INTRODUCTION

Definition of investment
Investment definition according to finance, the practice of
investment refers to the buying of a financial product or any valued
item with anticipation that positive returns will be received in the
future.

Definition of investment behavior

Investment behaviours are defined as how the investors judge,
predict, analyze and review the procedures for decision making,
which includes investment psychology, information gathering,
defining and understanding, research and analysis. The whole
process is Investment Behavior.

Meaning of mutual funds

The mutual fund is structured around a fairly simple concept, the
mitigation of risk through the spreading of investments across
multiple entities, which is achieved by the pooling of a number of
small investments into a large bucket. Yet, it has been the subject of
perhaps the most elaborate and prolonged regulatory effort in the
history of the country. The mutual fund industry has grown to
gigantic proportions in countries like the USA, in India it is still in the
phase of infancy.

Introduction of mutual fund

The origin of the Indian mutual fund industry can be traced back to
1964 when the Indian Government, with a view to augment small
savings within the country and to channelize these savings to the
capital markets, set up the Unit Trust of India (UTI). The UTI was
setup under a specific statute, the Unit Trust of India Act, 1963. The
Unit Trust of India launched its first open-ended equity scheme
called Unit 64 in the year 1964, which turned out to be one of the
most popular mutual fund schemes in the country. In 1987, the
government permitted other public sector banks and insurance
companies to promote mutual fund schemes. Pursuant to this
relaxation, six public sector banks and two insurance companies
viz. Life Insurance Corporation of India and General Insurance
Corporation of India launched mutual fund schemes in the country.

Types of Mutual Fund Schemes

There are a wide variety of Mutual Fund schemes that cater to
investors need, whatever your age, financial position, risk tolerance
and return expectations. Whether as the foundation of your
investment program or as a supplement, Mutual Fund schemes can
help you meet your financial goals.

By Structure Schemes can be classified into 3 types

Open-Ended Schemes
These do not have a fixed maturity. Investors deal directly with the
Mutual Fund for their investments and redemptions. The key feature
is liquidity. They can conveniently buy and sell their units at Net
Asset Value ("NAV") related prices.

Close-Ended Schemes
Schemes that have a stipulated maturity period (ranging from 2 to
15 years) are called close-ended schemes. Investors can invest
directly in the scheme at the time of the initial issue and thereafter
they can buy or sell the units of the scheme on the stock exchanges
where they are listed. The market price at the stock exchange could
vary from the scheme's NAV on account of demand and supply
situation, unit holders' expectations and other market factors. One
of the characteristics of the close-ended schemes is that they are
generally traded at a discount to NAV; but closer to maturity, the
discount narrows. Some close-ended schemes give them an
additional option of selling their units directly to the Mutual Fund
through periodic repurchase at NAV related prices. SEBI
Regulations ensure that at least one of the two exit routes is
provided to the investor.

Interval Schemes
These combine the features of open-ended and close- ended
schemes. They may be traded on the stock exchange or may be
open for sale or redemption during pre-determined intervals at NAV
related prices.

The importance of investing for younger generations is especially

timely given the current economic condition, as younger generations
will be caught between a baby boomer rock and a fiscal hard place.
With an ongoing push to partially privatize Social Security and turn
over pension plans to the Federal government, younger generations
may face a challenging and uncertain financial future. Because
understanding younger generations' investing behavior is an
important task, the first objective of this study looks at younger
generations' behavior toward investing. Specifically, this study
examines four aspects of younger generations' investing behaviours
in mutual funds: frequency of information search, frequency of
investing, years of investing, and performance of investments in
mutual funds. Investigations of younger generations' investing
behavior in mutual funds also require data analyses that can
account for individual differences and social context This study
suggests two main avenues, personal and social influences,
through which younger generations acquire their familiarity with
investing in mutual funds. Personal influences mostly include
demographics. Thus, the second objective of this study is to test the
effects of gender, age, and income on younger generations'
investing behavior in mutual funds. In contrast, social influences
include factors that develop from financial socialization. Thus, the
third objective of this study is to examine younger generations'
experiences and knowledge that may explain the differences in their
investing behavior in mutual funds. Based on the results, this study
hopes to help wealth advisors understand how to work better with
young generations in managing their wealth.
 INDUSRTY PROFLIE

Capital Market
2.7 History of mutual fund

The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India, at the initiative of the Government of India and Reserve Bank of
India. The history of mutual funds in India can be broadly divided into four distinct
phases:

1 First Phase - 1964-1987

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up
by the Reserve Bank of India and functioned under the Regulatory and administrative
control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
Industrial Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the
end of 1988 UTI had Rs. 6,700 crores of assets under management.

2 Second Phase - 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non-UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National
Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90),
Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989
while GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual
fund industry had assets under management of Rs. 47,004 crores.

3 Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund families. Also,
1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual
fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.The number of mutual fund
houses went on increasing, with many foreign mutual funds setting up funds in India and
also the industry has witnessed several mergers and acquisitions. As at the end of
January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The
Unit Trust of India with Rs. 44,541 crores of assets under management was way ahead
of other mutual funds.

4 Fourth Phase - since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs. 29,835 crores as at the end of January
2003, representing broadly, the assets of US 64 scheme, assured return and certain
other schemes. The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come
under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of
assets under management and with the setting up of a UTI Mutual Fund, conforming to
the SEBI Mutual Fund Regulations, and with recent mergers taking place among
different private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth.

2.1 Industry profile globally:

Scope of Mutual Funds in Global Scenario: An Indian Perspective The
aim of getting higher income has always persuaded mankind to develop
more and more avenues of investments. One of the financial innovations
which really help the small investors to earn wealth is the concept and
design of mutual funds. Earlier it is felt that the share or commodity
trading is reserved for rich and elite. Any investor now big or small, retail
or non-retail can now participate and play his bets on almost any asset
through the use of mutual funds.

In china mutual fund one of the largest and faster growing markets their
73 AMCs manage 380 USD billion through nearly 1000 schemes, in US
Mutual funds industry is largest mutual fund industry with nearly 16 dollar
trillion in assets. US households rely on equity, bond and hybrid mutual
fund to meet long term personal finance objective such as preparing for
retirement and the European mutual fund industry grew faster, by 642
percent is equal to 9 $ trillion.

Mutual fund marketers make extensive use of online advertising. In the

UK, the banking sector has adopted technologies (such as RFID) to
monitor/ understand customer behavior. This would alert staff to the
customer needs and also help devise methods to improve delivery of
services. In life insurance pricing, lifestyle-linked obesity risk has begun
to play a major role in premium determination. However, the preferred
lives concept has not been Very successful due to operational difficulties

