main_mrp

1. INTRODUCTION

1.1 Preliminaries:

The concept of ‘MutualFunds’ is to make different investment avenues available to investors. Mutual funds also offer good investment opportunities to the investors. Like all investments, they carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The investors may seek advice from experts and consultants including agents and distributors of mutual funds schemes while making investment decisions. With an objective to make the investors aware of functioning, of mutual funds, an attempt has been made to provide information in question-answer format which may help the investors in taking investment decisions. With an objective to make the investors aware of functioning, of mutual funds, an attempt has been made to provide information in question-answer format which may help the investors in taking investment decisions. Mutual fund is a Mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.

Mutual fund industry has seen a lot of changes in past few years with multinational companies coming into the country, bringing in their professional expertise in managing funds worldwide. In the past few months there has been a consolidation phase going on in the mutual fund industry in India. Now investors have a wide range of Schemes to choose from depending on their individual profiles.

There are various types of companies which are providing mutual fund services, among them Reliance and HDFC are the major players.The Reliance Mutual Fund is one of the most popular and leading mutual fund in India. The Fund is owned by Anil DhirubhaiAmbani Group and

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with respect to net worth it ranks among the top three of all the private financial service providers in India. The Reliance mutual fund products are available in hundred and fifteen cities across India. It is one of the fastest growing mutual funds in India and the main reason of its popularity is that it has a wide portfolio of products that meets the requirements of each and every type of investors.

HDFC Mutual Fund is governed by HDFC Asset Management Company Limited (AMC). The HDFC mutual fund was approved by SEBI in June 2000. Equity Funds, Balanced Funds, and Debt Funds are the mutual fund schemes offered by HDFC Mutual Fund. HDFC Mutual Fund has witnessed significant growth in the past few years. HDFC Asset Management Company Limited (AMC) is a Joint Venture concern between the large scale housing finance company HDFC and British investment firm Standard Life Investments Limited. The HDFC Asset Management Company Limited conducts the activities carried out by the HDFC Mutual Fund and manages the assets of various mutual fund schemes.

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1.2 Review of Literature:

Agrawal&Patidar (2006) has studied a research on overview of mutual fund activity in emerging markets and the study revealed that the performance is affected by the saving and investment habits of the people and at the second side the confidence and loyalty of the fund Manager and rewards- affects the performance of the MF industry in India.

Panwar&Madhumathi (2005) has studied on public-sector sponsored & private-sector sponsored mutual funds of varied net assets to investigate the differences in characteristics of assets held, portfolio diversification, and variable effects of diversification on investment performance for the period May, 2002 to May, 2005. The study found that public-sector sponsored funds do not differ significantly from private-sector sponsored funds in terms of mean returns%.

Jensen (1967) has studied a risk-adjusted measure of portfolio performance (Jensen’s alpha) that estimates how much a manager’s forecasting ability contributes to fund’s returns. Sharpe, William (1994) suggested the ‘Sharp- Ratio technique for the measurement for the performance measurement of the MF. Berkowitz et.al, (1997), supports the argument & states that, past fund performance influences individual investment decisions along with implying strong incentives for managers increase the performance of Mutual funds.

Statman (2000), has studied the SDAR of a fund portfolio is the excess return of the portfolio over the return of the benchmark index, where the portfolio is leveraged to have the benchmark index’s standard deviation.

KshamaFernandes (2003) has studied index fund implementation in India. In this paper, tracking error of index funds in India is

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measured .The consistency and level of tracking errors obtained by some well-run index fund suggests that it is possible to attain low levels of tracking error under Indian conditions. At the same time, there do seem to be periods where certain index funds appear to depart from the discipline of indexation.

Roy & Deb (2003) have studied conditional performance evaluation on a sample of 89 Indian MF schemes measuring with both unconditional and conditional form of CAPM model. The results suggest that the use of conditioning lagged information variables improves the performance of mutual fund schemes, causing alphas to shift towards right and reducing the number of negative timing coefficients.

Mishra, Rehman (2001) has studied MF performance using lower partial moment Risk from the lower partial moment is measured by taking into account only those states in which return is below a pre-specified “target rate” like risk-free rate. From the above reviews, the researcher identified the research gap which could be dealt in this study. To sum up the entire discussion on the reviewed literature we came to find out the performance is affected by the saving and investment habits of the people also at the second side the confidence, loyalty of the fund Manager and rewards- affects the performance of the mutual fund industry in India, furthermore the study found that public-sector sponsored funds do not differ significantly from private-sector sponsored funds in terms of mean returns, another study on a risk-adjusted measure of portfolio performance (Jensen’s alpha) that estimates that a manager’s forecasting ability contributes to fund’s returns, the index fund implementation in India and the performance evaluation on a sample of 89 Indian mutual funds schemes measuring with both unconditional and conditional form of CAPM model. Present study has design to compare the mutual funds schemes and their effect on customers as well as companies itself.

