Project Kamal 233

7/30/2019 Project Kamal 233

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Project on

Analysis of Risk and Return of Stock and Mutual

fund with Reference to Fortune Financial

Services(India) Ltd.

By -

Shivakumar D K

USN: 2SD11MBA10


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BACKGROUND OF THE ORGANIZATION

Fortune Financial Services (I) Limitedwas incorporated in the year 1991 by J T Poonja,Chairman and Nimish C Shah, Vice Chairman andManaging Director. Fortune Group which comprises

the holding company Fortune Financial Services(India) Limited and its wholly-owned subsidiaries, isengaged in providing a range of Financial Servicesright from Equities and Derivatives trading, Equity

Research, Commodities Trading, PortfolioManagement Services, Distribution of MutualFunds, IPO & Insurance products and alsoInvestment banking services.


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Vision & Mission Statement

VISIONTo empower the investor with quality advice and superior

service to help him takes better investment decisions. We believe

that our growth depends on Client satisfaction

MISSION

To provide the best customer service and product innovation

tuned to diverse needs of client. Continuous up-gradation with

changing technology, while maintaining human values.

Respond to progressive globalization and achieving international

standard Efficiency and effectiveness built on ethical practices


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Products/Services Profile

Equity Broking

Derivative Market

Depository ServicesCommodities Broking

Portfolio Management

Services

Distribution


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Competitors Information

GEOJIT BNP Paribas

Anand Rathi

India bulls India Info line

Share khan

Edelweiss Cap


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Mckensys 7s Framework


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SWOT analysis

STRENGTHS

Fortune service ltd having a positive image in the existing clients.

Company also offering wide product range to enable the clients to

choose the best alternative.

Company having well-maintained infrastructure.

And also have dedicated, Intelligent and Loyal staff

WEAKNESS

Less awareness in the market.

Time consuming process for account opening, resolvingthe problems of the customers, etc.

Service quality is not maintained accordingly how they

are promoted


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Continued.OPPORTUNITIES:

We have wide range of investors.

Opportunity to attract the customers who dissatisfied by otherbrokers & DPs

Large potential market for delivery and intra-day transactions.

An indirect opportunity generated by the market from its bullishness

THREATS

Increasing competition against other brokers & DPs.

Decreasing rates of brokerage in the market.

A threat of losing clients for any kind of weakness of the company.


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OBJECTIVES OF THE STUDY

To study the risk and return of mutual fundsand equity shares with specific reference to

Fortune Financial Services Ltd.

Comparing mutual funds with equity shares.

To understand the concept of mutual funds.

To understand the key factors towards its success


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STATEMENT OF PROBLEM

In the current economic scenario interest rates arefalling and fluctuation in the share market has put

investors in confusion. One finds it difficult to take

decision on investment. This is primarily, because

investments are risky in nature and investors have toconsider various factors before investing in

investment avenues. Therefore the study aims to

equity and mutual fund schemes in form their risk,

return & liquidity and also creating awareness about

Equity and Mutual Fund Schemes among the

investors


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METHODOLOGY

BSE being the premier exchange of India was chosen forselecting stocks. It is widely accepted that BSE Sensex isthe one of the most reliable index of the stock exchangethat reflects present day market condition. Since it is notpossible to compare all the 30 scripts in the index with all

Mutual Fund Schemes due to time and resourceconstraints, sampling techniques were considered.Randomly selected samples will facilitate inference of thepopulation, in our case BSE Sensex and mutual fund

industry in India.

Hence by stratified random sampling 5 scrips out of 30sensex and 5 mutual fund schemes out of whole mutual

fund industry were selected


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ANALYSIS & INTERPRETATION

particulars Asian Paints Airtel Wipro TATA SBIMotors

n 24 24 24 24 24

xy 0.042060475 0.06177 0.05399543 0.1859011 0.10704119

x -0.086524232 -0.0865242 -0.0865242 -0.0865242 -0.0865242

y 0.476817073 -0.1037121 -0.2000303 -0.5499475 -0.1206698

x 0.08284045 0.08284045 0.08284045 0.0828405 0.08284045

(x) 0.007486443 0.007486443 0.007486443 0.007486443 0.007486443

Formula (n*xy-x*y)/(n*x)-

(x)

n*xy 1.0094514 1.48248 1.29589032 4.461626184 2.56898856x*y -0.041256231 0.008973607 0.017307468 0.047583785 0.010440864

n*x 1.9881708 1.9881708 1.9881708 1.9881708 1.9881708

(x) 0.007486443 0.007486443 0.007486443 0.007486443 0.007486443

value 0.530477068 0.743938017 0.645525799 2.22854408 1.291749332

Interpretation


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COMPARATIVE ANALYSIS ON EQUITY

AND MUTUAL FUNDS


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FINDINGS1) As with any investment in securities, the NAV of units issued

under the schemes can go up or down, depending on factors and forcesaffecting capital market.

2) Choice of scheme mutual funds offers around 40 mutual fundsschemes to suit clients varying needs over a lifetime.

3) No control cost, since investors do not directly monitor thefunds operations they cannot control the cost effectively.

4) Well regulated, the operations of mutual funds are regularlymonitored by SEBI. They functioned within the provisions of strict

regulations, to protect the investors.

5) Mutual funds and shares are the highly risk and also moreprofitable business and equity shares are less risky compared to mutualfunds.


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SUGGESTIONS1) Proper awareness must be given to general public about the

mutual funds.

2) While selecting the mutual funds schemes, the investors

identify the scheme which gives good return and at the same

time safely.

3) By analyzing last three years, mutual funds performance, we

can identify the right and profitable schemes among these

schemes.4) Company has to increase its publications for investors view.

5) Company has to give safety to investors capital as possible.


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CONCLUSION

Since the Fortune Financial Services (India) Limited is holding

company and one of good company in India which is providingsafety services to the investors In the present world the

management of investment is a very important concept

because of the availability of various investment options and

their different characteristics. Investment management is

considered to be both art and science thus requiring knowledge

and skill.

This project mainly aim at projecting Mutual Funds and one of

the investment options Equity Share. Mutual fund includes all

the major advantage of other investment options by

eliminating various disadvantages. From this study we can find

the risk and return associate with the various portfolios of

companies.

Project Kamal 233

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