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RESEARCH METHODOLOGY
Meaning of Research
Research is "creative and systematic work undertaken to increase the stock of knowledge".[1]
It involves the
collection, organization, and analysis of information to increase understanding of a topic or issue. A research
project may be an expansion on past work in the field. To test the validity of instruments, procedures, or
experiments, research may replicate elements of prior projects or the project as a whole.
The primary purposes of basic research (as opposed to applied research) are documentation, discovery, interpretation, and
the research and development (R&D) of methods and systems for the advancement of human knowledge. Approaches to
research depend on epistemologies, which vary considerably both within and between humanities and sciences. There are
several forms of research: scientific, humanities, artistic, economic, social, business, marketing, practitioner research,
life, technological, etc. The scientific study of research practices is known as meta-research.
DEFINATION OF RESEARCH
According to Redam and Morry "research is a process of steps used to collect and analyze information to
increase our understanding of a topic or issue". It consists of three steps: pose a question, collect data to answer
the question, and present an answer to the question.
RESEARCH DESIGN
Research Design is nothing but it is the blue print of what actual research as to be made so that different kind
of project or different kinds if work can be properly taken place. Research design has greater impact in
collection and evaluation of data as it tells as weather the information is collected as per requirement or not.](https://image.slidesharecdn.com/01astudyoninvestorsperceptionaboutinvestinginmutualfunds-221031141218-8a3da1f9/75/01-A-study-on-investors-perception-about-investing-in-mutual-funds-doc-19-2048.jpg)
01 A study on investors perception about investing in mutual funds.doc
- 1. Page | 1 Astudy on investors perception about investing in mutual funds. St. Vincent Pallotti College Affiliated to Pt. Ravishankar Shukla University Raipur (CG). In partial fulfillment of award of degree of bachelor of business administration session 2020-21. Mentored by Guided by Dr. Prachi Singh Mr. Dhaneshwar yadav Submitted by Kamya Wadhwani BBA 6th semester
- 2. Page | 2 DECLARATION I,Kamya Wadhwani, of BBA 6th Semester of St. Vincent Pallotti College hereby declare that the project report entitled “Investors perception about investment in mutual funds” is record of original work done by me and the matter enclosed has not been submitted for the award of any other degree or diploma in the university or elsewhere. Date: Place: Kamya Wadhwani BBA 6th semester
- 3. Page | 3 Acknowledgement Iwould like to express appreciation and gratitude to various people who shared their valuable time and experience to make this project a success. Its my profound privilege and pleasure to express overwhelming sense of gratitude and regards to our principal Dr. Kuldeep Dubey, for their support throughout the course. I am sincerely thankful to our mentor Dr. Prachi Singh, HOD of management department, for her valuable time and guidance throughout the project. I express my thank to my guide Mr. Dhaneshwar Yadav for his able guidance and cooperation during the completion of this project. I would also like to thank other faculty members, all the respondent, my family and friends, for their support and help. Kamya Wadhwani.
- 4. Page | 4 INDEX CHAPTERPARTICULARS PAGE NO. 1 INTRODUCTION 5-14 2 OBJECTIVES 15-16 3 RESEARCH METHODOLOGY 17-21 4 DATA ANALYSIS & INTERPRETATION 22-32 5 FINDINGS, SUGGESTIONS, LIMITATIONS 33-36 6 CONCLUSION 37-38 7 APPENDICES I. BIBLIOGRAPHY II. QUESTIONNAIRE 39-43
- 5. Page | 5 CHAPTER- 1 “INTRODUCTION”
- 6. Page | 6 “Introductionof Mutual Fund” 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 that 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 securities and 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. Mutual funds provide the investor with professional management of funds and diversification of investment among the securities offered by leading corporations, federal and state governments, and other entities. What Is Mutual Fund? In a mutual fund, many investors contribute to form a common pool of money. This pool of money is invested in accordance with a stated invested objective. The ownership of the fund is thus joint or mutual i.e: the fund belongs to all investors. A single investor‘s ownership of the fund is in the same proportion as the amount of the contribution made by him bears to the total amount of the fund. When a person buys shares of a joint stock company, the purchase makes the investors a part owner of the company and its assets. In the same way, when an investor subscribes to a mutual fund, he becomes part owner of fund assets. In fact, in U.S.A., a mutual is constituted as an investment company and an investor ―buy into the fund, meaning he buys the share of the fund. In India, a mutual a mutual fund is constituted as a Trust and the investor subscribes to the units of a scheme launched by the fund, which is where the term Unit Trust comes from. However, whether the investor gets fund shares or units is only a matter of legal distinction. In any case, a mutual fund shareholder or units-holder is
