A PROJECT REPORT

ON
UNDESTANDING BUYING BEHAVIOUR FOR
MUTUAL FUNDS
AT
RELIANCE MONEY INDORE
BY
NIRMIT VYAS
2312267
23
nd
Bat!
IN PARTIAL FULFILLMENT OF
P"#t G$ad%at& P$"'$a( )PGP*
)2++6 , 2++-*
M.A.E.E.R/# MIT SCHOOL OF BUSINESS
S$0. N". 1212 Pa%d R"ad2 3"t!$%d2
PUNE4 111+3-
CERTIFICATE OF THE COMPANY
TO BE GIVEN BY THE CONCERNED AUTHORITY IN THE ORGANISATION
5HERE YOU HAVE DONE YOUR SUMMER TRAINING )ON COMPANY
LETTER HEAD* AND SIGNED BY THE COMPANY PROJECT GUIDE
2
CERTIFICATE OF THE INSTITUTE )MITSOB* ON MITSOB LETTERHEAD
5ITH CONTENTS AS UNDER.
CERTIFICATE
This is to certify that Mr. / Miss
of MAEERs MIT Schoo of B!si"ess has s!ccessf!y co#$ete% the $ro&ect
'or( tite% i" $artia
f!fi#e"t of re)!ire#e"t for the a'ar% of P"#t G$ad%at& P$"'$a( )PGP* $rescri*e%
*y the MIT S!""6 "7 B%#8n&##
This $ro&ect is the recor% of a!the"tic 'or( carrie% o!t %!ri"+ the aca%e#ic year
2,,- . 2,,/.
RAJENDRA BARTA33E
I"ter"a Pro&ect 0!i%e 1irector
2
DECLARATION )TO BE SIGNED BY THE STUDENT ON PLAIN PAPER , A 1*
DECLARATION
I3 Mr / Ms444444444444444444444444444444444 here*y %ecare that this $ro&ect is the
recor% of a!the"tic 'or( carrie% o!t *y #e %!ri"+ the aca%e#ic year 2,,- . 2,,/ a"% has
"ot *ee" s!*#itte% to a"y other U"i5ersity or I"stit!te to'ar%s the a'ar% of a"y %e+ree.
S8'nat%$& "7 t!& #t%d&nt
)Na(& "7 t!& St%d&nt t" 9& :$8tt&n !&$&*
F"nt T;<&4 T8(&# N&: R"(an
F"nt S8=&4 12
S<a8n'4 1.> 68n&#
AC3NO5LEDGEMENT
6
I ta(e this o$$ort!"ity to ac("o'e%+e +ratef!y i" "o !"certai" ter#s3 the $atro"a+e a"%
!"reser5e% s!$$ort e7te"%e% to #e *y the #a"a+e#e"t of Reia"ce Mo"ey3 I"%ore. I a#
hi+hy i"%e*te% to the e"ar+e#e"t a"% coo$eratio" e7te"%e% to #e *y the 5ario!s
#e#*ers of the e7ec!ti5e staff i" this co""ectio".
I recor% #y si"cere tha"(s a"% %e*t of +ratit!%e to Mr. Rit!ra& 8ha!ha" 9Re+io"a
Ma"a+er: for +i5i"+ #e this o$$ort!"ity to !"%er+o s!##er i"ter"shi$ i" their estee#e%
or+a"i;atio". I tha"( Mr. Mohit 0!$ta 98e"tre Ma"a+er a"% o!r Pro&ect 0!i%e: a"% M r.
<i(as Shri5asta5a 98e"tre Ma"a+er: 'ho he$e% #e i" #a(i"+ #y $ro&ect as 'e as i"
the office 'or(. They $ro5i%e% 5ery frie"%y a"% co"5i"e"t e"5iro"#e"t to %o o!r 'or(
o5er there a"% he$e% #e to the $ro&ect to +reat e7te"t. I o'" #y s$ecia tha"(s to Mr.
Shra5a" 0!$ta 9B1E: for his e7te"%e% +!i%a"ce3 co##e"ts a"% fro# the 5ery first %ay
he$e% #e i" %oi"+ #y $ro&ect $re$aratio"= Mr. Bh!$e"%ra Misra 9B1E: aso +!i%e% #e
i" #y >!estio""aire.
It is #y $easa"t %!ty to e7$ress #y $rofo!"% +ratit!%e to #y SIP 8oor%i"ator3 Mr
Ra&e"%ra *arta((e MITSOB for his s!$$ort a"% e"co!ra+e#e"t %!ri"+ 'hoe
of #y S!##er I"ter"shi$ Pro+ra# as a $ro&ect +!i%e
I aso tha"( Miss Sh'eta 0os'a#i 98SE: o5er Reia"ce Mo"ey 'ho ta!+ht #e the *ac(
office 'or( a"% Miss N!;arat 'ho he$e% #e i" #y s!r5ey.
Nir#it <yas
?
ABSTRA8T
This $ro&ect $ro5i%es i"@%e$th co5era+e3 a"aysis a"% +!i%a"ce o" *!yi"+ %ecisio"
#a(i"+ $rocess of #!t!a f!"% i"5estors a"% factors affecti"+ it. B!yer %ecisio"
$rocesses are the %ecisio" #a(i"+ $rocesses !"%erta(e" *y co"s!#ers i" re+ar% to a
$ote"tia #ar(et tra"sactio" *efore3 %!ri"+3 a"% after the $!rchases of a $ro%!ct or
ser5ice. There are #a"y factors affecti"+ the *!yi"+ %ecisio" #a(i"+ $rocess of M!t!a
F!"% i"5est#e"ts. The $ro&ect s!r5ey 'as co"%!cte% 'ith sa#$e si;e of 2?, c!sto#ers.
>!estio""aire 'as $re$are% a"% fo!r sche#es 'ere ta(e" for the s!r5ey to reach the
fi"%i"+s. They are E)!ity 1i5ersifie% F!"%s3 E)!ity Li"(e% Sa5i"+ Sche#es3 Mo"ey
I"co#e Pa"s3 a"% Baa"ce% Sche#es.
Seco"%ary %ata 'as aso coecte% fro# %iffere"t *oo(s3 &o!r"as3 #a+a;i"es. O"i"e
research o" 5ario!s 'e*sites 'as aso %o"e. Se5era factors 'ere i%e"tifie% *y
co"%!cti"+ a research. Thro!+h the research3 5ario!s fi"%i"+s ca#e o!t of the s!r5ey
a*o!t their choices o" i"5est#e"t o$tio"s3 AM8s3 F!"%s3 Sche#es a"% #o%es of
i"5est#e"ts.
This st!%y 'i %efi"itey he$ %iffere"t AM8s for their f!"% st!%y of c!sto#ers *eha5ior
a"% to i#$ro5e their $erfor#a"ce i" the area i" 'hich they are 'ea( a"% 'i he$ to the
f!t!re *!yers of #!t!a f!"%s.
-
TABLE OF CONTENTS
SR
NO
TOPIC PA0E NO
A
INTRODUCTORY CHAPTER
A.A Theoretica Bac(+ro!"%
/@22
A.2 O*&ecti5es of the $ro&ect
26
A.2 Sco$e
2-
A.6 Profie of the or+a"i;atio"
2?@2/
2
PROBE8T 1ESI0N
2.A Metho%oo+y
2C
2.2 B!yi"+ *eha5ior $rocess
2,@22
2.2 S!r5ey D )!estio"air
26@6,
2.6 Li#itatio"s
6A
2
P$"?&t ana6;#8# @ 78nd8n'#
62@?A
6
C"n6%#8"n# and R&"((&ndat8"n#
?2@?6
?
B8968"'$a<!;
??@?-
E
M%t%a6 F%nd# Ind%#t$; 8n Ind8a
F8$#t P!a#& A 1B61A-7
U"it Tr!st of I"%ia 9UTI: 'as esta*ishe% o" AC-2 *y a" Act of Paria#e"t. It 'as set !$
*y the Reser5e Ba"( of I"%ia a"% f!"ctio"e% !"%er the Re+!atory a"% a%#i"istrati5e
co"tro of the Reser5e Ba"( of I"%ia. I" ACE/ UTI 'as %e@i"(e% fro# the RBI a"% the
I"%!stria 1e5eo$#e"t Ba"( of I"%ia 9I1BI: too( o5er the re+!atory a"% a%#i"istrati5e
co"tro i" $ace of RBI. The first sche#e a!"che% *y UTI 'as U"it Sche#e AC-6. At the
e"% of AC// UTI ha% Rs.-3E,, crores of assets !"%er #a"a+e#e"t.
S&"nd P!a#& A 1B-7A1BB3 )Ent$; "7 P%968 S&t"$ F%nd#*
E"try of "o"@UTI #!t!a f!"%s. SBI M!t!a F!"% 'as the first foo'e% *y 8a"*a"(
M!t!a F!"% 91ec /E:3 P!"&a* Natio"a Ba"( M!t!a F!"% 9A!+ /C:3 I"%ia" Ba"(
M!t!a F!"% 9No5 /C:3 Ba"( of I"%ia 9B!" C,:3 Ba"( of Baro%a M!t!a F!"% 9Oct C2:.
LI8 i" AC/C a"% 0I8 i" ACC,. The e"% of ACC2 #ar(e% Rs.6E3,,6 as assets !"%er
#a"a+e#e"t.
T!8$d P!a#& A 1BB3A2++3 )Ent$; "7 P$80at& S&t"$ F%nd#*
Fith the e"try of $ri5ate sector f!"%s i" ACC23 a "e' era starte% i" the I"%ia" #!t!a f!"%
i"%!stry3 +i5i"+ the I"%ia" i"5estors a 'i%er choice of f!"% fa#iies. Aso3 ACC2 'as the
year i" 'hich the first M!t!a F!"% Re+!atio"s ca#e i"to *ei"+3 !"%er 'hich a #!t!a
f!"%s3 e7ce$t UTI 'ere to *e re+istere% a"% +o5er"e%. The erst'hie Gothari Pio"eer
9"o' #er+e% 'ith Fra"(i" Te#$eto": 'as the first $ri5ate sector #!t!a f!"% re+istere%
i" B!y ACC2.
/
The ACC2 SEBI 9M!t!a F!"%: Re+!atio"s 'ere s!*stit!te% *y a #ore co#$rehe"si5e
a"% re5ise% M!t!a F!"% Re+!atio"s i" ACC-. The i"%!stry "o' f!"ctio"s !"%er the
SEBI 9M!t!a F!"%: Re+!atio"s ACC-.
The "!#*er of #!t!a f!"% ho!ses 'e"t o" i"creasi"+3 'ith #a"y forei+" #!t!a f!"%s
setti"+ !$ f!"%s i" I"%ia a"% aso the i"%!stry has 'it"esse% se5era #er+ers a"%
ac)!isitio"s. As at the e"% of Ba"!ary 2,,23 there 'ere 22 #!t!a f!"%s 'ith tota assets
of Rs. A32A3/,? crores. The U"it Tr!st of I"%ia 'ith Rs.663?6A crores of assets !"%er
#a"a+e#e"t 'as 'ay ahea% of other UTI M!t!a F!"%3 co"for#i"+ to the SEBI M!t!a
F!"% Re+!atio"s3 a"% 'ith rece"t #er+ers ta(i"+ $ace a#o"+ %iffere"t $ri5ate sector
f!"%s3 the #!t!a f!"% i"%!stry has e"tere% its c!rre"t $hase of co"soi%atio" a"% +ro'th.
