University of Mumbai A Project Report on PROS & CONS OF INVESTMENT IN MUTUAL FUNDS AS COMPARED TO BANK FIXED DEPOSITES. Submitted by NAME ROLL NO Prashantha Poojary F.Y.MMS MS141546 Sonali Salve F.Y.MMS MS141549 Chanchal Sharma F.Y.MMS MS141552 Deepak Shinde F.Y.MMS MS141554 Pooja Singh F.Y.MMS MS141559 Under the guidance of Prof. Shripad Bapat Batch 2014 2016 INSTITUTE OF MANAGEMENT & COMPUTER STUDIES C-4, WAGLE ESTATE, NEAR MULUND CHECK NAKA,THANE(w) 400604. CERTIFICATE Certified that the Project work entitled TO DO COMPARATIVE ANALYSIS IN MUTUAL FUND INVESTMENT AS AGAINST BANK FIXED DEPOSIT. Submitted by Group no.03 (finance) having Roll nos. 46, 49,52,54 & 59 for internal assessment of MMS 1st YEAR course for Semester IInd offered by IMCOST, Thane affiliated to Mumbai University during the academic year 2014 2016 is a original work carried out by the students under my supervision, and this work has not formed the basis for the award of any Degree, Diploma or such other titles. Date: Name of Guide: Prof. Mr. Shripad Bapat Institution Address: IMCOST, C-4, Near Mulund Check Naka, Opp. APLAB Co, Thane (W) 400604. DECLARATION We, the undersigned, hereby declare that the project report entitled TO DO COMPARATIVE ANALYSIS IN MUTUAL FUND INVESTMENT AS AGAINST BANK FIXED DEPOSIT. Submitted by us to the institute under the guidance of Prof. Shripad Bapat is our original work and the conclusions drawn therein are based on the material collected by ourselves. The Report submitted is our own work and has not been duplicated from any other source. We shall be responsible for any unpleasant moment/situation. Place: Mumbai Date: Signature of the Group Members Name: Prashantha Poojary Roll No. MS141546 Name: Sonali Salve Roll No.MS141549 Name: Chanchal Sharma Roll No.MS141552 Name: Deepak Shinde Roll No.MS141554 Name: Pooja Singh Roll No.MS141559 ACKNOWLEDGEMENT A successful Project is the result of team work and co-ordination that includes not only the group of developers who put forth the ideas, logic and efforts but also those who guide them. So, at the completion of the project, we feel obliged to extent our gratitude towards all those who made valuable contributions throughout our various stages in Project draft period. We express our profound sense of gratitude and sincere thanks to our Director, Dr.J.N.SHAH for enabling us to undertake such an excellent project, which made us to acquire tremendous knowledge and self-confidence. We extend our special thanks to Prof. Shripad Bapat, (Project Guide) who gave us a wonderful opportunity to select and work on this topic and understand the challenges which we face in our career path while dealing with people and the complexities of the job and for his valuable guidance and inputs which helped us to select and focus our work on this project. We would also like to thank all teaching and non-teaching staff of IMCOST, for their valuable guidance and inputs which helped us to select and focus our work on this project. Also we would like to thanks to our entire professor who are not directly supported for the project but indirectly made support on the way of improvement in presentation skills, deep knowledge sharing against todays business environment as well as competitive world and current updates. We are very much thankful our parents and friends for their continuous support. INDEX SR NO. TABLE OF CONTENTS PAGE NO.

1. CHAPTER I INTRODUCTION (BANK FIXED DEPOSIT) 1

2. CHAPTER II INTRODUCTION (MUTUAL FUND) 6

3. CHAPTER III- RESEARCH METHODOLOGY 15

4. CHAPTER IV CONCLUSION & RECOMMENDATION 32

5. BIBLIOGRAPHY 34

6. ANNEXURES

LIST OF TABLES TABLE NO. TITLE OF THE TABLES PAGE NO.

