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Introduction

INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS ASPECTS.


Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations reali ed are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual !und is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. " Mutual !und is an investment tool that allows small investors access to a well#diversified portfolio of e$uities, bonds and other securities. %ach shareholder participates in the gain or loss of the fund. &nits are issued and can be redeemed as needed. The funds 'et "sset value ('")* is determined each day. Investments in securities are spread across a wide cross#section of industries and sectors and thus the risk is reduced. +iversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with $uantum of money invested by them. Investors of mutual funds are known as unit holders.

ADVANTAGES OF MUTUAL FUND


,ortfolio +iversification ,rofessional management -eduction . +iversification of -isk /i$uidity !le0ibility 1 2onvenience -eduction in Transaction cost 3afety of regulated environment 2hoice of schemes Transparency

DISADVANTAGE OF MUTUAL FUND


'o control over 2ost in the 4ands of an Investor 'o tailor#made ,ortfolios Managing a ,ortfolio !unds +ifficulty in selecting a 3uitable !und 3cheme

Mutual fund

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY


The mutual fund industry in India started in 5678 with the formation of &nit Trust of India, at the initiative of the 9overnment of India and -eserve :ank. Though the growth was slow, but it accelerated from the year 56;< when non# &TI players entered the Industry. In the past decade, Indian mutual fund industry had seen a dramatic improvement, both $ualities wise as well as $uantity wise. :efore, the monopoly of the market had seen an ending phase= the "ssets &nder Management ("&M* was -s7< billion. The private sector entry to the fund family raised the "um to -s. ><? billion in March 5668 and till "pril @??>= it reached the height if -s. 5A>? billion. The Mutual !und Industry is obviously growing at a tremendous space with the mutual fund industry can be broadly put into four phases according to the development of the sector. %ach phase is briefly described as under.

First Phase 19 !"#$


&nit Trust of India (&TI* was established on 5678 by an "ct of ,arliament by the -eserve :ank of India and functioned under the -egulatory and administrative control of the -eserve :ank of India. In 56<; &TI was de#linked

from the -:I and the Industrial +evelopment :ank of India (I+:I* took over the regulatory and administrative control in place of -:I. The first scheme launched by &TI was &nit 3cheme 567>. "t the end of 56;; &TI had -s.7,<?? crores of assets under management.

Se%&'( Phase 19#$"199) *E'tr+ &, P-./i% Se%t&r F-'(s0


56;< marked the entry of non# &TI, public sector mutual funds set up by public sector banks and /ife Insurance 2orporation of India (/I2* and 9eneral Insurance 2orporation of India (9I2*. 3:I Mutual !und was the first non# &TI Mutual !und established in Bune 56;< followed by 2anbank Mutual !und (+ec ;<*, ,unjab 'ational :ank Mutual !und ("ug ;6*, Indian :ank Mutual !und ('ov ;6*, :ank of India (Bun 6?*, :ank of :aroda Mutual !und (Cct 6@*. /I2 established its mutual fund in Bune 56;6 while 9I2 had set up its mutual fund in +ecember 566?."t the end of 5668, the mutual fund industry had assets under management of -s.><,??> crores.

Thir( Phase 199)"122) *E'tr+ &, Pri3ate Se%t&r F-'(s0


5668 was the year in which the first Mutual !und -egulations came into being, under which all mutual funds, e0cept &TI were to be registered and governed. The erstwhile Dothari ,ioneer (now merged with !ranklin Templeton* was the first private sector mutual fund registered in Buly 5668. The 5668 3%:I (Mutual !und* -egulations were substituted by a more comprehensive and revised Mutual !und -egulations in 5667. The industry

now functions under the 3%:I (Mutual !und* -egulations 5667. "s at the end of Banuary @??8, there were 88 mutual funds with total assets of -s. 5,@5,;?A crores.

F&-rth Phase si'%e Fe.r-ar+ 122)


In !ebruary @??8, following the repeal of the &nit Trust of India "ct 5678 &TI was bifurcated into two separate entities. Cne is the 3pecified &ndertaking of the &nit Trust of India with assets under management of -s.@6,;8A crores as at the end of Banuary @??8, representing broadly, the assets of &3 7> scheme, assured return and certain other schemes The second is the &TI Mutual !und /td, sponsored by 3:I, ,':, :C: and /I2. It is registered with 3%:I and functions under the Mutual !und -egulations. consolidation and growth. "s at the end of 3eptember, @??>, there were @6 funds, which manage assets of -s.5A85?; crores under >@5 schemes.

CATEGORIES OF MUTUAL FUND4

M-t-a/ ,-'(s %a' .e %/assi,ie( as ,&//&5 4


6ase( &' their str-%t-re4

Cpen#ended fundsE Investors can buy and sell the units from the fund, at
any point of time.

2lose#ended fundsE These funds raise money from investors only once.
Therefore, after the offer period, fresh investments can not be made into the fund. If the fund is listed on a stocks e0change the units can be traded like stocks (%.g., Morgan 3tanley 9rowth !und*. -ecently, most of the 'ew !und Cffers of close#ended funds provided li$uidity window on a periodic basis such as monthly or weekly. -edemption of units can be made during specified intervals. Therefore, such funds have relatively low li$uidity.

6ase( &' their i'3est7e't &.8e%ti3e4 E9-it+ ,-'(sE


These funds invest in e$uities and e$uity related

instruments. Fith fluctuating share prices, such funds show volatile performance, even losses. 4owever, short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. "t the same time, such funds can yield great capital appreciation as, historically, e$uities have outperformed all asset classes in

the long term. 4ence, investment in e$uity funds should be considered for a period of at least 8#A years. It can be further classified asE i0 I'(e: ,-'(s# In this case a key stock market inde0, like :3% 3ense0 or 'ifty is tracked. Their portfolio mirrors the benchmark inde0 both in terms of

composition and individual stock weight ages. ii0 E9-it+ (i3ersi,ie( ,-'(s" 5??G of the capital is invested in e$uities spreading across different sectors and stocks. iii;0 Di3i(e'( +ie/( ,-'(s" it is similar to the e$uity diversified funds e0cept that they invest in companies offering high dividend yields. i30 The7ati% ,-'(s" Invest 5??G of the assets in sectors which are related through some theme. e.g. #"n infrastructure fund invests in power, construction, cements sectors etc.

