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INDUSTRY PROFILE

In India, stock exchanges were almost self regulatory till 1988,


supervised by Ministry of Finance under the Securities Contracts Regulation
Act (SCRA). However, the stock exchanges were not discharging their self
regulatory role as well as a result of which malpractices crept into trading,
adversely affecting investor’s interests.

History of Indian Stock Exchange

The Bombay Stock Exchange (BSE) is known as the oldest exchange in


Asia. It traces its history to the1850s, when stockbrokers would gather under
banyan trees in front of Mumbai’s Town Hall. The Native Share & Stock
Brokers Association’. In 1956, the BSE became the first stock exchange to be
recognized by

FIRST PHASE-1964-87:

Unit Trust of India (UTI) was established in 1963 by an act of


parliament. It was functioned under the regulatory and administrative control
of the reserve bank of India. In 1987 UTI was de-linked from the RBI and the
Industrial Development bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI was
unit scheme 1964. At the end of 1988 UTI has Rs.6700crores of asset under
management.
SECOND PHASE-1987-93: (ENTRY OF PUBLIC SECTOR FUNDS):
In 1987 marked the entry of non-UTI, public sector mutual fund setup
by public sector banks and Life Insurance Corporation of India (LIC) and
General Insurance Corporation of India (GIC). SBI mutual fund was the first
non UTI mutual fund established in June 1987 followed by can bank mutual
fund in DEC 87, Punjab National Bank mutual fund AUG 89, Indian bank
mutual fund NOV 89, bank of India JUNE 90, bank of Baroda mutual fund
OCT 92. LIC established is mutual fund in June 1989 while GIC had the setup
its mutual funds 90. At the end of 1993 by mutual fund industry had assets
under management of Rs. 47004crores.

THIRD PHASE 1993-2003 (ENTRY OF PVT SECTOR FUNDS):

With the entry of PVT sector funds in 1993 a new era started in the Indian
mutual fund industry giving the Indian investor a wide choice of fund
families, also 1993 was the year in the first mutual fund regulation. With the
entry of PVT sector funds in 1993 a new era started in the Indian mutual fund
industry giving the Indian investor a wide choice of fund families, also 1993
was the year in the first mutual fund regulation.

FOURTH PHASE –SINCE FEB 2003:

In FEB 2003 following the repeal of the unit of India ACT 1963 UTI was
bifurcated into separate entities. One is the specific undertaking of the unit
trust of India with assets under management of Rs.29,835crores as 31 st end of
jan2003, representing broadly the assets of US 64 scheme, assured returned
and certain other schemes.
COMPANY PROFILE

Net worth has been successfully providing premium financial services


and information for more than a decade. Our aim has consistently been to
empower investors to take charge of their financial future & help them grow
their Net worth.

Net worth has always endeavored to make a difference in the financial


services space. It constantly focuses on scaling and upgrading the technology
infrastructure so as to provide the best services to the investors. We have a
presence of over 300 centre’s across India.

OUR GROUP COMPANIES

Networth Stock Broking Ltd. [NSBL]

NSBL is a member of the National Stock Exchange of India Ltd (NSE)


and the Bombay Stock Exchange Ltd (BSE) in the Capital Market and
Derivatives (Futures & Options) segment. NSBL has also acquired
membership of the currency derivatives segment with NSE, BSE & MCX-
SX.

Networth Wealth Solutions Ltd. [NWSL]

NWSL is into the business of delivery of Financial Planning & Advice.


It’s vision is to ‘Advice & Execute money related solutions to/for our
customers in the most Convenient & Consolidated manner The product &
Services include Financial Planning, Life Insurance, On-line Trading Account,
Mutual Funds, Debentures/Bonds, General Insurance, Loans and Depository
Services.
Networth Commodities & Investments Limited [NCIL]

NCIL is the commodities arm of NSBL. It is a member at the Multi


Commodity Exchange of India (MCX), National Commodity & Derivatives
Exchange (NCDEX) and ICEX & is backed by solid research & analytics in
Commodities.

