Black Book

Matushri Pushpaben Vinubhai Valia College Of Commerce
MATUSHREE PUSHPABEN VINUBHAI VALIA COLLEGE OF

COMMERCE-DEGREE
BORIVALI (WEST) MUMBAI-400092
PROJECT NO: STUDY ON E-COMMERCE IN INVESTMENT

MANAGMENT
A PROJECT SUBMMITED TO
UNIVERSITY OF MUMBAI
SUBMMITED BY-PRABHAS MAKWANA
ROLL NO: 647
SEMESTER (V)
PROJECT GUIDE: MANOJ UPATHYA
TYBMS (FINANCE)
ACAEDEMIC YEAR 2019-20
1
DECLARATION
I the undersigned Mr. PRABHAS MAKWANA hereby, declare that the work
embodied in this project work titled “STUDY ON E-COMMERCE IN
INVESTMENT MANAGEMENT (WITH RESPECT TO MUTUAL FUNDS)”
forms my own contribution to the research work carried out under the guidance of
PROF.MANOJ UPADHYA is a result of my home research work and has not
been previously submitted to any other University for any other Degree/Diploma to
this or any other University .Wherever reference has been made to previous work of
others, it has been clearly indicated as such and included in the bibliography. I, hereby
further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.
Signature
(PRABHAS MAKWANA)
CERTIFIED BY
PROF .Manoj Upadhya
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ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.
I would like to acknowledge the following has being idealistic channel and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.
I would like to thank my Principal Prof.V.Manikandan and our for providing the
necessary facilities required for completion of this project.
I take this opportunity to thank my Co-ordinator Prof. Manoj Upadhya for his
moral support and guidance take this opportunity to thank our coordinator for his
moral support and guidance.
I would also like to express my sincere gratitude towards my project guide Prof.
Manoj Upadhya whose guidance and care made the project successful.
I would like to thank my College Library for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project, especially my Parents and Peers who supported
me throughout my project.
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INDEX
Chapter Particulars Page no.

no.
1 Organization Profile 5
2 ITRODUCTION 9
3 OBJECTIVE OF STUDY 21
4 SCOPE OF STUDY 22
5 SIGNIFICANCE OF THE STUDY 23
6 LITERATURE REVIEW 24
7 RESEARCH METHODOLGY 25
8 DATA ANALYSIS AND INTERPRETATION 26
9 FINDINGS 46
10 SUGGESTION 49
11 LIMITATIONS 50
12 CONCLUSION 51
13 REFRENCES/BIBLOGRAPHY 52
14 ANNXURE 53
4
STUDY ON E-COMMERCE IN INVESTMENT MANAGEMENT

Organization Profile
1. Profile
Name of your company: Nayan M. vala Securities Ptv. Ltd .
Member Of : NSE, BSE
Date of established : 1989
Website Name : nayan m vala ptv ltd
Email ID:info@nayanmvala.com
Address: 403/404, Cosmos Court,

Above Waman Hari Pethe Jewellers,
S. V. Road, Vile Parle (West),
Mumbai-400056. India
2. Organization and its founder
Name of founder: Mr. Nayan M. vala
3. Director of the company
DOB: Mr. Dharmesh N. vala
5
Vision & Mission
Visoin:
To serve as a positive catalyst in the process of wealth creation for our
customers, across the globe, through the financial markets.

Mision:
Our mission is wealth creation for our investors through innovative

products, trade, investments Strategies and personalized services. To
strive relentlessly and improve what we do and how we do it. As well as
earn and be worthy of our customers' trust.
6
ORGANIZATION STRUCTURE :-
Organizations are set up in specific ways to accomplish different goals,

and the structure of an organization can help or hinder its progress
towards accomplishing these goals. Organizations large and small can
achieve higher sales and other profit by properly matching their needs
with the structure they use to operate.
For an organization, the organizational structure is a hierarchy of people
and its functions. The organizational structure of an organization tells you
the character of an organization and the values it believes in.
Depending on the organizational values and the nature of the business,
organizations tend to adopt one of the following structures for
management purposes. Although the organization follows a particular
structure, there can be departments and teams following some other
organizational structure in exceptional cases. Sometimes some
organizations may follow a combination of organizational structures as
well
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WORK CULTURE :-
An organization is formed to achieve certain goals and objectives by
bringing individuals together on a common platform and motivating them
to deliver their level best. It is essential for the employees to enjoy at the
workplace for them to develop a sense of loyalty towards it.
Work culture plays an important role in extracting the best out of
employees and making them stick to the organization for a longer
duration. The organization must offer a positive ambience to the
employees for them to concentrate on their work rather than interfering in
each other’s work. It is the work culture which decides the way
employees interact with each other and how an organization functions.
In layman’s language work culture refers to the mentality of the
employees which further decides the ambience of the organization.
An organization is said to have a strong work culture when the employees
follow the organization’s rules and regulations and adhere to the existing
guidelines. However there are certain organizations where employees are
reluctant to follow the instructions and are made to work only.
8
CHAPTER-1
INTRODUCTION
Introduction to Mutual Funds-
A mutual fund is a professionally managed investment fund that pools money
from many investors to purchase securities. These investors may be retail or
institutional in nature.
Mutual funds have advantages and disadvantages compared to direct investing in
individual securities. The primary advantages of mutual funds are that they provide
economies of scale, a higher level of diversification, they provide liquidity, and they
are managed by professional investors. On the negative side, investors in a mutual
fund must pay various fees and expenses.
Primary structures of mutual funds include open-end funds, unit investment trusts,
and closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit
investment trusts that trade on an exchange. Mutual funds are also classified by their
principal investments as money market funds, bond or fixed income funds, stock or
equity funds, hybrid funds or other. Funds may also be categorized as index funds,
which are passively managed funds that match the performance of an index, or
actively managed funds. Hedge funds are not mutual funds; hedge funds cannot be
sold to the general public and are subject to different government regulations.
History of Mutual Funds-

