A Study on Investors Behavior Towards Mutual Fund of Corporate Employees in Ahmedabad City

A study on Investors Behaviour towards Mutual Fund of Corporate Employees in Ahmedabad city

1 MBA (FINANCIAL SERVICES) SEM-II MAY-JUNE 2014

A

STUDY ON

INVESTORS BEHAVIOUR TOWARDS MUTUAL FUND OF

CORPORATE EMPLOYEES IN AHMEDABAD CITY

SUBMITTED TO:

CENTER FOR MANAGEMENT STUDIES

GANPAT UNIVERSITY

SUBMITTED BY:

RAHUL NISARTA (ROLL NO: 09)

MBA (FINANCIAL SERVICES) SEM-II

MAY-JUNE 2014



Certificate from the Faculty Guide

This is to certify that the dissertation submitted in partial fulfilment for the award of MBA

(FS) of Center For Management Study, Ganpat University is a result of the bonafide research

work carried out by Mr RAHUL NISARTA under my supervision and guidance. No part of

this report has been submitted for award of any other degree, diploma, fellowship or other

similar titles or prizes. The work has also not been published in any journals/Magazines.

Signature of the Faculty Guide: ______________

Name of Faculty Guide: Prof. Mittal Dattani



Students Declaration

I hereby declare that this report, submitted in partial fulfilment of the requirement for the

award for the MBA (FS), to Center For Management Study, Ganpat University is my original

work and not used anywhere for award of any degree or diploma or fellowship or for similar

titles or prizes.

I further certify that without any objection or condition subject to the permission of the

company where I did my summer project, I grant the rights to Center For Management Study,

Ganpat University to publish any part of the project if they deem fit in journals/Magazines

and newspapers etc. without my permission.

--------------------------------- Signature

Name: RAHUL NISARTA

Class: MBA (FS SEM- II)

Roll No: 09

Batch: 2013-2015



Table of content

Sr no Particular Page no

Preface I

Acknowledgement II

Executive summary III

1 Introduction 9

1.1 History of mutual fund 10

1.2 Mutual fund: An overview 12

1.3 Characteristics 13

1.4 Organisation structure of mutual fund 14

1.5 Types of mutual fund 16

1.6 Advantages of mutual fund 18

1.7 Disadvantage of mutual fund 20

1.8 Net asset value 22

1.9 Company profile 25

2 Literature Review 29

3 Research methodology 37

3.1 Topic 38

3.2 Objective 38

3.3 Research design 38



4 Data Analysis 41

4.1 Frequency distribution 41

Fig 1. Invest in mutual fund 42

Fig 2. Occupation 43

Fig 2. Age 44

Fig 3. Annual income 45

Fig 4. Important parameter while investing 46

Fig 5. Reason for preferring mutual fund 47

Fig 6. Type of mutual fund invested 48

Fig 7. Investment term 49

Fig 8. Schemes prefer to Invest 50

4.2 Table of Mean 51

5 Research Findings 52

6 Suggestion to company 54

7 Conclusion 57

8 Bibliography 59

9 Annexure 61



PREFACE

In the era of rapid industrialization and technological innovation which has made Gujarat

emerge as industrial state with newer avenues and opportunities.

As per university, it is must for the student of M.B.A.F.S. Sem.II, to prepare report on study

by visiting a particular industry to acquire as well as theoretical knowledge pertaining to that

industry in different aspect about its internal environment.

We have put up our best effort and enumerated every possible information after

observing the activities carried over there, to make this report a satisfactory report

It was a great opportunity and memorable experience interacting with people working there,

collecting information regarding their job and acquiring knowledge.

We have tried to make this report at the best informative report.



ACKNOWLEDGEMENT

I am very happy for getting the chance of corporate training. It was like to windows to

business environment. I am thankful to coordinator giving me the golden chance of

corporate training. For my report writing on corporate, guidance was necessary Mr. Mehul

shah.

I am greatly thankful to Unit Manager MR. HARDIK TRIVEDI of Money plant

Finemart Pvt. Ltd. at Ahmedabad. For giving constant of corporate Training in their

organization. I can never forget the co-operation and information provided by all

Information. These people guided me and my parents in very friendly manner in their

organization. I have taken great care in preparing this project work. If you find any error,

Please pardon me.

Thanking you,



EXECUTIVE SUMMARY

The project titled Investors behaviour towards mutual fund of corporate

employees being carried out for Money Plant Finemart PVT. LTD. Today an investor

is interested in tracking the value of his investments, whether he invests directly in the

market or indirectly through Mutual Funds. This dynamic change has taken place because

of a number of reasons. With globalization and the growing competition in the

investments opportunity available he would have to make guided and rational decisions on

whether he gets an acceptable return on his investments in the funds selected by him, or if

he needs to switch to another fund.

In order to achieve such an end the investor has to understand the basis of

appropriate preference measurement for the fund, and acquire the basic knowledge of the

different measures of evaluating the performance of the fund. Only then would he be in a

position to judge correctly whether his fund is performing well or not, and make the right

decision.

This project is undertaken to help the investors in tracking the performance of

their investments in Mutual Funds and has been carried out with the objective of giving

performance analysis of Mutual Fund.

The methodology for carrying out the project was very simple that is through

primary data and secondary data obtained through various mediums like of the funds, the

Internet, direct contact with employees of corporate, businessmen, retired person etc. The

analysis of Mutual Funds has been done with respect to its various parameters. I hope

Money Plant Finemart PVT. LTD., Ahmedabad will recognize this as well as take more

references from this project report.



CHAPTER 1



History of mutual fund:

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 of India. The history of mutual

funds in India can be broadly divided into four distinct phases

First Phase - 1964-1987

Unit Trust of India (UTI) was established in 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 UTI 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.

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 number of mutual fund houses went on increasing, with many foreign mutual funds

setting up funds in India and also the industry has witnessed several mergers and acquisitions.

As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805

crores. The Unit Trust of India with Rs. 44,541 crores of assets under management was way

ahead of other mutual funds.

Fourth Phase - since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was

bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of

India with assets under management of Rs. 29,835 crores as at the end of January 2003,

representing broadly, the assets of US 64 scheme, assured return and certain other schemes.

