Seminar onMUTUAL FUND AND ITS TYPES Presented by: Aniket and Girish M.B.A. Sem. 3ed
FOLLOWING ARE THE CONTENTS OF MY PRESENTATION• Meaning of Mutual Fund•Types of Mutual Funds•Flow chart of Mutual Fund
WHAT IS MUTUAL FUND?• A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities.
TYPES OF MUTUAL FUNDs Mutual Funds By Maturity By Investment Period ObjectiveOpen Close Equity Balance Gilt fund fundended ended Income Money Index market fund
Schemes according to Maturity PeriodA mutual fund scheme can be classified into open-endedscheme or close-ended scheme depending on its maturityperiod. Open-ended FundAn open-ended Mutual fund is one that is available for subscription andrepurchase on a continuous basis. These Funds do not have a fixedmaturity period. close-ended FundA close-ended Mutual fund has a stipulated maturity period e.g. 5-7years. The fund is open for subscription only during a specified periodat the time of launch of the scheme.
Fund according to Investment ObjectiveA scheme can also be classified as growth fund, incomefund, or balanced fund considering its investment objective. Growth / Equity Oriented Scheme The aim of growth funds is to provide capital appreciation over the medium to long- term. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc.
Income / Debt Oriented SchemeThe aim of income funds is to provide regular andsteady income to investors.Such schemes generally invest in fixedincome securities such as bonds, corporatedebentures, Government securities andmoney market instruments.Such funds are less risky compared to equityschemes
Balanced FundThe aim of balanced funds is to provide bothgrowth and regular income as such schemesinvest both in equities and fixed income securitiesin the proportion indicated in their offerdocuments.These are appropriate for investors looking formoderate growth.
Money MarketThese funds are also income funds and their aimis to provide easy liquidity, preservation of capitaland moderate income.These schemes invest exclusively in safer short-term instruments such as treasury bills,commercial paper and government securities,etc.These funds are appropriate for corporate andindividual investors as a means to park theirsurplus funds for short periods.
Various Mutual Funds in India State Bank of India mutual fund TATA mutual fund HDFC mutual fund Birla sun life mutual fund Reliance mutual fund ICICI prudential mutual fund Kotak Mahindra mutual fund etc..
The flow chart below describes theworking of a mutual fund: