A PROJECT SYNOPSIS

ON
COMPARATIVE ANALYSIS OF MUTUAL FUNDS
AT
KOTAK MAHINDRA BANK LIMITED
Submitted by:
NAME: PINJERLA ROSHINI
ROLL NO: 1407-20-672----

Project synopsis submitted in partial fulfillment for the award of

the Degree of

MASTER’S DEGREE IN BUSINESS MANAGEMENT

DEPARTMENT OF BUSINESS MANAGEMENT

DAVID MEMORIAL INSTITUTE OF MANAGEMENT
(AFFILIATED TO OSMANIA UNIVERSITY)
Lalapet Road, Tarnaka, Hyderabad, Telangana.
BATCH (2020-22)
 1. ABSTRACT
A Mutual Fund is a trust that pools the savings of a number of investors who allocate a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures, government and other securities. The income earned
through investments and the capital appreciation realised 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,
Multidimensional professionally managed basket of securities at a relatively low cost. The
large amount of money collected by mutual funds from 2004 onwards indicates that they
have emerged as an important savings vehicle of investors and with their war chests of
money. they also became significant institutional investors in the capital market. The
accelerated growth of mutual funds highlights a need for Comparative Analysis of Mutual
Fund and Traditional Investment.
2. INTRODUCTION
Mutual fund indicates the fund where in numerous investors come together to invest in
various schemes of mutual fund. Mutual funds are dynamic institution, which plays a crucial
role in an economy by mobilizing savings and investing them in the capital market, thus
establishing a link between savings and the capital market. A mutual fund is an institution that
invests the pooled funds of public to create a diversified portfolio of securities. Pooling is the
key to mutual fund investing. Each mutual fund has a specific investment objective and tries
to meet that objective through active portfolio management. Mutual fund as an investment
company combines or collects money of its shareholders and invests those funds in variety of
stocks, bonds, and money market instruments. The latter include securities, commercial
papers, certificates of deposits, etc.
Mutual funds provide the investor with professional management of funds and diversification
of investment. Investors who invest in mutual funds are provided with units to participate in
stock markets. These units are investment vehicle that provide a means of participation in the
stock market for people who neither have time nor the money nor perhaps the expertise to
undertake the direct investment in equities. On the other hand they also provide a route into
specialist markets where direct investment often demands both more time and more
knowledge than an investor may possess. The price of units in any mutual fund is governed by
the value of underlying securities. The value of an investor’s holding in a unit can therefore,
like an investment in share, can go down as well as up. Hence it is said that mutual funds are
subjected to market risk. Mutual fund cannot guarantee a fixed rate of return. If the particular
scheme is performing well then more return can be expected.
It also depends on the fund manager expertise knowledge. It is also seen that people invest in
particular funds depending on who is the fund manager. A Mutual Fund is a trust that pools
the savings of a number of investors who share a common financial goal. The money thus
collected is invested by the fund manager in different types of securities depending upon the
objective of the scheme.
Thus a mutual fund is the most suitable investment for the common person as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. A collected corpus can be used to procure a diversified portfolio indicating
greater returns has also create Economies of scale through cost reduction. This principle has
