mutual fund final

7/29/2019 mutual fund final

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INTRODUCTION


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OMPANY PROFILE

Sunflag Iron and Steel Co. Ltd. is a prestigious unit of the SUN FLAG GROUP. Sunflag Steel

is a member of the Sunflag Group of Companies. India.

Plant Layout

The whole plant of SISCO situated in 550 hector, and 450 acre accquired by

plant. More than 1300 manpower working in plant including staff, 2500 contract labour.

Foundation

The Sunflag group, founded by Shri Satyadev Bharadwaj in Kenya in 1937, today

has its operation spread over 6 countries. Sunflag has diversified range of activities in Kenya,

Tanzania, Nigeria, Cameroon, U.K. & Thailand. .

Sunflag Iron & Steel Company Ltd. was incorporated on 12th September, 1984 as a

Public Limited Company in the State of Maharashtra forsetting up a composite steel plant for the

manufacture of Mild and Alloy Steel Rolled Products in Bhandara district, near Nagpur, inMaharashtra.

Within a short period of its inception in 1989, the SUNFLAG STEEL has established

itself as a major global force. This modern complex pulsating with world-class technology,

expert human resources and a commitment to excellence, has created a distinct niche in spring

steel and attained the position of market leader in the segment.

Business Description:

Sunflag Iron & Steel Company Limited. The Group's principal activity is to manufacture

automobile spring steel. The products include rolled products, billets and sponge iron. It also

generates power from its captive plant. Today SUNFLAG STEEL has also embarked on an


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export thrust and is regularly receiving prestigious orders from Japan and many other Far East,

Afro-Asian and Middle-East countries.

During the year the power plant has generated 1,500.02 lacs KW of power. It exports

steel products to Japan, Far East, Afro Asian and Middle East countries.

Certificates

Sunflag is the first composite Steel in India accredited with the prestigious ISO 9002, QS 9000,

ISO 9001,ISOts 16949 certificate of systematic quality monetary. The plant has capacity of

produce 200,000 tunes per annum high quality special steel using Iron ore & non cooking coal as

basic inputs. SISCOs establishment cost is more than 10 million.

Sunflag is Actively engaged inPollution Control.

SISCO code of Business PrinciplesSISCO Code.

The Company also runsSunflag SchoolandSunflag Hospitalfor the benefit of its
http://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/pollution.htmhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/pollution.htmhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/pollution.htmhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/sisco.pdfhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/sisco.pdfhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/sisco.pdfhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/School.htmlhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/School.htmlhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/School.htmlhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/hospital.htmlhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/hospital.htmlhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/hospital.htmlhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/hospital.htmlhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/School.htmlhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/sisco.pdfhttp://www.sunflagsteel.com/Sunflag%20Iron%20and%20Steel_files/pollution.htm


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Products

SISCO produces various part of automobile. Product of SISCO

SPRING STEEL:

CORBAN STEEL:

ALLOY STEEL:

FREE CUTTING STEEL:

BALL BEARING STEEL:


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Mutual Fund

The financial market plays a crucial role in the in the economic development of a

country by facilitating the allocation of scarce resources. Financial markets

essentially involve the allocation of resources. This can be thought of as the brain

of the entire economic system, the locus of central decision-making; if they fail,

not only will the sectors profit be lower than would otherwise have been, but the

performance of the entire economic system may be impaired.

The efficiency of financial market how ever, depends on the existence of active

and efficient financial intermediaries in the system. Deposit taking institutional

investor is the important financial intermediaries involved in the task of allocating

assets. Structural changes in the financial market have induced a reverse trend in

financial intermediation, i.e. financial disintermediation, in which the central role

of banking is being taken over by investment institutions and institutional

investors. The shift from a credit-based system to a financial has initiated the

process of disintermediation, and capital market based factors like insurance,

pension funds and mutual funds are increasingly playing the central role.

The reforms have successfully dismantled the entry barriers, with the result that

today there are domestic and foreign financial institutions, like mutual funds,

broking firms and insurance companies, operating in the Indian market. The

introduction of capital adequacy norms, prudential regulation and world class

regulatory mechanisms to protect the interest of investor, besides the strict

requirement of disclosure, have given a boost to the confidence of domestic and

foreign investors. The Indian economy has slowly integrated itself with the global

economy and financial market.


