PROJECT ON INDUSTRIAL TRAINING

A mutual fund is an institution that invests the pooled funds of public to create a diversified portfolio of securities.

Mutual fund cannot guarantee a fixed rate of return. It depends on the fund manager expertise knowledge. Mutual funds are governed by SEBI (Mutual Funds)

regulations, 1996.

Mutual funds

Working of Mutual Fund

Contd…

Your Savings

Professional

Fund Manager

AMC

Investment in Securities - Bonds / Equity

Returns - Growth

Or Dividend

ORGANISATION OF A MUTUAL FUND

By Structure◦ Open ended◦ Close ended◦ Interval

By Investment◦ Growth◦ Income◦ Balance◦ Money Market

TYPES OF MUTUAL FUND SCHEMES

Others◦ Special◦ Tax saving◦ Index◦ Sector specific

Contd…

Phase 1— July 1964 to November 1987 Phase 1— November 1987- October 1993 Phase 3-- October 1993- February 2003 Phase 4-- since February 2003

History of Indian mutual fund industry

A partner for life Proven Skills in wealth generation Exploiting expertise, compounding growth Fund house expertise Research - the backbone of Performance

STATE BANK OF INDIA - MUTUAL FUND

AWARDS AND ACHIEVEMENTS

Contd…

EQUITY SCHEMES DEBT SCHEMES BALANCED SCHEMES

SBI- MUTUAL FUND PRODUCTS

Strengths Brand Name Wide distribution Network Government Owned Diversified Portfolio

Weaknesses: Minor Hindrances Hierarchical management Lags Modernization

SWOT Analysis

Opportunities Merger of Associate Banks with SBI Opportunities for Public Sector Banks New Branches and ATMs Expansion on Foreign Soil

Threats Advent of MNC Banks CRM Private Banks Venturing into the Rural Employee Strike

Contd…

TITLE

Awareness and Preference of Mutual Fund among Entrepreneurs in

Chandigarh

To know why Entrepreneurs invest or do not invest in Mutual Funds.

To find out the preference towards investment option by entrepreneurs.

To find out the preference towards portfolios.

Objectives

Research Design◦ Descriptive.

Data Collection◦ Primary Source◦ Secondary Source

Sampling Technique◦ Convenience◦ Snow ball

Research Methodology

Sample Unit◦ Since the study is restricted only to Chandigarh hence the

sampling unit is all the Entrepreneurs in Chandigarh whether they invest or not invest in mutual fund.

Sample Size◦ 100

Contd…

Data Analysis and

Interpretation

96

4

Less than 1 cr.Between 1-10 cr.More than 10 cr.

figure 4.1: Estimated Annual Net Worth of concerned Business.

Figure 4.2 Awareness about Mutual Fund

88%

12%

Awareness about Mutual Fund

YesNo

Figure 4.3: Investment in Mutual Fund

76%

24%

Investment in Mutual Fund

YesNo

Figure 4.4: Reasons for not investing in Mutual Fund

Fixed Deposits Shares/Debentures Real Estate Insurance Others0

5

10

15

20

25

30

27

8

27 27

11

Figure 4.5: Other different investment options to Invest

Fixed Deposits Shares/Debentures Real Estate Insurance Others0

5

10

15

20

25

30

27

8

27 27

11

Figure 4.6: Preference regarding future investment in Mutual Fund

76%

24%

Preference regarding future investment in Mutual Fund

YesNo

Figure 4.7: Preferred AMC for Investment

SBI MF ICICI KOTAK RELIANCE Others0%

5%

10%

15%

20%

25%

30%

35%

40%

25%

36%

6%

18%

15%

Preferred AMC for Investment

Figure 4.8: Source of Information about Mutual Fund

Advertisements Banks Peer Groups Financial Advisors Others0

5

10

15

20

25

30

35

40

34

22

15

12

17

Source of Information

Figure 4.9: Factors considered while investing

Liquidity High Return Risk Trust0

50

100

150

200

250

195

93

149

233

Factors considered while investing

Figure 4.10: Channels preferred for Investment

Financial Advisors AMC Banks Others0

5

10

15

20

25

30

35

40

22

40

30

8

Channels preferred for Investment

Figure 4.11: Preferred Portfolios for investment

Equity

Debt

Balanced

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

30%

22%

48%

Preferred Portfolios for investment

Figure 4.12: Preferred option for getting return

Growth

Dividend Reinvestment

Dividend Payout

0

10

20

30

40

50

60

29

51

20

Preferred option for getting return

Figure 4.13: Type of Mutual Fund Investment preferred

37%

63%

Type of Mutual Fund Investment preferred

One time InvestmentSIP

Figure 4.14: Future Preferences regarding SBI MF

70%

30%

Future Preferences regarding SBI MF

YesNo

88 respondents were aware of the mutual fund and out of those 67 respondents were investing in mutual fund.

Those who were not investing in mutual fund maximum of them were not aware about mutual fund schemes. Some of them thought that mutual provides low return and some had a bad experience of dealing with mutual fund.

Maximum investment was made in Fixed Deposits, Real Estate and Insurance Sector by the respondents who were not interested in mutual fund.

ICICI is considered as the preferred AMC to invest followed by SBI MF, RELIANCE, HDFC, KOTAK, UTI etc.

Findings

Maximum respondents were getting information about mutual fund through Advertisement and Banks and they mostly prefer to invest through AMC and Banks.

Almost half of the respondents preferred Balanced Portfolio. Equity is opted by those who take more risk and Debt is adopted by persons who want minimum risk.

Maximum of respondents prefers Dividend Reinvestment option and Dividend Payout is given least preference.

Systematic Investment Option is preferred over One Time Investment.

Those who were not dealing in mutual funds would like to invest in mutual fund if better investment opportunity is provided to them.

Contd…

There should be better marketing of mutual funds by specially targeting bank customers.

New schemes should be introduced which focus on minimizing the risk, better rate of return, liquidity and profitability.

Customer should be properly handled.

Suggestions

Mostly entrepreneurs are getting information about mutual funds through advertisements and banks and they prefer to invest through banks and AMC. Mix of debt and equity is preferred and entrepreneurs prefer to invest through systematic investment plan rather than one time investment.

Conclusion

Thank You