Comparative Study on Investors Preference to Invest Directly in Mutual Fund or Through Equity
CONTENTS
• ACKNOWLEDGEMENT 2 • EXECUTIVE SUMMARY 3 • CHAPTER 1 5 ➢ RATIONALE 5 ➢ OBJECTIVES 6 ➢ LITERATURE REVIEW 7 • CHAPTER 2 30 ➢ SCOPE OF THE STUDY 30 ➢ TARGET POPULATION 30 ➢ RESEARCH DESIGN 30 ➢ DATA COLLECTION 31 ➢ QUESTIONNAIRE DESIGN 31 ➢ SAMPLING 33 ➢ PROCEDURE FOR DATA COLLECTION 34 • FINDINGS & ANALYSIS 51 • INVESTOR SURVEY ANALYSIS 54 • CONCLUSION 68 • LIMITATIONS 69 • QUESTIONNAIRE 70 • BIBLIOGRAPHY 73
ACKNOWLEDGEMENT
On the completion of this project I would like to take this opportunity as a platform to thank all the people who helped me in this work and who made this project a success.
I express my heartfelt gratitude and thanks to Ms Ranjana Madaan for his guidance and support throughout this project. I am also thankful to him for giving his suggestions and encouragement throughout the project work and helping me continuously at each and every stage
Executive Summary
Each investment alternative has its own strengths and weaknesses. Some options seek to achieve superior returns (like equity), but with corresponding higher risk. Other provide safety (like PPF) but at the expense of liquidity and growth. Other options such as FDs offer safety and liquidity, but at the cost of return. Mutual funds seek to combine the advantages of investing in arch of these alternatives while dispensing with the shortcomings.
Indian stock market is semi-efficient by nature and, is considered as one of the most respected stock markets, where information is quickly and widely disseminated, thereby allowing each security’s price to adjust rapidly in an unbiased manner to new information so that, it reflects the nearest investment value. And mainly after the introduction of electronic trading system, the information flow has become much faster. But sometimes, in developing
• ACKNOWLEDGEMENT 2 • EXECUTIVE SUMMARY 3 • CHAPTER 1 5 ➢ RATIONALE 5 ➢ OBJECTIVES 6 ➢ LITERATURE REVIEW 7 • CHAPTER 2 30 ➢ SCOPE OF THE STUDY 30 ➢ TARGET POPULATION 30 ➢ RESEARCH DESIGN 30 ➢ DATA COLLECTION 31 ➢ QUESTIONNAIRE DESIGN 31 ➢ SAMPLING 33 ➢ PROCEDURE FOR DATA COLLECTION 34 • FINDINGS & ANALYSIS 51 • INVESTOR SURVEY ANALYSIS 54 • CONCLUSION 68 • LIMITATIONS 69 • QUESTIONNAIRE 70 • BIBLIOGRAPHY 73
ACKNOWLEDGEMENT
On the completion of this project I would like to take this opportunity as a platform to thank all the people who helped me in this work and who made this project a success.
I express my heartfelt gratitude and thanks to Ms Ranjana Madaan for his guidance and support throughout this project. I am also thankful to him for giving his suggestions and encouragement throughout the project work and helping me continuously at each and every stage
Executive Summary
Each investment alternative has its own strengths and weaknesses. Some options seek to achieve superior returns (like equity), but with corresponding higher risk. Other provide safety (like PPF) but at the expense of liquidity and growth. Other options such as FDs offer safety and liquidity, but at the cost of return. Mutual funds seek to combine the advantages of investing in arch of these alternatives while dispensing with the shortcomings.
Indian stock market is semi-efficient by nature and, is considered as one of the most respected stock markets, where information is quickly and widely disseminated, thereby allowing each security’s price to adjust rapidly in an unbiased manner to new information so that, it reflects the nearest investment value. And mainly after the introduction of electronic trading system, the information flow has become much faster. But sometimes, in developing
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