PRESENTATION ON INVESTMENT ANALYSIS AND PROSPECT OF MUTUAL FUND

Presented By Presented By-: Pawan Kumar

The history of mutual funds dates back to 19th century when it was introduced in Europe, in particular, Great Britain. Robert Fleming set up in 1868 the first investment trust called Foreign and Colonial Investment Trust which promised to manage the finances of the moneyed classes of Scotland by spreading the investment over a number of different stocks. 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 appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders.

Anand Rathi shares and stock brokers ltd. (AR) is a leading full service securities firm providing the entire gamut of financial services. The firm, founded in 1994 by Mr. Anand Rathi, today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds and insurance, structured products - all of which are supported by powerful research teams. The firm's philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism.

The objective is to check the popularity & growth of Mutual Funds and whether Mutual Funds are really having a better prospect in India. The needs and wants of the client is taken into consideration. In this project the great emphasis is given to understand what investor want out of their investments in different schemes of Mutual Fund, how they compare it with traditional investment instruments, what is the number of increase in the investor base.

The scope of the study is inform & guide the investors about the various Mutual Fund Schemes and helps them to select the best scheme as per their requirement. Investors are the customers of the different companys mutual funds schemes during my project I worked with Anand Rathi Financial Services, KOTA.

In the primary capital market, Mutual Funds serve as a link between the saving public and the corporate sector, as they channelize savings from investors and corporations. In the secondary capital markets, they participate as investors and trade with other investors. By the very nature of their activities and by virtue of being knowledgeable and informed investors, they influence the markets and play an active role in promoting good corporate governance, investor protection and the health of capital markets. Mutual funds have imparted much needed liquidity into the financial system and have provided an alternative to the dominant role of banking and financial institutions in the financial markets.

People in Kota have a handsome earning of income from various People save and invest regularly, a part of their income Among the investors a large number is of Businessman. People are investing into different schemes of Mutual Fund, and are increasing their investments in Mutual Funds industry. The awareness about Mutual Funds & Share market. Major investor in Mutual Funds is the people from middle income group. People keep their money in the mutual Funds for a short period and longer period.

Respondents were not ready to give appointments. Data had to be collected according to the convenience of the respondents and therefore time management became a major hurdle. Some of the questions were not answered properly by people because of lack of time. We were asked to target only a few area of Kota, so our sample size was small. Some of them thought by filling questionnaire they will get some calls from company which is very difficult to tackle. It was seen that sometimes the respondents postponed a meeting by extending the date even after fixing an appointment, it made things difficult.

In this project the great emphasis is given to understand what investor want out of their investments in different schemes of Mutual Fund, how they compare it with traditional investment instruments, what is the number of increase in the investor base. Investors are the customers of the different companys mutual funds schemes during my project I worked with Anand Rathi Financial Services, KOTA.

The Anand Rathi Financial Service on the wide scale should conduct investor awareness programs. While the firms should conduct such programs in their locality to inform its existing customers about various mutual fund schemes. The investors should analyze and identify their objective of investment in Mutual Funds and the period. The incentives given to the brokers should be revised and enhanced to keep the staff motivated. In Kota, the customers have huge money and intention to invest but they are either not fully aware of the various schemes or not happy with the service rendered. In order to tap the potential effective campaign should be started.