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Mutual funds

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Mutual funds Presentation Transcript

  • 1. Jump Start
    Financial Services & Mutual Funds
  • 2. Why Financial Services?
    Financial Services is one of the fastest growing sectors today with some of the best career opportunities
  • 3. 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
    • 4. Job Profiles
    • 5. Skill Sets required
    • 6. How to get those skills
    • 7. Discussions
  • Money or……..?
    In business what is more important than money or cash?
  • 8. 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.
  • 9. Financial Services….
    The industry plays a vital role in the functioning of the economy, facilitating the flow of fundsbetween savers and investors.
  • 10. Numbers???
  • 11. Numbers???
  • 12. Numbers
    41
    6880
    4,740,137 Crores
  • 13. Opportunities unlimited
    “The financial services industry is full of opportunities and varied areas to work in.
  • 14. MUTUAL FUND
    Concept, Organisation Structure, Advantages and Types.
  • 15. 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
  • 16. 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
  • 17. 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%
  • 18. 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
  • 19.
  • 20. Pools the savings of a number of investors who share a common financial goal.
  • 21. The money thus collected is then invested in capital market instrumentssuch as shares, debentures and other securities.
  • 22. 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.
  • 23. Mutual Fund Operation
  • 24. How Mutual Fund works?A vehicle for investing in portfolio of stocks and bonds
  • 25. Structure of Mutual Fund
    SEBI
  • 26.
  • 27. Advantages of Mutual Funds
    Professional Management
    Diversification
    Convenient Administration
    Return potential
    Low cost
    Liquidity
  • 28. Advantages of Mutual Funds
    Transparency
    Flexibility
    Choice of schemes
    Well regulated
    Tax benefits
  • 29. 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
  • 30. Terminologies Demystified…
    • Asset Allocation
    • 31. Fund Manager
    • 32. Fund Offer Document
    • 33. Dividend
    • 34. 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
  • 35. 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)
  • 36. 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
  • 37. chopra.rajiv@icai.org
    Benefits of SIP
    • Regular
    • 38. Investments happen every month unfailingly
    • 39. Power Of Compounding
    • 40. Rupee Cost Averaging
    • 41. Forced saving
    • 42. Helps you overpower the temptation to spend fully
    • 43. Helps you build for the future
    • 44. Automated
    • 45. Completely automated process
    • 46. No hassles of writing cheque every month
    • 47. Light on the wallet
    • 48. 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!
  • 49. SIP - How Rupee Cost Averaging helps
  • 50. 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)
  • 51. 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
  • 52. 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?
  • 53. Getting the job
    “Get jobs that you want not jobs that want you”
  • 54. Thank You!
    +91-97-87- 55- 55- 44
    • training@edventures1.com
    • 55. 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.
  • 56. 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
  • 57. 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)