A Project Report on

WEALTH CREATION THROUGH MUTUAL FUND

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

POST GRADUATION DIPLOMA IN MANAGEMENT

SUMBITTED BY

ARPITA ROY
PGDM 2019-21
PF1921-D38

UNDER THE GUIDANCE OF

Prof. Vijay Kanchan

N. L. DALMIA INSTITUTE OF MANAGEMENT STUDIES AND

RESEARCH, MIRA ROAD (EAST), MUMBAI, 400104.

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 Certificate
This is to certify that Miss Arpita Roy(PF1921-D38),student of N. L. Dalmia
Institute of Management Studies and Research, has successfully carried out project
on WEALTH CREATION THROUGH MUTUAL FUND, under my supervision
and guidance as partial fulfilment of the requirements of PGDM course, Batch 2019-
2021.

Project Guide

Prof. Vijay Kanchan

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 Acknowledgement
I take this opportunity to express my wholehearted gratitude to Prof. Vijay Kanchan for his
guidance and valuable feedbacks in the preparation of this project report and being a continuous
source of inspiration.

I would also like to thank the management and administration staff, the institute library staff and
the computer lab staff for their help as an integral part of the business. A special thanks to all my
teachers.

This acknowledgement is humble attempt at earnestly thanking all those who were directly or
indirectly involved in the completion of the project and were of immense help to me.

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 Index

Chapter No. Title Page No.

1 Introduction 5

2 Objectives 10

3 Literature Review 11

4 Research Methodology 12

5 Findings and Analysis 13

6 Corporate Governance 29

7 Conclusions and Recommendations 30

8 Bibliography 31

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 CHAPTER 1- INTRODUCTION
When we talk about safe investment routes, there are many sources of investment available in the
financial market, such as bank deposits, corporate bonds, bonds and gold, where there is low risk
and low yield. At the same time, if the investor is ready to take a high risk, he can invest in the
stock market, where the risk is high, but also the return is high. Recent trends show that, due to
lack of knowledge and study, average retail investors lose their money in the stock market. Thus,
in such a situation, investors must have a suitable person to drive, suggest and have experience in
investing in the stock market. Therefore, mutual fund is a good avenue that is available to investors.
It is a common set of money where investors invest their money for mutual benefit and
proportionally distributed returns. The ownership of the fund is joint, therefore, it is called the
Mutual fund.
The Mutual Fund Institute collects savings from investors and invests in a diversified portfolio,
which includes government and corporate bonds, capital market financial instruments, money
market instruments. MFs provide a way to invest in the capital market for those small investors
who do not have the knowledge & experience. The professional administrator of the fund will
work on their behalf and will return the money after deducting reasonable administrative expenses.

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 CONCEPT OF MF

A "Mutual Fund" is a trust that collects surplus money of investors in a single basket from a large
number of investors, to invest in different securities of markets with the investment objective. In
return, investors hold fund units and positive or negative returns will be distributed based on
investor participation. By investing in a MF, an investor can make use of professional fund
management services.

MUTUAL FUND OPERATION FLOW CHART:

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 ADVANTAGES OF THE MUTUAL FUNDS

Professional Management:
We can call a person a good investor only when that person knows how to invest his money? and
Where to invest? Many people have a big amount of Capital available with them. But when it
comes to investments, they do not have enough knowledge. In this case, the mutual fund is one of
the investment instruments managed by professionals. Mutual fund manager has skill, knowledge
and qualifications to manage the money and will guarantee a much better return than the average
investor.
Affordable portfolio diversification:
Mutual Funds never invest your money into single security or script they believe is diversification.
If any particular security or script does not perform well so another securities will help to cover
that loss that's the power of diversification. As the one of the well-known investor "Warren buffett"
always say "Do not put all your eggs in one basket"
Economies of Scale:
As we know Mutual fund pools the money of many investors which allows the mutual fund to
involve professional managers in managing investments. With small amounts of investment
individual investor cannot afford such professional management. Apart from this, due to a large
body of investments it lead to several other economies of scale. The expenditure related to
investment research are distributed among investors, including this, the greater volume of
transactions allows you to bargain well with bankers & brokers.
Liquidity of assets:
Investing in mutual funds allows investors to easily access exit facilities in an open ended scheme.
Where securities such as government bonds have a fixed maturity period which can also be
accessed through mutual fund.
Tax benefit:
Investor who wants to save his tax for such investor Mutual Fund gives option to invest in Equity
linked saving Schemes. The investment in ELSS qualifies for the tax deduction up to 1.5 lakh
Rupees in section 80C.
Regulatory comfort:
To protect the investor's money, there is a regulatory body formed by the government known as
SEBI. All mutual funds are registered with SEBI and have ordered strict controls and balances in
the structure of mutual funds and their actions.

