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Synopsis

Of

ANALYSIS OF RETURN ON INVESTMENT


OF TOP 10 SELLING MUTUAL FUINDS
Towards partial fulfillment of
Master of Business Administration (MBA)
Submitted to :
Mr. Tarun Bose
( Faculty Guide)

Submitted by
Rohit Tripathi
IIIrd Semester
Enroll No- 1546

Session 2016-2017
Department of Business Management

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EXECUTIVE SUMMARY

Mutual Funds are mutual fund schemes that invest in debt securities which have maturities of

less than 91 days. For the financially literate they are also called money market securities. These

are actually very similar to your savings bank account where you can enter and exit at any point

of time. Since the investments are in short term instruments, Mutual funds arent volatile unlike

other investments. They offer better returns than savings bank account because they represent

market rates whereas saving bank rates are fixed by the banks for the poor little undemanding

retail investor.

I have never seen Mutual funds giving lower returns than savings accounts in a time period of at

least 30 days. Also as securities in these funds are churned frequently, they are more efficient

and closer to real market interest rates unlike savings account where it is fixed by banks.

This report primarily focuses on awareness about Mutual funds over saving account. People in

Lucknow city are less aware about the Mutual funds and they still prefer keeping money in

saving accounts. Though after being informed about the benefits and features of Mutual funds

most of the people agreed to invest in Mutual funds for better return and tax benefits.

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INTRODUCTION
Investment is parting with ones fund, to be used by another party, user of fund, for productive
activity. It can mean giving an advance or loan or contributing to the equity (ownership capital)
or debt capital of a corporate or non-corporate business unit.
Generalized, investment means conversion of cash or money into a monetary asset or a claim on
future money for a return. This return is for saving, parting with saving or Mutuality and lastly
for taking a risk involving the uncertainty about the actual return, time of waiting and cost of
getting back funds, safety of funds, and risk of the variability of the return.
The cornerstone of any investment strategy is to maximize the return while maintaining a
tolerable risk. The process of allocating assets among several investment categories is a way of
achieving the goal. Younger people can assume greater risk than one who is retired; a highly
paid executive will be less dependent on current portfolio income than will a disabled person on
workmens compensation and so forth.
The goal of an individual may be current income, capital appreciation or an acceptable balance.
If the investor decides on capital appreciation, the investors should have the personality to ride
out major decline in the market . These are decisions that only the investor can make after
careful consideration.
CHARACTERISTICS OF INVESTMENT:
1. Risk:
The risk depends of maturity, creditworthiness, nature of instrument, tax liability, variability of
returns, etc
2. Return:
A major factor influencing the pattern of investment is its return, which is the yield plus capital
appreciation.
3. Safety:
The safety of capital is the certainty of return of capital without loss of money or time involved.
4. Mutuality:
If a capital asset is easily realizable, saleable or marketable, then it is said to be Mutual.
An investor generally prefers Mutuality for his investments, safety of his funds, a good return
with a minimum risk and maximization of return.

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CLASSIFICATION OF INVESTORS
RISK TYPE OF
TYPE BEHAVIOR
ACCEPTABLE INVESTMENT
RISK
LIFE INSURANCE ,UNIT WILL PAY LESS FOR
AVERT LOW RISK
CERTIFICATES, GOVT AN UNCERTAIN
ERS CERTIFICATES. RETURN

RISK MEDIUM RISK


LIFE POLICIES, FIXED
NEUTRALS WILL PAY EQUAL TO
DEPOSITS ,MUTUAL FUNDS
EXPECTED RETURN

RISK WILL PAY MORE


COMMON STOCKS, BONDS,
TAKERS HIGH RISK THAN EXPECTED
CONVERTIBLE SECURITIES
RETURN.

PSYCHOLOGICAL ASPECTS OF INVESTING:


It is relatively easy to gain a theoretical understanding of market movements up and down.
Beating the market on paper is not that difficult, but actually putting that knowledge to work in
the market place on a day-to-day basis is a more difficult task.
Common sense dictates that periodic monitoring of portfolio performance is a necessary part of
the investment process, but if we get too close to the market, the tendency is to respond to the
events and prices instead of carefully laid criteria. The asset allocation approach as described
here makes a valuable contribution to this on going psychological battles that investors have to
face. First, the very adoption of the principles of allocation implies that establishment of
reasonable investment goals and the employment of a plan. If the investor can make a plan and
stick to it, he is far less likely be side tracked by the latest news and investment fashion.
MUTUAL FUNDS
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
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The income earned through these investments and the capital appreciations realized are shared
by its unit holders in proportion to the number of units owned by them.

