Mutual Fund industry is one of the fastest growing industries in India, with so many investment options around giving an investor a wide range of choices to invest into. It offers a specialized service where the funds of the investors are professionally managed by the fund managers with various schemes offering all kinds of investors a product of their choice. This industry is in the growth phase and has a long way to go, but at present the bigger avenues from where the investments come have saturated like the large corporate companies.
Factor Analysis affirmed that the investment pattern of Kolkata based Corporate and institutional investors in Mutual Funds depend on the six factors. They are Profitability Factor, Market Fluctuation Factor, Security Factor, Risk Orientation in Fund Decision, Awareness of Mutual Fund, and Performance of Mutual Funds. The survey also stated that the institutional investors are more interested in maintaining their portfolios for at least a month or more. The awareness of institutional investors regarding Mutual Funds is low which is indicated by the fact that still 48 percent of investors invest in Bank FDs which has a greater tax on income as compared to Mutual Fund returns. The survey clearly indicates that the institutional investors are majorly influenced by the agents and brokers when it comes on to decided which Mutual Fund to invest in.
Table of Contents
Chapter 1 INTRODUCTION
1.1. PURPOSE
1.2. SCOPE OF THE PROJECT
1.3. LIMITATIONS
Chapter 2 PROJECT PROCEEDINGS
2.1. PROJECT PROPOSED
2.2. OBJECTIVE OF THE PROJECT
2.3. PHASE 1
2.4. PHASE 2
2.5. PHASE 3
2.6. PHASE 4
Chapter 3 METHODOLOGY
3.1. DEFINING THE PROJECT OBJECTIVE:
3.2. RESEARCH STEPS:
3.3. RESEARCH METHOD:
Chapter 4 ANALYSIS
4.1. QUANTITATIVE ANALYSIS
Chapter 5 SUMMARY AND CONCLUSIONS
5.1. FINDINGS
5.2. CONCLUSIONS
Chapter 6 REFERENCES
6.1. REFERENCES
Chapter 7 Appendices
Project Goals and Themes
This project aims to analyze the investment patterns of corporate and institutional investors based in Kolkata regarding their surplus fund management in Mutual Funds, with a focus on assisting SBI Mutual Fund in identifying potential clients and optimizing sales strategies.
- Analysis of investment patterns and surplus fund management among Kolkata-based corporate entities.
- Investigation of factors affecting investment decisions in Mutual Funds using quantitative tools like Factor Analysis.
- Evaluation of investor awareness levels regarding various financial instruments and Mutual Fund products.
- Examination of the impact of marketing channels, brokerage structures, and brand perception on investment choices.
Excerpt from the Book
1.1. PURPOSE
The purpose of the project is about studying the investment pattern of corporate and institutional investors based in Kolkata. Corporate and Institutional investors are the “Corporate Houses” based in Kolkata. The project revolves around the study of the surplus fund management of these “Corporate Houses” in Kolkata. The study will also constitute of a research based on the investment and the risk return study of the surplus funds of the “Corporate Houses” in Mutual Funds.
These “Corporate Houses” tend to park their short term funds in one of the financial instruments for a very limited period and thus enjoy the returns corresponding to the choice of their financial instrument and the period of the investment. The financial instruments can be any one of the following:
1. Bank Fixed Deposits
2. Equity Funds
3. Debt Funds
4. Government Bonds and Securities
5. Income Funds
If we talk about SBI Mutual Funds, these institutional investors divert their short term surplus funds to:
1. SBI Equity Funds
2. SBI Debt Funds
3. SBI Balanced Funds
As the aspects of this project is multidimensional so as its purpose. It will take into consideration the mutual benefit of the company coupled with gaining some practical knowledge about these financial instruments & the overall market scenario in Kolkata.
Chapter Summaries
Chapter 1 INTRODUCTION: This chapter outlines the project's purpose of analyzing the surplus fund management and investment behavior of Kolkata-based corporate and institutional investors.
Chapter 2 PROJECT PROCEEDINGS: This chapter details the four phases of the project, including background research, database creation, and the cold-calling execution plan.
Chapter 3 METHODOLOGY: This chapter explains the research design, including the use of surveys, questionnaires, and the selection of a sample size of 60 to conduct the study.
Chapter 4 ANALYSIS: This chapter presents the quantitative and qualitative evaluation of the survey data, utilizing Factor Analysis to categorize the drivers of investment behavior.
Chapter 5 SUMMARY AND CONCLUSIONS: This chapter summarizes the key research findings and concludes that factors like profitability and market fluctuations significantly dictate the investment patterns of local corporate investors.
Chapter 6 REFERENCES: This chapter lists the websites and resources used to gather information for the study.
Chapter 7 Appendices: This section provides supplementary data, including lists of BSE-listed Kolkata companies and the sample questionnaire used for data collection.
Keywords
Mutual Fund, Investment Pattern, Kolkata, Institutional Investors, Corporate Houses, SBI Mutual Fund, Factor Analysis, Surplus Fund Management, Debt Funds, Market Research, Financial Instruments, Investor Behavior, SPSS, Portfolio Management, Quantitative Analysis
Frequently Asked Questions
What is the core focus of this research project?
The project focuses on analyzing the investment patterns and surplus fund management strategies of corporate and institutional investors located in Kolkata.
What are the primary themes addressed in the work?
The key themes include the evaluation of investment preferences, factors influencing fund decisions, the role of brokerage and agents, and the awareness levels of institutional investors regarding Mutual Fund products.
What is the main research objective?
The primary objective is to analyze how Kolkata-based corporate entities manage their surplus funds to maximize profit while minimizing risk, with the ultimate goal of improving sales and customer relationship management for SBI Mutual Fund.
Which scientific method was employed for the analysis?
The researcher used a descriptive survey method supported by quantitative analysis, specifically applying Factor Analysis using SPSS software to reduce data and identify underlying factors affecting investment decisions.
What content is covered in the main body of the report?
The report covers project proceedings, methodological approaches (including questionnaire design and sampling), detailed quantitative analysis of survey responses, and a summary of findings.
Which keywords best describe this study?
The study is characterized by terms such as Mutual Fund, Investment Pattern, Kolkata, Corporate Houses, SBI Mutual Fund, and Factor Analysis.
What did the Factor Analysis reveal about investor decision-making?
The analysis identified six critical factors driving investment patterns: Profitability, Market Fluctuation, Security, Risk Orientation in Fund Decision, Awareness of Mutual Fund, and Performance of Mutual Funds.
What is a major challenge highlighted regarding local investor behavior?
The study found that institutional investor awareness of Mutual Funds remains relatively low, as evidenced by the high percentage of funds still parked in Bank Fixed Deposits despite the tax advantages of Mutual Funds.
How does the role of agents and brokers impact business in this region?
The study indicates that institutional investors are heavily influenced by agents and brokers; however, the low brokerage offered by SBI Mutual Fund can discourage these intermediaries from actively promoting the company's products.
- Quote paper
- Kautilya Kashyap (Author), 2010, Investment Pattern Analysis of Kolkata based Corporate and institutional Investors in mutual Fund, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/208607
