A

PROJECT REPORT
ON
“TO STUDY THE DIFFRENCE BETWEEN MUTUAL FUND AND
STOCK MARKET WITH SPECIAL REFRENCE TO KOTAK
MUTUAL FUND”

In partial fulfillment of the requirement of

MASTER OF BUSINESS ADMINISTRATION

IN RANI DURAGVATI VISHWAVIDYALAYA JABALPUR (M.P.)

Under the Guidance of Submitted By

DR. SHILPA AGRAWAL SHUBHAM SONDHIYA
Semester III
Enroll. – R1700633020017

SHRI RAM INSTITUTE OF TECHNOLOGY NEAR ITI MADHOTAL,

JABALPUR (M.P.)

2020-2022
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 SHRI RAM INSTITUTE OF TECHNOLOGY
JABALPUR (M.P.)

CERTIFICATE

This is to certify that Mr. SHUBHAM SONDHIYA MBA III Sem student of Shri
Ram Institute Of Technology entitled the project of “TO STUDY THE DIFFRENCE
BETWEEN MUTUAL FUND AND STOCK MARKET WITH SPECIAL REFRENCE
TO KOTAK MUTUAL FUND” Which is being submitted herewith for the practice of
Partial fulfillment of Masters in Business Administration RDVV Jabalpur for the year 2021.

It has been duly completed as record of Bonafide work in practice of Finance, SRIT
Jabalpur (M.P.)

Date Principal

Dr. Atul Dubey

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 SHRI RAM INSTITUTE OF TECHNOLOGY,
JABALPUR (M.P.)

CERTIFICATE

This is to certify that the Project Report entitled “TO STUDY THE DIFFRENCE
BETWEEN MUTUAL FUND AND STOCK MARKET WITH SPECIAL REFRENCE
TO KOTAK MUTUAL FUND” which is being submitted here with for the award of the
degree of Masters in Business Administration, RDVV Jabalpur by SHUBHAM
SONDHIYAMBA III Sem. under my supervision and guidance.

Date: (Guide)
Place : Jabalpur Dr. Shilpa Agrawal

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 SHRI RAM INSTITUTE OF TECHNOLOGY,
JABALPUR (M.P.)

DECLARATION

I SHUBHM SONDHIYA do hereby declare that the project entitled “TO STUDY
THE DIFFRENCE BETWEEN MUTUAL FUND AND STOCK MARKET WITH
SPECIAL REFRENCE TO KOTAK MUTUAL FUND” is an original work carried out by
me under the guidance of Dr. Shilpa Agrawal in partial fulfillment of Master of Business
Administration during academic year, All the date represented in this project is true and
correct to the best of my knowledge and belief. This work has not been submitted for any
other degree exam elsewhere.

Place : Jabalpur SHUBHAM SONDHIYA

Date :

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 ACKNOWLEDGEMENT

It gives me pleasure in expressing my heartfelt gratitude and indebtedness for the kind
blessing showered upon me by honorable Chairman Mr. R. Karsoliya Shri Ram Group of
Institutions of Jabalpur (M.P.)

I would like to express my gratitude towards Principal (SRIT), Jabalpur for their kind
cooperation and encouragement which help me to completing the project.

I am highly indebted to Dr. Shilpa Agrawal for his/her guidance and constant
supervision as well as for providing necessary information regarding the project and also for
support in completing the project.

I am thankful to all the faculty members of Shri Ram Institute of Technology for
their help and valuable suggestion.

Date. SHUBHAM SONDHIYA

Place. MBA III SEM

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 CONTENTS

S.NO. TITLE PAGE NO.

1. Executive Summary 7

2. Introduction 10

3. Company Profile 18

4. Conceptual Background 24

5. Objective of the Study 30

6. Research Methodology 32

7. Data Analysis & Interpretation 35

8. Finding 50

9. Suggestion 52

10. Conclusion 54

11. Bibliography 56

12. Annexure 58

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Page | 7
 EXECUTIVE SUMMARY
Investing is an essential part of wealth creation. It helps you beat inflation, fulfill your
financial goals, and stabilize your financial future. There are main types of investment :
Stocks, Bonds, Mutual Funds, Bank Deposit, Insurance, Gold etc.

Mutual funds are popular financial intermediaries and manage disposable income of
the investors. I completed my training from Kotak Mutual Fund AMC Ltd and studied &
analyzed various Kotak schemes in terms of returns and risk.

In this project “TO STUDY THE DIFFRENCE BETWEEN MUTUAL FUND AND
STOCK MARKET WITH SPECIAL REFRENCE TO KOTAK MUTUAL FUND”.

Shares and Mutual Funds are among the most popular investment instruments in the
financial market. But, before investing your hard-earned money, you must understand the
basic difference between them. Investing in shares means that you are investing directly in
equity markets, while Mutual Fund investments mean a professional fund manager is
investing for you in either equity funds or debt funds. Both forms of investments have their
distinct advantages and disadvantages. Read on to find the difference between both.

Shares represent a part of a company’s value. When a company wants its shares to be
traded in stock markets, it offers an Initial Public Offering (IPO). The total value of its shares
represents the total value of the company. This means that if you own shares of a company,
then you are a part-owner of the company.

Let us understand it from the company’s viewpoint. Suppose any company is looking
to raise funds for its business, it has two options:

 The company can borrow from a bank.

 The company offers an IPO, asking retail investors to invest in its shares, thus raising
funds for its business.

Mutual funds are an amalgamation of stocks and bonds, which are managed by
professional fund managers. Typically, fund managers are part of an Asset Management
Company (AMC) or an investment house. Mutual funds are of two types:

 Equity Mutual Funds: These consist of shares of a company.

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  Debt Mutual Funds: These comprise government bonds and securities.