The Specified Undertaking of Unit Trust of India, functioning under an administrator and

under the rules framed by Government of India and does not come under the purview of the

Mutual Fund Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered

with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the

erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under

management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual

Fund Regulations, and with recent mergers taking place among different private sector funds,

the mutual fund industry has entered its current phase of consolidation and growth.

The graph indicates the growth of assets over the years

.



MUTUAL FUND: AN OVERVIEW

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 invested by the fund manager

in different types of securities depending upon the objective of the scheme. These could

range from shares to debentures to money market instruments. The income earned through

these investments and the capital appreciations realized by the scheme are shared by its

unit holders in proportion to the number of units owned by them (pro rata). Thus a Mutual

Fund is the most suitable investment for the common strategy.

A mutual fund is the ideal investment vehicle for todays complex and modern financial

scenario. Markets for equity shares, bonds and complex and modern financial scenario.

Markets for equity shares, bonds and other fixed income instruments, real estate,

derivatives and other assets have become mature and information driven. Price changes in

these assets are driven by global events occurring in faraway places. A typical individual

is unlikely to have the knowledge, skills, inclination and time to keep track of events,

understand their implications and act speedily. An individual also finds it difficult to keep

track of ownership of his assets, investments, brokerage dues and bank transactions etc.

A mutual fund is the answer to all there situations. It appoints professionally qualified and

experienced staff that manages each of these functions on a full time basis. The large pool

of money collected in the fund allows it to hire such staff at a very low cost to each

investor. In effect, the mutual fund vehicle exploits economies of scale in all three areas

research, investments and transaction processing. While the concept of individuals coming

together to invest money collectively is not new, the mutual fund in its present form is a

20th century phenomenon. In fact, mutual funds gained popularity only after the Second

World War. Globally, there are thousands of firms offering tens of thousands of mutual

funds with different investment objectives. Today, mutual funds collectively manage

almost as much as or more money as compared to banks.

A draft offer document is to be prepared at the time of launching the fund. Typically, it pre

specifies the investment objectives of the fund, the risk associated, the costs involved in

the process and the broad rules for entry into and exit from the fund and other areas of

operation. In India, as in most countries, these sponsors need approval from a regulator,



SEBI (Securities exchange Board of India) in our case. SEBI looks at track records of the

sponsor and its financial strength in granting approval to the fund for commencing

operations.

A sponsor then hires an asset management company to invest the funds according to the

investment objective. It also hires another entity to be the custodian of the assets of the

fund and perhaps a third one to handle registry work for the unit holders (subscribers) of

the fund.

In the Indian context, the sponsors promote the Asset Management Company also, in

which it holds a majority stake. In many cases a sponsor can hold a 100% stake in the

Asset Management Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla

Sun Life Asset Management Company Ltd., which has floated different mutual funds

schemes and also acts as an asset manager for the funds collected under the schemes.

CHARACTERISTICS

A Mutual Fund actually belongs to the investors who have pooled their fund.

A Mutual Fund is managed by investment Professional and other service

providers, who earn fee for their service, from the fund.

The pod of fund is invested in a portfolio of marketable investment. The value o

the portfolio is updated every day.

The investors share in the fund is denominated by units. The value of the units

changes with change in the portfolios value, every day. The value of one unit of

investment is called the Net Asset Value or NAV.



ORGANISATION STRUCTURE OF MUTUAL FUND

Structure of the Indian mutual fund industry

The Indian mutual fund industry is dominated by the Unit Trust of India which has a total

corpus of Rs700bn collected from more than 20 million investors. The UTI has many

funds/schemes in all categories ie equity, balanced, income etc with some being open-

ended and some being closed-ended. The Unit Scheme 1964 commonly referred to as US

64, which is a balanced fund, is the biggest scheme with a corpus of about Rs200bn. UTI

was floated by financial institutions and is governed by a special act of Parliament. Most

of its investors believe that the UTI is government owned and controlled, which, while

legally incorrect, is true for all practical purposes.

The second largest categories of mutual funds are the ones floated by nationalized banks.

Canbank Asset Management floated by Canara Bank and SBI Funds Management floated

by the State Bank of India are the largest of these. GIC AMC floated by General Insurance

Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the other

prominent ones. The aggregate corpus of funds managed by this category of AMCs is

about Rs150bn.



The third largest categories of mutual funds are the ones floated by the private sector and

by foreign asset management companies. The largest of these are Prudential ICICI AMC

and Birla Sun Life AMC. The aggregate corpus of assets managed by this category of

AMCs is in excess of Rs250bn

Recent trends in mutual fund industry

The most important trend in the mutual fund industry is the aggressive expansion of the

foreign owned mutual fund companies and the decline of the companies floated by

nationalized banks and smaller private sector players.

Many nationalized banks got into the mutual fund business in the early nineties and got off

to a good start due to the stock market boom prevailing then. These banks did not really

understand the mutual fund business and they just viewed it as another kind of banking

activity. Few hired specialized staff and generally chose to transfer staff from the parent

organizations. The performance of most of the schemes floated by these funds was not

good. Some schemes had offered guaranteed returns and their parent organizations had to

bail out these AMCs by paying large amounts of money as the difference between the

guaranteed and actual returns. The service levels were also very bad. Most of these AMCs

have not been able to retain staff, float new schemes etc. and it is doubtful whether,

barring a few exceptions, they have serious plans of continuing the activity in a major

way.

The experience of some of the AMCs floated by private sector Indian companies was also

very similar. They quickly realized that the AMC business is a business, which makes

money in the long term and requires deep-pocketed support in the intermediate years.

Some have sold out to foreign owned companies, some have merged with others and there

is general restructuring going on.

The foreign owned companies have deep pockets and have come in here with the

expectation of a long haul. They can be credited with introducing many new practices such

as new product innovation, sharp improvement in service standards and disclosure, usage

of technology, broker education and support etc. In fact, they have forced the industry to

upgrade itself and service levels of organizations like UTI have improved dramatically in

the last few years in response to the competition provided by these.



TYPES OF MUTUAL FUNDS

Mutual fund schemes may be classified on the basis of its structure and its investment

objective.

BY STRUCTURE:

OPEN ENDED FUNDS

An open-end fund is one that is available for subscription all through the year. These do

not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value

(NAV) related prices. The key feature of open-end schemes is liquidity.

