Investment Securities

Presentation on INVESTMENT ANALYSIS OF EQUITY AND MUTUAL FUND : 

Presentation on INVESTMENT ANALYSIS OF EQUITY AND MUTUAL FUND Submitted By : PARVESH TULSEJA MBA 3rd Semester 90822265942

COMPANY PROFILE : 

COMPANY PROFILE

COMPANY PROFILE : 

COMPANY PROFILE GROUP PROFILE Master Trust Group is one of the leading equity brokerage and a financial service provider house in India. Its strong belief is in the investment culture, attitude and inculcating a very strong approach towards the value investing ideas. The seeds of Master Trust Group were sown by Mr. Harjeet Singh Arora in 1983. Mr. S Singhania joined as co-promoter in 1993. What they started as consultancy organisation, is today a well diversified financial services organisation. COMPANY LOGO

Master Minds Trusted Hands : 

Mission of Company To always earn the right to be our clients’ first choice through personal & social wealth maximization Vision of Company To be well diversified financial shop for wealth creation and being an ideal service provider in our domain of business Corporate Philosophy Becoming an expert at anything takes a strong will, unyielding determination and pure ability Master Minds Trusted Hands

SWOT Analysis of the Company : 

SWOT Analysis of the Company Strengths All India presence Skilled HR employed Nationalized marketing network Weaknesses Co. doesn’t have space to expand Threats Threat from its competitors Economic Fluctuations Opportunities Arrival of new investment portfolios Can Expand its business to cover international markets

Group of Companies : 

Group of Companies MASTER COMMODITIES BROKERS MASTER FOREX SERVICES LTD MASTER CAPITAL SERVICES LTD MASTER INSURANCE BROKERS MASTER STOCK BROKERS LTD PRIME INDUSTRIES LTD MASTER PORTFOLIO SERVICES LTD MASTER TRUST LTD

Product & Services : 

Product & Services The different kinds of Products & Services provided by mastermart are :- Equity Investments Insurance Depository Services Mutual Fund Financial Planning Merchant Banking Forex Loan against shares My portfolio News and customer care

INVESTMENT ANALYSIS OFEQUITY AND MUTUAL FUND : 

INVESTMENT ANALYSIS OFEQUITY AND MUTUAL FUND

OBJECTIVE OF RESEARCH : 

OBJECTIVE OF RESEARCH To study about the services provided by Master Capital Service Ltd., which helps the investor to invest in the competitive market. To study the working of Mutual Fund and Stock Market. To study the characteristics of these two investment tools which attracts the investor to invest. To study the various factors considered by customer while going for investment in mutual fund. To know about which investment tool consider for safe investment and better returns.

RESEARCH METHODOLGY : 

RESEARCH METHODOLGY The main aim of my Research is try to find out the truth that is hidden which has not been discovered yet. SAMPLING UNITS In my Research study sampling units are the people of Chandigarh and Mohali region who invest in both Mutual Funds and Stock Market based on primary data collection. SIZE OF SAMPLE My Research sample size is 75. TYPE OF SAMPLE Most of the respondents are between the age of 35-45 and above 45. They are high net worth individual.

MUTUAL FUND : 

MUTUAL FUND

Mutual Fund : 

Mutual Fund A Mutual Fund is a diversified, professionally managed portfolio of securities that pools the assets of individuals and organizations to invest toward a common objective such as current income or long-term growth. The biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns. The thing which must be remembered by the investors is "INVESTMENT IN MUTUAL FUND IS SUBJECT TO MARKET RISK".

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Mutual Fund Concept Flow Chart Pool Their Money With Invest in Passed back to Generates

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Types of mutual funds By Structure Open-ended funds Close-ended funds Interval By Investment objective Growth funds Income funds Balanced funds Other schemes Tax saving schemes Special schemes Sector specific schemes

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Benefits of MF Professional Management Diversifications Convenience Return potential Low costs Liquidity Transparency Flexibility Choice of schemes Tax benefits Government regulation Safety from loss due to ….unethical Practices Product structure

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Drawbacks of MF No Guarantees Fees and commissions Taxes Management risk Misleading Advertisements Fluctuating Returns Problem Regarding Allotment of Shares Lack of Expert Advice Limited Funds

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SYSTEMATIC INVESTMENT PLANS (SIP) SIP or systematic investment planning is method through which investor can invest in mutual funds through small and periodic installments. In fact you can invest as low as Rs. 1000/- on a monthly basis. Moreover you can also select the tenure of the installments. We recommend minimum investment tenure of 3 years Why is SIP a Smart choice? It Builds Investment Discipline Its Affordable and Convenient It Helps in compounding your wealth It fights inflation It helps to plan for your Financial Goals It helps to save you taxes

EQUITY INVESTMENT : 

EQUITY INVESTMENT

EQUITY STOCK : 

EQUITY STOCK A share of stock is the smallest unit of ownership in a company. If you own a share of a company’s stock, you are a part owner of the company. There are two types of stock: Common stock ( Equity Shares ) Preferred stock ( Preference Shares ) Most of the stock held by individuals is common stock.

FINANCIAL MARKET : 

FINANCIAL MARKET A financial market is one in which financial securities are issued and traded. Financial securities are issued by borrowers such as the Govt., companies and financial institutions. TYPES OF FINANCIAL MARKET

FACTORS AFFECTS INVESTMENT DECISION TO INVEST IN THE MARKET : 

FACTORS AFFECTS INVESTMENT DECISION TO INVEST IN THE MARKET PAST MARKET TRENDS YOUR RISK APPETITE INVESTMENT HORIZON INVESTMENT NEEDS EXPECTED RETURNS The information has to be interpreted and analyzed and the intrinsic value of the share determined. This intrinsic value must, then, be compared against the market value the fundamentalists say, and only then can an investment decision be taken.