A Mutual Fund is a diversified basket of shares from various companies. Mutual

Funds also invest in money market instruments, including participatory notes and treasury
bills. These funds are also invested in gold, real estate and commodities. In a nutshell, Mutual
Funds allow your money to be invested in a wide variety of asset classes.

Difference Between Shares and Mutual Funds:

You can refer to the chart given below to understand the fundamental differences
between shares and mutual funds:

Benefits of Investing in Stocks:

It has become easy to trade in shares in the digital age. You just need to open a Demat
Account along with a Trading Account, complete KYC formalities, and you are all set to
begin your share trading journey. You must remember that whenever you purchase shares, it
gets directly credited in your Demat Account, while Trading Account enables is the link
between your Demat Account and bank account.

Benefits of Investing in Mutual Funds:

The key highlight of Mutual Funds is the SIPs, which allows you to invest as per your
income and provide the benefit of rupee cost averaging.

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Page | 10
 INTRODUCTION

MUTUAL FUNDS

Mutual Funds are an amalgamation of stocks am bonds which are managed why
professional fund managers. Typically, fund managers are part of an Assets Management
Company (AMC) or an Investment House. Mutual Funds are of two types :

 Equity Mutual Fund: These consists of shares of a company

 Debt Mutual Funds: These comprise government bonds and securities

SHARES

Shares represent a part of a company`s value. When company wants its shares to be
traded in stock market, it offers an Initial Public 0ffering (IPO). The total value of its shares
represents the total value of the company. This means that if you own shares of a company,
you are a part owner of the company.

Let us understand it from the company`s viewpoint. Suppose any company looking to
raise funds for its business, it has two options; The company can borrow from bank,

The company offers an IPO, asking retail investors to invest in its shares, thus raising
funds for its business.

When investing as a novice

If you are a new investor with little or no experience in the stock markets, it is best to
start your equity investments through mutual funds as not only is the risk comparatively
lesser, you also have a fund manager managing your investment. You also have different
types of equity funds and you may choose the best plan to achieve your financial goals based
on risk tolerance.

For instance, you could invest in ETFs or index funds if you seek a passive
investment. It tracks and replicates a market index giving you returns that match this index.
Moreover, it has a lower expense ratio as compared to actively managed funds.

Tracking your investment

With an investment in mutual funds, you have the benefit of a fund manager who has
extensive expertise and experience in the field. Whether it is picking the stocks or monitoring

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them and making allocations, you do not have to worry about it. This service is not available
in the case of stock investments. You are responsible for picking and tracking your
investment.

Risk and Return

It is already established that equity diversified mutual funds have the advantage of
reducing the risk by diversifying a portfolio. On the other hand, stocks are vulnerable to the
fluctuations in the market, and the performance of one stock can’t compensate for another.
Moreover, you could consider investing in equity funds depending on your risk profile. For
example, you could invest in index funds if you seek a passive investment which offers
returns in line with a market index. It is less risky as compared to a sector fund that invests in
stocks of only one sector.

You may choose to invest in equity funds such as index funds, flexi-cap funds, sector
funds, ELSS or large-cap funds depending on your risk and return expectations.

Tax Gains

You don’t get any tax benefits if you invest in stocks. However, you are eligible for a
tax deduction up to a maximum of Rs 1.5 lakh per annum under Section 80C if you invest in
tax-saving mutual funds called equity linked saving schemes or ELSS. You may invest in
ELSS for the twin-benefits of inflation-beating return and tax saving.

The cost of Investing

You may invest in an equity diversified mutual fund that invests in around 50 stocks.
It protects your investment from the volatility of the stock market and also reduces the cost of
investing. For instance, you might have to spend a considerable amount of money to diversify
a stock portfolio across 50 stocks. However, you can do this easily if you invest in equity
diversified mutual funds at a much lower cost.

Moreover, you could invest just Rs 500 every month in the equity mutual fund
through the SIP and enjoy the rupee cost averaging benefit.

Diversification

A well-diversified portfolio should include at least 25 to 30 stocks, but that would be

a difficult task for a small investor. With equity diversified mutual funds, investors can also
get a diversified portfolio which is managed by a mutual fund manager. Buying units of the
fund allows you to invest in multiple stocks. Moreover, you could invest through the

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systematic investment plan or SIP where you put in small amounts regularly in an equity
mutual fund scheme.

Control on your investment

In the case of equity mutual funds, the fund manager decides on the stocks to be
included in the portfolio. You do not have control over which stocks are to be picked and for
what duration. As an investor, if you invest in equity mutual funds, you do not have the
option to exit from some stocks that are in your portfolio. However, an individual investing in
stocks has more control over the investment than an investor who invests in mutual funds as
he makes the buy and sell decisions himself.

Time

You don’t have to spend a lot of time researching individual stocks if you invest in an
equity fund. The fund manager takes care of your investment and the research team picks the
right stocks. However, you must check the important parameters such as portfolio of the
fund, AMC track record, assets under management and investment style of the fund manager
before investing your money in the equity fund.

Investment Horizon

You must invest in stocks and equity funds with a long term investment horizon.
However, you must be able to time your exit from stocks. You may follow the buy and hold
strategy with equity funds to achieve your long term financial goals.

STOCK AND MUTUAL FUND INVESTING

Stock market investing means investing directly in the stocks of the company. Here, you
are purchasing the companies listed on the stock exchange with an expectation to earn profits
when the price of that stock goes up.

On the other hand, a mutual fund is a collective investment that pools together the money
of a large number of investors to purchase a number of securities like stocks, FDs,
bonds, etc. A professional fund manager manages this fund. When you purchase a share in
the mutual fund, you have a small stake in all investments included in that fund. Hence, by
owning a mutual fund, the investor participates in gains or losses of the fund’s portfolio.

