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    A PROJECT REPORT

    ON

    MUTUAL FUNDS IS THE BETTER

    INVESTMENTS PLAN

    Submitted in partial fulfillment for

    MASTER OF BUSINESS ADMIMISTRATION

    Program of

    ASIAN BUSINESS SCHOOL

    NOIDA

    Submitted by :- Under Guidance :-

    GARVIT NIGAM MS. RUCHI BHATIA

    MBA( 1 SEM) ASSISTANT PROFESSOR

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    ACKNOWLEDGEMENT

    With regard to my Project with Mutual Fund I would like to thank each and every one

    who offered help, guideline and support whenever required.

    First and foremost I would like to express gratitude to Mr. Jalaj Rai, Business

    head of RAGHUNANDAN MONEY for their support and guidance in the Project work.. I

    am extremely grateful to my guide, MS. RUCHI BHATIA for their valuable guidance and

    timely suggestions.

    I would also like to extend my thanks to my friends for their support. And lastly, I would

    like to express my gratefulness to the parents for seeing me through it all.

    GARVIT NIGAM

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    CERTIFICATE

    This is to certify that Mr. GARVIT NIGAM a student of ASIAN BUSINESS SCHOOL has completed

    project work on MUTUAL FUNDS IS THE BETTER INVESTMENTS PLAN under my guidance and

    supervision.

    Signature of Guide

    Name of Project Guide MS. RUCHI BHATIA

    Date-

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    DECLERATION

    I hereby declare that this Project Report entitled THE MUTUAL FUND IS BETTER

    INVESTMENT PLAN in SBI Mutual Fund submitted in the partial fulfillment of the

    requirement of Master of Business Administration (MBA) of ASIAN BUSINESS SCHOOL,

    NOIDA is based on primary & secondary data found by me in various departments,

    books, magazines and websites & Collected by me in under guidance of MS. RUCHI

    BHATIA.

    DATE: GARVIT NIGAM

    MBA (FIRST SEM )

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    EXECUTIVE SUMMARY

    In few years Mutual Fund has emerged as a tool for ensuring ones financial well being.

    Mutual Funds have not only contributed to the India growth story but have also helped

    families tap into the success of Indian Industry. As information and awareness is rising

    more and more people are enjoying the benefits of investing in mutual funds. The main

    reason the number of retail mutual fund investors remains small is that nine in ten

    people with incomes in India do not know that mutual funds exist. But one's people are

    aware of mutual fund investment opportunities, the number who decide to invest in

    mutual funds increases to as many as one in five people. The trick for converting a

    person with no knowledge of mutual funds to a new Mutual Fund customer is to

    understand which of the potential investors are more likely to buy mutual funds and to

    use the right arguments in the sales process that customers will accept as important and

    relevant to their decision.

    This Project gave me a great learning experience and at the same time it gave me

    enough scope to implement my analytical ability. The analysis and advice presented in

    this Project Report is based on market research on the saving and investment practices

    of the investors and preferences of the investors for investment in Mutual Funds. This

    Report will help to know about the investo rs Preferences in Mutual Fund means Are

    they prefer any particular Asset Management Company (AMC), Which type of Product

    they prefer, Which Option (Growth or Dividend) they prefer or Which Investment

    Strategy they follow (Systematic Investment Plan or One time Plan). This Project as a

    whole can be divided into two parts.

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    The first part gives an insight about Mutual Fund and its various aspects, the Company

    Profile, Objectives of the study, Research Methodology. One can have a brief knowledge

    about Mutual Fund and its basics through the Project.

    The second part of the Project consists of data and its analysis collected through survey

    done on 200 people. For the collection of Primary data I made a questionnaire and

    surveyed of 200 people. I also taken interview of many People those who were coming

    at the RAGHUNANDAN MOMEY where I done my Project. This Project covers the topic

    THE MUTUAL FUND IS BETTER INVESTMENT PLAN. The data collected has been well

    organized and presented. I hope the research findings and conclusion will be of use.

