Mutual Funds

In: Business and Management

Submitted By pradeesiva
Words 3870
Pages 16
Business Management Dynamics Vol.2, No.2, Aug 2012, pp.01-09

Indian Investor’s Perception towards Mutual Funds
Dr. Nishi Sharma1 Abstract The concept of mutual fund emerged in Netherlands in 18th century and introduced in India by Unit Trust of India in1960s. As the mutual fund industry provides an option of diversified investment structure with varying degree of risk, it was supposed to be the most lucrative market for Indian investors. It was believed that it will surely tap the savings of common man. But in practice it failed to become a primary choice for investment to Indian investor. During almost six decades (1965-2011) the value of assets under management of mutual fund industry experienced great swings. As against the developed countries where almost every second investor is a mutual unit holder, the product could not get much popularity in India. In this reference, the present paper attempts to investigate the reasons responsible for lesser recognition of mutual fund as a prime investment option. It examines the investor’s perception with reference to distinct features provided by mutual fund companies to attract them for investing in specific funds/schemes. The study uses principal component analysis as a tool for factor reduction. The paper explored three factors named as fund/scheme related attributes, monetary benefits and sponsor’s related attributes (having respectively six, four and four variables) which may be offered to investors for securing their patronage. The results are expected to provide fruitful insight to mutual fund companies for tailoring their offers suitable to cater the needs and expectations of Indian investors. Key words: Fund/Scheme related attributes, Indian Investor, Monetary Benefits, Mutual Fund and Sponsor related qualities.

Available online ISSN: 2047-7031

INTRODUCTION The concept of mutual fund…...

Similar Documents

Mutual Fund Management

... [pic] [pic] Submitted by: Md. Shahidul Islam Semester: Summer 2012 ID: 136-34-22 Major: Finance & Banking. Submitted to: Dr. Mohammad Saleh Jahur Professor of Accounting & Finance Department of Finance & Banking Southern University, Bangladesh. MUTUAL FUND MANAGEMENT PRACTICES IN BANGLADESH MUTUAL FUND: Mutual fund are Non-banking or, non depositary financial intermediaries that gather funds from the saving and investing public and utilize the accumulated pool of funds by investing in stocks, bonds, currencies, futures and options contracts or a variety of other financial instruments . A key elements in any mutual fund is its ability to provide the investors with professional management of their funds along with other professional services such as record keeping, custodial services and prompt dissemination of information. Mutual Funds refers to a fund, managed by an investment company with the financial objective of generating high Rate of Returns. These asset management or investment management companies collects money from the investors and invests those money in different Stocks, Bonds and other financial securities in a diversified manner. Before investing they carry out thorough research and detailed analysis on the market conditions and market trends of stock and bond prices...

Words: 2700 - Pages: 11

Mutual Fund

... provide a presentable format of the report. 1.2 OBJECTIVES ? To know about the Mutual fund. ? To Study the various schemes offered by SBI mutual fund. ? To study in which scheme the investor invest the most. ? To study what are the factors affecting Mutual fund choice of Investor. Fig-1.1 1.3 SCOPE • To tap the future market. • To know about the future competition by understanding their unit wise sales. • To know about the sales potential. • To find out the expectations of the consumers about the products. • To study the factors affecting on SBI mutual fund services. • To retain the existing user and to convert the new prospects into buyers. Chapter 2 2.1 Introduction Of Mutual Fund - An Over View Mutual fund now represents perhaps the most appropriate investment opportunity for most small investors. A mutual fund uses the money collected from investors to buy those assets which are specifically permitted by its stated investment objective. In INDIA mutual fund is constituted as a ‘Trust’ and the investor the subscribes ‘Units’ issued by the fund, hence the term unit trust comes into the picture. Mutual fund, form of a Management investment company that combines the money of its shareholder and invests those funds in a wide variety of stocks, bonds, and so-called money market instruments. The latter include short term investment such as United States Treasury bills and other federal securities, commercial paper, and bank certificate of deposits...

