Technical Analysis in Different Sectors Stocks

Today investing in financial securities such as shares, debentures, bonds, and other financial securities are considered to be the most profitable investment avenues when compare to other type of investments. However, these financial securities not only ensures higher return but also bears higher risk. Therefore, the combination of these two characteristics in the financial securities has created a challenging task for the investors. Hence with an object of getting success in the investment activity, the investors tries to predict the future behavior of the stocks by using some of the techniques among them the important are:

A. Fundamental analysis

Fundamental analysis is one of the important techniques, which is used to study the future behavior of the stocks. It actually refers to analyses of present and future earning capacity of the stocks based on the analysis of economy, industry and company as a whole there by to determine the intrinsic values of the stocks.

In other words, fundamental analysis is mainly concerned with the determination of intrinsic value of the stocks by analyzing the fundamental factors of economy, industry and company as a whole. The intrinsic value of the stocks represents the real worth or economic value, which is used by the fundamental analysts to identify the under priced and overpriced securities in the market. It means, if the intrinsic value of the stock is more than the market value, it considered as under priced and included in the portfolio. On the other hand, if the intrinsic value of a stock is less then the market value then it is considered as overpriced and excluded from the portfolio.

Thus, fundamental analysis is mainly concerned with the determination of intrinsic value of stocks and based on that intrinsic value investment decisions are taken by the fundamental analysts.

B. Technical analysis

It is another important technique, which is used to predict the future performance of the stocks. It is mainly concerned with the study of historical price movements of the stocks and on its volume of trade in the market to predict the future trend movements of the stocks. However, it does not consider any fundamental factors of the company like earnings, dividends, growth rates etc.

It means, technical analysts first predicts the future trend movements of the stocks by using historical data and then take buy decision if trend movement shows upward direction and sell decision if trend movement shows downward direction.

In other words, technical analysis does not involve in determination of any intrinsic value of the stocks instead it studies the past price movements, volume and other chart patterns to predict the future performance of the stocks.

Historical stock prices, volume of trade in the market, Charts, graphs etc, are the important inputs, which are required to perform technical analysis. Charting is the key activity in technical analysis and in fact there is no technical analysis with out charts.

Thus technical analysis mainly concentrates on the study of historical price movements and on its volume to identity future trend movements and based on this trend movements investment decisions are taken by technical analysts.

Read Similar Finance Projects:

• A Project on Inventory Management
• A Project Report on Investor Behavior on Stock Market
• A Dissertation on Mutual Fund And Investor's Behavior

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A Study on Budgetary Control System conducted at Hassan Cooperative Milk Producers Societies

One the primary functions of the management is planning. Most of the planning relates to individual situations and individual proposals. However, this has to be supplemented and reinforced by overall periodic planning followed by continuous comparison of the actual performance with the planned performance. Budgetary control has, therefore, become as essential tool of management for controlling costs and maximizing

“Budget” and “Budgeting” are concepts traceable to the bible days, precisely the days of Joseph in Egypt. It was reported that “nothing was given out of the treasure without a written order”. History has it that Joseph budgeted and stored grains which lasted the Egyptians throughout the seven years of famine.

Budgets were first introduced in the 1920s as a tool to manage costs and cash flows in large industrial organizations. Johnson states that it was during the 1960s that companies began to use budgets to dictate what people needed to do. In the 1970s performance improvement was based on meeting financial targets rather than effectiveness. Companies then faced problems in the 1980s and 1990s when they were not willing to spend money on innovations in order to stay with the rigid budgets; they were no longer concerned about how customers were being treated; only meeting sales targets became essential.

Budgeting in business organizations is formally associated with the advent of industrial capitalism for the industrial revolution of the eighteenth century, which presented a challenge for industrial management.

Glautier and Under (1987) state that “the emergence of scientific management philosophy with its emphasis on detailed info’ as a basis for taking decision provided a tremendous impetus for the development of management accounting and indeed budgeting techniques”.

However, budgeting at the early stage of its development was concerned with preparing and presenting credible information to legitimize accountability and to permit correct performance evaluation and consequently, rewards.

Over the years, the function and focus of budgeting has shifted considerably and business organization became more complex and their environment became dynamic coupled with the emergence trend, the term budget and budgeting have been differently defined and examined by various scholars in several ways.

The Institute Of Cost and Management Accountants (UK) defines a budget as “a financial and/ or quantitative statement, prepared and approved prior to a defined period of time, of the policy to be pursued during that period for the purpose of attaining a given objective. It may include income, expenditure and the employment of capital.”

Omolehinwa (1989) defined a budget as a plan of dominant individuals in an organization expressed in monetary terms and subject to the constraints imposed by the participants and the environments, indicating how the available resources may be utilized, to achieve whatever the dominant individuals agreed to be the organisation’s priorities. The impressive thing about this definition is that, it recognizes the constraint imposed on budget by other participants who are to ensure that the objectives and targets enunciated in the budget are achieved.

Pandey (2003) defines budget as a short term financial plan. It is an action plan to guide managers in achieving the objectives of the firm. The Tennessee board of Regents (2006) defines budgeting as the process whereby the plans of an institutions are translated into an itemized, authorized and systematic plan of operation, expressed in dollars for a given period.

