PROJECT REPORT

ON

“STRATEGIC SALES TECHNIQUES FOR FINANCIAL ADVISOR

SERVICES”

AT
THE LEADING SOLUTIONS, NEW DELHI

FOR
THE PARTIAL FULFILLMENT OF TWO YEARS FULLTIME
POST GRADUATE DIPLOMA IN MANAGEMENT

BY
Vivek Singh
Parihar

(Roll No. 23207)

Batch 2023-2025

DR. D. Y. PATIL B-SCHOOL

SR. NO. 87-88, BENGALURU-MUMBAI EXPRESS BYPASS, TATHAWADE, PUNE,
MAHARASHTRA 411033
 STUDENT DECLARATION

I, VIVEK SINGH PARIHAR, hereby declare that the presented Summer Internship project report titled
“STRATEGIC SALES TECHNIQUES FOR FINANCIAL ADVISOR SERVICES” is uniquely
TheatLeading solutions, New Delhi.
prepared by me after the completion of 60 days' work

I also confirm that the report is only prepared for my academic requirements and not for any other
purpose. It might not be used with the interest of the opposite party of the corporation.

Vivek Singh Parihar

Roll no.: 23207
PGDM Batch 2023-2025
Dr. D. Y. Patil B-School, Pune
COMPANY CERTIFICATE
B-SCHOOL CERTIFICATE
 ACKNOWLEDGEMENT

I would like to express my deepest gratitude to all those who have supported me throughout my
summer internship project during my summer internship project. This internship has been a
significant learning experience, and I am immensely grateful for the guidance and encouragement
I have received.
First and foremost, I would like to thank The Leading Solutions or providing me with the
opportunity to undertake this internship. I am thankful for the trust and confidence they placed in
me, allowing me to contribute to the organization's objectives. I am indebted to my internship
supervisor, MR. ARPIT PAWAR, for their valuable guidance and mentorship. Their expertise and
willingness to share knowledge have been instrumental in shaping my understanding of the
industry and improving my skills. Their constant support and constructive feedback have
contributed significantly to the success of my project. I would like to express my gratitude to my
faculty mentor, SHOMA MA’AM for their continuous support and guidance. Their wisdom and
expertise have been crucial in shaping the direction of my project. I am also grateful to the faculty
members and staff of Dr. D. Y. Patil B-School for their encouragement and support during my
summer internship program.

Lastly, I would like to thank my family and friends for their unwavering support and understanding.
Their encouragement has been a constant source of motivation throughout this internship. In
conclusion, this summer internship project has provided me with practical insights into the world
of business management. I am thankful to everyone who has played a part in making this
internship a valuable and enriching experience. The knowledge and skills acquired during this
internship will undoubtedly shape my professional journey, and I am eager to apply them in my
future endeavors.
Sincerely,

VIVEK SINGH PARIHAR

Roll no: 23207
PGDM [Batch 2023-2025]
 TABLE OF CONTENTS

Sr.No. Chapter Page No

1 Executive Summary 1

2 Introduction 2-13
14-18
3 Conceptual Framework /Review Of Literature

4 Company Profile 19-34

5 Research Methodology 35-38
6 39-45
Data Analysis And Interpretation

46
7 Conclusion

8 References 47
 EXECUTIVE SUMMARY

Mutual Funds have emerged as a significant investment vehicle, pooling the savings of multiple investor
who share a common financial goal. This collective fund is managed by professional asset managers wh
invest in a diversified portfolio of securities, including stocks and bonds. The mutual fund industry in Ind
has seen substantial growth, driven by increasing awareness and participation among retail investors.
Despite this growth, a significant portion of the population remains unaware of mutual funds as an
investment option. The advantages of mutual funds include professional management, diversification,
liquidity, and regulatory oversight, making them accessible to average investors. As the market evolves,
understanding investor preferences and improving financial literacy will be crucial for further expanding
reach of mutual funds. The Disadvantages of Mutual Funds are Cost, Index Does Better, Fees, No Contro
over Investments, Profitability of High returns reduced significantly, and Personal Tax situation is not
considered. Mutual Funds have to follow specific rules and regulation which are prescribed by the SEBI
AMFI is the apex body of all the Asset Management companies and is registered with the SEBI. Associa
of Mutual Funds India has brought down the Indian Mutual Fund Industry to a professional and healthy
market with ethical lines enhancing there are many types of mutual funds in India. You can classify on t
basis of BY STRUCTURE (Open Ended Schemes , Close-Ended Schemes & Interval schemes) ,BY
NATURE (Equity Fund, Debt Fund , Balanced Fund ) , BY INVESTMENT OBJECTIVE (Growth Schemes
, Income Schemes , Balanced Schemes & MoneyMarket Schemes) , OTHER SCHEMES (Tax Saving
Schemes , Index Schemes , Sector Specific).Mutual Funds are very easy to buy and sell. You can buy
mutual funds directly from company or a broker. Before Investing in Mutual Funds one has to look at all
factors like performance of the mutual funds from last 5 years , the returns given by mutual funds from
years & the company’s net worth has to be considered there are two types of Mutual Funds in India Pub
Sector Mutual Fund & private sector mutual Fund. In Public Sector Mutual Funds there are UTI Mutual
Fund ,State bank of India Mutual Funds , Bank of Baroda Mutual Funds TATA Mutual Fund & In Private
sector Mutual Funds there are Aditya Birla Sun Life Mutual , HDFC Mutual Fund ,ICICI Prudential Mutua
Fund , Parag Mutual Fund etc..The Most trend of Mutual Funds is the aggressive expansion of Mutual
Funds. Nowadays there is lot of Competition within the Mutual Fund as there are lot of private sector &
Public sector mutual funds have entered the industry.

Returns Comparison has been done between three Mutual Fund Companies like HDFC
Mutual Fund ,ICICI Mutual Fund & Aditya Birla Mutual Fund. In this comparison we
had taken both small & midcap companies. In which markets they have invested the
investors’ money and how the returns for the 5 years has been done. It gives you an Idea
how you can and where you can invest.

“Mutual Funds are Subject to Market Risk, Please read the offer document
before Investing

1
 CHAPTER 1

INTRODUCTION
MUTUAL FUNDS
There is a lot of opportunity for an investor to invest in financial market with
an investable surplus. There are various investment opportunities such as
Bank its, corporate debenture, and Bonds where there are low risks
involved but mean while ret urns are also low. Simultaneously he can opt
for stock of companies where ret urns and risks on investment both are
very high. The recent trends in the stock market shows a result that an
average retail investor always lost with periodic bearish tends. So, by such
tends people starts opting for portfolio managers with in stock markets
who invest on their behalf. Thus, we had wealth management services
provided by many institutions. However, they proved too costly for a small
investor. Therefore, these investors have found a good shelter with the
CONCEPT OF MUTUAL FUND:
mutual funds.
A mutual fund is a common pool of money were investors plays an important

role in contributing the investment according to stated objective. The

ownership of the fund may be joint or mutual belongs to all the investors. A

single investor ‘s ownership of the fund is the same proportion as the amount of

the contributions made by him or her bears to the total amount of the fund.

Mutual funds are trusts, which accept savings from investors and invest the

same in diversified financial instruments in terms of objectives set out in the

trusts deed with the view to reduce the risk and maximize the income and

capital appreciations for distributions for the members. A mutual fund is a

corporation and the fund manager ‘s interest is to professionally manage the

funds provided by the investors and provide a return on them after deducting

reasonable management fees.

2
DEFINITIONS:
A mutual fund is an investment that pools your money with the money of an unlimited number of
other investors. In ret urn, you and other investors each own shares of the fund. The Fund ‘s
assets are invested according to an investment objective into the fund’s portfolio of investments.
Aggressive growth fund seeks long term capital growth by investing primarily in stock of fast-
growing smaller companies or market segments. Aggressive growth funds are also called capital
appreciation funds.
ADVANTAGES OF MUTUAL FUNDS:
If mutual funds are emerging as the favourite investment vehicle, it is because of the many
advantages they have over other forms and the avenues of investing, particularly for the investor
who has limited resources available in terms of capital the ability to carry out detailed research
and market monitoring. The following are the major advantages offered by mutual funds to all
investor.

1. Portfolio Diversifications:
Each investor in the fund is a part of all the fund’s assets, thus enabling
him to hold a diversified investment portfolio even with a small amount of
investment that would otherwise require big capital.

2. Professional Management:
Even if an investor has a big amount of capital available to him, he
benefits from the professional management skills brought in by the
fund in the management of the investor’s portfolio. Few investors have
the skills and resources of their own to succeed in today’ s fast moving,
global and sophisticated markets.
3. Reduction/Diversifications of Risk:
When an investor invests directly, all the risks of potential loss in his
own, whether he places a deposit with a company or a bank, or he
buys a share or debenture on his own or in any other form. While
investing in the pool of funds with investors, the potential losses are
also shared with other investors. The risk reduction is one of the most
important benefits of a collect ive investment vehicle like the mutual
fund.
4. Reduction of Transaction Costs:
What is true of risk as also true of the transaction costs. The investor
bears all the costs of investing such as brokerage or custody of
securities. When
going through a fund, he has the benefit of economies Of

3
 scale; the funds pay lesser costs because of larger volumes, a benefit passed
to its investors.

5. Liquidity:

Often, investors hold shares or bonds they cannot directly, easily

and quickly sell. When they invest in the units of a fund, they can
generally cash their investments any time, by selling their units
to the fund if opened, or selling them in the market if the fund is
close-end.
LIMITATION OF INVESTING THROUGH MUTUALFUNDS:

1. No Control Over Costs

An Investor in a mutual fund has no control of the overall costs of investing.

The investor pays investment management fees as long as he remains with the
fund, albeit in return for the professional management and research. Fees are
payable even if the value of his investment is declining.

2. No Tailor-Made Portfolio:
Investors who invest on their own can build their own portfolio of shares and
bonds and other securities, investing through fund means he delegates this
decision to the fund manager. The very high net worth individuals or large
corporate investors may find this to be a constraint in achieving their
objectives.

3. Managing A Portfolio of Funds:

Availability of a large number of fund’s can actually mean too much
choice for the investor. He may again need adv ice on how to select a fund
to achieve on how to select a fund to achieve his objectives quite similar to

4
A). BY STRUCTURE

• Open – Ended Schemes:

An open-end fund is one that is available for subscription all through the
year. These do not have a fixed maturity. Investors can conveniently buy
and sell units at Net Asset Value (“NAV”) related prices. The key feature of
open-end schemes is liquidity.
• Close – Ended Schemes:
A closed-end fund has a stipulated maturity period which generally ranging from
3 to 15 years. The fund is open for subscription only during a specified period.
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 they 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.

5
Interval
• Schemes:
Interval Schemes are that scheme, which combines the features of open-
ended and close- ended schemes. The units may be traded on the stock
exchange or may be open for sale or redemption during pre-determined
intervals at NAV related prices.

B) BY NATURE:-
These funds invest a maximum part of their corpus into equities holdings. The
structure of the fund may vary different for different schemes and the fund
manager’s outlook on different stocks. The Equity Funds are sub-classified
depending upon their investment objective, as follows:
• Diversified Equity Funds
• Mid-Cap Funds
• Sector Specific Funds
• Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon; thus, Equity funds rank high
on the risk-return matrix.

• Debt Funds:
The objective of these Funds is to invest in debt papers. Government
authorities, private companies, banks and financial institutions are some of
the major issuers of debt papers. By investing in debt instruments, these
funds ensure low risk and provide stable income to the investors. Debt
funds are further classified as:
• Gilt Funds: Invest their corpus in securities issued by Government, popularly
known as Government of India debt papers. These Funds carry zero Default
risk but are associated with Interest Rate risk. These schemes are safer as they
invest in papers backed by Government.
Income Funds: Invest a major portion into various debt instruments such as
•
bonds, corporate debentures and Government securities.

• MIPs: Invests maximum of their total corpus in debt instruments while they
take minimum exposure in equities. It gets benefit of both equity and debt
market. These scheme ranks slightly high on the risk-return matrix when
compared with other debt schemes.

