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