,
Kanpur.
I would also like to show my genuine appreciation for the support given by Mr. Vijay Kumar
(Cluster Manager) and Mr. Surendra Kumar (Area manager) that provided me with all the
information and guidance that I needed from time to time in the course of my training.
I would especially thank Mr. Satyendra Kumar for being my project guide.
The success of any task lies in the effective input, but this cannot be obtained without proper
guidance of the concern authorities and their co-operation. I would like to thank everyone for
guiding me throughout the internship and project.
I wish to acknowledge those many people whose feedback has enable me to satisfactorily
complete my summer training.

SADAKAT HUSSAIN
 ˮ
_______
_________________________
Mutual Fund Investments Are Subject to
Market Risks, Read All Scheme Related
Documents Carefully.
_________________________
________

ˮ
 EXECUTIVE SUMMARY

Mutual fund is an important and good source of investment options for investors. This source
helps the investors in earning better returns compared to other source of investment.
In India most of the people does not have the adequate knowledge on the subject of mutual
fund. They feel that investment in mutual is unsafe and it’s like gambling.
The lack of awareness and misunderstanding about mutual fund leads to low investment in
this industry. There is a need to raise public awareness by enlightening people about the
advantages of investing in mutual funds.
This report Contains information on the performance of chosen companies from various
mutual fund schemes. The study’s major goal is to figure out why SBI mutual fund schemes
outperform when compared to other company mutual fund schemes and to scrutinize the risk
and return of various funds. In the upcoming year mutual fund industry has bright future. As
in India companies are focusing young people and adopting modern technology aspect in this
industry. It makes buying and selling aspect easy and convenient for the investors. This project
gave a knowledge exposure and I was able to understand the performance of fund and customer
behavior towards mutual fund.
In this project report the first part includes industry and company related information, vision,
mission, SWOT Analysis and financial reports of the company. Second section consists of
background of the study and literature review of the learning. Third parts consist of research
design and Forth part consists with data interpretation and analysis. Last part deals with
Findings, Suggestions and Conclusion.
 TABLE OF CONTENT

S.NO. PARTICULARS PAGE NO.

1. INTRODUCTION 01 - 05

Background of the study

Objectives of the study
Need and significance of the study
Statement of the problem
Scope of the study
Limitations

2. INDUSTRY PROFILE 06 - 22

Mutual fund
Regulatory body of mutual fund
History of mutual fund in India
Types of mutual fund
Various Plans
Advantage & Disadvantage of mutual fund

3. COMPANY PROFILE 23 - 35

Introduction
History
Vision & Mission
SWOT Analysis
Subsidiaries

4. RESEARCH METHODOLOGY 36 - 39

Objective
Hypothesis
Research Design
Sources of data
Sample Design
Method of data collection

5. DATA ANALYSIS & INTERPRETATION 40 - 48

6. CONCLUSIONS AND FINDINGS 49 - 50

7. BIBLIOGRAPHY 51
 INTRODUCTION

“The principal role of the mutual fund is to serve its investors.”

Mutual funds have become a very popular way to take some of the risk out of investing in individual
stocks by investors. Mutual funds are a collection of stocks selected by mutual fund seller and sold to
investors as shares in a fund. There are several types of funds that you can invest in. Some of the more
popular types are technology funds, growth funds, security funds, and income funds. Mutual funds are
very popular because they allow you to invest in a number of stocks therefore greatly reducing the
risks associated with putting your money in an individual stock.

Mutual funds have become one of the most attractive ways for the average person to invest their
money. A mutual fund pools resources from thousands of investors and then diversifies its investment
into many different holdings such as stocks, bonds, or government securities in order to provide high
relative safety and returns.

Mutual Funds now represents perhaps the most appropriate opportunity for most investors. It is no
wonder that birthplace of mutual funds - the U.S.A.- the fund industry has already overtaken the
banking industry. The Indian industry has already started opening up many of the exciting investment
opportunities to Indian investors.

Though not insured like banks, mutual funds generally provide more return than the current one to
two percent obtainable through banks while still being one of the safest ways to grow your money.
There are an endless variety of mutual fund investment choices depending on the degree of risk you
feel comfortable with.

Mutual Funds have emerged as professional intermediaries. Besides providing the expertise in stock
market investing, these funds allow investing in small amounts and yet holding a diversified portfolio
to a limit.
 ❖ BACKGROUND OF THE STUDY

The success of a mutual fund depends upon the awareness and confidence level of the investors.
The investment pattern varies with age, education, gender, occupation. This study is conducted
with the objective of assessing the awareness level of the investors towards mutual fund. A
mutual fund is an investment vehicle that is made up of a pool of funds collected from many
investors for the purpose of investing in securities such as stocks, bonds, money market
instruments and similar assets. This study has been adopted with the aim
to study the awareness level of mutual funds have among the investing population in India and
to suggest better remedies before investing in mutual fund.
The study was conducted in Kanpur location with a sample size of 30 respondents. The purpose
of the study to know the level of awareness about mutual fund among the investors and also
know the perception of investors towards make investment plans in mutual fund. It was also
observed significant difference in the awareness level the investors belonging to different
education background and gender.

❖ Need and Significance of the study

This report play a vital role to know about investors awareness and perception about mutual
funds which helps the Assets management companies (AMC) to plan their future advertisement
and schemes of mutual funds as per the investors choice.

In the present scenario MF investments are the excellent resource of investments and it is
further helpful for the salary class people for getting tax benefit. Mutual fund industries are
gaining weight for the reason that the salaried group people and the middle income people
prefer their investment preferable avenue for their investment destination. There are different
traditional investment options are available i.e. gold investment, government bonds, real
estates, post office savings schemes, insurances and fixed deposits etc. Most of the investors
are gaining awareness about the mutual funds irrespective of their age, gender and their income
etc. In reality, most of the people investing in mutual funds are not clear regarding its
functioning and management. Subsequently the business organizations which are offering
mutual funds have to present absolute information to the potential investors relating to mutual
funds.

❖ Statement of the Problem

India is one of the materializing global markets and is well known as an investment destination
in the world. Liberalization, as well as globalization, has made familiar investments like shares,
mutual funds, and debentures, etc. From those options, the investors are always baffled on what
to choose from the applicable choices and also the awareness of these investments is
constrained to the investors. In numerous leading financial markets mutual funds play a sizable
role, but in India, it is comparatively a new member. Even though the mutual fund industry is
growing swiftly, it is comparatively very little even though awareness programs are conducted
plus investor-friendly policies are made for the investors. It is seen that investors favor to invest
in short term equities and are minimum excited in long term investments like mutual funds, the
insufficiency of awareness about mutual funds can also be a cause. Another circumstance is
the poor financial literacy of investors they believe that short term equities are suitable for
investing. Along with this, financial capability is also a factor, the people who have high
financial capability are well informed of mutual funds. The investors have chaos on which
investment option they should prefer to get high returns, with maximum risk. The investors
lack awareness of investment alternatives, additional factors that confuse investors are safety,
liquidity, returns, risks, tax benefits, etc. The investor should remain extremely cautious when
they are taking the investment option. The awareness of the mutual fund as an option is
extremely significant also the investors should use their skill, knowledge, and experience in
deciding the investment option. In this situation, the study can become highly relevant to
connect the research gaps in the mutual funds’ investment industry.
 ❖ Objectives of the Study
• To study the level of awareness of mutual funds.
• To analyse the perception of investors towards mutual funds.
• To study the factors considered by the investors and those which ultimately
influence him while investing.
• To determine the type of mutual fund investor prefer the most.

