cuistomer awerness

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A

PROJECT REPORT ON

STUDY OF CUSTOMER AWARENESS ABOUT

MUTUAL FUNDWith Special Referece T! The

"C"C" Pr#$etial Life "%#race C!&pa'()

Sa*li Brach(

S#+&itte$ t!)

B,ARAT" -"DYAPEET, UN"-ERS"TY) PUNE

" Partial f#lfill&et !f the re.#ire&et f!r a/ar$ !fThe De*ree !f

MASTER OF BUS"NESS ADM"N"STRAT"ON 0"(T(1

B'

M"SS(ARUNA -ASANTRAO PAT"L(

U$er the 2#i$ace !f

Pr!f( Ja'athi M( S(

Thr!#*h)

The Direct!r

B,ARAT" -"DYAPEET, UN"-ERS"TY) "NST"TUTE OF

MANA2EMENT a$ RURAL DE-ELOPMENT

ADM"N"STRAT"ON)

SAN2L"345645678893788:


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CERT"F"CATE

This is to certify that the Project titled

STUDY OF CUSTOMER AWARENESS ABOUT

MUTUAL FUND

Submitted By

Mi%%( Ar#a -a%atra! Patilfor the partial fulfillment of herwork for the award of Master Of Business Administration in Information

Technology MBA !IT" submitted to Bharati #idyapeeth $ni%ersity& Pune&

under super%ision and guidance of Prof 'ayanti(

To the best of our knowledge and belief the matter presented by

her is original in nature and has not been copied down from any sources

Also this report has not been submitted earlier for the award of

any (egree or (iploma of Bharati #idyapeeth $ni%ersity or any other

$ni%ersity

Place;

Date;

(r )itin )ayak Prof A P *hatule Prof 'ayanthi M S

(irector +O( *uide


3/73

AC


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0+APT12 3 I

"NTRODUCT"ON OF T,E STUDY

C,APTER3"


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"NTRODUCT"ON OF T,E STUDY

T+1 I)(IA) MA241T

India is an Agricultural country& so that about 567 of the

population is directly and indirectly dependent on agriculture In India there is

low literacy rate& low education and lack of skilled work force Many

educated people are also not aware about different in%estment a%enues

Because of the low income and low sa%ings peoples can not

take more risk to in%est their amount in to different in%estment a%enues India

is a de%eloping country so that lot of foreign direct in%estment is flowing

towards India In e%ery sector we can obser%e there is rapid changes so that

foreign in%estment is more in e%ery sector as far as consideration in

automobile communication& power& steel& pharmaceutical etc so that in%esting

their amount in to India these companies are getting more profit To raise the

fund from the market companies issues fund to subscribes the in%estors So

that foreign people in%est their amount in to the Indian market but our lots of

Indian people are not ready to in%est to the different schemes

The share market& commodity markets etc are risky for the

small in%estors and they ha%e to in%est high amount into share market So that

to a%oid risk in share market mutual fund is the best weapon in the hands of

small . medium in%estors )ow days share market is more %olatile So that

according to the needs of the in%estors& they can in%est their amount in tomutual fund to get good return as well as capital appreciation


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At the end of 899:& the mutual fund industry had assets under management

of 2s=;&66= crores

Thir$ Pha%e% @ 5>>?3788? 0 Etr' !f Priate Sect!r F#$%1

/ith the entry of pri%ate sector fund in 899:& a new era

started in the Indian mutual fund industry& gi%ing the Indian in%estors a wider

choice of fund families Also& 899: was the year in which the first Mutual -und

came into being& under which all mutual funds& e@cept $TI were to be registered

and go%erned The erstwhile 4othari Pioneer ! now merged with -ranklin

Templeton " was the first pri%ate sector mutual fund registered in 'uly 899:

The 899: S1BI !Mutual -und " 2egulations were substituted

by a more comprehensi%e and re%ised Mutual -und 2egulations in 8995 the

industry now functions under the S1BI !Mutual -und " 2egulations 8995

The number mutual fund houses went on increasing& with

many foreign mutual funds setting up funds in India and also the industry has

witnessed se%eral mergers and acuisitions As at the end of 'anuary ?66:& there

were mutual funds with total assets under management was way ahead of other

mutual funds

F!#rth Pha%e @ Sice Fe+r#ar' 788?

