...Managerial Economics - Trends & growth of Mutual fund in India. Mutual Fund: Mutual Fund is an institutional arrangement wherein savings of millions of investors are pooled together for investment in a diversified portfolio of securities to spread risk and to ensure steady returns. These funds bring a wide variety of securities within the reach of the most modest of investors. It is essentially a mechanism of pooling together savings of large number of investors for collective investment with an approved objective of attractive yield and appreciation in value. The Mutual Funds offers different investment objectives such as growth, income and Tax planning. Mutual Funds play vital role in resource mobilization and its efficient allocation to the productive sources of the economic system. Throughout the world, these funds have worked as a reliable instrument of change in financial intermediation, development of capital markets and growth of the Corporate sector. The process of Liberalization, deregulation and reconstruction of the Indian economy has created necessity for efficient allocation of scarce financial resources. In this process of development, Mutual Funds have emerged as strong financial intermediaries and are playing an important role in bringing stability to the financial system and efficiency to the resource allocation process. History Mutual Fund investment traces its origin to the investments of Scottish and English investors in the American West in the 1800s...
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...MUTUAL FUNDING: IMPACT ON THE GHANAIAN ECONOMY A comparative study of two mutual funds companies in Kumasi DEPARTMENT OF BUSINESS STUDIES EDMUNDSON LAWRENCE KOBINA 1.0 INTRODUCTION 1.1 BACKGROUND TO THE STUDY Over the years in Ghana, the private sector has had it difficult raising capital and adequate funds for investment and other business activities, this led to the undertaking of a number of financial sector reforms by the government. The emergence of mutual funds into the Ghanaian financial sector has been as a result of these reforms. This is to facilitate capital generation and savings mobilization for the private sector to help them accomplish their organizational objectives. It has become evidently clear that, to achieve development in the economy in terms of high gross domestic product (GDP), a better per capita income, less unemployment and reduction in inflation, the private sector of the economy should be encouraged to lead in the generation of wealth. Capital for investment in this country (Ghana) is either sought for internally or externally but the Ghanaian government like its’ counterparts in other African countries have been relying heavily on external funds from developed economies and donor communities to be able to implement public sector development policies. This has not been so easy in recent years due to the diversification of these funds to countries such as China and other Asian countries that are now better...
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... TAX SAVING SCHEMES (ANALYSIS AND COMPARISION) ICFAI BUSINESS SCHOOL HYDERABAD MUTUAL FUNDS AT A GLANCE Mutual Fund is an instrument of investing money. Nowadays, bank rates have fallen down and are generally below the inflation rate. Therefore, keeping large amounts of money in bank is not a wise option, as in real terms the value of money decreases over a period of time. One of the options is to invest the money in stock market. But a common investor is not informed and competent enough to understand the intricacies of stock market. This is where mutual funds come to the rescue. A mutual fund is a group of investors operating through a fund manager to purchase a diverse portfolio of stocks or bonds. Mutual funds are highly cost efficient and very easy to invest in. By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. Also, one doesn't have to figure out which stocks or bonds to buy. But the biggest advantage of mutual funds is diversification. Diversification means spreading out money across many different types of investments. When one investment is down another might be up. Diversification of investment holdings reduces the risk tremendously. On the basis of their structure and objective, mutual funds can be classified into following major types: • Closed-end funds • Open-end funds • Large...
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...A REPORT ON “CONSUMER BEHAVIOUR REGARDING MUTUAL FUND, TYPES OF MUTUAL FUND AND INVESTMENT PROCESS” BY MANOJ KUMAR (Enroll No. : 08BS0001652) SUNDARAM FINANCE LTD. Contract/Project/Job Number________________ A Report On “Consumer Behaviour Regarding Mutual Fund, Types Of Mutual Fund And Investment Process” By Manoj Kumar (Enroll No.:08BS0001652) Sundaram Finance Ltd. Date of Submission : May 2009 AUTHORISATION This is to certify that the internship project report titled “Consumer Behavior Regarding Mutual Fund, Types of Mutual Fund and Investment Process” is a bonafide work of Manoj Kumar in original. This report has been prepared under constant supervision in partial fulfillment of the requirement of IBS for the award of MBA Degree for the period of three months (Feb 2009 to May 2009). This project report neither full nor parts has ever before been submitted for awarding of any degree by this B-School or any other B-School. Prof. Puja Aggarwal Mr. Satyapal Faculty IBS Noida Territory Manager- General Insurance Sundaram Finance Ltd. 605-606, Sixth Floor, Ashoka Estate, 24 Barakhamba Road, New Delhi Date : Date : CERTIFICATE OF COMPLETION OF INTERNSHIP PROGRAM This is to certify that Mr. Manoj Kumar has successfully completed the Summer Internship Programme in Sundaram Finance Ltd. for the duration of 3 months (February 09 to May 09) under the supervision of ...
