Project of Mutual funds

7/27/2019 Project of Mutual funds

1/41

A

PROJECT REPORT

ON

TO STUDY OF MUTUAL FUNDS IN RELATION WITH SYESTEMATICE INVESTMENT

PLAN AND COMPARING RETURNS IN VARIOUS SECTOR

AT

KARVY STOCK BROKING LIMITED, PUNE

SUBMITTED TO

UNIVERSITY OF PUNE

IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY

MISS.PRATIKSHA SANJAY RAHANE

UNDER THE GUIDANCE OF

PROF.NEHA SHAH

Amrutvahini College Of Engineering, Sangamner.

(Department Of MBA)

2013-2014


2/41

ACKNOWLEDGEMENT

Completing a project requires affirmative support and help of many people and I have to

acknowledge that this would certainly not have been possible.

It is always like honors to do work with Karvy stock broking company. I am very thankful to

Karvy stock broking company limited for giving me an opportunity for doing my summer

training program.

In particular, I would like to MR.C.Parthasarathy (chairman) for showing faith on me and for

providing their valuable guidance, constant encouragement and inspiration for completing this

report.I would also like to thankProf. Neha Shah my Project mentor, for her helpful guidance,

lessons and support in the completion of this report.

I would also like to thank andMR.c.parthasarathy for guiding me and providing the necessary

information which is helpful in my project and lastly my special thanks to finance department. I

am also grateful to the Karvy stock broking company who gave me full co-operation and support

by providing necessary inputs required at different stages of my project work.

Thanks and regards,

Pratiksha Sanjay Rahane


3/41

PREFACE

This Summer Internship Program has been carried out at Karvy stock broking limited.

as a part of academic requirement to learn various functions of finance department. A study of

this sort is intended to provide a fair idea of finance department in company.

This project gives the reasonable understanding of the organization its origin and different

services in the company. This depicts the picture of job satisfaction aspect that the

financeDepartment has to carry out.

DECLERATION

This is to declare that I, Pratiksha Sanjay Rahane, student of master in business

administration (prepaid course 2012-13), AVCOE, Sangamner have given original data

information to the best of my knowledge in the project report title TO STUDY THE MUTUAL

FUND IN RELATION WITH SYESTEMATICE INVESTMENT PLAN AND COMPARING

RETURNS IN VARIOUS SECTOR. Under the guidance of our teacherProf -Neha Shah and

that, no part of this information has been use for any other assignment but for the partial

fulfillment of the requirement towards the completion of the said course.

I have prepared this report independently &I have gathered all the relevant information

personally .I have prepared for this partial fulfillment of MBA finance.

I also agree in principal not to share vital information with any other person outside the

org.I will not submit the project report to any other university.


4/41

EXECUTIVE SUMMARY

The mutual fund industry in India was started in 1963 with the formation of Unit Trust of

India, at the initiative of the reserve Bank of India and the government of India. The objective

then was to attract the small investor and introduce them in market investment.

This project is entitled to do this study by KARVY Stock Broking Co. Ltd for Mutual Funds of

various companies.

KARVY Stock Broking Company was incorporated under the Companies Act, 1956, in

1999 and approved to act as the corporate client for all mutual fund Companies by SEBI. Vision

of the company is to be an attaining total competence in services has served as the building block

for creating a great financial enterprise, which stands solid on fortresses of financial strength our various companies.

The study of Mutual funds proved to be a good eye opener for the student seeking the

future in the world of stock market. So the topic selected is To study of mutual fund in relation

with systematic investment plan and comparing returns in various sectors.

The study, which I purse from the mutual funds gives, a proper direction one could get

from the study of this project.

Karvy Computershare Private Limited, today, is India's largest Registrar and Share Transfer

Agent servicing over300 corporatesand mutual funds and 16 million investors.

The investors should invest in mutual fund in long term period of time.

At Karvy Commodities, we are focused on taking commodities trading to new dimensionsof reliability and profitability. We have made commodities trading, an essentially age-old

practice, into a sophisticated and scientific investment option.

In India, it gained momentum only in 1980, though it began in the year 1964 with the unit trustof India launching its first fund, the unit scheme 1964.a mutual fund is nothing but a pool of the

investors fund. The pool of funds collected is invested in a portfolio of marketable securities.


5/41

This is essential for the scientific study & for ensuring that we have all relevant data for

making comparison &analysis. Technical speaking, processing implies editing, coding

classification & tabulation of collected data so that they are enable to analysis.

Mutual fund is upcoming field for investors to invest their money for better returns than any

other investment product.

Investors should invest in mutual funds as mutual fund has their superiority over other

investment product.

Company should use the analysis of Systematic Investment Plan as ready reckoner for investors to get

through guidanceInvestors have to create more awareness and highlight mutual funds to investors as a

new emerging avenue which could benefit them through its differentiating features and benefits.


6/41

INDEX

No Contents Page No.

1 Introduction

2 Objective

3 Industry Profile

4 Company Profile

5 Research Methodology

6 Conceptual Background

7 Data analysis and interpretation

8 Finding

9 Limitation

10 Suggestion

11 Conclusion

12 Annexure

13 Bibliography


7/41

1. INTRODUCATION

Like most developed and developing countries the mutual fund cult has been catching on in

India. There are various reasons for this. Mutual funds make it easy and less costly for investors

to satisfy their need for capital growth, income and/or income preservation. And in addition to

this a mutual fund brings the benefits of diversification and money management to the individual

investor, providing an opportunity for financial success that was once available only to a select

few.

Understanding Mutual funds is easy as it's such a simple concept: a mutual fund is a

company that pools the money of many investors -- its shareholders -- to invest in a variety of

different securities. Investments may be in stocks, bonds, money market securities or some

combination of these. Those securities are professionally managed on behalf of the shareholders,

and each investor holds a pro rata share of the portfolio -- entitled to any profits when the

securities are sold, but subject to any losses in value as well.