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What is a Mutual Fund?

Mutual fund is a mechanism for pooling the resources by issuing units to the

investors and investing funds in securities in accordance with objectives as

disclosed in offer document.

Investments in securities are spread across a wide cross-section of industries and

sectors and thus the risk is reduced. Diversification reduces the risk because all

stocks may not move in the same direction in the same proportion at the same time.

Mutual fund issues units to the investors in accordance with quantum of money

invested by them. Investors of mutual funds are known as unit holders. The profitsor losses are shared by the investors in proportion to their investments. The mutual

funds normally come out with a number of schemes with different investment

objectives which are launched from time to time.

A mutual fund is required to be registered with Securities and Exchange Board of

India (SEBI) which regulates securities markets before it can collect funds from

the public.


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How is a mutual fund set up?

A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset

Management Company (AMC) and custodian. The trust is established by a sponsor

or more than one sponsor who is like promoter of a company. The trustees of the

mutual fund hold its property for the benefit of the unit holders. Asset Management

Company (AMC) approved by SEBI manages the funds by making investments in

various types of securities.

Custodian, who is registered with SEBI, holds the securities of various schemes of

the fund in its custody. The trustees are vested with the general power ofsuperintendence and direction over AMC. They monitor the performance and

compliance of SEBI Regulations by the mutual fund.

SEBI Regulations require that at least two thirds of the directors of trustee

company or board of trustees must be independent i.e. they should not be

associated with the sponsors. Also, 50% of the directors of AMC must be

independent. All mutual funds are required to be registered with SEBI before they

launch any scheme. However, Unit Trust of India (UTI) is not registered with

SEBI (as on January 15, 2002).

What is Net Asset Value (NAV) of a scheme?

The performance of a particular scheme of a mutual fund is denoted by Net Asset

Value (NAV).

Mutual funds invest the money collected from the investors in securities markets.

In simple words, Net Asset Value is the market value of the securities held by the


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scheme. Since market value of securities changes every day, NAV of a scheme

also varies on day to day basis. The NAV per unit is the market value of securities

of a scheme divided by the total number of units of the scheme on any particular

date. For example, if the market value of securities of a mutual fund scheme is Rs

200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to the

investors, then the NAV per unit of the fund is Rs.20. NAV is required to be

disclosed by the mutual funds on a regular basis - daily or weekly - depending on

the type of scheme.

- Scope for Development of Mutual Fund

A Mutual Fund is the most suitable investment for the common man as it offers an

opportunity to invest in a diversified, professionally managed basket of securities

at a relatively low cost. India has a burgeoning population of middle class now

estimated around 300 million. A typical Indian middle class family can have liquid

savings ranging from Rs.2 to Rs.10 Lacs today. Investments in Banks are liquid

and safe, but with the falling rate of interest offered by Banks on Deposits, it is no

longer attractive. At best a part can be saved in bank deposits, but what is the other

sources of investment for the common man? Mutual Fund is the ready answer.

Viewed in this sense globally India is one of the best markets for Mutual Fund

Business, so also for Insurance business. This is the reason that foreign companies

compete with one another in setting up insurance and mutual fund business units in

India. The sheer magnitude of the population of educated white collar employees

provides unlimited scope for development of Mutual Fund Business in India.


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Benefits of Mutual Funds

There are numerous benefits of investing in mutual funds and one of the key

reasons for its phenomenal success in the developed markets like US and UK is the

range of benefits they offer, which are unmatched by most other investment

avenues. We have explained the key benefits in this section. The benefits have

been broadly split into universal benefits, applicable to all schemes, and benefits

applicable specifically to open-ended schemes.

1. Professional ManagementThe investor avails of the services of experienced and skilled professionals

who are backed by a dedicated investment research team which analyses the

performance and prospects of companies and selects suitable investments to

achieve the objectives of the scheme.


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2. DiversificationMutual Funds invest in a number of companies across a broad cross-section of

industries and sectors. This diversification reduces the risk because seldom do

all stocks decline at the same time and in the same proportion. You achieve

this diversification through a Mutual Fund with far less money than you can

do on your own.