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1.3 Rational:

The main purpose of doing this project was to know about mutual fund and its functioning. This helps to know in details about mutual fund industry right from its inception stage, growth and future prospects. It also helps in understanding different schemes of mutual funds. Present study depends upon prominent funds in India and their schemes like equity, income, balance as well as the returns associated with those schemes. The present study will be done to ascertain the asset allocation, entry load, exit load, associated with the mutual funds. This would also help in understanding the benefits of mutual funds to investors.

There are various benefits to the customers and mutual fund Company like:

1. The customers can know about the profitable schemes of mutual funds.

2. The mutual fund companies can know the customer preference about the schemes.

3. That study will aware the people who are interested in investment.

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1.4 Objectives:

1. To study mutual fund schemes of Reliance mutual fund.

2. To study mutual fund schemes of HDFC mutual fund.

3. To study the awareness of mutual fund schemes by Reliance and HDFC.

4. To compare the awareness level of customers for Reliance and HDFC mutual fund.

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1.5 Profile:

Reliance Asset Management Company Limited (AMC)

Reliance Mutual Fund ('RMF'/ 'Mutual Fund') is one of India’s leading Mutual Funds, with Average Assets Under Management (AAUM) of Rs. 1, 01,259 Crores and an investor count of over 66.90 Lakh folios. (AAUM and

investor count as of Apr-June ‘11). Reliance Mutual Fund, a part of the Reliance Group,

is one of the fastest growing mutual funds in India. RMF offers investors a well-rounded

portfolio of products to meet varying investor requirements and has presence in 159 cities

across the country. Reliance Mutual Fund constantly endeavors to launch innovative

products and customer service initiatives to increase value to investors. Reliance Capital

Asset Management Limited (‘RCAM’) is the asset manager of Reliance Mutual Fund.

RCAM a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up

capital of RCAM, the balance paid up capital being held by minority shareholders.

Reliance Capital Ltd. is one of India’s leading and fastest growing private sector financial

services companies, and ranks among the top 3 private sector financial services and

banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset

management, life and general insurance, private equity and proprietary investments, stock

broking and other financial services.

Sponsor : Reliance Capital LimitedTrustee : Reliance Capital Trustee Co. LimitedInvestment Manager/ AMC

: Reliance Capital Asset Management Limited

Statutory Details : The Sponsor, the Trustee and the 7

Investment Manager are incorporated under the Companies Act 1956.

There are various types of fund in Reliance mutual funds following are:

1. Reliance Equity Fund:

INVESTMENT OBJECTIVEThe primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity & equity related securities of top 100 companies by market capitalization & of companies which are available in the derivatives segment from time to time and the secondary objective is to generate consistent returns by investing in debt and money market securities. The fund will have the flexibility to invest in a range of companies as mentioned above with an objective to maximize the returns, at the same time trying to minimize the risk by reasonable diversification. However there can be no assurance that the investment objective of the scheme will be realized, as actual market movements may be at variance with anticipated trends.

1. Reliance Income Fund:

INVESTMENT OBJECTIVEThe primary investment objective of the scheme is to generate optimal returns consistent with moderate levels of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt & Money Market Instruments.

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2. Reliance Tax Saver:

INVESTMENT OBJECTIVE The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. However, there can be no assurance that the scheme’s investment objective shall be achieved.

3. Reliance Monthly Income Plan:

INVESTMENT OBJECTIVE The primary investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unit holders and the secondary objective is growth of capital

4. Reliance Short Term Fund:

INVESTMENT OBJECTIVE The primary investment objective of the scheme is to generate stable returns for investors with a short term investment horizon by investing in fixed income securities of short term maturity.

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HDFC Asset Management Company Limited (AMC):

HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Back bay Reclamation, Church gate, Mumbai - 400 020. In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs.25.169 corer.

An Overview of HDFC Mutual Fund-

HDFC Mutual Fund has witnessed significant growth in the past few years. It is regulated by HDFC Asset Management Company Limited (AMC) which works as an Asset Management Company (AMC) for HDFC Mutual Fund. HDFC Asset Management Company Limited (AMC) is a Joint Venture concern between the large-scale housing finance company HDFC and British investment firm Standard Life Investments Limited.

