INDEX

CHAPTER
NO.
1

PARTICULARS

PAGE NO.

EXECUTIVE SUMMARY

05

INTRODUCTION

06

ORGNIZATION PROFILE

08

THEROTICAL FRAMEWORK OF THE STUDY

13

RESEARCH METHODOLOGY

17

DATA ANALYSIS & INTRPRETATION

22

FINDINGS AND SUGGESIONS

40

CONCLUSION

42

BIBLIOGRAPHY

43

10

QUESTIONNAIRE

47

EXECUTIVE SUMMARY
In Funds have not only contributed to the India growth story but have also helped
families tap into the success of Indian Industry. As information and awareness is rising
more and more people are enjoying the benefits of investing in mutual funds. The main
reason the number of retail mutual fund investors remains small is that nine in ten people
with incomes in India do not know that mutual funds exist. But once people are aware of
mutual fund investment opportunities, the number who decide to invest in mutual funds
increases to as many as one in five people. The trick for converting a person with no
knowledge of mutual funds to a new Mutual Fund customer is to understand which of the
potential investors are more likely to buy mutual funds and to use the right arguments in
the sales process that customers will accept as important and relevant to their decision.
This Project gave me a great learning experience and at the same time it gave me enough
scope to implement my analytical ability. The analysis and advice presented in this
Project Report is based on market research on the saving and investment practices of the
investors and preferences of the investors for investment in Mutual Funds. This Report
will help to know about the investors Preferences in Mutual Fund means Are they prefer
any particular Asset Management Company (AMC), Which type of Product they prefer,
Which Option (Growth or Dividend) they prefer or Which Investment Strategy they
follow (Systematic Investment Plan or One time Plan). This Project as a whole can be
divided into two parts.

OBJECTIVES

To aware customers about mutual fund scheme through calling.

Basically to understand the concept of Portfolio management and its relations

with the mutual fund.

SCOPE

Equity funds invest in shares of company

Balanced Funds invest in combination of both shares and bonds.

INTRODUCTION
A mutual fund is a professionally managed firm of collective investments that
collect money from many investors and puts it in stocks, bonds, short-term money market
instruments, and/or other securities. The fund manager, also known as portfolio manager,
invests and trades the fund's underlying securities, realizing capital gains or losses and
passing any proceeds to the individual investors. Currently, the worldwide value of all
mutual funds totals more than $26 trillion.
Meaning and definition
A mutual fund is simply a financial intermediary that allows a group of investors
to pool their money together with a predetermined investment objective. The mutual fund
will have a fund manager who is responsible for investing the pooled money into specific
securities (usually stocks or bonds). When you invest in a mutual fund, you are buying
shares (or portions) of the mutual fund and become a shareholder of the fund.
Why Select Mutual Fund?

The risk return trade-off indicates that if investor is willing to take higher risk
then correspondingly he can expect higher returns and vise versa if he pertains to lower
risk instruments, which would be satisfied by lower returns. For example, if an investors
opt for bank FD, which provide moderate return with minimal risk. But as he moves
ahead to invest in capital protected funds and the profit-bonds that give out more return
which is slightly higher as compared to the bank deposits but the risk involved also
increases in the same proportion. Thus investors choose mutual funds as their primary
means of investing, as Mutual funds provide professional management, diversification,
convenience and liquidity. That doesnt mean mutualfund investments risk free. This is
because the money that is pooled in are not invested only in debts funds which are less
riskier but are also invested in the stock markets which involves a higher risk but can
expect higher returns. Hedge fund involves a very high risk since it is mostly traded in
the derivatives market which is considered very volatile.

OBJECTIVES
Primary Objectives :

Basically to understand the concept of Portfolio management and its relations

with the mutual fund.

And also analyze the performance of various schemes of Mutual Fund on the
basis of various parameters.

To aware customers about mutual fund scheme through calling.

Secondary Objectives :

The secondary data were collected from the books, records and journals.
To study and analyze the impact of various demographic factors on investors

attitude towards mutual fund.

To offer suitable suggestions to improve the scope of the market of mutual funds.

SCOPE

Equity funds invest in shares of company

Income funds invest in government or corporate securities that offer fixed rates
of return

Balanced Funds invest in combination of both shares and bonds.

