COURSE NAME : MUTUAL FUND

SKILL OFFERING ID :

PROJECT TITLE : INDIAN EQUITIES VS INTERNATIONAL

EQUITIES

PROJECT SUBMITTED TO : NSE ACADAMY

YEAR 2023

DEPARTMENT : COMMERCE

SEMESTER VI

GROUP NUMBER 3

MEMBERS OF THE GROUP 10

GUIDED BY : DR.T. DHARMENDRAN

SPOC NAME : DR.C. MANIVEL

**** MUTUAL FUND MODULE ****

PROJECT - 3

1
INTRODUCTION:

As far as this project is concerned, I have analysed many things during this session. slow and

steady this is getting involved in investing in the mutual fuds.

Objective: To study the performance of equity markets in developed countries like the USA and

developing countries like India.

MUTUAL FUNDS

A mutual fund is a pool of money managed by a professional Fund Manager

It is a trust that collects money from a number of investors who share a common investment

objective and invest the same in equities, bonds, money market instruments and other securities.

EQUITY MARKET

Equity market is a place where stocks and share of companies are traded. The equities that are

traded in an equity market are either over the counter or at stock exchanges. Often called as stock

market, an equity market allows seller and buyers to deal in equity or share in the same platform.

I.INDIAN EQUITIES:

Meaning

In India equities, are traded on exchanges called as National Stock Exchange, Bombay Stock

Exchange and Metropolitan Stock Exchange. There are companies listed on these exchanges and

shares of these companies are bought or sold by the investors.

2
ADVANTAGES OF INDIAN EQUITIES:

1.Higher yield:

Although past earnings do not assure future income, variable income instruments usually have

higher yields than fixed income instruments.

2.No Terms:

Equity instruments are not subject to any terms, so you can hold them for 10 minutes or 40 years,

depending on your investment goals and objectives.

3.Ownership:

Buying stock is equivalent to acquiring ownership in a corporation. A shareholder typically has

the ability to cast a vote on corporate decisions. Due to their ownership of the business, the

shareholders can influence management to make decisions that are in their best interests.

4.Easy to Buy and Sell:

Among the most liquid kinds of investment is the stock market because there is no set investment

time, unlike fixed bank deposits or government bonds. Additionally, the title transfer process is

far shorter and involves fewer legal requirements than real estate transactions.

3
DISADVANTAGES OF INDIAN EQUITIES:

1.Business Risk

The most frequent risk facing investors who buy individual equities is a company specific risk.

Investors risk losing their money if the firm they invested in is unable to generate sufficient sales

or profits.

2.Market Danger

Due to the total systematic risk afflicting the financial markets, investors may suffer losses. A

prime illustration of increased market risk is stock market crashes. Although it cannot be totally

eradicated, market risk can be protected.

3.Time-consuming

The act of trading stocks has gotten easier and faster thanks to the development of online trading

Still, the registration process, such as registering a Demat Account, takes a little longer. The data

and analysis needed before making a valid investment. However, still require diligent work

because it is a one-time activity.

II.INTERNATIONAL EQUITIES

Meaning

International equity market are an important platform for global finance. They not only ensure

the participation of a wide variety of participation but also offer global economies to prosper. To

understand the importance of international equity markets, market valuations and turnover are

important tools.

4
ADVANTAGES OF INTERNATIONAL EQUITIES:

1.Diversification:

Diversification is the most obvious yet the most crucial benefit of global investing. A diversified

portfolio acts as a source of stability during market volatility.

2.Wide range of investment options:

Global investing enables you to access investment opportunities that are not present

domestically. developed markets like the US are home to some of the world’s largest tech

companies-something you can’t access by investing in India.

3.Investment Protection:

Developed market companies generally have strong regulations that ensure sound corporate

governance and severe penalties for market abuse. this protects retail investors from potential

scams and insider trading losses.

4.Currency Diversification:

Investing overseas exposes you to currency appreciation (or depreciation) For example: the USD

has been appreciating, on average, between 3-5 percent versus the INR over the last few years.

5
DISADVANTAGES OF INTERNATIONAL EQUITIES:

1.Higher transaction costs:

The most significant barrier to investing in global markets is the added transaction cost, which

varies depending on the foreign market you want to invest in. For the US market for many other

markets, access may not be as inexpensive.

2.Currency Volatility:

When investing directly in foreign markets, you first have to convert your Indian rupees into a

foreign currency at the current exchange rate. Let’s assume you own a foreign stock for a year

and then sell it.

3.Political Risk:

While investing, you should also consider the geopolitical environment of the country. Political

events affect the domestic markets of the country and may lead to volatility. In developing

markets, government and policy decisions could hurt even the most prominent companies. We

have seen this frequently in countries like Brazil and Argentina.

