“A STUDY ON CUSTOMER PERCEPTION IN MUTUAL FUND

AT

VALUE 2 MONEY PVT. LTD.”

DONE BY

K.RAVIKAMAL

(201011028)

A PROJECT REPORT

Submitted to the

FACULTY OF MANAGEMENT SCIENCE

In partial fulfillment of the requirements

For the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY

CHENNAI - 25

AUGUST 2011

Rajalakshmi Institute of Technology,

Irulapalayam, Kuthambakkam Post, Chennai – 600 124.

Phone Number: 3718 1600/01

BONAFIDE CERTIFICATE

Certified that this project report titled “A STUDY ON CUSTOMER PERCEPTION IN

MUTUAL FUND AT VALUE 2 MONEY PVT. LTD.” is the bonafide work of

K.RAVIKAMAL who carried out the research under my supervision. Certified further, that to

the best of my knowledge the work reported here in does not form part of any other project

report or dissertation on the basis of which a degree of award was conferred on earlier occasion

on this or any other candidate.

Signature of HOD Signature of Faculty Guide Mrs.Shanthi Nachiappan Mrs.M.C.Janet Glory

HOD Lecturer

Dept. of Management studies Dept. of Management studies

Rajalakshmi Institute of Technology Rajalakshmi Institute of Technology

Kuthambakkam KuthambakkamDate: Date:

Signature of the Internal Examiner Signature of the External Examiner

DECLARATION

I, K.RAVIKAMAL hereby declare that the Project work entitled “A STUDY ON

CUSTOMER PERCEPTION IN MUTUAL FUND AT VALUE 2 MONEY PVT. LTD.”

submitted to the Anna University in partial fulfillment of the requirements for the Degree in

MASTER OF BUSINESS ADMINISTRATION is an authentic record of work carried out by

me under the guidance of Mrs. M C Janet Glory, Lecturer, MBA Department, Rajalakshmi

Institute of Technology.

(K.RAVIKAMAL)

ACKNOWLEDGEMENT

I would like to express my sincere thanks to our Chairman. (Mrs.) Thangam

Meganathan, who provided me an opportunity to study in this esteemed institution.

I wish to express my gratitude to our Principal Dr.E.N.Ganesh, of Rajalakshmi Institute

of Technology for giving the opportunity to do this project work.

I wish to take this opportunity to express my deep sense of gratitude to Dr.Mrs.Shanthi

Nachiappan, Head of the department of MBA, Rajalakshmi Institute of Technology, for his

valuable guidance in this endeavour. He has been a constant source of inspiration to prepare this

project efficiently.

I express my heartiest thanks to Mr.Dharmar (Marketing manager) (Value 2 Money Pvt. Ltd.)

I thank Mrs. M C Janet Glory, Lecturer MBA department, Rajalakshmi Institute of

Technology, for her support and motivation throughout this research.

Finally, it is my foremost duty to express my gratitude to my parents and friends for their moral support and encouragement without which it would not be a complete one.

ABSTRACT

The project entitled with “A STUDY ON CUSTOMER PERCEPTION IN MUTUAL

FUND AT VALUE 2 MONEY PVT. LTD.” is determine the customer perception.

An organizational study was conducted at value 2 money pvt.Ltd. It was found that

company last for 1 year and render financial services to the customer by providing various such

as:

Mutual fund Investment Insurance Equity Post office scheme, etc.

The company commencement of 60 employees and four departments are

HR Team, Marketing Team, MIS Team, Equity and Retail Team.

TABLE OF CONTENTS

Chapter No. Description Page No.

