PROJECT REPORT

ON
“Study of Banking Product and Investment behavior of consumer”
Submitted in partial fulfilment of the requirements of MEDICAPS UNIVERSITY
for the award of degree in Bachelor of Commerce

Bachelor of Commerce (B.com Hons)

2020-2023

Submitted by
Varun Arora
Under the guidance of
Prof. G.K Sharma

DEPARTMENT OF COMMERCE AND MANAGEMENT

MEDI-CAPS UNIVERSITY INDORE

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 PREFACE

The project work is pursued as a part of B.COM.HONS curriculum at

‘MEDICAPS UNIVERSITY’, it is undertaken as research part on Measuring the
effectiveness of online shopping The project is done under the guidance of PROF.
G.K Sharma (Faculty, Medi-caps University). The project is about the influences
of online Shopping, customer views and perception about online shopping it’s
measured in our research

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 CERTIFICATE

This is to certify that the project entitled “Study of Banking Product and
Investment behavior of consumer” is a bonafide work done by Varun Arora
under the guidance and supervision of Prof G.K Sharma Assistant Professor
(Project Dissertation) at Medi-Caps University Indore. The project report is worth
submitting as an optional paper in partial fulfilment of the requirement of Bachelor
of Commerce and that it has not previously formed the award of any degree,
diploma or fellowship.

3
 DECLARATION

I undersigned VARUN ARORA student of B.com at Medi-caps University

declare that I have completed Project Dissertation on the topic.

“Study of Banking Product and Investment behavior of consumer.”

As a part of course requirement.

I also declare that all the data represented in this project is true & correct to the
best of my knowledge & belief

………………………..

VARUN ARORA

CM20CM301058

B.COM.HONS

MEDICAPS UNIVERSITY

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 ACKNOWLEDGEMENT

Learning and acquiring knowledge has no leap and bounds. It is one resource that
never exhausted, the more you preach the better it get and the more you preach
the better it get and the more it lives down through the ages.

Through these lines I would like to show my sincere gratitude to all the
individuals and the organizations under whose guidance and support this project
is possible.

I would like to devote my sincere thanks and gratitude to all the respondent who
support and provide their valuable feedback and responses for giving need and
opportunity to undergo project

I would also like to show my sincere gratitude to Prof. G.K. SHARMA SIR for
providing me support and guidance and help me in completing my report and
making it a good sample.

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 TABLE OF CONTENT

S.no Particular Page no

1 Introduction 07-09

2 10-12
Investment Strategies in India
3 Concept of Mutual Fund 13-17

4 Objective of the Study 18

5 Review of literature 19-20

6 Research Methodology & Data Analysis 21-27

7 Limitation of Study 28

8 Suggestion & Conclusion 29-31

9 Bibliography 32

10 Questionnaire Sample 33-34

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 INTRODUCTION
The Indian Banking System

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently
capitalised and well-regulated. The financial and economic conditions in the
country are far superior to any other country in the world. Credit, market and
liquidity risk studies suggest that Indian banks are generally resilient and have
withstood the global downturn well.

The Indian banking industry has recently

witnessed the rollout of innovative
banking models like payments and small
finance banks. In recent years India has
also focused on increasing its banking
sector reach, through various schemes
like the Pradhan Mantri Jan Dhan Yojana
and Post payment banks. Schemes like
these coupled with major banking sector
reforms like digital payments, neo-
banking, a rise of Indian NBFCs and
fintech have significantly enhanced India’s financial inclusion and helped fuel the
credit cycle in the country.

The digital payments system in India has evolved the most among 25 countries with
India’s Immediate Payment Service (IMPS) being the only system at level five in
the Faster Payments Innovation Index (FPII).* India’s Unified Payments Interface
(UPI) has also revolutionized real-time payments and strived to increase its global
reach in recent years.

MARKET SIZE

The Indian banking system consists of 12 public sector banks, 22 private sector
banks, 46 foreign banks, 56 regional rural banks, 1485 urban cooperative banks and
96,000 rural cooperative banks in addition to cooperative credit institutions As of
September 2021, the total number of ATMs in India reached 213,145 out of which
47.5% are in rural and semi urban areas.
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In 2020-2022, bank assets across sectors increased. Total assets across the banking
sector (including public and private sector banks) increased to US$ 2.67 trillion in
2022.

In 2022, total assets in the public and private banking sectors were US$ 1,594.51
billion and US$ 925.05 billion, respectively.

