mutual funds,bonds ,funds

1. ASSIGNMENT ON
MUTUAL FUNDS
SUBMITTED BY:AMIT KUMAR BHANJ
DEEPA SHARMA
DIVESH SHARMA
GAGANPREET KAUR

2. MUTUAL FUNDS
A mutual fund is a common pool of money into
which investors place their contributions that are to
be invested in different types of securities in
accordance with the stated objective.

3. TYPES OF MUTUAL FUNDS
Classified under five broad categories:-




According
According
According
According
to ownership.
to the scheme of operation.
to portfolio.
to locations

4. According to ownership.

Public Sector mutual funds:-
Public Sector Mutual Fund means the Mutual Fund
registered with and regulated by SEBI where the
Government of India, its financial institutions and public
sector banks holds/hold individually or collectively more
than 50 per cent of equity/shares in the Asset
Management Company of that Mutual Fund.

5. SBI-MUTUAL FUNDS
•The objective of the scheme is to provide the investor
with long term capital appreciation/dividends along
with the liquidity of an open-ended scheme.
•The
scheme will invest in a diversified portfolio of
equities of high growth companies.
•Thereafter
a number of public sector organisations
like IND Bank-MF,CAN Bank-MF,BOI Bank-MF,PNB
Bank-MF,LIC-MF etc have joined operations in MF
business.

6. 
Private Sector Mutual Funds
The Govt. of India allowed the private sector
corporates to join the Mutual Fund Industry. A
number of private sector companies approached
SEBI for permission to set up Private Mutual
Funds.

7. ACCORDING TO SCHEME
OF OPERATIONS

Open-Ended Funds
1. It offers units for sale without specifying any
duration
for redemption.
2. No Fixed Maturity period.
3. Subscription and Redemption can be done at any
time.
4. These are not listed
For eg:- ULIP, Dhanraksha & Dhanvridhi of LIC Mutual
fund

8. ULIP
(unit linked insurance plans)
Top
up facilities
Fund switch
Liquidity
Riders
Increase or decrease the level of protection.
Cover continuance option.

9. DHANRAKSHA
Death
Benefits.
No Survival Benefits.
Surrender Benefit.
Tax Benefits.

10. DHANVRIDHI
Guaranteed
returns.
Limited Premium Payment.
Riders.
Rebate.
Survival Benefits.

11. Close
ended Funds
1.Period of Maturity is specified.
2.Subscription is only at the time of initial
issue.
3.These are listed.
For eg:- Dhanshree and Dhansamaridhi of
LIC Mutual Fund, Canshare of Canara
Bank , Ind Jyoti and Swaran jyoti of Indian
Bank.

12. Interval
1.
2.
3.
4.
Funds
Kept open for specific interval and after
that operates as a close ended.
Recently permitted by SEBI.
Open for sale or repurchase at fixed
predetermined intervals (disclosed in offer
document).
Units are also traded in stock exchange.

13. ACCORDING TO PORTFOLIO
Income
Funds:>Aims at providing maximum current
return.
>Investments are made in stocks
yielding high returns.
>Income is distributed periodically.
>Capital appreciation is of small
importance.

14. Growth
Funds:-
>Aims at providing capital appreciation.
>Investment in growth oriented securities (
long run).
>Concentrate on value appreciation of
securities and not on regularity of income.

15. Balanced
Funds:-
>Spend both on common stock and
preferred stock.
>Ensure both appreciation in stock as well
as regular income (interest and dividend).
>Also known as conservative Funds.

16. Bond
Funds:-
>Employ resources in Bonds.
>Ensure Fixed and Regular Income.
>Some Funds are available at lower than
face value.( net income on Face value)

17. Money
Market Mutual Funds:-
>Investments exclusively in Money Market
Instruments.
>Instruments Include treasury bills , govt
securities with an unexpired maturity of up
to 1 yr, commercial paper , commercial
bills & certificates of Deposits.

18. Taxation
Funds:-
>Investors get some concession in income
tax.
>lock up period.(keeping money with fund)
>Distribute the Profit among Unit Holders.
>Amount collected is used to acquire
shares and interest bearing securities.

19. ACCORDING TO LOCATION
Domestic
Funds:>Mobilise savings of people within the
country where investments are made
Off-Shore
Funds:>Mobilise Funds in countries other than
where investment are to be made.
> Attracts Foreign savings.

20. PERFORMANCE OF MUTUAL
FUNDS IN
THE MARKET
PASSING THROUGH CRITICAL PHASE
 “LIVING DEAD” IN STOCK MARKETS
 LOST INVESTOR’S CONFIDENCE
 UTTER FAILURE IN INDIA


21. MUTUAL FUND MONITOR
Particulars
Growth Income Balanced Total
No. of Schemes
98
28
32
158
Schemes giving -ve
returns on annualised basis
Schemes giving single
digit annualised returns
Schemes giving double
digit annualised returns
Source: Business Today
50
01
02
53
31
10
12
53
17
17
18
52

22. PRODUCT DESIGN
 DID
LITTLE TO INNOVATE WITH
INNOVATION
 75% SCHEMES CLOSE END WITH
POOR RETURNS
 INNOVATION ONLY IN OPEN END
SCHEMEDS
 TIME TO DESIGN SECTOR, LOCATION
BASED MFs

23. FUND MANAGEMENT
 NON-QUALIFIED,
UNPROFESSIONAL
FUND MANAGERS
 LOOK
MFs AS ANOTHER EQUITY
PRODUCT
 IGNORE
ASSET
ALLOCATION,
PORTFOLIO, TURNOVER & COST
 NO QICK ASSET REALLOCATION ON TIME
 DON’T INCLUDE HIGH LIQUID BLUE CHIP
STOCKS
 NOT
BALANCING
RISK
RETURN
EXPECTATION OF INVESTORS

24.  Mutual
Funds are subject to market
risks and there is no assurance and
no guarantee that the scheme
objective will be achieved. As with
investment in any securities, the NAV
of the units issued under the
schemes may go up or down
depending on the factors and forces
affecting the securities markets.