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Mutual funds

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    Mutual funds Mutual funds Presentation Transcript

    • Jump Start
      Financial Services & Mutual Funds
    • Why Financial Services?
      Financial Services is one of the fastest growing sectors today with some of the best career opportunities
    • Why this seminar?
      • You are on the threshold of your career with many choices of jobs. We shall help you take informed decisions, so you can have a “jump start”
    • Agenda: Next 90 minutes
      • Financial Services – An overview
      • Job Profiles
      • Skill Sets required
      • How to get those skills
      • Discussions
    • Money or……..?
      In business what is more important than money or cash?
    • Financial Services
      The financial services incorporates organisations that deal with the management of money. It consists of an intricate network of financial institutions and markets.
    • Financial Services….
      The industry plays a vital role in the functioning of the economy, facilitating the flow of fundsbetween savers and investors.
    • Numbers???
    • Numbers???
    • Numbers
      41
      6880
      4,740,137 Crores
    • Opportunities unlimited
      “The financial services industry is full of opportunities and varied areas to work in.
    • MUTUAL FUND
      Concept, Organisation Structure, Advantages and Types.
    • Phase I
      Phase II
      Phase III
      Child’s Marriage
      Child’s Education
      Housing
      Child birth
      Marriage
      38 yrs
      10- 20 yrs
      22 yrs
      Earning Years
      Post Retirement Years
      Education
      Age- 22 yrs
      Age- 60 yrs
      Human Life Cycle
    • Earnings
      60
      40
      27
      22
      Consumption
      Retirement
      Middle Age
      Young Married
      Young Independent
      Savings
      All individuals have a finite period to save for their investment goals
      Individual Investor: Life Stages
    • Value of Money over time
      100,000
      79,599
      78,353
      62,368
      48,102
      38,288
      37,689
      30,000
      Today
      5 years
      15 years
      20 years
      Today
      5 years
      15 years
      20 years
      Investors need to beat inflation
      Impact of inflation on monthly expenses of Rs. 30,000 today
      Value of Rs. 100,000 over time
      At inflation of 5%
    • OPTIONS FOR INVESTING
      Deposit in Bank – SB, RD, FD’s, Locker ;)
      Loan a Friend/Relative on Interest
      Property Investments
      Invest in Bullion - Gold, Silver..
      Investment in Capital Markets - - Direct - Equity Share Markets - Debt & Bonds Market - Indirect - Mutual Funds
    • Pools the savings of a number of investors who share a common financial goal.
    • The money thus collected is then invested in capital market instrumentssuch as shares, debentures and other securities.
    • The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them.
    • Mutual Fund Operation
    • How Mutual Fund works?A vehicle for investing in portfolio of stocks and bonds
    • Structure of Mutual Fund
      SEBI
    • Advantages of Mutual Funds
      Professional Management
      Diversification
      Convenient Administration
      Return potential
      Low cost
      Liquidity
    • Advantages of Mutual Funds
      Transparency
      Flexibility
      Choice of schemes
      Well regulated
      Tax benefits
    • How do I make money from a mutual fund?
      1. Capital appreciation:
      As the value of securities in the fund increases, the fund's unit price will also increase. You can make a profit by selling the units at a price higher than at which you bought
      2. Coupon / Dividend Income:
      Fund will earn interest income from the bonds it holds or will have dividend income from the shares
      3. Income Distribution:
      The fund passes on the profits it has earned in the form of dividends
    • Terminologies Demystified…
      • Asset Allocation
      • Fund Manager
      • Fund Offer Document
      • Dividend
      • Growth
    • Terminologies Contd…
      NAV
      Per unit NAV=Net Asset Value
      No. of Units Outstanding on Valuation date
      Entry Load/Front-End Load (0-2.25%)
      Exit Load/Back- End Load (0.25-2.25%)
      Sale Price/ Offer Price
      Re-Purchase Price/ Bid Price
      Redemption Price
    • Investment strategies
      Systematic Investment Plan (SIP)
      Invest a fixed sum every month. (6 months to 10 years- through post-dated cheques or Direct Debit facilities)
      Fewer units when the share prices are high, and more units when the share prices are low. Average cost price tends to fall below the average NAV.