A mutual fund, by its very nature, is diversified -- its assets are invested in many different

securities. Beyond that, there are many different types of mutual funds with different objectives

and levels of growth potential, furthering your chances to diversify.

Mutual funds raise money bysellingsharesof the fund to thepublic, much like any other type of

companycansell stockin itself to the public. Mutual funds thentakethe money they receive

from thesaleof their shares (along with any money made frompreviousinvestments) and use it

topurchasevarious investmentvehicles, such asstocks,bondsandmoney market instruments. In

returnfor the money they give to the fund when purchasing shares, shareholders receive an

equitypositionin the fund and, ineffect, in each of its underlyingsecurities. For most mutual

funds, shareholders are free toselltheir shares at any time, although thepriceof a share in a

mutual fund willfluctuatedaily, depending upon theperformanceof the securitiesheldby the

fund.
http://www.investorwords.com/13835/seller.htmlhttp://www.investorwords.com/13835/seller.htmlhttp://www.investorwords.com/13835/seller.htmlhttp://www.investorwords.com/3930/public.htmlhttp://www.investorwords.com/3930/public.htmlhttp://www.investorwords.com/3930/public.htmlhttp://www.investorwords.com/992/company.htmlhttp://www.investorwords.com/992/company.htmlhttp://www.investorwords.com/11767/sell_stock.htmlhttp://www.investorwords.com/11767/sell_stock.htmlhttp://www.investorwords.com/11767/sell_stock.htmlhttp://www.investorwords.com/7230/take.htmlhttp://www.investorwords.com/7230/take.htmlhttp://www.investorwords.com/7230/take.htmlhttp://www.investorwords.com/4363/sale.htmlhttp://www.investorwords.com/4363/sale.htmlhttp://www.investorwords.com/4363/sale.htmlhttp://www.investorwords.com/10691/previous.htmlhttp://www.investorwords.com/10691/previous.htmlhttp://www.investorwords.com/10691/previous.htmlhttp://www.investorwords.com/3952/purchase.htmlhttp://www.investorwords.com/3952/purchase.htmlhttp://www.investorwords.com/3952/purchase.htmlhttp://www.investorwords.com/11788/vehicle.htmlhttp://www.investorwords.com/11788/vehicle.htmlhttp://www.investorwords.com/11788/vehicle.htmlhttp://www.investorwords.com/4725/stock.htmlhttp://www.investorwords.com/4725/stock.htmlhttp://www.investorwords.com/4725/stock.htmlhttp://www.investorwords.com/521/bond.htmlhttp://www.investorwords.com/521/bond.htmlhttp://www.investorwords.com/521/bond.htmlhttp://www.investorwords.com/16593/money_market_instruments.htmlhttp://www.investorwords.com/16593/money_market_instruments.htmlhttp://www.investorwords.com/16593/money_market_instruments.htmlhttp://www.investorwords.com/4244/return.htmlhttp://www.investorwords.com/4244/return.htmlhttp://www.investorwords.com/1726/equity.htmlhttp://www.investorwords.com/1726/equity.htmlhttp://www.investorwords.com/9552/effect.htmlhttp://www.investorwords.com/9552/effect.htmlhttp://www.investorwords.com/9552/effect.htmlhttp://www.investorwords.com/5954/securities.htmlhttp://www.investorwords.com/5954/securities.htmlhttp://www.investorwords.com/5954/securities.htmlhttp://www.investorwords.com/4467/sell.htmlhttp://www.investorwords.com/4467/sell.htmlhttp://www.investorwords.com/4467/sell.htmlhttp://www.investorwords.com/3807/price.htmlhttp://www.investorwords.com/3807/price.htmlhttp://www.investorwords.com/3807/price.htmlhttp://www.investorwords.com/2029/fluctuate.htmlhttp://www.investorwords.com/2029/fluctuate.htmlhttp://www.investorwords.com/2029/fluctuate.htmlhttp://www.investorwords.com/3665/performance.htmlhttp://www.investorwords.com/3665/performance.htmlhttp://www.investorwords.com/3665/performance.htmlhttp://www.investorwords.com/2299/held.htmlhttp://www.investorwords.com/2299/held.htmlhttp://www.investorwords.com/2299/held.htmlhttp://www.investorwords.com/2299/held.htmlhttp://www.investorwords.com/3665/performance.htmlhttp://www.investorwords.com/2029/fluctuate.htmlhttp://www.investorwords.com/3807/price.htmlhttp://www.investorwords.com/4467/sell.htmlhttp://www.investorwords.com/5954/securities.htmlhttp://www.investorwords.com/9552/effect.htmlhttp://www.investorwords.com/1726/equity.htmlhttp://www.investorwords.com/1726/equity.htmlhttp://www.investorwords.com/4244/return.htmlhttp://www.investorwords.com/16593/money_market_instruments.htmlhttp://www.investorwords.com/521/bond.htmlhttp://www.investorwords.com/4725/stock.htmlhttp://www.investorwords.com/11788/vehicle.htmlhttp://www.investorwords.com/3952/purchase.htmlhttp://www.investorwords.com/10691/previous.htmlhttp://www.investorwords.com/10691/previous.htmlhttp://www.investorwords.com/4363/sale.htmlhttp://www.investorwords.com/7230/take.htmlhttp://www.investorwords.com/11767/sell_stock.htmlhttp://www.investorwords.com/992/company.htmlhttp://www.investorwords.com/3930/public.htmlhttp://www.investorwords.com/13835/seller.htmlhttp://www.investorwords.com/13835/seller.html


8/41

Benefitsof mutual fundsincludediversificationand professionalmoney management. Mutual

fundsofferchoice,liquidity, and convenience, but chargefeesand oftenrequire.

While everyone dreams of a luxurious life, very few fulfill them. A luxurious life isgenerally linked with wealth. So, the question most people would like to know is: How

do I create wealth? Or how can I get rich? It's really not that difficult to create wealth.

