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8/13/2019 Christopher New Update

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CHAPTER 1

1. INTRODUCTION

MUTUAL FUNDS:

Mutual funds, as the name indicates is the fund where in numerous investors

come together to invest in various schemes of mutual fund.

Mutual funds are dynamic institution, which plays a crucial role in an economy by

mobilizing savings and investing them in the capital market, thus establishing a link

between savings and the capital market.

A mutual fund is an institution that invests the pooled funds of public to create

a diversified portfolio of securities. Pooling is the key to mutual fund investing. Eachmutual fund has a specific investment objective and tries to meet that objective through

active portfolio management.

Mutual fund as an investment company combines or collects money of its

shareholders and invests those funds in variety of stocks, bonds, and money market

instruments. The latter include securities, commercial papers, certificates of deposits,

etc. Mutual funds provide the investor with professional management of funds and

diversification of investment.

Investors who invest in mutual funds are provided with units to participate in

stock markets. These units are investment vehicle that provide a means of participation

in the stock market for people who have neither the time, nor the money, nor perhaps

the expertise to undertake the direct investment in equities. On the other hand they also

provide a route into specialist markets where direct investment often demands both

more time and more knowledge than an investor may possess.

The price of units in any mutual fund is governed by the value of underlying

securities. The value of an investor‟s holding in a unit can therefore, like an investmentin share, can go down as well as up. Hence it is said that mutual funds are subjected to

market risk. Mutual fund cannot guarantee a fixed rate of return. It depends on the

market condition. If the particular scheme is performing well then more return can be

expected.



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It also depends on the fund manager expertise knowledge. It is also seen that people

invest in particular funds depending on who the fund manager is.

A Mutual Fund is a trust that pools the savings of a number of investors who

share a common financial goal.

The money thus collected is invested by the fund manager in different types of

securities depending upon the objective of the scheme. These could range from shares

to debentures to money market instruments.

The income earned through these investments and the capital appreciations

realized by the schemes are shared by its unit holders in proportion to the number of

units owned by them.

Mutual Fund Operation Flow Chart

Thus a mutual fund is the most suitable investment for the common person as it

offers an opportunity to invest in a diversified, professionally managed basket of

securities at a relatively low cost.

Since small investors generally do not have adequate time, knowledge,

experience & resources for directly accessing the capital market, they have to rely onan intermediary, which undertakes informed investment decisions & provides

consequential benefits of professional expertise.

A collected corpus can be used to procure a diversified portfolio indicating

greater returns has also create economies of scale through cost reduction. This

principle has been effective worldwide as more & more investors are going the mutual



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fund way. This portfolio diversification ensures risk minimization. The criticality such

a measure comes in when you factor in the fluctuations that characterize stock markets.

The interest of the investors is protected by the SEBI, which acts as a watchdog.

Mutual funds are governed by SEBI (Mutual Funds) regulations, 1996.

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the

organizational set up of a mutual fund:

Mutual funds have a unique structure not shared with other entities such as

companies of firms. It is important for employees & agents to be aware of the specialnature of this structure, because it determines the rights & responsibilities of the fund‟s

constituents viz., sponsors, trustees, custodians, transfer agents & of course, the fund &

the Asset Management Company(AMC) the legal structure also drives the inter-

relationships between these constituents.



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sponsor or trustee to any mutual fund. A custodian is supposed to act only for a single

mutual funds unless otherwise approved by SEBI.

Asset management company (AMC):

The investment manager of a mutual fund is technically known as the Asset

Management Company, and is appointed by the sponsor or the trustees. The AMC

manager the affairs of the mutual fund. The transfer agent is contracted by the AMC

and is responsible for maintain the register of investor/unit holders and everyday is to

collect data from distributors relating to daily purchase and redemption of units.



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1.1 INDUSTRY PROFILE

SHARE MARKET:

The trading on stock exchanges in India used to take place through open outcry

without use of information technology for immediate matching or recording of trades.

This was time consuming and inefficient. This imposed limits on trading volumes and

efficiency. In order to provide efficiency, liquidity and transparency, NSE introduced a

nation-wide on-line fully automated screen based trading system where a member can

punch into the computer quantities of securities and the prices at which he likes to

transact and the transaction is executed as soon as it finds a matching sale or buy order

from a counter party. Screen based electronic system electronically matches orders on

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

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

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

efficiency of markets. It enables market participants, irrespective of their geographical

locations, to trade with one another simultaneous, improving the depth and liquidity of

the market. It provides full anonymity by accepting orders, big or small, from members

without revealing their identity, thus providing equal access to everybody. It also

provides a perfect audit trial, which helps to resolve disputes by logging in the trade

execution process entirety.

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

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

securities. Screen based trading system helps in faster transfer of securities and no

stamp duty is required on transfer of securities.

Commodity:

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

Commodity trading is about the simple economics of supply and demand. Supports are

known, only resistance matters! Minimum support price acts as a statutory support for

many commodities. No Dollar-Rupee premiums/discounts. No hedging on the

NYMEX. Indian commodity derivatives hedge both forex and commodity specific



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National Commodity and Derivatives Exchange (NCDEX):

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

commodity exchange based in India. It was incorporated as a private limited company

incorporated on 23 April 2003 under the Companies Act, 1956. It obtained its

Certificate for Commencement of Business on 9 May 2003. It has commenced its

operations on 15 December 2003. NCDEX is a closely held private company which is

promoted by national level institutions and has an independent Board of Directors and

professionals not having vested interest in commodity markets.

Mutual funds:

A mutual fund is a professionally managed type of collective investment that

pools money from many investors to buy stocks, bonds, short-term money

market instruments, and/or other securities.

Advantages of Mutual Funds

Mutual funds have advantages compared to direct investing in individual

securities. These include:

Increased diversification

Daily liquidity

Professional investment management

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

investors

Service and convenience

Government oversight

Ease of comparison

Disadvantages of Mutual Funds

Mutual funds have disadvantages as well, which include.