30 Se%t&r ,-'(s" Invest 5??G of the capital in a specific sector. e.g. # "
banking sector fund will invest in banking stocks. 3i0 ELSS# %$uity /inked 3aving 3cheme provides ta0 benefit to the investors.

6/a'%e( ,-'(a4 Their investment portfolio includes both debt and e$uity.
"s a result, on the risk#return ladder, they fall between e$uity and debt funds. :alanced funds are the ideal mutual funds vehicle for investors who prefer

spreading their risk across various instruments. !ollowing are balanced funds classesE

i0 De.t"&rie'te( ,-'(s "Investment below 7AG in e$uities. ii0 E9-it+"&rie'te( ,-'(s "Invest at least 7AG in e$uities, remaining in
debt.

De.t ,-'(4 They invest only in debt instruments, and are a good option for
investors averse to idea of taking risk associated with e$uities. Therefore, they invest e0clusively in fi0ed#income instruments like bonds, debentures, 9overnment of India securities= and money market instruments such as certificates of deposit (2+*, commercial paper (2,* and call money. ,ut your money into any of these debt funds depending on your investment hori on and needs.

i0 Li9-i( ,-'(s" These funds invest 5??G in money market instruments, a


large portion being invested in call money market.

ii0 Gi/t ,-'(s ST" They invest 5??G of their portfolio in government
securities of and T#bills.

iii0 F/&ati'< rate ,-'(s " Invest in short#term debt papers. !loaters invest
in debt instruments which have variable coupon rate.

i30 Ar.itra<e ,-'(" They generate income through arbitrage opportunities


due to mis#pricing between cash market and derivatives market. !unds are allocated to e$uities, derivatives and money markets. 4igher proportion (around <AG* is put in money markets, in the absence of arbitrage opportunities.

30 Gi/t ,-'(s LT" They invest 5??G of their portfolio in long#term


government securities.

3i0 I'%&7e ,-'(s LT" Typically, such funds invest a major portion of the
portfolio in long#term debt papers. 3ii0 MIPs" Monthly Income ,lans have an e0posure of <?G#6?G to debt and an e0posure of 5?G#8?G to e$uities. 3iii0 FMPs" fi0ed monthly plans invest in debt papers whose maturity is in line with that of the fund.

INVESTMENT STRATEGIES
1. S+ste7ati% I'3est7e't P/a'4 under this a fi0ed sum is invested each month on a fi0ed date of a month. ,ayment is made through post dated che$ues or direct debit facilities. The investor gets fewer units when the '") is high and more units when the '") is low. This is called as the benefit of -upee 2ost "veraging (-2"* 1. S+ste7ati% Tra's,er P/a'4 under this an investor invest in debt oriented fund and give instructions to transfer a fi0ed sum, at a fi0ed interval, to an e$uity scheme of the same mutual fund. ). S+ste7ati% =ith(ra5a/ P/a'4 if someone wishes to withdraw from a mutual fund then he can withdraw a fi0ed amount each month.

RIS> V?S. RETURN4

The 7a8&r @/a+ers i' the I'(ia' M-t-a/ F-'( I'(-str+ are4
Ma8&r P/a+ers &, M-t-a/ F-'(s I' I'(ia Peri&( *LastA'.s@1 =eeB0
Ra'B 1 1 ) ! C S%he7e Na7e BM 2ore 55 !und # 3eries 5 # 9rowth Date NAV *Rs.0 ;.>A ;.@7 5@.>> 5>.?< 6.?5 5?.@ 6.68 5?.56 7.87 5@>.77 5>5.A5 Last 1 =eeB A.5@ A.?A A.?8 A >.7A >.7@ >.A7 >.A5 8.<A 8.>> 8.5> Si'%e I'%e@ti&' #6>.7> #>?.>@ 5A.8A @?.6@ #5<.5< @8.76 #?.;A @@.86 #;5.<; @6.6< 58.<5

$ # 9 12 11

Mar @7 , @?5@ Tata Indo#9lobal Mar Infrastructure !und # 9rowth @7 , @?5@ Tata 2apital :uilder !und # Mar 9rowth @7 , @?5@ 3tandard 2hartered Mar %nterprise %$uity !und # @7 , 9rowth @?5@ +:3 2hola Infrastructure Mar !und # 9rowth @7 , @?5@ I2I2I ,rudential !usion !und Mar # 3eries III # Institutional # @7 , 9rowth @?5@ +3, Merrill /ynch Micro 2ap Mar !und # -egular # 9rowth @7 , @?5@ I2I2I ,rudential !usion !und Mar # 3eries III # -etail # 9rowth @7 , @?5@ +:3 2hola 3mall 2ap !und # Mar 9rowth @7 , @?5@ ,rincipal ,ersonal Ta0saver Mar @A , @?5@ :enchmark 3plit 2apital !und Mar # ,lan " # ,referred &nits @7 , @?5@

11 1) 1! 1C

I2I2I ,rudential !M, # 3eries 88 # ,lan " # 9rowth Tata 3I, !und # 3eries I # 9rowth 3ahara -.%."./ !und # 9rowth Tata 3I, !und # 3eries II # 9rowth

Mar @7 , @?5@ Mar @7 , @?5@ Mar @A , @?5@ Mar @7 , @?5@

6.;6 5?.@A <.7> 6.68

@.65 @.8; 5.;7 5.A;

#<.;; @.86 #>6.A@ #?.6>

" mutual fund is a professionally#managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short#term money market instruments, and.or other securities. in other words we can say that " Mutual !und is a trust registered with the 3ecurities and %0change :oard of India (3%:I*, which pools up the money from individual . corporate investors and invests the same on behalf of the investors .unit holders, in e$uity shares, 9overnment securities, :onds, 2all money markets etc., and distributes the profits. The value of each unit of the mutual fund, known as the net asset value ('")*, is mostly calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. The value of all the securities in the portfolio in calculated daily. !rom this, all e0penses are deducted and the resultant value divided by the number of units in the fund is the fundHs '").

NAV D

T&ta/ 3a/-e &, the ,-'(EEEEEE. N&. &, shares %-rre't/+ iss-e( a'( &-tsta'(i'<

A(3a'ta<es &, a MF Mutual !unds provide the benefit of cheap access to e0pensive stocks Mutual funds diversify the risk of the investor by investing in a basket of assets " team of professional fund managers manages them with in#depth research inputs from investment analysts. :eing institutions with good bargaining power in markets, mutual funds have access to crucial corporate information, which individual investors cannot access.

=OR>ING OF A MUTUAL FUND4

The entire mutual fund industry operates in a very organi ed way. The investors, known as unit holders, handover their savings to the "M2s under various schemes. The objective of the investment should match with the objective of the fund to best suit the investorsH needs. The "M2s further invest the funds into various securities according to the investment objective. The return generated from the investments is passed on to the investors or reinvested as mentioned in the offer document.

M-t-a/ F-'(s
:efore we understand what is mutual fund, itHs very important to know the area in which mutual funds works, the basic understanding of stocks and bonds.

St&%Bs E 3tocks represent shares of ownership in a public company. %0amples of public


companies include -eliance, C'92 and Infosys. 3tocks are considered to be the most common owned investment traded on the market.

6&'(s E :onds are basically the money which you lend to the government or a company,
and in return you can receive interest on your invested amount, which is back over predetermined amounts of time. :onds are considered to be the most common lending investment traded on the market. There are many other types of investments other than stocks and bonds (including annuities, real estate, and precious metals*, but the majority of mutual funds invest in stocks and.or bonds.

=hat Is M-t-a/ F-'(


" mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds*. Fhen you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund.

Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. :ut the biggest advantage to mutual funds is diversification, by minimi ing risk 1 ma0imi ing returns. Thus a Mutual !und is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund

O3er3ie5 &, e:isti'< s%he7es e:iste( i' 7-t-a/ ,-'( %ate<&r+

Fide variety of Mutual !und 3chemes e0ists to cater to the needs such as financial position, risk tolerance and return e0pectations etc. The table below gives an overview into the e0isting types of schemes in the Industry.

T+@e &, M-t-a/ F-'( S%he7es


6Y STRUCTURE

O@e' E'(e( S%he7es


"n open#end fund is one that is available for subscription all through the year. These do not have a fi0ed maturity. Investors can conveniently buy and sell units at 'et "sset )alue (I'")I* related prices. The key feature of open#end schemes is li$uidity.

C/&se E'(e( S%he7es


" closed#end fund has a stipulated maturity period which generally ranging from 8 to 5A 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 e0changes where they are listed. In order to provide an e0it route to the investors, some close#ended funds give an option of selling back the units to the Mutual !und through periodic repurchase at '") related prices. 3%:I -egulations stipulate that at least one of the two e0it routes is provided to the investor.

I'ter3a/ S%he7es
Interval 3chemes are that scheme, which combines the features of open#ended and close#ended schemes. The units may be traded on the stock e0change or may be open for sale or redemption during pre#determined intervals at '") related prices.

6Y NATURE
&nder this the mutual fund is categori ed on the basis of Investment Cbjective. :y nature the mutual fund is categori ed as followE

1. E9-it+ ,-'(4
These funds invest a ma0imum part of their corpus into e$uities holdings. The structure of the fund may vary different for different schemes and the fund managerHs outlook on different stocks. The %$uity !unds are sub#classified depending upon their investment objective, as followsE

+iversified %$uity !unds Mid#2ap !unds 3ector 3pecific !unds Ta0 3avings !unds (%/33*

%$uity investments are meant for a longer time hori on, thus %$uity funds rank high on the risk#return matri0.

1. De.t ,-'(s4
The objective of these !unds is to invest in debt papers. 9overnment authorities, private companies, banks and financial institutions are some of the major issuers of debt papers. :y investing in debt instruments, these funds ensure low risk and provide stable income to the investors. +ebt funds are further classified asE Gi/t F-'(sE Invest their corpus in securities issued by 9overnment, popularly known as 9overnment of India debt papers. These !unds carry ero +efault risk but are associated with Interest -ate risk. These schemes are safer as they invest in papers backed by 9overnment.

I'%&7e F-'(sE Invest a major portion into various debt instruments such as bonds, corporate debentures and 9overnment securities.

MIPsE Invests ma0imum of their total corpus in debt instruments while they take minimum e0posure in e$uities. It gets benefit of both e$uity and debt market. These scheme ranks slightly high on the risk#return matri0 when compared with other debt schemes.

Sh&rt Ter7 P/a's *STPs0E Meant for investment hori on for three to si0 months. These funds primarily invest in short term papers like 2ertificate of +eposits (2+s* and 2ommercial ,apers (2,s*. 3ome portion of the corpus is also invested in corporate debentures.

Li9-i( F-'(sE "lso known as Money Market 3chemes, These funds provides easy li$uidity and preservation of capital. These schemes invest in short#term instruments like Treasury :ills, inter#bank call money market, 2,s and 2+s. These funds are meant for short#term cash management of corporate houses and are meant for an investment hori on of 5day to 8 months. These schemes rank low on risk#return matri0 and are considered to be the safest amongst all categories of mutual funds.

). 6a/a'%e( ,-'(s4 "s the name suggest they, are a mi0 of both e$uity and debt funds.
They invest in both e$uities and fi0ed income securities, which are in line with pre#defined investment objective of the scheme. These schemes aim to provide investors with the best of both the worlds. %$uity part provides growth and the debt part provides stability in returns.

F-rther the 7-t-a/ ,-'(s %a' .e .r&a(/+ %/assi,ie( &' the .asis &, i'3est7e't @ara7eter 3iF, %ach category of funds is backed by an investment philosophy, which is pre#defined in the objectives of the fund. The investor can align his own investment needs with the funds objective and invest accordingly.

6Y INVESTMENT O6GECTIVE

Gr&5th S%he7es4 9rowth 3chemes are also known as e$uity schemes. The aim of these schemes is to provide capital appreciation over medium to long term. These schemes normally invest a major part of their fund in e$uities and are willing to bear short#term decline in value for possible future appreciation.

I'%&7e S%he7es4 Income 3chemes are also known as debt schemes. The aim of these schemes is to provide regular and steady income to investors. These schemes generally invest in fi0ed income securities such as bonds and corporate debentures. 2apital appreciation in such schemes may be limited.

6a/a'%e( S%he7es4 :alanced 3chemes aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. These schemes invest in both shares and fi0ed income securities, in the proportion indicated in their offer documents (normally A?EA?*.

M&'e+ MarBet S%he7esE Money Market 3chemes aim to provide easy li$uidity, preservation of capital and moderate income. These schemes generally invest in safer, short#term instruments, such as treasury bills, certificates of deposit, commercial paper and inter#bank call money.

OTHER SCHEMES

Ta: Sa3i'< S%he7es4 Ta0#saving schemes offer ta0 rebates to the investors under ta0 laws prescribed from time to time. &nder 3ec.;; of the Income Ta0 "ct, contributions made to any %$uity /inked 3avings 3cheme (%/33* are eligible for rebate.

I'(e: S%he7es4 Inde0 schemes attempt to replicate the performance of a particular inde0 such as the :3% 3ense0 or the '3% A?. The portfolio of these schemes will consist of only those stocks that constitute the inde0. The percentage of each stock to the total holding will be identical to the stocks inde0 weight age. "nd hence, the returns from such schemes would be more or less e$uivalent to those of the Inde0.

Se%t&r S@e%i,i% S%he7es4 These are the funds.schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. ,harmaceuticals, 3oftware, !ast Moving 2onsumer 9oods (!M29*, ,etroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors.industries. Fhile these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors.industries and must e0it at an appropriate time.

T+@es &, ret-r's4

There are three ways, where the total returns provided by mutual funds can be enjoyed by investorsE

Income is earned from dividends on stocks and interest on bonds. " fund pays out nearly all income it receives over the year to fund owners in the form of a distribution.

If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass on these gains to investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager, the fundJs shares increase in price. Kou can then sell your mutual fund shares for a profit. !unds will also usually give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares.

Pr&s A %&'s &, i'3esti'< i' 7-t-a/ ,-'(s4

!or investments in mutual fund, one must keep in mind about the ,ros and cons of investments in mutual fund.

A(3a'ta<es &, I'3esti'< M-t-a/ F-'(s4

1. Pr&,essi&'a/ Ma'a<e7e't " The basic advantage of funds is that, they are professional managed, by well $ualified professional. Investors purchase funds because they do not have the time or the e0pertise to manage their own portfolio. " mutual fund is considered to be relatively less e0pensive way to make and monitor their investments.

1. Di3ersi,i%ati&' " ,urchasing units in a mutual fund instead of buying individual stocks or bonds, the investors risk is spread out and minimi ed up to certain e0tent. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimi ed by gains in others.

). E%&'&7ies &, S%a/e " Mutual fund buy and sell large amounts of securities at a time, thus help to reducing transaction costs, and help to bring down the average cost of the unit for their investors.

!. Li9-i(it+ " Bust like an individual stock, mutual fund also allows investors to li$uidate their holdings as and when they want.

C. Si7@/i%it+ " Investments in mutual fund is considered to be easy, compare to other available instruments in the market, and the minimum investment is small. Most "M2 also have automatic purchase plans whereby as little as -s. @???, where 3I, start with just -s.A? per month basis.

=h+ has it .e%&7e &'e &, the /ar<est ,i'a'%ia/ i'str-7e'tsH


If we take a look at the recent scenario in the Indian financial market then we can find the market flooded with a variety of investment options which includes mutual funds, e$uities, fi0ed income bonds, corporate debentures, company fi0ed deposits, bank deposits, ,,!, life insurance, gold, real estate etc. all these investment options could be judged on the basis of various parameters such as# return, safety convenience, volatility and li$uidity. measuring these this in a tabular form investment options on the basis of the mentioned parameters, we get

Ret-r' E9-it+ 6&'(s C&. De.e't-re s C&. FDs 6a'B De@&sits PPF Li,e I's-ra'%e G&/( Rea/ Estate M-t-a/ F-'(s Moderate /ow Moderate /ow Moderate 4igh 4igh 4igh Moderate Moderate

Sa,et+ /ow 4igh Moderate

V&/ati/it+ 4igh Moderate Moderate

Li9-i(it+ 4igh Moderate /ow

C&'3e'ie '%e Moderate 4igh /ow

/ow 4igh 4igh 4igh 4igh Moderate 4igh

/ow /ow /ow /ow Moderate 4igh Moderate

/ow 4igh Moderate /ow Moderate /ow 4igh

Moderate 4igh 4igh Moderate 9old /ow 4igh

Fe can very well see that mutual funds outperform every other investment option. Cn three parameters it scores high whereas itHs moderate at one. comparing it with the other options, we find that e$uities gives us high returns with high li$uidity but its volatility too is high with

low safety which doesnHt makes it favourite among persons who have low risk# appetite. %ven the convenience involved with investing in e$uities is just moderate.

'ow looking at bank deposits, it scores better than e$uities at all fronts but lags badly in the parameter of utmost important ie= it scores low on return , so itHs not an happening option for person who can afford to take risks for higher return. The other option offering high return is real estate but that even comes with high volatility and moderate safety level, even the li$uidity and convenience involved are too low. 9old have always been a favourite among Indians but when we look at it as an investment option then it definitely doesnHt gives a very bright picture. "lthough it ensures high safety but the returns generated and li$uidity are moderate. 3imilarly the other investment options are not at par with mutual funds and serve the needs of only a specific customer group. 3traightforward, we can say that mutual fund emerges as a clear winner among all the options available. The reasons for this beingE

I0M-t-a/ ,-'(s %&7.i'e the a(3a'ta<e &, ea%h &, the i'3est7e't @r&(-%ts4 mutual fund is one such option which can invest in all other investment options. Its principle of diversification allows the investors to taste all the fruits in one plate. just by investing in it, the investor can enjoy the best investment option as per the investment objective.

II0(is@e'se the sh&rt%&7i'<s &, the &ther &@ti&'s4 every other investment option has more or les some shortcomings. 3uch as if some are good at return then they are not safe, if some are safe then either they have low li$uidity or low safety or bothL.likewise, there e0ists no single option which can fit to the need of everybody. :ut mutual funds have definitely sorted out this problem. 'ow everybody can choose their fund according to their investment objectives.

III0 Ret-r's <et a(8-ste( ,&r the 7arBet 7&3e7e'ts E as the mutual funds are managed by e0perts so they are ready to switch to the profitable option along with the market movement. 3uppose they predict that market is going to fall then they can sell some of their shares and book profit and can reinvest the amount again in money market instruments.

IV0 F/e:i.i/it+ &, i'3este( a7&-'t4 Cther then the above mentioned reasons, there e0ists one more reason which has established mutual funds as one of the largest financial intermediary and that is the fle0ibility that mutual funds offer regarding the investment amount. Cne can start investing in mutual funds with amount as low as -s. A?? through 3I,s and even -s. 5?? in some cases.

H&5 (& i'3est&rs %h&&se .et5ee' ,-'(sH


Fhen the market is flooded with mutual funds, itHs a very tough job for the investors to choose the best fund for them. Fhenever an investor thinks of investing in mutual funds, he must look at the investment objective of the fund. Then the investors sort out the funds whose investment objective matches with that of the investorHs. 'ow the tough task for investors start, they may carry on the further process themselves or can go for advisors like 3:I . Cf course the investors can save their money by going the direct route i.e. through the "M2s directly but it will only save 5#@.@AG (entry load* but could cost the investors in terms of returns if the investor is not an e0pert. 3o it is always advisable to go for M! advisors. The mf advisorsH thoughts go beyond just investment objectives and rate of return. 3ome of the basic tools which an investor may ignore but an mf advisor will always look for are as followE

M&st @&@-/ar st&%Bs a7&'< ,-'( 7a'a<ers 7ar%h12110

*as &' )2th

2ompany 'ame -eliance industries limited /arsen 1 toubro limited I2I2I bank limited 3tate bank of India :harti airtel limited :harat heavy electricals limited -eliance communication ventures ltd Infosys technologies ltd Cil1 'atural gas corporation ltd. IT2 ltd.

no. of funds @>> @?7 @?@ 5;; 5;> @?? 576 5A6 5A8 5>8

Fe can easily point out that reliance industries limited emerges as a true winner over here attracting the attention of almost@>> managers well followed by /arsen 1 toubro ltd I2I2I bank ltd and :harat heavy electricals ltd. The other companies succeeding in getting a place at top 5? are 3:I, :harti airtel limited, reliance communications, Infosys technologies limited, C'92 and at last IT2 ltd.

=hat are the 7&st /-%rati3e se%t&rs ,&r 7-t-a/ ,-'( 7a'a<ersH

This is a $uestion of utmost interest for all the investors even for those who donHt invest in mutual funds. :ecause the investments done by the M!s acts as trendsetters. The investments made by the fund managers are used for prediction. 4uge investments assure li$uidity and reflects appositive picture whereas tight investment policy reflects crunch and investors may look forward for a gloomy picture. Their investments show that which sector is hotM "nd will set the market trends. The e0pert management of the funds will always look for profitable and high paying sectors. 3o we can have look at most lucrative sectors to know about the recent trendsE

Se%t&r 'a7e automotive banking 1 financial services cement 1 construction consumer durables conglomerates chemicals consumer non durables engineering 1 capital goods food 1 beverages information technology media 1 entertainment Manufacturing metals1 mining Miscellaneous oil 1 gas ,harmaceuticals 3ervices Telecom Tobacco &tility

N&. &, MFs .etti'< &' it @AA 567 @8< A5 @5; @A6 5>7 85< 5<A @;> @5; @A6 @<A @A? @6? @A? @?? @7> 5A? @@A

!rom the above data collected we can say that engineering 1 capital goods sector has emerged as the hottest as most of the funds are betting on it. Fe can say that this sector is on boom and presents a bright picture. Cther than it other sectors on height are oil 1 gas, telecom, metals 1 mining and information technology. 3ectors performing average are automotive, cement 1 construction, chemicals, media 1 entertainment, manufacturing, miscellaneous, pharmaceuticals and utility. The sectors which are not so favourite are

banking 1 financial services, conglomerates, consumer non# durables, food 1 beverages, services and tobacco. "nd the sector which failed to attract the fund managers is consumer durables with just A5 funds betting on it. Thus this analysis not only gives a picture of the mindset of fund managers rather it also reflects the li$uidity e0isting in each of the sectors. It is not only useful for investors of mutual funds rather the investors of e$uity and debt too could take a hint from it. "sset allocation by fund managers are based on several researches carried on so, it is always advisable for other investors too take a look on it. It can be further presented in the form of a graph as followE

C:B%2TI)%3 C! T4% 3T&+K

O6GECTIVES OF THE STUDY


To find out the ,references of the investors for "sset Management 2ompany.

To know the ,references for the portfolios.

To know why one has invested or not invested in 3:I Mutual fund

To find out the most preferred channel.

To find out what should do to boost Mutual !und Industry. To know the awareness of mutual fund being as an investment. To know the most attractive scheme of mutual fund. according to investor of /ucknow city.

To know the satisfaction level of mutual fund. To know the most admired and attractive feature of mutual fund

SCOPE OF STUDY

S%&@e &, the st-(+

" big boom has been witnessed in Mutual !und Industry in resent times. " large number of new players have entered the market and trying to gain market share in this rapidly improving market. The research was carried on in /ucknow. I had been sent at one of the branch of 3tate :ank of India /ucknow where I completed my ,roject work. I surveyed on my ,roject Topic investment in Mutual !und on the visiting customers of the 3:I 4ajratganj :ranch. The study will help to know the preferences of the customers, which company, portfolio, mode of investment, and option for getting return and so on they prefer. This project report may help the company to make further planning and strategy.

-esearch Methodology

RESEARCH METHODOLOGY
This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. Cne of the most important users of research methodology is that it helps in identifying the problem, collecting, analy ing the re$uired information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is re$uired by the top management to assist them for the better decision making both day to day decision and critical ones.

Data s&-r%es4
-esearch is totally based on primary data. 3econdary data can be used only for the reference. -esearch has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites.

Sa7@/i'<4
Sa7@/i'< @r&%e(-re4

The sample was selected of them who are the customers.visitors of 3tate :ank if India, :oring 2anal -oad :ranch, irrespective of them being investors or not or availing the services or not. It was also collected through personal visits to persons, by formal and informal talks and through filling up the $uestionnaire prepared. The data has been analy ed by using

mathematical.3tatistical tool.

Sa7@/e siFe4

The sample si e of my project is limited to @?? people only. Cut of which only 5@? people had invested in Mutual !und. Cther ;? people did not have invested in Mutual !und.

Sa7@/e (esi<'4

+ata has been presented with the help of bar graph, pie charts, line graphs etc.

+ata

"nalysis 1 Interpretation

ANALYSIS A INTERPRETATION OF THE DATA


1. *a0 A<e (istri.-ti&' &, the I'3est&rs &, L-%B'&5

"ge 9roup 'o. of Investors

NO 8? 5@

85#8A 5;

87#>? 8?

>5#>A @>

>7#A? @?

PA? 57

I'3est&rs i'3este( i' M-t-a/ F-'(

)C )2 1C 12 1C 12 C 2 ID)2 )1")C ) "!2 !1"!C ! "C2


A<e <r&-@ &, the I'3est&rs

)2 11 1#

1!

12

JC2

I'ter@retati&'4
"ccording to this chart out of 5@? Mutual !und investors of /ucknow the most are in the age group of 87#>? yrs. i.e. @AG, the second most investors are in

the age group of >5#>Ayrs i.e. @?G and the least investors are in the age group of below 8? yrs.

*.0. E(-%ati&'a/ K-a/i,i%ati&' &, i'3est&rs &, L-%B'&5


E(-%ati&'a/ K-a/i,i%ati&' 9raduate. ,ost 9raduate &nder 9raduate Cthers Total N-7.er &, I'3est&rs ;; @A < 5@?

L 1)L

$1L

Gra(-ate?P&st Gra(-ate Others

U'(er Gra(-ate

I'ter@retati&'4
Cut of 5@? Mutual !und investors <5G of the investors in /ucknow are 9raduate.,ost 9raduate, @8G are &nder 9raduate and 7G are others (under 432*.

%0. O%%-@ati&' &, the i'3est&rs &, L-%B'&5

O%%-@ati&'
9ovt. 3ervice ,vt. 3ervice :usiness "griculture Cthers .

N&. &, I'3est&rs


8? >A 8A > 7

C2 N&. &, I'3est&rs !2 )2 12 12 2 G&3t. Ser3i%e P3t. Ser3i%e 6-si'ess )C !C )2 ! A<ri%-/t-re Others

O%%-@ati&' &, the %-st&7ers

I'ter@retati&'4
In Cccupation group out of 5@? investors, 8;G are ,vt. %mployees, @AG are :usinessman, @6G are 9ovt. %mployees, 8G are in "griculture and AG are in others.

*(0. M&'th/+ Fa7i/+ I'%&7e &, the I'3est&rs &, L-%B'&5. I'%&7e Gr&-@
NO5?,??? 5?,??5#5A,??? 5A,??5#@?,??? @?,??5#8?,??? P8?,???

N&. &, I'3est&rs


A

5@ @; >8 8@

C2 N&. &, I'3est&rs !2 )2 12 12 2 C ID12 1# 11 12"1C 1C"12 12")2 J)2 !) )1

I'%&7e Gr&-@ &, the I'3est&rs' *Rs. i' Th.0

I'ter@retati&'4
In the Income 9roup of the investors of /ucknow, out of 5@? investors, 87G investors that is the ma0imum investors are in the monthly income group -s. @?,??5 to -s. 8?,???, 3econd one i.e. @<G

investors are in the monthly income group of more than -s. 8?,??? and the minimum investors i.e. >G are in the monthly income group of below -s. 5?,???

*10 I'3est&rs i'3este( i' (i,,ere't Bi'( &, i'3est7e'ts. Dind of Investments
3aving ".2

!i0ed deposits Insurance Mutual !und ,ost office ('32* 3hares.+ebentures 9old.3ilver -eal %state

'o. of -espondents 56A 5>; 5A@ 5@? <A A? 8? 7A

>i'(s &, I'3est7e't

C
G ,,i &/ % ( -r e* < a' NS ?Si/ A? 3e %e C0 % r

)2 C2 $C 112 1C1 1!# 19C 2 C2 122 1C2 122 1C2

Sa

3i '

I' s

P& st

N&.&, Res@&'(e'ts

I'ter@retati&'4 !rom the above graph it can be inferred that out of @??
people, 6<.AG people have invested in 3aving ".c, <7G in Insurance, <>G in !i0ed +eposits, 7?G in Mutual !und, 8<.AG in ,ost Cffice, @AG in 3hares or +ebentures, 5AG in 9old.3ilver and 8@.AG in -eal %state.

). Pre,ere'%e &, ,a%t&rs 5hi/e i'3esti'<


!actors (a* /i$uidity (b* /ow -isk (c* 4igh -eturn 'o. of -espondents >? 7? 7> 87 (d* Trust

18%

20%

32%

30%

L iquidity

L owR isk

H ig hR eturn

T rust

I'ter@retati&'4
Cut of @?? ,eople, 8@G ,eople prefer to invest where there is 4igh -eturn, 8?G prefer to invest where there is /ow -isk, @?G prefer easy /i$uidity and 5;G prefer Trust

!. A5are'ess a.&-t M-t-a/ F-'( a'( its O@erati&'s

-esponse 'o. of -espondents

Kes 58A

'o 7A

33%

67%

Y es

No

I'ter@retati&'4
!rom the above chart it is inferred that 7<G ,eople are aware of Mutual !und and its operations and 88G are not aware of Mutual !und and its operations.

C. S&-r%e &, i',&r7ati&' ,&r %-st&7ers a.&-t M-t-a/ F-'(


S&-r%e &, i',&r7ati&' "dvertisement ,eer 9roup :ank !inancial "dvisors N&. &, Res@&'(e'ts 5; @A 8? 7@

7 0 6 0 5 0 0 3 0 2 0 2 5 1 0 1 8 0 $d%ertise& ent 'eer (rou#

No! o" R es#ondents

6 2 3 0 ) * nk + in*n,i* $d%isors

. our,e o" /n"or& *tion

I'ter@retati&'4
!rom the above chart it can be inferred that the !inancial "dvisor is the most important source of information about Mutual !und. Cut of 58A -espondents, >7G know about Mutual fund Through !inancial "dvisor, @@G through :ank, 56G through ,eer 9roup and 58G through "dvertisement.

7. I'3est&rs i'3este( i' M-t-a/ F-'(

Res@&'se K%3 'C Total

N&. &, Res@&'(e'ts 5@? ;? @??

N& !2L

Yes 2L

I'ter@retati&'4
Cut of @?? ,eople, 7?G have invested in Mutual !und and >?G do not have invested in Mutual !und.

$. Reas&' ,&r '&t i'3este( i' M-t-a/ F-'(


Reas&' 'ot "ware 4igher -isk 'ot any 3pecific -eason N&. &, Res@&'(e'ts

C C 12

13%

6%

81%
Not $w*re H ig her R is k Not $ny

I'ter@retati&'4
Cut of ;? people, who have not invested in Mutual !und, ;5G are not aware of Mutual !und, 58G said there is likely to be higher risk and 7G do not have any specific reason.

#. I'3est&rs i'3este( i' (i,,ere't Assets Ma'a<e7e't C&. *AMC0 Na7e &, AMC
3:IM! &TI 4+!2 -eliance I2I2I ,rudential Dotak Cthers

N&. &, I'3est&rs AA <A 8? <A A7 >A <?

Others HDFC Na7e &, AMC >&taB S6IMF ICICI Re/ia'%e UTI 2 12 !2 N&. &, I'3est&rs 2 )2 !C CC C

$2

$C $C #2

I'ter@retati&'4
In /ucknow most of the Investors preferred &TI and -eliance Mutual !und. Cut of 5@? Investors 7@.AG have invested in each of them, only >7G have invested in 3:IM!, ><G in I2I2I ,rudential, 8<.AG in Dotak and @AG in 4+!2.

9. Reas&' ,&r i'3este( i' S6IMF -eason


"ssociated with 3:I :etter -eturn "gents "dvice

'o. of -espondents
8A A 5A

27%

0%

6%

$ sso,i*ted w ith . )/

)etter Return

$ g ents $ d%i,e

I'ter@retati&'4

Cut of AA investors of 3:IM! 7>G have invested because of its association with :rand 3:I, @<G invested on "gentHs "dvice, 6G invested because of better return.

12. Reas&' ,&r '&t i'3este( i' S6IMF Reas&'


'ot "ware /ess -eturn "gentHs "dvice

N&. &, Res@&'(e'ts


@A 5; @@

3%

38%

28%
Not $w*re L ess Retu rn $g en t1s $d %i,e

I'ter@retati&'4

Cut of 7A people who have not invested in 3:IM!, 8;G were not aware with 3:IM!, @;G do not have invested due to less return and 8>G due to "gentHs "dvice.

11. Pre,ere'%e &, I'3est&rs ,&r ,-t-re i'3est7e't i' M-t-a/ F-'( Na7e &, AMC
3:IM! &TI 4+!2 -eliance I2I2I ,rudential Dotak Cthers

N&. &, I'3est&rs <7 >A 8A ;@ ;? 7? <A

5thers
N*& e o" $24

75 60 80 82 35 5 76 20 0 60 80 100

/4 /4 / 'rudenti*H 3 + 4 . ) /2+ 0

No! o" /n%estors

I'ter@retati&'4

Cut of 5@? investors, 7;G prefer to invest in -eliance, 7<G in I2I2I ,rudential, 78G in 3:IM!, 7@.AG in Cthers, A?G in Dotak, 8<.AG in &TI and @6G in 4+!2 Mutual !und.

11. Cha''e/ Pre,erre( .+ the I'3est&rs ,&r M-t-a/ F-'( I'3est7e't


2hannel 'o. of -espondents !inancial "dvisor <@ :ank 5; "M2 8?

25%

15%
+ in* n,i* - $d%isor ) * nk $24

60%

I'ter@retati&'4
Cut of 5@? Investors 7?G preferred to invest through !inancial "dvisors, @AG through "M2 and 5AG through :ank.

1). M&(e &, I'3est7e't Pre,erre( .+ the I'3est&rs


Mode of Investment 'o. of -espondents Cne time Investment <; 3ystematic Investment ,lan (3I,* >@

35%

65%

5ne ti& e /n%es t& ent

. /'

I'ter@retati&'4
Cut of 5@? Investors 7AG preferred Cne time Investment and 8A G ,referred through 3ystematic Investment ,lan.

1!. Pre,erre( P&rt,&/i&s .+ the I'3est&rs P&rt,&/i&


%$uity +ebt :alanced

N&. &, I'3est&rs


A7 @? >>

37%

6%

17%

6quity

3 e7t

) *-*n,e

I'ter@retati&'4
!rom the above graph >7G preferred %$uity ,ortfolio, 8<G preferred :alance and 5<G preferred +ebt portfolio

1C. O@ti&' ,&r <etti'< Ret-r' Pre,erre( .+ the I'3est&rs


Cption 'o. of -espondents +ividend ,ayout @A +ividend -einvestment 5? 9rowth ;A

21%

8% 71%
3 i%idend '* yout 3 i%idend R ein%es t&ent ( rowth

I'ter@retati&'4
!rom the above graph <5G preferred 9rowth Cption, @5G preferred +ividend ,ayout and ;G preferred +ividend -einvestment Cption.

1 . Pre,ere'%e &, I'3est&rs 5hether t& i'3est i' Se%t&ra/ F-'(s Res@&'se Yes N& N&. &, Res@&'(e'ts 1C 9C

21%

70%

Y es

No

I'ter@retati&'4
Cut of 5@? investors, <6G investors do not prefer to invest in 3ectoral !und because there is ma0imum risk and @5G prefer to invest in 3ectoral !und.