been effective worldwide as more and more investors are going the mutual fund way. This
portfolio diversification ensures risk minimization. The interest of the investors is protected
by the SEBI, which acts as a watchdog. Mutual funds are governed by SEBI (Mutual Funds)
regulations, 1996.
3. NEED AND IMPORTANCE THE STUDY
 The need of study arises for learning the variables available that distinguish the
mutual fund of two companies.
 To know the risk & return associated with mutual fund.
 To chose best company for mutual investment between KOTAK MAHINDRA&
INDIABULLS.
 To project mutual fund as the ‘productive avenue for investing activities.
4. LITERATURE REVIEW
Dr. Sandeep Bansal, Deepak Garg and Sanjeev K Saini (2015), have studied Impact of
Sharpe Ratio & Treynor’s Ratio on Selected Mutual Fund Schemes. This paper examines the
performance of selected mutual fund schemes, that the risk profile of the aggregate mutual
fund universe can be accurately compared by a simple market index that offers comparative
monthly liquidity, returns, systematic & unsystematic risk and complete fund analysis by
using the special reference of Sharpe ratio and Treynor’s ratio.
Dr. K. Veeraiah and Dr. A. Kishore Kumar (Jan 2014), conducted a research on Comparative
Performance Analysis of Select Indian Mutual Fund Schemes. This study analyzes the
performance of Indian owned mutual funds and compares their performance. The
performance of these funds was analyzed using a five year NAVs and portfolio allocation.
Findings of the study reveals that, mutual funds out perform naïve investment. Mutual funds
as a medium-to-long term investment option are preferred as a suitable investment option by
investors.
Dr. Yogesh Kumar Mehta (Feb 2016), has studied Emerging Scenario of Mutual Funds in
India: An Analytical Study of Tax Funds. The present study is based on selected equity funds
of public sector and private sector mutual fund. Corporate and Institutions who form only
1.16% of the total number of investors accounts in the MFs industry, contribute a sizeable
amount of Rs. 2,87,108.01 crore which is 56.55% of the total net assets in the MF industry. It
is also found that MFs did not prefer debt segment.
Dr Surender Kumar Gupta and Dr. Sandeep Bansal (Jul 2016), have done a Comparative
Study on Debt Scheme of Mutual Fund of INDIABULLS and Birla Sunlife. This study
provides an overview of the performance of debt scheme of mutual fund of INDIABULLS,
and Birla Sunlife with the help of Sharpe Index after calculating Net Asset Values and
Standard Deviation.
This study reveals that returns on Debt Schemes are close to Benchmark return (Crisil
Composite Debt Fund Index: 4.34%) and Risk Free Return: 6% (average adjusted for last
five year). Prof. V. Vanaja and Dr. R. Karrupasamy (2016), have done a Study on the
Performance of select Private Sector Balanced Category Mutual Fund Schemes in India. This
study of performance evaluation would help the investors to choose the best schemes
available and will also help the AUM’s in better portfolio construction and can rectify the
problems of underperforming schemes. The objective of the study is to evaluate the
performance of select Private sector balanced schemes on the basis of returns and
comparison with their bench in the small towns and sub-urban areas. But marketing the
mutual funds in these areas requires the positioning of the products in the minds of the
investors in a different way. The product has to be acceptable to the investors, it should be
affordable to the investors, it should be made available to them and at the same time the
investors should be aware of it. The present paper deals with all these issues. It measures the
degree of influence on acceptability, affordability, availability and awareness among the
small town and sub-urban investors on their investment decisions. Prof.