A strong financial market with broad participation is essential for a developed
economy. With this broad objective India’s first mutual fund was establishment in
1963, namely, Unit Trust of India (UTI), at the initiative of the Government of India
and Reserve Bank of India ‘with a view to encouraging saving and investment and
participation in the income, profits and gains accruing to the Corporation from the
acquisition, holding, management and disposal of securities’. In the last few years the
MF Industry has grown significantly. The history of Mutual Funds in India can be
broadly divided into five distinct phases as follows:
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First Phase – 1964-87-

The Mutual Fund industry in India started in the year 1963 with formation of UTI in
1963 by an Act of Parliament and functioned under the Regulatory and administrative
control of the Reserve Bank of India (RBI). 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. Unit Scheme 1964 (US ’64) was the first
scheme launched by UTI. At the end of 1988, UTI had ₹ 6,700 crores of Assets under
Management (AUM).
Second Phase – 1987-93 (Entry of Public Sector Funds)-

The year 1987 marked the entry of public sector mutual funds set up by Public Sector
banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first ‘non-UTI’ mutual fund
established in June 1987, followed by Can bank Mutual Fund (Dec. 1987), Punjab
National Bank Mutual Fund (Aug. 1989), Indian Bank Mutual Fund (Nov 1989),
Bank of India (Jun 1990), Bank of Baroda Mutual Fund (Oct. 1992). LIC established
its mutual fund in June 1989, while GIC had set up its mutual fund in December 1990.
At the end of 1993, the MF industry had assets under management of 47,004crores.
Third Phase – 1993-03 (Entry of Private Sector Funds)-

The Indian securities market gained greater importance with the establishment of
SEBI in April 1992 to protect the interests of the investors in securities market and to
promote the development of, and to regulate, the securities market.
In the year 1993, the first set of SEBI Mutual Fund Regulations came into being for
all mutual funds, except UTI. The erstwhile Kothari Pioneer (now merged with
Franklin Templeton MF) was the first private sector MF registered in July 1993. With
the entry of private sector funds in 1993, a new era began in the Indian MF industry,
giving the Indian investors a wider choice of MF products. The initial SEBI MF
Regulations were revised and replaced in 1996 with a comprehensive set of
regulations, viz., SEBI (Mutual Fund) Regulations, 1996 which is currently
applicable. The number of MFs increased over the years, with many foreign sponsors
setting up mutual funds in India.
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Fourth Phase- since February 2003-

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29, 835 crores as at the end of
January2003, representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. 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, Consolidation and growth. As at the end of September, 2004, there were
29 funds, which manage assets of Rs.153108crores under 421 schemes.
Fifth Phase- since May 2004-
Since May 2014, the Industry has witnessed steady inflows and increase in the AUM
as well as the number of investor folios (accounts).
The Industry’s AUM crossed the milestone of 10 Trillion (10 Lakh Crore) for the first
time as on 31st May 2014 and in a short span of two years the AUM size has
crossed 15 lakh crore in July 2016.
The overall size of the Indian MF Industry has grown from 3.26 trillion as on 31st
March 2007 to 15.63 trillion as on 31st August 2016, the highest AUM ever and a
five-fold increase in a span of less than 10 years.
In fact, the MF Industry has more doubled its AUM in the last 4 years from 5.87
trillion as on 31st March, 2012 to 12.33 trillion as on 31st March, 2016 and further
grown to 15.63 trillion as on 31st August 2016.
The no. of investor folios has gone up from 3.95 crore folios as on 31-03-2014 to 4.98
crore as on 31-08-2016.
On an average 3.38 lakh new folios are added every month in the last 2 years since
Jun 2014.
The growth in the size of the Industry has been possible due to the twin effects of the
regulatory measures taken by SEBI in re-energizing the MF Industry in September
2012 and the support from mutual fund distributors in expanding the retail base.
MF Distributors have been providing the much needed last mile connect with
investors, particularly in smaller towns and this is not limited to just enabling
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investors to invest in appropriate schemes, but also in helping investors stay on course
through bouts of market volatility and thus experience the benefit of investing in
mutual funds.
In fact, even though FY 2015-16 was not a very good year for the Indian securities
market, the MF Industry witnessed steady positive net inflows month after month,
even when the FIIs were pulling out in a big way. This was largely because of the
‘hand-holding’ of the investors by the MF distributors and convincing them to stay
invested and/or invest at lower NAVs when the market had fallen.
Types of Mutual Funds Schemes-

It's important to understand that each mutual fund has different risk and reward
profiles. In general, the higher the potential return, the higher the risk of potential loss.
At the most basic level, there are three flavors of mutual funds: those that invest in
stocks (equity funds), those that invest in bonds (fixed-income funds), those that
invest in both stocks and bonds (balanced funds), and those that seek the risk-free rate
(money market funds).
Functional Classification of Mutual Funds-