ORGANISATIONAL PROFILE

SBICAP Securities Ltd (SSL) is a 100% subsidiary of SBI Capital Markets Ltd
which is one of the oldest players in the Indian Capital Market and has a dominant
position in the Indian primary capital markets. SBI Capital Markets Ltd. commenced
broking activities in March 2001 to fulfill the secondary market needs of Financial
Institutions, FIIs, Mutual Funds, Banks, Corporate, High Net worth Individual, Nonresidential Investors and Retail domestic investors. SBICAP Securities Ltd. (SSL) is a
company, which has been formed to take over the broking operations of SBI Capital

Markets Ltd. SSL commenced operations in the first quarter of financial year of 20062007.
Services currently offered includes Institution Equity, Retail Equity, Derivatives,
Broking, Depository Participant services, E-Broking.
SSL is registered with the Securities Exchange Board of India for its various services, a
summary of which is as under:

Table No. 1

Registered with/as

Registration no.

SEBI -Stock Broker-NSE

INB231052938

SEBI- Stock Broker BSE

INB011053031

SEBI- Stock Broker-NSE- F&O

INF231052938

SEBI- Stock Broker-NSE- CD

INE231052938

SEBI- Depository Participant

IN-DP-CDSL-370-2006

SEBI Portfolio Manager

INP000002098

Table No 2
Director body of SBI Capital securities ltd.
Name of person

Designation

Smt. Arundhati Bhattacharya

Chairperson

Shri. A. Krishna Kumar

Nominee Director
Shri S. Vishvanathan

Nominee Director

Smt. BharatiRao
Nominee Director
Mr.V G Kannan
Non Executive Director
Smt. Swati Desai

Managing Director

Shri Anil Bhandari

Whole-time Director
Shri M.P. Mehrotra
Independent Director
Shri H.N. Varma
Independent Director

Product profile
1] EQUITY

A stock market or equity market is a public market for the trading of company
securities listed on a stock exchange. An equity investment generally refers to the buying
and holding or trading of shares to gain income from daily price movements, dividends
and capital gains, as the value of the stock moves. Participants in the stock market range
from small individual stock investors to large institutions and mutual funds, which can be
based anywhere. The tenure of investors/traders varies from few minutes (for jobbers /
arbitrageurs) to multiple years (for long term investors). The liquidity that an exchange
provides affords investors the ability to quickly and easily sell securities. This is an
attractive feature of investing in stocks, compared to other less liquid investments.
Todays equity markets provide modern, fully computerized trading systems designed to
offer investors across the length and breadth of the country a safe and easy way to invest.
We at SSL understand the requirements of different type of investors & offer our
customers with incisive Fundamental & TechnicalResearch thereby empowering them to
take informed investment decisions. For more information related to the Equity market
such as stock quotes, company information, market news, etc.
3] MUTUAL FUND
Mutual Fund is a trust which pools money from investors having similar financial
goals, and invests the money so collected, as per the guideline to attain the stipulated
objective. Thus, a mutual fund is an appropriate investment vehicle for the common man
as it provides the benefits of a diversified portfolio managed by professionals at a
relatively low cost. That apart, it also offers the benefits of diversification across asset

classes through a single product. For example, a Balanced Fund which invests a major
portion in Equity as well as Debt Securities or a Monthly Income Plan (MIP) which
invests

major

portion

in

debt.

In the recent past, we have also been witness to AMCs launching funds with a
difference funds investing across 3 asset classes viz. equity, debt and gold. In addition,
we also have Gold ETFs, Index ETFs and the like which give investors the benefit of
moving in line with the markets (in case of equity Index ETFs), while Gold ETFs track
the underlying price of gold.

4] INITIAL PUBLIC OFFER ( IPO ):

After attaining a certain size, it becomes difficult for a private company to grow
with just the promoters money or by issuing further debt. One of the ways by which a
private company raises funds is through an IPO. In an IPO, the company collects money
from the participating public investors and in return, issues its shares to them. Generally,
these funds are used for the companys expansion or a foray into new business activities
or for debt repayment. Post an IPO, the private company becomes a widely held public
company. Thus, the company offers investors a chance to take part in its potential future
growth in return for the confidence shown in it by way of subscribing to its shares.
5] BONDS:
SBICAP Securities Limited enables their clients to invest in 54EC Bonds like REC,
NHAI (Capital Gain Tax Bonds) and also in GOI bonds.

