Perception of Mutual funds

7/28/2019 Perception of Mutual funds

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1. INTRODUCTION

1.1 GENERAL INTRODUCTION

In todays market people invest money to gain more. So when they take into

account, they mostly look out for Investment Company where they can get more

income.

Investment companies can be classified into closed-end and open-end

investment companies. Closed-end is when it is readily transferable in the market.

Open-end funds sell their own shares to investors and ready to buy back their old

shares.

If we talk about the investment options today, in India we have so many

investment companies like UTI, LIC etc, all have their own special ways of servicing the

customers. The investors also feel that they are worth to be the part of that company.

These days people mainly look for avoiding tax so normally they look out for some

investments which can help them in doing so. When it comes to this point of view,

people mainly look out for mutual fund.

Mutual fund is a pool of funds, which is divided into units of equal value and sold

to investing public, and the funds so collected are utilized for collective investments in

various capitals and money market instrument.


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1.2 THEORETICAL BACKGROUND

1.2.1 Mutual Fund

The Indian MF industry is at a point of strategic inflection. It was founded with the

establishment of UTI in 1964. The private sector MF entered the Scene in early 1990 s

and introduced better service standards and wider product choices. The Indian MF

industry has not performed up to the mark in gaining investor confidence. The assets

have been garnered based on performance rather than confidence of investor.

1.2.2 Concept and origin of Mutual Funds

Personnel investing involve a clear understanding of the investment environment;

Investing means the committing of money for the purchase of assets, based on a

careful analysis of risks and rewards anticipated over a period of time. Depending upon

the characteristics of individuals there exists a broad spectrum of purposes for Investors

seeking monetary returns. Investors have a wide variety of opportunity to commit funds

various types of saving plans involving bonds, preferred stocks and common stocks and

other types of portfolio are available.

In contrast to the large investors who can engage experienced investment

Advisors in the selection and supervision of there funds, the small investors, by there

nature and other limitations cannot construct and successfully manage investment

Portfolio. They lack the proper technical knowledge of the capital market and the share

market transactions and consequently may suffer heavy losses.

The basic principles of investment trusts are diversifying the securities

purchased for the trust and expert management. It reduces the risks of capital

depreciations and poor dividends.


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At the same time the investors are given the benefit of expert management

through trained experienced and specialized personnel, which are the ordinary investors

usually lacks.

There are two main types of investment companies. The first group is variously

called Management investment trust or a closed end companies in U.S.A

And Japan. The second is the unit trust type and by far the more important one. These

Are referred to as open end investment companies or as mutual funds as they are

Usually called. These may be either fixed or flexible.

MEANING OF MUTUAL FUNDS

Mutual fund is a pool of funds which is divided into units of equal value and sold

to investing public and the funds so collected are utilized for collective investment in

various capital and money market instrument.

Definitions

Different persons in different words have defined mutual fund.

The SEBI (MF) Regulations, 1993 defines mutual fund as A fund established In

the form of a trust by a sponsor to raise monies by the trustees through the sale of

units to the public under one or more schemes for investing in securities in accordance

with these regulations.

Characteristics of MF

a) A mutual fund actually belongs to the investors who have pooled their funds. The

ownership of the MF is in the hands of the investors.


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b) A MF is managed by investment professionals and other service providers ,

who earn a fee for their services from the fund.

c) The pool of funds is invested in a portfolio of marketable investment. The value of

the portfolio is updated every day.

d) 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 as the net assets value or NAV.

e) The investment portfolio of the Mutual fund is vested according to the slated

Investment objectives of the fund

Structure of Mutual Fund

Mutual fund is a mechanism for pooling the investment, made by the investors, in

stock market, securities, shares and debentures as disclosed in offer document and

issuing units to the investors. Units are issued to the investors in accordance with

quantum of money invested by them. Investors of Mutual funds are known as Unit

Holders.

Figure 1.1

As investments are spread across a wide cross-section of industries

and sectors, the risk are reduced. Diversification reduces the risk because all stocks

may not move in the same direction in the same proportion at the same time.


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The profits or losses are shared by investors in proportion to their investments.

The Mutual funds normally come out with a number of schemes with different

investment objectives which are launched from time to time. A mutual fund is required to

be registered with Securities and Exchanges Board of India (SEBI) which regulates

securities markets before it can collect funds from the public.

ONE CAN MAKE MONEY FROM MUTUAL FUND IN THREE WAYS:-

Income is earned from dividends 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.

If the fund sell securities that have increased in price, the fund have a capital

gain most fund also pass on this gain to investor in a distribution.

If fund holding increases in price but are not sold by the fund manager, the fund

shares increase in price. One can sell then this mutual fund shares the profit.


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INDUSTRY PROFILE

SHARE MARKET:

The trading on stock exchanges in India used to take place through open outcry without use of

information technology for immediate matching or recording of trades. This was time consuming

and inefficient. This imposed limits on trading volumes and efficiency. In order to provide

efficiency, liquidity and transparency, NSE introduced a nation-wide on-line fully automated

screen based trading system where a member can punch into the computer quantities of securities

and the prices at which he likes to transact and the transaction is executed as soon as it finds a

matching sale or buy order from a counter party. Screen based electronic system electronically

matches orders on a strict price/time priority and hence cuts down on time, cost and risk of error,

as well as on fraud resulting in improved operational efficiency. It allows faster incorporation of

price sensitive information into prevailing prices, thus increasing the informational efficiency of

markets. It enables market participants, irrespective of their geographical locations, to trade with

one another simultaneous, improving the depth and liquidity of the market. It provides full

anonymity by accepting orders, big or small, from members without revealing their identity, thus

providing equal access to everybody. It also provides a perfect audit trial, which helps to resolve

disputes by logging in the trade execution process entirety.

Now dematerialization of shares is introduced a new concept which converts paper based

physical trading into electronic trading. It is a safe and convenient way to hold securities. Screen

based trading system helps in faster transfer of securities and no stamp duty is required on

transfer of securities.

Commodity:

No balance sheet, P&L statement, EBITDA and reading between the lines. Commodity trading is

about the simple economics of supply and demand. Supports are known, only resistance matters!

Minimum support price acts as a statutory support for many commodities. No Dollar-Rupee

premiums/discounts. No hedging on the NYMEX. Indian commodity derivatives hedge both


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forex and commodity specific risk, at a single cost. No brainstorming over market direction.

Seasonality patterns quiet often provide a clue to both short-term and long-term players.

No scam, no price rigging. Commodity trading comes with no insider trading information and

company specific risk.

Multi Commodity Exchange (MCX):

Multi Commodity Exchange (MCX) is an independent commodity exchangebased in India. It

was established in 2003 and is based in Mumbai. The turnover of the exchange for the fiscal year

2009 was US$ 1.24 trillion, and in terms of contracts traded, it was in 2009 the world's sixth

largest commodity exchange. MCX offers futures trading in bullion, ferrous and non-ferrous

metals, energy, and a number of agricultural commodities (mentha oil, cardamom, potatoes,

palm oil and others).

It is regulated by the Forward Markets Commission.

MCX is India's No. 1 commodity exchange with 83% market share in 2009

The exchange's main competitor is National Commodity & Derivatives Exchange Ltd

Globally, MCX ranks no. 1 in silver, no. 2 in natural gas, no. 3 in crude oil and gold in

futures trading

The highest traded item is gold.

MCX has several strategic alliances with leading exchanges across the globe

As of early 2010, the normal daily turnover of MCX was about US$ 6 to 8 billion

MCX now reaches out to about 800 cities and towns in India with the help of about

126,000 trading terminals

MCX COMDEX is India's first and only composite commodity futures price index

METAL BULLION

FIBER ENERGY
http://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Commodity_exchange


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SPICES PLANTATIONS

PULSES PETROCHEMICALS

OIL&OIL SEEDS CEREALS

Table 1.2.a: List of Commodities

National Commodity and Derivatives Exchange (NCDEX):

National Commodity & Derivatives Exchange Limited (NCDEX) is an online commodity

exchangebased in India. It was incorporated as a private limited company incorporated on 23

April 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement of

Business on 9 May 2003. It has commenced its operations on 15 December 2003. NCDEX is a

closely held private company which is promoted by national level institutions and has an

independent Board of Directors and professionals not having vested interest in commodity

markets.

Mutual funds:

A mutual fund is a professionally managed type ofcollective investment that pools money frommany investors to buy stocks, bonds, short-term money market instruments, and/or other

securities.

Advantages of Mutual Funds

Mutual funds have advantages compared to direct investing in individual securities. These

include:

Increased diversification

Daily liquidity

Professional investment management

Ability to participate in investments that may be available only to larger investors

Service and convenience
http://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Collective_investmenthttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Money_markethttp://en.wikipedia.org/wiki/Money_markethttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Collective_investmenthttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Commodity_exchange


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Government oversight

Ease of comparison

Disadvantages of Mutual Funds

Mutual funds have disadvantages as well, which include.

Fees

Less control over timing of recognition of gains

Less predictable income

No opportunity to customize

Types of Mutual Funds:

Open-end funds

Closed-end funds

Unit investment trusts

Exchange-traded funds

Investments and Classifications:

Money market funds

Bond funds

Stock or equity funds

Hybrid funds

Index (passively-managed) versus actively-managed

Mutual Funds Expenses:

Distribution charges

Front-end load or sales charge

Back-end load

12b-1 fees

No-load funds


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Share classes

Management fee

Other fund expenses

Shareholder transaction fees

Securities transaction fees

Expense ratio

Controversy

1.2.3. HISTORY OF INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of

India, at the initiative of the Government of India and Reserve Bank of India. The history

of mutual funds in India can be broadly divided into four distinct phases

First Phase 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up

by the Reserve Bank of India and functioned under the Regulatory and administrative

control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the

Industrial Development Bank of India (IDBI) took over the regulatory and administrative

control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At

the end of 1988 UTI had Rs.6,700 crores of assets under management.

Second Phase 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector

banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation

of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June

1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund


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(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 ofRs.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 allmutual 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


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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.

Figure 1.2

The graph indicates the growth of assets over the years.

1.2.4.Mutual fund calculation under SEBI consideration:


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Net Asset Value

Following are the regulatory requirements and accounting definitions laid down by

SEBI:

NAV = Net Asset of the Scheme / Number of Units Outstanding

= MVL+ REC+ AI+ Asset AE Pay Lia

No .of Units Outstanding as at the NAV date

MVL: Market value of Investment

REC: Receivables

AI: Other Accrued Income

Asset: Other Assets (Dividend yet to be received)

AE: Accrued Expense

Pay: Other Payables

Lia: Other Liabilities (Custodian and Management Fees)

Funds NAV is affected by:

Purchase or Sale of Investors Securities. Valuation of all Investment Securities.

Other Assets and Liabilities.

Units Sold or Redeemed.

Classification of Mutual Fund

Open Ended Funds: These funds have units available for sale and repurchase

at all time. An investor can buy or redeem the units at price based on NAV per

Unit.


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Close Ended Funds: These funds dont have units available for sale and

repurchase at all time. It allows only one-time sale of a fixed number of units.

However, to provide liquidity to investors many close-ended funds get listed on a

Stock Exchange(s).

Load Funds: Fund Manager made charges to the investors to cover

distribution/ sales/marketing expenses. These charges are called Loads. If

load amount is charged over a period of time, it is called a Deferred Load. Some

funds charge different amount of load to the investors depending on number of

years the investors have stayed with funds. Such charges are called

Contingent Deferred Sale Charge.

No-Load Funds: Funds which make no charges or load for sales expenses are

called as No Load Funds.

1.2.5. TYPES OF MUTUAL FUNDS : -

Mutual Funds have specific investment objectives such as growth of capital, safety ofprincipal current income or tax exempt income, one can select one fund or any number

of different funds to help one meets ones specific goals. In general mutual fund fall

under 3 general categories : -

Equity fund invest in shares of common stocks.

Fixed income funds invest in government or corporate securities which offer fixed

rate of returns.

Balanced fund invest in a combination of both stocks and bonds.


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AGGRESSIVE GROWTH FUNDS :-

These funds seek to provide maximum growth of capital with secondary emphasis on

dividend or interest income. They invest in common stocks with a high potential for rapid

growth and capital appreciation.

