ANALYSIS OF MUTUAL FUND INDUSTRY IN INDIA

Synopsis

Submitted by Shweta Roll No 1175041

Submitted to Ms. Ritika

in the partial fulfillment for the award of the degree of

Masters of Business Administration Rayat and Bahra Institute of Management,Mohali Punjab Technical University, Kapurthala

He can invest in Bank Deposits. benefits. global scenarios. limitations. bringing in their professional expertise in managing funds worldwide. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Corporate Debentures. history of mutual funds in India. My study gives an overview of mutual funds – definition. The recent trends in the Stock Market have shown that an average retail investor always lost with periodic bearish tends. Thus we had wealth management services provided by many institutions. Mutual fund industry has seen a lot of changes in past few years with multinational companies coming into the country. Now investors have a wide range of Schemes to choose from depending on their individual profiles. risks. types. . In the past few months there has been a consolidation phase going on in the mutual fund industry in India.INTRODUCTION There are a lot of investment avenues available today in the financial market for an investor with an investable surplus. However they proved too costly for a small investor. He may invest in Stock of companies where the risk is high and the returns are also proportionately high. These investors have found a good shelter with the mutual funds. latest trends. and Bonds where there is low risk but low return. I have analyzed a few prominent mutual funds schemes and have given my findings.

From the LPM perspective. and capturing the extent to which it is below.increasing market risk and various other factors linked with the mutual fund industry. Sethu & Rachana Baid findings significant contribution to index fund tracking error may arise from factors that are not under index fund manager's control and also tracking error is not neutral to some of the factors. According to G. and Jensen are based on the Mean-Variance (M-V) rule are valid only when the distribution of asset returns is characterized by spherical symmetry to which class normal and similar distributions belong. the three traditional measures by Treynor. Finally. Banikanta Mishra & Mahmud Rahman have developed measures of evaluating portfolioperformance based on LPM (Lower-Partial-Moment). . causing the alphas to shift towards the right and reducing the number of negative timing coefficients. risk has been measured by taking into account only those states in which return is below a pre-specified "target rate". debentures and other securities and since most of the capital market instruments. According to Bijan Roy & Saikat Sovan Deb when the beta of the fund is conditioned to lagged economic information variables the fund performance does not change appreciably. there has not been any fixed criteria for evaluating the performance of the mutual funds . there is still lot of research that needs to be done keeping in view changing investment pattern of the investors . Sharpe.Various research papers have been written while considering the performance evaluation criteria into mind which have been discussed in the following paragraphs. like risk-free rate. they found managers' performance as well as timing skill worsens with the inclusion of this dummy. According to them. Despite of lot of research being done on the mutual funds. The findings of the research suggests that the use of conditioning lagged information variables improves the performance of the mutual fund schemes.REVIEW OF LITERATURE Studies undertaken by various scholars and researchers reveals that mutual funds is a trust that pools the savings which are further invested into capital market instruments such as shares. They have also studied the impact of the tech rally in the conditional models by introducing a dummy variable indicating the period of rally in tech stocks. not all . have an element of risk so it very difficult to evaluate the performance of various schemes .

books. the selection of units from the population is based on easy availability and/or accessibility. SOURCES OF DATA Primary sources :Secondary data: (a) Questionnaire technique (a) Mutual funds related Organization’s website. o To find out investor’s motive towards investment. which influences the investor’s decisions HYPOTHESIS Null Investors prefer Mutual Funds over other investment options. (b) Journals (c) Newspapers and other magazines. income and profession. internet. magazines etc. o To find out the factor. It will be consisting of data collected from various journals. Alternate Investors do not prefer Mutual Funds over other investment options. .OBJECTIVES OF THE STUDY: o To analyze investment alternatives through market survey. RESEARCH DESIGN. Secondary Research: The study is done on secondary basis. Convenience Sampling: In convenience sampling.Exploratory Research DATA COLLECTION Primary Research: The primary study is done on the basis of questionnaire that had got filled up directly from the investors of different age.

Who influence your investment decision the most? Rate On Scale 1-5 (1-lowest. Tax Free Return _____ 8. Address: 3. 5-3 lakhs b. 35-50 g. b. Mutual funds ____ b. Others ____ e. Objective of your investment is? Rate on scale of 1-5 (1-lowest. a. Real estates ____ h.QUESTIONNAIRE 1. Up to 1. Financial experts _____ c. Contact No. c. Bank FD ____ PF ____ Bonds____ Post Office ____ e. > 5 lakhs 6. Name: 2. Marketability _____ . Stock market ____ f. Your own decision _____ b. 1 being lowest and 10 highest. At present you invest in: (number 1-10).: 4. Speculation _____ e. Age group: a. Rate of return _____ c. Among various investment alternatives you think is best for you and why? _____________________________________________________________________ 7. Income range (Annually) a. 5-highest) a. Insurance ____ j.5lakhs c. Financial Advisors _____ b. Security _____ d. Friends _____ d. Gold ____ 6. 50 onwards 5. 25-35 c. 5highest) a. Attractive advertisements _____ e. d.

(1-lowest. Balanced c.V & Newspapers Magazines Friends & Relatives Financial Advisor Others _________ _________ _________ _________ _________ 11. 5-highest) a. 2-3 years d. Below 1 year _________ _________ _________ _________ _________ b. in which fund you want to invest in future? a. Debt b. b. ___________________________________________________________________________ ___________________________________________________ THANK YOU FOR YOUR PRECIOUS TIME .9. Equity b. c. No 14. (1-lowest. 3-5 years e. What is the most preferred period of investment in the mutual fund? Rate 1-5. d. Any other information or suggestions. Awareness towards mutual fund through: Rate On 1-5. IF yes. Do you have any future plan for investing in mutual funds? a. e. Above 5 year 12. Yes 13. 1-2 year c. T. 5-highest) a.

Sign up to vote on this title
UsefulNot useful