XAVIER INSTITUTE OF MANAGEMENT

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INTRODUCTION
The Indian capital market has been increasing tremendously during last few years. With the reforms of economy, reforms of industrial policy, reforms of public sector and reforms of financial sector, the economy has been opened up and many developments have been taking place in the Indian money market and capital market. In order to help the small investors, mutual fund industry has come to occupy an important place. The main objective of this
paper is to examine the importance and growth of mutual funds and evaluate the operations of mutual funds and suggest some measures to make it a successful scheme in India.
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. Anybody with an investible surplus of as little as a few hundred rupees can invest in Mutual Funds. These investors buy units of a particular Mutual Funds scheme that has a defined investment objective and strategy.

1.1 BACKGROUND OF THE STUDY
Index funds are one of the most cost efficient ways to invest into equity markets as they have low expense ratios as compared to actively managed funds as they don‟t involve fund/investment managers. Risk is diversified over 50 of the emerging companies in India across various sectors. Experts have developed a method of capturing the “mood” of the market (or a segment) by scientifically selecting stocks which have a leadership in their sectors, and monitoring their performance on and on –going basis. E.g.Bank Nifty, BSE Bankex (Bank Index). The best of stock is called “INDEX.”

1.2 RISK FACTOR INVOLVED
1.All mutual fund investment is are subject to market risks and there can be no assurance that the objective of the scheme will be achieved.
2.The NAV of the units issued under the scheme may go up or down depending upon the forces affecting the securities market.
3.There is 1% exit load if investor withdraw their investment within one year.
4.The portfolio of mutual fund investments can change according to the market conditions.
XAVIER INSTITUTE OF MANAGEMENT JABALPUR 2

1.3 NEED OF THE STUDY
The project on mutual fund analysis was carried out in IDBI Mutual Fund, F.C Road,Pune Branch. The intention behind taking over this project with IDBI Mutual was to primarily understand the relation of Nifty with the funds of IDBI Mutual, and in providing investment solutions and advices to its customers. The project was carried out for the period of six weeks i.e. from May 16, 2011 to June 29.2011.The project was done by analyzing the two different investment options available i.e. NIFTY INDEX FUND and NIFTY JUNIOR INDEX FUND and to compare them with the mutual fund investments. For the purpose of analyzing the investment pattern and selecting effective and beneficial schemes of mutual funds different types of SIP schemes available were thoroughly analyzed and then an ideal data is interpreted that how these funds are beneficial for investors.

1.4 OBJECTIVE OF THE STUDY
1. The comparative study of NIFTY INDEX FUND and NIFTY JUNIOR INDEX FUND of IDBI Mutual.
2. To evaluate investment performance of the two mutual funds in terms of risk and return.
3. To analyze the performance of mutual fund schemes i.e. NIFTY INDEX FUND and NIFTY JUNIOR INDEX FUND.
4. Basically to understand the concept of portfolio management and its relation to mutual funds.