1. Mutual fund(SMBA22)
Name of the students Roll no.
1. Darshit Narechania 27
2. Hiten Shah 65
3. Jay Dave 26
4. Sunil D’souza
5. Cassilda Sarrao
6. Jay Vaswani
2. A mutual fund is the trust that pools the savings of a number of
investors who share a common financial goal.
A mutual fund is just the connecting bridge or a financial
intermediary that allows a group of investors to pool their
money together with a predetermined investment objective.
The mutual fund will have a fund manager who is responsible
for investing the gathered money into specific securities (stocks
or bonds).
It gives the market returns and not assured returns.
3. Diversification
funds of many investors are pooled and
used to purchase a variety of investments
Professional management
who is the fund’s manager?
managers can change
Convenience
phone
mail
4. New/more types of funds
Few or no sales charges
Some performed better than common stock
Widespread marketing
Selection is easier
5. Dispense profits to investors
Investors expect dividend income
Investors expect price appreciation
6. Kotak Mahindra Mutual Fund
Unit Trust of India Mutual Fund
Reliance Mutual Fund
Standard Chartered Mutual Fund
Franklin Templeton India Mutual Fund
Morgan Stanley Mutual Fund India
Canbank Mutual Fund
LIC Mutual Fund
GIC Mutual Fund
ICICI Mutual Fund
7. Type of
Mutual Fund
Schemes
Special
Investment
Structure Schemes
Objective
Industry
Open Ended
Growth Funds Specific
Funds
Schemes
Close Ended Index
Income Funds
Funds Schemes
Balanced Sectoral
Interval Funds
Funds Schemes
Money Market
Funds
8. By Structure
Open-Ended – anytime enter/exit
Close-Ended Schemes – listed on exchange, redemption after period of
scheme is over.
By Investment Objective
Equity (Growth) – only in Stocks – Long Term (3 years or more)
Debt (Income) – only in Fixed Income Securities (3-10 months)
Liquid/Money Market (including gilt) – Short-term Money Market
(Govt.)
Balanced/Hybrid – Stocks + Fixed Income Securities (1-3 years)
Other Schemes
Tax Saving Schemes
Special Schemes
ULIP
9. Expert on your side: When you invest in a mutual fund, you buy into the
experience and skills of a fund manager and an army of professional analysts
Limited risk: Mutual funds are diversification in action and hence do not rely on
the performance of a single entity.
More for less: For the price of one blue chip stock for instance, you could get
yourself a number of units across a number of companies and industries when you
invest in a fund!
Easy investing: You can invest in a mutual fund with as little as Rs. 5,000. Salaried
individuals also have the option of investing in a monthly savings plan.
Convenience: You can invest directly with a fund house, or through your bank
or financial adviser, or even over the internet.
Investor protection: A mutual fund in India is registered with SEBI, which also
monitors the operations of the fund to protect your interests.
Quick access to your money: It's good to know that should you need your money
at short notice, you can usually get it in four working days.
Transparency: As an investor, you get updates on the value of your units,
information on specific investments made by the mutual fund and the fund
manager's strategy and outlook.
Low transaction costs: A mutual fund, by sheer scale of its investments is able to
carry out cost-effective brokerage transactions.
Tax benefits: Over the years, tax policies on mutual funds have been favourable to
investors and continue to be so.
10. Funds for all reasons and seasons
Professional Investment Management
Risk reduction through diversification
Convenience
Liquidity of investment
Lower transaction costs
Regulatory Protection
Relatively higher returns
12. Not a Risk Free investment avenue
Difficulty in selecting a good fund manager
Lack of awareness from the part of investor
Improper guidance
13. Returns include distributions of dividends,
distributions of capital gains, or NAV
appreciation
Return for specific holding period
Best for one year returns since does not use
present value
N um ber of N um ber of
Ending Initial
shares at end shares at beginning
price price
H olding period of period of period
return N um ber of shares Initial
at beginning of period price
14. Recordkeeping/reporting
Easy purchase and sale
Automatic reinvestment
IRS-qualified tax-sheltered retirement
Withdrawal plans
Collateral for loans
15. Fund performs poorly compared with similar funds
Perception of economic trends indicates business
cycle will smooth out soon
Fund grows too rapidly or becomes too large
Fund taken over by new manager
Investment goals become more conservative
Need cash
The Promoter of Mutual Fund is going through
financial difficulties