A COMPARATIVE STUDY ON BANKING SECTOR MUTUAL FUNDS

INTRODUCTION TO BANKING SECTOR FUNDS

Mutual Funds are investment institutions set up to manage money pooled in from the public. The advantages of investing in Mutual Funds are the professional expertise they employ coupled with the variations offered on the basis of asset classification and the diversification of the chosen portfolio aimed at optimizing the risk for the required return. The benefits that can be accrued from Mutual Funds are

The schemes could be added to the portfolio with online updates for monitoring the performance of your investments in Mutual Funds.

The comprehensive search, which gets you the fund matching your criteria. The comparison of various schemes of different Mutual Funds based on the critical and most sought after investment criteria.

The analysis of different schemes and the outlook for the same. List of new launches in the market provided continuously.

Basically, Mutual funds are trusts that are formed to mobilize the savings from the people and pool them together to invest within the securities markets. The main advantage of mutual funds is that it is professionally managed. And the general idea is for investors to contribute small amounts into units in the various schemes, which in turn is deployed in the various markets. This way, any investor who is not in a position to directly invest in the markets can take advantage of this route.

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A COMPARATIVE STUDY ON BANKING SECTOR MUTUAL FUNDS

UTI is the oldest of Indian mutual funds, having entered the arena with the launch of the Unit Scheme - 64 in 1964, hence the alphanumeric name. It was only in 1998 that other public sector banks were allowed to enter into the segment which was followed by a whole range of Asset Management companies including almost all the leading international portfolio managers including Merrill Lynch, Templeton, and Prudential among others. There are several different ways one can diversify a portfolio, such as the different categories of the Morningstar style box, which contain several different asset classes. But another common way to diversify is between the various sectors of the economy. This is usually accomplished with mutual funds that concentrate in one of the major sectors, such as natural resources or utilities. This article will examine the nature and composition of sector funds and the advantages and disadvantages that they present to investors.

Sector fund
As the name implies, a sector fund is a mutual fund that invests in a specific sector of the economy, such as energy or utilities. Sector funds come in many different flavors and can vary substantially in market capitalization, investment objective (i.e. growth and/or income) and class of securities within the portfolio. Sector funds do not fall into a particular category in the Morningstar style box, such as large-cap value or mid-cap growth; instead, Morningstar ranks and analyzes sector funds in the following eight categories. 1. Real Estate Funds - These funds provide a way for smaller investors to participate in the gains from real estate without having to actually buy real property. They often provide both growth and income.

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A COMPARATIVE STUDY ON BANKING SECTOR MUTUAL FUNDS

2. Financial Funds - These funds invest in the financial industry. Holdings will include securities of investment, insurance, banking, mortgage and accounting firms.

3. Healthcare Funds - These funds can cover any kind of for-profit medical institution, such as pharmaceutical companies. Many of these funds also focus on biotechnology and the companies that make pioneering advances in this industry. 4. Technology Funds - These funds seek to provide exposure in the tech sector. This sector focuses primarily on computers, electronics and other informational technology that is used in a wide range of applications. 5. Communications Funds - These funds focus on the telecommunications sector, but can include internet-related companies. 6. Precious Metals Funds - These funds provide exposure to a variety of metals, such as gold, silver, platinum, palladium and copper. some sector funds focus on a specific subsector of the economy, such as banking or semiconductors. Morningstar classifies these funds into larger peer groups for analytical purposes.

Historical Performance
Investors who are considering sector funds should be prepared to accept greater risk and volatility than what they will endure in the broader-based funds and index funds. The various sectors of the U.S. economy have historically had higher highs and lower lows than the economy as a whole. Subsectors, such as biotechnology, can be even more volatile. But sectors do perform differently at various points in the overall economic cycle. Some sectors do well in bull markets but poorly in bear markets, while others can grow earnings even during sluggish periods and recessions. Sector funds also tend to have higher turnover than

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A COMPARATIVE STUDY ON BANKING SECTOR MUTUAL FUNDS

other types of funds, so tax-conscious investors should pay close attention to capital gains distribution rate

OBJECTIVES
1. PRIMARY OBJECTIVE TO know about the current Mutual funds available in India.

2. SECONDARY OBJECTIVE TO know how mutual funds are investing the funds in banking sector. .To suggest the investor about which mutual fund should be invested in to have better returns. To study the benefits of investing in different banking sector of funds. To know how to get more returns in banking sector funds.

NEED OF THE STUDY

Mutual Funds are financial intermediaries concern with the mobilizing savings of surplus income & channelization of these savings in those avenues where there is demand of funds. The main purpose behind this study of investment preferences in Mutual Funds is to see that how the investors are employing their resources in a manner to afford, combine benefits to low risks, steady or consistent returns, high liquidity & capital appreciation through diversification & Expert Management. Therefore the activities of mutual funds have both short & long term impact on the savings &

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A COMPARATIVE STUDY ON BANKING SECTOR MUTUAL FUNDS

capital market & the national economy. Mutual Funds, thus, assist the process of financial depending & intermediation.

