A
RESEARCH PROJECT REPORT
ON
PERFORMANCE OF MUTUAL FUNDS IN INDIA
SUBMITTED TOWARDS PARTIAL FULFILLMENT
Of The REQUIREMENTS
OF
(Post Graduate Diploma in Management)
UNDER THE SUPERVISION OF
PROF. BHAVYA TANEJA
(FACULTY GUIDE)
SUBMITTED BY
SUNITA
Post Graduate Diploma in Management
ROLL NO (1121003140)
(2011-13)
INSTITUTE OF MANGEMENT TECHNOLOGY
Centre for Distance Learning ,Ghaziabad
1
PREFACE
As we know that research work boost up the performance of management people and this is
one of the most eminent phases of management curriculum. It exposes the employee to the
real world of business, where h we can apply the management theories.
The objective of research is to provide a patch of experience in the work field because without
work experience no professional curriculum is considered as complete. Thus every individual
who is under going this management program has to follow this phase of research study
before He/she can consider himself /herself fully qualified as a potential manager.
I am grateful to my institute which gave me an opportunity to have an exposure on research
thesis. I have taken this research work to study of the Performance of mutual funds in
India . I have studied the past, present and future of the Performance of mutual funds in
India .
Being a management student this was my second experience and I can not say that my
findings are accurate and there are no short comings. But still I would like to stress there that
my efforts are sincere and directed to achieve the desired results
ACKNOWLEDGMENT
Starting & bringing this study to its culmination has been a great experience for me on Performance of
Mutual Funds in India as a partial fulfillment of my course.
By the blessing of Almighty God, I could have been able to come into my fruitful form of PGDM training
project work. I gratuitously express my thanking prayers to my Almighty God.
I would like to express my sincere thanks to Institute of Mangement Technology and respected
Director and my mentor Prof. Bhavya Taneja
and co-ordinators for allowing me to do my training at HDFC Bank because without whose permission I
would not be able to grasp such a golden opportunity to do our project work in banking sector.
I sincerely thanks to Mr.
Bhavya Taneja of HDFC Bank,
for their co-operation and advice for the
completion of my project work.
I would like to pay my gratitude to my parents for their encouragement and moral support.
Last but not the least I would like to express my thanks to HDFC Bank for the co-operation to complete
my project work.
INTERNSHIP PROGRAMME
@
HDFC Mutual fund
.
Sunita
(1121003140)
Institute of Mangement Technology
DECLARATION
I, Sunita student of PDGM IV sem, hereby declare that this project report titled PERFORMANCE OF
MUTUAL FUNDS IN INDIA is a genuine work done by me. Information presented here is correct to the
best of my knowledge. Also the report presented has not been submitted anywhere else.
Sunita
PDGm IV sem.
Roll No.1121003140
TABLE OF CONTENTS
CONTENTS
PREFACE
ACKNOWLEDGMENT
DECLARATION
TABLE OF CONTENTS
LIST OF GRAPHS
ABSTRACT
INTRODUCTION
STATEMENT OF PROBLEM
SIGNIFICANCE OF PROBLEM
SCOPE OF RESEARCH
OBJECTIVE OF RESEARCH
STATEMENT OF HYPOTHESES
ASSUMPTION
LIMITATION
LITERATURE REVIEW/SWOT ANALYSIS
DESIGN OF THE STUDY
DESCRIPTION OF RESEARCH DESIGN AND PROCEDURE USED
SOURCE OF DATA
SAMPLING PROCEDURE
METHODS AND INSTRUMENT OF DATA GETHERING
ANALYSIS OF DATA
PAGE .NO
I
II
III
IV-V
VI-VII
VIII
1-6
7-8
9-11
12
13
14
15
16
17-25
26-30
31
28
29
31
32-63
SUMMARY AND CONCLUSION
64
RESTATEMENT OF PROBLEM
65
MAJOR FINDING
66
CONCLUSION
67-69
SUGGESTIONS
70
REFERENCE SECTION
71-78
APPENDIX
71-77
BIBLIOGRAPHY
78
5
LIST OF GRAPHS
LIST OF GRAPHS
PAGE NO
Sectorial composition of investment
34
Market share of different companies
35
% composition for not investing in MFs
36
6
Reasons for investing
37
Position of MF companies
38
Gender wise classification on MF users
39
Age wise Distribution of mutual funds
40
Qualification of final consumers
41
Occupation wise of final consumer of
42
mutual funds
43
Individual Income wise final users of
funds
Type of investor in mutual fund sector
44
Type of Mutual Fund invested
45
Investing in Mutual Funds (years)
46
Companies invested in
47
Time duration of investment
48
Company behavior
49
Investment preference
50
Kinds of investors and investment
51
Preference while investing
52
Source of information
53
Reason for non investment in MF
54
Preference for future investment
55
Channel Preferred by the Investors for
56
Mutual Fund Investment
Mode
of
investment
preferred
by
57
investor
7
Preferred Portfolios by the Investors
58
ABSTRACT
Mutual Fund was introduced in the year 1963 in India. UTI is the first concern to deal with mutual fund in
India. The performance of mutual fund started going high after liberalization in the country.
Mutual Fund came into existence in India in the year 1963. Unit trust of India was the first association to
launch the concept of Mutual Fund in India.
In spite of this, HDFC Mutual Fund had always remained in the
leading position. The performance of Mutual Funds in India
started climbing the ladder of success with the consistently good
performance of HdFc Mutual Fund. Initially, people in India were
not very much familiar with the Mutual Funds. In the year 1992,
that is, in the post-liberalization era around 24 million
shareholders or investors in the HdFC Mutual Fund were assured
high returns on investing in Mutual Funds. HDFC Mutual Funds
schemes actually sold the idea of getting benefited by investing
in mutual funds to the Indian population which proved to be a
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successful measure in attracting investors. There was 0% risks
involved in mutual funds schemes after liberalization and the
number of investors started increasing rapidly thereafter. The
Assets Under Management of HDFC Mutual Fund stood at ` 67
billion by the end of the year 1987. It rose to ` 470 billion in
March 1993 and by April 2004, the figure reached thrice the
amount of March 1993 and stood at ` 1,540 billion. The net asset
value (NAV) of mutual funds started to go down with the falling
of share prices in 1992. Portfolio shifts were not allowed into
alternative investments during the crisis period. The closed-end
funds were floated in the Indian market at that time which made
the investors sell the shares at a loss in the secondary market
The performance of mutual funds in India went through a lot of turmoil especially in the year 1992 when
there was a terrible decline in the stock prices. Losses were faced by the investors while disinvesting in the
secondary market and the rules and regulations were not clear enough to rule out the ambiguity in the minds
of investors regarding investment in mutual funds in India. The current trading value is 1020 percent
discount on the net asset value of the mutual funds. Various mutual funds in India are planning to introduce
pension schemes in mutual funds and launch open-ended funds. Lifting the rigidity in restrictions designed
for the mutual funds investments would make the system more flexible and beneficial.
This project is all about the performance and knowledge of the
concept of Mutual Fund, and its need, method and
advantages
for investors.This report is whole about the analysis of necessity
of mutual fund for investors, requirement of Mutual fund,
comparison of HDFC Mutual Fund with other companies Mutual
Fund.
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