This document provides an overview of how to analyze an equity mutual fund fact sheet. It discusses the key components of a fact sheet including the manager's review and outlook, fund details, performance metrics, portfolio allocation, risk statistics, and more. It also explains how to interpret various data points like NAV, AUM, expense ratio, portfolio turnover, volatility measures like standard deviation and beta, and the Sharpe ratio for evaluating fund performance and risk. The document aims to equip investors with the tools to properly analyze a fund's fact sheet and make informed investment decisions.
Mutual funds allow investors to pool their money together and invest in a variety of securities like stocks, bonds, and money market instruments. They offer the benefits of diversification and professional management. The document discusses the different types of mutual funds such as equity funds, fixed income funds, and money market funds. It also covers mutual fund fees, risks, performance measurement metrics, and past performance of some Indian mutual funds. The top mutual fund houses in India have been using the market decline in August to buy stocks at attractive prices.
The document discusses how net asset value (NAV) of a mutual fund is determined. It states that NAV is calculated by dividing the total market value of all the securities in the mutual fund's portfolio by the total number of outstanding units. It also notes that short-term mispricing of the underlying securities can result in over- or undervaluation of the mutual fund's NAV, in direct proportion to the mispricing of the securities owned by the fund. The document emphasizes that the price of mutual fund shares is not determined by the forces of supply and demand, but solely by the value of the underlying securities in the fund's portfolio.
A mutual fund is a trust that pools savings from investors who share a common financial goal. The money is invested in securities like stocks, bonds, and other assets. Investors share the income and capital appreciation from these investments proportional to how many units they hold. Mutual funds offer diversification, professional management, and low costs, making them suitable for common investors. They allow instant diversification across different securities and sectors, reducing transaction costs. However, mutual funds also have costs and may underperform the market.
Equity mutual funds invest in stocks and are classified by market capitalization, investment style, sector/theme, and tax treatment. Large cap funds invest in top companies, while mid and small cap funds involve higher risk but also higher potential returns. Funds are also classified as active, index, sector, thematic, or international based on their investment approach. Choosing the right type of equity fund depends on an investor's goals, risk tolerance, and time horizon. Regular investment, portfolio diversification, and periodic review can help investors achieve superior long-term returns from equity mutual funds.
The document provides an overview of mutual funds, including what they are, how net asset value is calculated, common types of mutual funds, expenses and fees associated with mutual funds, and factors to consider when purchasing and selling mutual funds. It discusses key mutual fund concepts such as returns, risks, performance, and strategies for mutual fund investment.
Mutual Fund
Financial Management (FM)
Graduate School of Management Studies
Gujarat Technological University
Introduction of Mutual Fund
Working of Mutual fund
Benefits Of Investing In Mutual Funds
Limitations of a Mutual Fund
Classification of Mutual Funds
Recent changes in Mutual Fund
DOs & DON'Ts for investing in Mutual Fund schemes
Reference
Mutual funds pool money from investors and invest it in securities like stocks and bonds. Professional fund managers invest the pooled funds to help investors achieve their financial goals. Mutual funds offer investors a way to invest in different asset classes like equities, bonds, and money market funds. Starting investments early and making regular investments over time allows investors to benefit from compound returns and dollar cost averaging.
A mutual fund is a pool of money managed by professionals to invest in securities like stocks and bonds. Investors purchase units of the fund. Benefits include professional management, diversification, liquidity, and flexibility. Fees can be front-end loads or back-end loads. Funds invest in major asset classes like money market, bonds, balanced, dividend, equity, and specialty funds. Performance is measured using models like Treynor, Sharpe, Jensen, and Fama that consider risk-adjusted returns. Mutual funds have grown significantly in India in recent years as more savings are channeled into the sector.
Mutual funds allow investors to pool their money together and invest in a variety of securities like stocks, bonds, and money market instruments. They offer the benefits of diversification and professional management. The document discusses the different types of mutual funds such as equity funds, fixed income funds, and money market funds. It also covers mutual fund fees, risks, performance measurement metrics, and past performance of some Indian mutual funds. The top mutual fund houses in India have been using the market decline in August to buy stocks at attractive prices.
The document discusses how net asset value (NAV) of a mutual fund is determined. It states that NAV is calculated by dividing the total market value of all the securities in the mutual fund's portfolio by the total number of outstanding units. It also notes that short-term mispricing of the underlying securities can result in over- or undervaluation of the mutual fund's NAV, in direct proportion to the mispricing of the securities owned by the fund. The document emphasizes that the price of mutual fund shares is not determined by the forces of supply and demand, but solely by the value of the underlying securities in the fund's portfolio.
A mutual fund is a trust that pools savings from investors who share a common financial goal. The money is invested in securities like stocks, bonds, and other assets. Investors share the income and capital appreciation from these investments proportional to how many units they hold. Mutual funds offer diversification, professional management, and low costs, making them suitable for common investors. They allow instant diversification across different securities and sectors, reducing transaction costs. However, mutual funds also have costs and may underperform the market.
Equity mutual funds invest in stocks and are classified by market capitalization, investment style, sector/theme, and tax treatment. Large cap funds invest in top companies, while mid and small cap funds involve higher risk but also higher potential returns. Funds are also classified as active, index, sector, thematic, or international based on their investment approach. Choosing the right type of equity fund depends on an investor's goals, risk tolerance, and time horizon. Regular investment, portfolio diversification, and periodic review can help investors achieve superior long-term returns from equity mutual funds.
The document provides an overview of mutual funds, including what they are, how net asset value is calculated, common types of mutual funds, expenses and fees associated with mutual funds, and factors to consider when purchasing and selling mutual funds. It discusses key mutual fund concepts such as returns, risks, performance, and strategies for mutual fund investment.