In -ebruary ?66:& following the repeal of the $nit Trust of

India Act 895: $TI was bifurcated into two separate entities& one is the Specified

$ndertaking of the $nit Trust of India with assets under management of 2s

?9&


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framed by *o%ernment of India and does not come under the pur%iew of the

Mutual -und 2egulations

The second is the Mutual -und >td& sponsored by SBI& P)B&

BOB and >I0 It is registered with S1BI and functions under the Mutual -und2egulations /ith the bifurcation of the erstwhile $TI which had in March ?666

more than 2s;5&666 crores of assets under management and with the setting up fo

a $TI Mutual -und& conforming to the S1BI Mutual -und 2egulations& and with

recent mergers taking place among different pri%ate sector funds& the mutual fund

industry has entered its current phase of consolidation and growth As at the end of

September& ?66=& there were ?9 funds& which manage assets of 2s8:86< crores

under =?8 schemes

The Industry today,

Open 1nd 0lose 1nd Total

N!( !f

Sche&e%

A&!#t N!( !f

Sche&e%

A&!#t N!( !f

Sche&e%

A&!#t

I)0OM1 57> ?5):7: 54 4)74 54? ?6)8:7

*2O/T+ 548 58)75? 7 3 547 58)75?

BA>A)01( ?6 5)?9 7 3 ?: 5)?9

>IC$I(DMO)1E

MA241T

?> 546894 3 3 ?> 546)94

*>IT ?8 5)595 3 3 ?8 5)595

1>SS 78 ?> 59 3 ?9 ?>

TOTA> ?>4 5>8)6:7 ? 4)74 47> 5>4)>?6


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N!te;

1rstwhile $TI was bifurcated into $TI Mutual -und and the Specified

$ndertaking of the $nit Trust of India effecti%e from -ebruary ?66: the

assets under management of the Specified $ndertaking of the $nit Trust of

India has therefore been e@cluded from the total assets of the industry as a

whole from -ebruary ?66: onwards

"NTRODUCT"ON TO MUTUAL FUNDS;

A mutual fund is a trust that pools the sa%ings of a number of

in%estors who share a common financial goal The money thus collected is

in%ested by the fund manager in different types of securities depending upon the

objecti%e of the scheme These could range from shares to debentures to money

market instruments The income earned through these in%estments and the capital

appreciation realiFed by the scheme is shared by its units owned by them !prorata"

Thus a mutual fund is the most suitable in%estment for the common man as it

offers an opportunity to in%est in a di%ersified& professionally managed portfolio atrelati%ely low cost Anybody with an in%est able surplus of as little as a few

thousand rupees can in%est in mutual funds 1ach mutual fund scheme has defined

in%estment objecti%e and strategy

What i% a M#t#al F#$

To state in simple words&a mutual fund collects the sa%ings

from small in%estors& in%est them in *o%ernment and other corporate securities

and earn income through interest and di%idends& besides capital gains It works on

the principle of small drops of water make a big ocean It is formed by coming

together of a number of in%estors who transfer their surplus funds to

professionally ualified organiFation to manage it


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To get surplus funds from in%estors& the fund adopts a simple

techniue 1ach fund is di%ided into a small fraction called& GunitsH of eual %alue

1ach in%estor is allocated units in proportion to the siFe of his in%estment Thus&

e%ery in%estors& whether big or small& will ha%e a stake in the fund and can enjoythe wide Portfolio of the in%estment held by the fund +ence& mutual funds enable

millions of small and large in%estors to participate in and deri%e the benefit of the

capital market growth It has emerged as a popular %ehicle of wealth due to high

return& lower cost and di%ersified risk

Defiiti!;

The securities and e@change board of India !Mutual -und"

regulations 899: defines a mutual fund as Ga fund established in the form of a

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

public under one or more schemes& for in%esting in securities in accordance with

these regulationsH

These mutual funds are referred to as unit trusts in the $4

and as open end in%estment companies in the $SA Therefore& 4amm ' O

defines an open end in%estment company as Gas organiFation formed for the

in%estment of funds obtained from indi%idual and institutional in%estors who in

e@change for the funds recei%es share which can be redeemed at any time their

underlying assets %aluesH

Thus& mutual funds are corporations which pool funds by

selling their own shares


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The flow chart below describes broadly the working of a mutual fund

Passed Pool their money

blocked to with

*enerates In%est in

One thing you should understand that

M- does not gi%e you assured returns and its performance would be as good as the

assets it in%ests in A mutual fund can be di%ided in %arious categories depending

on the underlying assets& its life& in%estment objecti%e& etc like

8 Based on asset class

(ebt& 1uity fund& Balanced fund& Money market fund& *ilt fund

? Based on time period

Open,ended fund& 0lose,ended fund& Inter%al fund

: Based on in%estment objecti%e

Income fund& *rowth fund& +ybrid fund

The kind of fund you buy will depend on your time horiFon& return

reuirements and risk appetite

Wh' M#t#al F#$

I)#1STO2S

-$)(

MA)A*12

S10$2ITI1S

21T$2)S


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A mutual fund is an entity that pools the money of many

in%estors ,, its unit,holders ,, to in%est in different securities In%estments may be

in shares& debt securities& money market securities or a combination of these

Those securities are professionally managed on behalf of the unit,holders& andeach in%estor holds a pro,rata share of the portfolio ie entitled to any profits when

