MUTUAL FUNDS

PRESENTED BY:
•Dering Naben
•Aditi Thakur
•Harshita Sehgal
•Devi Kumari
•Sakshi Sharma
•Ekta Uniyal
Executive Summary
Concept – Mutual Fund
 What is Mutual Fund ?
 History
 Structure of Mutual Fund
 Terminologies
 Typ...
What is Mutual Fund?
A mutual fund is a professionally managed
type of collective investment scheme that
pools money from ...
Example:
If one has Rs.1000 to invest, it may not
fetch very much on its own. But, when it is
pooled with Rs.1000 each fro...
History

•
•
•


•
•

First Phase – 1964-87
UTI was established in 1963
Unit scheme 1964 : The first and the largest sch...
Continued---
•
•

Fourth Phase – since February 2003
SEBI regulation for mutual funds
Dividends exempted from income tax ...
Structure Of Mutual Fund
Types Of Mutual Fund
Schemes

Structure

Investment By
Objective
Income Fund

Open Ended
Growth Fund
Close Ended

Balance ...
Continued---

By Structure





By Investment Objective







Open-Ended – anytime enter/exit
Close-Ended Scheme...
Why Mutual Funds?
Diversification

No Entry Load
Tax Benefit
Professional Management
Affordability
Transparency
Regulation...
De-merits : Mutual Funds






Exit load
No control over costs
No tailor-made portfolio
No assured Returns
Management...
How To Invest In Mutual
Funds?









Identify your Investment needs
Choose the right mutual fund
Select the idea...
Why Invest?
Human Life Cycle
Phase I

Phase II

Phase III

Child’s Marriage
Child’s Education
Housing
Child birth
Marriage...
Start Investing Early
Mr. A

Mr. B

Age 25 years

Age 25 years

Begins investing at 25

Begins investing at 35

Invests Rs...
Who has more?
Is it Mr. A, who invested Rs. 20,000 for 35 years?
OR
Is it Mr. B, who invested Rs. 25,000 for 25 years?
200...
MUTUAL FUND DATA FOR THE MONTH
ENDED - AUG 31 , 2012 ( IN CRORES)

Category

No. of new
schemes
launched
during the
month
...
Buying Mutual Funds


Contacting the Asset Management Company directly





Agents/Brokers






Locate one on AMFI...
Terminologies
o

o

o

o
o

AMC- Asset Management company
SEBI- Securities Exchange Board Of
India
UTI- Unit Trust Of Indi...
Disclaimer
Mutual fund investments are subject to
market risks. Please read the offer
document carefully before taking an
...
HAPPY
INVESTIN
G
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Mutual Funds

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Mutual Funds

  1. 1. MUTUAL FUNDS PRESENTED BY: •Dering Naben •Aditi Thakur •Harshita Sehgal •Devi Kumari •Sakshi Sharma •Ekta Uniyal
  2. 2. Executive Summary Concept – Mutual Fund  What is Mutual Fund ?  History  Structure of Mutual Fund  Terminologies  Types of Mutual Fund  Benefits  Drawbacks How and Why to invest in Mutual Fund? Latest Data Terminologies Disclaimer
  3. 3. What is Mutual Fund? A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests in stocks, bonds, short-term money market instruments and other securities.
  4. 4. Example: If one has Rs.1000 to invest, it may not fetch very much on its own. But, when it is pooled with Rs.1000 each from a lot of other people, then, one could Create a Big Fund large enough to invest in various shares and debentures. This is called Mutual funds.
  5. 5. History  • • •  • • First Phase – 1964-87 UTI was established in 1963 Unit scheme 1964 : The first and the largest scheme ULIP : launched in 1971 Second Phase-1987-1993 (Entry of Public Sector Funds) Entry of public sector mutual funds First Public sector mutual fund: State bank of India in 1987  Third Phase-1993-2003(Entry of Private Sector Funds) • Emergence of private funds
  6. 6. Continued--- • • Fourth Phase – since February 2003 SEBI regulation for mutual funds Dividends exempted from income tax from 1999
  7. 7. Structure Of Mutual Fund
  8. 8. Types Of Mutual Fund Schemes Structure Investment By Objective Income Fund Open Ended Growth Fund Close Ended Balance Fund Taxation Fund Money Market Fund
  9. 9. Continued--- By Structure    By Investment Objective      Open-Ended – anytime enter/exit Close-Ended Schemes – listed on exchange, redemption after period of scheme is over. Equity (Growth) – only in Stocks – Long Term (3 years or more) Debt (Income) – only in Fixed Income Securities (3-10 months) Liquid/Money Market – Short-term Money Market (Govt.) Balanced/Hybrid – Stocks + Fixed Income Securities (1-3 years) Other Schemes   Tax Saving Schemes Special Schemes  ULIP
  10. 10. Why Mutual Funds? Diversification No Entry Load Tax Benefit Professional Management Affordability Transparency Regulations
  11. 11. De-merits : Mutual Funds      Exit load No control over costs No tailor-made portfolio No assured Returns Management Risk
  12. 12. How To Invest In Mutual Funds?        Identify your Investment needs Choose the right mutual fund Select the ideal mix of schemes Invest regularly Keep your taxes in mind Start early Get in touch with your mutual fund or your advisor and start investing
  13. 13. Why Invest? Human Life Cycle Phase I Phase II Phase III Child’s Marriage Child’s Education Housing Child birth Marriage 38 yrs 22 yrs 10- 20 yrs Earning Years Education Age- 22 yrs Post Retirement Years Age- 60 yrs
  14. 14. Start Investing Early Mr. A Mr. B Age 25 years Age 25 years Begins investing at 25 Begins investing at 35 Invests Rs. 20,000 @5% p.a Invests Rs. 25,000 @5% till the till the age of 60 i.e. for 35 yrs age of 60 i.e. for 25 yrs Redeems on his retirement at Redeems on his retirement at 60 60
  15. 15. Who has more? Is it Mr. A, who invested Rs. 20,000 for 35 years? OR Is it Mr. B, who invested Rs. 25,000 for 25 years? 2000000 Earnings at the age of 60 1500000 1000000 500000 0 Mr.A Mr.B
  16. 16. MUTUAL FUND DATA FOR THE MONTH ENDED - AUG 31 , 2012 ( IN CRORES) Category No. of new schemes launched during the month Sales New Redemption Existing schemes Total Total as on Aug 31 , 2012 as on Jul 31 , 2012 Inflow/ Outflow schemes B Bank Sponsored 0 0 113605 113605 110618 0 0 0 C Institutions 0 0 3047 3047 2254 0 0 0 Private Sector & Joint Venture : Indian 503 236747 237250 232666 0 0 0 Predominantly Indian 15 1129 248620 249749 241233 0 0 0 Predominantly Foreign D 9 0 0 20533 20533 19020 0 0 0 Grand Total (B+C+D) 24 1632 622552 624184 605791 0R 0 0
  17. 17. Buying Mutual Funds  Contacting the Asset Management Company directly    Agents/Brokers    Locate one on AMFI site Financial planners   Web Site Request for agent Bajaj Capital etc. Insurance agents Banks  Net-Banking Phone-Banking  ATMs   Online Trading Account   ICICI Direct Motilal Oswal, Indiabulls- Send agents
  18. 18. Terminologies o o o o o AMC- Asset Management company SEBI- Securities Exchange Board Of India UTI- Unit Trust Of India ULIP- Unit Linked Insurance plan AMFI- Association of Mutual funds In India
  19. 19. Disclaimer Mutual fund investments are subject to market risks. Please read the offer document carefully before taking an investment decision.
  20. 20. HAPPY INVESTIN G

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