Derivatives are a type of financial instrument that few of us understand and fewer still fully

appreciate, although many of us have invested indirectly in derivatives by purchasing mutual

funds or participating in a pension plan whose underlying assets include derivative products. In a
way, derivatives are like electricity. Properly used, they can provide great benefit. If they are
mishandled or misunderstood, the results can be catastrophic. Derivatives are not inherently
“bad”. When there is full understanding of these instruments and responsible management of the
risks, financial derivatives can be useful tools in pursuing an investment strategy. This project
attempts to familiarize with financial derivatives, their use and the need to appreciate and
manage risk.
Contents
1. Acknowledgement
2. Preface
3. Introduction
- What is a derivative
4. History of Derivatives
5. Characteristics of derivatives
6. Types of derivatives
7. Forward contract
8. Future contract
9. Swaps
10. Options
11. Function of derivatives
12. Advantages of Derivatives
13. Disadvantages of derivatives
14. Risks associated with derivatives
15. Derivatives in Indian Market
16. How derivatives are actually traded
17. How derivatives are traded in Indian
18. Capital market
19. Recommendations
20. Annexures
he project is designed with an objective that it will fulfill the company’s objectives as well as add
value to my knowledge, and along with that it will give me an opportunity to have a practical
experience of the mutual fund industry. The objectives of the project are:
- Proper understanding and analysis of mutual fund as a product.
- This project will help me to understand the type of mutual fund scenario that exists in India.
- It will help me to understand the role of different channels for distribution of mutual fund
products.
- It will help the company in developing superior products and services in comparison to its
competitors and position itself better in the minds of the consumers.
- This project will also help the investors to make investment in the schemes according to their
suitability which can fulfill their financial needs.
1. ABSTRACT
2. OBJECTIVES
3. LIMITATIONS
4. METHODOLOGY
4.1 ABOUT MUTUAL FUNDS
- What is a Mutual Fund
- Types of Mutual Funds Schemes
- History of the Indian Mutual Fund Industry
- Trends in Marketing of Mutual Funds
- Advantages & Disadvantages of investing in Mutual Funds
- Why to invest in Mutual Funds and not in Banks?
- How to Start Investing?
- Advantages of Investing Early
- Tax Implications
I. SET YOUR GOALS THROUGH…
- Systematic Investment Plan
- Systematic Transfer Plan
II. ABOUT THE COMPANY
- Corporate Identity.
- Parentage & Inception
- Products
- Service & Facilities
- Key Employees of Kotak Mahindra AMC
- SWOT Analysis of Kotak Mahindra AMC
- Major Players in the Indian Mutual Fund Industry
III. ASSOCIATION OF MUTUAL FUNDS IN INDIA
- About AMFI
- Objectives of AMFI
IV. JOB PROFILE
- Working with the Distributor
- Channels of Sales
- Working directly with the Investors
- Working with the Asset Management Company
V. LEARNINGS
VI. RECOMMENDATIONS
VII. BIBLIOGRAPHY