mutual fund project 2

8/2/2019 Mutual Fund Project 2

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CUSTOMER PREFERENCES IN MUTUAL FUNDS IN REFERENCE TO

UNICON

Project report submitted to

SRM UNIVERSITY

In partial fulfillment of the

Requirement for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

Report submitted by

ASHUTOSH KUMAR SINGH

Register No.3510910110

Under the guidance of

Professor- T.RAMACHANDRAN

DEPARTMENT OF BUSINESS ADMINISTRATION

SRM UNIVERSITY

KATTANGULATHUR,

KANCHEEPURAM DISTRICT,

CHENNAI

BATCH : 2009-2011

SRM UNIVERSITY,CHENNAI-603203 Page 1


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BONAFIDE CERTIFICATE

It is certified that this project report titled

CUSTOMER PREFERENCES IN MUTUAL FUNDS IN REFERENCE TO

UNICON

is an original work done by

ASHUTOSH KUMAR SINGH 3510910110

of 4th semester SRM School Of Management , SRM UNIVERSITY,

Kattankulathur during the academic year 2009 , who carried out the researchunder my supervision . Certified further , that to the best of my knowledge the

work reported here in does not form part of any other project report or dissertation

on the basis of which a degree or award was conferred on an earlier occasion on

this or any other certificate.

T.RAMACHANDRAN Dr.(Mrs.)JAYSHREE SURESH

Project Guide Head of the Department

Submitted or viva voice to be held on



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Internal Examiner External Examiner

ACKNOWLEDGEMENT

It is difficult to acknowledge a precious debt as that of learning ass it is the only debt that is

difficult to repay except through gratitude.

First and foremost I wish to express my profound gratitude to the almighty, the merciful &

compassionate with whose grace and gracing I have been able to complete this work.

It is my profound privilege to express my sincere thanks to the dean Dr Jaysree Suresh(School of

management) ,for giving me an opportunity to work on the project and giving me full support in

completing this project.

I am thankful to my guide Mr. T.Ramachandran (Professor in SRM UNIVERSITY,

Kattankulathur) for his full support and guidance in completing this project work.

I am obliged to thanks the entire management of UNICON INVESTMENT SOLUTION, for

granting me permission and assisting me throughout the project.

Last but not the least, I would like to thanks my loving parents and my friend for their full

cooperation and continuous support during the course of this assignment.

ASHUTOSH KUMAR SINGH

SRM SCHOOL OF MANAGEMENT



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DECLARATION

I ASHUTOSH KUMAR SINGH (Reg. No. 3510910110) hereby declare that the project entitled

COSTUMER PREFERENCE IN MUTUAL FUND WITH REFERENCE TO UNICON under

the supervision and guidance of Mr. T.Ramachandran (Professor in SRM University,

Kattankulathur) department of management studies SRM, Kattankulathur is the result of the

original work done by me and to the best of my knowledge, a similar work has not been submitted

to any university or any other institution.

Place: Chennai Name: ASHUTOSH KUMAR SINGH

Date: Register No: 3510910110



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CHAPTER 1



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CHAPTER 1

1.1 Introduction:

A Mutual fund basically pools the money of investors, who share some common financial

objective. This money is invested in capital market instruments like shares, debentures and other

securities and also in other investible avenues such as real estate, commodities etc. income thus

earned and the capital appreciation realized, are shared by its unit holders ( investors ) in

proportion to the number of units owned by them.

Shortcomings in mutual funds:

1. Investor doesnt have the freedom of getting a desired allocation to specific stocks and

sectors as it is decided by the fund manager.

2. Mutual funds investors have to shell out loads and bear the fund management feecharged by the mutual fund house and the AMC.

Benefits of mutual funds:

1. Diversification of investments

2. Higher risk-adjusted returns3. Professional management

4. Low entry barrier

5. Liquidity

6. Time management7. Less complexity

8. Convenient to the investors profile

9. Investors are freed from doing all research and stock selection activities. I.e.Previous knowledge of stocks is not required.10. Transparency11. Tax-saving



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1.2 INDUSTRY PROFILE

The Evolution

The formation of Unit Trust of India marked the evolution of the Indian mutual fund industry in

the year 1963. The primary objective at that time was to attract the small investors and it was made

possible through the collective efforts of the Government of India and the Reserve Bank of India.

So, the origin of mutual fund industry in India is with the introduction of the concept of mutual

fund by UTI in the year 1963. Though the initial growth was slow, it accelerated from the year

1987 when non-UTI players entered the industry.

The history of mutual fund industry in India can be better understood divided into following

phases:

Phase1. Establishment and Growth of Unit Trust of India: 1964-1987

Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by an act

of Parliament. UTI was set up by the Reserve Bank of India and it continued to operate under the

regulatory control of the RBI until the two were de-linked in 1978 and the entire control was

transferred in the hands of Industrial Development Bank of India (IDBI). UTI launched its first

scheme in 1964, named as Unit Scheme 1964 (US-64), which attracted the largest number of

investors in any single investment scheme over the years.

UTI launched more innovative schemes in 1970s and 80s to suit the needs of different investors. It

launched ULIP in 1971, six more schemes between1981-84, Children's Gift Growth Fund and

India Fund (India's first offshore fund) in 1986, Master share (Indias first equity diversified

scheme) in 1987 and Monthly Income Schemes (Offering assured returns) during 1990s. By the

end of 1987, UTI's assets under management grew ten times to Rs.6700Crores.

Phase II. Entry of Public Sector Funds: 1987-1993

The Indian mutual fund industry witnessed a number of public sector players entering the market

in the year 1987. In November 1987, SBI Mutual Fund from the State Bank of India became the

first non-UTI mutual fund in India. SBI Mutual Fund was later followed by Can Bank Mutual

Fund, LIC Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund, GIC Mutual Fund



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and PNB Mutual Fund. By 1993, the assets under management of the industry increased seven

times to Rs.47004 crores. However, UTI remained to be the leader with about 80% market share.

Phase III. Emergence of Private Sector Funds: 1993-1996

The permission given to private sector funds including foreign fund management companies (most

of them entering through joint ventures with Indian promoters) to enter the mutual fund industry in

1993, provided a wide range of choice to investors and more competition in the industry. Private

funds introduced innovative products, investment techniques and investor-servicing technology.

By 1994-95, about 11 private sector funds had launched their schemes.

Phase IV. Growth and SEBI Regulation: 1996-2004

The mutual fund industry witnessed robust growth and stricter regulation from the SEBI after the

year 1996. The mobilization of funds and the number of players operating in the industry reached

new heights as investors started showing more interest in mutual funds.

Investors' interests were safeguarded by SEBI and the Government offered tax benefits to the

investors in order to encourage them. SEBI (Mutual Funds) Regulations, 1996 was introduced by

SEBI that set uniform standards for all mutual funds in India. The Union Budget in 1999 exempted

all dividend incomes in the hands of investors from income tax. Various Investor Awareness

Programmes were launched during this phase, both by SEBI and AMFI, with an objective toeducate investors and make them informed about the mutual fund industry.

In February 2003, the UTI Act was repealed and UTI was stripped of its Special legal status as a

trust formed by an Act of Parliament. The primary objective behind this was to bring all mutual

fund players on the same level.

