CHAPTER: - 1

INTRODUCTION OF
PROJECT

INDIA STOCK MARKET

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Indian stock markets are transaction intensive and thus rank among the top five
markets in this regard .Stock exchange reforms brought in professional management
separating conflicts of interest between brokers as owners of the exchanges and
traders/dealers. Foreign institutions took stake in India’s two leading domestic stock
exchanges. While NYSE Group led consortium took stake in the National Stock
Exchange, Deutsche Borse and Singapore Stock Exchange bought equity in the
Bombay Stock Exchange Ltd.

NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange (NSE) is India’s leading stock exchange covering
various cities and towns across the country. NSE was set up by leading institutions to
provide a modern, fully automated screen-based trading system with national reach.
The Exchange has brought about unparalleled transparency, speed & efficiency,
safety and market integrity. It has set up facilities that serve as a model for the
securities industry in terms of systems, practices and procedures.
There are two kinds of players in NSE:
 Trading members
Recognized members of NSE are called trading members who trade on behalf
of themselves and their clients
Participants include trading members and large players like banks who take
direct settlement responsibility.

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Unless stock markets provide professionalized service, small investors and foreign
investors will not be interested in capital market operations and capital market being
one of the major sources of long-term finance for industrial projects, India cannot
afford to damage the capital market path. In this regard NSE gains vital importance in
the Indian capital market system.

BOMBAY STOCK EXCHANGE (BSE)

Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage of
over 133 years of existence. What is now popularly known as BSE was established as
“The Native Share & Stock Brokers’ Association” in 1875. BSE is the first stock
exchange in the country which obtained permanent recognition (in 1956) from the
Government of India under the Securities Contracts Regulation Act (SCRA) 1956.
BSE’s pivotal and pre-eminent role in the development of the Indian capital market is
widely recognized.

It migrated from the open out-cry system to an online screen-based order driven
trading system in 1995. Earlier an Association of Persons (AOP), BSE is now a
corporatized and 3demutualized entity incorporated under the provisions of the
Companies Act, 1956, pursuant to the BSE (Corporatization and Demutualization)
Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With
Demutualization, BSE has two of world’s prominent exchanges, Deutschmark Bores
and Singapore Exchange, as its strategic partners.

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Today, BSE is the world’s number 1 exchange in terms of the number of listed
companies and the world’s 5th in handling of transactions through its electronic
trading system. The companies listed on BSE command a total market capitalization
of USD 1.63 Trillion as on December, 2010,makingit the 4th largest stock exchange in
Asia and the 8th largest in the world. BSE reaches to over 400 cities and town nation-
wide and has around 5,034 listed companies; with over 7745 scrip’s being traded as
on 31stDec, 2010.

The BSE Index, SENSEX, is India’s first and most popular stock market benchmark
index. Sensex is tracked worldwide. It constitutes 30 stocks representing 12 major
sectors. The SENSEX is constructed on a ‘free-float’ methodology, and is sensitive to
market movements and market realities. Apart from the SENSEX, BSE offers 23
indices, including 13 sectorial indices. It has entered into an index cooperation
agreement with Deutschmark Borse and Singapore Stock Exchange. These
agreements have made SENSEX and other BSE indices available to investors across
the globe. Moreover, Barclays Global Investors (BGI), at Hong Kong, the global
leader in ETFs through its iShares brand, has created the exchange traded fund (ETF)
called iShares.

BSE provides an efficient and transparent market for trading in equity, debt
instruments and derivatives. It has always been at par with the international standards.
The systems and processes are designed to safeguard market integrity and enhance
transparency in operations. BSE is the first exchange in India and the second in the
world to obtain an ISO 9001:2000 certifications. It is also the first exchange in the
country and second in the world to receive Information Security Management System
Standard BS 7799-2-2002 certification for its BSE On-line Trading System (BOLT).
BSE continues to innovate. In 2006, it became the first national level stock exchange
to launch its website in Gujarati and Hindi and now Marathi to reach out to a larger
number of investors. It has successfully launched a reporting platform for corporate
bonds in India christened the ICDM or Indian Corporate Debt Market and a unique
ticker-cum-screen aptly named ‘BSE Broadcast’ which enables information
dissemination to the common man on the street.
LIST OF STOCK EX-CHANGES IN INDIA

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There are 22 stock exchanges in India. These are shown below:
1. Bombay Stock Exchange
2. National Stock Exchange
3. Bangalore Stock Exchange
4. Bhubaneswar Stock Exchange
5. Calcutta Stock Exchange
6. Cochin Stock Exchange
7. Coimbatore Stock Exchange
8. Delhi Stock Exchange
9. Guwahati Stock Exchange
10. Hyderabad Stock Exchange
11. Jaipur Stock Exchange
12. Ludhiana Stock Exchange
13. Madhya Pradesh Stock Exchange
14. Madras Stock Exchange
15. Magadha Stock Exchange
16. Mangalore Stock Exchange
17. Meerut Stock Exchange
18. OTC Stock Exchange
19. Pune Stock Exchange
20.Saurasthra Stock Exchange
21. Uttar Pradesh Stock Exchange
22. Vadodara Stock Exchange

WORLDWIDE STOCK MARKETS

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 Country Market cap (US$ billion) % of world
1 USA 15,517 39.5
2 Japan 4,079 10.4
3 United Kingdom 3,067 7.8
4 France 1,828 4.7
5 Germany 1,256 3.2
6 Canada 1,239 3.2
7 Hong Kong 1,001 2.6
8 Switzerland 872 2.2
9 Italy 788 2.0
10 Spain 688 1.8
11 Australia 687 1.8
12 Russia 592 1.5
13 South Korea 557 1.4
14 India 506 1.3
15 Taiwan 475 1.2
SECURITY & EXCHANGE BOARD OF INDIA (SEBI)
SEBI was established in 1988 and became a fully autonomous body in the year 1992
with defined responsibilities to cover both development and regulation of Stock
Market.

