The Mutual Fund Industry in India
started in
with the formation
of Unit Trust of India (UTI) with at
the initiative of the...
What is mutual Fund?
Mutual funds are investment
avenues that pool the money of
several investors to invest in
financial i...
The history of mutual funds in India can be broadly divided
into four distinct phases:First Phase – 1964-87: The first sch...
Concept of Mutual Funds
The Mutual Fund is managed by
Professional Investment Managers
who buys and sell securities for
mo...
Types of Mutual Fund Schemes

By Structure:
 Open Ended Fund/Scheme: These are funds that you can buy and sell
anytime du...
By Investment Objective:
 Growth: These are highly aggressive schemes and invest mainly in
equities.
 Income: Income fun...
Comparison between FD, Bonds and Mutual Fund – Features

Characteristics

FD’s

Bonds

Mutual Funds

Accessibility

Low

L...
5

Top

Best Mutual Fund
Schemes
Performing in
India

anklin India Bluechip | DSP BR Equity | HDFC Prudence | HDFC Top 200...
FRANKLIN INDIA BLUECHIP

Franklin India Bluechip is a time tested fund Launched in
1993. Making the best of increasing liq...
Rock-Solid Performance

SNAPSHOT

IF YOU THOUGHT a fund that diversified its portfolio
too much and churned its stocks too...
HDFC Prudence
SNAPSHOT

A Fine Balancing Act

IF A FUND CAN HOLD a fourth less of equity
than regular diversified equity f...
SNAPSHOT

ICICI Pru Dynamic

Fund Manager

An Aggressive Defender

Sankaran Naren

IF YOU THINK of a fund that would defen...
of market dips, it also generates steady returns. But you
will see the fund underperform, it moves to cash even as peers s...
Diversification - Mutual Funds aim to reduce the
volatility of returns through diversification by
investing in a number of...
•Market Risk
At times the prices or yields of all
the securities in a particular market
rise or fall due to broad outside
...
Mutual Funds in
India
 ABN AMRO Mutual Fund
 Benchmark Mutual Fund
 Birla Sun Life Mutual Fund
 Bharti AXA Mutual Fund...
 UTI Mutual Fund
Current Scenario of Mutual Fund
Companies

Mutual Fund industry in India is in a very prominant
stage.
S...
Suggestions

There is need to build awareness of
the new funds among the investors with
Constantly being in contact with t...
Conclusion

The mutual fund investors prefer more
of the equity fund as they want more return
on their money. Usually peop...
BIBLOGRA

PHY

’
WIK
MADE BY B.B.I STUDENTS………..
PREETI PATIL
SAMPADA MISHAL
RASIKA PHANSEKAR
SONALI MALVE
SHWETA MACCHIGGAR
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Mutual fund project

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This project is about MUTUAL FUND.where we have implements ours ideas with the help of group...I hope even these project will help you