Title Page i

Bonafide certificate ii

Organization certificate iii

Declaration iv

Acknowledgement v

Abstract vi

Table of Contents vii

List of Tables viii

List of Figures x

1) INTRODUCTION

1.1 INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS ASPECTS

1

1.2 NEED FOR THE STUDY 2

1.3 OBJECTIVES FOR THE STUDY

1.4 SCOPE FOR THE STUDY

2) REVIEW OF LITERATURE

2.1 WHAT IS CUSTOMER PERCEPTION

2.2 WHAT IS PERCEPTION

2.3 DEFINITON

2.4 REVIEW OF LITERATURE

3) ORGANIZATIONAL PROFILE

3.1 INDUSTRY PROFILE

3.2 COMPANY PROFILE

3.3 PRODUCT PROFILE

4) RESEARCH METHODOLOGY

4.1 RESERACH DESIGN

4.2 DATA COLLECTED

4.3 PRIMARY DATA

4.4 SECONDARY DATA

4.5 SAMPLE TECHNIQUE

4.6 SAMPLE DESIGN

4.7 SAMPLE AREA

4.8 SAMPLE SIZE

4.9 FIELD WORK

4.10 PERIOD OF SURVEY

4.11 DATA ANALYSIS

4.12 PERCENTAGE ANALYSIS

4.13 CHI-SQUARE TEST

4.14 ANOVA

4.15 REGRESSION

5) DATA ANALYSIS AND INTERPRETION

5.1 ANALYSIS USING PERCENTAGE METHOD

5.1.1 Classification of the respondents based on their MARITAL STATUS

5.1.2 Classification of the respondents based on their GENDER

5.1.3 Classification of the respondents based on their OCCUPATION

5.1.4 Classification of the Respondents based on their EDUCATIONAL QUALIFICATION

5.1.5 Classification of the Respondents based on their PERCENTAGE OF INCOME:

5.1.6 Classification of the Respondents based on their MUTUAL FUND IN FINANCIAL INVESTMENT:

5.1.7 Classification of the Respondents based on their Mutual Fund Companies:

5.1.8 Classification of the Respondents based on their RATE OF RETURN

5.1.9 Classification of the Respondents based on their INVESTED:

5.1.10 Classification of the Respondents based on their AWARENESS:

5.1.11 Classification of the Respondents based on their INCOME PER ANNUM:

5.1.12 Classification of the Respondents based on their INVESTMENT:

5.1.13 Classification of the Respondents based on their FACTORS ARE CONSIDERED FROM INVESTMENT:

5.1.14 Classification of the Respondents based on their HAVE NOT INVESTED

5.1.15 Classification of the Respondents based on their KNOW ABOUT THE FUND:

5.1.16 Classification of the Respondents based on their TENURE OF INVESTMENT:

5.1.17 Classification of the Respondents based on their PREFERRED OPTION FOR GETTING RETURN:

6) FINDINGS OF THE STUDY, SUGGESTION AND

RECOMMENDATION

6.1 FINDINGS:

6.2 SUGGESTIONS AND RECOMMENDATIONS:

7) CONCLUSION

8) LIMITATION OF THE STUDY

9) BIBLOGRAPHY

10) ANNEXURE

CHAPTER I

1. INTRODUCTION

A mutual fund is a professionally managed investment company that combines the

money of many individuals and invests this “pooled” money in a wide variety of different

securities.

Mutual fund is by pooling the money of individuals that mutual funds are able to provide

the diversification and money management that were once reserved only for the wealthy.

Professional money managers take this pool of money and invest it in a wide variety of

stocks, bonds, or other securities depending on the investment objective, or goal, of the particular

fund. It is the investment objective of the fund that guides the manager in selecting the various

securities for the fund.

It is the investment objective of the mutual fund that also guides the investor on which

funds to invest in. since different investors have different objectives, there are a number of

different kinds of mutual funds, i.e., some mutual funds may provide monthly income while

others seek long-term capital appreciation.

Mutual funds can be classified according to their investment objective. Some of the

classifications include money market funds, growth funds, balanced funds, income funds, and

many others. Wealthy individuals and institutions have always had access to professional money

managers. They also have the wherewithal to properly diversify their holdings.

What is mutual fund?

A mutual fund is a professionally managed type of collective investment that pools money from many investors to buy stocks, bonds short-term money market instruments, and/or other securities.

TYPES

Open-end funds Close-end funds

TYPES OF MUTUAL FUND SCHEMES

BY STRUCTURE

Open-ended schemes Close-ended schemes Interval scheme

BY INVESTMENT OBJECTIVE

Growth schemes Income schemes Balanced schemes Money market schemes

OTHER SCHEMES

Tax saving schemes Special schemes Index schemes Sector specific schemes.

LIST FUNDS OF MUTUAL IN INDIA

AMC Reliance Mutual Funds HDFC ABN Amro AIG Bank of Baroda Canara Bank ICICI Prudential LIC JP Morgan Kotak Mahindra JM Financial Morgan Stanley SBI Sahara Mutual Funds Sundaram BNP Paribas Taurus Mutual Funds Tata

UTI Standard Chartered Birla Sun Life DSP Merrill Lynch DBS Chola Mandalam

ADVANTAGES OF MUTUAL FUND

Portfolio Diversification Professional management Reduction/ diversification of Risk Liquidity Flexibility & Convenience Reduction in transaction cost Safety of regulated environment Choice of schemes Transparency

DISADVANTAGE OF MUTUAL FUND

o No control over cost in the Hands of an Investor

o No tailor-made Portfolios

o Managing a Portfolio Funds

o Difficulty in selecting a Suitable Fund Scheme

MUTUAL FUND OPERATION FLOW CHART

Diversified, Professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry.

In the past decade, Indian mutual fund industry had seen a dramatic improvement, both quality wise as well as quantity wise. Before , the monopoly of the market had seen an ending phase, the Assets Under Management (AUM) was Rs.67bn. The private sector entry to the fund family rose the AUM to Rs.470 billion I n March 1993 and till April 2004, it reached the height.

Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking industry.

The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly abreast

of selling. The mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under.

First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launced by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6700 crores of assets under management.

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

Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by canbank Mutual fund (DEC 87), Punjab National Bank Mutual Fund ( Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47004 as assets under management.

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

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

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual fund setting up funds in India and also the industry has witnessed several mergers and acquistions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs.121805 crores. The Unit Trust of India with Rs.44541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase- since February 2003

This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the Specific 1 Undertaking of the Unit Trust of India with AUM of Rs.29835 crores (as on January 2003). The specified undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76000 crores of AUM and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

1.2 NEED FOR THE STUDY

To study that how effectively the service is provided by the VALUE 2 MONEY ADVISOR PVT LTD.

The study aims at bringing out the customer perception VALUE 2 MONEY ADVISOR PVT LTD.

To understand the areas in which customers are dissatisfied and give suggestion to minimize dissatisfaction.

1.3 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE

To find the customer perception on the mutual fund.

SECONDARY OBJECTIVE

To find out the customers reason towards investment in mutual fund.

To study the consumer awareness regarding mutual funds.

