A PROJECT REPORT

INTRODUCTION TO COMPANY Master Trust Group is one of the leading financial services company in India. We have a strong belief in nurturing investment culture, attitude and inculcating a very strong approach towards value investing forms the central part of any sound investment philosophy. With an impeccable track record in client servicing of over two decades, we have now grown to 650+ strong employee organization with over 1,50,000+ client relationships. At Master Trust, our endeavor is to constantly meet every financial need of our esteemed clients.mastertrust- is a one point shop for all the investment needs of a customer. The one-stop destination is specifically targeted towards the retail customers who require a very strong relationship driven approach towards value investing. The philosophy ofmastertrust has its genesis from Master Trust groups belief in nurturing the investment culture towards value investing.

Mission :To always earn the right to be our clients first choice through personal & social wealth maximization

Vision :To be well diversified financial shop for wealth creation and being an ideal service provider in our domain of business

Corporate Philosophy Becoming an expert at anything takes a strong will, unyielding determination and pure ability

Value System

GROUP MILESTONES

1985 : Company was incorporated by the name of Arora Financial Consultants Limited

1993 : Acquired status of SEBI accredited Category-I Merchant Bankers under the name Master Trust Limited

1994 : Master Capital Services Ltd. acquired membership of NSE

1995 : Master Trust Ltd. came out with an IPO

1997 : Became RBI approved Full Fledged Money Changers.

1999 : Launched Depository Services as a Depository participant of NSDL.

2001 : Launched Depository Services as depository participant of CDSL

2002 : Entered into insurance business as advisor for Life & General Insurance

2004 : Became member of NCDEX and MCX

Became Insurance Broker under the name of M/s Master Insurance Brokers

2005 : Acquired the membership of Bombay Stock Exchange Limited

Commenced Internet Trading

Became SEBI Registered Portfolio Manager

2007 : Set up regional offices at Baroda, Kolkata, Hyderabad, Allahabad, Hissar, Bhubneshwar & Ahmedabad

2008 : Introduced Currency Derivatives trading through MCX-SX & NSE

2009 : Established an arbitrage desk

Implemented Master Swift

Established CRM

2010 : Trading turnover peaks US$1billion/day of group companies

Became members of NSEL and ACE

Arbitrage desk activated in spot commodity

Rebranding exercise of retail services

2011 : Launched its flagship PMS product named Master Quant 10

Started algorithmic trading solutions to its trading clients named Master Pulse/ Master Trader

Opened branches in Jaipur, Patna and Mumbai

2012 : Launched Integrated Amibroker and Metatrader charting platform for clients

Declared India's best Derivatives Broker by BSE

Crossed 10,000 clients in currency segment on NSE

Acquired membership of MCX-SX India's new stock exchange in both equity as well as derivatives segment

Activated SLBM segment on NSE as a new asset class for our esteemed customers

BOARD OF DIRECTORSMr. Harjeet Singh Arora (FCA, FCS), As a founder entrepreneur, he has been instrumental in making Master Group one of the leading Financial Services players in India. He laid the foundation of the group in 1985 under the name of Arora Financials (P) Ltd. He has handled more than 150 public issues and has been involved in many other merchant banking & investment banking mandates of top corporate of India. He has over 30 years of experience in Corporate Finance, Capital Market and Financial Advisory Services.

Mr. R.K.Singhania (F.C.A.) is another co-promoter of the group. He had over 10 years experience as Director (Finance) with a top Corporate before joining the group. He is having more than 30 years experience in Corporate Strategy, Tax Planning, Financial Engineering and M & A space.

Mr. Pavan Chhabra (F.C.A.) is having a rich experience of more than 20 years in Primary and Secondary Capital Market, Institutional Broking Business and other Merchant Banking activities.

Mr. G.S. Chawla (B.E., M.B.A., D.B.F.) has worked with Public Financial Institutions & Corporate for more than 12 years. He also has 15 years rich experience of Capital Market, Finance, Merchant Banking, Research, IT and other related activities with group.

Mr. Harinder Singh * (B.Com, I.C.W.A.inter) has been monitoring the Secondary Market operations of the group for more than 15 years.

Mr. Sanjay Sood (F.C.A.) is having more than 15 years of experience in Merchant Banking, Foreign Exchange Management, Financial and Retail services.He ceased to be director of the Company w.e.f. 01.04.2014

Mr. Puneet Singhania* (M.B.A., C.F.A.) is involved in new initiatives in the group and assists other Directors in corporate strategy. Prior to Joining the Company, he was working with ING Investment Management in India in their equity fund management department.

Mr.Jashan Arora* (A.C.A.) is overseeing the arbitrage business and also marketing initiatives on all India Level. He is actively involved on the I-Banking front and private equity deals for the company.

FINANCIAL PLANNINGFinancial Planningis a process for you to meet your financial goals keeping in mind your assets, liabilities, income, expenses & price inflation togetherBut do you really need financial planning? Not really if you have a money machine at your home and can print as much money as you want but that is not the case even withMr. Mukesh AmbaniorMr. Bill GatesEveryone needs financial planning to answer questions like: How much do I need in ten years time to buy a house? How much should I invest now to get that money in ten years? What should be my return on investments? What instruments would give me those kind of returns? Are the instruments suitable for me based on my risk tolerance and risk taking capacity?How do I monitor the investments?Many a times people are not able to differentiate between risk tolerance and risk taking capacity and that is where expert financial planners at mastertrust help you differentiate between the two and answer and implement all your questions above.

