An Research Report On “A Comparative study on

Mutual funds”.

Supervised By: Ms. Kritika Sautha

Assistant Professor

Course & Discipline: BBA

School of Management

A P Goyal Shimla University

Prepared By: Abdulla All Jabed

Enrolment Roll: 16001397

Session: 2016-2019

Course & Discipline: BBA 6th

School of Management

A P Goyal Shimla University

Date of Submission:

Course & Discipline: BBA

A P Goyal Shimla University, Himachal Pradesh, India

CERTIFICATE-I
This is to certify that the project entitled A COMPARATIVE STUDY ON MUTUAL FUNDS has
been submitted to department of Business Management, A P GOYAL SHIMLA UNIVERSITY BY
ABDULLA ALL JABED

In partial fulfilment of the requirements for the degree of Master of Business Administration of
this university. To best of my knowledge no part of this project has been submitted for any
degree or diploma anywhere elsewhere and the help received during this course of
investigation and courses of literature and sources of literature have been duly acknowledged.

Place: Kritika Sautha

Dated: Project Advisor

Certificate –II
This is to certify that the project entitled A COMPARATIVE STUDY ON MUTUAL FUNDS Has
been, submitted to Department of Business Management, A P GOYAL SHIMLA UNIVERSITY BY
ABDULLA ALL JABED

In partial fulfilment of the requirements for the degree of Master of Business Administration of
this university. The project has been approved by the Examination Committee after conducting
an oral examination in collaboration with external examiner.

Kritika Sautha ..................................

(Project advisor) ( External Examiner )

DECLARATION

Shimla University, I, ABEULLA ALL JABED, Enroll no 16001397, student of BBA of School
of Business, AP Goyal Shimla, hereby declare that the research report on ‘‘A COMPARATIVE
STUDY ON MUTUAL FUNDS” is an original and authenticated work done by me.

I further declare that it has not been submitted elsewhere by any other person in any of the
institutes for the award of any degree or diploma.

Signature:

Student Name: Abdulla All Jabed

ACKNOWLEDGEMENT

This project has been made possible through the efforts, support and co-operation of various
persons to whom I would like to express my appreciation and gratitude.

First and foremost, it gives me immense pleasure to express my sincere gratitude to Mr. /Mrs.
/Ms Kritika Sautha whose sincere support has enabled me at each and every step and their
experience has always given me the right direction to achieve my goals.

I will have burden on my heart if I do not express my sincere thanks to staff members of
____________ for his untiring help rendered during the study from time to time. I am also
thankful to him for his valuable advice and sincere guidance during the research report.
CONTENTS: FOR RESEARCH REPORT:

CHAPTER 1 INTRODUCTION
1.1 Introduction to Industry
1.2 Introduction to Company
1.3 Introduction to Topic
CHAPTER 2 NEED & OBJECTIVE
2.1 Need of the study.
2.2 Objectives of the study.
CHAPTER 3 RESEARCH METHODLOGY
3.1 Research Problem
3.2 Research Design
3.3 Sampling
3.4 Data Collection
3.5 Limitations of the Study
CHAPTER 4 DATA ANALYSIS AND INTERPRETATION
CHAPTER 5 FINDING
CHAPTER 6 CONCULSIONS AND SUGGESTIONS
6.1 Conclusion
6.2 Suggestions
REFERENCE
ANNEXURE
 CHAPTER 1
INTRODUCTION

1.1 Introduction to Industry:

There are a lot of investment avenues available today in the financial market for an investor
with an investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds
where there is low risk but low return. He may invest in Stock of companies where the risk is
high and the returns are also proportionately high. The recent trends in the Stock Market have
shown that an average retail investor always lost with periodic bearish tends. People began
opting for portfolio managers with expertise in stock markets who would invest on their behalf.
Thus we had wealth management services provided by many institutions. However they proved
too costly for a small investor. These investors have found a good shelter with the mutual
funds.

