Maha Final

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    CONTENTS

    CHAPTER CONTENTS PAGE

    NO

    1Introduction

    1.1Introduction 1

    1.2 Problem statement 4

    1.3 Objective of the Study 5

    1.4 Scope of the study 6

    1.5 Research Methodology 7

    1.6 Limitations of the study 9

    1.7 Industry Profile 10

    1.8 Company Profile 14

    2 Review of Literature 16

    3 Analysis and Interpretation 23

    4 Findings & Suggestions 34

    5 Conclusion 35

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    INTRODUCTION

    Financial markets are the backbone of an economic system and aid allocation of

    scarce capital across the productive sectors of the economy. While Indian economic growth is

    in evitable, stability and dynamism of the financial system is essential for proper allocation

    of resources, which in turn helps sustain a healthy climate for saving and investing. In fact,

    the financial system has to be more dynamic than the real system as it has to continuously

    respond to the needs of the real economy to help in achieving its goals.

    Financial system implies a set of complex and closely connected or interlinked

    institutions, agents, practices, markets, transactions and liabilities in the economy. The

    financial system is concerned about money, credit and finance. The three terms are intimately

    related yet different from each other. Money refers to the current medium of exchange or

    means of payment. Credit or loans is the sum of money to be returned, normally with

    interest- it refers to a debt of economic unit. Finance is monetary resource comprising of debt

    and ownership funds of the state, company or person.

    The financial system helps bring together sewers and users of capital. Hence, the

    efficiency of financial markets is essential for facilitating optimal intermediation between

    households and firms. The Indian financial system has always had a well-defined institutional

    structure. While it has been dominated by government sponsored financial institutions and

    nationalized commercial banks, in recent years, the private sector has been showing steady

    growth in the areas of asset management and financial services. Today India can boast of

    having world-comparable capital market and money markets.

    1

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    A financial market can be defined as a market in which financial assets are created or

    transferred. These markets are classified as Money Market and Capital Market.

    My project is related to SBI MUTUAL FUND RISK AND RETURN. The reason for

    selecting this particular project in SBI MUTUAL FUND since Mutual fund is an emerging

    trend in the financial market.

    The main objective is to know the rate of risk and return for customers who invest in

    mutual funds and also to know more facts, figures, the impact and the fluctuation of mutual

    funds in the market.

    I had made a comparison study ofSBI MUTUAL FUND with KOTAK MUTUAL FUND

    and HDFC MUTUAL FUND.

    My primary studies from 50 investors in and around Chennai will provide as a

    conclusive proof for my study. The actual duration to complete the project was 2 months.

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    FINANCIAL SYSTEM AND FINANCIAL MARKET:

    Financial system is essential for proper allocation of resources, which in turn helps

    sustain a healthy climate for saving and investing. In fact, the financial system has to be more

    dynamic than the real system as it has to continuously respond to the needs of the real

    economy to help in achieving its goals.. The financial system is concerned about money,

    credit and finance. The three terms are intimately related yet different from each other.

    Money refers to the current medium of exchange or means of payment. Credit or loans is the

    sum of money to be returned, normally with interest- it refers to a debt of economic unit.

    Finance is monetary resource comprising of debt and ownership funds of the state, company

    or person.

    The financial system has been dominated by government sponsored financial

    institutions and nationalized commercial banks, in recent years, the private sector has been

    showing steady growth in the areas of asset management and financial services. Today India

    can boast of having world-comparable capital market and money markets.

    A financial market can be defined as a market in which financial assets are created or

    transferred. These markets are classified as Money Market and Capital Market.

    Maturity Period, Liquidity, Good Rates of Returns, Trust Worthy and Able

    Management.

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    Problem statement

    The current emerging trend is in financial market that has more attraction in the insurance

    and mutual fund market these two ahs growing in the market with high rate in I have taken two

    months study to analyze the investor risk and return preferences about the insurance and mutual

    fund

    Method such as percentage method and weighted average method has used to find out

    the effective result.

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    OBJECTIVE OF THE STUDY

    Primary objectivePrimary objective

    1. To analyze the investors preference towards mutual fund.

    Secondary objectiveSecondary objective

    1. To examine the investors preference towards of various mutual fund scheme.

    2. To identify the factor influence to invest in mutual fund.

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    PURPOSE & SCOPE OF STUDY

    Purpose of the Study

    This study draws its parameters on the investors knowledge of investment in general

    with prominence to mutual funds. An attempt is also made to know the investors preference

    To analyze the opinion of investors about mutual fund and insurance where do they

    place them among the various other investment alternatives. What is that they would like

    mutual funds to provide them, and what steps do they feel is necessary to rank the mutual

    fund as one of the best investment alternative.

    Scope of the Study

    The study is focused only on mutual fund and insurance that exists in India. This

    study seeks to explain a practical approach to evaluate the preference of mutual fund and

    investor investments it would serve as a guide for Investment Advisors in advising investors

    regarding the Mutual Fund Investments, the returns they would fetch for the risk a client is

    willing to take. The study is concentrated on the interest related areas of investors, in risk and

    return such as:

    1. What is that they see in mutual fund and insurance compared to other available alternative

    sources of investment?

    2. What is that they would expect from their investment?

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    RESEARCH METHODOLOGY

    Definition of research:

    Research means a Search for Knowledge. Research is a systematic and objective

    investigation of a subject or a problem, in order to discover relevant information or principal.

    According to Clifford Woody research comprises, defining and redefining problems,

    formulating hypothesis or suggested solution; collecting, organizing and evaluating data;

    making deductions and reaching conclusions; and at last carefully testing the conclusion to

    determine whether or suit the formulated hypothesis.Research can either be exploratory or

    descriptive. Exploratory research seeks to extend the boundaries of knowledge in a given

    area and with no necessary immediate application to existing problem. Descriptive research

    on the other hand, attempts to use existing knowledge as an aid to the solution of some give

    problem/set of problems.

    Research Design

    A research design is purely and simply the framework or plan for a study that guides

    the collection and analysis of data. C.R.KOTHARI. It is a blueprint that is followed in

    completing the study. This study is basically descriptive in nature. The study mainly relies on

    the interrogation or respondents and data available by necessary sources. Thus descriptive

    research only suits the purpose appropriately.

    Population

    The population for this project includes investor in Chennai city.

    Sampling Frame:

    The sample used for this project was selected by the researcher from the whole

    population of investors in Chennai city.

    Sample Size

    The sample size taken for this project is 150, taken from the whole population of

    investors in Chennai city.

    Sampling Method:

    The sampling method adopted in this project is random sampling.

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    Project Steps:

    Step 1: This is the phase where primary data was collected by means of judgmental and

    convenience sampling.

    Research Instrument: The questionnaire was used here as the main source of data collection

    from the investor. Due to the busy schedule of the above mentioned, the researchers noted

    down the responses of the respondents and got their authorization at the end of the interview.

    Step 2: In this phase survey by means of questionnaire was conducted. As the research is

    concerned with the income patter and the broad area of saving and instruments the sampling

    in the survey was judgmental and convenience sampling. It was based on samples residing in

    Chennai.

    Step 3: The data collected were scrutinized, transformed into tables and finally were

    converted and analyzed with the help of graphs, statistical tools and illustrations.

    Statisti