MUTUAL FUNDS: Comparison of Various Schemes Under Equity ”
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A Project Report On “MUTUAL FUNDS: Comparison of various schemes under equity ” Submitted By: Yashika Sharma In partial fulfillment of the award of the degree of Master of Business Administration University School of Management Kuruksheta University Kurukhetra CERTIFICATE This is to certify that this project report “Mutual Funds: Comparison of various schemes under equity” is the bona fide work of Yashika Sharma who carried out the project under my supervision Date: (Signature) Anil Kumar Kapoor Manager- financial Planning Master Trust Ltd. ACKNOWLEDGEMENT It gives me immense pleasure to present the project report entitled “MUTUAL FUNDS: Comparison of various schemes under equity” Preservation, inspiration and motivation have always played a key role in the success of any venture. In the present world of competition and success, training is like a bridge between theoretical and practical working; willingly I prepared this particular Project. I am highly indebited to Mr. Chawla, Ms. Rinkoo Vashisht & Mr. Kapoor for their guidance and constant supervision as well as for providing necessary information regarding the project and also for their support in completing the project. I am also thankful to all the friends and family members. Yashika Sharma TABLE OF CONTENT S.NO. PARTICULERS PAGE NUMBER 1. Executive Summary 2. Objective 3. Introduction of the company – Master Trust LTD. 4. Mutual funds : Basics, History, Types & pros and cons 5. Equity funds explained 6. Fund houses: ICICI prudential Reliance SBI 7. Comparison of Various schemes under equity 8. Conclusion 9. Latest Amendments in Mutual Funds 10. References EXECUTIVE SUMMERY The Mutual Fund is an untapped area which is bound to be the next growth story. While this area had been on a downward track since 2008, it has started showing signs of recovery. This project emphasis on, “Mutual Funds: Comparison of various schemes under equity”, conducted at Master Trust Ltd. In this project I have analyzed the Mutual Funds Schemes, particularly the Equity Diversified open ended (growth) schemes and compared schemes of various fund houses, namely ICICI PRUDENTIAL, SBI and RELIANCE to evaluated in which scheme to invest & from which to switch and current performance and position of these schemes as well. Taking into consideration the various mutual fund schemes under equity I have chosen: • Future Outlook • Quaterly, Half Yearly and Yearly performance • Top holdings and weightage to them • Top sectors and weightage to them • Latest NAV and • Management • Entry & Exit loads As the various tools for evaluation. OBJECTIVES OF THE STUDY Primary Objective: Comparison of similar schemes of different fund houses, their evaluation and which scheme is best to invest and from where the money should be taken out. Study of various fund houses, their management and the future outlook. Secondary Objective: Study of the basic Mutual Fund Industry Fundamental Analysis MASTER TRUST LTD OVERVIEW Master Trust Group is one of the leading financial services company in India. We have a strong belief in nurturing investment culture, attitude and inculcating a very strong approach towards value investing forms the central part of any sound investment philosophy. With an impeccable track record in client servicing of over two decades, we have now grown to 650+ strong employee organizations with over 1, 50,000+ client relationships. At Master Trust, our endeavor is to constantly meet every financial need of our esteemed clients. “mastertrust” - is a one point shop for all the investment needs of a customer. The one-stop destination is specifically targeted towards the retail customers who require a very strong relationship driven approach towards value investing. The philosophy of “mastertrust ” has its genesis from Master Trust group’s belief in nurturing the investment culture towards value investing. MISSION To always earn the right to be our clients’ first choice through personal & social wealth maximization VISION To be well diversified financial shop for wealth creation and being an ideal service provider in our domain of business CORPORATE PHILOSOPHY Becoming an expert at anything takes a strong will, unyielding determination and pure ability VALUE SYSTEM GROUP MILESTONE YEAR MILESTONE 1985 The seeds of the group were swon as arora financial consultants(P)Ltd. (later converted into master trust ltd.) 1986 Acquired membership of Ludhiana stock exchange under the name of M/S H Arora and co (later converted intoa