To study the working of mutual fund in India and the financial advisors in the

mutual fund.

To identify major market players offering mutual fund.

1.4 SCOPE OF THE STUDY

The scope of the study is confined to value 2 money advisor pvt ltd. with respect to the

customers in all levels.

The researcher gain and attain knowledge in undertaking and performing projects. It has

helped the researcher to observe and analyze the perception level of the customers with

regards to various factors

The organization could understand the main factors that influence the customer perception.

The organization could also learn the expectations of the customer’s suggestion.

CHAPTER-II

2. REVIEW OF LITERATURE

2.1 What is the customer perception?

Perceptions vary from person to person. Different people perceive different things

about the same situation. But more than that, we assign different meanings to what we

perceive. And the meanings might change for a certain person. One might change one's

perspective or simply make things mean something else.

2.2 What Is PERCEPTION?

Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. However, what one perceives can be substantially different from objective reality. It need not be, but there is often disagreement. For example, it’s possible that all employees in a firm may view it as a great place to work- favorable working conditions, interesting job assignments, good pay, an understanding and responsible management – but , as most of us know, it’s very unusual to find such agreement.

2.3Definition:

The process by which people translate sensory impressions into a coherent and

unified view of the world around them. Though necessarily based on incomplete and

unverified (or unreliable) information, perception is equated with reality for most

practical purposes and guides human behaviour in general.

2.4 REVIEW OF LITERATURE

1.TITLE:MANAGEMENT TEAM STRUCTURE AND MUTUAL FUND PERFORMANCE

Author : Iordanis Karagiannidis Michigan State University - Department of Finance

Source: Journal of International Financial Markets, Institutions and Money, Vol. 20, No. 2, 2010

Abstract:      We investigate the relationship between performance and portfolio management team structure of open-end mutual funds during 1997-2004. We first analyze differences in performance and risk taking between single-manager and multiple-manager mutual funds and find that the latter underperform the single-manager funds in terms of risk-adjusted returns during the 2001-2004 bear market. This underperformance is more evident among growth oriented funds. There are no differences observed in the 1997-2000 bull market. Not all multiple-manager funds, however, are managed by pure teams. When we compare the performance of single-manager and pure-team funds we do not find any differences in performance. The underperformance of multiple-manager funds documented in previous studies comes from multiple-manager funds that employ many investment advisors and, therefore, their exact management structure is unknown. We also document differences in management structure reporting between Morningstar and CRSP.

2.Title: International evidence on ethical mutual fund performance and investment style

Author: Rob Bauer, Kees Koedijk and Rogér Otten

Source:ABP Investments, Schiphol, The Netherlands,Faculteit Bedrijfskunde, Erasmus University Rotterdam and CEPR, P.O. Box 1738, 3000 DR Rotterdam, The NetherlandsMaastricht University, Maastricht, The Netherlands

Received 23 September 2003;  accepted 28 June 2004.  Available online 23 September 2004.

Abstract

Using an international database containing 103 German, UK and US ethical mutual funds we review and extend previous research on ethical mutual fund performance. By applying a Carhart multi-factor model [Carhart, Journal of Finance 57 (1997) 57] we overcome the benchmark problem most prior ethical studies suffered from. After controlling for investment style, we find no evidence of significant differences in risk-adjusted returns between ethical and conventional funds for the 1990–2001 period. Our results also suggest that ethical mutual funds underwent a catching up phase, before delivering financial returns similar to those of conventional mutual funds. Finally, our performance estimates are robust to the inclusion of ethical indexes, which, surprisingly, are not incrementally capable of explaining ethical mutual fund return variation.

3. ORGANIZATION PROFILE

3.1 COMPANY PROFILE

General Company Description

Value 2 Money Advisors India Pvt Ltd is an established, premier financial and stock broking house with a vision to offer various financial services and products in a way that leads to optimum gains for the entities involved in these transactions

Value 2 Money Advisors India Pvt Ltd is similar to Healthcare in the sense that lots of medicines (for example, mutual fund, life insurance, general insurance, equity funds, fixed income products, real estate, investment trusts, structured products and multiple others) are available, but there is one important difference - there are very few competent and trustworthy prescribers.

Value 2 Money Advisors India Pvt Ltd is your trusted financial friend Value 2 Money Advisors India Pvt Ltd is India's premier wealth management advisory and your family doctor in the field of personal finance. We have a holistic wealth management approach where we ensure that you reach your important financial goals. Our investment ability to generate good returns at minimal risk is an important and integral part.  We are your trusted financial friend always endeavouring to raise the quality of your lives, maintaining a consistent living standard and ensuring empowerment for your future generations too.

Group Companies

Value 2 Money Advisors India Pvt Ltd (Your Valued Advisors in Wealth Creation)

The Voice (Communication for wealth Maximization) – The Voice is a financial management call centre. we're dedicated to serving the needs of independent customers focusing on their financial Goals. We are here to provide a stable source of financial planning, Portfolio Management today and tomorrow.

Vision Wealth Management Academy (Learn, Earn & Shine) - The Vision Career Academy Institute, is the premier provider of AMFI and IRDA training and consulting ---- assisting students, auditors, risk managers, accountants, operations and management. We are also the proud sponsor of the Certification provider of AMFI and IRDA Programme. We also prepare students who are interested in obtaining an AMFI and IRDA Certification.