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1. Cost of investing

While investing in mutual funds, you have to pay different charges like an expense ratio, load
fee (entry load, exit load), etc. For the top mutual funds, the expense ratio can be as high as
2.5-3%.

On the other hand, if you invest in the stock market, you have to open your brokerage
account (which includes opening account charges), and you have to pay some annual
maintenance charges too. Further, there also different costs while transacting in stocks like
brokerage, STT, stamp duty, etc.

Nevertheless, if you compare the charges involved in stock and mutual fund investing, you
can find that the costs while investing in stocks are still lower. This is because managing a
mutual fund consists of a lot of expenses like management fee, the salary of the
managers/employees, administration charges, operational charges, etc. However, for
investing in stocks- the most significant burden is only the brokerage.

2. Volatility in investment

Direct investing in stocks has more volatility when compared to mutual fund investing. This
is because when you invest in shares- you generally purchase 10-15 stocks.

On the other hand, the mutual fund consists of a diversified portfolio with investment in
different securities like stocks, bonds, fixed deposits, etc. Even the equity-based mutual funds
invest in at least 50-100 stocks. Due to the broad diversification, the volatility in the mutual
funds is a lot less compared to that of shares.

3. Return potential

Stock market investing has a very high return potential. Most of the successful investors in
the world and India like Warren Buffett, RK Damani, Rakesh Jhunjhunwala, etc. have built
their wealth by investing directly in the stock market.

However, this is only one side of the story.

The complete fact is that the majority of people lose money in the stock market. Although the
return potential is high while investing in stocks, however, the risk is also higher.

On the other hand, most of the good ranked mutual funds have given decent consistent
returns to their shareholders. Although the returns are not as high as what many successful

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investors can make from stocks, however, this return is enough to build a massive wealth for
an average person for a secured future.

4. Tax saving

If you invest in ELSS (Equity linked saving scheme) under mutual funds, you can enjoy a tax
deduction up to Rs 1.5 lakhs in a year under the section 80c of the income tax act.

Another benefit of investing in the mutual fund is that you do not have to pay tax if the fund
sells any stock from its portfolio as long as you are holding the fund.

On the other hand, when you sell stock while investing directly in the stock market, you have
to pay a tax, no matter what’s the scenario. There are no tax benefits while investing in the
stock market. You have to pay a tax of 15% on short-term capital gains and a tax of 10%
(above a profit of Rs 1 lakh) on the long-term capital gains.

5. Monitoring

Investing in the stock market requires frequent monitoring. This is because the stock market
investing is a personal thing. Here, no one is going to do this for you and hence you have to
monitor your stocks yourself. Moreover, due to the high volatility of the share market, the
frequency of the monitoring should be higher. At least every quarter or half-yearly.

On the other hand, for the mutual fund -there are fund managers who take care of the
investments and make the buy/sell decision on your behalf. That’s why, when you invest in
mutual funds, you do not need to monitor your fund much frequently. Anyways, you should
watch your funds at least every year so that you can confirm that your fund’s performance is
in line with your goals.

6. SIP Investment

Mutual funds investment provides you with an option of a systematic investment plan.
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A Systematic Investment Plan refers to periodic investment. For example, the investor can
invest a fixed amount, say Rs 1,000 or 5,000, every month (or every quarter or six months) to
purchase some units of the fund. SIP helps in investing automation and it brings discipline to
the investment strategy.

On the other hand, there’s no option of SIP available in stock market investing.

7. Asset class restriction

While investing in the stock market, the only asset where you can spend is stocks of the
company.

On the other hand, the mutual fund gives you an opportunity to invest in a diversified
portfolio. Here, you can invest in a variety of asset classes. For example- debt mutual funds,
equity-based mutual funds, gold funds, hybrid funds, etc.

8. The time required for investing

The total time needed for directly investing in stock is a lot more compared to that of a
mutual fund. This is because a fund manager manages a mutual fund.

However, for direct investment in the stock market, you have to do your research. Here, you
have to find the best possible stock for investing yourself, and that requires a lot of studies,
time, and efforts.

9 Ease of investment

For investing in the stock market, you have to open your brokerage account with the help of a
stockbroker. Here, you need to start your Demat and trading account which can take as long
as a week to open.

On the other hand, you can start by investing in a mutual fund within 10 minutes. You do not
require any brokerage account to start investing in mutual funds. There are a number of free
platforms (like Groww or FundsIndia) available on the Internet where you can register within
a few minutes and start investing in mutual funds.

10. Time Horizon of investment

Generally, the investment time horizon in mutual funds for long-term like 5 to 7 years. Here,
you are not trading funds, but investing for the long-run to make money by capital
appreciation or regular income through dividend funds.

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On the contrary, if you invest in stocks- it can be a long-term or short term. You can even
keep the stock for a week and get good returns.

11. Control on investment

If you are investing directly in the stock market, you will have a lot of power and control.
Here, you can make critical decisions like- when to buy, when to sell, what to buy, what to
sell, etc.

On the other hand, while investing in the mutual fund, you do not have much control over
your investments. It’s your fund manager who makes the decisions like which securities to
buy, when to buy, when to sell etc. The highest control that you have is to find and invest in a
good mutual fund. However, once you have spent your money, everything will be taken care
of by the fund manager.

Further, mutual fund performance depends on the efficiency of the fund manager. If the fund
manager is efficient, you can get high returns. Otherwise, if the fund manager is not that
good, you might get fewer returns. In addition, there is always a possibility that the fund
manager may quit or join some other fund house.

Overall, here you have to be dependent on the fund manager. However, while investing in the
stock market, there is no dependency on anyone, and you can make your own decision to
buy/sell whichever stock you want.