Mutual Fund
Financial Management (FM)
Graduate School of Management Studies
Gujarat Technological University
Introduction of Mutual Fund
Working of Mutual fund
Benefits Of Investing In Mutual Funds
Limitations of a Mutual Fund
Classification of Mutual Funds
Recent changes in Mutual Fund
DOs & DON'Ts for investing in Mutual Fund schemes
Reference
Mutual funds pool money from investors and invest it in securities like stocks and bonds. Professional fund managers invest the pooled funds to help investors achieve their financial goals. Mutual funds offer investors a way to invest in different asset classes like equities, bonds, and money market funds. Starting investments early and making regular investments over time allows investors to benefit from compound returns and dollar cost averaging.
A mutual fund is a pool of money managed by professionals to invest in securities like stocks and bonds. Investors purchase units of the fund. Benefits include professional management, diversification, liquidity, and flexibility. Fees can be front-end loads or back-end loads. Funds invest in major asset classes like money market, bonds, balanced, dividend, equity, and specialty funds. Performance is measured using models like Treynor, Sharpe, Jensen, and Fama that consider risk-adjusted returns. Mutual funds have grown significantly in India in recent years as more savings are channeled into the sector.
A mutual fund is an investment tool that allows small investors access to a well-diversified portfolio by pooling their money. It allows investors to participate in returns from stocks, bonds and other securities. Mutual funds provide benefits like professional fund management, risk spreading through diversification, transparency, liquidity, and choice of funds to match an investor's needs. They allow people with even a few hundred rupees to invest and benefit from equity market returns.
Mutual funds and their importance in financial planningOmkumar Pagarani
Mutual funds pool money from investors to invest in stocks, bonds, and other securities. They offer investors diversification, professional management, and low costs. Mutual funds are an important part of financial planning, as they can help investors meet goals like retirement, education expenses, and other long and short-term needs. Financial planners recommend suitable mutual funds based on an investor's risk profile, investment horizon, and financial objectives.
This document defines and discusses various aspects of investment. It begins by defining investment as committing funds with the goal of earning additional income or appreciation in value over time. It then discusses different types of investments like lending, purchasing gold or insurance.
The document notes that return is expected in the future from investments but is uncertain, and that the variation between expected and realized returns is considered risk. It outlines numerous current investment avenues and defines investment from financial and economic perspectives.
Key characteristics of investments discussed include expected returns, risk, safety, liquidity, and tax benefits. Objectives of investors are described as maximizing returns while minimizing risk and hedging against inflation. The differences between investment, speculation, and gambling are
Hi, here is the presentation that shows how you can make more money from a Debt Mutual Fund over a conventional Fixed Deposit. Invest your 5-10 minutes and you could make thousands of bucks! Make your money more productive!
20-Feb-2016: Updated as per changed tax rules; more useful content added, less useful deleted.
Investments are a great way to allow your money to earn for you. However, to yield the best results, you cannot remain completely uninvolved. These can only be achieved with constant monitoring and fine-tuning of investments. For those who have extensive financial investments, the proper management of these investments could mean the difference between success and failure in the markets. While mutual funds are considered safer than traditional investments owing to their diversity, it’s very important to constantly monitor them with the help. In fact, there are professional financial planners for this purpose. This article will explain the benefits of calculating the NAV of your mutual fund investments with a financial planner.
Mutual fund industry - An Intercontinental Analysistechkaush
The document provides a summary of the mutual fund industry in the United States, China, and India. It discusses the structure and regulations of the mutual fund market in the US, including the types of funds, fees and expenses, taxation, and the top fund management companies. The US mutual fund industry has over $13 trillion in assets, with equity funds making up the majority. Expense ratios for funds have declined since 2002. Vanguard is the largest fund manager in the US.
The document discusses various investment options available to Indian investors including banks, post office schemes, company fixed deposits, and the stock market. It then provides an overview of mutual funds, highlighting their benefits such as professional management, diversification, potential for returns, liquidity, transparency, affordability, and regulation. Mutual funds offer various types of schemes categorized by structure (open-end, closed-end, interval funds) and investment objective (growth, income, balanced, money market, tax saving, industry/sector specific, index funds). The document positions mutual funds as offering several advantages over other investment options for individual investors.
A mutual fund is a pool of money managed by a professional that invests in stocks, bonds, and other securities. It allows small investors to participate in a diversified portfolio. Benefits include professional management, diversification, liquidity, and flexibility. Fees include front-end loads, back-end loads, and management expense ratios. Major asset classes are money market, bond, balanced, dividend, equity, and specialty funds. Equity funds focus on Canadian, US, or international stocks using value, growth, or momentum investment styles.
Mutual funds allow investors to pool their money together into a portfolio that is professionally managed. The key benefits of mutual funds include diversification of risk, professional management, and reduced transaction costs. A mutual fund is made up of a trust that holds the securities in the fund. The trust is managed by a board of trustees and an asset management company. Regulators like SEBI oversee the mutual fund industry in India and work to protect investors. Distribution channels play an important role in helping mutual funds reach retail investors. Agents and brokers are typically compensated through upfront and trail commissions.
Mutual funds pool money from investors and invest it in stocks, bonds, and other securities. Investors can make money from capital appreciation as securities increase in value, dividend/interest income, and income distributions from the fund's profits. Mutual funds are classified as open-ended or close-ended depending on their maturity, and by investment objectives such as growth, income, or balanced funds. Risks include market risk, inflation risk, credit risk, and interest rate risk. Popular mutual funds in India include SBI, ICICI Prudential, HDFC, Birla Sun Life, and Reliance funds.
Mutual funds pool money from many investors and invest it in stocks, bonds, and other securities. The fund is managed by a professional portfolio manager. Investors purchase units or shares of the fund, and their return depends on the performance of the fund's underlying investments. The main advantages of mutual funds are professional management, diversification, affordability, liquidity, and transparency. The main types of mutual funds are open-ended funds, closed-ended funds, growth funds, income funds, balanced funds, and money market funds. Factors to consider when selecting a mutual fund include investment objectives, fees and expenses, fund performance, and services provided.
This document provides an overview of mutual funds in India. It discusses what a mutual fund is, the phases of growth of the mutual fund industry in India since 1964, and the different types of mutual fund schemes. It also outlines some key metrics regarding the growth of assets under management for mutual funds in India, their contribution to GDP and household savings. Some factors driving the growth of mutual funds are discussed as well as certain tax benefits. Some inhibiting factors to growth and future areas of study on mutual fund performance are also mentioned.