54EC (Capital Gain) Bonds:

Capital bonds are being issued as 'Long term specified assets' within the meaning of SubSection 54-EC of the Income Tax Act, 1961. Those desirous of availing exemption from
capital gains tax under Section 54 EC may invest in these bonds. Capital gains arising
from transfer of Long-term capital assets can be invested in these bonds within a period
of six months from the date of transfer of the asset for getting exemption from the capital
gains tax.

THEORETICAL FRAMEWORK
Mutual Funds in India (1964-2000)
The end of millennium marks 36 years of existence of mutual funds in this
country. The ride through these 36 years is not been smooth. Investor opinion is still
divided. While some are for mutual funds others are against it.
UTI commenced its operations from July 1964. UTI came into existence during a
period marked by great political and economic uncertainty in India. With war on the
borders and economic turmoil that depressed the financial market, entrepreneurs were
hesitant to enter capital market.
The already existing companies found it difficult to raise fresh capital, as
investors did not respond adequately to new issues. Earnest efforts were required to
canalize savings of the community into productive uses in order to speed up the process
of industrial growth.

The then Finance Minister, T.T. Krishnamachari set up the idea of a unit trust that
would be "open to any person or institution to purchase the units offered by the trust.
However, this institution as we see it, is intended to cater to the needs of individual
investors, and even among them as far as possible, to those whose means are small."
His ideas took the form of the Unit Trust of India, an intermediary that would help
fulfill the twin objectives of mobilizing retail savings and investing those savings in the
capital market and passing on the benefits so accrued to the small investors. UTI
commenced its operations from July 1964 "with a view to encouraging savings and
investment and participation in the income, profits and gains accruing to the Corporation
from the acquisition, holding, management and disposal of securities." Different
provisions of the UTI Act laid down the structure of management, scope of business,
powers and functions of the Trust as well as accounting, disclosures and regulatory
requirements for the Trust.
One thing is certain the fund industry is here to stay. The industry was oneentity show till 1986 when the UTI monopoly was broken when SBI and Can bank
mutual fund entered the arena. This was followed by the entry of others like BOI, LIC,
GIC, etc. sponsored by public sector banks. Starting with an asset base of Rs0.25bn in
1964 the industry has grown at a compounded average growth rate of 26.34% to its
current size of Rs1130bn.
The period 1986-1993 can be termed as the period of public sector mutual funds
(PMFs). From one player in 1985 the number increased to 8 in 1993. The party did not
last long. When the private sector made its debut in 1993-94, the stock market was
booming.

The openings up of the asset management business to private sector in 1993 saw
international players like Morgan Stanley, Jar dine Fleming, JP Morgan, George Soros
and Capital International along with the host of domestic players join the party. But for
the equity funds, the period of 1994-96 was one of the worst in the history of Indian
Mutual Funds.
1999-2000 Year of the funds
Mutual funds have been around for a long period of time to be precise for 36 yrs
but the year 1999 saw immense future potential and developments in this sector. This
year signaled the year of resurgence of mutual funds and the regaining of investor
confidence in these MFs. This time around all the participants are involved in the revival
of the funds ----- the AMCs, the unit holders, the other related parties. However the sole
factor that gave lifer to the revival of the funds was the Union Budget. The budget
brought about a large number of changes in one stroke. An insight of the Union Budget
on mutual funds taxation benefits is provided later.
Future Scenario
The asset base will continue to grow at an annual rate of about 30 to 35 % over
the next few years as investors shift their assets from banks and other traditional
avenues. Some of the older public and private sector players will either close shop or be
taken over.
Out of ten public sector players five will sell out, close down or merge with
stronger players in three to four years. In the private sector this trend has already started
with two mergers and one takeover. Here too some of them will down their shutters in the
near future to come.

