welcome

FINAL REPORT OF MT
SUBMITTED BY
J.SAMBASIVARAO
ENROLLMENT NO 7NBGUOO4
ICFAI GUNTUR
 TITLE
“A THISIS ON RISK MITIGATION METHODS
FALLOWED BY MUTUAL FUNDS OF REALINACE
AT GUNTUR”
 OBJECTIVES
To know the risk mitigation methods fallowed by
Reliance Mutual funds
 
To know the proper understanding of the risk
where exactly it is involved
 
To know how customers are react when risk is
high

To equip the knowledge of Mutual Fund market

 
 
 
 limitations
 
The minimum risk is unavoidable
Its taking a long time for a fund to grow
The flexibility of redemption is less
The actual risk that is involved in the fund
performance is not reveled to the customers
Most of the customers are illiterate about market
knowledge about marketing konwledge
 
 
 
 QUESTIONNAIRE
  

1. How many customers do you have?

2. Is there any risk involved while investing into the Mutual
Funds?
a) Yes
b) No
3. If yes what are the risks?
4. Where is the highest risk involved?
a)while investing
b)at the time of redemption
5. What are the risks involved at redemption of Mutual Funds?
6. What are the suggestions or how do you help them to get
rid of the risk?
7. What are the instructions while entering into the MF?
8. Are they ready to bare the risk?
a) Yes
b) No
 Analysis
Risk and return go hand in hand in investments and finance.
One cannot talk about returns without talking about risk
because investment decisions always involve a trade off
between risk and return

Risk can be defined as the chance that the actual outcome

from an investment will differ from the expected out come
this means that the more variable the possible outcomes
that can occur the greater the risk

Indian Mutual fund industry though at a budding stage when

compared to US. Apart from providing the advantage of risk
mitigation of Mutual Funds. Mutual funds primarily help in
risk mitigation they do not completely eliminate the risk
totally
Mutual funds are subjective to market risk, a minimum risk is
unavoidable. Investors to be very care fully about the
selection of funds that should best fit their risk and returns
 FINDINGS
Minimum risk is unavoidable in the mutual funds
Though the AMC giving some suggestions but mitigating the
risk is unavoidable
Risk arises due to political events such as war, national
elections etc
The risk arises from the possibility that increase in the cost of
living will reduce or eliminate a fund’s real inflation adjusted
returns
Risk is minimized to certain extent by investing in systematic
investment plans
Close ended funds are secured funds rather than open ended
funds
 SUGGESTIONS
AMC’s should improve after and pre sale services in the terms
of redemption of Mutual funds and Systematic Investment
plans
While investing in the Mutual funds investors should read the
prospects and terms and conditions clearly
The fund performance varies from time to time depending on
the market situation. Surprisingly too often, last year best
performers can be this year’s laggards.
Over diversifying or non diversifying may create more risk to
customers
Immediate redemption of funds leads to some risk
Investors are advised to know little bit of market analysis
Investors should keep in mind the present situation that leads
to future modifications
conclusion
The Mutual funds works with in as the regulatory
framework of SEBI as per the provisions of the
SEBI Mutual funds Regulations 1996 and other
rules and regulations declared by SEBI form time
to time
Though last year best performance funds may not
give good results to this year
With out knowing the details of the fund customers
should not invest into the Mutual funds
Mutual fund market is depend on the social ,
political Economical and natural calamities so
customers should always keep in mind while
investing in to the Mutual Funds
Succes is sweet but it
secret is sweat