❖ Scope of the study

This Report is focused on the study of awareness about mutual fund, factors considered by
investors for selecting mutual funds for their various investment.

The scope of the study is to track out the investors’ preferences, priorities and their awareness
towards different mutual fund schemes. Keeping in view the various constraints the scope of
the study is limited only to the investors residing in Kanpur. Data for the study is collected
from a sample of 50 investors by using stratified sampling. Out of all the questionnaires 30
questionnaires are considered valid for the purpose of the study.
 ❖ Limitations of the Study
Besides following scientific methodologies the study has come across some limitations.
These are:

1. The sample size is small as compared to the population, so it may not he the true
representative.

2. Due to limited time countrywide survey was not possible. Hence only Kanpur city has
been taken for the study.

3. Some people were reluctant to fill the questionnaire. They were not willing to disclose
their investment plans.

4. The possibility of respondents being biased cannot be ruled out.

5. Lack of experience.
6. Time constraints.

7. Insufficient sample size for statistical measurements.

8. Method used to collect the data.

9. Issues with research sample and selection.

10. Limited access to data.

 INDUSTRY PROFILE

A strong financial market with broad participation is essential for a developed economy. With
this broad objective India’s first mutual fund was establishment in 1963, namely, Unit Trust
of India (UTI), at the initiative of the Government of India and Reserve Bank of India ‘with a
view to encouraging saving and investment and participation in the income, profits and gains
accruing to the Corporation from the acquisition, holding, management and disposal of
securities.
In the last few years the MF Industry has grown significantly.
Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the month
of June 2022 stood at ₹ 36,98,327 crore. Assets Under Management (AUM) of Indian Mutual
Fund Industry as on June 30, 2022 stood at ₹ 35,64,090 crore.
The AUM of the Indian MF Industry has grown from ₹ 6.89 trillion as on June 30, 2012 to
₹35.64 trillion as on June 30, 2022 more than 5-fold increase in a span of 10 years. The MF
Industry’s AUM has grown from ₹ 18.96 trillion as on June 30, 2017 to ₹35.64 trillion as on
June 30, 2022, around 2-fold increase in a span of 5 years.
The Industry’s AUM had crossed the milestone of ₹10 Trillion (₹10 Lakh Crore) for the first
time in May 2014 and in a short span of about three years, the AUM size had increased more
than two folds and crossed ₹ 20 trillion (₹20 Lakh Crore) for the first time in August 2017.
The AUM size crossed ₹ 30 trillion (₹30 Lakh Crore) for the first time in November 2020.
The Industry AUM stood at ₹35.64 Trillion (₹ 35.64 Lakh Crore) as on June 30, 2022.
The mutual fund industry has crossed a milestone of 10 crore folios during the month of May
2021. The total number of accounts (or folios as per mutual fund parlance) as on June 30,
2022 stood at 13.47 crore (134.7 million), while the number of folios under Equity, Hybrid
and Solution Oriented Schemes, wherein the maximum investment is from retail segment
stood at about 10.72 crore (107.2 million)

Mutual fund is one of the best options for the investor available into market. A mutual
fund is the trust that pools the savings of a number of investors who share a common
financial goal. Anybody with an investible surplus of as little as a few hundred rupees
can invest in Mutual Funds. The money thus collected is then invested by the fund
manager in different types of securities. These could range from shares to debenture,
from Government Bond to money market instruments, depending upon the scheme's
stated objective. It gives the market returns and not assured returns. In the long-
term market returns have the potential to perform better than other assured return
products. Investment in Mutual Fund is the most cost efficient as it offers the lowest
charge to the investor.

The mutual fund is made up of money pooled together by a large number of

investors who give their money to fund manager to invest in a large portfolio of stocks
and/or bond. There are various funds available in the market for investments
offering different risk and return profile.
The investor has to decide as to which fund, he should select for investment that will
minimize his risk and maximize returns to the largest extent. The project compares
and analyses the performance of top- r a t e d fund, which will look at the reason of
why the top- r a t e d fund is performing better than the other fund and who are the
investors with risk associated funds. The project will help the layman to evaluate the
performance of the fund and to select the best fund for investment. The investment
proceeds are then passed along to individual investor. t h e value of a share of a
mutual fund, known as the net asset value per share (NAV), is calculated daily
based on the total value of the fund dividend by the nun1ber of the shares currently
issued and outstanding. A mutual fund is a trust that pools the saving of the number
a investor who share a common financial goal. The money thus collected is them
invested in capital market instrument such as share, debenture and other securities.
We can make trust on the mutual fund but it cannot predictable term which are
only depend upon the market fluctuation. The mutual fund industry in India Started
in 1963 with the forn1ation of Unit Trust of India, at the initiative of the Government
of India and Reserve Bank. The history of mutual funds in India can be broadly
divided into four distinct phases.
First part is started 1963 onward. It was set of Reserve bank of India and functioned
under the Regulatory and administrative control of the Reserve Bank of India. After
that introduce second phase is started in 1987 in that first time introduce non-UTI
public sector mutual fund set up by public sector bank and life insurance.
SBI was first non-UTI public sector bank. With the entry of privet sector in 1993
the new era started in the Indian mutual fund industry.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996. The fourth phase is continued since 2003 February this was
end of UTI.
 HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

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 Reserve Bank and started its operations in 1964
with the issue of units under the scheme US-64. The history of mutual funds in India can be
broadly divided into four distinct phases:

- First Phase- 1964-87

Unit Trust of India (UTI) was established on 1963 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 the Industrial
Development Bank of India (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.6,700 crores of assets under management.

Second Phase- 1987-1993

(Entry of Public Sector Funds) 1987 marked 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 Canbank Mutual Fund (Dec 87), Punjab National Bank
Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of
Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set
up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets
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, a new 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 LTI were to be registered and governed. The erstwhile Kothari
Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund
registered in July 1993

FOURTH PHASE - SINCE FEBRUARY 2003 – APRIL 2014

In February 2003, following the repeal of the Unit Trust of India Act 1963, UTI was bifurcated
into two separate entities, viz., the Specified Undertaking of the Unit Trust of India (SUUTI)
and UTI Mutual Fund which functions under the SEBI MF Regulations. With the bifurcation
of the erstwhile UTI and several mergers taking place among different private sector funds, the
MF industry entered its fourth phase of consolidation.

Following the global melt-down in the year 2009, securities markets all over the world had
tanked and so was the case in India. Most investors who had entered the capital market during
the peak, had lost money and their faith in MF products was shaken greatly. The abolition of
Entry Load by SEBI, coupled with the after-effects of the global financial crisis, deepened the
adverse impact on the Indian MF Industry, which struggled to recover and remodel itself for
over two years, in an attempt to maintain its economic viability which is evident from the
sluggish growth in MF Industry AUM between 2010 to 2013.

The graph indicates the growth of assets over the years:

Existing Growth of Mutual Funds (Since May 2014)

Recognising the lack of penetration of mutual funds in India, especially in Tier II and Tier III
cities, SEBI introduced several progressive measures in September 2012. The purpose behind
these measures was to bring more transparency and security for the interest of various
stakeholders. Also, SEBI’s idea was to ‘re-energise’ the Indian mutual fund industry and
boost the overall penetration of mutual funds
During the course, measures were taken to counter the negative trend because of the global
financial crisis. However, the situation improved significantly after the new government was
formed at the Centre.