Aggressive growth funds are suitable for those investors who can afford to assume the

risk of potential loss in value of their investment in the hope of achieving substantial and

rapid gains. They are not suitable for investors who must conserve their principal or who

must maximize their current income.

GROWTH FUNDS:-

Like aggressive growth funds, growth fund generally invests in stocks for growth rather

than income. They are considered more conservative in their approach because they

usually invest in established companies to achieve long-term growth. Growth fund

provides low current income but the investor principal is more stable then it would be in

an aggressive growth fund. While the growth potential may be less over the short term,

many growth funds have superior long-term performance records.

These funds are suitable for growth oriented investors but not investors who are unable

to assume risk or who are dependent on maximizing current income from there

investments.

GROWTH AND INCOME FUNDS:-


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Growth and income funds seek long-term growth of capital as well as current income.

The investments strategies use to reach these goals vary among funds.

Growth and income funds have low to moderate stability of principal and moderate

potential for current income and growth. They are suitable for investors who can

assume some risk to achieve growth of capital but want to maintain a moderate level of

current income.

FIXED INCOME FUNDS:-

The goal of fixed income fund is to provide high current income consistent with the level

of capital. Growth of capital is of secondary importance.

Fixed income funds offer a higher level of current income than money market funds, but

a lower stability of principal. Fixed income funds are suitable for investors who want to

maximize current income and who can assume a degree of capital risk in order to do so.

EQUITY FUNDS:-

Funds that invest in stocks represent the largest category of mutual fund. Generally the

investment objective of this class of fund is long-term capital growth with some income.

There are however many type of equity funds.

BALANCED FUNDS:-

The Balanced funds aims to provide both growth and income. These funds invest in

both shares and fixed income securities in the proportion indicated in their offer

documents. It is an idea for investors who are looking for the combinations of income

and moderate growth.

MONEY MARKET FUNDS/ LIQUID FUNDS:-

For the cautious investors these funds provide a very high stability of principal while

seeking a moderate to high current income. They invest in highly liquid; virtually risk

free, short-term debt securities of agencies of the Indian government, banks and


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corporation and treasury bills. Because of their short-term investments, money market

mutual funds are able to keep a virtually constant unit price; only the yield fluctuates.

Money market funds are suitable for those investors who want high stability of principal

and current income with immediate liquidity.

SPECIALITY / SECTOR FUNDS:-

These funds invest in securities of a specific industry or sector of the economy such as

health care, technology, leisure, utilities or precious metals. The funds enable investor

to diversify holding among many companies within an industry, a more conservative

approach than investing directly in one particular company.

Sector funds offer a opportunity for sharp capital gains in cases where the funds

industry is in favor but also entail the risk of capital losses when the industry is out of

favor. While sectors funds restrict holdings to a particular industry, other specialty funds

such as index funds gives investors a broadly diversified portfolio and attempt to mirror

the performance of various market averages.

1.2.6. Pros and corns of mutual fund

Advantages of Mutual funds

Diversified portfolio of investments: As the investments are made in various

stocks of different companies, Professional Management: Fund Managers and

his/her team of highly qualified professional looks at all perspectives before

committing to an investment decision. This sort of specialist knowledge is

available to the small retail investor through the MF route.

Market Linked Return: Many schemesoffered by mutual funds help investors

to gain return better than the market.

Diversification of Risk: Diversification reduces the risk of exposure to one or

two shares or debentures or other instruments.


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Reduction in Transaction Cost: A direct investors bears all costs of investing

such as brokerage or custody of securities. Investing via Mutual Fund help

investors to reduce the cost as larger volumes are involved

.

Liquidity: An MF investor can invest and disinvest at will, irrespective of market

conditions. In case of shares or bonds its very difficult to sell them unless and

until a buyer is there. Mutual Funds give the option of liquidity. The units of an

open ended scheme can be redeemed at any working day.

Convenience and Flexibility: Various options of Systematic Investment Plan,

Systematic Withdrawal Plan and Systematic Transfer Plan are designed for the

convenience of the investors.

Disadvantages of Mutual Fund

No Control over Costs: A Mutual Fund Investor has to pay management fees,

fund distribution cost to the Mutual Fund. This cost is not incurred in directinvesting. But this cost is less than the cost of direct investing by the investors .

No Tailor-made Portfolios: Investors investing in Mutual Fund gives the rights

to Fund Manager to build the portfolio of shares, bonds and other securities.

While investing directly, investors can build there own portfoli o

However, today Mutual Funds are offering families of schemes. Investors

can choose from different investment plans c construct a portfolio of his choice .

Managing a Portfolio of Funds: Due to presence of large number of funds

availability in the market, investor needs some advice to select a fund to achieve

his objective


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1.2.7. MUTUAL FUND INDUSTRY IN INDIA

Figure 1.3

Mutual Funds in India

UTI Private sector Public

JVs with foreignPartners

Birla Sun CapitalPrudential ICICI

Alliance CapitalKothari Pioneer

TempletonAlliance

Morgan Stanley

TATAJM CD

EQUISEARCH

Banks

SBI

CANARA

PNB

BOI etc.

Institutions

GIC

LIC etc.


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1.2.8. THE RISK RETURN GRAPHS FOR VARIOUS FUNDS:-

Figure 1.4

The above Graph shows the Risk and Returns generated by different Funds. Liquid Funds

are less Risky and also generate less Returns where as Sector Funds are more Risky but

generate more Returns by the example of above two Funds it is clear that Risk and

Returns are directly proportional to each other. Other Funds like Equity Funds, Balanced

Funds and Income Funds are also gives the same percentage of Returns as the Risk

involved.

Liquid Funds

Income Funds

Balanced Funds

Equity Funds

Sector Funds

RISKS

R

E

T

U

R

N

S


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COMPANY PROFILE

CD Equi search is one of the leading brokerage houses with a strong presence in the

institutional and HNI broking segment. With over 30 years of experience, you could besure of

the best in class research, operations back-end support and above all, a name which inspires trust.

At CD Equi search,the emphasis is on transparent and clean dealings. This has earned us our

clients goodwill. This quality has stood the test of time and has helped us secure business from

all quarters.