The document provides an overview of mutual funds in India. It discusses the key entities involved in a mutual fund structure - sponsors initiate the fund, trustees oversee its operations and appoint the asset management company to manage investments. AMCs appoint other service providers like custodians, registrars, and accountants. The document also categorizes different types of mutual fund schemes based on their operations, returns, and investments. Overall it summarizes the basic concepts, participants, and classifications of mutual funds in India.
This document provides an overview of key concepts related to investment including what investment is, the needs it fulfills, inflation and how it impacts returns, different asset classes and their typical returns, golden rules of investing, steps to take when investing, interest rates and factors that influence them, short-term and long-term financial investment options like savings accounts, fixed deposits, mutual funds, shares, bonds, derivatives and more. The document aims to educate readers on fundamental investment principles.
This document discusses mutual funds, including what they are, their benefits, types of mutual funds, and how to invest in them. A mutual fund is a way for individual investors to pool their money together into a professionally managed investment fund that invests in stocks, bonds, and other securities. The main benefits of mutual funds are professional management, diversification of risk, convenience, and potential tax advantages. There are various types of mutual funds such as equity funds, debt funds, balanced funds, and fund of funds. To invest in a mutual fund, an investor must complete the Know Your Customer process, choose a fund type based on their goals and risk tolerance, select a fund, and set up automatic contributions through a systematic investment plan
This document provides an overview of debt mutual funds. It defines debt mutual funds as funds that invest in debt instruments issued by governments, banks, and corporations to generate regular income for investors. It describes the different types of debt mutual funds such as gilt funds, income funds, and short-term plans. It also outlines the risks associated with debt mutual funds, namely credit risk and interest rate risk, and compares the tax treatment and returns of debt mutual funds versus fixed deposits.
This document discusses managing working capital, including cash, inventory, and accounts receivable. It provides information on key concepts like the cash conversion cycle and cash budget. For the company SKI, it analyzes their cash budget, inventory levels, and accounts receivable collection period, finding that SKI is holding excess cash and inventory and has a longer than average collection period, indicating opportunities to improve working capital management and increase profits.
This module discusses investment planning. It begins by explaining the importance of investment planning in the overall financial planning process. It then covers types of investment products and their associated risks and returns. The module discusses how to evaluate investment choices based on a client's goals and needs. It also explains how to create, monitor, and rebalance client portfolios over time. The module teaches how to recommend an appropriate investment portfolio for a client. It emphasizes that higher potential returns generally come with higher risks. Throughout, the module focuses on balancing risks and returns for clients based on their individual risk tolerance and time horizons.
The document summarizes the findings of a survey conducted to understand awareness and preferences around mutual funds among existing ICICI direct customers in Udaipur. Key findings include: 60% had awareness of mutual funds while 40% did not, with 99% preferring online investment. The top reasons for not investing in mutual funds were needing assistance (23%) and needing more knowledge (23%). Suggestions to increase mutual fund investment included customer education, providing regular market information, building relationships, and competitive broking charges schemes. The conclusion notes huge opportunities for mutual funds in Udaipur exist but competition is intense and wrong perceptions need addressing.
This document provides information about mutual funds including their structure, types, history in India, advantages and disadvantages. It discusses that a mutual fund is a trust that collects money from investors and invests in stocks, bonds, money market instruments and other securities. The document outlines the key entities involved in mutual funds like sponsors, trustees, asset management companies, custodians and various distribution channels. It also summarizes the different types of mutual fund schemes and provides a brief history of mutual funds in India from 1964 to the present.
A mutual fund is an investment tool that allows small investors access to a well-diversified portfolio by pooling their money. It allows investors to participate in returns from stocks, bonds and other securities. Mutual funds provide benefits like professional fund management, risk spreading through diversification, transparency, liquidity, and choice of funds to match an investor's needs. They allow people with even a few hundred rupees to invest and benefit from equity market returns.
Mutual funds and their importance in financial planningOmkumar Pagarani
Mutual funds pool money from investors to invest in stocks, bonds, and other securities. They offer investors diversification, professional management, and low costs. Mutual funds are an important part of financial planning, as they can help investors meet goals like retirement, education expenses, and other long and short-term needs. Financial planners recommend suitable mutual funds based on an investor's risk profile, investment horizon, and financial objectives.
This document defines and discusses various aspects of investment. It begins by defining investment as committing funds with the goal of earning additional income or appreciation in value over time. It then discusses different types of investments like lending, purchasing gold or insurance.
The document notes that return is expected in the future from investments but is uncertain, and that the variation between expected and realized returns is considered risk. It outlines numerous current investment avenues and defines investment from financial and economic perspectives.
Key characteristics of investments discussed include expected returns, risk, safety, liquidity, and tax benefits. Objectives of investors are described as maximizing returns while minimizing risk and hedging against inflation. The differences between investment, speculation, and gambling are
Hi, here is the presentation that shows how you can make more money from a Debt Mutual Fund over a conventional Fixed Deposit. Invest your 5-10 minutes and you could make thousands of bucks! Make your money more productive!
20-Feb-2016: Updated as per changed tax rules; more useful content added, less useful deleted.
Investments are a great way to allow your money to earn for you. However, to yield the best results, you cannot remain completely uninvolved. These can only be achieved with constant monitoring and fine-tuning of investments. For those who have extensive financial investments, the proper management of these investments could mean the difference between success and failure in the markets. While mutual funds are considered safer than traditional investments owing to their diversity, it’s very important to constantly monitor them with the help. In fact, there are professional financial planners for this purpose. This article will explain the benefits of calculating the NAV of your mutual fund investments with a financial planner.
Mutual fund industry - An Intercontinental Analysistechkaush
The document provides a summary of the mutual fund industry in the United States, China, and India. It discusses the structure and regulations of the mutual fund market in the US, including the types of funds, fees and expenses, taxation, and the top fund management companies. The US mutual fund industry has over $13 trillion in assets, with equity funds making up the majority. Expense ratios for funds have declined since 2002. Vanguard is the largest fund manager in the US.