CLOSED-ENDED FUNDS

A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15

years. The fund is open for subscription only during a specified period. Investors can

invest in the scheme at the time of the initial public issue and thereafter they can buy or

sell the units of the scheme on the stock exchanges where they are listed. In order to

provide an exit route to the investors, some close-ended funds give an option of selling

back the units to the Mutual Fund through periodic repurchase at NAV related prices.

SEBI Regulations stipulate that at least one of the two exit routes is provided to the

investor.



INTERVAL FUNDS

Interval funds combine the features of open-ended and close-ended schemes. They are

open for sale or redemption during pre-determined intervals at NAV related prices.

BY INVESTMENT OBJECTIVE:

GROWTH FUNDS

The aim of growth funds is to provide capital appreciation over the medium to long-term.

Such schemes normally invest a majority of their corpus in equities. It has been proven

that returns from stocks, have outperformed most other kind of investments held over the

long term. Growth schemes are ideal for investors having a long-term outlook seeking

growth over a period of time.

INCOME FUNDS

The aim of income funds is to provide regular and steady income to investors. Such

schemes generally invest in fixed income securities such as bonds, corporate debentures

and Government securities. Income Funds are ideal for capital stability and regular

income.

BALANCED FUNDS

The aim of balanced funds is to provide both growth and regular income. Such schemes

periodically distribute a part of their earning and invest both in equities and fixed income

securities in the proportion indicated in their offer documents. In a rising stock market, the

NAV of these schemes may not normally keep pace, or fall equally when the market falls.

These are ideal for investors looking for a combination of income and moderate growth.



ADVANTAGES OF MUTUAL FUND

Professional Management:

Mutual Funds provide the services of experienced and skilled professionals, backed by a

dedicated investment research team that analyses the performance and prospects of

companies and selects suitable investments to achieve the objectives of the scheme.

Diversification:

Mutual Funds invest in a number of companies across a broad cross-section of industries

and sectors. This diversification reduces the risk because seldom do all stocks decline at

the same time and in the same proportion. You achieve this diversification through a

Mutual Fund with far less money than you can do on your own.

Convenient Administration:

Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such

as bad deliveries, delayed payments and follow up with brokers and companies. Mutual

Funds save your time and make investing easy and convenient.

Return Potential:

Over a medium to long-term, Mutual Funds have the potential to provide a higher return

as they invest in a diversified basket of selected securities.

Low Costs:

Mutual Funds are a relatively less expensive way to invest compared to directly investing

in the capital markets because the benefits of scale in brokerage, custodial and other fees

translate into lower costs for investors.

Liquidity:

In open-end schemes, the investor gets the money back promptly at net asset value related

prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock



exchange at the prevailing market price or the investor can avail of the facility of direct

repurchase at NAV related prices by the Mutual Fund.

Transparency:

You get regular information on the value of your investment in addition to disclosure on

the specific investments made by your scheme, the proportion invested in each class of

assets and the fund managers investment strategy and outlook.

Flexibility:

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.

Affordability:

Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual

fund because of its large of its large corpus allows even a small investor to take the benefit

of its investment strategy.

Choice of Scheme:

Mutual Fund offers a family of schemes to suit your varying needs over a lifetime.

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.



DISADVATAGE OF MUTUAL FUND:

No Guarantees:

No investment is risk free. If the entire stock market declines in value, the value of mutual

fund shares will go down as well, no matter how balanced the portfolio. Investors

encounter fewer risks when they invest in mutual funds than when they buy and sell stocks

on their own. However, anyone who invests through a mutual fund runs the risk of losing

money.

Fees and Commissions:

All funds charge administrative fees to cover their day-to-day expenses. Some funds also

charge sales commissions or loads to compensate brokers, financial consultants, or

financial planners. Even if you dont use a broker or other financial advisor, you will pay a

sales commission if you buy shares in a Load Fund.

Taxes:

During a typical year, most actively managed mutual funds sell anywhere from 20 to 70

percent of the securities in their portfolios. If your fund makes a profit on its sales, you

will pay taxes on the income you receive, even if you reinvest the money you made.

Management Risk:

When you invest in a mutual fund, you depend on the funds manager to make the right

decisions regarding the funds portfolio. If the manager does not perform as well as you

had hoped, you might not make as much money on your investment as you expected. Of

course, if you invest in Index Funds, you forego management risk, because these funds do

not employ managers.

THE RISK-RETURN TRADE-OFF:

The most important relationship to understand is the risk-return trade-off. Higher the risk

greater the return/loss and lower the risk lesser the return/loss. Hence it is up to you, the



investor to decide how much risk you are willing to take. In order to do this you must first

be aware of the different type of risk involved with your investment decision.

MARKET RISK:

Sometime prices and yield of all securities rise and fall. Broad outside influences affecting

the market in general lead to this. This is true, may it be big corporation or smaller mid-

sized companies. This is known as Market Risk. A Systematic Investment Plan(SIP)that

works on the concept of Rupee Cost Averaging(RCA)might help mitigate this risk

CREDIT RISK:

The debt servicing ability (may it be interest payment or repayment of principal) of a

company through its cash flow determines the Credit Risk faced by you. This credit risk is

measured by independent rating agencies like CRISIL who rate companies and their paper.

An AAA rating is considered the safest whereas a D rating is considered poor credit

quality. A well-diversified portfolio might help mitigate this risk.

INFLATION RISK:

Things you hear people talk about: Rs.100 today is worth more than Rs.100 tomorrow.

Remember the time when a bus ride costed 50 paisa? Mehangai Ka Jamana Hai. The

root cause, Inflation. Inflation is the loss of purchasing power over time. A lot of times

people make conservative investment decision to protect their capital but end up with a

sum of money that can buy less than what the principal could at the time of the

investment. This happens when inflation grows faster than the return on your investment.

A well diversified portfolio with some investment in equities might help mitigate this risk.

INTEREST RATE RISK:

In a free market economy interest rates are difficult if not impossible to predict. Changes

rates affect the prices of bond as well as equities. If interest rates raise the prices of bond

fall and vice versa. Equity might be negatively affected as well in a rising interest rate

environment. A well-diversified portfolio might help mitigate this risk.



POLITICAL/GOVERNMENT POLICY RISK:

Changes in government policy and decision can changes the investment environment.

They can create a favourable environment for investment or vice versa.