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Convenient options:
The Mutual Fund allows investors to structure their investment based on their preference for
liquidity and tax position. Investors can easily withdraw part of the capital from the plan and invest
an additional amount in the scheme.

Systematic approach to investments:

Mutual funds allow investors to invest the amount on a regular basis through a systematic
investment plan or regularly withdraw the amount through a systematic pension plan or transfer
money between different types of systematic transfer plan. These approaches promote discipline,
which is useful for creating long-term wealth.
Transparency:
For mutual fund operators it is mandatory to regularly provide information on the plan to the
investor. Regarding where they invest their money, the percentage invested in each asset class and
the strategy and investment prospects of fund managers.

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 HOW THE MUTUAL FUND OWNER CAN EARN MONEY

a) Diversified payments: A fund can obtain interest in bonds and dividends in shares.

b) Distribution of capital gains: When the price of securities held in the mutual fund portfolio
increases, the fund manager will sell the securities and attempt to record the capital gain.
Subsequently, the funds transfer these profits to investors in a distribution.
c) Compound effect: The funds give you a choice of the profit generated by your investment that
you can withdraw or reinvest. If investor in a fund reinvest their profits, the investor will get more
units.

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 CHAPTER 2- OBJECTIVES
● To understand why there is a need of wealth creation
● To understand what is Mutual funds.
● To study various Types of Mutual funds.
● To Study why one should invest in MFs.
● To Study the current situation of the mutual fund industry.
● To analysis equity multi cap mutual fund schemes.
● To provide brief concept about the advantage accessible for investing in this.

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 CHAPTER 3 - LITRETURE REVIEW
Many studies have been conducted on the evaluation of the performance and investment model of
Mutual funds in India and other economies. The reviews of the following research and studies shed
light on various contributions made to determine investment models and the performance of
mutual funds.
Many studies have been conducted on the evaluation of the performance and investment model of
investment funds in India and other economies. The reviews of the following research and studies
shed light on various contributions made to determine investment models and the performance of
mutual funds. Many research papers have been published in various publications, which explain
what mutual funds are and their importance in the Indian economy, especially in the capital market.
These publications are on a variety of aspects ranging from regulation and control, investor
expectations, investor risk capacity, protection and growth and development of MF as an
investment tool. The study and evaluation of the performance of mutual funds has also been a very
important research topic.
Rao, D.N. & Rao, S.B, (2010) conducted a study on the investment models of the five groups of
investors in eight different categories of funds; studied the portfolios of investor groups and
identified the groups of dominant investors on the basis of size of the investment. Important results
are companies are the dominant investor group with a share of almost 48% of total investment
(AUM) in the sector and prefer non-equity funds offering high security and liquidity while the next
group of dominant investors is the Investor group dealer with 24% of the total investment.
Sarish, (2012) studied the benefits of investing in mutual funds, their limits and detailed studies
on various aspects of mutual funds. The purpose of this study is to suggest ways to combat the
challenges of mutual funds in India and the potential for economic development. This study was
based on secondary data to identify and analyse the challenges and opportunities for obtaining
money.
Bansal & Kumar (2012) tried to analyse the performance of selected MF planes based on risk-
return models and performance of MFs, including the performance of shares in various sectors of
the Indian economy. The analysis was performed on the basis of average yield, interception, beta,
Sharpe index, Treynor and Jensen Alpha ratio. The general analysis shows that the UTI schemes
performed better and others show below-average performance.