6
 • Short Term Plans (STPs): Meant for investment horizon for three to six
months. These funds primarily invest in short term papers like Certificate
of Deposits (CDs) and Commercial Papers (CPs). Some portion of the
corpus is also invested in corporate debentures.

• Liquid Funds: Also known as Money Market Schemes, These funds

provides easy liquidity and preservation of capital. These schemes invest
in short-term instruments like Treasury Bills, inter-bank call money
market, CPs and CDs. These funds are meant for short-term cash
management of corporate houses and are meant for an investment
horizon of 1day to 3 months. These schemes rank low on risk-return
matrix and are considered to be the safest amongst all categories of
mutual funds.

Balanced
• Funds:
As the name suggest they, are a mix of both equity and debt funds. They
invest in both equities and fixed income securities, which are in line with pre-
defined investment objective of the scheme. These schemes aim to provide
investors with the best of both the worlds. Equity part provides growth and the debt
part provides stability in returns.

Each category of funds is backed by an investment philosophy, which is

predefined in the objectives of the fund. The investor can align his own investment
needs with the funds objective and invest accordingly.

C) BY INVESTMENT OBJECTIVE:

• Growth Schemes:
Growth Schemes are also known as equity schemes. The aim of these
schemes is to provide capital appreciation over medium to long term.
These schemes normally invest a major part of their fund in equities and
are willing to bear short-term decline in value for possible future
appreciation.
• Income Schemes:
Income Schemes are also known as debt schemes. The aim of these
schemes is to provide regular and steady income to investors. These
schemes
7
 generally invest in fixed income securities such as bonds and corporate
debentures. Capital appreciation in such schemes may be limited.

• Balanced Schemes:
Balanced Schemes aim to provide both growth and income by periodically
distributing a part of the income and capital gains they earn. These
schemes invest in both shares and fixed income securities, in the
proportion indicated in their offer documents (normally 50:50).

• Money Market Schemes :

Money Market Schemes aim to provide easy liquidity, preservation of
capital and moderate income. These schemes generally invest in safer,
short-term instruments, such as treasury bills, certificates of deposit,
commercial paper and inter-bank call money.

• Load Funds:
A Load Fund is one that charges a commission for entry or exit. That is,
each time you buy or sell units in the fund, a commission will be payable.
Typically, entry and exit loads range from 1% to 2%. It could be worth paying
the load, if the fund has a good performance history.

• No-Load Funds:
A No-Load Fund is one that does not charge a commission for entry or exit.
That is, no commission is payable on purchase or sale of units in the fund.
The advantage of a no-load fund is that the entire corpus is put to work.

OTHER SCHEMES
• Tax Saving Schemes:
Tax-saving schemes offer tax rebates to the investors under tax laws
prescribed from time to time. Under Sec.88 of the Income Tax Act,
contributions made to any Equity Linked Savings Scheme (ELSS) are
eligible for rebate.
• Index Schemes:
Index schemes attempt to replicate the performance of a particular index
such as the BSE Sensex or the NSE 50. The portfolio of these schemes will

8
 consist of only those stocks that constitute the index. The percentage of
each stock to the total holding will be identical to the stocks index
weightage. And hence, the returns from such schemes would be more
or less equivalent to those of the Index.

• Sector Specific Schemes:

These are the funds/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.

RISK RETURN MATRIX

HIGHIER RISK HIGHER RISK
MODERATE HIGHIER
RETURNS RETURNS

Venture
Equity
Capital

Postal Savings
Bank
FD
Mutual
Funds

LOWER LOWER
RISK RISK
LOWER HIGIER
RETURNS RETURNS

9
STRUCTURE OF A MUTUAL FUND:

India has a legal framework within which Mutual Fund have to be constituted. In India
open and close-end funds operate under the same regulatory structure i.e. as unit Trusts.
A Mutual Fund in India is allowed to issue open-end and close-end schemes under a
common legal structure. The structure that is required to be followed by any Mutual
Fund in India is laid down under SEBI (Mutual Fund) Regulations, 1996.

The Asset Management Companies:

The role of an Asset Management Company (AMC) is to act as the investment

manager of the Trust under the board supervision and the guidance of the Trustees. The
AMC is required to be approved and registered with SEBI as an AMC.
Custodian and Depositories:
Mutual Fund is in the business of buying and selling of securities in large
volumes. Handling these securities in terms of physical delivery and eventual
safekeeping is a specialized activity. The custodian is appointed by the Board of Trustees
for safekeeping of securities or participating in any clearance system through approved
depository companies on behalf of the Mutual Fund and it must fulfil its responsibilities
in accordance with its agreement with the Mutual Fund. The custodian should be an
entity independent of the sponsors and is required to be registered with SEBI.

Banker: A Fund’s activities involve dealing in money on a continuous basis primarily with

10
 respect to buying and selling units, paying for investment made, receiving the proceeds from
sale of the investments and discharging its obligations towards operating expenses.

Transfer Agents:
Transfer agents are responsible for issuing and redeeming units of the Mutual
Fund and provide other related services such as preparation of transfer documents and
updating investor records. A fund may choose to carry out its activity in-house and
charge the scheme for the service at a competitive market rate. Where an outside Transfer
agent is used, the fund investor will find the agent to be an important interface to deal
with, since all of the investor services that a fund provides are going to be dependent on
the transfer agent.

REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA :

The structure of mutual funds in India is guided by the SEBI. Regulations,

1996.These regulations make it mandatory for mutual fund to have three
structures of sponsor trustee and asset Management Company. The sponsor of the
mutual fund and appoints the trustees. The trustees are responsible to the
investors in mutual fund and appoint the AMC for managing the investment
portfolio. The AMC is the business face of the mutual fund, as it manages all the
affairs of the mutual fund. The AMC and the mutual fund have to be registered with
SEBI.

SEBI REGULATION

• As far as mutual funds are concerned, SEBI formulates policies and regulates the
mutual funds to protect the interest of the investors.

• SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds
sponsored by private sector entities were allowed to enter the capital market.

• The regulations were fully revised in 1996 and have been amended thereafter from
time to time.

