SYNOPSIS ON

(COMPARATIVE STUDY OF MUTUAL FUNDS AND OTHER

INVESTMENT ALTERNATIVE)

SUPERVISED BY:
SUBMITTED BY:

Mrs. Shubhra Johari Nidhi

Singh

Faculty of business management Roll

no: 0916470034

MBA IV
Semester

PSIT
 INTRODUCTION

Indian Mutual Funds industry offers a plethora of schemes and serves broadly all type of
investors. The range of products includes equity funds, debt, liquid, gilt and balanced funds.
There are also funds meant exclusively for young and old, small and large investors.
Moreover, the setup of a legal structure, which has enough teeth to safeguard investors
interests, ensures that the investors are not cheated out of their hard earned money. All in all,
benefits provided by them cut across the boundaries of investor category and thus create for
them, a universal appeal.

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.

TYPES OF MUTUAL FUNDS:

Based on investment objective:

Equity funds: These funds invest in equities and equity related instrument. With fluctuating
share price ,such funds show volatile performance even losses. Investment in equity funds
should be considered for a period of at least 3-5 years.

Balanced funds:Their investment portfolio includes both debt and equity .Balanced funds
are ideal mutual funds vehicle for investors who prefer spreading their risk across various
instruments.

Debt funds:They only invest in debt instrument, and are a good opinion for investors averse
to idea of taking risk associated with equities. Therefore they invest exclusively in fixed
income instruments like bonds , debenture ,government of india securities and certificate of
deposites.
Based on structure:

Open ended funds: Investors can buy and sell units from the fund at any point of time.

Closed ended funds: These funds raise money from investors only once. Therefore after
offer period,fresh investment can not be made in to funds.

TYPES OF OTHER INVESTMENT ALTERNATIVES: They are of two types_

1. Financial instrument :

a)Equities

b) Mutual funds

c) Bonds

d) Deposites

2. Non financial instrument:

a) Real gold

b) Commodities
OBJECTIVES OF THE STUDY :

The purpose of the study was to determine the saving behavior and investment preferences of
customers. Customer perception will provide a way to accurately measure how the customers
think about the products and services provided by the company. Today’s trying economic
conditions have forced difficult decisions for companies. Most are making conservative
decisions that reflect a survival mode in the business operations.

• To understand all about different investment avenues available in

India.

• To find out how the investors get information about the various
financial instrument and what factors they consider before making
their investments

• To find out the most preferred channel.

• To find out what should do to boost Mutual Fund Industry.

• To make comprehensive study on various mutual fund scheme.

 • To compare the various investment alternative with mutual funds.

Research methodology:
TYPES OF DATA:

My report is based on primary as well as secondary data. One of the most

important uses of research methodology is that it helps in identifying the
problem, collecting, analyzing the required information data and providing
an alternative solution to the problem..

1. Primary data

2. Secondary data

Research is totally based on primary data. Secondary data can be used only
for reference. Research has been done by primary data collection and
primary data has been collecting by interacting with various people.

SAMPLE SIZE:

Sample size of my project is 100 people who invest in mutual funds or use
other alternatives as bonds, deposites and gold.
BIBLOGRAPHY:

http://www.investmenttools.com/equities/world/india_bse_30.htm

http://www.karvy.com/mfd/faq.htm#What is a Mutual Fund?

http://www.financemind.com/investment/investment-type.html