Budgeting, at both management level and operation level looks at the future and lays down what has to be achieved. Control checks whether the plans are being realized and put into effect corrective measures, where deviation or short-fall is occurring. Egan emphasized that without effective controls, an enterprise will be at the mercy of internal and external forces that can disrupt its efficiency, and be unaware; such enterprise will not be able to combat such forces. When a budgeting and control system is in use, budgets are established which set out in financial terms, the responsibility of managers in relation to the requirement of the overall policy of the company. Continuous comparison is made between the actual and budgeted results, which are intended to either secure, thorough action of managers, the objectives of policy or to even provide a basis for policy revision.

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A Project Report on National Stock Exchange (NSE)

Money market is a market for debt securities that pay off in the short term usually less than one year, for example the market for 90-days treasury bills. This market encompasses the trading and issuance of short term non equity debt instruments including treasury bills, commercial papers, bankers acceptance, certificates of deposits, etc.

In other word we can also say that the Money Market is basically concerned with the issue and trading of securities with short term maturities or quasi-money instruments. The Instruments traded in the money-market are Treasury Bills, Certificates of Deposits (CDs), Commercial Paper (CPs), Bills of Exchange and other such instruments of short-term maturities (i.e. not exceeding 1 year with regard to the original maturity)

Capital market is a market for long-term debt and equity shares. In this market, the capital funds comprising of both equity and debt are issued and traded. This also includes private placement sources of debt and equity as well as organized markets like stock exchanges.

In the primary market, securities are offered to public for subscription for the purpose of raising capital or fund. Secondary market is an equity trading avenue in which already existing/pre- issued securities are traded amongst investors. Secondary market could be either auction or dealer market. While stock exchange is the part of an auction market, Over-the-Counter (OTC) is a part of the dealer market.

In addition to the traditional sources of capital from family and friends, startup firms are created and nurtured by Venture Capital Funds and Private Equity Funds. According to the Indian Venture Capital Association Yearbook (2003), investments of $881 million were injected into 80 companies in 2002, and investments of $470 million were injected into 56 companies in 2003. The firms which received these investments were drawn from a wide range of industries, including finance, consumer goods and health.

The growth of the venture capital and private equity mechanisms in India is critically linked to their track record for successful exits. Investments by these funds only commenced in recent years, and we are seeing a rapid buildup in a full range of channels for exit, with a mix of profitable and unprofitable outcomes. This success with exit suggests that investors will allocate increased resources to venture funds and private equity funds operating in India, who will (in turn) be able to fund the creation of new firms.

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A Study of Technical Analysis in different sector's stocks

Fundamental analysis is one of the important techniques, which is used to study the future behavior of the stocks. It actually refers to analyses of present and future earning capacity of the stocks based on the analysis of economy, industry and company as a whole there by to determine the intrinsic values of the stocks.

In other words, fundamental analysis is mainly concerned with the determination of intrinsic value of the stocks by analyzing the fundamental factors of economy, industry and company as a whole. The intrinsic value of the stocks represents the real worth or economic value, which is used by the fundamental analysts to identify the under priced and overpriced securities in the market. It means, if the intrinsic value of the stock is more than the market value, it considered as under priced and included in the portfolio. On the other hand, if the intrinsic value of a stock is less then the market value then it is considered as overpriced and excluded from the portfolio.

Thus, fundamental analysis is mainly concerned with the determination of intrinsic value of stocks and based on that intrinsic value investment decisions are taken by the fundamental analysts.

It is another important technique, which is used to predict the future performance of the stocks. It is mainly concerned with the study of historical price movements of the stocks and on its volume of trade in the market to predict the future trend movements of the stocks. However, it does not consider any fundamental factors of the company like earnings, dividends, growth rates etc.

It means, technical analysts first predicts the future trend movements of the stocks by using historical data and then take buy decision if trend movement shows upward direction and sell decision if trend movement shows downward direction.

In other words, technical analysis does not involve in determination of any intrinsic value of the stocks instead it studies the past price movements, volume and other chart patterns to predict the future performance of the stocks.

Historical stock prices, volume of trade in the market, Charts, graphs etc, are the important inputs, which are required to perform technical analysis. Charting is the key activity in technical analysis and in fact there is no technical analysis with out charts.

Thus technical analysis mainly concentrates on the study of historical price movements and on its volume to identity future trend movements and based on this trend movements investment decisions are taken by technical analysts.

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A Project on Inventory Management

The necessity of effective inventory management is being increasingly realized in industrial and non-industrial organization both in India and abroad. This realization has come about because of increasing complexity of the task of managers and administrators. In most organization, the problem of effective inventory control is now viewed as the most critical problem with changes in social climate. While these can be great assets to the organizations, they become problems if the organization is not able to manage inventory properly.

Liquidity and profitability are the two vital aspects of corporate business. Any business cannot run without these two. A firm may run without profits for sometime; but with no liquidity, the firm cannot run their business. That is why management of inventory is an integral part of corporate planning in business life.

The proper inventory control system leads to an optimum utilization of resources. Idle materials are of a financial burden to the organization. Thus proper, inventory management directly assists in efficient functioning of the company. S.L. Goel says “takecare of the forest, the tree will take care of itself”, it should be the main motto of an inventory controller.