Fees

http://en.wikipedia.org/wiki/Commodity_exchange

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Collective_investment

http://en.wikipedia.org/wiki/Stock

http://en.wikipedia.org/wiki/Bond_(finance)

http://en.wikipedia.org/wiki/Money_market




http://en.wikipedia.org/wiki/Bond_(finance)

http://en.wikipedia.org/wiki/Stock

http://en.wikipedia.org/wiki/Collective_investment

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Commodity_exchange



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Less control over timing of recognition of gains

Less predictable income

No opportunity to customize

Types of Mutual Funds:

Open-end funds

Closed-end funds

Unit investment trusts

Exchange-traded funds

Investments and Classifications:

Growth schemes

Income schemes

Balance schemes

Money Market and Liquid schemes

Tax saving schemes

Guilt Funds

Bond funds

Stock or equity funds

Mutual Funds Expenses:

Distribution charges

Front-end load or sales charge

Back-end load

No-load funds

Management fee

Other fund expenses

Shareholder transaction fees

Securities transaction fees

Expense ratio

Controversy



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CD provides one of the best and most seamless offline and online trading solution in the broking industry along with a 24 X 7 web enabled back office; giving access to multiple

exchanges and trading instruments like BSE cash, NSE cash, F & O, Commodities –

MCX, NCDEX.

The other facilities provided to the clients are

Multiple exchanges on a single screen

Intra-day calls and Flash news

Historical Tables with Technical tools

Straming quotes

24 X 7 back office

Online transfer of funds

Privacy in trading

COMMODITIES

Indian markets have recently thrown open a new avenue for retail investors and

traders to participate commodity derivatives. For those who want to diversify their

portfolios beyond shares, bonds and real estate, commodities is one of the best options.

CURRENCY DERIVATIVES

RBI has permitted futures on the USD-INR rates. We offer trading facilities to

investors on the Currency derivatives segment of the NSE.

INVESTMENT ADVISORY

Taking investment decisions without expert advice is like treating ailment without the

help of doctor. To derive optimum returns from equity as an asset class needs

professional guidance and advice.

CD EQUISEARCH’S DEALING



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BENEFITS:

Expert advice: Our expert investment advisors at our various branches will provide a

much needed assistance in designing and monitoring portfolios.

Timely Entry & Exit: Profit booking from a stock is equally important as choosing a

right stock. Our advisors will regularly monitor your investments and will guide you to

book timely profits.

De-Risking Portfolio: A diversified portfolio of stocks is always better than having

concentration in only one or two stocks. Our advisors will diversify the portfolio in

growth oriented sectors and stocks based on our research.

PORTFOLIO MANAGEMENT SERVICES

The desire to grow money is a natural instinct. But as simple as the desire is, the

process to do so is just as complex. Just as art is the culmination of talent and

experience in an artist, so also growing money depends on the natural instinct and

experience of financial masters.

Equity as an asset class has outperformed other investment options over a longer

period of time in almost all countries. Hence prudent investors allocate sizable part of

their savings to this asset class. Indian stock market represented by the Sensex has

yielded a return of 17% in the last 20 years. Going forward this growth rate is going to

be maintained consistently. Therefore equity as an asset class remains the best option

for both, beating inflation and building wealth in Future.

PHILOSOPHY

CD‟s investment philosophy is based on two key attributes; Wealth creation

Wealth preservation



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Wealth Creation

Having money work for you

Having others work for you

You working for your money

Wealth Preservation

As wealth grows, your focus may shift to striking a balance between asset creation and

preservation. Wealth preservation also applies to your day to day financial life which

includes managing your cash flow and overall risk management.

BenefitsUnderstanding Risk Utmost importance is given to understand the risk profile of the

investor. Periodic evaluation of the model portfolio is carried out and market

movements are cashed upon.

Administrative convenience: CD focuses on providing hassle free administrative /

operational support & customized service.

Transparency: Regular statements and updates from us, as well as online access.

Regular Analysis and Monitoring: Investments undergo regular monitoring and

analysis to check any deviation from the structured goal ensuring creation of wealth

over a period of time.

M - CONNECT

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

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

service which will enable the users to access Market information: Equity, F&O,

Commodity and MF on Mobile Phone.



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

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

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

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

single platform.

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

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

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

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

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

Up link.

SMS SERVICES

Types of SMS services:

Trade confirmation SMS Equity

Trade confirmation SMS Commodity

Weekly Ledger

Payin Auction SMS

Welcome SMS

Welcome Kit SMS

Password Reset

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

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

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

traded in MCX and NCDEX on previous day.

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

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

Office details.



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Services Offered - E Chopada

Your Personal Wealth Accountant E-Chopda (Personal Wealth Accountant) is a Value

added Wealth Management Application tendered by CD EQUISEARCH to its clients

for managing their Wealth. Single platform for managing all types of Assets &

Liabilities like Equity, MF, Bank, Loan, Insurance, etc. Investments done through 'CD'

are automatically updated in the application. Facility to record any Income, expenses

and any other Investments made outside 'CD'. Once the information is feeded in the

systems it automatically accounts for the same and generates Trial balance, Profit n

Loss A/c, Balance sheets & Tax returns for the running accounting year. Graphical

representation of assets for better understanding and comparison. Integrated

Calculators, Simple Accounting Application and Income Tax application. Upload

facility available for Banks Statements and Contract Notes. Client can work both

online and offline and can get details of Latest Market Rates, NAV, News, Master data

on connecting to Internet. Print, Export to Excel/ Pdf functionality and Automatic

Version Upgrade available.

Services Offered – NRI

Non- Resident Indian [NRI] means a 'person resident outside India' who is a citizen of

India by virtue of constitution of INDIA. NRI service desk for Personalized assistance

to NRI / PIO clients Dedicated Offline Equity Dealing desk Online Equity Trading

Platforms

Depository Services

24*7 BackOffice

NRI Investment Advisory desk

Portfolio Investment Services

IPO & Mutual Fund Advisory Services

Mutual Funds

Insurance and Personal Loan solutions

Support for Banking – PIS accounts

Pan Card assistance.

Only Cash market delivery based transactions allowed for NRI / PIO clients



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Intraday / Derivatives – FnO & Currency / Commodities

Services Offered - Prepaid Broking

PRE-PAID BROKERAGE:

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

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

taking commitment of absolute brokerage amount from them.

MANAGEMENT:

Chairman Mr. Chandravadan Desai, the Chairman of CD EQUISEARCH, brings with him

more than 30 years of experience in the capital market and provides the strategic vision

and leadership behind the organization. He laid the founding stone of the business in

1972 and has steered the firm a long way with his drive, enthusiasm, and enduring

pursuit of excellence. His focus is to build upon the company‟s key strength creating

wealth for its clients while maintaining highest standards of ethics. Mr. Desai is a

director of numerous distinguished companies and a member of executive committees

of various Chambers of Commerce. He has always been committed to various social

causes and is a founder trustee of many philanthropic trusts.

Director

Mr. Pranay Desai, Director of CD EQUISEARCH guides and drives the organization

focusing on the tradition of creating wealth for its clients in the most ethical manner.

Bachelor Degree in Business Management from Boston College, Massachusetts (USA)

and a Master in Business Administration with specialization in Finance from

University of Miami, Florida (USA) help Mr. Desai to focus on Finance and Capital

Markets, having already demonstrated sound leadership skills while serving as the

President of MBA Finance Club and the MBA International Business Club of his

university. Mr. Desai brings together a new strategic vision and dynamism which will

serve the organization in taking it to the next level.



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COO

Mr. Vikash Kalani is the COO of the company. He is an MBA from Mumbai

University and possesses more than 10 years of experience in Management

Consultancy and Financial Services. Prior to joining CD EQUISEARCH, he has

worked in senior positions in organizations like Anand Rathi Securities and Kantilal

Chhaganlal Securities.

CFO

Mr. Jayesh Vora is the CFO of the company. He is a Chartered Accountant by

profession, possesses more than 10 years of experience in the field of capital market.

His area of expertise among other things includes finance, risk management &

statutory compliances. He provides guidance & coordination in financial, fiscal,

accounting & budgeting efforts of the company.

Director (Group Companies)

Mr. Nilesh Vasa is a Chartered Accountant by profession and holds a Master‟s degree

in Management from Indian Institute of Management, Ahmedabad (IIM-A). He

possesses two decades of experience of working with leading financial institutions like

Industrial Development Bank of India, Reliance Capital and JM Morgan Stanley. He

heads the Private Client Group of the Kolkata Regional office.

MANAGEMENT TEAM

Mr. Hussain Sheriff - Assistant Vice President

Mr. Mahimai Raj - Cluster Manager

Mr. Thulasi Raman - Branch Manager

Mr. Loganathan - Team Manager

Mr. Krishna Kumar - Relationship manager



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COMPETITORS

ABN AMRO Mutual Fund ,

BIRLA SUN LIFE Mutual Fund

FRANKLIN TEMPLETON Mutual Fund

HDFC Mutual Fund

HSBC Mutual Fund

KOTAK MAHINDRA Mutual Fund

LIC mutual fund

Morgan Stanley Mutual Fund

Principal Mutual Fund

Prudential ICICI Mutual Fund

Sahara Mutual Fund

SBI Mutual Fund

Sundaram Mutual Fund

Tata Mutual Fund

UTI Mutual Fund

https://www.assetmanagement.abnamro.co.in/


http://www.birlasunlife.com/


http://www.franklintempletonindia.com/india/jsp_cm/ft_home.asp


http://www.hdfcfund.com/


http://www.hsbcinvestments.co.in/


http://www.kotakmutual.com/


http://www.msgfindia.com/


http://www.principalindia.com/presentation/view/home.aspx


http://www.pruicici.com/


http://www.saharamutual.com/


http://www.sbimf.com/


http://www.sundaramfinance.com/products/mutualfunds/mutualfunds.asp


http://www.tatamutualfund.com/


http://www.utimf.com/


















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1.1 PRODUCT PROFILE

PRODUCTS:

Equities

CD provides research based investment advisory and broking services through its

memberships with BSE and NSE. Products include:

NSE and BSE cash

Intraday

Delivery

Advisory

Derivatives

CD encourages you to hedge your risks in the capital markets by resorting to smart

derivative strategies and provides you the means to execute them.

Online Broking

Depository Participant

To serve you in the most efficient way, CD provides depository services linked to

your trading account. These services can also be availed of independent of the trading

account.

Structured Products

At CD, we understand that your investment needs are different from others. Our

customized Structured Products would help you meet your investment objectives.

Mutual Funds

Investing in Mutual Funds is one of the most sensible routes to utilize the best fund-

management talents available in the country. CD offers guidance to pick and deliver

the best in this class



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.

Life Insurance

We have partnered with Kotak Life Insurance as a corporate agent. Our team of

relationship managers would help you choose the right kind of insurance product for

you based on your requirements and investment objectives.

Distribution of IPO/ FPO

We provide advisory and infrastructure support to help you invest better and also take

advantage through investment in IPOs.

Alternate Investment

Bonds



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1.3 OBJECTIVES OF STUDY:

PRIMARY OBJECTIVES:

To study customer perception on MUTUAL FUND among customer in CD

EQUISEARCH PVT LTD.

SECONDARY OBJECTIVES:

To analyze the interest of people investing in MUTUAL FUNDS.

To identify the basis on which CD EQUISEARCH PVT LTD mutual fund s

are opted by the investors.

To identify how long years the investors are investing in CD

EQUISEARCH PVT LTD.

To identify investors experience with mutual fund in CD EQUISEARCH

PVT LTD.

To identify whether the investor will invest in future in CD EQUISEARCH

PVT LTD.



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1.4 NEED FOR THE STUDY:

This helps to know in details about mutual fund right from its inception stage,

growth and future prospects.

To identify the preference of schemes by investors.

It also helps in understanding different investment schemes followed by

investors.

Helps to take decisions on the measures that are to be initiated to improve the

performance of the company.

Is used to evaluate SWOT (strength, weakness, opportunity and threat) of the

market.

To analyze the needs and expectations of potential investors.

To achieve investor satisfaction and investor retention.

1.5 SCOPE OF THE STUDY

The study was conducted with the investors of CD EQUISEARCH PVT LTD.

The study helps us to analyze the perception of MUTUAL FUND among

people.

The study helps the company to get the information from the investors on

various parameters to improve their services

This study helps to know the investors‟ expectations and opinions

The company can get more ideas about themselves which can be the basis for

improving their performance

The study tries to find out the existing potential scale of various schemes of

mutual funds.



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1.6 LIMITATIONS OF THE STUDY:

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

not exceed. Limitations of this project are:-

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

subject time Constraint has become a big limitation.

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

an accurate result.

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

Product is a very difficult task.

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

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

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

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

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

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

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

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



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ONE CAN MAKE MONEY FROM MUTUAL FUND IN THREE WAYS:

Income is earned from dividends and interest on bonds. A fund pays out

nearly all income it receives over the year to fund owners in the form of a

distribution.

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

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

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

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

profit.

Net Asset Value

Following are the regulatory requirements and accounting definitions laid down

by

SEBI:

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

= MVL+ REC+ AI+ Asset – AE – Pay – Lia

No .of Units Outstanding as at the NAV date

MVL: Market value of Investment

REC: Receivables

AI: Other Accrued Income

Asset: Other Assets (Dividend yet to be received)

AE: Accrued Expense

Pay: Other Payables

Lia: Other Liabilities (Custodian and Management Fees)



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Fund’s NAV is affected by:

Purchase or Sale of Investors Securities.

Valuation of all Investment Securities.

Other Assets and Liabilities.

Units Sold or Redeemed.

Classification of Mutual Fund

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

repurchase at all time. An investor can buy or redeem the units at price

based on NAV per Unit.

Close Ended Funds: These funds don‟t have units available for sale and

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

units. However, to provide liquidity to investors many close-ended funds

get listed on a Stock Exchange(s).

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

distribution/ sales/marketing expenses. These charges ar e called

“loads”. If load amount is charged over a period of time, it is called a

“Deferred Load”. Some funds charge different amount of load to the

investors depending on number of years the investors have stayed with

funds. Such charges are called “Contingent Deferred Sale Charge”.

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

are called as “No Load Funds”.

TYPES OF MUTUAL FUNDS:

Mutual Funds have specific investment objectives such as growth of capital,

safety of principal current income or tax exempt income, one can select one fund or



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any number of different funds to help one meets ones specific goals. In general mutual

fund fall under 3 general categories: -

Equity fund invest in shares of common stocks.

Fixed income funds invest in government or corporate securities which

offer fixed rate of returns.

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

AGGRESSIVE GROWTH FUNDS:

These funds seek to provide maximum growth of capital with secondary

emphasis on dividend or interest income. They invest in common stocks with a high

potential for rapid growth and capital appreciation.

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

assume the risk of potential loss in value of their investment in the hope of achieving

substantial and rapid gains. They are not suitable for investors who must conserve their

principal or who must maximize their current income.

GROWTH FUNDS:

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

growth rather than income. They are considered more conservative in their approach

because they usually invest in established companies to achieve long-term growth.

Growth fund provides low current income but the investor principal is more stable then

it would be in an aggressive growth fund. While the growth potential may be less over

the short term, many growth funds have superior long-term performance records.

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

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

investments.

GROWTH AND INCOME FUNDS:

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

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



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

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

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

current income.

FIXED INCOME FUNDS:

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

with the level of capital. Growth of capital is of secondary importance.

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

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

want to maximize current income and who can assume a degree of capital risk in order

to do so.

EQUITY FUNDS:

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

Generally the investment objective of this class of fund is long-term capital growth

with some income. There are however many type of equity funds.

BALANCED FUNDS:

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

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

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

income and moderate growth.

MONEY MARKET FUNDS/ LIQUID FUNDS:

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

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

virtually risk free, short-term debt securities of agencies of the Indian government,

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

money market mutual funds are able to keep a virtually constant unit price; only the

yield fluctuates.



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

principal and current income with immediate liquidity.

SPECIALITY / SECTOR FUNDS:

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

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

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

conservative approach than investing directly in one particular company.

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

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

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

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

mirror the performance of various market averages.

2.1.1 Pros and corns of mutual fund

Advantages of Mutual funds

Diversified portfolio of investments: As the investments are made in

various stocks of different companies, Professional Management: Fund

Managers and his/her team of highly qualified professional looks at all

perspectives before committing to an investment decision. This sort of

specialist knowledge is available to the small retail investor through the MF

route.

Market Linked Return: Many schemes offered by mutual funds help

investors to gain return better than the market.

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

or two shares or debentures or other instruments.

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

investing such as brokerage or custody of securities. Investing via Mutual

Fund help investors to reduce the cost as larger volumes are involved



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2.1.2. MUTUAL FUND INDUSTRY IN INDIA

Figure 1.3

Mutual Funds in India

UTI Private sector Public

JV‟s with foreign Partners

Foreign Houses Indian Houses

Birla Sun CapitalPrudential ICICIAlliance CapitalKothari Pioneer

TempletonAllianceMorgan Stanley

TATAJMCD EQUISEARCH

Banks

SBI

CANARA

PNB BOI etc.

Institutions

GIC

LIC etc.



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THE RISK RETURNS GRAPHS FOR VARIOUS FUNDS:-

Figure 1.4

The above Graph shows the Risk and Returns generated by

different Funds. Liquid Funds are less Risky and also generate less Returns where as

Sector Funds are more Risky but generate more Returns by the example of above two

Funds it is clear that Risk and Returns are directly proportional to each other. Other

Funds like Equity Funds, Balanced Funds and Income Funds are also gives the same

percentage of Returns as the Risk involved.

REGULATORY ASPECT:

Schemes of mutual funds:

The Asset management company shall launch no schemes unless the

trustees approve such scheme and a copy of the offer has been filed with

the Board.

Every mutual fund shall along with the offer documents of each scheme

pay filing fees.

The offer document shall contain disclosures which are adequate in order

to enable the investors to make informed investment decision including

the disclosure non maximum investments proposed to be made by the

Liquid Funds

Income Funds

Balanced Funds

Equity Funds

Sector Funds

RISK

R

E

T

U

R

N

S



35

scheme in the listed securities of the group companies of the sponsor. A

close-ended scheme shall be fully redeemed at the end of the maturity

period. “Unless a majority of the unit holders otherwise decide for its

rollover by passing a resolution”.

The mutual fund and asset management company shall be liable to

refund the application money to the applicants:-

If the mutual fund fails to receive the minimum subscription amount

referred to in clause (i) of sub- regulation.

If the moneys received from the applicants for units are in excess of

subscription as referred to in clause (ii) of sub-regulation.

The asset management company shall issue to the applicant whose

application has been accepted, unit certificates or a statement of accounts

specifying the number of units allotted to the applicant as soon as

possible

but not later than six weeks from the date of closure of the initial

subscription list and or from the date of receipt of the request from the

unit

Holders in any open ended scheme.

Rules Regarding Advertisement:-

The offer document and advertisement materials shall not be misleading

or contain any statement or opinion, which are incorrect or false.

Investment objectives and valuation policies:-

The price at which the units may be subscribed or sold the price at which

such unit may at any time be repurchased by the mutual fund shall be

made available to the investors.

General Obligation:-

Every asset management company for each scheme shall keep and

maintain proper book of accounts, records and document, for each



37

A mutual fund Scheme shall not invest more than 10% of its NAV in

unrated debt instrument issued by a single issuer and the total investment

in such instruments shall not exceed 25% of the NAV of the Board of

Trustees and the Board of Asset management.

No mutual funds under all its schemes should own more than 10% of any

company‟s paid up capital carrying voting rights.

Such transfers are done at the prevailing market price for quoted

instrument on spot basis.

The securities so transferred shall be in conformity with the investment

objectives of the scheme to which such transfer has been made.

A scheme may invest in another scheme under the same asset

management company or any other mutual fund without charging any

fees, provided that aggregated intercourse inter scheme investment made

by all schemes under the same management or in schemes under the

management of any other asset management company shall not exceed

5% of the net asset value of the mutual fund.

The initial issue expenses in respect of any scheme may not exceed 6% of the funds

raised under that scheme.

Every mutual fund shall buy and sell securities on the basis of deliveries

and shall in all cases of purchases, take delivery of relative securities and

in all cases of sale, deliver the securities and shall in no case put itself in

a position whereby it has to make short sale or carry forward transaction

or engage in Badla finance.

Every mutual fund shall get the securities purchased or transferred in the

name of the mutual fund on account of the concerned scheme, wherever

investments are intended to be of long-term nature.

Pending deployment of funds of a scheme a mutual fund can invest the

funds of the scheme in short term deposits of scheduled commercial

banks.

No mutual fund scheme shall make any investment in ;



38

o Any unlisted security of an associate or group company of the

sponsor or

o Any security issued by way of private placement by an associate

or group company of the sponsor.

The listed securities of group companies of the sponsor which is in excess of 30% of

the net assets (of all the schemes of a mutual fund)

No mutual fund scheme shall invest more than 105 of its NAV in the

equity shares or equity related instrument of any company. Provided

that, the limit of 10 percent shall not be applicable for investments in

index fund or sector or industry specific schemes. A Mutual fund scheme

shall not invest more than 5% of its NAV in the equity shares or equity

related investments in case of open-ended schemes and 10 % of its NAV

in case of close ended schemes.

2.2 RESEARCH REVIEW

Mutual funds industry is a growing at a very fast rate India. Various studies and

research has been on this industry by experts. Here are the lists of few books that have

been referred to for the purpose of the study.

Study by Laukkanen (2006) explains that varied attributes present in a

product or service facilitate customer‟s achievement of desired end-state and the

indicative facts of study show that electronic services create value for customers in

service consumption.

Singh and Jha (2009) conducted a study on awareness & acceptability of

mutual funds and found that consumers basically prefer mutual fund due to return

potential, liquidity and safety and they were not totally aware about the systematic

investment plan. The invertors‟ will also consider various factors before investing in

mutual fund.



39

Ramamurthy and Reddy (2005) conducted a study to analyze recent trends in

the mutual fund industry and draw a conclusion that the main benefits for small

investors‟ due to efficient management, diversification of investment, easy

administration, nice return potential, liquidity, transparency, flexibility, affordability,

wide range of choices and a proper regulation governed by SEBI. The study also

analyzed about recent trends in mutual fund industry like various exit and entry

policies of mutual fund companies, various schemes related to real estate, commodity,

bullion and precious metals, entering of banking sector in mutual fund, buying and

selling of mutual funds through online.

Anand and Murugaiah (2004) had studied various strategic issues related to

the marketing of financial services. They found that recently this type of industry

requires new strategies to survive and for operation. For surviving they have to adopt

new marketing strategies and tactics that enable them to capture maximum

opportunities with the lowest risks in order to enable them to survive and meet the

competition from various market players globally.

The Week, March 18th 2007: Money«

The route to take; Best options in a changing market. A study conducted on various

investment options and its importance.

Major findings of the study are as follows: Bank deposit:

The demand for credit has led to an increase in different for deposits to banks.

With the demand for deposits increasing, internet rates are not expected to come down

in the nearer future. Banks are given better returns than post office deposits to stem any

flow there, too.

Real estate:

An increase in interest rates by banks has made investment in real estate dearer

for the common man. There will be 17 million new households needing a residual

space of 16 billion sq. ft. by 2010.



41

2.3 RESEARCH GAP:

The previous research in CD EQUISEARCH was about the awareness of

mutual funds in that company. The current research in this report deals with the

awareness in investment in financial products, perception about mutual funds in the

minds of investors, sources of awareness of mutual funds, the various basis on

choosing mutual fund companies, awareness of different mutual fund schemes,

preferred schemes by investors in CD EQUISEARCH, reasons of choosing schemes

and investors experience with mutual funds. Hence the research helps us to find the

customer perception of investing in CD EQUISEARCH in future. And hence it helps

the company to implement measures to achieve a profitable business.

1`



43

structured, close ended questionnaire.

The primary data for the study was collected through the questionnaire and

necessary information was given to the respondent in order to enable them to give the

required information.

Secondary data:

The secondary data were collected through the company records, internet,

books, journals & magazines.

Descriptive and Analytical Research

Descriptive research, also known as statistical research, describes data and

characteristics about the population or phenomenon being studied. However, it does

not answer questions about e.g.: how/when/why the characteristics occurred, which is

done under analytic research.

Although the data description is factual, accurate and systematic, the research

cannot describe what caused a situation. Thus, Descriptive research cannot be used to

create a causal relationship, where one variable affects another. In other words,

descriptive research can be said to have a low requirement for internal validity.

Analytical research is a type of research that utilizes critical thinking to find out

facts about a given topic and from the answers obtained develop new and useful ways

of doing things. Critical thinking is a method of thinking that puts assumptions into

question to decide whether a given claim is true or false.