corporate membership as master share and stock brokers ltd.) 1987 Became members of DSE (Delhi Stock Exchange) under the name of M/s harjeet arora and co. (later converted into a corporate membership as MTL share and stock brokers ltd.) 1993 Acquired the status of SEBI accredited category| Merchant Bankers Became dealers of OTCEI (Over The Counter Exchange Of India) 1994 Master Capital Services Ltd. Became corporate members of NSE (National Stock Exchange of India Ltd.) 1995 Master Trust Ltd. Came out with an IPO (Initial Public Offer) of equity share & fully convertible debentures Upgraded dealership of OTCEI to membership 1997 Became RBI approved Fully Fledge Money Changers 1999 Launched depository services as a Depository Participant of NSDL 2001 Launched depository services as a Depository Participant of CSDL Commenced trading in Derivatives Segments in NSE 2002 Entered into insurance business as corporate agents for Life and General Insurance 2004 Became member of NCDEX (National Commodity Derivatives Exchange Ltd.) and MCX (Multi Commodity Exchange of India Ltd.) Introduced Virtual Private Network (VPN) Became insurance broker under name of M/s Master Insurance Brokers. 2006 Acquired the membership of BSE (Bombay Stock Exchange Ltd.) Commenced internet trading and margin funding against shares 2007 Set up regional offices in Baroda, Kolkata and Hyderabad 2008 Introduced Currency Derivatives Trading Through MCX-SX & NSE 2009 Established an arbitrage desk implemented Master Swift Established CRM 2010 Trading turnover peaks US$ 1 billion/day of group companies Became Member of NSEL and ACE Arbitrage desk activated spot commodity rebranding exercise of retail services BOARD OF DIRECTORS Mr. Harjeet Singh Arora (F.C.A., F.C.S.), is the Managing Director of the Company and has more than 25 years of experience in corporate, financial and merchant banking matters. He is one of the promoters of the company and has been involved in the secondary and primary markets right from the incorporation of the company. Mr. R.K.Singhania (F.C.A.) is well known personality in the corporate circles. He is the Director of the Company and was formerly the Director (Finance) with India’s premier Oswal group for more than 10 years. He is one of the promoters and has rich experience in the corporate M&A space with deals worth Rs. 50 billion executed in FY 2005-06 alone. He is having more than 25 years experience in corporate strategy, tax planning & financial engineering internationally. Mr. Pawan Chhabra (F.C.A.) is having a rich experience of more than 20 years in primary and secondary share market and merchant banking activities. His primary responsibility includes liasioning with SEBI, RBI, NSE, BSE, MCX, NCDEX and FI/ FII business development. Mr. G.S. Chaw la (B.E., M.B.A., D.B.F.) has worked with a public financial Institution for more than 12 years. He has 15 years rich experience of capital market, finance and other related activities. His primary responsibility involves development of PMS business, advisory & research, merchant banking, insurance broking and technology initiatives. Mr. Harinder Singh (B.Com, I.C.W.A. —inter) has been monitoring the secondary market operations of the company for the last 12 years. He looks after compliances, secondary & commodity market, margin funding, mutual fund distribution, IPOs, arbitrage and business development. Mr. Sanjay Sood (F.C.A.) is having more than 15 years of experience in Merchant Banking, Foreign Exchange Management, Financial and Retail Services. He is responsible for looking after the FX business and the depository business. MUTUAL FUNDS BASICS OF MUTUAL FUNDS Before explaining what is mutual fund, it’s very important to know the area in which mutual funds works, the basic understanding of stocks and bonds. STOCKS Stocks represent shares of ownership in a public company. Examples of public companies include Reliance, ONGC and Infosys. Stocks are considered to be the most common owned investment traded on the market. BONDS Bonds are basically the money which you lend to the government or a company, and in return you can receive interest on your invested amount, which is back over predetermined amounts of time. Bonds are considered to be the most common lending investment traded on the market. There are many other types of investments other than stocks and bonds (including annuities, real estate, and precious metals), but the majority of mutual funds invest in stocks and/or bonds. MUTUAL FUNDS A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund: Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns.