A PROJECT REPORT

ON

Investment Planning through Mutual Funds

SUBMITTED TO
MAEER’s MIT SCHOOL OF BUSINESS

BY

HEMANT R. JADHAV
Roll No. 260213
Batch No. 26TH “B”

IN PARTIAL FULFILLMENT OF
POST GRADUATE DIMPLOMA IN MANAGEMENT
(PGDM)

March, 2009-10

MAEER’s MIT SCHOOL OF BUSINESS

PUNE
 Table of
CONTENTS
Chapter No. Title Page No.
Declaration from student (i)
Certificate from organisation (ii)
Certificate from Guide (iii)
Acknowledgement (iv)
List of Tables (v)
List of Graphs (vi)
List of charts (vii)
List if abbreviations, (viii)
Executive summary (ix & x)
I Introduction 1 to 25
1.1 Background of the study 2 to 7
1.2 Theoretical background of the topic 8 to 21
1.3 Company profile 22 to 24
1.4 Objectives of the study 24
1.5 Scope of the study 25
II Research Methodology 26 to 28
2.1 Research design 27
2.2 Primary data 27
2.2 Secondary data 27
2.3 Sampling 27
2.3.1 Sampling Procedure 27
2.3.1 Sample size 27
2.3.2 Sample Design 28
2.4 Limitations 28
III Data Processing and Analysis 29 to 54
IV Findings 55, 56
V Conclusions 57, 58
VI Recommendations 59, 60

Bibliography 61, 62
Annexure 63 to 65
A Questionnaire/s 64, 65
 DECLARATION

I, Mr. Hemant R. Jadhav hereby declare that this project report

is the record of authentic work carried out by me during the

period from May-09 to July-09 and has not been submitted to

any other University or Institute for the award of any degree /

diploma etc.

Signature

(HEMANT JADHAV)
Date

(i)
 CERTIFICATE FROM THE COMPANY

(On the letterhead of the Company, given and signed by

the concerned authority in the Company / Organisation
where student has done his Summer Training. It should
also have Company Seal /Stamp.)
 CERTIFICATE

This is to certify that Mr. HEMANT R. JADHAV of

MAEER’s MIT School of Business has successfully completed
the project work titled Investment Planning through Mutual
Funds in partial fulfillment of requirement for the completion
of PGDM course as prescribed by the MAEER’s MIT School
of Business.

This project report is the record of authentic work carried out by

him/her during the period from May-09 to July-09. He has
worked under my guidance.

Signature
(PROF. NEERAJ MARATHE)
Project Guide (Internal)
Date:

Counter signed by

Director
Date:
 ACKNOWLEDGEMENTS

With regards to my Project on Mutual Fund, I take this opportunity to

acknowledge and express my gratitude towards some of the most eminent
persons whose presence is noteworthy & seminal in giving me a grand
opportunity to associate myself with an esteemed organization like
“PRUDENT CORPORATE ADVISORY SERVICES LTD”.

First and foremost I would like to express gratitude to MR. SUBRATA NANDI
(RELATIONSHIP MANAGER), my company guide, for his invaluable guidance and
co-operation during the course of the program. He provided us with his assistance and
support whenever needed that has been instrumental in completion of this program.

I am thankful to my college internal guide Prof. NEERAJ MARATHE for their

helpful guidance to stick to the right path in the project. A special words of thanks to
DIRECTOR OF MIT-SOB for giving me the opportunity to work on this report.

Finally I would like to thank those who directly or indirectly have contributed for the
completion of my project report.

HEMANT JADHAV

(iv)
 List of Tables
Table No. Title Page No.
1.01 Here is a list of top Indian mutual funds 21
3.01 Age distribution of the Investors of Pune 30
3.02 Educational Qualification of investors of Pune 31
3.03 Occupation of the investors of Pune 32
3.04 Monthly Family Income of the Investors of 33
Pune
3.05 Investors invested in different kind of 34
investments
3.06 Preference of factors while investing 35
3.07 Awareness about Mutual Fund and its 36
Operations
3.08 Source of information for customers about 37
Mutual Fund
3.09 Investors invested in Mutual Fund 38
3.10 Reason for not invested in Mutual Fund 39
3.11 Investors invested in different Assets 40
Management Co.
3.12 Preference of Investors for future investment 41
in Mutual
3.13 Channel Preferred by the Investors for Mutual 42
Fund
3.14 Mode of Investment Preferred by the 43
Investors
3.15 Preferred Portfolios by the Investors 44
3.16 Option for getting Return Preferred by the 45
Investors
3.17 Preference of Investors whether to invest in 46
Sectoral Funds
3.18 Pointers to Measure Mutual Fund 47
Performance
3.19 Analysis of Mutual Funds 48
3.20 Performance of Mutual Funds 50
3.21 Comparison of Investment products 51

(v)
 List of Graphs

Graph No. Title Page No.

