A PROJECT REPORT

ON

“A STUDY AND MARKETING STRATAGIES OF

MUTUAL FUNDS BY MIN MAX FINANCIAL
ADVISORY FOUNDATION”

SUBMITTED IN PARTIAL FULLFILLMEMT FOR

POST GRADUATE IN DIPLOMA MANAGEMENT
PROGRAMME OF

INSTITUE OF PUBLIC ENTERPRISE

HYDERABAD
BATCH (2009-2011)

SUBMITTED BY:
G V K GIRISH
PGDM SECTION A
ROLL NO: 0911PGDM029
 STUDENT’S DECLARATION

I hereby declare that this project titled “A STUDY AND

MARKETING STRATEGIES OF MUTUAL FUNDS BY MIN MAX
FINANCIAL ADVISORY FOUNDATION” submitted by me to the
institute of public enterprise, is a bonfide work under taken by
me and it is not submitted to any other university or Institution
for the award of any degree diploma/certificate or

Published any time before.

Name and address of the student

G V K GIRISH
signature of student

PGDM Class of 2010

Institute of public enterprise

O.U.Campus

Hyderabad-500 007
 ABSTRACT

In few years Mutual Fund has emerged as a tool for ensuring one’s financial
well
being. Mutual Funds have not only contributed to the India growth story but
have also
helped families tap into the success of Indian Industry. As information and
awareness is
rising more and more people are enjoying the benefits of investing in mutual
funds.
The main reason the number of retail mutual fund investors remains small is
that nine
in ten people with incomes in India do not know that mutual funds exist. But
once
people are aware of mutual fund investment opportunities, the number who
decide to
invest in mutual funds increases to as many as one in five people. The trick
for
converting a person with no knowledge of mutual funds to a new Mutual
Fund
customer is to understand which of the potential investors are more likely to
buy
mutual funds and to use the right arguments in the sales process that
customers will
accept as important and relevant to their decision.
This Project gave me a great learning experience and at the same time it
gave me
enough scope to implement my analytical ability. The analysis and advice
presented in
this Project Report is based on market research on the saving and
investment practices
of the investors and preferences of the investors for investment in Mutual
Funds. This
Report will help to know about the investors’ Preferences in Mutual Fund
means Are
they prefer any particular Asset Management Company (AMC), Which type
of Product
they prefer, Which Option (Growth or Dividend) they prefer or Which
Investment
Strategy they follow (Systematic Investment Plan or One time Plan). This
Project as a
whole can be divided into two parts.
The first part gives an insight about Mutual Fund and its various aspects, the
Company
Profile, Objectives of the study, Research Methodology. One can have a brief
knowledge about Mutual Fund and its basics through the Project.
The second part of the Project consists of data ,marketing strategies and its
analysis collected through survey
done on 80 people. For the collection of Primary data I made a questionnaire
and
surveyed of 80 people. I also taken interview and marketed the products of
sbi to the People those who were coming
at the minmax financial advisory foundation office where I done my Project.
The data collected has been well organized and presented. I hope the
research findings
and conclusion will be of use.
 CONTENTS

Chapter - 1 INTRODUCTION
Chapter - 2 COMPANY PROFILE
Chapter - 3 OBJECTIVES AND SCOPE
Chapter - 4 RESEARCH METHODOLOGY
Chapter - 5 DATA ANALYSIS AND INTERPRETATION
Chapter - 6 FINDINGS AND CONCLUSIONS
Chapter - 7 SUGGESTIONS & RECOMMENDATIONS
BIBLIOGRAPHY
ALL ABOUT MUTUAL FUNDS
 WHAT IS MUTUAL FUND
 BY STRUCTURE
 BY NATURE
 EQUITY FUND
 DEBT FUNDS
 BY INVESTMENT OBJECTIVE
 OTHER SCHEMES
 PROS & CONS OF INVESTING IN MUTUAL FUNDS
 ADVANTAGES OF INVESTING MUTUAL FUNDS
 DISADVANTAGES OF INVESTING MUTUAL FUNDS
 MUTUAL FUNDS INDUSTRY IN INDIA
 MAJOR PLAYERS OF MUTUAL FUNDS IN INDIA
 HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY
 CATEGORIES OF MUTUAL FUNDS
 INVESTMENT STRATEGIES
 WORKING OF A MUTUAL FUND
 GUIDELINES OF THE SEBI FOR MUTUAL FUND
 COMPANIES DISTRIBUTION CHANNELS
RESEARCH REPORT
 OBJECTIVE OF RESEARCH
 SCOPE OF THE STUDY
 DATA SOURCES
 SAMPLING
 DATA ANALYSIS
 QUESTIONNAIRE
 CHAPTER 1

INTRODUCTION
INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS
ASPECTS.
Mutual fund is a trust that pools the savings of a number of
investors who share a
common financial goal. This pool of money is invested in
accordance with a stated
objective. The joint ownership of the fund is thus “Mutual”, i.e.
the fund belongs to all
investors. The money thus collected is then invested in capital
market instruments such
as shares, debentures and other securities. The income earned
through these
investments and the capital appreciations realized are shared by
its unit holders in
proportion the number of units owned by them. Thus a Mutual
Fund is the most
suitable investment for the common man as it offers an
opportunity to invest in a
diversified, professionally managed basket of securities at a
relatively low cost. A
Mutual Fund is an investment tool that allows small investors
access to a welldiversified
portfolio of equities, bonds and other securities. Each shareholder
participates in the gain or loss of the fund. Units are issued and
can be redeemed as
needed. The funds Net Asset value (NAV) is determined each day.
Investments in securities are spread across a wide cross-section
of industries and
sectors and thus the risk is reduced. Diversification reduces the
risk because all stocks
may not move in the same direction in the same proportion at
the same time. Mutual
fund issues units to the investors in accordance with quantum of
money invested by
them. Investors of mutual funds are known as unit holders.
When an investor subscribes for the units of a mutual fund, he
becomes part owner of the assets of the fund in the same
proportion as his contribution amount put up with the corpus (the
total amount of the fund). Mutual Fund investor is also known as
a mutual fund shareholder or a unit holder. Any change in the
value of the investments made into capital market instruments
(such as shares, debentures etc) is reflected in the Net Asset
Value (NAV) of the scheme. NAVis defined as the market value of
the Mutual Fund scheme's assets net of its liabilities.NAV of a
scheme is calculated by dividing the market value of scheme's
assets by the total number of units issued to the investors.
ADVANTAGES OF MUTUAL FUND
Portfolio Diversification
Professional management
Reduction / Diversification of Risk
Liquidity
Flexibility & Convenience
Reduction in Transaction cost
Safety of regulated environment
Choice of schemes
Transparency
DISADVANTAGE OF MUTUAL FUND
No control over Cost in the Hands of an Investor
No tailor-made Portfolios
Managing a Portfolio Funds
Difficulty in selecting a Suitable Fund Scheme
HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY
The mutual fund industry in India started in 1963 with the
formation of Unit Trust of
India, at the initiative of the Government of India and Reserve
Bank. Though the
growth was slow, but it accelerated from the year 1987 when
non-UTI players entered
the Industry.
In the past decade, Indian mutual fund industry had seen a
dramatic improvement, both
qualities wise as well as quantity wise. Before, the monopoly of
the market had seen an
ending phase; the Assets Under Management (AUM) was Rs67
billion. The private
sector entry to the fund family raised the Aum to Rs. 470 billion in
March 1993 and till
April 2004; it reached the height if Rs. 1540 billion.
The Mutual Fund Industry is obviously growing at a tremendous
space with the mutual
fund industry can be broadly put into four phases according to
the development of the
sector. Each phase is briefly described as under.
First Phase – 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of
Parliament by the
Reserve Bank of India and functioned under the Regulatory and
administrative control
of the Reserve Bank of India. In 1978 UTI was de-linked from the
RBI and the
Industrial Development Bank of India (IDBI) took over the
regulatory and
administrative control in place of RBI. The first scheme launched
by UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of
assets under
management.
Second Phase – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set
up by public sector
banks and Life Insurance Corporation of India (LIC) and General
Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI
Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec
87), Punjab National
Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89),
Bank of India (Jun
90), Bank of Baroda Mutual Fund (Oct 92). LIC established its
mutual fund in June
1989 while GIC had set up its mutual fund in December 1990.At
the end of 1993, the
mutual fund industry had assets under management of Rs.47,004
crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)
1993 was the year in which the first Mutual Fund Regulations
came into being, under
which all mutual funds, except UTI were to be registered and
governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the
first private sector
mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a
more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now
functions under the
SEBI (Mutual Fund) Regulations 1996. As at the end of January
2003, there were 33
mutual funds with total assets of Rs. 1,21,805 crores.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India
Act 1963 UTI was
bifurcated into two separate entities. One is the Specified
Undertaking of the Unit Trust
of India with assets under management of Rs.29,835 crores as at
the end of January
2003, representing broadly, the assets of US 64 scheme, assured
return and certain
other schemes
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB,
BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund
Regulations. consolidation
and growth. As at the end of September, 2004, there were 29
funds, which manage
assets of Rs.153108 crores under 421 schemes.
Mutual funds can be classified as follow:
Based on their structure:
Open-ended funds: Investors can buy and sell the units from the
fund, at any point
of time.
Close-ended funds: These funds raise money from investors only
once. Therefore,
after the offer period, fresh investments can not be made into the
fund. If the fund is
listed on a stocks exchange the units can be traded like stocks
(E.g., Morgan Stanley
Growth Fund). Recently, most of the New Fund Offers of close-
ended funds provided
liquidity window on a periodic basis such as monthly or weekly.
Redemption of units
can be made during specified intervals. Therefore, such funds
have relatively low
liquidity.