The document discusses various investment options available to Indian investors including banks, post office schemes, company fixed deposits, and the stock market. It then provides an overview of mutual funds, highlighting their benefits such as professional management, diversification, potential for returns, liquidity, transparency, affordability, and regulation. Mutual funds offer various types of schemes categorized by structure (open-end, closed-end, interval funds) and investment objective (growth, income, balanced, money market, tax saving, industry/sector specific, index funds). The document positions mutual funds as offering several advantages over other investment options for individual investors.
A mutual fund is a pool of money managed by a professional that invests in stocks, bonds, and other securities. It allows small investors to participate in a diversified portfolio. Benefits include professional management, diversification, liquidity, and flexibility. Fees include front-end loads, back-end loads, and management expense ratios. Major asset classes are money market, bond, balanced, dividend, equity, and specialty funds. Equity funds focus on Canadian, US, or international stocks using value, growth, or momentum investment styles.
Mutual funds allow investors to pool their money together into a portfolio that is professionally managed. The key benefits of mutual funds include diversification of risk, professional management, and reduced transaction costs. A mutual fund is made up of a trust that holds the securities in the fund. The trust is managed by a board of trustees and an asset management company. Regulators like SEBI oversee the mutual fund industry in India and work to protect investors. Distribution channels play an important role in helping mutual funds reach retail investors. Agents and brokers are typically compensated through upfront and trail commissions.
Mutual funds pool money from investors and invest it in stocks, bonds, and other securities. Investors can make money from capital appreciation as securities increase in value, dividend/interest income, and income distributions from the fund's profits. Mutual funds are classified as open-ended or close-ended depending on their maturity, and by investment objectives such as growth, income, or balanced funds. Risks include market risk, inflation risk, credit risk, and interest rate risk. Popular mutual funds in India include SBI, ICICI Prudential, HDFC, Birla Sun Life, and Reliance funds.
Mutual funds pool money from many investors and invest it in stocks, bonds, and other securities. The fund is managed by a professional portfolio manager. Investors purchase units or shares of the fund, and their return depends on the performance of the fund's underlying investments. The main advantages of mutual funds are professional management, diversification, affordability, liquidity, and transparency. The main types of mutual funds are open-ended funds, closed-ended funds, growth funds, income funds, balanced funds, and money market funds. Factors to consider when selecting a mutual fund include investment objectives, fees and expenses, fund performance, and services provided.
This document provides an overview of mutual funds in India. It discusses what a mutual fund is, the phases of growth of the mutual fund industry in India since 1964, and the different types of mutual fund schemes. It also outlines some key metrics regarding the growth of assets under management for mutual funds in India, their contribution to GDP and household savings. Some factors driving the growth of mutual funds are discussed as well as certain tax benefits. Some inhibiting factors to growth and future areas of study on mutual fund performance are also mentioned.
The document provides an overview of mutual funds in India. It discusses the key entities involved in a mutual fund structure - sponsors initiate the fund, trustees oversee its operations and appoint the asset management company to manage investments. AMCs appoint other service providers like custodians, registrars, and accountants. The document also categorizes different types of mutual fund schemes based on their operations, returns, and investments. Overall it summarizes the basic concepts, participants, and classifications of mutual funds in India.
This document provides an overview of key concepts related to investment including what investment is, the needs it fulfills, inflation and how it impacts returns, different asset classes and their typical returns, golden rules of investing, steps to take when investing, interest rates and factors that influence them, short-term and long-term financial investment options like savings accounts, fixed deposits, mutual funds, shares, bonds, derivatives and more. The document aims to educate readers on fundamental investment principles.
This document discusses mutual funds, including what they are, their benefits, types of mutual funds, and how to invest in them. A mutual fund is a way for individual investors to pool their money together into a professionally managed investment fund that invests in stocks, bonds, and other securities. The main benefits of mutual funds are professional management, diversification of risk, convenience, and potential tax advantages. There are various types of mutual funds such as equity funds, debt funds, balanced funds, and fund of funds. To invest in a mutual fund, an investor must complete the Know Your Customer process, choose a fund type based on their goals and risk tolerance, select a fund, and set up automatic contributions through a systematic investment plan
This document provides an overview of debt mutual funds. It defines debt mutual funds as funds that invest in debt instruments issued by governments, banks, and corporations to generate regular income for investors. It describes the different types of debt mutual funds such as gilt funds, income funds, and short-term plans. It also outlines the risks associated with debt mutual funds, namely credit risk and interest rate risk, and compares the tax treatment and returns of debt mutual funds versus fixed deposits.
This document discusses managing working capital, including cash, inventory, and accounts receivable. It provides information on key concepts like the cash conversion cycle and cash budget. For the company SKI, it analyzes their cash budget, inventory levels, and accounts receivable collection period, finding that SKI is holding excess cash and inventory and has a longer than average collection period, indicating opportunities to improve working capital management and increase profits.
This module discusses investment planning. It begins by explaining the importance of investment planning in the overall financial planning process. It then covers types of investment products and their associated risks and returns. The module discusses how to evaluate investment choices based on a client's goals and needs. It also explains how to create, monitor, and rebalance client portfolios over time. The module teaches how to recommend an appropriate investment portfolio for a client. It emphasizes that higher potential returns generally come with higher risks. Throughout, the module focuses on balancing risks and returns for clients based on their individual risk tolerance and time horizons.
The document summarizes the findings of a survey conducted to understand awareness and preferences around mutual funds among existing ICICI direct customers in Udaipur. Key findings include: 60% had awareness of mutual funds while 40% did not, with 99% preferring online investment. The top reasons for not investing in mutual funds were needing assistance (23%) and needing more knowledge (23%). Suggestions to increase mutual fund investment included customer education, providing regular market information, building relationships, and competitive broking charges schemes. The conclusion notes huge opportunities for mutual funds in Udaipur exist but competition is intense and wrong perceptions need addressing.