1. Open-ended schemes:
In case of open-ended schemes, the mutual fund continuously offers to sell and
repurchase its units at net asset value (NAV) or NAV-related prices. Unlike close-
ended schemes, open-ended ones do not have to be listed on the stock exchange and
can also offer repurchase soon after allotment. Investors can enter and exit the scheme
any time during the life of the fund. Open-ended schemes do not have a fixed corpus.
2. Close-ended schemes-
Close-ended schemes have a fixed corpus and a stipulated maturity period ranging
between 2 to 5 years. Investors can invest in the scheme when it is launched. The
scheme remains open for a period not exceeding 45 days.
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3. Interval scheme-
Interval scheme combines the features of open-ended and close-ended schemes. They
are open for sale or redemption during predetermined intervals at NAV related prices.
Portfolio classcification-
1. Money Market Funds-
The money market consists of safe (risk-free) short-term debt instruments, mostly
government Treasury bills. This is a safe place to park your money. You won't get
substantial returns, but you won't have to worry about losing your principal.
2. Growth funds-
The main objective of growth funds is capital appreciation over the medium-to-long-
term. They invest most of the corpus in equity shares with significant growth potential
and they offer higher return to investors in the long-term. They assume the risks
associated with equity investments. There is no guarantee or assurance of returns.
These schemes are usually close-ended and listed on stock exchanges.
3. Income Funds-
Income funds are named for their purpose: to provide current income on a steady
basis. These funds invest primarily in government and high-quality corporate debt,
holding these bonds until maturity in order to provide interest streams. While fund
holdings may appreciate in value, the primary objective of these funds is to provide a
steady cash flow to investors. As such, the audience for these funds consists of
conservative investors and retirees. Because they produce regular income, tax
conscious investors may want to avoid these funds.
4. Balanced Funds-
The objective of these funds is to provide a balanced mixture of safety, income and
capital appreciation. The strategy of balanced funds is to invest in a portfolio of both
fixed income and equities. A typical balanced fund will have a weighting of 60%
equity and 40% fixed income
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Geographical Classification
1. Domestic funds-
Funds which mobilize resources from a particular geographical locality like a country
or region are domestic funds. The market is limited and confined to the boundaries of
a nation in which the fund operates. They can invest only in the securities which are
issued and traded in the domestic financial markets.
2. Offshore funds-
Offshore funds attract foreign capital for investment in ‘the country of the issuing
company. They facilitate cross-border fund flow which leads to an increase in foreign
currency and foreign exchange reserves. Such mutual funds can invest in securities of
foreign companies. They open domestic capital market to international investors.
Many mutual funds in India have launched a number of offshore funds, either
independently or jointly with foreign investment management companies. The first
offshore fund, the India Fund, was launched by Unit Trust of India in July 1986 in
collaboration with the US fund manager, Merrill Lynch.
Others-
1. Sectoral-
These funds invest in specific core sectors like energy, telecommunications, IT,
construction, transportation, and financial services. Some of these newly opened-up
sectors offer good investment potential.
2. Tax saving schemes-

Tax-saving schemes are designed on the basis of tax policy with special tax
incentives to investors. Mutual funds have introduced a number of taxsaving schemes.
These are close--ended schemes and investments are made for ten years, although
investors can avail of encashment facilities after 3 years.
3. Equity-linked savings scheme (ELSS)-

In order to encourage investors to invest in equity market, the government has given
tax-concessions through special schemes. Investment in these schemes entitles the
14
investor to claim an income tax rebate, but these schemes carry a lock-in period
before the end of which funds cannot be withdrawn.
4. Special schemes-
Mutual funds have launched special schemes to cater to the special needs of
investors. UTI has launched special schemes such as Children’s Gift Growth Fund,
1986, Housing Unit Scheme, 1992, and Venture Capital Funds.
5. Gilt funds-
Mutual funds which deal exclusively in gilts are called gilt funds. With a view to
creating a wider investor base for government securities, the Reserve Bank of India
encouraged setting up of gilt funds. These funds are provided liquidity support by the
Reserve Bank.
6. Load funds-
Mutual funds incur certain expenses such as brokerage, marketing expenses, and
communication expenses. These expenses are known as ‘load’ and are recovered by
the fund when it sells the units to investors or repurchases the units from withholders.
In other words, load is a sales charge, or commission, assessed by certain mutual
funds to cover their selling costs. Loads can be of two types-Front-end-load and back-
end load.
7. Index funds-
An index fund is a mutual fund which invests in securities in the index on which it is
based BSE Sensex or S&P CNX Nifty. It invests only in those shares which comprise
the market index and in exactly the same proportion as the companies/weight age in
the index so that the value of such index funds varies with the market index. An index
fund follows a passive investment strategy as no effort is made by the fund manager
to identify stocks for investment/dis-investment.
8. PIE ratio fund-

PIE ratio fund is another mutual fund variant that is offered by Pioneer IT! Mutual
Fund. The PIE (Price-Earnings) ratio is the ratio of the price of the stock of a
company to its earnings per share (EPS). The PIE ratio of the index is the weighted
average price-earnings ratio of all its constituent stocks. The PIE ratio fund invests in
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equities and debt instruments wherein the proportion of the investment is determined
by the ongoing price-earnings multiple of the market. Broadly, around 90% of the
investible funds will be invested in equity if the Nifty Index PIE ratio is 12 or below.
If this ratio exceeds 28, the investment will be in debt/money markets. to provide
superior risk-adjusted returns through a balanced portfolio of equity and debt
instruments.
9. Exchange traded funds-

Exchange Traded Funds (ETFs) are a hybrid of open-ended mutual funds and listed
individual stocks. They are listed on stock exchanges and trade like individual stocks
on the stock exchange. However, trading at the stock exchanges does not affect their
portfolio. ETFs do not sell their shares directly to investors for cash. The shares are
offered to investors over the stock exchange. ETFs are basically passively managed
funds that track a particular index such as S&P CNX Nifty. Since they are listed on
stock exchanges, it is possible to buy and sell them throughout the day and their price
is detmined by the demand-supply forces in the market. In practice, they trade in a
small range around the value of the assets (NAV) held by them..
Challenges faced by investors while Investing in Mutual Funds-