LIQUIDITY RISK:

Liquidity risk a rise when it become difficult to the security that one has purchase

Liquidity risk can be partly mitigated by diversification, staggering of maturity as well as

internal risk control that leant towards purchase of liquid security.

NET ASSET VALUE (NAV)

The net asset value of the fund is the cumulative market value of the assets fund net of its

liabilities. In other words, if the fund is dissolved or liquidated, by selling off all the assets

in the fund, this is the amount that the shareholders would collectively own. This gives

rise to the concept of net asset value per unit, which is the value, represented by the

ownership of one unit in the fund. It is calculated simply by dividing the net asset value of

the fund by the number of units. However, most people refer loosely to the NAV per unit

as NAV, ignoring the "per unit". We also abide by the same convention.



Calculation of NAV

The most important part of the calculation is the valuation of the assets owned by the fund.

Once it is calculated, the NAV is simply the net value of assets divided by the number of

units outstanding. The detailed methodology for the calculation of the asset value is given

below.

Asset value is equal to

Sum of market value of shares/debentures

+ Liquid assets/cash held, if any

+ Dividends/interest accrued

Amount due on unpaid assets

Expenses accrued but not paid other liabilities

Net Asset Value=-----------------------------------------------------------------

No of units outstanding of the scheme

Details on the above items

For liquid shares/debentures, valuation is done on the basis of the last or closing market

price on the principal exchange where the security is traded.

For illiquid and unlisted and/or thinly traded shares/debentures, the value has to be

estimated. For shares, this could be the book value per share or an estimated market price

if suitable benchmarks are available. For debentures and bonds, value is estimated on the

basis of yields of comparable liquid securities after adjusting for illiquidity. The value of

fixed interest bearing securities moves in a direction opposite to interest rate changes

Valuation of debentures and bonds is a big problem since most of them are unlisted and

thinly traded. This gives considerable leeway to the AMCs on valuation and some of the

AMCs are believed to take advantage of this and adopt flexible valuation policies

depending on the situation.

Interest is payable on debentures/bonds on a periodic basis say every 6 months. But, with

every passing day, interest is said to be accrued, at the daily interest rate, which is



calculated by dividing the periodic interest payment with the number of days in each

period. Thus, accrued interest on a particular day is equal to the daily interest rate

multiplied by the number of days since the last interest payment date.

Usually, dividends are proposed at the time of the Annual General meeting and become

due on the record date. There is a gap between the dates on which it becomes due and the

actual payment date. In the intermediate period, it is deemed to be "accrued".

Expenses including management fees, custody charges etc. are calculated on a daily basis.



Company profile

Money Plant Finemart Pvt. Ltd.



About Company

Money Plant is born to help its investors in achieving their financial goals and

accomplishment of dreams by providing unbiased appropriate advise at right time to become

'Paisa nu Zaad' in true sense.

In todays fast lifestyle investor has very little time to manage his portfolio and monitor it on

regular basis. He is totally confused between current expenses and savings for bright future.

His situation is like person standing on crossroad and not aware about the direction. He is

afraid of choosing wrong path which will lead him years back in personal life and will miss

golden opportunities of life. So our primary role is to identifying financial goal and analysis

of present financial situation. Based on it we will indicate the path and speed at which he can

travel the journey successfully to accomplish dreams and needs.

Money Plant has Strong team and processes to cater Best Sales and after sales service.

Vision : Har Sapna Sakaar Kare

Mission : Best After Sales Service

Technology : Every important data on single click

USP : Every advice will be minutised

Methodology : Scientific Method for identifying Risk to Return Balance with financial

for Advise goals



Benefits : Predefined additional Service criteria for Silver & Gold Clients

Service Criteria Silver Gold

DNA Report and Budgeting Yes Yes

360* Financial Planning Yes Yes

Financial Check up Yes Yes

Policy Audit Yes Yes

Service @ Home Yes Yes

Web Portal* Yes Yes

Relationship Manager Dedicated RM Dedicated RM

Product Updation Telephonic/ Mail Telephonic/ Mail

Knowledge Updation Client Meet Client Meet

Portfolio Review Yearly Half Yearly

Mehul Shah (Director)

He was working as senior manager in Multi National Company for 5 years for customers

awareness for financial planning. He is very passionate about wealth creation of investors by

empowering and educating them through genuine advice. He has conducted more than 170

public meetings for financial awareness and managed more than 35000 investors through able

team.

Mihir Dhruv (Director)

He has reach experience of 17 years in financial industry. He was catering services to more

than 2000 investors. He is looking after customer satisfaction and best after sales practice at

Money Plant



Dr B T Patel

I am Doctor by Profession and doing my practice since 34 years. I am very happy doing this

work because it gives me immense pleasure to service the society and proving them solutions

for problems. This profession has provided me job satisfaction and fame in the society. But

when I see towards the financial industry like you I am also disappointed by the response of

the agents. I feel that they are representing their companies and not the customers whose hard

earned money they are managing. Being an investor, it is my experience and observation that

more clarity and after sales service is required from the advisors and trust must be created

between investor and advisor to fulfill their financial goals.

I know both the directors of Money Plant Finmart Pvt Ltd since long time. They are working

in financial field and taking the feedback of various investors to launch the better services. I

was very happy when they shared their concept with me about offering solutions to investors

by empowering them and doing proper financial planning. People say Health is Wealth but

I must say if you dont have enough wealth it is difficult to manage the health. All the best to

team Money Plant to complete the mission of investors Har Sapna Sakar Kare



CHAPTER 2

LITREATURE REVIEW



LITERATURE REVIEW

According to the study conducted by "K.Lakshmana rao " "A Study on investors behaviour towards

Mutual fund of corporate employees " in participation in JOURNAL ON BANKING FINANCIAL SERVICES

& INSURANCE Research.

Authors Rajeswari and Ramamoorthy (2001)1 have conducted the study titled "An

Empirical Study On Factors Influencing The Mutual Fund ", to understand the factors

influencing the fund selection behaviour of 350 mutual fund investors in order to provide

some meaningful inferences for Asset Management Companies(AMC) to innovatively

design the products. The analysis was done on the basis of product qualities, fund sponsor

qualities and investor services using questions framed on a five point Likert scale. The

evaluation was done by factor analysis and principal component analysis to arrive at the

findings of the study which were as follows: the most important product quality was the

performance of the fund followed by brand name of the scheme; sponsor related factor

that given more importance by the investor was the expertise of the sponsor in managing

money and finally the investor service that was considered important was the disclosures

on investment objectives, methods and periodicity of valuation in advertisements.

