The economy of a country is highly influenced by the Financial System of the country. The Indian Financial System has been broadly divided into two segments: the organized and the unorganized segments. An investor has a wide array of investment avenues available. Economic well being in the long run depends significantly on how wise the investments are.
In the present financial scenario where the economy is poised to grow approx. at 9% ,as stated by our finance minister P Chidambaram, and the present bulls run in the capital market ,where lot of money is being pumped into the economy by FIIs, and increasing disposable income with the generation next has created a problem of investment because there is lot money on hand but they don't know where to invest as there is significantly less attractive return in the bank FD, PPF, KVP, NSC, MIS, and other Post saving scheme. Uncertainties in share market and low interest rate have left investors puzzled, i.e. to spend the money or save the money. If they want to save the money then where can they save it so that they can get better returns with flexibility, tax benefit and as well as capital appreciation. So it is necessary for investor to find the answer and way of capital growth with better return rather than uncertain share market and other low yield investment avenues.
[...] OPTION RESPONDENTS Return 52 Liquidity 7 Professional 9 management Tax Benefits 14 Time Horizon 18 Out of 100 respondents of the respondents preferred to invest in mutual funds with low risk even if the returns were high preferred to invest in mutual funds with liquidity of the fund of them preferred to invest in mutual funds with Professional management of the respondents preferred tax benefits purpose which is under section under section 80(c) of them preferred to invest in mutual funds with time horizon. [...]
[...] Diversification: The best mutual funds design their portfolios so individual investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value Professional Management: Most mutual funds pay topflight professionals to manage their investments. [...]
[...] RELIANCE MUTUAL FUNDS SCHEMES Equity/Growth Schemes Reliance Natural Resources Fund: (An Open Ended Equity Scheme) The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in companies principally engaged in the discovery, development, production, or distribution of natural resources and the secondary objective is to generate consistent returns by investing in debt and money market securities. Reliance Equity Fund: (An open-ended diversified Equity Scheme.) The primary investment objective of the scheme is to seek to generate capital appreciation & provide long- term growth opportunities by investing in a portfolio constituted of equity & equity related securities of top 100 companies by market capitalization & of companies which are available in the derivatives segment from time to time and the secondary objective is to generate consistent returns by investing in debt and money market securities. [...]
[...] TYPES OF MUTUAL FUND SCHEMES The objectives of mutual funds are to provide continuous liquidity and higher yields with high degree of safety to investors. Based on these objectives, different types of mutual funds schemes have evolved. Functional Portfolio Geographical Other Open-Ended Event Income Fund Domestic Sect oral specific Close-Ended Growth Fund Off-Shore Tax Saving Scheme Interval Scheme Balanced ELSS Money market Special Gilt Funds Load funds Index ETFS P/E Ratio Fund Schemes according to function: A mutual fund scheme can be classified into open-ended scheme or close- ended scheme depending on its maturity period. [...]
[...] To divide the investors and check their behavior towards Mutual Funds according to parameters such as age, educational qualifications, occupation and Methods of data collection Research Design: A research design is simply the framework or plan for a study, used as a guide in collecting and analyzing data. It is the blue print that is followed in completing the study. Research design is the conceptual structure within which the research would be conducted. In the context of this project report I have utilize descriptive research design This cover research design that is intended to produce accurate description of variable relevant to the decision face without demonstrating relationship exists between variables. [...]
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