But this does not mean there is no room for other players. The market will witness
a flurry of new players entering the arena. There will be a large number of offers from
various asset management companies in the time to come. Some big names like Fidelity,
Principal, and Old Mutual etc. are looking at Indian market seriously. One important
reason for it is that most major players already have presence here and hence these big
names would hardly like to get left behind.
The mutual fund industry is awaiting the introduction of derivatives in India as
this would enable it to hedge its risk and this in turn would be reflected in its Net Asset
Value (NAV).
SEBI is working out the norms for enabling the existing mutual fund schemes to
trade in derivatives. Importantly, many market players have called on the Regulator to
initiate the process immediately, so that the mutual funds can implement the changes that
are required to trade in Derivatives.

Basic Principles of a Mutual Fund Scheme

Investment Objectives and assets allocation pattern

Net Assets Value

Entry and Exit loads

Recurring Expenses

Disclosure of portfolio and half yearly results

Redemption norms

RESEARCH METHODOLOGY
Researcher have collected data in 2 ways, through

Primary data collection

Secondary data collection

Under primary data collection I have collectedthe data by observing the people in
the company those who came for giving the training or the concern person who
doing work for mutual funds or in IPOs department.

For my study of portfolio management I have asked questions to clients and

collected relevant data.

Visiting various sites of mutual funds and companies sites by reading leaflets,
broachers that already exist in company, collects secondary data.

On The Job Training

On Job Training(OJT) is basically to give intern the exposure to the outside world
and it help to teach them the real world work by giving practical knowledge. Through
OJT I learned that the theory we have learned is difficult to implement in practical work.
And we have to apply them in a very different way.
As I was learningabout mutual funds, initial public offers & Portfolio
Management etc. Before this I was just aware of the theory part of it i.e. definition of
mutual funds, its requirement, why a company need additional capital etc. But after
working here I came to know that it is very important to learn the practical procedure of
handling the mutual funds and IPOs because the main part is the dealing with the
customers, convincing them to buy our product and make them to invest with us and
providing them the best service.
I have started my OJT from the very first day. And the day to day work that I
supposed to do my work which is assigned to me. My company has given me the work
related to IPOs (Initial Public Offer).Then I got the work related to mutual funds &
Portfolio Management.
The objectives of research OJT are as follows

Understanding the Basics of IPOs

How a company comes up with new public offer?

Requirement of additional capital for a company?

Decision about fixing price band

How a company enters in Mutual Fund

Factors of Mutual Fund

Factors of Portfolio Management

Customer Service-:

When a customer is asking some query I have to answer him but if I am not sure I

have to ask to my senior and solve his problem.

By interacting customer we can study the main problems faced by them, as they
are not expert of the financial products so they need clear explanation.

Telemarketing -:
Our primary objective is to get an appointment

.Dont sale over phone, just make the call and the sale will follow.
Determine the objection accurately before you start overcoming it.How to talk to

a prospective customer who can become our customer.

Attracting customers in this field is easy, if the person is ready to invest.
He doesnt have knowledge about financial products so we have convinced him
for the same

SAMPLING
Sampling Procedure:The sample was selected of them who re the customer/visitor of State bank of
India.
Dhole Patil road, band garden branch. Irrespective of them being investor or not or
availing the service or not. It was also collected through personal visit to persons, by
formal and informal talks and through filling up the questionnaire prepared. The date has
been analyzed by using mathematical tools.
Sample Size:The sample size of my project is limited to 200 people only. Out of which only
120 people had invested in mutual investment. other 80 people did not have invested in
mutual fund.
Sample Design:Data has been presented with the help of bar graph, pie chart, line graph.

Limitations
This report gives an insight about mutual funds and Portfolio Management but

with

few limitations as follows:

Sample size is limited to 200 visitors of State Bank of India, Dhole Patil Road,
BuneGarden Branch, Pune out of these only 120 had invested in Mutual Fund.
The sample. size may not adequately represent the whole market.
Possibility of error in data collection because many of investors may have not
given actual answers of my questionnaire.
Some of the persons were not so responsive.
Some respondents were reluctant to divulge personal information which can affect
the validity of all responses.

DATA ANALYSIS AND INTERPRETATION

Mutual Fund
Concepts of Mutual fund
A Mutual Fund is a trust that pools the savings of a number of investors who share
a common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized is shared by its unit holders in
proportion to the number of units owned by them. Thus a Mutual Fund is the most
suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost. The flow
chart below describes broadly the working of a mutual fund:

Common pool of money

Joint or Mutual Ownership

Money collected invested in capital market

Units are representative of ownership

1. Reason for investment in SBIMF

Table No. 1.
Reason
Associated with SBI
Better return
Agent advice

No. of respondent
55
30
35

Percentage
46%
25%
29%

Graph No. 1.

No. of respondent
Associated with SBI

Better return

Agent advice

29%
46%
25%

Out of 120 investors of SBIMF 46% have invested because of its association with brand
SBI, 29% invested on agents advice, and 25% invested because of better return.

2. Preference of investor for future investment

Table No. 2.
Name of AMC

NO. OF INVESTORS

Percentage

SBIMF
HDFC

21
10

18%
8%

RELIANCE

46

38%

ICICI PRODENTIAL
OTHER

24
19

20%
16%

Graph No. 2

NO. OF INVESTORS
SBIMF

HDFC

ICICI PRODENTIAL

OTHER

16%

RELIANCE

18%
8%

20%
38%

Out of 120 investors, 38% interested to invest in reliance, 20% interested in ICICI, 18%
interested in SBI, 16% interested in other mutual fund, and 8% interested in HDFC .

3. Channel preferred by investors for mutual fund investment

Table No. 3
channel
No. of respondent

Financial
72

bank
18

AMC
30

Percentage

72%

18%

30%

Graph No. 3

Chart Title
No. of respondent

(%)

72

30
18
72%
Financial

18%
bank

30%
AMC

Out of 120 investors 60% preferred to invest though financial advisors 25% though
AMC and 15% though bank

4. Mode of investment preferred by investors

Table No. 4
Mode of investment
No. of respondent
Percentage

One time investment

78
65%

System investment plan

42
35%

Graph No. 4

No. of respondent
One time investment

System investment plan

35%
65%

Mode of investment preferred by investor for one time investment is 65%, and for the
system investment plan is 35%.

5. Preferred portfolio by the investors

Table No.5

Portfolio
Equity
Debt
balanced

No. of investors
56
20
44

(%)
46%
17%
37%

Graph No.5

No. of investors

balanced; 37%

Equity; 47%

Debt; 17%

Out of 120 investors, 46% investors choose equity, 17% choose debt, and the rest 37%
investors choose balanced portfolio.

6. Option for getting return preferred by investors

Table No. 6
Potion
No. of investors
Percentage

Dividend payout
25
21%

Dividend reinvestment
10
8%

Growth
85
71%

Graph No.6

No. of investors
Dividend payout

Dividend reinvestment

Growth

21%
8%
71%

Out of 120 investors, 21% investors refers dividend payout, 8% investors refers dividend
reinvestment, and 71% investors refers growth.

7. Preference of investors whether to invest in sectorial fund

Table No.7
Response
Yes
No

Graph No.7

No. of respondent
25
95

Percentage
21%
79%

No. of respondent
Yes

No

21%

79%

Out of 120 investors, 79% investor says NO to invest in Sectorial fund, and remaining
21% investors says YES to invest in sectorial fund.

8. Age distribution of investors in Pune

Table No.8
Age group
No. of
investors
Percentage

Graph No.8

<=30
12

31-35
18

36-40
30

41-45
24

46-50
50

>50
16

8%

12%

20%

16%

33%

11%

No. of investors
<=30

31-35

36-40

41-45

11% 8%

33%

46-50

>50

12%
20%

16%

Out 120 investors, 8% investors are equal to or less than 30years old, 12% investors are
in between 31-35 years old, 36-40years old investors are 20%, in between 41-45 years
old investors are 16%, 33% investors are from 46-50 age group, and only 11% investors
are from age group of more than 50 years old.

9. Occupation of investors of Pune

Table No. 9
Occupation
Govt. service
Pvt. Service
Business
Agriculture
Other

Graph No. 9

No. of investors
30
45
35
04
06

Percentage
25%
38%
29%
3%
5%

No. of investors
Govt. service

Pvt. Service

Agriculture

Other
3% 5%

Business

25%

29%
38%

out of 120 investors, 25% investors are from government servant, 38% investors doing
private service, 29% investors are businessman, 3% are from agriculture department, and
5% have other occupation.

10.Investors invested in different kind of investment

Table No. 10
Kind of investment
Saving A/c
Fixed deposit
Insurance
Mutual fund
Share/debenture

Graph No. 10

No. of respondent
50
18
30
12
10

Percentage
42%
15%
25%
10%
8%

No. of respondent
Saving A/c

Fixed deposit

Mutual fund

Share/debenture

10%

Insurance

8%
42%

25%
15%

Out of 120 investors, 42% investors are from saving A/c, 15% investors are fixed deposit,
25% investors are from insurance, 10% are from mutual fund, and 8% investors are from
share and debenture.

ADVANTAGES OF A MUTUAL FUND

1. Professional Management
2. Diversification
3. Convenient Administration
4. Return Potential
5. Low Costs
6. Liquidity
7. Transparency
8. Flexibility

9. Choice of schemes
10. Tax benefits
11. Well regulated

DISADVANTAGES OF MUTUAL FUNDS

1. Professional Management- Did you notice how we qualified the advantage
of professional management with the word "theoretically"? Many investors
debate over whether or not the so-called professionals are any better than you
or I at picking stocks. Management is by no means infallible, and, even if the
fund loses money, the manager still takes his/her cut.
2. Costs - Mutual funds don't exist solely to make your life easier--all funds are
in it for a profit. The mutual fund industry is masterful at burying costs under
layers of jargon. These costs are so complicated that in this tutorial we have
devoted an entire section to the subject.
3. Dilution - It's possible to have too much diversification because funds have
smallholdings in so many different companies, high returns from a few
investments often don't make much difference on the overall return. Dilution
is also the result of a successful fund getting too big. When money pours into
funds that have had strong success, the manager often has trouble finding a
good investment for all the new money.
4. Taxes - When making decisions about your money, fund managers don't
consider your personal tax situation. For example, when a fund manager sells

a security, a capital-gain tax is triggered, which affects how profitable the

individual is from the sale. It might have been more advantageous for the
individual to defer the capital gains liability.

TYPES OF MUTUAL FUND

Wide variety of Mutual Fund Schemes exists to cater to the needs such as
financial position, risk tolerance and return expectations etc. The table below gives an
overview into the existing types of schemes in the Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.

BY STRUCTURE

Open-ended Fund/ Scheme

Close-ended Fund/ Scheme

Schemes according to Investment Objective

Growth / Equity Oriented Scheme

Income / Debt Oriented Scheme

Balanced Fund
Money Market or Liquid Fund
Other Schemes

Gilt Fund

Index Funds

Tax Saving Scheme

Brokerage commissions

MAJOR MUTUAL FUND SCHEMES OF DIFFERENT COMPANIES

There are many more schemes in the market which are playing
different roles in the market and have their substantial contribution in
different areas. Customers would prefer schemes among the various schemes
as per their needs.

1.

BIRLA SUN LIFE MUTUAL FUND

Birla Advantage Fund

Birla Dividend yield Plus
Birla Mid Cap Fund
Birla MNC Fund
Birla Infrastructure Fund
Birla Index Fund

2.

Birla Top 100 Fund

Birla Sun Life Equity Fund
Birla Sun Life Tax Relief 96
Birla Sun Life front Line Equity Fund

ICICI PRUDENTIAL MUTUAL FUND

ICICI Prudential Liquid plan

ICICI Prudential Gilt Fund
ICICI Prudential Short Term Plan
ICICI Prudential Income Plan
ICICI Prudential Tax Plan
ICICI Prudential multiplayer fund Regular Plan
ICICI Prudential Power
ICICI Prudential FMCG Fund

3. RELIANCE MUTUAL FUND

Reliance Growth Fund

Reliance vision Fund
Reliance Banking Fund
Reliance Diversified power sector Fund
Reliance Tax Saver Fund
Reliance Equity Fund
Reliance Regular Saving Fund
Reliance Long Term Equity Fund

