AN ANALYTICAL STUDY OF GROWTH AND PROSPECTS OF MUTUAL FUNDS IN DISTRICT MEERUT

Transcription

1 AN ANALYTICAL STUDY OF GROWTH AND PROSPECTS OF MUTUAL FUNDS IN DISTRICT MEERUT I II III INTRODUCTION Concept and meaning of Mutual Funds Legal structure of Mutual Funds Prevailing distribution Channels of Mutual Funds Importance of Mutual Funds for investors Importance, Objectives and Limitations of the study REVIEW OF LITERATURE AND RESEARCH METHODOLOGY Review of Literature: In this part of proposed research work an analytical review of literature and records available related to Mutual Funds Industry of India will be made to penetrate on the conceptual depth of the research topic. Research Methodology: In this part a Research Methodology will be framed consisting- Sample Design; Period of Study; Collection of Data and Information; Tabulation, Analysis and interpretation of Data and Information etc. Hypothesis: In this part a hypothesis will be set on the basis of which the research study will be conducted. PROFILE OF MUTUAL FUNDS INDUSTRY IN DISTRICT MEERUT History of Mutual Funds in District Meerut Present Scenario of Mutual Funds Industry in District Meerut

2 Study of Mutual Funds Companies in District Meerut Importance of Mutual Funds industry in the Economy in District Meerut IV GROWTH OF MUTUAL FUNDS INDUSTRY IN DISTRICT MEERUT Growth in terms of Accumulation of Funds Growth in terms of Annual Return paid Growth in terms of Products offered to Investors Growth in terms of Development of Investors Support System Future prospects of Mutual Funds Industry in District Meerut V EVALUATION OF GOVERNMENT POLICIES IN RESPECT OF MUTUAL FUNDS INDUSTRY OF INDIA In this chapter a detailed analysis of Government Policies in respect of Mutual Funds Industry of India will be examined critically to analyse their effects on the growth and prospects of Mutual Funds Market in District Meerut. VI PROBLEMS FACED BY MUTUAL FUNDS INDUSTRY IN DISTRICT MEERUT In this chapter a detailed analysis of various problems and constraints faced by Mutual Funds industry of District Meerut like shortage of investment professionals, investors faith in Mutual Funds, Government policies regarding Mutual Funds and others will be made 2

3 for the purpose of shorting out amicable solutions to root out these problems. VII CONCLUSION AND SUGGESTIONS Conclusion of the Research Study Suggestions on the basis of findings of the Study 3

4 PURPOSE OF THE RESEARCH STUDY The success story of any economy can only be scripted on the basis of sound financial system of the country. Economic reform process of 1991 had a great impact on the financial system of the country leading to the overall development of the Indian economy. Today, India s financial system is considered to be sound and stable as compared to many other Asian countries. During last one decade or so, role of Indian mutual funds industry as a significant financial service in financial market has really been noteworthy. In fact, Mutual funds have emerged as an important segment of financial market of India, especially as a result of the initiatives taken by the Government of India for resolving problems relating to UTI s US-64 and to liberalize tax liabilities on the incomes earned by the mutual funds. Mutual Funds Companies of India are now playing a very significant role in channelizing the saving of millions of individuals into the investment in equity and debt instruments. The economic progress of a country is, to a certain extent, linked with the growth of the capital market. Capital market growth depends on the savings of the nation. In District Meerut, notwithstanding a high rate of savings by the community, the capital market is not in a position to grow fast because the common man has not acquired the necessary know-how himself to select appropriate avenues of investment, which will serve his needs. Therefore, the savings are mainly directed towards bank deposits / real estate / gold etc. If he is assured that there are organizations of repute which have necessary expertise to select appropriate avenues of investment where the yield is attractive enough, with utmost security of the capital invested, it would create a proper climate for diversion of a part of the savings towards 4

5 Equity Market of the country which will be ultimately beneficial for the industrial growth of the nation. The importance of Mutual Funds Industry for the growth of industrial sector of India inspired the researcher to select the topic entitled An Analytical Study of Growth and Prospects of Mutual Funds in District Meerut. It is believed that the results of this study would attract the attention of policy makers of Indian economy as well as investors of India to look into the Mutual Funds Market of India from different angles and they all would be encouraged to make their whole-hearted efforts to bring a new revolution for the development of Mutual Funds Market of the nation. 5