At CD Equi search, people are not weighted down by tradition. Rather, we are inspired by the

heritage of the company. Here, business is conducted by building long term relationships with

our clients and associates by laying emphasis on ethical and clean dealings. Here, people practice

the gentle art of finance with professionalism, skill and transparency.

Continued growth which is so essential in todays fast paced and ever changing capital market

has been a constant feature at CD equi search. With an eye on the future and in keeping with the


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changing times, we at CD equi search have earned the investors goodwill our most important

assets over the year. After having a track record of servicing institutions and HNIs for over 3

decades, we are planning to foray into the growing retail segment in a big way. We would be

expanding across the geography with a wide network of our regional offices, branches,

franchisees and sub-brokers. We would be offering a complete basket in financial services. We

are looking at ourselves amongst one of the top ten broking houses in india by 2014. To achieve

that, we have very aggressive plans of expansion.

2.10. M - CONNECT

CD MConnect is a mobile application developed by CD equisearch for its users to

explore the complete Stock market spectrum on mobile phone. It is a value added

service which will enable the users to access Market

information: Equity, F&O, Commodity and MF on Mobile Phone.

CD M-Connect supports all JAVA enabled GSM and Black Berry handsets having

GPRS connectivity. Available for CD and Non CD Clients. Access Market News /

Analyses 24x7 on Mobile. CD Clients will have the advantage to access their Back-

Office data on Mobile Phone. Real time Equity, F&O, Commodities and MF rates on a

single platform.

Set Watchlist for Equity, F/O and Commodity and track your favorite stocks. Rates

Refresh Option available for all Watchlist. User-friendly interface for easy navigation.

Stock Updates and Market Stats on your Mobile CDs Product and Services details

available. Easy & free to download. View Top 10 Local and Global indices. Non CD

Clients Can Sign up directly from their Mobile Phones through Non CD Client Sign Up

link.

2.11.SMS SERVICES


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Types of SMS services:

Trade confirmation SMS Equity

Trade confirmation SMS Commodity

Weekly Ledger

Payin Auction SMS

Welcome SMS

Welcome Kit SMS

Password Reset

Pro-Active SMS Services Sent from CD equisearch to its clients.

This SMS are sent to the clients daily b/w 5 pm to 7 pm who have traded in NSE, BSE

and NSEFO. This SMS are sent to the clients daily b/w 9 am to 9:30 am who have

traded in MCX and NCDEX on previous day.

Client has to subscribe for Weekly Ledger only once by sending sms WLED to

5757587. He will receive SMS every Saturday for his Ledger Balance as per his Back

Office details.

The SMS is sent daily to the client. It contains the details like Settlement No, Exchange

Name, Scrip Name, Qty and Rate at which the scrip were auctioned. The SMS is sent

daily to the clients whose account is activated on previous day. It contains details like

his Client Code, Branch Name and Tag. The SMS is sent to the client when the

Welcome Kit is dispatched from CSO. The client can reset his Back Office password

through

SMS Services from CD

2.12.Linking of bank accounts for fund transfer


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Below are the various banks which are been having a link

1. ICICI Bank

2. Axis Bank

3. YES Bank

4. HDFC Bank

5. Karnataka Bank

6. Corporation Bank

7. Union Bank of India

8. South Indian Bank

9. Bank of Rajasthan

10. Oriental Bank of Commerce

11. Vijaya Bank

12. Bank of India

2.13. Services Offered - Electronic Payment

We can now make electronic payment to our clients using the RTGS / NEFT mode.

Once registration is done, all payments from CD to the client would go by default as a

direct credit in to the registered bank account whether the payout is marked by client,

sub broker or branch. This facility is available in all bank branches which are enabled

for RTGS / NEFT facility. Facility of direct bank credit in any bank that the client has

his/her account. Reduced time of credit clearing time eliminated. Client need not go to

the bank to deposit payout cheques.

PRE-PAID BROKERAGE:


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Pre-paid brokerage is a scheme where we are selling brokerage vouchers to our

prospective clients by giving them special brokerage rate with a time validity in-turn

taking commitment of absolute brokerage amount from them.

2.14.MANAGEMENT:

MISSION AND VISSION

CDEqui search is passionate about providing friendly customer services on thegreens of the investing world. Following the highest standards of ethics is entrenched in the

DNA of CD Equi search. At CD Equi search, the selection and recommendations of wealth

creating opportunities are primarily based on the 3C principle.

Conservation of capital

Consistent growth in value of investment over a period of time.

Continual cash inflow through handsome dividends.

KEY PRODUCT OFFERINGS ARE AS FOLLOWS:

Equities

Commodities

Currency derivatives

Online broking

Depository participant

Structured products

Distribution of mutual funds


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Life insurance

Alternate investment

Distribution of IPO / FPO

Bonds

MANAGEMENT TEAM

Mr. Chandravadan Desai - Chairman

Mr. Pranay Desai - Director

Mr. VikashKalani- COO (Chief operating officer)

Mr. JayeshVora - CFO ( Chief financial officer)

Mr. Nilesh Vasa - Director ( Group companies)

Mr. Hussain Sheriff - Assistant Vice President

Mr. Mahimai Raj - Cluster Manager

Mr. Thulasi Raman - Branch Manager

Mr. Loganathan - Team Manager

Mr. Krishna Kumar - Relationship manager

2.15.COMPETITORS

ABN AMRO Mutual Fund ,

BIRLA SUN LIFE Mutual Fund

FRANKLIN TEMPLETON Mutual Fund

HDFC Mutual Fund

HSBC Mutual Fund

KOTAK MAHINDRA Mutual Fund

LIC mutual fund

Morgan Stanley Mutual Fund

Principal Mutual Fund

Prudential ICICI Mutual Fund

Sahara Mutual Fund

SBI Mutual Fund

Standard Tableered Mutual Fund

Sundaram Mutual Fund

Tata Mutual Fund
https://www.assetmanagement.abnamro.co.in/http://www.birlasunlife.com/http://www.franklintempletonindia.com/india/jsp_cm/ft_home.asphttp://www.hdfcfund.com/http://www.hsbcinvestments.co.in/http://www.kotakmutual.com/http://www.msgfindia.com/http://www.principalindia.com/presentation/view/home.aspxhttp://www.pruicici.com/http://www.saharamutual.com/http://www.sbimf.com/http://www.standardcharteredmf.com/http://www.sundaramfinance.com/products/mutualfunds/mutualfunds.asphttp://www.tatamutualfund.com/http://www.tatamutualfund.com/http://www.tatamutualfund.com/http://www.sundaramfinance.com/products/mutualfunds/mutualfunds.asphttp://www.standardcharteredmf.com/http://www.sbimf.com/http://www.saharamutual.com/http://www.pruicici.com/http://www.principalindia.com/presentation/view/home.aspxhttp://www.msgfindia.com/http://www.kotakmutual.com/http://www.hsbcinvestments.co.in/http://www.hdfcfund.com/http://www.franklintempletonindia.com/india/jsp_cm/ft_home.asphttp://www.birlasunlife.com/https://www.assetmanagement.abnamro.co.in/