In inventory management, various methods and techniques can be adopted to control the inventory like, prompt maintenance of registrars, proper raw material arrangement, and fixation of various control levels and application of inventory control techniques and bin card system etc, which are relevant for inventory control in stores department.

Inventory management will help an organization in dealing with the supply of the raw materials and other activity in order to achieve the maximum co-ordination and optimum expenditure on materials to increase the profits of the firm. CLA‟s inventory control system is chosen for the study; by the investigator is no expectation in view of growing significance of the efficient control of inventories. Hence, the researcher was prompted to take up this topic.

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A Study on Derivatives Market in India

Among all the innovations that have flooded the international financial markets, financial derivatives occupy the driver's seat. These specialized instruments facilitate the shuffling and redistribution of the risks that an investor faces. Thus aids in the process of diversifying one’s portfolio. The volatility in the equity markets over the past years has resulted in greater use of equity derivatives. The volume of the exchange traded equity futures and options in most of the mature markets have seen a significant growth.

It goes beyond that the local derivative in the emerging markets have witnessed widespread use of the derivative instrument for a variety of reasons. This continuous growth and development by the emerging market participants has resulted in capital inflows as well as helped the investors in risk protection through hedging.

Derivatives trading commenced in India in June 2000 after SEBI granted the approval to this effect in May 2000. SEBI permitted the derivative trading on two stock exchanges, i.e. and BSE, and NSE, their clearing house/corporation to commence trading and settlement in approved derivative contracts. Begin with SEBI’s approved trading in index futures contracts based on S&P CNX Nifty Index and BSE-30 (Sensex) Index. This was followed by approval for trading in options based on these two indices and options on individual securities.

The trading in index options commenced in June 2001 and trading in options on individual securities would commence in July 2000. While trading in futures of individual stocks started from November 2001. In June 2003, SEBI and/RBI approved the trading on interest rate derivative instruments only in NSE. Introduced trading of interest rate futures contracts on June 24, 2003 on 91-day Notional T-Bills and 10-year Notional 6% coupon bearing as well as zero coupon Bonds. Futures and Options were also introduced on CNX IT Index in August 2003. The total exchange traded derivatives witnessed a value of Rs.5, 423, 333 million during 2002-03 as against Rs. 1,038,480 million during the preceding year. While NSE accounted for about 99.5% of total turnover, BSE accounted for less than 1% in2002-03.

The market witnessed higher trading levels from June 2001 with introduction of index options, and still higher volumes with the introduction of stock options in July 2001. In the year 2002 has been a remarkable year for the global derivatives market. This year witnessed NSE making huge strides and also moved upward in the global ranking. According to the Futures Industry Associations in the year 2002, NSE ranked 30th in the global futures and options volume, whereas it ranks 2nd in the world, in terms of stock futures.

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A Comparative Study Of Interest Rates On Housing Loans

Few decades back, buying a home was not a very easy task as there were hardly any lenders available to loan the ever increasing astronomical lump sum of money. However, with time, the rising property prices and the burgeoning housing finance market in the country, made the phenomenon of the home loans easy and the dream of buying a home possible. Also, the HFC’s (Housing Finance Companies) and banks have come up with so many home loan plans that they have become an answer to every customer’s necessity. Apart from this, the changing equation of market has also provided customers with several reasons to opt for a home loan. Here are few reasons to why home loans have gradually became a necessity in the society.

The need for home loans arises not because property prices are heading upwards all the time but because home loans make great sense from a long-term savings perspective. Not only are home loans a handy tool for the common man to own a roof over his head but they also help save money in the long run.

With skyrocketing real estate prices, people are increasingly opting for housing loans to acquire their dream home. Interest rates are coming down all the time and the housing finance companies are literally falling over each other to lure the prospective home-seekers.

Like all other commercial banks PNB is also having home loans in their portfolio. Frequent changes in regulation made by central bank affect the banks to a larger extent because banks have to follow according to the directions given by the central bank which reduces the profit of the bank.

Now a days banks cannot charge their own management interest rates they are force to look the market and follow according to the RBI rules and regulations, this has unable them to balance both the income and expenses, for eg., now the fixed deposit interest rate is 10.5% and is housing loan interest rate is 8.5%, they have the bear the loss of -2% which the banks have to pay themselves. Middle class people cannot afford to the current interest rate, it is too expensive for them.

To broaden the customer base the vast middle income strata should be fully exploited who are very sentimental about house property in India Simplify the procedure, reduce service charges, and demand only the basic essential proof. Most banks are reluctant to advance loan to the service class e.g. lawyers, police officers etc.. This aspect must be exploited.

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A Study on Empirical Testing of Capital Asset Pricing Model

A portfolio is a bundle or a combination of individual assets or securities. The portfolio theory provides a normative approach to investors to make decisions to invest their wealth in assets or securities under risk.

It is based after the assumption that investors are risk-averse. This implies that investors hold well diversified portfolio instead of investing their entire wealth in a single or a few assets. One important conclusion of the portfolio theory is that if the investor of the portfolio theory is that if the investor holds a well-diversified portfolio of assets then their concerns should be the expected rate of return and risk of the portfolio, rather than individual assets and the contribution of individual asset to the portfolio risk. The second assumption of the portfolio theory is that the returns of assets are normally distributed. This means that the mean and variance analysis is the foundation of the portfolio decisions. Further, we can extend the portfolio theory to derive a framework for valuing risk assets. This framework is referred to as CAPM.