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 CHAPTER 4- RESEARCH METHODOLOGY

Mutual fund is impacting division now a days and it has some portion of augmentation to make
pay and giving return to the money related authority. The colossal advancement of basic Mutual
reserve in India has pulled in the thought of Indian investigators, individuals and institutional
budgetary authorities. The need of the Research work is to survey the execution of different
shared backings in India available in the picked banks and keep the normal hold theorists totally
aware of it. In this way, there is the need to inspect how capably the merited money of the
budgetary pros and uncommon resources of the economy are viably utilized.”

Secondary data is taken as a premise of investigation in this examination. Top three asset
management companies is chosen. Top three value multicap mutual fund schemes taken to
analyse for wealth creation. Day by day information about the end Net Asset Value of the chose
plans has gathered from the sites www.indiainfoline.com and www.nseindia.in,
moneycontrol.com and www.valueresearch.com.The most prevalent and generally followed
Nifty 500 is utilized as an intermediary for the market.

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 CHAPTER 5-FINDINGS AND ANALYSIS
ANALYSIS OF SECTOR
Macro-economic fundamental
It is estimated by IMF in their report, which is published in January 2018. India will grow 6.9% of
its GDP by Jan 2019, compared to 6.7% in China, thus becoming the fastest growing economy
among economies emerging economies. In the last few years, the speed of money creation has
been very fast. As per the World Bank, after taking 60 years to become an economy of $ 1 trillion,
India added the next trillion in just 7 years & crossed the $ 2 trillion milestone in 2014. The
expected growth in gross national income per capita in the next decade could push India into the
category of "high-income middle country". With a significant increase in per capita income, strong
inherent financial expansion will run investment in financial instruments including MFs. Strong
macroeconomic fundamentals could also facilitate the further development of capital markets &
increase the participation of retail investors.
Market Size
As per the EY's reports which is published in 2016. In India, the MFs AUM/GDP ratio is
significantly low at 7% (as of 2016), compared to 112% in Australia, 89% in the United States &
51% in the United Kingdom. MFs have not yet been able to obtain a important portion of the
investor portfolio, mainly due to a less of financial awareness among a significant part of the
population.
Demographic Conditions
“India has benefited from favourable demographics. With over 50% of the population under the
age of 25 years, India's dependency ratio is falling which will be able to provide strong support for
long-term economic growth. By 2021, 64 percent of the total population of India will be in working
age group. Millennial is the largest as well as fastest growing adult segment in the world &
represents the biggest opportunity for the asset management industry because they are not only
growing in number but also accumulating resources at an impressive rate. Favourable
demographics, rising income levels and a thriving wealthy middle class will provide a solid
customer base for the MF industry.”
Government Initiatives
The government's constant efforts to revive development with several new initiatives such as
Digital India and Make in India have helped strengthen the appeal of India among foreign
investors.

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 ANALYSIS OF TYPES THE MUTUAL FUNDS SCHEMES

There are several MF schemes to meet needs such as return expectations, risk tolerance and
financial position, etc. Therefore, MF have a range of flavors. Being a set of securities, the choice
of shares in the Mutual Fund has become easy for investors. There are several mutual fund schemes
to choose from.

OPEN END FUNDS, CLOSED ENDED AND INTERVAL FUNDS

Open ended funds:

An open fund allows investor to subscribe to the mutual fund scheme at any time. There is no any
fixed deadline. Investors can easily sell and buy units at prices relative to Net Asset Value.
Liquidity is an important feature of open end funds.

Close ended funds:

A closed MF has a specific maturity phase that usually varies from three to fifteen years. The MF
is open for subscription only during a specific period. Investor can enter their money in the MF at
the time of the NFO & can then sell & buy the units of the plan on the stock exchanges where they
appear.

Interval funds:
The interval funds have combined characteristics of closed and open schemes. Fund units opened
for sale or redemption at pre-established intervals at prices relating to the net asset value or may
be traded on an exchange.