The purpose of this study is to explore and understand investor Several perceptions which are below:

• Understanding Investor Perceptions: To gain insights into how investors view mutual funds,
including their beliefs, attitudes, and knowledge about these investment vehicles.
11
 • Identifying Common Attitudes and Misconceptions: To uncover prevalent attitudes towards
mutual funds, such as perceived benefits, risks, and misconceptions. This includes
understanding how well investors grasp the different types of mutual funds and their respec
advantages and drawbacks.

• Evaluating Influence on Investment Decisions: To assess how investor perceptions and attitud
influence their decision-making processes. This includes examining factors such as trust in fund
managers, understanding of fee structures, and expectations regarding returns and risks.

• Exploring the Impact of Information Sources: To analyze how various sources of information
(e.g., financial advisors, online platforms, media) shape investor perceptions and choices.

• By addressing these objectives, the study aims to provide valuable insights for mutual fund
providers, financial advisors, and policymakers, helping them better understand investor nee
and improve communication and education strategies.

Calculating the value of a mutual fund involves several key steps. Here’s how you typically do it:

1. Net Asset Value (NAV) Calculation

The NAV is the price at which mutual fund shares are bought or sold and is calculated at the end of eac
trading day. It’s computed using the following formula:
NAV = (Total Assets − Total Liabilities)/Number of Outstanding Shares

Steps to Calculate NAV:

Determine Total Assets: Add up the market value of all the securities in the mutual fund’s portfolio (sto
bonds, etc.), plus any cash or cash equivalents.
Subtract Total Liabilities: Deduct any liabilities the fund has, such as fees owed, loans, or other obligati

Divide by Number of Outstanding Shares: The result is divided by the number of shares that are curren
outstanding in the mutual fund.
Example Calculation: Suppose a mutual fund has:

Total Assets: $100 million , Total Liabilities: $5 million , Number of Outstanding Shares: 10 million

NAV = 100,000,000-5,000,000/10,000,000

So, the NAV per share is $9.50.

2. Calculating Returns

Mutual fund returns can be calculated in various ways, but here are the two common methods:

12
**a. Total Return: Measures the percentage change in NAV over a period, including any income
distributions.
Total Return=[(Ending NAV−Beginning NAV+Distributions)/Beginning NAV]×100%
Example Calculation:
If the beginning NAV was $9.00, the ending NAV is $9.50, and the fund distributed $0.50 per share dur
the period:
Total Return=9.50−9.00+0.50/9.00×100% =11.11%(approx.)

**b. Annualized Return: This adjusts the return to reflect the compounded annual growth rate (CAGR)
over multiple years.
Annualized Return=(Ending NAV/Beginning NAV)^1Number of Years−1
Example Calculation:

If the beginning NAV was $8.00, the ending NAV is $9.50, and the investment period was 3 years:

Annualized Return=(9.50/8.00)^1/3−1=0.0613 or 6.13%

3.Expense Ratio

The expense ratio is a measure of the cost of managing the fund, expressed as a percentage of the fund
average net assets. It includes management fees, administrative fees, and other costs.
Expense Ratio=Total Fund CostsAverage/Net Assets×100%
Example Calculation:
If a mutual fund has $100 million in average net assets and $1.5 million in total fund costs:

Expense Ratio=1,500,000/100,000,000×100%=1.50%

The expense ratio tells you what percentage of your investment goes toward the fund’s expenses each
4.Dividends and Distributions

Mutual funds often pay dividends or distributions based on the income generated by the securities in th
fund. These are typically reinvested or paid out to investors and should be considered in total return
calculations.

13
 CHAPTER-2
CONCEPTUAL FRAMEWORK/REVIEW OF LITERATURE

Historical Perspectives

The concept of mutual funds dates back to the early 18th century, but they became more structured an
accessible in the 20th century. Key milestones in the evolution of mutual funds include:

• Early Beginnings (18th Century): The first mutual fund, known as a “pooling” fund, was created in
the Netherlands in 1774. This fund allowed investors to pool their resources to invest in a
diversified portfolio of securities.

• Growth in the U.S. (1920s-1940s): The modern mutual fund industry began to take shape in the
United States with the establishment of the Massachusetts Investors Trust in 1924, considered
the first mutual fund in the U.S. This period saw the growth of mutual funds as a popular
investment vehicle, particularly after the 1929 stock market crash and the subsequent regulato
reforms.

• Post-War Expansion (1950s-1980s): The mutual fund industry experienced significant

growth post-World War II. Innovations included the creation of money market funds in
the 1970s, offering higher liquidity and safety. The introduction of index funds in the 1970s
by John Bogle and the founding of Vanguard Group marked a significant shift towards passive
management.

• Modern Era (1990s-Present): The 1990s and 2000s saw the rise of specialized funds, including
sector funds and international funds. Advances in technology facilitated online trading
and access to mutual funds, increasing their popularity. Recent trends include the
growth of exchange-traded funds (ETFs) and robo-advisors, which offer alternative
investment solutions and have blurred the lines between traditional mutual funds and
other investment products.

Previous Studies

Several studies have investigated investor perceptions and behaviors related to mutual funds.

Key findings from previous research include:

14
 • Investor Knowledge and Misconceptions:

Research has shown that many investors have limited knowledge about mutual funds, particula
regarding fee structures and risk profiles. Studies such as those by Merton (1987) and
Kahneman & Tversky (1979) highlight common misconceptions and the impact of overconfiden
on investment decisions.
Risk Perception and Tolerance:
•

Studies by Grinblatt and Keloharju (2001) and Barberis and Thaler (2003) have examined how
investors perceive and respond to risk. Findings indicate that investor risk tolerance varies
widely and can be influenced by factors such as past investment experiences, market conditions, a
psychological biases.

• Influence of Financial Advisors:

Research by Li and Wang (2015) suggests that financial advisors play a significant
role in shaping investor perceptions and decisions. While advisors can provide valuable
guidance, there is concern about conflicts of interest and the quality of advice given.

• Impact of Marketing and Information Sources:

Studies by Nelson (1999) and Nofsinger (2011) explore how marketing strategies and informati
sources (e.g., advertisements, online reviews) affect investor perceptions and decision-making.
Findings indicate that marketing plays a crucial role in influencing investor
preferences and choices, sometimes leading to biases and suboptimal investment decisions.

