A comparative study on investing in equity and mutual fund schemes
A comparative study on investing in
equity and mutual fund schemes
In the current economic scenario interest rates are
falling and fluctuation in the share market has put
investors in confusion. One finds it difficult to take
decision on investment. This is primarily, because of
investments are risky in nature and investors have to
consider various factors before investing in investment
These factors include risk, return, volatility of shares
and liquidity. The main objective of comparing
investment in equity shares with mutual fund schemes
is to analyze the performance of mutual funds with
their benchmark parameter.
Historical data were taken for calculating risk, return,
alpha and beta. To compare how equities & mutual
funds are less risky on the basis of returns. Those who
have well knowledge in equity market they can go for
equity investment rather that investing in mutual
funds because no control on the expenses made by the
The study will guide the new investor who wants to
invest in equity and mutual fund schemes by providing
knowledge about how to measure the risk and return
of particular scrip or mutual fund scheme. Hence this
study has a scope to conduct research on mutual fund
& equity investment.
This study aims at creating awareness in the minds of
investor interms of risk, return, liquidity &
marketability of their investments. Also focuses on
which would be the better investment for an individual
• To compare Equity and Mutual Fund Schemes in
respect of their risk & return.
• Analyzing the performance of equity shares and
mutual fund schemes with their benchmark.
• Finding the Volatility of shares by using beta.
• Provide information about pros and cons of investing
in Equity and Mutual Funds
SCOPE OF THE STUDY
The study is primarily deals with equity and mutual
fund investments. The study covers 5 randomly
selected stocks out of 30 BSE Sensex companies and 5
randomly selected mutual fund schemes out of mutual
fund industry in India for comparison. The analysis is
strictly based on share prices and Net asset values of
the mutual funds which will help an investor to
identify better investment avenues from the market.
A. Sampling technique: - Since the population is
heterogeneous stratified random sampling were taken
B. Sample size: - Five companies and five mutual fund
scheme were selected.
C. Sample description: - In this study 5 companies
have been selected from sensex and 5 mutual funds
selected on the basis of their Net Asset Value and after
that comparison made between them.