2.1 TYPES OF MUTUAL FUNDS 8

2.2 MUTUAL FUND VS BANK FIXED DEPOSIT 14

2.3 TOP 10 MUTUAL FUNDS 14

3.1 INVESTORS THINK RISKEST INVESTMENT PRODUCT 18

3.2 AGE GROUP 22

3.3 KIND OF INVESTMENT 23

3.4 INVESTMENT OPTION 24

3.5 REASON OF INVESTMENT 25

3.6 FACTORS CONSIDERED FOR INVESTMENT 26

3.7 MORE RISKY 27

3.8 KONWLEDGE OF SCHEME 28

3.9 BENEFECIAL SECTOR FOR INVESTORS 29

3.10 INVESTMENT TYPE 30

3.11 INVESTMENT OPTION RECOMMEND 31

EXECUTIVE SUMMARY A growing India offers opportunity across the various investments, a substantial part of financial wealth. Therefore investment plays an important role in growth of these economies. Also there is rapid growth in income of peoples in India due to some factors because of this investment is increased day by day in various investment options. As income range rapidly increasing there is need to increase awareness among the people related with various investment option and different schemes. The project is an attempt to study or awareness among the people related with some investment option and also the preference of people while implementing the same. It provides thorough knowledge of different aspects related with the behavior of people for mutual fund as compare to bank fixed deposit. The report is divided in four parts. The first part is dealing with information related with advantage and disadvantage Bank fixed deposit. Second is concept of advantage and disadvantage mutual fund. Third is concept of research methodology. Fourth deals with interpretation of data collected. Most of metro cities people like to put the money in market related schemes instead of dumping it in the bank lockers, so it is quite obvious that they want to invest their money in profitable venture. But still people prefer to go for traditional schemes as well for safety and security purpose. Now a days people become more sensible while choosing any type of investment. It is more important to have good knowledge and understanding related with such scheme which will help to choose better and safety investment tools. CHAPTER I INTRODUCTION 1.1 BANK FIXED DEPOSIT: A fixed deposit is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular saving account, until the date of maturity date. It may or may not require the creation of a separate account. It is also term as TERM OR TIME Deposit. They are considered to be very safe investment as it denotes a larger class of investments with varying levels of liquidity. Here, interest rate varies between from 4 to 11 percent. The tenure of a Fixed Deposit a vary from 7, 15, or 45 days to 1.5 years and can be high as 10 years. 1.2 TYPES OF FIXED DEPOSIT : BASICALLY THERE ARE TWO TYPES OF DEPOSIT: A. DEMAND DEPOSIT:- The money we keep in our saving accounts is like a medium of exchange and this is called Demand Deposit. There is no fixed term to maturity for demand deposits. B. TIME DEPOSIT:- If we deposit our money has an FD in the bank it becomes a Time Deposit on which No cheque is drawn. They are paid on maturity at a particular time. a. FIXED DEPOSIT:- A fixed rate of interest is paid at fixed, regular intervals. b. RECURRING DEPOSIT:- Fixed amount is deposited at regular intervals for a fixed term and the repayment of principal and accumulated interest is made at the end of the term. 1.3 ADVANTAGES OF BANK FIXED DEPOSIT: A. SAFETY :- The fixed deposits of reputed banks and financial institution regulated by RBI the banking regulator in India are very secure and considered as one of the safest investment methods. B. REGULAR INCOME:- Fixed deposit earn fixed interest rates for their entire tenure, which is usually compounded quarterly. So, those who want an income on a regular basis can invest into fixed deposit and use the interest rate as their income. This makes a fixed deposit very popular way of investing money for retirees. C. LIQUIDITY:- Bank deposits have good liquidity. They can be closed and the principal withdrawn within a few hours in some banks to a couple of days in others. The other option is to take a loan on the fixed deposit. Banks lend up to 90% of the principal of the deposit. Interest charged for this is only about 1 to 2 per cent and only for the period that we have used the cash (The feature works like an over-draft against the fixed deposit). 