As at the e"% of Se$te#*er3 2,,63 there 'ere 2C f!"%s3 'hich #a"a+e assets of
Rs.A?2A,/ crores !"%er 62A sche#es.
F"%$t! P!a#& A #8n& F&9$%a$; 2++3
This $hase ha% *itter e7$erie"ce for UTI. It 'as *if!rcate% i"to t'o se$arate e"tities. O"e
is the S$ecifie% U"%erta(i"+ of the U"it Tr!st of I"%ia 'ith AUM of Rs.2C3/2? crores 9as
o" Ba"!ary 2,,2:. The S$ecifie% U"%erta(i"+ of U"it Tr!st of I"%ia3 f!"ctio"i"+ !"%er a"
a%#i"istrator a"% !"%er the r!es fra#e% *y 0o5er"#e"t of I"%ia a"% %oes "ot co#e
!"%er the $!r5ie' of the M!t!a F!"% Re+!atio"s.
The seco"% is the UTI M!t!a F!"% Lt%3 s$o"sore% *y SBI3 PNB3 BOB a"% LI8. It is
re+istere% 'ith SEBI a"% f!"ctio"s !"%er the M!t!a F!"% Re+!atio"s. Fith the
*if!rcatio" of the erst'hie UTI 'hich ha% i" March 2,,, #ore tha" Rs.E-3,,, crores of
AUM a"% 'ith the setti"+ !$ of a The ori+i" of #!t!a f!"% i"%!stry i" I"%ia is 'ith the
i"tro%!ctio" of the co"ce$t of #!t!a f!"% *y UTI i" the year AC-2. Tho!+h the +ro'th
'as so'3 *!t it acceerate% fro# the year AC/E 'he" "o"@UTI $ayers e"tere% the
i"%!stry.
C
I" the $ast %eca%e3 I"%ia" #!t!a f!"% i"%!stry ha% see" a %ra#atic i#$or5e#e"ts3 *oth
)!aity'ise as 'e as )!a"tity'ise. Before3 the #o"o$oy of the #ar(et ha% see" a"
e"%i"+ $hase3 the Assets U"%er Ma"a+e#e"t 9AUM: 'as Rs. -E*". The $ri5ate sector
e"try to the f!"% fa#iy rose the AUM to Rs. 6E, *" i" March ACC2 a"% ti A$ri 2,,63 it
reache% the hei+ht of A3?6, *".
P!tti"+ the AUM of the I"%ia" M!t!a F!"%s I"%!stry i"to co#$ariso"3 the tota of it is
ess tha" the %e$osits of SBI ao"e3 co"stit!te ess tha" AAH of the tota %e$osits he% *y
the I"%ia" *a"(i"+ i"%!stry.
The #ai" reaso" of its $oor +ro'th is that the #!t!a f!"% i"%!stry i" I"%ia is "e' i" the
co!"try. Lar+e sectio"s of I"%ia" i"5estors are yet to *e i"teect!ate% 'ith the co"ce$t.
Ie"ce3 it is the $ri#e res$o"si*iity of a #!t!a f!"% co#$a"ies3 to #ar(et the $ro%!ct
correcty a*reast of sei"+
A,
GRO5TH IN ASSETS UNDER MANAGEMENT
. V8&:8n' T!& M%t%a6 F%nd Ind%#t$; In T!& R8'!t P&$#<&t80&
The #!t!a f!"% i"%!stry is a fast +ro'i"+ se+#e"t of the I"%ia" Fi"a"cia Mar(et a"% it
$ro5i%es a 5ariety of sche#es to s!it the "ee%s a"% ris( ret!r" $rofie of %iffere"t
cate+ories of i"5estors 'ho are (e$t co#$etey i"for#e% re+!ary thro!+h $erio%ica
re$orts a"% stat!tory %iscos!res.
AMFI as the !#*rea *o%y of the #!t!a f!"% i"%!stry 'hich has U"it Tr!st of I"%ia a"%
a the #!t!a f!"%s as its #e#*ers 'o!% i(e to reiterate that i"5estors i" #!t!a f!"%
AA
sche#es sho!% "ot *e i"f!e"ce% #!ch ess +!i%e% *y a"y #is$ace% a"% $ate"ty 'ro"+
$ro$a+a"%a *ei"+ carrie% o!t i" so#e )!arters.
5!; M%t%a6 F%nd#C
The *i++est a%5a"ta+e of i"5esti"+ i" MFs is that #o"ey is s$rea% across sec!rities a"%
co#$a"ies3 %e$e"%i"+ !$o" the sche#es i"5est#e"t o*&ecti5e. This %i5ersifie% e7$os!re
he$s re%!ces ris( of oss fro# set*ac(s i" o"e co#$a"y or sector. For i"sta"ce3 a +ro'th
orie"te% MF i"5ests i" 5ario!s sectors@ $har#ace!ticas3 co"s!#er %!ra*es3 a"%
i"frastr!ct!re@ a"% 'ithi" the# i" 5ario!s co#$a"ies.
Si#iary3 a %e*t f!"% i"5ests i" %e*e"t!res of co#$a"ies3 +o5er"#e"t *o"%s or short
ter# i"5est#e"ts s!ch as co##ercia $a$ers3 certificates of %e$osit a"% ca #o"ey.
Fithi" the#3 the *o"% f!"% 'o!% f!rther %i5ersify across *o"%s of %iffere"t #at!rities
a"% cre%it rati"+s.
Io'e5er3 the fact that a f!"% has a %i5ersifie% $ortfoio %oes "ot $rotect i"5estor fro# a"
o5era %eci"e #ar(et. It #erey a*sor*s so#e of the shoc(s of shar$ %eci"e. Most MFs
e#$oyee trai"e% i"5est#e"t $rofessio"as 'ho a"ayse the fi"a"cia e"5iro"#e"t to oo(
o!t for short a"% o"+@ter# o$$ort!"ities to #a(e the #ost of the #o"ey i"5este% i" the
f!"%.
MFs aso offer 5ario!s ta7 a%5a"ta+es s!ch as ta7 free %i5i%e"%s.
S#a i"5est#e"tsJ if yo! 'ere to %irecty i"5ests i" shares of *!e@chi$ co#$a"ies or i"
+its 9ce"tra +o5er"#e"t sec!rities3 yo!r #i"i#!# i"5est#e"t 'o!% "ecessariy *e i"
fi5e fi+!res3 too hi+h for s#a i"5estors. O" the other ha"% the #i"i#!# i"5est#e"t
re)!ire#e"t i" #a"y MFs is as o' as Rs A3,,,3 'hich e"s!res that a#ost a"yo"e ca"
+et starte%. S!ch $a"s as the Syste#atic I"5est#e"t Pa" 'o!% ao' i"5estors to $!t i"
s#a a#o!"t re+!ary.
A2
A share of the $rofits/ossesJ if the f!"% yo! i"5este% is a$$reciates3 yo! +et a share of the
$rofits= *!t yo!r i"5est#e"t is s!*&ect to a"y osses i" 5a!e as 'e. Bear i" #i"% that
osses are share a#o"+ 5ario!s !"it@ho%ers3 a"% 'i therefore *e ess tha" if yo!%
i"5este% %irecty i" a sec!rity.
No ass!re% ret!r"sJ o$e"@e"%e% sche#es %o "ot ass!re% ret!r"s. U"i(e *a"( %e$osits3
o$e"@e"%e% e)!ity or %e*t f!"% i"5est#e"ts co!% fa i" 5a!e. I" a%%itio"3 MFs are "ot
i"s!re% or +!ara"tee% *y a"y +o5er"#e"t *o%y 9!"i(e a *a"( %e$osit3 'here !$ to Rs
A,,3,,, is i"s!re% *y the 1e$osit a"% 8re%it I"s!ra"ce 8or$oratio"3 a s!*si%iary of the
RBI.:
There are strict "or#s for a"y f!"% that ass!res ret!r"s a"% it is "o' co#$!sory for MFs
to state that the reso!rces that *ac( s!ch ass!ra"ces. This is *eca!se #ost cose%@e"%
f!"%s that ass!re% ret!r"s i" the eary ACC,s co!% "ot stic( to their +!ara"tee3 res!ti"+
i" osses to i"5estors.
1i5ersificatio"J %i5ersificatio" he$s3 if ris( #i"i#i;atio" is yo!r o*&ecti5e. O" the fi$
si%e3 the ac( of i"5est#e"t foc!s aso #ea"s yo! +ai" ess tha" if yo! ha% i"5este%
%irecty i" a si"+e sec!rity.
5!&$& d" (%t%a6 7%nd# 8n0&#tC
Base% o" the 5ario!s ty$es of fi"a"cia a5aia*e3 MF sche#es co!% i"5est i" e)!ity3
%e*t or *oth. Th!s3 yo!r i"5est#e"t is #a"a+e% o" a" o"+oi"+ *asis of s$ecific casses of
fi"a"cia i"str!#e"ts s!ch as stoc(s3 fi7e%@i"co#e i"str!#e"ts a"% other sec!rities i"
t!"e 'ith the f!"%s s$ecific i"5est#e"t o*&ecti5e.
A2
Each i"5est#e"t cass has its o'" e5e of ret!r"s a"%3 of co!rse3 ris(. It is "ecessary to
!"%ersta"% the reaso"s *ehi"% i"5esti"+ i" a $artic!ar asset cass. Yo! co!% *e a
co"ser5ati5e3 a++ressi5e3 *aa"ce% or +ro'th i"5estor.
T;<&# "7 M%t%a6 F%nd#
MFs ca" *e cassifie% o" the *asis of i"5est#e"t o*&ecti5e3 "at!re3 a"% oa% str!ct!re.
O" the *asis of i"5est#e"t o*&ecti5e3 MFs ca" *e cassifie% i"to e)!ity3 sector3 %e*t3
#o"ey3 #ar(et3 i)!i% a"% +it sche#es %e$e"%i"+ o" the sec!rities they i"5est i".
A6
1. ED%8t;E'$":t! 7%nd.
This is a sche#e that i"5ests o"y i" e)!ity. Fhe" i"5esti"+ i" stoc(s3 yo! ca""ot *e s!re
of yo!r i"5est#e"t te"!re or ret!r"s. As a th!#*@r!e3 the o"+er the stoc( is he%3 the
hi+her the +ai"s. Yo! sta"% a *etter cha"ce of a s!*sta"tia a$$reciatio" if yo! i"5est i"
stoc(@*ase% f!"%s.
Stoc(s are cate+ori;e% *y their #ar(et ca$itaisatio" i"to s#a3 #e%i!# or ar+e3 a"%
MFs are accor%i"+y cassifie% as ar+e@ca$3 #i%@ca$ or s#a@ca$ f!"%s. The NA< of a"
e)!ity sche#e 'i f!ct!ate 'ith the stoc( #ar(et.