The IFAs (Independent Financial Advisors) have gained prominence as a

new channel of distribution for a majority of financial products like life
insurance, pension, and mutual funds. The emergence of fund
supermarkets is a recent development in the UK. These are like grocery
stores where a wide variety of funds are available for the customers at
one place. The fees levied are lower compared to dealing directly with a
fund house due to the large number of mutual fund products that the fund
house sells.
2.2 Industry profile nationally:
The stock markets in India are one of the oldest in the world and
have a strong presence and network of domestic and local
intermediaries. Owing to the high incidence of indigenous equity
broking, India got a Native Share Brokers Association as early as
1875; this association later came to be known as the Bombay Stock
Exchange (BSE). In 1864, there were more than 1,000 brokers in
Mumbai who traded in stocks; high premium was also a familiar
concept during that time. One of the earliest stock market booms
that occurred in 1860s after the American Civil War led to the
creation of many joint stock cotton/ginning mills and this
phenomena stirred an equity culture that saw share prices touch
stratospheric levels.
In the 1970s the Foreign Exchange Regulation Act (FERA) was
introduced that encouraged multinational companies to divest their
foreign equity; this phenomenon gave a fresh impetus to retail
investing.
The Securities and Exchange Board of India (SEBI), which was set
up in 1988 as an administrative arrangement, was given statutory
powers after the enactment of the SEBI Act in 1992. The main
function of SEBI was to protect investor interests in securities, to
promote the development of securities markets and to regulate the
securities markets.
Introduction of a wide range of economic reforms that revolved
around the central theme of liberalization of financial markets
revived the exuberance in the stock markets during the nineties.
Due to the greater freedom and flexibility that accompanied the
reforms, stock markets in India set out on a growth journey that was
to last in the next one-and-a-half decades. Despite major setbacks
in the early 1990s and 2000s, which caused the Joint Parliamentary
Committees to conduct extensive investigations in the stock
markets, the markets continued their impressive growth.
The reforms brought about many fundamental changes that fuelled
the pace of market growth and at the same time brought some
orderliness in the manner and conduct of operations. Reforms also
equipped the Indian markets with the best processes and practices.
Some of these processes were: Abolition of open outcry;
introduction of electronic trading (secondary markets); consent for
foreign ownership (foreign institutional investment) of shares and for
Indian companies to raise capital from overseas ( ADRs / GDRs);
expansion in product range (equities/ derivatives/debt); book
building process and transparency in IPO issuance (primary
markets); T+2 settlement cycle (payments and settlements);
depositories for share custody (dematerialization of shares);
governance of stock exchanges (demutualization and
corporatisation of stock exchanges) and internet trading (e-broking).
Due to all these changes, the stock markets in India grew
unprecedented and so did the equity broking firms. The broking
industry is fast emerging as a high growth segment in the Indian
financial services map, in terms of business growth, distribution and
network, and enterprise value.
2.3 Industry state:
There is a steady increase in mutual fund investments from Gujarat.
The investment objective may have changed from pure equity to a
debt -oriented scheme. However, awareness about the investment
in mutual funds is definitely there and increasing, said the regional
head of a large mutual fund. according to the official data of
Association of mutual funds of India (AMFI) as on September 2013
total assets under management (AUM) from Gujarat stood at
Rs46,396 crore compared to Rs36,582 crore in September 2011.
Ahmedabad emerged as the largest investor in mutual funds from
Gujarat. The city has a total investment of Rs28,755 crore or 62% of
total AUM. It is followed by Vadodara (Rs4,917 crore), Surat
(Rs4,347 crore) and Rajkot (Rs1,996 crore) as on September 2013.
Other than four large cities of Gujarat, 10 small towns from Gujarat
also featured in the top-100 list of highest investment in mutual fund
as compiled by the AMFI. Except Sutra and Jamnagar where AUMs
have declined showing redemption by investors, all other cities have
shown a steady increase in AUM between 2011 and 2013.
2.4 PESTEL Analysis:
PESTEL is an acronym that stands for political, economical, social,
technological, environmental and legal. It is used to describe an
analysis that is used for determining the opportunities and risks of
global expansion.
Political factors
Political forces have a great on financial services industry. Political
factors have important influence in terms of the ownership and
therefore objectives of financial institutions. Any political
announcement or decision can bring forth a welter of proposals on
capital regulation, liquidity and leverage controls, and governance
and remuneration issues. These changes affect financial structure
and the behaviour of borrowers and lenders.
For example, the Indian governments decision to allow FDI in multi-
brand retail sent the stock markets up. Allowing FDI in insurance to
49% would might see changes in the ownership pattern of many
insurance firms or attract new ones. This would affect the behaviour
of investors.

Economic factors
Financial services industry is the most vulnerable to economic
factors. The stage of the economy, growth or decline in the
economy, etc. would affect the financial services industry at large.
Economic indicates like the GDP, purchasing power parity, inflation,
etc. would determine the rates of interest in the economy which has
a substantial impact on the way the intermediaries in the financial
services industry operate.
Events like wars, greatly affect the stability of the financial services
industry. In other words we can say that the growth or development
of financial services industry is largely dependent on the state of
economy of the country.
Social factors
Social factors include the culture aspects and include health
consciousness, population growth rate, age distribution, career
attitudes and emphasis on safety. Trends in social factors would
affect the financial services industry. For example, an aging
population may imply a smaller and less-willing work-force, more
investment in risk free avenues, etc. furthermore, intermediaries in
the financial services industry may have to change various
management strategies to adapt to these social trends (such as
recruiting older workers).

Technological factors
Technological factors also affect the financial services industry at
large. Previously, share certificates represented ownership rights,
however with technological changes they are now held in
dematerialized form. Opening accounts with banks, mutual funds
and insurance companies online; electronic transfer of funds ATM
services; mobile banking; etc. are all because of the technological
changes in the world and financial services industry is also affected
by the same. It has to continuously change the way it functions
along-with the changes in technological factors to survive in the
competitive environment.

Environmental factors
Environmental factors include ecological and environmental aspects
such as weather, climate and climate changes. These factors may
not deeply affect the financial services industry; however, it may
affect insurance companies and the commodities markets. For
example, uncertainty in the amount of rainfall has led to
development of new insurance product such as weather insurance.
Also shortfall of rainfall would increase the price of commodities
which would affect the commodities market.
Legal factors
Legal factors include discrimination law, consumer law, antitrust law,
employment law, and health and safety law. These factors can
affect how intermediaries in the financial services industry operate,
their costs, and the demand for the products and services offered by
them. Laws relating to accounting standards, definitions,
incorporation rules, bankruptcy, solvency, and transparency all have
an impact on the financial services industry.

2.5 Current trends of mutual fund

After improvement in the Equity, flow of money in Equity has been
increased so the result of that asset base of mutual fund industry
has been increased in April-June from 39000 crore to 1200000
crore
In countries 44 fund houses of mutual funds AUM was last year
was 11.88 lakh which is currently 12.27 lakh current financial years.
still many mutual fund houses does not declared the amount, but if
that amount is declared there are also chances that asset base will
increase.
Figure 2.1: Growth in Assets under Management (AMC)

Source: https://www.google.co.in/search?
q=growth+in+assets+under+management&rlz=1C1CHTX_enIN5
09IN670&espv=2&biw=1366&bih=667&source=lnms&tbm=isch
&sa=X&ved=0ahUKEwjsyPPYiYzOAhUJwI8KHcmsCaMQ_AUIBi
gB#imgrc=z_ILkoqMWYEWbM%3A

2.6 Major players:

 SBI Funds Management Ltd.
Franklin Templeton Mutual Fund
HDFC Asset Management Co. Ltd.
Reliance Mutual Fund
ICICI Prudential Mutual Fund
Birla sun Life Mutual Fund
Axis AMC ltd.
Tata Asset Management Ltd.
BNP Paribas AMC Ltd.
DSP Blackrock Investment Managers Pvt. Ltd.

2.7 Major offerings:

The financial services industry has a wide range of products or

offering available to the public at large. Few of them are listed
below:
Financial for various purposes such as housing, automobiles,
agriculture, etc.
Mutual fund services
Fixed Deposits of companies,
PMS products (Third party & NJ)
Government/RBI bonds
Infrastructure Bonds
Debt market services
Investment banking
Depository services
Portfolio management services
Investment advisory services
NRI services
Services for easy subscription to IPOs
Currency, derivatives and equity trading
Life and general insurance service
3. Company profile

3.1 N.J India Pvt Ltd Profile:

Table 3.1 : N.J. India Invest :Company Detail

Offices in 21 states 100+

Employees 1400

Countries India, Dubai, Mauritius

Partners 21000+

Customers 12,00,000+

AUM 25,000+ of AUM

NJ Group is a leading player in Indian financial service industry
known for its strong distribution capabilities. It started
in year 1994 by two Surat based aspirants
namely Neeraj Choksi and Jignesh Desai.
They initially started the business
as agents and contact to investors
directly. Then, they develop the idea of a distributor
network in year 2003. The reason behind this decision was the
reason that there exists a pool of potential investors in
India itself and it is very difficult to contact them
personally. So, they thought that instead of
contacting the investors directly, they will
develop a network of agents who will in turn
contact the investors.