3. Convenient Administration

Investing n in a Mutual Fund reduces paperwork and helps you avoid many

problems such as bad deliveries, delayed payments and unnecessary follow up

with brokers and companies. Mutual Funds save your time and make

investing easy and convenient.

4. Return PotentialOver a medium to long-term, Mutual Funds have the potential to provide a

higher return as they invest in a diversified basket of selected securities.

5. Low CostsMutual Funds are a relatively less expensive way to invest compared to

directly investing in the capital markets because the benefits of scale in

brokerage, custodial and other fees translate into lower costs for investors.


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6. LiquidityIn open-ended schemes, you can get your money back promptly at net asset

value related prices from the Mutual Fund itself. With close-ended schemes,

you can sell your units on a stock exchange at the prevailing market price or

avail of the facility of direct repurchase at NAV related prices which some

close-ended and interval schemes offer you periodically.

7. TransparencyYou get regular information on the value of your investment in addition to

disclosure on the specific investments made by your scheme, the proportion

invested in each class of assets and the fund manager's investment strategy

and outlook.

8. FlexibilityThrough features such as regular investment plans, regular withdrawal plans

and dividend reinvestment plans, you can systematically invest or withdraw

funds according to your needs and convenience.

9. Choice of SchemesMutual Funds offer a family of schemes to suit your varying needs over a

lifetime.


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10.Well RegulatedAll Mutual Funds are registered with SEBI and they function within the

provisions of strict regulations designed to protect the interests of investors.

The operations of Mutual Funds are regularly monitored by SEBI.

11.Understanding and Managing RiskAll investments whether in shares, debentures or deposits involve risk: share

value may go down depending upon the performance of the company, the

industry, state of capital market and the economy; generally, however longer

the term, lesser the risk; companies may default in payment of

interest/principal on their deposits/bonds debentures; the rate of interest on

investment may fall short of the rate of inflation reducing the purchasing

power.

While risk cannot be eliminated, skillful management can minimize risk.

Mutual fund helps to reduce risk through diversification and professional

management. The experience and expertise of Mutual Fund managers in

selecting fundamentally sound securities and timing their purchases and sales

help them to build a diversified portfolio that minimize risk and maximizes

returns.

12.Tax BenefitsThe incomes under Mutual Funds are much more Tax efficient than any fixed

income security due to the following benefits:-


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Section 80L of the income Tax Act ,1961 enables tax free income upto rs 15000 and dividends from MF s are eligible for this benefit.

When you invest for over a year, the tax payable on encashment isLong term Capitals gains tax at 20%. Once also get an indexation

benefit which has been approximately 8% per year. This reduces the

taxable income and thus decreases the tax liability.

There is also an opportunity to set off capital losses against gains fromincome schemes.

Full exemption from capital gains tax as it comes under Section54EA/EB of the income tax Act.

One has to pay tax only when he encash units, but have to pay tax onthe interest earned on other debt instruments every year on an accrual

basis, even though he receives the interest later. This generates higher

post tax returns compared to other debt instruments.

Tax is just like a monster that frightens a number of individuals through

out the nation. There are just tow way to fight with this monater:

. Conceal/Depress Income

. Make tax efficient investments.

Perhaps the second option is far better than the first as it gives the peace

of mind together with a feeling that one is a responsible citizen of the

nation. With increasing amount of awareness that is taking birth in the

minds of investors, mutual fund has become cynosure of the eye of the

several investors.

The taxes available are tow kinds:


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. To the mutual fund- as explained below in No 1

. To the Investor- as explained below in No 2

ADVANTAGES OF MUTUAL FUND

Portfolio Diversification Professional management Reduction / Diversification of Risk Liquidity Flexibility & Convenience Reduction in Transaction cost Safety of regulated environment Choice of schemes Transparency.

DISADVANTAGE OF MUTUAL FUND

No control over Cost in the Hands of an Investor No tailor-made Portfolios Managing a Portfolio Funds Difficulty in selecting a Suitable Fund Scheme


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2.6 - Investment criteria

Lower cost

It is a lower cost of investment as compare to other mode of investment

option in the market. Here the investor can invest a minimum of Rs500

in the scheme of ELSS (Equity Link Saving Scheme).

