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Mini Project MBA2
Mini Project MBA2
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 investors interests.
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.
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 centres across India.
In todays 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.
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.
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.
Its 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 investors 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.