A

SYNOPSIS ON

“MUTUAL FUNDS”

AT

“HDFC BANK LIMITED”

Submitted in partial fulfillment of the requirement for the award of the

MASTER OF BUSINESS ADMINISTRATION

BY

BOHINI SRI SAKSHITHA

H.T NO: 1422-17-672-063

Department of management studies

CSI INSTITUTE FOR P.G. STUDIES

(Affiliated to Osmania University)

East marredpally, secunderabad, telengana

2020-2022
1.1 INTRODUCTION
A mutual fund is just the connecting bridge or a financial intermediary that allows a
group of investors to pool their money together with a predetermined investment objective.
The mutual fund will have a fund manager who is responsible for investing the gathered
money into specific securities (stocks or bonds). When you invest in a mutual fund, you are
buying units or portions of the mutual fund and thus on investing becomes a shareholder or
unit holder of the fund.
Mutual funds are considered as one of the best available investments as compare to others
they are very cost efficient and also easy to invest in, thus by pooling money together in a
mutual fund, investors can purchase stocks or bonds with much lower trading costs than if
they tried to do it on their own. But the biggest advantage to mutual funds is diversification,
by minimizing risk & maximizing returns.
BENEFITS OF MUTUAL FUNDS
Investing in mutual has various benefits which makes it an ideal investment avenue.
Following are some of the primary benefits.
Professional investment management
One of the primary benefits of mutual funds is that an investor has access to professional
management. A good investment manager is certainly worth the fees you will pay. Good
mutual fund managers with an excellent research team can do a better job of monitoring the
companies they have chosen to invest in than you can, unless you have time to spend on
researching the companies you select for your portfolio. That is because Mutual funds hire
full-time, high-level investment professionals. Funds can afford to do so as they manage large
pools of money. The managers have real-time access to crucial market information and are
able to execute trades on the largest and most cost-effective scale. When you buy a mutual
fund, the primary asset you are buying is the manager, who will be controlling which assets
are chosen to meet the funds' stated investment objectives.
Diversification
A crucial element in investing is asset allocation. It plays a very big part in the success of any
portfolio. However, small investors do not have enough money to properly allocate their
assets. By pooling your funds with others, you can quickly benefit from greater
diversification. Mutual funds invest in a broad range of securities. This limits investment risk
by reducing the effect of a possible decline in the value of any one security.
1.2 NEED FOR THE STUDY
1. Mutual funds are dynamic financial intuitions which play crucial role in an economy by
mobilizing savings and investing them in the capital market.
2. The activities of mutual funds have both short and long term impact on the savings in the
capital market and the national economy.
3. Mutual funds, trust, assist the process of financial deepening & intermediation.
4. To banking at the same time they also compete with banks and other financial intuitions.
5. India is one of the few countries to day maintain a study growth rate is domestic savings.

1.3 SCOPE THE STUDY

1. The study is limited to the analysis made for a Growth scheme offered by four
AMC’s.
2. Each scheme is calculated their risk and return using different performance
measurement theories.
3. Because of the reason for such performance is immediately analyzed in the issue.
4. Graphs are used to reflect the portfolio risk and return.

Mutual funds are dynamic financial intuitions which play crucial role in an economy by
mobilizing savings and investing them in the capital market. The activities of mutual funds
have both short and long term impact on the savings in the capital market and the national
economy. Mutual funds, trust, assist the process of financial deepening & intermediation. To
banking at the same time they also compete with banks and other financial intuitions. India is
one of the few countries to day maintain a study growth rate is domestic savings.
1.4 OBJECTIVES OF THE STUDY
1. To show the wide range of investment options available in MF’s by explaining various
schemes offered by different AMC’s.
2. To help an investor to make a right choice of investment, while considering the inherent
risk factors.
3. To understand the recent trends in the MF world.
4. To understand the risk and return of the various schemes.
5. To find out the various problems faced by Indian mutual funds and possible solutions.

1.5 HYPOTHESIS
An important debate among stock market investors is whether the market is efficient - that is,
whether it reflects all the information made available to market participants at any given time.
The efficient market hypothesis (EMH) maintains that all stocks are perfectly priced accord-
ing to their inherent investment properties, the knowledge of which all market participants
possess equally. At first glance, it may be easy to see a number of deficiencies in the efficient
market theory, created in the 1970s by Eugene Fama. At the same time, however, it's impor-
tant to explore its relevancy in the modern investing environment.
Researchers have found that mutual funds do not seem to be able to earn greater net returns
(after sales expenses) than those that can be earned by investing randomly in a large group of
securities and holding them. Furthermore, these studies indicate, mutual funds are not even
able to earn gross returns (before sales expenses) superior to those of the native buy-and-hold
strategy. These results occur not only because of the difficulty in applying fundamental anal-
ysis in a consistently superior manner to a large number of securities in an efficient market
but also because of portfolio over diversification and its attendant problems- two of which are
high book-keeping and administrative costs to monitor the investments, and purchases of se-
curities with less favorable risk-return characteristics. Therefore, it would seem that the mu-
tual-fund studies lend some credence to the efficient-market hypothesis.
1.6 LIMITATIONS OF THE STUDY
The study is conducted in short period, due to which the study may not be detailed in all
aspects.
 The study is limited only to the analysis of different schemes and its suitability to differ-
ent investors according to their risk-taking ability.
 The study is based on secondary data available from monthly fact sheets, web sites, offer
documents, magazines and newspapers etc. as primary data was not accessible.
 The study is limited by the detailed study of various schemes.
 BIBILIOGRAPHY

I. TEXT BOOKS

Donald E Fischer
Security Analysis Portfolio Management
Ronald J Jordan

H.Sadhak Mutual Fund in India

II. WEB SITES

www.amfiindia.com

www.icici.com

www.bseindia.com

www.nseinda.com

www.bluechipinda.co.in

III. MAGAZINES

Business India

Business World

IV. NEWS PAPERS

Economic Times

Business Standard.