Based on their investment objective:

Equity funds: These funds invest in equities and equity related

instruments. With
fluctuating share prices, such funds show volatile performance,
even losses. However,
short term fluctuations in the market, generally smoothens out in
the long term, thereby
offering higher returns at relatively lower volatility. At the same
time, such funds can
yield great capital appreciation as, historically, equities have
outperformed all asset
classes in the long term. Hence, investment in equity funds
should be considered for a
period of at least 3-5 years. It can be further classified as:
i) Index funds- In this case a key stock market index, like BSE
Sensex or Nifty is
tracked. Their portfolio mirrors the benchmark index both in
terms of composition
and individual stock weightages.
ii) Equity diversified funds- 100% of the capital is invested in
equities spreading
across different sectors and stocks.
iii|) Dividend yield funds- it is similar to the equity diversified
funds except that they
invest in companies offering high dividend yields.
iv) Thematic funds- Invest 100% of the assets in sectors which
are related through
some theme.
e.g. -An infrastructure fund invests in power, construction, cements sectors
etc.
v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A
banking sector
fund will invest in banking stocks.
vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the
investors.
Balanced fund: Their investment portfolio includes both debt and equity. As a
result, on
the risk-return ladder, they fall between equity and debt funds. Balanced funds are
the ideal
mutual funds vehicle for investors who prefer spreading their risk across various
instruments.
Following are balanced funds classes:
i) Debt-oriented funds -Investment below 65% in equities.
ii) Equity-oriented funds -Invest at least 65% in equities, remaining in
debt.
Debt fund: They invest only in debt instruments, and are a good option
for investors
averse to idea of taking risk associated with equities. Therefore, they invest
exclusively
in fixed-income instruments like bonds, debentures, Government of India
securities;
and money market instruments such as certificates of deposit (CD),
commercial paper
(CP) and call money. Put your money into any of these debt funds depending
on your
investment horizon and needs.
i) Liquid funds- These funds invest 100% in money market instruments, a
large
portion being invested in call money market.
ii) Gilt funds ST- They invest 100% of their portfolio in government
securities of and
T-bills.
iii) Floating rate funds - Invest in short-term debt papers. Floaters invest
in debt
instruments which have variable coupon rate.
iv) Arbitrage fund- They generate income through arbitrage opportunities
due to mispricing
between cash market and derivatives market. Funds are allocated to
equities,
derivatives and money markets. Higher proportion (around 75%) is put in
money
markets, in the absence of arbitrage opportunities.
v) Gilt funds LT- They invest 100% of their portfolio in long-term
government
securities.
vi) Income funds LT- Typically, such funds invest a major portion of the
portfolio in
long-term debt papers.
vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and
an
exposure of 10%-30% to equities.
viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in
line with
that of the fund.
Investment is the commitment of money or capital to purchase
financial instruments or other assets in order to gain profitable
returns in form of interest, income, or appreciation of the value of
the instrument. It is related to saving or deferring consumption.
Investment is involved in many areas of the economy, such as
business management and finance no matter for households,
firms, or governments. An investment involves the choice by an
individual or an organization such as a pension fund, after some
analysis or thought, to place or lend money in a vehicle,
instrument or asset, such as property, commodity, stock, bond,
financial derivatives (e.g. futures or options), or the foreign asset
denominated in foreign currency, that has certain level of risk
and provides the possibility of generating returns over a period of
time.

Investment comes with the risk of the loss of the principal

sum. The investment that has not been thoroughly analyzed can
be highly risky with respect to the investment owner because the
possibility of losing money is not within the owner's control. The
difference between speculation and investment can be subtle. It
depends on the investment owner's mind whether the purpose is
for lending the resource to someone else for economic purpose or
not. In the case of investment, rather than store the good
produced or its money equivalent, the investor chooses to use
that good either to create a durable consumer or producer good,
or to lend the original saved good to another in exchange for
either interest or a share of the profits. In the first case, the
individual creates durable consumer goods, hoping the services
from the good will make his life better. In the second, the
individual becomes an entrepreneur using the resource to
produce goods and services for others in the hope of a profitable
sale. The third case describes a lender, and the fourth describes
an investor in a share of the business. In each case, the
consumer obtains a durable asset or investment, and accounts
for that asset by recording an equivalent liability. As time passes,
and both prices and interest rates change, the value of the asset
and liability also change.

Different Types of Investments

There are many different types of investment. Broadly speaking,

they fit into four asset classes:

Cash & Fixed Interest investments

Cash investments are the most common form of investment. The

appeal is that they provide easy access to your money when you
need it, and there’s no chance you could lose any capital – so
they’re very secure.

For most investors, these products are suitable for:

Use as a transaction account

Keeping cash on hand for short-term expenses and

 emergencies
Short-term savings where you cannot afford any risk to your
capital

Short term deposits

Bonds

Property

Shares

Within each asset class there are investments to suit different

kinds of risk, duration, returns and liquidity. There are also
different ways of investing. You can take the 'DIY' route and
invest directly in one or more of the asset classes. Or, you can
invest in a managed fund where fund managers make a wide
range of investment decisions for you.

You can get a brief description of each type of investment below.

To see what type may suit you, try our Investment recommender.

