PRESENTATION FOR VIVA

Rutuja Alegaonkar

WE LONGUE

1.Mr.Lalit Popli

HEAD –IT ICICI PRUDENTIAL MUTUAL FUND AMC

Learnings :-After completing my post-graduation in management, I started my career with Siemens Ltd in Sales function. From there on, I have grown into various roles with broad horizons, right from heading the Business Development area to becoming a Delivery head for IT Company, then being a Principal consultant in BFSI segment and now as Technology Head for ICICI Prudential AMC. Throughout my professional journey, I have served in various functional areas for organizations.

More than I chose information security as a profession, I believe the profession chose me. In my opinion, information security provides new challenges every day; not just black and white, but many challenges are grey. The satisfaction that one gets while conquering such challenges is an adrenaline rushes in itself; hence I am quite thrilled looking into this area of business.

The way business is being conducted has evolved drastically over time, posing new challenges to all Information security professionals. Data movement is no longer confined to a boundary and is increasingly being used in a borderless world. Innovative use of newer platforms like Social Media and Mobility including concepts like Bring Your Own Device (BYOD),work from anywhere, mobile applications and internet present big challenges to CISOs ;thereby, requiring them to innovate and support the business while securing data movement using these new platforms.

Mr Lalit Popali believe that Information Security is a core function and also a very sensitive part for the management of any organization. Core functions should not be outsourced completely as outsourcing will increase the risks for the organization. Having said that, some of the areas where outsourcing can work are Penetrations testing, Vulnerability Assessments, Network & application security reviews, consulting assignments to establish or implement new standards or frameworks etc. Hence, any outsourcing activity should be viewed in terms of the benefits it could bring and risks it could reduce for the organization.

There are many overlaps between the two but there are certain distinctions as well. Data security deals more with ensuring that data is not stolen through external or internal entities; hence, many technological and procedural barriers are built around it so that data remains protected. On the other hand, data privacy deals with those aspects where the owner of the data is the only person who should have access to the data unless the owner provides permission for another person or entity to access the data in order to provide certain services.

Currently, we see many vendors using FUD (Fear, Uncertainty, and Doubt) to sell their products or services. In my opinion they should rather focus on demonstrating how their solution will create value for the organization. They should look at becoming trusted and strategic partners in the information security journey for the organization and if they manage to have such a positive approach, the rewards that comes along will be there for all to see.

2.Mr Manish Chitnis

Sr. Vice President At Capital First Ltd

Learning :As I listen that video I understand that,

Mr Chitnis Come with a hard experience in the NBFC(Non Banking Financial Company.)Sector.

He Work with companies like L&T, Fulletron & Capital First He has been a key Professional in forming Departments for reasury in organisation.

Capital First is a Provider of financial service across consumer & Wholesale business with aspiration to grow into a significant financial conglomerate. Capital First is a systemically important NBFC With Record of Consistence growth & Profitability.

Capital First has a comprehensive product suit to meet multiple Financial Needs of customers including Consumer leading , Corporate leading.

At the time of volatile interest and exchange rates companies need to take a closer look at their treasury and foreign exchange management functions to capitalize on the growth opportunities offered by the booming Indian economy. In the wake of global competition, economic uncertainty, tax law changes and ethical concerns over financial dealings, the role of treasurer in an organization has become more important, complex and demanding than ever. He Said The Corporate Treasury Forum will bring together industry leaders in treasury management to share their views, experiences and expertise through sessions and in-depth case studies. At this conference the experts will discuss the entire gamut of activities involved in the important function of treasury management.The Corporate Treasury Forum also includes an interactive workshop on Forex Management sponsored by Kshitij.com to help you efficiently manage the forex risk for your organization.With the rising rupee there are new challenges and opportunities for your organization to manage costs and increase profits. This workshop shifts the focus from the hype surrounding the appreciation of rupee to risk management and how your organization can benefit from it.This two day forum provides a platform for CFOs and Treasurers to discuss the best practices in treasury and risk management.

