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How investors do chose between funds? Most popular stocks among fund managers, most lucrative sectors for fund managers. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand. All the datas have been well analyzed with the help of charts and graphs. It covers the topic A comparative Study on the investors preferences towards Mutual funds and Ulip In Indian Financial Market. The data collected has been well organized and presented. Hope the research findings and conclusions will be of use. It has also covered why people dont want to go for financial advisor? The advisors can take further steps to approach more and more people and indulge them for taking their advices.
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INTRODUCTION
INTRODUCTION TO MUTUAL FUNDS
A mutual Fund is a trust that pools the saving of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciation realized by the scheme is shared by its unit holders in proportion to the number of units owned by them (pro rata). 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 portfolio at a relatively low cost. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy. A mutual fund is the ideal investment vehicle for today's complex and modern financial scenario. Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Price changes in these assets are driven by global events occurring in faraway places. A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily. An individual also finds it difficult to keep track of ownership of his assets, investments, brokerage dues and bank transactions etc. A mutual fund is the answer to all these situations. To appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. In effect, the mutual fund vehicle exploits economics of scale in all three areas research, investments and transaction processing. While the concept of individuals coming together to invest money collectively is not new, the mutual fund in its present form is a 20th century phenomenon. In fact, mutual funds gained popularity only after the Second World War. Globally, there are thousands of firms offering tens of thousands of mutual funds with different investment objectives. Today, mutual funds collectively managed most as much as or more money as compared to banks.
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Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. Chartered opened its first branches in Mumbai (Bombay), Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. Traditional trade was in cotton from Mumbai (Bombay), indigo and tea from Kolkata, rice from Burma, sugar from Java, tobacco from Sumatra, hemp from Manila and silk from Yokohama.
Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's Cyprus Branches. This established a presence in the Gulf.
Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, in January 1863. Was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885.
Expanded in Southern, Central and Eastern Africa and, by 1953, had 600 offices. In 1965, it merged with the Bank of West Africa, expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.
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From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, Africa and the Middle East. It has concentrated on consumer, corporate and institutional banking and on the provision of treasury services - areas in which the Group had particular strength and expertise. Since 2000 the Bank has achieved several milestones with a number of strategic alliances and acquisitions, which have extended the customer and geographic reach and broadened the product range that Standard Chartered offers.
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The study was done with the primary objective to get an insight of the investors decision making process while investing in Mutual Fund & ULIP. However the other secondary objectives were:
Toanalyse the customer perception towards Mutual Fund & ULIP. To analyse which is better investment option between Mutual Fund & ULIP. To analysethe various expenses incurred in Mutual Fund & ULIP.
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RESEARCH METHODOLOGY
Primary sources
For data collection primary source is used in the form of structured questionnaire
Secondary Sources
The study is based on secondary data collected from the various volumes ofbanking statistics published by standard charted. Journals, Research Papers, Banking articles, News paper clippings, various related website, Business news on electronic media etc.
Sample Size
100 respondents selected from the customers of ULIP and Mutual Fund Holders at standard Charted Bank in Delhi and NCR region.
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Thus the results do not have much practical application value. 3. There was shortage of time. 4. Respondents were sometimes very conservatives and introvert which turns into criticism about availability by some of the respondents and
5. Some respondents didnt respond about their choices.
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Always determine all sales charges, fees and expenses before you invest. Never treat the risk of investment in a fund lightly.
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QUESTIONNAIRE
Dear respondent, I am conducting the survey on Comparative Analysis of Mutual Fund vs ULIP which is a part of M.B.A. Program. All the information provided by you will be kept secret & will be used exclusively for academic purpose. Name Address Age : : : _______________________________________________ ________________________________________________ Sex : _____________________
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1. What is your source of income? Service Business Other 2. What is your annual income? 1lac-2lac 2lac-4lac Above 4 lac 3. Which service you avail from bank? Insurance Mutual ATM Card Others 4. Do you know about Standard Charted Bank? Yes No
5. Where did you get the information about Standard Charted Bank? Newspaper Employee Mutual Fund Friends Electronic Media ULIP
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Yes No 7. Where did you invest your money? Mutual Fund ULIP Both
8. How much %age of your income you invest in mutual fund or ULIP? Upto 10% 15-20% 10-15% Above 20%
9. What are your selection criteria while selecting Mutual Fund or ULIP? Returns Tax benefits Security Past Performance
10. Do you know about changes or expenses incurred in Mutual Fund or ULIP? For Mutual Fund Entry Load Exit Load Fund Mgt. Changes For ULIP Allocation Changes Administrative Fund Management Changes
12. According to you whoare more beneficial on time perspective? Mutual Fund Long Term Short term 13. Are you aware about these features of Mutual Fund or ULIP? Mutual Fund Diversification of Bank Liquidity Less time Less Expenses ULIP Top Ups Switching Operation Tax Saving Additional risk ULIP
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14. Do you agree that there the +ve relationship between sensex fluctuation & return of Mutual Fund or ULIP Mutual Fund Agree Strongly Agree Disagree Strongly Disagree
15. Are you satisfied with overall performance of Mutual Fund or ULIP you invested in?
ULIP
ULIP
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