SYNOPSIS

on
“A STUDY ON INVESTOR PERCEPTION TOWARDS MUTUAL
FUND WITH SPECIAL REFRENCE TO INDIA NIVESH
SECURITIES LIMITED”
Submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

OF

BANGALORE UNIVERSITY

By

SRINIVAS.V

Reg. No: 17KXCMD089

Under the guidance of

Internal Guide: External Guide:

Mrs. Shreelatha H.R Mr. Prem Kumar
Assistant Professor Key Equity Manger
Surana College India nivesh securities ltd

SURANA COLLEGE POST GRADUATE DEPARTMENTS

Kengeri, Satellite Town
Bangalore-560060
2018-2019
“A STUDY ON INVESTOR PERCEPTION TOWARDS MUTUAL FUNDS
WITH SPECIAL REFRENCE TO INDIA NIVESH SECURITES LIMITED”

1. INTRODUCTION

1.1 Introduction to dissertation

This dissertation is carried out in fourth semester for partial fulfillment of the requirement for the
award of degree of MBA in Bengaluru university undertakings this dissertation projects will help
exposure about understanding the investor awareness. This dissertation is carried out understand
the investor behavior towards to mutual funds by taking special references to India nivesh
securities private limited.
A mutual fund is a type of financial vehicle made up of a pool of money collected from many
investors to invest in securities such as stocks, bonds, money market instruments, and other assets.
Mutual funds are operated by professional money manager, who allocate the fund’s assets and
attempt to produce capital gains or income for the fund’s investors. A mutual fund’s portfolio is
structured and maintained to match the investment objectives stated in its prospectus. Mutual funds
give small or individual investors access to professionally managed portfolios of equities, bonds
and other securities. Each shareholder, therefore, participates proportionally in the gains or losses
of the fund. Day by day Indian financial market is becoming competitive and the supply of various
financial instruments needs to be in equilibrium to the demand perspectives of the investor. The
prime drive of any investment is to get maximum return with a minimum risk and mutual funds
provides the opportunity for the investor. However, this study is going to focuses on the
relationship between investment decision and factors like liquidity, financial awareness, and
demography. It found low risk funds and liquidity of funds scheme are having impact on the
investor’s perception for investing in the mutual fund.
2. REVIEW OF LITERATURE

Sharma, Aug 2012: The concept of mutual fund emerged for the first time in Netherlands in
the18th century and introduced in India by Unit Trust of India (UTI) in1960s. In the late 80s
Indian mutual fund market witnessed entry of number of public sector players and in 1993 private
sector (including foreign fund management companies) was permitted to enter into the market.
The entry of private sector led to the availability of more options to the investors and tougher
competition to market players. One of the major events in the history of mutual fund industry
studied investor’s risk and return perception towards mutual funds. The study examined investor's
perception towards risk involved in mutual funds, return from mutual funds in comparison to
other financial avenues, transparency and disclosure practices. The study investigated problems
of investors encountered with due to unprofessional services of mutual funds

krishna, 2007: Mutual funds have increasingly become the investor’s vehicle of choice for
long-term investment. It becomes pertinent to study the performance of the mutual fund. The
relation between risk-return determines the performance of a mutual fund scheme. As risk is
commensurate with return, therefore, providing maximum return on the investment made with in
the acceptable associated risk level helps in segregating the better performers from the laggards.
Many asset management companies are working in India, so it is necessary to study the
performance of it which may be useful for the investors to select the right mutual fund.

Jasvir Kaur1: Fixed investment is like bonds, fixed deposits etc. and variable investment
includes buying of equity shares. So, to gain something in future, people used to invest in various
kinds of investment for long term or short term. There are Various kinds of investment includes
share market, debentures or bonds, money market instruments, mutual funds, life insurance, real
estate, precious objects, derivatives, non-marketable securities. Each kind of investment has its
different features like terms of risk, return, term etc. Mutual funds are professionally managed
funds by an expert. It offers us diversification of risk. In this type of investment, people collectively
buy and sell stocks through a single hand.
Singh, March-2012: A Mutual Fund pools the money of people with certain investment goals.
The money invested in various securities depending on the objectives of the mutual fund scheme
and the profits (or loss) are shared among investors’ in proportion to their investment. Investments
in securities are spread across a wide cross-section of industries and sectors. Diversification
reduces the risk because all stocks may not move in the same direction in the same proportion at
the same time. Mutual fund issues units to the investors’ in accordance with quantum of money
invested by them. Investors’ of mutual funds are known as unit holders

Mane, 2012: 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 or skill
to manage their own portfolio can invest in mutual funds. By investing in mutual funds, you can
gain the services of professional fund managers, which would otherwise be costly for an individual
investor.

prasad: Mutual Funds have become a widely popular and effective way for investors to
participate in financial markets in an easy, low-cost fashion, while muting risk characteristics by
spreading the investment across different types of securities, also known as diversification. It can
play a central role in an individual's investment strategy. They offer the potential for capital growth
and income through investment performance, dividends and distributions under the guidance of
portfolio manager who makes investment decisions on behalf of mutual fund unit holders.

MS.M.KALAISELVI: All investments whether in shares, debentures or deposits involve

risk. Share value may go down depending upon the performance of the company, the industry,
state of capital markets and the economy. Generally, however, longer the term, lessor the risk.
Companies may default in payment of interest and principal on their debenture or bonds or
deposits. While risk cannot be eliminated, skilful management can minimize risk. Mutual Funds
help to reduce risk through diversification and professional management. The experience and
expertise of Mutual Fund managers in selecting fundamentally sound securities and timing their
purchases and sales help them to build a diversified portfolio that minimizes risk and maximizes
returns.
Mc Donald: Much of the empirical research on mutual funds has not given any significant
contribution for the mutual fund investor. Unfortunately, many mutual fund investors 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 cantina, investors seem to use in selecting
a mutual fund institution that suits the investor’s investment objective and also to identify the
factors that are responsible for the selection of schemes floated by these organisations.