FUNCTIONS OF SEBI :

1. Regulation of Stock exchanges and Subsidiaries:

One of the key functions of the Board is to supervise and monitor the activities
of the exchanges, clearing houses and the settlement system, strengthen
market infrastructure and ensure that appropriate risk management systems are
in place. Main functions include Inspection of Stock Exchanges, Inspection of
Subsidiaries of Stock Exchanges, Restructuring of Management of
Subsidiaries, Takes Strict actions against Illegal Trading in Securities.
2. Registration and Regulation of the working of Intermediaries:
In order to interpose between issuers and investors, regulators recognize
various classes of intermediaries in the capital market. SEBI, over the period,
recognized many types of capital market intermediaries in India and
operations during the year is reviewed in the following sections.

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 i. Primary Market: Intermediaries such as merchant bankers,
underwriters, debenture trustees, bankers to an issue, registrars to
an issue and share transfer agents and portfolio manager are the
intermediaries that function in the primary markets.
ii. Secondary Market: Brokers & sub-brokers will function in the
secondary market. Sub-brokers are intermediaries between the
broker and the investors.
iii. Registration of FIIs
iv. Registration of Custodian of Securities
3. Registration and Regulation of Collective Investment schemes including
mutual Funds
4. Promotion and Regulation of Self-Regulatory organizations
5. Fraudulent and Unfair Trade practices
6. Investor Education and the Training of Intermediaries.

MAJOR INITIATIVES TAKEN BY SEBI

 PAN was made the sole identification number for all transactions in securities
market irrespective of the amount.
 Format of the New Scheme Report by Mutual funds revised.
 Long term options on Sensex and Nifty with tenures up to 3 years Introduced
and the options cycle, risk containment measures specified.
 BSE and NSE permitted to put in place corporate bond trading platforms to
enable efficient price discovery and clearing and settlement in a gradual
manner.

Motilal Oswal Financial Services Ltd

Motilal Oswal securities limited was founded in 1987 as a small sub-broking unit,
with just two people running the show Mr. Motilal Oswal and Mr. Ramdev Agarwal
laid the foundation for MOFSL. It is headquartered in Mumbai having one of India’s

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largest networks spreading over 563 cities and towns comprising 1538 business
locations operated by business partners. As of 30 Sept 2011 it has 732173 registered
customers.“MOITAL OSWAL FINANCIAL SERVICES GROUP” consists of 5
highly renowned entities which are as follow:
 MOIAPL (Motilal Oswal Investment Advisors Private Ltd.)
 MOCBPL (Motilal Oswal Commodities Broker Private Ltd.)
 MOPEAPL (Motilal Oswal Private Equity Advisors Private Ltd.)
 MOAMC (Motilal Oswal Asset Management Company)
 MOSL (Motilal Oswal securities Ltd)
Focus on customer-first-attitude, ethical and transparent business practices, respect for
professionalism, research-based value investing and implementation of cutting-edge
technology has enabled us to blossom into an over 2000 member team.
NATURE OF THE BUSINESS
MOFSL is a broking unit and a well-diversified financial services firm offering a
wide range of financial services and products. Being a subsidiary MOSL carries the
same business where it particularly deals Investment Banking, Private Equity, Wealth
Management, Institutional Equities, Asset Management, Broking and Distribution,
Principal Strategies . Motilal Oswal Securities Advisory Group is equipped to
augment and alter the investments in an effort to create healthy portfolio. Motilal
Oswal Securities Ltd follows a network of franchisee/sub-brokers shop and Remises
model. Their systems and policies are deeply evolved and centred on the business
requirements of the sub broker.
The business is carried on in two different areas .The first one is client acquisition and
the second one is franchisee acquisition .There are few ways in which client
acquisition takes place .They include tele-calling, cold calling, referrals from existing
clients and directly

targeting competitor data base, walk-ins. Franchisee acquisition means insisting the
interested sub brokers to open up a franchise or sub brokerage firms of Motilal Oswal.
This might be either on the premises of Motilal Oswal or a separate office where the
support service is provided by Motilal Oswal. There are people who work

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independently in the premises of Motilal Oswal who are known as Business Associate
Group (BAG).
CORE PURPOSE AND VALUES
VISION
“To provide opportunities for children and their families to move from poverty and
dependence to self-reliance. At Motilal Oswal Financial Services Limited our motto is
`Knowledge First` and we believe that education can bring prosperity and equality in
the society.”
MISSION
“To be a well-respected and preferred global financial services organization enabling
wealth creation for all our customers”
Values
Our core purpose is complemented by our organizational values. Living these
values, we believe, helps us achieve our core purpose.
Integrity: A company honoring commitment with highest ethical and business
practices.
Passion & Attitude: High energy and self-motivated with a ‘Do it’ attitude and
entrepreneurial spirit. .
PRODUCTS AND SERVICES
MOSL understands customer profile and uses a combination of the following
products and services to look after their needs