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Mutual fund project

  1. 1. The Mutual Fund Industry in India started in with the formation of Unit Trust of India (UTI) with at the initiative of the Government of India and Reserve Bank of India. The mutual fund industry in India is one of the emerging industries in India The Association of Mutual Funds in India (AMFI) is the industry body set up to facilitate the growth of the Indian mutual fund industry. It plays a pro-active role in identifying steps that need to be taken to protect investors and promote the mutual fund sector.
  2. 2. What is mutual Fund? Mutual funds are investment avenues that pool the money of several investors to invest in financial instruments such as stocks, debentures etc. The appreciation made on the investments is distributed among the investors on the basis of the units held by each of them. The mutual funds in India are governed by Association of Mutual Funds in India, the umbrella body for mutual funds, which is in turn governed by the Securities and Exchange Board of India (SEBI).
  3. 3. The history of mutual funds in India can be broadly divided into four distinct phases:First Phase – 1964-87: The first scheme launched by UTI Second Phase – 1987-1993: Entry of Public Sector Funds Third Phase – 1993-2003: Entry of Private Sector Funds Fourth Phase – since February 2003 With the emergence of UTI and Phases that occurred the Mutual Fund Industry has entered its current phase of consolidation and growth. The graph indicates the growth of assets over the consecutive phases over the years.
  4. 4. Concept of Mutual Funds The Mutual Fund is managed by Professional Investment Managers who buys and sell securities for more effective growth of the funds. As u invest in a mutual fund company, as a mutual fund investor u become a “shareholder” of the mutual fund company. The savings thus provided are invested by mutual fund companies in securities, stock, debentures etc which in turn generate Profitable returns which are then passed over to the shareholders and are distributed appropriately.
  5. 5. Types of Mutual Fund Schemes By Structure:  Open Ended Fund/Scheme: These are funds that you can buy and sell anytime during the year. It is available for subscription and repurchase on a continuous basis.  Close Ended Fund/Scheme: These are funds that are open only for a specific period after which you'd have to buy them from the secondary market. It has a stipulated maturity period of 5-7 years.  Interval schemes: These schemes combine the features of open ended and close ended schemes and are available for purchase or sale during a select period
  6. 6. By Investment Objective:  Growth: These are highly aggressive schemes and invest mainly in equities.  Income: Income funds invest in medium to long-term debt instruments. These are low risk and aim at a fixed current income .  Balanced: Also called Hybrid funds, these are a combination of growth, debt and money market funds.  Money market schemes: These schemes invest in short term debt instruments and are highly liquid.  Tax saving: These are equity linked saving schemes that offer tax benefits under Section 80 C and have a compulsory lock in period of three years.  Special schemes: These are select funds that aim at replicating the performance of an index. Also there are funds that invest in specific sectors that fall under this category Investing is made easier…
  7. 7. Comparison between FD, Bonds and Mutual Fund – Features Characteristics FD’s Bonds Mutual Funds Accessibility Low Low High Tenor Fixed (medium) Fixed (long) No Lock-in Min. investment Rs.1000 Rs.5000 Rs.5000 Tax Benefits None 80L, 88 Dividend Tax-Free Liquidity Low Very Low Very High Convenience Medium Tedious Very High Transparency None None Very High
  8. 8. 5 Top Best Mutual Fund Schemes Performing in India anklin India Bluechip | DSP BR Equity | HDFC Prudence | HDFC Top 200 | ICICI Pru Dynamic
  9. 9. FRANKLIN INDIA BLUECHIP Franklin India Bluechip is a time tested fund Launched in 1993. Making the best of increasing liquidity in Indian markets, The Funds too have simply grown with market at a much faster SNAPSHOT Fund Manager Anand Radhskrishnan Asset Size Pace. Winning Strategy Rs 5040 Crore as of Dec 2012 We choose Franklin India Bluechip for his ability to contain Minimum Investment Declines Despite staying predominantly invested in equities. Rs 5000 The fund spotted value in private banking stocks in late 2008 when these stocks were beaten down. Similarly it took the bold call of holding a good chunk in capital goods stocks in 2010, when the rest of the market did not see much in this segment. And these contrarian calls worked well, thanks to the fund’s eye for value. Returns Suitability 5 years Meter Franklin Bluechip is a good option for those just beginning to test waters inequities. it is this portfolio approach that has helped build handsome wealth over the long term! Franklin India Bluechip Sensex 10 years Since Inception 5.0 26.2 23.6 0.3 19.2 9.2 Bluechip Rs700, 677 Sensex Rs 59,079 Rs 10000 Dec 2013 Dec 93