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Company Profile

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 COMPANY PROFILE

KOTAK MUTUAL FUND

KOTAK MUTUAL FUND

Kotak Mutual Fund was founded in 1994 as a subsidiary of Kotak Mahindra Bank and is
proud to be the nation’s best broker* today.
Our numbers speak for ourselves:
17 Lakh customer accounts
Over 8 Lakh trades per day
Our national footprint is 1,539 branches, franchisees and satellite offices We cater to
customers from 393 cities across India

We are corporate members with the Bombay Stock Exchange(BSE) and the National Stock
Exchange(NSE). We are also a depository participant with National Securities Depository
Limited (NSDL) and Central Depository Services Limited (CDSL).
* Adjudged as the Best Broker by Finance Asia Country Awards, 2019

* The above numbers are as on December 31, 2019.

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Our Services

So what does investing with India’s largest stock broking firm mean for you as a customer?
Well, all your stock broking needs get managed under one roof. No more running from pillar
to post, to keep track of your finances!

Stock Broking services

Trade in the Stock Market, invest in IPOs, Mutual Funds or Currency Derivatives using
whichever mode that suits you best. Online, offline or even on our stock trading app, we offer
stock trading at your fingertips.

Portfolio Management services

Not sure of what stocks to buy or sell? Unable to keep all your investments in one place?
Don’t know how to make your money work for you? Our Portfolio Management Service with
expert advice is just the answer for your woes.

Dual benefit: Stock Brokers + Depository Participants

Kotak Mutual Fund is not just a stock broking firm. We are also participants with
depositories like the NSDL and the CSDL. That means you can now execute transactions
using our stock broking services and settle your trades using our depository services! 10.

Research Expertise

Benefit from in-depth stock market analysis thanks to our dedicated research division. We
publish various sector-specific research, company-specific research, macroeconomic studies,
fundamental and technical analysis of stocks that you can avail before investing your hard-
earned money.

Updated Market Data

Apart from research that we offer, you benefit from the street smart tips, up- to-the-minute
market information and inside news that our extensive sales teams deliver on a daily basis.

International Reach

Your financial interests go beyond India? Don’t worry, so do ours! Kotak Mutual Fund has a
well-entrenched presence in the Asia Pacific, European, Middle Eastern and American
markets. You can trust us with your money in any part of the globe.

We did it first

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Helping you invest your money is a job we take very seriously. Which is why we pioneered
some of these services. Here’s a quick look:

Mobile stock trading app to keep track of your investments on the go

Facility of Margin Finance for online stock trading

Investing in IPOs and Mutual Funds over the phone

SMS alerts before execution of depository transactions

Auto Invest - A systematic investing plan in Equities and Mutual funds Provision of margin
against securities automatically using shares in your demat account

Awards and Recognition

 Best Broker by Finance Asia Country Awards, 2019

 Gold at ACEF for Email marketing & successful use of technology

 Silver at ACEF for Data driven marketing & successful of technology

 Bronze at IAMAI, 2018 in the category “Best Omni Channel Campaign Management
and Marketing automation”

 Awarded “Early adopter of Analytics” at Machine learning conference 2018 for using
Analytics extensively in client management

 Award for Highest AUM in ETF category awarded by Kotak AMC

 Best Brokerage India 2018 – by Triple A Asset Country Awards in the Best Advisors
South Asia Category

 Best Retail IPO Bidding Member, 2018 by NSE

 NSDL Star Performer Award in category “Top Performer in New Accounts Opened –
(Non- Bank) – 1st Position 2015, 2016, 2017 and 2018

 Best Local Brokerage and Best Overall Country Research, 2016 by Asia Money
Brokers Poll

 Smart Order Routing has been awarded with Innovate 2015 by Banking Frontiers

 Adjudged as Best Broker India by Finance Asia Country awards, 2015, 2014.

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  Broker of the Year (India) - The Asian Banker's Financial Markets Business
Achievement Awards 2014

 Overall best Equity Broking House by BSE IPF - D&B Equity Broking Awards for
the year 2013

 Depository Participant of the year by BSE IPF - D&B Equity Broking Awards for the
year 2013

 Top Performer in New Accounts Opened (Non-Bank Category) - NSDL Star

Performers Award 2013

 Fastest growing Equity Broking House by BSE IPF - D&B Equity Broking Awards
for the year 2012

 The Best Equity House in India by Finance Asia for the year 2012

 *Best Broker in India by Finance Asia for 2012, 2010 & 2009

 UTI MF - CNBC TV18 Financial Advisor Awards - Best Performing Equity Broker
(National) for the year 2009

 Best Brokerage Firm in India by Asia money in 2009, 2008, 2007 & 2006

 Best Performing Equity Broker in India by CNBC Financial Advisor Awards for 2008

 Avaya Customer Responsiveness Awards for 2007 & 2006 in the Financial Services
Sector

 The Leading Equity House in India in Thomson Extol Surveys Awards for the year
2007

 Best Provider of Portfolio Management: Equities by Euromoney for 2007 & 2006

 Best Equities House In India by Euromoney Award for the year 2005

 Best Broker in India by Finance Asia for the year 2005

 Best Equity House in India by Finance Asia for the year 2004

Here’s a list of some of our recent marketing awards:

 Bronze for Acquisition campaign in the category of Best Use of Data for New
Business & for PPC (HCGBB) in the search category awarded by Campaign India’s
Digital Crest Awards, 2016

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  Bronze for Best Single Radio Commercial in Insurance, Banking & Financial services
at Golden Mikes Awards 2016 by Exchange4media

 Gold for Effective Use of Market research, Bronze for Effectiveness in Radio and
Bronze for Innovation in Cupshup campaign awarded to Agar Magar Campaign at
Asia Pacific Customer Engagement Award 2015 - 16