VTM Info systems (Innovative Technology for E-Investments) – Deals with Online Services to the People for their requirements of all the Financial Products & its Services.

Value 2 Money Securities (Associated with Greshma Shares & Stocks Limited.) – Deals with Share Trading (Online & Offline), Cash, Future & Option, Commodities.

Mission Statement: As an independent financial advisory firm, The focus of our organization is to be the most useful, reliable, and efficient provider of financial services to the investor using a wide range of Financial products.

Vision statement:

To create and function as a client-centric wealth management firm To remain unbiased in all aspects of the wealth management process To achieve constant growth in the range and to provide quality services to the clients To evolve a total solution package for the financial needs of the clients To create an environment where the client, employee and the firms interest are aligned To utilize the power of teamwork to function as a family and build a seamless

organization. Technology Savy

Business Philosophy:

Our Business Philosophy is entirely client centric that is to provide personalized and dedicated service on Investment related matters to the Clients while maintaining the highest standards of excellence, ethics and professionalism.

Our clients

Our clients are business executives, doctors, architects, engineers, entrepreneurs, non-resident Indians (NRIs), persons of Indian origin (PIOs), returned to India (R2I), high net worth individuals (HNIs), professionals in varied areas, corporates and educational institutes. They are busy, immersed in their respective fields and find little time to devote to their financial planning and wealth enhancement, even though they recognize that it is a very important life area. That's where we step in and our clients have found us to be of immense help.

Our Strengths

Our Strengths of the Group is the diversity of our businesses. While this diversity is a strength, it is also important that we are consistent in the way we do business from how we treat our customers to how we manage risk. The following statements set out below describe how we do business within our group

We understand our Customers

We know who we are dealing withWe treat our customer fairly

We balance value to our customers

PRODUCTS PROFILE

Your one stops Financial Supermarket

We offer you a comprehensive range of financial products and services, which will help you, achieve your life's financial goals all under one roof.

Advisory Products

We have significant experience of advising investors through various market cycles. Our team comprises high quality professionals with experiences spanning assignments in Asset Management companies, private banking and other financial distributors.

Our wealth managers are trained to offer Financial Planning and end-to-end personalized investment management services for Wealth Generation, Retirement Planning and Capital Buildup at different stages of life.

Investment Products

We have relationships with all major AMCs in the country and leveraging on our network of wealth managers, and channel partners, distribution of Mutual Funds and Insurance is a key strength of Value 2 Money Advisors Pvt Ltd.

Mutual Funds

Advising retail individuals, HNIs and Corporate Treasuries, we offer a choice of mutual funds spanning all investment objectives and asset classes and have a systematic 4-step advisory process comprising Background Profiling, Risk Profiling, Model Portfolio Creation, Review and Rebalancing.

We have a dedicated team of research analysts specializing in mutual funds. Our research output includes daily performance reports, weekly and monthly updates, special focus articles as well as quarterly portfolio updates.

Insurance

We offer both Life and General Insurance products making us a one-stop shop when it comes to Insurance and risk management solutions.

Value 2 Money Advisors Pvt Ltd clients from a variety of backgrounds including retail investors,HNIs and corporates though a systematic approach adopted by our well qualified managers specially trained in insurance advisory.

Portfolio Management

Our Portfolio Management Services is an exclusive offering from Value 2 Money Advisors Pvt Ltd that specializes in providing risk managed investment solutions to discerning High Networth Individuals, Non Resident Indians (NRIs), Overseas Corporate Bodies (OCBs) and Indian Corporates.

Our Discretionary Portfolio Management Service gives investors the benefit of unbiased investment advice designed to achieve their financial objectives. In addition to managing client portfolios, we undertake all operational activities such as custody, accounting and reporting making it completely hassle free for the customer.

Corporate Advisory

Value 2 Money Advisors Pvt Ltd services SMEs and Corporates for the Employee Tax Planning.

Value 2 Money Financial Planning Service includes:

Risk Profiling Asset Allocation and Portfolio Construction Creation and Accumulation of Wealth through Systematic Investment Plans (SIP) Regular review of progress and Portfolio Rebalancing

Investment Planning - Investment means putting your money to work to earn more money. Done wisely, it can help you meet your financial goals like buying a new house, paying for college education of your children, of your enjoying a comfortable retirement, or whatever is important to you.

Who needs Investment Planning ?

Investment planning is necessary for every one who wishes to achieve any financial goal. You have to plan your limited resources to avail the maximum benefit out of them. You should plan your investments to fulfill major needs like:

Creating wealth over the long term Acquiring assets like a dream house or a dream car Fulfulling your need for financial security

Risk and Return

Risk and returns go hand in hand. Higher the risk, higher is the possibility of earning a good return. Thus, it follows that all types of investment have some form of risk attached to it. Theoretically, even 'safe' investments (such as bank deposits) are not without some element of risk. Broadly, here are the various types of risks that you might have to face as an investor.

Credit RiskThe risk is that the issuer of the security will default, or not repay the principal amount. This is valid for corporate bonds etc.

Liquidity RiskIf you invest in securities, stocks, bonds, you are risking their sellability. In other words, your money gets stuck unnecessarily, creating an asset-liability mismatch.

Market RiskFinancial markets are volatile in nature. Volatility means sudden swings in value from high to low, or the reverse. The more volatile an investment is, the more profit or loss you can make, since there can be a big spread between what you paid and what you sell it for. But you also have to be prepared for the price to drop by the same amount. Those who invest in stocks and mutual funds typically run this risk.