1. Expenses
Mutual funds can be your friend and your enemy when it comes to expenses. On the
plus side, some mutual funds do not have transaction fee making it a perfect
investment vehicle for someone that contribute a small amount on a regular basis —
i.e., automatic investment. On the down side, mutual funds charges annual expense
ratio on the entire investment. For example, if a fund has an expense ratio of 1% and
you have $10,000 in investment; the annual expense is $100. This is not too bad.
However, if you have $250,000, the annual expense is $2,500 — that’s a lot of
money!
2. Sub-Optimal Purchases
Mutual funds manager cannot hoard cash. When investors buy shares of a mutual
fund, the fund manager must turn around and buy shares of stocks that fit within
16
certain guideline specified by the prospectus. For example, if it’s a “Small Value
Fund”, the manager cannot buy a “Large Growth” stock even if it represents a better
buying opportunity. Additionally, if there are not enough good buying opportunities
to choose from, the fund manager is forced to buy stocks that are less desirable.
3. Over Diversification
Either by design or as a consequence of the problem explained above, many mutual

funds suffer from over diversification. Basically, the fund has so much cash that it is
forced to own hundreds of stocks within its classification. Consequentially, it’s
impossible for the fund manager to focus on the high potential stocks and the mutual
fund becomes a closet index fund — i.e., simply reflecting the average within that
particular group.
4. Forced Redemption
Similarly, fund manager is forced to sell stocks when investors sell shares of mutual
fund and the fund doesn’t have enough cash reserve to meet the demand. Since
rushes of redemption usually happen when the market decline sharply — i.e., a
correction or a bear market — this is usually the worst time to sell stocks. However,
the fund manager has no choice and has to sell underlying stocks even if it’s not the
best financial decision to do so.
5. Tax Consequences
Lastly, mutual funds have a strange characteristic when it comes to taxes. You could
owe tax even if the value of your investment is going down! When a fund sells a
stock for a profit — whether it’s by design or forced — it passes the tax bill on to you
in the form of annual capital gains distribution. If your timing is bad, for example,
you buy just before the fund makes its capital gains distribution or you buy during the
year that the fund manager is taking a lot of profit; you could end up paying a very big
tax bill for no good reason.
INVESTMENT STRATEGIES-
17
There are various investment strategies in mutual funds. Some of the following are-
1. Systematic Investment Plan-

Under this a fixed sum is invested each month on a fixed date of a month. Payment is
made through post dated cheques or direct debit facilities. The investor gets fewer
units when the NAV is high and more units when the NAV is low. This is called as the
benefit of Rupee Cost Averaging (RCA).
2. Systematic Transfer Plan-

Under this an investor invests in debt oriented fund and gives instructions to transfer a
fixed sum, at a fixed interval, to an equity scheme of the same mutual fund.
3. Systematic Withdrawal Plan-

If someone wishes to withdraw from a mutual fund then he can withdraw a fixed
amount each month.
Introduction to E-Commerce-
18
E-commerce is the activity of buying or selling of products on online services or over

the Internet. Electronic commerce draws on technologies such as mobile
commerce, electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems.
Modern electronic commerce typically uses the World Wide Web (WWW) for at least
one part of the transaction's life cycle although it may also use other technologies.
Typical e-commerce transactions include the purchase of online books (such
as Amazon) and music purchases (music download in the form of digital
distribution such as iTunes Store), and to a less extent, customized/personalized
online liquor store inventory services.
There are four main types of ecommerce models that can describe almost every
transaction that takes place between consumers and businesses i.e. Business to
Consumer, Business to Business, Consumer to Consumer and Consumer to Business.
Ecommerce enables you to buy and sell products on a global scale, twenty-four hours
a day without incurring the same overheads as you would with running a brick and
mortar store. For the best marketing mix and the best conversion rate, an Ecommerce
venture should also have a physical presence; this is better known as a click and
mortar store.
E-commerce businesses may also employ some or all of the followings:
 Online shopping for retail sales direct to consumers via Web sites and mobile
apps, and conversational commerce via live chat and voice assistants.
 Providing or participating in online marketplaces, which process third-party
business-to-consumer or consumer-to-consumer sales
 Business-to-business buying and selling;
 Gathering and using demographic data through web contacts and social media
 Business-to-business (B2B) electronic data interchange
 Marketing to prospective and established customers by e-mail or fax (for
example, with newsletters)
 Online financial exchanges for currency exchanges or trading purposes.
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Internet has become an important medium for doing global business based on the
state of the art technology. Global business was conducted in a new way:
electronically, using networks and the Internet. The availability of Internet has led to
the development of E-Commerce (Electronic commerce), in which business
transactions take place via telecommunication networks. E-Commerce has two major
aspects: Economical and Technological. New standards and new facilities are
constantly emerging and their proper understanding is essential for the success of an
operation and especially for those who are assigned a duty to select, establish, and
maintain the necessary infrastructure.
E-Commerce in Mutual Funds-

A mutual fund is a professionally managed investment fund that pools money from
many investors to purchase securities. These investors may be retail or institutional in
nature.
Mutual funds have advantages and disadvantages compared to direct investing in

individual securities. The primary advantages of mutual funds are that they provide
economies of scale, a higher level of diversification, they provide liquidity, and they
are managed by professional investors. On the negative side, investors in a mutual
fund must pay various fees and expenses.
E-Commerce is becoming one of the fastest growing channels for commercial
transactions in India. More and more consumers are being added daily to the virtual
world. The acceptance of the technology will not only have repercussion to traditional
market such as clothes, books, electronic items etc but also to other markets that have
remained untouched till now.
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CHAPTER-2
OBJECTIVE OF THE STUDY
The study covers the following objectives-
1. To study the role of E-Commerce on Mutual Funds.
2. To gather information about impact on investors in mutual funds.
3. To understand the challenges faced by investors while investing in Mutual Funds.
4. To understand that what kind of Investment investors prefer while investing.
21
CHAPTER-3
SCOPE OF THE STUDY
The Researcher majorly focuses on Mutual Funds and how E-Commerce is