The HDFC Asset Management Company Limited conducts the activities carried out by the HDFC Mutual Fund and manages the assets of various mutual fund schemes. The August 2006 report states that the fund has assets of Rs. 25,892 crores under Asset Management Company (AMC).

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HDFC Asset Management Company Limited (AMC) entered into an agreement with Zurich Insurance Company (ZIC) with the aim to develop the asset management business in India in the year 2003. Following to this, all the mutual fund schemes of Zurich Mutual Fund in India got transferred to HDFC Mutual Fund and gained the name of HDFC schemes.The present equity shareholding pattern of the AMC is as follows:

Particulars% of the paid up equity capitalHousing Development Finance Corporation Limited

59.98

Standard Life Investments Limited 39.99Other Shareholders (shares issued on exercise of Stock Options)

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Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of its overall strategy, had decided to divest its Asset Management business in India. The AMC had entered into an agreement with ZIC to acquire the said business, subject to necessary regulatory approvals.

The AMC is also providing portfolio management / advisory services and such activities are not in conflict with the activities of the Mutual Fund. The AMC has renewed its registration from SEBI vide Registration No. - PM / INP000000506 dated December 21, 2009 to act as a Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is valid from January 1, 2010 to December 31, 2012.

There are various types of fund in HDFC mutual funds following are:

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1.HDFC Equity Fund:

INVESTMENT OBJECTIVEThe investment objective of the Scheme is to achieve capital appreciation.

2.HDFC Income Fund:

INVESTMENT OBJECTIVEThe primary objective of the Scheme is to optimize returns while maintaining a balance of safety, yield and liquidity.

3.HDFC Tax Saver:

INVESTMENT OBJECTIVE The investment objective of the Scheme is to achieve long term growth of capital.

4.HDFC Monthly Income Plan:

INVESTMENT OBJECTIVEThe primary objective of Scheme is to generate regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme`s assets in equity and equity related instruments.

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However, there can be no assurance that the investment objective of the Scheme will be achieved.

5.HDFC Short Term Fund:

INVESTMENT OBJECTIVEThe primary objective of the HDFC Short Term Plan is to generate regular income through investment in debt securities and money market instruments.

2.METHODOLOGY

2.1 Hypotheses:

Main Hypotheses 1

H01: customers are not aware about the mutual funds of HDFC.To test the hypotheses following sub hypotheses are created:H01a: customers of HDFC are not having sufficient knowledge about the mutual funds.

H01b: Customers of HDFC are not aware about risk related information.

H01c: Customers of HDFC are not aware about the norms of the mutual fund schemes.

H01d: Customers of HDFC are not aware about the documentation of the mutual fund schemes.

H01e: Customers of HDFC are not aware about the formalities of the mutual fund schemes.

H01f: HDFC mutual fund's scheme not provides better returns.

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H01g: HDFC mutual fund house is not the better fund house in the term of products.

H01h: The portfolio of HDFC mutual fund schemes is not better.

Main hypotheses 2:

H02: customers are not aware about the mutual funds of Reliance.To test the hypotheses following sub hypotheses are created:H02a: customers of Reliance are not having sufficient knowledge about the mutual funds.

H02b: Customers of Reliance are not aware about risk related information.

H02c: Customers of Reliance are not aware about the norms of the mutual fund schemes.

H02d: Customers of Reliance are not aware about the documentation of the mutual fund schemes.

H02e: Customers of Reliance are not aware about the formalities of the mutual fund schemes.

H02f: Reliance mutual fund's scheme not provides better returns.

H02g: Reliance mutual fund house is not the better fund house in the term of products.

H02h: The portfolio of HDFC mutual fund schemes is not better.

Main Hypotheses 3

H03: There is no significant difference between awareness of Reliance and HDFC.

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H03a: There is no significant difference in awareness level of customers about risk related information of the Reliance and HDFC mutual funds schemes.

H03b: There is no significant difference in understanding the norms of the Reliance and HDFC mutual funds schemes.

H03c: There is no significant difference in understanding the documentation of the Reliance and HDFC mutual funds schemes.

H03d: There is no significant difference in understanding the formalities of the Reliance and HDFC mutual funds schemes.

2.2 tools applied for testing hypotheses:

T test have been used to testing hypotheses.

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3. Data collected

3.1 Data collection techniques:

The research is based on primary data which is collected by questionnaire and secondary data is collected by internet.

3.2 Population and sample:

All the customers who invested in mutual funds in Indore city.

3.3 Sampling technique:

Non-probability judgmental sampling has been used.

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4. Empirical Analysis

4.1 Data Analysis Techniques:

T test have been used to analyses the data.

4.2 Results & Findings:

Frequency Table

Table 1.1 I have sufficient knowledge about the mutual funds.