During FY16-FY22, bank credit increased at a CAGR of 0.62%. As of FY22, total

credit extended surged to US$ 1,532.31 billion. During FY16-FY22, deposits grew
at a CAGR of 10.92% and reached US$ 2.12 trillion by FY22. Bank deposits stood
at Rs. 173.70 trillion (US$ 2.12 trillion) as of November 4, 2022.

According to India Ratings & Research (Ind-Ra), credit growth is expected to hit
10% in 2022-23 which will be a double digit growth in eight years. As of November
4, 2022 bank credit stood at Rs. 129.26 lakh crore (US$ 1,585.09 billion).

As of November 4, 2022 credit

to non-food industries stood at
Rs. 128.87 lakh crore (US$
1.58 trillion).

New Business Opportunities

With the interest income

coming under pressure, banks
are urgently looking for
expanding fee-based income
activities. Banks are
increasingly getting attracted
towards activities such as marketing mutual funds and insurance policies, offering
credit cards to suit different categories of customers and services such as wealth
management and equity trading. These are indeed proving to be more profitable for
banks than plain vanilla lending and borrowing.

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INVESTMENTS/DEVELOPMENTS

Key investments and developments in India’s banking industry include:

• On June, 2022, the number of bank accounts—opened under the

government’s flagship financial inclusion drive ‘Pradhan Mantri Jan Dhan
Yojana (PMJDY)’—reached 45.60 crore and deposits in the Jan Dhan bank
accounts totaled Rs. 1.68 trillion (US$ 21.56 billion).
• On November 09, 2021, RBI announced the launch of its first global
hackathon 'HARBINGER 2021 – Innovation for Transformation' with the
theme ‘Smarter Digital Payments’.
• In July 2021, Google Pay for Business has enabled small merchants to access
credit through tie-up with the digital lending platform for MSMEs—Flexi
Loans.
• On November 6, 2020, WhatsApp started UPI payments service in India on
receiving the National Payments Corporation of India (NPCI) approval to ‘Go
Live’ on UPI in a graded manner.

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 Investment Strategies in India
Conventionally. Indian investors were investing in the following avenues:

•Fixed Deposits - They cover the fixed deposits of varied tenors offered by the
commercial banks and other non-banking financial institutions.

These are generally a low risk prepositions as the commercial banks are believed
to return the amount due without default. By and large these FDs are the preferred
choice of risk-averse Indian investors who rate safety of capital & ease of
investment above all parameters. Largely. these investments eam a marginal rate
of return of 6-8% per annum.

•Government Bonds - The Central and State Governments raise money from the
market through a variety of Small Saving Schemes like national saving certificates,
Kisan Vikas Patra, Post Office Deposits, Provident Funds, etc. These schemes are
risk free as the government does not default in payments. But the interest rates
offered by them are in the range of 7% - 9%.

•Money-back insurance - Insurance in India is mostly sold and bought as

investment products. They are preferred because of their add-on benefits like
financial life-cover, tax-savings and satisfactory returns. Even if one does not
manage to save money and invest regularly in financial instruments, with
insurance, the policyholder has no choice. If he does not pay his premiums on time,
his insurance cover will lapse. Money-back Insurance schemes are used as
investment avenues as they offer partial cash-back at certain intervals. This money
can be utilized for children's education, marriage, etc.

•Endowment Insurance - These policies are term policies. Investors have to pay
the premiums for a particular term, and at maturity the accrued bonus and other
benefits are returned to the policyholder if he survives at maturity.

• Bullion Market - Precious metals like gold and silver had been a safe haven for
Indian investors since ages. Besides jewellery these metals are used for investment

10
purposes also. Since last 1 year, both Gold and Silver have highly appreciated in
value both in the domestic as well as the international markets

•Stock Market - Indian stock markets particularly the BSE and the NSE. had been
a preferred destination not only for the Indian investors but also for the Foreign
investors. This is evident from the fact that Fis are buying huge stakes on the Indian
bourses. Although Indian Markets had been through tough times due to various
scams, but history shows that they recovered very fast. Many scrip's had been value
creators for the investors. People have earned fortunes from the stock markets, but
there are people who have lost everything due to incorrect timings or selection of
fundamentally weak companies.

•Real Estate - Approximately one fourth of all homes sold in 2006 have been
purchased as an investment. Returns are almost guaranteed because property values
are always on the rise due to a growing world population. Residential real estate is
more than just an investment.