Singh and Vanita (2002)2 in the paper "Mutual Fund Investors' Perceptions and

Preferences-A Survey" have examined the investors' preferences and perception towards

mutual fund investments by conducted a survey of 150 respondents in the city of Delhi.

The study has investigated in the following research issues: 1) the basic objectives form

Vestments and average time horizon; 2) investment experiences; 3) risk, return, safety

and diversification; 4) preferences of financial assets and investment schemes of mutual

funds. The findings of the study were that the investors' preferred to invest in public

sector mutual funds with an investment objective of getting tax exemptions and stayed

invested for a period of 3-5 years and the investors evaluated past performance. The study

further concludes by stating that majority of the investors were dissatisfied with the

performance of their mutual fund and belonged to the category who held growth schemes.

King (2002)3 in the study titled "Mutual Funds: Investment of Choice for individual

investors?" has highlighted the emergence of products like exchange traded funds, hedge

funds, managed accounts etc. which offer competition to mutual funds. The paper further

discusses that the introduction of these products will see .major structural changes in

financial system as there will be consolidation of position by various players resulting in

reduced expense ratios, lower costs and greater tax efficiency for the investor.



Sankaran (2004)4 in the article "Mutual Funds: Can You Afford to ignore them?"

provides an enhanced understanding of the concept of mutual fund, types of asset classes

for investment, classification of schemes, benefits and disadvantages of investing in

mutual funds. The author proposes that the future direction for investors will be to invest

in pensionfunds, as government is envisaging a policy to cover all kinds of investors. The

funds will cater to low risk taking investor with a long term investment horizon and will

be a tough competitor for mutual funds in future. The author is of the opinion that mutual

fund industry will continue to grow in spite of competition and will be propelled in the

right direction because of the investor friendly financial markets.

Gupta and Gupta (2004)5 in the paper "Performance Evaluation of Select Indian Mutual

Fund Schemes: An Empirical Study", have studied the performance of 57 growth

schemes using the Net Asset Values for the period April 1999 to March 2003. The paper

used performance evaluation measures of Sharpe, Jensen, Trey nor and Fama to arrive at

the finding that some funds performed better than the market because only few managers

had the stock selection skills and as a result the funds were exposed to large diversifiable

risk. Sondhi and Jain (200S), in the research paper titled "Financial Management of

Private and Public Equity Mutual Funds in India: An Analysis of Profitability", have

examined the performance of equity mutual funds classified on the basis of public sector

and private sector. The authors have studied 36 equity mutual funds comprising of 17

companies from public sector and 19 companies from private sector drawn from 21 asset

management companies. The paper evaluated the performance by comparing the returns

to bench mark indices of Nifty and Sensex and found that the returns generated by private

sector and public sector mutual funds are very inferior to market returns.

Another finding is that the private sector Singh and Chander (2004)6 in the article "An

Empirical Analysis of Perceptions of Investors towards Mutual Funds" have conducted

research by examining 400 investors in major cities of Punjab, Delhi and Mumbai by

administering a Questionnaire having various parameters of perceptions of investors

towards mutual fund. Factor analysis was used to find the significant factors affecting

perception of investors. The research was done in two parts. The first is to find

preferences and perception of mutual fund and second was to find reasons for investors

withdrawing investments from mutual funds. The study established that middle class

salaried investors and professionals perfected to have disclosure of net asset value on a

day today basis and wanted to invest in mutual funds in order to get higher tax rebates.

Further it is evidenced that small investors perceived mutual funds to be better investment

alternative and public sector investments to be less risky: The study further revealed that



the investor did not have confidence on the management of funds and regulators of the

market and cited these as reasons for withdrawing from the mutual fund investment.

Manjesh (2005)6 in article titled "Money Market Mutual Funds (MMMFs): A Macro

Perspective" has elucidated the origin, features and advantages of MMMFs as to being a

very viable option for investment for the retail investor as Money Markets offer superior

returns in comparison with bank deposits, are highly liquid at relatively lower risk for

short term funds. The paper focuses on the advantages of MMMF investment for a retail

investor and discusses the problems in penetration of MMMFs for the retail investor in

India as it is obstructed by perceived conflict of interest by the regulators (RBI and SEBI)

in the matter of control of MMMFs, lack of Mutual Funds points of contact across the

country, the reliance of Mutual Fund industry on corporate investment and structural

constraints. Bodla and Garg

(2007)7 in the research work namely "Performance of Mutual Funds in India- An

Empirical Study of Growth Schemes" have analyzed 24 growth schemes on the basis of

simple random sampling technique. The reference period of the study is January 1997.

December 2004. The monthly net asset values have been considered for the study.

According to the study conducted by "SINDHU.K.P and Dr. S.RAJITHA KUMAR" "A Study on

investors behaviour towards Mutual fund of corporate employees " in participation in . International

Journal of Management (IJM)

A review of theoretical and empirical literature pertaining to the topic of the study is an

integral part of any research work. Hence, an attempt has been made here to review

various studies relating to investors behaviour, attitudes on characteristics of mutual

funds as reported by experts, professionals and researchers at national and international

level. This will help to find out new area hitherto unexplored and to study them in depth.

Capon, Fitzsimons, and Weingarten (1994) found out that consumers use the information

on past performance, safety , amount of sale of charge , management fee, fund manager

reputation, fund family etc. for mutual fund purchase decision. The differences between

affluent and typical were that.

Saibaba and Vipparthi (2012) conducted a study on perceptions of investors on mutual

funds. The study revealed that the mutual fund business in Warangal city was in the

growth stage. Majority of the investors had stated that lack of knowledge as the primary

reason for not investing in mutual funds. Diversification of portfolio, minimization of

risk, grater tax benefits were the top most factors that motivate investor to invest in

mutual funds.



Ajaz and Gupta (2012) investigated the preferences of investors towards mutual fund

schemes. The primary data was collected across the states of Jammu and Kashmir and

Punjab. Various statistical tools were applied to the data so collected. The findings of the

study revealed that investment returns, perception of investors, information sources,

investors valuation, investors objectives and investments decisions have significance

impact on retail investors preferences.

