PROJECT SYNOPSIS

Student Name Roll Number Specialization : Prateek Jha : 1305010859 : Finance Management

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Comparatives Study of Mutual Funds Offer by Various Companies in Indian Market

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1. INTRODUCTION 1.1 INDUSTRY PROFILE

What is Life Insurance? Traditionally, life insurance used to provide financial protection to your family and dependents in the event of any unforeseen event or your untimely death. But nowadays, life insurance has become synonymous with savings, wealth generation and protection. Life insurance companies-these days-provide plans through which you can not only secure the financial future of your dependents in the event of death but also build wealth for them and be financially secure from eventualities such as disease and disability. Why Life Insurance? Life insurance is required because of the following factors Retirement planning takes care of your retirement, as there is no guarantee of a consistent income post retirement. The expenses you may incur in future will keep increasing due to inflation, and thus even a fluctuation in your income may lead to a compromised lifestyle. Savings plan enables individuals to secure their financial future by helping you to get attractive returns. Life insurance takes care of those who are financially dependent on you even when you are not around to look after them.

Different Types of Life Insurance Plans Traditional life insurance plans: Traditional life insurance plans, also known as non-unit linked insurance plans, ensure that the majority of the investments made by the policyholders are in to safe debt instruments. These plans are ideal for risk-averse investors as they provide assurance of returns to a large extent. Unit Linked Insurance Plans (ULIPs): ULIPs, also known as market-linked life insurance plans, allow for investments made by the policyholders to get exposed to equities. ULIPs are suited for customers who aim for wealth creation over a long term. Why Kotak Life Insurance? Kotak Life Insurance (Kotak Mahindra Old Mutual Life Insurance Ltd.) is one of the leading life insurance companies in India. It is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc, South Africa, one of the biggest life insurance companies

in the world. We are committed to using our expertise in securing your future and ensuring that your investments keep giving you lucrative returns.

1.2 COMPANY PROFILE

Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26 joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc. The company started operations in 2001, and strives to offer its customers outstanding value through high customer empathy, consistent and benchmarked service and a suite of products that leverage the combined prowess of protection and long term savings. The company covers over 4 million lives and is one of the fastest growing insurance companies in India. Established in 1985, the Kotak Mahindra group is one of India's leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received a banking license from the Reserve Bank of India (RBI). With this, KMFL became the first non-banking finance company in India to become a bank Kotak Mahindra Bank Limited. The consolidated balance sheet of Kotak Mahindra group is over 1.17 lakh cr and the consolidated net worth of the

Group stands at 18,455 cr (approx US$ 3.0 billion) as on December 31, 2013. The Group offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The Group has a wide distribution network through branches and franchisees across India, and international offices in London, New York, Dubai, Abu Dhabi, Mauritius and Singapore. Old Mutual provides life assurance, asset management, banking and general insurance to more than 14 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999. In the year ended 31 December 2012, the Group reported adjusted operating profit before tax of 1.6 billion (on an IFRS basis) and had 262 billion of funds under management from core operations.

2. RESEARCH METHODOLOGY 2.1 RESEARCH PROBLEM

1. To project Mutual Fund as the productive avenue for investing activities. 2. To show the wide range of investment options available in Mutual Funds by explaining its various schemes. 3. To compare the schemes based on Sharpes ratio, Treynors ratio,

Coefficient, Returns and show which scheme is best for the investor based on his risk profile. 4. To help an investor make a right choice of investment, while considering the inherent risk factors.

2.2. WHY IS THIS PROBLEM SIGNIFICANT / NEED FOR THE STUDY

The projects idea is to project Mutual Fund as a better avenue for investment on a long-term or short-term basis. Mutual Fund is a productive package for a layinvestor with Mutual Fund limited is finances, this project creates an awareness Fund is a that the

a worthy

investment

practice.