The CAPM is a model that provides a framework to determine the required rate of return on an asset and indicates the relationship between return and risk of the asset. The required rate of return specified by CAPM help in valuing an asset. Once can also compare the expected return and determine whether the asset is fairly valued. As we exemplifies the relationship between an asset’s required rate of return.

Risk is of many kinds, they can be classified as systematic or unsystematic risk. Systematic risk covers the risks of market, interest rate risk and purchasing power risk and unsystematic risk consist of business and financial risk. The systematic risk is therefore, effecting the total environment and is outside the control of one firm on individual. Unsystematic risk is inherent to the system. It may be due to bad financial planning or wrong management decisions. These risks are internal and can be avoided or controlled.

Risk is fundamental to the process of investment. Every investor should have an understanding of the various pitfalls of investment. For the convenience of the investors, analysts measure risks to able to combine securities and to reach that portfolio which suit’s the individual needs of an investor risk is measured through beta test.

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A Study on Budgetary Control on Milk Dairy

“Shimoga Milk Union Limited” is a cooperative sector undertaking, engaged in the processing of Milk & manufacturing the Milk products, it recently launched three new variants of Nandini Milk. The Shimoga milk union is located in the central part of Karnataka. The corporate office of the union is based at Machenalli, covering three districts of Shimoga, Davangere and Chitradurga.
The Budgetary Control is playing a vital role in the organization. The role of Budgetary Control is the essence of a business. The information is the blood and Budgetary Control is the heart. In the body the hart plays the role of supplying pure blood to all the elements of the body including the brain. The Budgetary Control plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed and sent further to all the needy destinations.

The system is expected to fulfill information needs of an individual, a group of individual, a group of financial functionaries, the managers and the top management. So the Budgetary Control is very important in modern organizations. Thus, I have been chosen the Budgetary Control as the specific area of the study. Therefore, a study has been taken up on “A STUDY ON BUDGETARY CONTOL OF SHIMUL”.

The study is taken for “Shimoga milk Union ltd” wherein an attempt has been made to understand the Budgetary Control and a small study has been under taken. So as to get an insight into Budgetary control.

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A Project Report on Investor Behavior on Stock Market

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can be broadly divided into four distinct phases:-

First Phase (1964-87) -Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.

Second Phase (1987-1993)- (Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.

Third Phase (1993-2003)- (Entry of Private Sector Funds) With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase (since February 2003)-  In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

Contents:

PREFACE

ACKNOWLEDGEMENT

CHAPTER - 1        1.0 INTRODUCTION

                              1.1 Overview of Indian Mutual Fund Industry

                              1.2 Profile of victory portfolio limited   

1.3 Problems of the Organization

1.4 Competitor’s Information

1.5 SWOT Analysis

CHAPTER –2       2.0 CONCEPTUAL DISCUSSION

                                2.1 Theoretical backdrop and Literature Review

                                2.2  Investors behaviour

CHAPTER –3       3.0 OBJECTIVES AND METHODOLOGY

                              3.1 Significance of the Study

                              3.2 Managerial Usefulness of the Study

                              3.3 Objectives

                              3.4 Scope of the Study

3.5 Methodology

CHAPTER –4       4.0 DATA ANALYSIS AND INTERPRETATIONS

CHAPTER –5       5.0 FINDINGS AND RECOMMENDATIONS

ANNEXURES 

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A Comparative Study On ‘ULIP’ Polices Offered ICICI In Comparison To HDFC Customer Satisfaction

Risk and uncertainty are incidental to life. Man may meet an ultimately death. He may suffer from accident, destruction of property, fire, sea perils, floods, earthquakes and other natural calamities. Whenever there is uncertainty, there is a risk as well as insecurity. It is to provide against risk and insecurity that insurance.

Came into being. Insurance does not avert or eliminate loss arising from uncertain events; it only spreads the loss over a large number of people who insure themselves against that risk, the main principle underlying insurance is pooling the risks. It is thus a co-operative device to spread the loss caused by a risk over a large number of persons who are also exposed to the same risk and insure themselves against the risk.

Elements of Insurance

a)  Contract of Insurance
A contact of insurance is a contract by which a person in consideration of a sum of money    undertakes to make good the loss of another against a specified risk.
b) Insurer and Insured.
The person undertaking the risk is called the insurer, assurer or underwriter and the person whose loss is to be made good is called insured or assured.
c) Policy
The instrument in which the contract of insurance is generally embodied is called policy. The policy is not a contract; it is the evidence of contract.
d) Premium
e) Subject Matter of Insurance
The thing or property insured is called Subject Ma The consideration for which the insurer undertakes to indemnify the assured against the risk is called premium.
f) Perils Insured Against
That which is insured is the loss arising from uncertain events or causalities.