Financial Planning includes Investment planning, Risk Management & Insurance Planning, Retirement Planning Tax Planning & Estate Planning.The company carry's Merchant Banking activities, ranging from Issue Management to Advisory Services and Underwriting of Issues. In 1993 SEBI accredited Category- I Merchant Bankers under the name of M/s Master Capital Services Ltd. A "Merchant Banker" could be defined as " An organization that acts as an intermediary between the issuers and the ultimate purchasers of securities in the primary security market". Merchant Banker has been defined under the Securities & Exchange Board of India (Merchant Bankers) Rules, 1992 as " any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as manager, consultant, advisor or rendering corporate advisory service in relation to such issue management". As a Merchant Banker, Master Capital Services Ltd provides: Management of Capital Issues Management of Buybacks, Takeovers and Delisting offers Private placement of Debt and Equity Merger and Amalgamations

MERCHANT BANKINGLoan Syndication"We also provide focused corporate finance advisory services for SMEs in the areas of Mergers & Acquisitions, Private Equity Placements, IPOs and High Yield Debt. We see specific opportunities in cross border M&As that would bring in strategic benefits and growth opportunities for companies in the SME sector and we are already seeing good attraction in this area".Our AssociationWe have been associated with the following Groups/Mandates in various capacities as Merchant Bankers.1. Oswal Agro Group of Companies.2. Vardhman Group of Companies.3. Trident Group of Companies4. Surya Roshni Ltd.5. Telephone Cables Ltd.6. Jaidka Foods Ltd.7. Asian Lakto Group of Companies.8. Vee Kay Fibres Ltd.9. PHFGroup Of Companies10. Parkash Industries Ltd.11. Samana Steel Ltd.12. Shreyans Paper Mills Ltd.13. Ritesh Group of Industries14. Oswal Spinning Group of Companies15. Arihant Group of Companies16. Thapar Group of Companies17. Punjab Alkalies & Chemicals Ltd.18. Sigma Cements Ltd.19. Tokyo Plast Ltd.20. R.S Petro Chemicals Ltd.

PUBLIC OFFERS HANDLEDPublic Offer of following Target companies has been handled as Managers.1. Esteem Capital & Management services Ltd.2. Mohan Fibre Products Ltd.3. Oswal Overseas Ltd.4. AEC India Ltd.5. AEC Enterprises Ltd.6. Polo Hotels Ltd.7. Yokogawa Bluestar Ltd.8. Shivalik Agro Poly Products Ltd.Besides these we have handled IPOs / Right issues of large number of midcap companies.

FOREXWith dedicated forex bureaus offering travel related foreign exchange services from special counters even beyond banking hours, we offer one of the largest bouquet of FX Services at very competitive prices. These forex bureau also offer door delivery of foreign exchange to corporate and other specified customers.Services Offered Retail Foreign Exchange Sale & Purchase of Currency Notes & Travellers Cheques Encashment of Travellers Cheques Western Union Money Transfer Travel Insurance

Western Union Money TransferWestern Union is a global leader in money transfer services, with a history of pioneering service dating back more than 150 years.We have tied up with BTI SITA an agent of Western Union for secure transfer of money into India from almost anywhere in the world. You can quickly and easily receive money from over 200,000 Western Union Agent locations in over 190 countries worldwide. Money transfers make it easy for you to assist family or friends back home.When you've got to receive money, and you've got to do it fast, turn to mastertrust INSURANCEFuture is uncertain and one needs to provide for the uncertainty today. We at"mastertrust"help you secure your future through insurance products. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.

Life StagePrimary NeedLife Insurance Product

Young (unmarried)Asset buildupWealth creation products

Young (married)Asset buildup and protectionWealth creation and mortgage protection products

Married & Kids Children's educationAsset buildup and protectionEducation, mortgage protection & wealth creation products

Middle aged & Teenage ChildrenRetirement planning and asset protectionRetirement solutions & mortgage protection products

Any Life StageHealth plansHealth Insurance products

Our Thrust is To give value added and quality services to the insuring public and enable them to get proper insurance coverage that will adequately indemnify them in time of need. To give risk management back up to clients through our team of managers and experienced executives. To work together with the customers, combining our skills, technologies and experience - no matter what your business is or how difficult the situation is - we give it the correct perception.Our approach to insurance broking is holistic. mastertrust critically views the need and adequacy of Insurance from a client's perspective: Define risk profile Propose a risk management plan Source insurance quotes Evaluate quotes with recommendations Focus on coverage and cost optimization Placement of insurance as per clients choice Validate the policy in line with proposal Policy updation Our motto is "Total Customer Satisfaction."Our core value helps us to build and sustain enduring corporate relationships.As always, we put your needs first.