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...1. RESEARCH METHODOLOGY 1. Objectives of the study:- ➢ To study Mutual Fund Industry with specific reference to equity growth oriented schemes. ➢ To compare the performance of 5 open ended equity mutual fund schemes with various financial parameters like Treynor, Jenson and Sharpe Model. ➢ To assess the above-mentioned schemes in-depth and suggest the investors for the same. ➢ To assign ranks to the selected mutual fund schemes and suggest suitable scheme to the investors on the basis of risk and return. 2. Scope of the Study:- ➢ In this study we have selected last 5 years data for 5 equity oriented mutual fund schemes and their performance results. ➢ Due to time constrain, we took only five equity schemes and suggest the desired portfolio for the investors only on the base of above schemes only. ➢ We have taken BSE 100 as the benchmark index for calculation of market return though different funds have compared themselves on different indices. This is to make our study more valid and it is easy to compare performance on one benchmark return basis. ➢ We have considered the rate of interest of National Savings Certificates as the Risk free rate of return. 3. Criteria & Tools for Evaluation:- This study only includes five open ended equity funds during the last 5 years. Moreover the result of the study is only based on following measures. ➢ Treynor Measure ➢ Sharpe Measure ➢ Jenson Model 1.4 Research design:- ...
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...An Outlook on the Evolution, Scope and Growth Potential of the Mutual Funds Industry In Deyvaansh Misra Contents INTRODUCTION 3 A RETROSPECTIVE VIEW OF MUTUAL FUNDS 5 THE FUTURE LIES ON THE BRINK OF THE HORIZON 6 CONCLUSION 10 INTRODUCTION Shakespeare once wrote, ‘out of this nettle, danger, we pluck this flower, safety'. The Indian mutual fund industry has witnessed significant growth in the past few years driven by several favourable economic and demographic factors such as rising income levels and the increasing reach of Asset Management Companies (AMCs) and distributors. However, after several years of relentless growth, the industry witnessed a fall of 8 percent in the assets under management in the financial year 2008-09 that has impacted revenues and profitability. Recent developments triggered by the global economic crisis have served to highlight the vulnerability of the Indian mutual fund industry to global economic turbulence and exposed the increased dependence on corporate customers and the retail distribution system. It is therefore an opportune time for the industry to dwell on the experiences and develop a roadmap through a collaborative effort across all stakeholders, to achieve sustained profitable growth and strengthen investor faith and confidence in the health of the industry. Innovative strategies of AMCs and distributors, enabling...
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...Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS Peter N. Ireland Department of Economics Boston College irelandp@bc.edu http://www2.bc.edu/~irelandp/ec261.html Chapter 2: An Overview of the Financial System 1. Function of Financial Markets and Financial Intermediaries 2. Structure of Financial Markets Debt and Equity Markets Primary and Secondary Markets Exchanges and Over-the-Counter Markets Money and Capital Markets 3. Financial Instruments Money Market Instruments Capital Market Instruments 4. Role of Financial Intermediaries Transaction Costs and Economies of Scale Risk Sharing and Diversification Adverse Selection and Moral Hazard 5. Types of Financial Intermediaries Depository Institutions (Banks) Contractual Savings Institutions Investment Intermediaries This chapter provides an overview of the financial system in the US economy by describing the various types of financial markets, financial instruments, and financial institutions or intermediaries that exist. 1 The chapter begins with a general statement that clarifies what function financial markets and financial intermediaries have in the economy as a whole. It then deals more specifically with: The structure of financial markets and the ways in which different types of financial markets can be distinguished. Here, it discusses debt versus equity markets, primary versus secondary markets, exchanges versus over-the-counter markets, and money versus capital markets. The various types of financial instruments, including...
