8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 1/22

SUBMITTED BY

PRATYUSH CHOUDHURY

RAJARSHI BANERJEESAJIB KAR

ABHISHEK CHATTERJEE

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 2/22

A mutual fund is just the connecting bridge or afinancial intermediary that allows a group ofinvestors to pool their money together with apredetermined investment objective. The mutualfund will have a fund manager who is responsiblefor investing the gathered money into specificsecurities (stocks or bonds). When you invest in amutual fund, you are buying units or portions of

the mutual fund and thus on investing becomes ashareholder or unit holder of the fund. The biggestadvantage to mutual funds is diversification BYMINIMISING RISK AND MAXIMISING RETURN

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 3/22

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 4/22

They form mutual funds under existing Trust or Companies Acts

Trust managed by the Trustees and Trustee Companies are managed bythe Board of Directors

Trust or TrusteeCompany

Undertakes the administration & investment activities of the fund

Asset ManagementCompany (AMC)

He/She is an independent entity who is responsible for safekeeping thefund·s assetsCustodian

They handle sales and redemption related activities of the fund

They also maintain records of the shareholders and send the paymentcheques to the investors

Registrars/TransferAgents

They are the funds distributors/underwriters to handle the sales of units

The underwriters act as an wholesale selling units to the brokers who inturn sell to the retail investors

Distributors

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 5/22

NAV - The Net Asset Value is the price of aunit of a fund. When a fund comes out with anNFO, it is priced Rs 10. Later, depending on the

value of the investments, this price could riseor fall

Mutual funds only calculate their NAVs once per trading day, at the closeof the trading session.

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 6/22

Portfolio -This is the term given to all the investments madeby the fund as well as the amount held in cash.

Load - This is a fee that is charged when you buy or sell theunits of a fund. The load is a percentage of the NAV.

According to the new SEBI regulations, the entry/exit load would beremoved

Corpus - The total amount of money invested in the

fund is called the corpus AUM - Assets Under Management is the total value of

all the investments currently being managed by thefund.

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 7/22

Open Ended Schemes:

An open-end fund is one that is available forsubscription all through the year.

These do not have a fixed maturity. Investorscan conveniently buy and sell units at NetAsset Value("NAV") related prices. The key

feature of open-end schemes is liquidity.

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 8/22

Close Ended Schemes

A closed-end fund has a stipulated maturityperiod which generally ranging from 3 to15

years. The fund is open for subscription onlyduring a specified period. In order to providean exit route to the investors, some close-endedfunds give an option of selling back the units to

the Mutual Fund through periodic repurchaseat NAV related prices. SEBI Regulationsstipulate that at least one of the two exit routesis provided to the investor

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 9/22

Interval Schemes

Interval Schemes are that scheme, whichcombines the features of open-ended and close-ended schemes. The units may be traded on thestock exchange or may be open for sale orredemption during pre-determined intervals atNAV related prices

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 10/22

1. EQUITY FUNDS:

DIVERSIFIED EQUITY FUNDS

SECTOR SPECIFIC FUNDS

TAX SAVING FUNDS

2 . DEBT FUNDS:

GILT FUNDS

INCOME FUNDS

SHORT TERM PLANS

LIQUID FUNDS

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 11/22

3 . BALANCED FUNDS:

As the name suggest they, are a mix of both equity anddebt funds. They invest in both equities and fixed

income securities, which are in line with pre-definedinvestment objective of the scheme. These schemes aimto provide investors with the best of both the worlds.Equity part provides growth and the debt partprovides stability in returns

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 12/22

GROWTH SCHEMES:Growth Schemes are also known as equity scheme.These schemes normally invest a major part of theirfund in equities and are willing to bear short-termdecline in value for possible future appreciation.

INCOME SCHEMES:Income Schemes are also known as debt schemes. Theaim of these schemes is to provide regular and steady

income to investors. These schemes generally invest infixed income securities such as bonds and corporatedebentures. Capital appreciation in such schemes maybe limited.

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 13/22

BALANCED SCHEMES:

These schemes invest in both shares and fixed incomesecurities, in the proportion indicated in their offer

documents (normally 50:50).

MONEY MARKET SCHEMES:

These schemes generally invest in safer, short-term

instruments, such as treasury bills, certificates ofdeposit, commercial paper and inter-bank call money.

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 14/22

TAX SAVING SCHEMES

INDEX SCHEMES

SECTOR SPECIFIC SCHEMES

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 15/22

PROFESSIONAL MANAGEMENT

DIVERSIFICATION

ECONOMIES OF SCALE

LIQUIDITY

SIMPLICITY

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 16/22

INEFFICIENT MANAGEMENT

COSTS

TAXES

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 17/22

SEBI Mutual Fund Regulations(1996)

Indian Trusts Act

Registrar of Companies takes care of theCompliances

Company Law Board is responsible for levyingpenalties.

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 18/22

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 19/22

The Mutual fund industry is expected to increase its sharefrom present 8.8% of GDP to 21% in next 10 years. Thesize of the industry is expected to grow to 9,50,000crore

The Steps taken by the RBI for Financial inclusion and theFinancial Literacy of the Rural Sector is likely to mobilizethe savings of the Households into the Financial Markets. The Mutual Funds is the most likely route provided the risk averse

nature of the Indian Investors.

The growing GDP of the country is likely to increase andthe key driver to utilize this growth would be the productinnovation to cater to the needs of investors withdifferent risk appetite.

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 20/22

ABN AMRO Mutual Fund

Birla Sun Life Mutual Fund

Bank of Baroda Mutual Fund (BOB Mutual Fund)

HDFC Mutual Fund

HSBC Mutual Fund

ING Vysya Mutual Fund Prudential

ICICI Mutual Fund

Sahara Mutual Fund

State Bank of India Mutual Fund (SBI) Tata Mutual Fund

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 21/22

www.wikipedia.org

www.moneycontrol.com

www.amfiindia.com

8/8/2019 Mutual Fund Ppt Pratyush Rajsajib

http://slidepdf.com/reader/full/mutual-fund-ppt-pratyush-rajsajib 22/22

THANK YOU