Project Report on

COMPARATIVE ANALYSIS OF EQUITY BASED

MUTUAL FUNDS IN INDIA
WITH
SPECIAL REFERENCE TO ICICI MUTUAL FUND

Submitted By: -

Submitted To: -

DECLARATION
I hereby declare that the project report on COMPARATIVE ANALYSIS OF
EQUITY BASED MUTUAL FUND IN INDIA is an authenticate work done by me
and the information stated here is true & original to the best of my
knowledge

ACKNOWLEDGEMENT
Before we get into thick of things, I would like to add a few words of
appreciation for the people who have been a part of this project right from its
inception. The writing of this project has been one of the significant
academic challenges I have faced and without the support, patience, and
guidance of the people involved, this task would not have been completed. It
is to them I owe my deepest gratitude.
It gives me immense pleasure in presenting this project report on
COMPARATIVE ANALYSIS OF EQUITY BASED MUTUAL FUNDS IN INDIA. It has
been my privilege to have a team of project guide who have assisted me
from the commencement of this project. The success of this project is a
result of sheer hard work, and determination put in by me with the help of
my project guide. I hereby take this opportunity to add a special note of
thanks for Prof. who undertook to act as my mentor despite of their many
other academic and professional commitments. Their wisdom, knowledge,
and commitment to the highest standards inspired and motivated me.
Without their insight, support, and energy, this project wouldn't have kickstarted and neither would have reached fruitfulness.
I also feel heartiest sense of obligation to my library staff members
& seniors, who helped me in collection of data & resource material & also in
its processing as well as in drafting manuscript. The project is dedicated to
all those people, who helped me while doing this project.

EXECUTIVE SUMMERY
A mutual fund is a scheme in which several people invest their
money for a common financial cause. The collected money invests in the
capital market and the money, which they earned, is divided based on the
number of units, which they hold.
The mutual fund industry started in India in a small way with the
UTI Act creating what was effectively a small savings division within the RBI.
Over a period of 25 years this grew fairly successfully and gave investors a
good return, and therefore in 1989, as the next logical step, public sector
banks and financial institutions were allowed to float mutual funds and their
success emboldened the government to allow the private sector to foray into
this area.
The advantages of mutual fund are professional management,
diversification, and economies of scale, simplicity, and liquidity.
The disadvantages of mutual fund are high costs, overdiversification, possible tax consequences, and the inability of management
to guarantee a superior return. .
The biggest problems with mutual funds are their costs and fees it
include Purchase fee, Redemption fee, Exchange fee, Management fee,
Account fee & Transaction Costs. There are some loads which add to the cost
of mutual fund. Load is a type of commission depending on the type of funds.
Mutual funds are easy to buy and sell. You can either buy them
directly from the fund company or through a third party. Before investing in
any funds one should consider some factor like objective, risk, Fund
Managers and scheme track record, Cost factor etc.
There are many, many types of mutual funds. You can classify
funds based Structure (open-ended & close-ended), Nature (equity, debt,
balanced), Investment objective (growth, income, money market) etc.
A code of conduct and registration structure for mutual fund
intermediaries were subsequently mandated by SEBI. In addition, this year
AMFI was involved in a number of developments and enhancements to the
regulatory framework.
The most important trend in the mutual fund industry is the
aggressive expansion of the foreign owned mutual fund companies and the

decline of the companies floated by nationalized banks and smaller private

sector players.

ICICI Prudential Mutual Fund, HDFC Mutual Fund, Reliance Mutual

Fund, Birla Sun Life Mutual Fund and SBI Mutual Fund are the top five mutual
fund company in India.
ICICI Prudential mutual funding is considered to be most reliable
mutual funds in India. People want to invest in this institution because they
know that this institution will never dissatisfy them at any cost. You should
always keep this into your mind that if particular mutual funding scheme is
on larger scale then next time, you might not get the same results so being a
careful investor you should take your major step diligently otherwise you will
be unable to obtain the high returns.

NEED FOR THE STUDY:

The main purpose of doing this project was to know about mutual
fund and its functioning. This helps to know in details about mutual fund
industry right from its inception stage, growth and future prospects.
It also helps in understanding different schemes of mutual funds.
Because my study depends upon prominent funds in India and their schemes
like equity, income, balance as well as the returns associated with those
schemes.
The project study was done to ascertain the asset allocation, entry
load, exit load, associated with the mutual funds. Ultimately this would help
in understanding the benefits of mutual funds to investors.

OBJECTIVE:

To observe the fund management process of mutual funds.

Explore the recent developments in the mutual funds in India.
To give an idea about the regulations of mutual funds.
To give a brief idea about the benefits available from Mutual Fund
investment.
To give an idea of the types of schemes available.
To discuss about the market trends of Mutual Fund investment.
To study some of the mutual fund schemes.
To study some mutual fund companies and their funds.

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 schemes.