FINDINGS & SUGGESTION

SHOBHIT MISHRA PGD FM BVU AMPLIFY FINAL YEAR

FINDINGS

In the last decade investors have been attracted towards Mutual Fund because of the following benefits: Risk of loss due to ill informed purchase and sale of securities is minimum. Diversification of investments in term of companies and industries spread risk. Returns are automatically re-invested and ordinary investor is relieved of paper work. Safety against speculative operations is provided.

The above said brief discussions has made crystal clear that investor today at large has got a new option of investment in the form of Mutual Fund i.e. he has one more very attractive choice in kitty. There are several factors which affects the perception of customers to invest in Mutual Funds: 1. AGE OF INVESTOR: Survey reports simply indicates that young,energetic and people with sound health take initiative to invest high percentage of the saving in equities for long run. On other hand old age and retired people neglect investment in equity based schemes, they rather prefer either Fixed Maturity Plans(FMPs) and balanced schemes. Young people prefer equities but are interested in their own research analysis before investing while old people are based on the suggestion of authorized T.V. programmes. 2. MARKET CONDITION: With the fluctuation in market, perception of investors also fluctuates meaning thereby greater the stability in market, greater is confidence. On the other hand erratic market discourages investors in equity fund. 3. REGIONAL SEGMENTATION: Investor dwelling in urban areas are well aware of Mutual funds and have aware of Mutual funds have positive frame of mind for investment in mutual fund. On other hand, due to lack of information, people of rural and semi-urban areas neglect investment in mutual fund. 4. ROLE OF DISTRIBUTORS: Knowledge and perception of investor is directly linked with the kind of information feeded by the distributor. If the queries and doubts of

SHOBHIT MISHRA PGD FM BVU AMPLIFY FINAL YEAR

investors are properly quenched then they will certainly be encouraged towards Mutual Fund investment. distributor is unable to clear .

SUGGESTION

Comparatively the knowledge of Mutual funds among customers is increasing Respondent are very loyal to their brands, and brand name also influence the investment decision Risk and NAV per unit of funds do play an important role in the purchase of mutual funds Customers prefer equity schemes more than Fixed Income Funds Most of the respondents prefer to have Television as the media for advertisement. Reliance Equity Funds got a good popularity among investors. A good number of people invest for a longer time period with a long term growth option A good number of people invest in mutual funds to have tax benefit

Not so long ago a common investor when asked about investing would have pointed out to the Fixed Deposits that he holds with the bank, the deposits with the Post Office, the Government Bonds that he has invested in, and the basket of shares (if any) that he holds in his kitty. He was not aware of the alternate route to investment, that of Mutual Funds. Slowly and gradually with the opening up of international borders and privatization, people are getting informed about other avenues of investment, be it Mutual Funds or Insurance. If we compare the Indian market with the global standards then we notice that the Indian Mutual Funds Industry is in its nascent stages, unlike the United States where every second household invests through this route. He links this route with risk. However, risk diversification is the very purpose of mutual funds.

SHOBHIT MISHRA PGD FM BVU AMPLIFY FINAL YEAR

Gradually people in Indian are getting educated about Mutual Funds through the interplay of the AMCs and the Banks. Every day we see new forays into the mutual fund industry with the introduction of new schemes and the entry of new players. The investors are getting informed by the day. The present generation is though open to the idea of investing in a mutual fund, since they are very much aware of the global scenario.

And its good to see the service class coming up with the investments. Thanks to the Systematic Investment Plans. India is observing this transition and very soon our investors would be displaying better investment habits than they had previously. In todays scenario where the Mutual Fund Houses are facing cut throat competition from each other and also when there is not too much difference between the returns offered to investors, it is hoped that the results and perspectives gained from this study will be helpful for investors who aim to get a realistic returns for their investments & help them decide what factors to consider while making an investment.

SHOBHIT MISHRA PGD FM BVU AMPLIFY FINAL YEAR

RECOMMENDATIONS

During the course of my, live project I gradually realized that one of the major problem faced by the industry today is the inability to attract the investments from the potential clients. The manner in which a mutual fund operates what it basically does to provide returns to the investors, why it cannot offer assured returns are all issues & questions people do not have an answer to. Thus, to correct the situation & thereby attract potential investors, there is an urgent need to: Launch an information campaign at local levels Informers should be well aware of all the schemes. Give a major thrust to appointing selling agents who have knowledge about the industry & its dynamics which unfortunately is not the case in the current times when everybody can get through a MFs test through an unfair means having been ill informed. Thus, they shake their faith and the the fame of mutual fund. It should also give importance to its after sales service to maintain the customer satisfaction.

SHOBHIT MISHRA PGD FM BVU AMPLIFY FINAL YEAR