4. HDFC MUTUAL FUND

HDFC Growth Fund

HDFC Top 200 Fund
HDFC Prudence Fund
HDFC Tax Saver fund

The Ground rules of Mutual Fund Investing

Moses gave to his followers 10 commandments that were to be followed till
eternity. The world of investments too has several ground rules meant for investors who
are novices in their own right and wish to enter the myriad world of investments. These
come in handy for there is every possibility of losing what one has if due care is not
taken.
1. Assess yourself: Self-assessment of ones needs; expectations and risk profile is
ofprime importance failing which; one will make more mistakes in putting money in right
places than otherwise. One should identify the degree of risk bearing capacity one has
and also clearly state the expectations from the investments. Irrational expectations will
only bring pain.
2. Try to understand where the money is going: It is important to identify the nature of
investment and to know if one is compatible with the investment. One can lose
substantially if one picks the wrong kind of mutual fund. In order to avoid any confusion
it is better to go through the literature such as offer document and fact sheets that mutual
fund companies provide on their funds.
3. Don't rush in picking funds, think first:One first has to decide what he wants the
money for and it is this investment goal that should be the guiding light for all
investments done. It is thus important to know the risks associated with the fund and
align it with the quantum of risk one is willing to take. One should take a look at the
portfolio of the funds for the purpose. Excessive exposure to any specific sector should
be avoided, as it will only add to the risk of the entire portfolio. Mutual funds invest with
a certain ideology such as the "Value Principle" or "Growth Philosophy".

Both have their share of critics but both philosophies work for investors of different
kinds. Identifying the proposed investment philosophy of the fund will give an insight
into the kind of risks that it shall be taking in future.
4. Invest. Don t speculate: A common investor is limited in the degree of risk that he is
willing to take. It is thus of key importance that there is thought given to the process of
investment and to the time horizon of the intended investment. One should abstain from
speculating which in other words would mean getting out of one fund and investing in
another with the intention of making quick money. One would dowell to remember that
nobody can perfectly time the market so staying invested is the best option unless there
are compelling reasons to exit.
5. Don t put all the eggs in one basket: This old age adage is of utmost importance. No
matter what the risk profile of a person is, it is always advisable to diversify the risks
associated.
So putting ones money in different asset classes is generally the best option as it
averages the risks in each category.

You can make money from a mutual fund in three ways

1) Income is earned from dividends on stocks and interest on bonds. A fund pays out
nearly all income it receives over the year to fund owners in the form of a distribution.
2) If the fund sells securities that have increased in price, the fund has a capital gain.
Most funds alsopass on these gains to investors in a distribution.
3) If fund holdings increase in price but are not sold by the fund manager, the fund's

shares increase in price. You can then sell your mutual fund shares for a profit.

FINDINGS
Most of the investors who did not invested in SBIMF due to not aware of SBIMF,
the second most due to agents advice and rest due to less return.
Out of 55 investors of SBIMF 64% have invested due to its association with the
brand SBI, 27% invested because of advisors advice and 9% due to better return.
For future investment the maximum respondents preferred Reliance mutual fund,
the second most preferred ICICI prudential, SBIMF has been preferred after them.
Most of investors had invested in Reliance or UTI mutual fund. ICICI prudential
has also good brand position among investors, SBIMF places after ICICI
prudential according to the respondents.
In Pune in the age group of 36-40 years were in numbers. The second most
investors were in the age group of 41-45 year and the least were in the age group
of below 30 years.

 In occupation group most of the investors were govt. employees, the second most
investors were private employees and the least were associated with agriculture.

SUGGESTION

Invest as much as you can in best stock funds

Dont invest anything if you dont understand.

Never buy or sell Mutual Funds solely on the basis of tips.

Look for past expense rations, portfolio turnovers, total annual returns and year to
year changes in assets.

Consider hiring a stockbroker or financial planner if you need help with your
portfolio.

Dont overlook estate planning in your investment game plan.

Buy good stock funds and stay with them for the long haul. Even professional
have trouble predicting the markets next move.

Consider efficient automatic investment plans, as offered by many fund

companies.

Remember that volatile funds might not be so bad every time when held in
appropriate proportions within a broad portfolio.

Check the foreign weightings of your domestic stock funds.

Dont expect international diversification to reduce your portfolios volatility all

the time.

