A PROJECT REPORT ON

"FINANCIAL ANALYSIS OF TATA MUTUAL FUND LIMITED"

By
JOSEPH OKOYE.C.

IV Semester MBA
Reg. No: 13MB4046

Under Guidance
Of
Prof. SUSMITHA

Project Report submitted to the University of Mysore in partial fulfilment of the requirements of
IV Semester MBA degree examinations 2015

International Institute of Business Studies

University of Mysore
Bangalore- 560032

INTRODUCTION
The first introduction of a mutual fund in India occurred in 1961, when the Government of
India launched Unit Trust of India (UTI). Until 1987, UTI enjoyed a monopoly in the Indian mutual
fund market. Then a host of other government-controlled Indian financial companies came up with
their own funds. These included State Bank of India, Canara Bank, and Punjab. This market was
made open to private players in 1993, as a result of the historic constitutional amendments brought
forward
by
the
then
Congress-led
government
under
the
existing
regime
of Liberalization, Privatization and Globalization (LPG). The first private sector fund to operate in
India was Kothari Pioneer, which later merged with Franklin Templeton.
The Mutual Funds usually invest their funds in equities, bonds, debentures, call money etc.,
depending on the objectives and terms of scheme floated by MF. Now a days there are MF which
even invest in gold or other asset classes.

ABOUT TATA Mutual Fund

Building tomorrows Economy

Backed by one of the most trusted and valued brands in India, Tata Mutual Fund has earned the
trust of lakhs of investors with its consistent performance and world-class service.
Tata Mutual Fund manages around 24,250 crores (average AUM for the quarter of October
December 2014) worth of assets across its varied offerings. Tata Mutual Fund offers an investment
option for everyone, whether you are a businessman or salaried professional, a retired person or
housewife, an aggressive investor or a conservative capital builder.
The Tata Asset Management philosophy is centred on seeking consistent, long-term results. Tata
Asset Management aims at overall excellence, within the framework of transparent and rigorous
risk controls.

TATA Mutual funds are in the form of Trust (usually called Asset Management Company) that
manages the pool of money collected from various investors for investment in various classes of
assets to achieve certain financial goals. We can say that Mutual Fund is trusts which pool the
savings of large number of investors and then reinvests those funds for earning profits and then
distribute the dividend among the investors. In return for such services, Asset Management
Companies charge small fees. Every TATA Mutual Fund / launches different schemes, each with
a specific objective.
Investors who share the same objectives invests in that particular Scheme. Each Mutual Fund
Scheme is managed by a Fund Manager with the help of his team of professionals (One Fund
Manage may be managing more than one scheme also).
NAV means Net Asset Value. The investments made by a Mutual Fund are marked to market on
daily basis. In other words, we can say that current market value of such investments
is calculated on daily basis. NAV is arrived at after deducting all liabilities (except unit capital) of
the fund from the realisable value of all assets and dividing by number of units outstanding.
Therefore, NAV on a particular day reflects the realisable value that the investor will get for each
unit if the scheme is liquidated on that date. This NAV keeps on changing with the changes in the
market rates of equity and bond markets. Therefore, the investments in Mutual Funds is not risk
free, but a good managed Fund can give you regular and higher returns than when you can get
from fixed deposits of a bank etc.

TATA Mutual funds are an under tapped market in India

Despite being available in the market[1] less than 10% of Indian households have invested in Tata mutual funds. A recent
report on TATA Mutual Fund Investments in India published by research and analytics firm, Boston Analytics,
suggests investors are holding back from putting their money into mutual funds due to their perceived high risk and a lack
of information on how TATA mutual funds work. There are 46 Mutual Funds as of June 2013.
The primary reason for not investing appears to be correlated with city size. Among respondents with a high savings rate,
close to 40% of those who live in metros and Tier I cities considered such investments to be very risky, whereas 33% of
those in Tier II cities said they did not know how or where to invest in such assets.

TATA Mutual fund distribution in India

TATA Mutual fund investments are sourced both from institutions (companies) and individuals. Since January 2013,
institutional investors have moved to investing directly with the tata mutual funds since doing so saves on the expense

ratio incurred. Individual investors are, however, served mostly by Investment advisor and banks. Since 2009, online
platforms for investing in Mutual funds have also evolved.

Average Assets under Management

Assets under management (AUM) is a financial term denoting the market value of all the funds being managed by a
financial institution (a mutual fund, hedge fund, private equity firm, venture capital firm, or brokerage house)on behalf of
its clients, investors, partners, depositors, etc.The average Assets under management of all Mutual funds in India for the
quarter Jul-13 to Sep-13 (in INR billion) is given below

.
NEED FOR THE STUDY
The main purpose of doing this project is to know about TATA mutual fund and its functions.
This helps to know in details mutual fund industry right from its inception stage, growth and
future prospects.
It also helps in Understanding different schemes of TATA mutual funds. Because my study
depends upon prominent funds in India and their schemes like equity fund, Debt Fund/income,
Diversified Funds/balance, Gilt Fund ,Money Market Funds, Sector Specific Funds ,Index Funds
as well as the returns associated with those schemes.
The project study is carried out to ascertain the asset allocation, entry load, exit load, associated
with the mutual funds. Ultimately this would help in understanding the benefits of TATA Mutual
Funds to investors.