helping Mutual Funds to regulate. E-Commerce has basically grown a lot in now days
and has covered each and every field. Mutual funds sector is also covered by E-
commerce by means of Demat Account, Online Investment, Information available on
social Medias and advertisements etc. E-commerce helps investors to easily study
about different investment schemes and make decision with the help of it. Not only to
the investors but also to those who do not invest in Mutual Funds it can useful for
study material where they can get a glimpse of the current market situation and
position by the means of E-Commerce.
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CHAPTER-4
SIGNIFICANCE OF THE STUDY
The significance of the study consists of the Investors Investing in Mutual Funds
or any other schemes along with Non investors. The population under study is
different in Age, Gender, Educational qualification, average family monthly income
and occupation of the income. Mumbai being an urban city and with high income and
education, Residents are expected to be ideal respondents for a study of the type
proposed to be undertaken. Due to limitation of time and other resources the analysis
and study can be conducted in a single city itself. Hence it is expected that the
gathered information is meaningful and useful.
CHAPTER-5
23
LITERATURE REVIEW
The world of finance has witnessed an exponential growth in the post information
technology revolution of the 1990s. The present study made an attempt to do a
diagnostic analysis of past literature, though a lot of research has been done on
investors' perception on mutual funds. In the present study, literature review on
various dimensions with respect to the measurement of performance, risk - return
trade off of mutual funds, and investors' awareness, education, and interest regarding
mutual funds was examined to clear the gateway for the upcoming researchers in the
field of the mutual fund industry.
Jack Treynor (1965) -

He developed a methodology for performance evaluation of a mutual fund that is
referred to as reward to volatility measure, which is defined as average excess return
on the portfolio. This is followed by Sharpe (1966) reward to variability measure,
which is average excess return on the portfolio divided by the standard deviation of
the portfolio.
Sharpe (1966) –
He developed a composite measure of performance evaluation and imported superior
performance of 11 funds out of 34 during the period 1944-63.
CHAPTER-6
24
RESEARCH METHODOLOGY
This report is based on Primary as well as Secondary data, however Primary data
collection was given more importance since it is only way to gather information from
the investors. One of the most important uses of Research Methodology is that it helps
in identifying the problem, collecting, analyzing the required information data and
providing an alternative solution to the problems. It also helps in understanding about
how people gather information about Mutual Funds and how what points they
consider while investing.
Data sources-
Research is totally based on primary data whereas secondary data can be used for
reference. Research has been done by collecting data from common public through
medium of questionnaire.
Secondary data is been gathered from social media and journals.
Sampling-
1. Sampling Procedure-
The samples were selected on random basis irrespective of them being investors or
non-investors. It was collected by the means of questionnaire method. The data has
been analyzed by mathematical and statistical tools.
2. Sample Size-
The sample size of my project is limited to 78 Respondents only. Out of which only
34 people have invested in Mutual Fund and the rest did not invested in the same..
CHAPTER-7
DATA ANALYSIS AND INTERPRETATION
25
The collected data was analyzed using simple statistical techniques.
Survey Results
1)
Sr. No Particulars Age distribution of
Respondents (%)
1 Less than 30 38.7
2 31-40 14.7
3 41-50 24
4 More than 51 22.7
Less than 30
31-40
41-50
More than 51
Interpretation- From the above table and graph it reveals that 38.7% of the
respondents were less than the age of 30, 14.7% between 31-40, 24% between 41-50
and 22.7% with age more than 51.
2)
Sr. No Particulars Gender distribution
of Respondents (%)
1 Male 62
26
2 Female 38
Male
Female
Interpretation- It is observed that that were 62% males and 38% females
respondents in the questionnaire conducted. It is assumed that Males invest more than
Females.
3
Sr. No Particulars Educational
qualification of
the respondents
27
(%)
1 Graduate/Post Graduate 40
2 Under Graduate 50.7
3 Others 9.3
Graduate/Post graduate
Under Graduate
Others
Interpretation- It is observed that among all the respondents 40% respondents

were graduate or post graduate whereas 50.7% were under graduate and 9.3% were
others.
4)
Sr. No Particulars Occupation of the
Respondents (%)
1 Government service 13.3
2 Private service 20
3 Business 28
28
4 Agriculture 1
5 Others 37.3
Government service
Private service
Business
Agriculture
Others
Interpretation- From the above table and pie chart t is observed that 13.3% of
respondents were from Government sector, 20% from private sector, 28% conducting
Business, 1% from Agriculture sector and 37.3 belonging to other field
5)
Sr. No Particulars Monthly Family
Income of the
Respondents (%)
1 Less than 10,000 9.3
2 10,001-20,000 4
3 20,001-30,000 18.7
4 30,001-40,000 25.3
5 More than 41,000 42.7
29
Less than 10,000

10,001-20,000
20,001-30,000
30,001-40,000
More than 41,000
Interpretation- It is observed that 9.3% of the respondents were having monthly

family income less than 10,000, 4% having 10,001-20,000, 18.7% with 20,0001-
30,000, 25.3% with 30,001-40,000 and 42.7% of respondents having monthly family
income more than 41,0000.
6)
Sr. No Particulars Investment avenues
adopted by
Respondents (%)
1 Fixed Deposit 55.9
2 Insurance 35.3
3 Mutual Funds 39.7
4 Post office 16.2
5 Shares/Debentures 36.8
6 Gold/Silver 26.5
7 Real Estate 13.2
30
60
50
40
30
20
10
0
it e s ce es er te
os nc nd ur iS lv sta
p ra u Offi t E
De su
a lF st be
n
ld
/ al
ed In tua Po e Go Re
D
Fix M
u s/
are
Sh
Interpretation- It is seen that among the respondents 55.9% of them invest in

Fixed deposit, 35.3% in Insurance, 39.7% in Mutual Funds, 16.2% in Post office,
36.8% in shares and debentures, 26.5% in gold and silver and 13.2% in Real Estate.
7)
Sr. No Particulars Preference of factors
while investing (%)
1 Liquidity 31.3
2 Low Risk 43.3
3 High Return 56.7
31
Liquidty
Low Risk
High Return
Interpretation- It is observed that Investors usually prefer high returns while

investing since the percentage of high return as preference factor is 56.7% whereas for
liquidty is 31.3% and for low risk is 43.3%
8)
Sr. No Particulars Awareness about mutual funds to
respondents (%)
1 Yes 79.7
2 No 20.3
32
Yes
No
Interpretation- Among the respondents 79.7% of the respondents are aware about
Mutual Funds and the rest 20.3% are not much aware of Mutual Fund
9)
Sr. No Particulars Source of
information for
Respondents (%)
1 Advertisement 57.1
2 Financial Advisors 41.4
3 Bank 34.3
4 Social Media 38.6
33
60
50
40
30
20
10
0
Advetisement Financial Advisors Bank Social Media
Interpretation- It is observed that 57.1% times Respondents get information from

Advertisement, 41.4% from Financial advisors, 34.3% times from Bank and 38.6%
times from Social Media.
10)
Sr. No Particulars Reason for not
investing in M.F (%)
1 Not Aware 15.9
2 Higher Risk 22.2
3 Not any specific 65.1
Reason
34
70
60
50
40
30
20
10
0
Not Aware Higher Risk Not any specific reason
Interpretation- From the response of respondents it is seen that 15.9% of

respondents do not invest in M.F since they are not aware about M.F, 22.2% think its
High Risky and 65.1% do not have any specific reason.
11)
Sr. No Particulars Mode of Investment
Preferred by
investors (%)
1 One time Investment 27.9
2 S.I.P 72.1
35
One time Investment

S.I.P
Interpretation- It is observed that 27.9% of the respondents do One time

Investment and the rest 72.1% do Small Investment Planning i.e. S.I.P.
12)
Sr. No Particulars Preferred portfolio
by Respondents (%)
1 Equity 38.7
2 Debt 17.7
3 Balanced 58.1
36
Equity
Debt
Balanced
Interpretation- While investing it is observed that Respondents prefer Balanced

portfolio where percentage goes to 58.1%, 38.7% for Equity and 17.7% for Debt
portfolio.
13)
Sr. No Particulars Time Intervals for
investing (%)
1 Once a year 38.9
2 Once in 2 years 12.5
3 Never 48.6
37
Once a year
Once in 2 years
Never
Interpretation- From the above data and pie diagram it is observed that 48.6% of
the respondents do not invest in mutual funds where as 12.5% invest once in 2 years
and 38.9% invest once in a year
14)
Sr. No Particulars Mutual fund scheme
used by respondents
(%)
1 Open Ended 30
2 Close Ended 8
3 Growth Fund 46
4 Sector Fund 12
5 Long Cap 32
6 Mid Cap 18
7 Others 22
38
50
45
40
35
30
25
20
15
10
0
Open ended Close ended Growth fund Sector fund Long cap Mid cap Others
Interpretation- It is analyzed that 30% respondents invest in open ended scheme,

8% times in close ended, 46% in growth funds, and 12% in sector funds, 32% in long
cap, 18% in mid cap and 22% in others than this.
15)
Sr. No Particulars Purchase of Mutual
Funds (%)
1 Direct from AMC’S 20
2 Brokers only 22
3 Broker/Sub-Broker 30
4 Other Sources 28
39
Direct from AMC'S

Brokers only
Broker/Sub-Broker
Other sources
Interpretation- It is observed that 20% of respondents purchase M.F directly from

AMC’S, 22% from Broker only, 30% from brokers as well as sub-brokers and 28%
from other sources.
16)
Sr. No Particulars Scheme of M.F opted
by Respondents (%)
1 SBIMF 10.9
2 UTI 15.2
3 HDFC 30.4
4 Reliance 32.6
5 ICICI Prudential’s 37
6 Others 30.4
40
40
35
30
25
20
15
10
0
SBIMF UTI HDFC Reliance ICICI prudentials Others
Interpretation- The most used scheme by respondents is ICICI Prudential’s with

37%, SBIMF with 10.9%, HDFC with 30.4%, UTI with 15.2%, Reliance with 32.6%
and others with 30.4%.
17)
Sr. No Particulars Rating on basis of
returns (%)
1 Highly Satisfactory 20
2 Satisfactory 15
3 Average 30
4 Dissatisfactory 20
5 Highly Dissatisfactory 15
41
Interpretation- It is observed that 20%
Highly Satisfactory
Satisfactory
Average
Dissatisfactory
Highly Dissatisfactory
of respondents give High Satisfactory on return of M.F, 15% Satisfactory, 30%

Average, 20% Dissatisfactory and 15% Highly Dissatisfactory.
18)
Particulars Satisfaction with
current Investments
(%)
1 Yes 82
42
2 No 18
Sr. NO Particulars Rating on basis of