6
 INDIAN EQUITIES Vs INTERNATIONAL EQUITIES

PARAMETER INDIAN EQUITIY MARKET US EQUITY MARKET

1.Market cap and size Much smaller market with a total Larger stock market in world

market cap of $3.4 Trillion. With a market cap of $40.51

Trillion.

2.Currency All investment and transactions here All investment and transactions

are done in INR here are done in US Dollars

3.Global Exposure Limited global exposure as Indian Extensive global exposure as

stock indices have mainly domestic US stock indices have listing of

companies. companies from around the

world.

4.Regulation The Securities and Exchange Board The US Securities and

of India (SEBI)is the chief regulator Exchange Commission (SEC)

of the Indian stock market. Regulates the US Stock

market.

5.Volatility of Risks The Indian stock market is The US stock market scores

comparatively more volatile, making low on volatility which can

long-term investment riskier. contribute to greater safety for

long-term investment risk.

7
Which Market is Better?

This Indian stock market vs US stock market comparision brings out the highs and lows of

investing in each. That said, exposing your portfolio to the US market with a calculated and risk-

analysed strategy can help bring out necessary diversification and tap into the benefits of its

global affinity. Indian Equities is better than International Equities.

CONCLUSION:

For achieving heights in the financial sectors, the mutual fund companies should formulate the

strategies in such a way that helps in fulfilling the investors expectations. There are an incredibly

large number of mutual funds. While some mutual funds aim to produce short term, high yield

profits, others look for long term profit.

8
 DATA ANALYSIS

Year Sensex Nifty DJIA Nasdaq

2022 60,840.74 4.44% 4.33% 33,147.25 -8.78% 10,939.76 -32.97%

18,105.30

2021 58,253.82 21.99% 24.12% 36,338.30 18.73% 16,320.08 26.63%

17,354.05

2020 47,751.33 15.75% 14.90% 30,606.48 7.25% 12,888.28 47.58%

13,981.75

2019 41,253.74 14.38% 12.02% 28,538.44 22.34% 8,733.07 37.96%

12,168.45

2018 36,068.33 5.91% 3.16% 23,327.46 -5.63% 6,329.97 -1.04%

10,862.55

2017 34,056.83 27.91% 28.64% 24,719.22 25.08% 6,396.42 31.52%

10,530.00

2016 26,626.46 1.95% 3.01% 19,762.60 13.42% 4,863.62 5.89%

8,185.80

2015 26,117.54 -5.03% -4.06% 17,425.03 -2.23% 4,593.27 8.43%

7,946.30

2014 27,499.42 29.89% 31.39% 17,823.07 7.52% 4,236.28 17.94%

8,282.70

2013 21,170.68 8.98% 6.76% 16,576.66 26.50% 3,592.00 34.99%

6,304.00

2012 19,426.71 25.70% 27.70% 13,104.14 7.26% 2,660.93 16.82%

5,905.10

2011 15,454.92 -24.64% -24.62% 12,217.56 5.53% 2,277.83 2.70%

4,624.30

2010 20,509.09 17.43% 17.95% 11,577.51 11.02% 2,217.86 19.22%

6,134.50

2009 17,464.81 81.03% 75.76% 10,428.05 18.82% 1,860.31 53.54%

5,201.00

2008 9,647.31 -52.45% -51.80% 8,776.39 -33.84% 1,211.65 -41.89%

2,959.10

2007 20,286.99 47.15% 54.77% 13,264.82 6.43% 2,084.93 18.67%

6,138.60

2006 13,786.91 46.70% 39.83% 12,463.15 16.29% 1,756.90 6.79%

3,966.40

2005 9,397.93 42.33% 36.34% 10,717.50 -0.61% 1,645.20 1.49%

2,836.50

9
 2004 6,602.69 13.08% 2,080.50 10.68% 10,783.01 3.15% 1,621.12 10.44%

2003 5,838.96 72.89% 71.90% 10,453.92 25.32% 1,467.92 49.12%

1,879.70

2002 3,377.28 3.52% 3.26% 8,341.63 -16.76% 984.37 -37.58%

1,093.50

2001 3,262.33 -17.87% -16.19% 10,021.57 -7.10% 1,577.05 -32.65%

1,059.00

2000 3,972.12 1,263.50 10,787.99 2,341.70

periods 22 22 22 22

minimum -52.45% -51.80% -33.84% -41.89%

maximum 81.03% 75.76% 26.50% 53.54%

average 17.32% 16.81% 6.35% 11.07%

std dev 30.14% 29.45% 14.94% 27.71%

CV 1.74 1.75 2.35 2.50

value of 1L 14,32,948 3,07,261 4,67,172

15,31,694
vs DJIA 5.0 4.7

vs Nas daq 3.3 3.1

10