1.4 DISADVANTAGES OF BANK FIXED DEPOSIT: A. CAPITAL APPRECIATION:- Capital appreciation does not apply to bank fixed deposits. Only the principal invested is returned back at the time of maturity. B. TAX TREATMENT:- Bank fixed deposits are not tax efficient. The interest is taxed. Also there is no benefit from making the investment. There are the 5-year bank deposits (tax saving) that give benefit under section 80C of the Income Tax Act. But the benefits such as partial withdrawal or closure, and loan facility are not available. The deposit rates are also lower compared to the normal fixed deposits. This effectively negates the tax saved. C. RISK:- Perhaps the main reason for investment in bank deposits is safety of the principal. The capital (only up to Rs1,00,000 though) has the highest safety compared to any other investment as it is guaranteed by the Deposit Insurance & Credit Guarantee Scheme of India. All banks operating in India are covered under this scheme. 1.5 IN SHORT The risk faced when investing in bank deposits is the interest rate risk. This is associated with the lost opportunity to invest in an instrument that has a higher return. Getting out of a fixed deposit can be costly (up to 1 per cent of the principal), when we exit prematurely. So we may have to forgo potential earnings when the interest rate has risen only by about 1 per cent. The highest risk faced with fixed deposits is the effect of inflation. The real return after adjusting for inflation is very less or sometimes negative for fixed deposits of banks. This is a big burden, particularly for retired people, who have invested their retirement proceeds to get regular income. Their income may be regular and steady but the money's worth keeps going down during the tenure of the fixed deposit. The bank deposit primarily serves us to preserve capital. Banks now-a-days have added a lot of additional benefits to the traditionally benign service. Retired people could make the best use of this avenue for securing a fixed and steady income. The caution is not to use the fixed deposit as a long term investment avenue. The reason is that the real return is very less when adjusted for inflation. The tax treatment of the interest also eats into the returns. CHAPTER II INTRODUCTION 2.1 MUTUAL FUND The first introduction of a mutual fund in India occurred in 1961, when the Government of India launched Unit Trust of India (UTI). Until 1987, UTI enjoyed a monopoly in the Indian mutual fund market. Then a host of other government-controlled Indian financial companies came up with their own funds. These included State Bank of India, Canara Bank, and Punjab National Bank. This market was made open to private players in 1993. As a result of the historic constitutional amendments brought forward by the then Congress-led government under the existing regime of Liberalization, Privatization and Globalization (LPG). The first private sector fund to operate in India was Kothari Pioneer, which later merged with Franklin Templeton. An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives. One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital. Each shareholder participates proportionally in the gain or loss of the fund. Mutual fund units, or shares, are issued and can typically be purchased or redeemed as needed at the fund's current net asset value (NAV) per share, which is sometimes expressed as NAVPS. 2.2 NET ASSET VALUE NAV A mutual fund's price per units, the per- units Rupee amount of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund units outstanding. In the context of mutual funds, NAV per units is computed once a day based on the closing market prices of the securities in the funds portfolio. All mutual funds buy and sell orders are processed at the NAV of the trade date. 2.3 TYPES AND KINDS OF MUTUAL FUNDS FIG 2.1 TYPES OF MUTUAL FUNDS

1. OPEN-ENDED:- This scheme allows investors to buy or sell units at any point in time. This does not have a fixed maturity date. A. DEBT/ INCOME:- A major part of the investable fund is channelized towards debentures, government securities, and other debt instruments. Although capital appreciation is low (compared to the equity mutual funds), this is a relatively low risk-low return investment avenue which is ideal for investors seeing a steady income. B. MONEY MARKET/ LIQUID:- This is ideal for investors looking to utilize their surplus funds in short term instruments while awaiting better options. These schemes invest in short-term debt instruments and seek to provide reasonable returns for the investors. C. EQUITY/ GROWTH:- Equities are a popular mutual fund category amongst retail investors. Although it could be a high-risk investment in the short term, investors can expect capital appreciation in the long run. a. Index Scheme:- Index schemes are a widely popular concept in the west. These follow a passive investment strategy where our investments replicate the movements of benchmark indices like Nifty, Sensex, etc. b. Sectoral Scheme:- Sectoral funds are invested in a specific sector like infrastructure, IT, pharmaceuticals, etc. or segments of the capital market like large caps, mid-caps, etc. This scheme provides a relatively high risk-high return opportunity within the equity space. c. Tax Saving:- As the name suggests, this scheme offers tax benefits to its investors. The funds are invested in equities thereby offering long-term growth opportunities. Tax saving mutual funds (called Equity Linked Savings Schemes) has a 3-year lock-in period. D. BALANCED:- This scheme allows investors to enjoy growth and income at regular intervals. Funds are invested in both equities and fixed income securities; the proportion is pre-determined and disclosed in the scheme related offer document. These are ideal for the cautiously aggressive investors 2. CLOSED-ENDED:- In India, this type of scheme has a stipulated maturity period and investors can invest only during the initial launch period known as the NFO (New Fund Offer) period. A. CAPITAL PROTECTION:- The primary objective of this scheme is to safeguard the principal amount while trying to deliver reasonable returns. These invest in high-quality fixed income securities with marginal exposure to equities and mature along with the maturity period of the scheme. B. FIXED MATURITY PLANS (FMPS):- Mutual fund schemes with a defined maturity period. These schemes normally comprise of debt instruments which mature in line with the maturity of the scheme, thereby earning through the interest component (also called coupons) of the securities in the portfolio. FMPs are normally passively managed, i.e. there is no active trading of debt instruments in the portfolio. The expenses which are charged to the scheme are hence, generally lower than actively managed schemes. 3. INTERVAL:- Operating as a combination of open and closed ended schemes, it allows investors to trade units at pre-defined intervals. 2.4 ADVANTAGES OF MUTUAL FUNDS

Mutual funds have been a popular investment vehicle for investors. Their simplicity along with other attributes provides great benefit to investors with limited knowledge, time or money. To help us decide whether mutual funds are best for us, we are going to look at some reasons to consider investing in mutual funds. A. DIVERSIFICATION:- One rule of investing, for both large and small investors, is asset diversification. Diversification involves the mixing of investments within a portfolio and is used to manage risk. Mutual fund provides immediate benefit of instant diversification and asset allocation without the large amounts of cash needed to create individual portfolios. B. ADVANCED PORTFOLIO MANAGEMENT:- We pay a management fee as part of our expense ratio, which is used to hire a professional portfolio manager who buys and sells stocks, bonds, etc. This is a relatively small price to pay for help in the management of an investment portfolio. C. CONVENIENCE AND FAIR PRICING:- Mutual funds are common and easy to buy. They typically have low minimum investments and they are traded only once per day at the closing NET ASSET VALUE (NAV). This eliminates price fluctuation throughout the day and various arbitrage opportunities that day traders practice. D. LIQUIDITY AND SIMPLICITY:- We can sell or buy mutual funds anytime. So mutual funds are good if we want to invest in something which we can liquidate easily. Also mutual funds are very simple to buy and sell. E. DIVIDEND REINVESTMENT:- As dividends and other interest income is declared for the fund, it can be used to purchase additional units in the mutual fund, thus helping your investment grow. 2.5 DISADVANTAGES OF MUTUAL FUNDS There are risks involved in buying mutual funds. These investment vehicles can experience market fluctuations and sometimes provide returns below the overall market. Also, the advantages gained from mutual funds are not free: many of them carry loads, annual expense fees and penalties for early withdrawal. A. RISKS AND COSTS:- Changing market conditions can create fluctuations in the value of a mutual fund investment. Also there are fees and expenses associated with investing in mutual funds that do not usually occur when purchasing individual securities directly. B. NO GUARANTEES:- As Mutual funds invest in debt as well equities, there are no sure returns. Returns depend on the market conditions. C. NO CONTROL:- Investor does not have control on investment; all the decisions are taken by the fund manager. Investor can just join or leave the show. D. TAX INEFFICIENCY:- Investors do not have a choice when it comes to capital gain payouts in mutual funds. Due to the turnover, redemptions, gains and losses in security holdings throughout the year, investors typically receive distributions from the fund that are an uncontrollable tax event. 2.6 COMPARISON BETWEEN MUTUAL FUNDS AND FIXED DEPOSITS FIG 2.2 MUTUAL FUND VS BANK FIXED DEPOSIT PARAMETERS MUTUAL FUNDS FIXED DEPOSITS