An evolving, emerging & enterprising group with its' roots in the

financial services sector and today expanding into newer horizons
with great passion.
The vision of the group is to be leaders in businesses driven by
customer satisfaction, commitment to excellence and passion for
continued value creation for all stakeholders. This vision has helped
us grow and build the trust of our customers and associates which
is at the cornerstone of everything we do. Trust is also at the heart
of our success and the driver for passion for our success.
Over the years, NJ Group has diversified into other businesses and
today has the presence in businesses ranging from financial
products distributor network, asset management, real estate,
insurance broking, training & development and technology. Our rich
experience in financial services, combined with executional
capabilities and strong process & system orientation, has enabled
us to shape a rising growth trajectory in our businesses.
 NJ Group is based out of Surat in Gujarat (India) and has presence
in 94* locations in India and has over 1,500+* employees.

Products:
NJ offers advisory and distribution services on the following
products.

Investment Products:
Mutual funds covering all AMCs & all schemes,
Fixed Deposits of companies,
PMS products (Third party & NJ)
Government/RBI bonds,
Infrastructure Bonds,
Approved securities for charitable trusts, etc

Real Estate:
Residential properties
Commercial properties

Training & Education:

Certification training courses
AMFI
CFP
Training products

Services:
Trading & Demat Account:
NJ India Invest Pvt Ltd offers benefits of trading and depository
services under one roof. NJ is registered as a Member with Bombay
 Stock Exchange (BSE) & National Stock Exchange (NSE). NJ is
also registered as a Depository Participant of CDSL.
Dematerialization and trading in the demat mode is the safer and
quicker alternative to holding physical securities. Under the
depository services the securities are held in electronic form for the
investor directly by Depository.
At NJ, we are committed to provide complete depository services
which are convenient, safe and secure. Customers can approach
the DP Helpdesk for any queries & grievances that they may have.

Vision and Mission:

Vision:
To be the leader in our field of business through:
Total Customer Satisfaction
Commitment to Excellence
Determination to Succeed with strict adherence to compliance
Successful Wealth Creation of our Customers

Mission:
Ensure creation of the desired value for our customers, employees
and associates, through constant improvement, innovation and
commitment to service & quality. To provide solutions which is meet
expectations and maintain high professional & ethical standards
along with the adherence to the service commitments.

Service Provided To Valuable Clients and Agents:-

The weekly performance sheet (it covers performance of leading

mutual fund schemes)
The monthly fund fact sheet (it covers comprehensive analysis of
various mutual fund)
Various subscription services via E-mail
Dedicated portfolio planning and restructuring on demand
 Sharing relevant information related to the Indian investment world.
Varied services through NJ fund network for partners.
Over all we also provide net-based services to our clients and
agents. Our E-services are provided by a comprehensive website
www.njindiainvest.com. It covers detailed information about the
Mutual Fund industry; it passes various financial planner to satisfy
investment goals like retirement planning, childs marriage planning
etc. it also possess various analytical tools to measure the
performance of the Mutual Funds schemes like Return calculators,
SIP return calculators, and many others. There is a separate desk
for the clients to get their portfolio information on fingertips.
The partners of NJ get valuable services from The Client Desk @
njindiainvest.Com. From which they get following services:
Transaction summary report (Mutual funds, fixed deposits, RBI
bonds & other)
Portfolio valuation report
Portfolio Performance report
Profit and loss a/c (FY wise)
Consolidated sector & stock profile for equity investment through
mutual funds
Consolidated rating and script profile across debt funds through
mutual funds.
Consolidated assets allocation report across various assets
Alert processing facility across different parameters

Management Team

Mr. Neeraj Choksi& Mr. Jignesh Desai (R) are two first generation
entrepreneurs who began the journey of 'NJ' in 1994. The
promoters of the NJ Group were friends since their college years
and the bond between Mr. Neeraj & Mr. Jignesh has been
instrumental in the success of NJ. Discussing upon important things
before taking any decision, is a habit that they have followed ever
since they shared their hostel room in Vidhyanagar, where Mr.
Neeraj was studying his management courses and Mr. Jignesh was
into engineering. They both have a complementary style of
functioning that augurs perfectly well for the business.

Driven by their passion for financial well-being of customers & the

mission for transforming lives, the promoters have successfully put
NJ on the forefront of innovation & growth. With a humble beginning
from home, the promoters have successfully shaped the group's
forays into many diversified businesses. Both believe that 'Trust' has
played a very important role in NJ's journey, and in every step that
they have taken. The words of the promoters aptly describes this
journey of NJ 'Built on Trust'.

3.1.1 Companys businesses at glance:

Table no: 3.2 NJs businesses at glance

Sr Business Description
no
.
1 Mutual Fund NJ started its advisory business in
 Advisory 2003. Instead of contacting the
customers on its own, it make
partners and then contacts the
investors. The partners are given
full help with regards to the
solutions for their problem. They
are updated with the latest market
situations and are taught the ways
through which they can tackle
their clients.1
2 Real Estate NJ Realty worked in Real estate
initially on exclusive and non-
exclusive partnership. Wherein in
non-exclusive partnership, both
the developer as well as NJ can
market the project. While in
exclusive, only NJ can market and
sell. Currently, NJ is working on
exclusive basis and had launched
its own projects.1
3 Insurance NJ Insurance Brokers Pvt. Ltd. is
broking a licensed broker by IRDA. It has
appointed Certified Insurance
Advisors (CIAs) who work with
customers in managing and
fulfilling their insurance needs. NJ
Insurance Advisor can work with
all types of insurance with a single
license.1
4 Gurukul It started in 2008 with an objective
to create a huge force of 'quality
financial advisors who have the
right training and education
needed for providing the 'right
 advisory services to clients. NJ
Gurukul is authorized from
Financial Planning Standards
Board, India (FPSBI) for the
Certified Financial Planner in
India.
5 Portfolio NJ is a SEBI Registered Surat
Management based Portfolio Manager. It seeks
services to offer customized Portfolio
Management Services (PMS) to
clients. The idea is to offer clients
with products that meet their
needs for successful long-term
wealth creation without too much
of risk.1
6 Technologies Fin logic Technologies started in
2000. The idea then, was to
develop software applications to
support the growing financial
services distribution business and
manage the IT infrastructure. The
entire NJ Group's internal systems
and infrastructure is managed by
Fin logic. NJ Technologies now
seeks to leverage these in-house
skills &expertise to help other
businesses find solutions for their
business challenges.1

3.2 Organogram:

Figure 3.1: organization structure of NJ. India invest

3.3 Division and departments:
Figure 3.2 : N.J Indian Invest company department
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3.4 SWOT Analysis:

 STRENGHTHS
It is a dominant player in the Indian Mutual Funds distribution
business with over a decade of experience.
Company can also provide personal websites to its clients.
Company has Assets under Management (AUM) more than 25000
crores.
Company has tie up with all 44 AMC
It provides best services in the industry using cutting age of
technology.

WEAKNESES
It is dominant player in Mutual Fund industry but not in entire
financial product range like Insurance etc.
There are some complaints from customers side regarding irregular
dispatchment of commission.
In some cases, cant convince their clients about the helpfulness of
the services provided by the company.

OPPORTUNITY
Company has great opportunities in front of it as the Mutual fund
has not penetrated in the Indian financial market.
It can utilize the dominant position it has and optimally use the huge
network of its partners.

THREATS
Company facing competition from the new entrant like Motilal Oswal
Securities, Angel Broking Limited, Kotak Securities ltd, etc.
Company also faces competition from IFA who are doing direct
business in the AMC.
3.5 Market position:
NJ group is a leading player in the Indian financial services industry
known for its strong distribution capabilities. Started in 1994 in Surat
to canter to investor needs in the financial services industry, NJ
India invest is the flagship company of the group. The NJ Wealth
Financial Products Distributors network is among Indias largest,
most successful network of distribution in financial services industry.
It is one of the leading players in financial service industry in
Gujarat.

