Professional Documents
Culture Documents
PROJECT REPORT
ON
Vysya
Rudrapur, (Uttarakhand)
Submitted To Submitted By
Preeti Dixit Zulfikar Ali
Faculty (Mgt. Deptt.) Roll. No. 061579
Subject
Acknowledgement
List of Tables
Abbreviations
Chapter-1 (Introduction)
Objective of Management Thesis
Research Design
Hypothesis Testing
Practical Utility of the Study
Limitations
Chapter-7 (Findings)
Bibliography
Appendices (Questionnaire)
Glossary
ACKNOWLEDGEMENT
It is essential to acknowledge the help received from the people from various
areas. I find myself at loss how to thank them.
These words are not a formality but a sincere voice of my heart and I owe
gratitude to them all. I express my deep feelings of gratitude, profound
respect to Mrs. Preeti Dixit for cooperating with me to complete my project
in proper manner, with adequate knowledge provided by them.
I feel great pleasure in rendering my deep sense of gratitude to my family
members and entire friend group for their helping attitude and cooperation
during course of this project.
(Zulfikar Ali)
LIST OF TABLES
Table & Graph-8 Mutual funds are popular instrument for investment
MF Mutual funds
VC Venture capital
INTRODUCTION
OBJECTIVE OF THE STUDY
The primary objective of this study is to identify the share of mutual funds in
overall basket of financial products and how mutual funds industry is trying to
increase its market share.
DEFINITION
Research is an active, diligent, systematic, scientific and analytical process of
inquiry in order to discover, interpret, or revise facts, events, issues, concepts,
behaviors or theories and to make practical applications with the help of such
facts, laws, theories or concepts. Research is a systematic approach towards
purposeful investigation. This need-
1. Formulation of a hypothesis
2. Collection of a data
3. Analysis and interpretation of the data to find results.
4. Conclusion in the form of a solution.
APPLIED RESEARCH
My research is an applied research. Because applied research is a
research that is designed to find answers to questions that have arisen in
making immediate practical decisions. Applied research basically relies on
theory.
STEPS IN RESEARCH DESIGN
Selection of problem
The problem selected for study should be defined clearly in operational
terms so that the researcher knows - positively what factors she is looking for
and what is relevant to the study. Since human behavior, as an interaction
pattern, is the result of various forces it is best to delimit the scope of one's
study which reaps ample benefits during the actual course of data
collection.
Source of data
Once the problem is selected it is the duty of the researcher to state clearly
the various sources of information such as library, personal documents,
field work, a particular residential group etc.
Sources of research
Survey, Personal Interviews, Books, magazines, internet.
Relevant to the study suitable technique has to be adopted for the collection
of required data. The relative merits of ‘observation”, “survey” etc. when
studied together will help in the choice of suitable technique. Once the
collection of data is complete, analysis, findings, suggestion and presentation
of the report naturally follow:
Sample survey
In any discipline, when you need to search findings of fact, to represent
incidence and/distribution, you use a survey method. There are many
survey methods, but what they all share in common is that they do not
do more than collect data and applies to primary and secondary research.
It is method in which the researchers takes a representative sample and
try to judge the attitude and opinion of those people. A survey can be
conducted by two methods:
1. Census method
2. Sampling method
When the whole area of population of persons is contacted the method is
known as census method while when the small group is selected as
representative of the whole mass it is known as sampling method. The
group actually selected for study is known as sample.
Sampling method is becoming more and more popular in all types of
research. The method is quite reliable and valid in process and the results
acquired are very accurate. I have taken the sample size of 200.
ADVANTAGES OF SAMPLE SURVEY
Saving of time
In sampling method comparatively small numbers of units are studied and
so generally it requires less time than census method.
Saving of money
Survey of smaller number of cases not only requires less time but also
requires less money. By adopting sampling method, the study can be
financed with much less resources.
Detailed study
When the number of units is large detailed study is not possible. The smaller
number of cases in the sample permits more minute- observations and
detailed study.
