Mid term Evaluation-Kotak Mutual Fund

Prepared by: Amit Chosla

Under the guidance of

Prof. Hardik Gandhi

INTRODUCTION OF MUTUAL FUND

• A mutual fund is a type of professionally-managed collective investment scheme that pools money from many investors to purchase securities. While there is no legal definition of mutual fund, the term is most commonly applied only to those collective investment schemes that are regulated, available to the general public and open-ended in nature. Hedge funds are not considered a type of mutual fund.

Advantages and Disadvantages

Advantages• Increased diversification• Daily liquidity• Professional investment management• Ability to participate in investments that may be available

only to larger investors• Service and convenience• Government oversight• Ease of comparison

Disadvantages

• Fees• Less control over timing of recognition of gains• Less predictable income• No opportunity to customize

KOTAK MUTUAL FUND

• Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life.

• From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates.

CONTD…..

• The group has a net worth of Rs.7,911 crore and employs around 20,000 employees across its various businesses, servicing around 7 million customer accounts through a distribution network of 1,716 branches, franchisees and satellite offices across more than 470 cities and towns in India and offices in New York, California,San Francisco, London, Dubai, Mauritius

and Singapore.

CONTD…..

• Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned subsidiary of KMBL, is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started operations in December 1998 and has over 10 Lac investors in various schemes. KMMF offers schemes catering to investors with varying risk - return profiles and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities

Products of kotak

Equity Schemes Kotak 50 Kotak Midcap Kotak Opportunities Kotak Contra Kotak Tax Saver Kotak Equity Arbitrage Fund Kotak Emerging Equity Scheme Kotak Global Emerging Market Kotak Select Focus Fund

Contd…..

Debt Schemes Kotak Monthly Income Plan Kotak Bond Kotak Bond Short Term Kotak Liquid Kotak Gilt Savings Kotak Flexi Debt Kotak Credit Opportunities Fund Multi Asset Allocation Fund Hybrid FTP Series 1

Contd…..

Balanced Schemes Kotak Balance

FOF Schemes Kotak Equity FOF Kotak Gold Fund

ETF Schemes Kotak Gold ETF Kotak PSU Bank ETF Kotak Sensex ETF Kotak Nifty ETF

competetion

• Unit Trust of IndiaRelianceIDFCFranklin TempletonSundaram Mutual FundReligare Mutual FundPrincipal Mutual Fund

• FortisBirla SunlifeBank of BarodaHDFCING VysyaICICI PrudentialSBI Mutual FundTata

S-W-O-T Analysis

• Strengths• The main deciding factor in buying a mutual fund is the

performance record of its managers and analysts. In SWOT analysis, examples of strengths include when a fund has outperformed the Standard & Poor's 500 index consistently or even an index fund that has performed as well or better than the index it clones. Other strengths have to do with the fees charged for investing in mutual funds.

Contd……

• If there is no load, meaning no fees to buy into the fund, and the expense ratio is no larger than 1.5 percent of the fund's assets under management, count these as strengths.

Weaknesses

• Just as good management performance is considered a strength, weaknesses can include instances in which the longtime portfolio manager announces plans to retire or a new fund manager is hired. Inconsistent performance over time, with some years outperforming the S&P 500 and others significantly underperforming, is another weakness. This often indicates a fund that is managed to carry higher risk. If the returns in good years more than make up for minor losses or lackluster performance during bad years, consider its risk profile a strength only if you are a risk investor.

Opportunities

• Mutual funds that invest in emerging technologies or markets, such as China and India, present opportunities to outperform the S&P 500. Judging these opportunities requires a look at the performance history of the fund manager and analysts. Opportunities, as they relate to mutual funds, concern the outlook for the particular market sector they emphasize.

Threats

• A long-maturity bond fund bought just before interest rates rise is an example of a threat because low-coupon bonds register large losses when interest rates rise. Investments in companies in new industries or located in politically unstable areas of the world qualify as threats, as do bad historical performance and the sudden

departure of the investment manager.

Objective of SIP

• To assist Kotak Mahindra Bank by achieving the targets set by them.

• To apply the concepts learnt in PGDM 1st year in practical business world.

• To get an insider knowledge in term of how bank works,mutual fund scenaria and other products.

 

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Reasons To Buy A Mutual Fund

Provides Diversification Professionally Managed Funds Varieties in Mutual Funds Have Low Minimums Withdrawals and Systematic Investing in Mutual

Funds Provides Transparency Safety of Investing in Mutual Funds

CONCLUSION• A mutual fund brings together a group of people and invests their

money in stocks, bonds, and other securities.

• The advantages of mutuals are professional management, diversification, economies of scale, simplicity and liquidity.

• The disadvantages of mutuals are high costs, over-diversification, possible tax consequences, and the inability of management to guarantee a superior return.

• There are many, many types of mutual funds. You can classify funds based on asset class, investing strategy, region, etc.

• Mutual funds have lots of costs.

• Costs can be broken down into ongoing fees (represented by the expense ratio) and transaction fees (loads).

CONTD……

• The biggest problems with mutual funds are their costs and fees.

• Mutual funds are easy to buy and sell. You can either buy them directly from the fund company or through a third party.

• Mutual fund ads can be very deceiving.

Suggestions

• More branches

• Customer awareness

THANK YOU