PROJECT REPORT ON

A SAFE INVESTMENT FOR EVERY COMMON MAN

ABSTRACT Mutual funds have become an important intermediary between households and financial markets, particularly the equity market. Mutual Fund Industry in India is the fastest growing sector in the financial services industry. 1

Mutual Funds a safe investment for every common man is a project, which will endeavor to understand the reasons for rating Mutual Funds as a safe investment and the current environment in which Indian Mutual fund industry operates. Further, it will help to understand the different mutual fund schemes and their analysis. The research will provide a snap-shot of the Indian Mutual Fund industry by giving a brief detail of the concept of mutual fund and the types of mutual funds. In this research, performance of some funds of different AMCs are compared. Performance of various funds will also be measured using various performance evaluation ratios. The idea behind performance evaluation is to find the returns provided by the individual schemes and the risk levels at which they are delivered in comparison with the market and the risk free rates. It is also our aim to identify the out-performers. The objective of the study is to evaluate the performance of Indian Mutual Fund Schemes in a bull and bear market. Limitations Every work has some or the other limitation in its scope. The limitations attached to this project are: The data has been restricted to available data from various journals, articles, data sheets, publications, web sites, etc. The authenticity of the data is subject to errors and emissions. The number of players selected in each sector is limited due to various factors.

The study has been restricted to some specific funds due to time limitation.

Objectives The various objectives for this research are: To understand the need for Investment by Common Man. 2

Various Investments available for Common Man. Mutual Funds as one of the Investments. To give a snapshot of the Indian Mutual Fund Industry. To do a portfolio analysis using secondary data. To evaluate the performance of Indian mutual fund schemes in a bull & bear market.

Methodology and Procedure of Work: Phase I - : The common mans need for investment was understood. The common mans understanding of Investment was analyzed. Discussions with common people were undertaken.

Phase II - : The various investments available to a common man were studied & analyzed. Mutual Funds as one of the Investment was studied and analyzed in depth. Discussions with Investment Advisors were undertaken.

Phase III - : The secondary data was collected by referring to various internet sites, journals, articles, publications and data sheets from various sources. The Data collected was analyzed and the past performance was correlated with the present performance. Phase IV - :

A report is compiled on the basis of analysis done.

ACKNOWLEDGEMENT

It is my pleasure to present this Project Report, which is part of my Management Program. Before I get into thick of the things, I would like to add a few words for the people who were part of this project in numerous ways. People who gave unending support right from the stage the project idea was conceived. I express my gratefulness to my niece Ms. Chitra Sindhwad, for giving me her valuable time in understanding how a Project Report is prepared, by showing me a few Project Reports prepared by her & her friends during her study period and also explaining & guiding me in the Project Subject, i.e Mutual Funds. She has also been my mentor and guide in preparing this Project Report and her brief resume forms a part of this project. Apart from her, I would like to thank the Investment Advisors Mr. Shailesh Kumar and Ms. Nivva Yoosuf in particular and many more, who have given me valuable inputs in preparation of this project. Apart from the above, I have used my practical experience and knowledge gained over the 23 years of my career. The success of this project is because of the cooperation of all. I take no credit for this achievement but take the responsibility of any mistakes and inaccuracies.