Accuracy of results
The most important advantage of sampling method is that the results drawn
by this method are more accurate and reliable than results yielded by census
method. The condition for getting accurate result is only that the sample
should be properly selected.
Administrative control
In sampling methods the cases are generally small hence it is usually more
convenient from administrative point of view. Sampling method is useful
as it is easy to manage and control samples.
TYPES OF SAMPLING
PROBABILITY
SAMPLING
SIMPLE STRATIFIED
CLUSTER
RANDOM RANDOM
SAMPLING
SAMPLING SAMPLING
Random Sampling
It is the sampling technique which assures that every element is unique in
the universe will get an opportunity to be selected.
Cluster Sampling
It is also called multi stage sampling. Generally used to
select samples from a very large area. Under this method the selection
of sample is made in different stages.
NON-
PROBABILITY
SAMPLING
Accidental Sampling
In accidental sampling the researcher picks up cases from the population
that happens to be accidentally available to the investigator (no criteria in
selection, there is no guarantee).
Quota Sampling
In this sampling technique the universe is first divided into different strata.
Then the number to be selected from each stratum is decided. This number
is known as quota.
Purposive Sampling
Units are selected from the universe purposively by the researcher. The
choice of selection is supreme. Here you have a clear purpose.
QUESTIONNAIRE
Questionnaires are an inexpensive way to gather data from a potentially large
number of respondents. Often they are the only feasible way to reach a
number of reviewers large enough to allow statistically analysis of the results.
A well-designed questionnaire that is used effectively can gather information
on both the overall performance of the test system as well as information on
specific components of the system. If the questionnaire includes demographic
questions on the participants, they can be used to correlate performance and
satisfaction with the test system among different groups of users.
It is important to remember that a questionnaire should be viewed as a multi-
stage process beginning with interpretation of the results. Every step
needs to be designed carefully because the final results are only as good
as the weakest link in the questionnaire process. Although questionnaires
may be cheap to administer compared to other data collection methods, they
are every bit as expensive in terms of design time and interpretation.
INTERVIEWS
Interviews are a far more personal form of research than questionnaires. In
the personal interview, the interviewer works directly with the respondent.
Interviews are generally easier for the respondent, especially if what are
sought are opinions or impressions. I have opted for personal interview.
Personal interview can be classified into two categories:
HYPOTHESIS
A hypothesis consists either of a suggested explanation for a phenomena or of a
reasoned proposal suggesting a possible correlation between multiple
phenomena.
Following are the hypothesis created for the better positioning of the thesis:-
• In today competitive era, mutual funds are not facing tuff competition in
the financial market.
LIMITATION
Each and every study has some or the other limitations so as this study is having
which is as following:-
• Time constraint is one of the major problem arises at the time of data
collection because the respondents were not having enough time to entertain.
• It is necessary to have the right respondent for the proper study which is
another limitation I have found at the time of data collection.
• Most of the time it happen that consumer are not aware about the
company, its product and the services. Everybody heard the name of mutual
fund but what it is exactly nobody knows.
• Statistical error.
• This study will be helpful in multiple areas but its striking feature is the
role of mutual fund though having number of instruments available in the
market.
• It is more about the opportunities available in the market along with the
threat present i.e. other financial products.
INDUSTRY PROFILE
FINANCIAL INDUSTRY PROFILE
The US$ 28 billion Indian financial sector has grown at around 15 per cent
and has displayed stability for the last several years, even when other markets
in the Asian region were facing a crisis. This stability was ensured through
the resilience that has been built into the system over time. The financial
sector has kept pace with the growing needs of corporate and other
borrowers. Banks, capital market participants and insurers have developed a
wide range of products and services to suit varied customer requirements.
The Reserve Bank of India (RBI) has successfully introduced a regime where
interest rates are more in line with market forces. Financial institutions have
combated the reduction in interest rates and pressure on their margins by
constantly innovating and targeting attractive consumer segments. Banks and
trade financiers have also played an important role in promoting foreign trade
of the country.
