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Mutual fund
The document provides an overview of mutual funds, emphasizing their structure, benefits such as professional management and diversification, as well as limitations like lack of customization. It discusses recent changes in mutual fund regulations and outlines recommended dos and don'ts for potential investors. The content aims to educate readers on making informed investment decisions regarding mutual funds.
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Mutual fund
- 1. Mutual Fund Presented by: GroupNo. 7 Deep Shah 47 Janaki Vara 59 Pranav veerani 60 Guided by: Dr. Sarika Srivastava Assistant Professor GSMS, GTU Graduate School of Management Studies Financial Management (FM) Gujarat Technological University
- 2. ➔ Introduction ofMutual 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
- 3. Introduction of Mutual Fund •Amutual fund is a basket of various investments, such as stocks, bonds, and cash. A mutual fund is funded by the investments of individual investors and institutions. •Mutual funds assist in Earning Income or Building Wealth •Utilise the knowledge and experience of a professional fund management team •Benefit from the economies of scale
- 4. MF – Riskvs Reward
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- 6. Benefits Of Investing In MutualFunds ➔ Professional Management ➔ Affordable Portfolio Diversification ➔ Economies of Scale ➔ Liquidity ➔ Tax Deferral ➔ Tax benefits ➔ Investment Comfort ➔ Regulatory Comfort ➔ Systematic Approach to Investments
- 7. Limitations of aMutual Fund ➔ Lack of portfolio customization ➔ Choice overload ➔ No control over costs
- 8. Key Constituents OfA Mutual Fund
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- 10. Recent changes in Mutual Fund ●Long-term capital gain taxation on Equity Mutual funds ● Dividend distribution tax on Equity Mutual funds ● Disclosures on TER ● Benchmarking with Total Return Index ● Rationalization and Categorization of Mutual funds schemes
- 11. DOs for investing in MutualFund schemes ● Read the offer document carefully before investing ● Investments in mutual funds may be risky, and do not necessarily result in gains ● Invest in a scheme depending upon your investment objective and risk appetite ● Note that past performance of a scheme or a fund is not indicative of the scheme's or the fund's future performance. Past performance may or may not be sustained in the future ● Keep regular track of the NAV of the schemes in which you have invested ● Ensure that you receive an account statement for your investments/ redemptions
- 12. DON'Ts for investing in mutualfund schemes ❖ Don't invest in a scheme just because somebody is offering you a commission or some other incentive, gift etc. ❖ Don't get carried away by the name of the scheme/ mutual fund ❖ Don't be guided solely by the past performance of a scheme/ fund ❖ Don't forget to take note of the risks involved in the investment ❖ Don't hesitate to approach the proper authorities for redressed of your doubts/ grievances. ❖ Don't deal with any agent/broker dealer who is not registered with AMFI(Association of Mutual Funds in India)
- 13. Mutual Fund InvestmentsAre Subject To Market Risks, Read All Scheme Related Documents Carefully.
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