3. Vijay Mahajan

Vive Chaiman & CEO of Money House

Learnings : Mr Vinay Mahajan is a vive Chairman & CEO of Money house a successfully Start up. He Comes with 20years of rich experience in the fianancial Industry is an IIN Calcutta.

He Was Perviously with Aanand rathi Financial Services. Is a Highly Qulified Acacdemic Individual .

As per Him Money market means e.g Bhartiya Samruddhi Finance Ltd, a Hyderabad-based NBFC and a BASIX group company, has raised Rs. 118 crore from three private equity investors.

Matrix Partners India has invested Rs. 100 crore, while existing investors Hivos Triodos Fonds and Lok Capital have invested Rs. 18 crore.ShareholderWith this investment, Matrix Partners India will pick up a 18 per cent stake in BSFL, becoming the largest non-promoter shareholder.After this fund raising, the stake of the promoters and employees will come down to 33 per cent, said Mr Vijay Mahajan, Chairman, BASIX.

“

The capital infusion will allow us to grow our loan book and provide operational scale which will bring down costs. This will bring down the annual percentage rate by 100 basis points on loans,” said Mr Sanjeev Viswanathan, Managing Director and CEO, BSFL.After this infusion, BSFL's capital adequacy ratio will be at 25 per cent. BSFL will again look to raise funds next year as these funds will be sufficient only for the next nine months, said Mr S. Ramachandran, Chief Financial Officer, BSFL.Mr Vishwanathan said the equity fund raising will give the company a headroom to raise Rs. 1,500 crore in debt.BSFL will eventually look to raise funds through an IPO but it's too early to discuss, said Mr Mahajan.

1. Mutual Fund

MUTUAL FUND :-

It is an innovative instrument. Collective investment that allows many investors with a common objective to pool individual investment & give to a professional manager who in turn would invest these monies. In line with the common object.

HOW DO MUTUAL FUNDS WORK???...

HISTORY

2.Mutual Fund Types

TYPES OF MUTUAL FUND :-

TYPES OF MUTUAL FUND

BY

CONSTITUTION

BY

INVESTMENT

BY NATURE OF

INVESTMENT

BY CONSTITUTION

CLOSE ENDEDOPEN ENDED

o NO FIXED MATURITY.

o VARIABLE CORPUS

o NOT LISTED

o BUY FROM & SELL TO THE FUND

o ENTRY & EXIT AT NAV RELATED PRICE

o FIXED MATURITY

o FIXED CORPUS

o GENERALLY LISTED

o BUY & SELL IN THE STOCK EXCHANGES

o ENTRY & EXIT AT THE MARKET PRICE

BY INVESTMENT

Load & Non load Funds.

Tax Exempt & Non Tax Exempt

BY NATURE OF INVESTMENT

Financial Assets:- Equity, Money Market, Debt

Physical Assets :- Metal, Real Estate

3.Why Mutual Fund??

Why Long Mutual fund ??? Stock Market are very sophisticated.

Free Pricing & integration With World Market.

Time Knowledge & Luck.

Substantial Capital For Diversification.

Diversification

Liquidity

Tax Benefit

Convenience

Professional Management

What is offer Documents??? Contains the details of scheme.

Filed with SEBI.

Like Prospectus of an IPO.

Close ended Scheme- One Time.

Open ended Scheme- Perpetual- Kept updated from time to time.

4.Investors

Who can Invest ??? Resident Indian Individuals

Indian Companies

Trusts / Charitable Institution /PF’s

Banks

Insurance Companies

NRI

Partnership Firms Etc

AFFORDABILITY provides an opportunity for a small investors.

WIDE CHOICE offers a variety scheme meet the investment need of all investors.

YOUR NEEDS:-short terms :- banks/ liquid fundsmedium term (1 to 3 yrs.) :- debt or debt related funds (3 to 5 yrs.) :- mix of debt/ equity or funds with an appropriate

mix balance.long term :- equity or equity related funds

Well regulated governed by multiple agencies:-MOF (MINISTER OF FINANCE)CLB (COMPANY LLOW BOARD)ROC ( REGISTER OF COMPANY)SEBIRBITRUSTEESAUDITORSBOD

INVESTOR’S RIGHTS & OBLIGATIONS

RIGHTS –

Legal limitations.