•Mutual Funds - There is a collection of investors in Mutual funds that have

professional fund managers that invest in the stock market collectively on behalf
of investors. Mutual funds offer a better route to investing in equities for lay
investors. A mutual fund acts like a professional fund manager, investing the
money and passing the returns to its investors. All it deducts is a management fee
and its expenses, which are declared in its offer document.

• Unit Linked Insurance Plans - MUTUAL FUNDs are remarkably alike to

mutual funds in terms of their structure and functioning: premium payments made
are converted into units and a net asset value (NAV) is declared for the same. In
traditional insurance products, the sum assured is the corner stone; in MUTUAL
FUNDs premium payments is the key component.

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Banking India

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Concept of mutual fund
A Mutual Fund is a body corporate that pools the savings of a number of investors
and invests the same in a variety of different financial instruments, or securities.
The income earned through these investments and the capital appreciation realized
by the scheme is shared by its unit holders in proportion to the number of units
owned by them. Mutual funds can thus be considered as financial intermediaries in
the investment business that collect funds from the public and invest on behalf of
the investors. The losses and gains accrue to the investors only. The Investment
objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual
Fund scheme. The investment objectives specify the class of securities a Mutual
Fund can invest in. Mutual Funds invest in various asset classes like equity, bonds,
debentures, commercial paper and government securities Structure of mutual fund

The structure of a mutual fund

The structure of a mutual fund differs from country to country. In India the structure
of mutual fund is determined by SEBI regulations. These regulations are required
to be established in the form of a trust under the Indian trust act;

1882.in India. The mutual fund industry has a four tier structure. The four parties
that are required to be involved are;

These four entities operate in the following manner

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Types of Mutual Fund Scheme

Open -Ended Scheme

Close -Ended scheme

1. Open – ended schemes The

units offered by these
schemes are available for
sale and repurchase on any
business day at NAV based
prices. Hence, the unit
capital of the schemes keeps changing each day. Such schemes thus offer very
high liquidity to investors and are becoming increasingly popular in India.
Please note that an open-ended fund is NOT obliged to keep selling/issuing
new units at all times, and may stop issuing further subscription to new
investors. On the other hand, an open-ended fund rarely denies to its investor
the facility to redeem existing units.

2. Closed – ended schemes The unit capital of a close-ended product is fixed as

it makes a one-time sale of fixed number of units. These schemes are launched
with an initial public offer (IPO) with a stated maturity period after which the
units are fully redeemed at NAV linked prices. In the interim, investors can
buy or sell units on the stock exchanges where they are listed. Unlike open-
ended schemes, the unit capital in closed-ended schemes usually remains
unchanged. After an initial closed period, the scheme may offer direct
repurchase facility to the investors. Closed-ended schemes are usually more
illiquid as compared to open-ended schemes and hence trade at a discount to
the NAV. This discount tends towards the NAV closer to the maturity date of
the scheme.

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Advantage of investing in mutual fund

The advantages of investing in a Mutual Fund are:

• Professional Management.

The major advantage of investing in a mutual fund is that you get a professional
money manager to manage your investments for a small fee. You can leave the
investment decision to him and only have to minor the performance of the fund at
regular intervals

• Diversification.

Considered the essential tool in risk management, mutual funds make it possible
for even small investors to diversity their portfolio. A mutual fund can effectively
diversify its portfolio because of the large corpus, However, a small investor cannot
have a well-diversified portfolio because it calls for large investment. For example,
a modest portfolio of 10 bluechip stocks calls for a few a few thousands.

• Convenient Administration.

Mutual funds offer tailor-made solutions like systeratic investment plans and
systematic withdrawal plans to investors, which is very convenient ic investors.
Investors also do not have to worry about investment decisions, they do not have
to deal with brokerage or depository, etc. for buying or selling of securities. Mutual
funds also offer specialized schemes like retirement plans, children's plans, industry
specific schemes, etc. to suit personal preference of investors. These schemes also
help small investors with asset allocation of their corpus. It also saves a lot of paper
work.

Costs Effectiveness

A small investor will find that the mutual fund route is a cost-effective method (the
AMC fee is normally 2.5%) and it also saves a lot of transaction cost as mutual
funds get concession from brokerages. Also, the investor gets the service of a
financial professional for a very small fee. if he were to seek a financial advisor's
15
help directly, he will end up paying significantly more for investment advice. Also,
he will need to have a sizeable corpus to offer for investment management to be
eligible for an investment adviser's services.

• Liquidity.

You can liquidate your investments within 3 to 5 working days (mutual funds
dispatch redemption cheques speedily and also offer direct credit facility into your
bank account Le. Electronic Clearing Services).