What is Mutual funds?

A Mutual Fund is a vehicle for investing in stocks and bonds. It is not an alternative investment
option to stocks and bonds; rather it pools the money of several investors and invests this in
stocks, bonds, money market instruments and other types of securities. Buying a mutual fund
is like buying a small slice of a big pizza. The owner of a mutual fund unit gets a proportional
share of the fund's gains, losses, income and expenses. A Mutual Fund is a body corporate
registered with the Securities and Exchange Board of India (SEBI), that pools up the money
from individual/ corporate investors and invests the same on behalf of the investors /unit
holders, in equity shares, Government securities, Bonds, Call money markets etc., and
distributes the profits. In other words, a mutual fund allows an investor to indirectly take a
position in a basket of assets. A mutual fund pools together sums from individual investors and
invests it in various financial instruments. Each mutual fund has its own investment objective.
Mutual funds have become one of the most attractive ways for the average person to invest
their money. A mutual fund pools resources from thousand of investors and then diversifies its
investment into many different holdings such as stock, bonds, and securities in order to provide
highly relative safety and returns. Each Mutual Fund with different type of schemes is managed
by respective Asset Management Company (AMC). An investor can invest his money in one
or more schemes of Mutual Fund according to his choice and becomes the unit holder of the
scheme. The invested money in a particular scheme of a Mutual Fund is then invested by fund
manager in different types of suitable stock and securities, bonds and money market
instruments. Each Mutual Fund is managed by qualified professional man, who use this money
to create a portfolio which includes stock and shares, bonds, gilt, money-market instruments
or combination of all.

REGULATORY BODY FOR MUTUAL FUNDS

Securities Exchange Board of India (SEBI) is the regulatory body for all the mutual funds mentioned
above. All the mutual funds must get registered with SEBI. The only exception is the UTI, since it is a
corporation formed under a separate Act of Parliament.

Broad Guidelines Issued by SEBI for a MF: -

SEBI is the regulatory authority of Mutual Funds. SEBI has the following broad guidelines pertaining
to mutual funds:

• Mutual Funds should be formed as a Trust under Indian Trust Act and should be operated by Asset
Management Companies (AMCs).

• Mutual Funds need to set up a Board of Trustees and Trustee Companies. They should also have their
Board of Directors.

• The net worth of the AMCs should be at least Rs.5 crore.

• AMCs and Trustees of a Mutual Fund should be two separate and distinct legal entities

• The AMC or any of its companies cannot act as managers for any other fund

• AMCs have to get the approval of SEBI for its Articles and Memorandum of Association

• All Mutual Funds schemes should be registered with SEBI.

• Mutual Funds should distribute minimum of 90% of their profits among the investors There are other
guidelines also that govern investment strategy, disclosure norms and advertising code for mutual funds.
 ➢ Types Of Mutual Funds

Different Types of Mutual Funds Guided by Securities and Exchange Board of India (SEBI)
norms, there are five main broad categories and 36 sub-categories in Mutual Funds.

1) Open-ended Mutual Funds

The majority of mutual funds in India are open-ended in nature. These funds are open for
subscription (or in simple terms purchase) by investors at any time. They issue new units to
investors who want to get into the fund. After the initial offering period (NFO), the units of
these funds can be purchased.
2) Closed-ended Mutual Funds

These are funds that are closed for further subscription (or purchase) by investors after the
initial offering period (NFO). Unlike, Open-ended funds, investors cannot buy fresh units of
these types of mutual funds after the NFO period.
 3) Equity Mutual Funds

Equity Funds make money for investors by investing in the equity stock market. This option is
suitable for investors looking for long-term returns. Some of the types of equity mutual funds
are-
✓ Large cap funds
✓ Mid cap funds
✓ Small cap funds
✓ Sector/thematic funds
✓ ELSS
✓ Dividend yield funds
✓ Focused fund.

4) Debt Mutual Funds

Debt fund invest in fixed income instruments, also known as Bonds & gilts. Bonds funds are
classified by their maturity period (hence the name, long term or short term). As per tenure, the
risk also varies. The broad categories of debt mutual funds, such as:
✓ Overnight funds
✓ liquid funds
✓ ultra short term funds
✓ money market funds
✓ Dynamic bonds
✓ Corporate bonds
✓ Gilt funds
✓ Credit risk funds
✓ Floater fund.

5) Hybrid Mutual Funds

Hybrid funds are a type of mutual fund that invests both in equity and debt. They can be
Balanced Fund or Monthly Income Plan (MIPs). The portion of investment is higher in equities.
Some of the types of hybrid funds are:
✓ Arbitrage funds
✓ Dynamic asset allocation
 ✓ Conservative
✓ Hybrid funds
✓ Balanced hybrid funds

6) Solution Oriented Schemes

Solution oriented schemes are helpful for those investors who wish to create long-term wealth
that mainly includes Retirement planning and a child’s future education by investing in Mutual
Funds.
7) Gold Funds

The Gold mutual funds invest in gold ETFs (exchange-traded funds). Ideally suitable for
investor who wants to take exposure in gold. Unlike physical gold, they are easy to purchase
and redeem (buying and selling). Also, they offer transparency of price for investors for buying
and selling.

➢ Top Mutual Fund Scheme In 2022

In India, here is the list of top 10 schemes of mutual fund:

1) Axis bluechip fund
2) Mirae asset large cap fund
3) Parag parikh long term equity fund
4) UTI flexi cap fund
5) Axis midcap fund
6) Kotak emerging equity fund
7) Axis small cap fund
8) SBI small cap fund
9) SBI equity hybrid fund
10) Mirae asset hybrid equity fund
TYPES OF LOADS

The AMC that manages your mutual fund has to bear a number of expenses. So it recovers part
of these expenses from its investors, for whom it is doing the favour of managing funds. It is
broken into two parts: annual management fee (up to 1.25 per cent for funds less than Rs 1
billion and one per cent for funds above Rs. 1 billion) and entry & exit loads.

ENTRY LOAD:

Loads normally apply to only open-ended schemes. An entry load is also called the sales load.
which is mainly to help the AMC recover expenses relating to sales literature, distribution,
advertising and agent/broker commissions. The price at which an investor buys into the fund
is a function of both the NAV and sales load. An entry load is an additional cost that an investor
pays at the point of entry. Assume that your proposed investment is Rs. 10, OOO/-. Also
assume that the current NAV of the fund is Rs. 12.00 and that the entry load is Rs.0.50. Then
you will receive 10000/12.50 = 800 units. The entry load could be different for each scheme;
it would also depend on the amount of investment and the time period of investment.

EXIT LOAD:

On the other hand, exit load (if you withdraw within a specified period) is charged while
redeeming your units. The latter is for more logical reasons, especially with income or money
market funds, where a quick withdrawal by too many investors can put pressure on the fund's
asset maturity profile. So to ensure that longer-term investors are not penalized, short-term
investors are charged an exit load. An exit load is levy that an investor pays at the point of exit.
This is levied to dissuade investors from exiting the fund. Assume that the current NAV of the
fund is Rs. 12.00 and that the exit load is Rs.0.50. Now if you sell 800 units then you stand to
receive 800X11.5 = Rs. 9200. The exit load could be different for each scheme. It would also
depend on the amount of investment and the time period of investment.

