Investing in common financess provides a entire solution for the investment demands. With a well-designed portfolio of common financess. the investor can hold his ain pool of professionally managed investings. even with a little initial investing. Common fund is a sort of trust that manages the pool of money collected from assorted investors and it is managed by a squad of professional fund directors ( normally called an Asset Management Company ) for a little fee.

An investing vehicle that is made up of a pool of financess collected from many investors for the intent of puting in securities such as stocks. bonds. money market instruments and similar assets. Common financess are operated by money directors. who invest the fund’s capital and effort to bring forth capital additions and income for the fund’s investors. A common fund’s portfolio is structured and maintained to fit the investing aims stated in its prospectus.

The Indian Mutual fund concern has passed through three stages. The first stage was between 1964 and 1987. when the merely participant was the Unit Trust of India. which had a entire plus of Rs. 6. 700/- crores at the terminal of 1988. The 2nd stage is between 1987 and 1993 during which period 8 financess were established ( 6 by Bankss and one each by LIC and GIC ) . The entire assets under direction had grown to Rs. 61. 028/- crores at the terminal of 1994 and the figure of strategies were 167.

The 3rd stage began with the entry of private and foreign sectors in the Mutual fund industry in 1993. Kothari Pioneer Mutual fund was the first fund to be established by the private sector in association with a foreign fund. The portion of the private participants has risen quickly since so. At present 39 plus direction companies are working in India. The major common fund participants in Indian market at present are: ?ABN AMRO Mutual Fund

I have chosen HDFC ASSET MANAGEMENT COMPANY from private sector and SBI MUTUAL FUND from public sector for my survey because HDFC is no 1 in private sector common fund companies and SBI is no 1 in public sector common fund companies. HDFC Asset Management Company Limited ( AMC ) was incorporated under the Companies Act. 1956. on December 10. 1999. and was approved to move as an Asset Management Company for the Mutual Fund by SEBI on July 3. 2000.

In footings of the Investment Management Agreement. the Trustee has appointed the HDFC Asset Management Company Limited to pull off the Mutual Fund. The paid up capital of the AMC is Rs. 25. 161 crore. SBI Funds Management Ltd. is the investing director of SBI Mutual Fund. SBI Mutual Fund has been constituted as a trust. sponsored by State Bank India. Today the Fund has an investor base of over 2. 8 million spread over 23 strategies. With a big web of roll uping subdivisions and investor service Centres. SBI Mutual Fund invariably endeavors to acquire closer to its turning household of investors. Need OF THE STUDY

Common fund companies are presenting assorted new strategies in the market due to which the investors are by and large confused that in what type of strategies they should put and in which common fund company they should put. The chief intent of this survey is to cognize about the public presentation of assorted strategies of common fund companies of public and private sector in the market. It would assist to cognize about the construct of common financess and to cognize about assorted strategies under common fund which will finally profit the investors to make up one’s mind about their investing in common fund companies.

OBJECTIVES OF THE STUDY
The survey is being conducted for the undermentioned aims:
?To develop apprehension of the construct and working of common fund strategies. ?To analyze and compare the public presentation of selected common fund strategies offered by SBI common fund and HDFC common fund. ?To study the investor’s behaviour towards the common fund strategies offered by public and private sector.

RESEARCH METHODLOGY
DATA COLLECTION
The information required for the survey is collected from primary every bit good as secondary beginnings. The primary information is collected through ego constructed questionnaires which will be to cognize about the investors behavior towards common financess in private and public sector. SAMPLE AREA- AGRA CITY

SAMPLE SIZE- 50
Sampling METHOD- CONVINIENT Sampling
The secondary information is collected from web sites.
NATURE OF STUDY
The survey is analytical which includes comparative analysis of public presentation of common financess in public and private sector every bit good as analysis of investors behavior towards common financess in private and public sector. TOOLS USED FOR ANALYSIS

?Financial technique such as Sharpe ratio and Standard divergence. Presentation tools
?Bar graphs and pie charts

Mentions
1 ) KHORANA AJAY ( 2001 ) “Performance Changes following Top Management Employee turnover: Evidence from Open-End Mutual Fund” Journal of Financial and Quantitative Analysis. September 2001 2 ) Sapar Rao Narayan and Madava Ravindran in his paper entitled Performance Evaluation of Indian Mutual Funds ( 2003 ) World Wide Web. ssrn. com 3 ) Panwar Sharad and Madhumathi R. in their survey entitled Features and Performance Evaluation of selected Common financess in India ( 2006 ) Indian Institute of Capital Markets 9th Capital Markets Conference Paper 4 ) Ranganathan Kavitha in her survey entitled A Study of Fund Selection Behaviour of Individual Investors Towards Mutual Funds – with Reference to Mumbai City ( 2006 ) Indian Institute of Capital Markets 9th

Bibliography
World Wide Web. mutualfundsonline. com
World Wide Web. hdfcfund. com
World Wide Web. sbimf. com
World Wide Web. valueresearchonline. com