3.01 Age distribution of the Investors of Pune 30
3.02 Educational Qualification of investors of 31
Pune
3.03 Occupation of the investors of Pune 32
3.04 Monthly Family Income of the Investors of 33
Pune
3.05 Investors invested in different kind of 34
investments
3.06 Preference of factors while investing 35
3.07 Awareness about Mutual Fund and its 36
Operations
3.08 Source of information for customers about 37
Mutual Fund
3.09 Investors invested in Mutual Fund 38
3.10 Reason for not invested in Mutual Fund 39
3.11 Investors invested in different Assets 40
Management Co.
3.12 Preference of Investors for future investment 41
in Mutual
3.13 Channel Preferred by the Investors for 42
Mutual Fund
3.14 Mode of Investment Preferred by the 43
Investors
3.15 Preferred Portfolios by the Investors 44
3.16 Option for getting Return Preferred by the 45
Investors
3.17 Preference of Investors whether to invest in 46
Sectoral Funds
3.18 Comparison of Two Funds performance 49
3.19 Comparison of Mutual Funds returns with 49
Sensex Returns
3.20 Aggressive Growth Portfolio 53
3.21 Balanced Portfolio 54

(vi)
 List of Charts

Chart No. Title Page No.

1.01 Investment Planning 4
1.02 Mutual Fund Operation Flow Chart 8
1.03 Entities involve in Mutual Funds 10
1.04 The flow chart below describes 12
broadly the working of a mutual fund
1.05 The graph indicates the growth of 14
assets over the years
1.06 Categories Of Mutual Fund 14
1.07 Advantages of Mutual Funds 17

(vii)
 List of Abbreviations

Abbreviation Full form

AMC Asset Management Company
ULIP Unit Linked Insurance Plan
FD Fixed Deposit
BSE Bombay Stock Exchange
NSE National Stock Exchange
NAV Net Asset Value
UTI Unit Trust of India
FMCG Fast Moving Consumer Goods
MF Mutual Fund
SEBI Stock Exchange Board of India
AUM Asset Under Management
IDBI Indian Development Bank of India
RBI Reserve Bank of India
LIC Life Insurance Corporation of India
GIC General Insurance Corporation of India
SBI State Bank of India
PNB Panjab National Bank
BOB Bank of Baroda
CD Certificate of Deposit
CP Commercial Paper
T-Bills Treasury Bills
MIP Monthly Income Plan
PAN Permanent Account Number
SEC Securities & Exchange Commission
RCA Rupee Cost Averaging
OCB Overseas Corporate Bodies
FII Foreign Institutional Investors

(viii)
 EXECUTIVE SUMMARY

In few years Mutual Fund has emerged as a tool for ensuring one’s financial well

being. Mutual Funds have not only contributed to the India growth story but have also

helped families tap into the success of Indian Industry. As information and awareness

is rising more and more people are enjoying the benefits of investing in mutual funds.

The main reason the number of retail mutual fund investors remains small is that eight

in ten people (from the general view) with incomes in India do not know that mutual

funds exist. But once people are aware of mutual fund investment opportunities, the

number who decide to invest in mutual funds increases to as many as one to two in

five people. The trick for converting a person with no knowledge of mutual funds to a

new Mutual Fund customer is to understand which of the potential investors are more

likely to buy mutual funds and to use the right arguments in the sales process that

customers will accept as important and relevant to their decision.

This Project gave me a great learning experience and at the same time it gave me

enough scope to implement my analytical ability. The analysis and advice presented

in this Project Report is based on market research on the saving and investment

practices of the investors and preferences of the investors for investment in Mutual

Funds. This Report will help to know about the investors’ Preferences in Mutual Fund

means Are they prefer any particular Assets Management Company (AMC), Which

type of Product they prefer, Which Option (Growth or Dividend) they prefer or Which

Investment Strategy they follow (Systematic Investment Plan or One time Plan). This

Project as a whole can be divided into two parts.

(ix)
The first part gives an insight about Mutual Fund and its various aspects, the

Company Profile, Objectives of the study, Research Methodology. One can have a

brief knowledge about Mutual Fund and its basics through Project.

The second part of the Project consists of data and its analysis collected through

survey done on 200 people. For the collection of Primary data I have made surveyed

of 200 people. I have taken the interview of People through cold call, telephonic

interview, visit to different offices to meet various people as well as people coming to

the office i.e. where I have done my Project. This Project covers the topic

“INVESTMENT PLANNING THROUGH MUTUAL FUNDS.” The data collected

has been well organized and presented. I hope the research findings and conclusion

will be of use.

(x)