HISTORY OF MUTUAL FUNDS IN INDIA:

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 history of mutual funds in India
can be broadly divided into four distinct phases

FIRST PHASE – 1964-87:

SECOND PHASE – 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS):

THIRD PHASE – 1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS):

FOURTH PHASE – SINCE FEBRUARY 2003:

REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA:

The structure of mutual funds in India is guided by the SEBI. Regulations, 1996.Theseregulations
make it mandatory for mutual fund to have three structures of sponsor trustee and asset
Management Company. The sponsor of the mutual fund and appoints the trustees. The
trustees are responsible to the investors in mutual fund and appoint the AMC for managing the
investment portfolio. The AMC is the business face of the mutual fund, as it manages all the
affairs of the mutual fund. The AMC and the mutual fund have to be registered with SEBI.
SEBI REGULATIONS:

• As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual funds
to protect the interest of the investors.

• SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds sponsored by
private sector entities were allowed to enter the capital market.

• The regulations were fully revised in 1996 and have been amended thereafter from time to
time.

• SEBI has also issued guidelines to the mutual funds from time to time to protect the interests
of investors.

• All mutual funds whether promoted by public sector or private sector entities including those
promoted by foreign entities are governed by the same set of Regulations. The risks associated
with the schemes launched by the mutual funds sponsored by these entities are of similar type.
There is no distinction in regulatory requirements for these mutual funds and all are subject to
monitoring and inspections by SEBI.

• SEBI Regulations require that at least two thirds of the directors of trustee company or board
of trustees must be independent i.e. they should not be associated with the sponsors.

• Also, 50% of the directors of AMC must be independent. All mutual funds are required to be
registered with SEBI before they launch any scheme.

• Further SEBI Regulations, inter-alia, stipulate that MFs cannot guarantee returns in any
scheme and that each scheme is subject to 20 : 25 condition [I.e minimum 20 investors per
scheme and one investor can hold more than 25% stake in the corpus in that one scheme].

• Also SEBI has permitted MFs to launch schemes overseas subject various restrictions and also
to launch schemes linked to Real Estate, Options and Futures, Commodities, etc.

ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI):

With the increase in mutual fund players in India, a need for mutual fund association in India
was generated to function as a non-profit organisation. Association of Mutual Funds in India
(AMFI) was incorporated on 22nd August, 1995. AMFI is an apex body of all Asset Management
Companies (AMC) which has been registered with SEBI. Till date all the AMCs are that have
launched mutual fund schemes are its members. It functions under the supervision and
guidelines of its Board of Directors.
Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a
professional and healthy market with ethical lines enhancing and maintaining standards. It
follows the principle of both protecting and promoting the interests of mutual funds as well as
their unit holders.

The Objectives of Association of Mutual Funds in India:

The Association of Mutual Funds of India works with 30 registered AMCs of the country.
It has certain defined objectives which juxtaposes the guidelines of its Board of Directors.
The objectives are as follows:

• This mutual fund association of India maintains high professional and ethical standards in all
areas of operation of the industry.

• It also recommends and promotes the top class business practices and code of conduct which
is followed by members and related people engaged in the activities of mutual fund and asset
management. The agencies who are by any means connected or involved in the field of capital
markets and financial services also involved in this code of conduct of the association.

• AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund industry.

• Association of Mutual Fund of India do represent the Government of India, the Reserve Bank
of India and other related bodies on matters relating to the Mutual Fund Industry.

• It develops a team of well qualified and trained Agent distributors. It implements a

programme of training and certification for all intermediaries and other engaged in the mutual
fund industry.

• AMFI undertakes all India awareness programme for investors in order to promote proper
understanding of the concept and working of mutual funds.

• At last but not the least association of mutual fund of India also disseminate information on
Mutual Fund Industry and undertakes studies and research either directly or in
association with other bodies.

AMFI Publications:

AMFI publish mainly two types of bulletin. One is on the monthly basis and the other is
quarterly. These publications are of great support for the investors to get intimation of the
knowhow of their parked money.