- 7. Page | 7 apart owner of the fund‘s assets. The term unit-holder includes investors in both the open- end and the closed end schemes. THE HISTORY OF MUTUAL FUNDS IN INDIA The mutual fund industry in India began with the setting up of the Unit Trust in India (UTI) in 1964 by the government of India. During the last 36 years, UTI has grown to be a dominant player in industry with asset of over Rs. 45,899 crores as of December 31, 2002. The UTI is governed by a special legislation, the Unit Trust of India Act, 1963. In 1987 public sector banks and insurance companies were permitted to set up mutual funds and accordingly since 1987, 6 public sector banks have set up mutual funds. Also the two insurance companies LIC and GIC established mutual funds. Securities exchange board of India (SEBI) formulated the mutual fund (regulation) 1993, which for the first time established a comprehensive regulatory framework for mutual fund industry. Since then several mutual funds have been set up by the private and joint sectors. 1987 marked the entry of other public sector mutual funds. With the opening up of the Economy, many public sector banks and financial institutions were allowed to establish mutual funds. SBI established the first non-UTI mutual fund-SBI Mutual fund-in November 1987. This was followed by Can bank Mutual fund, LIC Mutual fund, Indian Bank mutual Fund, and PNB Mutual Fund. These funds helped in enlarging the investor community and the investable funds. Organization of mutual fund industry: The organization of mutual fund operation in India envisages a six tier establishment namely: 1. A sponsor institution to promote the fund. 2. A term of trusties to oversee the operations and to proved checks for efficient, 3. 3. Profitable. and transparent 4. An Asset Management company (AMC) to actually deal with the fund. 5. A custodian (care taker). 6. A transfer agent. 7. A trusty company
- 8. Page | 8 “SBIFunds Management Private Limited” Key Information SBI Mutual Fund Mutual Fund Setup Date Jun-29-1987 Incorporation Date Feb-07-1992 Sponsor State Bank of India Trustee SBI Mutual Fund Trustee Company Private Limited Chairman Ms.Arundhati Bhattcharya CEO / MD Mr. Deepak Kumar Chatterjee CIO Mr. Navneet Munot Compliance Officer Ms. Vinaya Datar
- 9. Page | 9 InvestorService Mr. C A Santosh Officer
- 10. Page | 10 Rs. 47874.46crore (Jun-30-2012) Assets Managed Other Details Haribhakti & Co / M/S. Chandabhoy & Jassoobhoy Auditors Bank of Nova Scotia / City Bank / HDFC Bank / Stock Custodians Holding Corporation of India Registrars Computer Age Management Services Pvt. Ltd, Computronics Financial Services (I) Ltd, Datamatics Financial Software Services Ltd Address 191 Maker Tower E, Cuffe Parade, Mumbai - 400005. 022 Fax Nos. – 22189663 [email protected] E-mail “FACILITIES OF STATE BANK OF INDIA” Telephone Nos. 022 - 22180221-27
- 11. Page | 11 At-Home servicesUse our At-Home services to make your Utility Bill payments like electricity, telephone, mobile phone bills etc. You can also get your documents picked up from your business place. This facility is available at select cities absolutely free of cost! Free investment account Use the Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting your bank account. Further, you get a free investment account for tracking your investments with the Bank. This account provides you a consolidated view of all your mutual fund investments across schemes with updated returns status, latest NAV information and research reports. Transfer money to any VISA credit/debit card in India An experienced Free research team to analyze and research the Mutual Funds available in the market Portfolio assistance Efficient depository services that allow you to hold your shares in convenient "demat" formats. Leverage opportunities in the stock-market when you spot them. Carefully selected insurance policies to suit your needs. Experts to help you analyze your insurance needs and develop the solution that works best for you. 24 carat pure gold coins and bars carrying a 99.99% Assay Certification Unique number on every credit card, with records maintained in Switzerland. “MAJOR COMPETITORS” HDFC MUTUAL FUND TATA MUTUAL FUND
- 12. Page | 12 REALIENCE MUTUALFUND DSP Blade Rock MUTUAL FUND KOTAK MUTUAL FUND PRINCIPAL MULUAL FUND Sundram BNP Paribus MUTUAL FUND Franklin Templeton MUTUAL FUND Birla Sun Life MUTUAL FUND I like to introduce my project as “Study of Mutual Fund Schemes” A Mutual Fund is a type of Professionally managed investment fund that pools money from many investors to purchase Securities. While there is no Legal definition of the term mutual Fund. It is most commonly applied only to those collective investment vehicles that are regulated and sold to the general Public They are sometimes referred to as ―Investment