Interest Rate RiskDepending on the interest rate movement in the economy, the rates of interest investment instruments may go up or come down, resulting in a subsequent reverse movement of their prices. Such a scenario of economic instability might effect mutual funds etc.

The whole idea behind investment planning is to evaluate the risk associated with various type of investments and take steps so as to balance it with the desired return.

For further details: visit us @ www.value2money.com or Call us @ 044 - 2835 3701

Head Office: Chennai, Branch Office: Bangalore, Coimbatore, and Trivandrum.

CHAPTER-IV

4. RESEARCH METHODOLOGY

A research method refers to the methods the researchers use in performing research

operations. Research Methodology is a way to systematically solve the research problem. By

research methodology not only the research methods are considered but also the logic behind the

methods used in the context of the research study and explanations are given on why a particular

technique is used.

4.1 RESEARCH DESIGN

A research design is the arrangement of the conditions for the collections and analysis of

the data in a manner that aims to combine relevance to the research purpose with economy in

procedure. In fact, the research design is the conceptual structure within which research is

conducted; it constitutes the blue print of the collection, measurement and analysis of the data.

As search design includes an outline of what the researcher will do from writing the hypothesis

and its operational implication to the final analysis of data. I used descriptive research design in

this project.

4.2 DATA COLLECTED

The task of data collection is begins after a research problem has been defined and

research designed/plan chalked out. Data collection is to gather the data from the population. The

data can be collected of two types.

Primary Data

Secondary Data.

4.3PRIMARY DATA

The Primary data are those, which are collected afresh and for the first time, and thus

happened to be original in character. Methods of collection of primary data are as follows:

o Interview

o Questionnaire

4.4SECONDARY DATA

The secondary data are those which have already been collected by some-one else

and which have already been passed through the statistical tool. Methods of collection

of secondary data are journals, websites and books.

4.5 SAMPLING TECHNIQUE

4.6 SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It

refers to the technique or the procedure and the researcher would adopt in selecting items of

sample. Sample design may as well by lay down the number of items to be included in the

sample that is the size of the sample. Sample design is determined before data are collected. This

study is a descriptive study of investment pattern of investors. The study is based on both

primary and secondary data.

A study which wants to portray the characterstics of a group or individual or situation is

known as Descriptive Study. The main objective of Descriptive Study is to acquire knowledge. It

divided into Two types:

1. Case Study Method,

2. Statistical Method.

4.7 SAMPLING AREA –

Chennai

Population 700

4.8 SAMPLE SIZE:

I took 60 out of 80 respondents for my project, because it covers all the category.

4.9 FIELD WORK

The field works is done at Value 2 Money Advisor pvt ltd., Royapettah,

Chennai 600 014.

4.10 PERIOD OF SURVEY

The period is from July 2011 to August 2011.

Research PlanResearch Design : Descriptive ResearchData Source : Primary DataResearch Instrument : Questionnaire

Sample PlanSampling Design : Simple Random DesignSample Size : 60

4.11 DATA ANALYSIS

STATISTICAL TOOL:

4.12 PERCENTAGE ANALYSIS

In this project Percentage method test was used. The percentage method is used to know

the accurate percentages of the data we took, it is easy to graph out through the percentages. The

following are the formula.

Percentage of Respondent = No of Respondents

------------------------------ * 100

Total no of Respondents

From the above formula, we can get percentages of the data given by the respondents.

4.13 CHI SQUARE TEST

The Chi Square (X2) test is undoubtedly the most important and most used member of the

nonparametric family of statistical tests. Chi Square is employed to test the difference between

an actual sample and another hypothetical or previously established distribution such as that

which may be expected due to chance or probability. Chi Square can also be used to test

differences between two or more actual samples.

Basic Computational Equation

CHI-SQUARE TEST

INCOME PER ANNUM

Observed

N

Expected

N

Residual

Upto 100000

100000-300000

300000-500000

Above 500000

Total

23

21

12

4

60

15.0

15.0

15.0

15.0

8.0

6.0

-3.0

-11.0

TENURE OF INVESTMENT

Observed

N

Expected

N

Residual

Short term (upto 1 year)

Medium term ( 1-3 year)

28

20

20.0

20.0

8.0

.0

Long term (above 3 year)

Total12

60

20.0 -8.0

TEST STATISTICS

Income per annum Tenure of investment

Chi-square

Df

Asymp.sig

15.333

3

.002

6.400

2

.041

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 15.0.

b. 0 cells (.0%) have expected frequencies less than 5.The minimum expected cell frequency is 20.0.

4.14 ANOVA

The ANOVA tests the null hypothesis that samples in two or more groups are drawn from the same population. To do this, two estimates are made of the population variance. These estimates rely on various assumptions (see below). The ANOVA produces an F statistic, the ratio of the variance calculated among the means to the variance within the samples. If the group means are drawn from the same population, the variance between the group means should be lower than the variance of the samples, following central limit theorem. A higher ratio therefore implies that the samples were drawn from different populations. The ANalysis Of VAriance (or ANOVA) is a powerful and common statistical procedure in the social sciences. It can handle a variety of

situations. We will talk about the case of one between groups factor here and two between groups factors in the next section.

ONE WAYANOVA FORMULA:

4.14.1 ONE WAY ANOVA:

A One-Way Analysis of Variance is a way to test the equality of three or more means at one time

by using variances.