•Transparency.

Mutual funds offer daily NAVs of schemes, which help you to monitor your
investments on a regular basis. They also send quarterly newsletters, which give
details of the portfolio, performance of schemes against various benchmarks, etc,
They are also well regulated and SEBI monitors their actions closely

• Tax benefits.

You do not have to pay any taxes on dividends issued by mutual funds. You also
have the advantage of capital gains taxation. Tax-saving schemes and pension
schemes give you the added advantage of benefits under section

• Affordability

Mutual funds allow you to invest small sums. For instance. if you want to buy a
portfolio of blue chips of modest size, you should at least have a few lakhs of
rupoes. A mutual fund gives you the same portfolio for meager investment

16
Disadvantage of investing in mutual fund

➢ No choice to the investors -The investor can not choose the security they want
to invest in, or the security they want to sell. They are dependent on the fund
manager for this purpose. He decides where the investment should be made.

➢ Wrong call of the fund manager The investor faces the risk of the fund
manager not performing well. Also if the fund manager’s compensation is
linked to the funds’ performance, he may be tempted to show good result in
the short – term without paying attention to the expected long term
performance of the fund. This would harm the long term interest of the
investors.

➢ Expense ratio Management fees charged by the fund reduce the return
available to the investors. Though the maximum limit of the expense ratio is
2.5%. The higher the expense of the fund reduce the return is given to the
investor

➢ No discretion in withdrawal While investor in securities can decide the

amount of earning they want to withdraw a particular period , investor in
mutual fund have no such discretion as the amount of earning that are to be
paid out to the investors in a particular year is decided by the mutual fund .

➢ Uncertainty Today’s environment is characterized by a deep industrial

recession and consequent high level of default on loans provided by banking
sector to industry. In such a scenario, it may be prudent to look at the credit
quality aspect very carefully before investing in an income mutual fund.

17
Scope of the study
The project will give an idea to bank personnel an idea about the investment
behavior of the investors. It will guide them in creating strategies for sales force to
target their potential customers. Questionnaire developed for the survey will help
bank to identify its potential customers for its products like mutual fund. The study
will also guide them to identify the need of the up coming generation and their
investment styles which will help in development of the product for this generation.

Objective of study
The main objective of the research is the comprehensive study of banking products
like saving accounts, mutual fund. Different service charges charged by banks on
these products by banks and understanding the product. A comparative study of
various charges charged by bank. And the survey was carried to study the
investment behavior of investors. And to find out the potential customers for
products of standard bank like mutual fund

Objective of the survey

✓ To know the existing investment patter among different age groups and
different income group.

✓ To know the present portfolio of the investors, their perceptions about

different investment schemes, their investment concerns, their present
returns, and their future expectations from different investment schemes.

✓ To know the potential customers for the investment schemes: Mutual Funds
of Standard bank.

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 Review of literature
There used to be a time, not so long ago, when young boys doffed their caps as
their headmaster passed by; when the bank manager was held in such high regard
that it was inconceivable to question his authority; and when politicians were
revered as the custodians of a civilised society. And there also used to be that
enviable epoch when the consumer believed all he or she saw on television and a
comprehensive ad campaign could change the habits of a generation.

How adland must be missing these times as time moves on and behaviour changes.
However, the consumer no longer feels the need to reference its behaviour against
a small band of individuals and has slowly changed the shape of the authoritative'
pyramid it so longingly coveted. There is an ever increasing chasm of trust between
the historical mandarins and today's consumer, Today the trust in the
aforementioned has wavered considerably and in many cases vanished altogether.
And every brand now needs to consider what the trust deficit means to it. For
instance, a recent study undertaken by YouGov on behalf of Team spirit found that
only half of consumers claimed to trust banks and building societies and that just
5% trust investment companies and 8% insurance companies

By Joanne Parker, Managing Director of Team spirit, economics times.

There is no denying the fact that the financial services industry has gone through
the most change since the process of liberalization began a little over a decade ago.
And while indeed Regulation has played a key role in the transformation of Indian
banks, I would include three other broad factors that have been responsible for this
change. These are Technology. the Customer and Consolidation. The
demographics of our country will also be a key driver in creating a large retail
customer base that banks just cannot afford to ignore with 54% of the Indian
population under 25 years of age. As this population enters the wage earner'
category by the year 2011, the propensity to use multiple financial products will be
high. Over 60% of this age group will be under 40 years of age and a prime
customer segment for insurance, mutual funds, credit cards etc.