Contents:

Chapter -1: Introduction
1. Elements Of Insurance
2. Types Of Insurance
3. Advantages Of Insurance
4. Disadvantages  

Chapter -2: Industry Profile
1. Insurance Sector In India
2. Different Players In Life Insurance Industry
3. Private Insurers Share Over Two Years
4. Structure Of An Insurance Company

Chapter -3: Company Profile          
1. HDFC
2. Old Mutual
3. Products
4. HDFC Bank
5. ICICI Prudential
6. Products

Chapter-4: Management
1. Objectives
2. Methodology
3. Method Of Data Collection
4. Data Analysis

Chapter -5: Data Analysis & Interpretation
1. Table: Presentation Of Data
2. Graphical Representation Of Data
3. Interpretations

Chapter -6: Summary
1. Findings
2. Suggestions
3. Conclusion

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A Dissertation on Mutual Fund And Investor's Behaviour

Mutual fund is a pool of money collected from investors and is invested according to certain investment options. A mutual fund is a trust that pools the saving of a no. of investors who share a common financial goal. A mutual fund is created when investors put their money together. It is, therefore, a pool of investor’s fund. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the no. of units owned by them.

The most important characteristics of a fund are that the contributors and the beneficiaries of the fund are the same class of people namely the investors. The term mutual fund means the investors contribute to the pool and also benefit from the pool. The pool of funds held mutually by investors is the mutual fund.

A mutual fund business is to invest the funds thus collected according to the wishes of the investors who created the pool. Usually the investors appoint professional investment managers create a product and offer it for investment to the investors. This project represents a share in the pool and pre status investment objectives.

Thus, a mutual fund is the most suitable investment for a common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at relatively low cost.

Contents:
Chapter1. Introduction
1. Introduction of Mutual Fund
2. Objective of Study
3. Scope
4. Methodology
5. Limitations

Chapter2. Mutual Fund Industry
1. History of Mutual Fund
2. Regulatory Framework
3. Legal Structure
4. Classification
5. Types

Chapter3. Performance Measures
1. Investment Plans
2. Different features of various funds
3. Net Asset Value
4. Performance measures of Mutual Funds

Chapter4. Investor’s point of view
1. Stages of Life Cycle
2. Classification of Life cycle

Chapter5. Analysis
1. Analysis of Questionnaire
2. Suggestions
3. Conclusion

Appendices
Annexure

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A Project Report on Working Capital Management of ARSS infrastructure ltd

Introduction

“More business fails for lack of cash than for want of profit”. Efficient management of working capital is one of the pre-conditions for the success of an enterprise. Efficient management of working capital means management of various components of working capital in such a way that an adequate amount of working capital is maintained for smooth running of a firm and for fulfillment of twin objectives of liquidity and profitability. While inadequate amount of working capital impairs the firm’s liquidity. Holding of excess working capital results in the reduction of the profitability. But the proper estimation of working capital actually required, is a difficult task for the management because the amount of working capital varies across firms over the periods depending upon the nature of business, production cycle, credit policy, availability of raw material, etc.

Thus efficient management of working capital is an important indicator of sound health of an organization which requires reduction of unnecessary blocking of capital in order to bring down the cost of financing.

Working capital management

Working capital management is concerned with the problems arise in attempting to manage the current assets, the current liabilities and the inter relationship that exist between them. The term current assets refers to those assets which in ordinary course of business can be, or, will be, turned in to cash within one year without undergoing a diminution in value and without disrupting the operation of the firm. The major current assets are cash, marketable securities, account receivable and inventory. Current liabilities ware those liabilities which intended at their inception to be paid in ordinary course of business, within a year, out of the current assets or earnings of the concern. The basic current liabilities are account payable, bill payable, bank over-draft, and outstanding expenses.

The goal of working capital management is to manage the firm s current assets and current liabilities in such way that the satisfactory level of working capital is mentioned. The current assets should be large enough to cover its current liabilities in order to ensure a reasonable margin of the safety.

Definition:-

According to Guttmann & Dougall- Excess of current assets over current liabilities.

According to Park & Gladson-  The excess of current assets of a business (i.e. cash, accounts receivables, inventories) over current items owned to employees and others (such as salaries &

 Wages payable, accounts payable, taxes owned to government).

Need of working capital management

The need for working capital gross or current assets cannot be over emphasized. As already observed, the objective of financial decision making is to maximize the shareholders wealth. To achieve this, it is necessary to generate sufficient profits can be earned will naturally depend upon the magnitude of the sales among other things but sales cannot convert into cash. There is a need for working capital in the form of current assets to deal with the problem arising out of lack of immediate realization of cash against goods sold. Therefore sufficient working capital is necessary to sustain sales activity. Technically this is refers to operating or cash cycle. If the company has certain amount of cash, it will be required for purchasing the raw material may be available on credit basis. Then the company has to spend some amount for labor and factory overhead to convert the raw material in work in progress, and ultimately finished goods. These finished goods convert in to sales on credit basis in the form of sundry debtors. Sundry debtors are converting into cash after expiry of credit period. Thus some amount of cash is blocked in raw materials, WIP, finished goods, and sundry debtors and day to day cash requirements. However some part of current assets may be financed by the current liabilities also. The amount required to be invested in this current assets is always higher than the funds available from current liabilities. This is the precise reason why the needs for working capital arise.