According to the study conducted by "Dr.Hayat M.Awan and Shanza Arshad" "A Study on investors

behaviour towards Mutual fund of corporate employees " in participation in INTERDISCIPLINARY

JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS.

The proliferation of mutual funds has made it a challenge for investors to select a right

fund to invest. In response to this many magazines and newspapers are available to assist

the investor to that past performance is not only the guarantee of future return.

There are other factors that affects on decision making, but investors make cognitive

errors while selecting funds . Walia and Kiran (2009) conducted a research on investors

risk perception towards the mutual fund services. In this study they identified

investors expectations and parameters that caused dissatisfaction . In this study

innovation of mutual funds portfolio are also highlighted that these innovations should be

according to investors expectations. Major finding of this study is that investors wants

innovative products and wants to add quality in existing services. Research findings of

both Ippolito and Bogle(1992 cited in Ranganathan,p.3) showed that investor selects

funds on basis of past performance of funds and investor s spends more money on

winning funds than they flows out of losing funds.Lu Zheng (1998 cited in Ranganathan,

p.3) studied the fund selection ability of investors and his findings showed that

investors takes investment decisions on basis of short-term future performance of

funds and mostly use fund specific information while taking investment decisions

regarding mutual funds. Research conducted by Madhusudhan V.Jambodekar (1996 cited

in Ranganathan, p.3) showed that investors preferred income funds over growth funds,

investor give more importance to these factors while buying funds i.e. safety of principal,

liquidity, capital appreciation. Findings of the research showed that newspaper and

magazines are major source from which investors got information about funds. This

study also showed that investor services are also major contributing factors for

investors while selecting the fund.

Research conducted by Rajeswari and Ramamoorthy (2001 cited in Rao, 2011) on

An Empirical study on factors influencing the mutual fund/scheme selection by

retail investors. The results of study revealed that among product qualities the



most important factor was performance of the fund followed by brand name of scheme;

among sponsor related factor the most importance factor was expertise the sponsor by

managing money and in customer services the most importance factor was disclosure

on investment objective the second important was methods and periodicity of

valuation in advertisements.Donnor and Oxenstierna (2007) in their thesis conducted

on the factors that investor value while choosing mutual fund on Swedish market. It

is founded that company related factors i.e. reputation and availability is more valued

by inexperienced investors because they lack necessary knowledge about complex

financial products. But experienced investors value fund specific attributes and

demands good presence of company in market in order to recognize it.

Rao (2011) conducted study on Analysis of individual investor behavior towards Mutual

Fund Scheme. In this study author presents mutual fund investor awareness and adoption

of different schemes with educational level. The research findings showed that with

increased level of education is linked with greater risk tolerance. This tends to support

the hypothesis developed in previous researches i.e. positive relationship exists between

educational attainment and financial risk tolerance.Lewellen, Lease and Schlarbaum(cited

in Nagy and Obenberger ,1994) conducted the research on demographic basis i.e. age,

gender ,income and education affects investor preferences for overall return, capital

gain and dividend yield.Barnewell (cited in Nagy and Obenberger ,1994) finds that

individual investor behavior can be predicted by occupation, life style and

riskaversion. Warren et al. founded that individual investment choice based upon

life style and demographic attributes.

According to Ranganathan (2006) mostly in financial literature it is considered that

investors are rational. But that is not the case the investors behaviour is dynamic factor,

which is based upon belief, perceptions and expectations. Investor behaviour changes

with the time period even if the variables are constant. Proponents of behavioural finance

say that investors are not always rational but rather they are human. Muhammad wrote a

paper on is the behaviour of individual investor is rational In his paper he highlighted

that despite the traditional assumption of finance with the rational investor behaviour

there are some behavioural traits; perception and more importantly psychological factor

sharpen the investor behaviour. This new paradigm behavioural finance rests upon

the literature of cognitive psychology. Investor exhibit following psychological traits:

Investors make systematic error while making decision called heuristics, are

overconfident, put too much weight on recent past (heuristics),are slow to pick up a

change(conservatism),avoid to realize paper loss and seek to realize paper

gain(disposition effect),they prefer to invest in familiar stocks or funds because they think



that it is less risky investment than other and consider it a safe investment(familiarity

biases), they are loss-averse and present the individual matters wrongly(framing effect).

Prospect theory, regret theory, anchoring effect provides basic foundation of behavioural

finance which in turn explains the investor behavioural traits.Barber, Odean, &

Zheng(2000) in their article behaviour of investor highlighted three important points:

1) Investors buy only those funds that have showed good past performance.

2) Investors are reluctant to sell losing funds and are ready to sell winning fund.

3) Investors are less likely to buy the funds having high transaction fee i.e. brokerage fee, front

end load fee. They argued that when purchasing a fund investor exhibit representative heuristic

Investors believe that past performance is overly representative of future performance . Thus investor

buys a fund on basis of past performance According to behavioural finance investors exhibit

over-confidence while selecting the past winner funds and overly estimates their future performance

(Barber et al. (2000)). Samuelon and Zeckhauser (1988) studied behavioural biases status quo bias,

which is closely related to endowment effect. In this situation investors do nothing. Investors

invest in fund or stock that already have purchased, does not change investment pattern.

Investors are of the point of view that changing investment pattern will be perceived as having bad

investment choice in past.

According to Simon (200) behavioural finance studies the psychological and sociological that

influence the financial decision making process of individuals, groups and entities. In this study the

theories of behavioural finance are discussed like cognitive dissonance, prospects theory and regret

theory. Festingers theory of cognitive dissonance states that people feel internal tension and anxiety

when faced with conflicting beliefs. They try to reduce inner conflicts firstly by changing past

values and beliefs, secondly try justifying their choices. Investors also exhibit this kind of behaviour

when making investment decisions.

Goetzmann in 1997 examined the cognitive dissonance in mutual fund investor.

