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FINANCIAL MANAGEMENT

BBA 681-STUDY OF MUTUAL FUND

Name- Nirbhay Kumar


Roll No.- 31405016038
Registration No.-
163142010023
Stream- BBA(H)
Session- 2016-2019
Semester- 6th
MUTUAL FUND
 A mutual fund is common pool of money into which
investors place their contributions that area to be invested in
different types of securities in accordance with stated
objective
 An equity fund would buy equity assets – ordinary shares,
preference shares, warrants etc.
 A bond fund would buy debt instruments such as debenture
bonds or government securities/money market securities.
 A balanced fund will have a mix of equity assets and debt
instruments.
 Mutual Fund shareholder or a unit holder is a part owner of
fund’s asset.
MYTHS ABOUT OF MUTUAL FUNDS

1. Mutual Funds invest only in shares.


2. Mutual Funds are prone to very high
risks/actively traded.
3. Mutual Funds are very new in the
financial market.
4. Mutual Funds are not reliable and people
rarely invest in them.
5. The good thing about Mutual Funds is
that you don’t have to pay attention to
them.
OBJECTIVE
 To find out the Preferences of the investors for

Asset Management Company.

 To know the Preferences for the portfolios.

 To know why one has invested or not invested in

Mutual fund

 To find out the most preferred channel.

 To find out what should do to boost Mutual Fund

Industry.
METHODOLOGY
This report is based on primary as well as secondary data, however

primary data collection was given more importance since it is

overhearing factor in attitude studies. This report is based on primary

as well as secondary data, however primary data collection was given

more importance since it is overhearing factor in attitude studies.

SAMPLE SIZE
The sample size of my project is limited to 200 people only. Out of

which only 120 people had invested in Mutual Fund. Other 80 people

did not have invested in Mutual Fund.


TOOLS FOR ANALYSIS
Data has been presented with the help of bar graph, line graphs and

percentage analysis.
METHOD OF DATA COLLECTION
The sample was selected of them who are the

Businessman/govt. employee, irrespective of them being

investors or not or availing the services or not. It was also

collected through personal visits to persons, by formal and

informal talks and through filling up the questionnaire

prepared. The data has been analyzed by using

mathematical/Statistical tool.
SURVEY ANALYSIS AND INTERPRETATION
INTERPRETATION:
1. Investors invested in
From the above graph it
different kind of can be inferred that out

investments of of 200 people, 97.5%


Saving A/C people have invested in
Kolkata.
4% 2% Fixed Deposits Saving A/c, 76% in
6%
10%
25%
Insurance Insurance, 74% in Fixed

15%
Deposits, 60% in Mutual
Mutual Fund
19%
Fund, 37.5% in Post
19%
Post office-NSC,
etc office-NSC, 25% Shares
Shares/Debentures
or Debentures, 15% in
Gold/Silver
Gold/Silver and 32.5%
in Real Estate
2. Preference of INTERPRETATION:
factors while Out of 200 People, 32%

investing. People prefer to invest


18% 20%
where there is High Return,
32% 30%
30% prefer to invest where

there is Low Risk, 20%

prefer easy Liquidity and


Liquidity Low Risk
18% prefer Trust.
High Return Trust
3. Preference of Investors for future
INTERPRETATION:
investment in Mutual Fund Out of 120
investors, 68%
Others
prefer to invest in
Kotak Reliance, 67% in
ICICI Prudential,
No. ICICI Prudential
63% in SBIMF,
of Reliance 62.5% in others,
AMC
HDFC
50% in Kotak,
37.5% in UTI and
UTI
29% in HDFC
SBIMF Mutual Fund.
0 20 40 60 80 100

No. of Investors
4. Channel Preferred by the
Investors for Mutual Fund
INTERPRETATION:
Investment
Out of 120
Investors 60%
Financial preferred to
25% Advisor
15% 60% Bank invest through
Financial
AMC
Advisors, 25%
through AMC and
15% through
Bank.
5. Option for getting Return
Preferred by the Investors INTERPRETATION:
From the above
graph 71%
Sales preferred Growth
Option, 21%
preferred Dividend
Dividend
21% Payout Payout and 8%
Dividend preferred Dividend
8% Reinvestment Reinvestment
71% Growth Option.
FINDING
 About all the Respondents bad a Saving A/c in Bank, 76% Invested

in Fixed Deposits, Only 60% Respondents invested in Mutual fund

 Mostly Respondents preferred High Return while investment, the

second most preferred Low Risk then liquidity and the least

preferred Trust.

 Only 67% Respondents were aware about Mutual fund and its

operations and 33% were not

 60% Investors preferred to invest through Financial Advisors, 25

through AMC (means Direct Investment) and 15% through Bank

 65% preferred One Time Investment and 35% preferred SIP out of

both
CONCLUSION
 Running a successful Mutual Funds requires complete

understanding of the peculiarities of the Indian Stock

Market and also the psyche of the small investors.

 “Brand” plays important role for the investment.

 Distribution channels are also important for the investment

in mutual fund.

 Financial Advisors are the most preferred channel for the

investment in mutual fund.


RECOMMENDATION
 Mutual Fund Company needs to give the training of the

Individual Financial Advisors about the Fund/Scheme and its

objective, because they are the main source to influence the

investors.

 The most vital problem spotted is of ignorance. Investors

should be made aware of the benefits. Nobody will invest until

and unless he is fully convinced. Investors should be made to

realize that ignorance is no longer bliss and what they are

losing by not investing.

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