This document provides an overview of mutual funds, including: - Mutual funds pool money from investors and invest it in stocks, bonds, etc. on their behalf. - Investors prefer mutual funds over directly investing in stocks because it reduces the time spent researching companies and allows for a more diversified, lower risk portfolio. - Asset management companies (AMCs) professionally manage the investors' money in mutual funds and charge fees for their services. - Mutual funds can be invested in either through a lump sum payment or systematic investment plan (SIP) which invests a fixed amount each month. - The main types of mutual funds are open-ended and closed-ended funds, which differ based on whether

1. INVESTMENT in
MUTUAL FUND
Presented by:
Ankit chhabra
MBA/08/48

2. Where to invest ??
We always think ,
where should we
invest our money in
financial market ....

3. Concept of mutual fund
A mutual fund is a professionally-managed
firm of collective investments that pools
money from many investors and invest it in
stocks, bonds etc.
Mutual fund have a fund manager who
invests the money on behalf of the investors
by buying/selling stocks, bonds etc.

4. Why investor prefer Mutual
fund directly from market.
They can buy their shares ?
 But this require spending time to find out the
performance of the company whose share is
being purchased, understanding the future
business prospects of the company, finding out
the track record of the promoters & the dividend,
bonus issue, history of the company etc. It’s
here to do research before investing.
 However investor prefer the mutual fund route.
 Besides this, in this LOW RISK & HIGH
RETURN.

5. Who manages investor’s money?
 This is the role of asset management
company (AMC), to manage investor’s
money.
 AMC’s in return charges a fee for the
services provided & this fee is borne by
the investor as it is deducted from the
money.

7. ORGANISATION OF MUTUAL
FUND

8. Working of mutual fund
 Two methods-
 Lump sum or one time payment method
 Systematic investment plan (SIP)

9. SYSTEMATIC INVESTMENT
PLAN
 Under this a fixed sum is
invested each month on a
fixed date of a month.
 Payment is made through
post dated cheques or
direct debit facilities.
 The investor gets fewer
units when the NAV is
high and more units when
the NAV is low.
 This is called as the
benefit of Rupee Cost
Averaging (RCA).

11. Load structure
 Two types of loads are there in:
 Entry load
 Exit load

12. TYPES OF MUTUAL FUND
BY STRUCTURE
 Open–ended funds
 Close-ended funds Return ??
Return ??
BY INVESTMENT OBJECTIVE Risk factor ??
 Growth Funds Risk factor ??
 Income funds
 Balance Funds
 Money Market Funds
 Gilt Funds
 Index Funds
ON THE BASIS OF LOAD
 Load Funds
 No Load Funds
OTHER SCHEMES
 Tax Saving schemes
 Industry Specific schemes
 Sector schemes

13. Open-ended funds
 An open-end fund is one that is available
for subscription all through the year.
 These do not have a fixed maturity.
 Investors can conveniently buy and sell
units at Net Asset Value (NAV) related
prices.

14. Closed-ended schemes
 A closed-end fund has a stipulated
maturity period which generally ranging
from 3 to 15 years.
 The fund is open for subscription only
during a specified period.

15. RISK Vs.
RETURN

16. ADVANTAGES OF MUTUAL
FUND
 Portfolio diversification
Professional Management
Liquidity
Affordability
Variety
Tax Benefits
Convenient & flexibility

17. DISADVANTAGES OF MUTUAL FUND
No Tailor-made-Portfolios
No control over costs
Managing a Portfolio of Funds

18. Major Mutual Fund Companies
in India
There are around 33 AMC’s in india…….