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A STUDY ON COMPARITIVE ANALYSIS OF MUTUAL

FUNDS WITH EQUITY SHARES WITH REFERENCE TO
KARVY SERVICES KURNOOL, ANDHRA PRADESH.

INTRODUCTION

The concept of “Mutual Fund” is a new feature in the cap of Indian

capital market but not to international market. Three concept of mutual fund spread to USA
in the beginning of 20th century and three mutual fund companies were started in 1924.
Mutual funds have been successfully working in the USA and some western countries. These
funds have been useful in filling the gap between the demand and supply of capital in the
market. A mutual fund motivates small and big investors to entrust their savings to it so that
these are professionally employed in sharing good return. A large number of investors have
small savings with them. They can at the most buy shares of one or two companies. When
small savings are pooled and entrusted to mutual fund then these can be used to buy blue
chips where regular returns and capital appreciation are ensured.

Fund is an American concept. The terms like investment company,

money fund investment trust and mutual funds are used interchangeably and used to describe
the same thing in American literature. In British literature mutual funds has not been
explained but is considered as a synonym of investment trust of USA.

DEFINITION & MEANING

A mutual fund is an investment vehicle for investors, who pool their

savings for investing in diversified portfolio of securities with the aim of attractive yields and
appreciation in their value.

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WHY MUTUAL FUNDS

Let’s suppose you’re just getting started as an investor and have $5000 to
invest and you have three important goals you want to achieve. First you don’t want to lose
your money in a risky venture so you want to lose your money in a rissky venture so you
want security, like that found in a certificate of deposit or other fixed income investment. But
you also want to make the most money you can, so you want the prospect for growth
potential, too, finally, since you don’t have the time or knowledge to actively manage your
money, you want professional money management – occasionally diversifying your
investments into promising new oppurtunities. That sounds like a very good plan, but where
can you invest your money and have a chance to meet all three criteria? Certificates of
deposit and other fixed income investments offer security, but often wit low rates of interest
and a fixed potential for growth.

INTRODUCTION ON EQUITY SHARES

Early is a term commonly used to describe the ordinary share capital of

the business, ordinary share in equity capital of the business entitle the holders to all
distributed profits after the holders of debenturs and preferwnce shares have been
paid.ordinary shares are issued to the owners of the company.it is important to understand the
market values of company’s shares havelittle relationship to their nominal or face value. The
market value of the company share is detrmined by the price another investor is prepared to
pay for them. In the case of publicly quoted companied, this is reflected in the market value
of the ordinary shares traded on tne stock exchange. In case of privately owned
companies,where there is unlikely to be much trading in shares,market value is often
determined when the business is sold or when the minority share holding is valued for
taxation purpose

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Equity investment generally refers to the buying and holding of shares of

stock on a stock market by individuals and funds in anticipation of income from dividends
And capital gain as the value of stock rises. It also sometimes refers to the acquisition of
equity (ownership) participation in a private company or start up.when the investment is in
infant companies it is refer to as venture capital investing and is generally understood to be
higher risk than investment in listing,going concern situations.

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COMPANY PROFILE
KARVY COPORATE FINANCIAL SERVICES COMPANY

OVERVIEW
Karvy is a premier integrated financial services provider, and ranked among the
top five in the country in all its business segments, services over 16 million individual
investors in various capacities, and provides investors to over 300 corporate, comprising the
who is corporate india. Karvy cover the entire spectrum of financial services such as stock
brocking, depository participants,distribution of financial products – mutual funds, bonds,
fixed deposit, equities,insurance brokering =, commodities broking, personal finance
advisory services merchant banking & corporate finance,placement of equity, ipo’s, among
others. Karvy has a professional management team and ranks among the best in
technology,operations and research of varous industral segments.

HISTORY
Karvy group is one of the leading financial services conglomerate. Headquatered
in hyderebad, it offers a range of financial services including stock brokering, distribution of
financial products, depsitory participant, commodities broking, wealth management, and
more.

KARVY – CREDO
OUR FOCUS OUR CLIENTS

 Clients are the reason for our being.

Personalized service, professional care,proactiveness are the values that help us nuture
enduring relationship with our clients

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RESPECT FOR INDIVIDUAL

Each and every individual is an essentail building block of our organization

We are the klin that hones individuals to perfection. Be they our employees,
shareholders or investors. We do so by upholding their dignity & pride, including trust.

ACHIVEMENTS

 Among the top 5 stock brokers in india (4%of nsc volumes)

 India’s no.1 registrar & securities transfers agents

 Among the top 3 depository participants

 Argest distributor of financial Largest network of branches & business associates

 Iso 9002 certified operations by DNV

 Among top 10 investment bankers

 Largest distributors of financial products.