1) Short term deposits

Bank savings accounts

The simplest kind of short term (or cash) investment is a savings

account. Returns are low compared to other investments, but
returns are guaranteed by the bank - so your investment won't
drop in value in the short term like others might. You can
withdraw part or all of your money whenever you want (total
liquidity). This makes them ideal for short term savings goals, or
as a place to keep your emergency fund - They're not a good
investment option for medium or long term goals.

Bank fixed term investments

You give the bank a lump sum for a set period (a fixed term)
usually three, six or 12 months. Your money is locked away for
the fixed term. In return, you get a higher interest rate than you
could get in a straight savings account. You may be able to
withdraw your money, but you will get a lower rate. These can be
a good short or medium term investment, depending on interest
rates. Interest rates are always changing - sometimes they go
through a 'high phase' - this is usually a good time to have money
on fixed term deposit.

(2) Bonds

A bond is like an IOU issued by a government or a company. You

give them money for a certain period, and they promise to pay a
certain interest rate and re-pay you on maturity. Bonds lock your
money away for a set period of time, but they can sometimes be
traded. Generally, they aren't a good short term investment.
Small investors don't usually invest directly in bonds, it's more
usual to go through a managed fund.
Finance company debentures are a kind of bond. These are not
usually able to be traded. Finance companies come in many
shapes and sizes, and the risk of their investments varies as well.

(3) Property

For most Investors, their home is their largest asset. But you
need to separate your emotional ties to your home from your
investment objectives. Think about how much of your net worth is
tied up in your home. Would it be wiser to buy a smaller house
and spread your money across other investments as well? Check
out how your home fits into your retirement plan.

Rental property

Owning property rented to individuals or businesses can be a safe

and profitable investment. Returns from property investment
come from rental income, after deducting expenses, and from the
increase in the value of property over time.

People debate whether property is a better investment than

shares. What’s important to remember is that they’re different
forms of investment. It’s easy to see losses on the share market
because the prices are available almost daily. Losses on property
investment are generally not published.

(4) Shares

By investing in shares in a public company listed on a stock

exchange you get the right to share in the future income and
value of that company. Your return can come in two ways:
Dividends paid out of the profits made by the company. Capital
gains made because you're able at some time to sell your shares
for more than you paid. Gains may reflect the fact that the
company has grown or improved its performance or that the
investment community sees that it has improved future
prospects. Any loss or gain in value is said to be 'realized' if you
sell the shares right there and then. If you hold onto them the
loss or gain is 'unrealized’. The price of shares in any individual
public listed company can vary from day to day. On any day
some shares may go up in value and some down, depending on
how investors view the prospects of each company. And all of the
listed company shares in a particular country or industry may
increase or decrease in price because of rises and falls in
economic confidence or changes in the particular industry.
Because of the volatility of share prices (i.e. the fact that in the
short term they may go up or down) it’s not wise to invest funds
which you need in the short term, in shares. When you need your
money you’ll generally be able to sell your shares, but the price
at the time may be below your purchase price. Shares should be
used as a long-term investment. Understanding explains how
fund managers help investors find combinations of shares and
other products, which suit their needs.

Comparison of Mutual Funds with other Investments

Savings form an important part of the economy of any nation.

With the savings invested in various options available to the
people, the money acts as the driver for growth of the country.
Indian financial scene too presents a plethora of avenues to the
investors. Though certainly not the best or deepest of markets in
the world, it has reasonable options for an ordinary man to invest
his savings. Let us examine several of them:

Banks

Considered as the safest of all options, banks have been the roots
of the financial systems in India. Promoted as the means to social
development, banks in India have indeed played an important
role in the rural enlistment. For an ordinary person though, they
have acted as the safest investment avenue wherein a person
deposits money and earns interest on it. The two main modes of
investment in banks, savings accounts and fixed deposits have
been effectively used by one and all. However, today the interest
rate structure in the country is headed southwards, keeping in
line with global trends. With the banks offering little above 9
percent in their fixed deposits for one year, the yields have come
down substantially in recent times. Add to this, the inflationary
pressures in economy and you have a position where the savings
are not earning. The inflation is creeping up, to almost 8 percent
at times, and this means that the value of money saved goes
down instead of going up. This effectively mars any chance of
gaining from the investments in banks.

Post Office schemes

Just like banks, post offices in India have a wide network. Spread
across the nation, they offer financial assistance as well as
serving the basic requirements of communication. Among all
saving options, Post office schemes have been offering the
highest rates. Added to it is the fact that the investments are safe
with the department being a Government of India entity. Though
certainly not the most efficient systems in terms of service
standards and liquidity, these have still managed to attract the
attention of small, retail investors. However, with the government
announcing its intention of reducing the interest rates in small
savings options, this avenue is expected to lose some of the
investors. Public Provident Funds act as options to save for the
post retirement period for most people and have been considered
good option largely due to the fact that returns were higher than
most other options and also helped people gain from tax benefits
under various sections. This option too is likely to lose some of its
sheen on account of reduction in the rates offered.

Company Fixed Deposits

Another oft-used route to invest has been the fixed deposit

schemes floated by companies. Companies have used fixed
deposit schemes as a means of mobilizing funds for their
operations and have paid interest on them. The safer a company
is rated, the lesser the return offered has been the thumb rule.
However, there are several potential roadblocks in these. First of
all, the danger of financial position of the company not being
understood by the investor lurks. The investors rely on
intermediaries who more often than not, don’t reveal the entire
truth. Secondly, liquidity is a major problem with the amount
being received months after the due dates. Premature
redemption is generally not entertained without cuts in the
returns offered and though they present a reasonable option to
counter interest rate risk (especially when the economy is headed
for a low interest regime), the safety of principal amount has
been found lacking. Many cases like the Kuber Group and DCM
Group fiascoes have resulted in low confidence in this option.

The options discussed above are essentially for the risk-averse,

people who think of safety and then quantum of return, in that
order. For the brave, it is dabbling in the stock market. Stock
markets provide an option to invest in a high risk, high return
game. While the potential return is much more than 10-11
percent any of the options discussed above can generally
generate, the risk is undoubtedly of the highest order. But then,
the general principle of encountering greater risks and
uncertainty when one seeks higher returns holds true. However,
as enticing as it might appear, people generally are clueless as to
how the stock market functions and in the process can endanger
the hard-earned money.

For those who are not adept at understanding the stock market,
the task of generating superior returns at similar levels of risk is
arduous to say the least. This is where “Mutual Funds” come
into picture.
Mutual Funds are essentially investment vehicles where people
with similar investment objective come together to pool their
money and then invest accordingly. Each unit of any scheme
represents the proportion of pool owned by the unit holder
(investor). Appreciation or reduction in value of investments is
reflected in net asset value (NAV) of the concerned scheme,
which is declared by the fund from time to time. Mutual fund
schemes are managed by respective Asset Management
Companies (AMC). Different business groups/ financial
institutions/ banks have sponsored these AMCs, either alone or in
collaboration with reputed international firms. Several
international funds like Alliance and Templeton are also operating
independently in India. Many more international Mutual Fund
giants are expected to come into Indian markets in the near
future.

The benefits on offer are many with good post-tax returns and
reasonable safety being the hallmark that we normally associate
with them. Some of the other major benefits of investing in them
are:

Number of available options

Mutual funds invest according to the underlying investment

objective as specified at the time of launching a scheme. So, we
have equity funds, debt funds, gilt funds and many others that
cater to the different needs of the investor. The availability of
these options makes them a good option. While equity funds can
be as risky as the stock markets themselves, debt funds offer the
kind of security that is aimed for at the time of making
investments. Money market funds offer the liquidity that is
desired by big investors who wish to park surplus funds for very
short-term periods. The only pertinent factor here is that the fund
has to be selected keeping the risk profile of the investor in mind
because the products listed above have different risks associated
with them. So, while equity funds are a good bet for a long term,
they may not find favor with corporate or High Net worth
Individuals (HNIs) who have short-term needs.

Diversification

Investments are spread across a wide cross-section of industries

and sectors and so the risk is reduced. Diversification reduces the
risk because all stocks don’t move in the same direction at the
same time. One can achieve this diversification through a Mutual
Fund with far less money than one can on his own.

Professional Management

Mutual Funds employ the services of skilled professionals who

have years of experience to back them up. They use intensive
research techniques to analyze each investment option for the
potential of returns along with their risk levels to come up with
the figures for performance that determine the suitability of any
potential investment.

Potential of Returns

Returns in the mutual funds are generally better than any other
option in any other avenue over a reasonable period of time.
People can pick their investment horizon and stay put in the
chosen fund for the duration. Equity funds can outperform most
other investments over long periods by placing long-term calls on
fundamentally good stocks. The debt funds too will outperform
other options such as banks. Though they are affected by the
interest rate risk in general, the returns generated are more as
they pick securities with different duration that have different
yields and so are able to increase the overall returns from the
portfolio.

Liquidity

Fixed deposits with companies or in banks are usually not

withdrawn premature because there is a penal clause attached to
it. The investors can withdraw or redeem money at the Net Asset
Value related prices in the open-end schemes. In closed-end
schemes, the units can be transacted at the prevailing market
price on a stock exchange. Mutual funds also provide the facility
of direct repurchase at NAV related prices. The market prices of
these schemes are dependent on the NAVs of funds and may
trade at more than NAV (known as Premium) or less than NAV
(known as Discount) depending on the expected future trend of
NAV which in turn is linked to general market conditions. Bullish
market may result in schemes trading at Premium while in
bearish markets the funds usually trade at Discount. This means
that the money can be withdrawn anytime, without much
reduction in yield. Some mutual funds however, charge exit loads
for withdrawal within a period linked to
Besides these important features, mutual funds also offer several
other key traits. Important among them are:

Well Regulated

Unlike the company fixed deposits, where there is little control

with the investment being considered as unsecured debt from the
legal point of view, the Mutual Fund industry is very well
regulated. All investments have to be accounted for, decisions
judiciously taken. SEBI acts as a true watchdog in this case and
can impose penalties on the AMCs at fault. The regulations,
designed to protect the investors’ interests are also implemented
effectively.

Transparency

Being under a regulatory framework, mutual funds have to

disclose their holdings, investment pattern and all the information
that can be considered as material, before all investors. This
means that the investment strategy, outlooks of the market and
scheme related details are disclosed with reasonable frequency
to ensure that transparency exists in the system. This is unlike
any other investment option in India where the investor knows
nothing as nothing is disclosed.

Flexible, Affordable and a Low Cost affair

Mutual Funds offer a relatively less expensive way to invest when

compared to other avenues such as capital market operations.
The fee in terms of brokerages, custodial fees and other
management fees are substantially lower than other options and
are directly linked to the performance of the scheme. Investment
in mutual funds also offers a lot of flexibility with features such as
regular investment plans, regular withdrawal plans and dividend
reinvestment plans enabling systematic investment or withdrawal
of funds. Even the investors, who could otherwise not enter stock
markets with low investible funds, can benefit from a portfolio
comprising of high-priced stocks because they are purchased
from pooled funds.

As has been discussed, mutual funds offer several benefits that

are unmatched by other investment options. Post liberalization,
the industry has been growing at a rapid pace and has crossed
Rs. 100000 core size in terms of its assets under management.
However, due to the low key investor awareness, the inflow under
the industry is yet to overtake the inflows in banks. Rising
inflation, falling interest rates and a volatile equity market make
a deadly cocktail for the investor for whom mutual funds offer a
route out of the impasse. The investments in mutual funds are
not without risks because the same forces such as regulatory
frameworks, government policies, interest rate structures,
performance of companies etc. that rattle the equity and debt
markets, act on mutual funds too. But it is the skill of the
managing risks that investment managers seek to implement in
order to strive and generate superior returns than otherwise
possible that makes them a better option than many others.

MUTUAL FUNDS VS INDIVIDUAL STOCKS

Mutual Funds Vs Individual Stocks has always been a debatable
issue. While some like to play safe with mutual fund investment,
some others prefer investment in individual stocks. When
any investor invests in any mutual fund all that he is required to
do is pay the Shareholder Fees and Fund Operating Fees. The
whole work of managing funds, starting from Market
Research and analysis of stock and bond price and recent trends
up to final Allocation of Funds or assets in various stocks and
bonds is completely done by the Professional Fund Managers
employed by the Investment Management Company. In this case,
the fund management remains in the hands of the fund
managers of the mutual fund company. But, in case of Direct
Investment in individual stocks, the total control remains in the
hands of the individual investors. But, most of the people agree
about the fact, that mutual funds hold some important benefits
over and above Individual Stocks. So, to get the actual depiction
of Mutual Funds Vs Individual Stocks, we will discuss the
advantages put forwarded by Mutual Funds

Diversification:

The greatest advantage the mutual funds hold over individual

stocks is the characteristic of Diversification. The core concept of
mutual funds is to Diversify Investment in order to lower the risk
of investing. As the mutual funds allocate their funds into stocks
of different companies and in different bonds, the risk is
diversified. If at a time, market price of some particular stocks
fall, the loss of the mutual fund may be offset by the rise in price
of some other stocks held by that particular mutual fund. But,
individual stocks do not hold this advantage of diversification

Professional Management and Efficiency:

As mutual funds are managed by the professional fund managers

who are specialized in their field, they carry out the research and
analysis work much more efficiently and naturally speculate more
correctly about the market trends of stock prices
and bond prices. In the other case, Individual Stock investment is
done directly by the investors who are in most cases common
men who don't have much knowledge about the stock
and bond markets.

NAME MUTUAL FUNDS OTHER INVESTMENTS

( BONDS, SHARES,
PROPERTY )
1 Professional Investment Lack of Professional
Management Investment
Management
2 Diversification in No diversification in
Investments Investments
3 Proper Investment skills Lack of Investment skills
by “Funds Manager”
4 Proper Investment No-Proper Investment
Planning Planning
 5 Convenience and Flexibility in Investment
Flexibility in Investing not Possible
6 Wide Range of Range of Investments is
Investments and very comparatively lower and
high scope of less scope of Investment
Investment decisions decisions
7 More information to Investor Information
Investors about Comparatively Less
Investment Plans
8 Life Cycle Planning Life Cycle Planning not
( Linking Investments possible
to future Individual and
Family needs )
9 Detailed Record Detailed Record Keeping
Keeping Service Service not Possible
10 High Liquidity in High Liquidity not
Investments possible in all
Investments

Mutual Fund Industry in India

Mutual Fund

A mutual fund is a professionally managed type of collective

investment scheme that pools money from many investors and
invests typically in investment securities (stocks, bonds, short-
term money market instruments etc. The mutual fund will have a
fund manager that trades (buys and sells) the fund's investments
in accordance with the fund's investment objective. Most funds
are overseen by a board of directors or trustees. The fund is
managed appropriately by its investment adviser and other
service organizations and vendors, all in the best interests of the
fund's investors

Elements of Mutual Fund

A mutual fund is set up by a sponsor. However, the sponsor

cannot run the fund directly. He has to set up two arms: a trust
and Asset Management Company. The trust is expected to assure
fair business practice, while the Asset Management Company
(AMC) manages the money. All mutual funds function under SEBI
(Mutual Fund) regulations 1996 except UTI.

The mutual fund collects money directly or through brokers from

investors. The money is invested in various instruments
depending on the objective of the scheme. The income generated
by selling securities or capital appreciation of these securities is
passed on to the investors in proportion to their investment in the
scheme. The investments are divided into units and the value of
the units will be reflected in the Net Asset Value or NAV of the
unit. NAV is the market value of the assets of the scheme minus
its liabilities. NAV is the net asset value of the scheme divided by
the number of units outstanding on the valuation date. For most
funds, the NAV is determined daily, after the close of trading on
some specified financial exchange. Mutual fund companies
provide daily net asset value of their schemes to their investors.
NAV is important, as it will determine the price at which you buy
or redeem the units of a scheme depending on the load structure
of the scheme.

Classification of mutual funds in India:

1. Open-ended funds: Investors can buy and sell units of open-

ended funds at NAV- related price every day. Open-end funds do
not have a fixed maturity and it is available for subscription every
day of the year. Open-end funds also offer liquidity to
investments, as one can sell units whenever there is need for
money.

2. Close-ended funds: These funds have a stipulated maturity

period, which may vary from 3 to 15 years. They are open for
subscription only during a specified period. Investors have the
option of investing in the scheme during initial public offer period
or buy or sell units of the scheme on the stock exchanges. Some
close-ended funds repurchase the units at NAV-related prices
periodically to provide an exit route to the investors.
Mutual Funds are divided into two types which are under:

1. Equity Funds: These are the types of funds where the capital
of the investor is invested in the stock market. Equity funds are
termed as high risk high return funds. Equity funds can be open
ended as well as closed ended. Equity funds also have a marginal
exposure to debt assets depending on the investment objective
of the fund manager. Safety of capital is not assured in equity
funds.

2. Debt Funds: These are funds where the safety of capital is

assured. The capital of an investor will be invested in the
government bonds, securities and current assets. A debt fund
gives an assured return to its investor. It’s a low risk return fund.
Debt funds can be open-ended as well as closed-ended. Debt
funds can have a marginal exposure in equity.

There are two options in equity and debt funds which are as
follows:

A. Dividend: An investor will be awarded dividends whenever

the fund declares it. Broadly it’s the income generated by the
mutual fund scheme on its investment distributed to the investor.
Dividend is not assured by an Asset Management Company and it
is linked closely to the stock and debt market. The investor can
choose either to encash or re-invest it in the same mutual fund
scheme.
B. Growth: In growth option the investor does not receive an
income. The growth option reflects the growth in investments
registered by the mutual funds scheme. The investor can either
redeem the entire amount or can do partial withdrawal.

There are different types of mutual fund schemes in both equity

and debt which are as follows:

1. Interval Funds: These funds combine the features of both

open-ended and closed-ended funds. They are open for sale and
repurchase at a predetermined period.

2. Growth Funds: They normally invest most of their corpus in

equities, as their objective is to provide capital appreciation over
the medium-to-long term. Growth schemes are ideal for investors
with appetite.

3. Income Funds: As the name suggests, the aim of these funds

is to provide regular steady income to investors. They generally
invest their corpus in fixed income securities like bonds,
corporate debentures and government securities. Income funds
are ideal for those looking for capital stability and regular income.

4. Balanced Funds: The objective of balanced funds is to

provide growth along with regular income. They invest their
corpus in both equities and fixed income securities as indicated in
the offer documents. Balanced funds are ideal for those looking
for income and moderate growth.
5. Money Market Funds: These funds strive to provide easy
liquidity, preservation of capital and modest income. MMF’s
generally invest their corpus in safer short-term instruments like
treasury bills, certificates of deposit, commercial paper and inter-
bank call money. Returns on these schemes hinges on the
interest rates prevailing in the market. MMF’s are ideal for
corporate and individual investors looking to park funds for short
period

6. Tax Saving Schemes: Tax saving schemes or equity-linked

savings schemes offer tax rebates to investors under section 88
of the Income Tax Act. They generally have lock-in period of three
years. They are ideal for investors looking to exploit tax rebates
as well as growth in investments.

7. Special Schemes: These schemes invest only in the

industries specified in the offer document. Examples of these
schemes are InfoTech funds, FMCG funds, Pharma funds etc...
These schemes are meant for aggressive and well-informed
investors.

8. Index Funds: Index Funds invest their corpus on the specified

index such as BSE sensex, NSE index, etc... As mentioned in the
offer document. They try to mime the composition of the index in
their portfolio. Not only are the shares, even their weight age
replicated. Index Funds are a passive investment strategy and
the fund manager has a limited role to play here. The NAV’s of
these funds move along with the index. They are trying to mimie
save for few points here and there. The difference is called
tracking error.

9. Sector Specific Schemes: These funds invest only in

specified sectors like an industry or a group of industries or
various segments like “A” Group shares or initial public offerings.

10. Fixed Maturity Plans:

A closed-end fund that invests in debt and money market

instruments of the same maturity as the stated maturity of the
plan. The focus of a fixed maturity plan is to provide a stream of
income through interest payments, while exposing the investor to
a lower level of risk

Features of mutual funds in India are:-

Affordability: Mutual Funds allow you to start with small

investments. For example, if you want you to buy a portfolio of
blue chips of modest size, you should at least have few lacks of
rupees. A mutual fund gives you the same portfolio for meager
investment of Rs: 1,000-5,000. A mutual fund can do that
because it collects money from many people and large corpus.

Professional Management: The major advantage of investing

in a mutual fund is that you get professional money manager for
a small fee. You can leave the investment decision to him and
only have to monitor the performance of the fund at regular
intervals.

Diversification: Considered the essential tool in risk

management, mutual fund makes it possible for even small
investors to diversify their portfolio. A mutual fund can effectively
diversify its portfolio because of the large corpus. However, a
small investor cannot have a well diversified portfolio because it
calls for large investment. For example, a modest portfolio of 10
blue-chip stocks calls for a few thousands.

Convenience: Mutual funds offer tailor-made solutions like

systematic investment plans and systematic withdrawal plans to
investors, which is very convenient to investors. Investors also do
not have to worry about the investment decisions or they do not
have to deal with their brokerage or depository, etc. for buying or
selling of securities. Mutual funds also offer specialized schemes
like retirement plan, children’s plan, and industry specific
schemes etc. to suit personal preference of investors. These
schemes also help small investors with asset allocation of their
corpus. It also saves a lot of paper work.

Cost Effectiveness; A small investor will find that a mutual fund

route is a cost effective method. AMC fee is normally 2.5% and
they also save a lot of transaction costs as they get concession
from brokerages. Also, they get the service of financial
professional for a very small fee. It they were to seek a financial
advisors help directly, they may end up paying more. Also, the
size of the corpus should be large to get the service of
investment experts, who offer portfolio management.

Liquidity: You can liquidate your investments anytime you want.

Most mutual funds dispatch checks for redemption proceeds
within two or three working days. You also do not have to pay any
penal interest in most cases. However, some schemes charge an
exit load.

Tax Breaks: You do not have to pay any taxes or dividends

issued by mutual funds. You also have the advantage of capital
gains taxation. Tax-saving schemes and pension schemes give
you the added advantage of benefits under section 88.
Investments up to Rs: 10,000 in them qualify for tax rebate.

Transparency: Mutual funds offer daily NAV’s of schemes, which

help you to monitor your investments on a regular basis. They
also send quarterly news letters, which give details of the
portfolio, performance of schemes against various benchmarks
etc. They are also well regulated and SEBI monitors their actions
closely.

The mutual fund pools money from investors and invest in shares
and income earned from the shares is distributed between the
account holders according to their share of holdings. Indian
mutual funds industry is sound and effective in case of investor’s
point of view.
 In recent years Indian mutual fund industry is witnessing a
rapid growth as a result of infrastructure development, increase
in personal financial assets, and rise in foreign participation. With
the growing risk appetite, rising income and increasing
awareness mutual funds in India are becoming a preferred
investment option compared to other investment options such as
fixed deposits and postal savings which are considered safe but
giving comparatively low return destinations.

Taxation on Mutual Funds

Income received from units of a mutual fund registered with the

Securities and Exchange Board of India is exempt in the hands of
the unit holder. A debt-oriented mutual fund is liable to pay
income distribution tax of 14.1625% and 22.66% on the
distribution of income to individual / Hindu Undivided Fund and
other persons, respectively. In the case of “money market mutual
funds” and “liquid mutual funds” (as defined under SEBI
regulations), the income distribution tax is 28.325% across all
categories of investors. Long-term capital gains arising on the
transfer of units of an ‘equity oriented’ mutual fund is exempt
from income tax, if the Securities Transaction Tax (STT) is paid on
this transaction i.e., the transfer of such units should be made
through a recognized stock exchange in India (or such units
should be repurchased by the relevant mutual fund). ‘Equity
oriented’ mutual fund means a fund where the investible corpus
is invested by way of equity shares in Indian companies to the
extent of more than 65% of the total proceeds of the fund. Short-
term capital gains arising on such transactions are taxable at a
base rate of 15% (increased by surcharge as applicable,
education cess of 2% and secondary and higher education cess of
1%).
INVESTMENT STRATEGIES
1. Systematic Investment Plan: under this a fixed sum is
invested each month on a
fixed date of a month. Payment is made through post dated
cheques or direct debit
facilities. The investor gets fewer units when the NAV is high and
more units when the
NAV is low. This is called as the benefit of Rupee Cost Averaging
(RCA)
2. Systematic Transfer Plan: under this an investor invest in
debt oriented fund and
give instructions to transfer a fixed sum, at a fixed interval, to an
equity scheme of the
same mutual fund.
3. Systematic Withdrawal Plan: if someone wishes to
withdraw from a mutual fund
then he can withdraw a fixed amount each month.
COMPANY PROFILE
Welcome to Min Max Investment Advisors Foundation, a house of
Investment advisory services in the field of Indian Capital
markets (NSE/BSE). A group of unique research analysts who
were with reputed stock broking houses are joined together and
started Min Max in year 2000 with an intention to Minimize Risk
and Maximize Return by extensive research work and modern
investment strategies. Min Max strongly believes that Wealth
Creation is possible only by Minimizing Risk. Most of Advisors in
Indian Context recommend stocks to BUY ABOVE or SELL BELOW
kind of Advisory which is not possible for the Investors/Traders to
continuously monitor the stock prices. Apart from they provide 2
to 3 target prices and do not advice where to exit. If any
recommendation triggers stop loss once it reach to 1st/2nd
target, they still consider profit in the recommendation even
though they are not advised to exit/profit book at 1st/2nd target.

Min Max Foundation is committed for

highly transparent and effective advisory services with clear
entry and exit messages. Providing performance report for the
Recommendations at the end is a part in Min Max Dairy.
As a project, company asked to sell the selected products of “SBI
MUTUAL FUNDS”.

Through the company marketing strategies, the strategies are as

follows.

TELE-MARKETING

Business-to-business telemarketing is essentially marketing

conducted via the medium of the telephone.

"Marketing" in itself is the act of bringing a service or product (or

combination thereof) to the intended market or target group and
creating a need for it among those we want as clients.

DIRECT MARKETING

Direct marketing is a form of advertising that reaches its

audience without using traditional formal channels of advertising,
such as TV, newspapers or radio. Businesses communicate
straight to the consumer with advertising techniques such as
fliers, catalogue distribution, promotional letters, and street
advertising.
THE PRODUCTS ARE:

 TAX GAIN

 PSU FUND

 BLUE CHIP FUND

INTRODUCTION TO SBI MUTUAL FUND

SBI Funds Management Pvt. Ltd. is one of the leading fund houses in the
country with an investor base of over 4.6 million and over 20 years of rich
experience in fund management consistently delivering value to its
investors.
SBI Funds Management Pvt. Ltd. is a joint venture between 'The State Bank
of
India' one of India's largest banking enterprises, and Societe Generale Asset
Management (France), one of the world's leading fund management
companies
that manages over US$ 500 Billion worldwide.
Today the fund house manages over Rs 28500 crores of assets and has a
diverse
profile of investors actively parking their investments across 36 active
schemes.
In 20 years of operation, the fund has launched 38 schemes and successfully
redeemed 15 of them, and in the process, has rewarded our investors with
consistent returns. Schemes of the Mutual Fund have time after time
outperformed benchmark indices, honored us with 15 awards of
performance
and have emerged as the preferred investment for millions of investors. The
trust
reposed on us by over 4.6 million investors is a genuine tribute to our
expertise
in fund management.
SBI Funds Management Pvt. Ltd. serves its vast family of investors through a
network of over 130 points of acceptance, 28 Investor Service Centres, 46
Investor Service Desks and 56 District Organizers.SBI Mutual is the first
banksponsored
fund to launch an offshore fund – Resurgent India Opportunities Fund.
Growth through innovation and stable investment policies is the SBI MF
credo.
PRODUCTS OF SBI MUTUAL FUND
Equity schemes
The investments of these schemes will predominantly be in the
stock markets
and endeavor will be to provide investors the opportunity to
benefit from the
higher returns which stock markets can provide. However they
are also exposed
to the volatility and attendant risks of stock markets and hence
should be
chosen only by such investors who have high risk taking
capacities and are
willing to think long term. Equity Funds include diversified Equity
Funds,
Sectoral Funds and Index Funds. Diversified Equity Funds invest
in various
stocks across different sectors while sectoral funds which are
specialized Equity
Funds restrict their investments only to shares of a particular
sector and hence,
are riskier than Diversified Equity Funds. Index Funds invest
passively only in
the stocks of a particular index and the performance of such
funds move with
the movements of the index.
 Magnum COMMA Fund
 Magnum Equity Fund
 Magnum Global Fund
 Magnum Index Fund
 Magnum Midcap Fund
 Magnum Multicap Fund
 Magnum Multiplier plus 1993
 Magnum Sectoral Funds Umbrella
 MSFU- Emerging Business Fund
 MSFU- IT Fund
 MSFU- Pharma Fund
 MSFU- Contra Fund
 MSFU- FMCG Fund
 SBI Arbitrage Opportunities Fund
 SBI Blue chip Fund
 SBI Infrastructure Fund - Series I
 SBI Magnum Taxgain Scheme 1993
 SBI ONE India Fund
 SBI TAX ADVANTAGE FUND - SERIES I
Debt schemes
Debt Funds invest only in debt instruments such as Corporate
Bonds,
Government Securities and Money Market instruments either
completely
avoiding any investments in the stock markets as in Income
Funds or Gilt Funds
or having a small exposure to equities as in Monthly Income Plans
or Children's
Plan. Hence they are safer than equity funds. At the same time
the expected
returns from debt funds would be lower. Such investments are
advisable for the
risk-averse investor and as a part of the investment portfolio for
other investors.
Magnum Children’s benefit Plan
Magnum Gilt Fund
Magnum Income Fund
Magnum Insta Cash Fund
Magnum Income Fund- Floating Rate Plan
Magnum Income Plus Fund
Magnum Insta Cash Fund -Liquid Floater Plan
Magnum Monthly Income Plan
Magnum Monthly Income Plan - Floater
Magnum NRI Investment Fund
SBI Premier Liquid Fund
BALANCED SCHEMES
Magnum Balanced Fund invests in a mix of equity and debt
investments. Hence
they are less risky than equity funds, but at the same time
provide
commensurately lower returns. They provide a good investment
opportunity to
investors who do not wish to be completely exposed to equity
markets, but is
looking for higher returns than those provided by debt funds.
Magnum Balanced Fund
OBJECTIVES OF THE STUDY
1. To find out the Preferences of the investors for Asset

Management
Company.
2. To know the Preferences for the portfolios.

3. To know why one has invested or not invested in SBI Mutual

fund
4. To find out the most preferred channel.

5. To find out what should do to boost Mutual Fund

Scope of the study
A big boom has been witnessed in Mutual Fund Industry in resent
times. A large
Number of new players have entered the market and trying to
gain market share in this
Rapidly improving market.
The research was carried on in Hyderabad. I had been sent at one
of the branch of min max financial advisory foundation
Where I completed my Project work. I surveyed on my
Project Topic “A study and marketing strategies of mutual funds
by min max financial advisory foundation “on visiting Hyderabad
branch
The study will help to know the preferences of the customers,
which company,
portfolio, mode of investment, option for getting return and so on
they prefer. This
project report may help the company to make further planning
and strategy.
 Chapter – 4
Research Methodology
RESEARCH METHODOLOGY
This report is based on primary as well secondary data, however
primary data
collection was given more importance since it is overhearing
factor in attitude studies.
One of the most important users of research methodology is that
it helps in identifying
the problem, collecting, analyzing the required information data
and providing an
alternative solution to the problem .It also helps in collecting the
vital information that
is required by the top management to assist them for the better
decision making both
day to day decision and critical ones.
Data sources:
Research is totally based on primary data. Secondary data can be
used only for the
reference. Research has been done by primary data collection,
and primary data has
been collected by interacting with various people. The secondary
data has been
collected through various journals and websites.
Duration of Study:
Sampling:
 Sampling procedure:
The sample was selected of them who are the customers/visitors
ofmin max financial advisory foundation,Hyderabad branch
, 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.
 Sample size:
The sample size of my project is limited to 80 people only. In
which I met 50 people through tele marketing and 30 through
direct marketing.
 Sample design:
Data has been presented with the help of bar graph, pie charts,
line graphs etc.
Limitation:
 Some of the persons were not so responsive.
 Possibility of error in data collection because many of investors
may have not
given actual answers of my questionnaire.
 Sample size is limited to 80 visitors of min max financial
advisory foundation
Branch, Hyderabad .
size may not adequately represent the whole market.
 Some respondents were reluctant to divulge personal
information which can
affect the validity of all responses.
 The research is confined to a certain part of Hyderabad
DATA ANALYSIS AND
INTERPRTATIONS
 DIFFERENT AGE GROUPS

AGE <=30 31-35 36-40 41-45 46-50

GROUP

NO.OF 15 20 25 13 7
INVESTORS
MARKETING STRATEGIES USED
 NUMBER OF INVESTORS ARE RESPONDS THROUGH DIFFERENT
MARKETING STRATEGIES

INTERPRETATION:

Through tele marketing the 40% people are turned up. Through direct marketing
60% people are turned up.
 OCCUPATION

INTERPRTATIONS:

In Occupation group out of 80 sample size, 37.5% are software employees, 25% are
real estate persons, 12.5% are private employees, 6.25% are doctors and 18.75%
are business men
 INVESTOR GRAPH WITH AGE AND OCCUPATION

INTERPRETATION:

In age and occupation group 35% are software employees and there are in the age
of less than 30,25% are real estate employees they are in the age of 31-35,25% are
in the different business they are in the age of 36-40,10% people

Are in the age of 31-35 and 5% are doctors in the age group of 41-45.
MONTHLY FAMILY INCOMES OF THE INVESTORS OF
HYDERABAD

<=20,000 10
20,001-30,000 15
30,001-45000 35
45,001-60,000 13
60,001-1,00,000 7
 INVESTORS INTERESTED IN MUTUAL FUNDS

20,001-30,000 7
30,001-45,000 9
45,001-60,000 4

INTERPRETATION:

In the income group of the investors of Hyderabad, out of 20 investors, income

group of 45% investors that is the maximum investors are in monthly income group
Rs.30, 001-45000, second one i.e, 35% investors are in monthly income of 20,001-
30,000 and minimum investors i.e., 20% are in the monthly 45,001-60,000.
DEAR SIR/MADAM

I am G V K GIRISH, pursuing PGDM at institute of public Enterprise, Hyderabad. I am

doing a survey on Mutual funds, as a part of my project. It would a great help to me
if you could fill this questionnaire.
 Case Processing Summary

N % 1 2 3 4 5
Cases Valid STATEMENTS
SA A N D SD
50 100.0
1) I CHOOSE A MUTUAL FUND THAT
FULFILS
ExcludeALL MY REQUIREMENTS
0 .0 IN
TERMS
d(a) OF RETURNS
2) I USUALLY CONSULT MY FRIENDS
AND FAMILY MEMBERS
Total 50 ABOUT
100.0
MARKET CONDITIONS
3) PRICE IS A PREDOMINANT FACTOR
WHILE INVESTING IN MUTUAL
FUNDS
4) A MUTUAL FUND WHICH IS PRICED
WELL USUALLY GIVES THE BEST
RETURNS

5) PRICE IS A FACTOR THAT

DETERMINES MY PERFERENCE FOR
ONE MUTUAL FUNDS OVER THE
OTHER
6) A MUTUAL FUND WHICH HAS A
PROVEN PERFORMANCE RECORD IS
WHAT I LOOK FOR BEFORE
INVESTING IN IT
7) I TRUST A MUTUAL FUND ONLY
WHEN IT HAS PERFORMED WELL
BEFORE
8) FUND MANAGER PLAY AN
IMPORTANT ROLE IN GIVING
INFORMATION ABOUT MARKET
CONDITIONS OF MUTUAL FUNDS
9) I WOULD PREFER SBI MUTUAL
FUNDS COMPARED TO ALL OTHER
MUTUAL FUNDS OPTION
AVAILABLE IN THE MARKET
10) I ALWAYS ANALYSE THE MARKET
CONDTION BEFORE INVESTING
11) MUTUAL FUND IS A WEALTH
MAXIMIZATION FUNCTION
12) MUTUAL FUNDS HELP ME TO SAVE
TAXES
A List wise deletion based on all variables in the procedure.