Summary Table:

SS Df MS F

Between SS(B) k-1 SS(B)

-----------

k-1

MS(B)

--------------

MS(W)

Within SS(W) N-k SS(W)

-----------

N-k

.

Total SS(W) + SS(B) N-1 .

Grand Mean:

The grand mean of a set of samples is the total of all the data values divided by the total sample size.

Total Variation:

The total variation (not variance) is comprised the sum of the squares of the differences of each mean with the grand mean.

Between Group Variation:

The variation due to the interaction between the samples is denoted

SS(B) for Sum of Squares Between groups

Within Group Variation:

The variation due to differences within individual samples, denoted SS(W) for

Sum of Squares Within groups.

PERCENTAGE OF INCOME

Sum of squares

df Mean square F Sig

Between groups

Within groups

Total

3.087

86.847

89.933

3

56

59

1.029

1.551

.663 .578

4.15 REGRESSION:

Regression

Definition: A regression is a statistical analysis assessing the association between two variables.

It is used to find therelationship between two variables.

Regression Formula:Regression Equation(y) = a + bx Slope(b) = (NΣXY - (ΣX)(ΣY)) / (NΣX2 - (ΣX)2)Intercept(a) = (ΣY - b(ΣX)) / N

where x and y are the variables. b = The slope of the regression line a = The intercept point of the regression line and the y axis. N = Number of values or elements X = First Score Y = Second Score ΣXY = Sum of the product of first and Second Scores ΣX = Sum of First Scores ΣY = Sum of Second Scores ΣX2 = Sum of square First Scores

Model Variable Entered Variables Removed Method

1. Income per annumPercentage of income

Enter

a. All requested variable entered.b. Dependent variable- gender.

MODEL SUMMARY

Model R R squares Adjusted R square

Std.Error of the estimate

1. 411 .169 .139 .46

a. Predictors (constant) income per annum, percentage of income.

ANOVA

Model Sum of square

df Mean Square F Sig

1.Regression

Residual

Total

2.458

12.125

14.583

2

57

59

1.229

.213

5.778 .005

a. Predictors (constant) income per annum, percentage income.b. Dependent variable-gender.

COEFFICIENTS

Model Unstandardized coefficients

Standardized coefficients

t Sig

B Std. error

Beta

1. (constant) Percentage of incomeIncome per annum

1.886-.1641.520E-02

.207

.049

.065-.408

.028

9.107-3.378

-235

.000

.001

.815

a. Dependent variable-gender

CHAPTER V

5DATA ANALYSIS AND INTERPRETATION

5.1 ANALYSIS USING PERCENTAGE METHOD

CHART 5.1.1

TABLE 5.1.1

5.1.1 Classification of the respondents based on their MARITAL STATUS:

S.No. Marital status No. of Respondents Percentage

1 Married 17 28

2 Unmarried 43 72

Total 60 100

Source: Primary Data

Inference:

The above table infers that, 28 percent of the respondents are married people and

72 percent of the Respondents are unmarried people.

CHART 5.1.2

TABLE 5.1.2

5.1.2 Classification of the respondents based on their GENDER:

S.No. Marital status No. of Respondents Percentage

1 Male 35 58

2 Female 25 42

Total 60 100

Source: Primary Data

Inference:

The above table infers that, 58 percent of the respondents are male people and

42 percent of the Respondents are female people.

CHART 5.1.3

TABLE 5.1.3

5.1.3 Classification of the respondents based on their OCCUPATION:

S.no Occupation No. of Respondents Percentage

1 Salaried 29 48

2 Self employed 12 20

3 Public Ltd.co 06 10

4 Pvt.Ltd.co 13 22

Total 60 100

Source: Primary Data

Inference:

The above table infers that, 48 percent of the respondents are Salaried, 20 percent of the respondents are self employed, 10 percent of the respondents are Public Ltd.co and 22 percent of the respondents are Pvt. Ltd.co.

CHART 5.1.4

TABLE 5.1.4

5.1.4 CLASSIFICATION OF THE RESPONDENTS BASED ON THEIR Educational

qualification:

S.no Education qualification

No of Respondents Percentage

1 UG 26 44

2 PG 30 50

3 Hr.sec 4 6

Total 60 100

Source data: primary data

Inference:

The above table infers that, 44 percent of the respondents are having UG, 50 percent of

the respondents are having PG, and 6 percent of the respondents are having Hr.sec.

CHART 5.1.5

TABLE 5.1.5

5.1.5 Classification of the Respondents based on their PERCENTAGE OF INCOME:

S.no PERCENTAGE OF INCOME No. of Respondents Percentage

1 60%6 10

2 40%19 32

3 25%9 15

4 15%19 32

5 <15%7 11

Total 60 100

Source: Primary Data

Inference:

The above table infers that, 10 percent of the respondents are 60%, 32 percent of the respondents are 40%, 15 percent of the respondents are 25%, 32 percent of the respondents are 15% and 11 percent of the respondents are <15%

CHART5.1.6

TABLE 5.1.6

5.1.6 Classification of the Respondents based on their MUTUAL FUND IN FINANCIAL INVESTMENT:

S.no FINANCIAL INVESTEMENT No. of Respondents Percentage

1 Strongly agree22 37

2 Agree32 53

3 Neutral(or)Nor2 3

4 Disagree4 7

5 Strongly disagree0 0

Total 60 100

Source: Primary Data

Inference:

The above table infers that, 37 percent of the respondents are strongly agree, 53 percent of the respondents are agree, 3 percent of the respondents are neutral (or) nor, 7 percent of the respondents are disagree and 0 percent of the respondents are strongly disagree.