!I'+I'93

FINDINGS
In /ucknow in the "ge 9roup of 87#>? years were more in numbers. The second most Investors were in the age group of >5#>A years and the least were in the age group of below 8? years. In /ucknow most of the Investors were 9raduate or ,ost 9raduate and below 432 there were very few in numbers. In Cccupation group most of the Investors were 9ovt. employees, the second most Investors were ,rivate employees and the least were associated with "griculture. In family Income group, between -s. @?,??5# 8?,??? were more in numbers, the second most were in the Income group of more than -s.8?,??? and the least were in the group of below -s. 5?,???. "bout all the -espondents had a 3aving ".c in :ank, <7G Invested in !i0ed +eposits, Cnly 7?G -espondents invested in Mutual fund. Mostly -espondents preferred 4igh -eturn while investment, the second most preferred /ow -isk then li$uidity and the least preferred Trust. Cnly 7<G -espondents were aware about Mutual fund and its operations and 88G were not. "mong @?? -espondents only 7?G had invested in Mutual !und and >?G did not have invested in Mutual fund.

Cut of ;? -espondents ;5G were not aware of Mutual !und, 58G told there is not any specific reason for not invested in Mutual !und and 7G told there is likely to be higher risk in Mutual !und. Most of the Investors had invested in -eliance or &TI Mutual !und, I2I2I ,rudential has also good :rand ,osition among investors, 3:IM! places after I2I2I ,rudential according to the -espondents. Cut of AA investors of 3:IM! 7>G have invested due to its association with the :rand 3:I, @<G Invested because of "dvisorHs "dvice and 6G due to better return. Most of the investors who did not invested in 3:IM! due to not "ware of 3:IM!, the second most due to "gentHs advice and rest due to /ess -eturn. !or !uture investment the ma0imum -espondents preferred -eliance Mutual !und, the second most preferred I2I2I ,rudential, 3:IM! has been preferred after them. 7?G Investors preferred to Invest through !inancial "dvisors, @AG through "M2 (means +irect Investment* and 5AG through :ank. 7AG preferred Cne Time Investment and 8AG preferred 3I, out of

both type of Mode of Investment. The most preferred ,ortfolio was %$uity, the second most was :alance (mi0ture of both e$uity and debt*, and the least preferred ,ortfolio was +ebt portfolio.

Ma0imum 'umber of Investors ,referred 9rowth Cption for returns, the second most preferred +ividend ,ayout and then +ividend

-einvestment. Most of the Investors did not want to invest in 3ectoral !und, only @5G wanted to invest in 3ectoral !und.

CONCLUSION
-unning a successful Mutual !und re$uires complete understanding of the peculiarities of the Indian 3tock Market and also the psyche of the small investors. This study has made an attempt to understand the financial behavior of Mutual !und investors in connection with the preferences of :rand ("M2*, ,roducts, 2hannels etc. I observed that many of people have fear of Mutual !und. They think their money will not be secure in Mutual !und. They need the knowledge of Mutual !und and its related terms. Many of people do not have invested in mutual fund due to lack of awareness although they have money to invest. "s the awareness and income is growing the number of mutual fund investors are also growing. :rand plays important role for the investment. ,eople invest in those 2ompanies where they have faith or they are well known with them. There are many "M2s in /ucknow but only some are performing well due to :rand awareness. 3ome "M2s are not performing well although some of the schemes of them are giving good return because of not awareness about :rand. -eliance, &TI, 3:IM!, I2I2I ,rudential etc. they are well known :rand,

they are performing well and their "ssets &nder Management is larger than others whose :rand name are not well known like ,rinciple, 3underam, etc. +istribution channels are also important for the investment in mutual fund. !inancial "dvisors are the most preferred channel for the investment in mutual fund. They can change investorsH mind from one investment option to others. Many of investors directly invest their money through "M2 because they do not have to pay entry load. Cnly those people invest directly who know well about mutual fund and its operations and those have time.

SUGGESTIONS AND RECOMMENDATIONS

S-<<esti&'s a'( Re%&77e'(ati&'s


The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. 'obody will invest until and unless he is fully convinced. Investors should be made to reali e that ignorance is no longer bliss and what they are losing by not investing. Mutual funds offer a lot of benefit which no other single option could offer. :ut most of the people are not even aware of what actually a mutual fund isM They only see it as just another investment option. 3o the advisors should try to change their mindsets. The advisors should target for more and more young investors. Koung investors as well as persons at the height of their career would like to go for advisors due to lack of e0pertise and time. Mutual !und 2ompany needs to give the training of the Individual !inancial "dvisors about the !und.3cheme and its objective, because they are the main source to influence the investors.

:efore making any investment !inancial "dvisors should first en$uire about the risk tolerance of the investors.customers, their need and time (how long they want to invest*. :y considering these three things they can take the customers into consideration. Kounger people aged under 8A will be a key new customer group into the future, so making greater efforts with younger customers who show some interest in investing should pay off. 2ustomers with graduate level education are easier to sell to and there is a large untapped market there. To succeed however, advisors must provide sound advice and high $uality. 3ystematic Investment ,lan (3I,* is one the innovative products launched by "ssets Management companies very recently in the industry. 3I, is easy for monthly salaried person as it provides the facility of do the investment in %MI. Though most of the prospects and potential investors are not aware about the 3I,. There is a large scope for the companies to tap the salaried persons .

Li7itati&'4

3ome of the persons were not so responsive.

,ossibility of error in data collection because many of investors may have not given actual answers of my $uestionnaire.

3ample si e is limited to @?? visitors of 3tate :ank of India , :oring 2anal -oad :ranch, /ucknow out of these only 5@? had invested in Mutual !und.. The sample si e may not ade$uately represent the whole market. 3ome respondents were reluctant to divulge personal information which can affect the validity of all responses. The research is confined to a certain part of /ucknow.

6I6LIOGRAPHY
'%F3 ,",%-3 C&T/CCD MC'%K T%/%)I3IC' 24"''%/ (2':2 ""F"B* M&T&"/ !&'+ 4"'+ :CCD !"2T 34%%T "'+ 3T"T%M%'T FFF.3:IM!.2CM FFF.MC'%K2C'T-C/.2CM FFF."M!II'+I".2CM FFF.C'/I'%-%3%"-24C'/I'%.2CM FFF. M&T&"/!&'+3I'+I".2CM

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