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3. PROBLEM STATEMENT AND OBJECTIVE OF THE

STUDY:-

3.1 PROBLEM STATEMENT:-

Due to the falling Rate of Interest on Bank deposits, it is obvious that Investment in

Mutual Fund will grow in year to come. However lack of Awareness of Mutual Fund

is a hindering factor in expected growth of Mutual Fund Business. Under noted

problems are envisaged in this area:

Difficult in convincing people for investment.

Difficult to change mind of the investor according to age and

Profession.

Difficult to make an approach to investors.

Difficult to take an appointment with professional people.

Difficult to get the documents required for formalities from investors

.

Difficult to overcome an impassionate person who wants return in less time.

Difficult to follow up the people whose names are being stored in a data.

Difficult to remove the fear of risk from the minds of investors.


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3.2 OBJECTIVES OF STUDY:

In view of the problem cited above, the study aims at analyzing the following major

issues:

To know the awareness of MUTUAL FUND among people.

To know the different Asset management companies involve in MUTUAL FUND.

To know the different aspects of MUTUAL FUND according to different age,

profession etc.

To see the interest of people in investing in MUTUAL FUNDS.

To know the different attitudes of people regarding risk, rate of return, period of

investment etc.

To study the diversification of mutual fund.


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4. RESERCH METHODOLOGY:

4.1 METHODOLOGY OF STUDY:-

Research can be defined as systemized effort to gain new knowledge. A research is

carried out by different methodologies which have their own pros and cons. Research

methodology is a way to solve research in studying and solving research problem along

with logic behind them are defined through research methodology. Thus while talking

about research methodology we are not only talking of research methods but also

considered the logic behind the methods. We are in context of our research studies and

explain why it is being used a particular method or technique and why the others are not

used. So that research result is capable of being evaluated either by researcher himself

or by others

4.2 Research Methodology:-

Research has its special significance in solving various operational and planning

problem of business and industry. Research methodology is the way to systematically

solve the research problem.

4.3 ASSUMPTIONS:-

1. It has been assumed that sample of 100 respondents represents the whole

population.

2. The information given by the customer is unbiased


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4.4 Literature Survey:-

The project is based on pure findings of facts.

Development of Working Hypothesis:-The Hypothesis could be developed by

discussing with the concerning department heads and guides about this exploratory

research and reached to the conclusion that the data is to be collected by personal

interaction with the customers, asking them about the services and the improvement

required. First of all they are aware of mutual funds or not and then analyzing the

findings to reach to the objectives of research.

Collection of Data:-There was secondary data available for the study and also primary

data collected by carrying out by the survey which has been carried out to through

personal interviews of the customers. The sample size was roughly 100.

Sampling methods: - A sample is the representative of the population which will

predict the behavior of the whole universe.

a. The sampling size put under two categories: Probability sampling and non

probability sampling.

Probability sampling:-

This is the process of selecting the elements or group of elements from as well defined

population by such procedure which gives every element in the population an equal

chance of being selected for observation. The sampling method use for this survey is

the area sampling which is a sub type of probability sampling.

4.5 Sampling size:-

Large sample gives reliable result than small sample. However, it is not feasible to

target entire population or even a substantial portion to achieve a reliable result. So, in


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this aspect selecting the sample to study is known as sample size. Hence, for my

project my sample size was 100.

The Sample Size of 100 is not enough to draw a conclusion but as per the time

assigned it was difficult to take a sample size more than 100.

The Sample Size consist of both the Professional and Business class people. IT

peoples, Doctors, Jewelers, Timber Merchants & Real estate Agents are taken as

Sample .

4.6 Execution of the project:-

It is the very important step in the research process accuracy findings depends on how

systematically the study has been carried out in time so that it can make some sense

when required. I have executed the project after prior discussion with the guide and

structured in following steps:

a. Preparation of questionnaire.

b. Collection of list of some of the clients interview of the customer so that more

interaction is impossible and the variety of responses can be registered to

have a good data for analysis.

c. Visiting the corporate and asking about their feedback on the mutual funds

services they are availing. Try to find out their satisfaction level with the

existing mutual fund.


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5. LIMITATIONS:

Every work has its own limitation. Limitations are extent to which the process should

not exceed. Limitations of this project are:-

1. Duration of Project was not enough to make a conclusion on such a vast subject

time Constraint has become a big limitation.

2. The Sample Size being taken for drawing a conclusion was too small to get an

accurate result.

3. Changing the Mentality of people for investing in a particular Financial Product is

a very difficult task.

All the above mentioned statements are the limitations of the project ,Time, Sample

Size & Mentality of investor are the main limitations of the project. The study is being

done by taking and keeping all the limitations in mind. The project is completed in

prescribed time. To find the Awareness of Mutual Fund the Sample Size is not at all

enough because the population size is much bigger than the sample size and the

last limitation was to change the mentality of the investor to invest in a particular type

of the Investment Product. As the Indian Market have a large number of potential

customer to draw a conclusion in such a small size may not be reliable.


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6. ANALYSIS OF MUTUAL FUNDS:-

The schemes have been divided into 10 different categories for the purpose of

meaningful comparison. The categories are as follows:

1. Equity diversified Funds.

2. Equity ELSS Funds.

3. Equity sector Funds.

4. Balanced Funds.

5. Income Funds.

6. Liquid Funds.

7 .Gilt Funds.

