KARVY STOCK BROKING LTD

Karvy Stock Broking Limited was founded in 1990 and is based in Hyderabad, India. Karvy Stock Broking Limited operates as a subsidiary of Karvy Consultants.

Stock Broking Portfolio Analysis Depository Participant Financial advisory and management services for Individual and Institutional Investors. It also provides a monthly magazine, Finapolis, which provides updated market information on market trends, investment options, and opinions.

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors.

To Study the perception of Investors regarding Mutual Funds. To compare the schemes based on their performance and Returns. To show the wide range of investment options available in Mutual Funds by explaining its various schemes. To help an investor make a right choice of investment, while considering the inherent risk factors.

A Research Methodology defines what the activity of research is, how to proceed, how to measure progress, and what constitutes success.

Primary Data: In the first part of the Project, Primary data i.e. first hand information has been used as a source of data collection. It has been collected from the information that was provided by the respondents through structured Questionnaires.

The Second Part involves randomly selecting Open-Ended equity, Balanced & Growth schemes of fund houses namely Reliance Mutual Funds, HDFC Mutual Funds, ICICI Prudential Mutual Funds. The data for this project is basically from one source, that is:Secondary sources: Data has been collected from the Information Brochures of the prescribed companies and Internet.

Research has been conducted in the area of Jalandhar city and a sample size of 100 Investors has been used in the survey.

Structured Questionnaire has been used as a sampling tool. Convenience Sampling Technique has been used in order to select the respondents based on how easy and convenient it is to reach a respondent. The analytical tool used in the study is Percentage Method for easy analysis of the collected data.

For easy understanding of statistical data, Graphical Representation has been made in the form of Charts

Most of the Investors choose Open-Ended Mutual Funds for Investment. Most of the Investors find Mutual Funds as Secure Investment and invest in Mutual Funds for the sake of Regular Returns. Many investors consult the Fund Managers for taking suggestions regarding investments. Factors that most of the Investors take into considerations while investing in Mutual Funds are Returns and Risk Coverage. Investors find it difficult to decide about the amount to be invested and selecting mutual fund schemes while making investment.

Most of the investors invest in Balanced Funds than Growth and Equity Funds. Many Investors invest in Mutual Funds for the time period of 2 to 5 years. Among the Equity Schemes of Reliance, HDFC & ICICI Prudential Mutual Funds, the performance of HDFC TaxSaver Fund was best with the average return of 37.402%. Among the Balanced Schemes of Reliance, HDFC & ICICI Prudential Mutual Funds, the performance of Reliance Regular Saving Fund was best with the average return of 88.39%. Among the Growth Schemes of Reliance, HDFC & ICICI Prudential Mutual Funds, the performance of Reliance Growth Fund was best with the average return of 41.59%.

Investors should Draw down their investment objectives. There are various schemes suitable for different needs. For example retirement plan, capital growth etc. Also get clear about your time frame for investment and returns. Equity funds are not advisable for short term because of their long term nature. You can consider money market and floating rate funds for short term gains. This equals asking - What kind of mutual fund is right for me?

Once the investors have decided on a plan or a couple of them, they should collect as much information as possible on them from different sources offering them. Funds' prospectus and advisors may help you in this. Investors should Pick out companies consistently performing above average. Mutual funds industry indices are helpful in comparing different funds as well as different plans offered by them.

Investors should get a clear picture of fees & associated cost, taxes (for non-tax free funds) for all your short listed funds and how they affect your returns. Best mutual funds have lower cost out go. Best mutual funds maximize returns and minimize risks. A number called as Sharpe Ratio explains whether a fund is risk free based on its expected returns compared against a risk free money market fund.

Some funds have the advantage of low minimum initial investments. Investors can start investing even with small amount of money. This is advisable for building asset bases over a long period with small regular investments.

In the nut shell, It can be concluded that 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 is also Liquidity benefit in Mutual Funds as in open ended schemes, an investor can get his money back promptly at NAV from the mutual fund itself. With close-ended schemes, he can sell the units on a stock exchange at the prevailing market price or avail the repurchase facility which some close-ended schemes offer periodically at regular intervals.

Moreover Mutual Funds provide the benefit of Transparency an investor can get regular information on the value of his investment, other disclosures, the fund managers investment strategy and outlook etc. Hence we can arrive at a conclusion that Mutual Fund is a Productive Avenue for Investment as it provides more returns and minimizes risk.