1. Mutual Funds
person
‘A’ and ‘B’
PRESENTED BY
GROUP-4

2. What is a Mutual Fund ?What is a Mutual Fund ? sandipsandip
• It is a trust that pools the savings of a number of
investors who share a common financial goal
• Professional fund managers then invest these funds in
a way that helps investors achieve their goal

3. Mutual Funds sandipsandip
Pool their
money with
INVESTORS
FUND
MANAGERS
Passed back to
Generate
RETURNS
SECURITIES
Invest in

4. Mutual Fund industry - Domestic perspectiveMutual Fund industry - Domestic perspective
• UTI is the largest fund manager
• Private sector experiencing good growth
• Emphasis on investment performance, service standards
and transparency
Bikram

5. Types of mutual funds - StructureTypes of mutual funds - Structure
• Open ended
• Close ended
Types of Mutual Funds - Investment ObjectiveTypes of Mutual Funds - Investment Objective
• Equity
• Balanced
• Debt
Bikram

6. Investment
Avenues
Direct
Equity
Bank
Deposits
Gold / Real
Estate
Corporate Bonds /
Deposits
Mutual
Funds
Government
Securities
Investment
Options
Ashok

7. Where do Mutual Funds come in?
DIRECTLY THROUGH MUTUAL FUNDS
Stocks
Bonds/Debentures
Corporate FD’s
Short Term Deposits
Govt.. Paper, C.P and C.D
Equity
Funds
Debt Funds
Money Market Funds
Ashok

8. 25 28 30 35 40 50 60
Start
Career
Marriage
Buy
Automobile
Buy
House
Children’s
Education
Daughter’s
Marriage
Retirement
AGE
Why Invest? Harsa

9. Key Portfolio Building Components (How to Invest)
Start
Investing
Early
Asset
Allocation
Invest
Regularly
Harsa

10. 1. Start Investing Early
Mr. A
Age 25 years
Begins investing at 25
Invests Rs. 20,000 p.a.
for 5 years then stops
Redeems on his
retirement at 60
Mr. B
Age 25 years
Begins investing at 35
Invests Rs. 20,000 p.a.
till he is 60
Redeems on his
retirement at 60
Basanta

11. Who has more?
Is it Mr. A, who invested Rs. 1 lakh over 5 years
or
Is it Mr. B, who invested Rs. 5 lakhs over 25 years?
23.43
21.63
0
4
8
12
16
20
24
28
Value of
Mr. A's investment
Value of
Mr. B's investment
Rs.Lakh
Basanta

12. Investing Through Mutual Funds
 Investment professionals
 investing is becoming more complex
mutual funds provide risk diversification:
prince

13. The Advantages
• Risk reduction
– Professional investment management
– Diversification
• Liquidity
• Tax Efficiency
• Flexibility
– Systematic Investment Plan (SIP)
– Systematic Withdrawal Plan (SWP)
prince

14. • In most instances, returns are not guaranteed
• Mutual funds carry market risk
Summary
The Mutual Fund Industry is a growth industry
Mutual Funds cover a spectrum of Investment Options
Start Investing Early & Systematically
You could invest directly or through a Professional Money
Manager
The RisksThe Risks prince

15. Thank you