Frequency

Percent

Valid Percent

Cumulative Percent

Valid strongly disagree 5 6.8 6.8 6.8disagree 7 9.6 9.6 16.4neutral 20 27.4 27.4 43.8agree 32 43.8 43.8 87.7

strongly agree 9 12.3 12.3 100.0Total 73 100.0 100.0

Interpretation: From the data we can conclude that 56.1% people have sufficient knowledge about the mutual funds and 27.4% people don’t have proper knowledge about the mutual funds.

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Table 1.2 I am interested to invest in mutual funds.

Frequency

Percent

Valid Percent

Cumulative Percent



Interpretation: From the data we can conclude that 57.5% people are interested to invest in mutual funds and 28.8% people have no interest to invest in mutual funds.

Table 1.3 I am interested to invest in HDFC mutual fund scheme.

Frequency

Percent

Valid Percent

Cumulative Percent



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Interpretation: From the data we can conclude that 24.7% are interested to invest in HDFC mutual fund scheme and 42.5% are not interested to invest in HDFC mutual fund scheme.

Table 1.4 I am interested to invest in Reliance mutual fund scheme.

Frequency Percent

Valid Percent

Cumulative Percent

Valid strongly disagre

e6 8.2 8.2 8.2

disagree 20 27.4 27.4 35.6

neutral 29 39.7 39.7 75.3agree 16 21.9 21.9 97.3


Interpretation: From the data we can conclude that 24.6% are interested to invest in Reliance mutual fund scheme and 42.5% are not interested to invest in Reliance mutual fund scheme.

Table 1.5 I come to know about this company's mutual fund schemes from friends & peers or family members & relative.

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Frequency

Percent

Valid Percent

Cumulative Percent



Interpretation: From the data we can conclude that 43.8% people come to know about this company's mutual fund schemes from friends &

peers or family members & relative.

Table 1.6 I come to know about this company's mutual fund schemes from company's employees.

Interpretation: From the data we can conclude that 26% people come to know about this company's mutual fund schemes from company's employees.

Table 1.7 I am interested to invest in mutual fund's schemes for long duration (more than one year).

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Frequency

Percent

Valid Percent

Cumulative Percent



Frequency

Percent

Valid Percent

Cumulative Percent



Interpretation: From the data we can conclude that 58.9% people are interested to invest in mutual fund's schemes for long duration (more than one year).

Table 1.8 I am interested to invest in mutual fund's schemes for short duration (one year or less than one year).

Frequency Percent

Valid Percent

Cumulative Percent



Interpretation: From the data we can conclude that 15.1% people are interested to invest in mutual fund's schemes for short duration (one year or less than one year).

Table 1.9 My risk profile is moderator.

FrequencyPercen

tValid

PercentCumulative

PercentValid strongly

disagree 4 5.5 5.5 5.5Disagree 16 21.9 21.9 27.4neutral 27 37.0 37.0 64.4agree 22 30.1 30.1 94.5


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Interpretation: From the data we can conclude that 35.6% people have moderator risk profile.

Table 1.10 My risk profile is innovator.

FrequencyPercen

tValid

PercentCumulative


disagree 6 8.2 8.2 8.2disagree 13 17.8 17.8 26.0neutral 29 39.7 39.7 65.8agree 21 28.8 28.8 94.5


Interpretation: From the data we can conclude that 34.3% people have innovator risk profile.

Table 1.11 My risk profile is risk adverse.

Frequency PercentValid

PercentCumulative




Interpretation: From the data we can conclude that 27.4% people have adverse risk profile.

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Table 1.12 Mutual fund is always risk free.

Frequency

Percent

Valid Percent

Cumulative Percent

Valid strongly disagree 17 23.3 23.3 23.3disagree 20 27.4 27.4 50.7neutral 29 39.7 39.7 90.4agree 7 9.6 9.6 100.0Total 73 100.0 100.0

Interpretation: From the data we can conclude that 49.3% people think that mutual fund is always risk free.

Table 1.13 I feel the company norms are easy to understand.

Frequency

Percent

Valid Percent

Cumulative Percent



Interpretation: From the data we can conclude that 26% people feel that the norms of the company are easy to understand.

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Table 1.14 I feel the company documentation is easy to understand.

Interpretation: From the data we can conclude that 24.6% people feel that the company’s documentation is easy to understand.

Table 1.15 I feel the company formalities are easy to understand.

Interpretation: From the data we can conclude that 26.1% people feel that the company’s formalities are easy to understand.

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Frequency

Percent

Valid Percen

tCumulative Percent



Frequency

Percent

Valid Percent

Cumulative Percent



Table 1.16 HDFC mutual fund's scheme provides better returns.