This document provides information about mutual funds including their structure, types, history in India, advantages and disadvantages. It discusses that a mutual fund is a trust that collects money from investors and invests in stocks, bonds, money market instruments and other securities. The document outlines the key entities involved in mutual funds like sponsors, trustees, asset management companies, custodians and various distribution channels. It also summarizes the different types of mutual fund schemes and provides a brief history of mutual funds in India from 1964 to the present.
This document summarizes a study on consumer preferences for equity mutual funds offered by Centurion Bank of Punjab in India. It includes an acknowledgements section, tables of contents listing 30 tables and charts, an introduction on mutual funds describing their benefits like professional management, diversification and daily pricing. It also describes the four basic types of mutual funds and their key features.
The document compares the performance of 8 equity mutual funds over various time periods ranging from 1 month to 5 years. It finds that HDFC Top 200 performed best over 1 month, while HDFC Equity had the highest returns over 6 months. Reliance Regular Savings Equity achieved the highest returns over 5 years. Birla Sun Life Dividend Yield Plus had the lowest risk and highest risk-adjusted returns, as measured by its beta, standard deviation, and Sharpe ratio. The document recommends investors assess their risk profile, select funds with good past performance and low volatility, and maintain a diversified portfolio for long-term growth.
1. Kotak 50 (G) is a large cap open-ended fund that ranks 3rd with assets of Rs. 719.67 cr as of Jun-30-2013. It has an inception date of 22-Dec-98 and benchmarks against S&P CNX Nifty with a minimum investment of Rs. 5000.
2. ICICI Prudential Top 100 Fund (G) is a large cap fund with an alpha of 0.01 and beta of 0.82 for 1 year.
3. SBI Magnum Midcap Fund (G) had an alpha of 0.6 and beta of
A comparative study on investing in equity and mutual fund schemesAsif Hussain Shaikh
This document summarizes a study comparing investments in equity shares and mutual fund schemes. The study aims to create awareness for investors about the risks, returns, liquidity, and marketability of different investment options. Specifically, the study seeks to compare the risk and return of equity shares and mutual funds, analyze their performance against benchmarks, calculate the volatility of shares using beta, and outline the pros and cons of investing in each. The analysis focuses on 5 randomly selected stocks and 5 mutual funds, examining their share prices and net asset values over time.
Market risk and investment performance of equity mutual funds in indiaSubhodeep Bandopadhyay
This study analyzes the performance of 21 Indian equity mutual funds compared to the BSE Sensex stock market index over 5 years. Statistical analysis was conducted on the funds' average returns, absolute returns, risk levels, and how closely their performance correlated with the market. Most funds showed similar returns to the market, except during late 2005/early 2006. A statistical test found one fund's returns varied significantly from the market. Funds were also classified into clusters based on their characteristics. The study aims to compare fund and market performance and determine if returns were driven by market movements or individual fund management.
This document contains an outline of chapters for a project report on comparing direct equity investments and mutual funds. It includes chapters on the rationale, objectives, literature review, scope of study, research design, findings and analysis, conclusion and limitations. The literature review section discusses various investment avenues in India such as bank deposits, post office schemes, public provident funds, company fixed deposits, stocks, bonds, money market instruments, mutual funds, life insurance, real estate, precious objects and financial derivatives. It also compares direct equity investments and mutual funds, providing brief introductions to equity shares and mutual funds.
This document discusses the benefits of systematic investment plans (SIPs) for achieving financial goals like retirement, children's education, and family commitments. SIPs allow investors to invest small monthly amounts that benefit from the power of compounding over the long term. Equity investments through SIPs are ideal for meeting long-term goals since equities have historically offered higher returns than other asset classes. Regular investing through SIPs also reduces market timing risk. The document provides examples of the monthly investments needed through SIPs to achieve common financial goals like retirement and children's education to demonstrate how SIPs can help investors achieve their goals.
The document discusses mutual funds, providing definitions and explaining the structure and key participants. A mutual fund is an investment vehicle that pools money from investors to purchase securities like stocks and bonds. The structure involves a fund sponsor, trustees, an asset management company, custodian, and distributors. The document outlines the roles and responsibilities of these participants, as well as the history and types of mutual funds.
A project report on comparative study of mutual funds in indiaProjects Kart
The document is a project report on a comparative study of mutual funds in India. It includes sections on the introduction of mutual funds, their history in India, advantages, and types of mutual funds. The report provides an overview of the mutual fund industry in India and aims to study some prominent mutual fund companies and their schemes.
Portfolio Management Services in Mutual FundsBinu Paul
A detailed study Portfolio Management services in Mutual Funds which give special emphasis on creation of Portfolio’s as different types of Investors, Portfolio Revision as per various plans, Calculation of returns and Comparison of Mutual Funds with various Performance measure
I have found all primary data and secondary data for this project by my own efforts and the all data are 100% true according to my summer internship experience..Thanks
The Best Startup Investor Pitch Deck & How to Present to Angels & Venture Cap...J. Skyler Fernandes
Take the online video course on Udemy:
https://www.udemy.com/course/the-best-startup-investor-pitch-deck/?referralCode=A5ED0FBD65120A93A16E
3.5+hrs of video content, walking step by step each part of the pitch, with personal VC stories, examples, and advice.
The "Best" Startup Investor Pitch Deck is an aggregation of some of the best pitch decks and wisdom from some of the top angels, VCs, and entrepreneurs including my own person insight/experience. The slide deck includes a template for entrepreneurs to use to present to investors, with details on what should be addressed on each slide. There are also additional slides on how best to pitch to investors effectively, how to design and format slides, and what to do before the pitch.
This document discusses performance measures for mutual funds in Pakistan from 2018 to 2021. It provides the annual returns and risk measures for 9 mutual funds over this period. Key performance metrics calculated include Sharp Ratio, Sortino Ratio, and Alpha. The Sharp Ratios show that 3 of the funds had "very good" performance above 2.0, while the rest ranged from "sub-optimal" to "acceptable". The document analyzes the risk-adjusted performance of these mutual funds over the given time period using standard risk and return measures.