  10. 10. Rock-Solid Performance SNAPSHOT IF YOU THOUGHT a fund that diversified its portfolio too much and churned its stocks too many times will do no good, DSP BlackRock Equity will catch you wrong! This multi-cap fund, with a changing mix of large and mid-cap stocks has stood its ground quite well since its launch in April 1997. Fund Manager Apoorva Shah Asset Size Rs 2616 Crore as of Dec 2012 Minimum Investment Winning Strategy Rs 5000 The fund’s ability to constantly switch between growth and value styles in line with the market conditions, has made it an adept market reader. In the last one year,the fund churned its portfolio twice over. That simply means that it exits large-caps once it derives value from them. SUITIBILITY Returns Meter DSP BR Equity is a good fit in a buy and hold portfolio meant for the long term. The fund may be DSP BR adept but it does slip sometimes with a defensive Equity portfolio, it was caught unaware when the market S&P CNX took off northward in March 2009 after the bear 500 onslaught. This fund can surprise you with short spurts of outperformance and sometimes slipups too. But if you let it be, it can generate wealth comfortably. 5 years 10 years Since Inception 4.4 -0.9 29.8 19.9 22.1 13.1
  11. 11. HDFC Prudence SNAPSHOT A Fine Balancing Act IF A FUND CAN HOLD a fourth less of equity than regular diversified equity funds and still beat the latter’s average, it has to be HDFC Prudence. With a return of 19 per cent since its launch in February 1994. Fund Manager Prashant Jain Asset Size Rs 6239 Crore as of Dec 2012 Minimum Investment Winning Strategy Rs 5000 HDFC Prudence does balance its portfolio well. But for a Balanced fund, its approach is quite aggressive Its buy and hold approach hence mitigates risks associated with interest rate movements. That HDFC Prudence is managed by the same fund manager since its inception, when it was launched by Zurich Mutual, has also provided stability in terms of fund management. Retu 5 10 SinceMet years years Inception HDFC Prudence S&P Nifty 8.8 26.0 18.7 0.5 18.5 8.1 Suitability HDFC Prudence is a good candidate for those wanting to contain downside risks but looking for superior returns in an equity rally. Its sister fund HDFC Balanced is a little more conservative, often holding a tad less in equities than Prudence.
  12. 12. SNAPSHOT ICICI Pru Dynamic Fund Manager An Aggressive Defender Sankaran Naren IF YOU THINK of a fund that would defend your Portfolio aggressively but stay comfortably ahead of Its benchmark S&P nifty, it has to be ICICI Prudential Dynamic. You may have a tinge of surprise that this reclusive scheme even made it to our list of fabulous funds. Asset Size Rs 3691 Crore as of Dec 2012 Minimum Investment Rs 5000 Winning Strategy Cash calls together with aggressive churning is this fund’s trump card. now, a cash call works well in a down market. But Sankaran naren, the fund manager, has used this in a bull run as well. In markets such as 2005 and 2006, the fund outperformed its benchmark by 20-25 percentage points and in fact beat some of the peers in FundsIndia Five as well. Returns Meter ICICI Pru Dynamic S&P Nifty 5 10 Since years years Inception 5.6 26.2 0.5 18.5 Suitability A fund like ICICI Pru Dynamic would fit only a long-term investor’s portfolio. Its steep exit load can punish you for early exit. Besides quickly normalising your portfolio post phases 27.6 19.9
  13. 13. of market dips, it also generates steady returns. But you will see the fund underperform, it moves to cash even as peers stay fully invested in equities. HDFC TOP 200 Top of League LAUNCHED in September 1996, large-cap focused Fund HDFC Top 200 can easily be termed as one of The most consistent performers in the equity fund universe. Winning Strategy SNAPSHOT Fund Manager Prashant Jain Asset Size Rs 12,122 Crore as of Dec 2012 Minimum Investment “Risk control is as important to wealth creation as is Rs 5000 generating returns. An investor who generates moderate returns fairly consistently with limited downside risk is likely to do better when compared with another investor who sometimes achieves spectacular returns but makes occasional considerable losses.” Prashant Jain, he remained true to the above statement in his managing HDFC Top 200. The fund, along with HDFC Equity, enjoys among the lowest expense ratios in the active fund category, thanks to massive asset size. Returns Suitability Meter 5 10 Since years years Inception HDFC Top 200 is suitable for any investor’s ICICI core portfolio. Its forgettable performance in 2011, Pru 7.2 29.5 22.6 though, has led to doubts in many an investor’s Dynamic mind. Like few other HDFC funds, being fully S&P Nifty -0.5 20.1 12.9 invested in the market, besides holding highest exposure to stocks such as SBI, which underperformed, was the primary reason for the slip up. But the fund quietly accumulated SBI in 2011 when the stock under-performed. The stock is now up 46 per cent from its year ago price perhaps adding to your wealth as well, through HDFC Top 200.
  14. 14. Diversification - Mutual Funds aim to reduce the volatility of returns through diversification by investing in a number of companies across a broad section of industries and sectors. Liquidity - This mean that investors can sell their holdings in Mutual Fund investments anytime without worrying about finding a buyer at the right price. Tax efficiency - Mutual Fund offers a variety of tax benefits. Please visit the tax corner section or consult your tax advisor for details. Low transaction costs - Since Mutual Funds are a pool of money of many investors, the amount of investment made in securities is large. This therefore results in paying lower brokerage due to economies of scale. Transparency - Prices of Mutual Funds are declared daily. Regular updates on the value of your investment are available. The portfolio is also disclosed regularly with the fund manager's investment strategy and outlook Well-regulated industry - All the Mutual Funds are registered with SEBI and they function under strict regulations designed to protect the interests of investors. Convenience of small investments - Under normal circumstances, an individual investor would not be able to diversify his investments a Mutual Fund on the other hand allows even individual investors to hold a diversified array of securities due to the fact that it invests in a portfolio of stocks.