MUTUAL FUNDS IN INDIA

In 1963, the day the concept of Mutual Fund took birth in India. Unit Trust of India invited
investors or rather to those who believed in savings, to park their money in UTI Mutual Fund.
For 30 years it goaled without a single second player. Though the 1988 year saw some
satisfactory level. People rarely understood, and of course investing was out of question. But
new mutual fund companies, but UTI remained in a monopoly position. The performance of
mutual funds in India in the initial phase was not even closer to yes, some 24 million
shareholders were accustomed with guaranteed high returns by the beginning of liberalization
of the industry in 1992. This good record of UTI became marketing tool for new entrants. The
expectations of investors touched the sky in profitability factor. However, people

Were miles away from the preparedness of risks factor after the liberalization. The net asset
value (NAV) of mutual funds in India declined when stock prices started falling in the year 1992.
Those days, the market regulations did not allow portfolio shifts into alternative investments.
There was rather no choice apart from holding the cash or to further continue investing in
shares. One more thing to be noted, since only closed-end funds were floated in the market,
the investors disinvested by selling at a loss in the secondary market.

The performance of mutual funds in India suffered qualitatively. The 1992 stock market
scandal, the losses by disinvestments and of course the lack of transparent rules in the
whereabouts rocked confidence among the investors. Partly owing to a relatively weak stock
market performance, mutual funds have not yet recovered, with funds trading at an average
discount of 1020 percent of their net asset value.

The securities and Exchange Board of India (SEBI) came out with comprehensive
regulation in 1993 which defined the structure of Mutual Fund and Asset Management
Companies for the first time. The supervisory authority adopted a set of measures to
create a transparent and competitive environment in mutual funds. Some of them were
like relaxing investment restrictions into the market, introduction of open-ended funds,
and paving the gateway for mutual funds to launch pension schemes.

The measure was taken to make mutual funds the key instrument for long-term saving.

The more the variety offered, the quantitative will be investors.

Several private sectors Mutual Funds were launched in 1993 and 1994. The share of the private
players has risen rapidly since then. Currently there are 34 Mutual Fund organizations in India
managing 1,02,000 crores.

At last to mention, as long as mutual fund companies are performing with lower risks and
higher profitability within a short span of time, more and more people will be inclined to invest
until and unless they are fully educated with the dos and don’ts of mutual funds.
Mutual fund industry has seen a lot of changes in past few years with multinational companies
coming into the country, bringing in their professional expertise in managing funds worldwide.
In the past few months there has been a consolidation phase going on in the mutual fund
industry in India. Now investors have a wide range of Schemes to choose from depending on
their individual profiles.

MUTUAL FUND COMPANIES IN INDIA:

The concept of mutual funds in India dates back to the year 1963. The era between 1963 and
1987 marked the existence of only one mutual fund company in India with Rs. 67bn assets
under management (AUM), by the end of its monopoly era, the Unit Trust of India (UTI). By the
end of the 80s decade, few other mutual fund companies in India took their position in mutual
fund market.

The new entries of mutual fund companies in India were SBI Mutual Fund, Canbank Mutual
Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund.

The succeeding decade showed a new horizon in Indian mutual fund industry. By the end of
1993, the total AUM of the industry was Rs. 470.04 bn. The private sector funds started
penetrating the fund families. In the same year the first Mutual Fund Regulations came into
existence with re-registering all mutual funds except UTI. The regulations were further given a
revised shape in 1996.

Kothari Pioneer was the first private sector mutual fund company in India which has now
merged with Franklin Templeton. Just after ten years with private sector players penetration,
the total assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund companies in India.