Contents:

1. WORKING CAPITAL MANAGEMENT

Introduction

Need of working capital

Gross W.C and Net W.C

Types of working capital

Determinants of W.C    

2. Research Methodology

Introduction

Types of Research methodology

Objective of the study

Scope and limitation of the study            

3. WORKING CAPITAL SIZE AND ANALYSIS

Working capital level

Working capital trend analysis

Current assets analysis

Current liability analysis

Changes of working capital

Operating cycle

Working capital leverage             

4. Working Capital Ratio analysis

Introduction                  

Role of ratio analysis       

Limitations of ratio analysis 

Classifications of ratios    

Efficiency ratio             

Liquidity ratio                    

5. Working Capital components

Receivables management

Inventory management

Cash management         

6. Working Capital Finance and Estimation

Introduction.                         

Sources of working capital finance.   

Working capital loan and interest.    

Estimation of working capital.                    

7. Conclusions and recommendations

Conclusion

Recommendations         

8. Appendices

Bibliography

Balance sheets

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Analysis of Mutual Funds and Role of Asset Management Company at Kotak Mahindra Asset Management Company LTD

The Project was carried out for study and analysing the investment in mutual funds to special reference of KOTAK ASSET MANAGEMENT COMPANY. It was done to know the satisfaction level of the customer of the bank.
In this Project report I have made an analysis that what is the Investment Pattern, What is theProspect and How Mutual funds have emerged a better Investment option in India Recent Yearsgiving the Investor Higher returns, Liquidity, Safety against Traditional Investment avenues likeBank-FD, Post office Saving, Investment in Volatile Stock Market Etc.

With the Growth of The Indian economy Due to various economic Factors Including Industrialization, Growth of Infrastructure and service industries, increased Foreign direct investment and foreign Institutional Investment, the Indian Companies have grown to become Global business Giant.
So, the Market Capitalization of the Indian companies has grown which has resulting in a building of a strong capital market. People are also now more willing to invest and are ready totake risk. All this Development has proved to be a good atmosphere for mutual fund investment in India.
Now a day’s Investment is saving has assumed great importance. Mutual fund offers a Wide array of Schemes to suit the Customers Different Investment Objective as per their Financial Position, Risk Taking Capabilities, Age Etc.

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A Study on the Performance of Mutual Fund Schemes in the Frame Work of Risk and Return

Financial market’s main function is to facilitate transfer of funds from surplus sectors to deficit sectors. A financial market consists of investor or buyers, sellers, dealers and does not refer to physical location. Indian financial system consists of two markets, viz. money and capital market. The core of money market is the inter-bank call money market. It has two components - organised and unorganised.

Capital market provides the framework in which savings and investments take place. On one hand it enables companies to raise resources from the investing community and on the other, it facilitate households to invest their savings in industrial or commercial activities. The capital market consists of primary and secondary segments.

In primary market it deals with the issue of new instruments by the corporate sector such as equity shares, preference shares, and debentures. The secondary market or stock exchanges where existing Securities are traded. Capital market plays a major role in Indian financial system.
So, Equities & mutual fund is the part of capital market.

Mutual fund industry in India began with setting up of Unit Trust of India (UTI) in 1964 by the government of India. Now a day mutual fund is playing very important role in the industry. Investors will get the benefit of return, capital appreciation, tax benefits and safety to there investment and companies will get the capital for there growth.  Recently they have also started Systematic Investment Plan(SIP) with the help of this even small investors (minimum of Rs. 100)can start investing, by this even students can also invest in this fund. So, we came to know how this mutual fund works.

The saving of an individual are spread through different means of investment one of them is mutual fund which is a growing investment now a days because of diversified risk and lack of time to look after their money.


CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION
Part A: About the Industry
Part B: About the Subject
RESEARCH DESIGN
Statement of the Problem
Objective of the Study
Sample design
Need for study
Scope of study
Research design
Operational definition of the concepts
Tools and techniques for data collection
Limitations of the Study
Overview of Chapter scheme
COMPANY PROFILE
Introduction
Objectives, vision, culture and  values
Strategy
Product profile
Competitors
DATA ANALDDATA ANALYSIS AND INTERPRETATION
SUMMARY OF FINDINGS, CONCLUSIONS, SUGGESTIONS AND RECOMMENDATIONS

BIBLIOGRAPHY

 

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A Study on Performance Evaluation of ICICI and SBI Using Fundamental and Technical Analysis

With the economy surging, things are getting better in the Banking Industry. There are plenty of changes occurs daily.
According to Reserve bank of India’s banking review of 2004 – 2005 there was a notable pick up in demand from industry for investments and a surge in exports. Evidently, the industry’s focus now is on scaling up both domestically and in markets abroad, widening the product and services port folio, and better using technology to make banking more accessible and efficient.
Most of researcher’s conclusion is, Whether or not the sectors actually opens up in 2009, banks should use that as an opportunity to get their growth strategies in place. Not Just through organic growth, but growth through mergers and acquisition.