- 13. Page | 13 Companies‖. In thisproject, first part is the study of Mutual Fund Investment products available for the customers of SBI in present context 2014-15 is based on secondary data; second part is the analysis of the behavior pattern of the customers towards the mutual Fund investment, which is fully based on primary data. Here I also tried to analyze the attitude of the investors towards SBI. I have also prepared one questionnaire for getting more result that is appropriate and tried to provide some solutions and suggestion. I have also mentioned limitations of my project work. I have also prepared a swot analysis chart to find out the position of State Bank of India. “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. “IMPORTANCE” If mutual fund is emerging as the favorite investment vehicle, it is because of many importance it has over the forms and avenues of investing, particularly for the investor who has limited resources available in terms of capital and ability to carry
- 14. Page | 14 out detailedresearch and market monitoring. The following are major importance offered by mutual funds to all investors. Portfolio Diversification: Mutual Funds normally invest in a well-diversified portfolio of securities. Each investor in a mutual fund is a part owner of all of the fund‘s assets. This enables him to hold a diversified investment portfolio even with a small amount of investment, which would otherwise require big capital. 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 investors portfolio. Reduction / Diversification of Risk: An investor in a mutual fund acquires. A diversified portfolio, no matter how small his investment. Diversification reduces the risk of loss as compared to investing directly in one or two shares or debentures or other instruments. Reduction of Transaction Costs: What is true of risk is also true of the transaction costs. A direct investor bears all the costs of investing such as brokerage or custody of securities.
- 15. Page | 15 Liquidity: Often,investors hold shares or bonds they cannot directly, easily and quickly sell. Investment in a mutual fund, on the other hand, is more liquid. Convenience and flexibility: Mutual fund management companies offer many investors cannot get.
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- 17. Page | 17 “OBJECTIVE OFTHE STUDY” To find out & analyze the need/requirement of investors/customers. To analyze whether customers are aware of & utilizing the product and services provided by SBI. To access whether the investment account of SBI is beneficial and helping the customers to increase their wealth. To properly track the wealth creation products & being advised to the correct target segment/audience. To find whether customers are satisfied with SBI as an investments. To know about the mutual fund. To Study the various schemes offered by SBI mutual fund. To study in which schemes the investor invests the most. To study what are the factors affecting Mutual fund choice of Investor.
- 18. Page | 18 CHAPTER- 3 “RESEARCHMETHODOLOGY”
- 19. Page | 19 RESEARCH METHODOLOGY Meaningof Research Research is "creative and systematic work undertaken to increase the stock of knowledge".[1] It involves the collection, organization, and analysis of information to increase understanding of a topic or issue. A research project may be an expansion on past work in the field. To test the validity of instruments, procedures, or experiments, research may replicate elements of prior projects or the project as a whole. The primary purposes of basic research (as opposed to applied research) are documentation, discovery, interpretation, and the research and development (R&D) of methods and systems for the advancement of human knowledge. Approaches to research depend on epistemologies, which vary considerably both within and between humanities and sciences. There are several forms of research: scientific, humanities, artistic, economic, social, business, marketing, practitioner research, life, technological, etc. The scientific study of research practices is known as meta-research. DEFINATION OF RESEARCH According to Redam and Morry "research is a process of steps used to collect and analyze information to increase our understanding of a topic or issue". It consists of three steps: pose a question, collect data to answer the question, and present an answer to the question. RESEARCH DESIGN Research Design is nothing but it is the blue print of what actual research as to be made so that different kind of project or different kinds if work can be properly taken place. Research design has greater impact in collection and evaluation of data as it tells as weather the information is collected as per requirement or not.
