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Mutual Funds Investing


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A Mutual Fund is a collective investment scheme that pools the savings of a number of investors who share a common financial goal. Each scheme of a mutual fund can have different character and objectives to suit a variety of investment needs. View the presentation to know more about investing in Mutual Funds.

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Mutual Funds Investing

  1. 1. Mutual Fund Investing
  2. 2. Investment Opportunities in MF About Mutual Funds Benefits of Mutual Fund investing Types of Mutual Funds MF Investing made easy by Kotak Online Demos
  3. 3. MFs Investment Opportunities
  4. 4. About Mutual Funds A Mutual Fund is a collective investment scheme that pools the savings of a number of investors who share a common financial goal. These schemes are regulated and open to general public. Each scheme of a mutual fund can have different character and objectives to suit a variety of investment needs. Mutual funds issue units to the investors, which represent an equitable right in the assets of the mutual fund. i.e., each investor owns shares, which represent a portion of the holdings of the fund. With Kotak Securities, you can invest in over 3000 different mutual fund schemes (in the Indian stock market).
  5. 5. Benefits of Mutual Fund Investing • Diversification • Professional Management • Liquidity • Flexibility • Cost Effective • Well Regulated
  6. 6. Types of Mutual Funds BY INVESTMENT BY STRUCTURE BY NATURE OBJECTIVEClose Ended Funds Equity Growth SchemesOpen Ended Funds Balanced Funds Income Schemes Interval Funds Debts Index Funds
  7. 7. Types of Mutual Funds By StructureClose Ended Fund/ Scheme:The fund is open for subscription only during a specified period at the time of launch of the scheme. It is called a closed-endfund/scheme because new shares are rarely issued once the fund has launched. A close-ended fund or scheme has a stipulatedmaturity period of 5-7 years and are not easily redeemable. Investors can invest in the scheme at the time of the initial publicissue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed.Open Ended Fund/ Scheme:An open-ended mutual fund is the most common type of mutual fund which is available for investment. An investor can choose toinvest or transact in these schemes whenever he likes to. In an open-ended mutual fund, there is no limit to the number ofinvestors, shares, or overall size of the fund, unless the fund manager decides to close the fund to new investors in order to keepit manageable. There is no specific “maturity period” in these types of funds/schemes. It contrasts with a closed-end fund, whichtypically issues all the shares it will issue at the beginning. The value or share price of an open-ended mutual fund is determinedat the market close every day and is called the Net Asset Value (NAV).Interval Schemes:Interval Schemes are that scheme, which combines the features of open-ended and close-ended schemes. The units may betraded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices. FMPor the Fixed Maturity Plans are the example for these types of schemes.
  8. 8. Types of Mutual Funds By NatureEquity mutual funds are also known as “stock mutual funds”. These funds invest a maximum part oftheir pooled money into equities Short Term Guilt funds Income funds MIPs Liquid Funds Plans. The objective of these Funds is to invest in debt papers. Private companies, Governmentauthorities, banks and financial institutions are some of the major issuers of debt papers. These schemesaim to provide investors with the best of both types of investments. As the name suggest they, balancedfunds are a mix of both equity and debt funds. Sector Diversified Mid-Cap Small-Cap Tax Saving specific
  9. 9. Types of Mutual Funds By Investment ObjectiveGrowth SchemesGrowth Schemes are also called “equity schemes”. The main objective of these schemes is to provide capital appreciation overmedium to long term. These schemes invest a major part of their fund in equities and are willing to bear short-term decline in valuefor possible future appreciation.Income SchemesIncome Schemes are also known as debt schemes. The aim of these schemes is to provide regular and steady income to investors.These schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital appreciation in suchschemes may be limited.Index SchemesAs the name suggests, the portfolio of these schemes will consist of only those stocks that constitute the index. The percentage ofeach stock to the total holding will be identical to the stocks index weight age. Index schemes attempt to replicate the performanceof a particular index such as the BSE Sensex or the NSE 50. And hence, the performance from such schemes would be more or lessequivalent to the performance of the Index.
  10. 10. Mutual Fund Investing Made Easy by Kotak Log on to our website or Call Us Meet our Start Investing! Representative Register via our paperless process
  11. 11. Thank You! Read More And give us your Feedback ORIf you have any questions click on any of these -
  12. 12. • Registered office: Kotak Securities Limited, 1st Floor, Bakhtawar, 229, Nariman Point, Mumbai - 400021. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230/INE 011207251, OTC INB 200808136, MCXSX INE 260808130.• Disclaimer: Investments in securities are subject to market risks, please read the SEBI prescribed Combined RDD prior to investing.• * Awarded Best Brokerage Firm in India by AsiaMoney in 2006, 2007, 2008 and 2009