the securities are sold& but subject to any losses in %alue as well

Str#ct#re !f M#t#al F#$

The S1BI!Mutual -unds" 2egulations 899: define a mutual

fund !M-" as a fund established in the form of a trust by a sponsor to raise monies

by the Trustees through the sale of units to the public under one or more schemes

for in%esting in securities in accordance with these regulations These regulations

ha%e since been replaced by the S1BI !Mutual -unds" 2egulations& 8995 The

structure indicated by the new regulations is indicated as under

There are a number of bodies that are a part of the mutual fund let us see

what they are

Sponsor

A Mutual -und is initiated by a sponsor& which organiFes and

markets the fund It specifies the in%estment objecti%es of the fund& the risk

associated & the costs in%ol%ed in the process and the broad rules for entry

into and e@it from the fund and the other areas of operation In India the

sponsor reuires an appro%al from the Securities 1@change Board of India

!S1BI"

Asset Management 0ompany
http://www.sebi.gov.in/HomePage.jsphttp://www.sebi.gov.in/HomePage.jsp


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The Asset Management 0ompany is formally appointed by

the trustees of the trust to manage money on their behalf

Based on the rule of the land a sponsor can also hold 8667

stake in the AM0 -or eg (SP Merrill >ynch 1uity funds is a mutual

benefit trust registered under the Indian Trust Act

The trustees ha%e appointed (SP Merrill >ynch Asset

Management 0ompany P%t >td to manage the funds in the trust

The AM0 recei%es a fee for its ser%ices 0urrently S1BI

permits a fee of 8?7 p a of the asset %alue of the fund for a fund less than86 crores This AM0 reports to the trustees who ha%e to safeguard the

interests of the in%estors in the mutual funds

Trustee 0ompany

Thesponsor promotes the Trustee 0ompany or the trust The

trustees include e@perienced and eminent people representing a cross section of

the industry and the society They not only monitor performance of the AM0

but also o%ersee operations of the custodian and transfer agent

0ustodian

The AM0 has to hire an outside custodian& which is

responsible for the custody of the assets of the fund The custodian is also

responsible for receipt of all kinds of cash and non,cash benefits such as bonus&

di%idends and rights It is usually a bank or any other financially sound

institution

JJJJJJ 2egistrar and transfer agents


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The AM0 hires this agency for taking care of purchase and

sale of the units of the fund& issue certificate D account statements to in%estors&

make di%idend payments etc 1g 4ar%y 0onsultants


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OR2AN"AT"ON STRUCTURE

Shareh!l$er%

B!ar$ !f Tr#%tee%

O%ersees the -undKs Acti%ities& including appro%al of the contract

with the AM0 and the other ser%ice pro%iders

Mutual -und

"e%t&et A$i%!r

AMCManages the -undKs

portfolio according to

the objecti%es and thepolicies described in the

fundKs prospectus

Di%tri+#t!rSells -und shares eitherdirectly or through other

firms

C#%t!$ia+olds the fund assets&

maintaining themseparately to protect

shareholder interest

"$epe$et

p#+lic

acc!#tat%0ertify the fundKsfinancial statements

Tra%fer a*et%

Pr!ce%%e%

Orders to buy andredeem -und shares


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TYPES OF FUNDS CLASS"F"CAT"ON OF FUNDS

Mutual -und

On the basis of e@ecution

and operation

On the basis of yield and

in%estment pattern

Open ended0lose 1nded

Income

-und

SpecialiFed

-und

*rowth

-und

Money

Market

Mutual

-und

Balance

-und

Ta@ation

-und


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? The objecti%e of this type of fund is to declare regular di%idend and

not capital appreciation

: This is best suited to the old and retired people who may not ha%e any

regular income= The pattern of in%estment is oriented towards high and fi@ed income

yielding securities like debentures bonds etc

It concerns itself with short run gains only

B" Pure *rowth funds ! *rowth oriented funds"

$nlike the income funds& growth funds concentrate mainly on

long run gains ie capital appreciation They do not offer regular income

and they aim at capital appreciation in the long run +ence they ha%e been

described as G)est 1ggsH in%estments

The main features of the *rowth finds are,

8 The growth oriented fund aims at meeting the in%estors need for capital

appreciation

? The in%estment strategy therefore& confirms to the fund objecti%e by

in%esting the funds predominantly& on euities with high growth

potential

: The fund tries to get capital appreciation by taking much risks and

in%esting on risk bearing euities

= The fund may declare di%idend& but its principle objecti%e is only capital

appreciation

This is best suited to salaried and business people who high risk bearing

capacity and ability to defer liuidity They can accumulate wealth for

future needs

0" Balanced -unds


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This is otherwise called GIncome,cum,growthH fund It

is nothing but a combination of both income and growth funds It aims at

distributing regular income as well as capital appreciation This is achie%ed

by balancing the in%estments between the high growth euity shares andalso the fi@ed income earning securities

