COMPARATIVE STUDY ON MUTUAL FUNDS

Abstract

This study is titled as “Comparative Study on mutual funds”. The main objective of
the study is to evaluate the performances of equity funds, liquid funds, balanced
funds, gilt funds, income funds and index fund. The financial sector reforms in India
in the early nineties has resulted in explosive growth of the economy, opening up of
the Indian financial market to foreign and private Indian players, large inflow of
Foreign Institutional Investors, increased competition and better product offerings to
consumers. One of the major developments of this decade has been the take-off of
mutual funds. Mutual Funds are financial intermediaries concerned with mobilizing
savings of those who have surplus income and channelization of these savings in
those avenues where there is demand of funds. Mutual funds have emerged as a
strong financial intermediary and are the fastest growing segment of the financial
services sector in India.
It aims at promoting a diversified, efficient and competitive financial sector increasing
the return on investment and promoting and accelerating the growth of the economy.
It is a medium of investment suitable to the small investors, who are not able to invest
in stock market directly. This project is undertaken to study the “A comparative study
on mutual funds” this study has concentrated on the preference for various asset
management companies and past performance. The important objective of this study
is to compare the index with market returns. This project also helps in evaluating the
performance of the funds based on market risk and to find the market growth.
Descriptive Statistics was used for the analysis of the data collected. Through analysis
it was found that majority of the investors have selected Mutual funds as the best
mode of investment and they opted for growth scheme. The main factors that any
investor looks for are low risk with moderate returns.