digital Human resource management presentation.pdf
Mutual Fund Investment
1. MUTUAL FUND’S
• WHAT IS MUTUAL FUND’S ?
• WHY MUTUAL FUND’S?
• TYPE OF MUTUAL FUND’S?
• HOW TO INVEST IN MUTUAL FUND’S?
2. 1)WHAT IS MUTUAL FUND’S ?
• Collective investment that allows many investors to invest.
• In a fund with a common objective
• Pools individual investments and give it to a professional
manager who in turn would invest these monies in line
with the common objective.
4. FEATURES OF A MUTUAL FUND’S
Investors own the mutual fund.
Professional managers (AMC) manage the fund for a fee.
Fees charged is specified by SEBI and is expressed as a percentage of assets
managed
The funds are invested in a portfolio of marketable securities in
accordance with the investment objective.
Value of the portfolio and investors’ holdings, alters with change in the
market value of investments.
Every fund like a share price has a “NAV”
Every investor will have a unique folio number
5. Mutual Funds: A Packaged Product
Professional
Management
Convenience
Tax Benefits
Liquidity
Diversification
6. Diversification:
Portfolio of investments spreads out Risk
Attempts Minimizes value erosion
One should check for the sectorial allocation in a mutual
fund.
Also look out for individual allocation on stocks
7. 2) WHY MUTUAL FUND’S?
• Higher returns
• Professionally managed
• Disciplined investing
• Less/ No lock-in
• The fund with your name on it
• Diversification
• Convenience
9. 3) TYPE OF MUTUAL FUND’S?
Open-ended funds
Closed-ended funds- Fixed Maturity Plans
Equity fund
Debt fund
Balanced fund
Fund of funds
10. Open-ended vs Closed-ended Funds
OPEN-ENDED
No fixed maturity
Variable Corpus
Not Listed
Buy from and sell to the Fund
Entry/Exit at NAV related
prices
CLOSED-ENDED
Fixed Maturity
Fixed Corpus
Generally Listed
Buy and sell in the Stock
Exchanges
Entry/Exit at the market prices
VS
11. • Pre-dominantly invest in equity markets
• Diversified portfolio of equity shares
• Diversified equity funds
• Large cap, Mid cap and Multi cap mutual funds
• Understand your risk profile before investing in funds
• ELSS- Equity Linked Savings Schemes
• Index funds
• Sector specific funds (sectoral funds)
EQUITY MUTUAL FUNDS
12. DEBT MUTUAL FUNDS
Pre-dominantly invest in the debt markets.
Diversified debt fund
Select set based on some criterion
Income funds
Gilt funds
Liquid or money-market funds
Serial plans or fixed term plans
Liquid funds give better returns than savings a/c in bank
FMP’s give better returns than fixed deposits
13. BALANCED FUNDS
Investment in more than one asset class:
Debt and equity in predefined proportions
Pre-dominantly debt with some exposure to equity
Pre-dominantly equity with some exposure to debt
Education plans and children’s plans
14. FUND OF FUNDS
Investment of its corpus in other mutual fund
schemes
Schemes of same mutual fund house
Schemes of other mutual fund house
Is considered like a Debt scheme for tax purposes
The effective expenses become higher as the
investors have to bear the expenses of the invested
schemes as well
16. 10 Steps that you need to follow to start SIP in Mutual Funds are
1.Set Your Finance Goals : Short term/Long term.
2.Measure Your Risk Appetite : Low, moderate/high risk.
3.Plan Your Investment Horizon.
4.Invest Online/Offline : For details refer http://www.righthorizons.com/
5.Invest Directly/Through Financial Advisors.
6.KYC Compliance.
7.Select Fund Type : Debt funds, Equity funds or Hybrid funds.
8.Decide Date and Amount of SIP.
9.Decide Mode of payment.
10.Submit Application form.
Enjoy your SIP journey !
17. THANK YOU
CONTACT US
BANGALORE – HEAD OFFICE
#6, Arakere Village, Begur Hobli,
Bangalore – South Taluk, B.G. Road, Bangalore – 560 076.
contactus@righthorizons.com
+91 080-65687503 to 65687518
+91 98453 99780
http://www.righthorizons.com/