Reliability Statistics

Cranach’s N of
Alpha Items

.540 2

Interpretation:

The reliability scale for Decision is 0.54. This implies that the items considered for
Decision are not consistent. This situation occurred because of various reasons.
They are

1. Less sample size.

2. Extraneous variables.
3. Less no. of items considered for measuring the variable.
4. Probably Measurement Error

Case Processing Summary

N %

Cases Valid 50 100.0

 Exclude
0 .0
d(a)

Total 50 100.0

A List wise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's N of
Alpha Items

.810 3

INTERPERTATION:

1) Reliability scale for Market is 0.634, which is greater than 0.6.

2) This implies that the items considered for Market are consistent.
3) Thus the Market offered for mutual fund is quite reliable to study.

Case Processing Summary

N %
Cases Valid 50 100.0

Exclude
0 .0
d(a)

Total 50 100.0

A List wise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's N of
Alpha Items

.634 4

INTERPRETATION:

1) Reliability scale for Price is 0.634, which is greater than 0.6.

2) This implies that the items considered for Price are consistent.
3) Thus the Price offered for mutual fund is quite reliable to study.

Case Processing Summary

N %

Cases Valid 50 100.0

Exclude
0 .0
d(a)

Total 50 100.0

A List wise deletion based on all variables in the procedure.

Reliability Statistics
 Cranach’s N of
Alpha Items

.422 3

INTERPRETATION:

The reliability scale of Performance is 0.422. This implies that the items considered
for Performance are not consistent. This situation is because of various reasons.
They are

1. Less sample size.

2. Extraneous variables.

3. Less no. of items considered for measuring the variable.

4. Probably Measurement Error

Variables Entered/Removed (b)

Mode Variables Variables

l Entered Removed Method

1 Mean
Market,
Mean
Price, . Enter
Mean
Performa
nce(a)
An All requested variables entered.

B Dependent Variable: Mean Decision

Model Summary

Std. Error
Mode R Adjusted of the
l R Square R Square Estimate

1 .769(a) .502 .424 .33420

a Predictors: (Constant), Mean Market, Mean Price, Mean Performance

INTERPRETATION:

Model Summary explains the goodness of the regression table. From the Above
table the R Square is .504 and Adjusted R square value is .424 i.e. The
Independent Variables Mean Price, Mean Performance and Mean Market can predict the
Dependent Variable Mean Decision to an extent of 50% and by removing all the
errors The IV’s can predict DV up to 42%

ANOVA (b)

Mode Sum of Mean

l Squares df Square F Sig.

1 Regressio
1.778 4 .445 4.303 .038(a)
n

Residual 5.700 46 .341

Total 7.478 50

A Predictors: (Constant), Mean Market, Mean Price, Mean Performance

B Dependent Variable: Mean Decision

INTERPRTATION:

1) From the above Table we can interpret that the F significance Value is less than 0.05
Which implies the regression model is a good fit and the Predictors i.e. the Independent Va
Significant enough to predict the Dependent Variable.

2) Residual is the error content in the model. The value of Residual is 5.7

Coefficients (a)

Standardize
Unstandardized d
Coefficients Coefficients

Mode Std.
l B Error Beta t Sig.

1 (Constant) 2.961 .610 4.852 .000

Mean Price .280 .137 .297 2.041 .047

Mean .051 .153 .048 .833 .141

 Performance

MeanMarket .150 .147 .148 1.017 .015

A Dependent Variable: Mean Decision

INTERPRETION:

1) Coefficients table indicates the variable significance in terms of predicting

the dependent variable in the model.
2) The Significance of T value explains those variables whose values are
below 0.1 are enough to predict the dependent variable.
3) From the above table it is evident that Price and Market have a greater
impact on people’s preferences.
4) The Beta value from the above table explains the slope of the Regression
Line.
5) . We consider the standardized Beta value because it gives the information
about to what extent the Independent Variables are able to predict the
Dependent variable.
FINDINGS AND CONCLUSION
 Findings

1) In Hyderabad in the age group of <=30 years are more in numbers.

2) The second most investors are in the age group of 31-35years
3) The least investors are in the age group of 41-45.
4) In occupation group most of the investors were software employees, the second
most were real estate and business people and least were the doctors.
5) In family income group, between 30,001-45000 were more in number, the
second most were in the income group of 20,001-30,000 and least were in the
income group of 45001-60,000.
6) In “MIN MAX INVESTMENT ADVISORS FOUNDATION” were I did my sip they
will follow only two strategies to sell the mutual funds i.e., tele marketing and
direct marketing.
7) As a part of sip they asked me sell mutual funds of SBI through tele marketing
and direct marketing. I did more tele marketing than a direct marketing
8) My study revealed that they are getting 60% client through direct marketing and
40% through telemarketing.
 CONCLUSION

Mutual Funds have become extremely popular over the last 20 years. What
was once just another obscure financial instrument is now a part of our daily
lives. More than 30 million people, or one half of the households in India,
invest in mutual funds. That means that, in the India, millions of rupees are
invested in mutual funds.

In fact, too many people, investing means buying mutual funds. After all,
its common knowledge that investing in mutual funds is better than simply
letting your cash waste away in a savings account, but, for most people,
that's where the understanding of funds ends. It doesn't help that mutual
fund salespeople speak a strange language that is interspersed with jargon
that many investors don't understand.

To accomplish the objectives a sample of 80 is considered, who belong to

the different genres’ of society. The marketing is done through tele and
direct marketing. It is noticed that around 40% of sample was from
telemarketing and 60% through direct marketing. This explains that people
believe in mutual funds as the best part about mutual funds is they provide
guaranteed returns. And people who have shown interest for buying mutual
funds are software side. As the market is always fluctuating in IT, people
would certainly depend on mutual funds second most investors are real
estate and business and least investors are doctors and the age group <=30
are in more in number and the second most investors groups are in the age
of 31-35 and monthly family income group of 30,001-45000 are more in
number and second most investor group are 20,001-30,000. The research
was done with the help of instrument i.e. questionnaire which is validated
using SPSS tool.
SUGGESTIONS
 Suggestions

The most vital problem spotted is of ignorance. Investors should

bemade 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.
 Mutual funds offer a lot of benefit which no other single option
could offer. But most of the people are not even aware of what
actually a mutual fund is? They only see it as just another
Investment option. So the advisors should try to change their
mindsets. The advisors should target for more and more young
investors. Young investors as well as persons at the height of
their
career would like to go for advisors due to lack of expertise and
time.
 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.
 Before making any investment Financial Advisors should first

enquire about the risk tolerance of the investors/customers, their

need
and time (how long they want to invest). By considering these
three
things they can take the customers into consideration.
 Younger people aged under 35 will be a key new customer
group
into the future, so making greater efforts with younger customers
who show some interest in investing should pay off.
 Customers with graduate level education are easier to sell to
and
there is a large untapped market there. To succeed however,
advisors
must provide sound advice and high quality.
 Systematic Investment Plan (SIP) is one the innovative
products
launched by Assets Management companies very recently in the
industry. SIP is easy for monthly salaried person as it provides the
facility of do the investment in EMI. Though most of the prospects
and potential investors are not aware about the SIP. There is a
large
scope for the companies to tap the salaried persons.
 Bibliography

• NEWS PAPERS
• OUTLOOK MONEY
• MUTUAL FUND HAND BOOK
• FACT SHEET AND STATEMENT
• WWW.SBIMF.COM
• WWW.MONEYCONTROL.COM
• WWW.AMFIINDIA.COM
• WWW.ONLINERESEARCH ONLINE.COM
• WWW. MUTUALFUNDSINDIA.COM