WEALTH CREATION USING MUTUAL FUNDS (MFs)

Abstract

Various avenues are available for investor to earn returns and create their wealth. These avenues include investment in stocks and equities, bonds, mutual funds, real estate, gold, savings and fixed deposits etc. Mutual Funds has considered to be one of the best sources for wealth creation and management. Objective: The primary goal of this project is to analyze the role of mutual funds in wealth creation for investors. The study will encompass a thorough examination of performance evaluation measures, historical returns, risk-adjusted returns, the potential benefits of efficient mutual fund practices, and the risks associated with leveraged strategies. Purpose: The project intends to provide investors with valuable insights into the wealth creation potential of mutual funds. By evaluating historical returns, risk metrics, and the efficacy of efficient practices, the report aims to equip investors with informed decision-making tools for optimizing wealth accumulation through mutual fund investments. Data: The analysis will utilize a diverse dataset comprising mutual fund portfolios across various asset classes and timeframes. Historical returns and risk metrics will be sourced from reputable financial databases, ensuring a comprehensive and reliable foundation for the study. Research Study: The project to include the briefing/ outcome of the research papers / study conducted on the subject (10-15 numbers) Methodology: The analysis will employ a robust methodology, incorporating quantitative measures for risk adjusted returns. Statistical tools will be applied to assess historical performance, while a detailed portfolio analysis and performance attribution will be conducted to identify the key drivers of success. Additionally, leveraged strategies' risks will be modeled through quantitative analysis to provide a realistic view of potential downsides. Wherever necessary comparison of the return with other avenues will also be done.