 Silver award Best SEO for Website at DMAI 2015

 Best SEO for Website at India Digital Media Awards (IDMA) 2015

Here’s our recent research award:

 Favourite Analyst Awards at Research bytes IC Awards 2015 in Research House,

Financials, Materials and Multi Sector categories

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Conceptual Background

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 CONCEPTUAL BACKGROUND
A KOTAK Mutual Fund is a trust that pools the savings of number of investors who share a
common financial goal. The money collected from investors is invested in capital market
instruments such as shares, debentures and other securities. Mutual fund issues units to the
investors in accordance with quantum of money invested by the investors. Investors of
mutual funds are known as unit holders. The income earned through these investments and
the capital appreciation realized is shared by its unit holders in proportion to the number of
units owned by them. Thus, 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 lower cost.
In India, there are many companies, both public and private that are engaged in the trading of
mutual funds. Wide varieties of Mutual Fund Schemes are available in the market. Investors
can invest their money in different types of mutual funds depending upon their individual
investment objectives.
Like different investment avenues, mutual funds also offer advantages and disadvantages,
which are important for any investor to consider and understand before they decide to invest
in mutual fund. Mutual fund is a trust that pools the savings of a number of investors who
share a common financial goal. This pool of money is invested in accordance with a stated
objective. The joint ownership of the fund is thus "Mutual", Le the find belongs to all
investors.
The stock market can feel like a vast, nebulous force that’s difficult to comprehend. Yet these
markets had humble beginnings in Western Europe in the 1600s. From then to now, here’s
what you need to understand about the history of the stock market.
A stock market is a physical or digital place where investors can buy and sell stock, or shares,
in publicly traded companies. The price of each share is driven by supply and demand.
The more people want to buy shares, the higher the price goes. Less demand, and the price of
a share drops.

ADVANTAGES OF KOTAK MUTUAL FUND

LIQUIDITY

Unless you opt close-ended mutual fund it is relatively easier to buy and exit a mutual fund
scheme. You can sell your open-ended equity mutual fund units when the stock market is
high and make a profit. Do keep an eye on the exit load and expense ratio of the mutual fund.

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DIVERSIFICATION

Equity mutual funds have their share of risks as their performance is based on the stock
market movements. Hence, the fund manager spreads your investment across stocks of
companies across various industries and different sectors called diversification. In this way,
when one asset class doesn’t perform, the other sectors can compensate to avoid loss for
investors.

EXPERT MANAGEMENT

A mutual fund is good for investors who don’t have the time or skills to do the research and
asset allocation. A fund manager takes care of it all and makes decisions on what to do with
your investment.

The fund manager and the team of researchers decide on the appropriate securities such as
equity, debt or a mix of both depending on the investment objectives of the fund. Moreover,
the fund manager also decides on how long to hold the securities.

Your fund manager’s reputation and track record in fund management should be an essential
criterion for you to choose a mutual fund. The expense ratio (which cannot be more than
2.25% annualized of the daily net assets as per SEBI) includes the fees of the fund manager.

LESS COST FOR BULK TRANSACTIONS

You must have noticed how pice drops with the purchase of increased volumes. For instance,
if a 100g toothpaste costs Rs 10, you might get a 500g pack for say, Rs 40.

The same logic applies to mutual fund units as well. If you buy multiple mutual fund units at
a time, the processing fees and other commission charges will be lesser as compared to
buying one mutual fund unit.

INVEST IN SMALLER DENOMINATIONS

By investing in smaller denominations of as low as Rs 500 per SIP instalment, you can
stagger your investments in mutual funds over some time. This reduces the average cost of
investment – you spread your investment across stock market lows and highs. Regular
(monthly or quarterly) investments, as opposed to lumpsum investments, give you the benefit
of rupee cost averaging.

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SUITS YOUR FINANCIAL GOALS

There are several types of mutual funds available in India catering to investors across all
walks of life. No matter what your income is, you must make it a habit to set aside some
amount (however small) towards investments. It is easy to find a mutual fund that matches
your income, time horizon, investment goals and risk appetite.

COST-EFFICIENCY

You can check the expense ratio of different mutual funds and choose the one with the lowest
expense ratio. The expense ratio is the fee for managing your mutual fund.

QUICK AND HASSLE-FREE PROCESS

You can start with one mutual fund and slowly diversify across funds to build your portfolio.
It is easier to choose from handpicked funds that match your investment objectives and risk
tolerance.

Tracking mutual funds will be a hassle-free process. The fund manager, with the help of his
team, will decide when, where and how to invest in securities according to the investment
objectives. In short, their job is to beat the benchmark index and deliver maximum returns to
investors, consistently.

TAX-EFFICIENCY

You can invest in tax-saving mutual fund called ELSS which qualifies for tax deduction up to
Rs 1.5 lakh per annum under Section 80C of the Income Tax Act, 1961. Though a 10% tax
on Long-term Capital Gains (LTCG) above Rs 1 lakh is applicable, they have consistently
delivered higher returns than other tax-saving instruments in recent years.

AUTOMATED PAYMENTS

It is common to delay SIPs or postpone investments due to some reason. You can opt for
paperless automation with your fund house or agent by submitting a SIP mandate, where you
instruct your bank account to automatically deduct SIP amounts when it’s due. Timely email
and SMS notifications make sure you stay on track with mutual fund investments.

SAFETY

There is a general notion that mutual funds are not as safe as bank products. This is a myth as
fund houses are strictly under the purview of statutory government bodies like SEBI
and AMFL. One can easily verify the credentials of the fund house and the asset manager

Page | 27
from SEBI. They also have an impartial grievance redressal platform that works in the
interest of investors.