It's just a matter of systematic planning and disciplined approach. Once you have smallamounts saved up, then you can start looking into ways to use that money to create more

money. Money can multiply through investments in the stock market, real estate,

commodities, etc. One avenue which invests in all is mutual funds. Therefore, one of the

crucial ways, people can build their core capital is by investing ina mutual fund.Once you have small amounts saved up, then you can start looking into ways to use that

money to create more money. Money can multiply through investments in the stock

market, real estate, commodities, etc. One avenue which invests in all is mutual funds.

Therefore, one of the crucial ways, people can build their core capital is by investing in amutual fund.

KARVY as Mutual Fund investment advisor

Investment is the stepping stone to achieving one's financial dreams. Mutual

funds offer an opportune way to long-term wealth creation. However, with

more and more funds flooding the market, the task of selecting the most

suitable scheme gets even more complicated. Mutual Fund Advisory Service at

Karvy guides you through this maze and ensures that your investments arebacked by our quality research. We, at Karvy help you to reach your goals by

offering:

Products of 33 AMCs Research reports (existing funds & NFOs; strategy reports etc.) Customized mutual fund portfolios Portfolio revision (depending on changing market outlook and evolving

trends)

Access to online consolidated portfolio statement
http://www.investorwords.com/461/benefit.htmlhttp://www.investorwords.com/461/benefit.htmlhttp://www.investorwords.com/9996/include.htmlhttp://www.investorwords.com/9996/include.htmlhttp://www.investorwords.com/9996/include.htmlhttp://www.investorwords.com/3104/money_management.htmlhttp://www.investorwords.com/3104/money_management.htmlhttp://www.investorwords.com/3104/money_management.htmlhttp://www.investorwords.com/3389/offer.htmlhttp://www.investorwords.com/3389/offer.htmlhttp://www.investorwords.com/3389/offer.htmlhttp://www.investorwords.com/2837/liquidity.htmlhttp://www.investorwords.com/2837/liquidity.htmlhttp://www.investorwords.com/2837/liquidity.htmlhttp://www.investorwords.com/1922/fee.htmlhttp://www.investorwords.com/1922/fee.htmlhttp://www.investorwords.com/1922/fee.htmlhttp://www.investorwords.com/10896/require.htmlhttp://www.investorwords.com/10896/require.htmlhttp://www.karvydistribution.com/v2/KFP_Login/KFP_Login.asphttp://www.karvydistribution.com/v2/KFP_Login/KFP_Login.asphttp://www.karvydistribution.com/v2/KFP_Login/KFP_Login.asphttp://www.investorwords.com/10896/require.htmlhttp://www.investorwords.com/1922/fee.htmlhttp://www.investorwords.com/2837/liquidity.htmlhttp://www.investorwords.com/3389/offer.htmlhttp://www.investorwords.com/3104/money_management.htmlhttp://www.investorwords.com/9996/include.htmlhttp://www.investorwords.com/9996/include.htmlhttp://www.investorwords.com/461/benefit.html


9/41

1. Sets the investor free from four main constraints:a. Convenience and Knowledge: The investor need not go through the

tedious task of research and stock selection and need not track the

market to manage the portfolio.

b. Time: Frees one from spending his precious time to track his portfolioevery day.c. Complexity: Frees from the complexity involved in equity and debt

markets.

2. Diversification: Investing in mutual funds enable a well-diversified portfolio,

with a very small amount of investment. Diversification across various

securities lowers the risk associated with investment.

3. Higher risk-adjusted returns: Majority of equity funds have outperformedindices while other avenues like fixed deposits, post-office schemes etc. have

delivered lower returns.4. Professional management: Investors purchase funds because they do not

have time or expertise to manage their own portfolio. A mutual fund is relatively

an inexpensive way for a small investor to get a full-time manager to create andmonitor his portfolio.

5. Low entry barrier: Any investor can invest in mutual funds. He need not

open a broking or a d-mat account to invest in mutual funds. Further, investment

can be made in mutual funds with an amount as low as Rs. 500.

6. Liquidity: Easy and fast redemption leads to high liquidity. Also, one can

enter and exit the fund (open-ended) depending on his discretion.

7. Transparency: The transparency levels are very high in this industry.Investors can view his fund's NAV on a daily basis. Also, majority of the fundsdisclose their portfolio holdings on a monthly basis.

8. Tax-saving: Mutual funds are exempted from capital gains arising out ofportfolio churning. If an investor shifts his holdings, he will have to pay these

taxes. Thus, mutual funds are a cost-efficient way of portfolio management.

Also, there are ELSS funds (tax saving funds) which help availing the benefit oftax-saving u/s 80C. As compared to other tax saving avenues, they have lowest

lock-in period and also offer higher return potential.

9. Innovative schemes to suit unique needs of different investors: There are

schemes that offer international diversification to reduce the geographical risk.

There are derivative funds which adopt various derivative strategies to gainfrom the either side movement of the market. Capital protection funds offer a

unique feature of capital protection coupled with market linked returns.


10/41

OBJECTIVE

1. To study the mutual fund industry in India.2. To know the trends of small investors towards the Systematic

Investment Plan (SIP)

3. To study the comparison of return in different sectors.


11/41

3. COMPANY PROFILE

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 investor services to over 300 corporate, comprising the who is

who of Corporate India. KARVY covers the entire spectrum of financial services such as Stock

broking, Depository Participants, Distribution of financial products like mutual funds, bonds,

fixed deposit, Merchant Banking & Corporate Finance, Insurance Broking, Commodities

Broking, Personal Finance Advisory Services, placement of equity, IPOs, among others. Karvy

has a professional management team and ranks among the best in technology, operations, and

more importantly, in research of various industrial segments.

Karvy Computershare Private Limited is a 50:50 joint venture of Karvy Consultants

Limited and Computershare Limited, Australia. Computershare Limited is world's largest --

and only global -- share registry, and a leading financial market services provider to the global

securities industry.