Major Mutual Fund Companies in India

• ABN AMRO Mutual Fund

• Birla Sun Life Mutual Fund

• Bank of Baroda Mutual Fund

• HDFC Mutual Fund

• HSBC Mutual Fund

• ING Vysya Mutual Fund

• Prudential ICICI Mutual Fund

• State Bank of India Mutual Fund

• Tata Mutual Fund

• Unit Trust of India Mutual Fund

• Reliance Mutual Fund

• Standard Chartered Mutual Fund

• Franklin Templeton India Mutual Fund

• Morgan Stanley Mutual Fund India

• Escorts Mutual Fund

• Alliance Capital Mutual Fund

• Benchmark Mutual Fund

• Canbank Mutual Fund

• Chola Mutual Fund

• LIC Mutual Fund

• GIC Mutual Fund

1.2 Introduction to Company:

RELIANCE MUTUAL FUND

Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882. The
sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is
the Trustee. It was registered on June 30, 1995 as Reliance Capital Mutual Fund which
was changed on March 11, 2004. Reliance Mutual Fund was formed for launching of
various schemes under which units are issued to the Public with a view to contribute to
the capital market and to provide investors the opportunities to make investments in
diversified securities.
RMF is one of India’s leading Mutual Funds, with Average Assets Under Management
(AAUM) of Rs. 88,388 crs (AAUM for 30th Apr 09) and an investor base of over 71.53
Lacs. Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one
of the fastest growing mutual funds in the country. RMF offers investors a well-rounded
portfolio of products to meet varying investor requirements and has presence in 118
cities across the country.
Reliance Mutual Fund constantly endeavors to launch innovative products and customer
service initiatives to increase value to investors. "Reliance Mutual Fund schemes are
managed by Reliance Capital Asset Management Limited., a subsidiary of Reliance
Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the balance
paid up capital being held by minority shareholders."

Sponsor: Reliance Capital Limited.

Trustee: Reliance Capital Trustee Co. Limited.
Investment Manager:
Reliance Capital Asset Management Limited.
The Sponsor, the Trustee and the Investment Manager are incorporated under
the Companies Act 1956.

Vision Statement:
“ To be a globally respected wealth creator with an emphasis on customer care and a
culture of good corporate governance.”

Mission Statement:
To create and nurture a world-class, high performance environment aimed at delighting
our customers.

The Main Objectives Of The Trust:

• To carry on the activity of a Mutual Fund as may be permitted at law and formulate
and devise various collective Schemes of savings and investments for people in India
and abroad and also ensure liquidity of investments for the Unit holders;
• To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on
their savings and
• To take such steps as may be necessary from time to time to realise the effects
without any limitation.

SCHEMES
A). EQUITY/GROWTH SCHEMES:
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. Growth schemes are good for investors having a long-
term outlook seeking appreciation over a period of time.

1. Reliance Infrastructure Fund (Open-Ended Equity)

2. Reliance Quant Plus Fund/Reliance Index Fund (Open-Ended Equity)
3. Reliance Natural Resources Fund (Open-Ended Equity)
4. Reliance Equity Linked Saving Fund (A 10 Year Close-Ended Equity )
5. Reliance Equity Advantage Fund (Open-Ended Diversified Equity)
6. Reliance Equity Fund (Open-Ended Diversified Equity)
7. Reliance Tax Saver (ELSS) Fund (Open-Ended Equity)
8. Reliance Growth Fund (Open-Ended Equity)
9. Reliance Vision Fund (Open-Ended Equity)
10. Reliance Equity Opportunities Fund (Open-Ended Diversified Equity)
11. Reliance NRI Equity Fund (Open-Ended Diversified Equity)
12. Reliance Long Term Equity Fund (Open-Ended Diversified Equity)
13. Reliance Regular Savings Fund (Open-Ended Equity)

B). DEBT/INCOME SCHEMES:

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.

