23-05-2012, 10:15 AM
A STUDY OF SBI AND RELIANCE MUTUAL FUNDS
A STUDY OF SBI.doc (Size: 354.5 KB / Downloads: 177)
Abstract
In India, 30 types of Mutual funds available in India. A mutual fund is entity that pools the money of many investors …its unit – holders...to invest in different securities. Investments may be in shares, debt securities, money market securities or a combination of these. Those securities are professionally managed on behalf of the unit – holders, and each investor holds a pro – rata share of the portfolio. Entitled to any profits when the securities are selling, but subject to any losers in value as well
Which is the best investment sector in mutual fund? The research of the study show four mutual funds those are – SBI and Reliance Mutual Fund. Why people prefer a particular scheme or company / bank fund? There are so many reasons briefly studied after particular fund or schemes.
For the comparison of mutual fund recently, four different companies/banks current scenario, performing of the scheme last one-three-five years study research help to know which fund is performing well? Meanwhile, after collecting information by the way of different graph, tables is useful to understand past performance may of or may not be sustain in future.
Firstly, the methodological trust is given collection & analysis primary data of visiting 100 customer existing customers of broking house, financial services, banks, government servants etc. Prepaid questionnaire helpful to understanding of customers perceptions
For the secondary data –magazines, booklet, pamphlet, mutual fund books, newspapers, mutual fund & their website.
This comparative study is useful for:
The mutual fund investment is depends on capitalization of asset in different stages managing by asset management company (AMC)
After financial crisis what it effect on Indian financial sector or investor? Is government give security for investor or not?
Today’s world is very dynamic, Due to the globalization different player are come into Mutual Fund sector many Indian companies / banks are coming therefore the mutual fund filed becomes very saturated day by day as a result there is increasing competition among the player to tap and attract the major portion of the prospective customer. The players are adopting new Marketing strategies and always trying to prove them as unique different from other.
Introduction:
What is Mutual Fund?
Mutual fund is a financial intermediary that is established in the form of a trust. It pools the savings of numerous individuals and invests the money thus raised in a diversified portfolio of securities.
TYPES OF MUTUAL FUNDS
There are a variety of funds available across categories. There are funds which invest in growth stocks, funds which specialize in stocks of a particular sector, funds which assure returns to the investors, funds which assure returns to investors, funds which invest in debt instruments, and funds which invest aggressively in the stocks. Thus, we have income funds, balanced funds, liquid funds; gilt funds, index funds, Exchange Traded Funds, sectoral funds, and then there are open-ended and closed-ended funds and assured return funds-----there is a fund for every requirement.
Open & Close ended funds
1. Open ended funds are ones that sell & repurchase units at all times. The Asset under management keeps fluctuating depends investors buying or selling units. An AMC might stop selling units if the fund size becomes too big to manage. However repurchase of units is done at all times.
2. Close ended funds are one that make a one time sale of units. After the offer closes CEF’s do not let the investors buy directly from the fund. To provide liquidity to the investors, these funds are traded in the stock markets. Some times the fund house also offers buy backs at regular intervals. SEBI regulations state that all fund houses should need to give one of the 2 exit options to the customers.
MONEY MARKET MUTUAL FUND:
A Mutual Fund that aims to pay money market interest rates. This is accomplished by investing in sage, highly liquid securities, including bank certificates of deposit, commercial paper, government securities and repurchase agreements. Money market funds make these high interest securities available to the average seeking immediate and high investment safety.
NET ASSET VALUE:
The current market worth of a mutual fund share Calculated daily taking the funds total assets securities, cash and any accrued earnings deducting liabilities, and dividing the remainder by the number of shares outstanding It is an indicator of the capital appreciation of the funds under the scheme as on the date of the NAV
NAV =
M= market value of securities or investment made
O= other assets
L= total liabilities
V= number of units outstanding
PORTFOLIO:
It refers to the group of assets that is owned by the investor.
INTRODUCTION OF MUTUAL FUND
The term mutual fund itself gives its meaning. It means the fund, which is collected and invested mutually or collectively. It acts as investment conduit, which pools the savings of the community and invests large funds in a fairly large and well-diversified portfolio of sound investments. In India presently 36 mutual funds are working. It includes public, private and foreign companies.
Mutual funds can be classified on the parameter of investment objective in four main categories. These categories are:-
1. Equity funds
2. Debt/Income funds
Balanced funds
Liquid funds/ Money market fund
1. There is now vibrant competition in the Indian mutual fund industry even though all the new entrants into this industry since 1987 are small compared to the old established like Reliance-MF which is still the market leader in terms of Assets under Management.
2. A good test of the intensity of competition among competitive or substitutable financial products is the purchase of different products by the investors of different mutual funds. More number of people is investing in more than one mutual fund now..
Conclusions and/or Recommendations:
Conclusion:
Now investment expectations of the people is changing day by day Bank , LIC, Post are the type of old investment . People want fast-quick investment option which growing their returns & money also. That is the main reason people are preferring mutual fund & share market investment .In Mutual Fund people have chance to invest their money in one time different sector. This is the only one type of investment where people have so many choices of schemes, funds to invest their money .
For developing our nation economy it really necessary to do investment in infrastructure, power & growth sector.