6 OBJECTIVES OF THE RESEARCH STUDY The main objectives of the proposed research study may be defined as below: To study the meaning and concept of Mutual Funds. To analyse the legal structure of Mutual Funds. To analyze the prevailing distribution channels of mutual funds. To study the profile of Mutual Funds industry in District Meerut. To study the growth of Mutual Funds industry in District Meerut in terms of Accumulation of funds, Annual return, Products offered to investors etc. To estimate the future prospects of Mutual Funds industry in District Meerut. To evaluate the Government policies in respect of Mutual Funds industry of India. To analyse the different problems faced by Mutual Funds industry in District Meerut. To draw logical conclusion from the research study and to propose constructive suggestions. 6

7 RESEARCH METHODOLOGY Research methodology is a base of a research work. It provides a line of action to the researcher on the basis of which she carries on her research study on a particular topic. The following research methodology will be adopted for the proposed research work:- SELECTION OF AREA As the present study is based on the entire Mutual Funds market in District Meerut, so the personal survey work of mutual funds companies and investors will be done in this District only. PERIOD OF STUDY The proposed research study will be conducted at both macro and micro levels. For macro level study the research period will remain from 2001 to while the year will be taken for the purpose of personal survey. DATA SOURCE The data sources for the present research work will be the Different Government reports in respect of financial sector of India, Records and Data published by AMFI, Annual reports of leading Mutual Funds companies of District Meerut, Survey results of leading Mutual Funds companies of 7

8 District Meerut, and Survey results of investors of Mutual Funds of District Meerut. DATA COLLECTION PROCEDURE The present study will be based on both primary and secondary data. A thorough search of the published records and reports of Government as well as organizations associated with finance sector of India will be made to gather the information regarding the growth of Mutual Funds industry in last 10 years. To analyse the problems of Mutual Funds industry of District Meerut, personal survey of different Mutual Funds companies and investors of Mutual Funds will be conducted. Two detailed questionnaires will be framed and pre-tested to collect the necessary information from the officials of Mutual Funds companies and investors of District Meerut. Open-ended questions as well as multiple coding of the answers will be done for better communication with the interviewee. In the questionnaires necessary adjustments will be made in the light of experience, thus gained during pilot-survey. DATA ENTRY Data and information collected from different sources will be tabulated chapter wise so as to make the study systematic and scientific. The tabulated data will be illustrated diagrammatically and graphically to concentrate each and every aspect of the study. After tabulation of data and information, an analysis of each table will be made using different statistical tools so that relevancy of data collected 8

9 may be traced out with the present study and the reliable conclusion may be drawn. CONCLUSION AND SUGGESTIONS In the end findings of the research study will be given with appropriate suggestions so as to make the functioning of Mutual Funds industry of India more systematic and scientific. C. HYPOTHESIS OF THE RESEARCH STUDY The proposed research study will be based on the following presumptions: - The Mutual Funds industry of India plays a vital role in the industrial growth as well as economy of the country. The Mutual Funds market in District Meerut is in its growing stage and carries the bright prospects in coming future. The general Indian investors are not properly educated in respect of concept of Mutual Funds; hence they hesitate to associate themselves with the Mutual Funds industry in District Meerut. The sincere and honest efforts of Government of India to regulate the Mutual Funds market of the country may prove in increasing the faith of Indian investors in Mutual Funds. 9

10 BIBLIOGRAPHY BOOKS Amitabh Gupta Quoted by Bansal, Lalit K.; Mutual Funds Management and Working; Deep and Deep publications; New Delhi; Gupta, Amitabh; Mutual Funds in India A study of Investment Management; Anmol publications Pvt. Ltd.; New Delhi. Kurian, A.P.; Making Mutual Funds Work for You; Association of Mutual Funds in India; Mumbai; Shenai, G.A. Quoted by Bansal, Lalit K.; Mutual Funds Management and Working; Deep and Deep publications; New Delhi; Tripathy, Nalini Prava; Mutual Funds in India: A Financial Service in Capital Market; Finance India; PERIODICALS Finance India; Mumbai. Indian Institute of Banking & Finance; Mumbai WEBSITES NEWSPAPERS The Economic Times, New Delhi Times of India, New Delhi Amar Ujala, Meerut Dainik Jagran, Meerut 10