COMPARATIVE STUDY BETWEEN GOLD ETF AND MUTUAL FUNDS

PRESENTED BY: AKASH PODDAR 12BSP2391

INTRODUCTION
The Project has been divided into three parts:
1. On the Job Training: 2. Analysis of Gold ETF and Mutual Funds. 3. Perception of investors towards Gold ETF and Mutual Funds.

1. ON THE JOB TRAINING

About Company: My SIP was in Unicon Investment Solutions which is a Broking Firm. It provides solutions in Equity, Commodity, Depository, Property etc. Objective: To understand the behavior of the investors about Unicon. To understand the procedure of opening a Demat A/C. Scope: Practical knowledge of interaction with investors. Responsibility: To add clients by opening Demat A/C. Procedure Of Selling Demat A/C: 7 steps of opening a Demat A/C.

Demat A/C: A Demat A/C is an account wherein one can hold shares of various companies in the dematerialised {electronic} form.

2. ANALYSIS OF GOLD ETF AND MUTUAL FUND

Objective: To analyze the performance of Mutual Funds and Gold ETF. To know on what grounds decisions are made in investing. To analyze which plan is better and why?

SCOPE : This study will be helpful to know that which investment plan is better and why. Where should one invest? Method Of Data Collection: Secondary Data: Data Analysis:- Ms Excel , correlation

FACTORS AFFACTING GOLD PRICE

1. 2. 3. 4. US DOLLAR Repo Rate Inflation Stock Market
80.00% 60.00% 40.00% 20.00% 0.00% Oct/06 Oct/07 Oct/08 Oct/09 Oct/10 Oct/11 Oct/12 Jan/06 Jan/07 Jan/08 Jan/09 Jan/10 Jan/11 Jan/12 Apr/06 Apr/07 Apr/08 Apr/09 Apr/10 Apr/11 Apr/12 Jan/13 Jul/07 Jul/08 Jul/09 Jul/11 Jul/12 %change in Gold

Jul/06

Jul/10

-20.00%
-40.00% -60.00% -80.00% -100.00% -120.00%

Apr/13

%change Sensex
% change in inflation Rate %change in Repo-Rate

Correlation: Gold and Sensex: 8.68%, Gold and Repo Rate- (-.014), Gold and
Inflation: .144

COMPARISON OF GOLD WITH MUTUAL FUND:

Time period Gold Birla life Sun AXIS HSBC HDFC RELIANCE

Apr 2010- Mar 2011

27.0%

9.7%

4.9%

9.5%

18.6%

-5.1%

Apr 2011- Mar 2012

35.3%

-2.0%

-6.1%

-8.6%

-6.9%

-9.6%

Apr 2012- Mar 2013

5.0%

6.1%

17.3%

4.7%

3.5%

9.4%

3. INVESTORS PERCEPTION TOWARDS MUTUAL FUNDS AND GOLD ETF

OBJECTIVE: To know the perception of investors towards Mutual Funds and Commodity Market (Gold). Hypothesis: H0: People dont like to invest their Money in Commodity & Mutual Fund. H1: People like to invest their Money in Commodity & Mutual Funds. Data Collection : Secondary and primary. Research Design: Exploratory and Descriptive Data Analysis: IBM tool SPSS

ANALYSIS
Model 1 Regres s ion Res idual Total Sum of Squares 32.507 17.676 50.183 df 9 50 59 Mean Square 3.612 0.354 F 10.217 Sig. .000
a

Model 1 (Constant) INVEST__MONEY_SAVINGS_FIXED_DEPOSITS INVESTMENT_DECISION LONG_INVESTING MOST_PROFITABLE_INVESTMENT CONSULT_EXPERT FINANCIAL_2NFINANCIAL_INSTITUTION MUTUAL_FUND__INVESTED YOUR__NVESTEMNT_MF ELECTRONIC_MEDIA_INVESTING

Unstandardized Coefficients Std. B Error -0.968 -0.38 0.124 0.162 0.635 0.352 0.487 0.099 0.169 -0.542 0.679 0.236 0.212 0.096 0.076 0.127 0.117 0.081 0.129 0.206

Standardized Coefficients Beta t -1.425 -0.148 0.051 0.146 0.737 0.242 0.392 0.109 0.119 -0.237 -1.611 0.586 1.686 8.393 2.774 4.168 1.219 1.31 -2.632 Sig. 0.16 0.113 0.561 0.098 0 0.008 0 0.228 0.196 0.011

95.0% Confidence Interval for B Low er Upper Bound Bound -2.333 -0.854 -0.302 -0.031 0.483 0.097 0.252 -0.064 -0.09 -0.956 0.397 0.094 0.55 0.355 0.787 0.607 0.722 0.263 0.429 -0.128

FINDINGS
When we compare the Gold return from 2006 to 2013 we find that it has given a return of 278% which is greater than any other market. Investing in Gold is better than investing in Mutual Funds. Different investors look different aspects before investing , So to attract them towards our side we have to be Different factors play different roles in the price fluctuation of different market. While interacting with the investors we have to be very generic and should have the full knowledge of that field.

CONCLUSION

In a nutshell, a lot of investments are present in this world. Only the right kind of investment, which suits the pocket of the person, should be made. Also the investment should be in a good and well renowned company, even if the return is a little less. Since the last decade, the Gold prices are on all time high, so it is better to invest in Gold but at the same the investment in Gold requires a lot of funds so it is not possible for an individual investor. So, the investment should be made depending upon the pocket permit of the investors.

THANK YOU