SCOPE OF THE STUDY: Now a days good scope is their for the mutual funds .the financial managers as to decide whether he as to invest in share stock, bonds and sectors to get the more benefits for funds so invest in good profitability sector. Then the financial manager can reduce the risk from the investors. The scope of study is confirmed to the sectorial funds available in India mutual fund market

LIMITATIONS
The present project work is done to analyze the benefits of investing in banking sector funds. During the study the following limitations were faced. The study is purely historical, on the basis of which any conclusions cannot be taken. The period of study is only 45 days. The sector funds taken were only 9. The sector funds were studied only 9.

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A COMPARATIVE STUDY ON BANKING SECTOR MUTUAL FUNDS

RESEARCH METHODLOGY
A Research work requires a lot of information to be gathered. This information can be gathered through 2 sources. 1. Primary source of data collection: In this method, we collect the data for the first time i.e., first hand information through surveys, observations etc., 2. Secondary source of data collection: In this method we collect the information which is readily available. The present project work is depending on secondary sources of information gathering. 1. DATA COLLECTION In the present project work the data as been collected from readily available source that is secondary data like websites newspapers and magazines the sample size taken for study 9 companies THE WEBSITE VISITED 1. WWW.AMFI.COM.
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A COMPARATIVE STUDY ON BANKING SECTOR MUTUAL FUNDS

2. MONEY.REDIFF.COM.] DATA ANALYSIS The present project work as been analyzed using time series analysis with graphical presentation the formula applied in the calculation or as follow

COMPANY PROFILE NETWORTH

Ever since its inception in 1993, Networth Stock Broking Limited (NSBL) has sought t provide premium financial services and information, so that the power of investment is vested with the client. We equip those who invest with us to make intelligent investment decisions, providing them with the flexibility to either tap into our extensive knowledge and expertise or make their own decisions NSBL made its debut into the financial world by servicing Institutional clients, and proved its high scalability of operations by growing exponentially over a short period of time. Now, powered by a top-notch research team and a network of experts, we provide an array of retail broking services spanning entire India. Our strong support, technology-driven operations and business units of research, distribution and advisory coalesce to provide you with a one-stop solution to cater to all your broking and investment needs.

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A COMPARATIVE STUDY ON BANKING SECTOR MUTUAL FUNDS

NSBL is a member of the National Stock Exchange of India Ltd (NSE) and the Bombay Stock Exchange Ltd (BSE) in the Capital Market and Derivatives (Futures & Options) segment. We are Depository participants with Central Depository Services India (CDSL) and National Securities Depository (India) Limited (NSDL). Our customers have been participating in the booming commodities market with our membership at the Multi Commodity Exchange of India (MCX) and National Commodity & Derivatives Exchange (NCDEX) through Networth Stock.Com Ltd.

Our Mission "Achieving excellence in the creation, management and preservation of your net worth." Although much easier said than done, we do accomplish this through our constant efforts in challenging ourselves to exceed our clients expectations, not accepting mediocrity, and by fostering open relationships. We live our mission by providing solid financial strength, creative and innovative solutions, hands-on participation and unparalleled service... just ask our clients. my networth

With so many financial transactions carried out daily it is extremely difficult to keep track of the status for each and every one of them. Also, stacking the physical copies of contact notes, DP bills, ledgers etc can be a tedious task which is unavoidable as these documents are needed in calculating tax rebates. Moreover, it can be difficult dealing with different departments of a broking firm to get such details if the documents are not in place.

Advantage :
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A COMPARATIVE STUDY ON BANKING SECTOR MUTUAL FUNDS

1. We ensure that our business associates excel in their entrepreneurial venture 2. We provide extensive & continuous training on all our products & services 3. We give our business associates access to all our products & services, including our trading platform, at no extra cost 4. We provide Free online back office platform & online KYC tracking 5. We use the latest technology to provide seamless & speedy trading connectivity to all our business associates, across the country 6. We are flexible, transparent, ethical and service oriented at every step of the business 7. We provide innovative & effective marketing support to our business associates, which in turn helps them to acquire and retain clients 8. We provide the best support in the industry, through dedicated region wise associate support

NETWORTH TEAM EXPERTS

Owing to the vision and expertise of our team of experts, Networth has established itself As one of the premier financial services organization in India. Networth professionals form the backbone of the organization, pooling together their expertise from top financial service and broking houses. A strong team of professional, experienced and qualified human resources drawn from top financial service & broking houses form the back bone of our sizeable infrastructure. High technology orientation, the company's scalability of operations and the highest Level of service standards has ensured rapid growth in the number of locations & the Clients serviced in a very short span of time. S.P. Jain
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A COMPARATIVE STUDY ON BANKING SECTOR MUTUAL FUNDS

Chairman The primary force behind listing of Networth Stock Broking Ltd., and one of Networth's founder members, S.P. Jain has propelled the company forward from its very origins. With over 14 years of experience in the Capital market and Financial services, he is at the helm of NSBL, working closely with the research division and guiding the Organization to the forefront of financial services in India. Sathyan Rajan Managing Director With over a decade in the industry and experience in various capacities, Mr. Sathyan Rajan brings to NSBL, insights from the length and breath of the financial sector. He has previously worked with Karvy Stock Broking Ltd., one of the largest retail networks in the country, and was responsible for establishing the companys overseas network. His transition from research to sales marked a significant step in his career.

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