INTRODUCTION

INTRODUCTION TO STUDY

Mutual funds have become a very popular way to take some of the risk out of investing in
individual stocks by investors. Mutual funds are a collection of stocks selected by mutual
fund seller and sold to investors as shares in a fund. There are several types of funds that you
can invest in. Some of the more popular types are technology funds, growth funds, security
funds, and income funds. Mutual funds are very popular because they allow you to invest in a
number of stocks therefore greatly reducing the risks associated with putting you money in an
individual stock.

A mutual fund is a type of financial vehicle made up of a pool of money collected from

many investors to invest in securities like stocks, bonds, money market instruments, and
other assets. Mutual funds are operated by professional money managers , who allocate the
fund's assets and attempt to produce capital gains or income for the fund's investors. A
mutual fund's portfolio is structured and maintained to match the investment objectives
stated in its prospectus.

Mutual funds give small or individual investors access to professionally managed portfolios
of equities, bonds, and other securities. Each shareholder, therefore, participates
proportionally in the gains or losses of the fund. Mutual funds invest in a vast number of
securities, and performance is usually tracked as the change in the total market cap of the
fund—derived by the aggregating performance of the underlying investments.

Mutual Funds now represents perhaps the most appropriate opportunity for most investors. It
is no wonder that birthplace of mutual funds - the U.S.A.- the fund industry has already
overtaken the banking industry. The Indian industry has already started opening up many of
the exciting investment opportunities to Indian investors. Though not insured like banks,
mutual funds generally provide more return than the current one to two percent obtainable
through banks while still being one of the safest ways to grow your money. There are an
endless variety of mutual fund investment choices depending on the degree of risk you feel
comfortable with.
NEED FOR THE STUDY

The main purpose of doing the project is to know about mutual fund and as functioning.
This helps to know in detail about mutual funds industry right from its inception stage,
growth and future prospects.

It also helps in understanding different schemes of mutual fund. Because my study

depends upon funds in India and their schemes like equity, income, balance as well as the
returns associated with those schemes.

The Project has been undertaken with the aim of Analysing the Mutual Funds. And also to
analyse how the operations has been undertaken to communicate with the client and how
services are offered by the company.

OBJECTIVES OF THE STUDY

 To give a brief idea about the benefits available from Mutual Funds’ investments.
 To give an idea of all the types of schemes available.
 To discuss about the market trends of Mutual Fund’s investments.
 To study some of the Mutual Fund schemes
 To Study some Mutual Fund companies and their funds.
 Explore the recent developments in the mutual funds in India.
 To give an idea about the regulations of mutual funds.
 To study the investments pattern by respondents in mutual funds
 To know the perception of investors for investing in Mutual Fund Schemes.
 To identify the risk& return involved in Equities and Mutual Funds.