The document provides guidance on investment analysis and project selection. It discusses measuring risk and return, using hurdle rates that account for risk, and choosing projects that provide returns above the hurdle rate. The capital asset pricing model is introduced as a method to estimate expected returns based on beta and the risk premium. Diversification and the market portfolio concept are also covered.
IDFC Overnight Fund_Key information memorandumIDFCJUBI
The document provides a key information memorandum for the IDFC Overnight Fund, an open-ended debt scheme investing in overnight securities. The fund seeks to generate short term optimal returns in line with overnight rates and high liquidity by predominantly investing in money market and debt instruments with a maturity of 1 day. It aims to offer an investment avenue for short term savings. The fund carries risks associated with investing in debt markets like market risk, liquidity risk and credit risk which it manages through strategies like increasing allocation to money market securities in rising interest rate scenarios.
IDFC Overnight Fund_Key information memorandumJubiIDFCDebt
The document provides key information about the IDFC Overnight Fund, an open-ended debt scheme investing in overnight securities. It summarizes the investment objective as generating short term optimal returns in line with overnight rates and high liquidity. The asset allocation includes debt and money market securities with residual maturity of 1 business day between 0-100%. It also outlines the plans and options available, minimum investment amounts, risk factors and expenses associated with the scheme.
This document discusses key concepts related to investment risk and returns. It defines investments, returns, and different types of returns including expected, required, actual, and market rates of return. It also discusses different types of risk like standalone and portfolio risk. Models for evaluating risk and return are covered, including the Capital Asset Pricing Model (CAPM) and Security Market Line (SML). The SML plots expected returns based on levels of systematic risk and can be used to identify overvalued and undervalued investments. Changes to the SML impact expected returns and the cost of capital for companies.
IDFC Regular Savings Fund_Key information memorandumJubiIdfcHybrid
- The IDFC Regular Savings Fund is an open-ended hybrid scheme that invests predominantly in debt instruments.
- The primary objective is to generate regular returns through investment predominantly in debt instruments. The secondary objective is to generate long-term capital appreciation by investing a portion in equity securities.
- It aims to provide regular income and capital appreciation over medium to long term through investment predominantly in debt and money market instruments with balance exposure to equity.
IDFC Regular Savings Fund_Key information memorandumIDFCJUBI
- The IDFC Regular Savings Fund is an open-ended hybrid scheme that invests predominantly in debt instruments.
- The primary objective is to generate regular returns through investment predominantly in debt instruments. The secondary objective is to generate long-term capital appreciation by investing a portion in equity securities.
- It aims to provide regular income and capital appreciation over medium to long term through investment predominantly in debt and money market instruments with balance exposure to equity.
Mutual funds are investment vehicles that allow investors to pool their money together into a portfolio of securities like stocks, bonds, and other assets. The key advantages of mutual funds are diversification of risk, professional management, low minimum investment amounts, and liquidity. The average assets under management of the Indian mutual fund industry has grown over 3.5 times in the last 10 years and over 2.5 times in the last 5 years, reaching Rs. 26.33 trillion as of October 2019. Mutual funds are structured as trusts that have sponsors, trustees, asset management companies, and unit holders. The main types of mutual funds are based on their investment objectives such as income, balanced, equity, and other criteria. Performance is
Many investors mistakenly base the success of their portfolios on returns alone. Few consider the risk that they took to achieve those returns. Since the 1960s, investors have known how to quantify and measure risk with the variability of returns, but no single measure actually looked at both risk and return together. Today, we have three sets of performance measurement tools to assist us with our portfolio evaluations. The Treynor, Sharpe and Jensen ratios combine risk and return performance into a single value, but each is slightly different. Which one is best for you? Why should you care? Let's find out.
Portfolio performance measures should be a key aspect of the investment decision process. These tools provide the necessary information for investors to assess how effectively their money has been invested (or may be invested). Remember, portfolio returns are only part of the story. Without evaluating risk-adjusted returns, an investor cannot possibly see the whole investment picture, which may inadvertently lead to clouded investment decisions.
This document provides an introduction to corporate finance concepts. It outlines different types of risk exposure, the topics that will be covered in the course, and what managerial finance entails. The course will focus on time value of money, risk and return, cost of capital, and business valuation. It defines key terms like the cash conversion cycle and discusses metrics like beta, covariance, and standard deviation that are used to measure risk. Formulas for present and future value, return, and the Capital Asset Pricing Model are also presented.
This document discusses international capital budgeting and asset liability management. It begins by defining international capital budgeting and outlining some of the additional complexities involved compared to domestic capital budgeting, such as impacts on cash flow computation and required rates of return. It then discusses various capital budgeting evaluation criteria including discounted and non-discounted methods. It also covers factors affecting international capital budgeting like project, market, and international risk. Finally, it defines asset liability management and discusses its objectives to manage risks from asset and liability mismatches.
This document discusses various financial ratios used for analyzing the financial statements of a business. It begins by defining key components of a balance sheet such as assets, liabilities, equity, current assets and current liabilities. It then explains over 20 different types of financial ratios categorized as liquidity ratios, activity ratios, leverage ratios, profitability ratios and market ratios. Specific formulas to calculate ratios such as current ratio, debt equity ratio, return on equity, earnings per share etc. are provided. Several examples are given to showcase calculation of various ratios from sample financial statement information. The document serves as a comprehensive reference guide for understanding and analyzing important financial ratios.
This document discusses various methods of measuring risk, including variance, standard deviation, skewness, kurtosis, and the components of risk such as project-specific risk, competitive risk, industry risk, market risk, and international risk. It then discusses the capital asset pricing model (CAPM) and how it uses beta to measure non-diversifiable risk and translate that into an expected return. The document provides an example of estimating beta for Disney stock.
This document discusses capital budgeting and the capital budgeting process. It covers key steps like generating investment ideas, analyzing proposals using techniques like net present value, internal rate of return, and payback period. It also discusses types of capital projects, rules of analysis, and definitions. The second half covers cost of capital, including costs of equity, debt, and preferred stock. It provides examples of calculating these costs and weighted average cost of capital (WACC), which weights the costs based on the firm's target capital structure.