1. Reliance Monthly Income Plan

2. Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term Gilt
Plan
3. Reliance Income Fund
4. Reliance Medium Term Fund
5. Reliance Short Term Fund
6. Reliance Liquid Fund
7. Reliance Floating Rate Fund
8. Reliance NRI Income Fund
9. Reliance Liquidity Fund
10. Reliance Interval Fund
11. Reliance Liquid Plus Fund
12. Reliance Fixed Horizon Fund–I
13. Reliance Fixed Horizon Fund –II
14. Reliance Fixed Horizon Fund –III
15. Reliance Fixed Tenor Fund
16. Reliance Fixed Horizon Fund -Plan C
17. Reliance Fixed Horizon Fund - IV
18. Reliance Fixed Horizon Fund – V
19. Reliance Fixed Horizon Fund – VI
20. Reliance Fixed Horizon Fund – VII

C). SECTOR SPECIFIC SCHEMES:

These are the funds/schemes which invest in the securities of specified sectors or
industries e.g. Pharmaceuticals, Software, 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.
1. Reliance Banking Fund
2. Reliance Diversified Power Sector Fund
3. Reliance Pharma Fund
4. Reliance Media & Entertainment Fund

D). RELIANCE GOLD EXCHANGE TRADED FUND:

(An open-ended Gold Exchange Traded Fund) The investment objective is to seek to
provide returns that closely correspond to returns provided by price of gold
through investment in physical Gold (and Gold related securities as permitted by
Regulators from time to time).
However, the performance of the scheme may differ from that of the domestic prices of
Gold due to expenses and or other related factors.
 HDFC MUTUAL FUNDS
Introduction
HDFC Mutual Fund HDFC mutual fund is one of the largest mutual funds and well established
fund house in the country with consistent and above average fund performance across
categories since its incorporation on December 10, 1999. While our past experience does make
us a veteran, but when it comes to investments, we have never believed that the
experience is enough.

Investment Philosophy:
The single most important factor that drives HDFC mutual fund is its belief to give the
investor the chance to profitably invest in the financial market, without constantly worrying
about the market swings.

To realize this belief, HDFC mutual fund has set up the infrastructure required to
conduct all the fundamental research and back it up with effective analysis. Our strong
emphasis on managing and controlling portfolio risk avoids chasing the latest “FADs” and
trends.

They Offer
We believe that, by giving the investor long-term benefits, we have to constantly review
the markets for new trends, to identify new growth sectors and share this knowledge with
our investors in the form of product offerings. We have come up with various products
across asset and risk categories to enable investors to invest in line with their investment
objectives and risk taking capacity. Besides, we also offer portfolio management services.

Achievements
HDFC asset management company (AMC) is the first AMC in India to have been assigned
the ‘CRISIL fund house level – 1’ rating. This is its highest fund governance and process quality
rating which reflects the highest governance levels and fund management.

1. Name Of The AMC HDFC asset Management Company Limited

2. A Portfolio in the 2000 Become Too Conserved

Practices at HDFC AMC it is the only fund house to have been assigned this rating for two
years in succession. Over the past, we have won a number of awards and accolades for our
performance
Products of Mutual Fund:

Detailed Schemes Of HDFC AMC-:

EQUITY GROWTH FUND:

HDFC Growth Fund

HDFC Top 200 Fund

HDFC Core and Satellite fund

HDFC Index Fund – Sensex Plan

HDFC Index Fund – Sensex Plus Plan.

HDFC Balanced Fund

HDFC Long Term Advantage Fund (ELSS)

HDFC Long Term Equity Fund

HDFC Infrastructure Fund

HDFC Capital Builder Fund

HDFC Premier Multi -Cap

HDFC Index Fund – Nifty Plan

HDFC Arbitrage Fund

HDFC Equity Fund

HDFC Prudence Fund

HDFC Tax Saver (ELSS)

HDFC Mid-Cap Opportunities Fund

CHILDREN’S GIFT FUND:

HDFC Children's Gift Fund -Investment Plan

HDFC Children's Gift Fund - Savings

Plan

DEBIT\ INCOME FUND:

HDFC MF Monthly Income Plan short term plan

HDFC Multiple Yield Fund

HDFC Income Fund

HDFC Short Term Plan

HDFC Gilt Fund Short Term Plan

HDFC floating Rate Income Fund Short term plan

HDFC Cash Management Fund Saving Plus plan

HDFC MF Monthly Income Plan Long Term

HDFC Multiple Yield Fund plan 2005

HDFC High Interest Fund

HDFC High Interest Fund Short term

HDFC Gilt Fund Long Term

HDFC Floating Rate Income Fund Long term

LIQUID FUND:

HDFC Liquid Fund

HDFC Liquid Fund Premium Plan

HDFC Liquid Fund Premium Plan Plus

HDFC Cash Management Fund – Call

HDFC Cash Management Fund – Saving plan.