According to this research the mutual funds investors exhibit cognitive dissonance while

selling and buying mutual funds. Mostly investor spends greater money on leading

mutual funds than lagging one. But investors are reluctant to admit that they have made

bad investment and do not want to sell it. make decision regarding the investment. But the

investors do not have proper expertise to make this information useful that guide them

in decision making. A large number of websites and financial software are

available as screening tools. But majority of investors are not able to screen variables

properly and make an asset allocation decisions. These screening tools do not consider the

preferences of investors properly. An alternatives way is to hire broker to make



investment decisions keeping in view investors objectives, preferences and

investment constraints (Saraoglu & Detzler, 2002)

According to Talluru (1997) the objective of mutual fund selection process is to choose a

fund from large number of available fund within the limits defined by investor preference,

economic climate and constraints. In this study researches argue that it is very complex

procedure to select appropriate fund and majority of investors lack awareness and

expertises . They developed a fuzzy system to select appropriate fund. This fuzzy system

of selection removes vagueness in selection process and novel way of mutual funds

selection (Talluru, 1997).Woerheide (1982) conducted a study on investor response

to suggested criteria for mutual funds in which he tested the effect of different factors.

It was proved that factors like size of fund, effectiveness of marketing programme and

past return of funds have great impact. Among these the effectiveness of marketing

programme has strong impact.

Noel Capon (1994) in a study Affluent investors behaviour and mutual fund purchases

stated that there are many evidences that supports that in spite of risk and return

other factors also effect on mutual fund selection, for example a consumer survey 1990

on mutual fund it was founded that past performance and level of risk are two

aggregate important factors but other factors also effect like management fee, amount

of sales charges, reputation of fund family, funds already owned in family,

recommendation from magazine and newsletter and clarity of accounting statements.

Investor showed different behavioural trait and they prefer different factors while

selecting fund because of different demographic background. Wilcox conducted research

in 2002 on investors preferences for stock mutual funds in which they conducted a

conjoint study on 50 investors. Analysis showed that investors weighted past performance

more than fee structure. The wealthier and the knowledgeable investors are more biased

towards load while selecting the mutual funds. But the authors are of the point of view.



CHAPTER 3

RESEARCH METHODOLOGY



RESEARCH METHODOLOGY

Types of Research Design: -Exploratory research design

Exploratory Research: - Descriptive Data.

Primary Data: - Market survey

Secondary data:-

External Secondary Data: - Private Secondary Data.

Private Secondary Data: - Internet

Conclusive research: - single cross sectional, descriptive Research.

Data collection method: - Survey (Personal).

Data collection instrument: - Questionnaire.

Sampling Design:-

Target Population Definition: -

Target population: - Corporate employees of Ahemadabad city.

Sampling Elements: - Behaviour of Person who invest money in mutual

fund

Sampling Units: - Behaviour of Person who invest money in mutual fund

Sampling frame: - Not available.

Sampling Size: - 100

Extent: - Ahemdabad city.

Sampling Techniques: - Non-Probability convenience method.



Sample Size Determination:-

Calculation:-

A conducting research on investment behaviour of corporate employees .

It is using Likert scale for measuring service quality & also he allowed 0.11 errors

in measurement. Confidence level is 95%.

Step: - 01 calculation of standard deviation.

Se = Maximum value Minimum value

6

= 5-1

6

= 4

6

= 0.67

Step: - 02 calculation of Z value.



Z = 1.64

Step: - 03 Calculation of sample size.

N = ZS 2

e

= 1.64 0.67 2

0.11

N = 99.78 = 100.

Scaling Techniques: -

Data Analysis:-

Data Analysis Software: - MS Excel & SPSS.



CHAPTER 4

DATA ANALYSIS



DATA ANALYSIS

1 Do you invest in mutual fund?

Investing (MF)

Frequency Percent

Valid Yes 93 93.0

No 7 7.0

Total 100 100.0

INTERPRITATION:-

From the above graph i conclude that 93% corporate employees are invest in mutual fund.

7% corporate employees are not invest in mutual fund.



2 .What is your occupation?

Occupation

Frequency Percent

Valid Private job 48 48.0

Business 18 18.0

Retired 13 13.0

Govt job 21 21.0

Total 100 100.0

INTERPRITATION:-

From the above graph i conclude that 48% employees does the privat job .18% has there own

business ,and 13% are retired person working and 21% are government employees .

Occupation

Govt jobRetiredBusinessPrivate job

Freq

uenc

y

50

40

30

20

10

0

Occupation



3.What is your age?

Age

Frequency Percent

Valid 20 year to 30

year 31 31.0

31 year to 40

year 39 39.0

41 year to 50

year 10 10.0

More than 51

tears 20 20.0

Total 100 100.0

INTERPRITATION:-

From the above graph i conclude that the age group from 20 to 30 is 31 %,and 31 to 40

has39 ,and 41 to 50 10, and above then 50 are20



4.What is your annual income?

Annual income

Frequency Percent

Valid Less than 1.5 lacks 5 5.0

1.6 lacks to 2.5

lacks 9 9.0

2.6 lacks to 3.5

lacks 13 13.0

More than 3.6

lacks 73 73.0

Total 100 100.0

INTERPRITATION:-

From the above graph i conclude that annual income less the 1.5 lacks are 5%,and between

1.6 to 2.5 are 9%,and between 2.6 to 3.5 are 13 % and more the 3.6 lacks are 73%.



5. What do you consider the most important parameters while investing?

Parameters of investing

Frequency Percent

Valid Returns 21 21.0

Inflation 33 33.0

Company 22 22.0

Lower risk factors 12 12.0

Credit rating 7 7.0

Lock in period 5 5.0

Total 100 100.0

INTERPRITATION:-

From the above graph i conclude that parameter of returns are 21%,and inflation are 33%,and

company has 22%,and low risk factors are 12 % and credit rating are 7 %and lock in period

are 5 %.



6. Reasons for preferring any mutual fund?

Reason for preferring (MF)

Frequency Percent

Valid Returns 23 23.0

Lock in Period 19 19.0

Lower risk

factor 25 25.0

Credit rating 13 13.0

Inflation 6 6.0

Company 14 14.0

Total 100 100.0

INTERPRITATION:-

From the above graph i conclude that reason for preferring in mutual fund returns has 23 %,

and lock in period has 19 % and low risk factor has 25 % and credit rating has 13% and

inflation has 6 % and on company 14 %.



7. In which type of mutual fund schemes you have invested ?

Type of (MF )scheme

Frequency Percent Valid Percent Cumulative

Percent

Valid Debt schemes 76 76.0 76.0 76.0

Equity schemes 24 24.0 24.0 100.0

Total 100 100.0 100.0

INTERPRITATION:-

From the above graph i conclude that schemes debt has 76 % and Equity schemes has

24 %.