Words: 5504 - Pages: 23

Mutual Fund

... |49 | | |Thematic Funds |49 | | |Index Funds |69 | | |Equity Linked Saving Schemes |91 | | |Diversified Equity Funds |106 | | |Debt Funds |126 | |6 |Conslusion | | |7 |Bibliography |137 | Ch. 1- Introduction The one investment vehicle that has truly come of age in India in the past decade is mutual funds. Today, the mutual fund industry in the country manages around Rs 329,162 crore (As of Dec, 2006) of assets, a large part of which comes from retail investors. And this amount is invested not just in equities, but also in the entire gamut of debt instruments. Mutual funds have emerged as a......

Words: 24333 - Pages: 98

Mutual Fund Analysis

...For the mutual fund you will need to tell us which fund you researched - there are a number of funds within each fund family - its symbol, its current price, the fees, what is the history, what type of fund, and what you like or don't like about it. There are a number of fund families such as Vanguard, American Funds, Franklin Templeton, Invesco, Legg Mason, and others. Dig deep and be complete. American Funds Capital World Growth/Income Symbol- RWIFX Class R-5 Current price- $36.29 52 week range - $30.82-36.90 Expenses – 0.5% Management fees 0.38% Other expenses – 0.12% Type of Fund: open-ended fund. Class R shares are generally available only to retirement plans. Class R-5 are generally available only to fee-based programs or through retirement plan intermediaries. No dealer compensation is paid from fund assets on sales of Class R-5 or R-6 shares. I like that the expenses are low. It is a lower risk fund. Although it is a growth fund, it doesn’t seem to fluctuate that much.   American Funds Capital World G/I R5 (RWIFX) 36.29 0.08(0.22%) Nov 27 Add to Portfolio Risk as of Oct 30, 2012 Get Risk for: Risk Overview Morningstar Risk Rating: 3 Number of Years Up 7 Number of Years Down 2 Best 1 Yr Total Return(Dec 30, 2003): 39.47% Worst 1 Yr Total Return(Dec 30, 2008): -38.21% Risk (Modern Portfolio Theory) Statistics 3 Years Statistic RWIFX Category Alpha (against Standard Index) 4.13 5.19 Beta (against Standard......

Words: 415 - Pages: 2

Mutual Fund

...Visit for more PROJECT REPORT ON Mutual Fund Industry In India BY MBAHOTSPOT.COM Brought to you by [] Visit for more projects THIIS PROJECT IS MADE BY TEAM OF MBAHOTSPOT.COM, FOR YOUR COSTOM PROJECT YOU CAN MAIL US AT or we will make available for you. For your personalize project report emails us at: or 1 Visit for more For your personalize project report emails us at: or 2 Visit for more INTRODUCTION OF MUTUAL FUNDS Mutual funds have become a very popular way to take some of the risk out of investing in individual stocks by investors. Mutual funds are a collection of stocks selected by mutual fund seller and sold to investors as shares in a fund. There are several types of funds that you can invest in. Some of the more popular types are technology funds, growth funds, security funds, and income funds. Mutual funds are very popular because they allow you to invest in a numbers of stocks therefore greatly reducing the risks associated with putting you money in an individual stock. Mutual funds have become one of the most attractive ways for the average person to invest their money. A mutual fund pools resources from thousands of investors and then diversifies its investment into many different holdings such as stocks, bonds...

Words: 13286 - Pages: 54

Mutual Fund

...CHAPTER 1 INTRODUCTION INTRODUCTION Much of the empirical research on mutual funds has not given any significant contribution for the mutual fund investor. Unfortunately many mutual fund investor have probably never heard about these research results or their implications. They have heard some rules of thumb guidelines from their brokers or peers about how to select a particular fund. The purpose of this present study is to identify the selection criteria, investors seem to use in selecting a mutual fund institution that suits the investors investment objective and also to identify the factors that are responsible for the selection of schemes floated by these organisations. Further it attempts to identify the reactions from the respondents' namely mutual fund unit holders of Mysore towards the performance of the different schemes. The researcher has employed interview schedule for the collection of data to elicit views of the Mutual Fund investors. Individuals from all walks of life have been showing increasing participation in the stock market, a place where one can see their money doubling in a period of time or disappearing depending on how they play the game. With the stupendous growth in the capital market, direct investment in the stock market has definitely become next to impossible. And yet investors undertake investments with minimal risks of the working of stock exchanges. But in order that investments prove profitable...

