A Comparative study of Investment

in Equity and in Mutual Funds.

Contents
1. Executive Summary.3
2. Rationale....4
3. Objectives..5
4. Research Methodology.6
5. Expected contribution from the study7
6. Limitations of the study8
7.
8.

Executive Summary
There are many alternatives available for Investment. Each alternative
has its own strengths and weaknesses. Some options provide good returns
but with higher risks. Others provide safety but with lower returns, for
e.g. Fixed Deposits (FDs). 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 securitys price to adjust
rapidly in an unbiased manner to new information so that, it reflects the
nearest investment value. The main objective of comparing investment in
equity shares with mutual fund schemes is to analyze the performance of
mutual funds with their benchmark parameter. Historical data were taken
for calculating risk, return, alpha and beta. To compare how equities &
mutual funds are less risky on the basis of returns. Those who have well
knowledge in equity market they can go for equity investment rather that
investing in mutual funds because no control on the expenses made by
the fund manager. The study will guide the new investor who wants to
invest in equity and mutual fund schemes by providing knowledge about
how to measure the risk and return of particular scrip or mutual fund
scheme. Hence this study has a scope to conduct research on mutual fund
& equity investment.

Rationale
In this period, Indian peoples are becoming more aware of saving
money for future. Te value of money will increase in future against
current value of money. Peoples are explored to various options for
investing their savings. Due to numerous options, peoples are not able to
identify the option(s) with consistent income. So various alternatives
should be compares with other.
People invest in equity considering specific or selected companies
from the equity market. The profit or loss is depending on the
performance of that selected companies. On the other hand, under Mutual
Funds money is pooled from the investors by Asset Management
Company or Mutual Fund Company. They may invest in Equity Shares,
Debentures, Bonds, Public Deposits, Government Bonds, etc.
The rationale behind undertaking this project is to understand the
investment pattern of various investment options.

Objectives
--- To find Risk & Return pattern among different equity and mutual fund
schemes in India.
--- To analyse performance of equity shares in comparison of mutual fund
schemes.
--- To find trend of investment in equity and mutual funds.

Research Methodology
A) Sampling technique:- Since the research is based on secondary
data, Justified sampling will be carried out.

B) Scope of the study

The analysis is critically based on share prices and net asset values of
the mutual fund which will help an investor to identify better investment
avenues from the market. The study goes through a period in which
market has shown booms, depression and consistent performance.

C) Sample size:Sample size will be around 50.

D) Data Collection:The entire data will be collected from the secondary source. Internet is
the main source of secondary sources of data collection used. Magazines,
newspapers and journals may be used for collecting data.

E) Time span:Time span will be from accounting year 2004-05 to 2014-15.

F) Research Method:Research will be carried out on Cross Sectional Analysis Method.

Expected contribution from the

study
After the entire analysis and research we will be able to
--- portray the pattern of Risk & Return for equity and Mutual Fund
--- analyse the performance of equity and Mutual fund during these 10
year period
--- find the trend of investment in equity and Mutual fund.

Limitations of the study

--- Paucity of time as we have to do this project with our course
curriculum doing all other assignments, exams etc