Industry Internship and Report on DEPARTMENT of MANAGEMENT

Industry Internship and Report on

“A STUDY ON CUSTOMER PERCEPTION TOWARDS MUTUAL FUNDS WITH PARTICULAR REFERENCE TO VENTURA SECURITIES LTD”

HIMANSHU KUMAR MANDAL

1NZ16MBA16

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES NEW HORIZON COLLEGE OF ENGINEERING, OUTER RING ROAD, MARATHALLI, BANGALORE

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE DR. A R SAINATH MR. MOHAN SENIOR ASSISTANT PROFESSOR HR MANAGER

2016-18

CERTIFICATE

This is to certify that Himanshu Kumar Mandal bearing USN 1NZ16MBA16, is a bonafide student of Master of Business Administration course of the Institute, Batch 2016-18, autonomous program, affiliated to Visvesvaraya Technological University, Belgaum. Internship report on “A STUDY ON CUSTOMER PERCEPTION TOWARDS MUTUAL FUNDS WITH PARTICULAR REFERENCE TO VENTURA SECURITIES LTD” is prepared by her under the guidance of Dr. A R Sainath, in partial fulfillment of requirements for the award of the degree of Master of Business Administration of Visvesvaraya Technological University, Belgaum Karnataka.

Signature of Internal Guide Signature of HOD Signature of Principal

DECLARATION I, Himanshu Kumar Mandal, hereby declare that the Internship report entitled “A STUDY ON CUSTOMER PERCEPTION TOWARDS MUTUAL FUNDS WITH PARTICULAR REFERENCE TO VENTURA SECURITIES LTD” with reference to “Ventura Securities Ltd, Bangalore” prepared by me under the guidance of Dr. A R Sainath, Senior Assistant Professor of M.B.A Department, New Horizon College of Engineering and external assistance by Mr. Mohan, Human Resource Manager, Ventura Securities Ltd.

I also declare that this Internship work is towards the partial fulfillment of the university regulations for the award of the degree of Master of Business Administration by Visvesvaraya Technological University, Belgaum.

I have undergone a summer project for a period of Twelve weeks. I further declare that this project is based on the original study undertaken by me and has not been submitted for the award of a degree/diploma from any other University / Institution.

Signature of Student Place: Bangalore, Karnataka Date

ACKNOWLEDGEMENT

It is a genuine pleasure to express my deep sense of thanks and gratitude to the Principal of New Horizon College of Engineering, Dr. Manjunatha for providing us with a wonderful platform. I owe a deep sense of gratitude to Dr. Sheelan Misra, Head of Department of Management Studies for her support and encouragement. I am extremely thankful to Prof. A R Sainath, Internal guide who has guided and corrected me in all the possible ways to get the best results. His timely suggestions and enthusiasm has helped me complete the project report. I profusely thank Mr. Mohan, who helped me explore the real corporate world, without whom I would not have been able to complete the study. It is my privilege to thank my family and friends who have constantly encouraged me throughout my study period and for their co-operation.

Himanshu Kumar Mandal 1NZ16MBA16

TABLE OF CONTENTS

Executive Summary Chapter 1. Theoretical Background of the Study 1-21 Chapter 2. Industry and Company Profile 22-32 Chapter 3. Methodology 33-37 Chapter 4. Data Analysis and interpretation 38-51 Chapter 5. Summary of Findings, Suggestion and Conclusion 52-54 Chapter 6: Learning Experience 55 Bibliography Annexure

LIST OF TABLES

Diagram Particulars Page No. No.

4.1 Table showing the categories of occupation 38

4.2 Table showing annual income 39

4.3 Table showing the investment decisions 40

4.4 Table showing the factors that investors prioritize in 41 an investment

4.5 Table showing awareness about mutual funds 42

4.6 Table showing information investors get about mutual 43 fund 4.7 Table showing the investors of mutual funds 44

4.8 Table showing reasons of not investing in mutual funds 45

4.9 Table showing the duration of investors investing in 46 mutual funds

4.10 Table showing the preference of mode of investment 47

4.11 Table showing about investment in different mutual 48 fund schemes

4.12 Table showing the advantages that investors look for 49 in mutual funds

4.13 Table showing about the awareness of share market 50 and its functions 4.14 Table showing awareness of investors about their 51 investment of money in share market

LIST OF DIAGRAMS

Diagram No. Particulars Page No.

4.1 Diagram showing the categories of occupation 38

4.2 Diagram showing annual income 39

4.3 Diagram showing the investment decisions 40

4.4 Diagram showing the factors that investors prioritize 41 in an investment

4.5 Diagram showing awareness about mutual funds 42

4.6 Diagram showing information investors get about 43 mutual fund 4.7 Diagram showing the investors of mutual funds 44

4.8 Diagram showing reasons of not investing in mutual 45 funds 4.9 Diagram showing the duration of investors investing 46 in mutual funds

4.10 Diagram showing the preference of mode of 47 investment

4.11 Diagram showing about investment in different 48 mutual fund schemes

4.12 Diagram showing the advantages that investors look 49 for in mutual funds

4.13 Diagram showing about the awareness of share 50 market and its functions 4.14 Diagram showing awareness of investors about their 51 investment of money in share market

BIBLIOGRAPHY

1. Simran Saini, Dr. Bimal Anjum, Ramandeep Saini, “Investors’ awareness and perception about mutual funds”, International Journal of Multidisciplinary Research, vol. 1, 1, PP. 14-29.

2. M. Kalaiselvi, “A study on investors perception towards mutual fund investments (with special reference to pollachi town)”, International Journal of Social Relevance & Concern, vol. 4, 3, PP. 43-48.

3. R Padmaraja, “A study of consumer behaviour towards mutual funds with special reference to III prudential mutual funds, Vijayawada”, International journal of management research and business strategy, vol. 2, 3, PP. 30-41.

4. Dr. Rajesh Kumar, Nitin Goel, “An Empirical Study On Investors’ Perception Towards Mutual Funds”, International journal of management in research and business strategy, vol. 1, 4, PP. 49-52.

5. Priti Mane, “A Study of Investors Perception towards Mutual Funds in the City of Aurangabad”, The SIJ Transactions on Industrial, Financial & Business Management, vol. 4, 2, PP. 30-38.

6. Khan AH, Agarwal SK, “A Study of Investors Perception towards Mutual Funds in the City of Delhi and Meerut”, Journal of Business & Financial Affairs, vol. 6, 4, PP. 2-4.

7. Byju. K, “A study on awareness of investment opportunities in mutual funds – special Significance on SIP”, International Conference on "Research avenues in Social Science”, vol. 1, 3, PP. 255-264.

8. Nidhi Walia, “An Analysis of Investor’s Risk Perception towards Mutual Funds Services”, International journal of business and management, vol. 4, 5, PP. 106-120.

ANEXXURE

QUESTIONNAIRE

Name:

Age:

1. You belong to which one of the following categories?

a) Govt. Employee b) Private Firm Employee c) Business Person d) Agriculturist e) Others

2. Your annual income is in the range of? a) Below 2 lakhs b) Between 2-5 lakhs c) Between 5-10 lakhs d) Above Rs. 5 lakhs

3. Where do you invest your savings? a) Savings Bank b) Fixed Deposit c) Mutual Funds d) Insurance e) Others

4. What are the factors to which you give priority when you invest? a) Safety b) High Return c) Liquidity d) Low Risk

5. Do you know about mutual funds?

a) Yes b) No

6. How do you come to know about mutual funds?

a) Advertisements b) Friends/Relatives c) Banks d) Financial Consultants e) Others

7. Are you an investor in mutual funds?

a) Yes b) No

8. If no, they why?

a) high risk b) less liquidity c) no safety

9. Since how many years you are investing in Mutual Fund Schemes? a) One year b) Two Years c) Three Years d) Four Years e) Five Years f) More than five years

10. In mutual funds, which mode of investment will you prefer?

a) One time investment b) Systematic investment plan

11. In which mutual fund scheme you have invested?

a) Equity funds b) Debt funds c) ELSS d) Growth funds e) Income funds

12. What advantages do you find when you invest in Mutual Funds?

a) Professional Management b) Diversification c) Returns d) Liquidity e) Tax benefits

13. Do you have knowledge about the share market & its functioning?

a) Yes b) No

14. Are you aware of the fact that Mutual Fund Companies (AMC’s) will invest your money in Share Market

a) Yes b) No

EXECUTIVE SUMMARY

Mutual funds pool money from different investors and invest in different investment sources like stocks, shares, bonds etc. A professional fund manager manages these and returns are paid in form of dividends. Some schemes assured fixed returns that are less in risk and some offer dividends based on the market fluctuations and prices. Mutual funds have to be subscribed in units and the purchase or sale is dependent on NAV (Net Asset Value).

The growth of mutual funds has been phenomenal. The mobilization of funds by mutual funds has been on the rise since 1964. When mutual fund market was thrown open to the private sector in 1993, the corpus of mutual fund in India has swelled tremendously. It presents an introduction to the thesis and throws light in the introduction on mutual fund awareness of the customers and its current scenario. Further the chapter gives an overview of mutual funds and also deals with the research work done in the field of the different constructs identified for the present study. The research done in the field of finance with a particular reference to the investment of mutual fund. The main objective of the study is to know the perception of customers towards mutual funds. Convenience sampling has been used to collect data and 110 respondents are taken from the city Bangalore. A structured questionnaire was given to 110 respondents which has close-ended questions.