1.3 Introduction to Topic:

CONCEPT OF MUTUAL FUND:

A mutual fund is a common pool of money into which investors place their contributions that
are to be invested in accordance with a stated objective. The ownership of the fund is thus joint
or “mutual”; the fund belongs to all investors. A single investor’s ownership of the fund is in the
same proportion as the amount of the contribution made by him or her bears to the total
amount of the fund.

Mutual Funds are trusts, which accept savings from investors and invest the same in diversified
financial instruments in terms of objectives set out in the trusts deed with the view to reduce
the risk and maximize the income and capital appreciation for distribution for the
members. A Mutual Fund is a corporation and the fund manager’s interest is to professionally
manage the funds provided by the investors and provide a return on them after
deducting reasonable management fees.

The objective sought to be achieved by Mutual Fund is to provide an opportunity for lower
income groups to acquire without much difficulty financial assets. They cater mainly to the
needs of the individual investor whose means are small and to manage investors portfolio in a
manner that provides a regular income, growth, safety, liquidity and diversification
opportunities. Savings of small (or sometimes big) investors are pooled tog

DEFINITION:

“Mutual funds are collective savings and investment vehicles where ether to invest for their
mutual benefit and returns distributed proportionately”.

“A mutual fund is an investment that pools your money with the money of an unlimited
number of other investors. In return, you and the other investors each own shares of the fund.
The fund's assets are invested according to an investment objective into the fund's portfolio of
investments. Aggressive growth funds seek long-term capital growth by investing primarily in
stocks of fast-growing smaller companies or market segments. Aggressive growth funds are also
called capital appreciation funds”.

Why Select Mutual Fund?

The risk return trade-off indicates that if investor is willing to take higher risk then
correspondingly he can expect higher returns and vise versa if he pertains to lower risk
instruments, which would be satisfied by lower returns. For example, if an investors opt for
bank FD, which provide moderate return with minimal risk. But as he moves ahead to invest in
capital protected funds and the profit-bonds that give out more return which is slightly higher
as compared to the bank deposits but the risk involved also increases in the same proportion.

Thus investors choose mutual funds as their primary means of investing, as Mutual funds
provide professional management, diversification, convenience and liquidity. That doesn’t
mean mutual fund investments risk free.

This is because the money that is pooled in are not invested only in debts funds which are less
riskier but are also invested in the stock markets which involves a higher risk but can expect
higher returns. Hedge fund involves a very high risk since it is mostly traded in the derivatives
market which is considered very volatile

ADVANTAGES OF MUTUAL FUNDS:

If mutual funds are emerging as the favourite investment vehicle, it is because of the many
advantages they have over other forms and the avenues of investing, particularly for the
investor who has limited resources available in terms of capital and the ability to carry out
detailed research and market monitoring. The following are the major advantages offered by
mutual funds to all investors:

1. Portfolio Diversification

2. Professional Management

3. Reduction/Diversification of Risk

4. Reduction of Transaction Costs

5. Liquidity

6. Convenience and Flexibility

7. Tax Benefits

8. Choice of Schemes
9. Well Regulated

10. Transparency

DISADVANTAGES OF INVESTING THROUGH MUTUAL FUNDS:

1. No Control over Costs

2. No Tailor-Made Portfolio

3. Managing a Portfolio of Funds

4. The Wisdom of Professional Management

5. No Control

6. Dilution

7. Buried Costs

Types of Mutual Fund Scheme -:

1. Open-Ended Fund/ Scheme

2. Close-Ended Fund/ Scheme

3. Sector Specific Funds/Schemes

4. Tax Saving Schemes

 CHAPTER 2
NEED & OBJECTIVE

2.1 Need of 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.
2.2 Objective of the study:
1. Explore the recent developments in the mutual funds in India.