Phase V. Growth and Consolidation: 2004 Onwards

The industry has also witnessed several mergers and acquisitions recently, examples of which areacquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund and

PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more international mutual fund

players have entered India like Fidelity, Franklin Templeton Mutual Fund etc. There were 29 funds

as at the end of March 2006. This is a continuing phase of growth of the industry through

consolidation and entry of new international and private sector players.



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There are a lot of investment avenues available today in the financial market for an investor. He

can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low risk but low

return. He may invest in Stock of companies where the risk is high and the returns are also

proportionately high. The recent trends in the Stock Market have shown that an average retail

investor always lost with periodic bearish tends. People began opting for portfolio managers with

expertise in stock markets who would invest on their behalf. Thus we had wealth management

services provided by many institutions. However they proved too costly for a small investor.

Mutual fund industry has seen a lot of changes in past few years with multinational

companies coming into the country, bringing in their professional expertise in managing funds

worldwide. In the past few months there has been a consolidation phase going on in the mutual

fund industry in India.

1.3 Company Profile

UNICON SECURITIES PRIVATE LIMITED

UNICON is a financial services company which has emerged as a one-stop

investment solutions provider. It was founded in 2004 by two visionary and

flamboyant entrepreneurs, Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who

possess expertise in the field of Finance. The company is headquartered in New

Delhi, and has its corporate office in Mumbai with regional offices in Kolkata,

Chennai, Hyderabad and Noida.

UNICON is a professionally managed company led by a team with outstanding

managerial acumen and cumulative experience of more than 400 man years in the

financial markets The Company is supported by more than 4500 Uniconians and

has a team of over 900 business offices in 235 cities across India.

With a customer base of over 200,000 the Unicon Group has an eye for the intricate

financial needs of its clients and caters to both their short term and long term



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financial needs through a comprehensive bouquet of investment services. It has

been founded with the aim of providing world class investing experience to the

investing community. These services range from offline & online trading in equity,

commodities and currency derivatives to debt markets to corporate finance and

portfolio management services. The company has a sizable presence in the

distribution of 3rd party financial products like mutual funds, insurance products and

property broking. It also provides expert Advisory on Life Insurance, General

Insurance, Mutual Funds and IPOs. The distribution network is backed by in-house

back office support to provide prompt and efficient customer service

The Equity broking arm UNICON Securities Pvt. Ltd offers personalized premium

services on the NSE, BSE & Derivatives market. The Commodity broking arm

Unicon Commodities Pvt. Ltd offers services in Commodity trading on NCDEX and

MCX. The UNICON group also has a PCG division providing investments solutions

for High Net Worth Individuals. The Corporate Advisory Services arm Unicon

Capital Services (P) Ltd offers entire gamut of Investment Banking services to

corporates.

UNICON can boast of some of the most respected names in the private equity

space like Sequoia Capitals, Nexus India Capital and Subhkam Ventures as its

shareholders.

MISSION :

To create long term value by empowering individual investors through superior financial

services supported by culture based on highest level of teamwork, efficiency and

integrity.

VISION :

To provide the most useful and ethical Investment Solutions - guided by values driven

approach to growth, client service and employee development.



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GROUP COMPANIES


UNICON

FINANCIAL

INTERMEDIARIE

S Pvt. Ltd.

FIXED INCOME &

INVESTMENT

BANKING

UNICON

CAPTIAL

SERVICES Pvt.

Ltd.DISTRIBUTION

UNICON

INSURANCE

ADVISORS Pvt.

Ltd.

COMMODITIES

TRADING

UNICON

COMMODITIE

S Pvt. Ltd.REAL ESTATES

UNICON

REAL

ESTATES Pvt.

Ltd.

TRADING IN

EQUITIES &

DERIVATIVES

UNICON

SECURITIES

Pvt. Ltd.

FINANCE (SHARES

& IPO)

UNICON

FINCAP Pvt.

Ltd.


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MANAGEMENT TEAM

Mr. GAJENDRA NAGPAL Founder & CEO

Mr. RAM M GUPTA Co-Founder & President

Mr. Y.P. NARANG Head-Fixed Income Group

Mr. SANDEEP ARORA Chief Operating Officer

Mr. VIKAS MALLAN Chief Financial Officer

Mr. SUBHASH NAGPAL Director-Strategic Planning & Implementation

Mr. RAJEV B SHARMA Country Head-Wealth Management

Mr. VIJAY CHOPRA National Head-Business Alliances

Mr. MANMOHAN TIWARI Country Head-Equity Sales

Mr. ANURAG NAYAR Chief Technology Officer

Ms. ANJALI MUKHIJA Chief Compliance Officer

PRODUCT AND SERVICES

Unicon customers have the advantage of trading in all the market segments

together in the same window, as we understand the need of transactions to be executed

with high speed and reduced time. At the same time, they have the advantage of having



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all Advisory Services for Life Insurance, General Insurance, Mutual Funds and IPOs

also.

Unicon is a customer focused financial services organization providing a range of

investment solutions to our customers. We work with clients to meet their overallinvestment objectives and achieve their financial goals. Our clients have the opportunity

to get personalized services depending on their investment profiles. Our personalized

approach enables clients to achieve their Total Investment Objectives.

Our key product offerings are as follows:

Equity

Commodity

Depository

Distribution

NRI Services

Back Office

Fixed Income

Investment Banking

Currency Derivatives

Portfolio Management

1. EQUITY:

UniconEasy

Browser based trading terminal that can be accessed by a unique ID and password.This facility is available to all our online customers the moment they get registered with

us.

UniconSwift

http://uniconindia.in/ProdAndServ/InternetTrading.aspx?id=1http://uniconindia.in/ProdAndServ/Commodity.aspx?id=2http://uniconindia.in/ProdAndServ/Depository.aspx?id=3http://uniconindia.in/ProdAndServ/Distribution.aspx?id=11http://uniconindia.in/ProdAndServ/NriServices.aspx?id=8http://uniconindia.in/ProdAndServ/backOffice.aspx?id=9http://uniconindia.in/ProdAndServ/FixedIncomeVertical.aspx?id=10http://uniconindia.in/ProdAndServ/InvestmentBanking.aspx?id=12http://uniconindia.in/ProdAndServ/CurrencyDerivatives.aspx?id=13http://uniconindia.in/ProdAndServ/PortfolioManagement.aspx?id=14http://uniconindia.in/ProdAndServ/Commodity.aspx?id=2http://uniconindia.in/ProdAndServ/Depository.aspx?id=3http://uniconindia.in/ProdAndServ/Distribution.aspx?id=11http://uniconindia.in/ProdAndServ/NriServices.aspx?id=8http://uniconindia.in/ProdAndServ/backOffice.aspx?id=9http://uniconindia.in/ProdAndServ/FixedIncomeVertical.aspx?id=10http://uniconindia.in/ProdAndServ/InvestmentBanking.aspx?id=12http://uniconindia.in/ProdAndServ/CurrencyDerivatives.aspx?id=13http://uniconindia.in/ProdAndServ/PortfolioManagement.aspx?id=14http://uniconindia.in/ProdAndServ/InternetTrading.aspx?id=1


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Application based terminal for active traders. It provides better speed, greater analytical

features & priority access to Relationship Managers. Greater exposure for trading on

the margin available.

2. COMMODITY:

Unicon offers a unique feature of a single screen trading platform in MCX and

NCDEX.Unicon offers both Offline & Online trading platforms.

Live Market Watch for commodity market (NCDEX, MCX) in one screen.

Add any number of scrips in the Market Watch.

Tick by tick live updation of Intraday chart.

Greater exposure for trading on the margin available

Common window for market watch and order execution.

Key board driven short cuts for punching orders quickly.

Real time updation of exposure and portfolio.

Facility to customize any number of portfolios & watchlists.

Market depth, i.e. Best 5 bids and offers, updated live for all scripts.

Facility to cancel all pending orders with a single click.

Instant trade confirmations.

Stop-loss feature.

3. DEPOSITORY:

Unicon Depository Services offers dematerialization services as a participant in

Central Depository Services Limited (CDSL), through its Depository operations. The

company believes in efficient and cost-effective and integrated service support to its

brokerage business. Unicon Securities Private Limited, as a depository participant, will

offer depository accounts for individual investors as well as corporates which will enable

them to transact in the dematerialized segment, without any hassles.



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Depository offer a safe, convenient way to hold securities as compared to holding

securities in paper form. Our service provides an integrated single platform for all our

clients ensuring a risk free, efficient and prompt depository process.

4. DISTRIBUTION:

Unicon is fast emerging as a leader in the Insurance and Mutual Funds distribution

space. Unicon has over 100 branches and a huge number of Business Development

Executives who help to source and service the customers throughout the country.

Unicon is fast becoming the preferred Vendor Independent distribution houses

because of providing efficient service like free pick-up of collection of cheques/DDs,

Keeping track of the premiums etc to its customers.

Unicon offers the following distribution products:-

IPO's

Mutual Funds

Insurance

Properties

5. NRI SERVICES:

With India becoming the epicentre of growth the Global Indian feels the need to be

connected to the domestic growth story.

Unicon now offers a convenient and hassle-free way of Investing in the Indian

Securities Mar

Procedure for NRI operations in Indian Capital Markets:-

The NRI can deal with only one bank at any point of time.

He is allowed to invest only 5% of the paid up capital of a company. The aggregate



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paid up value of equity of any company purchased by all NRI's and OCBs cannot

exceed 10 percent of the paid up capital of the company and in the case of

convertible debentures, the aggregate paid up value of each series of debentures

purchased by all NRI's and OCBs cannot exceed 10 % of the paid up value of eachseries of convertible debentures.

He can enter only into delivery based trades, all deliveries must only be routed

through beneficiary accounts and not directly through the broker.

Shares bought by him cannot be sold unless the payout of the same is received

from exchange.

All purchase and sale transactions have to be reported to the RBI by the

designated bank.

Original brokers contract notes have to be submitted to the designated Bank

branch, within 24 hours of the transaction.

He will be required to make bill to bill payments/ settlements. No adjustments of

purchase against sale consideration should be done.

Shares cannot be bought against the shares sold in the same settlement.

All Purchase and Sales will be dealt separately for payments / receipts.

Sale proceeds of any transaction not reported/approved by the RBI is allowed to be

credited to the NRE/NRO savings/demat account. The transaction will have to be

reversed in the account and losses if any will be borne by the client.

All tax liabilities arising out of buying and selling of securities will be handled by the

designated bank.

6. BACK OFFICE:

Unicon through its online back-office aims to increase the transparency and provides

you the link to view the details of your account online anytime and anywhere.

Here you have the advantage of viewing the following reports online:



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Sauda Details

Financial Ledger

Net position for the day

Net position Detail (for the complete financial year)

E-Contract Note

7. FIXED INCOME:

The Fixed income vertical of UNICON Group deals in Sovereign Paper and Money

Market/Fixed Income Instruments Broadly, it undertakes following:

Dealing in all types of money market instruments viz. Commercial paper

(Origination & Placement), Certificate of Deposit and Treasury Bills both in

Primary and Secondary market.

Dealing in Government securities (including securities of Oil, Fertilizer & Food

Bonds) and other PSU/ Corporate bonds with counterparties like Banks,

Primary Dealers, Mutual Funds, Insurance Companies, Regional Rural Banks,

Cooperative Banks, Central & State PSUs, Housing Finance Companies,

NBFCs & Corporates. Retailing of Central, State Government Securities and Bonds to PF Trusts,

Universities

Advisory Services to PF Trusts.

Arrangers for Private placement of Bonds & placing it with Banks, Mutual

funds, Insurance Companies & Corporates.

Securitization of receivable portfolio of Housing Finance Companies, Banks &

NBFCs by way of Pass through certificates.8. INVESTMENT BANKING:

The Investment Banking arm of Unicon Capital Services (P) Ltd. caters to the funding

requirements of corporates. Our wide experience and market knowledge as a leading

securities firm ensures that clients requirements are met at optimum cost. By



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constantly improving our knowledge capital and remaining focused on client needs, we

aim to create significant value for our clients by helping them execute the right

capitalization strategy. We also intend to initiate merchant banking services (Capital

Markets Fundraising) in the short term (Merchant Banking License pending)

Offerings

Private Equity (PE) Syndication

We specialize in the syndication of the private equity for the Indian companies in high-

growth markets on their capitalization/re-capitalization strategies, which helps them to

achieve their growth targets. Our team of professionals ensures complete

confidentiality, strong focus on implementation and quick turnaround time. Access to

key decision makers at PE funds gives us an edge in optimal structuring and efficient

closure of transactions. We service our clients through various stages of the PE deal

namely collateral preparation, investor shortlisting, commercial term sheet, due

diligence and final closure.

Mergers & Acquisitions(M&A) Advisory

We provide both buy-side and sell-side advisory services as part of our M&A advisoryoffering. We advise clients during the entire transaction process right from target

identification to deal closure. We have an experienced and highly qualified team with

more than 40+ man-years of experience which specializes in identification and short

listing of potential targets, strategic planning of an acquisition and arranging capital for

the transaction, if needed.

Debt Syndication

Our offerings include:

Project Finance / Term Loans for Expansion - Arranging Long-term loans for

setting up new projects from Financial Institutions and Banks

External Commercial Borrowings (ECBs) - Arranging LIBOR-linked loans

Foreign Currency Convertible Bonds (FCCB)-Arranging FCCB Loans



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Working Capital Facilities - Arranging fund-based and non-fund based limits for

clients from Banks at competitive rates

Trade Finance - Arrangement of trade finance (Buyer's / Suppliers Credit)

Inter-Corporate Deposits Borrowing and Placement9. CURRENCY DERIVATIVES:

Currency Futures

Currently in India, US Dollar Indian Rupee (USD INR) currency futures are traded on

the NSE and MCX. Since its introduction in Aug 2008, USD INR futures have seen a

1500% burst in volume growth. Unicon offers clients the opportunity to trade this

product, either in online or offline mode as per their needs. The product provides

ample liquidity to function both as a speculative tool and as a hedging instrument for

exporters and importers. The attractive features of the product are as follows

Unlike currency forwards offered by banks, currency futures trading does not

have to be backed by an underlying merchant transaction exposure

Tight bid ask spreads; usually 0.25 paisa wide

Margin requirements less than 5% to take exposure on a lot size of $1000New asset class for diversification for all resident individuals

Commodity traders can hedge against unfavourable movements since gold,

crude etc. are quoted in dollars

For exporters and importers, no credit line required from their Banker as is the

case with forwards

Ideal tool for those with smaller exposures, as in the case of travel needs,

educational payments etc.

Unicon Advantage



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Online & Offline trading facility on all the bourses

Exclusive daily commentary and research reports by our Currency analyst team

Regular updates on Dollar INR movement with calls to buy and sell

Special consultancy to Exporters, Importers & Corporate for their Forex

transactions

Receive education on the product through seminars/con-calls organized by

Unicon

Your Cash Margin with Unicon Securities can be used for either segment

Equity, Commodity or Currency.

Other awaited products

Euro INR is expected to be introduced anytime now

SEBI has also recommended introduction of Pound Sterling (GBP) and

Japanese Yen (JPY) futures in the near future

Currency options are also expected to be added to the basket of products soon.

10. PORTFOLIO MANAGEMENT:

Portfolio Management Services

Gone are the days when an investor could directly participate in the capital markets,

for they have not only become far more complex in terms of compliances,

methodologies, effects and analysis but also need a constant tracking mechanism.

As is the case globally, the Indian investor has also realized the advantages of

seeking professional advice in order to not only manage but also augment his

portfolio.

We at Unicon in our constant endeavor to bring to our esteemed clients global

methodology have developed a proprietary model that has enabled us to outperform



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all major indices with a fair degree of consistency, over the longer term. We continue

to be positive of both our approach and the Indian capital markets in general and

especially so after UPAs landslide mandate to guide the country over the next 5

years. However, we believe that the out-performance is more stock-specific and the

major indices only provide a barometer for evaluation. This view is expected to only

be enhanced going forward, with larger players entering the markets with globally

fine-tuned analytical tools.

The Portfolio Management Schemes of the Company offer Discretionary Schemes

(Unicon Optimizer & Unicon Growth) for Individuals, Corporate Bodies, Partnership

firms, Proprietors, Non Resident Indians etc. The Company is registered with SEBI

enabling it to undertake Portfolio Management activities under a specific license.

The Schemes, duly approved by SEBI, are managed by a highly competent team

comprising of portfolio managers and equity strategists, backed by a team of

fundamental, technical and derivatives analysts. The principle objectives are to

identify investment opportunities through globally recognized analytical

methodologies, given pre-defined risk parameters construct portfolios to incorporate

client objectives periodically review of portfolios in order to consistently deliverreturns surpassing the benchmarked index and tailor-make portfolios to incorporate a

judicious mix of equity, quazi-equity, money market instruments and derivate

products.PMS is a very personalized service wherein each portfolio has to be specifically

constructed in order to reflect the objective and risk appetite of a particular client. Our

qualified managers are constantly evolving methodologies and financial models that

provide them with a composite mix of:

1. Medium term comprising of value investing and other fundament tools

2. Short term comprising primarily of technical analysis and tools.

3. Hedging strategies comprising of derivative products.

Along with this water tight investment evaluation strategy we have up in place an

equally foolproof client servicing and feedback methodology. All Investment advisors



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are hand picked and trained on a gamut of Wealth product, this ensures that he is in

a very good position to deliver a wholesome wealth experience to the client.

UNICON PMS provides following benefits:

Strong Research Team

Profile based investment solution

Professional Fund Management

Strict Risk Management

Timely performance reporting

Periodic reviews & rebalancing

Dedicated relationship manager



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CHAPTER 2



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2.2 OBJECTIVES

PRIMARY OBJECTIVES

The main objective of the study was to analyze the customers investment allocation inmutual funds.

The main motive of this study was to know the proportion of investment in mutual fund

from their total income.

SECONDARY OBJECTIVES

To know the various reasons for investing in mutual funds and reasons for investing moreor less in the same.

To identify the various factors considered important by the customers while investing in

mutual funds

To evaluate the customers opinion regarding other investment areas.

To understand the influencing factors for preferring investment in mutual funds.

To know the demographic characteristics of customers in the mutual funds.

2.3 SCOPE OF THE STUDY

This study is converged to Chennai City only.

Data collection is though personal informal interview schedule and email.

The study can be used to find which kind of people investing more in mutual funds.

The total population is segmented area wise into 3 zones. The areas within the zones

selected and data collected within the each zone were based on convenience due to the vastpopulation of customers.

Selected zones are T.Nagar, Adyar and Perungudi. Information collection from each of

these 3 zones to identify respondents investment allocation on mutual fund.

2.4 LIMITATIONS OF THE STUDY



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The research is restricted only to Chennai city due to time factor and cost factor.

The research for the future cannot be the same due to change in environment.

The respondents may behave or give opinions differently at different times because of their

psychological temperament. This will affect the survey.

Because of time constraints, the sample size is restricted to 200, which may not reflect the

opinion of entire customer group.



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CHAPTER 3



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CHAPTER 3

3.1 RESEARCH METHODOLOGY

RESEARCH PROBLEM

A research problem, in general, refers to some difficulty which a researcher experiences in the

context of either a theoretical or practical situation and wants to obtain a solution for the same.

This research was conducted to determine the customers investment allocation on mutual fund.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data in a manner

that aims to combine relevance purpose with economy in procedure. Descriptive research design

was primarily used in this study to identify the demographic and other characteristics of customers.

NATURE AND SOURCE OF DATA

Great care must be taken while collecting the data because it institutes the basic foundation on

which the structure of the statistical analysis and the decision to be taken are built. The results

obtained by proper analysis of the data are interpreted and the decisions are taken. This study is

based on primary and secondary data sources.

SURVEY METHOD

The accuracy of any research process depends on asking the right person, the right question in the

right manner at the right time. Therefore the methods of data collections are survey method and

observation. For this study survey method was chosen as it is faster and cheaper and factors like

respondents sources of information, awareness about the various features, performances etc. come

out explicitly through this method.

SAMPLE SIZE AND TECHNIQUE

According to the sampling technique the chosen respondents are considered to be representing the

entire population. In this study the sample size was taken to be 200. Area sampling was adopted for

customers and the sampling technique used for the survey was convenience sampling where the

sampling units are chosen in accordance with the researchers convenience.



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QUESTIONNAIRE CONSTRUCTION

A detailed questionnaire was constructed in a structured from based on the objective of the

research. Close-ended and dichotomous questions were used in the questionnaire. Close-endedquestions are given more weightage because it enables the respondents to answer more effectively

without giving much thought.

TECHNIQUES USED FOR ANALYSIS

The tools of analysis used for this study were:

CROSS TABULATION

This is most commonly used statistical method of analysis. In this method a dependent variable of

importance to the objective of the research was cross tabulated with one or more independentvariable which the researchers can help explain the variation observed in the independent variable.

CHI-SQUARE ANALYSIS

Chi-square is a statistical test commonly used to compare observed data with data we would expect

to obtain according to a specific hypothesis.

Chi-square is used most frequently to test the statistical significance of results reported in bivariate

tables and interpreting bivariate tables is integral to interpreting the results of a chi-square test.

Chi-Square Test Method

The Chi-square method is the application of testing the significant difference between observed

and expected values.

Chi-square test (2) = E

EO2)(

Degrees of freedom = (R-1) (C-1)

Whereas,

O = Observed frequency

E = Expected frequency



30/77

R = Number of rows

C = Number of columns

The observed differences in the cross tabulated data could be tested for statistical significance

using this method. This Calculated 2 value is then compared with the table value at a given levelof significance and a given number of degrees of freedom. If the calculated value was within the

table the null hypothesis that the differences observed were not statistically significant is accepted.

Null Hypothesis (H0):

The hypothesis, or assumption, about a population parameter we wish to test, usually an

assumption of the status quo.

Alternative Hypothesis (H1):

The conclusion we accept when the data fail to support the null hypothesis.

PERCENTAGE ANALYSIS METHOD

Percentage refers to a specific kind of a ratio used in making comparisons between two or more

series and to describe relationships. This method can also be used to compare the relative terms of

distribution of two or more series of data.

Number of respondents

% of respondents = X 100

Total respondents

3.2 DATA ANALYSIS AND INTERPRETATION



31/77

Inference

From the above statistical analysis 63% of the respondents are male. Majority 22.5% of them

invest in yearly basis, and 37% of the respondents are female; of them 13% invest in monthly

basis.


1. INVESTMENT NATURE AND GENDER

555577

75773722626 63

12 17 29

119

20

45 19 64

213

24

126 74 200

Monthly 37

Quarterly

Half Yearly

Yearly

Others

InvestmentNature

Total

Male Female

Gender

Total

Gender

FemaleMale

Count

50

40

30

20

10

0

Investment Nature

Monthly

Quarterly

Half Yearly

Yearly

Others


32/77


33/77

INFERENCE

From the above analysis it is inferred that majority of 55% of the respondents

Consider market conditions as a main factor for investing in mutual fund and 24%

Consider past performance.

Gender

FemaleMale

Count

140

120

100

80

60

40

20

0

Factors consider bef

Portfolio of Scheme

Mrkt Condition

Past Performance


3. FACTORS CONSIDER BEFORE INVESTING AND GENDER

38 20 58

65 45 110

239

32

126 74 200

Past Performance

Mkt Condition

Portfolio of Scheme

Factors considerbefore investing

Total

Male Female

Gender

Total


34/77

INFERENCE

The above table shows that 33.5% of the respondents quantum of investments in

Mutual fund and others investments is 25:75, 30.5% is 50:50.and 21% is 75:25.


4. QUANTUM OF INVESTMENT AND GENDER

3 3

46 21 67

33 28 61

30 12 425 2 7

911 20

126 74 200

0 : 10025 : 75

50 : 50

75 : 25

100 : 0

Others

Quantum ofInvestment

Total

Male Female

Gender

Total

Gender

FemaleMale

C

ount

140

120

100

80

60

40

20

0

Quantum of Investment

Others

100 : 0

75 : 25

50 : 50

25 : 75

0 : 100


35/77

INFERENCE

From the above table it is revealed that 14%of the male respondents are investing more in mutual

fund for the purpose of diversification, 13% for liquidity, 11.5% for less risk. and 8.5% of the

female respondents for professional management, 8% for diversification and less risk.

Gender

FemaleMale

Count

140

120

100

80

60

40

20

0

Reason for More Inve

Tax Savings

Diversification

Liquidity

Variety of Schemes

Less Risk

Professional Mgmt


5. REASON FOR MORE INVESTMENT IN MF AND GENDER

21 17 3823 16 39

15 13 28

267

33

28 16 44

135

18

126 74 200

Professional MgmtLess Risk

Variety of Schemes

Liquidity

Diversification

Tax Savings

Reason forMore

Investmentin MF

Total

Male Female

Gender

Total


36/77


37/77

INFERENCE

From the above analysis it is seen that respondents of below 25 years are making investment for

the purpose of buying properties, between 26-35 years for childrens education and buying

properties, between 36-45 for childrens education and above 45 years for retirement.

Age

Above 45 Yrs

36 - 45 Yrs

26 - 35 Yrs

0 - 25 Yrs

Co

unt

70

60

50

40

30

20

10

0

Purpose of Investmen

Others

Buying Properties

Buying Vehicle

Children's Education

Retirement


7. PURPOSE OF INVESTMENT AND AGE

4 7 3 24 381

21 15 16 53

135 7

25

22 218 9

608

103 3

24

48 64 36 52 200

Retirement


Buying Vehicle

Buying Properties

Others

Purpose of

Investment

Total

0 - 25 Yrs 26 - 35 Yrs 36 - 45 Yrs Above 45 Yrs

Age

Total


38/77

INFERENCE

From the above analysis it is inferred that respondents of below 25 years are investing in mutual

fund for the purpose of diversification, between 26-35 years for diversification between 36-45 for

high returns and above 45 years for diversification.

Age

Above 45 Yrs

36 - 45 Yrs

26 - 35 Yrs

0 - 25 Yrs

Count

70

60

50

40

30

20

10

0

Reason for Investing

Others

Tax Savings

Professional Mngt

Diversification

High Returns


8. REASON FOR INVESTING IN MF AND AGE

9 13 13 9 44

19 25 11 19 74

13 165

13 476 5 7 8

261 5 3 9

48 64 36 52 200

High Returns

Diversification

Professional Mgt

Tax Savings

Others

Reason forInvesting inMF

Total


Age

Total


39/77

INFERENCE

From the above statistical analysis it is understood that all age group of people are investing in

gold and real estate and between 36-45 years are investing more.

Age

Above 45 Yrs

36 - 45 Yrs

26 - 35 Yrs

0 - 25 Yrs

Count

70

60

50

40

30

20

10

0

Others Investments

none

both

Real Estate

Gold


9. OTHERS INVESTMENTS AND AGE

22 30 10 20 82311

9 730

2 3 5

23 23 15 22 83

48 64 36 52 200

GoldReal Estate

both

none

OthersInvestments

Total


Age

Total


40/77

INFERENCE

The above table shows that all age group of respondents are investing in post

Office schemes and majority of the respondents who are above 45 years invest

More.

Age

Above 45 Yrs

36 - 45 Yrs

26 - 35 Yrs

0 - 25 Yrs

Count

70

60

50

40

30

20

10

0

Post Office Investme

No

Yes


10. POST OFFICE INVESTMENT AND AGE

3 8 618 35

45 56 30 34 165

48 64 36 52 200

YesNo

Post OfficeInvestment

Total


Age

Total


41/77

INFERENCE

The above table reveals that all age group of people are depositing in bank

And majority of the respondents who are between 26 - 35 years invest more.

Age

Above 45 Yrs

36 - 45 Yrs

26 - 35 Yrs

0 - 25 Yrs

Count

70

60

50

40

30

20

10

0

Bank Deposits

No

Yes


11. BANK DEPOSITS AND AGE

18 218

19 6630 43 28 33 134

48 64 36 52 200

YesNo

Bank Deposits

Total


Age

Total


42/77


43/77

INFERENCE

The above table shows that all age group of respondents are investing in share market and

majority of the respondents who are above 45 years invest more.

Ag e

Above 45 Yrs

36 - 45 Yrs

26 - 35 Yrs

0 - 25 Yrs

Count

70

60

50

40

30

20

10

0

Invested in Share Ma

No

Yes


13. INVESTED IN SHARE MARKET AND AGE

912 12 18 51

39 52 24 34 149

48 64 36 52 200

YesNo

Invested in ShareMarket

Total


Age

Total


44/77


45/77

-

INFERENCE

It is known from the above analysis that majority of the respondents irrespective of education

level consider market conditions as important factor before investing in mutual fund.

Education

Non - Graduate

Professional

Post Graduate

Graduate

Coun

t

80

70

60

50

40

30

20

10

0

Factors consider bef

Portfolio of Scheme

Mrkt Condition

Past Performance


15. FACTORS CONSIDER BEFORE INVESTING AND EDUCATION

12 25 156

58

46 33 18 13 1109 9

131

32

67 67 46 20 200

Past Performance

Mrkt Condition

Portfolio of Scheme

Factors consider

before investing

Total

Graduate

Post

Graduate Professional

Non -

Graduate

Education

Total


46/77


47/77

INFERENCE

The above table reveals that 21.5% of the respondents are in the monthly income group which

ranges between Rs.10001-20000 and they invest on a monthly basis, 11.5% between Rs.20001-

30000 are investing on a yearly basis.

Monthly Income

Above 30000

20000 - 30000

10000 - 20000

0 - 10000

Count

140

120

100

80

60

40

20

0

Investment Nature

Others

Yearly

Half Yearly

Quaterly

Monthly


17. INVESTMENT NATURE AND MONTHLY INCOME

343 12

563

113

9 629

154 1

203

26 23 12 644

181 1

24

11 115 49 25 200

Monthly

Quaterly

Half Yearly

Yearly

Others

Investment

Nature

Total

0 - 10000

10000 -

20000

20000 -

30000 Above 30000

Monthly Income

Total


48/77

INFERENCE

From the above table it is inferred that all income group of respondents are investing in gold and

real estate, and out of these groups majority of the respondents are in the income group of

between Rs.10001-20000.

Monthly Income

Above 30000

20000 - 30000

10000 - 20000

0 - 10000

Coun

t

140

120

100

80

60

40

20

0

Others Investments

none

both

Real Estate

Gold


18. OTHERS INVESTMENTS AND MONTHLY INCOME

649 18

982

119

6 430

2 1 2 5

445 24 10 83

11 115 49 25 200

Gold

Real Estate

both

none

Others

Investments

Total

0 - 10000

10000 -

20000

20000 -

30000 Above 30000

Monthly Income

Total


49/77

INFERENCE

The above table revels that respondents of the entire income group are investing in post office

and most of the respondents are in the income group which falls between Rs.10001-20000 and

Rs.20001-30000.

Monthly Income

Above 30000

20000 - 30000

10000 - 20000

0 - 10000

Count

140

120

100

80

60

40

20

0

Post Office Investme

No

Yes


19. POST OFFICE INVESTMENT AND MONTHLY INCOME

711 11

635

4104 38 19 165

11 115 49 25 200

Yes

No

Post Office

Investment

Total

0 - 1000010000 -20000

20000 -30000 Above 30000

Monthly Income

Total


50/77

INFERENCE

The above table reveals that respondents of the entire income group are depositing in banks and

most of the respondents come under the income group which ranges between Rs.10001 -20000

and Rs.20001 -30000.

Monthly Income

Above 30000

20000 - 30000

10000 - 20000

0 - 10000

Count

140

120

100

80

60

40

20

0

Bank Deposits

No

Yes


20. BANK DEPOSITS AND MONTHLY INCOME

135 20 10 66

10 80 29 15 134

11 115 49 25 200

Yes

No

Bank Deposits

Total

0 - 10000

10000 -

20000

20000 -

30000 Above 30000

Monthly Income

Total


51/77

INFERENCE

From the above analysis it is seen that respondents of the entire income group are having insurance

policies, and out of the groups majority of the respondents income falls between Rs.10001-

20000.

Monthly Income

Above 30000

20000 - 30000

10000 - 20000

0 - 10000

Count

140

120

100

80

60

40

20

0

Having Insurance Pol

No

Yes


21. Having Insurance Policies and Monthly

Income

339 11

760

876 38 18 140

11 115 49 25 200

Yes

No

Having Insurance

Policies

Total

0 - 10000

10000 -

20000

20000 -

30000 Above 30000

Monthly Income

Total


52/77

INFERENCE

The above analysis reveals that respondents of the entire income group are investing in share

market and most of the respondents falls in the income group which ranges between Rs.10001

20000(17.5%),

Monthly Income

Above 30000

20000 - 30000

10000 - 20000

0 - 10000

Count

140

120

100

80

60

40

20

0

Invested in Share Ma

No

Yes


22. INVESTED IN SHARE MARKET AND MONTHLY INCOME

335

5 851

880 44 17 149

11 115 49 25 200

Yes

No

Invested in Share

Market

Total

0 - 10000

10000 -

20000

20000 -

30000 Above 30000

Monthly Income

Total


53/77

INFERENCE

The above analysis shows that most of the married respondents invest on a yearly basis, and

unmarried respondents invest on a monthly basis.

Marital Status

MarriedSingleC

ount

140

120

100

80

60

40

20

0

Investment Nature

Others

Yearly

Half Yearly

Quaterly

Monthly


23. MARITAL STATUS AND INVESTMENT NATURE

25

9 7 23

6 703

8

2

0

1

3

4

1

1

8

13

06 2 2 4 2 20

Single

Married

MaritalStatus

Total

Monthly

Quaterly

HalfYearly Yearly Others

Investment nature

Total


54/77

INFERENCE

The above analysis shows that most of the married respondents are investing in mutual fund for

the purpose of childrens education and unmarried respondents are investing for the purpose of

buying properties.

Marital Status

MarriedSingle

Coun

t

140

120

100

80

60

40

20

0

Purpose of Investmen

Others

Buying Properties

Buying Vehicle


Retirement


24. MARITAL STATUS AND PURPOSE OF INVESTMENT

6 117 33 13 70

32 528

27 11 130

38 53 25 60 24 200

Single

Married

MaritalStatus

Total

Retirement Children'sEducation BuyingVehicle BuyingProperties Others

Purpose of Investment

Total


55/77

INFERENCE

It is known from the above analysis that most of the married respondents quantum of

investment in mutual fund and other investment is 50:50 and unmarried quantum is 25:75.

Marital Status

MarriedSingleC

ount

140

120

100

80

60

40

20

0

Quantum of Investmen

Others

100 : 0

75 : 25

50 : 50

25 : 75

0 : 100


25. MARITAL STATUS AND QUANTUM OF INVESTMENT

27 14 173 9

703

40 47 254

11 1303

67 61 427

20 200

Single

Married

MaritalStatus

Total

0 : 100 25 : 75 50 : 50 75 : 25 100 : 0 Others

Quantum of Investment

Total


56/77


57/77

INFERENCE

From the above percentage analysis it is seen that majority 61% are working in

private organizations, 16% of the respondents are doing their own business,

13% are government employees, 7.5% are professionals and remaining 2% are

retired.

Table 1.3

INFERENCE

Above analysis shows that the majority 65% are married respondents and 35%

are unmarried.


MARITAL STATUS

70 35.0 35.0 35.0

130 65.0 65.0 100.0

200 100.0 100.0

Single

Married

Total

Frequency Percent Valid Percent

Cumulative

Percent


58/77


59/77

INFERENCE

Above analysis reveals that the 37% of the respondents are investing in mutual

funds for the purpose of diversification, 23.5% for professional management,

22% for high returns and 13% for tax saving purpose.

Table 1.6

INFERENCE

From the above percentage analysis it is know that 41% of the respondents are

investing in gold. 15% are investing in real estate, 2.5% are investing in both real

estate and gold.


OTHERS INVESTMENTS

82 41.0 41.0 41.0

30 15.0 15.0 56.05

2.5 2.5 58.5

83 41.5 41.5 100.0

200 100.0 100.0

Gold

Real Estate

both

none

Total

Frequency Percent Valid PercentCumulative

Percent


60/77


61/77

Table 1.9

INFERENCE:

Above analysis shows that the 30% of the respondents are having insurance

policies.

Table 1.10

INFERENCE:

Above analysis shows that the 25.5% of the respondents are investing in share

market.


HAVING INSURANCE POLICIES

60 30.0 30.0 30.0140 70.0 70.0 100.0

200 100.0 100.0

Yes

No

Total

Frequency Percent Valid PercentCumulative

Percent

INVESTED IN SHARE MARKET

51 25.5 25.5 25.5

149 74.5 74.5 100.0

200 100.0 100.0

Yes

No

Total

Frequency Percent Valid Percent

Cumulative

Percent


62/77


63/77


64/77

INFERENCE

Since the significant is less than 0.05 the null hypothesis is rejected. Therefore

there is significance relationship between age and purpose of investment.

Hypothesis

Null hypothesis:

Ho There is no significant relationship between gender and reason for investing

in mutual fund.

Alternative hypothesis:

H1 - There is significant relationship between gender and reason for investing

in mutual fund.

INFERENCE


there is significant relationship between gender and reason for investing in Mutual fund.


GENDER AND REASON FOR INVESTING IN MF CROSS TABULATION

27 48 22 227

126

17 26 254 2

74

44 74 47 269

200

Male

Female

Gender

Total

High Returns Diversification

Professional

Mngt Tax Savings Others

Reason for Investing in MF

Total

CHI-SQUARE TESTS

11.502a 4

.021

200

Pearson Chi-Square

N of Valid Cases

Value df

Asymp. Sig.

(2-sided)

1 cells (10.0%) have expected count less than 5. The

minimum expected count is 3.33.

a.


65/77


66/77

Hypothesis

Null hypothesis:

Ho There is no significant relationship between monthly income and post office

Investments.


H1 - There is significant relationship between monthly income and post office

Investments.

INFERENCE


there is significant relationship between monthly income and post office investment.


7 4 11

11 104 115

11 38 496

19 25

35 165 200

0 - 10000

10000 - 20000

20000 - 30000

Above 30000

MonthlyIncome

Total

Yes No

Post Office Investment

Total

CHI-SQUARE TESTS

22.796a 3 .000

200

Pearson Chi-Square

N of Valid Cases

Value df

Asymp. Sig.

(2-sided)



a.

MONTHLY INCOME AND POST OFFICE INVESTMENT CROSS TABULATION


67/77

Hypothesis

Null hypothesis:

Ho There is no significant relationship between monthly income and bank

Deposits.


H1 - There is significant relationship between monthly income and Bank deposits.

INFERENCE

Since the significant is greater than 0.05 the null hypothesis is accepted.

therefore there is no significant relationship between monthly income and

bank deposits.


MONTHLY INCOME AND BANK DEPOSITS CROSS TABULATION

1 10 1135 80 11520 29 4910 15 2566 134 200

0 - 1000010000 - 2000020000 - 30000

Above 30000

MonthlyIncome

Total

Yes NoBank Deposits

Total

CHI-SQUARE TESTS

5.094

a 3.165

200

Pearson Chi-Square

N of Valid Cases

Value df

Asymp. Sig.

(2-sided)



a.


68/77

Hypothesis

Null hypothesis:

Ho There is no significant relationship between monthly income and insurance.


H1 - There is significant relationship between monthly income and insurance.

INFERENCE

Since the significant is greater than 0.05 the null hypothesis is accepted.

therefore there is no significant relationship between monthly income and

insurance.


MONTHLY INCOME AND HAVING INSURANCE POLICIES CROSS TABULATION

3 811

39 76 115

11 38 497

18 25

60 140 200

0 - 10000

10000 - 20000

20000 - 30000

Above 30000

MonthlyIncome

Total

Yes No

Having InsurancePolicies

Total

CHI-SQUARE TESTS

2.256a 3

.521

200

Pearson Chi-Square

N of Valid Cases

Value df

Asymp. Sig.

(2-sided)



a.


69/77

Hypothesis

Null hypothesis:

Ho There is no significant relationship between monthly income and share

market investment.


H1 - There is significant relationship between monthly income and share

market investment

INFERENCE


there is significant relationship between monthly income and share

market investment.


MONTHLY INCOME AND INVESTED IN SHARE MARKET

3 811

35 80 1155

44 498

17 25

51 149 200

0 - 10000

10000 - 2000020000 - 30000

Above 30000

MonthlyIncome

Total

Yes No

Invested in ShareMarket

Total

CHI-SQUARE TESTS

8.083a 3

.044

200

Pearson Chi-Square

N of Valid Cases

Value df Asymp. Sig.(2-sided)

1 cells (12.5%) have expected count less than 5. Theminimum expected count is 2.81.

a.


70/77

Hypothesis

Null hypothesis:

Ho There is no significant relationship between type of schemes and reason for

investing in mutual fund.


H1 - There is significant relationship between type of schemes and reason for


INFERENCE


there is significant relationship between type of schemes and reason for



TYPE OF SCHEME AND REASON FOR INVESTING IN MF CROSS TABULATION

27 43 274 4

105

17 28 18 195

873 2 3 8

44 74 47 269

200

Open Ended

Close Ended

both

Type of

Scheme

Total

High Returns Diversification

Professional

Mngt Tax Savings Others

Reason for Investing in MF

Total

CHI-SQUARE TESTS

20.683a 8

.008

200

Pearson Chi-Square

N of Valid Cases

Value df

Asymp. Sig.

(2-sided)


minimum expected count is .36.

a.


71/77

CHAPTER 4

CHAPTER 4

4.1 FINDINGS

1. Majority 63% of the respondents are male, remaining 37% are female.

2. 32% of the respondents are in the age group of 26-35 years, 24% are below 25 years, 18%

are 36-45 years, 26% are above 45 years.



72/77

3. Majority 65% of the respondents are married, remaining 35% are unmarried.

4. 33.5% of the respondents are graduate and post graduate, 23% are professionals, 10% arenon-graduate.

5. Majority 61% are working in the private organization, 16% of the respondents are doing

their own business, 13.5% are government employees, 7.5% are professionals andremaining 2% are retired.

6. Majority 57.5% of the respondents are between the income group of Rs.10001-20000. The

next 24.5% are between Rs.20001-30000, 12.5% are above 30000, 5.5% are below 10000.

7. 30% of the respondents are investing for the purpose of buying properties, 26.5% forchildrens education, 19% for retirement and 12.5% for buying vehicle.

8. 42.5% of the respondents are investing for long term, 37% for medium term and 20.5% forshort term.

9. 37% of the respondents are investing in mutual funds for the purpose of diversification,23.5% for professional management, 22% for high returns and 13% for tax saving purpose.

10. Majority 72% of the respondents portfolio decision is equity oriented, 10.5% is debtoriented and 17% is balanced.

11. 41% of the respondents are investing in gold. 15% are investing in real estate, 2.5% are

investing in both real estate and gold.

12. 17.5% of the respondents are investing in post office saving.

13. 33% of the respondents are depositing in bank.

14. 30% of the respondents are having insurance policies.

15. 25.5% of the respondents are investing in share market

16. 55% of the respondents considered as important factor before investing is marketingconditions, 29% are past performance and 16% are portfolio of the scheme.

17. Majority 52.5% of the respondents preferring open ended schemes, 43.5% are close endedschemes.

18. 33.5% of the respondents proportion in mutual fund and other investments is 25:75, 30% ofthe respondents proportion is 50:50 and 21% is 75:25.

19. 22% of the respondents are investing more in mutual funds for the purpose ofdiversification, 19.5% for less risk, 19% for professional management, 16.5% for liquidity

and 14% for variety of schemes.

20. Majority 62% of the respondents are investing less in mutual funds for No speculativetrend, 25% for returns are marginal and 13% for tax benefits only on certain mutual fund.



73/77

21. 46.5% of the respondents option preferred in mutual fund is dividend payout, 36% are

growth and 17.5% are dividend reinvestment.

4.2 SUGGESTIONS AND RECOMMENDATIONS

The demographical factors influence the customers investment allocation on mutual fund so the

company should analyze these factors and should plan their policies and practices to attract morenumber of customers.

The company must take all necessary steps to create awareness among the people about the mutual

fund and its utility.

Many customers suggested that new schemes must be introduced wherein there is a guaranteed

return.

Hence 55% of respondents said that they chose the funds based on marketing conditions all

companies has to market its funds on effective media like TV,Hordings and some other innovative

methods

From the analysis we came to know only 37% of investors are female so we should improve the

awareness among females.

CHAPETR 5

5.1 CONCLUSION

UNICON INVESTMENT SOLUTION is professionally managed and lead by a team of dedicated

managers and staff members. The Company is moving in right direction, scaling new heights year

by year with the targets getting tougher and tougher with each passing day with new players

emerging in the market day by day.



74/77

During my project I was exposed to various investment zones. The project mainly focuses on

mutual fund as it is the latest trend among investment. The main aim of my project is to study on

customer investment allocation on mutual fund. The size of the sample used for this study is

200.Out of these 200 respondents 170 respondents are investing in mutual fund. Out of these 170

respondents 67 respondents proportion of investment in mutual fund and other investments is

25:75, 61 is 50:50 and 42 respondents is 75:25.Most of the respondents invest in mutual fund for

the purpose of liquidity and for diversification. Main factor for investing more in mutual fund is

tax saving and liquidity and there is less investment in mutual fund as there is no speculative trend,

risk is more as compared with bank deposits, moderate return and the main reason is less

awareness about mutual fund.

5.2 BIBLIOGRAPHY

BOOKS

C.R KOTHARI, Research Methodology, New age international publishers

DR.D.D.SHARMA, Marketing Research, Sultan Chand and Sons, New Delhi

V.K.BHALLA, Investment Management, Sultan Chand and Sons, New Delhi

Dr. S.N.MAHESHWARI, Financial Management, Sultan Chand and Sons

V.A.AVADHANI, Security Analysis and Portfolio Management, Himalaya Publishing Hose

PUNITHAVATHY PANDIAN, Security Analysis and Portfolio Management, Vikas PublicationPvt. Ltd.

WEBSITES

www.iepindia.com

www.amfiindia.com

www.google.com

www.valueresearch.com

www.nseindia.com

http://www.iepindia.com/http://www.amfiindia.com/http://www.google.com/http://www.valueresearchonline.com/http://www.nseindia.com/http://www.iepindia.com/http://www.amfiindia.com/http://www.google.com/http://www.valueresearchonline.com/http://www.nseindia.com/


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5.3 ANNEXURES

CUSTOMER PREFERENCES IN MUTUAL FUNDS1) Gender

[ ] Male [ ] Female

2) Age

[ ] Below 25 [ ] 26-35 [ ] 36- 45 [ ] 45 Above

3) Marital Status

[ ] Single [ ] Married

4) Education

[ ] Graduate [ ] P.G [ ] Professional [ ] Non- graduate

5) Occupation

[ ] Govt., [ ] Private [ ] Business [ ] Professional [ ] Retired

6) Monthly Income

[ ] Below 10000 [ ] 10001-200000 [ ] 20001-30000 [ ] 30000 Above

7) Investment nature

[ ] Monthly [ ] Quarterly [ ] Half Yearly [ ] Yearly [ ] others

8) Purpose for which you are investing

[ ] Retirement [ ] Childrens education [ ] Buying a vehicle

[ ] Buying properties [ ] others (Please specify)

9) Time span of investment

[ ] Short term [ ] Medium term [ ] Long term

10) Reason for preferring investment in mutual fund

[ ] High return [ ] Diversification [ ] Professional management



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[ ] Tax savings [ ] others (please specify)

11) Portfolio decision

[ ] Equity oriented [ ] Debt oriented [ ] Balanced scheme

12) Other investment

[ ] Gold [ ] Real estate [ ] Both

13) Do you invest in post office?

[ ] Yes [ ] No

14) Do you deposit in Banks?

[ ] Yes [ ] No

15) Do you have insurance policy?

[ ] Yes [ ] No

16) Do you invest in share market?

[ ] Yes [ ] No

17) Important factor considered before investing

[ ] Past performance [ ] Market conditions [ ] Portfolio of the schemes

18) Type of scheme preferred

[ ] Open ended scheme [ ] Close ended scheme [ ] Both

19) Quantum of investment in mutual fund vis--vis investment in others

[ ] 0:100 [ ] 25:75 [ ] 50:50

[ ] 75:25 [ ] 100:0 [ ] Others

20) Reason for investing more in Mutual fund

[ ] Professional management [ ] Less risk

[ ] Variety of schemes [ ] Liquidity

[ ] Diversification [ ] Tax savings

(OR)

21) Reason for investing less in Mutual fund

[ ] Returns are marginal [ ] No speculative trend



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[ ] Tax benefits only on certain Mutual fund

22) Options preferred in Mutual fund

[ ] Growth [ ] Dividend payout [ ] Dividend re investment

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mutual fund project 2

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