Equity schemes

Debt schemes

TypeofMFscheme



8.You have invested in any term in any mutual fund?

Term of (MF)

Frequency Percent

Valid Short

term 53 53.0

Long

term 47 47.0

Total 100 100.0

INTERPRITATION:-

From the above graph i conclude that investor choose in short term is 53 % and in long term

47 % choose the long term.



9.Which type of schemes do you prefer to invest?

Schemes of (MF)

Frequency Percent

Valid Closed

ended 40 40.0

Open ended 48 48.0

Interval 12 12.0

Total 100 100.0

INTERPRITATION:-

From the above graph i conclude that schemes of mutual fund close ended 40 % and 48 %

has open ended and interval has 12 %



Table of Mean

Particular Mean value

Risk based mutual fund 2.78

Fund based portfolio 2.37

Re-purchase price in (MF) 2.59

Overall experience 2.29

Financial planning based (MF) 2.40

Re-invest in (MF) 2.45

Interpretation

The research show that risk based mutual fund mean value is higher than other statement that

is 2.78 % and overall experience is lesser then other is 2.29 %



CHAPTER 5

RESEARCH FINDINGS



RESEARCH FINDING

Research conclude that investors invest in the mutual fund but there lack of

knowledge about mutual fund.

Research concludes that corporate employees invest in mutual fund at the

recommendation of other or advisers.

In mutual fund there are mostly investor are from private job they are able to take

risk investing in the risk Mutual Fund and they are only related equity share.

Some People interesting but they have overall bad experience because they was

invested then market gone down and they withdrawal from market.

Research conclude that More ever the corporate employee feel that mutual fund is

risky.

Research conclude that more ever business men has able to take the risk and they

usually use the debt market and go through the long term so business men have

the good profit and reinvest in the mutual fund

Research conclude that more ever investor has there parameter on the company

because the investor want good returns .

Research conclude that the government employees has lack of time and they

mainly focus on the long term schemes invest and with the good returns so mainly

the employees that go through too short term then they face the loss by the market.

Research conclude that investor preferring the low risk factor



CHAPTER 6

SUGGESTION TO COMPANY



SUGGESTION TO COMPANY

As the company is under the soft launching process so as the

companys requirement they want to know about the investor

behavior of corporate and businessmen as field work was done the

employees of corporate has the lack of knowledge so the awareness

of the mutual fund .

The other suggestion was that they Target population more ever the

age between 20 to 30 because this is the only time they earn for the

future goal and mainly earn for the children requirement

And the income earn by the employees is 1.5 to 2.5 has to the

future goal but they want to go through less risk so ratio invest in

the equity keep less and investor can earn from the debt at some of

the interval

And invester that have bad experience about mutual fund in past

the proper guide regarding to mutual fund must provide to them

and proper guide about the schemes work.

Majority corporate employees are aware about mutual fund , but

the level of knowledge is very low So research suggest that

company organize the seminar of awareness about mutual fund.

And provide the knowledge of all financial Instruments.

Company should tell the truth about the product. They should not

hide any information from the investors.

Company should arrange the seminars on the mutual fund on

priority bases. Because most of the investors are not aware about



mutual fund or investors have the negative impact of mutual fund.

So company should arrange seminars about awareness of mutual

fund and they should called up the well known speaker for that.

Company should appoint the more relationship managers for giving

good facility to the investors.

Company should improve the after sales services.



CHAPTER 7

CONCLUSION



Conclusion

Degree of investors behaviour in respondents who are investing in the

financial product is cumulatively high to medium level. So that mutual

fund is at growing stage in the market of the Ahmedabad. Respondents

think that mutual fund has more risk for investment. Most of the

respondent are invest in mutual fund but they exit when market goes down

and more ever invest in high risk in equity . There are main factors that can

be affected to the investors behaviour are returns, emergency need, and

convenience by using.



CHAPTER 8

BIBLIOGRAPHY



Bibliography

WWW.AMFIINDIA.COM

WWW. MUTUALFUNDSINDIA.COM

WWW.NJINDIAINVEST.COM

www.zenithresearch.org.in

http://www.iaeme.com/

www.cba.uri.edu/tong/fin691a.doc

www.ccfr.org.cn/cicf2005/paper/20050205142351

www.nber.org



CHAPTER 9

ANNEXURE



Topic

A study on investor behaviour towards mutual funds of corporate

employees in Ahmedabad city.

1 .Name : ___________________________________________

2. Do you invest in mutual fund?

Yes ( ) No ( )

3. What is your occupation?

Private job ( ) Business ( )

Retired ( ) Govt job ( )

4. What is your age?

20 year to 30 year ( ) 31 year to 40 year ( )

40 year to 50 year ( ) More then 50 years ( )

5. What is your annual income?

Less than 1.5 lacks ( ) 1.6 lacks to 2.5 lacks ( )

2.6 lacks and 3.5 lacks ( ) 3.6 lacks and above ( )

6. What do you consider the most important parameters while investing?

Returns ( ) Inflation ( )

Company ( ) Lower risk factors ( )

Credit rating ( ) Lock in period ( )

7. Reasons for preferring any mutual funds ?

Returns ( ) Lock in period ( )

Lower risk factors ( ) Credit rating ( )

Inflation ( ) Company ( )



8. In which type of mutual funds schemes you have invested?

Debt schemes ( ) Equity based schemes ( )

9. You have invested in any term t in any mutual funds ?

Short term ( ) Long term ( )

Interval ( )

10. Which type of schemes do you prefer to invest?

Closed ended ( ) Open ended ( )

Give your answer using the following scale:-

1= Strongly disagree , 2=Disagree,3= neither Agree nor Disagree, 4= Agree, 5=Highly

Agree,

No Statement 1 2 3 4 5

1 How do you rate any mutual fund on basis of

risk.

2 How do you rate any mutual fund on the

basis of fund portfolio.

3 How do you rate any mutual funds on the

basis of re-purchase price.

4 Your overall experience with any mutual

funds.

5 I take mutual fund decision to invest money

base on financial planning.

6 Do you have plans to re-invest in mutual

funds schemes of any mutual funds.

Thank You for your co operation

Documents

A Study on Investors Behavior Towards Mutual Fund of Corporate Employees in Ahmedabad City