- 20. Page | 20 TYPES OFRESEARCH DESIGN Exploratory Research Design Exploratory Research studies are also called formative research studies. The main object of such studies is to formulate a problem for more precise investigation. Exploratory research is conducted for a problem that had not been clearly defined. It often occurs before we known enough to make conceptual distinction about and exploratory relationship. Exploratory research helps us to determine the best design, data collection methods and selection of subjects. Descriptive Research Design The Descriptive Research studies determine the frequency with which something occurs. The studies show certain variables are associated with diagnostic research studies. Most of the social research comes under this category. Experimental Research Design The Experimental Research is a blue print of the procedure that enables the researchers to test his hypothesis by reaching valid conclusions about relationship between independent and dependent variables. It refers to the conceptual framework within which the experiment is conducted. Again we consider that when researcher performs the research by using using experimental method, they only observe the past events on circumstances. Therefore, the experimental research makes the classification of the fact that if the change has been made in experimental variables having been controlled all types of related variables of circumstances carefully, what result can be taken from this process. For this project, I have used EXPLORATORY RESEARCH DESIGN.
- 21. Page | 21 SOURCES OFDATA COLLECTION. Primary Data The data which is collected by research himself directly from the original source is called primary data. Primary data is collected through the following methods ; 1. QUESTIONNAIRE 2. OBSERVATIONAL METHOD 3. PERSONAL METHOD Secondary Data The data which have been collected from some other purposes or by someone else for some specific purpose for the interest of his research study is called secondary source of data collection. Secondary data is collected through following methods ; 1. INTERNAL DATA 2. From BOOK 3. INTERNET Primary data: The primary data was collected using a Questionnaire Secondary data: The secondary data was collected from Subject Books, Research Papers, Internet etc.
- 22. Page | 22 SAMPLING ANDSAMPLING design When you collect any sort of data specially quantitative data, whether observational, through surveys or from secondary data you need to decide which data to collect and from whom. THIS IS CALLED SAMPLING. Sampling method. Sampling method refers to the rules and procedures by which some elements of the population are included in the sample. Some common sampling methods are simple random sampling, stratified sampling, and cluster sampling. Estimator. The estimation process for calculating sample statistics is called estimator. Different sampling methods can use different estimators. Sampling Types ; Random sample. Here every member of the population is equally likely to be a member of the sample. Members are chosen via random process. Simple random sample. In this type of sample individuals are randomly obtained and so every individual is equally likely to be chosen. Voluntary response sample. Here subjects from the population determine whether they will be member of the sample or not. This type of sample is not reliable to do meaningful statistical work. Convinence sample. This type of sample is characterized by the selection of easy to obtain members from the population. Systematic sample. A systematic sample is chosen on the basis of an ordered system. Cluster sample. A cluster sample involves using a simple random sample of evident groups that the population contains. Sample design: • Sample technique: Random sampling • Sampling unit: Individual • Sample size: 150 respondents • Sample area: Raipur city.
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- 24. Page | 24 Q1 whatis your monthly family income approximately ? Below 100000 48.5% 100000-500000 45.5% 500000-1000000 0% Above 1000000 6.1%
- 25. Page | 25 Q2 whatkind of investment you have made so far ? Fixed deposit 32.3% Insurance 22.6% Mutual funds 12.9% Silver/gold 16.1% State estate 6.8% Share/debenture 9.7%
- 26. Page | 26 Q3 whileinvesting your money , which factor will you prefer ? Liquidity 11.4% Low risk 31.4% High return 37.1% Trust 20%
- 27. Page | 27 Q4 Areyou aware about mutual funds and there operations? Yes 68.6% No 14.3% Maybe 17.1%
- 28. Page | 28 Q5 Howdid you know about mutual funds ? Advertisement 51.4% Banks 14.3% Financial advisor 20% Others 14.3%
- 29. Page | 29 Q6 Haveyou ever invested in mutual funds ? Yes 42.9% No 57.1%
- 30. Page | 30 Q7 Whenyou plan to invest your money in assets management co. which A M C will you prefer ? Assets managements 11.4% SBI mutual funds 37.1% Reliance 11.4% Kotak 8.6% HDFC 14.3% ICICI 17.1%
- 31. Page | 31 Q8 Whichchannel will you prefer while investing in mutual funds ? Financial advisors 57.1% Banks 42.9%
- 32. Page | 32 Q9 Whenyou invest in mutual funds which mode of investment will you prefer ? One time investment 31.4% Systematic investment plans 68.6%
- 33. Page | 33 Q10 Howwould you like to receive the returns every year ? Dividend payout 31.4% Dividend re-investment 68.6%
- 34. Page | 34 Chapter -5 Findingsand suggestions
- 35. Page | 35 1. Mostof the people are invested in Mutual Funds. 2. Almost 41% people invest in Open ended fund, 18% people invest in Close ended fund, and 41% invest in both. 3. Out of 50 people, 26 people are invested in Mutual Fund, 12 people are invested in Banks, 4 people in Share Market and 8 people in Post office. 4.70% of people agreed that they are getting good returns in their SBI Mutual Fund. 5 Out of 50 people, 29 people have invested in Mutual Funds in between 1-2 Years. 6. 53% of the people come to know about Mutual fund through Brokers. 7. While survey I found that people are satisfied with their investment and most of them do not want to shift to other mutual fund
- 36. Page | 36 “LIMITATIONS” We haveto face certain difficulties while carrying out the research work. I know the limitations before hands which are controllable. Some important limitations faced during the project are as follows:- Sample Size: The opinion of just 50 respondents cannot represent opinion of all investors. Limitations of responses:- The number of responses given by the respondents may not always 100% correct. Also some respondents refuse to disclose data. Accuracy of data:- Though extensive efforts are made to collect accurate data but due to human touch there may be some inaccuracy in them as it is possible that the data given by respondents may carry some inaccuracy.
