All about Mutual Funds

1. By,
Rakesh Murthy K G, CFA

2. History
 Started in Belgium, year 1822
 Popularized in 1920 in US
 Great Growth post 1980

3. Mutual Fund
 Its just a Fruit Salad
 Like Minded individuals
 Common Goal

4. Why ??
 Better Management
 Diversification
 More opportunities
 Many More…

5. Types
 Value  Defensive
 Growth  International
 Blend  Thematic
 Income  Balanced
 Index  ELSS
 Enhanced Index  ETF’s

6. Different Types

7. Expenses
 Loads
 Fees
 Management Fees
 Promotional Fees
 Transaction charges
 DDT
 Capital Gains

8. Risks in MF
 Call Risk  Inflation
 Country  Interest rate
 Credit  Manager
 Currency  Market
 Income  Principal
 Industry  Churn & Earn

9. Investment Process
 KYC Complaint
 PAN verification
 Address proof verification
 Minimum
 Starting from Rs. 500

10.  S.I.P. - Systematic Investment Plan
 Invest small but invest Regularly
 Starting at Rs 500 per month
 Rupee cost averaging
 Power of SIP
 Rs 1500 every month for 30 years would yield
Rs 1 CRORE.
Actual Investment is just Rs. 5.4 lacs

11. Valuation Techniques
 Standard Deviation
 Sharpe Ratio
 Treynor’s Index
 Alpha
 Expense Ratio

13. “Be the change you want to see in this world”
- Mahathma Gandhi