A. Rate Of Returns No Assured Returns Fixed Returns

B. Inflation Adjusted Returns Potential For High InflationAdjusted Returns Usually Low InflationAdjusted Returns

C. Risk Medium To High Risk Low Risk

D. Liquidity Liquid Medium To Low Liquidity

E. Premature Withdrawal Allowed With Exit Load Allowed With Penalty

F. Cost Of Investment Management Cost No Cost

G. Tax Status Favorable Tax Status As Per Tax Slab

TOP 10 MUTUAL FUNDS HOUSE FIG 2.3 TOP 10 MUTUAL FUNDS Sr No Mutual Fund Average %

1 HDFC Mutual Fund 1,034.42 12.70%

2 Reliance Mutual Fund 952.28 11.69%

3 ICICI Prudential Mutual Fund 853.03 10.48%

4 Birla Sun Life Mutual Fund 773.44 9.50%

5 UTI Mutual Fund 700.57 8.60%

6 SBI Mutual Fund 595.58 7.31%

7 Franklin Templeton Mutual Fund 448.12 5.50%

8 IDFC Mutual Fund 396.65 4.87%

9 Kotak Mahindra Mutual Fund 352.99 4.34%

10 DSP BlackRock Mutual Fund 304.86 3.74%

CHAPTER III: RESEARCH METHODOLOGY Research refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. It is an art of scientific investigation. 3.1 OBJECTIVES: The study will give an overview about mutual funds and bank fixed deposit. And also will give brief comparison between mutual fund and bank fixed deposit. It will help investors to take effective investment decision. The research has been undertaken from the investor point of view and hence will be important to investors as follow: 1. To study/ find the various scheme at mutual fund investment as well as bank fixed deposit. 2. To study the pros and consequences of the mutual fund and bank fixed deposit investment. 3. To study the consumers preferences about mutual fund investment as against bank fixed deposit. 3.2 DATA COLLECTION METHOD:- To achieve the objectives of to do comparative analysis of mutual fund investment as against bank fixed deposit data has to be collected from different sources. 3.2.1 SECONDARY DATA This data is collected from various sources like magazines, websites and especially from the books of well-known authors. BOOKS FOLLOWS- Indian Mutual Funds Handbook: - Sundar Sankaran 16 Personal Finance Principles Every Investor Should Know - Manish Chauhan FOLLOWING ARE THE URLS http://mutualfund.birlasunlife.com http://www.tatamutualfund.com https://www.valueresearchonline.com http://www.moneycontrol.com http://economictimes.indiatimes.com 3.2.2 ADVANTAGES OF SECONDARY DATA A. SAVING OF TIME:- The process has been simplified. Precise information may be obtained via search engines. All worth library has digitized its collection so that students and researchers may perform more advance searches. B. SAVING OF MONEY:- In general, it is much less expensive than other ways of collecting data. One may analyze larger data sets like those collected by government surveys with no additional cost. C. GENERATING NEW INSIGHTS:- Reanalyzing data can also lead to unexpected new discoveries. Returning to the previous. we can analyze the data and0 come up with new relevant conclusions or simply verify and confirm previous results. 3.2.3 DISADVANTAGES OF SECONDARY DATA A. INAPPROPRIATENESS OF THE DATA:- Secondary data sources may provide you with vast amount of information, but quantity is not synonymous of appropriateness. This is simply because it has been collected to answer a different research question or objectives. B. LACK OF CONTROL OVER DATA QUALITY:- Government and other official institutions are often a guarantee of quality data, but it is not always the case. For this reason, quality issues must be verify as outlined in this post. 3.1 INVESTORS THINK RISKEST INVESTMENT PRODUCT Investors think riskest investment product

High risk Medium risk Low risk

Mutual Funds 83 13 4

Life insurance 4 19 77

Post office saving 4 18 78

Equity 41 46 13

Company fixed deposits 24 53 23

Bonds 26 51 23

Gold 13 38 59

Property 9 39 52

Chit Funds 30 52 18

Bank FD 3 20 77

Secondary data are already collected information. It is generally difficult to scrutiny of secondary data because it may be a inconsistencies, errors and omission etc. Thus it is very risky to use methods and derived to conclusion. For that our group are go for primary data method. Data collected by primary data is collected with a concrete idea in mind. Usually to answer a research question or just meet certain objectives. 3.3 PRIMARY DATA On the basis of pilot study stage, a structured has been constructed to conduct the sample survey. The questionnaire includes quotations on each of the 4-5 variables related to the respondents. A questionnaire with 13 questions has been used as survey instrument for conducting survey. A total of 51 respondents were interviewed and data has been generated by face to face interview. The questionnaire has options against which the respondent has to select as per his/her perception from his/her experiences. 3.3.1 ADVANTAGES OF PRIMARY DATA A.DATA INTERPRETATION IS BETTER:- The collected data can be examined and interpreted by the marketers depending on their needs rather than relying on the interpretation made by collectors of secondary data. B. RECENCY OF DATA:- Thus primary data becomes a more accurate tool since we can use data which is useful for us. C. PROPRIETARY ISSUES:- Collector of primary data is the owner of that information and he need not share it with other competitors. This gives an edge over competitors replying on secondary data. 3.3.2 DISADVANTAGES OF PRIMARY DATA A. HIGHCOST:- Collecting data using primary research is a costly proposition as marketer has to be involved throughout and has to design everything. B. TIME CONSUMING:- Because of exhaustive nature of the exercise, the time required to do research accurately is very long as compared to secondary data, which can be collected in much lesser time duration. C. MORE NUMBER OF RESOURCES ARE REQUIRED:- Leaving aside cost and time, other resources like human resources and materials too are needed in larger quantity to do surveys and data collection. 3.4 METODS OF COLLECTING PRIMARY DATA:- A. SAMPLING:- It represents whole population. It is the processes of choosing a sample from whole population .We have chosen a sample of high class & middle class people who have invested either in mutual funds or Bank Fixed Deposits. B. CENSUS SURVEY:- It is a systematics method. It covers entire population or universe and not very practical as it requires enormous huge amount of time, manpower and money. C. SAMPLING SIZE:- We had chosen sample of 51 candidates. 3.4 DATA ANALYSIS AND INTERPRETATION:- Data analysis and interpretation is the process of inspecting, cleaning, transforming and modeling data with the goal of discoveries useful information, suggesting conclusion and supporting decision making. Data interpretation is that in which we analysis the whole collected data & tries to give it in simple words to be understandable. We have used some charts (Pie chart, column chart, cylinder chart, cone chart) and hypothesis tests (chi-square one sample T- test etc.) 3.5 LIMITATIONS:- A. The study is limited to selected investment avenues. B. Due to shortage or less availability of time it may be possible that all the related and concerned aspects may not be covered in this project. C. As we have used sampling method to collect data so there was lack of support from respondent in some cases. Maximum respondents were not interested to entertain us. TABLE 3.2 AGE GROUP: Age Group 21-30 31-40 41-50 Above 50 Total