VARIOUS PLANS OF MUTUAL FUNDS

That depends on the strategy of the concerned scheme. But generally there are 3 broad
categories that any Mutual Fund scheme offers:

• A Dividend Plan entails a regular payment of dividend to the investors.

 • A Reinvestment Plan is a plan where these dividends are reinvested in the scheme
itself.
• A Growth Plan is one where no dividends are declared and the investor only gains
through capital appreciation in the NAV of the fund.

The term 'growth' is often used in a very generic sense to denote every equity mutual fund.
Also 'growth' in fixed income funds, comes from reinvesting dividends. That's why in such
fixed income funds, investors have an option, and they can choose either growth through
reinvestment of dividends, or regular income by ticking on the income option.

HOW TO CHOOSE A PLAN

It depends on investment object of the investor, which again depends on his income, age, financial
responsibilities, risk taking capacity and tax status. For example a retired government employee is most
likely to opt for monthly income plan while a high-income youngster is most likely to opt for growth
plan.

SYSTEMATIC INVESTMENT PLAN

Besides these three plans there is one another plan whish is becoming popular that is
systematic investment plan. A systematic investment plan is one where an investor contributes
a fixed amount every month and at the prevailing NAV the units are credited to his account.
Today many funds are offering this facility
. A systematic investment plan (SIP) offers 2 major benefits to an investor:
• It avoids lump sum investment at one point of time
• In a scenario of falling prices, it reduces your overall cost of acquisition by a process
of rupee cost averaging. This means that at lower prices you end up getting more units
for the same investment.
FUND OBJECTIVES AND PROSPECTUS DESCRIPTION
A fund's objective, described in the prospectus, gives broad indications of the types of
investments a fund may make. The most important aspect of a fund is its investment objective.
The fund's objective tells investors the goals the fund seeks to achieve, and a good deal about
how it intends to achieve them. A balanced fund will generally hold stocks and bonds. A fund
seeking growth fund will utilize stocks. A fund seeking income with little or no concern for
growth will generally hold bonds. The objective of a fund is so fundamental that it generally
determines the category into which a fund will be assigned. Listed below are some examples
of major investment objective categories: -

1. Preservation of Capital & Liquidity—Achieved by investing in very short-term bonds

2. Income—Achieved by investing in bonds
3. Balanced—Achieved by investing in bonds and stocks
4. Growth—Achieved by investing in stocks

The prospectus:
The Securities and Exchange Commission (SEC) requires all mutual funds to publish a plain
English prospectus and issue a copy to all potential investors either before they buy or along
with the confirmation of their initial investment.
The prospectus must explain the programs and policies the management follows to achieve
the fund's investment goals. The prospectus includes:

➢ Statement of objective
➢ Investor programs
➢ Fund fees and expenses
➢ Fund performance history
➢ Results of investment
➢ How to purchase and redeem shares
➢ Shareholder services
 HOW MUTUAL FUNDS CAN EARN MONEY

A mutual fund can earn money in three different ways.

Dividend Payments — A fund may earn income in the form of dividends and interest on the
securities in its portfolio. The fund then pays its shareholders nearly all of the income (minus
disclosed expenses) it has earned in the form of dividends.

Capital Gains Distributions — They are paid from any profits the fund realizes from selling
investments. The price of the securities a fund owns may , increase. When a fund sells a security
that has increased in price, the fund has a capital gain. At the end of the year, most funds
distribute these capital gains DISTRIBUTIONS (minus any capital losses) to investors.

Increased NAV — If the market value of a fund's portfolio increases after deduction of
expenses and liabilities, then the value (NAV) of the fund and its shares increases. The higher
NAV reflects the higher value of your investment.

With respect to dividend payments and capital gains distributions, funds usually will give a
choice: the fund can send a check or other form of payment, or the dividends or distributions
reinvested in the fund to buy more shares (often without paying an additional sales load.

A fund may sell investments for a number of reasons:

➢ To capitalize on an investment's increased value

➢ To achieve performance targets
➢ To free up money to make new investments
➢ To prevent additional losses in a security that is losing value
➢ To have enough cash to redeem shares its investors want to sell back to the fund
 ADVANTAGES AND DISADVANTAGES

Every investment has advantages and disadvantages. But it's important to remember that
features that matter to one investor may not be important to you. Whether any particular feature
is an advantage for you will depend on your unique circumstances. For some investors, mutual
funds provide an attractive investment choice because they generally offer the following
advantages:

• Professional Management — Professional money managers research, select, and

monitor the performance of the securities the fund purchases.
• Diversification - - Diversification is an investing strategy that can be neatly summed up
as "Don't put all your eggs in one basket." Spreading your investments across a wide
range of companies and industry sectors can help lower your risk if a company or sector
fails. Some investors find it easier to achieve diversification through ownership of
mutual funds rather than through ownership of individual stocks or bonds.
• Affordability - - Some mutual funds accommodate investors who don't have a lot of
money to invest by setting relatively low amounts for initial purchases, subsequent
monthly purchases or both.
• Liquidity & flexibility— Mutual fund investors can readily redeem their shares at the
current NAV plus any fees and charges assessed on redemption at any time Through
features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans, you can systematically invest or withdraw funds according to your
needs and convenience.
• Easy entry and exit -- Filling a mutual fund application or a redemption form is all that
it takes while entering or exiting a mutual fund. But with equity shares, you need to
have an account with a stockbroker (for buying & selling) and another with a
depository participant. Some investors may find this cumbersome.
• Tax benefits— Section 88 for Equity Linked Saving Schemes, ability to reinvest your
proceeds from capital gains into mutual funds under section 54EA & 54EB and tax-free
status for equity oriented funds for three years starting from April 1, 1999 are popular
benefits that investors in mutual funds can avail of.
 • Transparency—One get regular information on the value of the investment in addition
to disclosure on the specific investments made by ones scheme, the proportion
invested in each class of assets and the fund manager's investment strategy and
outlook.
• Well Regulated—All Mutual Funds are registered with SEBI and they function within
the provisions of strict regulations designed to protect the interests of investors. The
operations of Mutual Funds are regularly monitored by SEBI.

But mutual funds also have features that some investors might view as Disadvantages, such as:

• Costs Despite Negative Returns -- Investors must pay sales charges, annual fees, and
other expenses regardless of how the fund performs. And, depending on the timing of
their investment, investors may also have to pay taxes on any capital gains distribution
they receive even if the fund went on to perform poorly after they bought shares
• Lack of Control - - Investors typically cannot ascertain the exact make-up of a fund's
portfolio at any given time, nor can they directly influence which securities the fund
manager buys and sells or the timing of those trades.
• Price Uncertainty - - With an individual stock, you can obtain real-time (or close to
real ¬time) pricing information with relative ease by checking financial websites or by
calling your broker. You can also monitor how a stock's price changes from hour to
hour — or even second to second. By contrast, with a mutual fund, the price at which
you purchase or redeem shares will typically depend on the fund's NAV, which the fund
might not calculate until many hours after you've placed your order. In general, mutual
funds must calculate their NAV at least once every business day.
COMPANY PROFILE