MUTUAL FUNDS IN INDIA


The Indian mutual fund industry, though still small in comparison to the size of the Indian
economy, offers Indian, and in some cases global investors, both big and small, an avenue to
invest safely and securely, at a reduced cost, in a diverse range of securities, spread across a wide
range of industries and sectors.

COMPANY PROFILE

Sharekhan is stock broking company. Share Khan comes under retail arm of SSKI (Shripal
Sevantilal Kantilal Ishwarlal ) investors Services Pvt. Ltd. offers World-class facilities for
buying and selling Shares on BSE and NSE, Demate Services(DP)Derivatives(F&O). SSKI
group also comprises of Institutional broking and Corporate Finance. Sharekhan does not claim
expertise in too many things.

Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he
says that investing in stocks should not be confused with trading in stocks or a portfolio-based
strategy is better than betting on a single horse, it is something that is spoken with years of
focused learning and experience in the stock markets. And these beliefs are reflected in
everything Sharekhan does for you!

Those of you who feel comfortable dealing with a human being and would rather visit a brick-
and-mortar outlet than talk to a PC, you'd be glad to know that Sharekhan offers you the facility
to visit (or talk to) any of our share shops across the country. In fact Sharekhan runs India's
largest chain of share shops with over hundred outlets in more than 80 cities! What's a share
shop? How do you locate a share shop in your city?

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OBJECTIVES OF A MUTUAL FUND
To provide an opportunity for lower income groups to acquire without much difficulty,
property in the form of shares.
To cater mainly of the need of individual investors who have limited means.
To manage investors portfolio that provides regular income, growth, safety, Mutuality,
tax advantage, professional management and diversification.

OBJECTIVE OF THE STUDY


Primary objective for the study is to know that Customer preference towards investment in
Mutual Funds. Other objectives for the study are as follows:-
To know about the Mutual Funds towards customer preference.
To find out return on Mutual funds.
To know about the return on bank deposits.
Comparatively analyze the mutual funds and bank deposits in Max life insurance.

SCOPE OF STUDY:
The main purpose for this study is to find the customer preference towards Mutual Funds and
bank deposits. The Mutual funds saving are widely known and adopted mechanism by a large
section of people in India. Its outreach has been continuously increasing both in terms of number
of accounts as well as number of branches especially in urban areas. Its strength lies in its
reputation as a government of Indias institutions and other multiple services with standardized
across India. Bank deposits are traditional way of investment and vast number of investors relies
on this sort of investment. This report gives scope to study the customer view over the both kind
of deposit/investment schemes.

RESEARCH METHODOLOGY:
Business research is a systematic inquiry that provides information to guide business decisions
and aimed to solve managerial problems. Business research is of recent origin and is largely
supported by business organizations that hope to achieve competitive advantages.

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Research methodology is a way to systematically solve the research problems. It may be
understood as a science of studying how research is done scientifically. It includes the overall
research design, the sampling procedure, data collection method and analysis procedure.
RESEARCH DESIGN
A research design is simply the framework or plan for a study that is used as guide in collecting
and analyzing the data. It is blue print that is followed in completing a study. According to
Kerlinger, Research design is the plan structure, and strategy of investigation conceived
so as to obtain answers to research question and to control variance.
The marketing research designs are classified on the basis of fundamental objective of the
research. They may be exploratory or conclusive.
Here in project investors perception about Mutual Funds the nature of research is exploratory,
Descriptive, and Analytical.. This research is cover the nature of primary market and how they
provide opportunity to small investors. And the thinking and perception of investors about
Mutual funds over saving accounts and the way of earning profit by investing in Mutual Funds
basically those who are living in the Lucknow.
The research tries to explore, describe and analyze the functioning of primary market.
DATA COLLECTION METHOD
PRIMARY DATA
As the research is exploratory describe and Analytical in nature concerning investors related to
the Mutual Funds. Primary data collected by the Questionnaire and direct interaction with
different people.
SECONDARY DATA
To obtain Secondary data I have used following resources-
ECONOMIC TIMES
BUSINESS NEWS
OUTLOOK MONEY
BUSINESS WORLD
WEB SITES
Sampling
Nature of Sampling-