INSURANCE PRODUCTSGeneral Insurance Products Mediclaim Insurance Householder Policy Personal Accident Policy Motor Insurance Overseas Mediclaim Policy Shop Keeper Insurance Policy Fire & Loss Of Profit Insurance Public Liability Insurance Group Mediclaim Insurance

Life Insurance Products Unit Linked Insurance Plans Endowment Plans Term Plans Money Back Child Plans Retirement Solutions Single Premium Plans Keymans & Partners Insurance

Depository ServicesBranch Master Capital Services Ltd. boasts of an ever-growing customer base of over 95,000 account holders under its retail brand - mastertrust. We are depository participants with the NSDL & CDSL for trading and settlement of dematerialized shares. We perform clearing services for all securities transactions through our accounts. We offer depository services to create a seamless transaction platform execute trades and settle these transactions. Depository Services is part of our value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs.

TYPES OF ACCOUNTS Resident individual HUF Partnership Corporate & Clearing member account etc NRI

LOAN AGAINST SHARESWe at Mastertrust work towards servicing our clients in a better way. We provide Loan Against Shares (LAS) facility as we understand your needs and help meet your liquidity requirements. With LAS we allow you loan against our approved list of shares at reasonably competitive rates of interest. This product helps you take advantage of opportunities available in the market without involvement of new funds by you and optimize the returns on your existing portfolio.Requirements for availing this facility:Loan Agreement:The client has to enter into an agreement and related formalities are to be executed with Master Trust Ltd.Bank Account:The client needs to open a current account with a designated bank, with a POA executed in favor of Master Trust Ltd.Demat Account:The client needs to open a demat account with us, with a POA set in favor of Master Trust Ltd.Trading Account:The client needs a trading account with a brokerNRI SERVICES1] NRI FAQ2] NRI Services3] NRI Account at Mastertrust4] NRI Help Desk

1] NRI FAQWho is a Non-Resident Indian (NRI)?"Non Resident Indian" means a person who is a citizen of India or is a person of Indian origin residing outside India for more than 90 days for employment or carrying on business or vocation.Who is an Overseas Corporate Body (OCB)?Overseas Corporate Body (OCB) means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least 60% by NRIs and includes overseas trust in which not less than 60% beneficial interest is held by NRIs directly or indirectly but irrevocably.What is Participatory Notes (PN) ?Participatory notes(PN) is issued by FII-Foreign Institution Investment and its sub accounts. This is the route by which foreign national and or company can invest in Indian Stocks.What is an NRE A/C?A NRE bank account is an external saving bank account opened for Non resident Indians. This is why it is known as Non-Resident External account. Since it is an external account, any monies lying in NRE account can be taken outside the country or in other words, the monies lying in NRE account are fully repatriable. This money can be converted into any foreign currency at the behest of the account holder and can be remitted outside the country.What is Non Repatriable?Non Repatriable : Any amount of profit/ money made by NRI of his investment which is not allowed to be converted into foreign currency or allowed to be taken abroad is called Non Repatriable.What is Repatriable?Repatriable: Any amount of profit or money which an NRI or PIO is allowed to convert into foreign currency and take out of India is called Repatriable.What is PIS?Portfolio Investment Scheme (PIS) is a scheme of the Reserve Bank of India (RBI) defined in Schedule 3 of Foreign Exchange Management Act 2000 under which the Non Resident Indians (NRIs) and Person of Indian Origin (PIOs) can purchase and sell shares and convertible debentures of Indian Companies on a recognized stock exchange in India by routing all such purchase/sale transactions through their account held with a Designated Bank Branch.Any NRI wanting to trade/make fresh investments in the Indian Equity Secondary Market needs and must have one PIS account with only one designated bank in India. Notes: PIS account is applicable only for NRIs and not for resident Indians. It is only for trading in Indian markets and not any other foreign markets. It is applicable only for equity trades and not MF investments.Why is PIS required?For all the Indian companies or companies listed on Indian stock exchanges, there are certain limits which have to be monitored under FEMA-Foreign Exchange Management Act regulations. For any company the foreign investment into that company cannot cross certain limit. This limit is different from company to company and sector to sector. Also individually any NRI or a PIO cannot invest more than 5% in any Indian company.Do NRIs need any permission of RBI to subscribe for IPOs or Private placements of equity shares/convertible debentures of existing or new companies?No. NRIs do not require any permission to invest though Initial Public Offerings (IPOs) or Private placements. In such cases, the Issuing Company should comply with all necessary regulations for issuing securities to a person resident outside India.2] NRI ServicesWe looks forward to meet every financial need of its esteemed clients and following services are being provided: Stock Broking Commodity Broking Depository Merchant Banking Project Consultancy Primary Market Mutual funds Forex Money Transfers Insurance Broking (Life & General) SEBI and Company Law consultancy3] NRI Account at MastertrustDEMAT First Mastertrust will open your NRE Account and PIS with Axis Bank. After PIS is opened RBI permission no. will be obtained from Bank. Open a DEMAT ACCOUNT with repatriable status with Mastertrust. For opening demat accounts besides the documents stated above, we need to have copy of PAN obtained by you from IT department in India.TRADINGAfter having opened NRE, PIS & Demat accounts, you can open trading account with Mastertrust with all the relevant proofs of having opened these accountsand same set of documents that is required for opening Demat account.

