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   The aim of an investor trading in the stock market    is to make more capital gain and make less loss in    the stock ...
   An Investment Vehicle that pools money    from many investors to purchase securities.   Under the mutual fund schemes...
   The mutual fund entity allows small and    individual investors to get the benefits of a    diversified portfolio.   ...
   The value of the investment is known as the    net asset value (NAV) of the scheme.   The NAV is calculated on the va...
   Young and Accumulating   Middle aged with family commitments   Retired   Institutions and high net worth individuals
According to Maturity Period •Open Ended Schemes •Close Ended SchemesAccording to Investment Objective •Equity/Growth orie...
   Open Ended Schemes    It is available for subscription & repurchases on continuous     bases. These schemes do not hav...
   Equity/Growth oriented scheme:     The main aim is to provide capital appreciation over    medium-term to long term. T...
   Balanced Fund:    The main aim is to provide both growth & regular income as    it invests in both equities & fixed in...
   Gilt fund    These funds invest in government securities only. These    securities carry no default risk. N.A.V. fluct...
   Sector- specific fund:    These are the funds which invest in securities of only those    sectors/industries as stated...
   Fund Of Funds    A "fund of funds" (FOF) is an investment strategy of holding a    portfolio of other investment funds...
   It is a plan which allows you to invest in small    amount in mutual fund on regular basis.   Investing some fixed am...
   An investor should take into consideration the    risk & the yield factor after the adjustment of tax    on various in...
   It suits well with both the short-term as well    as long-term investment plans.   Beneficial for your retirement, ch...
Mutual funds
Mutual funds
Mutual funds
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Mutual funds

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a small details related to mutual funds

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Transcript of "Mutual funds"

  1. 1.  The aim of an investor trading in the stock market is to make more capital gain and make less loss in the stock market. The biggest challenge to an investor for achieving this aim is to analyze the trends of share prices of the company in the stock market. The stock market is so volatile that some investors make fortunes while some suffers huge losses. Thus, An investor finds trading in such market very risky. They require a guidance for dealing in this market or require such mechanism that can help in reducing risk in investment.
  2. 2.  An Investment Vehicle that pools money from many investors to purchase securities. Under the mutual fund schemes, a large number of investors come together and pool the money. This sum is then invested by professional fund managers according to the investment objective of the scheme.
  3. 3.  The mutual fund entity allows small and individual investors to get the benefits of a diversified portfolio. The investor who pools the money in mutual funds are called as unit holders. The value of the investment is known as the net asset value (NAV) of the scheme.
  4. 4.  The value of the investment is known as the net asset value (NAV) of the scheme. The NAV is calculated on the value of the holdings of the Scheme. Investors can redeem and buy additional units depending upon the specific nature of the fund and these transactions take place at values related to the NAV of the scheme.
  5. 5.  Young and Accumulating Middle aged with family commitments Retired Institutions and high net worth individuals
  6. 6. According to Maturity Period •Open Ended Schemes •Close Ended SchemesAccording to Investment Objective •Equity/Growth oriented Scheme •Income/Debt oriented scheme •Balanced Fund •Money Market or Liquid fund •Gilt Fund •Index fundsOther Schemes •Sector Specific fund •Tax saving schemes and ELSS (Equity Linked Saving Schemes •Fund of Funds •ETFs
  7. 7.  Open Ended Schemes It is available for subscription & repurchases on continuous bases. These schemes do not have a fixed maturity period. It is highly liquid in nature. Close-ended schemes A close-ended scheme has a fixed maturity period. For an e.g. 5-7 years. It is open for subscription at the time of it’s launch.
  8. 8.  Equity/Growth oriented scheme: The main aim is to provide capital appreciation over medium-term to long term. The schemes mainly invest in equities. They carry high risk. This scheme provides various options like dividend or capital appreciation, etc. Income/Debt oriented scheme: The main aim of this scheme is to provide regular and steady flow of income. Such schemes invest in fixed income securities like bonds, debentures, government securities, etc. These are not affected by the fluctuations in the equity market.
  9. 9.  Balanced Fund: The main aim is to provide both growth & regular income as it invests in both equities & fixed income securities in the proportion stated in the offer document. This scheme is appropriate for those investors who are looking for moderate growth. Money market or liquid fund: These schemes invest in safer short-term instruments such as treasury bills, commercial paper, certificate of deposits, government securities, etc. Returns fluctuates less as compared to other schemes.
  10. 10.  Gilt fund These funds invest in government securities only. These securities carry no default risk. N.A.V. fluctuates due to the interest rates & other economic factors. Index funds These schemes invest in the securities in the same weight age including of an Index. N.A.V. of such scheme would rise and fall as per the rise and fall in the Index, though not exactly by the same percentage.
  11. 11.  Sector- specific fund: These are the funds which invest in securities of only those sectors/industries as stated in the offer document. The returns depend upon the performance of the respective sector/industry. They are more risky but may provide higher returns. Tax saving schemes & ELSS: These schemes offers tax rebate to the investors under the provision of the Income Tax Act, 1961. These schemes are growth oriented and invest mainly in equities.
  12. 12.  Fund Of Funds A "fund of funds" (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. The target objective of the scheme is met through the selection of several other schemes in the portfolio with the desired weights. ETFs ETFs are a type of Mutual Funds that tracks an index (NIFTY/SENSEX), or a commodity (Gold) or a basket of assets like an index fund. However unlike regular Mutual Funds, ETF are listed on exchange & trades like a stock, thus experiencing price changes throughout the day as it is bought & sold.
  13. 13.  It is a plan which allows you to invest in small amount in mutual fund on regular basis. Investing some fixed amount every month or quarter for the purchase of additional units of the scheme at N.A.V. based prices.
  14. 14.  An investor should take into consideration the risk & the yield factor after the adjustment of tax on various instruments while taking decisions. Thus the various types can be:
  15. 15.  It suits well with both the short-term as well as long-term investment plans. Beneficial for your retirement, child’s education/marriage plan, etc. For immediate needs like repayment of loan, down payment, etc. It reduces the risk & gives optimum returns. It provides tax benefits.

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