(" SpecialiFed -unds

Besides the abo%e& a large number of specialiFed funds

are in e@istence abroad They offer special scheme so as to meet the specific

needs of specific categories of people like pensioners& windows etc there

are also funds for in%estment in securities of specified areas

Again certain funds may be confined to one particular sector or

industry like fertiliFer& automobiles& petroleum etc These funds carry hea%y

risks since the entire in%estment is in one industry

1" MO)1E, MA241T M$T$A> -$)(S ! MMM-s"

These funds are basically open ended mutual funds and

as they ha%e all the features of the open ended fund But& they in%est in

highly liuid and safe securities like commercial paper& bankers

acceptances& certificates of deposits& treasury bills etc These instruments

are called money market instruments

-" Ta@ation -unds

A ta@ation fund is basically a growth oriented fundBut it offers ta@ rebates to the in%estors either in the domestic or foreign

capital market It is suitable to salaried people who want to enjoy ta@

rebates particularly during the month of -ebruary and March


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= Bond -unds

These funds ha%e portfolio consisting mainly of fi@ed

income securities like bonds The main trust of these funds is mostly on

income rather than capital gains They differ from income funds in thesense income funds on a%erage returns higher than that from bank deposits

and also capital gains lesser than that in euity shares

Aggressi%e *rowth -unds

These funds are just the opposite of bond funds These

funds are capital gains oriented and thus the trust area of these funds is

capital gains +ence these funds are generally in%ested in speculati%e

stocks )aturally& these funds tend to be %olatile in nature

5 Off,share Mutual -unds

Off,share Mutual -unds are those funds which are

meant for non,residential in%estors In other words& the sources of

in%estments for these funds are form abroad So they are regulated by the

pro%isions of the foreign countries where those funds are registered These

funds facilitate flow of funds across different countries& with free and

efficient mo%ement of capital for in%estment and repatriation +owe%er&

these funds in%ol%e much currency and country risk and hence they

generally yield higher return


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Fre.#etl' U%e$ Ter&%

Net A%%et -al#e

Treat a mutual fundKs net asset %alue as its price per share If

you see a fund )A# as 2s8=& then you can e@pect to buy the fund for 2s8=

!although some loaded funds donKt follow this logic" Since mutual funds hold a

number of securities& the net asset %alue must be calculated at the end of day on a

daily basis ! as opposed to stocks that change prices by the second"

Calc#lati* NA-%

0alculating mutual fund net asset %alues is easy Simply take

the current market %alue of the fundKs net assets ! securities held by the fund minus

any liabilities " and di%ide by the number of shares outstanding So if a fund had

net assets of 2s6 million and there are one million shares of the fund & then the

price per share ! or )A# " is 2s666

The )A# is listed on a daily basis in all the national newspapers Thus in

most cases the %alue of the policy is just a newspaper away

What i% Etr' Eit L!a$

A >oad is a charge& which the AM0 may collect on entry

and D or e@it from a fund A load is le%ied to co%er the up,front cost incurred by the

AM0 for selling the fund It also co%ers one time processing costs Some funds do

not charge any entry or e@it load These funds are referred to as L )o >oad -und L

-unds usually charge an entry load ranging between 8667 and ?667 e@it loads%ary between 6?7 and ?667


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-or eg >et us assume an in%estor in%ests 2s86&666D, and the current )A# is

2s8:D, If the entry load le%ied is 8667& the price at which the in%estor in%ests is

2s8:8: per unit The in%estor recei%es 86666D8:8: ;5858=5 units ! )ote that

units are allotted to an in%estor based on the amount in%ested and not on the basisof no of units purchased"

>et us now assume that the same in%estor decides to redeem

his ;5858=5 units >et us also assume that the )A# is 2s8D, and the e@it load is

667 Therefore the redemption price per unit works out to 2s8=9? The

in%estor therefore recei%es ;5858=5 N 8=9? 2s88:5;86

Sale Price ;

Is the price the in%estor reuires while in%esting in a scheme

It is also called as Offer Price

Rep#rcha%e Price; Is the price at which a close,ended scheme repurchases its

units

Re$e&pti! Price;Is the price at which an open,ended scheme repurchases the

units


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= >ack of Professionals

The lack of in%est ad%isers& chiefly to gi%e

personaliFed in%estment ad%ice to the in%estors is creating road block for

the growth of mutual funds further the le%el of awareness in India about forthe growth of mutual funds -urther the le%el of awareness in India about

for the growth of mutual fund industry is largely restricted to the high

income in%estors and LAK class cities (ue to the less number of the

ad%isors& the LBK and L0K class cities are left untouched

Tapping the segment of the retail in%estors

The retail segment in Indian financial market has a

huge potential and is in%esting hugs sums of money in the market So& the

industry needs to allowed them to in%est through the mutual fund route

5 0urbing unethical Practices

The industry the challenges to control certain

challenge to control undesirable practices that are creating problem for the

industry as a whole The ad%isors are paid good amount of brokerage for

the in%estment that they bring with an AM0 So& there are changes that they

tend to make false projections about the funds future just to get the money

out of the in%estors and sell an undesirable product

; 2edefining (istribution

The distribution network in the industry is one of the

most important sources for an AM0 in gather plies of funds The

distribution network has to play an acti%e role in tapping this retail segment

to gi%e a boost to the asset base of industry *i%ing ample product

knowledge and support& like pro%iding the distributors with material and

documents etc


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0+AP1T2?