Introduction
Prudent Corporate Advisory Services Limited provides financial advisory services. Prudence
is the exercise of good judgment, common sense and caution, especially in the conduct of
practical matters
Incorporated in 2000 with a clear vision of providing professional services in the area of
personal and corporate investments, it has created a niche segment over a period of time with
an excellent quality client base with in-house capability of analyzing various products on
various parameters before suggesting them to clients.
Prudent possess the essential state-of-the-art IT infrastructure which helps in delivering cutting
edge technology platform to its clients and channel partners. Prudent has believed in the adage
that the torchbearers of tomorrow should never be weighed down by the legacies of
yesterday. Prudent has always lived up to and exceeded expectations. Prudent empowers
clients by expediting change, helping them harness the power of technology to deliver better
solutions every time.
Besides having a large pool of its own clients, the company also manages its geographically
spread business operations through a unique platform for independent financial advisors
(IFA’s) which helps them to grow and expand their services by providing them training &
consultation, technology, operations, back-office and support for sales and marketing.
Prudent has been working diligently to serve the investors for more than 2 decades. The team
approach worked wonders and in the short span of over one decade, the Prudent Group
expanded its horizon by offering specialized services in the areas of Personal & Corporate
Investment Planning through Mutual Funds, Equities, Derivatives, Third Party Products, Fixed
income Products, Life/General Insurance, Commodities and Real Estate through various
business vertical.
Having an in-house research team is like having your own voice. Prudent has research team
that, after thorough research, forms an unbiased opinion and an independent view on
investments.
Prudent is a proud winner of CNBC Best Financial Advisor Award (West Region) for 5 times
in a row given for its outstanding performance.

Background

Started in 2000, with the vision of Mr. Sanjay Shah knowing the growth of Mutual fund and
Financial Services sector through the power of technology at an early stages of market growth.
Today Prudent is one of India's fastest growing financial services Group. It has commenced
operations at the turn of millennium, with mutual fund distribution. Also sensed the potential
and under penetration of mutual funds, which laid the foundation of Prudent Group. Since then,
prudent has expanded to offer financial services and products such as Mutual Funds, Insurance,
Equities, Bonds, PMS-AIF, Fixed Income Products, Properties and Loan Products.

Prudent deliver comprehensive and bespoke financial services to Individuals, Corporate, HNIs
and UHNIs matching their investment aspirations and risk appetite through our team of 980+
highly skilled professionals & 17400+ well trained & qualified channel partners. Over a period
of time, our market dominance has earned us not only trust and confidence but many accolades.
We are present across India through our 105 branches over 20 states with our strong digital
presence.

The journey, we believe has just begun…..

VISION & MISSION

VISION
To be the most preferred Group in
Financial Services catering to masses with the help of technology

MISSION
To build a strong organization based on our core values of

• Client First
• Focused Approach
• Fairness
• Dignity & Respect for each stakeholder
• Teamwork
• Integrity & Honesty

MANAGERIAL TEAM

Name Designation
Sanjay Shah Chairman and managing Director
Shirish Patel Whole time director and CEO
Chirag Shah Whole time director
Dhiraj Poddar Non- Executive Nominee Director
Karan Datta Independent Director
Deepak Sood Independent director
Shilpi Thapar Independent Director

With more than 600 employees working all over India. As a company that imparts investments
solutions based on personal parameters, employees see ourselves as a team of financial
advisors rather than business people. In the fragile business business of handling other people
money, they always maintain high ethical standards in everything they do. Integrity and
honestly are at the heart of our business. In this, lies our belief-our existence.
It is the professional expertise puts us in a position where investors money can benefit from
our guidance. Creation of investor’s wealth is not just a business. It is ethos. Having understand
the investment needs of the clients, Prudent team provide the best possible solution; the focus
always being on an optimal basket of products rather than selling all available products. The
focus hence, is quality and not quantity.

Client advisory process

The team follows the following process:
1. Client profiling
2. Client investment statement
3. Prepare investment plan
4. Implementation
5. Periodic review and monitoring
6. Re- alignment of investment plan

This is the process that the prudent team follows for proving their advises to the
investors to make sure that the financial goal that has been set by them fulfills.
Prudent team is uniquely positioned to be a part of the client’s inner trust circle and
consult them to arrive at independent investment decisions. The team also helps their
emotions during market volatility through right choices.
SWOT ANALYSIS OF PRUDENT

STRENGTHS
• Prudent CAS ltd. is a national distributor.

• Company has harnessed the potential of information technology for excellentresearch

and portfolio management through specialized software which works on real-time
market information and generates error-free reports.

• For IT-savvy investors, Company possesses a secured user-friendly website that

contains excellent research and portfolio management tools to help client to access
their portfolios round the clock.

• The research team and the website are backed by a team of veteran IT professionals, d
evelopers, designers, programmers and high-end Servers. The entirefocus is on
security of information, integrity of data, and accuracy of real-time reports.

• Company constantly endeavors to achieve optimum client & partner satisfaction and
confidence building by providing various tailor-made reports according to client needs.
Company possesses dedicated qualified team that research and analyze the various
financial products available in the marketplace.

• Company has created in-house capabilities of analyzing funds on various parameters

before suggesting them to clients.

• 4000 plus distributors are associated with the company.

• Company is having 6% share in the market with having Rs. 3000 crores plus assets.

• Fulltime Dedicated of Team RM & CRO for client support & Assistance.

• Regular Meeting with Partners on business and market Updates.

• Company provides an Online 24X7 query module to its clients and associate.

• Company deals in various kinds of financial products which helps the client in planning
their financial management better.

• Wide Branch Network.

• Training at Regular Interval.

WEAKNESS

• Company is having major branches in big cities howerver, the presence in remote areas
has not been expanded much.

OPPORTUNITIES
• Company can grow and expand their services & support through sales
and marketing, technology, operations, back- office support, training &
consultation.

• Prudent Group expanded its horizon by offering specialized services in the areas
of Personal and Corporate Investment Planning through Mutual Funds, Equities,
Derivatives, Third Party Products, Fixed Income Products, Life/General Insurance and
Real Estate which can help the company become a global player.

• Besides having a large pool of their own clients, the company also has the potential to
manage its geographically-spread business operations through a unique platform
for independent financial advisors (IFA).

• Company is in the process of creating its national presence by opening offices in various
parts of the country.

• Company is a member with Bombay Stock Exchange (BSE) and it applied

for membership of National Stock exchange (NSE) & Central depository services
(India)Limited (CDSL).

• It also has strong hold on the corporate channel - it now wants to have a greater reach
to its clients which it has already developed through its 2000+ certified brokers just the
beginning of the force that will grow in leaps and bounds.

THREATS

• Company faces competition from various companies in the market.

• Due to few branches of the company in the north India it could affect the company in
the competition geographically

• Company deals in limited products in turn competitor can lead the competition by
dealing in those products in which company does not deal.
 USP

• Company provides the online platform to its clients. Company’s 90% dealing is web
based and it provides an online 24 X 7 portfolio and query module that helps a customer
to see their money growing.

• Online Valuation report for all Mutual Fund investments.

• Unbiased advice across the product basket.

• Prudent CAS ltd. believes in sales through investing in different AMCs, not in
advertising their services. Advertising concept is not the part of Prudent CAS ltd.
though this concept has been taught to us in the classroom.

• The diversity among the work force is not as creative as required as the major difference
between workforces is the age factor.

• Effective strategies are not developed to achieve the company’s goal in concern

BUSINESS MODEL

Prudent has total of six pillars.

