Escolar Documentos
Profissional Documentos
Cultura Documentos
By
Surendra Kumar Gautam
(8NBKR033)
Table of contain
1. Introduction
2. Literature Review
3. Progress Report
4. Questionnaire
5. References
Introduction: The project work entitled “A COMPARATIVE STUDY ON
THE MUTUAL FUNDS AND STOCK MARKET/SHARE MARKET (EQUITY
MARKET), WHICH EVER IS BETTER INVESTMENT OPTION FROM
INVESTOR’S POINT OF VIEW.” is mainly conducted to identify the
factors which will motivate the investors to invest their money, and the
organization focus on their investor. Its effects on the performances of
investor in the INDIAN INVESTMENT Psychology.
Study is those investors invest his/her money in the mutual fund or stock
(capital) market. Comparison between mutual funds and share market.
Better investment option. Investor’s mind set.
Sujit Sikidar and Amrit Pal Singh (1996) carried out a survey with an
objective to understand the behavioral aspects of the investors of the
North Eastern region towards equity and mutual funds investment
portfolio. The survey revealed that the salaried and self employed formed
the major investors in mutual fund primarily due to tax concessions. UTI
and SBI schemes were popular in that part of the country then and other
funds had not proved to be a big hit during the time when survey was
done.
Shankar (1996) points out that the Indian investors do view Mutual
Funds as commodity products and AMCs, to capture the market should
follow the consumer product distribution model. Since 1986, a number of
articles and brief essays have been published in financial dailies,
periodicals, professional and research journals, explaining the basic
concept of Mutual Funds and highlight their importance in the Indian
capital market environment. They touch upon varied aspects like
Regulation of Mutual Funds, Investor expectations, Investor protection,
Trend in growth of Mutual Funds and some are critical views on the
performance and functioning of Mutual
Atmaramani (1996),
Subramanyam (1999),
Krishnan (1999),
Raja Rajan (1997), and the relationship between stage in life cycle of
the investors and their investment pattern was studied
Raja Rajan (1998). From the above review it can be inferred that Mutual
Fund as an investment vehicle is capturing the attention of various
segments of the society, like academicians, industrialists, financial
intermediaries, investors and regulators for varied reasons and deserves
an in depth study. In this paper, an attempt is made by the author, mainly
to study the factors which influence the investors in their selection of the
fund/scheme.
Guidance of present research: The stocks vs. mutual funds issue has
always been a biggie for individual investors. But the question of whether
you should go it alone or turn over your money to a mutual fund who'll
invest it for you is even more critical today, if only because this uncertain
economy and volatile market make the rewards for success and the cost
of failure that much higher.
Clearly, the answer will vary from person to person, depending on such
factors as how much money you have to invest, how well versed you are
in the ways of the financial markets and how much time and effort you
want to put into your finances. It's also clear that each approach has
advantages and drawbacks. With mutual funds, you get convenience, a
diversified portfolio and the security of knowing that you have an
experienced stock picker working full time on your behalf. On the other
hand, you have less control over your investments - not just which ones
you choose, but when you recognize gains. That can be an issue when it
comes to taxes. If the fund sells enough shares at a profit so that the fund
has realized capital gains in a given year, you'll have to pay tax on a share
of those gains even if you haven't sold shares of the fund (assuming you
hold the fund in a taxable account). If you decide to buy stocks on your
own, you definitely have more control over what you own and when you
sell. But you've also got to be willing to devote more time and attention to
your investments.
But even that's not enough. You've also got to be able to assess whether
it's selling at an attractive price. If a company has solid earnings and an
impeccable balance sheet but is so popular that it's trading at a bloated
share price, buying it may be an invitation to subpar returns.
There are many ways you can develop stock-picking skills. CNNMoney's
Money 101section has easy-to-read lessons on everything from assessing
stocks to putting together a portfolio. The American Association of
Individual Investors also offers lots of information about stock investing
that’s geared toward beginners.
But until Investor at least familiarizes yourself with the basics of stock
investing, stick with funds (or at least keep all but a tiny portion of your
money in funds).
If a company's potential has dimmed, you may want to sell some or all of
your shares and plow the proceeds into a firm that has a rosier future.
Conversely, if one of your stocks has racked up such huge gains that it
now represents an outsize percentage of your portfolio, you may consider
selling some shares to avoid having too much riding on one stock.
There may also be times when you can turn the tax system to your
advantage, say, by selling shares that are trading for less than you paid
for them and then using the loss to trim your tax bill.