CONTACT USHEAD OFFICE

Ludhiana

SCO 19, Feroze Gandhi MarketLudhiana.Phone No: +91-161-3911500Fax No.: +91-161-2402963

REGIONAL OFFICE

Chandigarh

SCO 22-23, Sector 9 DChandigarhPhone No : +91-172-4848000, 3025800Fax: +91-172-2745865

Mumbai

C-1, Jeevan Jyot, 18/20, Cawasjee Patel Street,Mumbai - 400 001Phone No: +91-22-40675300Fax : +91-22-22026067

New Delhi

1012, Arunachal Building,19, Barakhamba Road,New Delhi - 110001.Phone No : +91-11-42111000Fax : +91-11-42111040

Kolkata

6th Floor, Sabarwal House,55 B,Mirza Galib Street,Kolkata - West Bengal - 700016.Phone No : +91-33-40059773-75-76Fax : +91-33-40059774

Uttar Pradesh/Uttarakhand

602, 6th Floor, Ratan Square,Vidhan Sabha Marg,Lucknow - 226001.Phone No : +91-522-4911555

Hyderabad

LG-15, Lower Ground Floor,Bhuvana Towers (CMR), S. D. Road,Secundrabad, Andhra Pradesh - 500003.Phone No : +91-40-30510600-04

INTRODUCTION TOMUTUAL FUND

INTRODUCTION TO SBI MUTUAL FUNDSBI Funds Management Pvt. Ltd. is one of the leading fund houses in the country with an investor base of over 4.6 million and over 20 years of rich experience in fund management consistently delivering value to its investors. SBI Funds Management Pvt. Ltd. is a joint venture between 'The State Bank of India' one of India's largest banking enterprises, and Socit Gnrale Asset Management (France), one of the world's leading fund management companies that manages over US$ 500 Billion worldwide. Today the fund house manages over Rs 28500 crores of assets and has a diverse profile of investors actively parking their investments across 36 active schemes. In 20 years of operation, the fund has launched 38 schemes and successfully redeemed 15 of them, and in the process, has rewarded our investors with consistent returns. Schemes of the Mutual Fund have time after time outperformed benchmark indices, honored us with 15 awards of performance and have emerged as the preferred investment for millions of investors. The trust reposed on us by over 4.6 million investors is a genuine tribute to our expertise in fund management. SBI Funds Management Pvt. Ltd. serves its vast family of investors through a network of over 130 points of acceptance, 28 Investor Service Centres, 46 Investor Service Desks and 56 District Organizers.SBI Mutual is the first bank-sponsored fund to launch an offshore fund Resurgent India Opportunities Fund.Growth through innovation and stable investment policies is the SBI MF credo.PRODUCTS OF SBI MUTUAL FUNDEquity schemesThe investments of these schemes will predominantly be in the stock markets and endeavor will be to provide investors the opportunity to benefit from the higher returns which stock markets can provide. However they are also exposed to the volatility and attendant risks of stock markets and hence should be chosen only by such investors who have high risk taking capacities and are willing to think long term. Equity Funds include diversified Equity Funds, Sectoral Funds and Index Funds. Diversified Equity Funds invest in various stocks across different sectors while sectoral funds which are specialized Equity Funds restrict their investments only to shares of a particular sector and hence, are riskier than Diversified Equity Funds. Index Funds invest passively only in the stocks of a particular index and the performance of such funds move with the movements of the index. Magnum COMMA Fund Magnum Equity Fund Magnum Global Fund Magnum Index Fund Magnum Midcap Fund Magnum Multicap Fund Magnum Multiplier plus 1993 Magnum Sectoral Funds Umbrella MSFU- Emerging Business Fund MSFU- IT Fund MSFU- Pharma Fund MSFU- Contra Fund MSFU- FMCG Fund SBI Arbitrage Opportunities Fund SBI Blue chip Fund SBI Infrastructure Fund - Series I SBI Magnum Taxgain Scheme 1993 SBI ONE India Fund SBI TAX ADVANTAGE FUND - SERIES IDebt schemesDebt Funds invest only in debt instruments such as Corporate Bonds, Government Securities and Money Market instruments either completely avoiding any investments in the stock markets as in Income Funds or Gilt Funds or having a small exposure to equities as in Monthly Income Plans or Children's Plan. Hence they are safer than equity funds. At the same time the expected returns from debt funds would be lower. Such investments are advisable for the risk-averse investor and as a part of the investment portfolio for other investors. Magnum Childrens benefit Plan Magnum Gilt Fund Magnum Income Fund Magnum Insta Cash Fund Magnum Income Fund- Floating Rate Plan Magnum Income Plus Fund Magnum Insta Cash Fund -Liquid Floater Plan Magnum Monthly Income Plan Magnum Monthly Income Plan- Floater Magnum NRI Investment Fund SBI Premier Liquid Fund BALANCED SCHEMESMagnum Balanced Fund invests in a mix of equity and debt investments. Hence they are less risky than equity funds, but at the same time provide commensurately lower returns. They provide a good investment opportunity to investors who do not wish to be completely exposed to equity markets, but is looking for higher returns than those provided by debt funds. Magnum Balanced Fund

COMPETITORS OF SBI MUTUAL FUNDSome of the main competitors of SBI Mutual Fund in Ludhiana are as Follows:i. ICICI Mutual Fundii. Reliance Mutual Fundiii. UTI Mutual Fundiv. Birla Sun Life Mutual Fundv. Kotak Mutual Fundvi. HDFC Mutual Fundvii. Sundaram Mutual Fundviii. LIC Mutual Fund ix. Principalx. Franklin Templeton

AWARDS AND ACHIEVEMENTSSBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award - 8 times, CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-2006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award 2007 and 5 Awards for our schemes.

