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FINAL RESEARCH PROJECT
FACTORS INFLUENCING THE INVESTMENT
CHOICE OF MUTUAL FUNDS
Submitted in partial fulfillment of PGDM program
2011-13
Submitted by
Name: Shalini Sharma
19/073
Apeejay School of Management
New Delhi
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Certificate by Guide
This is to certify that Final Research Project work done on Factors
influencing the investment choice of Mutual Funds submitted to Apeejay
School of Management, Dwarka by Shalini Sharma in partial fulfillment of
the requirement for the award of Post Graduate Diploma in Management, is
a work carried out by her under my supervision and guidance. This work has
not been submitted anywhere else for any other degree/diploma. The original
work was carried out in Apeejay School of Management.
Date: Guide Name: Prof. Divya Jindal
Apeejay School of Management Designation: Asst. Professor
Dwarka, New Delhi
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DECLARATION
I hereby declare that the research project work entitled Factors
influencing the investment choice of Mutual Funds is submitted to
Apeejay School of Management, Dwarka is a record of original work
done by me under the guidance of Prof. Divya Jindal, faculty member
Apeejay School of Management, Dwarka and this research project work
has not been performed on the basis for the award of any degree or
diploma and similar project if any.
Name: Shalini Sharma
Roll number: 19/073
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ACKNOWLEDGEMENT
This comprehensive work owes credit to multitude of people. Certainly I
acknowledge the contribution of the pioneers in the finance field, especially those
whose teachings has become a part of my thinking. I thank Prof. Divya Jindal my
Faculty Mentor for her variety of inputs in the completion of the project also I
thank those hundred individual investors who has helped me in carrying out the
survey successfully. Finally, on my respective home front I thank my family and
friends who have provided love and inspiration over the years. Without the support
of all these dear people this project would not exist.
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INDEX
S.NO. CHAPTER PAGE NO.
Executive summary 118
CH.1 Introduction 212
1.1 Mutual fund 3
1.2 Other different modes of investment 4
1.3 Regulatory authority 5
1.4 Association of Mutual Funds in India 8
1.5 Asset Management Company 8
1.6 Diversification in mutual funds 9
1.7 Disclosure in mutual fund investment 10
1.8 Types of Mutual Funds Schemes in India 11
1.9 Overview of existing schemes in mutual fund
category
14
1.10 Advantages of Investing in Mutual Funds 15
1.11 Disadvantages of Investing in Mutual Funds 16
1.12 Entry and Exit load 17
1.13 ULIPS 18
1.14 Expense ratio 18
CH.2 Indian Mutual fund industry 1922
CH.3 Literature review 23- 28
Objective of the study 29
CH.4 Research design and methodology 3035
4.1 Research design 31
4.2 Framework of analysis 31
4.3 Description of factors 31
CH.5 Data analysis and findings 36-33
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Table 5.1.1 Profile of participants in the survey on
the basis of demographic factors
37
Pie diagram 1distribution of male and female in the
survey
38
5.1 Attitude of investors towards investment 38
5.2 Investors Opinion on Objective of Selecting Mutual
Fund Schemes
38
Table 5.2.1 Features of mutual fund 39
5.3 Importance of Rating of the Asset Management
Company
39
Table 5.3.1 39
5.4 Sources of Information gathered about a mutual fund
are different for the investor
40
Table 5.4.1 40
Pie chart 2 Sources of information of a mutual fund 40
5.5 Disclosure of mutual fund 42
Table 5.5.1 42
5.6 Past performance of the scheme 43
Table 5.6.1 43
Pie chart 3 Preference for the Past performance of
the scheme
43
5.7 Behavior of investors towards Withdrawal/Exit
Facility of Mutual Fund
44
Table 5.7.1 44
5.8 Importance of infrastructure like agency network,
research wing, expertise in money management to
the investors
44
Table 5.8.1 44
5.9 Relationship between income of the investor and 45
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number of mutual fund purchased by them.
Table 5.9.1 Pearsons coefficient correlation 45
5.10 Relationship between income of investor and the
feature of mutual fund selected
46
Table 5.10.1 codes for annual income 46
Table 5.10.2 46
5.11 Relationship between gender of the investor and tax
benefit
47
Table 5.11.1 47
Table 5.11.2 T-test for gender and number of mutual
fund purchased by the investor.
47
CH.6 Conclusion and suggestions 48-51
6.1 Conclusion 49
6.2 Suggestions 51
CH.7 Limitations 52
Bibliography 54-57
Appendix 5864
Data of the survey 59
Sample questionnaire 60
The list of mutual fund name and asset under
management by the AMCs
61