Unit holder’s are not distinct from trust, they cannot sue trust.

Sponsor do not have any legal obligations. (limited to initial contribution)

No rights to prospective investors.

OBLIGATIONS –

Must read offer doc & AOD

Beware of risk factors.

Must monitor investments regularly.

5.NAV

NAV

NAV is influenced by:-

Purchase & Sale of investment Valuation of investment Other assets and liabilities Units sold and redeemed

NAV = Net assets of scheme / No.of units outstanding

i.e. market value of investment + receivables + other accrued income + other assets – accrued expenses – other payables – other liabilities

No.of units outstanding as at nav date

CHANGE IN NAVFORMULA :

For NAV change in absolute terms =

(NAV at end of period – NAV at beginning of period * 100

NAV at beginning of period

For NAV changed in annualized terms =

(NAV change in % in absolute terms) * (365 / no.of days)

Topics MUTUAL FUNDS PUMPED RS 1 LAKH CRORE IN APRIL-MAY.

MUTUAL FUNDS’ ASSET BASE REGAINS ?12 LAKH CR MARK

WHAT IS THE DIFFERENCE BETWEEN INDEX FUNDS AND MUTUAL FUNDS?

MUTUAL FUNDS: 5 REASONS WHY YOU SHOULD INVEST.

THINGS TO KEEP IN MIND WHILE ADDING A JOINT HOLDER FOR MUTUAL FUNDS.

AFTER FIVE-YEAR HIATUS, MUTUAL FUNDS TURN TO INVESTING IN MICROFINANCE COMPANIES.

WHEN SHOULD YOU OPT FOR A STP OR SYSTEMATIC TRANSFER PLAN IN A MUTUAL FUND?

MUTUAL FUNDS INVEST RS40,000 CRORE IN DEBT MARKETS DURING APRIL-MAY.

MUTUAL FUND INDUSTRY SIP COUNT UP 18 PER CENT TO 73 LAKH.

IS IT TIME TO BOOK PROFITS IN YOUR MUTUAL FUND SCHEME?

AMFI: MUTUAL FUNDS PUMPED RS 1 LAKH CRORE IN APRIL-MAY

LEARNING :

 

Investors have pumped in over Rs 1 lakh crore into various mutual fund schemes in the first two months of the current financial year, 2015-16, with equity and money markets contributing the most.  This is slightly lower in comparison to Rs 1.46 lakh crore net inflows witnessed in the first two months of the 2014-15 fiscal.  According to the latest data available with Association of Mutual Funds in India ( Amfi), investors put in a net Rs 1.12 lakh crore in MF schemes in April and May.  

"It has been across asset classes, but investors' participation in equity oriented funds is a positive thing for the industry. Despite the recent volatility in the markets, fund managers are bullish on the equity schemes," Quantum AMC Associate Fund Manager (Equity) Nilesh Shetty said.  "Even in case there is some instability in the market, we may not see huge redemptions as investors have seen good returns by investing in equities in the medium and long term," he added.  Liquid or money market category witnessed an inflow of about Rs 86,000 crore, while equity schemes saw an infusion of Rs 20,256 crore.  There are 44 mutual funds in the country and their total Average Asset Under Management stands at over Rs 12 lakh crore. - ECONOMIC TIMES

MUTUAL FUNDS’ ASSET BASE REGAINS ?12 LAKH CR MARK LEARNING:

The mutual fund industry saw assets under management return to over ?12 lakh crore in May, mostly through inflows into equity and income funds, according to data released by the Association of Mutual Funds in India. Income, equity and balanced funds saw the highest inflows, which, coupled with mark-to-market gains helped the industry’s strong show on the AUM front. Liquid funds see outgoAlthough ridden with volatility, the benchmark CNX Nifty gained 3.1 per cent in May, after falling 3.7 per cent and 4.6 per cent in April and March, respectively. However, money went out of liquid funds to the tune of ?15,657 crore, while ETFs — gold and others — also witnessed outflow. - BUSINESS LINE

WHAT IS THE DIFFERENCE BETWEEN INDEX FUNDS AND MUTUAL FUNDS?

