MENTORING REPORT

ON

A STUDY ON COMPARATIVE ANAYSIS OF INVESTMENTS

IN DIRECT EQUITY WITH MUTUAL FUNDS

Submitted in the Partial Fulfilment for the Requirement of Post

Graduate Diploma in Management
(PGDM-IB)

Submitted by:
Submitted to:
Rashmi Pandey,
Miss. DivyaKukreja Roll No. 41,
Finance Head, (Batch: PGDM- IB)
Genpact.

Jagannath International Management School

Kalkaji, New Delhi
 Declaration

IRashmi Pandey student of PGDM (IB) hereby declare:

I. Is my original work.

II. The information given above is correct.

III. I shall abide by the terms and conditions for sanction of the Post
graduate diploma in management.

IV. I have uploaded the desired documents in support of my claim.

Signature of the candidate

Rashmi Pandey
 ACKNOWLEDGEMENT

The successful completion of this project marks the beginning of a

learning experience of converting ideas and concepts into real life
practical system. This project along with the knowledge
enhancement has provided various useful professional life
experiences. It would be worthwhile here to mention the
contribution made by people around me leading to successful
completion of this project.

I would like to thank, with sincere gratitude, my project guide Mrs. Anju
Shukla for her able guidance and understanding which was a great
source of inspiration and motivation for me.
 EXECUTIVE SUMMARY

Each investment alternative has its own strengths and weaknesses.

Some options seek to achieve superior returns (like
equity), but with corresponding higher risk. Other provide
safety (like PPF) but at the expense of liquidity and
growth. Other options such as FDs offer safety and
liquidity, but at the cost of return. Mutual funds seek to
combine the advantages of investing in arch of these
alternatives while dispensing with the shortcomings.
Indian stock market is semi-efficient by nature and, is considered as
one of the most respected stock markets, where information is quickly
and widely disseminated, thereby allowing each securitys price to
adjust rapidly in an unbiased manner to new information so that, it
reflects the nearest investment value. And mainly after the introduction
of electronic trading system, the information flow has become much
faster. But sometimes, in developing countries like India, sentiments
play major role in price movements, or say, fluctuations, where
investors find it difficult to predict the future with certainty. Some of the
events affect economy as a whole, while some events are sector
specific. Even in one particular sector, some companies or major
market player are more sensitive to the event. So, the new investors
taking exposure in the market should be well aware about the
maximum potential loss, i.e. Value at risk.
It would be good to diversify ones portfolio to include equity mutual
funds and stocks. The benefit of diversification are that while risk
exposure from a particular asset may not be very high, it would also
give the opportunity of participating in the party in the equity markets-
which may have just begun- in a relatively safe manner(than investing
directly into stock markets). Mutual funds are one of the best options
for investors to choose from. It must be realized that the performance
of different funds varies time to time. Evaluation of a fund performance
is meaningful when a fund has access to an array of investment
products in market. An investor can choose from a variety of funds to
suit his risk tolerance, investment horizon and objective. Direct
investment in equity offers capital growth but at high risk and without
the benefit of diversification by professional management offered by
mutual funds.
 TABLE OF CONTENTS

Sr. PARTICULAR PAGE

No NO.
1 CHAPTER 1 - INTRODUCTION TO TOPIC 1-2

2 CHAPTER 2 - INTRODUCTION TO INDUSTRY 3-38

2.1 INVESTMENT AVENUES

2.2 INVESTMENT ALTERNATIVES

2.3 DIRECT EQUITY V/S MUTUAL FUNDS

2.4 ADVANTAGES OF MUTUAL FUNDS

2.5 DISADVANTAGES OF MUTUAL FUNDS

2.6 EQUITY DIVERSIFIED FUNDS

2.7 DIRECT EQUITY

3 CHAPTER 3 - RESEARCH METHODOLOGY 39-41

3.1 SCOPE OF STUDY

3.2 RESEARCH DESING

3.3 SOURCE OF DATA COLLECTION

3.4 SELECTION CRITERIA FOR SCHEMES

4 CHAPTER 4 - ANALYSIS AND FINDINGS 42-56

5 CONCLUSION 57-58

6 BIBLIOGRAPHY 59