Sampling methods: -

Non-Probability Sampling:

In non-probability sampling, the chance of any particular unit in the population

being selected is unknown. Since randomness is not involved in the selection process,

an estimate of the sampling error cannot be made. But this does not mean that the

findings obtained from non-probability sampling are of questionable value. If properly

conducted their findings can be as accurate as those obtained from probability

sampling.



44

Sample Design:

Convenience Sampling :

As the name implies, a convenience sample is one chosen purely for

expedience (e.g., items are selected because they are easy or cheap to find and

measure.

While few analysts would find credibility in conclusions from such extreme

cases, the inappropriateness of using convenience sampling to estimate universe values

is not widely recognized. The major problem with this (and other non-probability

method) is that one is unable to draw objective inference about a rigorously defined

universe. In practice, it is often found that the response given by "convenient" items in

a universe differ significantly from the responses given by universe items that are less

accessible. As a result, unless one is dealing with a known highly homogeneous

universe (virtually all items responding alike), convenience sampling should not be

used to estimate universe values.

Convenience sampling method was used in this study because of the constraints

like cost and time

Sampling Unit

The respondents of this survey are the customers of CD EQUISEARCH PVT

LTD, Chennai.

Sampling size:-

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

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

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

project my sample size was 102.

The Sample Size of 102 is not enough to draw a conclusion but as per the time

assigned it was difficult to take a sample size more than 102.

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

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

Sample .



46

Where, Oi refers to the observed frequency & Ei to the expected frequencies. χ² was

used as a test of independence and goodness of fit.

CORRELATION ANALYSIS:

Correlation Analysis is a statistical technique used to measure the

magnitude of linear relationship between two variables. Correlation Analysis is not

used in isolation to describe the relationship between variables. To analyze the relation

between two variables, two prominent correlation coefficient are used – the Pearson

product correlation coefficient and Spearman‟s rank correlation coefficient .

In this study the Pearson product correlation coefficient is used to find the

correlation coefficient between respondents awareness level at the time of joining with

employees participation in suggestion scheme & respondents awareness level at

present and the counseling .

This is also known as simple correlation coefficient and is denoted by “r”. The

“r” value ranges from -1, through 0, to +1.It is calculated using the formula

r = ∑ xy / √∑ x2.∑ y2

ANOVA:

Decomposing of total variability into its components is called Analysis Of

Variance (ANOVA).The one-way analysis of variance is designed to test the null

hypothesis i.e., the arithmetic means of population from which the samples are

randomly drawn are equal to one another.

Between sample variance

Percentages =Within sample variance



47

ONE WAY ANOVA TEST

In statistics, one-way analysis of variance (abbreviated one-way ANOVA)

is a technique used to compare means of two or more samples (using the F

distribution). This technique can be used only for numerical data. The ANOVA tests

the null hypothesis that samples in two or more groups are drawn from the same

population. To do this, two estimates are made of the population variance.

Execution of the project:

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

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

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

and structured in following steps:

a. Preparation of questionnaire.

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

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

good data for analysis.

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

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

mutual fund.



48

CHAPTER-4

4. DATA ANALYSIS AND INTERPRETATION

4.1 PERCENTAGE ANALYSIS

TABLE 4.1.1: Age Of Respondents

CHART 4.1.1: Age of Respondents

INTERPRETATION:

From the above table it is inferred that out of 102 respondents, 32.3% are

between the age group of 30-40, 25.5% are between the age group of 40-50, 17.6% are

between the age group of 20-30, 14.7% are more than 60, and 9.8% are between the

age group of 50-60.

INFERENCE:

Majority of the respondents (32.3%) are between the age group of 30-40.

0

5

1015

20

25

30

35

20-30 30-40 40-50 50-60 More than

60

Percentage

Percentage

AGE FREQUENCY PERCENTAGE

20-30 18 17.6

30-40 33 32.3

40-50 26 25.5

50-60 10 9.8

More than 60 15 14.7

TOTAL 102 100



49

TABLE 4.1.2: Gender

GENDER FREQUENCY PERCENTAGE

MALE 87 85.3

FEMALE 15 14.7

TOTAL 102 100

CHART4.1.2: Gender

INTERPRETATION:

From the above table it is inferred that out of 102 respondents, 85.3% are male

and 14.7% are females.

INFERENCE:

Majority of the respondents (85.3%) are male.

85.3

14.7

0

10

20

30

40

50

60

70

80

90

MALE FEMALE

PERCENTAGE



52

TABLE 4.1.5: Percentage of Investment from Income

INCOME FREQUENCY PERCENTAGE

Over 50 % 1 1

35% - 50% 5 4.9

20% - 35% 56 54.9

10% - 20% 25 24.5

Below 10% 15 14.7

TOTAL 102 100

CHART 4.1.5: Percentage of Investment from Income

INTERPRETATION:


investing 20-35% from their income, 24.5% are investing 10-20% from their income,

14.7% are investing below 10% from their income, 4.9% are investing 35-50% from

their income and 1% are investing over 50% from their income.

INFERENCE:

Majority of the respondents (54.9%) are investing 20-35% from their income.

0

10

20

30

40

50

60

Over 50 % 35% - 50% 20% - 35% 10% - 20% Below 10%

Percentage



53

TABLE 4.1.6: Investment in Financial Products

FINANCIAL INSTRUMENTS FREQUENCY PERCENTAGE

BANK 35 34.3

STOCK MARKET 23 22.5

NSC 7 6.8

REAL ESTATE 27 26.4

Others 10 9.8

TOTAL 102 102

CHART 4.1.6: Investment in Financial Products

INTERPRETATION:

From the above table it is inferred that out of 102 respondents, 34.3 % are

investing in bank, 26.4 % are investing in real estate, 22.5 % are investing in stock

market, 9.8% are investing in others, and 6.8% are invested in NSC.

INFERENCE:

Majority of the respondents (34.3%) are investing in bank.

0

5

10

15

20

25

30

35

40

Bank Stock market NSC Real estate Others

Percentage



54

TABLE 4.1.7: Perception about Mutual Fund

PERCEPTION FREQUENCY PERCENTAGE

Safe 35 34.3

Highly safe 20 20

Risky 19 18.6

Higher risky 13 12.7

Other 15 14.7

TOTAL 102 100

Chart 4.1.7: Perception about Mutual Fund

INTERPRETATION:


perceived safe by investing in mutual fund, 20% are perceived highly safe by investing

in mutual fund, 18.6% are perceived risk by investing in mutual fund, 12.7% are

perceived higher risk by investing in mutual fund, and 14.7% are perceived other

reasons by investing in mutual fund.