Banks
The Indian banking system has a large geographic and functional coverage.
Presently the total asset size of the Indian banking sector is US$ 270 billion
while the total deposits amount to US$ 220 billion with a branch network
exceeding 66,000 branches across the country. Revenues of the banking
sector have grown at 6 per cent CAGR over the past few years to reach a size
of US$ 15 billion. While commercial banks cater to short and medium term
financing requirements, national level and state level financial institutions
meet longer-term requirements. This distinction is getting blurred with
commercial banks extending project finance. The total disbursements of the
financial institutions in 2001 were US$ 14 billion.
• The state sector Life Insurance Corporation (LIC), the largest life
insurer in 2000, sold close to 20 million new policies with a turnover
of US$ 5 billion.
• The gross premia for the insurance sector was US$ 13 billion for
2001-02.
• There are four public sector and nine private sector insurance
companies operating in general/non-life insurance business with a
premium income of over US$ 2.58 billion.
Venture Capital
Technology and knowledge have been and continue to drive the global
economy. Given the inherent strength by way of its human capital, technical
skills, cost competitive workforce, research and entrepreneurship, India is
positioned for rapid economic growth in a sustainable manner. To realize the
potential, there is a need for risk finance and venture capital (VC) funding to
leverage innovation, promote technology and harness knowledge based ideas.
• The Indian venture capital sector has been active despite facing a
challenging external environment in 2001 and a competitive market
scenario.
• The amount has grown nearly twenty fold in the past five years. Most
VCs believe that 2002-03 will be driven by a relatively stable economy
and new initiatives that will boost the e-commerce sector, particularly
on-line trading and e-banking sectors.
Changing paradigms of the financial services
In this era of fierce competition, it has become extremely imperative for all of
us to weave clear cut strategy to deal with these changing dimensions of the
business landscape in financial services. We need to strengthen each link in
the value chain and move with a clear cut vision to deliver values in the
market. Therefore, I would feel we need to be competitive at all the levels -
individual, corporate, economy and regulatory.
It may be apparent that nothing but the change is stable in the world. It offers
both the opportunities and the challenges to the individuals. It is for the
individuals to choose what do they look at. According to me, change is
nothing but an exciting opportunity to reposition oneself. Understand that the
driving force behind any repositioning is change. This repositioning may be
because of the survival crisis created by the unanticipated change or the
excitement offered by the change in terms of the unlimited opportunities not
visible with the naked eyes.
We all need to appreciate that future is never the extrapolation of the past. It
is absolutely unpredictable, discontinuous and non-linear. That is where the
excitement lies to the leading professionals in the market. They understand
that the future is what they shape up now. That is why they don’t talk about
predicting future, they talk about imagining future and having imagined,
creating it. They create future in the literal sense. Leaders also appreciate that
there is nothing called sustainable leadership in this ever changing world and
they have got to be extraordinarily competitive to sustain and lead the
revolution on the persistent basis.
I would convey to the corporate to do fewer things but do them better than
the best, globally. Corporate need to appreciate that no one can internalize the
versatility of competencies. Hence, it would be imperative for them to
leverage, outsource, network and create strategic alliances with others.
Further, they need to think without precedents as precedents create risk of
traditional thinking and withhold the imagination from running radical and
development of fundamentally great and different products and services.
They need to be different faster than being better and be better faster than
being smaller. They need to go beyond known paradigms to be the path-
breakers and secure a place at the international platform.