OBJECTIVES AND SCOPE

OBJECTIVES OF THE STUDY1. To find out the Preferences of the investors for Asset Management Company. 2. To know the Preferences for the portfolios. 3. To know why one has invested or not invested in SBI Mutual fund4. To find out the most preferred channel.5. To find out what should do to boost Mutual Fund Industry.

Scope of the studyA big boom has been witnessed in Mutual Fund Industry in resent times. A 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 Ludhiana. I had been sent at one of the branch of State Bank of India Ludhiana where I completed my Project work. I surveyed on my Project Topic A study of preferences of the Investors for investment in Mutual Fund on the visiting customers of the SBI Boring Canal Road Branch.The study will help to know the preferences of the customers, which company, portfolio, mode of investment, option for getting return and so on they prefer. This project report may help the company to make further planning and strategy.

RESEARCH 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. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones.Data sources:Research is totally based on primary data. Secondary data can be used only for the reference. Research 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.Duration of Study:The study was carried out for a period of two months.Sampling: Sampling procedure:The sample was selected of them who are the customers/visitors of State Bank if India, Boring Canal Road Branch, 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 questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool. Sample size:The sample size of my project is limited to 200 people only. Out of which only 120 people had invested in Mutual Fund. Other 80 people did not have invested in Mutual Fund. Sample design:Data has been presented with the help of bar graph, pie charts, line graphs etc.LIMITATION: Some of the persons were not so responsive. Possibility of error in data collection because many of investors may have not given actual answers of my questionnaire. Sample size is limited to 200 visitors of State Bank of India , Boring Canal Road Branch, Ludhiana out of these only 120 had invested in Mutual Fund. The sample. size may not adequately represent the whole market. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. The research is confined to a certain part of Ludhiana.

DATA ANALYSIS & INTERPRETATION

ANALYSIS & INTERPRETATION OF THE DATA 1. (a) Age distribution of the Investors of Ludhiana

Age Group50

No. of Investors121830242016

Interpretation: According to this chart out of 120 Mutual Fund investors of Ludhiana the most are in the age group of 36-40 yrs. i.e. 25%, the second most investors are in the age group of 41-45yrs i.e. 20% and the least investors are in the age group of below 30 yrs.

(b). Educational Qualification of investors of Ludhiana

Educational QualificationNumber of Investors

Graduate/ Post Graduate88

Under Graduate25

Others7

Total120

Interpretation:Out of 120 Mutual Fund investors 71% of the investors in Ludhiana are Graduate/Post Graduate, 23% are Under Graduate and 6% are others (under HSC).c). Occupation of the investors of LudhianaOccupation No. of Investors

Govt. Service30

Pvt. Service45

Business35

Agriculture4

Others6

.

Interpretation:In Occupation group out of 120 investors, 38% are Pvt. Employees, 25% are Businessman, 29% are Govt. Employees, 3% are in Agriculture and 5% are in others.

(d). Monthly Family Income of the Investors of Ludhiana.Income GroupNo. of Investors

30,00032

Interpretation:In the Income Group of the investors of Ludhiana, out of 120 investors, 36% investors that is the maximum investors are in the monthly income group Rs. 20,001 to Rs. 30,000, Second one i.e. 27% investors are in the monthly income group of more than Rs. 30,000 and the minimum investors i.e. 4% are in the monthly income group of below Rs. 10,000

(2) Investors invested in different kind of investments.Kind of InvestmentsNo. of Respondents

Saving A/C195

Fixed deposits148

Insurance152

Mutual Fund120

Post office (NSC)75

Shares/Debentures50

Gold/Silver30

Real Estate 65

Interpretation: From the above graph it can be inferred that out of 200 people, 97.5% people have invested in Saving A/c, 76% in Insurance, 74% in Fixed Deposits, 60% in Mutual Fund, 37.5% in Post Office, 25% in Shares or Debentures, 15% in Gold/Silver and 32.5% in Real Estate. 3. Preference of factors while investingFactors(a) Liquidity(b) Low Risk(c) High Return(d) Trust

No. of Respondents40606436

Interpretation:Out of 200 People, 32% People prefer to invest where there is High Return, 30% prefer to invest where there is Low Risk, 20% prefer easy Liquidity and 18% prefer Trust

4. Awareness about Mutual Fund and its OperationsResponseYesNo

No. of Respondents13565

Interpretation:From the above chart it is inferred that 67% People are aware of Mutual Fund and its operations and 33% are not aware of Mutual Fund and its operations.

5. Source of information for customers about Mutual FundSource of informationNo. of Respondents

Advertisement18

Peer Group25

Bank30

Financial Advisors62

Interpretation:From the above chart it can be inferred that the Financial Advisor is the most important source of information about Mutual Fund. Out of 135 Respondents, 46% know about Mutual fund Through Financial Advisor, 22% through Bank, 19% through Peer Group and 13% through Advertisement.

