Industry Internship and Report on “A STUDY ON CUSTOMER PERCEPTION TOWARDS MUTUAL FUNDS WITH PARTICULAR REFERENCE TO VENTURA SECURITIES LTD” BY 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.