INFERENCE:

Majority of the respondents (34.3%) are perceived safe by investing in mutual fund.

34.3

20 18.6

12.714.7

0

5

10

15

20

25

30

35

40

Safe Highly safe Risky Higher risky Other

PERCENTAGE



55

TABLE 4.1.8: Sources

SOURCES FREQUENCY PERCENTAGE

Broker 23 22.5

Bank 10 9.8

AMC (Asset Management

Company)

55 53.9

Friends/Relatives 9 8.9

TV/Newspapers 5 4.9

TOTAL 102 100

CHART 4.1.8: Sources

INTERPRETATION:


comes to know about mutual fund through AMC (asset management companies),

22.5% are comes to know about mutual fund through brokers, 9.8% are comes to know

about mutual fund through bank, 8.9% are comes to know about mutual fund through

Friends/Relatives and 4.9% are comes to know about mutual fund through

TV/Newspapers.

INFERENCE:

Majority of the respondents (53.9%) are comes to know about mutual fund through

AMC

22.59.8

53.9

8.9 4.9

0

20

40

60

PERCENTAGE



56

TABLE 4.1.9: Basis on choosing mutual fund companies.

BASIS ON CHOOSING

MUTUAL FUND COMPANIES

FREQUENCY PERCENTAGE

BRAND NAME 17 16.7

GOOD SERVICE 35 34.3

HIGH YIELD 31 30.3

ADVERTISEMENT 11 10.8

OTHERS 8 7.8

TOTAL 102 100

CHART 4.1.9: Basis on choosing mutual fund companies.

INTERPRETATION:


look good service companies, 30.3% are look high yield companies, 16.7% are look

branded companies, 10.8% are look advertisement of the companies, and 7.8% are

look others.

INFERENCE:

Majority of the respondents (34.3%) are looking good service companies.

16.7

34.330.3

10.87.8

0

10

20

30

40

PERCENTAGE



57

TABLE 4.1.10: Investing Years

YEARS FREQUENCY PERCENTAGE

0-5 64 62.74

5-10 27 26.47

10-15 11 10.78

15-20 0 0

Above 20 years 0 0

TOTAL 102 100

CHART 4.1.10: Investing Years

INTERPRETATION:


investing 0-5 years in CD, 26.47% are investing 05-10 years in CD, 10.78% are

investing 10-15 years in CD, 0% are investing 15-20 years and above 20 years in CD.

INFERENCE:

Majority of the respondents (62.74%) are investing 0-5years in CD.

0

10

20

30

40

50

60

70

0-5 5 - 10 yrs 10 - 15 yrs 15 - 20 yrs above 20 yrs

Percentage

Percentage



58

TABLE 4.1.11: Awareness of Different Mutual Fund Schemes in CD

EQUISEARCH.

SCHEMES FREQUENCY PERCENTAGE

Growth Schemes 14 13.7

Income Schemes 22 21.6

Balance Scheme 32 31.3

Money Market And

Liquid Schemes

13 12.7

Tax Saving Schemes 21 20.6

TOTAL 102 100

CHART 4.1.11: Awareness of Different Mutual Fund Schemes In CD

EQUISEARCH.

INTERPRETATION:


aware of balance scheme, 21.6% are aware of income scheme, 20.6% are aware of tax

saving scheme, 13.7% are aware of growth scheme and 12.7% are aware of money

market and liquid scheme,

INFERENCE:

Majority of the respondents (31.3%) are aware of balance scheme.

0

10

20

30

40

Growth

Schemes

Income

Schemes

balance

schemes

Monet market

and Liquid

schemes

Tax saving

schemes

Percentage

Percentage



60

TABLE 4.1.13: Reasons

REASONS FREQUENCY PERCENTAGE

Returns 45 44.1

Lower risk 19 18.6

Credit rating 13 12.7

Company 15 14.7

Lock in period 10 9.8

TOTAL 102 100

CHART 4.1.13: Reasons

INTERPRETATION:

From the above table it is inferred that out of 102 respondents, 44.1%

consider returns as a major reason to choose mutual funds schemes in CD

EQUISEARCH, 18.6% considers lower risk as major reason, 14.7% considers

company as reason, 12.7% considers credit rating as reason and 9.8% considers lock in

period as reason

INFERENCE:

Majority of respondents considers returns as a major reason to choose

mutual funds in CD EQUISEARCH.

0

5

10

15

20

25

30

35

40

45

50

Returns Lower risk Credit rating Company Lock in period

Percentage



61

TABLE 4.1.14: Terms WORK OUT

LONG

TERM

FREQUENCY PERCENTAGE

Yes 47 46.1

No 55 53.9

TOTAL 102 100

CHART 4.1.14: Terms

INTERPRETATION:


invested in short term mutual fund in CD, and 46.1% are invested in long term mutual

fund in CD.

INFERENCE:

Majority of the respondents (53.9%) are invested in short term mutual fund

in CD EQUISEARCH.

46.1

53.9

42

44

46

48

50

52

54

56

Long Term Short Term

PERCENTAGE



68

4.2.2 CHI SQUARE

NULL HYPOTHESIS: There is a no association between age and investor experience

with mutual fund.

ALTERNATE HYPOTHESIS: There is a association between age and investor

experience with mutual fund.

Chi-Square valve is 11.770 with 9 degree of freedom. The P value is 0.227 which is

greater than 0.05 level of significance.

RESULT:

We accepted Ho. There is no association between age and investor experience with

mutual fund

Chi-Square Tes ts

11.770a 9 .227

12.057 9 .210

1.531 1 .216

102

Pearson Chi-Square

Likelihood RatioLinear-by-Linear

Association

N of Valid Cases

Value df

Asymp. Sig.

(2-sided)

7 cells (43.8%) have expected count less than 5. The

minimum expected count is 1.44.

a.



69

4.2.3 CHISQUARE:

NULL HYPOTHESIS: There is a no association between age and invest in various

investment schemes

ALTERNATE HYPOTHESIS: There is a association between age and invest in

various investment schemes.