Frequency Percent

Valid Percent

Cumulative Percent



Interpretation: From the data we can conclude that 27.4% people think HDFC mutual fund's scheme provides better returns.

Table 1.17 Reliance mutual fund's scheme provides better returns.

Frequency Percent

Valid Percent

Cumulative Percent



Interpretation: From the data we can conclude that 21.9% people think Reliance mutual fund's scheme provides better returns.

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Table 1.18 Reliance mutual fund house is the better fund house in the terms of products.

FrequencyPercen

tValid

PercentCumulative




Interpretation: From the data we can conclude that 27.4% people think that Reliance mutual fund house is the better fund house in the terms of products.

Table 1.19 HDFC mutual fund house is the better fund house in the term of products.

FrequencyPercen

tValid

PercentCumulative




Interpretation: From the data we can conclude that 31.5% people think that HDFC mutual fund house is the better fund house in the term of products.

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Table 1.20 I would like to exchange my investment with another between HDFC & Reliance.

Frequency Percent

Valid Percent

Cumulative Percent

Valid strongly disagree 11 15.1 15.1 15.1disagree 14 19.2 19.2 34.2neutral 38 52.1 52.1 86.3agree 10 13.7 13.7 100.0Total 73 100.0 100.0

Interpretation: From the data we can conclude that 65.8% people like to exchange their investment with another between HDFC & Reliance.

Table 1.21 The portfolio of HDFC mutual fund schemes is better.

Frequency Percent

Valid Percent

Cumulative Percent



Interpretation: From the data we can conclude that 32.8% people think that the portfolio of HDFC mutual fund schemes is better than Reliance mutual fund schemes.

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Table 1.22 The portfolio of Reliance mutual fund schemes is better.

Frequency Percent

Valid Percent

Cumulative Percent



Interpretation: From the data we can conclude that 21.9% people think that the portfolio of Reliance mutual fund schemes is better than HDFC mutual fund schemes.

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T-Test for HDFC Mutual Fund Company:

Table 2.1 One-Sample Statistics

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N MeanStd.

Deviation

Std. Error Mean

I have sufficient knowledge about the mutual funds.

36 3.4722 .90982 .15164

Mutual fund is always risk free. 36 2.1111 .97915 .16319I feel the company norms are easy to understand.

36 2.8333 1.20712 .20119

I feel the company documentation is easy to understand.

36 2.7222 1.03126 .17188

I feel the company formalities are easy to understand.

36 2.8889 1.00791 .16798

HDFC mutual fund's scheme provides better returns.

36 3.2778 .88192 .14699

HDFC mutual fund house is the better fund house in the term of products.

36 3.2778 .74108 .12351

The portfolio of HDFC mutual fund schemes is better.

36 3.1389 .89929 .14988

Test Value = 3

t dfSig. (2-tailed)

Mean Differen

ce

95% Confidence Interval of the

Difference

Lower UpperI have sufficient knowledge about the mutual funds. 3.114 35 .004 .47222 .1644 .7801

Mutual fund is always risk free. -5.447 35 .000 -.88889 -

1.2202 -.5576

I feel the company norms are easy to understand.

-.828 35 .413 -.16667 -.5751 .2418


-1.616 35 .115 -.27778 -.6267 .0711


-.661 35 .513 -.11111 -.4521 .2299

HDFC mutual fund's scheme provides better returns.

1.890 35 .067 .27778 -.0206 .5762

HDFC mutual fund house is the better fund house in the term of products.

2.249 35 .031 .27778 .0270 .5285

The portfolio of HDFC mutual fund schemes is better. .927 35 .360 .13889 -.1654 .4432

Table 3.1 One Sample Test

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INTERPRATION:

Main hypotheses 1:1) As p < α, so null hypothesis rejected and alternative hypothesis

accepted. Thus we can interpret customers of HDFC have the sufficient knowledge about the mutual funds. Also the average value of responses is 3.47, which shows that people are aware about the mutual funds.

2) As p < α, so null hypothesis rejected and alternative hypothesis accepted. Thus we can interpret customers of HDFC are aware about the risk related information. Also the average value of responses is 2.11, which shows that people are aware about the risk related information. That mutual fund is not always risk free.

3) As p > α, we cannot reject null hypothesis. Thus we can interpret customers of HDFC are not aware about the norms of the mutual fund scheme. Also the average value of responses is 2.83 which is close to 3 indicates that average response for awareness is neutral.

4) As p > α, we cannot reject null hypothesis. Thus we can interpret customers of HDFC are not aware about the documentation of the mutual fund schemes. Also the average value of responses is 2.72 which is close to 3 indicates that average response for awareness is neutral.

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5) As p > α, we cannot reject null hypothesis. Thus we can interpret customers of HDFC are not aware about the formalities of the mutual fund schemes. Also the average value of responses is 2.88 which is close to 3 indicates that average response for awareness is neutral.

6) As p > α, we cannot reject null hypothesis. Thus we can interpret customers of HDFCmutual fund's scheme not provides better returns. Also the average value of responses is 3.27, which is close to 3 indicates that average response for awareness is neutral.

7) As p < α, so null hypothesis rejected and alternative hypothesis accepted. Thus we can interpret that the HDFC mutual fund house is the better fund house in the term of products. Also the average value of responses is 3.27, which shows that people are aware about the products of the HDFC mutual funds.

8) As p > α, we cannot reject null hypothesis. Thus we can interpret that the portfolio of HDFC mutual fund schemes is not better. Also the average value of responses is 3.13, which is close to 3 indicates that average response for awareness is neutral.

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T-Test for Reliance Mutual Fund Company:


N MeanStd.

Deviation

Std. Error Mean

I have efficiently knowledge about the mutual funds.

37 3.4324 1.19118 .19583

Mutual fund is always risk free. 37 2.5946 .86472 .14216I feel the company norms are easy to understand.

37 2.5135 1.07035 .17596


37 2.7027 1.07664 .17700


37 2.8108 .93802 .15421

Reliance mutual fund's scheme provides better returns.

37 3.1081 .84274 .13855

Reliance mutual fund house is the better fund house in the terms of products.

37 3.1622 .86646 .14244

The portfolio of Reliance mutual fund schemes is better.

37 3.0270 .92756 .15249

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Test Value = 3

t DfSig. (2-tailed)

Mean Difference


Difference

Lower UpperI have efficiently knowledge about the mutual funds. 2.208 36 .034 .43243 .0353 .8296

Mutual fund is always risk free. -2.852 36 .007 -.40541 -.6937 -.1171

I feel the company norms are easy to understand. -2.765 36 .009 -.48649 -.8434 -.1296

I feel the company documentation is easy to understand. -1.680 36 .102 -.29730 -.6563 .0617

I feel the company formalities are easy to understand. -1.227 36 .228 -.18919 -.5019 .1236

Reliance mutual fund's scheme provides better returns. .780 36 .440 .10811 -.1729 .3891

Reliance mutual fund house is the better fund house in the terms of products. 1.138 36 .262 .16216 -.1267 .4511

The portfolio of Reliance mutual fund schemes is better. .177 36 .860 .02703 -.2822 .3363

Table 3.2 One sample Test

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INTERPRATION:

Main hypotheses 2:9) As p < α, so null hypothesis rejected and alternative hypothesis

accepted. Thus we can interpret customers of Reliance have the sufficient knowledge about the mutual funds. Also the average value of responses is 3.43, which shows that people are aware about the mutual funds.

10) As p < α, so null hypothesis rejected and alternative hypothesis accepted. Thus we can interpret customers of Reliance are aware about the risk related information. Also the average value of responses is 2.59, which shows that people are aware about the risk related information. That mutual fund is not always risk free.

11) As p < α, so null hypothesis rejected and alternative hypothesis accepted. Thus we can interpret customers of Reliance are aware about norms of the mutual fund schemes. Also the average value of responses is 3.43, which shows that people are aware about the mutual funds.

12) As p > α, we cannot reject null hypothesis. Thus we can interpret customers of Reliance are not aware about the documentation of the mutual fund schemes. Also the average value of responses is 2.70 which is close to 3 indicates that average response for awareness is neutral.

13) As p > α, we cannot reject null hypothesis. Thus we can interpret customers of Reliance are not aware about the

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formalities of the mutual fund schemes. Also the average value of responses is 2.81 which is close to 3 indicates that average response for awareness is neutral.

14) As p > α, we cannot reject null hypothesis. Thus we can interpret customers of Reliancemutual fund's scheme not provides better returns. Also the average value of responses is 3.10 which is close to 3 indicates that average response for awareness is neutral.

15) As p > α, we cannot reject null hypothesis. Thus we can interpret that the Reliance mutual fund house is not the better fund house in the term of products. Also the average value of responses is 3.16 which is close to 3 indicates that average response for awareness is neutral.

16) As p > α, we cannot reject null hypothesis. Thus we can interpret that the portfolio of Reliance mutual fund schemes is not better. Also the average value of responses is 3.02 which is close to 3 indicates that average response for awareness is neutral.