The study is divided into six chapters. The first chapter is theoretical background of the particular study. The second chapter deals with industry profile and company profile. Research methodology is dealt with in the third chapter. The fourth chapter deals with data analysis and interpretation of the respondents and perception towards mutual funds. The fifth chapter gives the conclusion of the Study and gives suggestions based on the findings. At last sixth chapter talks about learning experience in the company.

At last it mentioned the references from where the data has been collected and the annexure which contains questionnaire and the detailed report is enclosed here with.

CHAPTER 1 THEORETICAL BACKGROUND

1.1 MUTUAL FUNDS IN INDIA

In India mutual funds are separated in to balanced funds, Income fund, Growth funds, Sector funds, etc. Equity funds basically comprise of common shares and stocks of companies recorded within the stock trades. They are considered unsafe but are likely to give higher return within the longer run. Fixed income funds: Too known as low risk funds, these stores basically contribute in government and corporate securities (debentures) with settled sum of returns, which are for the most part direct. Balanced funds are essentially a combination of both bonds and stocks, which includes direct to little risk. Cross breed stores incorporate other venture classes in their portfolio like gold separated from equity and debt. Since April 2011, the common support industry clocked a 3% development in its normal Resources beneath Administration (AUM) to touch Rs. 7.53 lakh cr. in Admirable (month-on-month) on the back of higher inflows into fluid and income funds. (Crisil Report-September 2012). Mutual funds have preferences compared to coordinate contributing in individual securities. These incorporate expanded enhancement, every day liquidity, proficient speculation administration, capacity to take an interest in speculations that will be accessible as it were to bigger investors, benefit and comfort, government oversight and ease of comparison. Mutual funds have impediments as well, which incorporate expenses, less control over timing of acknowledgment of picks up, less unsurprising wage and no opportunity to customize. Best 10 common stores in India are ICICI Prudential Beat 100, Escorts Pay Arrange- Gr, Dependence RSF – Adjusted, DSP Dark Shake MIP Finance, Escorts Fluid Arrange – Gr, Dependence Value Connected S, most Offers NASDAQ 100, Baroda Pioneer Plated Finance, and IDFC Clever Finance – Development. SEBI rules Relating to Shared Reserves: SEBI is the administrative specialist of MFs. SEBI has the taking after wide rules relating to common reserves: They are MFs ought to be shaped as a believe beneath. MFs need to set up a Board of Trustees and Trustee Companies. They should also have their Board of Directors. The net worth of the AMCs ought to be at slightest Rs. 5 cr. AMCs and Trustees of a MF ought to be two partitioned and particular lawful substances. The AMC or any of its companies cannot act as directors for any other finance. AMCs got to get the endorsement of SEBI for its Articles and Notice of Affiliation. All MF plans ought to be enrolled with SEBI. MFs ought to disperse least of 90% of their benefits among the financial specialists.

1.1.1 MUTUAL FUND

A mutual fund is a pool of money from numerous investors who wish to save or make money just like you. Investing in a mutual fund can be a lot easier than buying and selling individual stocks and bonds on your own. Investors can sell their shares when they want.

Mutual fund is an investment company that pools money from shareholders and invests in variety of securities, such as stocks, bonds and money market instruments. Most open-end mutual funds stand ready to buy back (redeem) its shares at their current net asset value which depends on the total market value of the fund’s investment portfolio at the time of redemption. Most open-end mutual funds continuously offer new shares to investors.

Also known as open-end investment company, to differentiate it from close-end Investment Company. Mutual funds invest pooled cash of many investors to meet the fund’s stated investment objective. Mutual funds stand ready to sell and redeem their shares at any time at the fund’s current net asset value: total fund assets divided by shares outstanding.

Mutual fund is the foremost well known speculation road for common open or retail investors. These are straightforward to get it and simple to contribute compared to other investment choices accessible within the financial markets. A Common Finance pools the reserves contributed by a number of speculators who may share a common profile on their speculation choice which fundamentally concerns with chance taking capacity and return anticipated and the estimate of speculation is additionally comparatively littler. The essential concerns of the small investors the security of their investment.

Money thus accumulated is at that point put assets into capital showcase disobedient, for case, offers, debentures and distinctive securities. These funds are like bushel where each bushel holds a certain sort of disobedient or a mix of numerous disobedient like stocks, bonds or a combination of stocks and bonds for one portfolio.

The wage earned through these wanders and the capital gratefulness recognized is shared by its unit holders in degree to the amount of units had by them Hence a Mutual Fund is most appropriate speculation for the common man because it offers an opportunity to contribute in a expanded, professionally overseen wicker container of securities at a moderately moo fetched. The esteem of venture is calculated on a day to day premise and the same esteem is detailed utilizing Net Resource Esteem as pronounced by the fund house. This NAV can change due to alter within the esteem of bond and value showcase and thus a broadened portfolio would

2 adjust out the chance where a few stocks may be doing very well and a few not so well. The finance supervisors make modification within the portfolio time to time to secure higher return as compare to the other money related resources.

In simple words, mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.

Investments in securities are spread over a wide cross-section of businesses and divisions and hence the hazard is decreased. Enhancement decreases the chance since all stocks may not move within the same course within the same extent at the same time. Mutual fund issues units to the financial specialists in agreement with quantum of cash contributed by them. Investors of common reserves are known as unit holders.

The profits or losses are shared by investors in extent to their investments. The mutual funds regularly come out with number of plans with distinctive venture goals which are propelled from time to time. In India, A mutual fund is required to be enlisted with Securities and Trade Board of India (SEBI) which controls securities markets some time recently it can collect reserves from the open.

In brief, a mutual fund could be a common pool of cash in to which financial specialists with common venture objective put their commitments that are to be contributed in agreement with the expressed speculation objective of the scheme. The speculation chief would contribute the cash collected from the financial specialist in to resources that are defined/permitted by the expressed objective of the plot. For illustration, a value finance would contribute value and value related rebellious and a debt fund would contribute in bonds, debentures, gilts etc. Common venture could be a appropriate venture for common man because it offers an opportunity to contribute in a broadened, professionally overseen wicker container of securities at a generally low fetched.

1.1.2 Risk involved in investing in mutual funds

• The biggest risk of investing in a mutual fund is one of underperformance. When an investor decides to invest in a particular asset class, he typically expects to get the return that the benchmark of the asset provides.

• For example, if someone is investing in large-cap equity stocks, he would expect to make at least as much return (with similar risk) as a benchmark index, say Sensex or Nifty. • Mutual funds try to maximise the returns on the funds invested through them -but all of the funds cannot succeed an outperforming each other or the benchmark. Hence, some of them under-perform the benchmark.

• Similarly, the cost of investing in a mutual fund (discussed below), eats in the returns. In high return years (like the last few years, where returns have been in the high 30% in equity, 2% costs may not make a material impact: however, at more moderate or negative returns, costs can be a big inch).

• The other risk with mutual funds is 'style drift.' If you invest in a large cap fund and it begins to invest in mid cap stocks, or if you invest in a long term debt fund but it starts to invest a greater proportion in cash instruments, you might not the type of risk-return reward that you have been expecting

• Change of the fund manager can also introduce an element of risk into your portfolio. There is a wide debate as to whether investing is a science or an art: most authorities concede that it is a blend of the two. If so, the artist may contribute to the success of the returns.

• Hence, if you invest based on the ability of a fund manager who decides to move on, it presents you with a risk. Change of a fund manager can also cause style drift.

1.1.3 Rationale of the study

My study based on the truth instead of unadulterated presumptions around the mutual fund plans cater for distinctive category of individuals and donate clear understanding around plans and break the myth approximately the common that as it were few chosen regulation speculator and AMCs are profited. And rest is failure and cost proportion are covered up and passage stack is low and exit load is exceptionally high. Each investor has rise to mindfulness approximately common whether have a place to tire two cities or metros. Picture is very distinctive all myth almost the shared are came out of or maybe genuine inquire about. So, my

4 investigate tries to reply those whole questions emerge in intellect of common investor almost the subject.

1.1.4 Mutual Fund Operation Flow Chart

1.1.5 Structure of Mutual Fund

Sponsors – One or more persons who come together to establish a mutual fund and register the same with Securities and Exchange Board of the respective country. For e.g. in India it is SEBI. The person(s) may also consider setting the mutual fund jointly with another corporate. Sponsor’s track record of staying actively engaged with the stock market along with running profitable operations will be considered while evaluating the registration.

The sponsors then form a Trust as per the Trust Act in the respective country. In India the Trust Act of 1882 is used for the formation of trust. Mutual Fund is also the trust which holds the investments. A trust deed is prepared detailing the intended activities of the trust with the

5 underlying principles and actions needed to protect the interest of investors is filed with Securities and Exchange Board.

Trustees –Sponsors then appoint the Trustees who chief responsibility is to protect the financial interests of the mutual fund holders. As a rule there will be restrictions to appoint trustees who are connected with Sponsor. In India, 2/3rd of Trustees should not be connected with Sponsors and are addressed as Independent directors.

Asset Management Company (AMC) –Asset Management Company is appointed by the Trustees as the investment manager of the Mutual Fund. The AMC can in turn appoint the Registrar and Transfer Agent for the Mutual Fund.

Registrar & Transfer Agent –The registrar and transfer agent stay in touch with the investors and periodically share reports or account statements.

Custodian – The custodian is a bank, a trust company, or an agent who holds and safeguards investor’s mutual funds.