SYSTEMATIC OR ONE TIME INVESTMENT

You can plan your mutual fund investment as per your budget and convenience. For instance,
starting a SIP (Systematic investment plan) on a monthly or quarterly basis in an equity fund
suits investors with less money. On the other hand, if you have a surplus amount, go for a
one-time lumpsum investment in debt funds.

Mutual Funds vs. Stocks: Which is Better Investment?

1) Professional Management

Leveraging the expertise and knowledge of a mutual fund expert to is one of the primary
reasons why individuals consider investing in mutual funds. Investment in shares without
prior experience or knowledge about the working of the financial markets can be quite
disastrous. It could even easily drain your capital. Hence, experts often advise those new to
the investing world to invest in mutual funds via a fund manager.

2) Save tax on mutual fund

When it comes to ELSS mutual funds, Section 80C of the Income Tax Act, 1961, offers tax
deduction on investments up to Rs1.5 lakh towards such schemes. Individuals and HUF can
use this deduction to reduce their tax liabilities. You can save up to Rs46,800 by investing in
ELSS mutual funds. This is one way you save tax on mutual fund investments.

3) Disciplined investment

Another major advantage of investing in mutual funds is financial discipline, which you get
to learn by investing through the SIP (Systematic Investment Plan). In an SIP, the investor is
required to invest a fixed amount periodically. This automated form of investing in a mutual
fund requires an individual to decide the quantum of payment and the frequency of the
investment at the start of the SIP investment tenure.

On the other hand, investing in stocks this way can be quite tricky as each transaction would
need to be timed and initiated by the investor himself.

4) Cost of Investing

Unlike stocks, which you can buy individually, actively managed mutual funds demand a
small fee to be paid to the fund manager(s). However, one often forgets the concept of

Page | 28
‘economies of scale’ that tips their weight in the favour of mutual funds. Active management
of funds surely requires extra capital from the investor’s pockets, but due to their large size,
mutual funds only ask a insignificant fraction of the brokerage charge from an individual
shareholder.

5) Investment Horizon

Mutual fund investments often require a tenure of 5-7 years or more to generate considerate
returns. This is because these investment vehicles have a long-term growth trajectory. On the
other hand, investing in stocks can fetch you quick and substantial returns if you choose the
right stocks and time the buying and selling part correctly.

Whether you decide to invest in mutual funds or stocks entirely depends on your knowledge
and expertise of the market and the amount of time and effort you are willing to spare.
Mutual funds can prove to be a great investment instrument if you are an amateur and aim for
steady returns. However, if you are a stock market guru with ample time on your hands,
investing in stocks is a better choice.

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Page | 30
 OBJECTIVE OF THE STUDY
1) To Study the Difference Between Kotak Mutual Fund and Stock Market.

2) To Benefit of Kotak Mutual Fund in Comparison of Stock Market.

3) To Give Feedbacks and Suggestions on the Basis of Findings

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Page | 32
 RESEARCH METHODOLOGY

INTRODUCTION
Research in common parlance refers to a search for knowledge. The advanced
learner’s dictionary of current English lays down the meaning of research as “a careful
investigation of enquiry specially through search for new facts in any branch of knowledge.”
The systematic approach concerning generalization and the formulation of a theory is
also research. The purpose of research is to discover answers to questions through the
application of scientific procedures.
RESEARCH DESIGN
“A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure.”
DESCRIPTIVE RESEARCH DESIGN
Descriptive research design studies are those studies, which are concerned with
describing the character of a group. The researcher makes a plan of the study his research
work. That will enable the researcher to save and resource such a plan of study or blue print
or study is called a research design.
Commonly used as directed bases of marketing decisions, these studies are well structured.
DATA COLLECTION
In order to information from the respondent survey method has been adopted. A neatly
constructed questionnaire was prepared to collect information from the respondents regarding
information about the mutual fund. It contains both open-ended and close-ended
questionnaire.
Primary Data.
Primary data is the firsthand data collected by the researcher directly it's the fresh data.
The sources of primary data from this study purpose are as follows :
• Observation
• Interviews
• Questionnaires
Secondary Data:
Secondary data is the already available information collected someone hence For their own
study purpose and it is the published sources of information. The secondary data sources
for this study purpose are:

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 • Text books
• Company broachers, documents & other related materials
• Websites
RESEARCH TOOLS
Questionnaire containing closed ended questions.
SAMPLE DESIGN:
Sample random sampling was the technique adopted for data collection survey for the
purpose of study.
Population
It covers the Clients and staff of Kotak Mutual Fund.
SAMPLE PROCEDURES
In this study convenient sampling method was adopted. From this department, the
respondents were selected on the basis of convenience.
Areas of Study
Kotak Mutual Fund, Jabalpur city.
CONTACT METHOD
Respondents were contacted personally over a call.
INTERVEIW SCHEDULE
The interview schedule has been used to collect the data. The interview schedule was
designed according to suitability of the candidate as per his/her convenience.
TABULATION
It is the arrangement of classified data in an orderly manner. This involves recording the
filled in interview schedule. These are of immense help to analysis.
PERIOD OF STUDY
The study was conducted for period of 45 days.
TOOLS USED FOR ANALYSIS
Simple analysis
It is simple analysis tool. It is based on the secondary data balance sheet and financial
statement of the company.

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Data Analysis & Interpretation

Page | 35
 DATA ANALYSIS & INTERPRETATION

1. In Which investment area do you invest?

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

1. KOTAK MUTUAL FUND 35 35%

2. OTHER INVESTEMT 55 55%

3. STOCK MARKET 10 10%

TOTAL 100 100%

10%

35%
kotak mutual fund
other investemt
stock market

55%

INTERPRETATION
Here, it is been found that 35% people are investing in Kodak mutual fund and
10% in stock market and 55% in other investing.

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 2. Why do you invests in Kotak mutual fund?