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Comparative analysis of Reliance & HDFC Mutual Fund Company:


One-Sample Statistics

Table 3.3 One-Sample Test

Test Value = 3

t df Sig. (2-tailed)Mean

Difference


Difference

Lower UpperMutual fund is always risk free. -5.801 72 .000 -.64384 -.8651 -.4226

I feel the company norms are easy to understand.

-2.457 72 .016 -.32877 -.5955 -.0620

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N Mean Std. DeviationStd. Error

MeanMutual fund is always risk free. 73 2.3562 .94824 .11098

I feel the company norms are easy to understand. 73 2.6712 1.14327 .13381

I feel the company documentation is easy to understand. 73 2.7123 1.04721 .12257

I feel the company formalities are easy to understand. 73 2.8493 .96712 .11319

I feel the company documentation is easy to understand. -2.347 72 .022 -.28767 -.5320 -.0433

I feel the company formalities are easy to understand. -1.331 72 .187 -.15068 -.3763 .0750

INTERPRETATION:

Main Hypotheses:

1. As p < α, so null hypothesis rejected and alternative hypothesis accepted. Thus we can interpret that there is significant difference in awareness level of customers about risk related information of the Reliance and HDFC mutual funds schemes. Also the average value of responses is 2.35, which shows that people are aware about the risk related information.

2. As p < α, so null hypothesis rejected and alternative hypothesis accepted. Thus we can interpret There is significant difference in understanding the norms of the Reliance and HDFC mutual funds schemes. Also the average value of responses is 2.67, which shows that people are aware about the mutual funds.

3. As p < α, so null hypothesis rejected and alternative hypothesis accepted. Thus we can interpret There is significant difference in understanding the documentation of the Reliance and HDFC mutual funds schemes. Also the average value of responses is

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2.71, which shows that people are aware about the mutual funds.

4. As p > α, we cannot reject null hypothesis. Thus we can interpret there is no significant difference in understanding the formalities of the Reliance and HDFC mutual funds schemes. Also the average value of responses is 2.84 which show that the formalities of both the company is almost same.

4.3 Discussion on Findings

After a comprehensive survey I have observed many things and according to the observation the following findings have been pointed out. The key findings are as follows:

1. Followings are the findings for HDFC mutual fund

The customers respond positively and said that they aware about the mutual funds schemes but when we asked specific questions about the norms, documentation, and formalities about the mutual fund schemes the customers are not aware about it. So its shows that customers do not proper information about the mutual fund schemes.

Customers of the HDFC mutual fund company are also not aware about the mutual fund’s position in the market they also don’t have proper knowledge about the returns of the schemes.

We also found that the customers of the HDFC are not aware about the product of HDFC mutual fund company as their response is neutral whether HDFC is better fund house or not.

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2. The finding on the basis of Reliance customers are following:

The customers respond positively and said that they aware about the mutual funds schemes but when we asked specific questions about the documentation and formalities about the mutual fund schemes the customers are not aware about it but customers are aware about the norms of the schemes. So its shows that customers have not proper information about the mutual fund schemes.

Customers of the Reliance mutual fund company are also not aware about the mutual fund’s position in the market they also don’t have proper knowledge about the returns of the schemes.

we also found that the customers of the Reliance are not aware about the product of Reliance mutual fund company as their response is natural whether Reliance is better fund house or not.

3. The finding on the basis of comparison between Reliance and HDFC mutualFunds company’s customers following results are found:

The awareness level of Reliance and HDFC mutual funds schemes related to risk related information, documentation, norms are different but the awareness level for the formalities related information is same for both the companies.

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5. Recommendations

The study offer recommendations for Reliance and HDFC Mutual Fund Company to consider in maximizing the awareness of mutual fund schemes in the market: The companies should give the knowledge regarding mutual fund through various sources like more advertisement, TV programs etc. because people should know benefits and information about mutual funds. Reliance and HDFC mutual fund companies should give proper training to their employees so they can give full information about the schemes to the customers about documentation, norms, formalities etc. The companies should also attract the low income people by showing them the benefits of the liquidity funds for the short term to attract them. The companies should organize seminar to give information about mutual fund and should distribute brochures having detail of schemes of mutual funds. The companies should also aware the people about the AMFI exam and should motivate them to be financial adviser to give more information to the customers.

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People source their information mainly from agents, bank distributors or newspapers, according to the report, which found that these channels are “as much a part of the problem as they are a part of the solution”. So companies should make those channels strong for providing information about mutual fund schemes.

6. ConclusionThe present study conducted to measures the awareness level of customer for mutual fund schemes. The study has been conducted for two major mutual fund companies. The study shows that people thinks that they are having compete information and awareness about the products and procedures related with mutual funds but this is not the case because customers are unaware about risk related information and documentation procedure. Also there is a difference in awareness level for HDFC customers and reliance customers on some aspects of awareness.As mutual funds having good options, schemes and scope, so the mutual fund companies can grow by creating the awareness among people. It is also good for those who want to make their future in it.

As there is lesser no. of people investing in the mutual fund in comparison of other instruments of the investment L.I.C, post. Saving a/c etc. so there is a good chance of its growing. Even mutual fund is also having the product as substitute of it. So the industry can get the benefit of it.

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The industry cans aware more investor to invest in mutual fund. They can do these through seminars, advertisement etc. they can also increase their sale by collaborating with many banks. They can also make more advisors by giving them more commission.

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QUESTIONAIREDear respondents,

As a part of my MBA curriculum I am doing my Major Research Project. The topic is “AWARENESS OF MUTUAL FUNDS SCHEMES: A COMPARETIVE ANALYSIS OF RELIANCE AND HDFC AT INDORE”. I assure you that information will be used only for academic purpose.

Name: …………………………… Gender……………………..Company …………………………………………………………………..Monthly Salary a) below 20000 b) 20000- 40000 c) Above 45000Qualification a) PG b) Graduate c) Specialization in banking.

Please tick one of the numbers on 1 to 5 scales to indicate your response. The level of agreement being:-strongly disagree = 1. disagree = 2. neutral = 3. agree = 4. strongly agree = 5.Q. Which company does you invested? 1. Reliance 2. HDFC

S.no

Questions 1 2 3 4 5

1 I have sufficiently knowledge about the mutual funds.2 I am interested to invest in mutual funds.3 I am interested to invest in HDFC mutual fund scheme.4 I am interested to invest in Reliance mutual fund scheme.5 I come to know about this company’s mutual fund schemes from Friends &

peers or Family members & relatives.6 I come to know about this company’s mutual fund schemes from Company’s

employees.7 I am interested to invest in mutual fund’s scheme for long duration (more than

one year).8 I am interested to invest in mutual fund’s scheme for short duration (one year or

less than one year).

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9 My risk profile is moderator.10 My risk profile is innovator.11 My risk profile is Risk adverse.12 Mutual fund is always risk free.13 I feel the company norms are easy to understand.14 I feel the company documentation is easy to understand.15 I feel the company formalities are easy to understand.16 HDFC mutual fund’s scheme provides better returns.17 Reliance mutual fund’s scheme provides better returns.18 Reliance mutual fund house is the better fund house in the terms of products.19 HDFC mutual fund house is the better fund house in the terms of products.20 The portfolio of HDFC mutual fund schemes is better.21 The portfolio of Reliance mutual fund schemes is better.

Bibliography/ References Agrawal Deepak (2006) , “Measuring Performance of Indian

Mutual Funds”, LNCT-MER Prabandhan&Taqniki, Vol. I (1) Sept 2007, pp. 179-185.

Bijan Roy, SaiketSovan Deb (2003), “The conditional performance of Indian mutualfunds: an empirical study”, Working paper, http://papers.ssrn.com/sol3/papers.cfm? abstract_id=593723, Accessed on Aug. 22, 2009.

KshamaFernandes , “Evaluating index fund implementation in India”, Working paper, http://www.nseindia.com/content/research/Paper66.pdf.Michael C. Jensen (1967), “ The Performance of Mutual Funds in the period 1945-1964”,Journal of Finance, Vol. 23, No. 2, pp. 389-416.

Mishra, Mahmud Rahman, (2001) “Measuring mutual fund performance using lowerpartial moment”, Global Business Trends, Contemporary Readings , 2001 edition.

SharadPanwar& Dr. R. Madhumathi ( 2005), “Characteristics & performance evaluationof selected Mutual Funds in India” , 9thIndian Institute of Capital Market Conference,Mumbai.

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http://www.nseindia.com/content/research/Paper66.pdf

http://papers.ssrn.com/sol3/papers.cfm

Sharpe, W.F. ”The Sharpe ratio”, Journal of Portfolio Management 21, 1994,pp49-59.

S. Narayan Rao , M. Ravindran ,”Performance Evaluation of Indian Mutual Funds”,Working paper , http://papers.ssrn.com/sol3/papers.cfm?abstract_id=433100.

Statman , M. ,”Socially responsible mutual funds”, Financial Analysts Journal 56,2000, pp30-38.

E- References

www.hdfcfund.com

www.reliancemutual.com

www.livemint.com/2008/08/04231928/Low-awareness-of-mutual-funds

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