Comparitive study of mutual funds Essay

Investing in uncouth notes provides a total solution for the investing needs. With a advantageously-designed portfolio of mutual cash, the investor can have his own mob of professionally managed investments, even with a small initial investment. Mutual fund is a kind of self-reliance that manages the pool of money collected from various investors and it is managed by a team of professional fund managers (usually called an addition counsel Company) for a small fee.An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and sympathetic assets. Mutual funds are operated by money managers, who invest the funds capital and stress to produce capital gains and income for the funds investors. A mutual funds portfolio is structured and keep to match the investment objectives stated in its prospectus.The Indian Mutual fundbusiness has passed through trey phas es. The first phase was between 1964 and 1987, when the only player was the Unit Trust of India, which had a total asset of Rs. 6,700/- crores at the end of 1988. The second phase is between 1987 and 1993 during which period 8 funds were established (6 by banks and one each by LIC and GIC). The total assets beneath management had grown to Rs. 61,028/- crores at the end of 1994 and the subdue of schemes were 167.The third phase began with the entry of underground and foreign orbits in the Mutual fund industry in 1993. Kothari Pioneer Mutual fund was the first fund to be established by the private sector in association with a foreign fund. The share of the private players has risen rapidly since then. At surrender 39 asset management companies are working in India. The major mutual fund players in Indian market at present are ABN AMRO Mutual line of descentI have elect HDFC ASSET MANAGEMENT COMPANY from private sector and SBI MUTUAL FUND from public sector for my prove because HDFC is no 1 in private sector mutual fund companies and SBI is no 1 in public sector mutual fund companies. HDFC Asset Management Company Limited (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the Mutual Fund by SEBI on July 3, 2000.In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs. 25.161 crore. SBI Funds Management Ltd. is the investment manager of SBI Mutual Fund. SBI Mutual Fund has been constituted as a trust, sponsored by State swear India. Today the Fund has an investor base of over 2.8 million spread over 23 schemes. With a too large network of collecting branches and investor service centres, SBI Mutual Fund constantly endeavors to get closer to its growing family of investors. fate OF THE STUDYMutual fund companies are introducing various new schemes in the market due to which the investors are generally confused that in what type of schemes they should invest and in which mutual fund company they should invest. The master(prenominal) purpose of this cultivation is to agnize near the performance of various schemes of mutual fund companies of public and private sector in the market. It would help to know about the plan of mutual funds and to know about various schemes under mutual fund which will ultimately benefit the investors to decide about their investment in mutual fund companies.OBJECTIVES OF THE STUDYThe study is being conducted for the following objectivesTo develop understanding of the concept and working of mutual fund schemes. To analyze and compare the performance of selected mutual fund schemes offered by SBI mutual fund and HDFC mutual fund. To study the investors behavior towards the mutual fund schemes offered by public and private sector.RESEARCH METHODLOGYDATA COLLECTIONThe data required for the study is col lected from primary as well as secondary sources. The primary data is collected through self constructed questionnaires which will be to know about the investors behavior towards mutual funds in private and public sector. precedent AREA- AGRA CITYSAMPLE SIZE- 50SAMPLING METHOD- CONVINIENT SAMPLINGThe secondary data is collected from websites.NATURE OF STUDYThe study is analytical which includes comparative analysis of performance of mutual funds in public and private sector as well as analysis of investors behavior towards mutual funds in private and public sector. TOOLS employ FOR ANALYSISFinancial technique such as Sharpe ratio and Standard deviation. Presentation toolsBar graphs and pie chartsREFERENCES1) KHORANA AJAY (2001) cognitive operation Changes following Top Management Turnover Evidence from Open-End Mutual Fund Journal of Financial and numeric Analysis, September 2001 2) Sapar Rao Narayan and Madava Ravindran in his paper entitled Performance Evaluation of Indian Mut ual Funds(2003) www.ssrn.com 3)Panwar Sharad and Madhumathi R. in their study entitled Characteristics and Performance Evaluation of selected Mutual funds in India(2006) Indian Institute of detonator Markets 9th Capital Markets Conference Paper 4)Ranganathan Kavitha in her study entitled A Study of Fund Selection behavior of Individual Investors Towards Mutual Funds with Reference to Mumbai City (2006) Indian Institute of Capital Markets 9thBIBLIOGRAPHYwww.mutualfundsonline.comwww.hdfcfund.comwww.sbimf.comwww.valueresearchonline.com