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

Low risk 30 30%
1.
Liquidity 14 14%
2.
Company reputation 12 12%
3.
High returns 44 44%
4

TOTAL 100 100%

INVESTS

17%

8% LOW RISK
7% LIQUIDITY
68% COMPANY REPUTATION
HIGH RETURNS

INTERPRETATION

Here, it is been found that most of the investors of Kotak Mutual Fund is 44% high
returns. 30% of people low risk, 14% liquidity and 12% of company reputation

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 3. Qualification of investors Kotak mutual fund and stock

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

1. GRADUATION/PG 65 65%

2. UNDER GRADUATION 20 20%

3. OTHERS 15 15%

TOTAL 100 100%

15%
GRADUATION/ PG
20% UNDER GRADUATION

65% OTHERS

INTERPRETATION

Out of 40 Mutual fund investors 65% of the in are graduate/Post Gra

Graduate, 20% our
under Graduate and 15% are others.

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 4. Occupation of the Investors KOTAL Mutual fund and stock market.

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

GOVERNMENT SEC. 25 25%
1.
PRIVATE SEC. 25 25%
2.
BUSINESS 35 35%
3.
OTHER 15 15%
4

TOTAL 100 100%

12%
GOVERNMENT SEC.
12%
PRIVATE SEC.

59% BUSINESS
17% OTHER

INTERPRETATION

In Occupation group out of investors, 25% Pvt. Employees, 25%govt. Employees,

35% businessman and 15% other..

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 5. Which Age group of investors in Kotak mutual fund and stock market.

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

20-30 25 25%
1.
30-40 35 35%
2.
40-50 45 45%
3.
50-60 15 15%
4
60-70 10 10%

TOTAL 100 100%

AGE GROUP

8%
19% 20-30
11%
30-40
40-50

27% 50-60
35%
60-70

INTERPETATION

In age group 20-30,is 25 investors 30-40, is 35 investors 40-50.

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 6. MODE OF INVESTMENT IN Kotak mutual Fund

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

SIP 40 40%
1.
ONE TIME INESTMENT 60 60%
2.

TOTAL 100 100%

MODE OF INVESTORS

SIP
40%

ONE TIME
60%
INVESTMENT

INTERPRETATION

Mode of investors is 60% investors to invest in SIP and 40% investors to invest in one
time investment.

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 7. KOTAK MUTUAL FUND FEES.

S.NO. PARTICULAR PERCENTAGE

1. Management fees 2.5%

2. Account fees 2%

3. Distribution and Service fess 2.5%

4 Entry Load & Exit Load 3%

Recurring Charge 1.75%

One Time Charge 5%

TOTAL 100%

charge and fees

16% 13%

16%

25%

19%
11%

account fees distribution and service fees

entry and exit load recurring charge
one time charge Management fees

INTERPETATION

Kotak mutual fund fees is management fees 2.5%, account fees 2% distribution and
service fees 2.5%. entry load and exit load 3% recurring charge 1.75% one time charge 5%.

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 8. CHARGE OF STOCK IN BUY AND SELL.

S.NO. PARTICULAR PERCENTAGE

Brokerage 1%
1.
Sebi Turnover Fees 0.2%
2.
Exchange Trans Charges 0.02%
3.
SERVICE TAX+(SBC & KKCSincl.) 0.2%
4

TOTAL 100%

CHARGE OF STOCK

22%
BROKERAGE

2% SEBI TURNOVER FEES

54% EXCHANGE TRANS CHARGE
22% SERVICE TAX + (SBC& KKCS incl)

INTERPRETATION

Charge of stock in buy and sell in brokerage 1% , SEBI turnover fees 0.2%, exchange
trans charges 0.02% and service tax 0.2% and 20/ rupees.

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 9. WHY DO YOU INVEST TO STOCK MARKET?

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

Potentially High Returns 50 50%
1.
Beats Effect of Inflation 30 30%
2.
Simple and Flexible 20 20%
3.

TOTAL 100 100%

STOCK

20% POTENTIALLY
HIGHRETURNS
BEATS EFFECT OF
50%
INFLATION
SIMPLE & FLEXIBLE
30%

INTERPRETATION

According to the analysis 20% are invest potentially high returns, 30% are invest
beats effect of inflation, 50% are invest simple & flexible.

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 10. WHAT TYPE OF COMPANY STOCK DO YOU BUY?

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

1. SMALL CAP COMPANY 25 25%

2. MIDCAP COMPANY 50 50%

3. LARGE CAP COMPANY 25 25%

TOTAL 100 100%

COMPANY STOCK

26%
32%
SMALL CAP
MIDCAP
LARGE CAP

42%

INTERPRETATION

According to the survey 32% are investment in small cap, 42% are investment in midcap and
26% are investment in large cap company.

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 11. IN WHAT WOULD YOU LIKE TO INVEST YOUR MONEY IN FROM
MUTUAL FUND AND STOCK?

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

KOTAK MUTUAL FUND 65 65%
1.
STOCK 35 35%
2.

TOTAL 100 100%

Column1

35%
KOTAK MUTUAL FUMD
STOCK
65%

INTERPRETATION

According to the survey 65% investors are invest to Kotak mutual fund and 35%
investors are invest to stock market.

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 12. HOW LONG WOULD YOU LIKE TO INVEST YOUR MONE IN MUTUAL
FUND?

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

1 TO 3 YEARS 20 20%
1.
4 TO 6 YEARS 35 35%
2.
7 TO 10 YEARS 55 55%
3.

TOTAL 100 100%

TIME

18%

1 TO 3 YEARS
50% TO 6 YEAR
7 TO 10 YEAR
32%

INTERPRETATION

According to the analysis 18% like 1 to 3 years, 32% are 4 to 6 years, 50% are 7 to 10
years like to hold your stock market investment.