6. Investors invested in Mutual FundResponseNo. of Respondents

YES120

NO80

Total200

Interpretation:Out of 200 People, 60% have invested in Mutual Fund and 40% do not have invested in Mutual Fund.

7. Reason for not invested in Mutual FundReasonNo. of Respondents

Not Aware65

Higher Risk5

Not any Specific Reason10

Interpretation:Out of 80 people, who have not invested in Mutual Fund, 81% are not aware of Mutual Fund, 13% said there is likely to be higher risk and 6% do not have any specific reason.

8. Investors invested in different Assets Management Co. (AMC)Name of AMCNo. of Investors

SBIMF55

UTI75

HDFC30

Reliance75

ICICI Prudential56

Kotak45

Others70

Interpretation:In Ludhiana most of the Investors preferred UTI and Reliance Mutual Fund. Out of 120 Investors 62.5% have invested in each of them, only 46% have invested in SBIMF, 47% in ICICI Prudential, 37.5% in Kotak and 25% in HDFC.

9. Reason for invested in SBIMFReasonNo. of Respondents

Associated with SBI35

Better Return5

Agents Advice15

Interpretation:Out of 55 investors of SBIMF 64% have invested because of its association with Brand SBI, 27% invested on Agents Advice, 9% invested because of better return.

10. Reason for not invested in SBIMFReasonNo. of Respondents

Not Aware 25

Less Return18

Agents Advice22

Interpretation:Out of 65 people who have not invested in SBIMF, 38% were not aware with SBIMF, 28% do not have invested due to less return and 34% due to Agents Advice.

11. Preference of Investors for future investment in Mutual Fund Name of AMCNo. of Investors

SBIMF76

UTI45

HDFC35

Reliance82

ICICI Prudential80

Kotak60

Others75

Interpretation: Out of 120 investors, 68% prefer to invest in Reliance, 67% in ICICI Prudential, 63% in SBIMF, 62.5% in Others, 50% in Kotak, 37.5% in UTI and 29% in HDFC Mutual Fund. 12. Channel Preferred by the Investors for Mutual Fund InvestmentChannelFinancial AdvisorBankAMC

No. of Respondents721830

Interpretation:Out of 120 Investors 60% preferred to invest through Financial Advisors, 25% through AMC and 15% through Bank.

13. Mode of Investment Preferred by the InvestorsMode of InvestmentOne time InvestmentSystematic Investment Plan (SIP)

No. of Respondents7842

Interpretation:Out of 120 Investors 65% preferred One time Investment and 35 % Preferred through Systematic Investment Plan.

14. Preferred Portfolios by the InvestorsPortfolio No. of Investors

Equity56

Debt20

Balanced44

Interpretation:From the above graph 46% preferred Equity Portfolio, 37% preferred Balance and 17% preferred Debt portfolio

15. Option for getting Return Preferred by the InvestorsOptionDividend PayoutDividend ReinvestmentGrowth

No. of Respondents251085

Interpretation:From the above graph 71% preferred Growth Option, 21% preferred Dividend Payout and 8% preferred Dividend Reinvestment Option.

16. Preference of Investors whether to invest in Sectoral FundsResponseNo. of Respondents

Yes25

No95

Interpretation:Out of 120 investors, 79% investors do not prefer to invest in Sectoral Fund because there is maximum risk and 21% prefer to invest in Sectoral Fund.

FINDINGS AND CONCLUSION

FINDINGS In Ludhiana in the Age Group of 36-40 years were more in numbers. The second most Investors were in the age group of 41-45 years and the least were in the age group of below 30 years. In Ludhiana most of the Investors were Graduate or Post Graduate and below HSC there were very few in numbers. In Occupation group most of the Investors were Govt. employees, the second most Investors were Private employees and the least were associated with Agriculture. In family Income group, between Rs. 20,001- 30,000 were more in numbers, the second most were in the Income group of more than Rs.30,000 and the least were in the group of below Rs. 10,000. About all the Respondents had a Saving A/c in Bank, 76% Invested in Fixed Deposits, Only 60% Respondents invested in Mutual fund. Mostly Respondents preferred High Return while investment, the second most preferred Low Risk then liquidity and the least preferred Trust. Only 67% Respondents were aware about Mutual fund and its operations and 33% were not. Among 200 Respondents only 60% had invested in Mutual Fund and 40% did not have invested in Mutual fund. Out of 80 Respondents 81% were not aware of Mutual Fund, 13% told there is not any specific reason for not invested in Mutual Fund and 6% told there is likely to be higher risk in Mutual Fund. Most of the Investors had invested in Reliance or UTI Mutual Fund, ICICI Prudential has also good Brand Position among investors, SBIMF places after ICICI Prudential according to the Respondents. Out of 55 investors of SBIMF 64% have invested due to its association with the Brand SBI, 27% Invested because of Advisors Advice and 9% due to better return. Most of the investors who did not invested in SBIMF due to not Aware of SBIMF, the second most due to Agents advice and rest due to Less Return. For Future investment the maximum Respondents preferred Reliance Mutual Fund, the second most preferred ICICI Prudential, SBIMF has been preferred after them. 60% Investors preferred to Invest through Financial Advisors, 25% through AMC (means Direct Investment) and 15% through Bank. 65% preferred One Time Investment and 35% preferred SIP out of both type of Mode of Investment. The most preferred Portfolio was Equity, the second most was Balance (mixture of both equity and debt), and the least preferred Portfolio was Debt portfolio. Maximum Number of Investors Preferred Growth Option for returns, the second most preferred Dividend Payout and then Dividend Reinvestment. Most of the Investors did not want to invest in Sectoral Fund, only 21% wanted to invest in Sectoral Fund. CONCLUSIONRunning a successful Mutual Fund requires complete understanding of the peculiarities of the Indian Stock Market and also the psyche of the small investors. This study has made an attempt to understand the financial behavior of Mutual Fund investors in connection with the preferences of Brand (AMC), Products, Channels etc. I observed that many of people have fear of Mutual Fund. They think their money will not be secure in Mutual Fund. They need the knowledge of Mutual Fund 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. As the awareness and income is growing the number of mutual fund investors are also growing. Brand plays important role for the investment. People invest in those Companies where they have faith or they are well known with them. There are many AMCs in Ludhiana but only some are performing well due to Brand awareness. Some AMCs are not performing well although some of the schemes of them are giving good return because of not awareness about Brand. Reliance, UTI, SBIMF, ICICI Prudential etc. they are well known Brand, they are performing well and their Assets Under Management is larger than others whose Brand name are not well known like Principle, Sunderam, etc.Distribution channels are also important for the investment in mutual fund. Financial Advisors are the most preferred channel for the investment in mutual fund. They can change investors mind from one investment option to others. Many of investors directly invest their money through AMC because they do not have to pay entry load. Only those people invest directly who know well about mutual fund and its operations and those have time.

