Mutual fund investment
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Mutual fund investment

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Mutual fund investment Mutual fund investment Presentation Transcript

  • MUTUAL FUND INVESTMENT
    By..
    Imtiaz
  • Introduction
    • Concept by UTI in 1963
    • Growth of Mutual Funds In Phases
    • First Phase – 1964-87
    • Second Phase – 1987-1993 (Entry of Public Sector)
    • Third Phase – 1993-2003 (Entry of Private Sector Funds)
    • Fourth Phase – since February 2003
  • Concept Of Mutual Funds
  • Structure In India
    Mutual Funds in India follow a 3-tier structure:
    Sponsor: who thinks of starting a mutual fund
    Public Trust: created by sponsors
    Trustee: the people authorized to act on behalf of the Trust.
  • Asset Management Company
    • Trustees appoint the Asset Management Company (AMC), to manage investor’s money
    • The AMC’s Board of Directors must have at least 50% of Directors who are independent directors
    • Appointments of intermediaries like independent financial advisors (IFAs), national and regional distributors, banks, etc. is also done by the AMC.
    • Two important terms:
    Compilance officer
    Offer document
  • Distribution channels for mutual funds
  • Types Of Funds
  • Equity Funds
    Equity Funds are defined as those funds which have at least 65% of their Average Weekly Net Assets invested in Indian Equities
    Safer types of Equity Funds include Index Funds and diversified Large Cap Funds, while the riskier varieties are the Sector Funds.
    On the basis of market capitalisation these can be classified as:
    Large Cap Funds
    Mid Cap Funds
    Small Cap Funds
    On the basis of investment strategy:
    Index Funds
    Infrastructure Fund
    Power Sector Fund
    Quant Fund
    Arbitrage Fund
    Natural Resources Fund
  • ELSS: Equity Linked Savings Schemes (ELSS) are equity schemes, where investors get tax benefit upto Rs. 1 Lakh under section 80C of the Income Tax Act.
    Entry Load: First expense that an investor has to incur is by way of Entry Load. This is charged to meet the selling and distribution expenses of the scheme
  • Debt Funds
    Debt funds are funds which invest money in debt instruments such as short and long term bonds, government securities, t-bills, corporate paper, commercial paper, call money
    Debt mutual fund schemes are:
    Fixed Maturity Plans
    Fixed Maturity Plans
    Capital Protection Funds
    Gilt Funds
    Balanced Funds
    MIP
    Child Benefit Plans
  • Liquid Funds
    Liquid Funds attract a lot of institutional and High Networth Individuals (HNI) money.
    It accounts for approximately 40% of industry AUM. Less risky and better returns than a bank current account, are the two plus points of Liquid Funds.
    Money Market instruments have maturities not exceeding 1 year. Thus such schemes normally do not carry any interest rate risk.
    Liquid Funds do not carry Entry/ Exit Loads.
    Other recurring expenses associated with Liquid Schemes are also kept to a bare minimum
     
  • Risk & Return
  • Advantages Of Mutual Funds
  • Disadvantages Of Mutual Funds
    Professional Management
    Costs
    Dilution
    Taxes
  • THANK
    YOU