In this ppt i have included Knowing the Basics, How do mutual funds work?, History of Indian Mutual Fund, Types of Mutual Funds, Myths and Facts of Mutual Fund

1. INVESTMENT
ANALYSIS
AND
PORTFOLIO
MANAGEMENT
MUTUAL
FUNDS
What beginners need to know
AKASH GHANATE
2018BBA01

2. POINTS TO BE
COVERED
Key
points
- Knowing the Basics
- How do mutual funds work?
- History of Indian Mutual Fund,
- Types of Mutual Funds
- Myths anf Facts of Mutual Fund

3. KNOWING
THE BASICS
What is a mutual fund?
A mutual fund is a financial institution that
pools money from many investors and
invests the money in securities such as
stocks, bonds, and short-term debt.

4. HOW DO
MUTUAL
FUNDS
WORK?

5. Mutual funds pool money from
the investing public and use
that money to buy other
securities, usually stocks and
bonds. The value of the mutual
fund company depends on the
performance of the securities
it decides to buy. So, when
you buy a unit or share of a
mutual fund, you are buying
the performance of its
portfolio or, more precisely, a
part of the portfolio's value.

6. HISTORY OF THE INDIAN MUTUAL
FUND INDUSTRY
First Phase – 1964-87
Second Phase – 1987-1993 (Entry of Public Sector Funds)
Third Phase – 1993-2003 (Entry of Private Sector Funds)
Fourth Phase – since February 2003
The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India, at the initiative of the Government of India and Reserve Bank.
The history of mutual funds in India can be broadly divided into four distinct
phases:

7. FIRST PHASE – 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act Parliament. It
was set up by the Reserve Bank of India and functioned under the
Regulatory and administrative control of the Reserve Bank of India.
The first scheme launched by UTI was Unit Scheme 1964. At the end of
1988 UTI had Rs.6,700 crores of assets under management.

8. SECOND PHASE – 1987-1993 (ENTRY OF
PUBLIC SECTOR FUNDS)
1987 marked the entry of non- UTI, public sector mutual funds set up public
sector banks and life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC).
SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987.

9. THIRD PHASE – 1993-2003 (ENTRY OF
PRIVATE SECTOR FUNDS)
With the entry of private sector funds in 1993, a new era started
in the Indian mutual fund industry, giving the Indian investors a
wider choice of fund families.

10. FOURTH PHASE – SINCE FEBRUARY 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
divided into two separate entities.
One is the Specified Undertaking of the Unit Trust of India with assets under
management of Rs.29,835 crores as at the end of January 2003.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations.

11. TYPES
OF
MUTUAL FUNDS

12. Schemes according to Maturity
Period
A mutual fund scheme can be classified into open-ended
scheme or close-ended scheme depending on its maturity
period.
Open-ended Fund Close-ended Fund
An open-ended Mutual
fund is one that is
available for subscription
and
repurchase on a
continuous basis. These
Funds do not have a fixed
maturity period.
A close-ended Mutual
fund has a stipulated
maturity period e.g.
5-7
years. The fund is
open for subscription
only during a
specified period
at the time of launch
of the scheme.

13. Fund according to Investment Objective
A scheme can also be classified as growth fund, income
fund, or balanced fund considering its investment objective.
Equity
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.

14. Debt
The aim of income funds
is to provide regular and
steady income to
investors.
Such funds are less risky compared to
equity schemes
Such schemes generally invest in fixed
income securities such as bonds, corporate
debentures, Government securities and money
market instruments.
Balanced Fund
The aim of balanced funds is to provide both
growth and regular income as such schemes
invest both in equities and fixed income
securities
in the proportion indicated in their offer
documents.
These are appropriate for investors looking
for moderate growth.

15. Myths about Mutual Funds
Mutual Funds invest only in shares.
Mutual Funds are prone to very high risks/actively traded.
Mutual Funds are very new in the financial market.
Mutual Funds are not reliable and people rarely invest in
them.
The good thing about Mutual Funds is that you don’t have to
pay attention to them.

16. Facts about Mutual Funds
Equity Instruments like shares are only a part of the securities
held by mutual funds. Mutual funds also invest in debt securities
which are relatively much safer.
Mutual Funds are there in India since 1964. Mutual Funds market
has evolved in U.S.A and is there for the last 60 years.
Mutual Funds are the best solution for people who want to
manage risks and get good returns.
Liquidity: Investors may be unable to sell shares directly, easily
and quickly. When they invest in mutual funds, they can cash their
investment any time by selling the units to the fund if it is open-
ended and get the intrinsic value. Investors can sell the units in
the market if it is closedended fund.

17. State Bank of India mutual fund
ICICI prudential mutual fund
TATA mutual fund
HDFC mutual fund
Birla sun life mutual fund
Reliance mutual fund
Kotak Mahindra mutual fund etc..
VARIOUS
MUTUAL
FUNDS
IN INDIA

18. References
moneycontol.in
investopedia.com
wikipedia.org

19. THANK
YOU
-AKASH GHANATE