MBA

1. Comparative study of Mutual
Fund and other Investment
Avenues
Presented by –
Ketaki Bodhe
M. Com (Part II) Sem III

2. Executive Summary
 Shows comparison in between Mutual Fund and Other Investment Avenues -
1. Bank Deposits
2. Gold investment
3. Share Market
4. Recurring Deposits
5. Real Estate

3. Objectives
 To understand the concept of Mutual Fund
 To understand its benefits and drawbacks
 To understand the concept of various other investment patterns
1. Bank Deposits
2. Gold investment
3. Share Market
4. Recurring Deposits
5. Real Estate
 To understand their benefits and drawbacks
 To understand comparison in between Mutual Fund and Various other investment patterns

4. Research Methodology
Research
Methodology
Primary
Data
Secondary
Data

5. Mutual Fund
 A fund established in the form of a trust by a sponsor to raise monies by the
Trustees through the sale of units to the public under one or more schemes
for investing in securities in accordance with these regulations.
 A mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected then invested in
capital market instruments such as shares, debentures and other securities.
The income earned through this investment and the capital appreciation
realised, shared by its unit holders in proportion to the number of units
owned by them.

6. Advantages & Disadvantages
Advantages Disadvantages
Professional management
Fluctuating returns
Diversification No Control
Convenient Administration Past performance
Return potential Costs
Liquidity Fund Evaluation

7. Growth of Mutual Fund

8. Working of Mutual Fund

9. Types of Mutual Fund

10. Risk Involved
Material Risk
Inflation Risk
Credit Risk
Exchange Risk
Investment Risk

11. OTHER INVESTMENT AVENUES
Bank Deposits
Gold investment
Share Market
Recurring Deposits
Real Estate

12. Bank Deposit
Bank deposits consist of money placed into
banking institutions for safekeeping. These
deposits are made to deposit accounts such as
savings accounts, checking accounts and
money market accounts. The account holder
has the right to withdraw deposited funds

13. Advantages & Disadvantages
Advantages Disadvantages
Bank accounts offer convenience Reducing Interest Rates
Accounts are safe Taxation
Easy way to save money Penalty on Premature Withdrawal
Bank accounts are cheaper Opportunity loss
Accounts can help you access credit -

14. Risk Involved
Inflation Risk
Interest Rate Risk
Liquidity Risk
Growth Risk
Tax risk

15. Gold Investment
Investment gold is described as follows: gold
bullion or gold platelets with a weight
acceptable for the gold market and were or are
an official method of paymentin their country of
origin and are sold at a price that does not
exceed the current gold price of their gold
content by 80 %.

16. Advantages & Disadvantages
Advantages Disadvantages
Gold is a hedge against inflation Gold is not a passive investment
Liquidity Difficult to store
Diversification Price correction can lead to losses
Holds its value over a long period of time -
Most desired commodity -

17. Share Market
A stock market, equity market or share market is
the aggregation of buyers and sellers (a loose
network of economic transactions, not a
physical facility or discrete entity) of stocks (also
called shares), which represent ownership claims
on businesses; these may include securities listed
on a public stock exchange, as well as stock
that is only traded privately.

18. Advantages & Disadvantages
Advantages Disadvantages
Stock ownership takes advantage of a
growing economy
You could lose your entire investment
They are the best way to stay ahead of
inflation
Stockholders are paid last if
the company goes broke
Easy to buy Requires a lot of time
You can make money in two ways Can be an emotional roller coaster
They are easy to sell -

19. Types of Share Market

20. Risk involved
Economy risk
Exchange Rate Risk
Financial Risk
Industry level Risk

21. Recurring Deposits
Recurring Deposit is a special kind of Term
Deposit offered by banks in India which help
people with regular incomes to deposit a fixed
amount every month into their Recurring Deposit
account and earn interest at the rate
applicable to Fixed Deposits.[1]
It is similar to
making FDs of a certain amount in monthly
instalments.

22. Advantages & Disadvantages
Advantages Disadvantages
High-interest rate Liquidity
No penalty if you miss a month Rate of Interest
Start with minimum amount Stringent Monthly Instalments
Save for as low as 6 months -
Best for short-term goals -

23. Risk involved
Premature Withdrawal
Non-Payment of Monthly Instalment
Tax Deduction
Non-Changeable

24. Real Estate Investment
 Real estate is the property, land, buildings, air rights
above the land and underground rights below the land.
The term real estate means real, or physical, property.
Types of
Real Estate
Residential
real estate
Commercial
Real estate
Industrial
real estate
Land

25. Advantages & Disadvantages
Advantages Disadvantages
Can Be Easier to Understand Higher Transaction Costs
Real Estate Is Improvable Low Liquidity
Hedge Against Inflation Requires Management and Maintenance
Exist in an Inefficient Market Markets Have Significant Inefficiencies
Financed and Leveraged Creates Liabilities

26. Risk involved
General Market Risk
Asset-Level Risk
Idiosyncratic Risk
Liquidity Risk
Credit Risk

27. Investment Objective
GROWTH
CAPITAL APPRECIATION
GROWTH AT REASONABLE PRICE
INCOME
AGGRESSIVE GROWTH

28. Mutual Fund and Other
Investment Avenues

29. Findings and Conclusion
1. There are so many investment options are available.
2. In the current scenario, traditional as well as modern
investment avenues are performing well in market.
3. Awareness is increasing in people about Mutual Fund.
4. The growth of Mutual Fund is very good. People are
becoming aware about Mutual Fund.
5. The returns of Mutual Funds are quite good as compare to
other investment avenues.
6. Though Mutual Funds are accepted by people still people
prefer other investment avenues.

30. Suggestions
 In current scenario, where various types investment avenues are
available in market. People should be aware about their investment
motive.
 Instead of following mob, person should go with proper analysis –
like risk factor, rate of return, liquidity, tax benefits, etc.
 In today’s market situation, Mutual Fund is the good investment
option available with people. Which can gives good returns with
moderate risk and easy liquidity. As well as there are various options
are also available in Mutual Fund; Equity Mutual fund, Mid Cap
Funds, Growth oriented funds, etc. it can help you to achieve your
investment objectives

31. BIBLIOGRAPHY
 www.amfiindia.com
 www.mutualfunds.com
 www.valuenotes.com
 www.researchonline.com
 www.utimf.com
 www.google.com
 www.reportbuyer.com
 www.allbusiness.com
 www.reportlinker.com
 www.researchandmarket.com
 COMPANY’S FACT BOOK AND JOURNAL