19
Already, many banks enjoy a higher cross-sell ratio with customers in the 25-35
age group than they do with older customers.

CHANGING FACE OF INDIAN BANKING by NAINA LAL KIDWAL,

Coming to banking again, Banks are offering facilities to suit every pocket and
every segment of the Society. Human capital of the banks is facilitated to fine tune
their skills and attitudes to handle any type of complex and challenging
environment to ensure the needs of the society are met. So to say, the bank staff are
fully equipped and empowered to handle the job. The core function of HRD in the
banking industry is to facilitate performance improvement, measured not only in
terms of financial indicators of operational efficiency but also in terms of the
quality of financial services provided. Factors like skills, attitudes and knowledge
of the human capital play a crucial role in determining the competitiveness of the
financial sector. The quality of human resources indicates the ability of banks to
deliver value to customers

Address by Shri Vepa Kamesam, Chairman, Governing Council, IDRBT,

Hyderabad and former Deputy Governor. Reserve Bank of India at the Meet of
General Managers in charge of HRD

Training at JNIBD, Hyderabad

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 Research Methodology

Types of Research - Descriptive study

Sampling - Convenient sampling

Types of Data Collected: -

Primary Data - Through Questionnaire

Secondary Data - through extensive search Websites and study material

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 Data Analysis
Table 1 Age Distribution in Sample

Age Frequency Percentage

18-25 9 22.5
26-35 11 27.5
36-50 10 25
Above 50 10 25
Total 40 100

AGE

Above 50 18-25
25% 22%

35-50 26-35
25% 28%

For the study proper attention was paid on the selection of respondent. a proper
proportion of different age group were taken for study .22.5%of the respondent are
from age group of 18 - 25, 27.5% from 26 -35, 25% from age group 36 -50. and
25% above the age group of 50 years.

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Table 2 Types of Investors as per age

Age Aggressive Moderate Conservative Total

18-25 5 3 1 9
26-35 6 4 1 11
36-50 2 5 3 10
Above 50 0 6 4 10

Conservative Moderate Aggressive

0
18-25 26-35 35-50 Above 50

On doing the survey it was found that mostly people in every age group are safe
investors. They do not prefer taking any risk while investing and like to maintain
the risk free portfolio. Survey shows that in age group 18- 25 and 26 - 35 there are
55.5% and 54.5% are very aggressive style of investment. as this age group is
young and in this growing economy of India their savings have increased so this
pattern can be seen. As the age of person increases he tries to save guard his hard
earned money this behaviour can be seen in age group above 50 here the
conservative style is seen in 60% of the people.

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Table 3 Investment made in group as per age

Age Mutual Insurance Fixed Total

Fund Deposit
18-25 5 2 2 9
26-35 4 2 5 11
36-50 3 4 3 10
Above 50 1 4 5 10

MF Insurance FD

0
18-25 25-36 36-50 Above 50

Sample taken for study shows different investment strategies indifferent age group.
In age group 18 -25 there are large number of investor who have invested in mutual
fund. In age group 18 - 25, 55.5% investment are made in mutual fund respectively.
In age group 26 – 35 44.4% people have invested in Insurance and FD

In age group 36 -50 we see a mixed behaviour this age group is moderate in its
investment style. People above 63.6% have parked their funds usually in fixed
deposit schemes or in insurance.

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Table 4 Investment made as per income

Studying the survey data revels that according to income the investment strategies
opted by people differ according to income level. Income group Rs

15000- 30000 monthly have made their maximum investment in MUTUAL FUND
and mutual fund. Almost 48.4% have invested in MUTUAL FUND and 28.6% in
mutual fund. in Income group Rs30000 - 50000, 68.8% of respondent have invested
their money in Mutual fund and mutual funds. In income group above s50000 there
most of the investor have made investment in fixed deposit and insurance.
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Table 5 Influence on Investment Decision

Frequency Percentage
Agent/ Broker 17 42.5
Peers 13 32.5
Self Analysis 10 25
Total 40 100

INFLUENCE

Self analysis

Agent / Broker

peer

Survey shows that 42.5% of people are influenced by their agents or broker. This
behaviour revels that sales force of banks is the major factor to turn the investment
need of people into final investment of their investment option.

Second influencing factor that is the effect of peers is seen to be 32.5% among
respondents, thus we can say that a large portion of population are influenced by
their peers and their experiences.