What India need is not a large number of small banks, but a small number of large banks.
As the RBI’s deputy Governor, V.Leeladhar, said at Indian Banking Associations Jan 31 Seminar on “Indian Banks and the Global change” there is growing realization that the ability to cope with possible downside risks would depend among others on the soundness of the financial system and the strength of Individual participation”.India is still cagey about foreign investments in banks. Though a dramatic changes sweeping through the industry for some years now in the rise of India’s Public sector bank and private sector still it should fuel its grow to open up eyes towards open market.In this scenario, While we look at the sensex breach the 10,000 level for the first time it was yet another sign the India as a market for global liquidity had arrived. When,  We start co-relating the Gross Domestic product (GDP) growth of emerging markets are supposed to reflect the health of the economy where India emerges as a key player, India is arguably the best placed amongst the entire emerging market lot.
Form the Investors point of view earning growth, price-earning multiplies and of course the performance of the economy matters.

Contents:
Introduction
Company Profile
Product Profile
The Industry Growth
Background
Management
Shareholding & Liquidity
Key area of Operation
Strategy & New Developments
ICICI Profile
Chapter – 2
Scope of the study
Objective of the study
Period of the study
Limitation of the study
Methodology
Fundamental analysis
Economical  analysis
Industrial analysis
Banking Industrial analysis
Monitory Policy
CRR
Liquidity  Management
Indian Financial Sector SWOT analysis
Budget 2007 -2008 overview
Secure Banking
Key Ratio
Interpretation (SBI)
Interpretation (ICICI)
Chapter – 3
Technical analysis
ICICI Bank Outlook
SBIN Outlook
Finding
Suggestion

 

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A Study on Mutual Fund Companies in India with Special Reference to Reliance Mutual Fund and UTI Mutual Fund

A mutual fund is a scheme in which several people invest their money for a common financial cause. The collected money invests in the capital market and the money, which they earned, is divided based on the number of units, which they hold.
The mutual fund industry started in India in a small way with the UTI Act creating what was effectively a small savings division within the RBI. Over a period of 25 years this grew fairly successfully and gave investors a good return, and therefore in 1989, as the next logical step, public sector banks and financial institutions were allowed to float mutual funds and their success emboldened the government to allow the private sector to foray into this area.
The advantages of mutual fund are professional management, diversification, economies of scale, simplicity, and liquidity.
The disadvantages of mutual fund are high costs, over-diversification, possible tax consequences, and the inability of management to guarantee a superior return.
The biggest problems with mutual funds are their costs and fees it include Purchase fee, Redemption fee, Exchange fee, Management fee, Account fee & Transaction Costs. There are some loads which add to the cost of mutual fund. Load is a type of commission depending on the type of funds.
Mutual funds are easy to buy and sell. You can either buy them directly from the fund company or through a third party. Before investing in any funds one should consider some factor like objective, risk, Fund Manager’s and scheme track record, Cost factor etc.

There are many, many types of mutual funds. You can classify funds based Structure (open-ended & close-ended), Nature (equity, debt, balanced), Investment objective (growth, income, money market) etc.
A code of conduct and registration structure for mutual fund intermediaries, which were subsequently mandated by SEBI. In addition, this year AMFI was involved in a number of developments and enhancements to the regulatory framework.
The most important trend in the mutual fund industry is the aggressive expansion of the foreign owned mutual fund companies and the decline of the companies floated by nationalized banks and smaller private sector players.
Reliance Mutual Fund, UTI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund and Birla Sun Life Mutual Fund are the top five mutual fund company in India.
Reliance mutual funding is considered to be most reliable mutual funds in India. People want to invest in this institution because they know that this institution will never dissatisfy them at any cost. You should always keep this into your mind that if particular mutual funding scheme is on larger scale then next time, you might not get the same results so being a careful investor you should take your major step diligently otherwise you will be unable to obtain the high returns.

Contents:
COMPANY PROFILE
INTRODUCTION OF MUTUAL FUND
WORKING OF MUTUAL FUND
MUTUAL FUND IN INDIA
RELIANCE MUTUAL FUND vs. UTI MUTUAL FUND
MUTUAL FUND vs. OTHER INVESTMENT
FUTURE PROSPECT OF MUTUAL FUNDS IN INDIA
MUTUAL FUND JARGON
RESEARCH METHODOLOGY
FINDINGS AND SUGGESTION
CONCLUSION
QUESTIONNAIRE
BIBLIOGRAPHY

 

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A Research Project Report on Intra Company Analysis of ICICI Bank

ICICI Bank is a leading Indian private sector commercial bank offering a variety of products and services. It was incorporated in India in 1994. In 2002, ICICI, a non-bank financial institution, and two of its subsidiaries, ICICI Personal Financial Services and ICICI Capital Services, were amalgamated with ICICI Bank. As of March 31, 2007 ICICI Bank is the largest private sector bank in India and the second largest bank in India, in terms of assets. May 10, 2007, ICICI Bank has the largest market capitalization among all banks in India.
ICICI Banks commercial banking operations span the corporate and the retail sector. It offers a suite of products and services for both its corporate and retail customers. ICICI Bank offers a range of retail credit and deposit products and services to retail customers. The implementation of its retail strategy and the growth in the commercial banking operations for retail customers has had a significant impact on its business and operations in recent years. At year-end fiscal 2007, retail finance represented 63.8% of its total loans and advances compared to 62.9% at year-end fiscal 2006 and 60.9% at year-end fiscal 2005. ICICI Bank has approximately 24.0 million retail customer accounts. Its corporate customers include India’s leading companies as well as growth-oriented small and middle market businesses, and the products and services offered to them include loan and deposit products and fee and commission-based products and services.
At year-end fiscal 2007 its principal network consisted of 710 branches, 45 extension counters and 3,271 automated teller machines, or ATMs, across several Indian states. Pursuant to the amalgamation of Sangli Bank with ICICI Bank, its network of branches and extension counters increased by 198. ICICI Bank offers its customers a choice of delivery channels, and they use technology to differentiate there products and services from those of its competitors. ICICI Bank remains focused on changes in customer needs and technological advances to remain at the forefront of electronic banking in India, and seek to deliver high quality and effective services.