Equities – BSE/NSE
 Derivatives- NSE-Cash and F&O and BSE – Cash and F&O
 Commodities- NCDEX/MCX
 Portfolio Management Services
 Private Equity
 Mutual Funds
 Online Trading
 IPO’s
 Depository Services
 Loan against shares
 Asset management

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  Investment banking
 Wealth Management
EQUITY:
Motilal Oswal securities Ltd is a member of NSE and BSE, has a network of over 480
branches inIndia and abroad, rendering quality equity trading services. Motilal Oswal
Securities Ltd not only has a strong offline presence but also provides but also provide
automated online trading services. Motilal Oswal Securities Ltd is retail spread caters
to the need of individual investors. Trading in equities is made simple, safe and
interesting with smart advice from the research desk through daily SMS alerts, market
pointers, periodical research, stock recommendations and customer meets organized
frequently.
DERIVATIVE:
A Derivative is a financial contract, between two or more parties, which is
derived from the future value of an underlying asset. At any point of time there will
always be available near three month contract periods. Currently, settlement of all
derivatives trades is in cash. There is daily as well as final settlement. As long as the
position is open, the same will be mark to market at the daily settlement price, the
difference will be credited or debited accordingly and the positions shall be brought
forward to the next day at the daily settlement price.
INTERNET TRADING:
If you have access to the Internet then you can register with your to view your
demat account over the internet. This is very beneficial as you can avail of a host of
services at no extra cost. You will be able to view your holdings, reports, and ledger
and will have free access to our research reports at any time.

DEPOSITORY SERVICES:
A depository can be compared to a bank. It holds securities such as shares,
debentures, bonds, government securities, units etc. Of investors in electronic form.
Motilal Oswal Securities Ltd is a depository participant of NSDL. Investors can open

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demat accounts with NSDL through MOSL. One can approach the nearest branch of
Motilal Oswal Securities Ltd for opening an account. Agreement charges along with
annual maintenance charge (AMC) are collected upfront while opening an account. It
takes two to three days to open a demat account.
PORTFOLIO MANAGEMENT SERVICES:
Motilal Oswal Securities Ltd a SEBI registered portfolio manager offers
discretionary portfolio management services. Motilal Oswal Securities Ltd has a team
of experts who carefully take investment decisions based on the clients’ objectives.
The portfolio management team has a successful track record of more than 10 years in
the capital markets.
COMMODITIES:
MOCB provides commodity broking facilities through its membership of
NCDEX and MCX. They trade for their clients in a wide variety of 63 commodities,
including agricultural products, bullion, industrial products, oil and oil seeds and
energy products. MOSL brokerage clients have access to exclusive customized
trading advice and reports on highly traded commodities.
RETAIL WEALTH MANAGEMENT:
Retail wealth management services are offered through MOFSL, MOSL and
MOCB. They seek to offer customized investment management services including
planning, advisory, executive and monitoring or a range of investment products to our
retail customers. Through various types of brokerage accounts, our customers can
purchase and sell securities, including equities, derivatives as well as commodities
traded on NSE, BSE, OTCEI, NCDEX and MCX.
MUTUAL FUNDS:
Mutual funds offer a platform to participate in the equity & debt market indirectly
through professional management. Motilal services regarding client profiling, asset
allocation plan, scheme selection, re-balancing. It offers need based advisory fully
backed by solid research, it understands the needs and builds a prudent portfolio, it
reviews the portfolios on a monthly basis.
INTRODUCTION OF PROJECT

A financial market is a market in which people trade financial securities and

derivatives at low transaction costs. Some of the securities include stocks and bonds,
and precious metals. The term "market" is sometimes used for what are more strictly
exchanges, organizations that facilitate the trade in financial securities, e.g., a stock

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exchange or commodity exchange. Much trading of stocks takes place on an
exchange; still, corporate actions (merger, spin-off) are outside an exchange, while
any two companies or people, for whatever reason, may agree to sell stock from the
one to the other without using an exchange.

Components of financial market:

A. Based on market levels

Primary market: A primary market is a market for new issues or new financial claims.
Therefore, it is also called new issue market. The primary market deals with those
securities which are issued to the public for the first time. Secondary market: A
market for secondary sale of securities. In other words, securities which have already
passed through the new issue market are traded in this market. Generally, such
securities are quoted in the stock exchange and it provides a continuous and regular
market for buying and selling of securities. Simply put, primary market is the market
where the newly started company issued shares to the public for the first time through
IPO (initial public offering). Secondary market is the market where the second hand
securities are sold (security Commodity Markets)

B. Based on security types

Money market: Money market is a market for dealing with the financial assets and
securities which have a maturity period of up to one year. In other words, it's a market
for purely short-term funds. Capital market: A capital market is a market for financial
assets which have a long or indefinite maturity. Generally, it deals with long-term
securities which have a maturity period of above one year.
The capital market may be further divided into
(a) industrial securities market
(b) Govt. securities market and
(c) long-term loans market.
 Equity markets: A market where ownership of securities are issued and
subscribed is known as equity market. An example of a secondary equity market
for shares is the New York (NYSE) stock exchange.
 Debt market: The market where funds are borrowed and lent is known as debt
market. Arrangements are made in such a way that the borrowers agree to pay the
lender the original amount of the loan plus some specified amount of interest.
Derivative markets: A market where financial instruments are derived and traded
based on an underlying asset such as commodities or stocks. Financial service
market: A market that comprises participants such as commercial banks that
provide various financial services like ATM. Credit cards. Credit rating, stock
broking etc. is known as financial service market.
Individuals and firms use financial services markets, to purchase services that enhance
the workings of debt and equity markets.