1. Product basket
2. People
3. Partners
4. Process
5. Presence
6. Prutech

Among these Prudent’s business and its growth depend on the partnership. Partnership
is one the most important driving factor of company’s business.
Prudent’s business model is B2B ,i.e., business to business. The partners are mostly
industry linked professionals providing advisory services to investors.
Prudent strive to ensure that its partnership positively impact the business of prudent’s
channel partners. More than 14500 channel partners enjoy the confidence and trust with
the brand Prudent.
Partners offering
Prudent’s wide spectrum of offerings to partners sets us apart from the rest.

1. Client servicing: Relationship managers provide their assistance to partners if they

face any difficulty answering the client regarding schemes and funds investments.

2. Sales support: Reports and trainings are being provided to partners so that they can
pitch the right product to the right investor.

3. Marketing support: One pager for SIPs, ELSS etc. and fact sheets are being
provided to the partners to support their efforts. Images, videos, emailers for
marketing campaigns help the partners to inform the customers about the schemes.

4. Training and knowledge: Basic training is provided the new channel partners.
Various research reports by fund managers are slo provided to them. Time to time
meetings has been arranged to educate the partners about the products so that they
can tackle investors queries regarding the product.

5. Research and reports: updates of daily, weekly, monthly and annual reports are
provided to partners about the schemes and mutual funds performances.

6. Back-office support: Back- office support is provided to partners. Partners desk

portal are being provided to every partner for their efficient performance. Query
submission through partner desk and tollfree no.

7. Online transactions : Partners are well informed about the online transactions
through fundzbazar. Partner in

8. Mobile applications: mobile applications such Fundzbazar, fundzbot, policy world,

prudent connect, prudent brokers are being provided to them and proper train them
so that they can handle the customers digitally as well by viewing their portfolios
reports.
FACTS ABOUT PRUDENT

Prudent is known for its efficacy as today that extra saving is no longer a tidy sum of money
tucked away in a fixed deposit or saving account, but a liquid asset that needs a range of
investment products along with strategic to build wealth.
The wealth one creates using investment products will depend on the advice provided by one’s
investment advisor and this is precisely where Prudent step in.
To a less informed investor, volatile market brings as much despair as hope but to the wise it
confers wealth.

1402000 Happy clients

1637000 Live SIPs
49473 Asset under management
23763 AMFI registered channel partners

For more than 19 years, Prudent has grown steadily and evolved by bringing changes and
embracing challenges. The heart of its success lies in its people, partners and the core belief in
creating money through wisdom.
That is why prudent has more than 1 Cr happy clients with SIPs growing faster as compared to
the past 5 years. Digitization has transformed the investment landscape in India. Millennial
investors demand speed, security and anywhere investing. Prudent offers dedicated future-
ready investment platforms and tools to our partners and clients to the partners and investors
that deliver an exceptional digital investing experience.

WHOLLY OWNED SUBSIDIARIES

As the flagship company, Prudent CAS Ltd. remains the primary arm of the Prudent Group.
Below are Wholly Owned Subsidiaries:

1. Prudent Broking Services Pvt. Ltd.

Incorporated in 2004, Prudent Broking Services Pvt. Ltd. is a Stock Broking and
Depository Participant. The company is a stock broking and depository participant
service provider. The company is member of BSE, NSE, MSEI & CDSL. With solid
research, well trained people, State of the art infrastructure and Strong IT, Prudent
broking is fastest growing company in the field of stock broking. The company provides
cutting edge stock, derivatives, commodity and currency trading through a wide
spectrum of products on both app &web platforms.

2. Gen-next Insurance Brokers Pvt. Ltd.

Is an IRDA registered insurance broker. The company provides both life and non-life
insurance solutions offline as well as online through state-of-the-art portal www.
 Policyworld.com. One can select, compare, buy, renew & manage their policies online
from anywhere through the portal and mobile application.

3. Prutech financial services Pvt. Ltd.

Is SEBI registered advisor offering customized financial planning services to clients so
that they can achieve their financial goals in a planned and systematic manner.

PRODUCT AND SERVICES

Prudent offer a comprehensive range of Investment products such as Mutual Funds,

Insurance, Stock Broking, Fixed Income Products and Properties as well as lending
solutions through dedicated web, App and Chatbot platforms.

1.Mutual funds
India’s 5th largest Mutual Fund distributor offering a wide range of Mutual Fund
products & services like SIP, ELSS, INSTAFUNDZ, SIP with Insurance, Gold
Accumulation Plan, Smart Combos and Asset Allocation Combos all under one place
at www.fundzbazar.com. One can invest through App and Chat bot as well.

2. Insurance
To cover at all times against relevant risks is very important to ensure the financial well-
being, Prudent Provides Life and General Insurance solutions through offline and state
of the art online platform and App backed by Gennext Insurance Brokers Pvt. Ltd., an
IRDA registered Insurance Broking Company. One can Select, Compare, Buy, Renew
and manage their policies online from anywhere through www.policyworld.com.

Policy world had partnered with leading insurers to provide insurance solutions related
to Life, Health, Personal Accident, Critical Illness, Travel, Car and Two -wheeler. It is
a team of certified and experienced insurance experts helps the clients in providing
insurance at the most competitive premiums and terms.

Prudent’s approach has always been clients centric and not product and idea specific.
The idea is provides the right coverage at the right time, through the right product and
at the right cost.

3. Stock broking
Providing Stock Broking solutions through trading platform, web and trading App. The
platform offers regular trading as well as research based thematic stock basket products
and unique investment management product called PruGrow. Prudent Broking Services
Pvt. Ltd. Is a Stock Broking and Depository Participant having membership of BSE,
NSE, MSEI & CDSL. Stock Broking is offered through online platform
www.prudentbroking.com as well as www.fundzbazar.com.
 The company services its clients through more than 22 branches and 2000+ channel
partners. It also provides powerful and secure technology products across mobile, web
and desktop.
Prubazar is a mobile trading app for those who are always on the go. PruGrow is a
unique wealth management product that combines both fundamentals and technical
analysis to generate higher returns.

Morning manta, evening edition, derivative diary, weekly wisdom are some popular
research tools created in-house research team. these help the clients to make the
informed decisions while trading, thereby achieving their goals.

4. Fixed income products

Catering to our conservative investors who need fix and regular income and also who
wants to diversify their portfolio as well as looking for safer investment. Through
Fundzbazar.com we provide paperless Investment solution for Secondary Bond &
Fixed Deposits.

5. Property
Property is one of the important asset class. The efforts and paperwork involved in
purchasing the same can be intimidating. Prudent Properties, a RERA Registered
Property solution platform that provides Buy, Sell, Rent & Lease options for
Residential & Commercial Properties.

It has a strategic tie up with top notch developers and real estate companies to provide
not only the best option in terms of design, location and construction quality but also
offer an advantage in terms of pricing and payment options to its customers.
Prudent Property provides real estate solutions not only in creating an asset class but is
also helping the customers in buying their dream realty, whether it is home or office.
Prudent also help its clients for their housing loan needs through our tie up with various
Housing Finance Companies (HFCs).

The team includes experts from the industry who understand the trend movements in
property prices. The team liaises with top real estate and construction companies to
keep a watch on their existing and up-coming projects.
The aim is simple, to advise the client in finding the right property by using the market
knowledge.