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    CONTENTS

    INTRODUCTION

    COMPANY PROFILE

    OBJECTIVES AND SCOPE

    RESEARCH METHODOLOGY

    DATA ANALYSIS AND INTERPRETATION

    CONCLUSIONS

    SUGGESTIONS & RECOMMENDATIONS

    BIBLIOGRAPHY

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    MUTUAL FUNDS

    ALL ABOUT MUTUAL FUNDS

    WHAT IS MUTUAL FUND

    BY STRUCTURE

    BY NATURE

    EQUITY FUND

    DEBT FUNDS

    BY INVESTMENT OBJECTIVE

    OTHER SCHEMES

    PROS & CONS OF INVESTING IN MUTUAL FUNDS

    ADVANTAGES OF INVESTING MUTUAL FUNDS

    DISADVANTAGES OF INVESTING MUTUAL FUNDS

    MUTUAL FUNDS INDUSTRY IN INDIA

    MAJOR PLAYERS OF MUTUAL FUNDS IN INDIA

    HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

    CATEGORIES OF MUTUAL FUNDS

    INVESTMENT STRATEGIES

    WORKING OF A MUTUAL FUND

    GUIDELINES OF THE SEBI FOR MUTUAL FUND

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    COMPANIES DISTRIBUTION CHANNELS

    DOES FUND PERFORMANCE AND RANKING PERSIST?

    PORTFOLIO ANALYSIS TOOLS

    RESEARCH REPORT

    OBJECTIVE OF RESEARCH

    SCOPE OF THE STUDY

    DATA SOURCES

    SAMPLING

    DATA ANALYSIS

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    INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS ASPECTS.

    Mutual fund is a trust that pools the savings of a number of investors who share a

    common financial goal. This pool of money is invested in accordance with a stated

    objective. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to all

    investors. The money thus collected is then invested in capital market instruments such

    as shares, debentures and other securities. The income earned through these

    investments and the capital appreciations realized are shared by its unit holders in

    proportion the number of units owned by them. Thus a Mutual Fund is the most suitable

    investment for the common man as it offers an opportunity to invest in a diversified,

    professionally managed basket of securities at a relatively low cost. A Mutual Fund is an

    investment tool that allows small investors access to a well-diversified portfolio of

    equities, bonds and other securities. Each shareholder participates in the gain or loss of

    the fund. Units are issued and can be redeemed as needed. The fund Net Asset value

    (NAV) is determined each day.

    Investments in securities are spread across a wide cross-section of industries and

    sectors and thus the risk is reduced. Diversification reduces the risk because all stocks

    may not move in the same direction in the same proportion at the same time. Mutual

    fund issues units to the investors in accordance with quantum of money invested by

    them. Investors of mutual funds are known as unit holders.

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    When an investor subscribes for the units of a mutual fund, he becomes part owner of

    the assets of the fund in the same proportion as his contribution amount put up with the

    corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual

    fund shareholder or a unit holder.

    Any change in the value of the investments made into capital market instruments (such

    as shares , debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV

    is defined as the market value of the Mutual Fund scheme's assets net of its liabilities.

    NAV of a scheme is calculated by dividing the market value of scheme's assets by the

    total number of units issued to the investors.

    http://www.appuonline.com/mf/knowledge/concept.htmlhttp://www.appuonline.com/mf/knowledge/concept.htmlhttp://www.appuonline.com/mf/knowledge/concept.htmlhttp://www.appuonline.com/mf/knowledge/concept.html
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    ADVANTAGES OF MUTUAL FUND

    Portfolio Diversification

    Professional management

    Reduction / Diversification of Risk

    Liquidity

    Flexibility & Convenience

    Reduction in Transaction cost

    Safety of regulated environment

    Choice of schemes

    Transparency

    DISADVANTAGE OF MUTUAL FUND

    No control over Cost in the Hands of an Investor

    No tailor-made Portfolios

    Managing a Portfolio Funds

    Difficulty in selecting a Suitable Fund Scheme

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    HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

    The mutual fund industry in India started in 1963 with the formation of Unit Trust of India,

    at the initiative of the Government of India and Reserve Bank. Though the growth was

    slow, but it accelerated from the year 1987 when non-UTI players entered the Industry.

    In the past decade, Indian mutual fund industry had seen a dramatic improvement, both

    qualities wise as well as quantity wise. Before, the monopoly of the market had seen an

    ending phase; the Assets Under Management (AUM) was Rs67 billion. The private sector

    entry to the fund fami