8. MIPS (Monthly income plans)

9. Index Funds.

10. Hybrid Funds.

There are many asset management companies being involved in mutual fund but

people invest thing reputed mutual fund like ICICI PRUDENTIAL, FRANKLIN

TEMPLETON, HSBC, KOTAK, HDFC, CD EQUISEARCH etc. All the companies have

different mutual fund schemes vary from different needs of a customer.


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6.2 COMPARISAN BETWEEN BANKS AND MUTUAL FUNDS IN DIFFERENT

ASPECTS:-

Table 3

BANKS

MUTUAL

FUNDS

Returns Low Better

Administrative

exp. High Low

Risk Low Moderate

Investment

option Less More

Network High Penetration Low but improving

Liquidity At a cost Better

Quality of asset Not Transparent Transparent

Interest

calculation

Min. Balance between 10th and

31st of month. Everyday

Guarantee Max. Rs. 1Lakh on Deposit None

In the above table the Comparison is made between Banks and Mutual Fund with

different aspects. Now a day due to low Rate of interest people prefer to invest in those

products which give more Returns in less time without Risk. Now a days also nearly

40% of people keep there money in Banks because they are less Risky . The Returns

expected in Mutual Funds are high where as in bank it is low but the Guarantee of

money back is more than Mutual fund. Thus both Bank and Mutual Fund are good

enough in themselves. It is depend on the Investor what type of investment they want to

do.


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7. DATA COLLECTION:

Proceeding further after determines the Methodology and limitation of the study the next

step is to analyze the Data being collected for the study. Data is being collected fromvarious sources like:-

Questionnaire

Personal visit

Telephonic Information etc.

7.1 QUESTIONAIRE:-

Questionnaire is a written form being given to the prospective investor to give

feedback about the services provided to them and also to find the satisfaction

level of the investor for a particular investment product .Questionnaire is an easy

and simple way of collecting a data .After filling up of form the next step is to

evaluate the form in different dimensions and draw a conclusion.

It is difficult to get a Questionnaire filled by corporate because of time they dont

have time to fill the Questionnaire so at the time of meeting them personally or

after that the Questionnaire is filled by us.

The Sample size taken for this study is 100 which is not enough to draw a

conclusion but due to time limitation only this much size has been taken into

consideration. After analyzing the Questionnaire the following evaluation has

been done:-


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Table 4

CATEGORY OF

INVESTORS

TOTAL INCOME RISK RETURN

IT PEOPLE HIGH LOW HIGH

DOCTORS HIGH LOW HIGH

TIMBER MERCHANTS HIGH HIGH HIGH

JEWELLERS HIGH HIGH HIGH

REAL ESTATE AGENTS HIGH HIGH HIGH

After analyzing the above table the conclusion was made that the business people

are more Risk taker while professional people are less Risk taker where the return

expected in both the case are high.

7.2 PERSONAL VISIT:-

The second way of collecting data is Personal Visits to the corporate personally by

fixing an appointment. Personal Visit gives a clear picture of the conclusion drawn in

Questionnaire It gives a clear view of the client Awareness about the product .Some

of the difficulties in making Personal Visits are:-

To take a time or appointment from the corporate.

To convenes investor to invest in a particular product.

Personal Visit gives a clear picture about the Investment areas of both the

categories they are:-


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Table 5

PROFESSIONAL PEOPLE BUSINESS PEOPLE

PPF LAND

KISAN VIKAS PATR GOLD

BANK ACCOUNT STOCKS

INSURANCE INSURANCE

FURTHER STUDIES etc. VEHICLES etc.

From the above table it is clear that the Professional people invest in the Value

Added items where as Business people they invest in Future Prospect assets like

land, gold etc.

7.3 TELEPHONIC INFORMATION:-

The further source of collecting data is telephonic information with the existing

customer and the prospective investors. It is very difficult to reveal the data of

investors from the company itself because it has been kept as a secret document.

After getting a data some problems too come in the way. Some are:-

People are not ready to listen.

People ask question like from where did you get the number?

From this source not much of the Information is drawn.

Few respondents where not happy with the level of customer services

rendered by CD EQUISEARCH MUTUAL FUND LTD. Particularly about the

delays in replying or not replying the queries raised by them.


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8. INTERPRETATION AND ANALYSIS OF DATA:-

From the data collected through the questioner, observation made during the personal

visits the data revealed following information:-

Table 8.1

PERCENTAGE OF INVESTMENT TO TOTAL INCOME

Source : primary data

In the below chat it has been observed that people invest mostly between 10% to 30%

of their income as the moderate level of income is in the range of rupees 30,000 to40,000. There are very few people who invest above 50% of their Income as their

income level is too high say above Rs. 10,000,00. Investors are having different

responsibilities toward the society and family due to which they are not able to invest

more money in Financial product .There are many people who invest only 10% of

there income according to total Sample Size.

INCOME NO. of PEOPLE PERCENTAGE

Over 50% 1 1%

30%-50% 5 5%

10%-30% 56 56%

10% & below 38 38%


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Chart 8.1

PERCENTAGE OF INVESTMENT TO TOTAL INCOME

\

Percentage in Income People Investment

1% 5%

56%

38%

Over 50% 30-50% 10-30% Below 10%


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TABLE:-8.2

INVESTMENT IN FINANCIAL PRODUCTS

FINANCIAL INSTRUMENTS % OF INVESTMENT

BANK 40%

INSURANCE 10%

STOCK MARKET 15%

BONDS & DEBENTURE 3%

PPF 7%

NSC 5%

POST OFFICE SAVING SCHEMES 8%

REALESTATE 2%

GOLD 5%

CHIT FUND 5%


These are many Financial Instrument in Indian Market. People in early days kept their

money in Bank. They think Bank is the only place where the money is safe till today also

40% of people feel the same but many of them have started investing in other Financial

Products like Insurance, Stock Markets etc. The Post Office savings are less preferred

by the Investors due to the less Returns in more Time. Businessmen mostly invest in

tangible assets like land, building, gold etc.

In this Table it is clear that people mainly invest and keep their money in banks .Stock

market came into existence only from early 90s thats why the percentage investment in

stocks is low as compared to banks. People generally invest in risk free financial

product like PPF, NSC etc. as they get tax exemption. Investment in Insurance is also

preferred by people because it is not a risky instrument.