Words: 6628 - Pages: 27

Investment in Mutual Fund

...[Type the company name] | INVESTMENT IN MUTUAL FUNDS AND SHARES –PROS AND CONS | FINANCIAL MANAGEMENT | | TO, PRATIMA TRIVEDI | 12/9/2013 | REPORT BY- PARITOSH SINGH FS35 PRAKRITI FS40 PANKAJ KUMAR SINGH FS34 ROMANSHU VARSHNEY FS64 RAJNEESH SHARMA FS44 TABLE OF CONTENTS Table of Contents ACKNOWLEDGEMENT 4 A. MUTUAL FUNDS 5 I. INTRODUCTION 5 II. ROLE OF MUTUAL FUNDS IN THE FLNANCIAI, MARKET 5 III. MUTUAL FUNDS: STRUCTURE IN INDIA 5 IV. GROWTH IN MUTUAL FUND INDUSTRY 6 V. IMPACT OF THE GLOBAL FINANCIAL CRISIS 11 VI. GOVERNMENT POLICIES 11 VII. ADVANTAGES OF MUTUAL FUNDS 12  Diversification. 12  Expert Management. 12  Liquidity. 13  Convenience. 13  Reinvestment of Income. 13  Range of Investment Options and Objectives. 13  Affordability. 13 VIII. DISADVANTAGES OF MUTUAL FUNDS 14  No Control Over Portfolio. 14  Capital Gains. 14  Fees and Expenses. 14  Over-diversification. 14  Cash Drag. 15 IX. SOME TOP MUTUAL FUND OF INDIAN MARKET 15  SCHEME: ICICI Prudential Focused Blue chip Equity Fund (G) 15  SCHEME: BIRLA SL INDIA GENNEXT (G) 15  SCHEME: SBI DYNAMIC BOND FUND (G) 16  ICICI Prudential Equity - Volatility Advantage Fund 16 B. INVESTMENT IN SHARES 17 1. INTRODUCTION 17 2. ADVANTAGES OF INVESTING IN SHARES 17 i. Inflation Rate: 17 ii. Protected From The Eyes Of The Public: 17 iii. Growth Rate: 17 iv. Dividend: 17 v. Bonus Issues: 17...

Words: 5548 - Pages: 23

Mutual Fund

... Completion of Internship Program ii Acknowledgement iii Abstract iv-v 1. Introduction 1-4 * Purpose of the Project 2 * Methodology 3 * Limitation 4 2. About the Company 5-6 * Products Offered 5 * Other Companies of Sundaram Finance Ltd. 6 3. About Mutual Fund Industries 7-8 * Inception 7 * Definition 7 * Short History 7-8 * Conception and Performance in India 8 4. Working of Mutual Funds 9-16 * Why invest in Mutual Fund 12-13 * Selection Parameters 13-14 * Purchasing of Mutual Fund 14-15 * Income from Mutual Fund 15 * Selling of Mutual Fund 16 5. Tracking Mutual Fund’s Performance 17 6. Major Mutual Fund Companies in India 18-24 7. About the Consumer Behaviour Regarding MFs 25 8. Findings of the Study 26-34 9. Factors Influencing Fund Selection by Individual Investors 35-38 10. Conclusion 39 11. Recommendation 40-41 12. Annexure – I 42-49 * Questionnaire 43-49 13. Annexure – II 50 14. References 51 15. Glossary 52 ABSTRACT This project emphasizes on mutual fund. The project is mainly done with an objective to know about the investors/consumers behavior regarding the mutual fund, types of mutual funds and investment process. The...

