Mutual Funds Presentation


Published on

this is one of my presentation related to debt funds,.

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Mutual Funds Presentation

  2. 2. Mutual Funds In India (1964 - 2000) o Started with the commencement of UTI in JULY 1964. o Monopoly of UTI broke in 1987 owing to the entry of SBI along with LIC & GIC later. o Fast growth rate , of about 27%, rising from 25 crores to 90000 crores. o Year 1999 is considered as a milestone year for mutual funds industry because of entry of private players.
  3. 3.  An investment pool, such as a mutual fund or exchange-traded fund, in which core holdings are fixed income investments.  A debt fund may invest in short-term or long-term bonds, securitized products, money market instruments or floating rate debt.  The fee ratios on debt funds are lower, on average, than equity funds because the overall management costs are lower.
  4. 4.  In order to ensure regular income to investors debt funds distribute large fraction of there surplus to investors.  The NAVs of such funds are affected because of change in interest rates in the country.  Returns through interest earnings and trading of securities in secondary market .
  5. 5. There are several reasons why one should look at debt as an asset class to invest in. Some of the main reasons are: Need to balance risk and return - The Risk/Return Tradeoff . Need to diversify - Portfolio Diversification and Asset Allocation. Need for Tax Planning.
  6. 6. Diversified Debt funds Fix Term Plan Series Focused Debt Funds Assured High Yield Return Funds Debt Funds
  7. 7. Based on Different Investment Objectives, there can be following types of Debt Funds : :- DIVERSIFIED DEBT FUNDS :- Focused Debt Funds. :- High Yield Debt Funds. :- Assured Return Funds. :- Fixed Term Plan Series.
  8. 8.  Invest in all securities issued by entities belonging to all sectors of market.  Investments are properly diversified into all sectors which results in risk reduction  Any loss incurred, on account of debt issuer, is shared by all investors further reducing the risk.
  9. 9.  Narrow focus funds more confined to investments in certain selected industries of specific sectors or industry or origin.  Because of there narrow orientation they are more risky as compared with diversified debt funds.
  10. 10.  These funds prefer securities issued by those issuers that are considered to be of “below investment grade”  Sole motive is to earn higher interest returns from these issuers.  More volatile and bear higher default risk.  Although they may earn at times higher returns from investors.
  11. 11.  Funds that come with a locking period and offer assurance of annual return to investors during the lock-in period.  It provides low risk & safe guard the interest of the investors.  SEBI permits assured returns to those funds who has adequate net worth to guarantee returns in the future.
  12. 12.  Usually are closed ended schemes having short term maturity periods.  Offers a series of plans and issue units to investors at regular intervals.  Not listed in exchanges.  Main objective is to gratify investors by generating expected returns in short duration of time.
  13. 13.  Offers all benefits associated with mutual funds in general. Like : Transparency in operation. : Professional management. : Diversification. : Liquidity. : Convenience & Low cost.  They are towards lower ends of risk spectrum.  Provide an alternative for diversification of one’s portfolio.  More predictable performance in comparison with equity as an asset class.  Offers tax benefits.
  14. 14. Dividend/ Short term capital Long term capital Maximum amount Lock-in-period interest gains (holding period gains (holding period that can be invested <1 year) >=1 year) Debt mutual funds Tax free in hands of Taxable as par relevant 10% without cost No limit Not applicable investors tax slab inflation PPF Tax free Not applicable Not applicable Rs 70000 15 years Bonds notified u/s 54 Taxable as par relevant Taxable as par relevant 20% without cost No limit 3 years EC tax slab tax slab inflation index benefit 6.5 % saving bonds Taxable as par relevant Not applicable Not applicable No limit 6 years tax slab KVP Taxable as par relevant Not applicable Not applicable No limit 2.5 years tax slab Bank FD Taxable as par relevant Not applicable Not applicable No limit variable tax slab NSC Taxable as par relevant Not applicable Not applicable No limit 6 years tax slab
  15. 15. Name of scheme HSBC Flexi Debt Fund Investment objective To deliver returns in the form of interest income and capital gains, along with high liquidity, commensurate with the current view on the markets & interest rate cycle, through active investment in debt & money market instruments Plan/options Regular & Institutional option Sub options Regular & Institutional :Fortnightly,Montly, Quarterly & half yearly dividend(payout /reinvestment) & growth sub option Dividends Declaration of dividends & its frequency will inter alia depend upon the distributable surplus Minimum application Regular : Rs 10000 per application amount Institutional : Rs 5,000,000 per application Minimum additional Rs 1000 & multiples of Re 1 for regular option, Rs 10000 & multiples of Rs 10000 thereafter for investment institutional option. Minimum redemption Regular Rs 1000 & multiples of Re 1 there after. amount Bench mark index CRISIL Composite Bond Fund Index Loads Entry Load : NIL Exit load :0.75% in regular option Liquidity/ ongoing Purchased /redeemed on every business day at NAV prices subscription
  16. 16. THANK YOU