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Chart 8.2

INVESTMENT IN FINANCIAL PRODUCTS

40%

10%15%

3%

7%

5%

8%

2%

5%

5%

BANK

INSURANCE

STOCK

MARKET

BONDS &

DEBENTURE

PPF

POST OFFICE

SAVING

SCHEMES

REALESTATE

GOLD

CHIT FUND


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TABLE:-8.3

AWARENESS OF MUTUAL FUND OUT OF 100 PEOPLE:-

Awareness of mutual fund People

Yes 7 %

No 93 %


In Table the awareness of mutual fund is determined in the percentage terms only7% of the total population are not aware of MUTUAL FUNDS. As Mutual Funds of

India are growing rapidly the awareness of Mutual Funds is increasing among the

Investors although & every Investor knows about Mutual Funds by its nomenclature.

They are not really aware of the concept.


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Chart 8.3

AWARENESS OF MUTUAL FUND OUT OF 100 PEOPLE:-

Awareness of Mutual Funds

93%

7%

Yes

No


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TABLE :- 8.4

PERCEPTION ABOUT MUTUAL FUND

Safe 10%

Risky 28%

Other 62%


From the below pie Table it is clear that people perceive mutual fund as an risky product

whereas 62% of investors believe that mutual fund gives high returns.

Only 10 % of people feel that it is safe. Out of 100 sample size it is very difficult to

determine the exact perception of investors. Due to continuous increase in mutual fund

industries the perception of people are changing slowly.


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Chart 8.4

PERCEPTION ABOUT MUTUAL FUND

Perception of Investors

10%

28%

62%

Safe

Risk

Others


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TABLE : 8.5

AWARENESS OF DIFFERENT MUTUAL FUND SCHEMES

Schemes No. of respondents

growth schemes 10

Income schemes 20

Balance scheme 25

Money market and liquid schemes 17

Tax saving schemes 18

Guilt funds 10


in the below Table there are moderate preferences to all the schemes. The respondents

first to know about the schemes well then only they ensure to get reasonable returns to

his investment. Mostly the balanced scheme was much focused to more no. of

investors, other than all equally known by the respondents


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Chart 8.5

AWARENESS OF DIFFERENT MUTUAL FUND SCHEMES

0

5

10

15

20

25

Growth

schemes

Income

schemes

Balance

schemes

Money

market

and

Liquid

Schemes

Tax

saving

schemes

Guilt

fundsno.

ofper

sons

schemes

AWARNESS OF DIFFERENT TYPES

OF MUTUAL FUND


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TABLE :-8.6

COMPARITIVE STUDY OF RISK , INVESTMENT AND RETURN.


In Table below it is determined that people of the age group 25-30 yrs are more risk

takers as compared to other age groups. However they are able to invest less

because they do not have any responsibility toward the society and family. They also

invest less because they dont get proper guidance. As the age increases the saving

percentage decrease but the people above 55 are keener to invest because they

become free from all the responsibilities of the family and society. At this stage they

need continuous flow of income.Middle age people of the age group of 35-45 yrs.

are not investing much because they are bound to many responsibilities towards

family and society.

AGE GROUP RISK RETURN INVESTMENT

25-35 60% 35% 45%

35-45 25% 15% 15%

45-60 10% 20% 10%

60& ABOVE 5% 30% 30%


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Chart 8.6

COMPARITIVE STUDY OF RISK , INVESTMENT AND RETURN.

0%

10%

20%

30%

40%

50%

60%

25-35 45-60

Risk Return and Investment Chart

according to different age group

RISK

RETURN

INVESTMENT


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TABLE:- 8.7

IDENTIFICATION OF MUTUAL FUND COMPANIES

ASPECTS PERCENTAGE

Brand Name 39

Good Services 24

High Yield 15

Advertisement 10

Any other reason 12


From the below Table it is clear that Brand Name plays an important role for attracting

investors. Secondly, good services are also expected by an investor from the

companies. In other reasons investors generally pointed out the identification of the

companies known by their friends or relatives.

Advertisements and high yield are the secondary aspects of identifying the mutual fund

industries.


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Chart 8.7

IDENTIFICATION OF MUTUAL FUND COMPANIES

0

5

10

15

20

25

30

35

40

Percentage

Brand Name GoodServices

High Yeild AdvertisementAny otherreason

Aspects

Series1


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TABLE :- 8.8

RISK TAKEN BY DIFFERENT AGE GROUP :-

AGE

GROUP

RISK TAKEN IN

PERCENTAGE

25-35 60

35-45 20

45-60 17

60 &

above 3


In Table below the risk taking ability are being depicted. The person of younger

age are willing to take more risk as compared to the elder age group people. The

middle age people do not take much risk because of much responsibility toward

family and society With reference to this Table only 17% of income of middle age

people is being invested in risk prone securities.


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Chart 8.8

RISK TAKEN BY DIFFERENT AGE GROUP :-

RISK TAKEN IN PERCENTAGE

60%20%

17%

3%

25-35

35-45

45-60

60 & above


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TABLE :- 8.9

PERCENTAGE OF TOTAL INCOME INVESTED IN MUTUAL FUND:-

INVESTORS

CATEGORY

% OF TOTAL INCOME INVEST IN

MUTUAL FUNDS

IT SECTOR

PEOPLE 50%

DOCTORS 30%

TIMBER

MERCHANTS 7%

JEWELLERS 3%

REALESTATE

AGENTS 10%


In the Pie Table below it is clear that professional people are more indented to invest in

comparison with business people who are high risk takers. Business people are more in

dined to invest in real estate, land etc. This is because business people want money in

less time as and when required while Professional people believe in continuous flow of

money.


