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Submitted to Maharishi Dayanand University, Rohtak In the partial fulfillment of degree of Master of Business Administration (MBA) (Session 2005-2007)
ACKNOWLEDGEMENT
Concentration, dedication, hard work and application are essential but not the only factor to achieve the desired goal. Those must be supplemented by the guidance assistance and cooperation of experts to make it success. I am extremely grateful to my institute for providing me the opportunity to undertake this research project in the prestigious field. With profound pleasure, I extend my extreme sincere sense of gratitude and indebtedness to my faculty for extensive and valuable guidance that was always available to me ungrudgingly and instantly, which help me complete my project without difficulty. I express my deep and sincere gratitude to Ms Bhawna Sharma, faculty member for providing me first hand knowledge about other related subjects. Last but not the least I am indebted to Mr. Sharma, Director of our institute without whose sincere gratitude this project would not have been possible.
(YOGESH KHURANA)
PREFACE
Practical exposure imbibes an integral part of management studies. One cannot rely merely upon the theoretical knowledge. However class lectures make the functional concepts clear, but these must be correlated with practical projects. I consider myself lucky to get the project in Indias best bank. It was a great learning experience. It helped me to get a practical insight into how to conduct research and to make my concepts clearer. In this project I have tried to give comprehensive picture of details of my project. Learning is like eating. It is not how much one eat that matters, what counts is how much you digest. Knowledge is potential power, wisdom is real power. Todays economy has caused business to rethink their technology decisions. Budgets have been cut and priorities have been reset. Companies can impact their bottom line tremendously by gathering necessary information. This dissertation is concerned with the study mutual funds industry in India During my tenure of dissertation I studied about mutual funds industry in India and deeply analyzed its various aspects. This dissertation shows the very aspect undertaken in context to MUTUAL FUNDS INDUSTRY IN INDIA
DECLARATION
I, Yogesh Khurana Enrolment No. 05-DAVM-124 No. Class MBA of DAVIM hereby declares that the project entitled Mutual fund industry in India is an original work and the same has not been submitted to any other institution for the award of any other Degree. The interim report was presented to the supervisor on 12th March 2007. The feasible suggestions have been duly incorporated in consultation with the supervisor. Countersigned Signature of the supervisor signature of the candidate
COMPANIES HAVING PUBLIC OWNERSHIP 4. Canbank Mutual Fund 5. LIC Mutual Fund 6. SBI Mutual Fund
OBJECTIVES OF STUDY To study about various schemes of mutual funds and bancassurance pattern in India. To study the recent and emerging trends in Mutual Fund Market, and various banks in phenomenon called bancassurance. To analyze the performance of major private and public players in Mutual Funds Industry and increase in profitability of banks through bancassurance. Insurance distribution pattern in India and swot analysis of bancassurance.
RESEARCH METHODOLGY
The whole study is based upon primary data. Therefore, information has been collected from various magazines, journals, websites, and bulletins.
DATA COLLECTION
Collection of data is the critical point in the research process. There are two basic methods of data collection: Primary method Secondary method
For my analysis I have selected the primary method of data collection i.e. i. ii. iii. Questionnaire Interview method Telephone interview
QUESTIONNAIRES INTERVIEWS
Sampling size:
100
Sampling techniques:
I use many sampling techniques like Simple random sampling Stratified random sampling Judgment sampling
There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund:
The advantages of investing in a Mutual Fund are: Professional Management Diversification Convenient Administration Return Potential Low Costs Liquidity Transparency Flexibility Choice of schemes Tax benefits
Professional Management - The primary advantage of funds is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments. Diversification - By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay.
Liquidity - Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time.
Simplicity - Buying a mutual fund is easy! Pretty well any bank has its own line of mutual funds, and the minimum investment is small. Affordability: With many mutual funds, you can begin buying units
with a relatively small amount of money Some mutual funds also let you buy more units on a regular basis with even smaller installments. Flexibility: Many mutual fund companies administer several different mutual funds and allow you to switch between funds within their 'fund family' at little or no charge. Performance Monitoring: The value of most mutual funds is reported daily in the financial press and on many Internet sites, allowing you to continually monitor the performance of your investment.
Costs - Mutual funds don't exist solely to make your life easier--all funds are in it for a profit. The mutual fund industry is masterful at burying costs under layers of jargon. Dilution - It's possible to have too much diversification (this is explained in our article entitled "Are You Over-Diversified?"). Because funds have small holdings in so many different companies, high returns from a few investments often don't make much difference on the overall return.