SUMMER PROJECT

Guided by:- Mrs. Geetika Chawla

PRESENTED BY: PRIYANCY GOYAL A3906411222 BBA(G) 2011-2014

There are a lot of investment avenues available today in the financial market for an investor with an investable surplus. He can invest in bank deposits, corporate debentures and bonds where there is low risk but low return. He may invest in stock of companies where the risk is high and returns are also proportionately high. The recent trends in the stock market have shown that an average retail investor always lost with periodic bearish ends. People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus we had wealth management services provided by many institutions .However they proved too costly for a small investor .These investors have found a good shelter with the mutual funds.

Fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities or money market.

Human Life Cycle

Phase I Phase II
Childs Marriage Childs Education Housing Child birth Marriage 22 yrs 38 yrs 10- 20 yrs

Phase III

Education Age- 22 yrs

Earning Years

Post Retirement Years

Age- 60 yrs

Individual Investor: Life Stages

Earnings Consumption Savings

22 Young Independent

27 Young Married

40 Middle Age

60 Retirement

All individuals have a finite period to save for their investment goals

To study the working of mutual funds To study the characteristics of mutual funds that attract the investor and what an investor should consider for safe investment and better returns. To know about the benefits of investing through mutual fund To find out the various factors considered by the customers while going for investment in mutual fund

Type of Mutual Fund Schemes

Structure

Investment Objective

Special Schemes

Open Ended Funds

Growth Funds

Industry Specific Schemes

Close Ended Funds

Income Funds

Index Schemes

Interval Funds

Balanced Funds

Sectoral Schemes

Money Market Funds

Types of Mutual Fund Schemes

By Structure
Open-Ended anytime enter/exit Close-Ended Schemes listed on exchange Interval schemes

By Investment Objective
Equity (Growth) only in Stocks Long Term (3 years or more) Debt (Income) only in Fixed Income Securities (3-10 months) Liquid/Money Market (including gilt) Short-term Money Market (Govt.) Balanced/Hybrid Stocks + Fixed Income Securities (1-3 years)

Other Schemes
Tax Saving Schemes Special Schemes

REASONS TO INVEST IN MUTUAL FUNDS

Expert on your side Limited risk More for less Easy investing Convenience Investor protection Quick access to your money Low transaction costs

1 .Data Primary Data: - Personal interaction with the respondant through questionnaire Secondary: -Information through websites, books. 2. Sources: Books, Magazines, Articles, Journals 3. Area of study NCR region 4. Tools and Techniques Simple statistical tools

RECOMMENDATIONS
Investors point of view : Ask ones agent to give details of different schemes and match the appropriate ones Go to the fund house regarding any queries if one is not satisfied by the agents.

Companys point of view:

Educate the agents or the salesman properly so that they can take up the queries of the customer effectively. Set up separate customer care divisions where the customers can anytime pose their query, regarding the scheme or current NAV etc. Conduct seminars or programs about mutual fund where each and every minute information about the product is outlined including the risk factor with different classes of assets