RESEARCH AND

DESIGN


29/73

STATEMENT OF T,E STUDY;

As a student of MBA,IT program at B+A2ATI

#I(EAP11T+ $)I#12SITE Institute Of Management . 2ural(e%elopment Administration& at Sangli& the researcher has selected the

following topic for the project study

GA Study of 0ustomer Awareness about Mutual -und with

special reference to the I0I0I Prudential >ife Insurance 0oH

OBJECT"-E OF T,E STUDY;

0onsidering the significance of the topic the researcher set the

following objecti%e for the study

8 To know the awareness of the people about Mutual -und

? To gi%e information about Mutual -und to people

: To study the in%estors e@pectation from Mutual -und

= To know the peoples risk bearing capacity

To know the peoples habits for the in%estment

5 To suggest& if any uality ser%ice to customers related to Mutual -und

SCOPE OF T,E STUDY;

8 The graphical scope of the study is restricted to the some

Parts of sangli district

? The objecti%e scope is restricted to the study on customerKs awareness

about mutual fund with reference to the I0I0I Prudential >ife Insurance

0o& Sangli branch


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RESEARCH METHODOLOGY

The methodology of data collection adopted for the present study

has been di%ided in to two di%isions

5( Meth!$% !f Data C!llecti!;

The following sources of data collection are used to

collect the data and draw the inference on the basis of collected data

A1 Primary (ata

Primary data is a data which is as fresh as the morning

Tea and original one It is collected personally by the researcher by

using %arious primary data collection techniues

+ere in this study the researcher has prepared the

structured uestionnaire and administered it for collecting the data

Apart from this study the researcher used obser%ation method&

personal discussion with manager& officer etc for collecting the

rele%ant information

B1 Secondary (ata

Secondary data is one which is secondary in nature andwhich e@ists already This data is published in books& magaFines&

newspapers& companies& brouchures etc

+ere in this study the secondary data are collected

from the following sources

A( Books

B( MagaFines

C( )ews Papers !1conomic Times& -inancial 1@press etc"

D( Internet Ser%ice


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7( Sa&ple SiGe Selecti!;

In order to carry the research work systematically the

researcher selected 866 respondents by using simple random

techniue of sample siFe selectionThe sample distribution of 866 respondents is gi%en in

the following table

Sr )o (istrict Sample Selected

8 Sangli 866

?( St#$' Area;

The study area for the present research work co%ers

some parts of the two district ie Sangli district Accordingly the sample

is drawn randomly from both the districts

L"M"TAT"ONS OF T,E STUDY;

The researcher faced the following limitation during the in

plant training period

8 0onfidential Information

Some information was not disclosed by the company on account of secrecy

? Time -actor

The time allotted for the project study was limited: Sample SiFe Selected

To complete the project in time the sample siFe is also restricted to 866

respondents


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0+APT12:

ORGANIZATION

PROFILE


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I0I0I Prudential >ife Insurance 0ompany is a joint %enture

between I0I0I Bank& a premier financial powerhouse& and prudential plc& a

leading international financial ser%ices group headuartered in the $nited

4ingdom I0I0I Prudential was amongst the first pri%ate sector insurance

companies to begin operations in (ecember ?666 after recei%ing appro%al from

Insurance 2egulatory (e%elopment Authority !I2(A"I0I0I Prudentials capital stands at 2s ?:;? billion with

I0I0I Bank and Prudential plc holding ;=7 and ?57 stake respecti%ely -or the

first uarter ended 'une :6& ?66;& the company garnered 2s 9


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D"STR"BUT"ON

I0I0I Prudential has one of the largest distribution networks

amongst pri%ate life insurers in India It has a strong presence across India with

o%er 5ord 4rishna Bank&

Idukki (istrict 0o,operati%e Bank& 'algaon Peoples 0o,operati%e Bank& Shamrao

#ithal 0o,op Bank& 1rnakulam Bank& 9 Bank of India sponsored 2egional 2ural

Banks !22Bs"& Sangli $rban 0o,operati%e Bank& Baramati 0o,operati%e Bank&

Ballia 4shetriya *ramin Bank& The +aryana State 0o,operati%e Bank and Imphal

$rban 0ooperati%e Bank >imited


35/73

MANA2EMENT PROF"LE

BOARD OF D"RECTOR

The I0I0I Prudential >ife Insurance 0ompany >imited Board

comprises reputed people from the finance industry both from India and abroad

4# 4amath&

0hairman

+T Phong

Punit )anda

1@ecuti%e #ice President

.