Networth Soft Tech Ltd. [NSL]

NSL is an ISO 9001:2000 Certified Company. It is into Application


Development & maintenance. Building & Implementation of packaged
software across various functions within the Financial Services Industry is at
its core. It also provides data center services which include hosting of
websites, applications & related services. It combines a unique delivery model
infused by a distinct culture of customer satisfaction.

Ravisha Financial Services Pvt. Ltd. [RFSL]

RFSL is a RBI registered NBFC engaged in financing, primarily it


provides loan against securities.
NEED FOR STUDY:

 It is necessary for investors to have a prior knowledge about different


investments patterns

 Choosing investment plans to suit individual economic position

 In today’s market there are huge number of investment avenues are


available, but investor has to take wise decision to increase returns and
reduce the risk by making suitable investments.
SCOPE OF THE STUDY:

The study is basically made to analyze the various schemes to


highlights the diversity of investment that mutual fund offer.

Through the study one would understand how common man could
fruitfully convert.
OBJECTIVES OF THE STUDY:

The primary study of the project is to bring out major difference


between equity funds in different Asset Management Companies. To analyze
make right investment decision for maximization of returns and minimization
of risk. The objective also includes explain the
SOURCE OF DATA:

The data collection methods includes both primary and secondary


collection methods,

Primary Method:

This method includes the data collected from the personal interaction with
authorized members of the selected mutual fund companies

Secondary Method:

 The data collected from the different websites relating to Mutual Funds.

 The Brochures and material provided by the NETWORTH STOCK

BROKING LTD.

 Various books relating to investments and other related topics,


basic features and different types of equity funds in Mutual funds.
LIMITATIONS:

 To study is limited five equity schemes of mutual funds.

 Among growth and dividend schemes, only growth schemes have been
taken so as to avoid repetition.

 Only open-ended funds are considered for evaluation.

 There may be scope for committing statically errors


FINDINGS

 In DSPBR Equity Fund, the investors need not get concerned as the
portfolios high on liquidity and quality, we will find out the returns
through the research investment Approach.

 In HDFC Top 200 Fund, the high exposure to Financials did not impact
as the portfolio moves were consistent with our investment approach.
Fund achieving the profit in the growth oriented securities in the
portfolio.

 In HSBC Equity Fund, we find out the profits through invest in safe
and secure companies

 In ICICI PRU Discovery Fund, the fund strategy is to scout for


undervalued stocks that are available at attractive valuations in relation
to their earnings (PE) or Book Value or future dividend.

 The equity funds diversified on FMCG, this fund avoided these sectoral
stocks. In SBI Magnum Fund seeks to invest in undervalued sectors for
safe potential returns in medium to long term

 The comparison of standard deviation of all funds, HSBC Equity Fund


is giving lowest risk
 The comparison of BETA of all funds, HSBC Fund is giving lowest
risk
SUGGESSIONS

 A large-cap bias consistency of returns and good down side protection


makes it a good pick. If company will go through the high research in
each every security automatically comes profit.

 The criteria that go into selecting stocks/sectors are quality our


understanding, growth prospects, valuation of business and the
composition of the benchmark. If we select exact growth oriented
securities in the market, it gives good returns.

 The portfolio began to get leaner and took on a more growth oriented till
it. The fund will select futuristic companies and invest proper way, you
will get Good returns.

 It’s a value based approach could be a letdown during bull runs, but it
excellent down side protection capabilities ensure that over the long run
secure.

 The fund manager will select exact futures and options by investing

derivative market and generate good returns in equity funds. To invest in


well diversified portfolio stocks for good returns in long term.

 The equity funds are fooling around major role in the market, if we invest
proper manner in this market we will get high returns.

 HSBC equity fund is a Low Risk fund to invest for long term returns
CONCLUSION

Mutual funds plans were seen as a “Wonder product” that does


simultaneously fulfill the individual need for investment. The first and
foremost purpose of Mutual funs is protection of investor’s interest.

It is an important for an investor to understand his financial goals and


horizon of investment in order to make an informed investment decisions over
a long-term mutual funds or expected to provide attractive returns and they
also provide tax benefits as per existing tax laws.

The decision to invest in Mutual fund should be depend on the time


period of investment, individual financial goals as well as risk taking appetite.
We can get the clear picture of Mutual funds investment by analysis of
prospects (research method), annual and semi annual reports.