      Systematic Transfer Plan (STP)
      Invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund.
      Systematic Withdrawal Plan (SWP)
    • What is a Systematic Investment Plan?
      An investment plan to invest a fixed amount regularly at a specified frequency say, monthly or quarterly.
      SIP is a simple method of investing used
      across the world as a means to creating wealth
    • chopra.rajiv@icai.org
      Benefits of SIP
      • Regular
      • Investments happen every month unfailingly
      • Power Of Compounding
      • Rupee Cost Averaging
      • Forced saving
      • Helps you overpower the temptation to spend fully
      • Helps you build for the future
      • Automated
      • Completely automated process
      • No hassles of writing cheque every month
      • Light on the wallet
      • Investment amount can be so small that you do not even feel the pinch of it being directly deducted, yet the small amount is powerfully working towards your financial security
    • SIP: The Power Of Compounding
      SIP of Rs. 1000 invested per month @ 8% pa till the age of 60.
      …the sooner you start, makes a difference!
    • SIP - How Rupee Cost Averaging helps
    • chopra.rajiv@icai.org
      Equity Funds
      Diversified equity funds
      Index funds
      Opportunity funds
      Mid-cap funds
      Equity-linked savings schemes
      Sector funds like Auto, Health Care, FMCG etc
      Dividend Yield Funds
      Others (Exchange traded, Theme, Contra etc)
    • Fill Up Form
      Attach Relevant Documents
      Submit
      Financial Goals
      Evaluate Funds from various Mutual Fund Cos.
      Online
      Offline
      Mutual Fund Co. and others
      Financial Distributor
      Mutual Fund: How to buy?
      Identify ‘What to Buy’
      Banks,
      Financial Svc. Cos.,
      Brokers,
      Individual Agents
    • Download Common Transaction Slip
      (Download from Mutual Fund Company’s website or get it from the branch)
      Fill-up relevant details
      (You could do partial redemption as well)
      Sign the Form
      (All applicants to the units need to sign)
      Submit
      (Submit the form to the Branch of the specific Mutual Fund Co.)
      Money into your Bank Account
      (Money gets credited to you as per the scheme-specific turnaround time)
      Choose ‘redemption’
      Mutual Fund: How to redeem?
    • Getting the job
      “Get jobs that you want not jobs that want you”
    • Thank You!
      +91-97-87- 55- 55- 44
      • training@edventures1.com
      • www.edventures1.com
    • Terminologies Demystified…
      Asset Allocation
      Diversifying investments in different assets such as stocks, bonds, real estate, cash
      in order to optimize risk.
      Fund Manager
      The individual responsible for making portfolio decision for a mutual fund, in line
      with fund’s objective.
      Fund Offer Document
      Document with investment objectives, risk factors, expenses summary, how to invest etc.
      Dividend
      Profits given to the investor from time to time.
      Growth
      Profits ploughed back into scheme. This causes the NAV to rise.
    • Terminologies Contd…
      NAV
      Market value of assets of scheme minus its liabilities.
      Per unit NAV=Net Asset Value
      No. of Units Outstanding on Valuation date
      Entry Load/Front-End Load (0-2.25%)
      The commission charged at the time of buying the fund.
      To cover costs for selling, processing
      Exit Load/Back- End Load (0.25-2.25%)
      The commission or charge paid when an investor exits from a mutual fund. Imposed to discourage withdrawals
      May reduce to zero as holding period increases.
      Sale Price/ Offer Price
      Price you pay to invest in a scheme. May include a sales load. (In this case, sale price is higher than NAV)
      Re-Purchase Price/ Bid Price
      Price at which close-ended scheme repurchases its units
      Redemption Price
      Price at which open-ended scheme
    • Investment strategies
      Systematic Investment Plan (SIP)
      Invest a fixed sum every month. (6 months to 10 years- through post-dated cheques or Direct Debit facilities)
      Fewer units when the share prices are high, and more units when the share prices are low. Average cost price tends to fall below the average NAV.
      Systematic Transfer Plan (STP)
      Invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund.
      Systematic Withdrawal Plan (SWP)