SCOPE OF THE STUDY

This project report provides Future of TATA MUTUAL limited and its subsidiary company. By
scope of financial statement analysis, we simply means those vital issue that must be dealt with
while carrying out financial statement analysis exercise. Financial statement analysis is a whole
subset of business analysis. Financial statement analysis is not only study of ratio analysis,
further it goes into two parts viz. quantitative financial statement analysis and non quantitative
financial statement analysis.
So I would consider all the required information which may fit for project study and conducting
the research.

OBJECTIVE OF THE STUDY

The main objective of this project report is to know about the financial strength of TATA
mutual fund and to predict the future of the Economy of India through Mutual Funds in
perspective of financial condition. Other objective of study is
-To give a brief idea about the benefits available from mutual funds investment
-To give an idea of the type of schemes available
-To discuss about the market trends of Mutual Fund investment.
-To study most of the Mutual Funds Schemes.
-To study the Companies and their Funds.
-Observe the Fund management process of mutual funds.
-Explore the recent development in the mutual funds.
-To give ideas about the regulations of Mutual Funds.
-To know the financial strength of the Economy of the Country
-To find out future trend by study of past data
-How company can maximize value of shareholder
-To find out the competitive edge of the company over the competitors.
LIMITATIONS
-The lack of information sources for the analysis part.
-Though I tried to collect some primary data but they were too inadequate for the purposes of the
study.
-Time and money are critical factors limiting this study.
-The data provided by the prospects may not be 100% correct as they too have their limitations.
-The study is limited to selected mutual fund schems.
METHODOLOGY OF THE STUDY
The research methodology that I will undertake for the purpose of this study is enumerated
below
SECONDARY RESEARCH:

Sources of secondary data primarily includes the websites related to MF , email, reference
books, newspaper, annual reports, database available in the library, catalogues and presentations.

BIBLIOGRAPHY
TMFintranet (panorama, harmony, email,)
http://www.mutualfund.com/about
http://en.wikipedia.org/wiki/Mutual_funds_in_India
Financial management by jawahar lal(book)
Previous research and study on TMF

EXECUTIVE SUMMARY
TATA MUTUAL FUNDS POOL MONEY FROM DIFFERENT INVESTORS AND INVEST IN DIFFERENT
INVESTMENT SOURCES LIKE STOCKS, SHARES, BONDS ETC. A PROFESSIONAL FUND MANAGER
MANAGES THESE AND RETURNS ARE PAID IN FORM OF DIVIDENDS. SOME SCHEMES ASSURED FIXED
RETURNS THAT ARE LESS IN RISK AND SOME OFFER DIVIDENDS BASED ON THE MARKET
FLUCTUATIONS AND PRICES. MUTUAL FUNDS HAVE TO BE SUBSCRIBED IN UNITS AND THE PURCHASE
OR SALE IS DEPENDENT ON NAV (NET ASSET VALUE), TAKING INTO CONSIDERATION THE EXIT AND
ENTRY LOAD FACTORS INTO ACCOUNT.
THIS PROJECT UNDERTAKEN DEALS WITH CUSTOMER PERCEPTION WITH REGARD TO MUTUAL FUNDS
THAT IS THE SCHEMES THEY PREFER, THE PLANS THEY ARE OPTING, THE REASONS BEHIND SUCH
SELECTIONS AND ALSO THIS PROJECT DEALT WITH DIFFERENT INVESTMENT OPTIONS, WHICH PEOPLE
PREFER ALONG WITH AND APART FROM MUTUAL FUNDS. LIKE POSTAL SAVING SCHEMES, RECURRING
DEPOSITS, BONDS, AND SHARES. THE FINDINGS FROM THIS PROJECT IS THAT MOST OF THE PEOPLE
ARE HESITANT IN GOING FOR NEW AGE INVESTMENTS LIKE MUTUAL FUNDS AND PREFER TO AVERT
RISKS BY INVESTING IN LESS RISKIER INVESTMENT OPTIONS LIKE RECURRING DEPOSITS AND SO.
ALSO PEOPLE GOING FOR INVESTMENT IN MUTUAL FUNDS ARE NOT GOING FOR HIGH-RISK
PORTFOLIOS AND SCHEMES BUT WANT TO GO FOR MEDIUM RISK ELEMENTS. AND ANOTHER FINDING
IS THAT MOST OF THE WORKINGWOMEN DOES NOT PREFER THIS TYPE OF INVESTMENTS.