Depository markets: A depository market consists of depository institutions (such as

banks) that accept deposits from individuals and firms and uses these funds to
participate in the debt market, by giving loans or purchasing other debt instruments
such as treasury bills. Non-depository market: Non-depository market carry out
various functions in financial markets ranging from financial intermediary to selling,

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insurance etc. The various constituencies in non-depositary markets are mutual funds,
insurance companies, pension funds, brokerage firms etc

Financial Functions:-
 Providing the borrower with funds so as to enable them to carry out their
investment plans.
 Providing the lenders with earning assets so as to enable them to earn wealth by
deploying the assets in production debentures.
 Providing liquidity in the market so as to facilitate trading of funds.
 Providing liquidity to commercial bank
 Facilitating credit creation
 Promoting savings
 Promoting investment
 Facilitating balanced economic growth
 Improving trading floors

Equity:

 People who can balance risk and return while dealing with direct equity are the
winners.
 The risk associated with direct equity comes from complexity of information.
 It’s not so easy to decode information’s related to equity.
 Information’s related to equity is contained in companies financial reports like
balance sheet etc.
 While buying stocks, one of the most essential parameters to evaluate about
company is ‘return on capital employed (ROCE)
 This parameter is so important that a true investor cannot buy stocks without
noting it.
 In India alone, there are millions of people who invest in stocks.
 This lack of know-how generates the ‘risk of losses associated with direct equity
investment.
 Millions of people buy stocks, only few has the critical know of reading and
analyzing balance sheet. These minority people are the ones who are making
huge money in stocks market.
 For balance, stocks market is more like a casino because they are investing
blindly.
 Direct equity investment can be very profitable if one has those critical know
how.
 Direct equity investment cannot be consistently profitable if one does not know to
decode financial statements of companies.
 But there is a great alternative to direct equity.
 Mutual funds are such products which are designed for common men.
 People who do not have time to gather financial know-how can select a good
mutual fund and enjoy the returns.
 In direct equity, timing the market is important. But timing market is not easy.
 If one can invest in equity through SIP (indirect equity), they need not care about
market-timing. Rightly timing the market is one essential trait that one must have
while dealing with direct equity. Historically investors have found timing the
market very rewarding

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 Investors know that how rewarding it can be to time the market to perfection.

Mutual Fund

A mutual fund is an open-end professionally managed investment fund that pools

money from many investors to purchase securities. These investors may be retail or
institutional in nature. The term is typically used in the United States, while similar
structures across the globe include the SICAV in Europe (‘Investment Company with
variable capital') and open-ended investment company (OEIC) in the UK. Mutual
funds have advantages and disadvantages compared to direct investing in individual
securities. Advantages of mutual funds include economies of scale, diversification,
liquidity, and professional management. However, these come with mutual fund fees
and expenses. Not all investment funds are mutual funds; alternative structures
include unit investment trusts, closed-end funds, and exchange-traded funds (ETFs).
These alternative structures share similarities such as liquidity due to trading on
exchanges and, in the United States, similar consumer protections under the
Investment Company Act of 1940. Mutual funds are also classified by their principal
investments as money market funds, bond or fixed income funds, stock or equity
funds, hybrid funds or other. Funds may also be categorized as index funds, which are
passively managed funds that match the performance of an index, or actively
managed funds. Hedge funds are not mutual funds as hedge funds cannot be sold to
the general public and lack various standard investor protections.

Advantages of Mutual Funds :-

 Professional Management:- Mutual funds are managed professionally by people

who are well versed in market.
 Affordable Portfolio Diversification:- Mutual funds are a way for investors to get
diversified in a affordable manner. An investor won’t get any desirable
diversification in just Rs 500/- through investing directly in equity, but that’s not
the case in mutual funds
 Liquidity- There are times when investors are not able to sell the equity of a
particular company as there are no buyers for the security, but mutual fund
provides proper liquidity to the holders.

Disadvantages of Mutual Funds:-

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 Lack of portfolio customization- The investment decision in mutual fund scheme
is done by the fund managers, so there is an obvious lack of control and thus
customization of portfolio is not possible.
 Choice overload- There are over 1500 mutual schemes provided by 38 mutual
fund houses. So the investors get confused about the difference in the funds,
which in most case is none. Recently, SEBI has taken steps to reduce this
problem, but it still persists.

No Control over the cost- All the investors money is pooled, so the the cost are beard
by all the investors, and thus it can be too much sometimes, which leads to a lower
XIRR in the future

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 CHAPTER :- 2

REVIEW OF LITERATURE

Review of literature

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Ranveer Raisinghania (2020) - The article delves into the ‘The better way of
investing’, which basically is investing in a large cap or blue chip stock which has
provided a great return historically. He argues that mutual fund lags behind investing
directly into equity due to the fees and commission charges of the manager and the
distributor respectively. He provides data about how diversifying in blue chip stocks
is just as safe and more profitable than investing in mutual funds.

C.Srinivas Yadav and Hemanth N C (Feb 2019), have studied

Performance of Selected Equity Growth Mutual Funds in India: An Empirical Study
during 1st June 2010 To 31st May 2013. The study evaluates performance of selected
growth equity funds in India, carried out using portfolio performance evaluation
techniques such as Sharpe and Treynor measure. S&P CNX NIFTY has been taken as
the benchmark. The study conducted with 15 equity growth Schemes (NAV ) were
chosen from top 10 AMCs ( based on AUM) for the period 1st June 2010 to 31st may
2013(3 years).
Prof. Kalpesh P Prajapati and Prof. Mahesh K Patel (Jul 2016), have
done a Comparative Study On Performance Evaluation of Mutual Fund Schemes Of
Indian Companies. In this paper the performance evaluation of Indian mutual funds is
carried out through relative performance index, risk-return analysis, Treynor's ratio,
Sharp's ratio, Sharp's measure, Jensen's measure, and Fama's measure. The data used
is daily closing NAVs. The source of data is website of Association of Mutual Funds
in India (AMFI). The study period is 1st January 2007 to 31st December, 2011. The
results of performance measures suggest that most of the mutual fund have given
positive return during 2007 to 2011.

E. Priyadarshini and Dr. A. Chandra Babu (2021), have done Prediction

of The Net Asset Values of Indian Mutual Funds Using Auto- Regressive Integrated
Moving Average (Arima). In this paper, some of the mutual funds in India had been
modeled using Box-Jenkins autoregressive integrated moving average (ARIMA)
methodology. Validity of the models was tested using standard statistical techniques
and the future NAV values of the mutual funds have been forecasted.

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Rahul Singal, Anuradha Garg and Dr Sanjay Singla (May 2019), have
done Performance Appraisal of Growth Mutual Fund. The paper examines the
performance of 25 Growth Mutual Fund Schemes. Over the time period Jan 2008 to
Dec 2012. For this purpose three techniques are used (I) Beta (II) Sharpe Ratio (III)
Treynor Ratio. Rank is given according to result drawn from this scheme and
comparison is also made between results drawn from different schemes and normally
the different are insignificant.

Dr. Sandeep Bansal, Deepak Garg and Sanjeev K Saini (2018), have
studied Impact of Sharpe Ratio & Treynor’s Ratio on Selected Mutual Fund Schemes.
This paper examines the performance of selected mutual fund schemes, that the risk
profile of the aggregate mutual fund universe can be accurately compared by a simple
market index that offers comparative monthly liquidity, returns, systematic &
unsystematic risk and complete fund analysis by using the special reference of Sharpe
ratio and Treynor’s ratio.

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 CHAPTER :- 3

OBJECTIVE’S OF THE
STUDY

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 To compare Equity and Mutual fund in respect of their risk and returns.
 Provide Information about pros and cons of investing in equity and mutual funds.

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 CHAPTER :- 4

RESEARCH
METHODOLOGY

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Research Methodology:
STATEMENT OF THE PROBLEM
 Research study on mutual funds and equity has been extensive since its
introduction. Mutual funds provide opportunity to generate income and it is
booming sector now a days. On the other hand, Equity provides ownership
capital. Thus, this study makes an attempt to comparative analysis of mutual
funds and direct equity and also finds out the preference of the target populations
for mutual funds and direct equity

RESEARCH DESIGN
 This study is in descriptive nature since it is based on primary data’s facts and
findings of investigation in a structured manner.
SAMPLE DESIGN
Sampling Method: Convenience sampling
Sampling Frame: Equity and mutual fund investors
Sample Size: 50 respondents
SOURCES OF DATA The study is based on primary and secondary data.
 Primary Data: For primary data, research work has been collected through
Structured, Undisguised Questionnaire is used.
 Secondary Data: For this study data has been collected through books,
magazines, journals and the internet is used.
TOOLS AND TECHNIQUES DATA ANLYSIS
Chi-square test
Statistical tool: Microsoft Excel
LIMITATIONS OF THE STUDY
The study is limited to 50 investors. The study is limited to the city only. It is assumed
that respondents are honest and true in expressing their view and fill questionnaire
without any bias.
1. Association between percentage of total saving income and Annual income.
H0=There is no significant relation between total saving income and Satisfaction of
annual income.

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H1: There is a significant relation between total saving and Satisfaction of Annual
income

CHAPTER :- 5

DATA ANALYSIS &

INTERPRETATION

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Analysis & interpretation: - In order to understand the awareness of the general
public about investing, the following survey was conducted. The survey was
conducted on 50 people who were selected in random and including students,&
working professionals, and 3 stay at home mothers.
Dear Respondents, This survey is aimed to know the perception of people towards
investment in Equity & Mutual fund in form of investment and to find the level of
awareness of stock market among Student/Professional & Retired.

2. AGE
As per details given in chart Data
collected by the investor where
10% were at the age of 20-25
Years and 21.42% were at the age
of 25-35 Years, 20.40% investor
were at the age of 35-45 years
and 4.8% were at the age of more
then 45 years.

3. OCCUPATION

As per details given in chart

Data collected by the
investor to know their
Occupation 14% Investors

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were business men, 4% Investors were Students 14% were in Services 22% Investors
were Employee 14 % Investors were Retired from their services of Business.

4. MONTHLY INCOME
As per details given in chart Data collected by the investor there monthly income was
2.4% less then 20,000/-,
18.36% Investors had income
of 20000/- to 40000/-,
14.28% investors had income
of 40000/- to 80000/- and
16.32% investors had income
more then 80,000/-

5. DO YOU INVEST IN EQUITY & MUTUTAL FUND ?

As per details given in chart

Data collected by the
investor so 80% of them
Said they are Investing in
either Equity market of
Mutual Funds Remaining
20% People Said they are
not investment in any segments

6. IF YOU WANT TO INVEST, WHICH INVESTMENT OPTION WOULD

YOU FEEL PROVIDES THE BEST RETURN?

As per details given in

chart Data collected by the

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investor so 17% of them were investing in Equity 22% were investing in IPO, 30%
Investor were investing in Mutual Fund, 8% People were investing in bonds 20%
people were investing in Fixed Deposits, 3% people said they are investing in
Debentures.
7. WHICH FACTOR MOTIVATES YOU TO INVEST IN EQUITY &
MUTUAL FUND?

As per details
given in chart
Data collected
by the investor
so 25%
Investors think
about Return,
6.12% Investors
think about
liquidity,
10.20%
Investors think about Safety, 9.18% Investors think about Capital Appreciation.

9. WHAT PERCENTAGE OF YOUR INCOME WOULD YOU INVEST IN

EQUITY AND MUTUAL FUND?
As per details given in
chart Data collected by
the investor so less then
5% Investors have Return
of 2%, 12% Investors are
getting Return of 5-10%
in their Portfolios, 42%
investors are getting 10-
15% Return in their
Portfolios, 27% investors
are getting 15-20% Return
in their portfolios, 13%
investors are getting 20-25% return, and last less then 2% Investors are earning more
then 25% Return in their portfolios.

10. HOW DO YOU TRADE IN EQUITY AND MUTUAL FUND?

As per details
given in chart
Data collected
by the investor
so 2.4%
Investors are
Trading ,
24.48% are

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investing using Delivery, 0% Investors are in Speculation, 12.24% are investing SIP,
12,24% are investing through Lump sum,0% investors are in Hedging, Arbitraging.

11. WHAT IS THE TIME HORIZON FOR INVESTING IN EQUITY AND

MUTUAL FUND?

As per details
given in chart Data
collected by the
investor so 8%
Investors have
invested for less
then 1 month, 18%
Investors go for
short term that is
1-3 months, 16%
investors Invest for
3-6 Months, 22%
Investors invest for
6-12 Months, 30%
investors are long
term investment oriented.

12. WHAT IS THE RATE OF RETURN EXPECTED BY YOU FROM

EQUITY & MUTUAL FUND IN A YEAR?

As per details
given in chart Data
collected by the
investor so 11%
Investors have 5-10
% Expectation,
50% investors have
expectation of 10-
15% Return which
a ideal Return of
Aggressive
Investment, 18%
Investors are hoping for 15-20% Return, 7% Investors hope for 20-25% return, 5%
investors are hopping for 25-30% Return, only 9% Investors are expecting return
more then 30%.

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13. ARE YOU SATISFIED WITH THE CURRENT PERFORMANCE OF
EQUITY AND MUTUAL FUND IN TERMS OF EXPECTED RETURN?

As per details
given in chart Data
collected by the
investor so 36%
Investors are
satisfied with there
investment and
20% Investors are
only Satisfied,
16% investors
have there Neutral
Return, 28%
Investors are not happy with their return so they are unsatisfied.

14. WHO INFLUENCED YOU TO ENTER INTO MARKET?

As per details given in chart

Data collected by the
investor 21% people
invested with their friends
recommendation, 3%
People invested by family
members, 24% people
invested through Advisors,
40% people invested
through advertisement
( Media), only 3% People
invested using research
Report.

15. WHICH FACTOR DO YOU CONSIDER IS MOST IMPORTANT WHILE

SELECTING THE SECTORS?

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 As per details given in
chart Data collected by
the investor 14%
Investors fallow Market
trends while investing,
38% investors think
about profitability, 18%
investors think about
economic conditions.
24% Investors think
about Industry condition,
6% people Invest keeping
in mind government policy.
16. RANK THE FOLLOWING SECTORS BASED ON YOUR
PERFORMANCE FOR INVESTMENT.

As per details given in

chart Data collected by
the investor 24% Oil and
Gas sectors, 30%
Infrastructures, sectors,
16% Return from
Banking Sectors, 10%
from Automobile sectors,
20% from IT Sectors.

17. RANK THE MOST IMPORTANT FACTOR SELECTING A COMPANY

OF YOUR CHOICE.

As per details given in

chart Data collected by
the investor so 17%
Investors keep in mind
about EPS ( Earning Per
Share), 5.10% Investors
think about Dividends,
8.16% Investors invest
for Market
Capitalization, 10.20%
Investors think about
Performance of the company, 10.20% Investors think about, PE ration of a particular
company.

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 Sampling technique: - since the population is heterogeneous stratified random
sample were taken.
 Sample size :- Two Companies and two mutual fund scheme were selected
 Sample description:- In this study, 2 companies were chosen from the NSE CNX
Nifty and 2 mutual fund schemes selected on the basis of their Net asset value
and after that comparison made between them, using their benchmark.
 Sample Size (ii) :- 50 random people were chosen for the survey of preference
between direct equity and mutual fund schemes.
Research Report
Equity shares are a way in which retail investors or institutional investors buy stake or
part in a company. Equity shares are issued by the company which wants to raise
capital for various reasons. Owning equity shares of a company brings a lot of perks
and responsibility to the investors. Having equity shares give a shareholder the right
to take part in the important decision of the company, as they are the owner of the
company. Equity shares are mostly owned by retail investors and institutional
investors due to the opportunity of capital appreciation. A rise in the company’s
market capital also leads to a rise in the share’s price.
Advantage of Equity Shares

 More income:- Equity Shareholders are provided with the profit after all meeting
with all the expenses.
 Right to Participate in the control and management - Equity shareholders have the
voting rights and they can have a say in the important decision of the companies
 Capital Profits- Equity shares are mostly owned by retail investors and
institutional investors due to the opportunity of capital appreciation. A rise in the
company’s market capital also leads to a rise in the share’s price.
 An attraction for people with lower income- Equity shares provides people with
lower income a chance to appreciate their capital as majority of shares can be
purchased by them.

Disadvantage of Equity Shares

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 Uncertain and Irregular Income- The dividend income is only available to the
shareholders if the board of director permits so.
 Capital loss in depression period - During a depression period, equity shares run
into the risk of loss due to the fall in market capital of the company
 Loss on liquidation- In the case of liquidation of the company, equity
shareholders are given the last priority.
Mutual Funds is a professionally managed type of collective investment scheme that
pools money from many investors and invests it in stocks, debt instruments,
commodities, and other securities. Mutual fund has fund managers, who manages the
pooled amount and invests the same in securities according to the fund. It acts as a
easy for the retail investors to enter the market, as all the research and investing is
done by the fund managers.
Advantages of Mutual Funds
 Professional Management:- Mutual funds are managed professionally by people
who are well versed in market.
 Affordable Portfolio Diversification:- Mutual funds are a way for investors to get
diversified in a affordable manner. An investor won’t get any desirable
diversification in just Rs 500/- through investing directly in equity, but that’s not
the case in mutual funds
 Liquidity- There are times when investors are not able to sell the equity of a
particular company as there are no buyers for the security, but mutual fund
provides proper liquidity to the holders.
Disadvantages of Mutual Funds
 Lack of portfolio customization- The investment decision in mutual fund scheme
is done by the fund managers, so there is an obvious lack of control and thus
customization of portfolio is not possible.
 Choice overload- There are over 1500 mutual schemes provided by 38 mutual
fund houses. So the investors get confused about the difference in the funds,
which in most case is none. Recently, SEBI has taken steps to reduce this
problem, but it still persists.
 No Control over the cost- All the investors money is pooled, so the the cost are
beared by all the investors, and thus it can be too much sometimes, which leads to
a lower XIRR in the future.

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 CHAPTER :- 6

SCOPE OF THE STUDY

1
Scope of the study
They study is primarily deals with equity and mutual fund investments. The study
covers 10 randomly selected stocks out of 50 NSE CNX Nifty Companies and 10
randomly selected mutual fund schemes out of the mutual fund industry of India for
comparison.
The analysis is strictly based on the share prices and Net asset value of the mutual
funds which will help an investor to identify better investment avenues from the
market. The study goes through a period in which the market has shown booms,
depression, and consistent performance.

CHAPTER :- 7

1
 FINDINGS

Findings
 There has been 100 respondent (investor) are taken as a sample.
 100% respondents are aware about share/debenture and mutual fund investment.
We have 61 male and 39 female respondents in our research.
 Most of our respondents are getting information from financial institution or
consultant for both equity and mutual funds. And thereafter they dependent on
brokers.
 In this research, it has been seen that both equity and mutual fund users are
changed their portfolio in period of less than 3 years.
 It has been found that AMC (Assets Management Company) is play significant
role in investing in mutual funds.
 Thereafter they consider expense ratio and credit rating factors.

1
 They give similar preference to risk and liquidity parameters.
 It can be found that quick gain is their primary objective investing in equity
funds. Then they focus on dividend and capital appreciation objectives.
 From the above table it can be concluded that the p value is 0.107 which is more
than 0.05. So that null hypothesis is accepted.
 Therefore, it indicates that there is significant relation between percentage of
savings and annual income.

CHAPTER :- 8

1
 CONCLUSION

Conclusion:
 Saving money is not enough. Each of us also need to invest one's savings
intelligently in order to have enough money available for funding the higher
education of one's children, for buying a house, or for one's own golden years.
The study recommends new investors to go for in both mutual funds and equities,
because of high risk and market instability.
 People need a systematic way of investing should go for mutual fund investing.
Investing with a fixed income strategy, should choose mutual fund as an
investment choice. Short term as well as medium term investors should choose
direct equity investing as an investment choice. Mutual fund investing is termed
as a long term horizon of getting a good return, as the fund is going in a
systematic way.

