Thesis Abstract

Thesis Overview

<p> </p><p><strong>Introduction</strong></p><p><strong>&nbsp;</strong>A Mutual Fund is a body corporate registered with the Securities and Exchange Board of India (SEBI) that pools up the money from individual/corporate investors and invests the same on behalf of the investors/unit holders, in Equity shares, Government securities, Bonds, Call Money Markets etc… and distributes the profits. Mutual Fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. 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. Mutual funds enables even the small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital. Each shareholder participates proportionally in the gain or loss of the fund. Mutual fund units, or shares, are issued and can typically be purchased or redeemed as needed at the fund’s current net asset value (NAV) per share, which is sometimes known as NAVPS.</p><p>The idea of mutual funds can be traced to Belgium where ‘Society Generale de Belgique’ was established in 1822 as an investment company to finance investments in national industries. This concept of mutual fund spreads to USA in the early 20th century and three investment companies were started in 1924. In the periods after the Second World War the mutual fund culture was increasing in USA. Since then it has been spreading all over the world. The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI). Until 1987, UTI enjoyed a monopoly in the Indian mutual fund market.</p><p>&nbsp;</p><p>Then a host of other government-controlled Indian financial companies came up with their own funds. These included State Bank of India, Canara Bank, and Punjab National Bank. This market was made open to private players in 1993, as a result of the historic constitutional amendments brought forward by the then Congress-led government under the existing regime of Liberalization, Privatization and Globalization (LPG). The first private sector fund to operate in India was Kothari Pioneer, which later merged with Franklin Templeton.</p><p><strong>ICICI</strong></p><p>ICICI Bank is India’s second-largest bank. It is a privately owned bank. The Bank has a network of 2,755 branches and 9,363 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.</p><p><strong>SBI</strong></p><p>State Bank of India is the largest banking and financial service company in India by revenue and total assets. It is a public sector bank. The bank traces its ancestry to British India, through the imperial bank of India, which was formed by merging of bank of madras with two presidency banks, making it the oldest bank in India. State Bank of India started mutual fund only on November 1987. It was only second mutual fund in India.</p><p><strong>&nbsp;</strong></p><p><strong>&nbsp;</strong></p><p><strong>&nbsp;</strong></p><p><strong>Statement of the problem:</strong></p><p>A mutual fund is a trust that collects the income of a number of investors who share a common financial goal and pools it together to create a larger resource of money. Thus the money collected is invested by the fund manager in different type of securities according to the objective of the scheme. These could range from shares to debentures to money market instruments. These could be subdivided into pharmaceutical securities, technological securities, FMCG securities etc… The income earned through these investment and capital appreciation realized by the schemes are shared by its unit holders proportionately ie on the basis if number of units owned by them (pro-rata).</p><p>In recent year’s mutual fund has emerged as a tool for ensuring one’s well-being .They has not only contributed to India’s growth but have also helped into success of India. So after paying grocery bills, home loan installments, tuition fees and the likes, people have started to save some pennies and have made up the mind to invest in mutual fund.</p><p>Today due to more competition between the mutual fund companies, they are providing a great variety of schemes to attract thenand satisfy their customers. We can see that there are more schemes of different companies with same features They also come with a number of different investment objectives that are launched from time to time like schemes according to maturity period, schemes according to investment objectives, special schemes etc. Your pile of investment will only grow when you will invest in the right fund taking into account your investment objectives. This project will compare the different schemes of ICICI Mutual fund and SBI Mutual fund in this respect.</p><p>&nbsp;</p><p><strong>&nbsp;</strong></p><p><strong>Scope of the study:</strong></p><p>The main scope is to get correct knowledge regarding various mutual fund schemes that are available through ICICI Mutual fund and SBI Mutual fund. There are plenty of schemes available in the market that caters to meet the personal financial obligations such as children’s education, marriage, retirement etc.. of an investor. Unless the mutual fund schemes are tailor-made to the investor’s changing needs and unless the AMC’s understand the selecting or switching or switching behavior of the investors, survival of funds will be difficult in future. With this background an attempt is made in this to study the performance of various funds of ICICI and SBI at various point of time and its volatility.</p><p>The project is limited to comparison of mutual fund schemes of ICICI Mutual fund and SBI Mutual fund. As a result of the big boom witnessed in the mutual fund industry in recent times, they are trying to gain more market share in the rapidly improving market.</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p>&nbsp;</p><p><strong>Objectives of the study :</strong></p><p><strong>Primary Objectives</strong><strong>:</strong></p><p>Comparison of mutual fund schemes of ICICI Prudential Fund and SBI MF</p><p><strong>Secondary Objectives:</strong></p><ol><li>To analyze various schemes of ICICI Prudential Fund and SBI Mutual Fund</li><li>To find whether customers prefer to invest in mutual funds in ICICI Prudential Fund or SBI Mutual Fund.</li><li>To analyze merits and demerits of investing in mutual funds of ICICI Prudential Fund and SBI Mutual Fund</li></ol><p><strong>Methodology:</strong></p><p>Convenience sampling method is used</p><p><strong>Primary Data:</strong></p><p>Primary data include data which are collected for the first time they are original in character. They are collected by the researcher for the first time for his own use.</p><ol><li>a. Questionnaire</li><li>SAMPLE SIZE 20 GENERAL INVESTORS</li></ol><p><strong>Secondary Data:</strong></p><p>Secondary data are those which have already been collected by others. When it is not possible to collect data in primary form the researcher may take the help of Secondary data.</p><ol><li>a. Newspaper</li><li>Websites</li><li>Brochures Published by banks</li></ol><p><strong>&nbsp;</strong></p><p><strong>Tools of analysis:</strong></p><p>Percentage analysis and pie charts have been used to depict which of the two ie SBI Mutual fund and ICIC Mutual fund have better investment plans.</p><p>Various other charts and graphs have been used for supporting the data.</p><p><strong>Limitations:</strong></p><ol><li>Errors While collection of data.</li><li>Time limit.</li><li>Response of customer</li></ol> <br><p></p>