LEARNING:

 

Index Fund Mutual Fund

o Index Funds today are a source of investment for investors looking at a long term, a less risky form of investment.

o The success of index funds depends on their low volatility and, therefore, the choice of the index.

o There are many indexes such as banking, IT, metals, industrial, infrastructure, energy etc. and each segment has its own index. These funds completely replicate the respective index.

o Index funds tend to do well in a bull market. While, in a downtrend they lose money if they stick to the index.

 

o A mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.

o In mutual funds, investment set of portfolio managers assess the market trends and make investments in funds based on that. The fee charged for actively managed funds are high.

o Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders.

 

 

Index Fund Mutual Fundo Such funds are managed

passively. They only track the performance of the index. Such funds are charged less as there is no much involvement of the fund managers.

 

- goodreturns

MUTUAL FUNDS: 5 REASONS WHY YOU SHOULD INVEST LEARNING

Mutual Funds pool money from various investors and invest the same in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments.  These combined holding together is known as Portfolio. Each unit represents an investor's proportionate ownership of the fund's holdings and the income those holdings generate.

Reasons why should Consider investing in Mutual Fund.

1) Professional Management  Money is invested through fund managers, so one need not worry and as the decision is taken by portfolio managers.

2) Diversification  Diversification is an investing strategy that can be neatly summed up as "Don't put all your eggs in one basket". By owning shares in a mutual fund instead of owning individual stocks or bonds, the risk is spread out.

3) Economy of Scale  Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions.

4) Liquidity  Just like individual shares, mutual fund units are convertible into money by way of sale in the market. One can buy and sell mutual fund units anytime at their convenience. Many banks have sponsored their own line of mutual funds and the minimum investment amount is small.

 

 

5) Mutual Fund to suit your need  Mutual Fund offers wide range of funds to choose from depending on the goal and risk profile. Mutual Fund can suit the need of young investors as well as a senior citizen.  Conclusion

Difficulty in mutual fund lies in the transparency, as the fund is managed by fund managers.  Fees charged by some institution is also high such as sales charges, fees and expenses.  However, investors should examine each of the above features carefully before investing in mutual funds. As mutual Fund investing are subject to market risk.  - goodreturns

THINGS TO KEEP IN MIND WHILE ADDING A JOINT HOLDER FOR MUTUAL FUNDS

LEARNING

Adding a joint holder for mutual funds In order to ensure good housekeeping of investments, it is always a good idea to have joint holding of investments so that the joint holder can operate the account in the first holder's absence.  Letter to the fund house If a unit holder desires to add a second or a third holder, then the same needs to be informed to the fund house through a letter affixing the signatures of the second or third holder. The format of the letter/request is available with the fund house or its registrar.

Documents> Bank verification letter confirming holding pattern and signatures of all holders.> Self attested PAN card copies of the new holders.> Mutual fund KYC acknowledgement copies of the new holders. DeclarationSome fund houses may require separate stamped indemnity and declarations from the existing and proposed joint holders to indemnify the AMC for any claims or suits that may arise for adding joint holders. Points to note> It is best to change the nomination registered with the mutual fund post addition of the joint holder. > If the proposed holder is not KYC compliant, the first step would be to have the individual fill up the KYC form and get the same registered. The content is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta. - ECONOMIC TIMES

AFTER FIVE-YEAR HIATUS, MUTUAL FUNDS TURN TO INVESTING IN MICROFINANCE COMPANIES

LEARNING

Mutual funds have started investing in debt issuances of microfinance companies after a five-year hiatus. The lure of higher yields, top-grade ratings and shorter tenure of loans are prompting fund houses to park funds in microfinance securities.  Investments worth over Rs 1,000 crore have already flown into microfinance papers bearing 11.5-13% coupon rates. HDFC MF, SBI MF, Reliance Mutual, Kotak MF, and ICICI Pru MF, among others, have invested in papers issued by SKS Microfinance, Janalakshmi Financial Services, Ujjivan Financial Services and Equitas Micro Finance. All these papers yield 3-4% higher than top-rated securities issued by companies.  