MUTUAL FUNDS V/s INDIVIDUAL STOCKS : 

MUTUAL FUNDS V/s INDIVIDUAL STOCKS 1. Investment in equity share represents investments in a particular company alone. But in MF investment refers to parts of shares of a large number of companies. 2. If a particular company fails ,then share holder will suffer a lot, But MF holders are able to withstand that risk by means of their diversified companies. 3. Equity investment is a vehicle for speculators, But MF is a vehicle for genuine & conservative investor.

ANALYSISANDINTERPRETATION : 

ANALYSISANDINTERPRETATION

Question-1 Which of the following investment vehicles are you most comfortable with? : 

Question-1 Which of the following investment vehicles are you most comfortable with? Interpretation :- Most of respondents are feel comfortable with FDs and MFs. Fixed Deposit (32%) Insurance ULIPS (26%) Mutual Funds (33%) Stocks (9%)

Question-2 Which option of dividend will you prefer while investing in Mutual Funds? : 

Question-2 Which option of dividend will you prefer while investing in Mutual Funds? Interpretation :- According to results many people choose growth option of dividend. . Growth (57%) Dividend (30%) Dividend Reinvest (13%)

Question-3. The most important component do you consider of follow while investing? : 

Question-3. The most important component do you consider of follow while investing? Interpretation :- While investing investor consider both factors risk and return rate of investment. Return (12%) Risk (17%) Brand Image (3%) Risk & Return Both (68%)

Question-4. You invest in a Mutual Funds because:- : 

Question-4. You invest in a Mutual Funds because:- Interpretation :- According to results all the features important to consider while invest Tax Saver (22%) More Profits (25%) Current Income (18%) Growth & Income (35%)

Question-5. You prefers to invest in :- : 

Question-5. You prefers to invest in :- Interpretation :- Most of investors prefers to invest in balance fund type of MF. Debt Fund (25%) Equity Fund (23%) Balance Fund (34%) ELSS (18%)

Question-6. You normally comes to invest in the Market with :- : 

Question-6. You normally comes to invest in the Market with :- Interpretation :- All the investors needs professionalism to manage their funds. Broker suggestion (40%) Friends recognition (20%) Media Advertisement (13%) Personal Interest (7%)

Question-7. What time horizon do you consider suitable for achieving your investment objectives? : 

Question-7. What time horizon do you consider suitable for achieving your investment objectives? Interpretation :- Many people want to achieve their objectives in short time investment. 0 - 2 years (57%) 2 – 4 years (29%) 4 – 6 years (14%) More than 6 years (zero)

Question-8. According to you which investment tool is more safe : 

Question-8. According to you which investment tool is more safe Interpretation :- As result shows the mutual fund investments are more safer than equity Mutual Funds (87%) Equity Investments (13%)

Question-9. Mutual funds are a source of only short term investment and Equity for long term investment. Do you agree with this statement? : 

Question-9. Mutual funds are a source of only short term investment and Equity for long term investment. Do you agree with this statement? Interpretation :- 44% respondents agree that MFs are good a source of short term investments compare to equity. Yes (44%) No (28%) Can’t Say (28%)

Question-10. Would you want to continue investing in market in the near future? : 

Question-10. Would you want to continue investing in market in the near future? Interpretation :- After recession in 2008 many people wants to get rid of from the market. But according to the survey results people still want to carry on their investments. Yes (44%) No (28%) Can’t Say (28%)

FINDINGS : 

FINDINGS According to my research it is found that fund distributors, agents, advisers and brokers are play very important role in selection of fund because they are real investors or manage the funds of investors. The investors give more preference to regular income funds besides the considerations of Diversified Equity Tax Saving Schemes. Another significant finding of the project is that investors are lured by the returns MFs are showing. However at the same time they also want to minimize their risk. Investors desire or opt open-ended schemes than close-ended schemes. The investment horizon, which is most liked by the investors, is 2-3 yrs.

FINDINGS : 

FINDINGS In my training period I found that most of investors are not aware about various schemes of investment. After analyzing all, i found that most of investor invest for own benefits. Selection of fund depend brand image of a fund and experience of professional, age of fund. The market does not work on fundamentals. A good company is a bad investment at a high price.

SUGGESTIONS AND RECOMMENDATIONS : 

SUGGESTIONS AND RECOMMENDATIONS Proper awareness should be spread through effective communication channels like print media, television etc. so that every prospective investor can think about investing in Mutual Funds. AMCs must launch more diversified funds so that the risk becomes less. This will lure more and more people to invest in Mutual Funds A thorough analysis should be done while selecting the securities for a particular portfolio. The expectation of people from investments is high and their confidence level has increased taking into account present and past dealings so the portfolio of the fund should be prepared taking into consideration the expectations of people. Marketing of funds and investments must be done more aggressively to let the customers know about the industry’s latest. Fundamental security analysis should also be done i.e. the relationship between a security’s return and economy wide events. Have a long term investment strategy in case of equity investments

CONCLUSION… : 

CONCLUSION… It is very necessary that investor come in contact with a good broker or a stock market consultant show you the right path to making profit in the market. Unless you are updated yourself of the stock market. If you are interested in short term investment, the consultant advice helps you for day trading and you should not be impatient. Mutual Funds have not failed in any country where they work within a regulatory framework. Their future is bright. General public not know about the mutual fund so there is a need that is seminars and meeting for general public to create their interest in mutual funds investments. Stock Market differs from Mutual Funds. Investor must do remember to make a good research for both of them so that he get the ultimate profit out of his investment.

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T HANK YOU