The joint venture with Computershare, reckoned as the largest registrar in the world,

servicing over 60 million shareholder accounts for over 7,000 corporations across eleven

countries spread across five continents. Computershare manages more than 70 million

shareholder accounts for over 13,000 corporations around the world.

Karvy Computershare Private Limited, today, is India's largest Registrar and Share

Transfer Agent servicing over 300 corporates and mutual funds and 16 million investors.

VALUES AND VISION

Attaining total competence in services has served as the building block for creating a

great financial enterprise, which stands solid on fortresses of financial strengthour various

companies.

MISSION


12/41

Our mission is to be a leading andpreferred service provider to our customers, and we aim to

achieve this leadership position by building an innovative, enterprising , and technology driven

organization which will set the highest standards of service and business ethics.

ACHIEVEMENTS

Indias No. 1 Registrar & Securities Transfer Agents Among the top 3 Depository Participants Largest network of Braches & Business Associates ISO 9002 Certified operations by DNV Among top 10 Investment bankers Largest Distributor of Financial Products. Adjudged as one of the top 50 It uses in India by MIS Asia Full Fledged IT driven operations.

ORGANIZATION CHART

Karvy Ltd.

Branch Franchise

Receptionist

Customer Care

Sales Co-coordinatorSales Executive Account HeadWeb Dealer


13/41

MUTUAL FUND INDUSTRY

SR. NO. FUND NAME

1. AIG Global Investment Group Mutual Fund2. Benchmark Mutual Fund3. Bharti AXA Mutual Fund4. Birla Mutual Fund5. BOB Mutual Fund6. Canada Robeco Mutual Fund7. DBS Chola Mutual Fund8. Deutsche Mutual Fund9. DSP Merrill Lynch Mutual Fund10.

Escorts Mutual Fund11. Fidelity Mutual Fund12. Fortis Mutual Fund13. Franklin Templeton Investments14. HDFC Mutual Fund15. HSBC Mutual Fund16. ICICI Prudential Mutual Fund17. IDFC Mutual Fund18. ING Mutual Fund19. JM Financial Mutual Fund20. JPMorgan Mutual Fund21. Kodak Mahindra Mutual Fund22. LIC Mutual Fund23. Lotus India Mutual Fund24. Mirae Asset Mutual Fund25. Morgan Stanley Mutual Fund26. PRINCIPAL Mutual Fund27. Quantum Mutual Fund28. Reliance Mutual Fund29. Sahara Mutual Fund30. SBI Mutual Fund31. Sundaram BNP Paribas Mutual Fund32. Tata Mutual Fund
http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM042http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM042http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM005http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM005http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM006http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM006http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM008http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM008http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM009http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM009http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM044http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM044http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM010http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM010http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM011http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM011http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM047http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM047http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM046http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM046http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM037http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM037http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM041http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM041http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM043http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM043http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM024http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM024http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM040http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM040http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM038http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM038http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM019http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM019http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM033http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM033http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM021http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM021http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM022http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM022http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM016http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM016http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM048http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM048http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM025http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM025http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM012http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM012http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM026http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM026http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM032http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM032http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM034http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM034http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM034http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM032http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM026http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM012http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM025http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM048http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM016http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM022http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM021http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM033http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM019http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM038http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM040http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM024http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM043http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM041http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM037http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM046http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM047http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM011http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM010http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM044http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM009http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM008http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM006http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM005http://www.mutualfundsindia.com/amc_snapshot.asp?amc_name=AM042


14/41

4. RESEARCH METHODOLOGY

MEANING OF RESEARCH:

Research is an art of scientific investigation. Research is considered as movement from the

known to unknown. It is actually a voyage of discovery. Thus it is original stock of knowledge

making for its advancement.

DEFINITIONS OF RESEARCH:

1. Research comprises defining and redefining problems, formulating hypothesis orsuggested solutions; collecting, organizing and evaluating data; making deductions and

reaching conclusions; and at last carefully testing the conclusions to determine whether

they fit the formulating hypothesis.-Clifford Woody

2. A careful investigation or inquiry specially through search for new facts in any branchof knowledge

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research isdone significantly. In it we study the various

steps that are generally adopted by are searcher in studying his research problem along with the

logic behind it. Research design plays an important role in collecting useful information in cost

effective manner. The flow of the research process is decided first hand, so that the conduct of

the research does not take an incorrect diversion from its objective. Research comprises defining

and redefining problems, formulating hypothesis, collecting, organizing, and evaluating data;

Making deduction and reaching conclusion and at last carefully testing the conclusion to

determine whether they fit the formulated hypothesis:


15/41

RESEARCH PROCESS

The research design is conceptual structure within which research is conducted; it constitutes the

blue print for the collection, measurement and analysis data.

DEFINING THE PROBLEM

RESEARCH PLAN

COLLECTION OF DATA

ANALYSIS OF INFORMATION

PRESENTATION OF INFORMATION


16/41

TYPES OF DATA:

Primary Data:

The first-hand information bearing on any research which has been collected by theresearcher may be called primary data.

Secondary Data:

This project undertaken does not need any primary data as the entire analysis is based on

the secondary data published by official sources of KARVY Stock Broking Ltd. The Secondary

Data on the other hand, are based on second-hand information. The data which have been

already been collected, compiled & presented easier by any agency may be used for the purpose

of investigated such data may be called Secondary Data.

Collecting the information with the help of fact sheets of various mutual funds, business

magazines, internet, and reference book. This project is based on secondary data.


17/41

5. CONCEPTUAL BACKGROUND

MUTUAL FUNDAn Overview

A MUTUAL FUND IS A POOL OF MONEY THAT IS

INVESTED IN VARIOUS SECURITIES AND PROFESSIONALLY

MANAGED BY AN INVESTMENT MANAGER

What is a Mutual Fund?