0hief In%estments Officer

Anita Pai 1#PAFim Mithani0hief Actuary

Bharga% (asgupta1@ecuti%e (irector

) S 4annan1@ecuti%e (irector

4alpana MorpariaBarry Stowe

Shikha Sharma

Managing (irector . 01O


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CHAPTER4

DATA ANALYSIS

&INTERPRETATION


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DATA PRESENTAT"ON) ANALYS"S H "NTERPRETAT"ON

-or data presentation . Analysis researcher de%eloped

a structured uestionnaire for research sur%ey

To collect the information from the uni%erse !Population"

sample respondents were selected randomly from the study area +ence in this

study 866 respondents !in%estors" were selected for the study purpose >ater on the

uestionnaire was administered to all 866 in%estors for collection of reuired

information and for taking correcti%e action

The collected information through filled uestionnaire&

the tabulation is made as under


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Ta+le N!( 5

Table showing the respondents employment details

Sr )o 1mployment (etails )o of 2espondents Percentage !7"8 Business ?6 ?67

? Ser%ice ; ;7

: Professional 6= 6=7

= 2etired 6; 6;7

Other 8? 8?7

Total 866 8667

2raphical Repre%etati! ;3

Data "terpretati!;3

-rom the abo%e table it is clear that& ;7

respondents are doing ser%ice& ?67 Business& other 8?7& retired ;7 and

professional =7

Ta+le N!( 7

Table showing the respondents +ousing status

0

10

20

30

40

50

60

Business Service Professional Retired Other

1 2 3 4 5


39/73

Sr )o +ousing Status )o of 2espondents Percentage !7"

8 Own 9; 9;7

? 2ented 6: 6:7

Total 866 8667


Data "terpretati!;3

-rom the abo%e table it is obser%ed that& 9;7

people ha%e their own house and :7 respondents li%e in the rented house Because

of large number of respondents are dependent on ser%ice and if they ha%e house on

rented basis& ma@imum amount of salary goes for paying rent So they can not go

for in%estment

Ta+le N!( ?

Table showing the respondents 0urrent In%estment

Sr )o 0urrent In%estment )o of 2espondents Percentage !7"

Rented, 3%

Own,

The Respondents Housing S

8i#&alace) ??I hae +#il$ h!#%e H >I hae +#' f!#r3/heeler %h!rt ter&


40/73

8 Bank ;? ;?7

? 2eal 1state ?8 ?87

: >I0 6 7

= Mutual -und 68 87

Any Other 68 87Total 866 8667

2raphical Repre%etati!;3

Data "terpretati!;3 -rom the abo%e table it is found that& ;?7

people prefer bank for the in%estment& ?87 people prefer real estate in%estment

and 7 in >I0& and only 87 prefer mutual fund ie %ery few people in%est in

mutual fund Because majority of the in%estors are not aware about Mutual -und

Ta+le N!( 4

Table showing 0hild -uture Planning of the respondents

Sr )o 0hild -uture Plan )o of 2espondents Percentage !7"

8 1ducation :: ::7

? Medical 68 87


41/73

: Marriage ?8 ?87

= )o 0hild = =7

Total 866 8667


"terpretati!;3

-rom the abo%e table it is obser%ed that& ::7

peoples made planning for their children education& =7 people ha%e no children

yet and ?87 peoples for children marriage

)o 0hild& =7 1ducation& ::7

Marriage& ?87 Medical& 87

Child Future Planning of the Respondents


42/73

Ta+le N!(

A1 Table showing Short term financial goal of the respondents

Sr )o *oal )o of 2espondents Percentage !7"

8 Build +ouse :: ::7

? Buy four wheelers 69 97

: *ood Bank Balance <


43/73

B1 Table showing Medium term financial goal of the respondents


8 Build +ouse 6 67

? Buy four wheelers 8 87

: *ood Bank Balance ;9 ;97= Any Other 68 687

Total 866 8667


"terpretati!;3

-rom the abo%e table it indicate that& ;97

respondents ha%e good bank balance& 87 ha%e buy four,wheelers& 7 ha%e build

house ; 87 ha%e other medium term financial goal -or medium term financial

goal ie between ,86 years in%estors first think about the sa%ing their money

So most of the in%estors want good bank balance

C1 Table showing >ong term financial goal of the respondents


Build +ouse& 7 Any Other& 87 Buy four

/heeler& 87

*ood Bank

Balance& ;97

Medium Term Financial goal of the Respondents


44/73

8 Build +ouse 65 657

? Buy four wheelers ?: ?:7

: *ood Bank Balance 59 597

= Any Other 6? 6?7

Total 866 8667


"terpretati!;3

-rom the abo%e table it is found that& 597

respondent has good Bank Balance& ?:7 ha%e buy four,wheeler& 57 ha%e build

house . ?7 ha%e other long term financial goal -or long term financial goal ie

abo%e 86 years in%estors first think about the sa%ing their money So most of the

in%estors want good bank balance

Ta+le N!( 6

Table showing how many respondents are aware about financial ser%ice

ad%isers

Sr )o Opinion )o of 2espondents Percentage !7"

Any Other& ?7 Build +ouse& 57

*ood Bank Buy four

Balance& 597 wheeler& ?:7

Long Term Financial Goals of the Respondents


45/73

8 Ees ?9 ?97

? )o ;8 ;87

Total 866 8667


"terpretati! ;3

-rom the abo%e table it is cleared that& ;87

respondents are not aware of the financial ser%ice pro%ider . only ?97

respondents are aware of financial ser%ice pro%ider Because majority of the

respondents are from rural area So less number of respondents are aware about

the any financial ser%ice

Ta+le N!( 9 Table showing the awareness about I0I0I Prudential >ife Insurance

0ompany

Sr )o 2esponse )o of 2espondents Percentage !7"

8 Ees 88 887

? )o


46/73

Total 866 8667


"terpretati!;3

-rom the abo%e table it is analysed that& ife Insurance . only 887

respondents are aware of I0I0I Prudential >ife Insurance 0ompany Because

majority of the respondents are from rural area So less number of respondents are

aware about the any financial ser%ice Only less number of educated people are

aware about the I0I0I Prudential >ife Insurance 0ompany and out of them few

respondents are try to in%est

Ta+le N!( :

Table showing the awareness of stock market


8 Ees ? ?7

? )o ; ;7

Total 866 8667


The Awareness about !C!C! Prudential Life !nsuranceEes& 887

)o&


47/73

"terpretati!;3

-rom the abo%e table it is re%ealed that& ;7

respondents are not aware of the stock market . ?7 respondents are aware of

stock market Because majority of the respondents are from rural area So less

number of respondents is aware about the any financial ser%ice Only less number

of educated people is aware about the stock market

Ta+le N!( >

Table showing the respondents awareness of mutual fund


8 Ees 8< 8


48/73

"terpretati!;3 -rom the abo%e table it is clear that


49/73

"terpretati!;3

-rom the abo%e table it is obser%ed that&


50/73

Ta+le N!( 55

Table showing the number of respondents made pro%ision for the retirement


8 Ees 8? 8?7

? )o


51/73

Table showing the respondents awareness about schemes of mutual fund

!Open ended . 0losed ended"

Sr )o 2esponse )o of 2espondents Percentage !7"8 Ees 8: 8:7

? )o


52/73

Table showing the respondents awareness about schemes of mutual fund

in%estment pattern

Sr )o 2esponse )o of 2espondents Percentage !7"8 Ees 8= 8=7

? )o


53/73

Sr )o Type of Mutual -und )o of 2espondents Percentage !7"

8 Income -und =? =?7

? *rowth -und 86 867

: Balanced -und 8= 8=7

= *ilt -und ?; ?;7 SpecialiFed -und 68 87

5 Money Market -und 66 66

; Ta@ation fund 68 687

< )one 6 67

Total 866 8667


Ta@ation -und&

87 )one& 7SpecialiFed -und&

87

Income

-und&=?7

*ilt -und&

?;7

Balanced -und& 8=7 *rowth -und&867

T#pe of Mutual Fund Respondents would

li"e to inest


54/73

"terpretati!;3

-rom the abo%e table it is clear that =?7 respondents

are ready to in%est in Income -und& 867 respondents in *rowth -und& ?;7

respondents in *uilt -und and 7 respondents are not ready to in%est in mutualfund Majority of the in%estors are go for the Income fund because they ha%e less

knowledge about the other types of the mutual fund


55/73


56/73

Table showing the respondents awareness of Systematic In%estment Plan

!SIP"

Sr )o 2esponse )o of 2espondents Percentage !7"8 Ees 85 857

? )o


57/73


8 Ees 8= 8=7

? )o inked Insurance Plan !$>IP"

Ees& 8=7

)o&


58/73


8 Ees 89 897

? )o


59/73


"terpretati!;3

-rom the abo%e table it is clear that&


60/73

Total 866 8667


"terpretati!;3

-rom the abo%e table it is clear that&


61/73


62/73

"terpretati!;3

-rom the abo%e table it is obser%e that& 57

respondents are ready to in%est in mutual fund& ife Insurance 0ompany gi%es the good customer satisfaction

They gi%e good ser%ice to the customers They ha%e number of in%estment plans

to in%est

C,APETR

FINDINGS, SUGGESTION


63/73

&

CONCLUSION

-I)(I)*S . S$**1STIO)

(5 F"ND"N2S OF T,E STUDY;

8( It is found that large number of respondents is dependent on ser%ice

? It is obser%ed that large number of respondents ha%e their own house

: Majority of the in%estors ha%e an attitude to in%est their surplus in to the

bank

= Majority of the in%estors ha%e made planning for child education .