2. S&t"$ F%nd
A" e)!ity sche#e that i"5ests i" shares of co#$a"ies o$erati"+ i" s$ecific i"%!stry is
cae% a sector f!"%. For i"sta"ce3 a $har#a f!"% 'o!% o"y i"5est i" $har#ace!tica
co#$a"ies. Sector f!"%s are ris(y as they are s!sce$ti*e to cycica i"f!e"ces@ it is
!"i(ey that the #ar(et 'i fa5o!r a $artic!ar sector for too o"+.
3. ED%8t;AL8nF&d Sa08n'# S!&(&#
The #a&or $ortio" of i"5est#e"t is ELSS sche#es is i" e)!ity a"% offers 2, $erce"t ta7
re*ate !"%er sectio" //3 s!*&ect to a #a7i#!# i"5est#e"t of Rs A,3,,, a""!ay.
1i5i%e"%s are ta7 free. As a" ELSS is i"(e% to the #ar(et3 it ca" ear" s!*sta"tiay #ore
tha" other sectio" // sche#es3 'hich offers fi7e% rates of ret!r" to a #a7i#!# of AA
$erce"t.
1. D&9t F%nd
This f!"% i"5ests i" fi7e% i"co#e i"str!#e"ts s!ch as %e*e"t!res 9*o"%s: a"% 5ario!s
#o"ey #ar(et i"str!#e"ts. Iere3 *oth ret!r" a"% i"5est#e"t te"!re are state% at the ti#e
A?
of i"5esti"+. Bo"%s ca" *e iss!e% *y co#$a"ies or *y the +o5er"#e"t 9state or ce"tra:.
Bo"%s are rate% *y i"%e$e"%e"t cre%it rati"+ a+e"cies s!ch as 8risi/8ARE/I8RA3 'hich
5erify the co#$a"ys a*iity to ho"o!r its i"terest co##it#e"ts. The NA< of %e*t f!"%
%oes "ot f!ct!ate as #!ch as that of e)!ity f!"%.
>. G68t F%nd
0its are sec!rities iss!e% *y the ce"tra +o5er"#e"t a"% are sai% to carry so5erei+" or
#i"i#a ris(.
6. M"n&; Ma$F&t F%nd
This f!"% i"5ests e7c!si5ey i" #o"ey #ar(et i"str!#e"ts3 i"c!%i"+ co##ercia $a$er3
co##ercia *is3 treas!ry *is3 +o5er"#e"t sec!rities 'ith a" !"e7$ire% #at!rity of !$
to o"e year3 ca or "otice #o"ey3 certificate of %e$osit3 !sa"ce *is a"% other i"str!#e"ts
s$ecifie% *y the RBI. These f!"%s ha5e #i"i#!# oc(@i" $erio% of A? %ays. Ti rece"ty3
the RBI re+!ate% #o"ey #ar(et f!"%s *!t they "o' co#e !"%er Se*i.
7. L8D%8d F%nd
A i)!i% f!"% is the sa#e as a #o"ey #ar(et f!"%3 *!t a5oi%s a oc(@i" $erio%. Most of
the# oc( f!"%s i" for !$ to three %ays to $rotect a+ai"st *a"(i"+ $roce%!ra
i"efficie"cies. Use% as a" ater"ati5e to c!rre"t acco!"t *aa"ces3 a i)!i% f!"% is i%eay
s!ite% to i"5estors 'ho 'a"t to $ar( their f!"%s for a 5ery short ti#e@ se5e" to ei+ht %ays.
8o"se)!e"ty3 f!"% ho!ses $rocess re%e#$tio" re)!ests 'ithi" 26 ho!rs i"stea% of the
sta"%ar% three 'or(i"+ %ays. The #i"i#!# i"5est#e"t i" these f!"%s is Rs 2?3,,,.
-. Ba6an&d F%nd
A-
Baa"ce% sche#es i"5est i" *oth e)!ity a"% %e*t3 'ith ?,@E? $erce"t i" e)!ity a"% the
rest i" %e*t. It is i#$orta"t to ("o' the stoc(s to *o"%s ratio i" a f!"% to !"%ersta"% the
ris(s a"% re'ar%s str!ct!re.
MF# a$& 6a##878&d "n t!& 9a#8# "7 t!&8$ nat%$& 8nt"4
1* C6"#&dA&nd #!&(&#
A #!t!a f!"% sche#e i" 'hich the #at!rity $erio% is s$ecifie% is cae% cose%@e"%
sche#e. These sche#es are tra%e% o" stoc( e7cha"+es at $rices %eter#i"e% *y #ar(et
factors. These f!"%s ha5e a s$ecific #at!rity %ates a"% the "!#*er of !"its iss!e% is fi7e%
for the e"tire te"!re. 8ose%@e"% sche#es are *o!+ht a"% so% *y i"5estors thro!+h
*ro(ers. As the "!#*er of !"its is fi7e%3 the AM8 %oes"t fi+!re i" *!y/se $rocess.
2* O<&nA&nd #!&(&#
MF sche#es that co"ti"!o!sy offer "e' !"its to the $!*ic are cae% o$e"@e"% sche#es.
They offer !"its for sae 'itho!t s$ecifyi"+ a"y %!ratio" for re%e#$tio". The f!"% is
e+ay re)!ire to *!y *ac( or re%ee# o!tsta"%i"+ !"its at the !"it ho%ers re)!est. The
AM8 is o*i+e% to %o the *!yi"+ a"% sei"+ of !"its %!ratio" %esi+"ate% 'or(i"+ %ays
a"% ho!rs.
HO5 TO MA3E MONEY FROM MFS
Most MFs ha5e t'o ty$es of $a"s@ %i5i%e"% a"% +ro'th. I" a %e*t f!"%3 the MF #ay
ret!r" the i"terest/%i5i%e"% it recei5es o" i"5est#e"ts as %i5i%e"%s. A" e)!ity/*aa"ce%
f!"% #ay aso $ay $erio%ic %i5i%e"%s 'he" it reai;es a $rofit o" the sae of stoc(s he%
i" its $ortfoio.
AE
Re#e#*er3 it is the a$$reciatio" i" the NA< that is offere% as %i5i%e"%s3 a"% the NA<
fas to the e7te"t of the %i5i%e"% %ecare% 9a"% the" so#e #ore i" the case of %e*t f!"%s3
*eca!se of ta7es:. As %i5i%e"%s are ta7@free it is a +oo% o$tio" for i"5estors i" the hi+hest
ta7 *rac(et. For i"5estors 'ho o$t o!t of %i5i%e"%s3 the +ro'th o$tio" et the# e"cash the
a$$reciatio" *y re%ee#i"+ !"its at the NA<.
Fhe"e5er a sche#e %ecares a %i5i%e"%3 it fi7es a c!t@off %ate cae% the recor% %ate to
%eter#i"e the ist of i"5estors 'ho 'i *e ei+i*e for the %i5i%e"%. After the recor% %ate3
the sche#s NA< is re%!ce% *y the a#o!"t of %i5i%e"% a"% i"5estors 'ho &oi" the
sche#e $ost@recor% %ate %o so at the e7@%i5i%e"% NA<.
Ma?"$ M%t%a6 F%nd C"(<an8&# 8n Ind8a
ABN AMRO Mutual Fund
ABN AMRO M!t!a F!"% 'as set!$ o" A$ri A?3 2,,6 'ith ABN AMRO Tr!stee 9I"%ia:
P5t. Lt%. as the Tr!stee 8o#$a"y. The AM83 ABN AMRO Asset Ma"a+e#e"t 9I"%ia:
Lt%. 'as i"cor$orate% o" No5e#*er 63 2,,2. 1e!tsche Ba"( A 0 is the c!sto%ia" of ABN
AMRO M!t!a F!"%.
Birla Sun Life Mutual Fund
Bira S!" Life M!t!a F!"% is the &oi"t 5e"t!re of A%itya Bira 0ro!$ a"% S!" Life
Fi"a"cia. S!" Life Fi"a"cia is a +o*a or+a"isatio" e5o5e% i" A/EA a"% is *ei"+
re$rese"te% i" 8a"a%a3 the US3 the Phii$$i"es3 Ba$a"3 I"%o"esia a"% Ber#!%a a$art fro#
I"%ia. Bira S!" Life M!t!a F!"% foo's a co"ser5ati5e o"+@ter# a$$roach to
i"5est#e"t. Rece"ty it crosse% AUM of Rs. A,3,,, crores.
A/
Bank of Baroda Mutual Fund (BOB Mutual Fund)
Ba"( of Baro%a M!t!a F!"% or BOB M!t!a F!"% 'as set!$ o" Octo*er 2,3 ACC2 !"%er
the s$o"sorshi$ of Ba"( of Baro%a. BOB Asset Ma"a+e#e"t 8o#$a"y Li#ite% is the
AM8 of BOB M!t!a F!"% a"% 'as i"cor$orate% o" No5e#*er ?3 ACC2. 1e!tsche Ba"(
A0 is the c!sto%ia".
HDFC Mutual Fund
I1F8 M!t!a F!"% 'as set!$ o" B!"e 2,3 2,,, 'ith t'o s$o"sorers "e#ey Io!si"+
1e5eo$#e"t Fi"a"ce 8or$oratio" Li#ite% a"% Sta"%ar% Life I"5est#e"ts Li#ite%.
HSBC Mutual Fund
ISB8 M!t!a F!"% 'as set!$ o" May 2E3 2,,2 'ith ISB8 Sec!rities a"% 8a$ita
Mar(ets 9I"%ia: Pri5ate Li#ite% as the s$o"sor. Boar% of Tr!stees3 ISB8 M!t!a F!"%
acts as the Tr!stee 8o#$a"y of ISB8 M!t!a F!"%.
ING Vyya Mutual Fund
IN0 <ysya M!t!a F!"% 'as set!$ o" Fe*r!ary AA3 ACCC 'ith the sa#e "a#e% Tr!stee
8o#$a"y. It is a &oi"t 5e"t!re of <ysya a"% IN0. The AM83 IN0 I"5est#e"t
Ma"a+e#e"t 9I"%ia: P5t. Lt%. 'as i"cor$orate% o" A$ri -3 ACC/.
!rudential ICICI Mutual Fund
AC
The #!t!a f!"% of I8I8I is a &oi"t 5e"t!re 'ith Pr!%e"tia Pc. of A#erica3 o"e of the
ar+est ife i"s!ra"ce co#$a"ies i" the US of A. Pr!%e"tia I8I8I M!t!a F!"% 'as set!$
o" A2th of Octo*er3 ACC2 'ith t'o s$o"sorers3 Pr!%e"tia Pc. a"% I8I8I Lt%. The Tr!stee
8o#$a"y for#e% is Pr!%e"tia I8I8I Tr!st Lt%. a"% the AM8 is Pr!%e"tia I8I8I Asset
Ma"a+e#e"t 8o#$a"y Li#ite% i"cor$orate% o" 22"% of B!"e3 ACC2.
Sa"ara Mutual Fund
Sahara M!t!a F!"% 'as set !$ o" B!y A/3 ACC- 'ith Sahara I"%ia Fi"a"cia 8or$oratio"
Lt%. as the s$o"sor. Sahara Asset Ma"a+e#e"t 8o#$a"y Pri5ate Li#ite% i"cor$orate% o"
A!+!st 2A3 ACC? 'or(s as the AM8 of Sahara M!t!a F!"%. The $ai%@!$ ca$ita of the
AM8 sta"%s at Rs 2?./ crore.
