A PROJECT PROPOSAL ON

A STUDY ON ANALYSIS OF MUTUAL FUNDS WITH

REFERENCE TO EQUITY FUNDS

AT

ANGEL STOCK BROKING LTD.

Submitted by

K.SHIVANI
ROLL NO: 125121672243

Under the guidance of

________________

SYNOPSIS FOR PROJECT TO BE SUBMITTED FOR THE AWARD OF

THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

WESLEY POST GRADUATE COLLEGE

{Affiliated by Osmania University}

SECUNDARABAD, TELANGANA.

2021-2022

1
1.1. INTRODUCTION

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 then invested in
capital market instruments such as shares, debentures and other securities. 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 low cost. The flow chart below describes broadly the
working of mutual funds.

Mutual fund is a mechanism for pooling the resources by issuing units to the investors
and investing funds in securities in accordance with objectives as disclosed in offer document.

Investments in securities are spread across a wide cross-section of industries and sectors
and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in
the same direction in the same proportion at the same time. Mutual fund issues units to the

2
investors in accordance with quantum of money invested by them. Investors of mutual funds are
known as unit holders.

The investors in proportion to their investments share the profits or losses. The mutual
funds normally come out with a number of schemes with different investment objectives that are
launched from time to time. A mutual fund is required to be registered with Securities and
Exchange Board of India (SEBI), which regulates securities markets before it can collect funds
from the public.

Different investment avenues are available to investors. Mutual funds also offer good
investment opportunities to the investors. Like all investments, they also carry certain risks. The
investors should compare the risks and expected yields after adjustment of tax on various
instruments while taking investment decisions.

Investment in Mutual funds is managed by an efficient team of portfolio managers. They provide
diversification, professional management and the ease of investment process for an investor who
lacks the expertise in investment in capital market. With the introduction of a wide range of
products, the mutual fund industry nowadays has a lot to offer to its investors. India is emerging
as the next big investment destination, riding on a high savings and investment rate, as compared
to other Asian economies. There is a strong need for improving the awareness especially among
the semi urban and rural communities where they hardly know the benefits of investing in
Mutual Funds. They are still investing in traditional investment options

3
 1.2. NEED AND IMPORTANCE OF THE STUDY

Mutual funds are a trust that pools the savings of a number of investors who
share a common financial goal. They act as financial intermediary, mobilizing the
savings of the investors. The main objectives of performance of growth funds is to
know the annual returns that is earned by an investors if he invests certain amount
in any of the scheme that is offered by the mutual fund industry.

4
1.3. OBJECTIVES OF THE STUDY

1) To know the Investment pattern in HDFC Growth Fund, Reliance

Growth Fund and Franklin Growth Fund.

2) To study about the mutual funds industry

3) To review features of HDFC Growth Fund, Reliance Growth Fund and

Franklin Growth Fund.

4) To analyses the conceptual framework of equity funds,

5) To evaluate the performance of the growth fund,
6) To make a comparative study of the growth fund of the 3 selected
companies

5
1.4. SCOPE AND PERIOD OF THE STUDY

The scope of the calculations is growth funds are to know whether the
schemes are performing really well, than can be known by looking annualized
returns earned by the study that is taken into consideration, in this respect3
growth fund schemes taken viz., HDFC Growth Fund, Reliance Growth Fund
and Franklin Growth Fund. The study covers the randomly selected three
companies’ growth funds for the period of 3 years.

6
1-5 RESEARCH METHODOLOGY

Data Collection Method

The collection of data is the most vital part of the research. It basically starts when the research is
set and the research design is formulated. There are two type of data are collected one is Primary
data and the other is Secondary data.

Primary Data: - The researcher will collect primary data during the course of research period
with the personal interaction with the financial managers of the company.

Secondary Data: - Secondary data will collect from books, articles, Internet and previous
research papers that have been conducted by the company representatives and officials. In this
research, information will collect from the Websites and Reports of the company.

Sampling procedure:

Random sampling will be used as a method for selecting the funds.

Data collected from 3 Funds viz. HDFC Growth Fund, Reliance Growth
Fund and Franklin Growth Fund.

The analysis of the present study will be done from secondary data.

Secondary sources:

The Secondary Data has been collected from a variety of sources. Survey from

following sources:

 Internet
 Books
 News Papers
 Journal
7
1.6 LIMITATIONS OF THE STUDY

 Mutual funds are restricted to Equity- diversified schemes only.

 The present study is restricted to Growth plan only.
 Performance evaluation is done to 3 mutual funds viz., HDFC Growth Fund,
Reliance Growth Fund and Franklin Growth Fund by taking first day of the
month Net Asset Values for 3 years only.
 Limited to 45 days this is a major constraint..