1.2 Advantages and disadvantages of Mutual Funds Advantages

• Professional management • Diversification • Economies of Scale • Liquidity • Simplicity

Disadvantages

• Poor management • Costs • Dilution • Taxes

1.2.1 Advantages

• Professional management - The essential preferred standpoint of assets is the expert administration of your cash. Financial specialist's buy reserves since they don't have room schedule-wise or the aptitude to deal with their own portfolio. A Mutual Fund is a moderately economical route for a little financial specialist to get a full-time trough to make and screen speculations. • Diversification - by owning partakes in a Mutual Fund as opposed to owning singular stocks or securities, owning shares in a Mutual Fund as opposed to owning singular stocks or securities spreads out your hazard. The thought behind expansion is to put resources into a substantial number of advantages with the goal that a misfortune in a specific speculation is limited by picks up in others. As it were, the more stocks and bonds you claim, the less any of them can hurt you. Substantial common supports ordinarily claim several distinct stocks in a wide range of businesses. A speculator wouldn't be able to fabricate this sort of portfolio with a little measure of cash. • Economies of Scale - Because a shared reserve purchases and offers a lot of securities at any given moment, its exchange costs are lower than you as an individual would pay.

• Liquidity - Just like an individual stock, a common store enables you to ask for that your offers be changed over into money whenever. • Simplicity – Buying a shared store is simple! Really well any bank has its own particular line of common assets, and the base speculation is little. Most organizations additionally have programmed buy designs whereby as meagre as $100 can be contributed on a month to month premise.

1.2.2 Disadvantages

• Poor Management – Did you see how we qualified the upside of expert administration with the word" hypothetically"? Numerous financial specialists banter about whether or not the alleged experts are any superior to you or I at picking stocks. Administration is in no way, shape or form trustworthy, and, regardless of whether the reserve loses cash, the director still takes his/her cut. • Costs - Mutual Funds don't exist exclusively to make your life less demanding all assets are in it for a benefit. The shared reserve industry is awesome at purchasing costs under layers of language. These expenses are complicated to the point that in this instructional exercise we have given a whole segment to the subject. • Dilution - It's conceivable to have excessively expansion. Since stores have little possessions in such a large number of various organizations, exceptional yield from a couple of ventures regularly don't have much effect on the general return. Weakening likewise the aftereffect of a win finance getting too enormous. At the point when cash fills subsidizes that have had solid achievement, the chief regularly experiences difficulty finding a decent speculation for all the new organization. • Taxes - when profiting, subsidize supervisors don't think about your own duty circumstance. For instance, when a reserve administrator offers a security, a capital- pick up charge is activated, which influences how productive the individual is from the deal. It may have been more invaluable for the person to concede the capital additions risk. Amid an average year, most effectively oversaw common assets offer somewhere in the range of 20 to 70% of the securities in their portfolios. In the event that your store makes a benefit on its business, you will pay imposes on the pay you get, regardless of whether you reinvest the cash you made.

1.3 Mutual Funds have their drawbacks and may not be for everyone:

• No Guarantees: No investment is risk free. On the off chance that the whole securities exchange decreases in esteem, the estimation of common reserve offers will go down also, regardless of how adjusted the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sells stocks on their own. In any case, any individual who contributes through a common store risks losing cash. • Charges and commissions: All assets charge authoritative charges to cover their everyday costs. Some funds also charge sales commission or “loads” to compensate brokers, financial consultants, or financial planners. Even if you don’t use a broker or other financial adviser, you will pay a sales commission if you buy shares in a Load Funds. • Management Risk: When an individual invest in Mutual Fund, depend on the fund’s manager to make the right decisions regarding the fund’s portfolio. If the manager does not perform as well individual had hoped, he might not make as much money on individual investment as he expected. Of course, if individual invest in Index Funds, he forego management risk, because these funds do not employ managers.

1.4 Types of Mutual Funds In India Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of Schemes in the industry.

• By Structure 1. Open –Ended Funds/Schemes 2. Close-Ended Funds/Schemes 3. Interval Funds/Schemes

• By investment Objective 1. Growth Schemes 2. Income Schemes 3. Balanced Schemes 4. Money market Schemes

• Others Schemes 1. Tax Saving Schemes 2. Special Schemes 3. Index Schemes 4. Sector Specific Schemes

• By Structure

➢ Open –Ended Funds/Schemes An Open-ended fund or scheme is one that is available for subscription and repurchase consistently. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related process, which are proclaimed consistently. The key features of open-ended Schemes are liquidity. ➢ Close-Ended Funds/Schemes A Close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

➢ Interval Funds/Schemes These schemes are a cross between an open-ended and a close-ended structure. These schemes are open for both purchase and redemption during pre-specified intervals (viz. monthly, quarterly, annually etc.) at the prevailing NAV based prices. Interval funds are very similar to close-ended funds, but differ on the following points: (1) They are not required to be listed on the stock exchanges. (2) They can make fresh issue of units during the specified interval period, at the prevailing NAV based prices. (3) Maturity period is not defined.

• By Investment Objective ➢ Growth/ Equity Oriented Schemes The point of development reserves is to give capital increase over the medium to long haul. Such plans typically invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation etc. and the investors may choose an option depending on their preferences. The financial specialists must show the choice in the application frame. The common supports additionally enable the financial specialists to change the choices at a later date. Growth schemes are good for investors to change the options at a later date. Development plans are useful for speculators having a long haul viewpoint looking for increase over some stretch of time. ➢ Income/ Debt Oriented Scheme

The aim of income funds is to provide regular and steady income to investors. Such plans by and large put resources into settled salary securities, for example, securities, corporate debentures, Government securities and currency showcase instruments. Such subsidizes are less risky than contrast of equity schemes. These funds are not affected because of fluctuation in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long-term investors may not bother about these fluctuations.

➢ Balanced Fund or Hybrid Fund or Asset Allocation Funds

The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. Be that as it may, NAVs of such funds are probably going to be less unstable contrasted with pure equity fund.

➢ Money Market or Liquid Fund

These funds are also income funds and their aim to provide easy liquidity, preservation of capital and moderate income. These plans put only in more secure here and now instruments, for example, Treasury Bills, Certificates of Deposits, Commercial Paper and between banks call cash, Government Securities, and so on. Returns on these schemes fluctuate much less compared to other funds. These funds are fitting for corporate and singular financial specialists as a way to stop their surplus supports for brief periods.

• Other Schemes

➢ Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act.1962 as the government offers tax incentives for investment in specified avenues e.g. Equity Linked Saving Schemes (ELSS). Pension Schemes launched by the mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly I equities. Their growth opportunities and risks associated are like any equity-oriented scheme.

➢ Index Funds

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the same weightings comprising of an index. NAVs of such plans would rise or fall as

per the ascent or fall in the index, however not precisely by a similar rate because of a few variables. though not exactly by the same percentage due to some factors known as “tracking error” in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.

➢ Sector specific funds / Schemes

These are the funds or schemes, which invest in the securities of only those sectors or industries as specified in the offer documents e.g. Pharmaceuticals, software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/ industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.

➢ Load or no-load Fund

A Load fund is one that charges a percentage of NAV for entry or exit. That is, each time one buys or sells units in the fund, a charge will be payable. This charge is used by the mutual fund for marketing and distribution expenses. Suppose the NAV per unit is Rs.10. In the entry as well as exit load charged is.1%, then the investors who buy would be required to pay RS.10.10 and these who offer their units for repurchase the mutual fund will get only Rs.9.90 per unit. The investors should take the loads into consideration while making investment as these affect their yields/returns. However, the investors should also consider the performance track record and service standards of the mutual fund, which are more important. Efficient funds may give higher returns in spite of loads.

A no-load fund is one that does not charge for entry or exit. It means the investors can enter the fund/scheme at NAV and no additional charges are payable on purchase or sale of units.

➢ Assured return scheme

Assured return schemes are those schemes that assure a specific return to the unit holders irrespective of performance of the scheme. A scheme cannot promise returns unless such returns are fully guaranteed by the sponsor or AMC and this is required to be disclosed in the offer document. Investors should carefully read the offer document whether return is assured for the entire period of the scheme or only for a certain period. Some schemes assure returns one year a time and they review and change it at the beginning of the next year.

1.5 Key Terminology • Net Asset Value (NAV) Net Asset Value is market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date. • Repurchase price Repurchase price is the price at which a close-ended scheme repurchases its units and it may include a back-end load. This also called Bid Price. • Redemption price Redemption price is the price at which open-ended schemes repurchase their units and close- Sales Load Is a charge collected by a scheme when it sells the units. Also called “Front-end” load. Schemes that do not charge a load are called “No Load” Schemes. • Repurchase or “Back-end” Load Is a charge collected by a scheme when it buys back the units from the unit holders? Ended schemes redeem their units on maturity. Such prices are NAV related.

1.6 Evaluating Performance Perhaps you've noticed those mutual fund ads that quote amazingly high one-year rates of return? Your first thought might be, "wow, that mutual fund did great!" Well, yes it did great last year, but then you look at the three-year performance, which is lower, and the five years,

14 which is yet even lower. What's the underlying story here? Let's look at an actual example from a large mutual fund's performance:

1-year return – 53%

3-year return – 20%

5-year return – 11%

First year, this mutual fund had excellent performance, returning 53% to investors. But, over the past three years the average annual return was just 20%. What did the fund return in years 1 and 2 to bring the average return down to 20%? Simple math shows us that the fund made an average return of 3.5% over those first two years: 20% = (53% + 3.5% + 3.5%)/3. Since this 3.5% figure is only an average, it is very possible that the fund lost money in one or more of those years.