State Bank of India Mutual Fund
State Ba"( of I"%ia M!t!a F!"% is the first Ba"( s$o"sore% M!t!a F!"% to a!"ch
offshor f!"%3 the I"%ia Ma+"!# F!"% 'ith a cor$!s of Rs. 22? cr. a$$ro7i#atey. To%ay
it is the ar+est Ba"( s$o"sore% M!t!a F!"% i" I"%ia. They ha5e area%y a!"che% 2?
Sche#es o!t of 'hich A? ha5e area%y yie%e% ha"%so#e ret!r"s to i"5estors. State Ba"(
of I"%ia M!t!a F!"% has #ore tha" Rs. ?3?,, 8rores as AUM. No' it has a" i"5estor
*ase of o5er / La(hs s$rea% o5er A/ sche#es.
#ata Mutual Fund
Tata M!t!a F!"% 9TMF: is a Tr!st !"%er the I"%ia" Tr!st Act3 A//2. The s$o"sorers for
Tata M!t!a F!"% are Tata So"s Lt%.3 a"% Tata I"5est#e"t 8or$oratio" Lt%. The
i"5est#e"t #a"a+er is Tata Asset Ma"a+e#e"t Li#ite% a"% its Tata Tr!stee 8o#$a"y
P5t. Li#ite%. Tata Asset Ma"a+e#e"t Li#ite%Ks is o"e of the fastest i" the co!"try 'ith
#ore tha" Rs. E3E,2 crores 9as o" A$ri 2,3 2,,?: of AUM.
2,
$otak Ma"indra Mutual Fund
Gota( Mahi"%ra Asset Ma"a+e#e"t 8o#$a"y 9GMAM8: is a s!*si%iary of GMBL. It is
$rese"ty ha5i"+ #ore tha" A3CC3/A/ i"5estors i" its 5ario!s sche#es. GMAM8 starte%
its o$eratio"s i" 1ece#*er ACC/. Gota( Mahi"%ra M!t!a F!"% offers sche#es cateri"+
to i"5estors 'ith 5aryi"+ ris( @ ret!r" $rofies. It 'as the first co#$a"y to a!"ch
%e%icate% +it sche#e i"5esti"+ o"y i" +o5er"#e"t sec!rities.
%nit #rut of India Mutual Fund
UTI Asset Ma"a+e#e"t 8o#$a"y Pri5ate Li#ite%3 esta*ishe% i" Ba" A63 2,,23 #a"a+es
the UTI M!t!a F!"% 'ith the s!$$ort of UTI Tr!stee 8o#$a"y Pri5ete Li#ite%. UTI
Asset Ma"a+e#e"t 8o#$a"y $rese"ty #a"a+es a cor$!s of o5er Rs.2,,,, 8rore. The
s$o"sorers of UTI M!t!a F!"% are Ba"( of Baro%a 9BOB:3 P!"&a* Natio"a Ba"(
9PNB:3 State Ba"( of I"%ia 9SBI:3 a"% Life I"s!ra"ce 8or$oratio" of I"%ia 9LI8:. The
sche#es of UTI M!t!a F!"% are Li)!i% F!"%s3 I"co#e F!"%s3 Asset Ma"a+e#e"t
F!"%s3 I"%e7 F!"%s3 E)!ity F!"%s a"% Baa"ce
Relian&e Mutual Fund
Reia"ce M!t!a F!"% 9RMF: 'as esta*ishe% as tr!st !"%er I"%ia" Tr!sts Act3 A//2. The
s$o"sor of RMF is Reia"ce 8a$ita Li#ite% a"% Reia"ce 8a$ita Tr!stee 8o. Li#ite% is
the Tr!stee. It 'as re+istere% o" B!"e 2,3 ACC? as Reia"ce 8a$ita M!t!a F!"% 'hich
'as cha"+e% o" March AA3 2,,6. Reia"ce M!t!a F!"% 'as for#e% for a!"chi"+ of
5ario!s sche#es !"%er 'hich !"its are iss!e% to the P!*ic 'ith a 5ie' to co"tri*!te to
the ca$ita #ar(et a"% to $ro5i%e i"5estors the o$$ort!"ities to #a(e i"5est#e"ts i"
%i5ersifie% sec!rities.
Standard C"artered Mutual Fund
2A
Sta"%ar% 8hartere% M!t!a F!"% 'as set !$ o" March A23 2,,, s$o"sore% *y Sta"%ar%
8hartere% Ba"(. The Tr!stee is Sta"%ar% 8hartere% Tr!stee 8o#$a"y P5t. Lt%. Sta"%ar%
8hartere% Asset Ma"a+e#e"t 8o#$a"y P5t. Lt%. is the AM8 'hich 'as i"cor$orate%
'ith SEBI o" 1ece#*er 2,3ACCC.
Franklin #e'(leton India Mutual Fund
The +ro!$3 Fr"a(i" Te#$eto" I"5est#e"ts is a 8aifor"ia 9USA: *ase% co#$a"y 'ith a
+o*a AUM of USL 6,C.2 *". 9as of A$ri 2,3 2,,?:. It is o"e of the ar+est fi"a"cia
ser5ices +ro!$s i" the 'or%. I"5estors ca" *!y or se the M!t!a F!"% thro!+h their
fi"a"cia a%5isor or thro!+h #ai or thro!+h their 'e*site. They ha5e O$e" e"%
1i5ersifie% E)!ity sche#es3 O$e" e"% Sector E)!ity sche#es3 O$e" e"% Iy*ri%
sche#es3 O$e" e"% Ta7 Sa5i"+ sche#es3 O$e" e"% I"co#e a"% Li)!i% sche#es3 8ose%
e"% I"co#e sche#es a"% O$e" e"% F!"% of F!"%s sche#es to offer.
Mor)an Stanley Mutual Fund India
Mor+a" Sta"ey is a 'or%'i%e fi"a"cia ser5ices co#$a"y a"% its ea%i"+ i" the #ar(et
i" sec!rities3 i"5est#e"ty #a"a+e#e"t a"% cre%it ser5ices. Mor+a" Sta"ey I"5est#e"t
Ma"a+e#e"t 9MISM: 'as esta*ishe% i" the year ACE?. It $ro5i%es c!sto#i;e% asset
#a"a+e#e"t ser5ices a"% $ro%!cts to +o5er"#e"ts3 cor$oratio"s3 $e"sio" f!"%s a"% "o"@
$rofit or+a"isatio"s. Its ser5ices are aso e7te"%e% to hi+h "et 'orth i"%i5i%!as a"% retai
i"5estors. I" I"%ia it is ("o'" as Mor+a" Sta"ey I"5est#e"t Ma"a+e#e"t Pri5ate
Li#ite% 9MSIM I"%ia: a"% its AM8 is Mor+a" Sta"ey M!t!a F!"% 9MSMF:. This is the
first cose e"% %i5ersifie% e)!ity sche#e ser5i"+ the "ee%s of I"%ia" retai i"5estors
foc!ssi"+ o" a o"+@ter# ca$ita a$$reciatio".
*&ort Mutual Fund
22
Escorts M!t!a F!"% 'as set!$ o" A$ri A?3 ACC- 'ith E7corts Fi"a"ce Li#ite% as its
s$o"sor. The Tr!stee 8o#$a"y is Escorts I"5est#e"t Tr!st Li#ite%. Its AM8 'as
i"cor$orate% o" 1ece#*er A3 ACC? 'ith the "a#e Escorts Asset Ma"a+e#e"t Li#ite%.
Allian&e Ca(ital Mutual Fund
Aia"ce 8a$ita M!t!a F!"% 'as set!$ o" 1ece#*er 2,3 ACC6 'ith Aia"ce 8a$ita
Ma"a+e#e"t 8or$. of 1ea'are 9USA: as s$o"sorer. The Tr!stee is A8AM Tr!st
8o#$a"y P5t. Lt%. a"% AM83 the Aia"ce 8a$ita Asset Ma"a+e#e"t I"%ia 9P5t: Lt%.
'ith the cor$orate office i" M!#*ai.
Ben&"'ark Mutual Fund
Be"ch#ar( M!t!a F!"% 'as set!$ o" B!"e A23 2,,A 'ith Niche Fi"a"cia Ser5ices P5t.
Lt%. as the s$o"sorer a"% Be"ch#ar( Tr!stee 8o#$a"y P5t. Lt%. as the Tr!stee
8o#$a"y. I"cor$orate% o" Octo*er A-3 2,,, a"% hea%)!artere% i" M!#*ai3 Be"ch#ar(
Asset Ma"a+e#e"t 8o#$a"y P5t. Lt%. is the AM8.
Can+ank Mutual Fund
8a"*a"( M!t!a F!"% 'as set!$ o" 1ece#*er AC3 AC/E 'ith 8a"ara Ba"( acti"+ as the
s$o"sor. 8a"*a"( I"5est#e"t Ma"a+e#e"t Ser5ices Lt%. i"cor$orate% o" March 23 ACC2
is the AM8. The 8or$orate Office of the AM8 is i" M!#*ai.
C"ola Mutual Fund
8hoa M!t!a F!"% !"%er the s$o"sorshi$ of 8hoa#a"%aa# I"5est#e"t D Fi"a"ce
Company Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee
Company and AMC is Cholamandalam AMC Limited.
22
LIC Mutual Fund
Life I"s!ra"ce 8or$oratio" of I"%ia set !$ LI8 M!t!a F!"% o" ACth B!"e AC/C. It
co"tri*!te% Rs. 2 8rores to'ar%s the cor$!s of the F!"%. LI8 M!t!a F!"% 'as
co"stit!te% as a Tr!st i" accor%a"ce 'ith the $ro5isio"s of the I"%ia" Tr!st Act3 A//2. .
The 8o#$a"y starte% its *!si"ess o" 2Cth A$ri ACC6. The Tr!stees of LI8 M!t!a F!"%
ha5e a$$oi"te% Bee5a" Bi#a Sahayo+ Asset Ma"a+e#e"t 8o#$a"y Lt% as the
I"5est#e"t Ma"a+ers for LI8 M!t!a F!"%.
GIC Mutual Fund
0I8 M!t!a F!"%3 s$o"sore% *y 0e"era I"s!ra"ce 8or$oratio" of I"%ia 90I8:3 a
0o5er"#e"t of I"%ia !"%erta(i"+ a"% the fo!r P!*ic Sector 0e"era I"s!ra"ce
8o#$a"ies3 5i;. Natio"a I"s!ra"ce 8o. Lt% 9NI8:3 The Ne' I"%ia Ass!ra"ce 8o. Lt%.
9NIA:3 The Orie"ta I"s!ra"ce 8o. Lt% 9OI8: a"% U"ite% I"%ia I"s!ra"ce 8o. Lt%. 9UII:
a"% is co"stit!te% as a Tr!st i" accor%a"ce 'ith the $ro5isio"s of the I"%ia" Tr!sts Act3
A//2.

OBJECTIVE
26
TO UNDERSTAND THE CONSUMER BUYING BEHAVIOUR AND
INVESTMENT PATTERN IN INDORE.
PROFILE OF THE ORGANIGATION
2?