  15. 15. •Market Risk At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. •Inflation Risk Sometimes referred to as "loss of purchasing power." •Credit Risk In short, how stable is the company or entity to which you lend your money when you invest? How certain are you that it will be able to pay the interest you are promised, or repay your principal when the investment matures? •Interest Rate Risk Changing interest rates affect both equities and bonds in many ways. Investors are reminded that "predicting" which way rates will go is rarely successful. A diversified portfolio can help in offsetting these changes. •Exchange Risk A number of companies generate revenues. Changes in exchange rates may, therefore, have a positive or negative impact on companies which in turn would have an effect on the investment of the fund. •Investment Risk The sectoral fund schemes, investments will be predominantly in equities of select companies in the particular sector s such companies and may be more volatile than a more diversified portfolio of equities. •Changes in Government Policy Changes in Government policy especially in regard to the tax benefits may impact the business prospects of the companies leading to an impact on the investments made by the fund.
  16. 16. Mutual Funds in India  ABN AMRO Mutual Fund  Benchmark Mutual Fund  Birla Sun Life Mutual Fund  Bharti AXA Mutual Fund  BOB Mutual Fund  CanaraRobero Mutual Fund  DBS Chola Mutual Fund  Deutsche Mutual Fund  DSP BlackRock Mutual Fund  Escorts Mutual Fund  Fidelity Mutual Fund  Fortis (ABN ) Mutual Fund  Franklin Templeton Mutual Fund  HDFC Mutual Fund  HSBC Mutual Fund  ING Vysya Mutual Fund  JM Financial Mutual Fund  Kotak Mahindra Mutual Fund  LIC Mutual Fund  ICICI Prudential Mutual Fund  Reliance Mutual Fund  Sahara Mutual Fund  SBI Mutual Fund  Standard Chartered Mutual Fund  Sundaram Mutual Fund  Taurus Mutual Fund
  17. 17.  UTI Mutual Fund Current Scenario of Mutual Fund Companies Mutual Fund industry in India is in a very prominant stage. Still growing, still evolving. There have been various initiatives on various fronts and now the industry has reached close to Rs 8 lakh crore. But if compared with the size of mutual fund industries of most developed countries such as China and Australia, we are much smaller in size. When the Prime Minister took over the Finance Ministry from Pranab Mukherjee on his election as the President of the country, one of the first points the PM raised was that the mutual fund industry needs to be re-energised. Before this there had been various discussions which culminated into a circular issued by the Securities and Exchange Board of India on September 13, 2012. At present, we have close to 50,000 distributors registered with AMFI. We also expect that the smaller towns will contribute more in the new cadre of distributors. The market sentiments have improved. In a long-term perspective, there is no doubt about growth of Indian economy. In such a scenario, an important initiative that will do well for the development of the industry will be penetration by more feet on Street. With the introduction of the new type and the announcement of free registration will support in achieving this objective of more feet on street to sell mutual fund.
  18. 18. Suggestions There is need to build awareness of the new funds among the investors with Constantly being in contact with them. Some of investors have asked for periodical market report about stock market so that they can get the knowledge properly. Companies must try to locate hard working distributors who are providing good business in their respective geographical area. I nv est ors are nev er going to accept th e entry load . So s uch t yp e of activ ity should Be avoided as much as possible. The company should advertise their tax saving plan more so that t h e y c a n g a i n m o r e customers.
  19. 19. Conclusion The mutual fund investors prefer more of the equity fund as they want more return on their money. Usually people preferred to invest in mutual fund seeing the performance of mutual fund scheme. Sometimes due to lack of detailed awareness about mutual fund schemes the investors seek advice of distributors. Investors feel that the AMC should go for more promotional activities & should try to come up with new innovative schemes which can easily be understood by the investors. Even after seeing the market crash in May 2006 people still thinks that mutual fund is much reliable way to invest in stock market. So investors are not going for redemption during crash& were ready to wait. In fact during the crash time many people were ready to invest in mutual fund. So that’s a positive sign and the mutual fund sector may turn out to be its best in the near future.
  20. 20. BIBLOGRA PHY ’
  21. 21. WIK
  22. 22. MADE BY B.B.I STUDENTS……….. PREETI PATIL
  23. 23. SAMPADA MISHAL RASIKA PHANSEKAR SONALI MALVE SHWETA MACCHIGGAR

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