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...ReseaRch PaPeR Commerce Volume : 3 | Issue : 1 | January 2013 | ISSN - 2249-555X A Study About Awareness of Mutual Funds Among the Investors of Navsari District Keywords Mutual Funds, Investment alternatives, Investors’ perception. Dr. M. P. Desai Head, Department of Accountancy,Udhna Citizen Commerce College, Surat. Residence: 50,Niral Nivas, Ashapuri society,Vijalpore road, Navsari,396445, Gujarat. Mr. Mayur K Joshi Asst. Prof., Department of Accountancy,Udhna Citizen Commerce College, Surat. Residence: Vinay readymade, 7, shopping center,Dudhiya talav, Navsari,396445, Gujarat. ABSTRACT The financial securities include ownership securities (like shares, mutual fund units) and creditorship securities (like debentures, bonds). Ownership securities are more risky than creditorship securities. Investment decisions relating to ownership securities involve planning of investment strategies according to the extent of diversification desired by individuals. Investors can reduce risk and maximize returns by way of mutual fund investments, enjoying the expertise of professional fund management. In India, Mutual fund industry is an organised financial system, accessible to individual investors having varied needs and options. In order to identify awareness of mutual funds among the investors of Navsari District, a careful collection of primary data through questionnaire was made. Introduction Financial system comprises financial institutions, services, market and...
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...CHAPTER 1 INTRODUCTION INTRODUCTION Much of the empirical research on mutual funds has not given any significant contribution for the mutual fund investor. Unfortunately many mutual fund investor have probably never heard about these research results or their implications. They have heard some rules of thumb guidelines from their brokers or peers about how to select a particular fund. The purpose of this present study is to identify the selection criteria, investors seem to use in selecting a mutual fund institution that suits the investors investment objective and also to identify the factors that are responsible for the selection of schemes floated by these organisations. Further it attempts to identify the reactions from the respondents' namely mutual fund unit holders of Mysore towards the performance of the different schemes. The researcher has employed interview schedule for the collection of data to elicit views of the Mutual Fund investors. Individuals from all walks of life have been showing increasing participation in the stock market, a place where one can see their money doubling in a period of time or disappearing depending on how they play the game. With the stupendous growth in the capital market, direct investment in the stock market has definitely become next to impossible. And yet investors undertake investments with minimal risks of the working of stock exchanges. But in order that investments prove profitable; investors...
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...Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS Peter N. Ireland Department of Economics Boston College irelandp@bc.edu http://www2.bc.edu/~irelandp/ec261.html Chapter 2: An Overview of the Financial System 1. Function of Financial Markets and Financial Intermediaries 2. Structure of Financial Markets Debt and Equity Markets Primary and Secondary Markets Exchanges and Over-the-Counter Markets Money and Capital Markets 3. Financial Instruments Money Market Instruments Capital Market Instruments 4. Role of Financial Intermediaries Transaction Costs and Economies of Scale Risk Sharing and Diversification Adverse Selection and Moral Hazard 5. Types of Financial Intermediaries Depository Institutions (Banks) Contractual Savings Institutions Investment Intermediaries This chapter provides an overview of the financial system in the US economy by describing the various types of financial markets, financial instruments, and financial institutions or intermediaries that exist. 1 The chapter begins with a general statement that clarifies what function financial markets and financial intermediaries have in the economy as a whole. It then deals more specifically with: The structure of financial markets and the ways in which different types of financial markets can be distinguished. Here, it discusses debt versus equity markets, primary versus secondary markets, exchanges versus over-the-counter markets, and money versus capital markets. The various types of financial instruments...
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...such as the justification for future research in the area. A good literature review is characterized by: a logical flow of ideas; current and relevant references with consistent, appropriate referencing style; proper use of terminology; and an unbiased and comprehensive view of the previous research on the topic. Here we discuss on different reviews related to the following: 2.1 Investors and Investment 2.2 Mutual funds 2.3 Investors Attitude towards Mutual Fund 2.1 Investors and Investments Investors in emerging markets say that they look at market volatility as a good opportunity to increase the level of risk in their portfolio. On the other hand those in the developed markets say that volatility would make them go for an increased allocation in cash and exercise increased caution with regard to investment. “Investors increasing allocation of cash is not because their ability to bear that risk has been impacted”, says Bansal. [1] JOHN C. BOGLE [2] the former CEO of Vangaurd Group Of Mutual Funds, in his article “Six Lessons for Investors - Be diversified and don't assume past performance will continue” on Jan 08, 2009 says, There is almost no limit to the ability of investors to ignore the lessons of the past. This cost them dearly last year. Here are six of the most important of these lessons: 1) Beware of market forecasts, even by experts. 2) Never...