Reia"ce Mo"ey is a o"i"e $orta a"% a *ro(era+e fir# of Reia"ce 8a$ita.It $ro5i%e
o"i"e ser5ices for e)!ity tra%i"+ 3 fore7 3 co##o%ity e7cha"+e etc..It $ro5i%e foo'i"+
*e"efits.
S8n'6& A 58nd": A&##
Yo! 'i *e a*e to tra"sact i" E)!ity3 E)!ity D 8o##o%ity 1eri5ati5es3 Offshore
I"5est#e"ts3 M!t!a F!"%s3 IPOs3 Life I"s!ra"ce3 0e"era I"s!ra"ce3 Mo"ey Tra"sfer3
Mo"ey 8ha"+i"+ a"% 8re%it 8ar%s3 a#o"+st others.
C"#tA&77&t80&
A" i"tro%!ctory offer3 $ay a fat fee of &!st Rs ?,,/@M a"% tra"sact for A year or a
s$ecifie% tra"sactio" 5a!e3 'hiche5er is earier.
C"n0&n8&nt @ Sa7&
Yo! ca" access Reia"ce Mo"eyKs ser5ices thro!+h the I"ter"et3 Tra"sactio" Gios(s3 the
$ho"e 98a D Tra"sact:3 o!r a @ I"%ia "et'or( of associates
Yo!r acco!"t is safe+!ar%e% 'ith a !"i)!e sec!rity "!#*er that act as a %y"a#ic
$ass'or% a"% cha"+es e5ery 22 seco"%s.
3A8nA1 7a868t;
A si"+e 'i"%o' for Ba"(i"+3 Tra%i"+ a"% 1e#at Acco!"t
A"% tra"sfer f!"%s across acco!"ts sea#essyN
Va6%&AAdd&d #&$08&#J
8EOsK / E7$ert 5ie's o" the eco"o#y a"% fi"a"cia #ar(ets
Ris( A"ayser for a"aysis of yo!r ris( $rofie
Asset Aocators to *!i% a" a$$ro$riate i"5est#e"t $ortfoio
R&68an& Ca<8ta6
R&68an& Ca<8ta6 Li#ite% 9R8L: is a No"@Ba"(i"+ Fi"a"cia 8o#$a"y 9NBF8:
re+istere% 'ith the Reser5e Ba"( of I"%ia !"%er sectio" 6?@IA of the Reser5e Ba"( of
2-
I"%ia Act3 AC26. R8L 'as i"cor$orate% as a $!*ic i#ite% co#$a"y i" AC/- a"% is "o'
iste% o" the Bo#*ay Stoc( E7cha"+e a"% the Natio"a Stoc( E7cha"+e 9I"%ia:.
Fith a "et 'orth of o5er Rs 232,, crore a"% o5er A-?3,,, shareho%ers3 Reia"ce 8a$ita
has esta*ishe% its $rese"ce as a ea%i"+ $ayer i" the fi"a"cia ser5ices sector i" the
co!"try. O" co"5ersio" of o!tsta"%i"+ e)!ity i"str!#e"ts3 the "et 'orth of the co#$a"y
'i i"crease to a*o!t Rs 63A,, crore.
Reia"ce 8a$ita sees i##e"se $ote"tia i" the ra$i%y +ro'i"+ fi"a"cia ser5ices sector
i" I"%ia a"% ai#s to *eco#e a %o#i"a"t $ayer i" this i"%!stry a"% offer f!y i"te+rate%
fi"a"cia ser5ices. It is hea%e% *y A"i A#*a"i.
Reia"ce 8a$ita is o"e of I"%ias ea%i"+ a"% fastest +ro'i"+ $ri5ate sector fi"a"cia
ser5ices co#$a"ies3 a"% ra"(s a#o"+ the to$ 2 $ri5ate sector fi"a"cia ser5ices a"%
*a"(i"+ co#$a"ies3 i" ter#s of "et 'orth.
Reia"ce 8a$ita has i"terests i" asset #a"a+e#e"t a"% #!t!a f!"%s3 ife a"% +e"era
i"s!ra"ce3 $ri5ate e)!ity a"% $ro$rietary i"5est#e"ts3 stoc( *ro(i"+ a"% other acti5ities
i" fi"a"cia ser5ices.
R&68an& Ca<8ta6 6a%n!&# $&ta86 9$"F8n' "<&$at8"n#AA12 A<$86 2++7
Reia"ce 8a$ita has a""o!"ce% its foray i"to the *ro(era+e *!si"ess thro!+h Reia"ce
Mo"ey $ro#ote% *y A"i 1hir!*hai A#*a"i 0ro!$ fir# Reia"ce 8a$ita. Reia"ce
Mo"ey 'i offer a Kfi7e%K fat fee str!ct!re a"% 'o!% offer hi+hy co#$etiti5e rates
*ase% o" the fat fee str!ct!re i"stea% of the co"te#$orary syste# 'here i"5estors $ay
*ro(era+e fees 9$erce"ta+e: for each tra"sactio" co"%!cte% i" the stoc( #ar(ets.
Reia"ce Mo"ey 'o!% offer the *ro(era+e ser5ices across E,, cities i"c!%i"+ 1ehi a"%
M!#*ai thro!+h 23,,, o!tets.
2E
I"5estors 'o!% "ee% to $ay *ro(era+e at the rate of ,.,? $er ce"t for %ei5ery tra%es a"%
,.,,? $er ce"t for "o"@%ei5ery tra%es 9fi7e% fee of Rs?,, for %ei5ery tra%es !$ to RsA,
a(h a"% / or "o"@%ei5ery tra%es !$ to RsA crore:3 the co#$a"y sai%.
I"%!stry rates 5ary *et'ee" ,.6 $er ce"t to ,./? $er ce"t for %ei5ery tra%es a"% *et'ee"
,.,? $er ce"t a"% ,.A, $er ce"t for "o"@%ei5ery tra%es
Reia"ce 8a$ita Li#ite% is a fi"a"cia ser5ices co#$a"y. The 8o#$a"y has i"terests i"
asset #a"a+e#e"t a"% #!t!a f!"%s3 ife a"% +e"era i"s!ra"ce3 $ri5ate e)!ity a"%
i"5est#e"ts3 stoc( *ro(i"+ a"% other acti5ities i" fi"a"cia ser5ices. I" A$ri 2,,E3 the
8o#$a"y a!"che% Reia"ce Mo"ey3 a" o"i"e fi"a"cia ser5ices a"% so!tio"s $orta3
'hich $ro5i%es its c!sto#ers 'ith i"5est#e"t a"% tra%i"+ access to e)!ities3 e)!ity
o$tio"s3 co##o%ities f!t!res3 #!t!a f!"%s3 i"itia $!*ic offeri"+s 9IPOs:3 ife a"%
+e"era i"s!ra"ce $ro%!cts3 offshore i"5est#e"ts a"% cre%it car%s. It o$erates i" fo!r
*!si"ess se+#e"tsJ fi"a"ce a"% i"5est#e"t3 asset #a"a+e#e"t3 +e"era i"s!ra"ce a"%
other. Others i"c!%e forei+" e7cha"+e3 #o"ey tra"sfer3 $har#ace!ticas3 heathcare a"%
o+istics.
Reia"ce M!t!a F!"%3 a $art of the Reia"ce @ A"i 1hir!*hai A#*a"i 0ro!$ 9R@
A1A0: is o"e of the fastest +ro'i"+ #!t!a f!"%s i" the co!"try.
Reia"ce M!t!a F!"% offers i"5estors a 'e ro!"%e% $ortfoio of $ro%!cts to #eet
5aryi"+ i"5estor re)!ire#e"ts. Reia"ce M!t!a F!"% 9RMF: is o"e of I"%ias ea%i"+
M!t!a F!"%s3 'ith Assets U"%er Ma"a+e#e"t 9AUM: of Rs. ?C3/?E crore 9AUM as o"
2,th B!"e 2,,E: a"% a" i"5estor *ase of o5er 2.6 #iio".
Reia"ce M!t!a F!"% co"sta"ty e"%ea5o!rs to a!"ch i""o5ati5e $ro%!cts a"% c!sto#er
ser5ice i"itiati5es to i"crease 5a!e to i"5estors.
Reia"ce M!t!a F!"% sche#es are #a"a+e% *y Reia"ce 8a$ita Asset Ma"a+e#e"t
Lt%.3 a 'hoy o'"e% s!*si%iary of Reia"ce 8a$ita Lt%.
Reia"ce 8a$ita is o"e of I"%iaKs ea%i"+ a"% fastest +ro'i"+ $ri5ate sector fi"a"cia
2/
ser5ices co#$a"ies3 a"% ra"(s a#o"+ the to$ 2 $ri5ate sector fi"a"cia ser5ices a"%
*a"(i"+ co#$a"ies3 i" ter#s of "et 'orth.
Reia"ce 8a$ita has i"terests i" asset #a"a+e#e"t a"% #!t!a f!"%s3 ife a"% +e"era
i"s!ra"ce3 $ri5ate e)!ity a"% $ro$rietary i"5est#e"ts3 stoc( *ro(i"+ a"% other fi"a"cia
ser5ices.
METHODOLOGY
2C
1* U"%ersta"% the $rocess thro!+h 'hich the c!sto#er is ta(e" fro# the ti#e he
e"ters the %eaershi$ ti the ti#e the %ea is fi"ai;e%.
2* After the %ea is fi"ai;e%3 #a(e a ist of a the %oc!#e"ts re)!ire% for a oa"
a$$icatio" if the c!sto#er 'a"ts to a5ai the oa" faciity a"% aso a ist of
%oc!#e"ts re)!ire% for re+istratio" of the 5ehice i" the "a#e of c!sto#er.
3* Lay %o'" cear c!t i"str!ctio"s to the saes force re+ar%i"+ coecti"+ a the
%oc!#e"ts re)!ire% *y the *a"( for oa" so as to a5oi% the %eays for oa"
a$$icatio".
1* Mai"tai" cose a"% $erso"a reatio"s 'ith fi"a"cia i"stit!tio"s %eai"+ i"
$ro5i%i"+ oa"s to A+ric!t!ra E)!i$#e"ts so that First E")!iry Re$orts 9FI: of
the cases ca" *e %o"e at the eariest a"% aso the 1e#a"% Or%er 91O: is reease%
eary so as to faste" the retai cyce.
>* Pro$er fii"+ of the %oc!#e"ts of the c!sto#er to *e +i5e" $ri#e i#$orta"ce.
Each c!sto#er sho!% ha5e a %e%icate% fie 'ith his %oc!#e"ts a"% $a$ers i" it3
o"e co$y to *e (e$t at the %eaershi$ 'hich ca" *e !sef! i" ti#e of co"ti"+e"cies.
6* The "e7t ste$ *ei"+ to ta(e #eas!res to e"ha"ce the #ar(et share of Mahi"%ra
Tractors.
7* To %o that a" a"aysis is *ei"+ carrie% o!t to i%e"tify the stre"+ths a"% 'ea("esses
of the *!si"ess 'hich 'i he$ i" %e5eo$i"+ *!si"ess i%eas a"% aso for#!ate
co#$etiti5e strate+ies.
C"n#%(&$ B%;8n' B&!a08"%$
2,
Fhat i"f!e"ces co"s!#ers to $!rchase $ro%!cts or ser5icesO The co"s!#er *!yi"+
$rocess is a co#$e7 #atter as #a"y i"ter"a a"% e7ter"a factors ha5e a" i#$act o" the
*!yi"+ %ecisio"s of the co"s!#er.
