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Mutual fund ppt


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Mutual fund ppt

  1. 1. MUTUAL FUNDS By- Akansha Gupta PGDM- 1st year
  3. 3. EXECUTIVE SUMMARY Mutual Fund investment is the fastest growing investment industry in the present scenario and it needs to be properly supported with educating the investor community which is not aware of Mutual Fund as it is of other forms of investment patterns like those of Fixed Deposits, Savings Accounts, Postal Deposits, Recurring Deposits, Insurance plans, Stocks etc. This project has been a great learning experience for me; at the same time it gave me enough scope to implement my analytical ability. This project as a whole can be divided into two parts: This project has been a great learning experience for me; at the same time it gave me enough scope to implement my analytical ability. This project as a whole can be divided into two parts
  4. 4. The first part gives an insight about the mutual funds and its various aspects. One can have a brief knowledge about Mutual funds and all its basics through the project. Other than that the real servings come when one moves ahead. Some of the most interesting questions regarding mutual funds have been covered. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand. All the data’s have been well analyzed with the help of charts and graphs. The second part consists of data and their analysis. The data collected has been well organized and presented. Hope the research findings and conclusions will be of use. The advisors can take further steps to approach more and more people and indulge them for taking their advices.
  5. 5. OBJECTIVES OF THE STUDY  To understand the concept of Mutual fund, its working and various types of mutual fund.  To study the risk involved in MFs.
  6. 6. RESEARCH METHODOLOGY  Collection of data: Secondary data: Fact sheets of Mutual Funds collected through various web-sites, Magazines, Journals and newspaper  Analysis of data  Preparation of project report Data sources:  Research has been done by secondary data collection. The secondary data has been collected through various journals and websites.
  7. 7. CONCEPT OF MUTUAL FUND  A Mutual Fund is a trust that pools 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.  The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them.
  8. 8. MUTUAL FUND OPERATION FLOW CHART Investors Fund Securities Return Pool their money in Which is invested inThat generates Given back to
  10. 10.  No matter what type of investor you are, there is bound to be a mutual fund that fits your style. It's important to understand that each mutual fund has different risks and rewards. In general, the higher the potential return, the higher the risk of loss.  At the fundamental level, mutual funds can be classified on three parameters: 1) On the basis of structure. 2) On the basis of investment objective. 3) On the basis of special schemes. TYPES OF MUTUAL FUNDS
  11. 11. TYPES OF MUTUAL FUNDS Type of Mutual Fund Schemes Structure Investment Objective Special Schemes Open Ended Funds Close Ended Funds Growth Funds Income Funds Balanced Funds Money Market Funds Industry Specific Schemes Index Schemes Sectoral Schemes
  12. 12. INVESTMENT STRATEGIES  Systematic Investment Plan (SIP)  Invest a fixed sum every month. (6 months to 10 years- through post-dated cheques or Direct Debit facilities)  Fewer units when the share prices are high, and more units when the share prices are low.  Convenience and Discipline are the benefits of SIP.  Systematic Withdrawal Plan (SWP) Is a facility provided by a mutual fund to withdraw money on a regular basis.
  13. 13. INDIAN MUTUAL FUNDS FUTURE - GROWTH FACTS  In the past 6 years, Mutual Funds in India have recorded a growth of 100 %.  One of the major factors contributing to the growth of this industry has been the booming stock market with an optimistic domestic economy.  Second most important reason for this growth is a favorable regulatory regime which has been enforced by SEBI. This regulatory board has improved the market surveillance to protect the investor’s interest.
  14. 14.  In the future, there lies a big scope for the Indian Mutual Funds industry to expand.  Several asset management companies which are foreign based are now entering the Indian markets.  A number of commodity Mutual Funds will be introduced in the future. The SEBI (Securities Exchange Board of India) has granted the permission for the same.  More emphasis is put on the effective Mutual Funds governance.  There is also enough scope for the Indian Mutual funds to enter into the semi-urban and rural areas.
  15. 15. COMPANY PROFILE  Reliance mutual fund, a part of the Reliance- Anil Dhirubhai group (RADAG) is one of the fastest growing mutual funds in the country.  Reliance mutual fund offers investors a well rounded portfolio of products to meet varying investor requirements.  Reliance mutual fund has a presence in 95 cities across the country, an investor base of over 2.8 million and manages assets of Rs36927crore as on December 31, 2011.  RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995.  Reliance Mutual Fund was formed to launch various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities.
  16. 16. FINDINGS AND SUGGESTION  The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. Mutual funds and Insurance policies offer a lot of benefit, which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is and moreover they are still unaware of the combination of Mutual Fund + Insurance Policy, i.e. SIP+INSURE PLAN. They only see it as just another investment option. So the advisors should try to change their mindsets.  The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. The advisors may try to highlight some of the value added benefits of MFs such as tax benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. these benefits are not offered by other options single handedly. So these are enough to drive the investors towards mutual funds. Investors could also try to increase the spectrum of services offered. Now the most important reason for not availing the services of advisors was
  17. 17. CONCLUSIONS: It is hopeful that this study creates awareness that the mutual funds are worth investment practice. The various schemes of mutual funds provide the investors with a wide range of investments options according to his risk bearing capacities and interest. Besides they also give a handy return to the investors. The project analyses various schemes of Different Companies. In India Mutual funds are playing important role. The mutual funds companies pool the savings of small investors and invest those collected huge amount of funds in different sectors of the economy. They are performing like intermediary between small investor and the Indian capital market. In recent years many mutual fund companies are established. Through this competition is increased among the companies. To encounter the competition the different companies are introducing different types of mutual fund schemes with attractive returns and low risk. So it is an advantage to the investors. The stock market has been rising for over six years now. This in turn has not only protected the money invested in funds but has also to helped grow these investments.
  18. 18. BIBLIOGRAPHY  Introduction to Mutual Fund By AMFI  Web Sites:        Journal: “Comparative study and analysis of Mutual Funds”,