6. Loan
Credit Basket, a web-based platform that provides smooth access to finance through
wide range of Retail Loan (Personal, Home & Loan against Properties), Loan Transfer
and Credit Card products. One can choose and compare qualified offer from leading
financial institutions based on his/ her requirement online.
TRANFORMATION THROUGH DIGITAL AND MOBILE PLATFORMS

Nowadays people have very less time to go for offline procedures and formalities as
they take time and effort, and with the busy schedule of office workers sometimes don’t
get time to visit the local branch or it might happen they are out of city and want to
check their account working or want to invest after studying the reports furthermore,
they want fast working and thus they need some digital assistance.

That’s where prudent came up two applications that any investor can use easily without
any hassle.

1. Fundzbazar

It is a quick, hassle free, secure and online mutual fund investment platform which
help investor in taking informed investment decisions providing research, analysis,
investment tools, apps and other features.

Features

a. Product offerings: Fundzbazar offers facilities to investors to invests in mutual

funds, NPS, FD, LAS, Gold accumulation plan (GAP) online and without any
human interaction.

b. Account options: product provide the option of single login account for
individual, minor, huf and NRI with multiple holding combinations.

c. Planning : Investors can choose to risk profile themselves to know their current
financial standing, investors can also go for financial calculator, goal planning,
shubh shuruat and wrap portfolios to start their journey with the company and
that to digitally where they can plan and invest all by themselves.

d. Transactions: options are available for purchase, SIP, STP, SWP, switch
redemption trigger facility and instafundz.

e. Reports : Investors can make use of portfolio valuation reports, capital gain/loss
report, dividend income statement, STP/SIP report, Transaction report.

f. Scheme research : Few research tools have also been provided to investors for
better experience with their investments like fudnz analyzer, peer comparison,
SIP return comparison, rolling return comparison, debt fundz analyzer.
 g. Industry research : fundzbazar offers investor to analyse the trends in FIIs, AUM
analysis, cash analysis, what’s in / what’s out and sectoral analysis.

h. Manage account : fundzbazar is an app which lets the investor manage their
accounts through checking account details, add clients, managing joint holder,
manage mandate, manage query.

2. FundzBot
Fundzbot is a multi-channel conversational interface deployed on fundzbazar’s
website, Whatsapp and Facebook messenger that lets clients invest and redeem in
no time.

Features

a. Secure : Fundzbot is secure as it is backed by a bank grade security that doesn’t

let you invest without an OTP based verification.

b. Easy : It is easy to use. Simple login is required through mobile no. and PAN
details.

c. Investing and more : with fundz bot investors can chat with the experts and
invest in the schemes. They can also opt for redeem, switch, SIP and STP.

d. Transaction : as an investor it is very important to know your recent transactions

to make a proper record of your finances with the feature of experts chatting
investors can get the details of last 10 transactions.

e. Investment details : investors can chat and get details of their account statements
instantly in their mailbox.

f. FAQs : If any investor has any doubts regarding their mutual fund investments
they can openly ask their questions and get the answers.

g. Availability : Fundzbot is available on fundzbazar’s web platform, whatsapp as

well as facebook messenger.

h. Care : customer care service is also available for investors to answers their
specific queries
 Research Methodology

Research Methodology is a way to systematically solve the research problems. It may

understand as a science of study how research is done scientifically. In a research paper, the
methodology section allows the reader to critically evaluate a study's overall validity and
reliability.
This is the exploratory study where I study the awareness and perception of investor. Two types
of data were taken into consideration i.e. Secondary data & Primary data. My major emphasis
was on gathering the primary data. The secondary data has use to make things more clear.

In this Chapter, the methodology associated with each of the research objectives has been
discussed in detail, covering areas like questionnaire development, validity and reliability,
respondents of the study, increasing response- quality and quantity, data analysis and
limitations.

OBJECTIVES

• To study the level of awareness of mutual funds.

• To analyse the perception of investors towards mutual funds.
• To study the factors considered by the investors and those which ultimately
influence him while investing.
• To determine the type of mutual fund investor prefer the most.
 HYPOTHESIS

HYPOTHESIS 1
H0- The investors are aware about mutual fund
H1- The investors are not aware about mutual funds

HYPOTHESIS 2
H0- Investors do want to invest in mutual fund
H1- Investors don’t want to invest in mutual fund

HYPOTHESIS 3
Ho- Advertisement are increase the awareness level of mutual fund
H1- Advertisement are not increase the awareness level of mutual fund

Research Design

The research design refers to the overall strategy that we choose to integrate the different
components of the study in a coherent and logical way.
A research design is purely and simply the framework of plan for a study that guides the
collection and analysis of data. The study is done to know the investors preference towards
asset allocation strategy. The study design is “Exploratory” in nature.
Exploratory research is a research conducted for a subject which has few or no earlier studies
to refer to or to rely upon to predict an outcome, or it has not been studied more precisely.

This research project is Exploratory in nature because there has been no study conducted till
date studying choice of asset allocation strategy.
This study is conducted for the first time to know the investors awareness and perception about
mutual fund.
 Sources of Data

Data can be gathered from two places: internal and external sources. The information collected
from internal sources is called “primary data,” while the information gathered from outside
references is called “secondary data.” For data analysis, it all must be collected through primary
or secondary research.

PRIMARY DATA:
A research design is purely and simply the framework of plan for a study that guides the
collection and analysis of data. Primary data-collected through structured questionnaire will be
done. Analysis tool will be used: Percentage, Graphs & charts.
Direct collection of data from the source of information technology i.e. online Google form.

SECONDARY DATA:
Indirect collection of data from sources containing past or recent past information like annual
publication, books, newspaper, journals , magazines etc. The secondary data was collected to
know the theoretical aspect of the mutual funds and also for the performance evaluations of
various mutual funds schemes.
 Sample Design

Sample Design is a definite plan to obtain a sample from the sampling frame. The method
which is adopted by the researcher in selecting the unit of sampling from the population is
called sampling design.

POPULATION:
A population is the entire group that you want to draw conclusions about. For this research, I
had choose those investors who live in Kanpur.

SAMPLE SIZE:
It represents how many investors you have chosen to fill up your questionnaire. I had chosen
sample of 30 investors.

SAMPLING METHOD:
The sampling method or sampling technique is the process of studying the population by
gathering information and analyzing that data. In this research, I had used probability method.

METHOD OF DATA COLLECTION:

The data was collected using questionnaire from professionals/Common man like those who
wants invest in mutual funds to know their perception about mutual fund.
A study on research design which has been made use of is the descriptive research design which
describes the awareness and perception of the population that is being studied.
 DATA ANALYSIS AND INTERPRETATION

Data is the backbone of any data analysis work done in the research process. Data is a collection
of unorganized facts and numbers from different sources. The sources of data can be different
depending on what the research needs. Data analysis and interpretation are based solely on
gathering different kinds of data from their sources. Researchers or analysts do the work of
data collection to collect information.
For data analysis, it all must be collected through primary or secondary research. A data source
is a pool of statistical facts and non-statistical facts that a researcher or analyst can use to do
more work on their research.

1. GENDER WISE DISTRIBUTION OF RESPONDANTS

INTERPRETATION

From the above pie chart, we got to know that which gender is interested in mutual fund
industry most. So 51.2% male are interested in mutual fund industry and 48.8% Females are
interested in mutual fund industry.
 2. AGE WISE DISTRIBUTION OF INVESTORS IN KANPUR

INTERPRETATION

The above pie chart shows us distribution of investors of Kanpur location according to their
age. Majority of the investors (81.4%) were from the age group of 20 – 30 years, followed by
20-30 age group. Investors above 50 were less in number. Respondents from the 20-30 age
groups were more willing to participate in the survey as compared to all.