Fhe" $!rchasi"+ a $ro%!ct there se5era $rocesses3 'hich co"s!#ers +o thro!+h. These
'i *e %isc!sse% *eo'.
1. P$"96&(EN&&d R&"'n8t8"n
Io' %o yo! %eci%e yo! 'a"t to *!y a $artic!ar $ro%!ct or ser5iceO It co!% *e that yo!r
1<1 $ayer sto$s 'or(i"+ a"% yo! "o' ha5e to oo( for a "e' o"e3 a those 1<1 fi#s
yo! $!rchase% yo! ca" "o o"+er $ayN So yo! ha5e a $ro*e# or a "e' "ee%. For hi+h
5a!e ite#s i(e a 1<1 $ayer or a car or other o' fre)!e"cy $!rchase% $ro%!cts this is
the $rocess 'e 'o!% ta(e. Io'e5er3 for i#$!se o' fre)!e"cy $!rchases e.+.
co"fectio"ery the $rocess is %iffere"t.
2. In7"$(at8"n #&a$!
So 'e ha5e a $ro*e#3 o!r 1<1 $ayer "o o"+er 'or(s a"% 'e "ee% to *!y a "e' o"e.
Fhats the so!tio"O Yes +o o!t a"% $!rchase a "e' o"e3 *!t 'hich *ra"%O Sha 'e *!y
the sa#e *ra"% as the o"e that *e' !$O Or stay cear of thatO 8o"s!#er ofte" +o o"
so#e for# of i"for#atio" search to he$ the# thro!+h their $!rchase %ecisio". So!rces of
i"for#atio" co!% *e fa#iy3 frie"%s3 "ei+h*o!rs 'ho #ay ha5e the $ro%!ct yo! ha5e i"
#i"%3 ater"ati5ey yo! #ay as( the saes $eo$e3 or %eaers3 or rea% s$eciaist #a+a;i"es
i(e Fhat 1<1O to he$ 'ith their $!rchase %ecisio". Yo! #ay e5e" act!ay e7a#i"e the
$ro%!ct *efore yo! %eci%e to $!rchase it.
3. E0a6%at8"n "7 d877&$&nt <%$!a#& "<t8"n#.
2A
So 'hat 1<1 $ayer %o 'e $!rchaseO Sha it *e So"y3 Toshi*a or B!shO 8o"s!#ers
aocate attri*!te factors to certai" $ro%!cts3 a#ost i(e a $oi"t scori"+ syste# 'hich
they 'or( o!t i" their #i"% o5er 'hich *ra"% to $!rchase. This #ea"s that co"s!#ers
("o' 'hat feat!res fro# the ri5as 'i *e"efit the# a"% they attach %iffere"t %e+rees of
i#$orta"ce to each attri*!te. For e7a#$e so!"% #ay*e *etter o" the So"y $ro%!ct a"%
$ict!re o" the Toshi*a 3 *!t $ict!re carity is #ore i#$orta"t to yo! the" so!"%.
8o"s!#ers !s!ay ha5e so#e sort of *ra"% $refere"ce 'ith co#$a"ies as they #ay ha5e
ha% a +oo% history 'ith a $artic!ar *ra"% or their frie"%s #ay ha5e ha% a reia*e history
'ith o"e3 *!t if the %ecisio" fas *et'ee" the So"y 1<1 or Toshi*a the" 'hich o"e sha
it *eO It co!% *e that the a re5ie' the co"s!#er rea%s o" the $artic!ar Toshi*a $ro%!ct
#ay ha5e ti$$e% the *aa"ce a"% that they 'i $!rchase that *ra"%.
1. P%$!a#& d&8#8"n
Thro!+h the e5a!atio" $rocess %isc!sse% a*o5e co"s!#ers 'i reach their fi"a
$!rchase %ecisio" a"% they reach the fi"a $rocess of +oi"+ thro!+h the $!rchase actio"
e.+. The $rocess of +oi"+ to the sho$ to *!y the $ro%!ct3 'hich for so#e co"s!#ers ca"
*e as &!st as re'ar%i"+ as act!ay $!rchasi"+ the $ro%!ct. P!rchase of the $ro%!ct ca"
either *e thro!+h the store3 the 'e*3 or o5er the $ho"e.
P"#t P%$!a#& B&!a08"%$
E5er ha5e %o!*ts a*o!t the $ro%!ct after yo! $!rchase% itO This si#$y is $ost $!rchase
*eha5io!r a"% research sho's that it is a co##o" trait a#o"+st $!rchasers of $ro%!cts.
Ma"!fact!rers of $ro%!cts ceary 'a"t rece"t co"s!#ers to fee $ro!% of their $!rchase3
it is therefore &!st as i#$orta"t for #a"!fact!rers to a%5ertise for the sa(e of their rece"t
$!rchaser so co"s!#ers fee co#forta*e that they o'" a $ro%!ct fro# a stro"+ a"%
re$!ta*e or+a"isatio". This i#its $ost $!rchase *eha5io!r. i.e. Yo! fee reass!re% that
yo! o'" the atest a%5ertise% $ro%!ct.
Fat"$# 8n76%&n8n' t!& 9&!a08"%$ "7 9%;&$#.
22
8o"s!#er *eha5io!r is affecte% *y #a"y !"co"troa*e factors. B!st thi"(3 'hat
i"f!e"ces yo! *efore yo! *!y a $ro%!ct or ser5iceO Yo!r frie"%s3 yo!r !$*ri"+i"+3 yo!r
c!t!re3 the #e%ia3 a roe #o%e or i"f!e"ces fro# certai" +ro!$sO
8!t!re is o"e factor that i"f!e"ces *eha5ior. Si#$y c!t!re is %efi"e% as o!r attit!%es
a"% *eiefs. B!t ho' are these attit!%es a"% *eiefs %e5eo$e%O As a" i"%i5i%!a +ro'i"+
!$3 a chi% is i"f!e"ce% *y their $are"ts3 *rothers3 sister a"% other fa#iy #e#*er 'ho
#ay teach the# 'hat is 'ro"+ or ri+ht. They ear" a*o!t their rei+io" a"% c!t!re3 'hich
he$s the# %e5eo$ these o$i"io"s3 attit!%es a"% *eiefs 9AIO: . These factors 'i
i"f!e"ce their $!rchase *eha5ior ho'e5er other factors i(e +ro!$s of frie"%s3 or $eo$e
they oo( !$ to #ay i"f!e"ce their choices of $!rchasi"+ a $artic!ar $ro%!ct or ser5ice.
Refere"ce +ro!$s are $artic!ar +ro!$s of $eo$e so#e $eo$e #ay oo( !$ to'ar%s to
that ha5e a" i#$act o" co"s!#er *eha5ior. So they ca" *e si#$y a *a"% i(e the S$ice
0irs or yo!r i##e%iate fa#iy #e#*ers. O$i"io" ea%ers are those $eo$e that yo! oo(
!$ to *eca!se yo!r res$ect their 5ie's a"% &!%+#e"ts a"% these 5ie's #ay i"f!e"ce
co"s!#er %ecisio"s. So it #ay*e a frie"% 'ho 'or(s 'ith the IT tra%e 'ho #ay i"f!e"ce
yo!r %ecisio" o" 'hat co#$!ter to *!y. The eco"o#ica e"5iro"#e"t aso has a" i#$act
o" co"s!#er *eha5ior= %o co"s!#ers ha5e a sec!re &o* a"% a re+!ar i"co#e to s$e"% o"
+oo%sO Mar(eti"+ a"% a%5ertisi"+ o*5io!sy i"f!e"ce co"s!#ers i" tryi"+ to e5o(e the#
to $!rchase a $artic!ar $ro%!ct or ser5ice.
Peo$es socia stat!s 'i aso i#$act their *eha5io!r. Fhat is their roe 'ithi" societyO
Are they ActorsO 1octorsO Office 'or(erO a"% #others a"% fathers asoO 8eary *ei"+
$are"ts affects yo!r *!yi"+ ha*its %e$e"%i"+ o" the a+e of the chi%re"3 the ty$e of &o*
#ay #ea" yo! "ee% to $!rchase for#a cothes3 the i"co#e 'hich is ear"e% has a"
i#$act. The ifestye of so#eo"e 'ho ear"s P2?,,,, 'o!% ceary *e %iffere"t fro#
so#eo"e 'ho ear"s P2?,,,. Aso characters ha5e a" i"f!e"ce o" *!yi"+ %ecisio".
Fhether the $erso" is e7tro5ert 9o!t +oi"+ a"% s$e"%s o" e"tertai"#e"t: or i"tro5ert
9(ee$s to the#se5es a"% $!rchases 5ia o"i"e or #ai or%er: a+ai" has a" i#$act o" the
ty$es of $!rchases #a%e
22

SURVEY
26
The s!r5ey 'as co"%!cte% of 2?,@sa#$e si;e. 8!sto#ers 'hie ta(i"+ *!yi"+ %ecisio"
$rocess co"si%ere% 5ario!s factors. Broa%y three factors 'ere there. They are ris(3 a+e
a"% i"co#e. The res!ts after %oi"+ as foo's.
A'& '$"%<
The a+e +ro!$ of 2, to 6, ca" ta(e ris( a"% i(e to +o for e)!ity f!"%s as it co"sists of
#ore ris( #ore ret!r"s. Fhie the a+e +ro!$ 6, to -, has #ore res$o"si*iities a"% their
fi"a"cia +oas are there so they are so#e'hat scare% as e)!ity or +ro'th f!"%s co"sist of
ris(3 so e5e" tho!+h they +i5e #ore ret!r"s *!t ha5i"+ hi+h ris( they $refer to +o for
MIP or i"co#e f!"%s. 1e*t sche#es or #o"ey #ar(et sche#es. I" this 'ay a+e +ro!$
$ays 5ery cr!cia factor i" choosi"+ the #!t!a f!"% as a (i"% of i"5est#e"ts a"% the
sche#es !"%er it.
R8#F and R&#<"n#89868t8&#
The $erso" 'ho has hi+her res$o"si*iities of his fa#iy a"% 5ario!s fi"a"cia +oas are
attache% to that i(e chi% e%!catio"3 their #arria+e etc. these res$o"si*iities 'o!% scare
hi# to +o for i"5esti"+ i" #!t!a f!"%s as hi+her 5oatiity a"% hi+her ris( is i"5o5e% i"
it a"% e5e" if he +oes for it3 he 'o!% choose 1e*t sche#es3 i"co#e sche#es3 #o"ey
#ar(et sche#es 'hich %o "ot ha5e a"y ris(. The $eo$es 'ho are si"+e or ha5e f!fie%
a res$o"si*iities are rea%y to ta(e ris( a"% i"5est i" hi+h ret!r" sche#es.
In"(& '$"%<
2?