Chi-Square Tests

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 26.655a 24 .321

Likelihood Ratio 30.983 24 .154

Linear-by-LinearAssociation

.003 1 .960

N of Valid Cases 102

a. 29 cells (80.6%) have expected count less than 5. The minimum expected

count is .82.

Chi-Square valve is 26.655 for 24 degree of freedom. The P value is 0.321 which is

greater than 0.05 level of significance.

RESULT:

We accepted Ho. There no association between age and invest various investment

schemes



70

4.2.4 CORRELATION

Correlation Analysis between preferring schemes and reason for preferring.(wok)

Symmetric Measures

Value

Asymp.Std.

Error(a)Approx.

T(b)Approx.

Sig.

Interval byInterval

Pearson's R.029 .094 .293 .770(c)

Ordinal byOrdinal

SpearmanCorrelation

.027 .099 .273 .785(c)

N of Valid Cases 102a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

.R= 0.029As the value of r is between -1&+1

RESULT:There is positive but weak correlation between preferring schemes and reason for

preferring.



71

4.2.5 CORRELATION

Correlation Analysis between annual salary and percentage of investment from

income.

Symmetric Measures

Value Asymp. Std.

Error a

Approx.

T b

Approx.

Sig.

Interval by

Interval Pearson's R .039 .110 .393 .695

c

Ordinal by

Ordinal

Spearman

Correlation.027 .108 .273 .785c

N of Valid Cases 102

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

R=0.039

As the value of r is between -1&+1

RESULT:

There is positive but weak correlation between annual salary and percentage of

investment from income.



73

44.1% consider returns as a major reason to choose mutual funds schemes in CD

EQUISEARCH and 9.8% considers lock in period as reason.

53.9% of respondents are invested in short term mutual fund in CD, and 46.1% of

respondents are invested in long term mutual fund in CD.

38.3% of respondents are consult only on sometimes while making an investment

choice and 13.7% of respondents are never consult while making an investment choice

38.2% of respondents are make investment decision once in 3 months and 11.8% of

respondents are make investment decision once a year and 2.94% of respondents are

make investment decision once in 9 months.

58.8% of respondents are aware of SMS alert and get service from CD and 2% of

respondents are not aware of above mentioned options.

45% of respondents are experienced good with mutual fund and 6.9% of respondents

are experienced poor with mutual fund.

81.4% of respondents are preferred yes to investment in future, 18.6% of respondents

are preferred no to investment in future.

From Anova test It is observed that there is some significant relationship between

occupation and reason for preferring schemes.

From chi-square test it is analyzed there no significant relationship between age and

investor experience with mutual fund.

From chi-square test it is analyzed that there is no significant relationship between age

and invest various investment schemes

From the correlation result we observe that there is highly positive correlation between

preferring schemes and reason for preferring.

From the correlation result we observe that there is highly positive correlation between

annual salary and percentage of investment from income.



74

5.2 SUGGESTIONS

Investment in financial products such as PPF , NSC bonds and debentures should be

increased

Perception about the mutual funds in the minds of people should be safe

The advertisement about the awareness of mutual funds in TV and newspapers should

be increased

The investors must be provided with a good service to retain in the company

The investors must be aware of different mutual fund services

The number of long term investors must be increased since profit level increases for

long term investors

The investors must be provided with an e-mail alert about mutual fund services

The investors should be provided with better services to create an excellent buying

experience



75

CONLUSION

From the study it is clear that CD EQUISEARCH enjoys a very good market share in

bank industry. The awareness of various investment about financial products in the minds ofinvestors should be increased to enable investors to prefer their suitable schemes .Also the

awareness of mutual funds in CD EQUISEARCH should be increased through television and

newspapers to enable them to invest in that company. And at last the investors are provided

with a better services to attain a good investor experience with the mutual funds. If the

company implements the suggestions highlighted in the project, then there will be a better

scope for growth and development of the organization.



76

BIBLIOGRAPHY

REFERENCES:

BOOKS:

Association of Mutual Fund in India³AMFI work book´ Mumbai 2006.

ICMR Text Book 1989

Kothari, C.R. Research Methodology, Methods & Techniques´ publication 2011.

Dalal Street Journal‟s Stock Market Book 1996

Mutual Funds-ICMR book of readings 1999

Fredman Albert j & Wiles Russ, How Mutual Fund work´, Prentice Hall of India, New

Delhi, 1997

Journal- Financial of India 2007

Journal- Marketing Funds 2010

JOURNALS

Jensen Michael C, “The Performance Of Mutual Funds In The Period 1945-

1964”, Journal of. Finance, Vol. 23, (1968), pp.389-416.

NP TRIPATHY, (1996) “FINANCE INDIA. Mutual Fund In India: A Financial.

Service In Capital Market”, Vol. X No. 1, March 1996. Pages. 85– 91

BM Barber, “a losing mutual fund and, thus, nearly 40 percent of fund sales occur in

funds ranked in the top mutual funds”, Journal of Financial Economics Vol. 53,

(1993) pp.439-466

WEBSITES:

www.cdequi.com

http://mutualfunds.about.com

http://www.journals.elsevier.com/industrial-marketing-management

http://en.wikipedia.org/wiki/Mutual_fund

http://www.amfiindia.com/spages/InvestorGuide.pdf

www.utimutualfund.com




http://www.utimutualfund.com/

http://www.utimutualfund.com/






79

10. HOW DO YOU CHOOSE MUTUAL FUND IN CD EQUISEARCH PVT

LTD?

A. Brand Name

B. Good Service

C. High Yield

D. Advertisement

E. Any Other Reason……………………………............................................

11. FOR HOW LONG YEARS YOUR INVESTING IN CD EQUISEARCH?

A. 0- 5 years

B. 5-10 years

C. 10-15 years

D. 15-20 years

E. above 20 years

12. WHAT ARE DIFFERENT TYPES OF MUTUAL FUNDS ARE YOU

AWARE IN CD EQISEARCH PVT LTD?

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

term)

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

C. Balance schemes.(provide both growth and income)

D. Money market and Liquid Schemes.(provide easy liquid preservation of

capital and moderate income).

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

13. WHICH OF THEM DO YOU PREFER IN CD EQUISEARCH PVT LTD?

A. Growth schemes

B. Income schemes

C. Balance schemes

D. Money Market and Liquid schemes

E. Tax saving schemes

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