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...A PROJECT REPORT ON Detail Study Of HDFC Mutual Fund Submitted For the partial fulfillment of the requirement for The Degree of MBA Submitted by: MD NABEEL Registration No. –070651940 MBA –IV Trimester SESSION (2007-2009) INTERNAL GUIDE JYOTSHNA RAI IIPM - School Of Management BIJU PATNAIK UNIVERSITY OF TECHNOLOGY ROURKELA, ORISSA. DECLARATION I do hereby declare that the project entitled “DETAIL STUDY OF HDFC- MUTUAL FUND” submitted as a part of the requirement for the partial fulfillment of Master of Business Administration at BIJU PATNAIK UNIVERSITY OF TECHNOLOGY, ORISSA is an original piece of work done by me under the guidance of • Mr Manmohan Mohapatra (Branch manager) • Mr Sanket Swaroop • Mr Vikash Gupta. At HDFC Mutual Fund , Rourkela has not been submitted for award of any degree else where in part or full. Name:-Md Nabeel Regd :-0706519040 [pic] certificate of the Guide This is to certify that the work entitled “DETAIL STUDY OF HDFC- MUTUAL FUND” is a piece of Summer Project Report done by MD NABEEL, student of MBA IV Trimester IIPM SCHOOL OF MANAGEMENT, Kansbahal , Rourkela bearing Reg. No 0706519042 under my guidance and supervision for partial fulfillment of MBA curriculum of BIJU PATNAIK UNIVERSITY...
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...when it comes to saving for retirement. You don’t want to be too cautious (relying on just treasury bills that have barely kept up with inflation the last 70 years being an extreme example.) You don’t want to put too much weight into your stocks making your portfolio too risky and possibly jeopardizing your earnings and prolonging your retirement date. Your ability and willingness to take risk directly relates to your expected returns. A lot of factors go into your ability to generate returns through mutual funds, stocks and bonds. [pic] Google images Your age also plays a role in how you will invest for your retirement. The older you are and the closer you are to retirement, your tolerance for risk in your portfolio will go down. When you are close to retirement, the last thing you can afford is losing your savings. If you are younger and are many years away from retirement you will be more inclined to put more weight into stocks because if the market takes a downturn you have more time to recover your losses. Whether you are employed or not determines your willingness to take risk in terms of your ability to replace financial losses that may occur with your active income. Also an often overlooked factor that comes with investing for retirement is your psychological ability to tolerate the stress of a serious downturn in the market. Getting Started: A good starting point for employees in the work force saving for retirement...
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...EQUITY DIVERSIFIED MUTUAL FUNDS V/s DIRECT EQUITY: A comparative study Submitted in Partial Fulfillment for the Degree of Bachelor of Business Studies By Akshat Jain (Roll No. – 08/BBS/7160 Batch: 2008-2011 ) To DEEN DAYAL UPADHYAYA COLLEGE University of Delhi Shivaji Marg, Karampura New Delhi-110015 | | | ACKNOWLEDGEMENT Encouragement motivates a person towards one’s aim while guidance helps one to achieve it. Both encouragement and guidance take one towards success in one’s works. It would be difficult and almost impossible to achieve excellence without the blessings of God above and of elders. I convey my heartfelt affection and accord my deep sense of gratitude to Dr. Deepa Kamra, Faculty Guide for inspiring guidance, constructive criticism, unlimited interest and innovative ideas throughout the pursue of this manuscript. Akshat Jain DECLARATION I Akshat Jain have completed the Summer Training Project titled “EQUITY DIVERSIFIED MUTUAL FUNDS V/S DIRECT EQUITY” under the guidance of Dr. Deepa Kamra in the partial fulfillment of the requirement for the award of degree of Bachelor of Business Studies from Deen Dayal Upadhyaya College, Delhi University. This is an original piece of work & I have neither copied and nor submitted it earlier elsewhere. Akshat Jain Certificate from Internal Guide ...
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...about the products of the company and their position in the market. The Mutual fund is one of them who are performing their works very effectively. As we are the students of BBA department, we have to learn about the mutual fund investment system analysis of a firm. That’s why we have decided to analysis on mutual fund that renown in the world. 1.1 Origin of the Report This report is a part of “Investment Management” course under the BBA curriculum. As we are the students of BBA department, we have to learn about the financial system analysis of financial firms. That’s why we have decided to analysis on mutual fund. 1.2 Objectives • To improve our knowledge • To make us experienced • To develop our skill. • To provide brief information about our analysis 1.3 Problem and Purpose 1.3.1 Problem Statement This report seeks to address the following requirement: “To study about the mutual fund, its overall process analysis followed by firm. 1.3.2 Purpose of the Report The objective of the report is- “To acquire the practical knowledge of Mutual fund analysis followed by the firm. 1.4 Scope and Limitation 1.4.1 Scope This paper includes financial system in Bangladesh. Then Structure of Financial System, History of Bangladesh Capital Market, mutual funds, types of mutual fund schemes, set up of mutual fund, invest in mutual fund and rights of a mutual funds holder. • Our time was short • We are not experienced ...
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