It gets more dismal if we look at the five-year performance. We know that in the last year the fund returned 53% and in years 2 and 3 we are guessing it returned around 3.5%. So, what happened in years 4 and 5 to bring the average return down to just 11%? Again, by doing some simple calculations we find that the fund must have lost money, on average -2.5% each year of those two years: 11% = (53% + 3.5% + 3.5% - 2.5% - 2.5%)/5. With that in mind the fund's performance doesn't look quite so impressive.

1.6.1 Five ways to evaluate performance of mutual fund

Investing in mutual funds has an inherent risk assumed upon the ownership. However, performance of the mutual funds can be quantified with the mathematical calculation of the historical returns. The correlation of the potential risk and the potential returns constantly put forth the opportunities to invest in mutual funds and drive maximum potential returns with minimum underlying risk.

1. Risk adjusted returns- Risk adjusted returns are the calculative returns your funds make compared to the risk indicated over the period of time. If compared, a couple of mutual funds which drive the same percentage of returns over the same period of time, the lesser risk funds have a higher Risk Adjusted Returns.

2. Benchmark- Benchmarking is the measurement of quality of the funds against the standard measurements. It is a point of reference compared to the funds peer markets. Irrespective of the objectives of investment in mutual funds, benchmark helps you gauge the performance of your investment against the market competition. Considering historical returns against the market conditions will help you determine the relevance of the performance benchmark for your investments. However, historical return is not a reliable indicator of future results.

3. Relative performance with peers is a yardstick of the effectiveness of your mutual fund of the same category. Mutual Funds actively try to top the ranking of the fund universe. Intended towards a higher return for the determined period of value learning, the relative peer performance is recommended.

4. Quality of stocks in the portfolio -Quality of stocks in the portfolio is reflected in its ability to drive superior returns on capital invested for a specific period of time. It is wise to check the industry leadership position of the mutual fund. Quality of the stocks in the portfolio would reflect in returns hence in the performance. Qualitative statistics and historical performance of mutual funds would help evaluating the performance.

5. Track record and competence of the fund manager. Your fund manager is an important person who makes investment decisions and stock selection in the portfolio. Understand your fund manager’s competence according to his/her fund management knowledge and ability. Your fund manager’s past performance would be a good parameter to track his/her record and could turn to be of a great value for your investments

1.6.2 How to buy or purchase and invest in mutual funds There are 5 ways by which we can invest in mutual funds.

1. Through a Financial Advisor: This the oldest and most popular way of investing in mutual funds in India. AMFI, an industry association of all the SEBI approved AMCs, provides licenses to financial advisor to advice customers on mutual fund investments. The financial advisor provides end to end to services, including collecting KYC (Know

your Customer) documents, filling the application forms and getting your signatures and submitting them for processing. Most financial advisors do not charge any fee from their customers. They are paid commissions by the mutual fund companies. If you are new investor it is recommended that you invest through a financial advisor. Before investing through financial advisors, you should check if they have a valid AMFI license.

2. Investing directly with the Mutual Fund companies: You can visit the office of the mutual fund companies and invest directly at their office. If you are investing for the first time, you need to submit the necessary documentation for KYC (identity proof, address proof, PAN card etc.) along with the duly filled application form at the mutual fund. Once a folio number is generated for you, you can invest online in any scheme of the mutual company by going to the website of the company.

3. Investing through registrars (CAMS or Karvy): CAMS or Karvy are registrars who process the mutual fund transactions and keep records on behalf of the mutual fund companies. You can visit CAMS or Karvy offices and submit the mutual fund application forms there, just like investing directly with mutual fund companies.

4. Investing through online portals: There are several online portals like fundsindia.com and fundsupermart.com through you can invest in mutual funds. To invest through the online portals your KYC has to be registered. Some of the portals can also help you with getting your KYC registered. One of the advantages of investing through an online portal is that you can view your entire portfolio (investment in mutual funds of different companies) in one place. However, you should know that these online portals are registered mutual fund distributors like your financial advisor and earn commissions from the mutual fund companies. Hence investing through them is not necessarily cheap.

5. Investing through your online demat account: Some brokers who provide online trading and demat services, also offer online investment in mutual funds.

1.7 Performance of Mutual Fund in India

Let us start the discussion of the performance of mutual funds in India from the day the concept of mutual fund took birth in India. The year was 1963. Unit Trust of India invited investors or rather to those who believed in savings, to park their money in UTI Mutual Fund.

For 30 years it goaled without a sing second player. Though the 1988-year saw some new mutual fund companies, but UTI remained in a monopoly position.

The performance of mutual funds in India in the initial phase was not even closer to satisfactory level. People rarely understood, and of course infesting was out of question. But yes, some 24 million shareholders were accustomed with guaranteed high returns by the beginning of liberalization of the industry in 1992. This good record of UTI became marketing tool for new entrants.

The expectations of investors touched the sky in profitability factor. However, people were miles away from the preparedness of risks factor after the liberalization.

The Assets under Management of UTI was Rs. 67 bn by the end of 1987.Let, concentrate about the performance of mutual funds in India through Figures. From Rs. 67 bn the Asset Under Management rose to Rs.470 bn.in March 1993 and the figure had a three time higher performance by April 2004. It rose as high as Rs.2.54bn.

The net asset value of mutual funds in India declined when stock prices started falling in the year 1992. Those days, the market regulations did not allow portfolio shifts into alternative investments. There was rather no choice apart from holding the cash or to further continue investing in shares. One more thing to be noted, since only closed-end funds were floated in the market, the investors disinvested by selling at a loss in the secondary market.

The performance of mutual funds in India suffered qualitatively. The 1992 stock market scandal, the losses by disinvestments and of course the lack of transparent rules in the where about rocked confidence among the investors. Partly owning to a relatively weak stock market performance, mutual funds have not yet recovered, with funds trading an average discount of 1020% of their NAV.

The supervisory authority adopted a set of measures to create a transparent and competitive environment in mutual funds. Some of them were like relaxing investment restrictions into the market, introduction of open-ended funds, and paving the gateway for mutual funds to launch pension schemes. The measure was taken to make mutual funds the key instrument for long- term saving. The more the variety offered, the quantitative will be investors.

At last to mention, as long as mutual fund companies are performing with lower risks and higher profitability within a short span of time, more and more people will be inclined to invest until and unless they are fully educated with the dos and don’ts of mutual funds

Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the month of December 2017 stood at INR 22.60 lakh crore. Assets Under Management (AUM) as on December 31, 2017 stood at INR 21.27 lakh crore.

The AUM of the Indian MF Industry has grown from INR 3.26 trillion as on 31st March 2007 to INR21.27 trillion as on 31st December 2017, about six and half fold increase in a span of about 10 and half years!!

The MF Industry’s AUM has grown from INR 5.87 trillion as on 31st March, 2012 to INR 21.27 trillion as on 31st December, 2017, about three and half fold increase in a span of about 5 and half years!!

The Industry’s AUM had crossed the milestone of INR10 Trillion (INR10 Lakh Crore) for the first time in May 2014 and in a short span of about three and half years, the AUM size has increased more than two folds and stood at INR21.27 Trillion (INR 21.27 Lakh Crore) as on 31st December, 2017.

The total number of accounts (or folios as per mutual fund parlance) as on December 31, 2017 stood at 6.65 crore (66.5 million), while the number of folios under Equity, ELSS and Balanced schemes, wherein the maximum investment is from retail segment stood at 5.46 crore (54.6 million).

1.8 Future of mutual fund in India As awareness increases, MFs could become one of the first choices for both short-term and long-term investments. While MF products are not suitable for all kinds of investors, the sector has shown tremendous growth by exceeding 17 lakh crore INR in assets under management (AUM), with inflows worth nearly 4 lakh crore INR in the last 2 years alone.

With the demonetization effect, rapid digitization, government incentives, regulatory initiatives, and a deliberate push for improving investor education, the next 2–3 years should see the AUM reaching another great milestone. In the immediate future, with interest rates declining, it is reasonable to predict that debt funds will be the drivers of growth in the first half of 2017, while the effects of the Goods and Services Tax (GST) will be felt in the second half.

SEBI and asset management companies (AMCs) themselves have made several efforts to increase the familiarity retail investors have with investment jargon. This has made them more comfortable with the idea of investing in MFs over traditional alternatives such as real estate and gold. The cost of MFs is also falling as the industry continues to build scale. Technology has played a significant role, with many opportunities for the industry to leverage.

Some Facts

• Investment companies determine the price of a Mutual Fund on a daily basis. Mutual Fund companies are monitored by SEBI. • There are several types of Mutual Funds: Equity, Diversified, Gilt, Debt Hybrid, Index, Debt, and more. • Equity funds include equity diversified funds, sector specific funds, and tax-saving funds. • Debt funds include income funds, liquid funds, and short-term funds. • Hybrid funds include equity-oriented hybrid funds, arbitrage funds, and debt-oriented hybrid funds. • Mutual fund investment is similar to investing in a stock except a fund manager does it for you. • A fund is considered an Equity Fund if more than 65% of the money is invested in equities (stocks). • Investment companies determine the price of a mutual fund on a daily basis • Mutual fund companies are monitored by SEBI • There are four types of Mutual Funds: Stock, Bond, Money Market, and Hybrid • Mutual fund investment is similar to investing in a stock except a fund manager does it for you

• A fund is considered an Equity Fund if more than 65% of the money is invested in equities (stocks) • Indian mutual fund industry currently averages at Rs.19.47 lakh crores • Indexed funds are less riskier when compared to non-indexed funds

CHAPTER 2

INDUSTRY PROFILE AND COMPANY PROFILE

2.1 OVERVIEW

The working of stock broking in India was begun in 1875. The BSE oldest stock broking of India. History of Indian stocks exchanging begins with the 318-individual taking enrollment in Stock Brokers Affiliation and Local Share, which is known by title as Bombay Stock Trade (BSE). Within the year 1965, BSE got a lasting affirmation from Government of India which was most required. The National Stock Trade arrives 2nd to the BSE within the terms of status. NSE and BSE speak to themselves as the equivalent words of the Indian stock showcase. History of stock advertise in India is nearly same as history of BSE.

An up-beat disposition of commercial center was misplaced suddenly with the Harshad Mehta trick. This came to the open information that Harshad Mehta, who is additionally called as big- bull and mammoth of Indian stock showcase which occupied tremendous finance from banks by false implies. He too played with millions of offers of numerous companies. For anticipating such fakes, Government shaped SEBI, through Act in 1992. The SEBI is statutory body which controls and controls working of brokers, stock trades, portfolio supervisor venture advisors, sub-brokers, etc. SEBI obliged a few intense measures to ensure intrigued of speculator. Presently with beginning of the online exchange and each day settlements chances for extortion are nil, top official of SEBI says.

Sensex crossed 5000 check in year 1999 and 6000 stamp in year 2000. Outside organization speculator (FII) is contributing in stock markets in India on exceptionally huge scale. Generous financial approaches seek after by progressive Government pulled in numerous outside regulation financial specialists towards expansive scale. The incautious behavior and activity of advertise committed it tag - 'volatile market.' The components which influenced showcase in past were the great storm, rise to control of Bharatiya Janatha Party's etc. The result of cricket matches between Pakistan and India too influenced developments of stock broking in India. National Equitable Union which was driven by BJP, in 2004 the open race unsuccessfully attempted for riding on advertise estimation to control. NDA is voted out of the control and sensex recorded greatest drop in day in the midst of fears which Congress-Communist coalitions would have slow down financial change.

India, after US has the huge number of the recorded companies. The Worldwide investors presently look for India as favoured area for the speculation. Stock advertise presently too requests to the centre course Indians. Most of the Indian working in outside nation presently redirects their investment funds to the stocks. This unused marvel is result of lessened intrigued rate from banks and opening of the online exchanging. Stock brokers based within the India are opening office in numerous nation basically to cater needs of the Non Inhabitant Indians. They can offer or purchase stocks online whereas returning from work places. The later occurrences which driven to the developing interface among all Indian centre lesson is beginning open offer declared by ONGC, Maruti Udyog Constrained, Tata Consultancy Administrations and numerous huge names like such. A bullish run of stock advertise can related with consistent development of 6% in GDP, development of Indian company to MNCs, the huge potential of the development in fields of mass media, media transmission, instruction , IT sectors and tourism backed by the economic reforms ensures that the Indian stock market continue its bull run.

2.2 KEY TRENDS

Year 2017 is likely to be a year centred on particular stocks. There are 3 key reasons for this. Firstly, the advertise as a entirety may not grant any major directional move and the activity will be more segment particular and stock particular. Besides, there will be key subjects that will rise as the coordinate aftermath of demonetization, GST, Trumponomics etc., which is able make openings within the advertise. In conclusion, a few of the key patterns will have an effect that will be troublesome and subsequently will have long term suggestions. We are saying that the showcase as a entirety will not move directionally since the foremost productive segments like IT and pharma will be beneath weight due to a conceivable alter in US approach. The focus will be on stocks and more vitally on the taking after 5 key trends for 2017.

GST may emerge as a big theme for 2017

To be reasonable, the usage of GST will be compelling from July 01st 2017 and it may be another 6 months by the time the genuine affect is felt. But from a stock advertise point of view, some patterns may tentatively manifest itself. A parcel will depend on the ultimate GST rates that are concurred upon by the individuals of the GST committee. But there are 2 key sub- trends that will advantage particular voting public. Firstly, GST will lead to huge Indian companies reconsidering their coordinations structure. As of now, the coordinations structure

23 comprising of warehousing, transportation and conveyance is decided by the nature and rates of state level charges. That creates the coordination structure practically wasteful. Post-GST, there will as it were be one single national level assess. Hence, most Indian companies will need to re-examine their whole coordination structure and make it more ideal from a trade viewpoint. This will open up a billion dollar opportunity for Indian coordination companies and they will be one of the key segments to be careful for in 2017. Besides, GST will broaden the charge base and consequently decrease the advantage that the unorganized fragment appreciates nowadays vis-à-vis the organized division. In this manner, organized fragments like paints, electrical merchandise and FMCG which are most helpless to competition from unorganized portion nowadays will be the enormous recipients of GST. Keep a observe!

Digitization of money could be the game-changer in 2017

Demonetization may have come and gone but the one drift it has irreversibly activated off in India is the move to digital money. As Indian buyers find the consolation of digital money, it'll open up a huge opportunity for companies that center on the digitization prepare. This may incorporate companies that are into the make of POS machines, companies that make program for advanced exchanges and companies that empower the final mile network for digital transactions. All these companies seem see a considerable expansion in request additionally in benefits and might be the key segment to be careful for. Moreover, banks and retail chains that receive the move to advanced cash in a huge way might be the roundabout recipients of this digitization slant.

Rural demand could be the silent story of 2017

Union Budget 2017 will viably be the penultimate full-fledged budget of this government. The 2019 budget will, in all probability, be a vote-on-account considering the approaching central decisions in 2019. The government will, in this manner, take off no stone unturned to pacify the rustic masses. One can anticipate advance concessions and credit write-offs for ranchers, higher levels of country investing and speculation in provincial foundation, extension of welfare plans like MNREGA etc. All these measures will have a healthy effect on rustic request and country obtaining control. In this manner, producers of tractors, cultivate gear, two– wheelers and marketers of country FMCG items will be major recipients of this upgraded rural investing. This will be the third major drift to be careful for in this year.

PSU stocks could be the surprise outperformers in 2017

The recommendation may sound very dumbfounding, but PSUs can be the huge topic for 2017. One as it were ought to see at the forceful request for the CPSE ETF to get it this trend. But what will be so extraordinary approximately PSUs in 2017. There can be 3 key drivers. Firstly, the government is likely to go ahead with vital deal of loss-making PSUs forcefully. It too implies that the government may not be as well sharp to hold on to larger part stakes in most government companies. This will be positive for PSU valuations. Furthermore, year 2017 may moreover see the primary steps towards genuine privatization of possession and administration of PSUs and the drift may begin with PSU banks. Thirdly, most PSUs are already strong profit abdicate stories and the government may coax productive PSUs to disseminate a bigger share within the shape of profit. In truth, PSUs can be the shock bundle for 2017!

Stay cautious on IT and Pharma Will pockets of esteem rise in IT and pharma amid the year? It is profoundly likely that a few of the stocks may be really underpriced but force is likely to be troublesome for both these segments in 2017. For starters, the Trump Border Charge and the clamp down on simple visa rules are not great news for Indian IT companies. Trump has as of now demonstrated that he will ensure household US occupations, indeed it implies affecting worldwide companies. More tightly migration rules on beat of more tightly IT investing will as it were make the environment more challenging for IT companies. Pharma companies are as of now beneath the scanner of the US FDA over remiss fabricating and lab testing guidelines at Indian pharma companies. The later choice to come down intensely on overpricing by pharma companies will as it were include to the nerves of Indian non specific producers. These two segments might come beneath weight in 2017, regardless any essential esteem case made in their support.

2.3 STOCK BROKERS

A stock broker or brokerage is authorized and directed financial firm that encourages buying and offering exchanges in different money related rebellious for investor clients, teach and or for the firm. All budgetary showcase exchanges have to be be executed through a broker. Fundamentally, a broker is dependable for encouraging all stock exchanges you put. Most brokers permit clients to sign up through online applications. Brokers charge commissions for their administrations. The sort of broker will decide how costly and how the commissions are organized. There are three fundamental sorts of brokerage firms: Full-service, rebate and direct-access.

2.3.1 TYPES OF BROKERAGE FIRMS

• FULL SERVICE BROKERS These firms charge higher commissions or a percentage of assets. They offer the largest assortment of diversified financial services and usually assign a licensed individual broker to each client. These firms tend to have their own investment banking and research departments that provide their own analyst recommendations, products and access to initial public offerings (IPOs). Clients have the option of calling their personal broker directly to place trades or use various other platforms including online and mobile. Full-service brokers have physical offices and locations. They also offer financial planning, asset management and banking services. In addition to savings and checking accounts many full service brokers provide personal, business and home loans services. While most full-service brokers provide online access and trading functions, they tend to charge higher commissions and route orders directly to their own market makers or through order-fill agreements with other firms. Full-service broker online platforms tend to have less day trading tools and indicators as they cater more towards long-term investors. • DISCOUNT BROKERS Discount brokers have narrowed the gap with full-service brokers in terms of financial products and services providing independent research, mutual fund access and basic banking products. As the name says, discount brokers have smaller commissions for trades. Usually the commissions will range for $9.99 to $4.99 per trade ticket, which may appeal to swing traders and less active day traders. The platforms tend to have more trading and research tools than the full-service brokers since they cater to active investors and day traders. Many of the larger discount brokers provide their own direct- access trading platforms and physical office locations throughout the country. • ONLINE BROKERS Online brokers also known as direct-access brokers cater to active day trading clients with the smallest commissions often priced on a per-share basis, which is needed when scaling in and out of positions. These firms provide direct-access platforms with charting and routing capabilities with access to electronic communication networks (ECN), market makers, specialists, dark pools and multiple exchanges. Speed and access are the top benefits of direct-access brokers, often allowing for point-and-click executions and programmable hot-keys. Complex stock and options orders can be

placed on these platforms. The heavy-duty platforms often carry a monthly fee composed of software fees and exchange fees. The software fees can usually be waived or discounted based on the client’s monthly trading volume. Active day traders are best advised to use reputable online/direct-access brokers to ensure maximum control and flexibility as well as speedy order fills. To keep overhead low and pass on the cheaper rates, online brokers usually don’t provide physical office locations for customers.

2.4 VENTURA SECURITIES LIMITED

Founded in 1994 by Chartered Accountants Sajid Malik, Juzer Gabajiwala and Hemant Majethia. They are the first generation entrepreneurs and are the principal promoters of Ventura. A dedicated and efficient team of managers assist Mr. Majethia the CEO of the company. Over the past two decades, we have grown into a group of companies that provides a complete array of financial products and services. It is one of the leading Commodities and Financial Futures Brokers with a strong and established market reputation spanning over 12 years. Ventura Securities Ltd is a leading stock broking organization promoted and managed by professionals having exceptional knowledge of Capital Market. We recognize in our operating philosophy that the key to our business is service, which will result in total satisfaction to our clients. Through a large network of sub-brokers, we offer our clients the opportunity to invest and trade in equity and equity derivatives, commodities, mutual funds, fixed income products and currency futures. Ventura is a full-service domestic brokerage house providing value based advisory services to Institutions (Foreign and Domestic).High Net Worth and Retail Investors with its core area of operations being stock-broking. We have considerable strength and domain knowledge in the booming derivatives market. We also directly facilitate clients who wish to trade in equity online via our in-house, customized and ready to use software – Pointer – which enables seamless processes and flawless execution. We adhere to a well-defined risk management system and settlement mechanism thereby conducting fully compliant operations. Beyond investment avenues, the Ventura Group is constantly committed to providing investors with access to timely and relevant research and data to ensure an informed and fruitful investment experience.

Ventura has achieved a reputation for innovative and unbiased research along with excellent technical analysis and execution capabilities. Not only has Ventura has provided value-added services to the gamut of India based funds, it has also developed the advice –driven business of high net worth and Corporate Clients.

VISION

To create an all India network of brokers’ relationship and build the distribution strength of Ventura.

MISSION

To build true relationships and strive towards customer delight, through constant innovation on a strong foundation of dedicated and trained resources.

2.5 TRACK RECORD In a short time span we have achieved substantial success in its core business activity. We owe our success to our unique business building strategy plan, components of which are: • A differentiated positioning. • Selective geographic spread. • Flexible and lean operating structure. • High quality people. 2.6 WHY VENTURA Our services are offered under total confidentiality and integrity with the sole purpose of maximizing returns for our clients. We operate on an alert and well defined system in risk management and settlement mechanism. Such as EXPERTISE • Current news, and views analysis, trends during market hours, daily newsletter and its implications on events affecting the economy and stock markets. • Live market commentary through – “POINTER” customized on line chat room mainly cater to upcountry outlets, a pioneering effort and a runaway successful product. • Derivatives – Trading strategies in Future and options, straddle calls to minimize risks and maximize returns.

• Online trading and depository services, to cater our retail clients are on the anvil and should commence shortly. • Networking, regular touch with institutional Investors (Foreign and Domestic) to gauge, understand and interpret market sentiments. EXPERTISE AND INNOVATION We put our client’s needs first and extend a highly personalized service through dedicated dealers. Our combination of service, technology, flexibility and experience makes our back office second to none. INFORMATION AND RESEARCH No broking house is complete without the ability to provide detailed, relevant and timely information and research. Our research department produces reports covering all of the major exchanges and products.

2.7 PRODUCTS/ SERVICES

• Equities • Derivatives • Commodities • Mutual funds • Fixed income • Currency Futures • Advisory services • Depository services • NRI/QFI • Daily Pointer • SMS Facility • Client preview site • DEMAT Services • Wider networking • Weekly report and product notes • Internet online trading.

2.8 COMPETITORS OF VENTURA SECURITIES LTD Some of the main competitors of Ventura securities ltd are as Follows: • SHERKHAN • ANGEL BROKING • ZERODHA • GREETIKA BROKING • MOTILAL OSWAL • KARVY • IIFL • HDFC SECURITIES • ABCHLOR INVESTMENTS • ICICI DIRECT.COM • DHANVIR CAPITAL CONSULTANTS

2.9 SWOT ANALYSIS

➢ Strengths • Good communication • Effective management • Good Products/Services • Customer loyalty • Work life balance ➢ Weaknesses • No fixed salary • Poor advertisement ➢ Opportunities • Market in rural and semi urban area • New Technology ➢ Threats • Intense competition • Government regulations

2.10 McKinsey 7S Framework

• Structure The organisational structure of Ventura securities limited is functional by nature and it has good communication network. Ventura is a full-service broker providing advisory services to Institutions (Foreign and Domestic), High Net Worth and Retail Investors with its core area of operations being stock-broking. • Strategy The target of Ventura securities limited is to not only target the customers of urban places but also to target the customers from rural and semi-urban areas. It always try to provide good customer services and it has been rapidly expanded in all over India. Through a large network of sub-brokers, we offer our clients the opportunity to invest and trade in equity and equity derivatives, commodities, mutual funds, fixed income products and currency futures. • System It facilitates clients who wish to trade in equity online via our in-house, customized and ready to use software – Pointer – which enables seamless processes and flawless execution. Ventura adheres to a well-defined risk management system and settlement mechanism thereby conducting fully compliant operations. • Shared Values Ventura Securities limited was established in 1994 and grown into a group of companies that provides a complete array of financial products and services. Its mission is to build true relationships and strive towards customer delight, through constant innovation on a strong foundation of dedicated and trained resources. • Staff Ventura has a very high quality of employees and a good management staff. The working atmosphere is fantastic and the communication between the co-workers and the team leaders as well as with top level is very good. They treat each other as partners than employee and they are highly motivated and respect each other’s work. • Style The style of the organisation is defined as ✓ Flexible ✓ Team-oriented ✓ Collegial

• Skill The core competencies of Ventura securities limited are innovations which always have been customer centric and reflected in the upgradation of systems to facilitate our network partners. The employees in Ventura always works as a team where everyone involves in a particular work and the atmosphere encourages each and every individual in Ventura. It invests in online trading and provide customer facilitated services and widens is network.

CHAPTER 3

RESEARCH METHODOLOGY Mutual fund in Indian context is a challengeable phenomenon. In a short span of less than one decade it has changed the investment pattern of medium and small investors in India. Consequently study of mutual fund has become an essential ingredient of any business and finance program. Besides, the investors should know how a mutual fund operates and what should they expect from them, if they really want to benefit from this new vehicle of investment. Mutual fund helps small investors to participate in the securities market indirectly and thus help in spreading and reducing risk. The mutual fund is a vehicle that enables millions of small and large savers spread across the country to participate in and derive the benefits of the capital market growth. It is an alternative vehicle of intermediation between the suppliers and the users of investible resources. This vehicle is becoming increasingly popular in India due to higher investors’ return, relatively lesser risk and cost. In fact it is a more efficient vehicle for creation of wealth.

Numerous speculators need to broaden their possessions in arrange to restrain their presentation to risk. Be that as it may, most individual financial specialists cannot manage the expenses and commissions essential to require expansive positions in a number of individual securities. Luckily, they can take advantage of mutual funds. Mutual funds are speculation vehicles that pool cash from many distinctive investors to extend their buying control and differentiate their possessions. This permits speculators to include a significant number of securities to their portfolio for a much lower cost than acquiring each security independently. The Mutual Funds ordinarily contribute their funds in equities, bonds, debentures, call cash etc., depending on the goals and terms of conspire drifted by mutual funds. Presently a days there are mutual funds which indeed contribute in gold or other resource classes.

3.1 NEED FOR THE STUDY Mutual fund is expected a better option for the Consumers at present. There are many investment options available with the Consumers, but mutual fund is different from other in terms of risk, return, liquidity, profitability, transparency etc. and that is it has become more popular nowadays. This study focuses on the perception of customers towards mutual funds.

3.2 OBJECTIVES • To know the awareness level of investors towards mutual funds. • To know the view of investors towards mutual funds. • To know about the investors preferences towards mutual funds. • To understand the priorities of investing in mutual investment.

3.3 SCOPE OF THE STUDY • This project studies the preferences of customers towards mutual funds. • It also evaluates the awareness level of customers towards mutual funds and their perception about mutual funds. • The scope of the study is limited to only customers from Bangalore.

3.4 LIMITATIONS OF THE STUDY • This study is limited to only customers of Bangalore. • Time constraint is a limitation that restraints the scope of the study. • The report is prepared and analysed assuming that the data collected is accurate.

3.5 RESEARCH METHODOLOGY Research design selected for this project is Descriptive.

Data Collection Method

(a) Primary Data Collection Method:

• Survey method was used for primary data collection. • Structured Questionnaire is used for the survey as an instrument.

(b) Secondary Data Collection Method:

• Published sources such as Journals. • Websites

3.6 SAMPLING DETAIL (a) Target Population: The population for this research study consists of the residents of Bangalore.

(b) Sample Unit: In this study the Sampling units are businessman, professionals etc.

(d) Sampling Method: The sample is selected by using convenience sampling method.

(e) Percentages mode of calculation is adopted.

3.7 LITERATURE REVIEW

• Panwar and Madhumathi (2006) in their study identified the differences in characteristics of public-sector and private-sector sponsored mutual funds and found the extent of diversification in the portfolio of securities of public-sector and private-sector sponsored mutual funds and compared their performance using traditional investment measures. The study found that public sector sponsored, private-sector Indian sponsored, and private sector foreign sponsored mutual funds did not differ statistically in terms of portfolio characteristics such as net assets, common stock percent, and market capitalization. • Mittal and Gupta (2008) in their paper examined the awareness of the investors about mutual funds and various factors affecting the investment decision in the mutual funds. The study revealed that mutual funds had comparative advantage over other options due to high return, high safety, high liquidity and high convenience with moderate volatility. When compared to other investment options, it ranked third most preferred option, Insurance and government bonds having first and second positions. The overwhelming majority (85%) of the respondents were aware of the mutual fund product and risk associated with it and most of them were satisfied with the service provided by mutual fund. • Simran Saini, Dr. Bimal Anjum and Ramandeep Saini (2011) in their study Investors’ awareness and perception about mutual funds. The study analyses the mutual fund investments in relation to investor’s behavior. Investors’ opinion and perception has been studied relating to various issues like type of mutual fund scheme, main objective behind investing in mutual fund scheme, role of financial advisors and brokers, investors’ opinion relating to factors that attract them to invest in mutual funds, sources of information, deficiencies in the services provided

by the mutual fund managers, challenges before the Indian mutual fund industry etc.

• Vyas and Moonat (2012) studied the perception and behaviour of mutual fund investors in Indore, Madhya Pradesh. It was based on 363 mutual fund investors. The results revealed that most of the respondents invested in equity options with a time span of one to three years. Though 73 per cent of the investors were aware about the risk associated with mutual funds yet only 53 per cent investors analysed the risk. Lump sum investment was the most preferred mode followed by SIP. Gold was the most important option among investors and mutual funds ranked 6th in this regard. Further mutual funds got an average score on all parameters like safety, liquidity, reliability, tax benefits and high returns. • Rao and Daita (2013) in their study attempted to analyze the influence of fundamental factors such as economy, industry, and company on the performance of mutual funds. Efforts was made to carry out an in-depth analysis of the economy through a collection of monthly data pertaining to key macro-economic variables covering a period of 228 months spread over 19 years. The casual relationship between real economic variables and their impact on statistics, correlation matrix, and Granger’s causality test. To appraise the mutual fund industry various aspects such as assets under management, investor type, and product classification were studied with the help of percentage analysis. • R Padmaja (2013) in their study “A study of consumer behaviour towards mutual funds with special reference to ICICI prudential mutual funds, Vijayawada”. This study aims at consumer behavior towards mutual funds with special reference to ICICI Prudential Mutual Funds Limited, Vijayawada. Data was collected through primary and secondary sources. Primary data was collected through structured questionnaire. Convenience sampling method was used to collect the data and entire study was conducted in Vijayawada City. The study explains about investors’ awareness towards mutual funds, investor perceptions, their preferences and the extent of satisfaction towards mutual funds. Some suggestions were also made to increase the awareness towards mutual funds and measures to select appropriate mutual funds to maximize the returns.

• Sundar and Prakash (2014) in their study examined the awareness among the investor community in choosing the best mutual fund scheme as it conducted a comparative analysis of the mutual funds of three AMCs. This study also showed that much information about mutual funds is not available publicly. • BYJU.K (2016) in their study “A study on awareness of investment opportunities in mutual funds- special significance in SIP”. This study is confined to the factors considered by investors by selecting mutual funds for their various investments. The level of awareness about SIP, Source of information, factors influencing decision making are studied. The above said factors are compared with demographic factors such as age, marital status, Occupation and gross annual income of the respondents to analyze “the awareness of investment opportunities in mutual funds- special Significance on SIP”

• Priti Mane (2016) in their study “A study of investors’ perception towards mutual funds in the city of Aurangabad”. This research will introduce the customer perception with regard to mutual funds that is the schemes they prefer, the plans they are opting, the reasons behind such selections and also this research dealt with different investment options, which people prefer along with and apart from mutual funds. Like postal saving schemes, recurring deposits, bonds, and shares. The findings from this project is that most of the people are hesitant in going for new age investments like mutual funds and prefer to avert risks by investing in less riskier investment options like recurring deposits and so. • Khan AH and Agarwal SK (2017) in their study “A Study of Investors Perception towards Mutual Funds in the City of Delhi and Meerut”. This study is conducted in Delhi and Meerut areas in different public sector and private banks. By asking close ended and open-ended questioners. We observed that despite being a lot of bombarding of continuous advertising by Mutual fund houses still investors of tier two cities are not believing on private mutual fund but in case of metro like Delhi are more aware and eager to invest in private and PSU mutual funds. In our study we touch student’s business man and working people of middle class. And found that people are hungry to invest in Good Avenue, but they are not getting proper counselling in their own language or in simple way.

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

Table 4.1

Table 4.1 showing the categories of occupation

Options Respondents Percentage Government Employee 30 27.3 Private firm Employee 55 50 Businessman 12 10.9 Others 13 11.8

Analysis: It has been found that 27.3% are government employee, 50% are private firm employee, 12% are businessman and 13% belong to others category.

Diagram 4.1

Diagram 4.1 showing the categories of occupation

11.80% 27.30% 10.90% Government Employee Private firm Employee Businessman Others

50%

Interpretation: It has been found that majority of respondents are private employee, less than that are govt. employee, whereas few are businessman and rest are in others category.

Table 4.2

Table 4.2 showing annual income

Options Respondents Percentage Below 2 lakhs 8 7.3 2-5 lakhs 58 52.7 5-10 lakhs 33 30 Above 10 lakhs 11 10

Analysis: 52.7% employees have income between 2-5 lakhs, 30% are in 5-10 lakhs range, 10% are above 10 lakhs income and rest 7.3% are below 2 lakhs income range.

Diagram 4.2

Diagram 4.2 showing annual income

10% 7.30%

Below 2 lakhs 2-5 lakhs 30% 5-10 lakhs Above 10 lakhs 52.70%

Interpretation: Majority of employees have salary between 2-5 lakhs where few are in range of 5-10 lakhs and there are some people have salary more than 10 lakhs whereas few are less than 2 lakhs.

Table 4.3 Table 4.3 showing the investment decisions Options Respondents Percentage Savings Bank 23 20.9 Fixed Deposit 25 22.7 Mutual Funds 34 30.9 Insurance 20 18.2 Others 8 7.3

Analysis: 30.9% of investors invest in mutual funds, 22.7% invest in fixed deposit, 20.9% invest in savings, whereas 18.2% invest in insurance and rest 7.3% invest in others.

Diagram 4.3 Diagram 4.3 showing the investment decisions

7.30%

20.90%

18.20% Savings Bank Fixed Deposit Mutual Funds Insurance 22.70% Others

30.90%

Interpretation: It has been found that majority of investors invest in mutual funds. Secondly, investment is high on fixed deposit, then on savings bank. Investors likely to invest in insurance and then rest are others.

Table 4.4 Table 4.4 showing the factors that investors prioritize in an investment Options Respondents Percentage Safety 28 25.5 High Return 38 34.5 Liquidity 25 22.7 Low risk 19 17.3

Analysis: 34.5% of investors think for the high return, 25.5% go for safety whereas 22.7% look for liquidity and rest 17.3% want low risk while investing.

Diagram 4.4 Diagram 4.4 showing the factors that investors prioritize in an investment

17.30% 25.50%

Safety High Return Liquidity 22.70% Low risk

34.50%

Interpretation: Majority of investors expects high return in an investment. Few of them expect safety and then few of them look for liquidity and rest expects low risk in an investment.

Table 4.5 Table 4.5 showing awareness about mutual funds Options Respondents Percentage Yes 110 100 No 0 0

Analysis: It has been found that 100% of people are aware of mutual funds.

Diagram 4.5 Diagram 4.5 showing awareness about mutual funds

Yes No

100%

Interpretation: It has been found that everyone is aware of mutual funds.

Table 4.6 Table 4.6 showing information investors get about mutual funds Options Respondents Percentage Advertisements 38 34.5 Friends/Relatives 34 30.9 Banks 17 15.5 Financial consultants 10 9.1 Others 11 10

Analysis: It has been found that 34.5% of investors get information from advertisements, 30.9% from friends/relatives, 15.5% from banks, and 9.1% get the information from financial consultants and rest 10% from other sources.

Diagram 4.6 Diagram 4.6 showing information investors get about mutual funds

10%

9.10% 34.50% Advertisements Friends/Relatives Banks 15.50% Financial consultants Others

30.90%

Interpretation: In this survey, it has been found that majority of investors get information from advertisements, then from friends/relatives and then few pf them get from banks. Rest all get the source of information from financial consultants and from other resources.

Table 4.7 Table 4.7 showing the investors of mutual funds Options Respondents Percentage Yes 87 79.1 No 23 20.9

Analysis: It has been found that 79.1% invest in mutual funds and rest 20.9% of them don’t invest in mutual funds.