This document defines key concepts related to portfolio management including portfolio, portfolio analysis, construction, and evaluation. A portfolio is a combination of different financial securities like stocks, bonds, and cash held by investors. Portfolio management involves identifying objectives, developing strategies, monitoring performance, and evaluating results. Portfolio analysis assesses the risks of an entity's business areas. Construction requires determining objectives and formulating investment strategies. Evaluation models like Sharpe ratio, Treynor ratio, and Jensen measure are used to assess risk-adjusted performance.
The document discusses the Discounted Cash Flow (DCF) method for valuing investments. It covers key aspects of DCF including forecasting cash flows over different periods, calculating the weighted average cost of capital, and discounting future cash flows to determine present value. It also explains the differences between the debt-free and leveraged/equity DCF methods in terms of adjusting for a company's capital structure.
This document provides a summary of key concepts in corporate finance, including:
1) Sources of corporate funding and capital structure, capital expenditures, and tools used for allocating funds. Key goals are investing and financing.
2) Investing involves forgoing current consumption for future returns. Financing examines return ratios like ROCE, ROE, and ROIC from different perspectives.
3) Tools used in corporate finance include NPV, IRR, payback period, and leverage. Equity valuation methods include free cash flow, NPV, IRR, relative valuation, and payback period. Modern portfolio theory examines efficient diversification of risk.
IDFC Money Manager Fund_Key information memorandumIDFCJUBI
The document provides key information about the IDFC Money Manager Fund, an open-ended debt scheme that invests predominantly in money market instruments. The objective is to generate stable returns with low risk by investing in such short-term debt securities. It aims to provide short-term optimal returns with relative stability and high liquidity. The principal will be at moderately low risk. The fund focuses on investing in money market instruments with maturity of up to one year.
IDFC Money Manager Fund_Key information memorandumJubiIDFCDebt
The document provides key information about the IDFC Money Manager Fund, an open-ended debt scheme that invests predominantly in money market instruments. The fund aims to generate stable returns with low risk by investing substantially in short-term debt and money market securities. It predominantly invests in instruments with maturity of up to one year, including treasury bills and commercial paper. The fund benchmarks its performance against the Nifty Money Market Index.
Similar to Analysing_an_Equity_Mutual_Fund_Fact_Sheet_Risk_&_Performance_Parameters (1) (20)
1. Analyzing an Equity Mutual Fund Fact
Sheet, Risk & Performance Parameters
February, 2012
2. Fact Sheet
• Important items in a Fact Sheet
– Manager Review and Outlook ( Macro-Economic Review, Equity market overview and outlook, Fixed Income overview and outlook)
– Fund Manager’s profile
– Scheme Details ( Investment objective, Inception date, NAV, AUM, Minimum investment amount, Loads and Expense ratio,
Redemption process)
– Performance
– Portfolio and asset Allocation
– Risk Statistics
3. Market Overview & Outlook
This section equips you
with the broader macro-
economic parameters and
updates with the overview
and outlook of Equity and
Fixed Income Market
Disclaimer: This is for illustrative purpose only and no investment decision should be made from it .There could be various sources for the above information.
4. How to Read a Fact Sheet
The investment objective
provides an overview of the
scheme to the prospective
investor i.e. investing for
growth, income or capital
protection as stated in the SID
of the respective scheme
Sector wise break down of
the portfolio and gives the
percentage holding in
respective sector
It gives the proportion of assets
allocated to different classes
such as debt, equity or money
market instrument stated in the
SID of the respective scheme.
Net Asset Value (NAV) is the
value per unit at current market
prices computed as net assets
divided by units outstanding
It lists the individual stocks in which the
fund has invested its corpus. The
market value and percentage of net
assets hold by the fund is also
mentioned.
Size of the fund
Key portfolio statistics or performance ratios
should be used to screen and compare mutual
funds to find those are worthy of consideration for
inclusion in ones portfolio
Fund Manager profile and
experience
Ranking by rating agencies
5. Value of Investment of Rs 10,000
made at inception
Scheme Benchmark
NAV of scheme as of month end
Standard Benchmark
Performance & Dividend History
Disclaimer: This is for illustrative purpose only and no investment decision should be made from it. Past performance may or may not be sustained in future and should not be used as a basis for
comparison with other investments.
Period for which the performance of the
scheme is mentioned against its benchmark
and standard benchmark
Investors may note that the difference in dividend per unit for 'Individuals'
and 'Others', in the case of debt oriented Schemes, is due to differential
rate of applicable Dividend Distribution Tax (DDT)
Pursuant to payments of dividend, the NAV of the Schemes would fall
to the extent of payout, and statutory levy, if any
6. Risk & Performance Parameters
• Portfolio Turnover Ratio
• Volatility measure
– Standard deviation
– Beta
– R-Square
• Sharpe Ratio
7. Portfolio Turnover Ratio
• Portfolio turnover is the ratio of amount of sales or purchases ( which ever is lower ) divided by the net asset of the
fund.
• E.g. Suppose the net asset value of a scheme in the last 12 months is 100 Cr. The value of the total purchase amount
is 50 Cr which is lower of sales and purchase during the same period. The Turn over ratio is 50 Cr/100 Cr = 0.50 or
50%. This indicates that fund manager has shuffled 50% of the portfolio in the last one year.
• Higher the portfolio turnover, greater the amount of sales or purchase of assets done by fund manager. It may also
indicate timing and momentum trading as strategies to generate return.
• Turnover ratio would be most relevant to analyze in case of equity and balanced fund, particularly those funds that
derive large party of their income from actively trading. It would not be relevant for equity funds, with a value based,
long term investment philosophy.
8. Volatility Measures
• Volatility is the relative rate at which the price of a security moves up and down. If the price of a stock moves up and
down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility.
• Volatility is an inherent part of all securities market
• Normally fact sheet of mutual funds scheme carries the following measures
– Standard Deviation
– Beta
– R-Square
Consider Scheme A and Scheme B over the given period of time.