Literature review

De Bondt and Thaler (1985) investigated the possible

psychological basis for investor behavior; argue that mean revision
in stock prices is an evidence of investor over reaction where
investors overemphasize recent firm performance in forming future
expectations.

Sikidar and Singh (1996) carried out a survey with an objective to

understand the behavioural aspects of the investors of the North
Eastern region towards equity and mutual funds investment
portfolio. The survey revealed that the salaried and self employed
formed the major investors in mutual fund primarily due to tax
concessions. UTI and SBI schemes were popular in that part of the
country then and other funds had not proved to be a big hit during
the time when survey was done.

Lewellen, Lease and Schlarbaum (1994) conducted the research

on demographic basis i.e. age, gender, income and education
affects investor preferences for overall return, capital gain and
dividend yield. Barnewell (cited in Nagy and Obenberger, 1994)
finds that individual investor behavior can be predicted by
occupation, life style and risk aversion. Warren et al. founded that
individual investment choice based upon life style and demographic
attributes

Bondt and Thaler (1985) investigated the possible psychological

basis for investor behaviour, argue that mean reversion in stock
prices is an evidence of investor over reaction where investors over
emphasise recent firm performance in forming future expectations.

Robert, Nagy, Robert and Obenberger (1994) stated that

expected earnings and the conditions of financial statements are
highly important to investors. The authors have concluded that
classical wealth-maximization criteria are important to the investor,
Even though investors employ divers criteria when choosing stocks.
The recommendations of brokerage houses, individual stock
brokers, family members and co workers go largely un heeded.

Phillip (1995) found that there is a change in financial decision-

making and investor behavior as a result of participating in investor
education programmes sponsored by employees.

Ramesh Chander (2000) examined 34 mutual fund schemes with

reference to the three fund characteristics with 91-days treasury
bills rated as risk-free investment from January 1994 to December
1997. Returns based on NAV of many sample schemes were
superior and highly volatile compared to BSE SENSEX. Open-end
schemes outperformed close-end schemes in term of return.
Income funds outsmarted growth and balanced funds. Banks and
UTI sponsored schemes performed fairly well in relation to
sponsorship. Average annual return of sample schemes was 7.34
percent due to diversification and 4.1 percent due to stock
selectivity. The study revealed the poor market timing ability of
mutual fund investment. The researcher also identified that 12
factors explained majority of total variance in portfolio management
practices.

Borensztein, E. and Gelos, G. (2001) explores the behavior of

emerging market mutual funds using a novel database covering the
holdings of individual funds over the period January 1996 to March
1999. An examination of individual crises shows that, on an
average, funds withdrew money one month prior to the events. The
degree of herding among funds is statistically significant, but
moderate. Herding is more widespread among open-ended funds
than among closed-end funds, but 31 not more prevalent during
crisis than during tranquil times. Funds tend to follow momentum
strategies, selling past losers and buying past winners, but their
overall behavior is more complex than often suggested.
Gavin Quill (2001) examined the evidence that investor behavior is
frequently detrimental to the achievement of investors long-term
goals. The picture that emerges from this analysis is one of
investors who have lost a good portion of their potential returns
because of the excessive frequency and poor timing of their trading
activities. They established that investors trade much more than
they realize and much more than is conducive to the achievement of
their financial plans. Investors think long-term in theory, but act
according to short-term influences in practice. This excessive
turnover, combined with a propensity to buy relatively over-valued
investments and ignore relatively under-valued ones, has caused
the average mutual fund investor to underperform substantially over
the past decade.

Gupta Amitabh (2001) evaluated the performance of 73 selected

schemes with different investment objectives, both from the public
and private sector using Market Index and Fundex. NAV of both
close-end and open-end schemes from April 1994 to March 1999
were tested. They found that sample schemes were not adequately
diversified, risk and return of schemes were not in conformity with
their objectives, and there was no evidence of market timing abilities
of mutual fund industry in India. Karthikeyan (2001) conducted
research on Small Investors Perception on Post office Saving
Schemes and found that there was significant difference among the
four age groups, in the level of awareness for Kisan Vikas Patra
(KVP), National Savings Scheme (NSS), and Deposit Scheme for
Retired Employees (DSRE). The Overall Score confirmed 32 that
the level of awareness among investors in the old age group was
higher than in those of young age group. No differences were
observed among male and female investors.
Mostafa Soleimanzadeh (June 2006) in his article, Learn how to
invest in Mutual Funds discussed the risk and return in mutual
funds. He stated that the risk and return depend on each other, the
greater the risks, the higher the potential return; the lower the risk,
the lower the expected return. Mutual funds try to reduce their risk
by investing in a diversified group of individual stocks, bonds, or
other securities. He concluded that the investment in stocks can get
more return than mutual funds but by investing in mutual funds, the
risk is lower.

Ranganathan (2006) noted that financial markets are affected by

the financial behavior of investors. She observed that consumer
behavior from the marketing world and financial economics had
brought together a need to study an exciting area of behavioural
finance. This study was an attempt to examine the related aspects
of the fund selection behavior of individual investors towards mutual
funds in the city of Mumbai.

Kum Martin (October 2007) in his article, Basics about Mutual

Funds discussed about different types of mutual funds .He stated
that the equity funds involve just common stock investments. They
are extremely risky but can end up earning a lot of money. He
concluded that the low risk in investment will not earn a lot of
returns. Mutual fund managers have to use various investment
styles depending upon investors requirement. 35 Most of the
empirical evidences showed that mutual fund investors purchase
decision is influenced by past performance.

Kozup, John C., Elizabeth Howlett and Michael Pagano (2008)

explored whether a single page supplemental information disclosure
impacts investors fund evaluations and investment intentions.
Results indicated that while investors continue to place too much
emphasis on prior performance, the provision of supplemental
information, particularly in a graphical format, interacts with
performance and investment knowledge to influence perceptions
and evaluations of mutual funds.

Rao,D.N.and Rao, S. B. (2009) analyzed the performance of the 47

Balanced and 72 Income Funds in terms of Return, Risk, Return per
Risk and Sharpe ratio over the past three years (2006, 2007 and
2008) during which period the Indian Stock Market had witnessed
much volatility. Further, the performance of these funds was
compared with that of the Market and Benchmark Indices. The Null
Hypotheses were rejected leading to the acceptance of Alternate
Hypothesis in all the six cases, leading to conclude that Market
outperformed both the Balanced and Income Funds over Bull run
and 3-year periods while both the funds outperformed the Market
over Bear run period which confirms the popular belief of the
Investors and Fund Managers in India.

Reddy and Krishnudu (2009) in their study states that the

investment culture among the people of a country is an essential
prerequisite for capital formation and the faster growth of an
economy. Investment culture refers to the attitudes, perceptions,
and willingness of the individuals and institutions in placing their
savings in various financial assets, more popularly known as
securities. A study on the investors perceptions and preferences,
thus, assumes a greater significance in the formulation of policies
for the development and regulation of security markets in general
and protection and promotion of small and house-hold investors in
particular.

Ravinder and Abhijeet Chandra (2010) found that performance

ranking were rated the most preferred source of information for
individual mutual fund investors followed by recommendations by
experts. Other sources of information such as print media like
business magazines, and newspapers, electronic media like
business channels and internet, friends and family
recommendations, and seminars were respectively valued by
individual mutual fund investors. As far as selection criteria is
concerned, past performance of the fund was highly rated followed
by investment pattern, management fees charged by the fund
managers reputation.

Shanmugam and Ramya (2010) analysed that, personality traits

have greater impact on ones behavior. This research revealed that
internals have high correlation with investment knowledge and
successful investment behavior. Also it was found that investment
knowledge of internals is higher than that of individuals with external
locus of control. It was further found out that there is significant
difference in investment behavior amongst individuals with high and
low investment knowledge. Hence the study clearly shows that
internals with high investment knowledge show successful
investment behavior.

