precise descirption of kotak mutul funds

1. MUTUAL FUND
Presented By: Nisha Chauhan

2. Topics Covered
• Concept
• Organization of a Mutual Fund
• Advantages of Mutual Funds
• Types of Mutual Fund Schemes
• Frequently Used Terms

3. Concept
• A Mutual Fund is a trust that pools the savings of a number of
investors who share a common financial goal.
• The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities.
• The income earned through these investments and the capital
appreciation realized are shared by its unit holders in proportion to
the number of units owned by them.
• Thus a Mutual Fund is the most suitable investment for the common
man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost.

4. Mutual Fund Operation
Flow Chart

5. Organisation of a Mutual Fund

6. Advantages of Mutual Funds
 Instant Diversification
 Reduce Transaction Costs
 Divisibility
 Liquidity

7. Disadvantages of Mutual Fund Investing
• Lower-than-market performance
• Costs

8. Buying a Mutual Fund
• Step 1: Determine your risk preferences
• Step 2: Determine your asset allocation
• Step 3: Identify family of funds that meet your
objectives
• Step 4: Evaluate the funds.

9. Making the Purchase
• Buying through a broker
• Buying directly from the mutual fund.

10. Types of Schemes
 By- Open Ended Schemes
 Close Ended Schemes
 Interval Schemes
 By- Investment Objectives
 Growth Schemes
 Income Schemes
 Balance Schemes
 Money Market Schemes
 By-Other Schemes
 Tax Saving Schemes
 By-Special Schemes
 Index Schemes
 Sector Specific Schemes

11. Frequently Used Terms
• Net Asset Value (NAV)
Net Asset Value is the market value of the assets of the
scheme minus its liabilities. The per unit NAV is the net asset
value of the scheme divided by the number of units
outstanding on the Valuation Date.
• Sale Price
Is the price you pay when you invest in a scheme. Also called
Offer Price. It may include a sales load.
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12. THANK YOU!!