PPT ON MUTUAL FUNDS

1. Class :- T.Y.B.M.S
Division:- A
Semester:-6
Subject:-Investment Analysis &
Portfolio Management

2. GROUP NO. – 2
NAME ROLL NOS.
• Akshay Shetty 6660
• Nagesh Sawant 6602
• Rohit Yadav 6605
• Aakash Ojha 6608
• Pawan Jangid 6603
• Amit Das 6604

3. INTRODUCTION TO MUTUAL FUNDS
• Mutual funds are in the form of Trust (usually called as ASSET MANAGEMENT
COMPANY).
• A vehicle to mobilize money from investors.
• Mutual funds is a professionally managed basket of securities at a
relatively low cost.
• Mutual funds pools the savings of a number of investors who share A
COMMON FINANCIAL GOAL.
• The ownership of the fund is joint or mutual
• The fund belongs to all the investors
• Ownership is proportionate to contribution made by one.
• The money invested in mutual funds is invested in securities like SHARES ,
DEBENTURES AND OTHER SECURITIES.
• Mutual Funds aim to strike a balance between risk and return
and give the best of both to the investor.

4. DEFINITION
The Securities And Exchange Board Of India (SEBI) (MUTUAL FUNDS)
regulations , 1993 defines Mutual funds as “a fund established in the form of
a trust by a sponsor , to raise money by the trustees through the sale of units
to the public , under one or more schemes , for investing in securities in
accordance with these regulations.”
WORLD MUTUAL FUND
INDUSTRY (SOURCE: Data
from ICI fact book 2012)

5. HISTORY OF MUTUAL FUNDS
PHASE YEAR ACTIVITY
1 1964 - 87 GROWTH OF UTI
2 1987 - 93 ENTRY OF PSU BANKS & FINANCIAL
INSTITUTIONS MFs
3 1993 - 2003 EMERGENCE OF PRIVATE SECTOR
MUTUAL FUNDS
4 FEBRUARY 2003
ONWARDS
UTI ACT 1963 REPEALED IN FEBRUARY
2003

6. MUTUAL FUND CYCLE / PROCESS

7. TYPES OF MUTUAL FUNDS
ON THE BASIS
OF EXECUTION
AND
OPERATION
OPEN-ENDED
CLOSE-
ENDED
ON THE BASIS OF INVESTMENT PATTERN
INCOME
FUND
GROWTH
FUND
BALANCED
FUND
SPECIALISED
FUND
MONEY
MARKET
MUTUAL
FUND
TAXATION
FUND

8. DIFFERENCE BETWEEN MUTUAL FUNDS (MF) AND
EXCHANGE TRADED FUNDS (ETF)
Features Mutual Fund ETF
Traded on a stock exchange TRADED NOT TRADED
NAV or Quoted Price ONLY BE BOUGHT AT NAV CAN BE BUYED AT BOTH NAV AND
QUOTED PRICE
Trading account needed NEEDED NOT NEEDED
Expense Ratio HIGHER LOWER
Brokerage NO PAYMENT OF BROKERAGE PAYMENT IS TO BE DONE

9. ADVANTAGES/BENEFITS OF MUTUAL FUNDS
Professional
Management
Diversification
Liquidity
TransparencyFlexibility
Low Cost
Higher
returns
Well Regulated

10. DISADVANTAGES/DRAWBACKS OF MUTUAL FUNDS
Uncertain
returns
Over
diversification
High costs and
confusing
expense
disclosures
Uncertain tax
liabilities
Fund overload
Unwildy growth
No control over
costs
No tailor made portfolios

11. WHY SHOULD YOU INVEST IN MUTUAL FUNDS?

12. HOW TO PICK UP A GOOD MUTUAL FUND
Are you thinking about investing in a mutual fund, but aren’t sure how to go about it or
which one is the most appropriate based on your needs? You're not alone. However what
you may not know is that the selection process is much EASIER than you think.
IDENTIFY GOALS &
RISK TOLERANCE
THE BOTTOM LINESIZE OF THE FUND
EVALUATING
MANAGERS AND
PAST RESULTS
CHARGES AND FEES
STYLE AND TYPE OF
FUND

13. A Critical Analysis of Indian Mutual Funds Sector: A Case Study of Unit
Trust of India (UTI) Mutual Fund, Bank of India (BOI) Mutual Fund and Tata
Mutual Fund
Reference:
( International Journal of Trade and Commerce-IIARTC)
• STRUCTURE OF INDIAN MUTUAL FUNDS:

14.  PERFORMANCE ANALYSIS OF UTI(UNIT TRUST OF INDIA) MUTUAL FUNDS:
No. of Scheme 107
No. of schemes including options 324
Equity Schemes 59
Debt Schemes 234
Short term debt Schemes 10
 Performance Analysis of BOI Mutual Funds
 PERFORMANCE ANALYSIS OF TATA MUTUAL FUNDS :
No. of Schemes 67
No. of schemes including options 233
Equity Schemes 37
Debt Schemes 158
Short-term debt Schemes 14

15. FINDINGS AND RECOMMENDATIONS
• Indian mutual fund industry in its present form is still young as compared
to most other economics.
• However, for an industry so young, it has shown remarkable sings of early
maturity.
• The strong growth in Assets Under Management (AUM) and the ever
increasing number of international asset managers setting up funds in
India are testimony to the increasing attractiveness of Indian Markets as
well as confidence in the overall India story.
• Mutual fund companies do not perceive themselves as having excess
profits that they should be using for social betterment.
• A proposal for a partnership that can easily fit with a mutual fund
company’s existing systems and approaches has a higher probability of
support than one which the company perceives as difficult to assimilate or
as requiring significant resources to accommodate.

16. MYTHS AND FACTS ABOUT MUTUAL FUNDS
FACTS:-
1.Equity Instruments like shares are only a part of the securities held by mutual funds.
Mutual funds also invest in debt securities which are relatively much safer.
2. Mutual Funds are there in India since 1964. Mutual Funds market has evolved in
U.S.A and is there for the last 60 years.
3. Mutual Funds are the best solution for people who want to manage risks and get
good returns.

17. INDIAN MUTUAL FUND INDUSTRY
(What next for the mutual fund industry?)
- Confederation Of Indian Industry (CII)
(6th Mutual Fund Summit 2010)
REAL ESTATE MUTUAL FUNDS
TRADING THROUGH STOCK
EXCHANGE PLATFORMS
ELIGIBILITY NORMS OF
AMCss
REGULATIONS FOR
THE DISTRIBUTORS
DIVERSE RANGE
OF PRODUCTS
WHAT NEXT
FOR
MUTUAL
FUNDS

18. STRUCTURE & DISTRIBUTION CHANNELS OF MUTUAL
FUNDS
 STRUCTURE:-
• Custodian:
Has the responsibility of physical handling and safe keeping of the
securities.
• Depositories:
Indian capital markets are moving away from physical certificates for
securities to ‘dematerialized’ form with a Depository.
 DISTRIBUTION CHANNELS:-
• Agents:
Is a broker between the fund and the investor and acts on behalf of the
principal
• Distribution companies:
Is a company which sells mutual funds on behalf of the fund.
• Direct marketing:
Mutual funds sell their own products through their sales officers and employees
of the AMC.

19. CONCLUSION
• Equity Instruments like shares form only a part of the
securities held by Mutual Funds. Mutual Funds also
invest in debt securities, which are relatively much safer.
• The biggest advantage of Mutual Funds is their ability to
diversify the risk.
• Mutual Funds are the best solution for people who want
to manage risk and get good returns.
• The truth is, as investors we should always pay attention
to our Mutual Funds and continue to monitor them.