Rao (2011) study author presents mutual fund investor awareness

and adoption of different schemes with educational level. The
research findings showed that with increased level of education is
linked with greater risk tolerance.
Wang (2011) concluded that this study aims to understand younger
generations investing behavior in mutual funds in order to help
wealth advisors understand how better to work with younger
generations. his study reveals that knowledge, experience, and
income are important factors that influence younger generations
investing behavior in mutual funds. Moreover, gender emerges as
the most important factor that differentiates younger generations
investing behavior in mutual funds. The findings point out
challenges for younger womens wealth management, as they tend
to exhibit fewer investing behavior in mutual funds than their
counterparts do. Consistent with previous research on wealth
management among older generations, gender differences have
significant implications for wealth advisors. As a result, wealth
advisors should help younger women enhance their wealth
management and financial future by facilitating their acquisition of
necessary financial knowledge and experiences and their
involvement with their wealth management. Wealth advisors are
also urged to consider helping their clients manage their wealth by
being aware of gender-predicted differences in client situations.

Rakesh and Shrinivas (2013) studied on individual investment

behavior in mutual funds on 400 investors covering the categories
of Executive & Non-Executives and observed that 185 investors are
interested in investing in bank sponsored mutual funds because of
security and 126 investors are interested in investing in institutions
because of their returns, remaining 89 investors are interested in
investing in private sector & joint venture to maximize their returns
and to hedge against risk

Bihari and Raj (2013) found that commercial sources were

attracting and helping more consumers to take decision. At the
same time personal sources was also adding value to their decision
making process. Magazines, newspapers, film, advertisement,
display, demonstration, exhibition and colleagues play a vital role in
searching meaningful information.

RESEARCH METHODOLOGY

5.1. RESEARCH STATEMENT

 Analysis of Investors Behaviours towards investment in
Mutual fund in todays Volatile Market

5.2. RESEARCH OBJECTIVE

5.2.1. Primary objective
To study the pattern of investors for investing in Mutual funds in
todays market.
To know the Priority of Investment considering diversification, Return,
Liquidity, Tax benefit, Maturity of Investment.
To understand and analyse various reasons for investment in Mutual
Funds
To know the behaviour of investors regarding the volatile market.

5.3. RESEARCH DESIGN

Research design constitutes the blueprint for the collection,
measurement and analysis of data. Research design aids the
research in the allocation of the limit research by posing crucial
choices in methodology. Research design is the plan and structure
of investigation so conceived as to obtain answer to research
questions.
In research design, there are three types of studies: Exploratory
Study, Descriptive Study, and Causal Study.
Here in the study descriptive research design is used. Descriptive
study describe about Who, What, When, Where, How are the
questions for researcher to find their answers during the study.

5.4. SAMPLING
5.4.1. Sampling Method
 In the context of this project the survey, this is of independent
investor done by the non-probability convenient sampling method.
5.4.2. Sample Size
Total sample size is 200 is used for the research

5.5. Data Collection

For the data collection method primary as well as secondary data
collection method is used.
Primary data collection through the Questionnaires, Personal
interview and Telephonic interview are used.
Secondary data collection through the Websites, Newspaper,
Magazine and internal data of offices.

5.6. Limitation of the Study

This report is limited to research area of Surat city only.
This research has covered only 200 samples of the investors. It is
very small sample comparatively. So the analysis is base on this
sample which may not be reliable 100%.
This research report based on the primary survey and data are
collected through the questionnaire so the respondent are not give
information about their investment and income.

1. In which Investment Avenue do you prefer to Invest?

Table 6.1: Investment Avenue
prefer by investor Frequency Percent
 Mutual fund 195 97.5
Bank FDs 41 20.5
Public providence 32 16
fund [PPF]
Insurance sector 95 47.5
Stock market 150 75

Chart 6.1: Investment Avenue

Investment Avenue
Percent

97.5 75
47.5
20.5 16

Interpretation:

Out of 200 investors surveyed, majority of the investors have shown

preference for MFs. 98% investors invest in mutual fund. Second
majority of investment have preference to stock market.75%
investors invest in stock market. As far as Safety of Investment is
concerned, investors are willing to invest in bank FDs & PPF.Rest of
the investors who have shown High Risk Propensity either prefer
stock market route or insurance (ULIPs) for investment

2. What is your basic Purpose of Investment in mutual fund?

Table 6.2: basic Purpose of Investment in mutual fund

 Highly Less Not at
Factor Preferable Preferable Natural Preferable all

High Return 92.5 6 1.5 0 0

Tax Benefit 83.5 14 2.5 0 0

Wealth
57.5 35 6.5 0.5 0.5
Creation

Saving 38 48.5 12 1 0.5

Diversified
43 47.5 8 1 0.5
Risk

Chart 6.2: Wealth Creation

Wealth Creation

7% 1% 1%

35%
58%

Interpretation:
High Return to meet future contingencies has given the highest rank
by the investors. Besides it, expectation of tax benefits on
investment and wealth creation are also the basic purpose of
 investment by the investors. From the above chart clearly interpret
that investors are give the rank 1, 2 &3 mostly to the savings.

3. What is your expected return from all your investment?

Table 6.3: expected return from all your investment
Frequency Percent
5% to 10% 4 2
10% to 15% 36 18
15% to 20% 83 41.5
20% to 25% 61 30.5
>25% 16 8

Chart6.3: Expected Return

Expected Return
5% to 10% 10% to 15% 15% to 20% 20% to 25% >25%

8% 2%
18%

31%

42%

Interpretation:
Out of 200 investors surveyed, approx.41% investors expect 15% to
20% returns from their investment esp. in this volatile market.
Others 31% of the investors who have 5% to 10% return high risk
appetite expect returns around 20-25% 1investment. 8% of investor
has expected 10% to 15% Approx.
 4. In which category are you invested in mutual fund?
Table 6.4: category is you invested in mutual fund

Type of fund Frequency Percent

96.5
Equity fund 192
Debt fund 40 20
Balance fund 99 49.5
ELSS fund 153 76.5

Chart6.4: Category in Mutual Fund

Category in Mutual Fund

ELSS fund; 32%

Equity fund; 40%

Balance fund; 20% Debt fund; 8%

Interpretation:
Out of 200 respondents, 40% respondents are investing in equity
fund. While 32% are invest in ELSS fund. That is for the tax benefit.
20% respondents are investing in balance fund. Only 8%
respondents are investing in dept fund.
 5. Which category of the fund is preferred by you?
Table 6.5: category of the fund is preferred by investors
type of highly less not at all
fund preferable preferable neutral preferable preferable
Equity
91.5 7 1 0.5
fund 0
Debt fund 6 32.5 31.5 25 5
Balance
27.5 26 27.5 16 3
fund
Elss 67 20 6 4.5 2.5

Chart6.5: Category of the fund type

Category of the fund type

equity fund debt fund balance fund Elss
91.5
67

27.5 32.526 31.5

27.5
20 25
16
6 7 1 6 0.5 4.5 5 3 2.5

Interpretation:
In this chart it shows that most of the investor are highly prefer to
the Equity fund. While dept fund are comparatively less preferable
compare to Equity fund. ELSS fund are prefer by investor for the tax
saving purpose. 134 respondents are investing in ELSS fund. 55
respondents are investing in balance fund.
 6. Time Horizon of your investment in mutual fund (in general)?

Table 6.6: Time horizon invest in mutual fund

Frequency Percent

Long term (3-5 years or

174 87
>5 years)
Medium term (1-3
24 12
years)
Short term (<1 year) 2 1

Chart6.6: Time horizon invest in mutual fund

Time horizon invest in mutual fund

long term (3-5

years or >5 years)
12% 1%
medium term (1-3
years)
short term (<1
year)

87%

Interpretation:

From the chart it is clear that majority of the investors 87% have
taken a long-term view of the market. They are optimist about the
market to improve and want to stay invested in the expectation of
their investment to grow. Rests of the investors are having either
invested for medium term or for short term basically for speculative
motive.
 7. Which of the following attribute of investment is important to
you for investing in mutual fund?