Diagram 4.7 Diagram 4.7 showing the investors of mutual funds

20.90%

Yes No

79.10%

Interpretation: It has been fund that most of them invest in mutual funds and few of them who are not the investors of mutual funds.

Table 4.8 Table 4.8 showing reasons of not investing in mutual funds Options Respondents Percentage No safety 24 21.8 Less liquidity 38 34.5 High risk 36 32.7 Others 12 10.9

Analysis: 34.5% of them think that it has less liquidity compare to other investments.32.7% has a perception that it has high risk, 21.8% think about safety issues and rest 10.9% think of other reasons.

Diagram 4.8 Diagram 4.8 showing reasons of not investing in mutual funds

10.90%

21.80%

No safety Less liquidity High risk 32.70% Others

34.50%

Interpretation: Most of them think that it has less liquidity, some of them think that there is safety issues. Investors think that the risk is high in mutual funds and rest all have other reasons.

Table 4.9 Table 4.9 showing the duration of investors investing in mutual funds Options Respondents Percentage One year 24 21.8 Two years 27 24.5 Three years 25 22.7 Four years 14 12.7 Five years 12 10.9 More than 5 years 8 7.3

Analysis: It has been found that 24.5% of them are investing from 2 years, 22.7% from 3 years, 21.8% from 1 year, 12.7% are from 4 years, 10.9% from 5 years and rest 7.3% for more than 5 years.

Diagram 4.9 Diagram 4.9 showing the duration of investors investing in mutual funds

7.30%

10.90% 21.80% One year Two years Three years 12.70% Four years Five years 24.50% More than five years

22.70%

Interpretation: It has been found that majority of them are investing from 2 years, few of them are from 3 years, 4years, 1 year and a small majority of people are investing from more than 5 years.

Table 4.10 Table 4.10 showing the preference of mode of investment Options Respondents Percentage One time Investment 28 25.5 Systematic Investment plan(SIP) 82 74.5

Analysis: In this survey, it has been found that 74.5% of people invest in systematic investment plan and 25.5% go for one time investment.

Diagram 4.10 Diagram 4.10 showing the preference of mode of investment

25.50%

One time investment Systematic Investment plan(SIP)

74.50%

Interpretation: Majority of investors invest in SIP mode of investment whereas some of them go for one time investment.

Table 4.11 Table 4.11 showing about investment in different mutual fund schemes Options Respondents Percentage Equity funds 21 19.1 Debt funds 22 20 ELSS 28 25.5 Growth funds 19 17.2 Income funds 20 18.2

Analysis: In this survey, it has been found that 25.5% of the investors invest ELSS, 20% invest in debts, 19.1% in equity funds whereas 18.2% investors choose income funds and rest 17.2% go for growth funds.

Diagram 4.11 Diagram 4.11 showing about investment in different mutual fund schemes

18.20% 19.10%

Equity funds Debt funds ELSS 17.20% 20% Growth funds Income funds

25.50%

Interpretation: Most of the investors choose ELSS scheme, few of them go for debts funds and then for equity funds. Rest of the investors choose growth funds and income funds mutual fund schemes.

Table 4.12 Table 4.12 showing the advantages that investors look for in mutual funds Options Respondents Percentage Professional management 17 15.5 Diversification 16 14.5 Liquidity 22 20 Tax Benefits 26 23.6 Returns 19 17.3 Others 10 9.1

Analysis: 23.6% investors think that its biggest advantage is tax benefits, 20% of them think it has liquidity, 17.3% think that returns are good and safety is there. 15.5% of investors think that it is professionally managed, 14.5% think that there is a diversification in mutual funds and rest 9.1 are others. Diagram 4.12 Diagram 4.12 showing the advantages that investors look for in mutual funds

9.10% 15.50%

Professional management 17.30% Diversification 14.50% Liquidity Tax Benefits Returns Others 23.60% 20%

Interpretation: Majority of investors who invest in mutual funds think that it is very useful for tax benefits. Apart from that many of them think that returns, liquidity and professional management in the biggest advantage and rest of them prefer diversification and other advantages.

Table 4.13 Table 4.13 showing about the awareness of share market and its functions Options Respondents Percentage Yes 78 70.9 No 32 29.1

Analysis: It has been found that 70.9% of people know about share market and its functioning whereas 29.1% of them don’t exactly know how it functions.

Diagram 4.13 Diagram 4.13 showing about the awareness of share market and its functions

29.10%

Yes No

70.90%

Interpretation: Majority of the investors know how a share market works and few of them are unaware of it.

Table 4.14 Table 4.14 showing awareness of investors about their investment of money in share market

Options Respondents Percentage Yes 98 89.1 No 12 10.9

Analysis: It has been found that 89.1% of investors know that their money will be invested in share market and 10.9% of them are unaware of it.

Diagram 4.14 Diagram 4.14 showing awareness of investors about their investment of money in share market

10.90%

Yes No

89.10%

Interpretation: It has been found that majority of investors know that where is the money going for investment and few of them unaware of it.

CHAPTER 5 FINDINGS, SUGGESTIONS AND CONCLUSION 5.1 Findings

• It has been found that 27.3% are government employee, 50% are private firm employee, 12% are businessman and 13% belong to others category. • 52.7% employees have income between 2-5 lakhs, 30% are in 5-10 lakhs range, 10% are above 10 lakhs income and rest 7.3% are below 2 lakhs income range. • 30.9% of investors invest in mutual funds, 22.7% invest in fixed deposit, and 20.9% invest in savings, whereas 18.2% invest in insurance and rest 7.3% invest in others. • 34.5% of investors think for the high return, 25.5% go for safety whereas 22.7% look for liquidity and rest 17.3% want low risk while investing. • It has been found that 100% of people are aware of mutual funds. • It has been found that 34.5% of investors get information from advertisements, 30.9% from friends/relatives, 15.5% from banks, and 9.1% get the information from financial consultants and rest 10% from other sources. • It has been found that 79.1% invest in mutual funds and rest 20.9% of them don’t invest in mutual funds. • 34.5% of them think that it has less liquidity compare to other investments.32.7% has a perception that it has high risk, 21.8% think about safety issues and rest 10.9% think of other reasons. • It has been found that 24.5% of them are investing from 2 years, 22.7% from 3 years, 21.8% from 1 year, 12.7% are from 4 years, 10.9% from 5 years and rest 7.3% for more than 5 years. • In this survey, it has been found that 74.5% of people invest in systematic investment plan and 25.5% go for one time investment. • In this survey, it has been found that 25.5% of the investors invest ELSS, 20% invest in debts, 19.1% in equity funds whereas 18.2% investors choose income funds and rest 17.2% go for growth funds. • 23.6% investors think that its biggest advantage is tax benefits, 20% of them think it has liquidity, 17.3% think that returns are good and safety is there. 15.5% of investors think that it is professionally managed, 14.5% think that there is a diversification in mutual funds and rest 9.1 are others.

• It has been found that 70.9% of people know about share market and its functioning whereas 29.1% of them don’t exactly know how it functions. • It has been found that 89.1% of investors know that their money will be invested in share market and 10.9% of them are unaware of it.

5.2 Suggestions • There should be increase in awareness about mutual funds among investors. • More knowledge about mutual funds should be given to the investors so that it will increase the loyalty among them and so that they will invest in mutual funds. • Companies should bring new plans or incorporate changes in them which has low risk or the risk factor is minimal. • Dealers can have a friendly approach towards investors so that they invest in mutual funds. • There should be more and more advertising campaigns in rural areas so that it will increase awareness among rural investors. • Mutual funds should use modern technologies to render services to the investors. • The fund managers should invest the money in secured income related schemes so that the liquidity is ensured.

5.3 Conclusion Mutual funds are great source of returns for majority of families and it is especially valuable for the individuals who are at the age of retirement. In any case, normal investors are still limiting their choices to conventional choices like gold and fixed deposits when the showcase is overflowed with endless speculation openings, with shared stores. Typically since of need of data approximately how shared stores work, which makes numerous investors reluctant towards mutual fund investments. In reality, numerous a times, individuals investing in common reserves as well are hazy around how they work and how one can oversee them. So the organizations which are advertising mutual funds need to give total data to the imminent investors relating to mutual funds.

Running effective Mutual Fund requires total understanding of the quirks of the Indian Stock Market additionally the mindfulness of the small investors. It has made an endeavor to get it the financial behavior of mutual fund investors in association with the plot inclination and

53 choice. An important component within the victory of a marketing strategy is the capacity to satisfy investors’ desire.

The resultant of this study is palatable on the investor’s perception almost the mutual fund and the variables deciding their investment choice and inclinations. It will be profitable to the mutual fund markets to get it the investor’s discernment towards mutual fund and it would be enlightening to the investors.

CHAPTER 6

LEARNING EXPERIENCE

The experience of working as an intern at Ventura Securities Limited was fascinating and the experience I got was enough to understand regarding the stock market in India. An internship project is the essential part of the course mainly to gain knowledge about the working environment at the company and industry level. This helps us to get a clear picture on the corporate world and how important is work life balance.

Working in a stock broking firm enabled me understand some important aspects of Finance such as working of stock market, return and risk calculations, the impact of economic activities on the price fluctuations of stock and the concept of mutual funds.

At the same time, communication skills and the ability of multi-tasking during the working hours is important. To be successful, it is important to be punctual and honest.

This internship has personally and professionally helped me grow by giving me a real world experience, it has given me the opportunity of networking.

In this report, an attempt is made to analyse the customer perception towards mutual funds by using a structured questionnaire method and get the responses from the respondents and analysing them by using percentage method.