Less paper work

Here less paper work is require than other. The investor give his detail

information like his/her name,age,address,phone no., pan card no,

nominee name and address(in case of minor) and three full signature of

the candided.

No cash Transactions

Investor need not require paying cash, instead of cash investor has to

pay cheque or demand draft. Which help to prevent misappropriation

and also save the tax. Here the investor just writes the product name of

mutual fund and sign on it. It also saves the time.

No Age Bar

There is no age bar of investor here any age group can invest in mutual

fund. In case of minor(below 18 year) there is a nominee, so a child can

invest through his guardian and a person having age of 70 also invest in

mutual fund ,which is not possible in other investments.

Service or any kind of income group

A service holder or any kind of income group or a student or

unemployed people can invest in mutual fund but the person is a

rational human being having sound knowledge of investment company.


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OBJECTIVES OF THE STUDY

The objective of the study is classified into primary and secondary objectives asthey are follows, Primary objective.

1. The primary objective of this study is to study the job satisfaction level ofemployees and to suggest measures, which might be help the organization in

improving the "job satisfaction level" among the employees.

2. Secondary objectives To understand the level of employee satisfaction andfactors which mak.

3. 0bjectives of all levels of personnel are served to the highest possible degree.4. Objectives of society are dually considered and served"


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HYPOTHESIS

1. The financial management of the company is as per the industry norms andthe quantum of the funds employed is reasonable.

2. The sources of funds are proper.3. The liquidity position of the company is very good.4. The company having quotable mutual fund control.5. The overall return on funds employed is optimum.6. That liquidity position of concern is satisfactory.


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DATA COLLECTION

Research is a process of systematic and in-depth study of research

of any topic, subject backed by the collection, presentation andinterpretation of relevant data. Methodology is important tool in any

research work. It acts as a guideline and leads to completion of

research project. It consists of various steps that are generally adapted

by researcher in study in problem along with logic behind them. On

the basis of general guideline, a model of the following steps is

prepared and presented in the dissertation work.

A) Selection of subject:

Selection of subject or topic for dissertation work is a very

important job for researcher. The difficult task is the information

which is required for the purpose of research. It should be easilyavailable.

Researcher has chosen this subject after discussion with guide and

with other person.

B) Title of dissertation:

In view of the object behind the selection of subject researcher

has chosen the topic entitled.


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C)Collection of data:

The research methodology would like to gather information for

carrying out analysis by using the following method during research

study.

Secondary data:

Financial search is the systematic design, collection and analysisof data and finding relevant to specific financial aspects of the

company.

The data was collected through financial statements like:1)Explorative.2)Descriptive3)Experimental4)Descriptive


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DATA ANALYSIS

1. On the basis of Age of the Investors:

Age

Group

50

No. of

Investors

0 4 3 2 1 0

Interpretation:

According to this chart out of 10 Mutual Fund investors of Bhandara the most

are in the age group of 31-35 yrs. i.e. 40%, the second most investors are in the

age group of 36-40yrs i.e. 30% and the least investors are in the age group of

below 46-50 yrs.

0

4

3

2

1

00

0.5

1

1.5

2

2.5

3

3.5

4

4.5

50

Investors

investedinMutualFund

Age group of the Investors


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2. Occupation of the investors of Bhandara.

.

Interpretation:

In Occupation group out of 10 investors, 40% are Pvt. Employees, 20% are

Businessman, 30% are Govt. Employees, 0% are in Agriculture and 10% are in

others.

34

2

01

00.5

11.5

22.5

33.5

44.5

Govt. Service Pvt. Service Business Agriculture Others

No.ofInvestors

Occupation of the customers

Occupation No. of Investors

Govt. Service 3Pvt. Service 4

Business 2

Agriculture 0

Others 1


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(3) Investors invested in different kind of investments of Bhandara.

Priority of Investments No. of Respondents %

Saving A/C 98

Fixed deposits 50

Insurance 99

Mutual Fund 10

RD 45

Real Estate 35

Interpretation: From the above graph it can be inferred that out of 200 people,

98 % people have invested in Saving A/c, 91.6% in Insurance, 51.6% in Fixed

Deposits, 11% in Mutual Fund, 43% in RD and 21.6% in Real Estate.