bank


64/73

Majority of the in%estors ha%e financial goals like good Bank balance&

Build house& purchase four,wheelers . purchase land

5 It is obser%ed that majority of the in%estors are not aware of the financial

ser%ice ad%iser; It is found that only few respondents ha%e information about I0I0I

Prudential >ife Insurance

arge number of the in%estors are not aware of the stock market

9 It is obser%ed that majority of the in%estors are not aware of mutual fund 86 IT

is clear that %ery few respondents are aware of mutual fund through

friends . relati%es

88 Majority of the respondents ha%e not made pro%ision for the retirement 8? It

is found that more number of in%estors are not aware of the schemes of

mutual fund

8: It is seen that majority of the respondent are not aware of the mutual

fund in%estment pattern

8= Majority of the respondents would like to in%est in Income -und and

some respondents in *ilt -und

8 It is found that majority of the in%estors do not know about who is not

regulating the mutual fund They do not know either their in%estment is

safe or not

85 Majority of the in%estors are not aware of the Systematic In%est Plan

8; It is clear majority of the in%estors are not aware of the entry load . e@it

load of the mutual fund

8SS"

. $nit >inked Insurance Plan !$>IP"

89 Majority of the in%estors are not known & how much is the risk in mutual

fund and how much it is safe

?6 It is found that majority of the respondents are ready to in%est in mutual

fund


65/73

?8 Majority of the respondents are ready to in%est through I0I0I Prudential

>ife Insurance Because of I0I0IKs reputation in to he market

?? It is found that majority of the respondents are ready to in%est in the

mutual fund and only few respondents are ready to in%est in stockbroking

SU22EST"ON OF T,E STUDY;

5( I0I0I Prudential >ife Insurance should concentrate on the rural customers

>arge numbers of rural customers are not aware of the financial ser%ice

pro%ider So to tap the rural customers I0I0I should make special efforts

7( To tap the rural market the company should undertake aggressi%ely

ad%ertisement campaign& ad%ertisement should be gi%en through %arious

media like )ewspaper& 2adio& T# etc& hoardings etc To gi%e messages

regarding the %arious mutual fund schemes to present as well as future

prospects


66/73


67/73


68/73

UEST"ONNA"RE

The topic of the study GA Study of 0ustomer Awareness about Mutual

-und with special reference to the I0I0I Prudential >ife InsuranceQ Sangli Branch

)ame,

Address,

Mobile )o , Tel )o,

Age, *ender,

Marital Status, Married $nmarried

)umber 0hildren,

Parent,

Mother -ather Both

8 1mployment (etails


69/73

Business Ser%ice Professional

2etired Other

? +ousing Status

2ented Own: 0urrent In%estment,

Bank 2eal 1state >I0

Mutual -und Any Other

= 0hild -uture Planning

1ducation Medical Marriage

Any Other

-inancial *oal

a" Short term !6, years"

i" Build house ii" Buy four wheeler

iii" *ood Bank balance i%"Any Other

b" Medium term !,86 years"


iii" *ood Bank balance i%" Any Other

c" >ong term !abo%e 86 years"


iii" *ood Bank balance i%" Any Other

5 (o you 4now about financial ser%ice ad%iserR

Ees )o

; (o you aware about I0I0I Prudential >ife Insurance companyR

Ees )o


70/73

c" Through hoardings& posters . banners

d" Any other& please specify

86 +a%e you made pro%ision for the retirement R

Ees )o88 (o you know about schemes of Mutual -und R

! 0lose ended . Open ended"

Ees )o

8? In which type of Mutual -und would you like to in%est R

a" Income -und e" Specified -und

b" *rowth -und f" Money Market -und

c" Balanced -und g" Ta@ation -und

d" *ilt -und

8: (o you know the reuirement for purchase of the Mutual -und R

Ees )o

8= (o you know about who is regulating Mutual -und R

Ees )o

8 (o you know about Systematic In%estment Plan !SIP" R Ees )o

85 (o you know about 1ntry >oad . 1@it >oad R

Ees )o

8;(o you know about 1uity >inked Sa%ing scheme !1>SS" . $nit >inked

Insurance Plan !$>IP"R

Ees )o

8ife Insurance coR


71/73


72/73

BIBLIOGRAPHY

21-21)01S

Product +andbook for 1ffecti%e Sales

Product Pamphlets

21-21)01 BOO4S

-inancial Markets . Ser%ices

, *ordon . )atarajan

Published By 3 +imalaya Publishing +ouse

Third re%ised edition ?665

2eprint ?66;

Page )o ?9=,:?:


73/73

Marketing of -inancial Ser%ices . Markets

,# A A%adhani

Published By 3 +imalaya Publishing +ouse

-irst edition 3 8999

Page )o ?6: , ?6;

/1B SIT1S

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