Theoretical Framework

To understand investor behavior and perceptions of mutual funds, several theoretical frameworks can
applied:

• Behavioral Finance: This theory examines how psychological factors

influence financial decision-making. Key concepts include heuristics (mental shortcuts), biases
(e.g., overconfidence, loss aversion), and market anomalies. Behavioral finance helps
explain why investors might make irrational decisions despite having access to all relevant
information.

• Risk Tolerance: This concept involves an investor’s willingness and ability to withstand
market fluctuations and potential losses. Theories of risk tolerance, such as those
proposed by Markowitz (1952) and Sharpe (1964), help explain how individual risk
preferences affect investment choices and portfolio allocation.

15
 • Decision-Making Models: Models such as the Expected Utility Theory (von Neumann &
Morgenstern, 1944) and Prospect Theory (Kahneman & Tversky, 1979) provide frameworks
for understanding how investors make decisions under uncertainty. These models consider
factors such as potential outcomes, probabilities, and psychological impacts.

• Information Asymmetry: The theory of information asymmetry, as described by

Akerlof (1970) and Spence (1973), explores how differences in information between
investors and fund managers can affect decision-making and market efficiency. This theory
highlights the importance of transparency and disclosure in mutual fund investing.

By integrating these theoretical perspectives with empirical findings, the literature review provides a
comprehensive understanding of investor perceptions and behaviors related to mutual funds. This
foundation will help guide the study in exploring how these perceptions impact investment decisions
and identifying areas for improvement in investor education and communication.

1)Name of the Book: -Mutual Funds in India

Author: -D. V. Ingle

ISBN no – 9788177083323

Publishing year: -2013

Abstract - This book provides an in-depth account of the functioning of mutual

fund industry in India. The Author D.V. Ingle has described everything about
Mutual Funds in India and why it is useful for small investors who cannot
directly invest in stock market. And also when the Mutual funds were created.
This Book describes the journey of Mutual Funds in India.

2)Name of the Research PaperComparative

:- study of mutual funds of
select
Indian companies

Author: -Mr. Sunil M. Adhav / Dr Pratap M Chauhan

16
ISSN NO: - 2394-1537

Publishing year: -2015

Abstract: - India’s mutual fund market has witnessed phenomenal

growth over the last decade. The consistency in the performance of
mutual funds has been a major factor that has attracted many investors.
The present research is an attempt to study comparative performance
of mutual funds of selected Indian companies. The study focus on
mutual fund schemes of selected Indian companies comprising Equity,
Debt and Hybrid Schemes. The total of 390

17
schemes comprising of 178 equity mutual funds, 138 debt schemes and 74
hybrid schemes are selected for the study. The performance of selected Indian
companies’ mutual fund is analysed with the help of Return, risk. Selected
Mutual Fund are compared with their respective bench mark.
3) Name of the Research Paper: -A Study of Mutual Funds in India

Author: -MS Shalini Goyal / MS Dauli Bansal

ISSN NO: - 2229 – 5518

Publishing year: -2013

Abstract: - This paper helps us to understand the study of the mutual funds in
India. This paper also says where and how we should invest mutual fund 7
why it dangerous to directly invest in stock market as you might have to face
loss. Investing in mutual funds helps you to diversify your risk.This study was
conducted to analyse and compare different types of mutual funds in India.

18
 CHAPTER-3

COMPANY PROFILE

ADTYA BIRLA SUNLIFE MUTUAL FUND

Aditya Birla Sun Life Mutual Fund

• AUM₹2,97,663 Crs

• No. of schemes76

• AMC Age28 yrs

Aditya Birla Sun Life AMC was founded in 1994. The company was established after
Aditya Birla Capital Limited and Sun Life AMC Investments (a Canada-based financial
services company) entered into a joint venture. Apart from mutual funds, it also
operates in multiple segments such as portfolio management services, alternative
investments, and real estate investments.
As of Feb 28th, 2023, the company's AUM stood at Rs 271,747 crore, which
constitutes 6.6% of the industry AUM.

• Aditya Birla Sun Life AMC allows you to choose from 206 Mutual Fund
schemes.

•
This includes 142 debt schemes, 39 equity schemes, 6 hybrid schemes, and 19

19
 others (including commodity schemes). The top schemes from Aditya Birla

• Sun Life Mutual Fund by AUM are Aditya

Birla Sun Life Liquid fund, Aditya Birla Sun Life Frontline Equity, and Aditya
Birla Sun Life Corporate Bond Fund.

20
 • Aditya Birla Sun Life AMC has a pan-India presence in over 280 locations
across the country.

• The Aditya Birla Group, which is a Fortune 500 company, has a strength of
over 140,000 employees from 100 countries.

KEY INFORMATION

Mutual Fund Name Aditya Birla Sun Life Mutual Fund

Founded Dec 23, 1994

Trustee Organization Aditya Birla Capital International Trustee Company Ltd

MD and CEO A Balasubramanian

Compliance Officer Rajiv Joshi

Documents required to invest in Aditya Birla Sun Life Mutual Fund

The documents for KYC (Know Your Client) include proof of address and proof of
identity. Here is a list of officially valid documents (OVD) admissible.

PROOF OF IDENTITY

1. PAN Card (Mandatory)

2. Voter ID Card

3. Driving License

4. Passport

5. Aadhaar Card

6. Any other valid identity card issued by Central or State Government

21
 PROOF OF ADDRESS

1. Voter ID Card

2. Driving License

3. Passport

4. Ration Card

5. Aadhaar Card

6. Bank account statement or bank passbook

7. Utility bills like electricity or gas bills

While these are some of the standard document list, submitting all of these documents
is a tedious process and can procrastinate your plan of investing. This is where ET
Money offers you a paperless and fast solution.

You can submit your KYC in under two minutes by uploading the photos of your
identity and address proofs. This includes PAN and any one of Aadhaar, Voter ID,
Driving License & Passport along with your signature, a selfie and a live video,
authenticating your identity. ET Money's quick KYC application makes investing easy
and hassle-free.

It takes about 3-5 working days to get your KYC verified as the verification is done by
government certified agencies.