SUGGESTIONS ANDRECOMMENDATIONS

SUGGESTIONS AND RECOMMENDATIONS The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize 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. But most of the people are not even aware of what actually a mutual fund is? They only see it as just another investment option. So the advisors should try to change their mindsets. The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective, because they are the main source to influence the investors.

Before making any investment Financial Advisors should first enquire about the risk tolerance of the investors/customers, their need and time (how long they want to invest). By considering these three things they can take the customers into consideration. Younger people aged under 35 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. Customers 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 quality. Systematic Investment Plan (SIP) is one the innovative products launched by Assets Management companies very recently in the industry. SIP is easy for monthly salaried person as it provides the facility of do the investment in EMI. Though most of the prospects and potential investors are not aware about the SIP. There is a large scope for the companies to tap the salaried persons.

BIBLIOGRAPHY

BIBLIOGRAPHY NEWS PAPERS

OUTLOOK MONEY

TELEVISION CHANNEL (CNBC AAWAJ)

MUTUAL FUND HAND BOOK

FACT SHEET AND STATEMENT

WWW.SBIMF.COM

WWW.MONEYCONTROL.COM

WWW.AMFIINDIA.COM

WWW.ONLINERESEARCHONLINE.COM

WWW. MUTUALFUNDSINDIA.COM

ANNEXUREDear Sir/ Madam, I am, Mansi Khosla student of M.Com -2nd at Arya College, Ludhiana doing a project A study of preferences of the investors for investment in SBI mutual funds. Please co-operate to fill this questionnaire. 1. Personal Details:

(a). Name:- (b). Add: - Phone:- (c). Age:- (d). Qualification:-

Graduation/PGUnder GraduateOthers

(e). Occupation. Pl tick () Govt. SerPvt. SerBusinessAgricultureOthers

(g). What is your monthly family income approximately? Pl tick ().

Up to Rs.10,000Rs. 10,001 to 15000Rs. 15,001 to 20,000Rs. 20,001 to 30,000Rs. 30,001 and above

2. What kind of investments you have made so far? Pl tick (). All applicable.

a. Saving accountb. Fixed depositsc. Insurance d. Mutual Fund

e. Post Office-NSC, etcf. Shares/Debenturesg. Gold/ Silverh. Real Estate

3. While investing your money, which factor will you prefer? . (a) Liquidity(b) Low Risk(c) High Return(d) Trust

4. Are you aware about Mutual Funds and their operations? Pl tick (). Yes No

5. If yes, how did you know about Mutual Fund?

a. Advertisementb. Peer Groupc. Banks d. Financial Advisors

6. Have you ever invested in Mutual Fund? Pl tick (). Yes No 7. If not invested in Mutual Fund then why?

(a) Not aware of MF (b) Higher risk (c) Not any specific reason

8. If yes, in which Mutual Fund you have invested? Pl. tick (). All applicable.

a. SBIMFb. UTIc. HDFCd. Reliancee. Kotakf. Other. specify

9. If invested in SBIMF, you do so because (Pl. tick (), all applicable). a. SBIMF is associated with State Bank of India.

b. They have a record of giving good returns year after year.

c. Agent Advice

10. If NOT invested in SBIMF, you do so because (Pl. tick () all applicable). a. You are not aware of SBIMF.

b. SBIMF gives less return compared to the others.

c. Agent Advice

11. When you plan to invest your money in asset management co. which AMC will you prefer? Assets Management Co.

a. SBIMF

b. UTI

c. Reliance

d. HDFC

e. Kotak

f. ICICI

12. Which Channel will you prefer while investing in Mutual Fund? (a) Financial Advisor(b) Bank(c) AMC

13. When you invest in Mutual Funds which mode of investment will you prefer? Pl. tick (). a. One Time Investmentb. Systematic Investment Plan (SIP)

14. When you want to invest which type of funds would you choose? a. Having only debt portfolio b. Having debt & equity portfolio.c. Only equity portfolio.