Like most developed and developing countries the mutual fund cult has been catching on

in India. There are various reasons for this. Mutual funds make it easy and less costly for

investors to satisfy their need for capital growth, income and/or income preservation. And in

addition to this a mutual fund brings the benefits of diversification and money management to

the individual investor, providing an opportunity for financial success that was once available

only to a select few.

Understanding Mutual funds is easy as it's such a simple concept: a mutual fund is a

company that pools the money of many investors -- its shareholders -- to invest in a variety of

different securities. Investments may be in stocks, bonds, money market securities or somecombination of these. Those securities are professionally managed on behalf of the shareholders,

and each investor holds a pro rata share of the portfolio -- entitled to any profits when the

securities are sold, but subject to any losses in value as well.

A mutual fund, by its very nature, is diversified -- its assets are invested in many different

securities. Beyond that, there are many different types of mutual funds with different objectives

and levels of growth potential, furthering your chances to diversify.

MUTUAL FUNDCONCEPT

A Mutual Fund is a trust that pools the savings of a number of investors who share a

common financial goal. The money thus collected is then invested in capital market instruments

such as shares, debentures and other securities. The income earned through these investments


18/41

and the capital appreciation realized is shared by its unit holders in proportion to the number of

units owned by them. Thus a Mutual Fund is the most suitable investment for the common man

as it offers an opportunity to invest in a diversified, professionally managed basket of securities

at a relatively low cost.

STRUCTURE OF MUTUAL FUND

Sponsor:

A Sponsor is any person who, acting alone or in combination with another body

corporate, establishes a MF. It obtains the certification of registration as a MF from SEBI. The

sponsor of a fund is similar to the promoter of a company. In accordance with SEBI Regulations,

the sponsor forms a trust and appoints a Broad of Trustees, and also generally appoints an AMC

as Fund manager. In addition, the sponsor also appoints a custodian to hold the fund assets. The

sponsor contributes at least 40% of the net worth of the AMC. It must have a sound financial

track record over five years prior to registration and general reputation of fairness and integrity

in all its business transaction.


19/41

Mutual Fund:

A MF is constituted in the form of a trust under the Indian Trusts Act, 1882. The instrument of

trust is executed by the sponsor in favor of trustees and is registered under the Indian

Registration Act, 1908. The fund invites investors to contribute their money in the common pool,

by the trust subscribing to units issued by various schemes established by the trust. The assets

of the trust are held by the trustees for the benefit of unit holders, who are the beneficiaries of the

trust. Under the Indian Trust Act, the trust or the fund has no independent legal capacity; it is the

trustee(s) who have the legal capacity.

Trustees:

Board of Trustees manages Mutual Fund and the sponsor executed the trust deeds. Mutual Fundsraise money through sale of units under one or more schemes for investing in securities. As per

SEBI Regulations, 1996 half of the trustees should be independent persons and they should not

be employees of AMC. As a trustee of Mutual Fund, he cannot be appointed as a trustee of

another Mutual Fund, until and unless he is an independent person or has permission from

Mutual Fund where his is a trustee. Trustee has right to appoint custodian and supervise their

activities.

For e.g. In Reliance Capital Mutual Fund the Trustee is Reliance Capital Trustee Co. Limited.

Asset Management Company:

The AMC, which is appointed by the sponsor or the Trustees and approved by SEBI, act like the

investment manager of the Trust. It functions under the supervision of its Board of Directors, and

also under the direction of the Trustees and SEBI. AMC, in the name of the Trust, floats and

manages the different investment schemes as per the SEBI Regulations and as per the

Investment Management Agreement signed with the Trustees.


20/41

Registrar and Transfer Agent:

The Asset Management Company if so authorized by the trust deed appoints the registered and

transfer agent to the mutual fund. The registrar processes the application form redemption

requests and dispatches account statement to the unit holder. The registrar and transfer agent also

handles communications with investors and update investors records.


21/41

TYPES OF MUTUAL FUNDS

Mutual Fund schemes may be classified on the basis of its structure and its investment objective.

Types of Funds, as per Structure.

1.Open-ended Fund/ Scheme :-An open-ended fund or scheme is one that is available for subscription and repurchase on

a continuous basis. These schemes do not have a fixed maturity period. Investors can

conveniently buy and sell units at Net Asset Value (NAV) related prices which are

declared on a daily basis. The key feature of open-end schemes is liquidity.

2.Close-ended Fund/ Scheme :-A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is

open for subscription only during a specified period at the time of launch of the scheme.

Investors can invest in the scheme at the time of the initial public issue and thereafter

they can buy or sell the units of the scheme on the stock exchanges where the units are

listed. In order to provide an exit route to the investors, some close-ended funds give an

option of selling back the units to the mutual fund through periodic repurchase at NAV

related prices. SEBI Regulations stipulate that at least one of the two exit routes is

provided to the investor i.e. either repurchase facility or through listing on stockexchanges. These mutual funds schemes disclose NAV generally on weekly basis.

3.I nterval Fund/ Scheme :-

These schemes combine the features of open-ended and closed-ended schemes. They may

be traded on the stock exchange or may be open for sale or redemption during pre-

determined intervals at NAV based prices.

Types of Funds, as per Investment.

1.Growth / Equi ty Ori ented Schemes :-It provides capital appreciation over the medium to long term. These schemes normally

invest a major part of their corpus in equities and are a good for investors having a long

term outlook seeking appreciation an over period of time.


22/41

2. I ncome / Debt Or iented Schemes:-It provides regular and steady income to investors. Such schemes generally invest in

fixed income securities such as bonds, corporate debentures, government securities and

money market instruments. Such funds are less risky compared to schemes.

3.Balanced Funds :-It provide both growth and regular income such as schemes invest both in equities and

fixed income securities in the proportion indicated in their offer documents. These are

appropriate for investors looking for moderate growth.