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 13. WHICH MUTUAL FUND SCHEME DO YOU USED??

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

SMALLCAP 10 10%
1.
MIDCAP 20 20%
2.
LARGE CAP 30 30%
3.
MALTICAP 40 40%
4

TOTAL 100 100%

SCHEME

10%
SMALLCAP
40% 20%
MIDCAP
LARGE CAP
MALTICAP

30%

INTERPRETATION

According to the analysis 10% like small cap, 20% are mid cap, 30% are large cap
and 40% Multicap like to hold your Kotak mutual fund investment.

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 14. HOW LONG WOULD YO LIKE TO INVEST YOUR MONEY IN STOCK
MARKET?

S.NO. PARTICULAR RESPONDENTS PERCENTAGE

1 TO 4 YEARS 10% 10
1.
5 TO 9 YEARS 35% 35
2.
10 YEARS MORE 55% 55
3.

TOTAL 100 100%

stock

10%

1 TO 4 YEARS
5 TO 9 YEARS
55% 35%
10 YEARS MORE

INTERPRETATION

According to the analysis 10% like 1 to 4 years, 35% are 5 to 9 years, 55% more than
10 years like to hold your stock market investment.

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Findings

Page | 50
 FINDING
1) In the survey it was found 35% people are investing in Kodak mutual fund and 10%
in stock market and 55% in other investing.

2) Investor Investment to KMF because it is been found that most of the investors of
Kodak mutual fund is high returns. 30% of people low risk, 14% liquidity and 12% of
company reputation.

3) According to the survey 60 % investors invest to sip and 40% investors invest to one
time investment investors in invest in KMF because it high returns. Low risk,
liquidity and company reputation.

4) Investors in invest in stock market potentially high returns, beats effect of inflation
and simple and flexible.

5) Kotak mutual fund charge is high to comparison is stock.

6) According to the analysis investor is10% like 1 to 4 years, 35% are 5 to 9 years, 55%
more than 10 years like to hold your stock market investment.
7) 10% like small cap, 20% are mid cap, 30% are large cap and 40% Multicap like to
hold your Kotak mutual fund investment.
8) According to the analysis 18% like 1 to 3 years, 32% are 4 to 6 years, 50% are 7 to 10
years like to hold your stock market investment.
9) According to the analysis 20% are invest potentially high returns, 30% are invest
beats effect of inflation, 50% are invest simple & flexible.

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Page | 52
 SUGGESTION

1) Kotak mutual fund is a best choice is new investors, high return, low risk I also came
to know the facility offered by the stock market.

2) I came to know the mutual fund is one of the most important sources for investors to
investment money But charge is high comparison to stock BUY AND Sell.

3) Stock market is potentially high returns, beats effect of inflation simple and flexible
choice, but investors should have better knowledge.

4) It can be suggested that effective source of communication should be applying to

make the people aware of all facilities which they can avail.

5) It can be that company need to provide facilities to their valuable customers which
will attract more and more business.

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Page | 54
 CONCLUSION
Investment in mutual funds or shares depends on your knowledge and expertise in
stock markets. You can choose mutual funds if you want a slow and steady avenue for wealth
creation. But if you want higher returns, and are willing to trade with close attention to stock
market fundamentals, then you must choose investment in stocks.

Investment in mutual funds or shares depends on your knowledge and expertise in

stock markets. You can choose mutual funds if you want a slow and steady avenue for wealth
creation. But if you want higher returns, and are willing to trade with close attention to stock
market fundamentals, then you must choose investment in stocks. If you want to trade in
stocks, then do remember to choose a trusted financial partner who can provide you with
free online Demat Account, a single trading platform, and best stock recommendations.

Page | 55
Page | 56
 BIBLIOGRAPHY

Book
1) Investment Policy & Performance of Mutual Funds"
Author-Jayadev
Publisher-Kanishka Publishers & Distributors, New Delhi (1998).
2) "Working of Mutual Fund Organizations In India"
Author- Rao, Mohana P
Publisher-Kanishka Publishers & Distributors. New Delhi (1998).
3) "Mutual Funds: Data, Interpretation and Analysis"
Author-Sahadevan S. and Thiripalraju M
Publisher Prentice Hall of India Private Limited, New Delhi (1997)
4) "Research Methodology"
Author-C.R. Kothari
Publisher- New Age International Publishers.

Websites
1) www.moneycontrol.com
2) www.investonline.in
3) www.sofi.com

Factsheets:

1) Kotak Fund Factsheet

Page | 57
Questionnaire

Page | 58
 QUESTIONNAIRE

NAME-: ………………..............................................................................................................

1. In which investment area do you invest?

a) Kotak mutual fund
b) Stock market
c) Other
2. Why do you invests in Kodak mutual fund?
a) low risk
b) liquidity
c) company reputation
d) high returns
3. What is your qualification?
a) graduation / pg
b) under graduation
c) other
4. What is your occupation?
a) Government sec.
b) Private sec.
c) Business
d) Other
5. From what are age you investing?
a) 20-30
b) 30-40
c) 40-50
d) 50-60
6. Which mode of investment?
a) SIP
b) One time investment
7. What type of company stock do you buy?
a) Small cap
b) Mid cap
c) Large cap

Page | 59
8. Which mutual fund scheme do you use?
a) Small cap
b) Mid cap
c) Large cap
d) Multicap
9. In what would you like to invest your money in from mutual fund and stock?
a) Kotak mutual fund
b) Stock
10. How long would you like to invest your money in mutual fund?
a) 1 to 3 years
b) 4 t0 6 years
c) 7 to 10 years
11. How long would you like to invest your money in stock market?
a) 1 to 4 years
b) 5 to 9 years
c) 10 years mores

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