Scheme A is more volatile in nature than scheme B
9. Standard Deviation
• Standard deviation measures the fluctuation of a fund’s return around a mean
• Higher the standard deviation, riskier the security
• Standard deviation gives an idea of how volatile the earnings are.
The above example is just for illustrative purpose.
10. Beta
• Beta measures the sensitivity of a portfolio against its benchmark. Its is also called the sensitivity with respect to the
market movement.
• Equity funds can have beta values as 1, >1 or <1.
• Beta of 1.0 indicates that the fund NAV will move in same direction as that of benchmark index. The fund will move up
and down in tandem with the movement of the markets (as indicated by the benchmark)
• A Beta of less than 1.0 indicates that the fund NAV will be less volatile than the benchmark index.
• A Beta of more than 1.0 indicates that the investment will be more volatile than the benchmark index. It is an
aggressive fund that will move up more than the benchmark, but the fall will also be steeper.
For example, if the beta of XYZ-Equity (G) fund is 1.2 - then it’s considered as 20% more volatile than the benchmark
index (beta of benchmark index being 1). If the market is expected to move up by ten per cent, the fund should move
by 12 per cent (obtained as 1.2 multiplied by 10). Similarly if the market loses ten per cent, the fund should lose 12 per
cent (obtained as 1.2 multiplied by minus 10)
Similarly, if the beta of “ABC-Equity (G)” fund as 0.70 - this means the mutual fund scheme will be less volatile than its
benchmark index.
11. R- Squared
• R Square is an indicator of the confidence in estimating Beta.
• While considering the beta of any fund, an investor also needs to consider ‘R-squared’ that measures the correlation
between beta and its benchmark index. The beta of a fund has to be seen in conjunction with the R-squared for better
understanding the risk of the fund.
• In other words R-Square indicated how closely the fund’s performance correlates to its benchmark.
• R-Squared value ranges between 0 to 1
• R-squared=0 indicated no correlation and R-squared=1 indicates perfect correlation.
12. Sharpe Ratio
• Sharpe Ratio measures the excess return that a fund has generated relative to the risk taken.
• Risk in Sharpe ratio is measured by standard deviation.
• Sharpe Ratio= (Rp-Rf)/ Standard deviation. It measures the excess return over risk free return for a unit of risk taken
( Rp : Return of the portfolio ; Rf : risk free return)
• The higher the Sharpe ratio , the better a fund’s return relative to the amount of risk taken. A mutual fund with a higher
SR is better because it implies that it has generated higher returns for every unit of risk that was taken. On the
contrary, a negative Sharpe ratio indicates that a risk-free asset would perform better than the fund being analyzed.
Consistent Performer Lower standard deviation, higher Sharpe Ratio ( Higher Ranked Fund)
Volatile Performer Higher standard deviation, Lower Sharpe Ratio ( Lower Ranked Fund)
Mutual Fund Evaluation Criteria
13. • The expenses incurred in managing a mutual fund scheme, which is borne by the investor.
• Those expenses include investment management and advisory fees, legal and audit fees, custodial and transfer fees,
fund administration expenses, marketing, and other costs of offering the fund .
• SEBI regulates over the maximum expenses that can be charged to the schemes.
• Assuming that an equity scheme generating 15% returns has net assets of Rs 100 crore. With the operating expense
ratio at 2.50%, the effective return would be 12.5% (i.e. 15-2.5).
Expense Ratio
Net Assets Equity Scheme
First Rs 100 Cr 2.50%
Next Rs 300 Cr 2.25%
Next rs 300 Cr 2.00%
On the balance of Assets 1.75%
14. Tutorial
Assuming other parameters remain same, which Scheme would you choose?
Option A- ABC Equity (G) OR Option B- XYZ equity (G)
Disclaimer: The above example is just for illustrative purpose and is not meant to represent the performance of any particular investments
Scheme Return Risk Free Return Standard Deviation
ABC Equity (G) 22% 6% 24.60%
XYX Equity (G) 20% 6% 22.10%
There are two equity schemes with similar investment objectives.
15. Tutorial
• Sharpe ratio of ABC= (22-6)/24.60=0.65
• Sharpe ratio of XYZ = (20-6)/22.10=0.63
Expense ratio for both the scheme is same.
Therefore the risk adjusted return is better for scheme ABC and hence choose option A.
Disclaimer: The above example is just for illustrative purpose and is not meant to represent the performance of any particular investments
16. Disclaimer
Statutory Details: DSP BlackRock Mutual Fund was set up as a Trust and the settlors/sponsors are DSP ADIKO Holdings Pvt. Ltd. & DSP HMK Holdings Pvt. Ltd.
(collectively) and BlackRock Inc. (Combined liability restricted to Rs. 1 lakh). Trustee: DSP BlackRock Trustee Company Pvt. Ltd. Investment Manager: DSP BlackRock
Investment Managers Pvt. Ltd. Risk Factors: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that
the Scheme’s objectives will be achieved. As with any investment in securities, the NAV of Units issued under the Schemes can go up or down depending on the
factors and forces affecting capital markets. Past performance of the sponsor/AMC/mutual fund does not indicate the future performance of the Schemes.
Investors in the Schemes are not being offered a guaranteed or assured rate of return. Investors in the Schemes are not being offered a guaranteed or assured rate of
return. The Schemes is required to have (i) minimum 20 investors and (ii) no single investor holding>25% of the corpus of the Schemes. In case of non-fulfillment of the
condition of minimum 20 investors, the investor’s money would be refunded, in full, immediately after the close of the New Fund Offer Period. In case of non-fulfillment with
the condition of 25% holding by a single investor on the date of allotment, the application to the extent of exposure in excess of the 25% limit would be rejected, and the
allotment would be effective only to the extent of 25% limit would be refunded/redeemed. The name of the Scheme do not in any manner indicate the quality of the
Schemes, its future prospects or returns. For Scheme specific risk factors, please refer the relevant SID. For more details, please refer the Key Information Memorandum
cum Application Forms, which are available on the website, www.dspblackrock.com, and at the ISCs/Distributors.. Please read the Scheme Information Document and
Statement of Additional Information carefully before investing.