4.Money Market or L iquid Funds :-It provides easy liquidity, preservation of capital and moderate income. These schemes

invest exclusively in safer short-term instruments such as treasury bills, certificates of

deposit, commercial paper and inter-bank call money, government securities, etc. These

funds are appropriate for corporate and individual investors as a means to park their

surplus funds for short periods.

5.Gilt Funds :-Gilt funds invest exclusively in government securities which have no default risk.

Other Schemes:

1.I ndex Funds :-Index Funds republic the portfolio of a particular index such as the BSE Sensitive index,

S&P NSE 50 index (Nifty) etc. These schemes invest in the securities in the same weight age

comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise

or fall in the index, though not exactly by the same percentage due to some factors known as

tracking Error in technical terms. Necessary disclosures in this regard are made in the offerdocument of the mutual fund scheme.


23/41

2.Exchange Traded Funds ( ETFs) : -

ETFs may be described as baskets of securities that are traded, like individual stocks, on

an exchange. They are the funds/schemes which invest in the securities of only those sectors

or industries as specified in the offer documents. For E.g. Pharmaceuticals, Software, FMCG,

etc.

2.Tax Saving Schemes :-ELLSFUNDS (Equity Linked Saving Schemes)-

An ELLS is the mirror image of a diversified equity fund. This means the fund manager

will invest in shares of various companies across various industries.

What sets it apart is the added tax benefit, something a diversified equity fund does not

offer.ELLS Funds have a lock in period of three years. This could be restricting, but the lock in

period prevents unnecessary withdrawals and helps money grow over a period of time.

Spreading Risk:

An investor with a limited amount of fund might be able to invest in only one or two stocks /

bonds, thus increasing his or her risk. However, a mutual fund will spread its risk by investing a

number of sound stocks or bonds. A fund normally invests in companies across a wide range of

industries, so the risk is diversified at the same time taking advantage of the position it holds.

Also in cases of liquidity crisis where stocks are sold at a distress, mutual funds have the

advantage of the redemption option at the NAVs.

Liquidity:

You are free to take your money out of open-ended mutual funds whenever you want, no

questions asked. Most open-ended funds mail your redemption proceeds, which are linked to the

fund's prevailing NAV (net asset value), within three to five working days of your putting in

your request.


24/41

Variety:

Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two ways: first,

it offers different types of schemes to investors with different needs and risk appetites; secondly,

it offers an opportunity to an investor to invest sums across a variety of schemes, both debt and

equity. For example, an investor can invest his money in a Growth Fund (equity scheme) and

Income Fund (debt scheme) depending on his risk appetite and thus create a balanced portfolio

easily or simply just buy a Balanced Scheme.

Flexibility:

Mutual Funds offering multiple schemes allow investors to switch easily between various

schemes. This flexibility gives the investor a convenient way to change the mix of his portfolio

over time.

Convenience:

An investor can purchase or sell fund units directly from a fund, through a broker or a financial

planner. The investor may opt for a Systematic Investment Plan (SIP) or a Systematic

Withdrawal Advantage Plan (SWAP). In addition to this an investor receives account

statements and portfolios of the schemes.

Tax Benef its:

Any income distributed after March 31, 2002 will be subject to tax in the assessment of all Unit

holders. However, as a measure of concession to Unit holders of open-ended equity-oriented

funds, income distributions for the year ending March 31, 2003, will be taxed at a concessional

rate of 10.5%.

In case of Individuals and Hindu Undivided Families a deduction up to Rs. 9,000 from the Total

Income will be admissible in respect of income from investments specified in Section 80L,

including income from Units of the Mutual Fund. Units of the schemes are not subject to

Wealth-Tax and Gift-Tax.


25/41

Regulations:

Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly defined

rules, which govern mutual funds. These rules relate to the formation, administration and

management of mutual funds and also prescribe disclosure and accounting requirements. Such a

high level of regulation seeks to protect the interest of investors.

DISADVANTAGES OF MUTUAL FUND

A.No Control Over CostSince investors do not have a direct control over the monitoring, hence they cannot

control the cost.

B.No Trailer made Portf olio

Mutual fund portfolios are created and marketed by AMCs, in which investors invest.

They cannot create tailor made portfolio.

Managing a Portfolio of F unds

As the investments in different schemes of various mutual funds increase, it becomes

difficult for an individual investor to manage the fund both in terms of cost and

complexities.


26/41

SYSTEMATIC INVESTMENT PLAN

INTRODUCTION

The Systematic Investment Plan (SIP) is a simple and time honored investment strategy

for accumulation of wealth in a disciplined manner over long term period. The plan aims at a

better future for its investors as an SIP investor gets good rate of returns compared to a one time

investor.

WHAT IS SYSTEMATIC INVESTMENT PLAN (SIP)?

A specific amount should be invested for a continuous period at regular intervals underthis plan.

SIP is similar to a regular saving scheme like a recurring deposit. It is a method ofinvesting a fixed sum regularly in a mutual fund.

SIP allows the investor to buy units on a given date every month. The investor decidesthe amount and also the mutual fund scheme.

While the investor's investment remains the same, more number of units can be bought ina declining market and less number of units in a rising market.

The investor automatically participates in the market swings once the option for SIP ismade.

SIP ensures averaging of rupee cost as consistent investment ensures that average cost

per unit fits in the lower range of average market price. An investor can either give postdated

cheques or ECS instruction and the investment will be made regularly in the mutual fund desired

for the required amount. SIP generally starts at minimum amounts of Rs.1000/- per month and

upper limit for using an ECS is Rs.25000/- per instruction. For instance, if one wishes to invest

Rs.1, 00,000/- per month, then they need to do it on four different dates.

SIP INVESTORS


27/41

It is easy to become a systematic investor. One need to plan the saving effectively and set

aside some amount of money every month for investment purposes in a fund that is ideally a

diversified equity fund or balanced fund. Postdated cheques can be given to the fund house. The

investor is at liberty to exit from the scheme depending on the market conditions.

