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  • 1. MUTUAL FUNDS By CH.Shailaja 09D31E0051
  • 2. INTRODUCTION:
    • What are Mutual Funds
    • Advantages of mutual funds
    • Disadvantages of mutual funds
    • Types of mutual funds
  • 3. What Are Mutual Funds?
    • A mutual fund is a managed group of owned securities of several corporations.
    • These corporations receive dividends on the shares that they hold and realize capital gains or losses on their securities traded. Investors purchase shares in the mutual fund as if it was an individual security.
    • After paying operating costs, the earnings (dividends, capital gains or loses) of the mutual fund are distributed to the investors, in proportion to the amount of money invested.
    • Investors hope that a loss on one holding will be made up by a gain on another. Heeding the adage "Don't put all your eggs in one basket" the holders of mutual fund shares are able collectively to gain the advantage by diversifying their investments, which might be beyond their financial means individually.
  • 4. Advantages of Mutual Funds
    • Diversification: The top Indian mutual funds create their portfolio designs in such a manner that the interested individuals who invest in mutual funds react differently even under similar economic conditions
    • Professional Management: A majority of the mutual funds in India employ the leading professionals in their investments management.
    • Regulatory oversight: There are certain rules and regulations framed by the government which every Mutual fund are required to follow
    • Liquidity: Getting your money out from the mutual fund is no difficult task. All you have to do is just write a check, make a telephone call and you are done.
    • Convenience: Mutual fund shares can be bought via phone, mail, or even over Internet. Low cost:
  • 5. Disadvantages of Mutual funds
    • No Guarantees: Every investment comes with some sort of risk. If the value of an entire stock market falls, it will directly affect the mutual fund shares as its values will also decline, irrespective of the portfolio balance
    • Taxes: In a typical year, the mutual funds which are most efficiently managed have the capacity to sell anywhere from 20 - 70 % of their portfolio securities.
    • Fees and Commissions: An administrative fee is required by all kinds of funds to meet the expenses. There are many funds which even charge commission on sales or "loads" to pay financial consultants, brokers, financial institutions or financial planners.
    • Risk Management: It depends on the right decision of the fund manager that you will get a satisfactory return or not. This is unlike Index Funds where there is no management risk involved
  • 6. Association of Mutual Funds in India
    • With the rise in mutual fund companies, a requirement for mutual fund association in India was experienced to operate as a non-profit organization. This led to the establishment of Association of Mutual Funds in India in 1995.
    • Association of Mutual Funds in India is an important organ of all Asset Management Companies that are registered with Securities and Exchange Board of India. Till today, all the Asset Management Companies with Mutual Fund schemes are the members of Association of Mutual Funds in India.
    • AMFI operates under the superintendence of its Board of Directors. Association of Mutual Funds India, also referred to as AMFI, has helped the Indian Mutual Fund Industry to enter into a healthy and professional market, maintaining the market ethics and standards. It attempts to promote the interests of both Mutual Funds and unit holders
  • 7. Aim of Association of Mutual Funds in India
    • The aims of Association of Mutual Funds in India are as follows: Association of Mutual Funds endeavors to maintain high standards in all fields of operation within the industry.
    • Association of Mutual Funds maintains an interaction with Securities and Exchange Board of India, and functions in accordance with the guidelines established by SEBI (Securities and Exchange Board of India).
    • Association of Mutual Funds in India takes up all India awareness program on behalf of the investors. This is done to facilitate proper comprehension of the concept and functioning of Mutual Funds.
    • At last but not the least association of mutual fund of India also circulate information related to Mutual Fund Industry.
  • 8. Association of Mutual Funds in India: Sponsors
    • Some of the major sponsors of Association of Mutual Funds in India include:
    • SBI Fund Management Ltd.
    • BenchMark Asset Management Company Pvt.
    • UTI Asset Management Co Pvt. Ltd.
    • Canbank Investment Management Services Ltd.
    • Jeevan Bima Sahayog Asset Management Company Ltd.
  • 9. Types of Mutual Funds
    • Net Asset Value (NAV)
    • Open Ended Schemes
    • Close Ended Scheme
    • Equity Fund
    • Growth Fund
    • Income Fund
    • Large Cap Funds
    • Mid Cap Fund
    • Balanced Fund
  • 10. Other Types of Mutual Funds
    • Money Market Funds
    • Leveraged Funds
    • Index Funds
    • Hedge Funds
    • Sector Funds
    • Regional Mutual Funds etc
  • 11.
    • THANK YOU

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