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Table 6 Reason for investment

Frequency Percentage
Increase of Wealth 18 45
Monthly income 10 25
generated
Safety of principle 12 30
Total 40 100

REASON FOR INVESTMENT

Safety of principle

Increase of wealth

Monthly income
generated

After going through the survey data we come to know that a major portion of
population makes investment in different investment option to increase their wealth
and this group is 45% in size of total population. 30% of the respondent are
concerned about the safety of their principal amount invested. In other words they
are moderate risk taker and want security of their funds first. 25% of the people
make investment to get good monthly return.

27
 Limitations

1) The number of respondents taken for study is small as compared to population

so it does not represent the true picture of whole population.

2) Due to time limitations the sample size is not satisfactory and may influence the
final findings.

3) The time period for the study was 8 weeks which was insufficient for such an
extensive study.

4) Non participation of respondents.

5) There can be error in Sampling

6) lack of experience of the researcher

7) insufficient financial resources for the survey are a constrain in study

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 Suggestions
The segment (18-25) can be a potential customer segment for the bank as most of
the people are falling in the income group of less than Rs.15000 per month, or
Rs15000 - 30000 per month. The company can target this segment by offering its
LIP product both as an insurance and investment product, which can provide high
returns as the investments and provide the insurance cover too, as a large segment
doesn't have an insurance cover.. Mutual Fund Schemes can also be offered to those
respondents in this age group who are risk takers as in mutual funds small amounts
can invested.

In order to tap the larger segment of 26-35 years age group customers MUTUAL
FUND can be promoted as an investment option rather than an insurance product.
though this group is making most of its investment in MUTUAL yet there remains
a large portion of this population to be taped M. Mutual funds can be the best
investment option for this segment.

As the segment 36-50 years is an investing and risk taking segment. Mutual funds
promising higher returns can be promoted in this segment. The product MUTUAL
FUND is also highly acceptable by this segment, so these products can be promoted
as a best investment options promising high returns and low risks. This group has
a mix portfolio and there are moderate investors who can be converted into
potential customers for mutual fund if they are provided good returns and better
services.

In the segment of 50 & above age group people be targeting for the Mutual funds
as can be seen that very few people are investing M.Fs. this is because this segment
consists of risk averters as this segment have invested in Fixed Deposits and
government securities and insurance than any other investment product as safety is
the most important factor which is being considered while investing by this
segment. But these people are neutral for these investments.

Thus theses products can be promoted as safe investments and better than

29
FD's only then this segment can be tapped for mutual fund and MUTUAL FUND.

The income bracket less than Rs.15000 per month are basically safe investors and
have not and do not prefer investing in mutual funds except some risk takers. But
they have started investing in MUTUAL FUND as it gives good return and
insurance cover. Thus positioning of these products should be such that people are
attracted towards this scheme. Emphasis on marketing of the products should be
given..

Income Bracket of Rs.30000-Rs.50000 are the strong contenders for investing their
money and these people have invested mutual fund, insurance and fixed deposits.
Moreover there is mixed preferences for their investments thus proper
segmentation of the sample should be done accordingly marketing strategies should
be adopted.

Though there is a small percentage of respondents in income bracket above

Rs.50000 who least prefer investing in MUTUAL FUND. But this is the segment
which can be well targeted and their portfolio should be such that gives them more
returns.

The case of mutual fund is different as people strongly prefer investing in this
investment strategy. Thus emphasis for selling mutual fund in this income bracket.

Our survey reveals that most of the investor reinvest their amount money received
after maturity with the same organization if the services provided are good and
returns in comparison to others are better. To create loyalty from customers
institutions should give importance to their customers and make their investment
process simple and easy. Rate of return should be comparative to other institutions.

30
 Conclusion
The researcher has found that bank has a market segment of higher income group
investors, it has a loyal customers due to better service provided by its employee.
As the research was carried on to find the potential customers for the bank and
seeing the market segment of the bank I could say that standard chartered should
give proper training to its sales to convert the higher income group segment for its
product like mutual fund as this segment invest their money for good return they
should be provided better investment strategies. Researcher has also come to know
that with the economic growth of India the investment patter of investor is
changing, the young age group can be targeted for mutual funds having income of
Rs15000 -30000.

Investment behavior is based on uncertainty about the future and is thus

risky. News and rumors and speed and availability of information play important
roles in investment markets. Risk propensity, risk preference, and attitude are the
major concepts and explanations of investment behavior.

31
 Bibliography
WEBSITES:

www.mutualfundsindia.com

www.valueresearchonline.com

www.myiris.com

www.standardchartered.com

www.hindubusinessline.com

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Questionnaire Sample

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34