BENEFITS OF SYSTEMATIC INVESTMENT PLAN

Power of Compounding

The power of compounding underlines the essence of making money work if only

invested at an early age. The longer one delays in investing, the greater the financial burden to

meet desired goals. Saving a small sum of money regularly at an early age makes money work

with greater power of compounding with significant impact on wealth accumulation.

Rupee Cost Averaging

Timing the market consistency is a difficult task. Rupee cost averaging is an automatic

market timing mechanism that eliminates the need to time one's investments. Here one need not

worry about where share prices or interest are headed as investment of a regular sum is done at

regular intervals; with fewer units being bought in a declining market and more units in a rising

market. Although SIP does not guarantee profit, it can go a long way in minimizing the effects

of investing in volatile markets.

Convenience

SIP can be operated by simply providing postdated cheques with the completed

enrolment form or give ECS instructions. The cheques can be banked on the specified dates and

the units credited into the investor's account. The SIP facility is available in the PrincipalIncome Fund, Monthly Income Plan, Child Benefit Fund, Balanced Fund, Index Fund, Growth

Fund, Equity fund and Tax Savings Fund.

COMPARISON OF DIFFERENT SECTORS


28/41

There are different sectors in Mutual Fund. They are

1. Pharma Sector Funds2. Power Sector Funds3. Auto Sector Funds4. FMCG Sector Funds5. Infotech Sector Funds6. Banking Sector Funds7. Infrastructure Sector Funds8. Media & Entertaintment Sector Funds

Project contents following only 4 sectors

1. Pharma Sector Funds (Relaince Pharma Fund, SBI Magnum Sector Umbrella, UTIGrowth Sector Fund).

2. Infotech Sector Funds (Tata Life Science & Tech Fund, Franklin Infotech Fund, SBIMagnum Sector Umbrella).

3. FMCG Sector Funds (Birla SunLife Buy India Fund,Franklin FMCG Fund, SBI MagnumSector Umbrella, ICICI Prudential FMCG).

4. Banking Sector Funds (Reliance Banking, UTI Banking Sector).


29/41

6. DATA ANALYSIS AND INTERPRERTATION

The data after collection has to be processed & analyzed in according with the outline

laid down for the purpose at the time of developing the research plan. This is essential for the

scientific study & for ensuring that we have all relevant data for making comparison &analysis.

Technical speaking, processing implies editing, coding classification & tabulation of collected

data so that they are enable to analysis.

Analysis:-

The term analysis refers to the computation of certain measure along with searching for

pattern of relationship that existing among data group simply analysis can be defined as the

ordering or breaking of the constituent part in order to obtain answers to research question.

Interpretation:-

After collection & analyzing the data. The researcher has to accomplish the task of

drawing inference followed by report writing. This has to be done very carefully, otherwise

misleading conclusion may be drawn .Interpretation refers to the task of drawing inferences from

the collection, facts after an analytical or experiential study.


30/41

SIP FEATURES

Disciplined investing is vital to earning good returns over a longer time frame. Investors

are saved the bother of identifying the ideal entry and exit points from volatile markets. SIP

options such as equity, debt and balanced schemes offer a range of investment plans. While

there is no entry load on SIP, investors face an exit load if the units are redeemed within a

stipulated time frame. The success of your SIP hinges on the performance of your selected

scheme.

Table of Systematic Investment Plan:-

If you have invested Rs. 5000 every month and the returns are as below

Scheme Name Periods

1 year 3 years 5 years 10 years

HDFC Equity Fund 52788 212130 583042 3459175

Reliance Growth Fund 49337 211819 653281 4680248

ICICI Pru Dynamic Plan 50024 202832 576194 -

(Source:-valueresearchonline.com)


31/41

Interpretation:-

If investment returns Rs. 5000 per month than yearly investment is Rs. 60000 but in

analysis each fund is not giving i.e HDFC Equity Fund Rs. 52,788, Reliance Growth Fund Rs.

49,337 and ICICI Pru Dynamic Rs. 50,024. But investment returns I 3 years gives positive

returns than 1 year investment.

So investor should invest in systematic investment plan for a long period of time is the

better option.

COMPARISON OF DIFFERENT SECTORS

There are different sectors in Mutual Fund. They are

9. Pharma Sector Funds10.Power Sector Funds11.Auto Sector Funds12.FMCG Sector Funds13.Infotech Sector Funds

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

5000000

HDFC Equity Fund Reliance Growth

Fund

ICICI Pru Dynamic

Plan

Returnsin

Rs.

Scheme Name

1 year

3 years

5 years

10 years


32/41

14.Banking Sector Funds15.Infrastructure Sector Funds16.Media & Entertaintment Sector Funds

Project contents following only 4 sectors

5. Pharma Sector Funds (Relaince Pharma Fund, SBI Magnum Sector Umbrella, UTIGrowth Sector Fund).

6. Infotech Sector Funds (Tata Life Science & Tech Fund, Franklin Infotech Fund, SBIMagnum Sector Umbrella).

7. FMCG Sector Funds (Birla SunLife Buy India Fund,Franklin FMCG Fund, SBI MagnumSector Umbrella, ICICI Prudential FMCG).

8. Banking Sector Funds (Reliance Banking, UTI Banking Sector).

1. PHARMA SECTOR FUNDS

Scheme Name Return in %

3 Months 6 Months 1 Year 3 Years

Since

Launch

Reliance Pharma Fund 9.95 -17.82 -2.36 20.99 24.29

SBI Magnum Sector

Umbrella 6.12 -8.58 -8.58 12.32 17.47

UTI Growth Sector Fund 16.18 2.11 5.59 13.1 13.93

(Source: - www.karvyresearch.com)


33/41

Interpretation:-

The returns for Pharm sector funds for 3 Months were positive but for 6 Months and 1

year returns were less compared to three months and 3 years. The returns for Long term are

seems to be positive. The investors should invest in pharm with a view of Long term investment

and so I will suggest to investors to be stay invested in pharm sector for minimum 3 years.