3. WHICH CATEGORY ARE PARTICIPATE MOST

 INTERPRETATION

In this pie chart we can see that 71.2% student and 11.6% service employees are participate in
this survey as compares to business and profession.

4. EDUCATION QUALIFICATION OF INVESTORS

INTERPRETATION

The above pie chart shows us that 44.2% investors are Post Graduate who take part in a survey
followed by 32.6% are Graduate and 20.9% investors are undergraduate.

5. ANNUAL INCOME OF THE PARTICIPANTS

 INTERPRETATION

The above pie chart shows us that 61.9% respondents are below 1 lakh annual income group
followed by 23.8% are from 1lakh to 3 lakh income group and remaining are from other income
group.

6. AWARENESS ABOUT MUTUAL FUNDS

INTERPRETATION

From the above pie chart we got to know that 78.6% of investors are aware about mutual fund
and 21.4% of investors are not aware.

7. HOW MANY RESPONDENTS LIKES TO INVEST IN MUTUAL FUNDS

 INTERPRETATION

This chart shows us that 70.5% investors are interested to invest in mutual fund schemes and
rest of them are not invest.

8. HOW LONG INVESTORS LIKE TO INVEST

INTERPRETATION

As per the above pie chart 44.2% respondents are like to invest for a long-term period, 39.5%
respondents are like to invest for short term period and 16.3% respondents are like to invest for
medium term period.

9. IN WHICH MODES RESPONDENTS ARE MADE THEIR MAJOR PART OF

INVESTMENT;
 INTERPRETATION

The above pie chart shows that 41.9% of the investor invest their saving as bank deposits,
18.6% investor like to invest their investments in equity, 14% investor like to invest their
saving into mutual funds and real estate and remaining respondents are invests their saving
into other remaining modes.

10. WHY RESPONDANTS PREFER THE ABOVE OPTION

INTERPRETATION

The pie chart shows that 50% respondents believe that above investment option provide them
safety and security, 14% choose the investment because the option is profitable for them, 11.9%
respondents choose because they get tax exemption on their investment, 7% investor investors
made their investment because of return pattern and guaranteed return, 4.8% investor invest
their savings in the above mode because it provide liquidity.
11. RESPONDENTS WHO HAVE SEEN ADVERTISEMENT OF MUTUAL FUND

INTERPRETATION

According to above pie chart 75% respondent have seen advertisements of mutual funds and
other are not seen the advertisement.

12. HOW MANY RESPONDENTS ARE WILLING TO INVEST

INTERPRETATION

According to above pie chart 50% respondent are willing to invest in mutual fund in future
and others are not willing to invest.
13. RANK THE SERVICES PREFERRED BY RESPONDENTS FROM FINANCIAL
ADVISORY INSTITUTION

INTERPRETATION

As per the above pie chart 40.9% online service, 29.5% personal service, 20.5% mobile service,
6.8% telephone service and 2.3% no service has been ranked by the respondents which he gets
from financial advisory institution.

14. FACTORS YOU CONSIDER THE MOST WHILE , INVESTING IN MUTUAL

FUND?
 INTERPRETATION

This pie chart shows that 32.6% return pattern, 18.6% quality of portfolio, 14% risk factor,
16.3% wealth creation, 11.6% service, 4.7% performance and 2.3% professional managements
are factors most considered by respondents while investing in mutual funds.

15. MUTUAL FUND SCHEME PREFERRED THE MOST

INTERPRETATION

The above pie chart show that 41.9% respondents prefer equity mutual funds scheme, 27.9%
prefer open ended fund scheme, 16.3% prefer hybrid mutual fund scheme, 7% prefer close
ended mutual fund scheme and 2.3% respondents prefer debt mutual fund scheme.
 FINDINGS AND OBSERVATION

➢ According to this survey, we know that Investors awareness and perception about
mutual fund.
➢ In Kanpur, In the age group of 20-30 years of investors were more in number to take
interest in mutual fund industry, the second most investors were in the age group of 30-
40 years and the least were in the age group of above 50 years.
➢ In occupation group most of investors were student, the second most investors were
private employees and the least were government employees.
➢ Most people go for bank deposits like fixed deposits then for EQUITY investment,
mutual funds and real estate.
➢ 78.6% of the total respondents are aware about mutual funds and 21.4% are not aware
about mutual funds.
➢ 70.5% of the total respondents are like to invest in mutual funds and rest are not like to
invest.
➢ 44.2% of the total respondents are want to invest for long term ( above 3 year ), 39.5 %
want to invest for short term period and 16.3% are want to invest for short term.
➢ 75% of the total respondents have seen advertisement of mutual fund, 25% respondent
have not seen advertisement of mutual funds.
➢ 50% respondents are willing to invest in mutual fund in future and other 50% are not
willing to invest in future.
➢ 40.9% respondents are ranked the online service from financial advisory institution on
the top followed by 29.9% personal service, 20.5% mobile service and 6.8% telephone
service.
➢ 32.6% return pattern, 18.6% quality of portfolio, 14% risk factor, 16.3% wealth
creation, 11.6% service, 4.7% performance and 2.3% professional managements are
factors most considered by respondents while investing in mutual funds.

➢ Most of the respondents prefer equity mutual fund scheme (41.9%) because it gives
higher return and 27.9% are prefer open ended mutual fund scheme, 16.3% prefer
hybrid mutual funds scheme, 7% are prefer close ended mutual fund scheme and 2.3%
are prefer debt fund scheme.
CONCLUSION

Using the data collected through primary research, it was analyzed that most of the mutual fund
investors were aged between 20-30 years and 30-40 years. The prime reason for this finding is
that in Kanpur, mostly in all households, decisions related to investment and finance are taken
by the male members of the family since past many years and this trend is still visible in most
of the families. Hence, for companies in order to make sure that more and more investors invest
in their company they should target men who are in their middle age. The results of the study
indicated that majority of the investors prefer to invest in equity fund scheme because majority
of investors bear risk to maximize their returns. Investing in mutual funds for the long- term period
(more than 3 years) investors get tax deduction under section 80C of the Income Tax Act, 1961.
Investors who are keen towards saving their tax prefer investing in mutual funds and other securities.

SUGGESTIONS

After interpretation and analysis, I am giving certain suggestions to the company which I hope
may be helpful for the company.
➢ To attract the young generation awareness about mutual fund should be spread among
the school and colleges.
➢ AMC should collect feedback from investors, they need to inform the investor about
their investment progress and fund manager should the investors money in accordance
with their objectives.
➢ The advertisement about the mutual fund is considered as most important source of
information. So the company should provide needed information to the people through
advertisement to spread about mutual funds.
➢ The investor may not have sufficient knowledge related to the schemes of mutual fund
so the managers should be expert and should provide timely information to the
investors.
 BIBLIOGRAPHY

1) https://www.prudentcorporate.com/
2) https://www.amfiindia.com/investor-corner/knowledge-center/history-of-MF-
india.html#accordion3

3) https://mutualfund.adityabirlacapital.com/blog/growth-of-mutual-fund-industry-in-india

4) https://www.amfiindia.com/#

5) https://www.sebi.gov.in/