Synopsis

COMPARATIVE STUDY BETWEEN MUTUAL FUNDS OFFERED BY VARIOUS COMPANIES IN INDIAN MARKET.
Submitted for the permission of pursuing Research Project Report (MBA-043)

Under the Guidance of Mr. Raj Kumar Mishra

Submitted by Varun Saxena Roll No.: 1166070049 MBA IV Semester

Department of Management GIHS Lucknow 2012-2013

INTRODUCTION

Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion 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. A Mutual Fund is an investment tool that allows small investors access to a well-diversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day.

Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders.

ICICI Prudential Asset Management Company Ltd. (IPAMC/ the Company) is the joint venture between ICICI Bank, a well-known and trusted name in financial services in India and Prudential Plc, one of UKs largest players in the financial services sectors. IPAMC was incorporated in the year 1993. The Company in a span of over 18 years since inception and just over 13 years of the Joint Venture, has forged a position of preeminence in the Indian Mutual Fund industry as the third largest asset management company in the country, contributing significantly to the growth of the Indian mutual fund industry. The Company manages significant Mutual Fund Asset Under Management (AUM), in addition to Portfolio Management Services and International Advisory Mandates for clients across international markets in asset classes like Debt, Equity and Real Estate with primary focus on risk adjusted returns. IPAMC has witnessed substantial growth in scale. From merely 2 locations and 6 employees during inception to the current strength of over 700 employees with reach across around 150 locations, the growth momentum of the Company has been exponential. The organization today is an ideal mix of investment expertise, resource bandwidth & process orientation. IPAMCs Endeavour is to bridge the gap between savings & investments to help create long term wealth and value for investors through innovation, consistency and sustained risk adjusted performance.

HDFC

Asset

Management

Company

Limited

(AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000.

The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai 400 020.

In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs. 25.169 crore.

OBJECTIVE OF STUDY

The objective of this project is to know about the consumer perception for investment in various mutual funds schemes in various mutual funds companies., their investment behavior, their investment objectives, their response to various investments, their interest in mutual funds with respect to their age, income and occupation as well which helps in understanding the consumer behavior

SCOPE OF STUDY A big boom has been witnessed in Mutual Fund Industry in resent times. A large number of new players have entered the market and trying to gain market share in this rapidly improving market.

The study will help to know the preferences of the customers, which company, portfolio, mode of investment, option for getting return and so on they prefer. This project report may help the company to make further planning and strategy.

RESEARCH METHODOLOGY

The approach and methodology that was followed in the compilation of this project report on Comparative study on mutual funds and desired expectations of customers with mutual funds" is described as follows:

Selection Of The Topic And Framing Of The Questionnaire: The topic was selected so as to decide upon the path of our research related works associated with the project. First of all our task was to frame questionnaire for people to know their views about the perception of consumers in various investment avenues.

Collection of Data: Observations and interactions are made to prepare the questionnaire and get them filled. The research was conducted and compiled by visiting various potential investors who regularly invest in shares, securities, mutual funds, bonds, gold, business and other investment avenues.

Techniques And Instruments Used Questionnaires: Questionnaires are prepared for accurate information. The questionnaires are filled by people of working or having their own business or self

employed or others viz. students, house wives etc. Thus we got views of people belonging to diverse fields. Thus by the help of the questionnaire the study become more easy and reliable.

Interviews: Interviews were undergone through structured questionnaire and conversation with people. The response of the people was quiet satisfying.

M.S.EXCEL: Microsoft Excel software was used for the analysis part of the survey done among the investors. Major findings, recommendations and conclusion were taken out with its help. Internet: Various informations were collected through internet and necessary information regarding the company through website of the organization.

Sample Size: 80 Population: Local population of Lucknow.

The Above Research Report was Formulated as under: Research : Descriptive Data Source : Primary & Secondary Research Instrument :Questionnaires Sample Size : 80 Sample Procedure : Simple Random Sampling

SAMPLE PLAN Sample Unit : Local Population of Gorakhpur & Lucknow Method of data collection : Structure

METHOD OF DATA COLLECTION SECONDARY DATA:

Secondary data provided the knowledge about company in term of facts and figures. It is a data which are already been collected by someone else. Websites Books Magazines Newspaper

PRIMARY DATA:

Primary data helped in the knowledge gathered from secondry sources . Primery data are those which are collected a fresh and for first time It is original in nature . The method adopted for it : Questionnaiers

BIBLIOGRAPHY

Books: 1. Mutual Funds in India. 2.Businness Research Methods 3.Financial Management Search Engines:
1. www.google.com 2. www.dogpile.com 3. www.ansmers.com By. H. Sadak By. Willium G. Z By.Dr.R.S. Kulshreshtha

Websites: 1.www.amfiindia.com
2.www.indiainfoline.com

3.www.value research.com 4.www.money.com 5.www.economictime.com 6.www.scmf.com