5. OBJECTIVES OF THE STUDY

Research refers to search for knowledge. One can also define research as a scientific and
systematic search for pertinent information on a specific topic. It is an art of scientific
investigation.
6. COMPANY PROFILE
Kotak Mahindra Bank is the fourth largest Indian private sector bank by market
capitalization, headquartered in Mumbai, Maharashtra.
Since the inception of the erstwhile Kotak Mahindra Finance Limited in 2085, it has been a
steady and confident journey leading to growth and success. The milestones of the group
growth story are listed below year wise.
Kotak Mahindra Bank Ltd
 Kotak Mahindra Bank Ltd is a one stop shop for all banking needs. The bank offers
personal finance solutions of every kind from savings accounts to credit cards, distribution of
mutual funds to life insurance products. Kotak Mahindra Bank offers transaction banking,
operates lending verticals, manages IPOs and provides working capital loans. Kotak has one
of the largest and most respected Wealth Management teams in India, providing the widest
range of solutions to high net worth individuals, entrepreneurs, business families and
employed professionals.
For more information, please visit the Kotak Mahindra Bank website
www.kotak.com/bank/personal-banking/
Kotak Mahindra Old Mutual Life Insurance Ltd
 Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between
Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. A Company that combines its
international strengths and local advantages to offer its customers a wide range of innovative
life insurance products, helping them take important financial decisions at every stage in life
and stay financially independent. The company covers over 3 million lives and is one of the
fastest growing insurance companies in India. www.kotaklifeinsurance.com
Kotak Securities Ltd
 Kotak Securities is one of the largest broking houses in India with a wide
geographical reach. Kotak Securities operations include stock broking and distribution of
various financial products including private and secondary placement of debt, equity and
mutual funds.
Kotak Securities operate in five main areas of business:
o Stock Broking (retail and institutional)
o Depository Services
o Portfolio Management Services
o Distribution of Mutual Funds
INDUSTRY PROFILE
A bank is a financial institution that accepts deposits and channels those deposits into
lending activities. Banks primarily provide financial services to customers while enriching
investors. Government restrictions on financial activities by banks vary over time and
location. Banks are important players in financial markets and offer services such as
investment funds and loans. In some countries such as Germany, banks have historically
owned major stakes in industrial corporations while in other countries such as the United
States banks are prohibited from owning non-financial companies. In Japan, banks are
usually the nexus of a cross-share holding entity known as the keiretsu. In France,
bancassurance is prevalent, as most banks offer insurance services (and now real estate
services) to their clients.
Introduction
India’s banking sector is constantly growing. Since the turn of the century, there has been a
noticeable upsurge in transactions through ATMs, and also internet and mobile banking.
Following the passing of the Banking Laws (Amendment) Bill by the Indian Parliament in
2017, the landscape of the banking industry began to change. The bill allows the Reserve
Bank of India (RBI) to make final guidelines on issuing new licenses, which could lead to a
bigger number of banks in the country. Some banks have already received licences from the
government, and the RBI's new norms will provide incentives to banks to spot bad loans and
take requisite action to keep rogue borrowers in check.
Over the next decade, the banking sector is projected to create up to two million new jobs,
driven by the efforts of the RBI and the Government of India to integrate financial services
into rural areas. Also, the traditional way of operations will slowly give way to modern
technology.
Market size
Total banking assets in India touched US$ 1.8 trillion in FY18 and are anticipated to cross
US$ 28.5 trillion in FY25.
Bank deposits have grown at a compound annual growth rate (CAGR) of 21.2 per cent over
FY06–18. Total deposits in FY18 were US$ 1,274.3 billion.
Total banking sector credit is anticipated to grow at a CAGR of 19.1 per cent (in terms of
INR) to reach US$ 2.4 trillion by 2018.
7. RESEARCH METHODOLOGY
It is the way to systematically solve a problem. The methodology adopted in this study is
explained below:-
Research Design
Problem Defining:
In a competitive situation with multiple mutual funds operating in Indian market, it is
necessary to know about the performance of different mutual funds 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 KOTAK MAHINDRA&INDIABULLS. This is my
problem to be studied for research.
Literature Survey:
I have used newspapers, magazines related to business & finance & apart from websites.
Type of research:
The research is qualitative & descriptive in nature. Qualitative research is that talk about the
quality of the subject to be researched and Descriptive research is one that describes things as
exists in present.
Data collection Design:
Sources of data =
Primary Sources – I have used questionnaire as primary source for collecting data for my
study.
Secondary sources – I had collected my secondary data from websites & journals.
Sampling =
It represents whole population. It is the processes of choosing a sample from whole
population .I have choose a sample of high class & middle class people who have invested in
mutual funds as a sample.
Tools =
I have used some charts (Pie chart, column chart, cylinder chart, cone chart) and hypothesis
tests (chi-square one sample T- test etc.)
Sampling Size =
It represents that how many candidates you’ve chosen to be filled up your questionnaire or
candidates upon whom you can study. I had chosen sample of 100 candidates.
Sampling Techniques =
Deliberate &
Convenience Sampling.
Data Interpretation =
Data interpretation is that in which we analysis the whole collected data & tries to give it in
simple words to be understandable.
SCOPE OF THE STUDY
 To make people aware about concept of mutual fund.
 To provide information regarding advantages and demerits of mutual fund.
 To advice where to invest or not to invest.
 To provide information regarding types of mutual fund which is beneficial for whom.
8. LIMITATIONS
 Reliability: - The data collected by me is not much reliable because many
investors chosen by me have invested in KOTAK MAHINDRA.
 Parameters: - All the parameters have not been 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 not fully aware of all the terms and
conditions related to mutual fund .So, it is very difficult to construct right
information from them.
BIBLIOGRAPHY

 Books:-
C.R.Kothari, Research Methodology. New Delhi, Vikas Publishing
house Pvt.Ltd.2007.
HDFC and KOTAK MAHINDRABrochure .

 Websites:-
www.wiki.answers.com
www.scribd.com
www.KOTAK MAHINDRA.com
www.HDFC.com
www.google.com