study of mutual funds

7/30/2019 Study of Mutual Funds

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STUDY OF MUTUAL FUNDS IN INDIA

(CATEGORIZATION & CONSTITUENTS)


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

a common financial goal.

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

shares, debentures and other securities.


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Mutual funds are easy to buy and sell. You can either buy them directly from the

fund company or through a third party

Reliance Mutual Fund, UTI Mutual Fund, ICICI Prudential Mutual Fund, HDFC

Mutual Fund and Birla Sun Life Mutual Fund are the top five mutual fund company

in India.

The advantages of mutual fund are professional management, diversification,

economies of scale, simplicity, and liquidity.

The disadvantages of mutual fund are high costs, over-diversification, possible taxconsequences, and the inability of management to guarantee a superior return.


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To give a brief idea about the benefits available from Mutual Fundinvestment.

To give an idea of the types of schemes available.

To discuss about the market trends of Mutual Fund investment.

To study some of the mutual fund schemes.

To study some mutual fund companies and their funds.

Explore the recent developments in the mutual funds in India.


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The relevant data was collected from secondary sources. The starting

point of my information gathering has been the secondary sources such as

internet, books, and journals and so on.

Information about Reliance Mutual fund and UTI Mutual fund has been

covered through secondary sources such as internet, MF magazines, and

journals and so on.


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RELIANCE MUTUAL FUND UTI MUTUAL FUND

How they came into business Registered with SEBI as trust under

Indian Trusts Act, 1882

By the UTI Act passed by the

Parliament in 1963.

Minimum investment. Rs. 500 Rs.1000

Investment. Equity

Bank: 8-15%

Software: 8-19%

Petroleum Products: 4-8%

Pharmaceuticals: 6-10%

invest in 12-20 sectors which include:

Auto , Auto Ancillaries, Finance,

Industrial Capital Goods, Telecom-

Services, Power, Construction Project,

Hotels, Retailing, Media &

Entertainment, Transportation etc

Equity

Financial Service: 16-22%

Energy: 12-18%

Consumer goods: 08-14%

invest in 7-15 sectors which

include:

IT, Telecom, Automobile, Cement

Products, Derivatives, Textile,

Metals etc

Main Funds. UTI Dividend yield Fund,

UTI Opportunity Fund,

Reliance Diversified Fund,

Reliance Equity Opportunity Fund,Reliance Regular Saving Funds


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Type of fund

offered

Equity Fund, Debt Fund,

Sector Specific Fund and

Gold Exchange Traded

Fund.

Equity Fund, Index

Fund, Asset Fund,

Balanced Fund, Debt

Fund (Income, Liquid)

Numbers of

schemes offered

106 schemes 107 schemes.

Distribution Online and internet

based distribution.

Reliance outlets and

branches.

Tie-up with Post

offices branches.

UTI outlets and

branches.

Is any otherventure?

Life Insurance General Insurance

Broking & Distribution

Consumer Finance

Private Equity

Assets Reconstruction.

UTI Bank Pan card

Bank Recruitment

ULIP


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Bank Fixed Deposits verses Mutual Fund

BANKS MUTUAL FUNDS

Returns Low Better

Administrative exp. High Low

Risk Low Moderate

Investment options Less More

Network High penetration Low but improving

Liquidity At a cost Better

Quality of assets Not transparent Transparent

Interest calculationQuarterly

i.e. 3rd, 6th, 9th & 12th.Every Month

Guarantor Guarantor is needed. Guarantor is not needed.

Account Needed. Not Needed.


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Financial experts believe that the future of Mutual Funds in India will be very bright

In the coming 10 years the annual composite growth rate is expected to go up by 13.4%.

100% growth in the last 6 years.

The stock market has been rising for over three years now. This in turn has not only protected

the money invested in funds but has also to helped grow these investments.

This has also instilled greater confidence among fund investors who are investing more into

the market through the MF route than ever before.

India's largest mutual fund, UTI, still controls nearly 80 per cent of the market.

Reliance India mutual funds provide major benefits to a common man who wants to make his

life better than previous.

The mutual fund industry as a whole gets less than 2 per cent of household savings against

the 46 per cent that go into bank deposits.


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Investor always try to maximize the returns andminimize the risk.

Risk takers for getting capital appreciation should

invest in growth, equity schemes.

Investors who are in need of regular income should

invest in income plans.


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The lack of information sources for the analysis part.

Tried to collect some primary data but they were too inadequate for the

purposes of the study.

Time and money are critical factors limiting this study.

The data provided by the prospects may not be 100% correct as they too havetheir limitations.

The study is limited to selected mutual fund schemes.


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study of mutual funds

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