15. How would you like to receive the returns every year? Pl. tick (). a. Dividend payout b. Dividend re-investmentc. Growth in NAV

16. Instead of general Mutual Funds, would you like to invest in sectorial funds? Please tick (). Yes No

PROJECT REPORTON A STUDY OF PREFERENCES OF THE INVESTORS FOR INVESTMENT IN SBI MUTUAL FUND

In partial fulfillment of the requirement for the Award of the degree ofMASTER OF COMMERCE(2012-2014)

SUBMITTED BY:PROJECT GUIDE : Mansi KhoslaMr. A.K. Singla M.Com (2nd Sem)HOD, Dept. of Comm. Roll No.

ARYA COLLEGE, LUDHIANAAFFILIATED TO:PANJAB UNIVERSITY, CHANDIGARHCERTIFICATE This is to certify that the project report entitled A STUDY OF PREFERENCES OF THE INVESTORS FOR INVESTMENT IN SBI MUTUAL FUNDS submitted by Mansi Khosla is a bonafide piece of work conducted under my direct supervision and guidance. No part of this work has been submitted for any other degree of any other degree of any other university. The data sources have been duly acknowledged. It may be considered for evaluation in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration.

Date :Mr. A. K. Singla Project GuideArya College, Ludhiana

PREFACEWith immense pleasure and deep sense of sincerity, I have completed my Industrial training. It is an essential requirement for each and every student to have some practical exposure towards real world situations. Training is systematized practical experience to inculcate self-confidence in a student so that they can mentally prepare themselves for this competitive environment.The purpose of training is:1. Developing intellectual ability of student2. Bring confidence3. Developing skills4. Modify AttitudesHow do businesses succeed in todays competitive environment? The factor that can set an organization apart is its people. The quality of the organization employees, their enthusiasm and satisfaction with their jobs, their experience, and of fair treatment all affects the firms productivity, customer service, reputation and survival. In short, people make the difference.To increase the effectiveness of their promotion measures, insurance companies should increasingly incorporate such measures into specific management programmes as well as general management measures with regard to personnel development, organisational development and quality control. Formulating manpower-planning policies is one of the most critical and difficult challenges faced by an organisation. In particular, after recruitment, formulating promotion policies from one grade to another becomes more difficult as the organisation requires more expertise, since it is linked to the productivity enhancement of the organisation.

ACKNOWLEDGEMENT

I wish to express my deep gratitude to Mr. A.K. Singla for acting as a guide and providing me with continuous support and guidance. This report could not have completed without the inputs and the words of advice from her far which I shall always remain grateful to her.I with gratitude to my other faculty members for taking keen interest in my project work and fine-tuning my efforts as and when required.

Mansi Khosla Roll No.14110000370

CONTENTS Acknowledgement Declaration Executive Summary Chapter - 1 INTRODUCTION Chapter - 2 COMPANY PROFILEChapter - 3 OBJECTIVES AND SCOPE Chapter - 4 RESEARCH METHODOLOGY Chapter - 5 DATA ANALYSIS AND INTERPRETATION Chapter - 6 FINDINGS AND CONCLUSIONS Chapter - 7 SUGGESTIONS & RECOMMENDATIONS BIBLIOGRAPHY

EXECUTIVE SUMMARYIn few years Mutual Fund has emerged as a tool for ensuring ones financial well being. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds. The main reason the number of retail mutual fund investors remains small is that nine in ten people with incomes in India do not know that mutual funds exist. But once people are aware of mutual fund investment opportunities, the number who decide to invest in mutual funds increases to as many as one in five people. The trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer is to understand which of the potential investors are more likely to buy mutual funds and to use the right arguments in the sales process that customers will accept as important and relevant to their decision.This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. The analysis and advice presented in this Project Report is based on market research on the saving and investment practices of the investors and preferences of the investors for investment in Mutual Funds. This Report will help to know about the investors Preferences in Mutual Fund means Are they prefer any particular Asset Management Company (AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they prefer or Which Investment Strategy they follow (Systematic Investment Plan or One time Plan). This Project as a whole can be divided into two parts.The first part gives an insight about Mutual Fund and its various aspects, the Company Profile, Objectives of the study, Research Methodology. One can have a brief knowledge about Mutual Fund and its basics through the Project. The second part of the Project consists of data and its analysis collected through survey done on 200 people. For the collection of Primary data I made a questionnaire and surveyed of 200 people. I also taken interview of many People those who were coming at the SBI Branch where I done my Project. I visited other AMCs in Ludhiana to get some knowledge related to my topic. I studied about the products and strategies of other AMCs in Ludhiana to know why people prefer to invest in those AMCs. This Project covers the topic THE MUTUAL FUND IS BETTER INVESTMENT PLAN. The data collected has been well organized and presented. I hope the research findings and conclusion will be of use.