"It's an opportunistic view on the sector. These papers give us very attractive spreads and are much more than the best of corporate debt," said Lakshmi Iyer, head of fixed income and products at Kotak Mutual Fund.  Mutual funds had stopped investing in microfinance companies after the blowup in Andhra Pradesh in 2010, when several borrowers committed suicide due to alleged harassment by lenders. This crisis led to promulgation of various laws to control and regulate the scope of microfinance in the country.  "Microfinance, as a sector, has become more amenable to investments post the AP crisis. Lots of regulatory controls have been put in place... the sector is very stable for investments now. We expect the sector to do well in the years to come," says Navneet Munot, CIO at SBI Mutual Fund.  Fund houses are investing in secured debentures issued by microfinance companies. The security is in the form of receivables and fixed assets hypothecated (to itself) by microfinance companies. Women-dominated joint lending groups (JLGs) account for over 95% of the borrowers.  Banks - traditional lenders to microfinance companies - have become cautious while lending to microfinance companies post the AP crisis. Some of them also have internal caps on lending to smaller microfinance companies.  

"MF investments will help us diversify our funding source. Funds on their part will get better yields on their investments. It is a win-win for both parties," said VS Radhakrishnan, MD, Janalakshmi Financial Services.  Loans disbursed to women groups (clusters) carry better weightage as their repayment rates are higher than the men clusters. Repayment rates are as high as 99.5% among women borrowers, making them eligible for better credit ratings. Microfinance debentures usually bear tenures of 12-36 months, but foreclosure by borrowers reduce the term to as low as 18-24 months.  "We're only lending to MFIs that have good repayment record and sound management. The profile of borrowers is clearly analysed before committing funds," said Kotak's Iyer.  Sentiment in the micro-finance sector has improved after the Reserve Bank of India (RBI) was appointed as the regulator of microfinance companies in the country in 2012. RBI has also been entrusted with sweeping powers to control lending rates and margins, apart from fixing prudential norms. Also, the Micro Finance Institutions Bill of 2012 mandates an interest rate cap of 26% by the companies, reducing the risks of political upheavals in the future. - ECONOMIC TIMES

WHEN SHOULD YOU OPT FOR A STP OR SYSTEMATIC TRANSFER PLAN IN A MUTUAL FUND?

LEARNING

It's highly possible that you would like to switch from one fund to the other for various reasons when investing in a mutual fund.For example, you may not be happy with a particular scheme or you would want to switch because you may see the stock markets falling or for any other reason.Systematic Transfer Plans: Why It Is Important In A Mutual Fund?Systematic Transfer Plan or STP is a mechanism whereby you can switch your funds from one mutual fund scheme to the other. It give the mutual fund the authorization to effect such a switch periodically, depending on the investor. You can choose the number of units to be transferred along with the timing of when it should be transferred.Advantages of a Systematic Transfer Plans

Like an SIP, STP also offers an advantage. It helps in averaging the cost when you find it difficult to time the market. It may help you to buy at a lower net asset value. The other advantage is that it helps to rebalance your portfolio. For example, you can allocate more to debt and less to equity when the markets are high. On the other hand you can add more to equity and less to debts when the markets are low.Thus Systematic Transfer plans allow you to switch which is a big advantage.

How An STP Works?You have to do things at the very outset. One is that you have to choose the fund that you exit and choose a fund that you want to enter. The instructions are then passed onto the mutual fund house accordingly.

For example, you may want to move money from a money market scheme to an equity scheme and vice versa.Remember, before effecting a change, do look for the exit load charges. You may not be able to time the markets and may need professional advise sometimes.There are various types of Systematic Transfer plans. In a fixed STP you may take out a fixed sum every month. On the other hand in capital appreciation STP you may withdraw the same after you have made adequate money, irrespective of the time. In a Flexi STP you may choose a variable amount that can be transferred.