The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India, at the initiative of the Government of India and Reserve Bank
the. The history of mutual funds in India can be broadly divided into four
distinct phases:
1987 marked the entry of non- UTI, public sector mutual funds set up by
public sector banks and Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC). SBI Mutual Fund was the first
non- UTI Mutual Fund established in June 1987 followed by Canbank
Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian
Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual
Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had
set up its mutual fund in December 1990. At the end of 1993, the mutual fund
industry had assets under management of Rs.47, 004 crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund
families. Also, 1993 was the year in which the first Mutual Fund Regulations
came into being, under which all mutual funds, except UTI were to be
registered and governed. The erstwhile Kothari Pioneer (now merged with
Franklin Templeton) was the first private sector mutual fund registered in
July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry
now functions under the SEBI (Mutual Fund) Regulations 1996. The number
of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers
and acquisitions. As at the end of January 2003, there were 33 mutual funds
with total assets of Rs. 1,21,805 crores. The Unit Trust of India with
Rs.44,541 crores of assets under management was way ahead of other mutual
funds.
In February 2003, following the repeal of the Unit Trust of India Act 1963
UTI was bifurcated into two separate entities. One is the Specified
Undertaking of the Unit Trust of India with assets under management of
Rs.29,835 crores as at the end of January 2003, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes. The
Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does
not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and
LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had in March
2000 more than Rs.76,000 crores of assets under management and with the
setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund
Regulations, and with recent mergers taking place among different private
sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September, 2004, there were 29
funds, which manage assets of Rs.153108 crores under 421 schemes.
ROWTH IN ASSETS UNDER MANAGEMENT
CONCEPT OF MUTUAL FUND
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.
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. 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.
There are many entities involved and the diagram below illustrates the
organizational set up of a mutual fund:
Wide variety of Mutual Fund Schemes exists to cater to the needs such as
financial position, risk tolerance and return expectations etc. The table below
gives an overview into the existing types of schemes in the Industry.
By Structure
- Open ended
- Close ended
By investment objective
- Growth Scheme
- Income Scheme
- Balanced Scheme
- Money market Scheme
Other Schemes
- Tax saving Scheme
- Special Scheme
- Index Scheme
- Sector specific Scheme
Major Players
CHAPTER-4
Reliance Capital Ltd. has interests in asset management, life and general
insurance, private equity and proprietary investments, stock broking and
other financial services. Reliance Capital Asset Management Ltd. has a
vision of being a leading player in the Mutual Fund business and has
achieved significant success and visibility in the market.
Employees:
Reliance Capital Asset Management Ltd. has at present, a code of conduct for
all its officers. It has a clearly defined prohibition on insider trading policy
and regulations. The management believes in the principles of propriety and
utmost care is taken while handling public money, making proper and
adequate disclosures.
All personnel at Reliance Capital Asset Management Ltd are made aware of
their rights, obligations and duties as part of the Dealing Policy laid down in
terms of SEBI guidelines. They are taken through a well-designed HR
program, conducted to impart work ethics, the Code of Conduct, information
security, Internet and e-mail usage and a host of other issues.
Our Schemes
Equity/Growth
The aim of growth funds is to provide capital appreciation over the medium to
long- term. Such schemes normally invest a major part of their corpus in
equities. Such funds have comparatively high risks. These schemes provide
different options to the investors like dividend option, capital appreciation, etc.
and the investors may choose an option depending on their preferences. The
investors must indicate the option in the application form. The mutual funds also
allow the investors to change the options at a later date. Growth schemes are
good for investors having a long-term outlook seeking appreciation over a period
of time.
Debt/Income
The aim of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds,
corporate debentures, Government securities and money market instruments.
Such funds are less risky compared to equity schemes. These funds are not
affected because of fluctuations in equity markets. However, opportunities of
capital appreciation are also limited in such funds. The NAVs of such funds are
affected because of change in interest rates in the country. If the interest rates
fall, NAVs of such funds are likely to increase in the short run and vice versa.
However, long term investors may not bother about these fluctuations.
Sector Specific
These are the funds/schemes which invest in the securities of only those sectors
or industries as specified in the offer documents. e.g. Pharmaceuticals, Software,
Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in
these funds are dependent on the performance of the respective
sectors/industries. While these funds may give higher returns, they are more
risky compared to diversified funds. Investors need to keep a watch on the
performance of those sectors/industries and must exit at an appropriate time.
They may also seek advice of an expert.
CHAPTER-5
SBI Mutual Fund is a joint venture between the State Bank of India and
Society General Asset Management, one of the world’s leading
fund management companies that manages over
US$ 330 Billion worldwide. In eighteen years of operation, the fund has
launched thirty-two schemes and successfully redeemed fifteen of them.
In the process it has rewarded it’s investors handsomely with
consistently high returns. A total of over 3.8 million investors have
reposed their faith in the wealth generation expertise of the Mutual
Fund. Schemes of the Mutual fund have consistently outperformed
benchmark indices and have emerged as the preferred investment for
millions of investors and HNI’s.
Today, the fund manages over Rs. 20000 crores of assets and has a
diverse profile of investors actively parking their investments across 40
active schemes. The fund serves this vast family of investors by
reaching out to them through network of over 100 points of acceptance,
26 investor service centers, 33 investor service desks and 52 district
organizers. SBI Mutual is the first bank-sponsored fund to launch an
offshore fund – Resurgent India Opportunities Fund. Growth through
innovation and stable investment policies is the SBI MF credo.
Our schemes
Equity scheme
The investments of these schemes will predominantly be in the stock
markets and endeavor will be to provide investors the opportunity to
benefit from the higher returns which stock markets can provide.
However they are also exposed to the volatility and attendant risks of
stock markets and hence should be chosen only by such investors who
have high risk taking capacities and are willing to think long term.
Equity Funds include diversified Equity Funds, Sectoral Funds and
Index Funds. Diversified Equity Funds invest in various stocks across
different sectors while Sectoral funds which are specialized Equity
Funds restrict their investments only to shares of a particular sector and
hence, are riskier than Diversified Equity Funds. Index Funds invest
passively only in the stocks of a particular index and the performance of
such funds move with the movements of the index.
Debt Scheme
Debt Funds invest only in debt instruments such as Corporate Bonds,
Government Securities and Money Market instruments either
completely avoiding any investments in the stock markets as in Income
Funds or Gilt Funds or having a small exposure to equities as in
Monthly Income Plans or Children's Plan. Hence they are safer than
equity funds. At the same time the expected returns from debt funds
would be lower. Such investments are advisable for the risk-averse
investor and as a part of the investment portfolio for other investors.
Balanced Scheme
Magnum Balanced Fund invests in a mix of equity and debt
investments. Hence they are less risky than equity funds, but at the
same time provide commensurately lower returns. They provide a good
investment opportunity to investors who do not wish to be completely
exposed to equity markets, but is looking for higher returns than those
provided by debt funds.
CHAPTER-6
Interpretation-
On the basis of above graph it can be seen that people are 100% aware about
mutual funds.
INVESTMENT PLANS
Interpretation-
An asset consists of land, building and bullion whereas financial instruments
consists of FD’s, PPF, Insurance, Mutual funds, Shares. Financial
instruments are more prefered by the people for investment purpose.
Interpretation-
The average investors fall in the category having earning capacity of Rs. 3-5
Lakh whereas next position is holded by the investors having earning
between 2-3 Lakh. These all investors can be termed as small investors.
OBJECTIVE OF INVESTMENTS
100 Increment of
wealth
80
Tax saving
60
Secuirty of
40 money
Future use
20
Interpretation-
On the basis of above graph it can be seen that most of the people are having
‘tax saving’ as an investment objective where the second preference is to
increment in wealth.
Interpretation-
On the basis of above graph it can be seen that the features which attract the
investors to invest in mutual fund is “tax benefits”. Secondly the return
potential which attract the customer to invest in MF’s.
Interpretation-
Investors are having lots of investment in Reliance MF’s. The company
which is giving the close competition to Reliance is SBI which is followed by
Franklin and many more.
60 Brand image
50
Company
40 performance
30 Features
20
Market
10 Condition
Interpretation-
On the basis of above graph it can be seen that for opting for any company
people give the preference to the features of the products in comparison to
brand image, company performance and market condition.