Words: 9973 - Pages: 40

Mutual Fund Analysis

...Table of Contents Chapter 1 Introduction & Conceptual Framework of The Study 2-4 1. Background of the Report 2 2. Objectives of the Report 2 3. Coverage of the Report 3 4. Source and Methodology of Data Collection 3 5. Limitations of the Report 4 Chapter 2 Investment Corporation of Bangladesh (ICB) 6-11 1. Background of ICB 6 2. Objectives of ICB 6 3. Business Policies of ICB 6 4. Functions of ICB 7 5. Capital Structure of ICB 7 6. Shareholding Position of ICB 8 7. Management of ICB 9 8. Share Price 10 9. Transfer of Shares 10 10. Milestone of ICB 10 Chapter 3 Organizational Features of ICB 13-14 3.1 Regulatory Framework of ICB 13 3.2 Institutional Framework 13 3.3 Manpower 13 3.4 Number of Branches of ICB 14 3.5 Training of Employees 14 Chapter 4 Functions of Various Departments of ICB 16-27 4.1 Administrative Division 17 4.2 Merchandising Division 18 4.3 Funds Division 19 4.4 Accounts and Finance Division 20 4.5 Computer Division 22 4.6 Loan Appraisal Division 22 4.7 Implementation & Recovery 24 4.8 Legal Affairs Division 24 4.9 Audits and Method Department 25 4.10 Secretary’s Division 25 4.11 Branch and Subsidiary Control Division 26 4.12 Activities of Subsidiary Company’s 26 Chapter 5 Introduction of ICB Mutual Funds 29-36 5.1 Introduction 29 5.2 What Is Mutual Fund 29 5.3 Types...

Words: 12274 - Pages: 50

Mutual Fund Formation

... Asset Management Company may issue units to raise funds by way of pre-IPO placement and make public offerings (IPO) of the various schemes of the mutual fund from time to time in Bangladesh and foreign capital markets, on prior approval from the Regulatory Authority under the applicable laws, rules, regulations etc. 1.12 The party of the first part i.e. the Sponsor shall on the effective date make over to the Trust a minimum sum of Tk....(in figure)..... (in words...) only to initiate the Mutual Fund i.e......(name of the Fund). 13. The trust mutual fund shall have the powers of a body corporate to acquire, hold and dispose of property and enter into contract and may sue and be sued in its own name. The Asset Management Company shall perform the management activities of the Fund and all obligations and responsibilities carried in the name of the Fund or the Trustee shall be accomplished by the Asset Management Company on behalf of the Fund. 2. GENERAL PROVISIONS 2.1 Definitions In this Deed of Trust, unless there is anything repugnant to the subject or context, the following terms whenever used shall have the following meanings: 1. “wewagvjv” means the wmwKDwiwUR I G·‡PÄ Kwgkb (wgDPz¨qvj dvÛ) wewagvjv, 2001; 2. “Applicable Law” means the laws and any other instruments having the force of law in Bangladesh as they may be issued and are in force from time to time; 3. “Asset Management Company” or “Asset Manager” or ......

Words: 9927 - Pages: 40

Mutual Fund

...Mutual Funds What is a mutual Fund? This is a pool of money that is managed on behalf of investors by financial professionals such as a money manager. Funds invested could be used to buy stocks, bonds or other securities according to specific investment objectives (consider the IPS) that have been established for the fund. Investors received either unit of shares that represent a proportionate share of the pool of fund assets. Mutual funds are open-ended investment funds, that is, investors can contribute money to the fund at any time, and existing investors can return their units or shares to the fund for redemption at any time. Different types of mutual funds Mutual funds are typically categorized according to their investment objectives. Some focus on stocks, others on bonds, money market instruments or other securities. Some focus on Jamaican instruments while others focus on international, some on low risk etc. Common types of mutual funds include: Money Market Funds, Fixed Income Funds, Growth or Equity Funds, Balanced Funds, Global and Foreign Funds, Index Funds, etc. As a mutual fund investor, you may earn return on your investment from any distributions to you of the interest, dividends or capital gains earned by the funds; and any increase in the value of your fund shares or units. Please note that your fund could decrease in value causing you to lose money. Sources of Return Some mutual funds allow investors to determine whether they...

Words: 434 - Pages: 2

Mutual Fund Performance

...Case a) US Mutual Fund Performance Maastricht University | | | | School of Business & Economics | | | | Place & date: | Maastricht, 5th December 2013 | | | | Name, initials: | Müller-Wilmes, VEMCroughs, ZWFWang, WCGerdsen, BHARack, MD | | For assessor only | | ID number: | I6076025I6075042I6117368I6075829I6064576 | | 1. Content | | Study: | International Business Economics | | 2. Language structure | | Course code: | EBC | | 3. Language accuracy | | Group number: | 1 | | 4. Language: Format & citing/referencing | | Writing tutor name: | Mike Langen | | Overall: | | Writing assignment: | | | Advisory grade | | | | | Assessor’s initials | | Your UM email address:,,,, Table of Contents Everyone has to include at his part how we did it in excel and what the conclusion of his subpart implies for the problem statement Bas (introduction, and question 1) Introduction Descriptive Data, net of cost etc Are the returns percentage? What do we expect from momentum? Do we need a table of contents? Do we need to copy the excel sheets into the paper ? or just copying the numbers as we did so far? 1. Best suitable model to measure Performance and Investigation of the different investment...

Words: 707 - Pages: 3

Recommendations to Mutual Fund

... debt. Return on Equity: Metro has a high return on equity compared to Loblaw when taxes are excluded from the income statement. Investor value high ROE as it demonstrates that further investments can produce strong yields, being effectively utilized for optimal returns. Debt Interest Coverage: Metro’s high debt interest coverage is above both the industry average and Loblaw’s. This demonstrates a strong ability to service debt financing while demonstrating to investors that management has done an excellent job in managing their debt obligations. Acid Test/ Current Ratio: Although Loblaw’s has a higher current ratio than Metro this number is reflective of a high inventory. The acid test ratio of Metro is higher than Loblaw’s Acid Test proving Metro to be more liquid and less dependent on inventories to meet current liabilities. Working Capital Gap: The nature of Grocery industry allows a strong cash conversion cycle, minimizing reliance on operating credit facilities. Despite this industry trend Loblaw used 99% of its operating credit facility in 2008. Recommendations to Mutual Fund Metro Inc. represents a unique opportunity to invest, one that has both growth potential and yet minimizes risk exposure. Sale growth for Metro Inc. has increased 5% between 2008-2009 and 2009-2010. Poor growth figures for 2007 were largely a result of a shift on how tobacco was sold across Ontario. These figures compared to major competition; Loblaws’ reflects a promising...

Words: 2273 - Pages: 10

Debt Equity vs. Mutual Fund

...EQUITY DIVERSIFIED MUTUAL FUNDS V/s DIRECT EQUITY: A comparative study     Submitted in Partial Fulfillment for the   Degree of Bachelor of Business Studies     By Akshat Jain (Roll No. – 08/BBS/7160       Batch: 2008-2011     )     To DEEN DAYAL UPADHYAYA COLLEGE University of Delhi Shivaji Marg, Karampura New Delhi-110015 | | | ACKNOWLEDGEMENT Encouragement motivates a person towards one’s aim while guidance helps one to achieve it. Both encouragement and guidance take one towards success in one’s works. It would be difficult and almost impossible to achieve excellence without the blessings of God above and of elders. I convey my heartfelt affection and accord my deep sense of gratitude to Dr. Deepa Kamra, Faculty Guide for inspiring guidance, constructive criticism, unlimited interest and innovative ideas throughout the pursue of this manuscript. Akshat Jain DECLARATION I Akshat Jain have completed the Summer Training Project titled “EQUITY DIVERSIFIED MUTUAL FUNDS V/S DIRECT EQUITY” under the guidance of Dr. Deepa Kamra in the partial fulfillment of the requirement for the award of degree of Bachelor of Business Studies from Deen Dayal Upadhyaya College, Delhi University. This is an original piece of work & I have neither copied and nor submitted it earlier elsewhere. Akshat Jain Certificate from Internal...

Words: 9262 - Pages: 38

Mutual Fund

...CHAPTER-1 INTRODUCTION OF THE STUDY Background of the study: Mutual fund industry in India attaining maturity Even though the capital market attracts people there are several problems associated with it. While investing directly in to capital market one to be careful to judge the valuation of the stock and understand the complexities involved in the stock price fluctuations. So, a person with moderate knowledge of capital market generally prefers to invest in mutual funds. In recent times mutual fund industry in India is growing rapidly and is undergoing tremendous changes. The Indian mutual fund industry has witnessed several structural and regulatory reforms. Different Investment Avenue are available to investors. Mutual fund also offers good investment opportunities to the investors. Like all investment, they also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The investors may seek advice from experts and consultants including agents and distributors of mutual funds schemes while investment decisions. An objective to make the investors aware of functioning of mutual funds, an attempt has been made to provide information in question-answers format which may help the investors in taking investment decisions. Meaning of mutual fund: Mutual fund is a mechanism for pooling the resources by issuing units to the...

Words: 4625 - Pages: 19