CHART 5.1.7

TABLE 5.1.7

5.1.7 Classification of the Respondents based on their Mutual Fund Companies:

S.no

Mutual which they following

No. of Respondents Percentage

1 Reliance22 36

2 Sundaram12 20

3 Franklin Templeton4 7

4 ICICI prudential18 30

5 Kodak Mahindra4 7

Total 60 100

Source: Primary Data

Inference:

The above table infers that, 36 percent of the respondents are Reliance, 20 percent of the respondents are sundaram, 7 percent of the respondents are Franklin Templeton, 30 percent of the respondents are ICICI prudential and 7 percent of the respondents are Kodak Mahindra.

CHART 5.1.8

TABLE 5.1.8

5.1.8 Classification of the Respondents based on their RATE OF RETURN:

S.no RATE OF RETURN No. of Respondents Percentage

1 Excellent 16 27

2 Very good 24 40

3 Average 16 27

4 Below average 4 6

Total 60 100

Source: Primary Data

Inference:

The above table infers that, 27 percent of the respondents are Excellent, 40 percent of the respondents are Very good, 27 percent of the respondents are Average, and 6 percent of the respondents are below average.

CHART 5.1.9

TABLE 5.1.9

5.1.9 Classification of the Respondents based on their INVESTED:

SERIAL NO. INVESTED RESPONDENTS PERCENTAGE

1 mutual fund 15 25

2 post office schemes 11 18

3 fixed deposit 17 28

4 shares & bonds 5 9

5 insurance 12 20

TOTAL 60 100

Source: Primary Data

Inference:

The above table infers that, 25 percent of the respondents are Mutual fund, 18 percent of the respondents are post office schemes, 28 percent of the respondents are Fixed deposit, 9 percent of the respondents are shares and bonds and 20 percent of the respondents are insurance.

CHART 5.1.10

TABLE 5.1.10

5.1.10 Classification of the Respondents based on their AWARENESS:

Serial No. AWARENESS Respondents Percentage

1 Fully Aware 18 30

2 Aware 23 38

3 To a certain Extent 13 22

4 Not at all 6 10

TOTAL 60 100

Source: Primary DataInference:

The above table infers that, 30 percent of the respondents are Fully aware, 38 percent of the respondents are aware, 22 percent of the respondents are To a certain extent, 10 percent of the respondents are Not at all.

CHART 5.1.11

TABLE 5.1.11

5.1.11Classification of the Respondents based on their INCOME PER ANNUM:

Serial No. INCOME PER ANNUM

RESPONDENTS PERCENTAGE

1 Upto 100000 23 38

2 100000-300000 21 35

3 300000-500000 12 20

4 Above 500000 4 7

TOTAL 60 100

Source: Primary DataInference:

The above table infers that, 38 percent of the respondents are upto 100000, 35 percent of the respondents are 100000-300000, 20 percent of the respondents are 300000-500000, 7 percent of the respondents are above 500000.

CHART 5.1.12

TABLE 5.1.12

5.1.12 Classification of the Respondents based on their INVESTMENT:

Serial No. INVESTMENT RESPONDENTS PERCENTAGE

1 Bank & FD 14 23

2 Govt./securities 11 18

3 Mutual fund & insurance

25 42

4 Shares or equity 5 8

5 Real Estate 5 8

TOTAL 60 100

Source: Primary DataInference:

The above table infers that, 23 percent of the respondents are Bank & FD, 18 percent of the respondents are Govt./securities, 42 percent of the respondents are Mutual fund & insurance, 8 percent of the respondents are Shares or equity and 8 percent of the respondents are real estate.

CHART 5.1.13

TABLE 5.1.13

5.1.13 Classification of the Respondents based on their FACTORS ARE CONSIDERED FROM INVESTMENT:

Serial No. INVESTMENT RESPONDENTS PERCENTAGE

1 Security 9 15

2 Trust 11 18

3 Good return 33 55

4 Asset value 6 10

5 others 1 2

TOTAL 60 100

Source: Primary Data

Inference:

The above table infers that, 15 percent of the respondents are security, 18 percent of the respondents are trust, 55 percent of the respondents are good return, 10 percent of the respondents are asset value and 2 percent of the respondents are others.

CHART 5.1.14

TABLE 5.1.14

5.1.14 Classification of the Respondents based on their HAVE NOT INVESTED:

Serial No. Not Invested No of Respondents

Percentage

1 Not aware 28 47

2 High risk 23 38

3 Not any specific reason 9 15

Total 60 100

Source: Primary Data

Inference:

The above table infers that, 47 percent of the respondents are not aware, 38 percent of the respondents are high risk, 15 percent of the respondents are not any specific reason.

CHART 5.1.15

TABLE 5.1.15

5.1.15 Classification of the Respondents based on their KNOW ABOUT THE FUND:

Serial no Know about mutual fund

No of respondents Percentage

1 Newspaper/Tv 21 35

2 Peer groups & friend 20 33

3 Mutual fund advisor 13 22

4 Through bank AMC 3 5

5 Own interest 5 8

Total 60 100

Source: Primary DataInference:

The above table infers that, 35 percent of the respondents are newspaper and tv, 33 percent of the respondents are peer groups and friend, 22 percent of the respondents are mutual fund advisor, 5 percent of the respondents are through bank AMC and 8 percent of the respondents are own interest.