1. INFOTECH SECTOR FUNDS


-20

-15

-10

-5

0

5

10

15

20

25

30

Reliance Pharma

Fund

SBI Magnum

Sector Umbrella

UTI Growth

Sector Fund

Returnin%

Scheme Name

3 Months

6 Months

1 Year

3 Years

Since Launch


3 Months 6 Months 1 Year 3 YearsSince

Inception

Tata Life Sciences & Tech Fund 6.42 -20.19 -13.66 18.99 19.56

Franklin InfoTech Fund 23.23 -2.58 -17.7 13.95 24.42

SBI Magnum Sector Umbrella 8.25 -15.48 -22.35 24.21 15.76


34/41

Interpretation:-

The returns for INFOTECH Sector Funds for 6 Months and 1 year were negative but for

3 Months and 3 year the returns were more compared to 6 months and 1 year. The returns for

Short term are seems to be negative. The investors should invest in INFOTECH with a view of

Short term investment and so I will suggest to investors to be stay invested in INFOTECH sector

for not more than 3 years. Rupee appreciation and weakness of dollar the IT Sectors were

performing very badly. Fluctuation in the capital market was responsible for this kind of

fluctuation.

1.FMCG SECTOR FUNDSScheme Name Return in %

3 Months 6 Months 1 Year

3

Years

Since

Inception

Birla Sun Life Buy India Fund -1.8 -25.12 -3.47 18.92 12.69

Franklin FMCG Fund 3.21 -7.76 10.53 19.83 15.64

-30

-20

-10

0

10

20

30

Tata Life Sciences

& Tech Fund

Franklin Infotech

Fund

SBI Magnum

Sector Umbrella

Chart Title

3 Months

6 Months

1 Year

3 Years

Since Inception


35/41

SBI Magnum Sector Umbrella 1.47 -13.82 11.43 29.2 18.11

ICICI Prudential FMCG 4.98 -8.89 12.13 12.77 8.66


Interpretation:-

The returns for FMCG sector funds for 6 Months were negative but for 3 Months and 1 year the

returns were more compared to 6 months. The returns for Short term are seems to be negative. The

investors should invest in FMCG with a view of Long term investment and I will suggest to investors to

be stay invested in FMCG sector for more than 1 years.

3.BANKING SECTOR FUNDS


1 Year 3 Years

Since

Inception

Reliance Banking -3.27 15.73 34.95

UTI Banking Sector -15.35 11.01 18.83

-30

-20

-10

0

10

20

30

Birla SunLife

Buy IndiaFund

Franklin

FMCG Fund

SBI Magnum

SectorUmbrella

ICICI

PrudentialFMCG

Re

turnsin%

Scheme Name

3 Months

6 Months

1 Year

3 Years

Since Inception


36/41


Interpretation:-

The returns for BANKING Sector Funds for 1 year were negative but for 3 year the

returns were more. The returns for Short term are seems to be negative and so I will suggest to

investors to be stay invested in BANKING sector for more than 3 year.

7. FINDINGS

1. Mutual fund is upcoming field for investors to invest their money for better returns thanany other investment product.

-20

-10

0

10

20

30

40

Reliance Banking UTI Banking SectorReturnsin%

Scheme Name

1 Year

3 Years

Since Inception


37/41

2. Systematic Investment Plan involves disciplined investing which is vital to earningoverall a longer period and investors are saved the bother of identifying the ideal entry

and exist point from volatile market.

3. The returns of Pharm sector funds for short term as well as long term were consistent. Itshows consistent performance with the returns of 16.18% in 3 month by UTI Growth

sector fund, 20.99% returns in 3 years and 24.29% returns in since inception by Reliance

Pharma Fund.

4. The returns of InfoTech sector funds for short term are seems to be positive. In this sectorFranklin InfoTech Fund given highest returns within 3 months which is 23.23%.

5. The returns of FMCG sector funds for long term are seems to be positive. In this sectorSBI Magnum Sector Umbrella fund given highest returns of 29.20% within 3 years.

6. From the overall view of since inception the returns in Banking Sector were more ascompared to other sectors. In this sector Reliance Banking fund given highest returns of

34.95% in the overall performance.

7. In every sector the returns over 3 years and above time period are more.


38/41

8. LIMITATIONS

1. The study is also done in a short span of time i.e. two months, thus being a wide topic itrequires more time.

2. The study was related to the mutual fund where the asset management company did notgiven each & every information of their working procedure.

3. The study was related to mutual fund investment hence other investment cannot beconsidered for the study.

4. The company does not want to disclose all confidential facts it is the major limitation ofthe study.


39/41

9.SUGGESTIONS

1. Investors should invest in mutual funds as mutual fund has their superiority over otherinvestment product.

2. Company should use the analysis of Systematic Investment Plan as ready reckoner forinvestors to get through guidance.

3. Analysis of returns in different sectors can be used by investors for better returns overlong period of time.

4. The investor should invest in mutual fund with a view of minimum 1 year, because forshort term returns are negative.

Investors who want more returns in long terms they should invest in Reliance Banking Fund as it

is giving 34.95% returns in since inception


40/41

10. CONCLUSION

Investors have to create more awareness and highlight mutual funds to investors as a new

emerging avenue which could benefit them through its differentiating features and benefits.

The investors should invest in mutual fund in long term period of time.

The investors who are in young stage of life can invest in mutual fund through Systematic

Investment Plan. Which will give then the benefit of Rupee cost averaging and they can earn

handsome return.

To know the investors need and suggest his/her to invest in a various mutual fund scheme as per

his/her requirement.

11. BIBLOGRAHPHY

BOOK RECOMMENDED


41/41

AMFI work book compiled by D. C. Anjaria Research MethodologyC. R. KOTHARI Fact sheets of various mutual funds

WEBSITES

www.amfiindia.com www.karvy.com www.mutualfundsindia.com www.valueresearchonline.com

Documents

Project of Mutual funds