A

SYNOPSIS

ON

“ Comparative Study of Mutual Fund with other Investment Securities-HDFC Bank Ltd.”

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION
OF
PUNJAB TECHNICAL UNIVERSITY

By
Rishabh Malhotra
1625080
MBA III semester

Under the supervision of

Mrs. Dipti Batra
( ASSISTANT PROFESSOR )

CHANDIGARH BUSINESS SCHOOL OF ADMINISTRATION

LANDRAN, MOHALLI
 RATIONALE
This Study is needed to know how much people aware about Mutual Fund and which
investment they will prefer to invest either it is risky , safe, long term, short-term or to see
that which investment is comparatively best for the different situations.

This study is very much needed for those financial experts which target the public to invest
in specific financial security or to give various consultant advice.

OBJECTIVE

1. The study the awareness level of customers regarding Mutual Funds.

2. To study the Performance of various financial Securities.
3. To study the comparative analysis of funds with objectives.
 MUTUAL FUNDS
There are a lot of investment avenues available today in the financial market for an investor with an investable surplus. He can invest in Bank
Deposits, Corporate Debentures, and Bonds where there is low risk but low return. He may invest in Stock of companies where the risk is
high and the returns are also proportionately high. The recent trends in the Stock Market have shown that an average retail investor always
lost with periodic bearish tends. People began opting for portfolio managers with expertise in stock markets who would invest on their
behalf. Thus we had wealth management services provided by many institutions. However they proved too costly for a small investor. These
investors have found a good shelter with the mutual funds.

Concept of Mutual Funds:

A mutual fund is a common pool of money into which investors place their contributions that are to be invested in accordance with a stated
objective. The ownership of the fund is thus joint or "mutual"; the fund belongs to all investors. A single investor's ownership of the fund is
in the same proportion as the amount of the contribution made by him or her bears to the total amount of the fund.
Mutual Funds are trusts, which accept savings from investors and invest the same in diversified financial instruments in terms of objectives
set out in the trusts deed with the view to reduce the risk and maximize the income and capital appreciation for distribution for the members.
A Mutual Fund is a corporation and the fund manager's interest is to professionally manage the funds provided by the investors and provide a
returns on them after deducting reasonable management fees.
The objective sought to be achieved by Mutual Fund is to provide an opportunity for lower income groups to acquire without much difficulty
financial assets. They cater mainly to the needs of the individual investor whose means are small and to manage investors portfolio in a
manner that provides a regular income, growth, safety, liquidity and diversification opportunities.

DEFINITION:

"Mutual funds are collective savings and investment vehicles where savings of small (or sometimes big) investors are pooled together to
invest for their mutual benefit and returns distributed proportionately'

"A mutual fund is an investment that pools your money with the money of an unlimited number of other investors. In return, you and the
other investors each own shares of the fund.
Why Select Mutual Fund?

The risk returns trade-off indicates that if investor is willing to take higher risk then correspondingly he can expect higher
returns and vise versa if he pertains to lower risk instruments, which would be satisfied by lower returns. For example, if an
investors opt for bank FD, which provide moderate returns with minimal risk. But as he moves ahead to invest in capital
protected funds and the profit-bonds that give out more return which is slightly higher as compared to the bank deposits but
the risk involved also increases in the same proportion.
Thus investors choose mutual funds as their primary means of investing, as Mutual funds provide professional management,
diversification, convenience and liquidity. That doesn't mean mutual fund investments risk free.

This is because the money that is pooled in are not invested only in debts funds which are less riskier but are also invested in
the stock markets which involves a higher risk but can expect higher returns. Hedge fund involves a very high risk since it is
mostly traded in the derivatives market which is considered very volatile.
Literature Review

RESEARCH METHODOLOGY

This Report is based on primary as well as secondary data, however primary data collection was given more
important since it is overhearing factor in attitude studies.
One of the most important users of Research Methodology is that it helps in identifying the problem, collecting,
analyzing the required information or data and providing an alternative solution to the problem. It also helps in
collecting the vital information that is required by the Top Management to assist them for the better decision making
both day to day decisions and critical ones.

a) Research Design: Descriptive Design

b) Data Collection Method: Survey Method

c) Universe: Ambala Cantt

d) Sampling Method: The sample was collected through personal visits, formally and informal talks and through filling
up the Questionnaire prepared. The data has been analyzed by using mathematical or statistical tools.

e) Sample Size: 50 respondents

f) Sampling Unit: Businessmen, Government Servant, Retired Individuals

g) Data Source: Primary data and Secondary Data

h) Data Collection Instrument: Structured Questionnaire

i) Sample Design: Data has been presented with the help of Bar Graph, Pie Chart, and Line Graph etc.

j) Duration Of The Study: The study was carried out for a period of 45 Days, from 1st June to 15th July ‘17.

Expected Outcomes

Through this Project the results that was derived are-

 People who lie under the age group of 36-40 have more experience and are more interested in investing in Mutual Funds.
 Generally, People employed in Private sectors and Businessman are more likely to invest in Mutual Funds, than other
 people working in other professions.
 Generally investors whose monthly income is above Rs. 20001-30000 are more likely to invest their
income in Mutual Fund, to preserve their savings of at least more than 20%.
 Many people came to know about Mutual Fund from Financial Advisors, Advertisement as well as from
their Peer group , and they generally invest in the Mutual Fund by taking advices from their Legal
Advisors.
 Investors generally like to invest in Large Cap Companies like Reliance, SBI, etc. to minimize their risk.
 The main Objective of most of the Investors is to preserve their Income.
REFERENCES

Books:
 The Indian Financial System (second edition) by Bharati V. Pathak. Published by
Dorling Kindersley (India) Pvt. Ltd., licensees of Pearson Education in South Asia.
 Bhalla V.K. (2001), Financial Management & Policy II Edition, Anmol Publications,
New Delhi
 Khan & Jain(1997), Financial Management and Policy, Tata Mc Graw Hill, New Delhi
 Kothari C.R. (2000), Research Methodology, Wishwa Prakashan, New Delhi

Magazines:
 Money Outlook (May &June 2009)
 Business world (May & June 2009)

Websites
www.hdfcfund.com
www.moneycontrol.com