There #ay *e hi+her i"co#e +ro!$3 #i%%e i"co#e +ro!$ or o'er i"co#e +ro!$. Ii+her
i"co#e +ro!$ ca" *ear ris( so they ca" +o for i"5esti"+ i" #!t!a f!"% a"% i" that too
they ca" +o for +ro'th f!"%s a"% e)!ity f!"%s. Mi%%e i"co#e +ro!$ are #o%erate ris(
ta(er so they #i+ht +o for i"5est#e"t i" #!t!a f!"%s that #i+ht choose a"y other +ro!$
are satisfie% i" i"5esti"+ i" fi7e% %e$osits. Post offices sche#es3 s#a sa5i"+s as their
#o"ey is safe there *!t #!t!a f!"% co"sists ris( so they %o"t 'a"t their #o"ey to et +o
o!t of their ha"% &!st to +et #ore to ta(e #ore ris(.
H%&#t8"nna8$& 7"$ t!& #%$0&; "7 B%;8n' D&8#8"nA
MaF8n' P$"&## "7 M%t%a6 F%nd In0&#t"$#4
2-
NAMEJ
A0EJ
O88UPATIONJ
,) U"%er 'hich i"co#e +ro!$ %o yo! co#eO 9yeary:
a: QA3,,3,,,
*: Q23,,3,,,
c: Q?3,,3,,,
%: QA,3,,3,,,
e: #ore tha" that
-) At 'hich sta+e yo! areO
a: Si"+e
*: Marrie%
c: Marrie% a"% ha5i"+ chi%re"
%: Mi%%e a+e
e: Retire#e"t Sta+e
.) Fhat is yo!r $!r$ose to i"5est i" 5ario!s fi"a"cia $ro%!ctsO
a: For ret!r"s
*: To f!fi f!t!re fi"a"cia +oas
c: For fi"a"cia sec!rity
%: For re+!ar sa5i"+ ha*its
/) Fhere 'o!% yo! i(e to #a(e yo!r i"5est#e"tsO
a: M!t!a F!"%s
*: Fi7e% 1e$osits
2E
c: Post Office Sche#es
%: I"s!ra"ce
e: Bo"%s
f: E)!ity Boo(i"+
0) Io' #!ch 'ei+hta+e 'o!% yo! +i5e for M!t!a F!"%s i" yo!r fi"a"cia
$a""i"+ o!t of A,,HO
a: 2?H
*: ?,H
c: E?H
%: A,,H
1) Fhy 'o!% yo! co"si%er #!t!a f!"% i#$orta"t i" yo!r fi"a"cia $a"O
a: For #ore %i5ersificatio"
*: For Li)!i%ity
c: For #ore ret!r"s
%: For Tra"s$are"cy
e: For #ore safety
2) Ia5e yo! i"5este% i" M!t!a F!"% *eforeO
a: Yes
*: No
3) If yes3 si"ce ho' #a"y years yo! are i"5esti"+ i" itO S$ecify it.
4) I" 'hich sche#es ha% yo! i"5este%O S$ecify that.
2/
,5) 1o yo! fee those sche#es 'ere *e"eficia for yo!O S$ecify 'ith the reaso"
ho' they 'ere.
a: Yes
*: No
,,) Fhich AM8 'o!% yo! $refer to #a(e yo!r i"5est#e"ts i" M!t!a F!"%sO
a: Reia"ce M!t!a F!"%
*: I8I8I
c: I1F8
%: Fra"(i" Te#$eto"
e: 1SP Merri Ly"ch
f: A"y Other
,-) Io' 'o!% yo! choose the AM8 to +o for i"5est#e"ts i" M!t!a F!"%sO
a: By Bra"% "a#e
*: By $ast $erfor#a"ces
c: F!"% Ma"a+er
%: By a5aia*e ty$es of f!"%s
,.) Fhat 'o!% *e yo!r #o%e of i"5est#e"tsO
a: O"i"e %irecty
*: Thro!+h a+e"ts
c: Fith the he$ of 5ario!s M!t!a F!"% Research Porta
%: Thro!+h PMS
,/) Fhich (i"% of M!t!a F!"% 'o!% yo! i(e to +o forO
a: 0ro'th
*: Baa"ce%
2C
c: Ta7 Sa5er
%: MIP
e: I"co#e Sche#e
f: A
,0) By str!ct!re 'hich ty$e of f!"%s 'o!% yo! +o forO
a: O$e"@e"%e%
*: 8ose@e"%e%
c: I"ter5a
%: A
,1) Fhat %o yo! co"si%er 'hie choosi"+ the sche#esO
a: More ret!r"s
*: Less ris(
c: Ta7 sa5i"+
%: Past $erfor#a"ce
,2) I" 'hich sche#e 'o!% yo! i(e to +o for i"O
a: E)!ity 1i5ersifie%
*: Baa"ce%
c: ELSS
%: MIP
e: A
,3) If E)!ity %i5ersifie% the" 'hich sche#eO
a: Reia"ce <isio"
6,
*: I1F8 To$ 2,,
c: Fra"(i" Fe7ica$
%: 1SP Merri Ly"ch e)!ity f!"%
e: I8I8I 1y"a#ic
,4) If ELSS the" 'hich sche#eO
a: SBI Ma+"!# Ta7 0ai"
*: I1F8 Ta7 Sa5er
c: I8I8I Ta7 Sa5er
%: Fra"(i" Ta7 Shie%
-5) If Baa"ce% the" 'hich sche#eO
a: I1F8 Pr!%e"ce F!"%
*: I8I8I Baa"ce% F!"%
c: 1SP Merri Ly"ch F!"%
%: Gota( Baa"ce% F!"%
-,) If MIP the" 'hich sche#eO
a: FT I"%ia MIP@ Pa" A@0ro'th
*: Reia"ce MIP 0ro'th
c: Pr!%e"tia I8I8I MIP@ 8!#!ati5e
%: 1SP ML Sa5i"+s P!s@ Mo%erate F!"%@ 0ro'th
--) I" a" a3 'hat 'o!% *e yo!r *!yi"+ $rocess of M!t!a F!"%sO 1escri*e
LIMTATIONS
6A
Sa#$e si;e is s#a o"y 2?, i"5estors 'ere as(e% there 5ie's for i"5est#e"t
$atter".
A. S!r5ey a"% fi"%i"+s are o"y i#ite% to I"%ore city "ot o" I"%ia a"% +o*ay.
2. Ti#e i#it 'as o"y 2 #o"ths.
2. O"y three factors or $ara#eters 'ere ta(e" i"to co"si%eratio" ris(3 i"co#e +ro!$
a"% a+e +ro!$.
6. No $hysioo+ica a"% socia factors are co"si%ere%.
Ana6;#8# and 78nd8n'#
62
1. T!& #t%d; :a# "nd%t&d "n t!& <&$&nta'& "7 <&"<6& 8n0&#t8n' 8n
M%t%a6 F%nd and "t!&$ "<t8"n#
Accor%i"+ to the s!r5ey3 the Ma7i#!# 'ei+hta+e is +i5e" to M!t!a f!"% as their
i"5est#e"t o$tio". After #!t!a f!"% the i#$orta"ce is +i5e" to $ost office sche#es3
Fi7e% Fe$osits3 I"s!ra"ce3 Bo"%s a"% E)!ity Bro(i"+
2. P$&7&$&n&# "7 t!& %#t"(&$# 8n #&6&t8"n "7 M%t%a6 F%nd# "7
d877&$&nt AMC#.
62
Fe ca" see that the Ma7i#!# "!#*er of c!sto#ers ha5e seecte% I8I8I M!t!a F!"%s.
Fhich is 26H3 Reia"ce a"% fra"(i" Te#$eto" is $referre% 22H $erce"ta+e i"%i5i%!ay
.'here as I1F8 a"% 1SP Merri Ly"ch are +i5e" $refere"ce as AC a"% 2 $erce"t
res$ecti5ey.
66
1. T!& %#t"(&$# <$&7&$$&d AMC# a7t&$ "n#8d&$8n' 7at"$# 68F&
B$and na(&2 Pa#t <&$7"$(an&2 F%nd Mana'&$2 T;<& "7 F%nd#
a0a86a96& and #!&(&# a0a86a96&.
Accor%i"+ to s!r5ey3 2CH $eo$e choose AM8 o" the *asis of f!"%s a"% sche#es
a5aia*e a"% 22H $eo$e choose accor%i"+ to the Bra"% "a#e. Fhie A-H $eo$e oo(
at $ast $erfor#a"ce of the AM8 a"% its cor$!s si;e or AUM si;e a"% A2H of $eo$e
'o!% i(e to +o 'ith the f!"% #a"a+er a5aia*e i" that AM8 as a the %ecisio" 'o!%
*e ta(e" o!t *y the f!"% #a"a+er a5aia*e there.
2. T!&$& a$& 0a$8"%# :a;# a0a86a96& t" 8n0&#t 8n (%t%a6 7%nd# 68F&
"n68n& d8$&t 8n0&#t(&nt 8n (%t%a6 7%nd2 %#t"(&$# an 8n0&#t
t!$"%'! a'&nt#2 an taF& !&6< "7 0a$8"%# M%t%a6 7%nd R&#&a$!
6?
<"$ta6 and t!&; an a6#" '" t!$"%'! P"$t7"68" Mana'&(&nt
S&$08&. T!& 7"66":8n' !a$t #!":# <$&7&$a96& ("d& "7 8n0&#t(&nt
9; %#t"(&$#.

Accor%i"+ to the s!r5ey3 #ost of the c!sto#ers $refer to #a(e i"5est#e"t thro!+h a+e"ts
*eca!se it is easiest 'ay a"% he$f!3 6-H9AA?: $eo$e $refer to i"5est i" #!t!a f!"%
thro!+h a+e"ts. 2?H 9//: $eo$e seecte% research $orta to i"5est. So#e i(e to i"5est
%irecty o"i"e3 as they $refer to i"5est o" their o'" so A-H 96,: $eo$e.2H $eo$e
seecte% PMS as o$tio" for the #o%e of i"5est#e"t.
>. An"t!&$ 7at"$ :!8! a77&t t!& 9%;8n' d&8#8"n <$"&## "7 %#t"(&$#
8# t!& F8nd "7 7%nd. A# t!&$& a$& G$":t! 7%nd2 Ba6an&d 7%nd2 TaI
#a08n' 7%nd2 MIP &t. T!&8$ <$&7&$&n&# 7"$ d877&$&nt 7%nd 8# #!":n
9&6":.
6-

I" this 'ay3 #a7i#!# 'ei+hta+e is +i5e" *y the $eo$e to +ro'th f!"%s 'ith /2H. 22H
$eo$e $refer to *!y *aa"ce% f!"%. 22H $refer ta7 sa5i"+ f!"%. A?H $eo$e $refer to
ta(e i"co#e sche#es as they 'a"t ess ris(. 6?H $refer MIP a"% ?2H $refer a sche#es.
6. T!&$& a$& "<&nA&nd #!&(&#2 6"#&A&nd #!&(&#2 Int&$0a6 #!&(&#.
P&"<6& !"#& t!& 7%nd 9; #t$%t%$& 8n t!& 7"66":8n' :a;#.
6E
GT BJCDJGJ DJE321K
Fe ca" see that A,2 $eo$e $refer to i"5est i" a (i"% of f!"% that is 6AH to %i5ersify
ris(. After that $eo$e $refer O$e"@e"%e% sche#es3 as 2/H 9E,: $eo$e 'i i"5est. Fhie
22H 'i +o 'ith 8ose@e"%e% sche#es a"% CH 'ith I"ter5a sche#es.