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 SELECTION PARAMETERS FOR THE MUTUAL FUND

Investment objective:
The first thing to consider before investing in a fund is to figure out if its purpose matches the
pattern and you have to choose schemes that meet your specific needs.
Capacity and risk capacity:
Those who cannot tolerate risk should resort to debt patterns, as they are much risky or not.
Aggressive investors can invest in equity schemes. Investors who are even more aggressive can
choose schemes that invest in specific sectors or sectors.
Fund management and track record of scheme:
Since you are giving your hard earned money to someone to administer it, it is very important to
manage it well. It is also important that the fund house you choose has a best reputation. Fund
must also be professional and maintain high transparency at work. Compare the performance of
the plan with the relevant benchmarks of the market and its competitors. Consider the performance
of a longer period, since it will give you the way the plan is executed under different market
conditions.
Cost factor:
“Although the Asset Management Company rate is regulated, it is necessary to check the fund's
expense ratio before investing. This is because the expenses which is required to maintain mutual
fund are deducted from your investments. A high incoming or outgoing charge will also have an
effect on your returns. A higher expense ratio can only be justified by exceptional returns. It is
very important in a debt fund, since you will eagerly eat some percentages of your modest returns.
There are many financial publications that list the best mutual fund schemes of the year. Naturally,
impatient investors will rush to buy the shares of the best players of the last year. This is a big
mistake. Keep in mind that, changing the market situation, it is rare that last year's best
performances repeat that ranking for the current year. Investors in mutual funds would do well to
consider the scheme prospectus offered by AMC, the fund manager and current market conditions.
Never trust the best players of the last year.”

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 ANALYSIS ON THE BASIS RATIO
For a mutual fund, it becomes more difficult when it involves investments in equity instruments
in general. There are several indices that mutual fund investors should consider before making
investments. This is not an infallible tool, but it can also be used in conjunction with other analyses.
Among the most commonly used ratios for measuring risk, there are 2 ratios.
1) Sharpe's ratio
2) Treynor's ratio

The following is the risk ratio

“1. Sharpe's performance index: This ratio explains whether the return of the fund is a result of
the excessive risk taken or due to smart investment decisions by the fund manager. This ratio is
developed by the Nobel laureate William F. Sharpe to measure the correct performance for the
risk. The Sharpe ratio is calculated by subtracting the risk-free rate, such as the Treasury bill rate.
The rate of returns of a portfolio & dividing the result by the standard deviation of portfolio returns.
Formula of the Sharpe relationship is:
= Rp - Rf / SD
Where,
Rp = Return on the portfolio
RF = risk-free rate
SD = Portfolio standard deviation
How to interpret it: it is measured by subtracting the risk free return from the mutual fund's return
& dividing the result by the SD of its return. The risk-free return in India is considered either the
bond rate or the 181-day Treasury bill rate. The higher the ratio, the better the risk adjusted
performance of the fund.
Keep in mind that a mutual fund may be get more returns than its peers, but it is usually a excellent
option only if it does not involve too much risk in doing so.”

2. Treynor Performance Index: The Treynor ratio is a measure of effectiveness that uses the
association between risk and annualized return. This ratio uses Beta of market risk rather than
standard deviation of total risk. A good performance efficiency is measured by a high ratio. Try to
evaluate how sound an investment has rewarded its investors at certain level of risk. Thisratio is
based on the beta, which evaluate the sensitivity of an investment to market actions, to measure

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risk. The basis underlying the Treynor ratio is that the systematic risk, the type of risk inherent in
the entire market represented by the beta, should be penalized because it can not be diversify.