Experience (%)
1 Highly Satisfactory 30
2 Satisfactory 10
3 Average 28
4 Dissatisfactory 12
5 Highly Dissatisfactory 20
Interpretation- It was analyzed that 82% of the respondents are satisfied with their
current investments and the rest 18% are not satisfied with their current investment.
19)
35
30
25
20
15
10
0
Highly Satisfactory Satisfactory Average Dissatisfactory Highly Dissatisfactory
43
Interpretation- From the above table and chart it is observed that 30% of
respondents are highly satisfied with experience of M.F whereas 20% are highly
dissatisfied, 28% average, 10% with satisfactory and 12% with dissatisfactory.
20)
Sr. No Particulars Suggestion for
investing in M.F (%)
1 Yes 57.7
2 No 42.3
Yes
No
44
Interpretation- It is observed that 57.7% of the respondents would like to suggest

non-investors to invest in Mutual Funds whereas 42.3% would not like to suggest to
invest in Mutual Funds.
CHAPTER-8
FINDINGS
Mutual Funds Investment is basically subjected to market risk. From the above
questionnaire method lots of conclusions come into the picture.
 While conducting the questionnaire the first thing considered was the age
distribution. It plays an important role while conducting an interview or
survey.
 Along with ages, Gender was also taken into consideration and it was
observed that Males invest more than females.
 Since in today’s time education is very much important and while investing
study is very important hence educational qualification of respondents was
also taken into consideration.
 Before investing an investor has to properly plan about how, when and how
much to invest. So when question arises that how much to invest than an
investor has to look at amount of earnings in a month or a year. Hence
Monthly family income of respondents was also as a factor into consideration.
Since income is earned by doing one or another activity. Therefore what kind
of activity n investor does or the occupation of respondents is also analyzed.
 It is observed that instead of investing particular scheme or Investment
avenue respondents tend to invest in many other fields too for getting more
output of the amount invested.
 Usually the basic tendency or mindset of the investor before investing is to
get returns or get better output of the amount invested. Hence before investing
45
an investor may think for Liquidity, low returns or higher returns. As a result
this was also taken into the report.
 Investors who tend to invest or who already is investing in a scheme or fund
they should have complete knowledge about the Investment. Hence it was also
analyzed in the report and the respond was positive.
 Another question asked to the respondent was that from where do they get
information related to investment and it was seen that through advertisement
number of investors grab information.
 Since Mutual Funds are subject to high risk so many times it is possibility that
investors may not invest in Mutual funds. As there are different kinds of
investment so respondent were asked that what kind of investment they prefer.
 Along with investment kind of portfolio is also important and was questioned
to the respondents.
 Since every investor has different thinking and mindset every investor will
invest as and when they want hence time period was also taken into
consideration.
 In mutual funds a lot of schemes are available like close ended, open ended,
long cap, mid cap etc hence it is also important to analyze that which scheme
do investor prefer more while investing and it was seen that growth funds
were the most used fund by respondents.
 Mutual Funds can be purchased either through brokers or many other ways
hence it was also studied while doing the research.
 In today’s time there are numerous funds and options or schemes were an
investor can invest and get returns on basis of their choice investment. While
conducting the research it was analyzed that among the asked schemes
Reliance was most used or adopted scheme for the respondents.
 While investing the main motive of an investor is to get returns of the invested
amount. In mutual funds it is a bit risky where an investor can have guarantee
of getting returns as it is said that Mutual Funds investment are subjected to
market risk. Hence respondents were given options to select and rate mutual
funds on basis of returns and the result was observed to be balanced. Not only
46
with the returns but an investor should also be satisfied with the current
investment and have faith for better returns.
 Mutual funds are up growing a lot in recent times as there is a lot of promotion
for this field. Mutual funds are not only for the one who earn the most but can
also be done with help of small funds. Respondent’s of the questionnaire was
also asked to answer that would they like to suggest anyone for investing in
mutual funds and the reply to the same was positive.
 By conducting the project and the survey method it was found that Mutual
Funds though are risky but people do invest since they feel it provide returns
too. Hence don’t judge a book just by its cover.
47
CHAPTER-9
SUGGESTIONS
While conducting the project there were certain cases where there was
information which I was not familiar too. According to the study and the analysis
conducted one suggestion I would like to give is that “Never judge a book by its
cover”. The meaning of the statement states that it is very well known to everyone
that Mutual Funds are risky investments but until and unless investor doesn’t face risk
they won’t get better returns. Another suggestion I would like to give is that have a
complete knowledge about the investment, study the market well and then only tend
to invest in the same and after investing regularly check the position where your
investment is standing. Every investment has ups and downs so don’t panic and just
wait a keep a hope for better results. The most important point that an investor should
keep in point is that never go for more expectations, keep the target and achieve the
same or else high expectations may lead to losses. Last but not the least an investor
should be active and be well known about market factors.
48
CHAPTER-10
LIMITATIONS OF THE STUDY
The study has been conducted by using secondary and primary data sources.
Resource and Time constraints led the researchers to select a limited sampling frame
for the purpose of the current research. The survey conducted in the course of the
study has been restricted to Mumbai suburbs only. The primary survey was done with
the help of questionnaire method which gave a assumed result since it was done on
sample basis. A better comparative analysis could have been undertaken if a few more
areas were incorporate in the study. Although the study offers exciting results and
some great managerial implication, Still the findings can be developed through the
study which might reveal variations due the different methods and implementing and
evaluating of the marketing strategy in various phases of learning and making it as a
benchmark.
Many times respondents just select the options without taking interest in the questions
hence the results tend to change. Another limitation is that it is not possible to tae
response of every investor hence sampling method is adopted and this may lead to
limitation of the respondents.
Along with time, Money also plays play role for limitations of the study as with help
of less finance all the needs can’t be fulfilled which restricts a researcher to be within
the boundaries.
49
CHAPTER-11
CONCLUSION
E-commerce basically is developing at a very high speed. E-commerce has
covered each and every field. In investment talking about Mutual funds E-commerce
has helped investor getting work easier. De-mat account has made easier to open
accounts in Mutual Funds, Getting information over companies websites, Updating
portfolio via internet and many more.
For the vast majority of the general public, investing means investing in mutual funds.
These convenient investment vehicles provide investors with a relatively easy-to-use,
effective means to accumulate savings over the long run. Because of the mutual fund's
important role in the investment activities of individual investors, it is necessary that
they understand how to make informed decisions regarding fund selection and
monitoring.
Whether you are a do-it-yourselfer, use an investment professional, or are a

participant in a self-directed retirement plan, being reasonably conversant with the
ABCs of a mutual fund is a valuable investing skill. Even if you do not have all the
answers to the questions surrounding successful fund investing, you should at least be
equipped with sufficient know-how to ask intelligent questions.
50
CHAPTER-12
REFRENCES
Social Media
Networking applications
Money Control
BIBLOGRAPHY
http://shodhganga.inflibnet.ac.in/bitstream/10603/687/10/10_chapter2.pdf
http://www.researchmethodology.com/wiki/terms
http://www.bseindia.com
http://www.moneycontrol.com
51
CHAPTER-13
ANNEXURE
1) Email address
Your answer
2) Age Distribution of the Respondents

