A Study of Mutual Funds from &
SI
Different Sectors in lndia r:z
* Sonali Agan+'ol Fa
** Chand Thndon k
**?k P S. Raychaudhuri
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Abstract I}i;
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Savings constitute a major part of GDP in lndia. These savings flow into different investment avenues. People commit their
funds in expectation of some future retums in terms of revenue or capital. The main hurdle in this process is the selec{ion of
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the appropriate security which involves complete market and secwity analysis along with portfolio management. This
becomes a difficult task for ordinary investors, given their busy life. This leads the investors to resort to indirect methods of i1
investing, the most prominent and successful being the mutual funds rvhich manage the portfolio on behalf of the investors. ,e
However, the selection of the conect mutual fund is an important task. The present study attempted to analyze and compare a
fuw selected mutualfunds to help the investors in fund selection. :.t
Keywords: investment, mutual funds, BSE SENSEX, UTI
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JEL Cfassification: G'l 0, GlI, G17, G23
PaperSubmissionDate:September5,2015; PapersentbackforRevision:December11,2015; PaperAcceptanceDate: B
Ilecember26, 2015
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he Indian stock market now is more volatile than it ever was. The prices rise and fall every second. In this
market scenario, it becomes diffrcult for an investor to choose the correct investment avenue so that there
is no loss on the invested principal amount and apart from that, there are some positive retums. It becomes
diffrcult for individual investors to analyze each and every security to make their portfolio. So, they tend to look
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have to buy the units of these funds and the rest is done by the fund managers. They manage the portfolio of the
investors on their behalf for a fee. Mutual funds are in the form of a trust (usually called an asset management
company) that manages the pool of money collected from various investors for investment in various classes of .11
assets to achieve certain financial goals. In return for such services, asset management companies charge small
fees. Every mufual fund launches different schemes, each with a specific objective. Investors who share the l
same objectives invest in that particular scheme. Each mutual fund scheme is managed by a fund manager with
the help of his/her team of professionals. One fund manager may be managing more than one scheme also. The
mutual funds usually invest funds in bonds, equities, debentures, call money, and so forth depending on the
objectives and terms of scheme floated by the mutual fund. There are mutual funds which even invest in gold or
other asset classes.
3,:
* Research Scholar FMIT,JamiaHamdardUniversity, Mehrauli - BadarpurRd, HamdardNagar, NewDelhi- 110062. :t
E-mail: sonali 1 600@[Link]
** Professor, New Delhi Institute of Management, 60 & 50 (B&C), Tughlakabad InstitutionalArea, Behind Batra Hospital,
New Delhi-1 1.0 062.E-mail: chandtandon@[Link]
*** Assistant Professori FMIT, Jamia HamdardUniversity, Mehrauli - Badarpur Rd, HamdardNagar, New Delhi-110 062.
Email: psray6 1 @[Link]
50 lndian Journal of Research in Capital Ma*ets . October - December 2015