Frequency 24 11 11 5 51

Percentage 51 24 24 1 100

The above schedule and the diagram mentioned below explain the relationship between different ages of respondents investing either in Mutual Fund or Bank Fixed Deposits. FIG.3.2 51%24%24%1%AGE GROUP21-3031-4041-50Above 50

The above figure shows that the age group of 21-30 respondents investing more either in Mutual Fund or Bank Fixed Deposits i.e. (51%) and age group of above 50 makes less investment i.e. (1%). Table 3.3 Date Was Collected For Analyzing Whether Customer Have Ever Invested In Any Kind Of Investment: Yes/No Yes No Total

Frequency 45 6 51

Percentage 88 12 100

The above schedule and the diagram mentioned below reflects whether customer have ever Invested in any kind of Investment. FIG.3.3 88%12%INVESTMENTYesNo

The above figure shows that 88% of Customer are interested in of Investment and 12% Customers are not interested in any type of investment. Table 3.4 Date was collected for analyzing Investment Options most preferable for investment either in Mutual Fund or in Bank Fixed Deposits: Investment Options Bank Fixed Deposits Mutual Fund Total

Frequency 31 20 51

Percentage 61 39 100

The above Investment Options schedule and the Investment Option diagram mentioned below reflects number of respondents investing either in Mutual Fund or in Bank Fixed Deposits. FIG.3.4 61%39%INVESTMENT OPTIONBank Fixed DepositsMutual Fund

The above figure shows that Bank fixed deposits is more preferable (61%) than Mutual Funds (39%). Table 3.5 Date Was Collected For Analyzing Reasons For Selecting Mutual Fund Or Bank Fixed Deposits: Reasons Rate Of Interest Low risk Tax Saving Total

Frequency 21 24 6 51

Percentage 41 47 12 100

The above schedule and the diagram mentioned below reflects number of respondents reason for investing either in Mutual Fund or in Bank Fixed Deposits. FIG.3.5 41%47%12%REASON FOR INVESTMENTRate Of InterestLow riskTax Saving

The above figure shows that bank fixed deposit is more preferable if Risk is Low i.e. (47%) then Tax Saving (12%). Table 3.6 Date Was Collected For Analyzing What Factors Considered By Customers For Investment In Mutual Fund Or Fixed Deposits: Factors Preservati on of Capital Increase in current income Aggressi ve Growth Growth and Income Conservatio n Growth Total

Frequency 20 13 8 6 4 51

Percentage 39 24 16 12 8 100

The above schedule and the diagram mentioned below reflects factors customers consider for investment in Mutual Fund or Fixed Deposits. FIG.3.6 40%24%16%12%8%FACTORS CONSIDERED FOR INVESTMENTPreservation ofCapitalIncrease in currentincomeAggressive GrowthGrowth and IncomeConservation Growth

The above figure shows that Preservation of capital (40%) is a major factor considered by consumers for investment rather than investing for Conservation Growth (8%) Table 3.7 Date Was Collected For Analyzing Which Investments Option Is More Risky: Investment Options Bank Fixed Deposits Mutual Fund Total

Frequency 2 49 51

Percentage 4 96 100

The above Investment Options schedule and the diagram mentioned below reflects which investments option is more risky between Mutual Fund and Fixed Deposits. FIG.3.7 4%96%INVESTMENT OPTIONBank Fixed DepositsMutual Fund

The above figure shows about 96% of Customer finds more risk in investment in Mutual Fund then Bank Deposits.

