Project Presentation

Mutual Funds and Its Investment Avenues Submitted To: Mrs. Hema Khanna

Submitted By: Vibhor Kulshrestha PGPM/2K8/B62

Objectives 



To find out the most preferable investment option available in mutual funds. To understand the various investment options available in mutual funds.

What is a Mutual Fund? 



A Mutual Fund is a common pool of money into which investors place their contributions to be invested in accordance with a stated objective managed by experts called fund managers. Types of Mutual Funds:  Close ended/ Open ended.  Load Fund/ No-Load Funds.  Tax-exempt/ Non-Tax exempt Funds.

Association of Mutual Funds of India  







Incorporated on 22 Aug 1995. AMFI is an apex body of all Asset Management Companies (AMC), which has been registered with SEBI. Brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards. Follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holder. To Implement the certification programme.

SBI Mutual Fund 





SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country with an investor base of over 5.4 million. With over 20 years of rich experience in fund management. SBI Mutual Fund is a joint venture between the State Bank of India and Société Générale Asset Management, one of the world’s leading fund management companies that manages over US$ 500 Billion worldwide. In twenty years of operation, the fund has launched 38 schemes and successfully redeemed fifteen of them.

Recent Achievements 

ICRA MUTUAL FUND AWARDS 2009 



SBI Magnum Tax Gain Scheme 93.

THE LIPPER FUNDS AWARDS 2009: 



SBI MAGNUM BALANCED FUNDDIVIDEND SBI MAGNUM SECTOR FUND UMBRELLA-CONTRA FUND – DIVIDEND

Investment Avenues in Mutual Funds  

Close Ended Open Ended    

 

Growth Option Dividend Option  



Equity Schemes. Debt Schemes. Balanced Schemes. Exchange Traded Schemes.

Dividend Pay Out. Dividend Reinvest.

Systematic Investment Plan

Research Methodology     

Research Design – Exploratory Research. Sampling Method – Convenient Sampling. Sample Size – 20. Area of Operation – Agra, Uttar Pradesh. Tools Used for Data Collection.  

Questionnaire. Personal Visit.

Mutual Funds Preferences 

Benefits Considered while selecting a mutual fund. Benefits considered while selecting a Mutual Fund

Other 15% Safety of Investment 15% Professional Management 30%

Conveinience & Liquidity Conveinience & Liquidity 40%

Professional Management Safety of Investment Other

Effect of Investment Decision Investor's Awareness and Investment Decision

Other reasons, 10% Better Fund Performance, 25%

Financial Advisors Knowledge, 40%

Financial Advisors Knowledge More Publicity Better Fund Performance Other reasons

More Publicity, 25%

Average suggested time to Stay Invested in Mutual Funds Average time to stay invested in Mutual Funds

More than 5 years, 10% 1-3 Years, 40%

3-5 Years, 50%

1-3 Years

3-5 Years

More than 5 years

Percentage of Investable Surplus to be Invested in Mutual Funds

Experts Preference and Suggestions Advisors Preferences and Suggestions 100% 90% 80% 70% 60% Series1

50% 40% 30% 20% 10%

In v Ti m e O ne

IP S

en t

Fu eb t D

ui ty Eq

es tm

nd

s

nd s Fu

nd E lo se C

O pe

n

En d

ed

ed

0%

Findings        



Convenience & liquidity and Professional Management are the most important aspects of a mutual fund. Investors’ investment decision is most affected by his fund advisors’ knowledge, it is also been affected by publicity and performance review of the fund. For better returns on investments, advisors suggest to stay invested for 3-5 years in a mutual fund. SBI Mutual Fund has become one of the preferable AMC while considering for investment by the investors. 50% of the investable surplus is suggestable to be invested in mutual funds. Investment decisions are more affected by the income stability of the customer. SBI Magnum Tax Gain and MSFU Contra fund are in the top performing funds in India. Open ended schemes are more preferred over close ended schemes, and also equity schemes and SIP is preferred over debt and one time investment respectively. Also many banks invest their surplus funds in mutual funds.

Suggestion:  



While selecting a mutual fund liquidity, professional management and transparency should be seen. Although it’s the time of recession but efforts made by the government and worldwide seems to overcome this era soon, so it’s the best time to invest in mutual funds for a suggestable period of 3 – 5 years. After considering the results of the study it is been suggestable to opt for an SIP in an open ended equity fund, so as to maintain liquidity, transparency and averaging of risk of your investment.

Conclusion 

Mutual Fund industry has been through various phases since its inception in India in 1963. Although it has some bad time since 2008 in the period of recession, their value fall down about one-third of their total size, but still there are various funds that are performing comparatively better from their benchmarks. So the investors should not loose hope as mutual funds are one of the best investment options. Also from business point of view it’s a good field where one can develop his career. Although some recent regulations by SEBI, like eradication of entry load, has dropped the morale of AMFI certified mutual fund advisors but increasing awareness and interest of people is inspiring them to keep working with the industry.

Thank you!!!