The treynor report is calculated as:

Formula for the treynor ratio: Rp - Rf / B
Where,
Rp = return of the portfolio
RF = risk-free rate

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 ANALYSIS OF EQUTY MULTICAP FUND SCHEMES
HDFC EQUITY FUND

Fund objective & Strategy: The scheme aims to generate long term capital appreciation from
income the portfolio predominantly invested in equity & equity related instrument.
Risk Grade – High
Return Grade – Above average
Net Asset- Rs 23,357 crore as on 31st Jan 2020
Net asset Value- 645.56 as on 24th Feb 2020
Fund Manager- Prashant Jain

Risk Analysis:
Standard Deviation 16.09
Sharpe Ratio 0.32
Beta 1.10
Alpha -2.58
R-Squared 0.89

Portfolio Characteristics:
Total Stock
43
Avg Mktg Capital(Rs Cr)
1,30,348
Portfolio P/B ratio
1.72
Portfolio P/E ratio
13.81
3Y Earnings Growth
19.31

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SCHEME PERFORMANCE SINCE INCEPTION
SIP OF RS1000 AMOUNT MARKET VALUE CAGR%
INVESTED
Since Inception 2,42,000 51,53,537 25.25
10year 1,20,000 3,16,520 18.70
5year 60,000 99,063 20.77

HISTORY OF PAST 08 YEAR

2011 2012 2013 2014 2015 2016 2017 2018 2019

NAV (RS) 218.7 293. 304.6 448.4 444.6 476.9 652.6 629.6 645.5
4 1 6
TOTAL
RETURN 26.73 34.1 3.82 53.77 -5.90 7.26 36.86 -3.51 5.11
4
+/- SP BSE 500 12 11.0 -.30 0.94 -1.11 14.84 -5.54 2.11 1.44
TRI 3
+/- S&P BSE 24.54 11.7 -2.08 8.60 -5.16 23.88 -.06 5.31 -.031
SEXSEX 9
RANK (FUND 10/4 1/80 60/8 20/78 48/73 35/14 46/14 27/51 6/46
CATEGERY) 4 3 5 3
NET 5305 8353 9178 1055 10249 17295 15753 2009 23357
ASSETS(RS.CR 5 8
)

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TOP HOLDING COMPANIES
COMPANIES P/E YTD %ASSETS
INFOSYS 20.80 8.94 6.75
ICICI BANK 36.24 9.92 9.51
STATE BANK OF 24.82 0.61 9.63
INDIA
LARSEN & 17.85 2.86 8.84
TORBRO
RELIANCE 20.70 17.98 4.79
INDUSTRIES
HDFC BANK 25.03 6.08 4.66
NTPC 5.62 6.05 3.87

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 NIPPON INDIA GROWTH FUND

Fund objective & Strategy: The scheme aims at long term growth of capital through research
based investment approach. The funds will be invested in Equity and equity related instruments,
and there will be an exposure to debt and money market instruments also.
Risk Grade – High
Return Grade – Above average
Net Asset- Rs 7,270 crores as on 31st Jan 2020
Net asset Value- 1221.8221 as on 24th Feb 2020
Fund manager – Manish Gunwani

Risk Analysis:

Standard Deviation 14.98

Sharpe Ratio 0.43
Beta 1.03
Alpha 0.43
R-Squared 1.00

Portfolio Characteristics:

Avg Mktg Capital(Rs Cr) 19065

Portfolio P/B ratio 2.65

Portfolio P/E ratio 24.29

3Y Earnings Growth (%) 9.45

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SCHEME PERFORMANCE SINCE INCEPTION
SIP OF RS1000 AMOUNT MARKET VALUE CAGR%
INVESTED
Since Inception 2,33,000 58,35,346 28.09
10year 1,20,000 3,00,086 17.79
5 year 60,0000 1,02,091 22.05

HISTORY OF PAST 08 YEAR

2012 2013 2014 2015 2016 2017 2018 2019 2020

NAV (RS) 363. 501.0 488.6 756. 804. 833. 1201. 1070. 1221.8
5 4 8 8 1 5 5 2
TOTAL
RETURN -27.4 37.8 -2.47 54.8 6.35 3.51 44.22 -10.8 2.47
7
+/- SP BSE 500 5.85 -2.57 1.56 2.04 -2.37 -5.77 -5.68 1.63 4.07
TRI
+/- S&P BSE 16.3 -0.25 -2.76 12.2 -11.4 1.56 16.31 16.71 2.95
SEXSEX 7 8
RANK (FUND 20/4 37/58 39/48 20/4 50/7 44/7 9/21 7/42 6/24
CATEGERY) 4 2 1 9
NET 5735 5686. 4204. 5342 5431 5604 7059 6345 7270
ASSETS(RS.CR 2 8
)