Content:

ACKNOWLEDGEMENT
PREFACE
DECLARATION
EXECUTIVE SUMMARY
HISTORY OF ICICI BANK
TIME LINE HISTORY OF ICICI BANK
RESEARCH METHODOLOGY
FINANCIAL ASPECTS OF ICICI BANK
Profit & loss Account
Balance Sheet
Capital Structure
Quarterly Result
Half Yearly Result
Annually Result 
RATIO ANALYSIS
Introduction       
Meaning of Ratio Analysis
Objectives of Ratio Analysis
Forms of Ratio Analysis
Steps in Ratio Analysis
Types of Comparison
Pre-requisites to Ratio Analysis
Classification of Ratio Analysis
Based on Financial Statements
Based on Function
Based on User
Liquidity Ratios   
Current Ratio
Liquid Ratio
Absolute Ratio
Working capital                 
Investment /Shareholder
Earning per Share
Dividend per Share
Dividend Payout Ratio
Gearing
Capital Gearing Ratio   
Profitability           
Gross Profit Ratio
Net Profit Ratio
Return on Capital Employed
Financial
Debtors Turnover Ratio (DTO)
Solvency Ratios
Debt Equity Ratio
Interest Coverage Ratio (ICR)
Reserves to Total Funds
Market Based Return
Importance of Ratio Analysis
Advantages & Disadvantages of Ratio Analysis
Purpose of Ratio Analysis
DUPONT ANALYSIS
INTRA COMPANY ANALYSIS
STRATEGIC ANALYSIS
SERVICE GAP ANALYSIS
RECOMMENDATIONS
SUGGESTION TO OTHER FINANCIAL INSTITUTIONS
BIBLOGRAPHY

 

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A Project Report on Working Capital Management in Grasim Industries

When we talk of research methodology, we not only talk of the research methods but also the comparison of the logic behind the methods, we used in this context of our research study and explain why we are using a particular method or technique and why using the others. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done systematically. In this, we study the various steps that are generally adopted by researcher in studying his research problem along with the logic behind them.
“The present study is based upon the case study method of research to investigate procedures at micro level”.
As the study is analyzing probing in nature, thus, entirely based on the secondary data gathered through the annual reports of the industry. Therefore it provides a historical perspective of decisions.

Contents:

Introduction
Research Methodology
Grasim Industry Ltd
An Overview of Grasim Industry
Characteristics of Grasim Industry
Mission
Values
Management Structure
Main Products of Grasim Industry
Main units of Grasim Industry
Bhiwani  Textile Mill
About the Mill
Strategy & Philosophy of Company
Objective
SWOT Analysis of BTM
Organization structure of finance
What can we do
What you can expect
WORKING CAPITAL AT A GLANCE
THEORETICAL ASPECTS OF WORKING CAPITAL MANAGEMENT
WORKING CAPITAL MANAGEMENT
RECEIVABLES MANAGEMENT
INVENTORY MANAGEMENT
CASH MANAGEMENT
ANALYSIS OF WORKING CAPITAL MANAGEMENT
COMPARATIVE P&L ACCOUNT
TREND ANALYSIS
CASH FLOW ANALYSES
RATIO ANALYSIS
FINDINGS AND CONCLUSIONS
LIMITATIONS
BIBLIOGRAPHY

 

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A Project Report on the Study of Forex Market and Risk Management

The project undertaken is based on the study of foreign exchange market and risk management in general as well as in the forex market.
FOREIGN EXCHANGE MARKET: Foreign exchange market is a market where foreign currencies are bought & sold.
Foreign exchange market is a system facilitating mechanism through which one country’s currency can be exchanged for the currencies of another country.
The purpose of foreign exchange market is to permit transfers of purchasing power denominated in one currency to another i.e. to trade one currency for another.
The project covers various trading areas of forex market such as, spot market, forward market, derivatives, currency futures, currency swaps etc. It helps in understanding various trend patterns and trend lines. What considerations are kept in mind while trading in forex market and why one should enter such market is studied under this project.
Another part of this project covers Risk Management in general as well as in forex market. Risk Management is the process of measuring, or assessing risk and then developing strategies to manage the risk. In general, the strategies employed include transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk.
A person has to face risk whether he’s in business or is entering the forex market.So, he uses various strategies and methods to overcome  that risk.
The data used in this project has been collected from websites based on related topics and various books of forex market and risk management. The information displayed may be limited,as each and every aspect related with the project that is provided by the avilable sources might not be complete in all respects.

 

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