CHART 5.1.16

TABLE 5.1.16

5.1.16 Classification of the Respondents based on their TENURE OF INVESTMENT:

Serial No. Tenure of investment No of respondents Percentage

1 Short term ( upto 1 yr)

27 45

2 Medium term (1-3 yr)

19 32

3 Long term (above 3 yr)

14 23

Total 60 100

Source: Primary Data

Inference:

The above table infers that, 45 percent of the respondents are short term (upto 1 year), 32 percent of the respondents are medium term (1-3 year), 23 percent of the respondents are long term (above 3 year ).

CHART 5.1.17

TABLE 5.1.17

5.1.17 Classification of the Respondents based on their PREFERRED OPTION FOR GETTING RETURN:

Serial no. Preferred option for getting returns

No of respondents Percentage

1 Growth 30 50

2 Dividend Reinvest 19 32

3 Dividend payout 11 18

Total 60 100

Source: Primary Data

Inference:

The above table infers that, 50 percent of the respondents are growth, 32 percent of the respondents are dividend reinvest, 18 percent of the respondents are dividend payout.

CHAPTER VI

6. FINDINGS OF THE STUDY, SUGGESTION AND RECOMMENDATION

6.1 FINDINGS:

28 % of the respondents are married people and 72 % of the Respondents are unmarried

people.

58 % of the respondents are male people and 42 % of the Respondents are female people.

48 %of the respondents are Salaried, 20 %of the respondents are self employed, 10 % of

the respondents are Public Ltd.co and 22 % of the respondents are Pvt. Ltd.co.

44% of the respondents are having UG, 50% of the respondents are having PG, and 6%

of the respondents are having Hr.sec

10% of the respondents are 60%, 32% of the respondents are 40%, 15% of the

respondents are 25%, 32% of the respondents are 15% and 11% of the respondents are

<15%.

37% of the respondents are strongly agree, 53% of the respondents are agree, 3% of the respondents are neutral (or) nor, 7% of the respondents are disagree and 0% of the respondents are strongly disagree.

36% of the respondents are Reliance, 20% of the respondents are sundaram, 7% of the

respondents are Franklin Templeton, 30% of the respondents are ICICI prudential and

7% of the respondents are Kodak Mahindra.

27% of the respondents are Excellent, 40% of the respondents are Very good, 27% of the

respondents are Average, and 6% of the respondents are below average.

25% of the respondents are Mutual fund, 18% of the respondents are post office schemes, 28% of the respondents are Fixed deposit, 9% of the respondents are shares and bonds and 20% of the respondents are insurance.

30% of the respondents are Fully aware, 38% of the respondents are aware, 22% of the respondents are To a certain extent, 10% of the respondents are Not at all.

38% of the respondents are upto 100000, 35% of the respondents are 100000-300000, 20% of the respondents are 300000-500000, 7% of the respondents are above 500000.

23% of the respondents are Bank & FD, 18% of the respondents are Govt./securities, 42% of the respondents are Mutual fund & insurance, 8% of the respondents are Shares or equity and 8% of the respondents are real estate.

15% of the respondents are security, 18% of the respondents are trust, 55% of the respondents are good return, 10% of the respondents are asset value and 2% of the respondents are others.

47% of the respondents are not aware, 38% of the respondents are high risk, 15% of the respondents are not any specific reason.

35% of the respondents are newspaper and tv, 33% of the respondents are peer groups and friend, 22% of the respondents are mutual fund advisor, 5% of the respondents are through bank AMC and 8% of the respondents are own interest.

45% of the respondents are short term (upto 1 year), 32% of the respondents are medium term (1-3 year), 23% of the respondents are long term (above 3 year ).

50% of the respondents are growth, 32% of the respondents are dividend reinvest, 18% of the respondents are dividend payout.

6.2 SUGGESTIONS AND RECOMMENDATIONS:

Advertisement’s should be made more effective to reach all levels of customers.

Company should concentrate on customer’s complaints.

Company should promote proper advertisement’s for their products to attract new customers.

CHAPTER VII

7. CONCLUSION

The present study was primarily aimed at identifying the determination of service quality and

level of the customer perception of VALUE 2 MONEY ADVISOR PRIVATE LIMITED.

1. From the study it is found clear that the level of perception is satisfied and feels best.

2. The customers are very satisfied that staff of VALUE 2 MONEY ADVISOR PRIVATE LIMITED is giving prompt service

3. Further improvement as per the suggestions will yield better result to the organization

CHAPTER VIII

8.1 LIMITATION OF THE STUDY

Possibility of error in data collection because many of the Investors may not given actual

answers of questionnaire.

The study has been limited by time and cost factor.

The sample size is limited to 60 respondents of our company

Some of the respondents were not given prior response. Some respondents were reluctant

to divulge personal information which can affect the validity of all responses.

Classification of the respondents based on their marital status.

CHAPTER IX

BIBLOGRAPHY

WEBSITES

www.scribd.com

www.slideshare.net

www.indiaonchannel.com

www.authorstream.com

www.thomasnet.com