A Study on Mutual Funds of India

Topics: Mutual fund, Investment, Collective investment scheme Pages: 47 (12655 words) Published: April 12, 2012


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. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to 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. In other words, Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.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.The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time.| |

OBJECTIVES OF THE STUDY.To study about the awareness of Mutual Funds among people..To study the interest of people in investing in Mutual Funds..To study the different aspects of Mutual Funds according to different age, profession etc..To study the future of Mutual Funds in India..To study the different attitudes of people regarding risk, rate of return, period of investment etc.METHODOLOGY: A methodology is a way of approaching problem in order to find out the truth involved in a problem. Certain steps must be taken in a certain order and the order of steps is called methodology. Methodology is defined as the “correct arrangement of thoughts either for the discovery or for the exposure of truth.”Taking into consideration all the objectives mentioned above the Study has been carried out covering the following phases: * Primary Data was gathered in the form of a survey of customer’s of sharekhan. The questionnaire is an open ended as well as close ended. * Informal interviews, management views, investor responses and personal observations have been incorporated in some specific findings. * Desk Research : Based on secondary data from * Books * WebsitesSAMPLING TECHNIQUE:Judgmental sampling technique is used for the survey, in which the target audiences were chosen according to the convenience of the researcher.SAMPLE SIZE: The sample considered for the survey is based on the Convenient Sampling of the researcher. The researcher has taken 75-sample size for the survey.STATISTICAL TOOL:The study also includes charts and graphical presentation of the collected data to give clear picture of the theoretical information collected. The collected data are qualitatively presented with the help of bar diagrams and charts.SCOPE OF STUDYThe findings can be used at an organizational level to find out the preference of investors with respect to Mutual Funds.The questionnaire can be used by consultancies in their analysis of investment decision.The present study seeks to analyze the current operations of Sharekhan regarding the basic mutual fund facilities.LIMITATIONSSample size restricted to management decision at the organization. However approximately 20 percent of the population was covered as sample size. * * The research is limited to responses gathered over the 2 months period at the company. Researches on similar lines require longer time for a more accurate analysis. * The investors usually hesitate to provide complete information, which is essential for investment purpose. * Company is not ready to share investor’s profile, which can be useful to conduct a survey in large extent. * Investor ignorance was faced during discussions with respondents.CHAPTER SCHEME:Chapter I :...
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