How to Invest in Aditya Birla Sun Life Mutual Fund Schemes?

If you want to invest in ABSL Mutual Funds schemes, you can do so in any one of the
ways listed below:

1. Through the official website

2.Through a distributor

3.Through the ET Money platform

22
Aditya Birla Sun Life AMC allows you to invest with them in both offline and online
ways. If you are a first-time investor, you can download the application from the
company's website and submit it to the company's branch office. If your KYC is in
place, you can buy it from the fund house's website. Now, if you want to invest in
different mutual fund schemes, you may have to go through this process for each AMC,
which can be tedious. Moreover, you won't find all your investment details on one
platform.

The other way to invest is through a distributor. But because of the commission, your
returns will be compromised if you invest through a distributor.

A much simpler, efficient and effective way of investing in schemes from Aditya Birla
Mutual Fund or any other fund house is through the ET Money platform.

All you need to do is sign up once and start investing in schemes from different
AMCs. You can choose from various schemes of Aditya Birla Sun Life Mutual
Fund, and that too, at the lowest expense ratio.

Customer Care Details

For any query regarding any schemes offered by Aditya Birla Sun Life Mutual Fund,
please contact at the following One address:

Registered Address World Centre, Tower 1, 17th Floor, Jupiter Mill Compound,
Senapati Bapat Marg, Elphinstone Road, Mumbai

400013. Branch Timing (9 am - 6 pm)

Email N.A.

23
 Aditya Birla Sun Life Mutual Funds Returns Calculator
See what your investment would have yielded in

Monthly SIP
of
₹10,000
for
5 Years

Fig.1

Total investment₹ 6 Lacs

Profit₹ 5.65 Lacs

Current value₹ 11.65 Lacs

Top Aditya Birla Sun Life Fund Managers

Mahesh Patil: Co-Chief Investment Officer

Mr. Mahesh Patil is the Co-Chief Investment Officer (Equity). He has an overall
experience of 27 years and had joined Aditya Birla Sun Life Mutual Fund in 2005.
Then in 2008, he was promoted as the Co-Chief Investment Officer (Equity). He now
heads a team of 20 expert analysts and fund managers, and they together manage funds
as huge as 92,000 Crores in the equity market both in the form of Birla Sun Life SIP,

24
and Birla Sun Life One Time Investment.
Mr. Patil holds the degree of Engineering from VJTI in Mumbai and is an MBA in
Finance from Jamnalal Bajaj Institute in Mumbai. He too is a charter holder from
ICFAI in Hyderabad. He thus being an Equity expert has Funds like Aditya Birla Sun
Life Frontline Equity Fund, Aditya Birla Sun Life Equity Hybrid '95, Aditya Birla Sun
Life Focused Equity Fund, Pure Value Fund.

25
 HDFC MUTUAL FUND

HDFC Mutual Fund

• AUM ₹4,89,894 Crs

• No. of schemes 65

• AMC Age 23 yrs

HDFC Mutual Fund (formally known as HDFC Asset Management Company Limited)
was established in the year 1999 as a joint venture between HDFC Limited and abrdn
Investment Management Limited. It is one of India's largest mutual fund houses and it
has Rs 4,49,169 crore as assets under management as of Feb 2023 which is 10.91% of
the industry's AUM. The fund house became a publicly listed entity in August 2018.
The fund house has a strong position in equity investments and holds an institutional
customer base of 9.9 million live accounts as of 31st March 2022.
.....

• HDFC AMC offers approximately 108 primary schemes.

• Of the 108 schemes, 58 are debt funds, 33 are equity-oriented, 6 are hybrid
schemes, and 11 others (ETFs, Gold, FoFs, etc.).

• The company's vision: To be the most respected Asset Manager in the world
and the mission is to be the wealth creator for every Indian.
They have an investment team of 29 highly competent members with a
•
consistent track record of performance, stability, and business understanding.
The company has a network of customers and investment partners across 200
•
cities.

26
 Key Information

Mutual Fund Name HDFC Mutual Fund

Founded Dec 10, 1999

Trustee Organisation HDFC Trustee Company Ltd

MD and CEO Navneet Munot

Compliance Officer Yezdi Khariwala

Documents required to invest in HDFC Mutual Fund

The documents for KYC (Know Your Client) include proof of address and proof of
identity. Here is a list of officially valid documents (OVD) admissible.

PROOF OF IDENTITY

1. PAN Card (Mandatory)

2. Voter ID Card

3. Driving License

4. Passport

5. Aadhaar Card

6. Any other valid identity card issued by Central or State Government

PROOF OF ADDRESS
1 Voter ID Card

. Adhaar Card

2
3.Bank account statement or bank passbook
.
27
4. Utility bills like electricity or gas bills

While these are some of the standard document list, submitting all of these documents
is a tedious process and can procrastinate your plan of investing. This is where ET
Money offers you a paperless and fast solution.

You can submit your KYC in under two minutes by uploading the photos of your
identity and address proofs. This includes PAN and any one of Aadhaar, Voter ID,
Driving License & Passport along with your signature, a selfie and a live video,
authenticating your identity. ET Money's quick KYC application makes investing easy
and hassle-free.

It takes about 3-5 working days to get your KYC verified as the verification is done by
government certified agencies.

How To Invest In HDFC MF schemes?

You can invest in schemes of HDFC Mutual Fund in the following three ways.

1.Through the HDFC Mutual Fund's website

2.Through a distributor

3.Through the ET Money platform

If you want to invest through the HDFC Mutual Fund website, you will need to sign up
and create an account. Then follow the ensuing steps.

But when you invest in multiple mutual funds from different AMCs, signing up with
each fund house could be a hassle. It would also be challenging to track your
investments and analyze them.

On the other hand, if you do the same through a distributor, you will pay a higher
expense ratio, and, as a result, your returns will be lower.

