Mentor : Presentation by- Dr. Sushil Pandey Ankit Srivastava

“Awareness of Mutual funds among investors and purpose of Investment “ At

NJ India Invest Private Ltd.

Problem Definition

• Mutual fund industry has emerged as the most dynamic segment of the Indian Financial segment. However, Mutual Fund in India has not attained the status of their counterpart in USA, UK and other developed countries. So I conduct this research to know the awareness about Mutual Funds and also to know the purpose of investment.

OBJECTIVE Primary objective:

To study the Awareness level in general public regarding Mutual funds through questionnaire analysis.

To study the general investment criteria of people.

To understand the distribution of Mutual Funds through NJ India Invest Pvt. Ltd.

  

Objectives for Summer Internship:

To gain an insight into the working of a mutual fund.

To study the Awareness level in general public regarding Mutual funds through questionnaire analysis.

Understanding the distribution network of mutual funds.

To study why investors started investing in Mutual Funds as there are other options available with them.

Company Introduction

Research Methodology

RESEARCH DESIGN Descriptive Research

RESEARCH WORK Analyse the awareness regarding Mutual Funds among different investors and financial

advisors. Seeing the working of mutual fund at NJ India Invest Pvt Ltd. Collecting the information regarding awareness -

PRIMARY SOURCE

SECONDARY SOURCE Finally we have to analyse the data and make interpretation from that.

MODE Of COLLECTING DATA

1.Primary data collection - By Questionnaires.

2.Scondary data collection- various books, magazines, internet and Association of mutual funds in India (AMFI) & NJ fund network..

 

RESEARCH APPROACH Survey Method

RESEARCH INSTRUMENT Questionnaire

TYPE Of QUESTIONNAIRE Structured non-disguised

TYPE Of QUESTIONS Closed-ended questions

SAMPLING PLAN Sample Area-Lucknow Sample Size-120 Respondents Sampling Procedure-Simple Random Sampling

RESPONSE RATE Response rate=100/120

=83.33%

Data Interpretation

90%

30%

Awareness regarding Mutual Funds

Not AwareAware

54.00%

18.00%

36.00%

12.00%

Preference of Investment Avenue among Respodents

Bank DepositMutual FundInsurancePost Office Deposit

48%

36%

24%

12%

Respondents look these things while Investing

Professional ManagementSafety Of MoneyTrustReliability

19.20%

22.80%

30.00%

48.00%

Purpose Of Investing in Mutual Funds

Tax SavingSafetyIncomeGrowth

84%

36%

Preferred Time Horizon for Investment

Long TermShort Term

Findings & ConclusionMajority of the people is not aware of mutual funds as an

investment option.

For non-investors there are two dominant reasons: working on expansion plan and reinvestment in their own unit.

Factors considered for investment is majorly growth and safety.

Majority of the investors are preferred to invest for medium term only .

Lack of knowledge is the main reason why people do not invest in mutual funds.

Majority of mutual fund investors is not even aware of the name of the scheme in which they have invested.

For investors, if mutual funds offer steady returns and minimization of risk, they may consider investing in them.

Many investors do not prefer to take Professional Advice.

Recommendation

Investment related organization should be transparent and they should guide to see the mentality of investors like attacking investors or defensive investors.

Government should monitor the mutual fund industry closely and they should provide some guide to investors about investment.

Investors (especially lower and middle income group) should invest some percent of their income in mutual fund.

THANK YOU