E. Fo!r #a&or sche#es 'ere ta(e" for co"%!cti"+ the s!r5ey that 'as
e7$ai"e% earier. They are e)!ity %i5ersifie% sche#es3 *aa"ce% sche#es3
ELSS3 MIP. The s!r5ey 'as co"%!cte% to fi"% the $refere"ce of $eo$e o"
the *asis of sche#es offere% *y 5ario!s AM8S.
6/

5e ca" see that 6-H of the $eo$e AA? $eo$e i(e to #a(e i"5est#e"t i" a the sche#es
to %i5ersify the ris(. 22H 9??: $eo$e $refer to i"5est i" e)!ity %i5ersifie% f!"%3 -H
$eo$e $refer to i"5est i" MIP $a"3 22 $eo$e $refer to #a(e i"5est#e"t i" Ta(e sa5i"+
ELSS Sche#es3 2H $eo$e choose Baa"ce% sche#es to #a(e i"5est#e"t.
6C
-. T!& #%$0&; :a# "nd%t&d :8t! R&68an& V8#8"n2 HDFC T"< 2++2
F$anF68n F6&I8 a<2 DSP M&$$866 L;n! and ICICI D;na(8 S!&(&#
%nd&$ ED%8t; D80&$#878&d S!&(&#.
I" e)!ity %i5ersifie% f!"% I ha5e seecte% fe' sche#es i(e reia"ce <isiso"3 I1F8 To$
2,,3 Fra"(i" Fe7ica$3 1SP Merri Ly"ch3 I8I8I 1y"a#ic E)!ity F!"%. Accor%i"+ to
the 'ei+hta+e +i5e" *y $eo$e3 2,H of the $eo$e E? i" "!#*ers i(e to +o for I1F8
To$ 2,,3 2,H 'o!% +o for I8I8I 1y"a#ic 3 2AH 'ith Fra"(i" fe7ica$3 A/H i"
Reia"ce <isio" a"% -H 'a"t to i"5est i" 1SP Merri Ly"ch.

?,
B.T!& #%$0&; :a# "nd%t&d 9; taF8n' a 7&: #!&(&# %nd&$ ELSS
S!&(&. T!&; a$& SBI Ma'n%( TaI Ga8n2 HDFC TaI S&$0&$2 and
F$anF68n TaI S!8&6d. T!&8$ <$&7&$&n&# 8# #!":n 8n t!& 7"66":8n' !a$t
P$&7&$&n&# G80&n T" Va$8"%# S!&(&# Und&$ ELSS
I" ELSS SBI Ma+"!# Ta7 0ai" F!"%3 I1F8 ta7 Sa5er a"% Fra"(i" Ta7 Shie% 'ere
ta(e" i" s!r5ey a"% $eo$e +i5e hi+hest 'ei+hta+e to I8I8I Ta7 Sa5er 'ith 6AH a"% 2AH
of the $eo$e 'ith E/ i" "!#*er i(e to i"5est i" SBI #a+"!# Ta7 0ai" a"% A?H of the
$eo$e i(e to +o for Fra"(i" Ta7 Shie%.
?A
1+. T!& #%$0&; :a# "nd%t&d 9; taF8n' 7&: #!&(&# %nd&$ 9a6an&d
#!&(&#. T!&; a$& HDFC P$%d&n& F%nd2 ICICI Ba6an&d F%nd2 DSP
M&$$866 L;n! Ba6an&d F%nd and 3"taF Ba6an&d F%nd. T!&8$
<$&7&$&n& '80&n 9; t!& <&"<6& 8# #!":n %nd&$ t!& 7"66":8n' !a$t.
P$&7&$&n&# G80&n T" t!& S!&(&# Und&$ Ba6an&d F%nd
For *aa"ce% sche#e I1F8 Pr!%e"ce F!"% 3 I8I8I Baa"ce% F!"% 3 1SP Merri Ly"ch
Baa"ce% F!"% a"% Gota( Baa"ce% F!"% 'ere ta(e" for s!r5ey. ?-H of the $eo$e 'ith
A6, i" "!#*er 'a"t to +o for I8I8I Baa"ce% F!"%3 22H ,f the $eo$e i(e to +o for 1SP
Merri Ly"ch a"% 2H of the $eo$e i(e to +o for I1F8 Pr!%e"ce F!"%.
?2
R&"((&ndat8"n#
AM8s sho!% $ro5i%e each a"% e5ery sche#e3 'hich are a5aia*e i" the #ar(et
that is $ro5i%e% *y others AM8s aso so that they ca" ser5e *etter. As 'e ca" see
that I8I8I ha% #a7i#!# 'ei+hta+e a"% 1SP Merri Ly"ch ha% the east
'ei+hta+e assi+"e% *y the $eo$e 'ith 2H. I1F8 sho!% aso i#$ro5e its
$erfor#a"ce.
As 'e ha5e see" that #ost of the $eo$e i(e to ta(e %ecisio"s thro!+h a+e"ts for
the i"5est#e"ts. So #a7i#!# "!#*er of a+e"ts sho!% *e $ro5i%e% for the#3 so
they ca" #a(e #a7i#!# i"5est#e"ts.
Most of the $eo$e i(e to +o for 0ro'th F!"%3 so i" this res$ect 5ario!s 5arieties
i" the sche#es sho!% *e offere% 'ith +reat *e"efits.
Peo$e i(e to +o for 0ro'th F!"% 3 so i" this res$ect 5ario!s 5erities i" the
sche#es sho!% *e offere% 'ith +reat *e"efits
Peo$e i(e to +o for i" O$e"@e"% sche#es so #ost *e"eficia Sche#es sho!% *e
a5aie% 'ith O$e"@e"% sche#es.
U"%er E)!ity 1i5ersifie% F!"%3 1SP Merri Ly"ch has east ra"( a"% 'ei+hta+e
&!st -H3 so it has to $ro5i%e +oo% sche#es i" E)!ity F!"%s.
U"%er ELSS3 I1F8 Ta7 Sa5er has A?H 'ei+hta+e as co#$are% to I8I8I Ta7
Sa5er3 'hich has 6AH a"% SBI Ma+"!# Ta7 0ai"3 'hich has 2AH3 so it has to
*etter sche#es as co#$are% to the other t'o.
U"%er Baa"ce% F!"%3 SBI Baa"ce% F!"% has o"y 2H 'ei+hta+e as co#$are to
?-H i" I8I8I Baa"ce% F!"%3 22H i" 1SP Merri Ly"ch Baa"ce% F!"% a"%
ACH i" I1F8 Pr!%e"ce F!"%3 SBI has +oo% #ar(i"+ !"%er ELSS3 *!t it has to
i#$ro5e i" Baa"ce% F!"%.
?2
C"n6%#8"n
Thro!+h the s!r5ey it 'as fo!"% that 2?H of the $eo$e %o "ot 'a"t to #a(e
i"5est#e"t i" #!t!a f!"%s as it is s!*&ecte% to #ar(et ris(.
Those 'ho are i"tereste% i" i"5esti"+ i" #!t!a f!"% ha5e +i5e" hi+hest
'ei+hta+e co#$ari"+ other i"5est#e"t o$tio"s. There are so#e $eo$e 'ho 'a"t
to i"5est A,,H a#o!"t i"to #!t!a f!"%s.
Peo$e ha5e +i5e" hi+hest 'ei+hta+e 'ith 26H to I8I8I as AM83 the" 22H to
Reia"ce a"% Fra"(i" Te#$eto" a"% I1F8 a"% 1SP Merri Ly"ch as ACH a"%
2H res$ecti5ey.
2CH $eo$e choose AM8 *y the ty$e of f!"% a5aia*e3 22H thro!+h *ra"% "a#e3
A-H thro!+h $ast $erfor#a"ce a"% A2H thro!+h f!"% #a"a+ers.
6-H of the $eo$e 'ith AA? i" "!#*er o!t of 2?, i(e to #a(e i"5est#e"t thro!+h
a+e"ts3 a"% 2?H of the $eo$e 'ith // i" "!#*er i(e to %o o"i"e i"5est#e"ts3
'hie 2H 'o!% !se PMS.
22H of the $eo$e i(e to i"5est i" 0ro'th F!"%3 ?2 $eo$e 'ith 2AH of the
$eo$e i(e to i"5est i" a f!"%s3 A/H of the $eo$e 'o!% +o for MIP3 A2H of the
$eo$e i(e to i"5est i" Ta7 Sa5i"+ Sche#es3 -H of the $eo$e i(e to +o 'ith
I"co#e Sche#es.
By the str!ct!re3 6AH of the $eo$e i(e to i"5est i" a the f!"%s3 'hie 2/H of
the $eo$e 'o!% +o for o$e"@e"% Sche#e a"% 22H 'o!% +o for 8ose%@e"%
Sche#e 'ith that of CH $eo$e i(e to +o for i"ter5a sche#es.
Sche#e 'ise 6-H $eo$e 'o!% +o for a (i"%s of sche#es a"% 22H $eo$e 'ith
?? i" "!#*er i(e to i"5est i" E)!ity 1i5ersifie% F!"%3 after that A-H of the
$eo$e 'o!% +o 'ith MIP $a"3 A2H of the $eo$e i(e to i"5est i" Ta7 Sa5i"+
P!r$ose a"% 2H of the $eo$e 'o!% i"5est i" Baa"ce% Sche#e.
?6
I" this 'ay3 there are 5ario!s $rocesses of *!yers to i"5est i" #!t!a f!"%s a"%
5ario!s #o%es as the s!r5ey says3 #ost of the $eo$e i(e to i"5est thro!+h a+e"ts3
so#e of the# i(e to ta(e he$ of Research Porta3 'hie other 'a"ts to i"5est
%irecty o"i"e a"% 5ery rare of the# i(e to ta(e he$ of PMS.
There are 5ario!s factors affecti"+ the $!rchase of #!t!a f!"% ris(3 i"co#e
+ro!$3 a+e +ro!$3 o$tio"s of AM8s3 %iffere"t ty$es of f!"%s3 a"% %iffere"t ty$es
of sche#es.


??
Refere"ceJ
A"&aria3 1.8.AMFI M!t!a F!"% Testi"+ Pro+ra##e For(*oo(3
M!#*ai3 Associatio" of M!t!a F!"% i"I"%ia= 2,,-
Goter Phii$ a"% Geer Ge5i" La"e. Mar(eti"+ Ma"a+e#e"t.

5&9#8t&#
'''.reia"ce#o"ey.co#
'''.a#ifii"%ia.co#
'''.#o"eyco"tro.co#
'''.#!t!af!"%.a*o!t.co#
'''.!ti.co#
'''.ce"t!ria*o$.or+
'''.'i(i$e%ia.co#
'''.o!too(#o"ey.co#
?-
'''.%ecisio"$oi"t.co#
'''.i"5estors'or%s.co#
G6"##a$;
AMC @ Asset #a"a+e#e"t co#$a"y
M.F @ M!t!a F!"%
MIP @ Mo"thy I"co#e Pa"
NAV @ Net Asset <a!e
ELSS @ E)!ity Li"(e% Sa5i"+ Sche#es
PMS @ Portfoio Ma"a+e#e"t Ser5ice
?E

?/