Mutual Fund Ppt Pratyush Rajsajib
Transcript of Mutual Fund Ppt Pratyush Rajsajib
8/8/2019 Mutual Fund Ppt Pratyush Rajsajib
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SUBMITTED BY
PRATYUSH CHOUDHURY
RAJARSHI BANERJEESAJIB KAR
ABHISHEK CHATTERJEE
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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
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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
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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.
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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.
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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.
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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
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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
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1. EQUITY FUNDS:
DIVERSIFIED EQUITY FUNDS
SECTOR SPECIFIC FUNDS
TAX SAVING FUNDS
2 . DEBT FUNDS:
GILT FUNDS
INCOME FUNDS
SHORT TERM PLANS
LIQUID FUNDS
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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
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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.
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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.
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TAX SAVING SCHEMES
INDEX SCHEMES
SECTOR SPECIFIC SCHEMES
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PROFESSIONAL MANAGEMENT
DIVERSIFICATION
ECONOMIES OF SCALE
LIQUIDITY
SIMPLICITY
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INEFFICIENT MANAGEMENT
COSTS
TAXES
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SEBI Mutual Fund Regulations(1996)
Indian Trusts Act
Registrar of Companies takes care of theCompliances
Company Law Board is responsible for levyingpenalties.
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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.
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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
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www.wikipedia.org
www.moneycontrol.com
www.amfiindia.com
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THANK YOU