28
 How to invest in mutual funds

1. Sign up using email and OTP.

2. Select fund. Enter the investment amount. Choose the investment type: one-time
(Lumpsum) or SIP.

3. Enter PAN, full name, and verify mobile number.

4. Enter bank account details and select payment mode. In the case of SIP, set up a
mandate.

5. Follow the KYC process, which includes a selfie and a live video. Provide essential
details and eSign.

6. The transaction is processed on verification of KYC documents.

Customer Care Details

For any query regarding any schemes offered by HDFC Mutual Fund, please contact at
the following address:

Registered Address "HDFC House", 2nd Floor, H. T. Parekh Marg,

165-166, Backbay, Reclamation, Churchgate,

Mumbai - 400020. Branch Timing (9 am - 6 pm)

Email N.A.

HDFC Mutual Funds Returns Calculator

See what your investment would have yielded in
HDFC small cap fund

29
 Fig.2
Total investment₹ 6 Lacs
Profit₹6.88 Lacs
Current value₹ 12.88 Lacs

Top HDFC Fund Managers

Mr. Anil Bamboli

Mr. Anil Bambolia is not only one of the veterans of HDFC Asset Management
Company but also of the Finance Industry. He is a stalwart of the investment
market with unmatchable expertise and experience in the income fund and debt
fund segment. He heads a total of 24 schemes of HDFC Bank Mutual Fund and
all of these are either income fund of debt funds. He also takes care of other
funds like those categorized under the Hybrid category where he works with
some other fund manager mainly expert in equity to optimize the returns. His
expertise has helped HDFC Bank Mutual Fund to provide more than average
returns to their customers as far as the short term funds are concerned. He can
manage to procure returns that are more than the benchmark of the industry
and thus any investor turns to HDFC Bank Mutual Fund when thinking of short
term funds, liquid funds are any fund related to the debt market.

30
Mr.Bamboli had joined HDFC Bank Mutual Fund in 2003 and had been the key
person behind these investment funds. He has an overall experience of more than
25 years and is a B.Com, CWA, MMB (Finance), and CFA and had been the
Asst.Vice President of SBI Asset Management Company before joining HDFC.

Mr. Chirag Setalvad

Mr. Vinay R Kulkarni

31
COMPARATIVE ANALYSIS OF HDFC & ADITYA BIRLA MUTUAL FUND

BETA
• A Beta is a measure of risk. It compares a Mutual Fund’s Volatility with that
of a benchmark. If the beta of stock is 1, It means that the returns in the
stock are highly correlated to the benchmark index. If Beta is more than 1 ,
• It means stock is more volatile If Beta is less than 1, than the stock is less
• volatile

LARGE CAP FUND

Comparative Analysis (BETA)

1.04
1.02
1
0.98
0.96
0.94
0.92
0.9
Aditya Birla HDFC

Fig.3

MID CAP FUND

Chart Title
0.912
0.91
0.908
0.906
0.904
0.902
0.9
0.898
0.896
0.894
Aditya Birla HDFC

Fig.4

32
 ALPHA
• Alpha is a financial term describing that part of an investor’s return that is
due to skills of the investment manager, as distinct from the return of the
market as a whole ai<rf: the manager or firm has destroyed value ai=rf:
• the manager or firm has neither created nor destroyed value ai>rf: the
• manager or firm has destroyed value
•

LARGE CAP FUND

Chart Title
3.5
3
2.5
2
1.5
1
0.5
0
Aditya Birla HDFC

Fig.5
MID CAP FUND

Chart Title
3.5
3
2.5
2
1.5
1
0.5
0
Aditya Birla HDFC
Fig.6

33
 STANDARD DEVIATION

• The total risk of a given fund is measured in term of standard deviation.

• It tells us how much the values have deviated from the mean of the values.

LARGE CAP FUND

Chart Title
15.6
15.4
15.2
15
14.8
14.6
14.4
14.2
14
Aditya Birla HDFC

Fig.7

MID CAP FUND

Chart Title
16

15.5

15

14.5

14
Aditya Birla HDFC

Fig.8

34
 CHAPTER 4
RESEARCH METHODOLOGY

Research Methodology: -
Research methodology is a systematic and scientific approach used to conduct research,
investigate problems, and gather data and information for a specific purpose . It
involves the techniques and procedures used to identify, collect, analyze, and interpret
data to answer research questions or solve research problems . The methodology
chapter of a thesis, dissertation, or research paper explains what was done and how it
was done, allowing readers to evaluate the reliability and validity of the research . It
should include the type of research conducted, data collection and analysis methods
used, tools or materials used in the research, how research biases were mitigated or
avoided, and why these methods were chosen .

Research Design

This study will employ a mixed-methods approach, combining both quantitative and qualitative resear
techniques. This approach is chosen to provide a comprehensive understanding of investor
perceptions of mutual funds by leveraging the strengths of both methods:

• Quantitative Methods: To quantify investor perceptions, behaviors, and demographic characteristics.

This will allow for the identification of patterns and correlations.
• Qualitative Methods: To explore deeper insights into investor experiences, attitudes, and decision
making processes. This will provide context and depth to the quantitative findings.
• Problem Defining: - In a competitive market there are multiple mutual funds
working in the Indian market. It is necessary to know mutual fund as
the performance of the mutual fund decides the future of Mutual
Fund Company. In my study I have compared return, Beta and
Standard deviation of large and mid-cap fund of mutual funds that is
HDFC Mutual funds & Aditya Birla Mutual funds.
4.1. Data Collection - the data has been collected from secondary source fact sheet
,annual report, offer document

35
4.2. Primary Data- Primary data is a type of data that is collected by researchers
directly from main sources through interviews, surveys, experiments, etc

I have used questionnaire as primary source for collecting data for my study.

4.3. Secondary Data- Secondary data can be obtained from various sources, such as
books, journals, government reports, market research, online data, and historical
data. Secondary data can be useful for researchers who want to save time and money,
access large and diverse datasets, and compare different perspectives and trends

collected secondary data from the following:-

• Published data
• Government data
• Online data
• Organizational data
• Historical data

4.4. Tools for Data Collection

• Observation
• Surveys
• Document and Records
• Focus group

I have used surveys ,document and records in this study.

4.5. The method used for collecting the data - There are many methods that can be
used to collect data, depending on the type, purpose, and source of the data.

1. Observation
2. Survey
3. Documents and records
I have used this method in combinations.

36
4.6. Sampling Techniques

• Deliberate - As a verb, deliberate means to think about or discuss

something carefully before making a decision.

