A Study on Comparative Analysis Between Mutual Funds and Equity Shares at ICICI Direct Securities Limited, Bengaluru

Abstract

Over the span of advancement, the mindfulness obligations stand dropping and contrast in the offer market has placed financial specialists in mistake. One thinks that it’s hard to take choice on speculation. This is principally, on account of speculations are dangerous in nature and speculators need to mirror a few factors previously putting resources into venture potential outcomes. These components incorporate hazard, return, instability of offers and liquidity. The primary target of comparing interest in value imparts to shared store plans is to examine the execution of common assets with their benchmark and relating them with values by utilizing hazard, return, beta and alpha as a parameter. Historical facts were taken for scheming Risk, Return, Alpha and Beta. So examination has been done on percentage technique for corresponding equity shares with mutual fund structures. Relay on equities mutual funds are less unsafe with constant returns and mutual funds provide the investor a expanded portfolio. The individuals who have well information in equity market would be able to go for equity funds rather than spending on mutual funds since no regulator on the expenditures made by the fund director. The study will monitor the new investor who wants to invest in equity and mutual fund schemes by giving the information about how to measure the risk and return of particular scrip or mutual fund scheme. Though Equity shares earn more returns linked to mutual funds, they are equally a risky option for the investors. Investors who want to invest on safe options should go with mutual fund, but then the returns will be less. The study helps the investors to gain an insight about Equity shares and Mutual Funds, their risk and return patterns in the market. Risk and return analysis have been done to evaluate the presentation of the mutual funds. Beta is calculated in order to study the instability in the market.