Less than 30
31-40
41-50
More than 51
3) Gender of Respondents-
Female
Male
4) Educational qualification of Respondents

Graduate/ Post Graduate
Under Graduate
Other
5) Occupation of the Respondents

Govt. Service
Pvt. Service
Business
Agriculture
Others
52
6) Monthly Family Income

Less than 10,000
10,001-20,000
20,001-30,000
30,001-40,000
More than 40,000
7) Investors invested in different kind of investments.

Fixed deposits
Insurance
Mutual Fund
Post office (NSC)
Shares/Debentures
Gold/Silver
Real Estate
8) Preference of factors while Investing

Liquidity
Low Risk
High Return
9) Awareness about Mutual funds

Yes
No
10) Source of Information for customer about mutual funds

Advertisement
Financial advisors
53
Bank
Social Media
11) Reasons for not invested in Mutual Funds
Not Aware
Higher Risk
Not any specific Reason
12) Mode of investment preferred by investors

One time Investment
Systematic Investment Plan
13) Preferred portfolio by the investors

Equity
Debt
Balanced
14) How regularly you invest in Mutual funds
Once a year
Once in Two years
Never
15) Which Mutual Fund scheme you have used?
Open-ended
Close-ended
Growth-fund
Sector-fund
Long Cap
Mid cap
Others
54
16) Where from you Purchase Mutual Funds

Directly fromAMC's
Brokers only
Brokers/Sub-brokers
Other sources
17) In which Mutual Fund you have invested?
SBIMF
UTI
HDFC
Reliance
ICICI Prudential Funds
Others
Highly Satisfactory
18) Rating on
Satisfactory
the basis of
Average
Returns
Dissatisfactory
19) Are you satisfied with your current investments

Yes
No
20) Rating on the basis of Experience
Highly Satisfactory
Satisfactory
Average
Dissatisfactory
21) Would you like to suggest anyone for 55

investing in mutual funds
Yes
No

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Matushri Pushpaben Vinubhai Valia College Of Commerce

MATUSHREE PUSHPABEN VINUBHAI VALIA COLLEGE OF

BORIVALI (WEST) MUMBAI-400092

PROJECT NO: STUDY ON E-COMMERCE IN INVESTMENT

SUBMMITED BY-PRABHAS MAKWANA

ROLL NO: 647

PROJECT GUIDE: MANOJ UPATHYA

ACAEDEMIC YEAR 2019-20

PROF .Manoj Upadhya

Chapter Particulars Page no.

5 SIGNIFICANCE OF THE STUDY 23

8 DATA ANALYSIS AND INTERPRETATION 26

STUDY ON E-COMMERCE IN INVESTMENT MANAGEMENT

Member Of : NSE, BSE

Date of established : 1989

Website Name : nayan m vala ptv ltd

Address: 403/404, Cosmos Court,

Vision & Mission

Our mission is wealth creation for our investors through innovative

Organizations are set up in specific ways to accomplish different goals,

History of Mutual Funds-

First Phase – 1964-87-

Second Phase – 1987-93 (Entry of Public Sector Funds)-

Third Phase – 1993-03 (Entry of Private Sector Funds)-

Fourth Phase- since February 2003-

Fifth Phase- since May 2004-

Types of Mutual Funds Schemes-

Functional Classification of Mutual Funds-

2. Tax saving schemes-

3. Equity-linked savings scheme (ELSS)-

8. PIE ratio fund-

9. Exchange traded funds-

Challenges faced by investors while Investing in Mutual Funds-

Either by design or as a consequence of the problem explained above, many mutual

1. Systematic Investment Plan-

2. Systematic Transfer Plan-

3. Systematic Withdrawal Plan-

E-commerce is the activity of buying or selling of products on online services or over

E-Commerce in Mutual Funds-

Mutual funds have advantages and disadvantages compared to direct investing in

OBJECTIVE OF THE STUDY

The study covers the following objectives-

1. To study the role of E-Commerce on Mutual Funds.

2. To gather information about impact on investors in mutual funds.

3. To understand the challenges faced by investors while investing in Mutual Funds.

4. To understand that what kind of Investment investors prefer while investing.

SCOPE OF THE STUDY

The Researcher majorly focuses on Mutual Funds and how E-Commerce is

SIGNIFICANCE OF THE STUDY

Jack Treynor (1965) -

The collected data was analyzed using simple statistical techniques.

Interpretation- It is observed that among all the respondents 40% respondents

Less than 10,000

Interpretation- It is observed that 9.3% of the respondents were having monthly

Interpretation- It is seen that among the respondents 55.9% of them invest in

Interpretation- It is observed that Investors usually prefer high returns while

Interpretation- It is observed that 57.1% times Respondents get information from

Interpretation- From the response of respondents it is seen that 15.9% of

One time Investment

Interpretation- It is observed that 27.9% of the respondents do One time

Interpretation- While investing it is observed that Respondents prefer Balanced

Interpretation- It is analyzed that 30% respondents invest in open ended scheme,

Direct from AMC'S