• Convenience Sampling - Convenience sampling is a type of non-

probability sampling method where data is collected from an easily
accessible and available group of people.

4.7. Sample Size:

Sampling s defined as a selection of some part of an aggregate based on w h ich a

judgement or interface about the aggregate or totality is made. It represents how many
candidates you have chosen to fill your questionnaire or candidates upon whom you
have studied. I have a chosen a sample size of 30 candidates.

• Sample : 2 mutual fund companies namely Aditya Birla & HDFC has been
selected

• Sampling technique:In the present study convenience sample technique has

been used

4.8. Method of reporting/presenting data

• Graphics Reporting - Graphics reporting is a term that refers to the

practice of creating visual summaries of information, events, or
processes using graphics, text, and symbols. Written Reporting - Written
• reporting is a term that refers to the practice of creating written
summaries of information, events, or processes using words, sentences,
and paragrap

37
4.9. Statistical Analysis of Data
• Descriptive statistics: Descriptive statistics are a way of summarizing
and displaying data using numerical measures and graphs. Descriptive
statisticscan help you understand the characteristics, distribution, and
patterns of your data

4.10. Limitations of Data

1. It is difficult to cover all the functions of the company.

2. The analysis and conclusion made by me as per my limited understanding and

there may be some variation in actual situation.
3. The information about the company is mostly based on secondary data from the
company websites, other books as primary data was not accessible.

38
 CHAPTER- 5
DATA ANALYSIS AND INTERPRETATION

1) Age Group

Table.1.1
Total Below 30years 31-40Years 41-50 years 51-60years Above 60 years
200 100 64 32 4 0
% 50 32 16 2 0

Figure1.1

Figure1.2

39
Interpretation
According to the graph given above out of 200 respondents 50 % are below 30 years of age, 32%are
between age group of 31-40 years, 16% are between the age group of 41-50 years, 2 % are between
the age group of 51-60 years and none above 60 years, which describes that LIC policieshave got
maximum faith among the youths.

2) Gender

Table1.3
Total Male Female
200 136 64
Percentage 68 32

40
 Figure 1.4

Interpretation
According to the graphs given above out of the total 200 respondents included in the study 68 %
were males and 32 % were females, which clearly defines the gender biasness, that the males
havemore liking towards the LIC policies.

3) Marital Status

Table.1.4
Total Married Unmarried
200 154 46
Percentage 77 23

41
 Figure.1.5

Figure.1.

Interpretation
According to the graphs given above out of the total 200 respondents included in the study 77% were married and
23 % were unmarried, hence we can say married persons are more interested inthe investment criteria’s offered by
LIC.

4) Total Number of Policies Bought

Table.1.5
Total One Two More Than Two
200 74 102 24
Percentage 37 51 12

42
 Figure.1.7

Figure.1.8

Interpretation
According to the graphs given above out of the total 200 respondents included in the study, 37%
were having one policy of MF, 51% had two MF and 12 % more than two, which clearly defines the
faith of the people towards MF policies.

5) Mode of Payment

Table.1.6
Total Monthly Quarterly Half-Yearly Yearly
200 22 22 54 102
Percentage 11 11 27 51

43
 Figure.1.9

Figure.1.10

Interpretation
According to the graphs given above out of the total 200 respondents included in the study, 11%
have opted for monthly payments, 11% opted for quarterly payment, 27% opted for half-yearly
payment and 51% opted for yearly payments of the premium.

6) Educational Qualification

Total Undergradua Graduate Post- Doctorate

te Graduate
200 32 46 94 28
Percentage 16 23 47 14
Table.1.7

44
What Kind of Investment do you prefer?
Table.1.9
Short Term Total Long Term Both
68 200 102 30
34 Percentage 51 15

45
 CHAPTER-6
CONCLUSION

Mutual Fund Industry now represents perhaps most appropriate opportunity

for most Investors. The financial market is most sophisticated and complex.
Investors need required knowledge to invest in the mutual fund industry.
Mutual fund industry also gives good returns if the markets are high and you
can also suffer losses if the market does not do well or while investing fund
manager makes some mistakes during investment of Mutual Funds.
Mutual Fund Returns are compared on the basis of performance of the stock
market.
If the stock market do well than the fund in which you have invested will also
do well.
As the markets are diversified the loss is minimal.
In my above research I had compared Aditya Birla mutual fund & HDFC
Mutual fund. I had compared Alpha Beta and Standard Deviation
Since Inception HDFC mutual fund has given good returns for large and
midcap 23.5 % where as Aditya Birla Mutual fund has given a return of only
11.4 %.
But looking at both the Mutual Funds three year ratio HDFC Mutual Fund has
given a good return of 35.56%. & 16.46% whereas Aditya Birla Mutual Fund
has given a return of 25.11 & 16.92 %

So investment in any mutual fund depends on the current market scenario as they say
mutual funds are subjected to market risk please read documents before investing

46
 CHAPTER-7
BIBLOGRAPHY

1) Conwill, F. Allan. (1962). Blight or Blessings?. The Wharton School Study of Mutual
Funds. United States: Security and Exchange Commission, 1-15.

2) Brown, F. E., & Vickers, Douglas. (1963). Mutual Fund Portfolio Activity,
Performance and Market Impact. Journal of Finance. 18(2), 377-391.
3) Treynor, Jack L. (1965). How to Rate the Management of Investment Funds.
Harvard Business Review. XLIII, 63-75
4) Sharpe, William F. (1966). Mutual Fund Performance. The Journal of Business. 39(1)
Part 2: Supplement on Security Prices, 119-138.

5) Treynor, Jack L., & Mazuy, Kay K. (1966). Can Mutual Funds Outguess the Markets.
Harvard Business Review, 44(4), 131-136.

6) Jensen, Michael C. (1968). Performance of Mutual Funds: In the Period 1945-1964.

The Journal of Finance. 23(2), 389-462.

7) Carlson, Robert S. (1970). Aggregate Performance of Mutual Funds, 1948-1967. The

Journal of Financial and Quantitative Analysis. 5(1), 1-32.

https://www.hdfcfund.com

https://www.etmoney.com

https://mutualfund.adityabiílacapital.com

47