1 1 9 Table 3.8 Date Was Collected For Analyzing Knowledge Of Schemes In Investment Options: KNOWLEDGE YES NO TOTAL

Frequency 27 24 51

Percentage 53 47 100

The schedule and the diagram mentioned below reflects knowledge of Schemes in investment options between Mutual Fund and Fixed Deposits. FIG.3.8 53%47%KNOWLEDGE OF SCHEMESYesNo

The above figure shows that about 53% customers have knowledge of Schemes available in Mutual Fund and Bank Fixed Deposits and 47% dont have idea about schemes. Table 3.9 Date Was Collected For Analyzing Investment In Which Sector Will Make Benefit For Customers: Sector Public Sector Private Sector Total

Frequency 31 20 51

Percentage 61 39 100

The schedule and the diagram mentioned below reflects investment sector which is more beneficial according to investors. FIG.3.9 61%39%BENEFICIAL SECTORPublic SectorPrivate Sector

The above figure shows that Public Sector (61%) is more beneficial than Private Sector (39%). Table 3.10 Date Was Collected For Analyzing Investment Type Preferred By Investors: INVESTMENT TYPE SHORT TERM LONG TERM TOTAL

Frequency 21 30 51

Percentage 41 59 100

The schedule and the diagram mentioned below reflect Investment type preferred by investors. Fig.3.10 41%59%INVESTMENT TYPEShort termLong Term

The above figure shows that Long Term investment (59%) is more preferred than Short term investment (41%). Table 3.11 Date Was Collected For Analyzing Investment Option Referred By Investors: Investment Option Bank Fixed Deposits Mutual Fund Total

Frequency 32 19 51

Percentage 63 37 100

The schedule and the diagram mentioned below reflect Investment option referred by investors. FIG.3.11 63%37%INVESTMENT OPTION RECOMMENDBank Fixed DepositsMutual Fund

The above figure shows that Bank Fixed Deposits (63%) is recommended highly than Mutual Fund investment (37%).

1 1 37 CHAPTER IV: CONCLUSION & RECOMMEDATION 4.1 CONCLUSIONS A. On the basis of conclusion it has been seen that many people prefer to invest their money in bank fixed deposit as compare to Mutual funds B. People will be aware of the risk involved in investments. C. Mutual fund is introduced in 1961, till 54years after mutual funds not change the mind set of people. Till present traditional investment is dominating other investments. D. Data collected also reveals that peoples are investing their some part of their income. E. It also has been found that people are preferring public sector as beneficial. F. People invest their money in low risk instrument as a first preference not choose high rate of return. People are more focused preservation of capital as factor for their investment. G. Majority of people are feeling mutual fund is more risky than bank fixed deposits. But people dont know bank also give only 1 lac grantee of their fixed deposit investment. H. More than 50 percent of people dont know investment scheme of mutual fund and bank fixed deposit. I. More people are investing their money in bank fixed deposit for a long term. J. People are recommending bank fixed deposit as good investment to others. 4.2 RECOMMEDATIONS: A. Seminars and promotional activities should be held to increase knowledge and awareness among the peoples related with market related schemes. B. For long term investments mutual funds is best option and it can beat inflation of the economy. C. People regularly invest part thereof income to mutual fund for longer term. D. From the advance technology now people improve their knowledge about mutual fund investments and they take correct decision about investments. E. Increase in rate of return and proper allocation of funds will help to increase investments to modern investments. F. Mutual Funds Company improves their operational transaction and bring more professionalism in their work. G. Mutual funds give better return compared to bank fixed deposits. H. Mutual funds are a tax saving tools if people invest their money in tax saving funds. BIBLIOGRAPHY BOOK REFERRED Indian Mutual Funds Handbook: - Sundar Sankaran . 16 Personal Finance Principles Every Investor Should Know - Manish Chauhan. MAGAZINES ET WEALTH BRUNCH WEBSITES http://mutualfund.birlasunlife.com http://www.tatamutualfund.com https://www.valueresearchonline.com http://www.moneycontrol.com http://economictimes.indiatimes.com http://www.sebi.gov.in 1 1 41