CONCLUSION

After studying & analyzing different mutual fund schemes the following conclusions can
bemade.Winning with stocks means performing at least as well as a major market indexover the
long haul. If one can sidestep the common investor mistakes, then one has taken the first and
biggest step in the right direction. Diversified stock portfolios have offered superior long term
inflation protection. Equities are especially important today with people living longer and retiring
early. To understand stock funds, one needs to be familiar with the characteristics of the different
types of companies they hold. Portfolio managers have done a fairly good job in generating
positive returns. It may lead to gain investors confidence. Thus over all good performance of the
funds is assign of development in new era in capital market. On the basis of the analysis the

performance of the schemes during the study period can be concluded to be good. Those who
want to eliminate the risk element but still want to reap a better then it would be advisable to go
for debt or arbitrage schemes which ensure both safety and returns.

I got the training regarding the basics of Share Market.

Understanding & Executing the back office work.

Learning about capital markets, Share trading, IPOs, Mutual Funds & other concepts
etc.

I also got the knowledge about Portfolio Management that how would they
manage their client Portfolio.

BIBLIOGRAPHY

1. From the following websites:

www.mutualfundsindia.com

http://mutualfundsindia.com/fund_portfolio.asp

www.amfiindia.com

http://amfiindia.com/showhtml.asp?page=mfconcept

www.investmentzsmartindia.com

http://investsmartindia.com/ilfs-webapp/Search.do?
reqCode=searchAction&schName=mutual%20Fund&selectOption=Test&page=1

2. Books and magazines

Security analysis & Portfolio management by Prasanna Chandra

Portfolio Management by S. Kevin

ABBREVIATIONS
1) MF Mutual Fund
2) AMC Asset Management Company
3) SEBI Securities Exchange Board Of India
4) DP Depository Participants
5) PPF Public Provident Fund
6) NAV Net Asset Value
7) HNIs High Net Worth Individuals
8) CRM Customer Relationship Management
9) AUM Asset Under Management
10) SIP Systematic Investment Plan

11) STP Systematic Transfer Plan

12) SWP Systematic Withdrawal Plan

QUESTIONNAIRE

Q1. What is your Occupation?

a. Private Job
b. Govt. Job
c. Business
d. Retired
Q2. What is your annual Income ?
a. Less than 1.5 Lac
b. 1.5 Lac to 2.5 Lac
c. 3.5 Lac and 5
d. 5 Lac and Above
Q3. What do you consider the most important parameters while investing?
a. Returns
b. Lower Risk Factor
c. Credit Rating

d. Inflation
e. Company
Q4. Reason for Preferring XYZ Mutual Funds ?
a. Returns
b. Lower Risk
c. Credit Rating
d. Inflation
e. Company
f. Lock in Period
Q5. In which type of mutual fund schemes you have invested ?
a. Debt Schemes
b. Equity based Schemes
Q6. You have invested for long term or short term in XYZ Mutual Funds?
a. Long Term
b. Short Term
Q7. Which type of schemes do you prefer to invest ?
a. Close Ended
b. Open Ended
Q8. How do you rate XYZ Mutual Fund on the basis of returns?
a. Highly Satisfactory
b. Satisfactory
c. Average
e. Dissatisfactory
f. Highly Dissatisfactory
Q9. How do you rate XYZ Mutual Fund on the basis of Risk exposure?
a. Highly Satisfactory
b. Satisfactory
c. Average
e. Dissatisfactory
f. Highly Dissatisfactory
Q10. How do you rate XYZ Mutual Funds on the basis of Fund Portfolio?
a. Highly Satisfactory
b. Satisfactory
c. Average
e. Dissatisfactory
f. Highly Dissatisfactory

Q11. How do you rate XYZ Mutual Funds on the basis of Repurchase Price?
a. Highly Satisfactory
b. Satisfactory
c. Average
e. Dissatisfactory
f. Highly Dissatisfactory
Q12. Your overall experience with XYZ Mutual Funds ?
a. Highly Satisfactory
b. Satisfactory
c. Average
e. Dissatisfactory
f. Highly Dissatisfactory
Q13. Do you have Plans to reinvest in mutual fund schemes of XYZ Mutual Funds?
a. Yes
b. No