Mutual

globally

proven instrument. Mutual Funds are Unit Trust as it is called in some parts of the world has a long and successful history, of late Mutual Funds

have become a hot favorite of millions of people all over the world. The driving force of Mutual Funds is the safety of the principal guaranteed, plus the added advantage of capital appreciation together with the income earned in the form of interest or dividend. The various schemes of Mutual Funds provide the investor with a wide range of investment options according to his risk bearing capacities and interest besides; they also give handy return to the investor. Mutual Funds offers an investor to invest even a small amount of money, each Mutual Fund has a defined investment objective and strategy. Mutual Funds schemes are managed by respective asset managed companies sponsored by financial institutions, banks,

private companies or international firms. A Mutual Fund is the ideal investment vehicle for todays complex and modern financial scenario. The study is basically made to analyze the various open-ended

equity schemes of different Asset Management Companies to highlight the diversity of investment that Mutual Fund offer. Thus, through the study one would understand how a common man could fruitfully convert a pittance into great penny by wisely investing into the right scheme according to his risk taking abilities.

2.3. RESEARCH METHODOLOGY

The Methodology involves randomly selecting Open-Ended equity schemes of different fund houses of the country. The data collected for this project is basically from two sources, they are:DATA COLLECTION For the purpose of the study data has been collected through two sources among that 1. Primary source 2. Secondary source PRIMARY SOURCE: For the primary source data collected through structured questionnaire divided into three categories those are to measure the environmental, physiological and psychological factors stress. Totally twenty two questions and with four demographic questions . SECONDARY SOURCE: For the secondary source I collected information from the company websites , company broachers, from journals and articles about the company.

HYPOTHESIS:The Hypothesis of the study involves Comparison between: 1. Kotak Opportunities fund. 2. Reliance Equity Opportunities fund. 3. Franklin India Flexi fund. 4. HDFC Core & satellite fund. 5. HSBC India Opportunities fund.

3. TOOLS / TECHNIQUES TO BE USED FOR DATA ANALYSIS

Statistical tools Descriptive statistics Charts and graphs

4. EXPECTED RESULTS OF THE STUDY

The Asset Management Company must design the portfolio in such a way, to increase the returns. The Asset Management Company must design the portfolio in such a way, to lessen the risk that is common in the market. The Asset Management Company must dedicate itself, because it

motivates the investors and potential investors to invest in Mutual Funds. The Asset Management Company must manage the Fund efficiently

and with dedication to earn the goodwill of the public.

The Asset Management Company must make the most advantageous use of print and electronic media in order to motivate the investors and potential investors to invest in Mutual Funds.

5. LITERATURE REVIEW / RELATED RESEARCH OUTCOMES

A company that collected money from a group of people with common investment objectives to buy different securities is called mutual fund. The collected holding of these securities was known as its portfolio Mark (2007). According to Teri (2007) mutual fund is a professional investment company which managed collection of stocks, bonds, or other securities owned by a group of investor. Eachmutual fund had a fund manager who purchased and sold the funds investment according to the fund goals. Fund managers were responsible to analyze the economic conditions, industry trends, government regulations and the impact on stocks before selecting the securities for investment. Mutual funds provided investment facility to the small investors who cannot afford to invest the large sums of money Teri (2007). Basically these small investors invested money into a common fund and handover the investment decision to fund manager. Many people often regard the beginning of Foreign and Colonial Government Trust as the beginning of modern day mutual funds. But the beginning of mutual funds dates

back to Seventeenth century when the first "pooling of money" for investments was done in 1774. Following the financial crisis of 1772-1773 a Dutch merchant Ketwich invited investors to come together to form an investment trust under the name of Eendragt Maakt Magt David (2007). The purpose of the trust was to provide diversification at low cost to the small investors.

6. WORK DONE
list of functionaries met; documents received from company website; registers and files seen through online; number of samples collected/questionnaires filled

7. BOOKS, SITES, JOURNALS, MAGAZINES REFERRED

Laymans Guide to Mutual Funds By OUTLOOK Mutual Funds Primer By ECONOMIC TIMES www.amfiindia.com www.kotakmutual.com www.reliancemutual.com