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

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

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. From the LPM perspective. the three traditional measures by Treynor. they found managers' performance as well as timing skill worsens with the inclusion of this dummy. and capturing the extent to which it is below. Sharpe. causing the alphas to shift towards the right and reducing the number of negative timing coefficients. there is still lot of research that needs to be done keeping in view changing investment pattern of the investors .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. Finally. debentures and other securities and since most of the capital market instruments. there has not been any fixed criteria for evaluating the performance of the mutual funds . 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. According to them. 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. not all . . 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. The findings of the research suggests that the use of conditioning lagged information variables improves the performance of the mutual fund schemes. Despite of lot of research being done on the mutual funds. have an element of risk so it very difficult to evaluate the performance of various schemes . like risk-free rate. risk has been measured by taking into account only those states in which return is below a pre-specified "target rate". Banikanta Mishra & Mahmud Rahman have developed measures of evaluating portfolioperformance based on LPM (Lower-Partial-Moment).Various research papers have been written while considering the performance evaluation criteria into mind which have been discussed in the following paragraphs.

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

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

Balanced c. 1-2 year c. 3-5 years e. 2-3 years d. e.V & Newspapers Magazines Friends & Relatives Financial Advisor Others _________ _________ _________ _________ _________ 11. Below 1 year _________ _________ _________ _________ _________ b. (1-lowest. No 14. ___________________________________________________________________________ ___________________________________________________ THANK YOU FOR YOUR PRECIOUS TIME . What is the most preferred period of investment in the mutual fund? Rate 1-5. b. Awareness towards mutual fund through: Rate On 1-5. c. T. Do you have any future plan for investing in mutual funds? a. IF yes. Debt b. Yes 13. 5-highest) a. d. Any other information or suggestions. (1-lowest. Above 5 year 12.9. in which fund you want to invest in future? a. 5-highest) a. Equity b.

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