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Top Holdings Company

Company P/E YTD % ASSETS

Varun Beverages 49.92 4.34 4.79
Aditya birla fashion 104.68 12.40 2.96
Oberoi Reality 31.81 9.31 1.66
AU Small Finance 52.46 5.08 3.49
Bank
VARDHAMAN 10.25 -2.39 2.36
TEXTTILES
RBL BANK 25.63 12.28 1.72
Cholamandalam 11.52 4.86 3.52
Financial Holdings

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 FRANKLIN PLUS PRIMA FUND
Fund objective & Strategy: This plan intends to produce long haul capital increase by
contributing expanded midcap stock portfolio. It will pre predominantly put resources into
organizations with the market capitalization falling between the most minimal and most elevated
market capitalization among the constituents of NIFTY 500 Index.

Risk Grade - HIGH

Return Grade - Average
Net Asset- Rs 11,105 crore as on 31st Jan 2020
Net asset Value- 586.46 As on 24th Feb 2020
Fund Manager- Anand Radhakrishanan since April 2007
R. Jankiraman since Feb 2011

Risk Analysis:
Standard Deviation 11.96
Sharpe Ratio 0.23
Beta 0.90
Alpha -3.33
R-Squared 1.00

Portfolio Characteristics:

Total Stock 57
Avg Mktg Capital(Rs Cr) 87109
Portfolio P/B ratio 2.37
Portfolio P/E ratio 22.66
3Y Earnings Growth 12.43

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SCHEME PERFORMANCE SINCE INCEPTION
SIP OF RS1000 AMOUNT MARKET VALUE CAGR%
INVESTED
Since Inception 2,43,000 44,85,986 24.27
10year 1,20,000 3,27,375 19.32
5 year 60,000 1,09,328 24.97

HISTORY OF PAST 08 YEAR

2012 2013 2014 2015 2016 2017 2018 2019 2020

NAV (RS) 192.5 252.3 266.3 417.6 435.8 457.6 597.7 571.6 586.4
6
TOTAL 16.42 31.04 5.55 56.76 4.38 4.98 30.63 -4.35 3.87
RETURN

+/- SP BSE 500 10.00 -2.16 0.62 17.86 3.93 0.17 -6.97 -2.55 0.20
TRI
+/- S&P BSE -7.93 2.05 8.22 5.50 -3.43 26.90 9.41 3.03 -1.55
SEXSEX
RANK (FUND 7/83 40/7 39/7 19/14 54/17 47/14 41/5 18/45 16/50
CATEGERY) 8 3 5 3 3 1
NET 1786 1938 1998 2058 3278 5991 9344 1183 11105
ASSETS(RS.CR 2
)

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TOP HOLDINGS COMPANY
COMPANY P/E YDR ASSETS%
HDFC BANK 25.03 6.08 8.17
INFOSYS 20.80 8.94 6.29
BHARTI AIRTEL 7.70 5.59
ICICIBANK 36.24 9.92 5.21
LARSEN & 17.85 -2.86 4.07
TOUBRO
AXIX BANK 42.95 18.70 4.47
MAHINDRA AND 29.41 -13.76 3.27
MAHINDRA

