UNITED SCHOOL OF BUSINESS MANAGEMENT
REPORT ON
SYSTEMATIC INVESTMENT PLANNING WITH SPECIAL REFERENCE
TO MUTUAL FUNDS
SUBMITED BY GUIDED BY
SHIBANI GHOSAL [Link] RANJAN PRADHAN
REGD NO. 2306274198
CONTENTS:
• Introduction to the company
• About Summer Internship Program
• Concept of the topic
• Objectives
• Types of mutual funds
• Research methodology
• Data analysis
• Challenges
• Conclusion
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COMPANY PROFILE
At SCRIMP Capital Private Limited, we adopt a structured and disciplined advisory approach and provide you portfolio solutions which meet
your desired financial goals and milestones.
At SCRIMP Capital Private Limited, we offer you a complete range of solutions that complement our advisory services. The range includes a
combination of best of breed proprietary and non proprietary (third party) products. The approach is to recommend you product solutions within
your overall asset allocation in an unbiased manner after evaluating all the options available in the market.
Work with us to develop a wealth creation and protection plan that provides you with the best chance to reach your financial goals according to
your specific needs and comfort levels. Our wealth management and insurance expertise will put you in the best position to succeed while
allowing you to maximize your time devoted to focusing on the pursuits that are most important to you.
Explore the comprehensive array of advisory services, programs, and products we offer designed to support optimal wealth creation and
protection. To plan for the distribution of assets, it is important to develop and adhere to a thorough, well-thought-out plan. What will be given, to
whom, and when should be planned well ahead of time to ensure the protection of the estate and, therefore, of successive generations SCRIMP
Capital Private Limited to plan to use the most appropriate protection and transference vehicles to ensure that your estate is prepared for
distribution with optimal protection and efficiency.
We will always be delighted to provide you with best of services, and customised financial solutions to your needs, say whatever it may be. Come
with your scattered investment information and walk out free with a easy-to-read reports.
ABOUT THE SUMMER INTERNSHIP
PROGRAM
1. Comprehensive Training: Interns receive extensive training in various aspects of the financial industry, industry, including
equity research, portfolio management, and risk analysis. risk analysis.
2. Hands-on Experience: Interns are assigned real-world projects and tasks, allowing them to apply their knowledge and
develop practical skills.
3. Mentorship and Guidance: Interns are paired with experienced professionals who provide mentorship, mentorship,
feedback, and guidance throughout the internship.
CONCEPT OF THE TOPIC
MUTUAL FUND:
A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds,
and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds.
Each share represents an investor’s part ownership in the fund and the income it generates.
Mutual funds are often classified by their principal investments: money market funds, bond or fixed income funds, stock or equity
funds, or hybrid funds . Funds may also be categorized as index funds, which are passively managed funds that track the
performance of an index, such as a stock market index or bond market index, or actively managed funds, which seek to
outperform stock market indices but generally charge higher fees. The primary structures of mutual funds are open-end
funds, closed-end funds, and unit investment trusts. Over long durations passively managed funds consistently overperform
actively managed funds
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OBJECTIVES
Diversification: Mutual funds provide investors with the
advantage of diversification by spreading investments across
different sectors and asset classes. This strategy helps
mitigate overall portfolio risk and ensures a well-diversified
investment, potentially yielding better returns that are often
adjusted for inflation.
Capital protection: Many mutual funds prioritise capital
protection as a primary objective. This feature is particularly
appealing to risk-averse investors seeking stability in their
investments. Although returns may be lower compared to
more aggressive funds like pure equity or aggressive hybrid
funds, the risk associated with these funds is significantly
reduced.
Liquidity: Mutual funds offer investors the flexibility to redeem
their investments at any time, providing liquidity. This feature
is valuable, especially for investors who allocate a portion of
their emergency fund to mutual funds. It ensures accessibility
to funds when needed, enhancing financial security.
TYPES OF MUTUAL FUNDS:
Large Cap Mutual Funds
As the name suggests, Large cap funds invest in large listed companies, the top 100 companies
according to market capitalisation. These companies are market leaders in their respective
industries like Reliance, TCS, Infosys, Bharti Airtel, HDFC etc.
Mid Cap Mutual Funds
These Funds buy stocks of top companies between 101 to 250 according to market capitalisation.
Mid cap companies have a market capitalisation between Rs.5000 crore to Rs.20000 crore. These
companies have a higher potential to grow. Currently, some of these companies are Hitachi Energy
India, Bank of Maharashtra, Suzion Energy, Blue Star, etc.
Small Cap Mutual Funds
Stocks of small companies are the major underlying assets of small cap funds. These companies
have a market capitalisation of less than Rs.5000 crore. They have a high growth potential but also
a lot of risk is aligned with them.
Multi Cap funds
There is no restriction on multi cap funds to follow an investment strategy which is confined to
specific market capitalisation. These funds invest in any company’s stock irrespective of market
7capitalisation and diversify their portfolio.
RESEARCH METHODOLOGY
Research methodology is a precise way to solve the research problem. It is how research is done
scientifically. It consists of different steps that are generally adopted by a researcher to study the
research problem along with the logic behind them.
A) SOURCES OF DATA
1. PRIMARY DATA
2. 2. SECONDARY DATA
B) COLLECTION OF DATA
i) Primary data Structured questionnaires were prepared for the purpose of collection of primary
data from the respondents. The questionnaire was prepared in a simple and understandable way
so as to express their views freely and frankly.
ii) Secondary data Secondary data were collected from magazines, newspaper, journals, and
websites.
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DATA ANALYSIS
Learn to infuse energy Metric Measurement Target Actual
into your delivery to
leave a lasting Audience attendance # of attendees 150 120
impression
One of the goals of Engagement duration Minutes 60 75
effective communication
is to motivate your Q&A interaction # of questions 10 15
audience
Positive feedback Percentage (%) 90 95
Rate of information
Percentage (%) 80 85
retention
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CHALLENGES
1. Lack of portfolio customisation:
The lack of portfolio customisation is one of the key limitations of mutual funds. Mutual funds are
managed by experienced professionals, who are also responsible for choosing the assets that the funds
should invest in. Since the control over the portfolio of mutual funds always rests with the fund
managers, investors cannot influence or choose the list of securities that the funds must investing.
2. Limited liquidity :While open-ended mutual funds offer redemption flexibility, liquidity can be
restricted in certain scenarios. Here is how:
Lock-up periods: Some funds, particularly fixed-income funds like closed-end funds or tax-saving ELSS
(Equity Linked Saving Scheme) funds in India, have lock-up periods. Your money gets tied up for a
specific time, typically 3-7 years, limiting immediate access.
Redemption processing time: Even for open-ended funds, selling your shares does not guarantee
immediate cash. It can take a few business days to process the redemption request and receive the
funds.
3. Exposure :To keep the overall risk in check, SEBI has imposed strict mutual fund investment limits. This
ensures that the mutual funds do not overexpose themselves to any particular [Link] such
concentrated exposure could adversely impact their returns if the company underperforms. For
example, equity mutual funds cannot invest more than 10% of their portfolio ina single listed stock. Debt
mutual funds, on the other hand, cannot invest more than 10% of their portfolio in investment-grade
bonds from a single issuer.
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CONCLUSION
Mutual funds offer a smart way
to get into investing without
needing to understand
everything about the stock
market. With so many different
types of funds available, there is
something for everyone's
financial goals.
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THANK YOU