Table 6.7: Attribute of Investment

strongly cant strongly
statement agree agree say disagree disagree
Diversification 83.5 15.5 0.5 0 0.5
Liquidity 74 21.5 4.5 0 0
Tax benefit 88.5 8.5 1.5 0.5 0.5
Convenience 58.5 31 9.5 0.5 0.5
Professional
44 47 6 2 1
expertise
27.5 59.5 12.5 0.5
Transparency 0
Fund type 12 49.5 34.5 1.5 2.5

Chart 6.7: Attribute of Investment

Attribute of Investment

Transparency; 7% Fund type; 3%

Diversification;
Professional expertise; 11% 22%

Convenience; 15% Liquidity; 19%

Tax benefit; 23%

Interpretation:
The most important factor consider while invest in MF is the tax.
The other factor which investor consider is fund type. 23% Investors
invest their money because they take to tax benefit in mutual fund.
While 22% Investors are invest their money because they take to
diversification in mutual fund.
8. Are you interested to Invest in a volatile market in mutual
funds?

Table 6.8: interested to Invest in a volatile market

Frequency Percent

Yes 186 93
No 14 7

Chart 6.8: Invest in a volatile market

yes No

7%

93%

Interpretation:
Out of 200 respondents, 93% investors are interested in investing in
volatile market. While only 7% of the investor are not interested to
invest in volatile market.
 9. Do you prefer Investment in Equity through direct market or
Mutual fund route in a Volatile market?

Table 6.9: prefer Investment in Equity through direct market or

Mutual fund route in a Volatile market
Frequency Percent

Direct market 7 3.5

Mutual fund 145 72.5
Both 48 24

Chart6.9: prefer Investment in Equity through direct market or

Mutual fund route in a Volatile market

prefer Investment in Equity through direct market or Mutual fund route in a Volatile market
80
70 72.5

60
50 Percent
40
30
24
20
10
3.5
0
Direct market Mutual fund Both

Interpretation:
Out of 200 respondent 72.5% are invest in Mutual fund. 24% are
investing in both mutual fund as well as direct market. While only
3.5 % of the investing in equity market.
 10. Do you prefer holding your money in a Volatile market?

Table 6.10: prefer to holding money

Frequency Percent Valid Percent

Yes 179 89.5 89.5

No 21 10.5 10.5
Total 200 100 100

Chart6.10: prefer to holding money

prefer to holding money

yes no

89.5 10.5
Percent

Interpretation:
Out of 200 respondent 89% of respondents are prefer holding
money in volatile market. While only 11% are not interested in
volatile market.
 11. For what purpose do you want to continue with your
investment in mutual fund?
Table 6.11: purpose of investment in Mutual Fund
highly less not at all
preferable preferable Neutral preferable preferable
Better return 81.5 7 1 0 0
Recovery your loss 9 27.5 6.5 27.5 18.5
To take long term
76 10 2.5 0.5 0
advantages
Regular income 15 14.5 8.5 11.5 39

Chart 6.11: purpose of investment in Mutual Fund

39
0
not at all preferable 18.5
0
11.5
less preferable 0.5 27.5
0
8.5
Neutral 2.5
6.5
1
14.5
preferable 10
27.5
7
15
highly preferable 76
9
81.5
0 10 20 30 40 50 60 70 80 90

better return recovery your loss

to take long term advantages regular income

Interpretation:
81% respondent are invest in mutual fund for better
return.76%respondent are holding their money because to take long
term advantage of holding. Only 15% respondents are investing for
the regular income. In that 9% respondent are holding their money
because to take recovery their loss.
12. For what purpose do you want to redeem?
 Table 6.12: Purpose of investors wants to redeem
Facto highly neutral less not at all
r preferable preferable preferable preferable
Minimizing risk 62 22 2 0.5 2.5
Avoid the
43.5 36.5 4 2.5 2.5
uncertainty
To take profit 68 16.5 1.5 0.5 2.5

Requirement 45 31 2 2 2

Chart6.12: Purpose of investors wants to redeem

Purpose of investors wants to redeem

Factor
highly preferable
2% 1% 3%
preferable
25% neutral
less preferable
70% not at all preferable

Interpretation:
62% respondents are redeemed in mutual fund for highly preferable
minimizing risk.44% respondents are redeemed to avoid the
uncertainty. 68% respondents are redeem their money because to
take profit. And 45% respondents are redeemed for the
requirement. In the above chart which says that majority of our
investor redeems their money because they are taking to 70%
highly preferable and 25% preferable money in the market.
13. Gender wise Analysis
Table 6.13: Gender
 Frequency Percent

Male 147 73.5

Female 53 26.5
Total 200 100

Chart6.13:Gender

Gender
male female

27%

74%

Interpretation:
From the above chart it shows that around 73% of total invest in
mutual fund are made by male in todays scenario every field can be
adopted by woman also & which indirectly indicates that you will
have to make more efforts to explain woman the value of return of
mutual fund for long term purpose.
 14. Age wise Analysis

Table6.14: Age
Frequency Percent
18-30 54 27
31-45 112 56
46-60 32 16
above 60 2 1
Total 200 100

Chart6.14: Age

Age

1% 18-30
16%
27% 31-45
46-60
above 60

56%

Interpretation:
In the above chart which says that majority of our investor is downer
age i.e. Below 31 to 46 years & then majority of them are
youngsters
 15. Occupation wise Analysis

Table6.15: Occupation
Frequency Percent

Business 98 49
Salaried 68 34
Professional 14 7
Student 15 7.5
Housewife 5 2.5

Chart6.15: Occupation

Occupation
Percent

housewife 2.5

student 7.5

professional 7

salaried 34

business 49

Interpretation:
From the above chart it can be clearly seen that 49% respondents
are businessmen. After that 34% respondents are salaried. 8%
student and 7% respondents are professional. 2.5% respondents
are only house wife.

16. Monthly individual income wise Analysis

Table6.16: Monthly individual income

 Frequency Percent

less than 15000 27 13.5

15000-30000 85 42.5
30000-50000 77 38.5
More than 50000 11 5.5

Chart6.16: Monthly individual income

Monthly individual income

Percent

42.5
38.5

13.5
5.5
less than 15000 15000-30000 30000-50000 more than 50000

Interpretation:
From the above chart it can be clearly seen that 43% respondents
annual income is between Rs 1, 50,000 Rs 3, 00,000. 38%
respondents annual income is between Rs 3, 00,000 Rs 5,
00,000.14% respondents annual income is less than 1, 50,000.
Only 6% of respondents annual income is more than Rs 5, 00,000.
 17. Education wise Analysis

Table6.17: Education
Frequency Percent

Under graduate 7 3.5

Graduate 84 42
Post graduate 109 54.5

Chart6.17: Education

Percent
Percent

post graduate 54.5

graduate 42

under graduate 3.5

Interpretation:
From the above chart it shows that 55% respondents are post
graduate .42% respondents are graduate. And only 4%
respondents are under graduate.
 Hypothesis

o Chi- squre test

Relationship between Age and Purpose of Investment in

mutual fund

1. Saving purpose:

H0: There is no significence difference between the Age and saving

of investment in mutual fund.
H1: There is significance difference between the Age and saving of
investment in mutual fund.

Table 6.18: Association between Age and Purpose of

Investment in mutual fund
Saving
Tota
l
not at all less highly
preferabl preferabl neutra preferabl preferabl
e e l e e
18-30
1 1 7 26 19 54

31-45 0 0 14 50 48 112
46-60 0 1 3 20 8 32
Ag
abov
e 0 0 0 1 1 2
e 60
Total 1 2 24 97 76 200
Chi-Square Tests

Asymp. Sig. (2-

Value df sided)
Pearson Chi-
10.115 12 .606
Square

Interpretation:
From the above table it can be seen that the significant value 0.606
which is higher than 0.05. It means null hypothesis is accepted.
Hence, it is significantly prove There is no association between the
Age and purpose of investment in mutual fund.

2.tax benefit:

H0: There is no significence difference between the Age and tax

benefit taken by the investors.
H1: There is significance difference between the Age and tax
benefit taken by the investors.

Table 6.19: Association between Age and Purpose of

Investment in mutual fund

tax benefit
highly
Total
Neutral preferable preferable
18-30 1 5 48 54
31-45 3 15 94 112
46-60 1 7 24 32
Age above 60 0 1 1 2
Total 5 28 167 200

Chi-Square Tests
Asymp.
Sig. (2-
Value df sided)
Pearson Chi-
0.5106 6 .530
Square
Interpretation:
From the above table it can be seen that the significant value 0.530
which is higher than 0.05. It means null hypothesis is accepted.
Hence, it is significantly prove that There is no significance
difference between the Age and tax benefit taken by the investors.
 Relationship between education and investment in volatile
market of mutual fund

H0: There is no significant difference between education and interest

level of investor to invest in volatile market of mutual fund.

H1: There is significant difference between education and interest

level of investor to invest in volatile market of mutual fund

Table6.20 Education * are you interested to invest in a volatile

market in mutual funds
Are you interested to invest in
a volatile market in mutual Total
funds?
Yes no
under
6 1 7
graduate
Graduate 74 10 84
Education
post
106 3 109
graduate
Total 186 14 200

Chi-Square Tests

Asymp. Sig. (2-

Value df sided)
Pearson Chi-
6.696a 2 .035
Square

Interpretation:
From the above table it can be seen that the significant value 0. 035
which are less than 0.5. It means null hypothesis is rejected. Hence,
it is significantly prove that there is any relationship between
 education and interest level of investor to invest in volatile market
mutual fund.

Relationship between investment in mutual fund and better

return from the mutual fund
 H0: There is no significant difference between investment in mutual
fund and better return.
H1: There is significant difference between investment in mutual
fund and better return.

Table6.22: Better return * are you interested to invest in a

volatile market in mutual funds? Cross tabulation

Are you interested to invest

in a volatile market in mutual
funds? Total
Yes no
Better return neutral 2 0 2
preferable 14 0 14
highly
157 6 163
preferable
Total 173 6 179

Chi-Square Tests

Asymp. Sig. (2-

Value Df sided)
Pearson Chi-
.609a 2 .737
Square

Interpretation:
From the above table it can be seen that the significant value 0.737
which is higher than 0.05. It means null hypothesis is accepted.
Hence, it is significantly prove that There is no significant difference
between investment in mutual fund and better return.
 Relationship between Diversification and time horizon of
investors investment in mutual fund.

H0: There is no significant difference between diversification and

time horizon of investors investment in mutual fund.
H1: There is significant difference between diversification and time
horizon of investors investment in mutual fund.

Table 6.23: Diversification * time horizon of your investment in mutual fund

(in general)

Time horizon of your investment in

mutual fund (in general)?
long term Total
(3-5 years medium short
or >5 term (1-3 term (<1
years) years) year)
strongly
1 0 0 1
disagree
cant say 1 0 0 1

Diversification Agree 28 3 0 31
strongly
145 20 2 167
agree
Total 175 23 2 200

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-
Square .820a 6 .992
Interpretation:
From the above table it can be seen that the significant value 0.992
which is higher than 0.05. It means null hypothesis is accepted.
Hence, it is significantly prove that There is no significant
relationship between diversification and time horizon of investors
investment in mutual fund.
 Relationship between occupation and important of tax benefit
taken by the investor

H0: There is no significant difference between tax benefit important

to the investor and occupation of the investors.
H1: There is significant difference between tax benefit important to
the investor and occupation of the investors.

Table 6.24: Occupation * tax benefit Cross tabulation

tax benefit

strongly cant strongly Total

disagree disagree say agree agree
Business
0 0 3 10 85 98
Salaried
1 1 0 3 63 68
professional
0 0 0 1 13 14
occupation
Student
0 0 0 2 13 15
housewife
0 0 0 1 4 5
Total
1 1 3 17 178 200

Chi-Square Tests
 Asymp. Sig. (2-
Value Df sided)

Pearson Chi-Square 10.133a 16 .860

Interpretation:
From the above table it can be seen that the significant value 0.860
which is higher than 0.05. It means null hypothesis is accepted.
Hence, it is significantly prove that There is no significant
relationship between tax benefit important to the investor and
occupation of the investors.
 Relationship between occupation and liquidity important to the
investor.

H0: There is no significant difference between liquidity important to

the investor and occupation of the investors.
H1: There is significant difference between liquidity important to the
investor and occupation of the investors.

Table6.25: Occupation * liquidity Cross tabulation

Liquidity Total
strongly
cant say agree agree
Occupation Business 2 26 70 98
Salaried 5 12 51 68
professional 0 4 10 14
Student 2 1 12 15
housewife 0 0 5 5
Total 9 43 148 200

Chi-Square Tests

Asymp. Sig. (2-

Value Df sided)

Pearson Chi- 11.201a 8 .191

Square

Interpretation:
From the above table it can be seen that the significant value 0.191
which is lower than 0.05. It means null hypothesis is rejected.
Hence, it is significantly prove that There is no significant
relationship between tax benefit important to the investor and
occupation of the investors.
 Finding

The Following findings are revealed at the time of analyzing the

data.

Mutual fund industry has been increased 39000 crore to 1200000

crore from the 2013 to 2015.

In countries 44 fund houses of mutual funds AUM was last year

was 11.88 lakh.

This is currently 12.27 lakh current financial years. still many mutual
fund houses does not declared the amount, but if that amount is
declared there are also chances that asset base will increase.

Ahmedabad emerged as the largest investor in mutual funds from

Gujarat. The city has a total investment of Rs28, 755 crore or 62%
of total AUM. It is followed by Vadodara (Rs4, 917 crore), Surat
(Rs4, 347 crore) and Rajkot (Rs1, 996 crore) as on September
2013.

Other than four large cities of Gujarat, 10 small towns from Gujarat
also featured in the top-100 list of highest investment in mutual fund
as compiled by the AMFI. Except Sutra and Jamnagar where AUMs
have declined showing redemption by investors, all other cities have
shown a steady increase in AUM between 2011 and 2013.
 Finding of Chi-Square

No. Null Hypothesis Result Interpretation

1. There is no significence 0. .606 H0 is accepted. In the age
difference between the Age and group of 31-45, 50 investors
saving of investment in mutual are preferred to holding
fund. money in mutual fund
because of the saving
purpose.

2. There is no significence 0.530 H0 is accepted. In the age of

difference between the Age and 31-45, 94 investors are
tax benefit taken by the highly preferred to holding
investors. money in mutual fund
because of the tax benefit.

3. There is no significant difference 0.035 H0 is rejected..

between education and interest
level of investor to invest in
volatile market mutual fund.

4. There is no significant difference 0.737 H0 is accepted. 157

between investment in mutual investors are investing in
fund and better return. mutual fund for the basic
purpose of better return.

5. There is no significant 0.992 H0 is accepted. 145

difference between investors are strongly agree
diversification and time that in long term the
horizon of investors diversification help for the
investment in mutual fund. better return.
6. There is no significant 0.860 H0 is accepted.85
relationship between tax businessmen strongly agree
benefit important to the that they are investing in
investor and occupation of mutual fund for the tax
the investors. benefit.

7. There is no significant 0.191 H0 is rejected. There is

difference between liquidity significant relation
important to the investor between liquidity
and occupation of the important to the
investors. investor and occupation
of the investors.

As far as investment is concerned, 98% out of 200 investors have

preferred Mutual funds. Safety of Investment is also the criteria
which investors have given due importance; as such, 20% of the
investors have preferred Bank Fixed Deposits as the safest mode to
invest.

Out of 200 investors, 87% of them have invested their money for a
long-term, i.e., for 3-5 years or >5years of time period. Rest which
account for 12% of the investors has either invested for 1-3 yrs and
1% of investor has invest for <1 year basically for speculative
motive.

Out of 200 respondent 89% of respondents are prefer holding money

in volatile market. While only 11% are not interested in volatile
market.

81% respondent are invest in mutual fund for better

return.76%respondent are holding their money because to take long
term advantage of holding. Only 15% respondents are investing for
the regular income. In that 9% respondent are holding their money
because to take recovery their loss.
 62% respondents are redeemed in mutual fund for highly preferable
minimizing risk.44% respondents are redeemed to avoid the
uncertainty. 68% respondents are redeem their money because to
take profit. And 45% respondents are redeemed for the
requirement. In the above chart which says that majority of our
investor redeems their money because they are taking to 70%
highly preferable and 25% preferable money in the market.

From the above chart it shows that around 73% of total invest in
mutual fund are made by male in todays scenario every field can be
adopted by woman also & which indirectly indicates that you will
have to make more efforts to explain woman the value of return of
mutual fund for long term purpose.

In the above chart which says that majority of our investor is downer
age i.e. Below 31 to 46 years & then majority of them are
youngsters.

From the above chart it can be clearly seen that 49% respondents
are businessmen. After that 34% respondents are salaried. 8%
student and 7% respondents are professional. 2.5% respondents
are only house wife.

From the above chart it can be clearly seen that 43% respondents
annual income is between Rs 1, 50,000 Rs 3, 00,000. 38%
respondents annual income is between Rs 3, 00,000 Rs 5,
00,000.14% respondents annual income is less than 1, 50,000.
Only 6% of respondents annual income is more than Rs 5, 00,000.

From the above chart it shows that 55% respondents are post
graduate .42% respondents are graduate. And only 4%
respondents are under graduate.
Conclusion

It has been concluded that the mutual fund industry growth is more.
So that there is more business scope is there. Mutual Fund as an
investment avenue is advantage to the investor in the long term for the
growth purpose. It is because Mutual Fund is an investment avenue that
gives the highest return in future i.e. Long term investment rather than
short term investment. Also it has been concluded that the IT department
of NJ India Invest provide online access to their clients whom they
perceive as more useful services provided to them. In terms of saving
time, as they can access client desk by just entering their id and password.
After that they can receive details such as transactions that take place. It
has been concluded that the financial tools that are provided by NJ is very
much useful for an advisor in proper goal planning.

Most of the investors have invested in mutual funds over and above
other investment options available to them. In the face of volatile market,
however, investors have preferred Bank Fixed Deposits, as they want
safety of their money even if they are getting fewer returns as compared to
mutual funds or other plans.

Most of investors either invest to get high returns or to grow their

wealth or to take tax benefit by investing in tax saver plans. Investors are
well aware about the concept of mutual funds and prefer Equity funds for
investment due to its diversified nature and the returns it has generated in
the long-term.

Investors have shown High Return Propensity and are willing to

take the plunge despite the volatility in the market. As mentioned above, it
becomes quite difficult to approach investors in this volatile market due to
the uncertainty in the movement of the market.

In short, Investors want to invest with wisdom. For them the

avenues that provide them Safety and Diversified the Risk at the same
time, is the appropriate criteria to invest in the volatile market.
Recommendation:
It is recommended that now a days investors should invest in
mutual fund volatile market because within the few days few of
mutual fund schemes are coming up with huge quality.

It has been suggested to NJ that Mutual Fund is more beneficial

than other investment avenues for investors. They need to realize
this to the clients and increase their AUM (assets under
management) as well as Investment Basket.

It has been suggested that With the help of Give more importance
to safety and return attributes because Independent Financial
Advisors are more concern about safety and of giving more benefit
of the investments to their clients.

It has been suggested to company that who are not suggesting their
clients to invest in mutual funds due to their lack of knowledge of
mutual funds. So, NJ India Invest should arrange mutual fund
awareness Program of their and other independent Financial
Advisors on regular basis.

By providing better service NJ India Invest should try to attract the

Independent Financial Advisors to join with them.

It has suggested to NJ India Invest Company that they should

arrange special mutual fund awareness program for general public.
So they can directly work with NJ India Invest as direct client.

It has been suggested that the Majority of the investor take into
consideration tax benefits before making any investment. So NJ
India Invest should highlight tax benefits in mutual funds.
It has been suggested to the NJ India Invest company should
launch its brand awareness campaign to be successful in Mutual
fund advisory service provider.

It has been suggested to the NJ India invest company that should

also concentrate on youngster who are interested in savings so
make them aware about different schemes for investment and
arrange seminars for college going students, by this company gets
more customers connected for long period Put hoardings outside
the colleges making NJ INDIA known to them and try to attract
them.
Bibliography
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QUESTIONNAIRE
 I, Bhatt Ishani currently pursuing MBA from S. R. Luthra Institute of
Management affiliated to Gujarat Technological University. As a part
of my curriculum I am conducting a survey on Analysis of
Investors behavior toward investment in Mutual Fund in
todays volatile market. I request you to kindly spare few minutes
out of your very demanding schedule to fill up this questionnaire. I
assure you that the views given by you will be kept strictly
confidential and will be used for academic purpose only.

1. In which Investment Avenue do you prefer to Invest?

Statement Yes No
Mutual fund
Bank FDs.
Public Providence
Fund [PPF]
Insurance sector
Stock market

Others [specify].

2. What is your basic Purpose of Investment in mutual fund?

(5=highly preferable, 4=preferable, 3=natural, 2=less
preferable, 1=not at all preferable.)
Factor 5 4 3 2 1
High Return
Tax Benefit
Wealth creation
Saving
Diversified Risk

3. What is your expected return from all your investment?

a. 5% to 10%
b. 10% to 15%
c. 15% to 20%
d. 20% to 25%
e. > 25%

4. In which category are you invested in mutual fund?

 Statement Yes No
Equity fund
Debt fund
Balance fund
ELSS

5. Which category of the fund is preferred by you? (5=highly

preferable, 4=preferable, 3=natural, 2=less preferable, 1=not at
all preferable.)

Ty 5 4 3 2 1
pe
of
fu
nd
Eq
uit
y
fu
nd
De
bt
fu
nd
Ba
la
nc
e
fu
nd
EL
S
S
 6. Time Horizon of your investment in mutual fund (in general)?
a. Long term (3-5 years or >5 years)
b. Medium Term (1-3 years)
c. Short term (<1 year)

7. Which of the following attribute f investment is important to

you for Investing in mutual fund?
(5=strongly agree, 4=agree, 3=cant say, 2=disagree, 1=strongly disagree.)
Statement 5 4 3 2 1

Diversification
Liquidity
Tax benefit
Convenience
Professional expertise
Transparency

8. Are you interested to Invest in a volatile market in mutual

funds?
a. Yes b. No

9. Do you prefer Investment in Equity through direct market or

Mutual fund route in a Volatile market?

a. Direct Market b. Mutual Funds c. Both

10. Do you prefer holding your money in a Volatile market?

a. Yes b. No

[If Yes Q-11, Q-12]

11. For what purpose do you want to continue with your
investment in mutual fund? (5=highly preferable, 4=preferable,
3=natural, 2=less preferable, 1=not at all preferable.)
 Factor 5 4 3 2 1
Better return
Recover your loss
To take Long term Advantage
Regular income
Other

12. For what purpose do you want to redeem? (5=highly

preferable, 4=preferable, 3=natural, 2=less preferable, 1=not at
all preferable.)

Factor 5 4 3 2 1
Minimizing risk
Avoid the uncertainty
To take profit
Requirement
Other

Personal Information
Name: - Gender: -
Male female
Mobile no.:-
Age: - 18-30 31-45
46-60 Above 60
Occupation: - Business Salaried
Professional Retried
 Student Housewife

Monthly individual Income (in Rs):-

Less than 15000 15000-30000 30000-50000
more than 50000
Education: - under graduate Graduate Post graduate
THANK YOU