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 If an investor has got time in making a market study and managing his/her
portfolio, should invest in equity shares directly, otherwise go for mutual fund
investing. If an investor like in buying and selling stocks, managing the stocks in
his portfolio should choose direct investing in equity stocks.

To Conclude, we can see how investing directly into equity has provided much

greater return than investing in mutual funds. Investing directly in equity was also

safe in this case as the companies were relatively stable. But what we cannot forget is

that, the data is just based on 2 companies and 2 mutual fund schemes, and it is not

possible that they can represent all the companies and all the schemes out there.

Holding a good amount of quantity of either stocks or mutual fund schemes can lead

to great amount of wealth if given proper time. Mutual fund provides diversification

in a much cheaper rate, so it does provide a little safer route to wealth, but it is equally

vulnerable to market volatility. In order to bring more people into the market, mutual

fund industries should come with new products with different style of investing, like

funds which are more focused and not as much diversified.

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 CHAPTER :- 9

REFERENCE

1
Reference:
 Ranveer Raisinghania (2020) The better way of investing.

 c.srinivas yadav and hemanth n c (feb 2019) Performance of Selected

Equity Growth Mutual Funds in India.
 Prof. Kalpesh P Prajapati and prof. Mahesh P Patel (Jul 2021) Comparative
Study On Performance Evaluation of Mutual Fund Schemes Of Indian
Companies.
 E. priyadarshini and dr. a. chandra babu (2016) prediction of the net asset
values of indian mutual funds using auto- regressive integrated moving
average(arima).
 Rahul Singal, Anuradha Garg and Dr Sanjay Singla (May 2019),
have done Performance Appraisal of Growth Mutual Fund.
 Dr. Sandeep Bansal, Deepak Garg and Sanjeev K Saini (2018),
have studied Impact of Sharpe Ratio & Treynor’s Ratio on Selected Mutual Fund
Schemes.

Bibliography:
https://en.wikipedia.org/wiki/Financial_market
https://getmoneyrich.com/direct-equity-investment
https://www.investopedia.com/terms/m/mutualfund.asp
https://en.wikipedia.org/wiki/Mutual_fund
https://www.investopedia.com/articles/stocks/09/indian-stock
https://www.motilaloswal.com

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 CHAPTER: - 10

ANNEXURE

1
 QUESTIONAAIRS

Dear Respondents, This survey is aimed to know the perception of people towards
investment in Equity & Mutual fund in form of investment and to find the level of
awareness of stock market among Student/Professional & Retired.

1.NAME

2.GENDER
Male
Female
3.AGE
Below 20years
21 to 30years
31 to 40years
41 to 50years
50 to 60years
Above 60years
4.OCCUPATION
Business
Student
Service
Employee
Retired
5. MONTHLY INCOME
Less than 20000
20000-40000
40000-80000
Greater than 80000
6. DO YOU INVEST IN EQUITY & MUTUTAL FUND ?

Yes

1
NO

7. IF YOU WANT TO INVEST, WHICH INVESTMENT OPTION

WOULD YOU FEEL PROVIDES THE BEST RETURN?

Equity Shares
IPO
Mutual Fund
Bonds
Fixed Deposits
Debentures

8. WHICH FACTOR MOTIVATES YOU TO INVEST IN EQUITY

& MUTUAL FUND?

Return
Liquidity
Safety
Capital Appreciation
Other

9. WHAT PERCENTAGE OF YOUR INCOME WOULD YOU

INVEST IN EQUITY AND MUTUAL FUND?
Less than 5%
5% - 10%
10% - 15%
15% - 20%
20% - 25%
More than 25%

10. HOW DO YOU TRADE IN EQUITY AND MUTUAL FUND?

Intraday
Delivery
Speculation
Arbitragers
Hedging
Sip
Lumpsum

11. WHAT IS THE TIME HORIZON FOR INVESTING IN

EQUITY AND MUTUAL FUND?

Less than 1 month

1 – 3 months
3 – 6 months
6 – 12 months
More than 12 months

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12. WHAT IS THE RATE OF RETURN EXPECTED BY YOU
FROM EQUITY & MUTUAL FUND IN A YEAR?

5% - 10%
10% - 15%
15% - 20%
20% - 25%
25% - 30%
30% above

13. ARE YOU SATISFIED WITH THE CURRENT

PERFORMANCE OF EQUITY AND MUTUAL FUND IN TERMS
OF EXPECTED RETURN?

Fully Satisfied
Satisfied
Neutral
Unsatisfied

14. WHO INFLUENCED YOU TO ENTER INTO MARKET?

Friends
Relative
Advisors
Media
Research Report
Magazines

15. WHICH FACTOR DO YOU CONSIDER IS MOST

IMPORTANT WHILE SELECTING THE SECTORS?

Market Trend
Profitability
Economic Condition
Industry Condition
Government Policy

16. RANK THE FOLLOWING SECTORS BASED ON YOUR

PERFORMANCE FOR INVESTMENT.

1 2 3 4 5
Oil and Gas sector
Infrastructure sector
Banking sector
Automobile sector
IT sector

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17. RANK THE MOST IMPORTANT FACTOR SELECTING A
COMPANY OF YOUR CHOICE.

1 2 3 4 5
Earnings per Share
Dividend
Market Capitalization
Performance of Company
PE Ratio