2. To discuss about the market trends of mutual funds investment.

3.
 CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Problem:
In a competitive situation with multiple mutual funds operating in Indian market , it is
necessary to know about the performance of different mutual fund as the performance of
mutual fund decides about the future of Mutual Fund Company. In this study my focus is upon
performance of investors regarding RELAINCE MUTUAL FUND and HDFC MUTUAL FUND. This is
my problem to be studied for research.

3.2 Research Design:

3.3 Sampling:
Sampling is a procedure that uses a small number of units of a given population as a basis for
drawing conclusions about the whole population. Sampling is necessary because it would be
practically impossible to conduct a research to measure characteristics of all elements of a
population. Samples are also needed in cases where measurement involves destruction of the unit
measured. The two major sampling methods are probability and non-probability sampling. The
non-probability sampling techniques includes convenience sampling, judgment sampling,
quota sampling and snowball sampling. On the other hand probability sampling methods are
random sampling, systematic sampling, stratified sampling and cluster sampling.

Sample size:

It represents the how many candidates you’ve chosen to be filled up your questionnaire or
candidates upon whom you can study. It had chosen sample of 100 candidates.
3.4 Data Collection:
Primary Data sources:

 I have used questionnaire as primary source for collecting data for my study.

Secondary Data sources:

 Website of HDFC MUTUAL FUND and RELAINCE MUTUAL FUND.

 Other website and journals.

3.5 Limitation of the Study:

There are some limitation of my study, those are as Following:

Sample limitation: Which sample is taken by me is very small in size to compare mutual funds
of two companies.

Reliability: The data collected by me is not much reliable because many investors chosen by me
have interest in HDFC.

Parameters: All the parameters have not taken.

Time Limitation: I had the shortage of time because of that I was not able to do my study in a
good manner.

Awareness: Investors chosen for study are fully aware of all the terms and condition related to
mutual funds. So, it is very difficult to construct right information from them.
 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

CHAPTER 5
FINDING
 CHAPTER 6
CONCULSIONS AND SUGGESTIONS
6.1 Conclusion:
6.2 Suggestions:
REFERENCE:
Website:

www.reliancemutual.com

www.amfindia.com

www.mutualfundsindia.com

www.hdfc.com
Search Engine:

www.google.com

QUESTIONNAIRE

1. NAME: ..............................................................

2. Address: ...............................................................

3. YOUR OCCUPATION?
 Ans: ......................

4. What’s your educational qualification?

Ans: .........

5. GENDER:
A.MALE B. FEMALE

6. AGE:
A.18 to 25 B. 26 to 33
C. 34 to 50 D. 51 and Above

7. Do you invest in mutual funds?

A.YES B. NO

8. With which company do you have Invest in mutual funds?

A. HDFC B.LIC
C. RELIANCE D. OTHERS

9. What is your income (yearly based)?

A. 1 LAKH C. 4-5 LAKH
B. 2 - 4 LAKH D. More than 5 LAKH

10. From where you come to know about this company’s mutual funds schemes?
A. Family member and relatives
B. Friends and peers
C. Company employees
D. Others

11. What is the duration of your investment?

A. 0 – 1 year B. 1 – 2 years
 C. 2 -4 years D. more than 5 years

12. What is your risk profile?

A. Innovator
B. Moderator
C. Risk adverse

13. Are you satisfied with the behaviour of staff?

A.YES B.NO

14. What you say which provides better returns?

A. HDFC B. RELIANCE

15. Would you like to exchange your investment with one another between HDFC &
RELIANCE?
A. YES B. NO