 Adjudged as one of the top 50 IT users in india by MIS asia

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METHODOLOGY OF STUDY

A) STATEMENT OF PROBLEM

 The mutual funds in india have been quite wrongly promoted aTs an
alternative to equity industry.

 Lack of adequate research infrastructure the passive approach of some

mutual funds in managing investor’s funds is compounded by the lack of
adequate research infrastructure.

 Inefficient management is considered to be a key factor for the operational

efficiency of any business venture.

 Lack of investor’s education the market success of any new product

particularly a financial product depends largely on its acceptance.

 Lack of media support investors understanding about mutual funds product

and its feature must be increased as t was founded to be very low so far.

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B) REVIEW OF LITERATURE:

Grinblattand titman (1989)

Concludes that some mutual funds consistently offer superior
returns.but expenses and load charges offset them. Them characteristics the efficient market
hypothesis.

Bansal’s bppk (1996)

“Mutual fund management & working” included a descriptive
study of concept mutual funds, management of mutual funds, accounting & disclosure
standards, mutual funds schemes etc.

Varma’s book (1997)

‘Guide to mutual funds & investment portfolios of Indian
mutual funds with some statistical data guidelines to the investors in selection of schems.

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NEED OF THE STUDY

 The need of study arises for learning the vehicles available that distinguish the
mutual fund of two companies.

 To know the risk & return associated with mutual fund.

 To choose best company for mutual investment

 To project mutual fund as the ‘productive avenue’ for investing activities.

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OBJECTIVES OF THE STUDY

 The main purpose is to study whether mutual fund is investors best choise or not.

 The objective of doing this project is to make a study of various comparision of

mutual funds with equity shares in the secondary market .

 To examine mutual funds investment with equity shares and also related to nifty and
sensex.

 To assist the company at large in deciding which investment provides best return
considering various points at a time.

 To study the performance of selected mutual fund companies and their performance in
one year.

 To reveal the current situation of mutual funds and equities as well as index in last
one year in india

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RESESRCH METHODOLOGY

All the information related to the topic needs to be carefully scrutinized to

aviod the risk of biased analysis. Having once identified which information is relavent and
need to be collected, we will have todefine how this will be done.
The method employed in the investigation depends on the purpose and
scope of the study. Let us try to understand methodology.

1 ) RESEARCH DESIGN: research design is some statement depends or specification

of procedures for collecting and analysis the information required for the solution of some
specific problems.

Here the exploratory research is used as investigation is mainly

concerned with detemining the trends and positive and negative returns in different sectors of
mutual funds and equities. Exploratory research is generally carried out by three sources of
information

A) study of secondary sources

B) discussion with individuals
C) analysing some specific areas

2) DATA COLLECTION METHODS: The key for creating usefull system are
selectively in collection of data and linking that selectively to the analysis and decision issue
of the action to be taken. The accurcy of collected data is of great significance for drawing
correct and valid conclusions from the investigation.
The following are the main steps in data collection process
a) Type of information required in the investigation.
b) Establishing the facts that are available at present and additional facts required.
c) Identification of sources from where the information can be available.
d) Selection of appropriation information i.e. collection method.

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3) SOURCES OF INFORMATION: Data available in marketing research are either

primary or secondary.
Primary data: primary data are generated in an investigation according to the needs of
problem in head. Primary data is collected using case study methods. There are some set of
qualitative techniques used for collection of some socio economic information about some
phenomenon.
Secondary data: secondary data can be defined as data collected by some one else for
purpose pther than solving the problem being investigated. Secondary data is collected
external sourses which include information published material of SEBI and some of the
information is collected online. The data sources also include various books, journals,
magazines, news papers, etc. The organisation profile is collected from branch manager.

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SCOPE OF THE STUDY

 The study covers the concept and details of mutual funds and introdution on equity.

 .To make people aware about concept of mutal funds.

 To advice where to invest or not to invest.

 The study also includes returns of equity, mutual funds and relative index of different
sectors.

 Eqities year high and low is also included in the study.

 The analysis part includes the present value of the mutual fund company.

 The study includes the information regarding the seletion of portfolio for different
funds in theory part

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LIMITATIONS

 Equity return is not taken from NSE stock exchange.

 The data of mutual fund companies and equity companies is taken only for 3&6
month and one year due to non availability of data.

 Due to limition of time all sectors are not studied, only selected sectors have been
studied.

 only growth funds are taken.

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