ConclusionAs mentioned earlier it is important to take advise on the timing of your switch. Do not switch randomly unless you have knowledge. Also, as indicated earlier do not forget that there could be exit loads. Do remember to check for the same. - goodreturns

MUTUAL FUNDS INVEST RS40,000 CRORE IN DEBT MARKETS DURING APRIL-MAY

LEARNING

This follows a fund infusion of nearly Rs6 lakh crore in debt markets in the last fiscal year Mutual fund managers pumped in more than Rs.40,000 crore in debt markets during April-May this fiscal primarily on account of improved business sentiments.This follows a fund infusion of nearly Rs.6 lakh crore in debt markets in the last fiscal year. According to the Securities and Exchange Board of India (Sebi), fund managers invested a net sum of Rs.17,389 crore in May and Rs.22,650 crore in April, taking the total amount to Rs.40,039 crore in the ongoing fiscal year.In comparison, mutual funds invested a net amount of Rs.13,420 crore in equities during the first two months of 2015-16. “After a spectacular past fiscal, we are upbeat about overall inflows in equities and debt markets for the current fiscal year (2015-16) as well,” an industry expert said.

This inflow has helped the mutual fund industry to reach around Rs.12 lakh crore mark in assets under management (AUM) by May-end.Mutual fund is an investment vehicle with a pool of funds collected from investors to buy securities such as stocks, bonds, money market instruments and similar assets. -       LIVEMINT

MUTUAL FUND INDUSTRY SIP COUNT UP 18 PER CENT TO 73 LAKHLEARNING

Showing a strong surge in retail investor interest, mutual fund industry has seen the number of its new Systematic Investment Plans grow by 18 per cent to 73 lakh at the end of March 2015. Mostly preferred by small investors, SIP allows investment of a fixed and small sum on a monthly basis or other regular intervals in a mutual fund schemes.The total SIP count of the industry rose to 73.05 lakh at the end of March this year from 62.10 lakh last year, as per the latest data.

A rally in the stock markets and increased participation from retail investors has helped mutual fund industry get more investments through the systematic investment route, market insiders said.Besides, a large amount of these SIPs have been added in B-15 cities as investors from smaller towns and areas are showing great interest.B-15 Cities are smaller cities and towns beyond the top-15 cities including metros like New Delhi, Mumbai Kolkata and Chennai.

Mutual Fund houses have been organising investor education programmes to reach out to retail investors and help them participate in the Indian stock markets through the MF route.Growth in SIP number is in line with the BSE Sensex surging by 25 per cent in the last financial year.

- ECONOMIC TIMES

 

IS IT TIME TO BOOK PROFITS IN YOUR MUTUAL FUND SCHEME?LEARNING

Some mutual fund schemes until the last month had given 100 per cent returns in the last one year, especially the small and mid cap funds. Those who had not booked profits in March, have seen net asset values erode in April, as the Sensex and Nifty have fallen almost 10 per cent, since peak levels of 30,000 points seen in early March in the Sensex. If you are a large cap mutual fund investor, your scheme would have shed at least 8-10 per cent in net asset value since March. 

Many investors are disappointed the way markets cracked in April and many are asking whether its time to book profits in mutual fund schemes? Should you book profits in mutual fund schemes? It's always the most difficult question any analysts tracking the markets would like to answer. But, let's put things in right perspective. If you had invested a year back in any large cap fund, you would have made a return of as high as 40-60 per cent in the last one year. This is stupendous returns by any stretch of imagination.If you think that you are going to generate similar returns in the next one year, just forget it. If you can generate returns of 15 per cent, consider that a decent return from a mutual fund scheme. But, if you are in a small or medium cap fund, the risk is going to be very high. If the markets fall even 2 per cent from year, your portfolio could take a severe beating.On the other hand in a large cap fund you are relatively better insulated. The markets have already fallen sharply in the last one month. There's no point in exiting a mutual fund scheme now, since the net asset value would have dropped. For example, the HDFC Top 200 Fund has seen a negative return of 7 per cent return in the last one year.Therefore, it would be a good idea to sell your mutual fund scheme, when the Sensex crosses 30,000 points. At least you would get better returns then.goodreturns