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 COMPARISON BETWEEN MUTUAL FUND AND OTHER
INVESTMENT
Equity versus mutual funds
a) Investments in shares and MFs are subjected to market risk. If an investor has invested in an
equity and if it is not traded on the stock exchange, it can create problems to get value from it. But
at the same time, if the investment in an open MF eliminates the risk of not being able to sell the
investment in the market. There is still an indirect risk because the mutual fund system must make
its investments to pay investors.
b) The mutual fund offers great diversification because it never invests in individual stock. Because
of that if one stock in not performing well than other stocks might cover that loss. But at the same
time, diversification can also become a cause of reduced benefits, for example if you have only
one share and you get twice what is in a 100% profit position and if a mutual fund has 50 shares
in the portfolio and a double, it is up to 2 percent. On the other hand, if you have only one share
and that share falls by half, the portfolio will fall by 50%, but the investment fund will fall by 1%.
c) When investing in the stock market, it is necessary to perform a fundamental and technical
research that is not possible for the small investor due to his lack of knowledge. But if you invest
through mutual fund, professional managers will invest your money on behalf of you. In addition
with a small amount of money, you can start investing in mutual funds. The fund provides you
easy method for reinvesting dividends.
d) If you have sufficient knowledge of the securities market, you can build your portfolio in a
different way than any other offered MFs portfolio. The equity trader can also make profits by
making short transactions, but it is not possible in mutual funds.
Real estate versus mutual fund
Large capital is required to invest in real estate, and transaction costs are also high. For every small
investor, it is not possible to invest in real estate. Real estate property may not be possible to
liquidate quickly at a reasonable price, just as the concentration risk is high and it is not easy to
diversify. Real estate funds allow investors to take advantage of investment in real estate with a
small investment.

Gold versus mutual fund

When you have gold in physical form there is a risk of a theft that we can avoid by keeping the
gold in financial form. There are several advantages in keeping gold in financial form: the gold
based mutual funds and ETF mutual fund schemes are free from wealth tax. Mutual fund plans
offer investor nomination facility, which are not available in physical gold.

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Debentures / Bonds and Deposits of the Company versus Mutual Fund
The Debentures/Bonds represent borrowings of companies and public institution. Pay a fixed or
floating interest rate. This instrument is sometimes privately placed for institutional investors. The
liquidity of the obligations is low and the investors can catch them till their end. Investors should
be cautious of securities that provide high interest rates because they may have low credit quality.
Life insurance versus mutual fund
The life insurance is not an investment, we can call it risk protection. Therefore, it would be a
mistake to compare life insurance with any other financial product. Sometimes due to the inability
of the product market in India Life insurance instruments have offered a refund which is more than
a safe security, so they are actually paid to get insurance; those opportunities are not sustainable
in the long term.

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 CHAPTER 6 - CORPORATE GOVERNANCE
Corporate Governance envisages the attainment of the highest levels of transparency,
accountability and equity, in all facets of its operations and in all its interactions with its
stakeholders, including shareholders, employees, the government, lenders and the society. The
Company believes that all its operations and actions must serve the underlying goal of enhancing
long-term shareholder value.”
Corporate Governance is guided by the following core principles-
● “Transparency - To maintain highest standards of transparency in all aspects of interactions &
dealings;

● Disclosures - To ensure timely dissemination of correct information to the relevant stakeholders

& regulatory authorities;

● Empowerment and Accountability - To demonstrate highest levels of personal accountability

in order to ensure that employees consistently pursue excellence in everything they do;

● Compliances - To timely comply with all the applicable laws and regulations, in letter & spirit;

● Ethical Conduct - To conduct the affairs of the company in an ethical & just manner; and

● Stakeholders’ Interests - To promote the interests of all stakeholders including that of the unit
holders, shareholders, employees, vendors and the community at large.

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 CHAPTER-7 Conclusion & Recommendations

It is conclude that the investor should invest only by looking at the previous performance of mutual
fund plans. There should be adequate mathematical / exploratory studies to understand the market
and its effect on mutual fund companies. All the above schemes give better return than the other
investment avenues.
Investors are advised to check the risk factors of the various mutual fund plans before investing in
mutual fund schemes.
Mutual fund Investments are subject to long-term gains. If investors are looking for short-term
profits. Mutual funds may not be the right option for such investors, however, the investor must
opt for the fixed deposits of the banks. In mutual fund power of compounding is the added
advantage of all the Investor. In the case of mutual funds, the investor must invest to make regular
investments through SIP for at least 12 or 20 years to obtain wealth creation.

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 BIBLIOGRAPHY

● www.economictimes.indiatimes.com
● www.tradingcampus.in
● www.valueresearch.com
● www.indiainfoline.in
●

● NISM – Mutual Fund VA Book

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