Interpretation-
On the basis of above graph it can be seen that people are having the
perception that MF’s are the popular instrument for investment. Though there
is population which believes that MF’s are not better option for investment as
compare to other government securities.
HYPOTHESIS TESTING
“Mutual funds are not a popular instrument for investment as compared to other
financial instruments.”
This is the hypothesis for which I have chosen the method for testing is “Null
Hypothesis testing.”
This Hypothesis has been rejected because it is far from the acceptance
region. So it is proved that mutual fund are the popular instrument fro
investment as compared to other financial instruments.
INVESTMENT ALLOCATION
50
40 Mutual fund
Share
30
Fixed Deposit
20 PPF
10
Interpretation-
On the basis of above graph it can be seen that maximum people allocate
their investment in mutual funds along with PPF, FD’s and share.
HYPOTHESIS TESTING
“In today competitive era, mutual funds are not facing tuff competition in the
financial market.”
This is the hypothesis for which I have chosen the method for testing is “Null
Hypothesis testing.”
This Hypothesis has been rejected because it is far from the acceptance
region. So it is proved that in today’s competitive era mutual funds are facing
tuff competition in the financial market.
Interpretation-
On the basis of above graph it can be seen that most of the investors are
having one time investment in MF’s. They believe in long term investment.
Interpretation-
On the basis of above graph it can be seen that investors prefer private
company in comparison to Government Company for investment purpose.
HYPOTHESIS TESTING
This Hypothesis has been accepted because it falls in the acceptance region.
So it is proved that the mutual funds market of government sector is more
prominent/comprehensive.
40 Mutual funds
35
30
Shares
25
20
Life insurance
15
10
Other fixed
5 income
0 instruments
Interpretation-
On the basis of above graph it can be seen that mutual funds are holding
market share of 20% only which is less if compared to shares and life
insurance.
CHAPTER-7
FINDINGS
• Now a days, people know how to earn along with it they all know
where the investment will be better. Earlier people only invest in FD”s,
PPF and bonds it dos not mean that other financial instrument was not
available. It was available but people were having the perception that
only government securities can be the safer investment option. But in
today’s scenario is completely changed, people are willing to take risk
for getting more and more return. In their investment option sensitive
instrument like mutual funds and shares are taking more space.
• According to the market research I have found that most of the people
are aware about MF’s, their features, their benefits as well as
maximum people were having MF’s in their investment portfolio.
• Most of the people are having financial instrument as their investment
tool but the proportion of investment in assets are less in numbers. As
maximum average investors were having the earning capacity between
3-5 Lakh. They can be said as small investors whereas investors having
annual income between 5-7 Lakh are less in numbers.
• According to the research I have found that the main objective of the
investment is tax saving. Second preference is given to the increment
in wealth.
• The features which attract the investors to invest in mutual funds are
tax benefits; return potential and liquidity whereas less preference is
given to diversification.
• People are opting for Reliance mutual funds because of the products
features they offer. Second preference they give to brand image for the
purpose of making investment. Whereas equal preference is given to
the company performance and market condition.
• As per the survey it is found that most of the people are having one
time investment as compare to periodic investment. These investors do
the investment for the long term. Active investors are less in numbers
who believe in periodic investment.
• As per the survey it is found that in Gorakhpur city MF’s are holding
market share of 20% which is less in proportion if we compare it to
other investment instruments. Like share are having market share of
40%, Life insurance 30% and other fixed income instruments are
holding the market share of 10%.
• The investors who are buying the MF’s fall in the earning capacity of
3-5 Lakh. It does not mean that people who fall in other category do
not consider MF’s as their investment portfolio. All the categories are
considering it but differentiation arises on the basis of amount invested
in MF’s. Like an investor having earning capacity between 1-3 Lakh
will invests in MF’s but the amount of investment will be lesser as
compared to the investor having earning capacity above 7 lacs.
• As per the interview with dealers it is found that all the four options
(MF’s, share, life insurance, fixed income instruments) are considered
by the investors in their investment portfolio. Just the proportion of
investment varies and this variation takes place on the basis of their
earning capacity. Like people who are having the income between 7-10
Lakh will investment more in shares and MF’s as compare to other
option because their risk taking capacity is more but if we consider the
average income group all investment option are available in lesser
proportion if compared to high income group. If consider the small
investors having very low income their investment option would be
fixed income instrument , MF’s and life insurance but off course not
the shares.
• Most of the investors opting for MF’s fall into the age group of 30-40.
They are having the capacity to make investment on MF’s as well as
ability to take more risk. They do not have much effect on their
financial health if any loss occurs because they are having number of
sources of income.
BIBLIOGRAPHY
• Mutual Funds book of ICFAI National College.
• Security Analysis book of ICFAI National College.
• Book of Financial Management by Ravi M. Kishore.
• Article by David Logan Scott ‘Investment in MF’s’.
• Article by Jordan Goodman ‘everyone money books’.
• Another Puzzle: The Growth in Actively Managed Mutual
Funds. Martin J. Gruber.
• The Persistence of Risk-Adjusted Mutual Fund Performance.
Edwin J. Elton. Martin
• Fact sheet of Reliance Mutual Fund
• Fact sheet of SBI Mutual Fund
• Wall street journal.
• India at the cross road by Tim Callen.
• Mutual fund in India by Amitabh Gupta.
• www.amfi.com
• www.mutualfund.com
• www.taxmann.com
• www.mutualfundsindia.com
• www.moneycontrol.com
• www.nytimes.com
• www.magportal.com
• www.financialexpress.com
• www.finmin.nic.ins
• www.fundsavvy.com
• www.principalindia.com
• www.livemint.com
• http://www.mf-tech.com
• http://www.sebi.gov.in
• www.reliancefund.com
• www.sbimf.com
• www.wikipedia .com
• www.valueresearchonline.com
APPENDICES
Q8. Do you think mutual funds are the popular instrument for investments?
a) Yes b) No
Q12. Name four mutual funds company in order of priority, available in the
market?
a)……………………………… b)………………………….
c)……………………………… d)………………………….
Q3. Investors opting for mutual fund fall into the following age groups?
a) 20-30 b) 30-40
c) 40-50 d) 50-60
GLOSSARY
• Asset Allocation
Deploying of funds for diversifying portfolio among different types of
assets, such as stocks, bonds, debentures
• Diversification
A strategy followed by fund manager to reduce risk by investing in
securities, common stock, debentures or bonds of several companies.
• Fund Manager
An individual or an organization which makes the investment decision on
behalf of the fund.
• Mutual Fund
MF’s is a financial intermediary that is established in the form of a trust. It
pools the savings the numerous individuals and invests the money thus
raised in a diversified portfolio of securities.
• Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it
may include a back-end load. This is also called Bid Price.
• Redemption Price
Is the price at which open-ended schemes repurchase their units and
Close-ended schemes redeem their units on maturity. Such prices are
NAV related.
• Sales Load
Is a charge collected by a scheme when it sells the units. Also called,
‘Front-end’ load. Schemes that do not charge a load are called ‘No Load’
Schemes.
• Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It
may include a sales load.
STUDENT’S DECLARATION
HOD SIGNATURE
PREFACE
The process of financial sector reforms, economic liberalization and
globalization of Indian business, it generated the interest and income of
the peoples. But on account of inadequate knowledge of the currency
risk and lack of expertise, the common people still hesitant to invest their
hard earned money in the corporate securities.
The study of currency risk management helped in utilizing the fund in a
significant way and provided securities. This report provides the
conceptual knowledge of currency risk and its management. It gives the
vivid picture of the currency risk management .I am greatly thankful to
Miss.Gunjan Shrivastava (faculty of management deptt.) for her co-
operation and guidance.