The point to buying individual shares is that you think you bring
something to the table that adds value and can boost your return,
expertise at valuing securities, and a sense of discipline that prevents you
from buying or selling on emotion. But if all you're going to do is buy on
someone else's say so - in other words, substitute their judgment for
yours - you'll save yourself a lot of time, energy and money by
acknowledging that upfront and sticking to funds.
A. Sample Selection The database was screened for investment funds with the following
characteristics:
1. To understand the savings avenue preference, scheme preference and objectives for
investment.
2. Respondent ranks the preferences on ranking scale.
3. Variables were identified through the brainstorming section and evidence from past
research.
4. 14 variables identified in the evaluation process that are followed.
a) fund Performance record
b) Reputation or brand name
c) Portfolio of investment
d) Withdrawal facilities
e) Tax benefit
f) Entry & Exit load
g) Minimum Initial Investment
h) Reputation of firm
i) Reorganization of brand name
j) Expecting in managing money
k) Past performance in term of risk & return
l) Investment objective in advertisement
m) disclosure of NAV on every day
n) Disclosure of deviation of investment from the original pattern
Deviations/gaps: - there are some deviation and gaps which is found in the present
study that’s followed.
On
“A COMPARATIVE STUDY ON THE MUTUAL FUNDS AND STOCK MARKET/SHARE
MARKET (EQUITY MARKET), WHICH EVER IS BETTER INVESTMENT OPTION FROM
INVESTOR’S POINT OF VIEW”
Q1 Name:-
Age:-
Add:-
Q2 Qualification:-
Graduation/PG Under Graduate Others
Q5 What kind of investments you have made so far? Pl tick (√). All
applicable.
Shares/Debenture Mutual Fund
s
Q7 Are you aware about Mutual Funds and their operations? Pl tick (√).
Yes No
Q8 Are you aware about share market and their operation? Pl tick (√).
Yes No
Highly
favorabl Some what Not very Not at all
e Favorable favorable favorable favorable
shares
Mutual funds
Q10 You prefer investment in mutual fund due to (Rank from 1to 8
down).
Safety Liquidity
Tax diversification
Benefit benefit
Q11There are many quality that could affect your selection of investment
scheme, Please indicate importance of following in your decision.
Highl
y
Impor Importan Some what Not very Not at all
tant t Important Important important
Portfolio of investment
Withdrawal facilities
Tax benefit
Reputation of firm
Investment objective in
advertisement
References:
1. Agarwal, G.D., 1992, “Mutual Funds and Investors Interest”, Chartered Secretary Vol.22,
No.1, 23-24.
2. Ajay Srinivasan, 1999, “Mutual Funds: The New Era”, Chartered Secretary A 262.
3. Anjan Chakrabarti and Harsh Rungta, 2000, “Mutual Funds Industry in India: An indepth
look into the problems of credibility, Risk and Brand”, The ICFAI Journal of Applied
Finance, Vol.6, No.2, April, 27-45.
4. Atmaramani, 1996, “Restoring Investor Confidence”, The Hindu Survey of Indian Industry,
435-437.
5. Syama Sundar, P.V., 1998, “Growth Prospects of Mutual Funds and Investor perception
with special reference to Kothari Pioneer Mutual Fund”, Project Report, Sri Srinivas Vidya
Parishad, Andhra University, Visakhapatnam
6. Ippolito, R., 1992, “Consumer reaction to measures of poor quality : Evidence from Mutual
Funds”, Journal of Law and Economics, 35, 45-70
7. Madhusudan V. Jambodekar, 1996, Marketing Strategies of Mutual Funds – Current
Practices and Future Directions,Working Paper, UTI – IIMB Centre for Capital Markets
Education and Research, Bangalore.
8. Sujit Sikidar and Amrit Pal Singh, 1996, Financial Services : Investment in Equity and
Mutual Funds – A Behavioral Study, in Bhatia B.S., and Batra G.S., ed., Management of
Financial Services,Deep and Deep Publications, New Delhi, Chapter 10, 136-145.
9. Sandeep Bamzai, 2000, “Meltdown blues impact industry”, Business India April,21 –
Sept.3, 120-132.
10. Krishnan, M.A., 1999, “Moving into growth mode”, The Hindu Survey of Indian Industry.
11. Raja Rajan V., 1997, “Chennai Investor is conservative”, Business Line , Feb. 23.
12. Raja Rajan, 1997, “Investment size based segmentation of individual investors”,
Management Researcher, 3 (3 & 4), 21-28.
13. Raja Rajan, 1998, “Stages in life cycle and investment pattern”, The Indian Journal of
Commerce, 51 (2 & 3), 27 – 36. 112-114.