Chapter-1 Introduction

Theoretical background 5 – 14
Different areas of Personal
15 - 47
Financial Planning

Chapter-2 Research design 48 – 51

Statement of Problem 49
Objectives of Study
50
Research Methodology
51
Sampling Technique
51
Sampling Size

Source of Data 51

51
Chapter-3 Company profile 51 – 55
Chapter-4 Analysis and Interpretation of 56 – 80
Data
Chapter-5 Summary of Findings, 81 – 83
Suggestions and Conclusion
Bibliography 84
Annexure 85 - 88
A mutual is a set up in the form of trust, which has sponsor, trustee, assets
management company(AMC) and custodian. Sponsor is the person who acts alone or
in combination with another body corporate and establishes a mutual fund. Sponsor
must contribute at least 40% of the net worth of the investment managed and meet
the eligibility criteria prescribed under the Securities and Exchange Board of India
(Mutual Funds) regulations, 1996. The sponsor is not responsible or liable for any loss
or shortfall resulting from the operations of schemes beyond the initial contribution
made by it towards setting up of Mutual Fund. Fund is constituted as a trust in
accordance with the provisions of the Indian Trust Acts, 1882 by the Sponsor. Trustee
is usually a company or a board of trustee. The main responsibility of the trustee is to
safe guard the interest of the unit holders and also ensure that AMC functions in the
interest of investors and in accordance with the securities and Exchange Board of
India Regulations 1996 the provisions of the Trust deed and the offer Document of the
respective schemes. The AMC is appointed by the Trustees as the investment
Manager of the Mutual Fund. The AMC is required to be approved by SEBI to act as
an asset management company of the Mutual Fund. The AMC if so authorized by the
Trust Deed appoints the Registrar and Transfer Agent to agent the Mutual Fund. The
registrar processes the application form, redemption requests and dispatches account
statements to the unit holders. The Register and Transfer agent also handles
communications with investors and updates investor records
Those who have a higher risk appetite and yearn for higher returns may to choose risk
bearing securities such as equities. Hence, Mutual funds come different schemes,
each with the different investment objective.
 ACKNOWLEDGEMENT

Before we get into thick of things, I would like to add a few words of appreciation for
the people who have been a part of this project right from its inception. The writing of this
project has been one of the significant academic challenges I have faced and without the
support, patience, and guidance of the people involved, this task would not have been
completed. It is to them I own my deepest gratitude.
It gives me Immense pleasure in presenting this project report on "COMPARATIVE
STUDY OF MUTUAL FUNDS IN INDIA". It has been my privilege to have a team of project
guide who have assisted me from the commencement of this project. The success of this project
is a result of sheer hard work, and determination put in by me with the help of my project guide.
I hereby take this opportunity to add a special note of thanks for Prof Manjot who undertook
to act as my mentor despite her many other academic and professional commitments. Her
wisdom, knowledge, and commitment to the highest standards inspired and motivated me.
Without her insight, support, and energy, this project wouldn't have kick-started and neither
would have reached fruitfulness.
I also feel heartiest sense of obligation to my library staff members & seniors, who
helped me in collection of data & resource material & also in its processing as well as in
drafting manuscript. The project is dedicated to all those people, who helped me while doing
this project.
Mutual fund is the pool of the money, based on the trust who invests the savings of a
number of investors who shares a common financial goal, like the capital
appreciation and dividend earning. The money thus collect is then invested in capital
market instruments such as shares, debenture, and foreign market. Investors invest
money and get the units as per the unit value which we called as NAV (net assets
value).
Mutual fund is the most suitable investment for the common man as it offers an
opportunity to invest in diversified portfolio management, good research team,
professionally managed Indian stock as well as the foreign market, the main aim of
the fund manager is to taking the scrip that have under value and future will rising,
then fund manager sell out the stock. Fund manager concentration on risk – return
trade off, where minimize the risk and maximize the return through diversification of
the portfolio. The most common features of the mutual fund unit are low cost.
Most open-end Mutual funds continuously offer new shares to investors. It is also
known as open ended investment company. It is different from close ended
companies.
Investment in securities are spread across a wide cross section of industries and
sectors thus the risk is reduced. Diversification reduces the risk because not all
stocks may move in the same direction in same proportion at same time. Mutual
funds issues units to the investors in accordance with quantum of money invested by
them. Investors of Mutual funds are known as “unit holders”. The profits and losses
are shared by the investor in proportion to their investment. The mutual fund comes
out with different schemes that varies from time to t
Conclusion
As the comparative study makes to find out so many answers to questions before
direct investing and mutual fund investing. The concluded points are:
 For a start-up investor mutual fund investment method is more favourable and
affordable, as risk is low compared to direct investing.

 For an investor with lessor money, he/she should go for mutual fund investing
as NAV is lower than the price of a stock.

 If an investor wants to make profits out of speculation then he should choose

direct investing in equity shares.

 Investing in direct equities makes an investor to study more about the

company, the financial market, and the economy.

 People need a systematic way of investing should go for mutual fund

investing.

 Investing with a fixed income strategy, should choose mutual fund as an

investment choice.

 Short term as well as medium term investors should choose direct equity
investing as an investment choice.

 Mutual fund investing is termed as a long-term horizon of getting a good

return, as the fund is going in a systematic way.

 If an investor has got time in making a market study and managing his/her
portfolio, should invest in equity shares directly, otherwise go for mutual fund
investing.

 If an investor like in buying and selling stocks, managing the stocks in his
portfolio should choose direct investing in equity stocks.

71 | P a g e
Recommendations
As the recommendations given here is my personal view as an investor in stock
market. My recommendations are:
 Direct investing in equity shares is the best way to learn about stock market
and economy of a nation.
 If you really enjoy in managing the portfolio, should choose direct investing.

 If you don’t know anything about stock market, just getting an income is your
concern, you should choose a mutual fund scheme.

 Make a good study before choosing an investment option.

 Be aware that investing in any securities whether direct investing or mutual

fund investing, involves a certain risk. Analysis the risk with the financial
backups and then choose an investment option.