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In this project sample survey was conducted where the data was collected from some Mutual
Fund and Bank Deposits investors of Lucknow zone.
Sampling Unit-
The sampling unit for the investors is taken through questionnaires and direct interviews in
Lucknow which may be investor of Mutual funds and bank deposits.
Sampling Size-
When survey is undertaken it is not possible to cover the entire population. The sample size
decision is related directly to research cost.
The Sampling size was undertaken for investors through questionnaires for our research purpose
is 100.
Sampling Method-
Since the chance of any particular unit in the population being selected is unknown so we have
used Non-Probability sampling. We have further used purposive sampling.
Advantage of sampling-
1. Sampling is much more economical than a normal survey.
2. Both the execution of the field work and the analysis of the result can be carried out
speedily.
3. Information collected is more detailed and of specialized.
TOOLS FOR ANALYSIS
Hypo. Method
Answered population x100
Total Population

PROBLEMS DEFINITION
This report deals with customers preference towards Mutual Funds and Bank Deposits. Report
mainly focus on investment made by investors in Mutual Funds and Bank Schemes. During the
collection of data, some investors were not much freely while responding to questionnaire.
Though some investors comfortably replied to investment related questions. Report is limited to
Lucknow city and sample size is too small considering the population of city and number of
investors.

LIMITATIONS OF THE STUDY

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1. Small Sample Size:
In my survey, I have taken a sample size of 100 customers, but only with these samples I
cant make a proper conclusion.
2. Time constraint:
Time for this project is not sufficient as the customers came to the bank for their account
operation the time for completing & filling the questionnaires is not sufficient.
3. Sample Area:
The study was conducted in Lucknow only hence, the study may not be useful for
projection of behavioral aspect of investors living in other cities.
4. Negative response:
Some people show negative response to the survey by not answering the questions.

FINDINGS
Findings from secondary data as follows:-
Mutual funds, offered by mutual fund houses, invest in short-term money market instruments
such as government securities, treasury bills and commercial paper. In a way, they park your
money in instruments not too different from the way banks do and hence are reasonably secure.
On the flip side, they cannot provide you fixed returns the way savings bank accounts do. They
do not also offer a deposit insurance of up to Rs 1 lakh that your balance in savings and deposit
accounts enjoy.
The idea of keeping ones emergency fund somewhere other than a savings account may not
strike many, but it is an option worth exploring.

RECOMMENDATIONS
Its important to spread the awareness about Mutual Funds on broad scale.
Investor awareness is required for better future of Mutual funds.
Its need to spread the knowledge that investment in Mutual funds is profitable than
keeping money in saving bank account..
Marketing tools should be used at the point of purchase, advertisements through mass
media like newspapers, magazines, exhibitions, SMS on mobiles, and on internets.

CONCLUSION

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Saving accounts are one of the most popular deposit accounts for individuals in India. In Saving
Accounts, the depositor is normally issued cheque books and the customer is allowed the
flexibility of deposits of any amount and withdrawal of funds from the account at any time.
Although, most of the banks have rules for the maximum number of withdrawals in a period and
the maximum amount of withdrawal, yet no bank strictly enforces these owing to competition in
the banking circles.
Amidst high inflation, for short duration Mutual Funds are among the best investment
instruments available to the individual. During high inflationary period, the RBI typically keeps
interest rates high and tightens Mutuality, helping Mutual funds to earn good returns.

REFERENCES
BOOKS
Magazines
Business World
Outlook Money
Offer documents of different schemes
Fund Fact Sheet
Investment and Portfolio Management by Prassnna Chandra
WEBSITES:
http://en.wikipedia.org/wiki/Mutual_funds_in_India
http://www.amfiindia.com/research-information/mf-history
http://www.valueresearchonline.com/story/h2_storyView.asp?str=17172
https://scripbox.com/blog/mutual-funds-india-turn-50-10-lakh-crore-aum-here-is-how/

Chapter

Introduction
Literature Review
Research Methodology
Data analysis
Findings
Recommendation & Suggestion
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Conclusion
Bibliography

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