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Chart 8.9

PERCENTAGE OF TOTAL INCOME INVESTED IN MUTUAL FUND:-

PERCENTAGE OF TOTAL INCOME INVEST IN

MUTUAL FUND

50%

30%

7%

3%10% IT SECTOR

PEOPLE

DOCTORSTIMBERMERCHANTS

JEWELLERS

REALESTATEAGENTS


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TABLE 8.10

AWARENESS OF CD EQUISEARCH MUTUAL FUND LTD OUT OF 100 PEOPLE

Awarness Of Mutual Fund percentage

Yes 55%

No 45%


55% says that they are aware of CD EQUISEARCH Mutual Fund Ltd 45% says that they are not aware of CD EQUISEARCH Mutual Fund Ltd


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Chart 8.10

AWARENESS OF CD EQUISEARCH MUTUAL FUND LTD OUT OF 100 PEOPLE

yes

no


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TABLE 8.11

COMPARISON ON THE BASIS OF PLACE:-

Comparison on the place People

Cities 70

rural 30


In Table, it is clear that the people staying in small town are less aware of

MUTUAL FUNDS as compared to big cities. The approximate population of cities

is 7 times more than rural . Investors of rural place are less aware of the MutualFund & they feel it as a risky Financial Product where as the investors of cities

are fully Aware of the concept of the Mutual Fund and evince interest in investing

in new IPOs etc.


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Chart 8.11

COMPARISON ON THE BASIS OF PLACE:-

Awareness in Mutual Fund out of

100 people

70

30

0

20

40

60

80

cities rural

Place

No of

PeopleSeries


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9. PROJECT FINDINGS AND RECOMMENDATIONS:-

9.1 PROJECT FINDINGS:-

There is a great potential for investment in Mutual Fund as people wants to save

for various future obligation.

Since Rate of Interest on Bank deposit is falling people will be attracted towards

investments in Mutual Funds because of high rate of returns

Comparatively people of small towns are less aware of other investment avenues

viz Mutual Fund.

People of young age group are ready to take risk and they can be targeted for

investment in Mutual Fund.

Some of the people who were personally contacted showed reservation aboutdealing with CD EQUISEARCH MUTUAL FUND LTD.


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9.2 RECOMMENDATION:-

It is seen that CD EQUISEARCH brand is not seen enough in the market

place and hence the brand is invisible to the naked eyes of the consumer

and hence CD EQUISEARCH should beef up its publicity campaigns and

promotional activities so that CD EQUISEARCH becomes an easily

recognizable brand.

For creating a brand image in our country CD EQUISEARCH should go for

a brand ambassador.

In CD EQUISEARCH, they should provide training to its employees in the

field of Insurance, Stock broking, Mutual fund etc.

CD EQUISEARCH should conduct more surveys in order to interact with

customer to know their preferences for improving its services.

Small towns may be targeted for business development as this area is untapped

relatively and there exist huge potential for business development


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CONCLUSION

The study will guide the new investor who wants to invest in mutual fund schemes

by providing knowledge about how mutual fund . The study recommends new investors

to go for mutual funds rather than equities, because of high risk and market instability.

There is a great need to disclose the risk involved in the schemes properly to the

investor by the investment companies.

The high returns (above 20 per cent) are definitely not sustainable over a long

term, as they have been generated during the biggest Bull Run in recent mutual

fund industry.

Investments in both mutual fund schemes are subjected to market risk.

Now a days investments in equity and mutual fund schemes are increases

because of falling interest rates and awareness of mutual fund schemes in the

minds of investors.

In case of both equities and mutual funds(open ended) liquidity is very high, with

in three working days mutual funds will converted into cash and liquidity of equity

is based on demand and supply conditions of the market for a particular scrip.


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10. REFERENCES:-

1. www.njindiainvest.com

2. http://mutualfunds.about.com

3. www.shcil.com

4. MutualFunds-ICMR book of readings

5. Fact Sheet of various Mutual Funds.

6. ICMR Text Book

7. Dalal Street Journals Stock Market Book

8. AMFI BOOK


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ANNEXURE

11. QUESTIONAIRE:-

1. DO YOU INVEST?

YES

NO

2. WHAT PERCENTAGE OF INCOME DO YOU INVEST?

OVER 50%

30% TO 50%

10% TO 30%

Below 10%

3. WHAT ARE THE VARIOUS INVESTMENT SCHEMES IN WHICH YOU INVEST?

Bank

Insurance

Stock Market

Bonds and Debenture

PPF (Public provident Funds)

NSC (National saving certificate)

Post office saving schemes

Real Estate

Gold

Chit Funds


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4. WHAT ARE THE BREAK UP IN PERCENTAGE TERMS TO YOUR INVESTMENT?

TYPE OF INVESTMENT PERCENTAGE

BANKINSURANCE

STOCK MARKET

BONDS & DEBENTURE

PPF

NSC

POST OFFICE SAVING

SCHEMES

REAL ESTATE

GOLD

CHIT FUNDS

5. ARE YOU AWARE OF MUTUAL FUNDS?

Yes

No

6. WHAT IS YOUR PERCEPTION ABOUT MUTUAL FUNDS?

Safe

Risky

Others


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7. WHAT ARE DIFFERENT TYPES OF MUTUAL FUNDS ARE YOU AWARE

OF?

Growth schemes.(provide appreciation of capital over medium to long

term)

Income schemes.(provide regular and continuous income to investor)

Balance schemes.(provide both growth and income)

Money market and Liquid Schemes.(provide easy liquidy preservation of

capital and moderate income).

Tax saving schemes.(offer tax rebates under tax laws)

Guilt funds(generating returns by investing in securities created and issued

by a central govt. or state govt.)

8. WHICH OF THEM DO YOU PREFER?

Growth schemes

Income schemes

Balance schemes

Money Market and Liquid schemes

Tax saving schemes

Guilt Funds

9. comparative study on risk, return and investment according to different age

group

25-35 35-45

45-60

60 & above


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10. HOW DO YOU LOOK MUTUAL FUND COMPANYS?

Brand Name

Good Service

High Yield

Advertisement

Any Other Reason...........................................

11. ARE YOU AWARE OF CD EQUISEARCH MUTUAL FUND LTD?

YES

NO

12. WOULD YOU CONSIDER AVAILING THE FINANCIAL CONSULTANCY

OFFERED BY CD EQUISEARCH MUTUAL FUND LTD?

YES

NO

13. .PLACE THEY BELONG TO

Cities

rural


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NAME:.

PLACE:.

AGE: SIGNATURE

GENDER:.. ( )

Documents

Perception of Mutual funds