Sharma: After investing in mutual fund schemes, the investor need not bother about anything
because mutual fund is a professionally managed investment option and also having the professional
fund management teams that takes the responsibility of investing in stocks and shares after due analysis
and research. Mutual fund is a generic term for various types of investment vehicles such as growth
option, index funds, tax saving schemes, open-ended investment etc. At Present, there are 42 mutual
funds players with several schemes and different options working in competitive market.

Prabh: A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money, thus collected, is then invested in capital market instruments
such as shares, debentures and other securities. The income earned through these investments and
the capital appreciation realized is shared by its unit holders in proportion to the number of units
owned by them. Thus, a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost.

3. NEED FOR THE STUDY

To examine the investor behavior towards investing in the mutual fund because people are getting
diversifying in various kinds of investment like gold and real estate and fixed deposit various kinds
of instruments and so on. So this will give chance to identifying investor perception on mutual
fund. We can see what the position of investment people are given contributing to mutual fund by
studying this topic.
4. STATEMENT OF THE PROBLEM
To analyze the human behavior tendency towards to mutual fund because people have different
idea and different thoughts to invest in various kinds of instruments the main objectives of
researcher to know the level of awareness of mutual funds and by investing in mutual fund and
also, to know the level of perception of investor about investing towards mutual fund. And if they
prefer to invest in mutual fund what the position of people are ultimately influence by while
investing in mutual fund. And also, to examine about the what type of mutual fund if they people
are prefer to invest in mutual fund by taking guide line from the India nivesh securities limited.

5. OBJECTIVES
1. To study the level of awareness of mutual funds.

2. To analyze the perception of investor in mutual funds.

3. To study the factors considered by investor and those which ultimately influence him
while investing.

4. To suggest the analysts about the perception of investor.

6. SCOPE OF THE STUDY

The study is conducted to know the perception of mutual fund a survey is conducted in stock
broking company which acts has a part of my study to know the level of awareness about mutual
funds.

7. RESEARCH METHODOLOGY
7.1 TYPE OF RESEARCH

Descriptive research allows the research to gain better understanding of the concept and provides
direction in order initiate a more structured research. The descriptive research designed used for
this study. The observation checklist on a study on investor perception towards mutual fund with
special reference at India nivesh securities private limited.
7.2 SOURCES OF DATA

The present study of the data will be collected from journals and research articles on both primary
data and secondary data.

Primary data:

Primary data is the one which is collected for the first time by the researcher for the first time by
the researcher for the purpose of research.

Secondary data:

The secondary sources of data will have about the research articles, journals, and websites.

7.3 Sampling

7.3.1 Sampling Type

For this type of sampling they had used the convenience sampling that is non-
probability sampling.

7.3.2 Sampling Frame

Investor of Bengaluru city

7.3.3 Sampling Unit

India nivesh securities private limited.

7.3.4 Sample Size

Sample size is 100

7.4 TOOLS FOR DATA COLLECTION

The structured questionnaire will be collected in the tools of data collection.
7.5 PLAN OF ANALYSIS
1. It will have the representation of diagrams, graphs will be used.

2. The appropriate statistical tools and techniques will be used for the analysis of the data.

3. To make the research useful the recommendations and discovery will be given to an
analysis.

8 LIMITATIONS OF THE STUDY

The project has some limitations because it is totally based on efforts of individuals.

 The study was conducted only for period of 1 month.

 The study is carried out only among the investor in Bengaluru city.
 The sample was taken on the basis of convenience.
 Sample size limited for 100 only.
 The information provided by the organizations was limited to a far extent due to drawbacks
like competition.

CHAPTERIZATION SCHEME

Chapter 1: Introduction
This chapter consists that an introduction title for topic chosen to the subjects of
organization.

Chapter 2: Review of literature and research design

This chapter explains the research objectives and methodology used for the study.

Chapter 3: Profile of the selecting organization and Respondents

Under this chapter the data analysis will be carried out interpretation will be presented

Chapter 4: Data analysis and interpretation

In this chapter findings, Suggestion, and conclusion will be provided.

Chapter 5: Findings, conclusions, and Recommendation

In this chapter recommendation will be provided.
REFERENCES
Jasvir Kaur1, N. A. (n.d.). Option, A Study on Investor’s Perception towards Mutual Funds
as an Investment, 30.

krishna. (2007). A Comparative Study of Performance of Top 5 Mutual Funds in India. p.

50.

Mane, P. P. (2012). A Study of Investors Perception towards Mutual Funds in the City of
Aurangabad. 50.

Mc Donald, J. G. (n.d.). INVESTORS' PERCEPTION TOWARDS MUTUAL FUNDS.

280.

MS.M.KALAISELVI. (n.d.). A STUDY ON INVESTORS. 25.

patna, a. (n.d.). A Comparative Study of Performance of Top 5 Mutual Funds in India.

30.

Prabh, P. G. (n.d.). Perception of Indian Investor towards investment in mutual funds

with special reference to MIP Funds. 80.

Sharma. (n.d.). THE DEVELOPMENT OF MUTUAL FUND INDUSTRY IN INDIA.

250.

Sharma, D. N. (Aug 2012). Indian Investor’s Perception towards Mutual Funds. 20.

Singh, D. B. ((March-2012)). A study on investors’ attitude towards mutual funds as an

investment option. International Journal of Research in Management, 70.

Signature of the student signature of the guide

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