- 37. Page | 37 “SUGGESTIONS” 1.Use noload funds . 2.Use index funds. 3.Dollar cost averaging . 4.Buy aggressive funds . 5.Bottom line . 6.Asset allocations .
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- 39. Page | 39 “ CONCLUSION” INconclusion it was found that well planned and organized agent training programs of MUTUAL FUNDS are able to achieve correct need of customer or the needed person and it will result into a great success for the company.It plays an essential part in the growth of the company. Through the accurate need assessment and by understanding the nature of training required by understanding the individual employees need a company can achieve a tremendous success
- 40. Page | 40 “BIBLIOGRAPHY” MAGAZINE Punithavathy Pandian,Security Analysis and Portfolio Management ,Vikas Publishing House,2001 WEBSITES http;//www.moneycontrol.com http;//www.sbimutualfunds.com www.amfiindia.com BOOKS SUNDAR SANKARAN Indian Mutual Funds Handbook NORTHCUT The Mutual Fund ESME FAERBERR All about value investing
- 41. Page | 41 QUESTIONNAIRE A studyof preferences of the investors for investment in mutual funds. 1. Personal Details: (a). Name:- (b). Add: - Phone:- (c). Age:- (d). Qualification:- Graduation/PG Under Graduate Others (e). Occupation. Pl tick (√) Govt. Sector Pvt. Sector Business Agriculture Others (g). What is your monthly family income approximately? Pl tick (√). Below 100,000 1 100,000-500,000 500,000-10,00,000 Above 10,00,000 2. What kind of investments you have made so far? Pl tick (√). All applicable. Fixed Deposit Insurance Mutual Funds
- 42. Page | 42 Post Office/NSE Share/Debenture Gold/Silver RealEstate 3. While investing your money, which factor will you prefer? . Liquidity Low Risk High Return Trust 4. Are you aware about Mutual Funds and their operations? Pl tick (√). Yes No Aware Not Aware 5. If yes, how did you know about Mutual Fund? Advertisement Peer Group Banks Financial Advisors 6. Have you ever invested in Mutual Fund? Pl tick (√). Yes No Invested Not Invested 7. If not invested in Mutual Fund then why? Not Aware of Mutual funds High Risk Not any specific reason
- 43. Page | 43 8. Ifyes, in which Mutual Fund you have invested? Pl. tick (√). All applicable. SBI Mutual Funds UTI HDFC Reliance Kotak Other 9. If invested in SBI MF, you do so because (Pl. tick (√), all applicable). SBI MF is associated with State Bank of India. They have a record of giving good returns year after year. Agent‘ Advice 10. If NOT invested in SBIMF, you do so because (Pl. tick (√) all applicable). You are not aware of SBI MF. SBI MF gives less return compared to the others. Agent‘ Advice 11. When you plan to invest your money in asset management co. which AMC will you prefer? Assets Management Co. SBI MF UTI Reliance HDFC Kotak ICICI 12. Which Channel will you prefer while investing in Mutual Fund? Financial Advisor Banks AMC
- 44. Page | 44 13. Whenyou invest in Mutual Funds which mode of investment will you prefer? Pl. tick (√). One Time Investment Systematic Investment Plan (SIP)
- 45.