98

50

99

10

45

35

0 50 100 150

Saving A/c

Insurance

RD

No.of Respondents%

priorityofinvestment


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4. Educational Qualification of investors of Bhandara.

Educational

Qualification

Number of

Investors

Graduate/ Post Graduate 5

Under Graduate 2

Others 3

Total 120

Interpretation:

Out of 120 Mutual Fund investors 50% of the investors in Bhandara

are Graduate/Post Graduate, 20% are Under Graduate and 30% are

others (under HSC).

50%

20%

30%

Graduate/Post Graduate Under Graduate Others


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5. Preference of factors while investing

Factors (a)

Liquidity

(b) Low

Risk

(c) High

Return

(d) Trust

No. of

Respondents

10 31 40 19

Interpretation:

Out of 100 People, 40% People prefer to invest where there is HighReturn, 31% prefer to invest where there is Low Risk, 10% prefer

easy Liquidity and 19% prefer Trust

10%

31%

40%

19%

Liquidity Low Risk High Return Trust


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6. Awareness about Mutual Fund and its Operations

Interpretation:

From the above chart it is inferred that 39% People are aware of

Mutual Fund and its operations and 61% are not aware of MutualFund and its operations.

39%

61%

Yes No

Response Yes No

No. of Respondents 35 55


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7. Channel Preferred by the Investors for Mutual Fund Investment

Channel Financial Advisor Bank AMC

No. of

Respondents

6 1 3

Interpretation:

Out of 10 Investors 60% preferred to invest through Financial

Advisors, 30% through AMC and 10% through Bank.

60%

10%

30%

Financial Advisor Bank AMC


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CONCLUSION

The global financial market has transformed from Sellers market to Buyers

market with liberalization, Globalizations and privatization. The Indian mutual

fund market has also become global when foreign funds entered, they came up

with probably best marketing strategies to beat Indian giants have come up with

aggressive strategies to beat the foreign funds. Now the cutthroat competition goes

on and on.

Mutual funds have rewarded investors with hand some returns. The good news is

that this is poised to become a trend. The mutual funds have strengthened their

distribution networks, become more transparent and investor friendly and are

rewarding investors. The mutual fund is finally, proving itself as a vehicle of safety

for investments. But it is still the fund managers investment philosophy that

makes the difference between the winner and the losers.

Careful market analysis, consumer segmentation, identification of investor needs,

service designing are to be carried out for the successful implementation of

different schemes by mutual fund organizations. Regulatory measures by SEBI

should be clearly explained to the investors. Positioning of the schemes and their

branding will help a lot for growth of the industry. Creativity and innovation are

the means of marketing in the days to come for Indian mutual fund market.


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SUGGESTION

Mutual Fund is one of the largest mutual funds and well-established fund

house in the country with consistent and above average fund performance

across categories since its incorporation on December 10 /1999. The single

most important factor that drives Mutual Fund is its belief to give the

investor the chance to profitably invest in the financial market, without

constantly worrying about the market swings.

1) Fund managers should continuous Investor awareness Programs to

make the investors aware of technicalities of fund management and

the return aspects.

2) Agents, Service personnel must be able to give correct and timely

information about NAV and the return on different schemes.

3) Monthly income scheme should be introduced.

4) Scheme should be offered as per the needs and the requirement of the

industries.

5) The regulatory norms provided by the regulatory authorities like SEBI

are required to be known to all including investors.


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LIMITATION

Some of the persons were not so responsive. Possibility of error in data collection because many of investors may havenot given actual answers of my questionnaire.

The sample size may not adequately represent the whole market. Some respondents were reluctant to divulge personal information whichcan affect the validity of all responses.


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BIBLIOGRAPHY

www.moneycontrol.com www.onlineresearchonline.com www. mutualfundsindia.com

Books

Fact Sheet And Statement Mutual Fund Hand Book
http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.onlineresearchonline.com/http://www.onlineresearchonline.com/http://www.onlineresearchonline.com/http://www.moneycontrol.com/

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