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A SMALL PRESENTATION 
ON, 
MUTUAL FUND 
PRESENTED BY, 
VIDYADHARA.G
LEARNING OUTCOMES 
What is mutual fund. 
Concept of Mutual funds. 
TYPES OF MUTUAL FUNDs 
Objectives 
Advantages 
disadvantages 
Buying A mutual fund. 
Services offered by mutual funds
What is… 
MUTUAL 
FUND
MUTUAL FUND 
A mutual fund is a professionally 
managed type of collective 
investment scheme that pools 
money from many investors to buy 
stocks, bonds, short-term money 
market instruments, and/or other 
securities. 
Blah.. 
Bla bla…
Concept of Mutual funds 
A Mutual Fund is a trust that pools the savings of a number 
of investors who share a common financial goal. 
The income earned through these investments and the 
capital appreciation realized are shared by its unit holders in 
proportion to the number of units owned by them. 
 Thus a Mutual Fund is the most suitable investment for the 
common man as it offers an opportunity to invest in 
diversified professionally managed basket of securities at a 
relatively low cost.
Cycle of Mutual Fund 
.
TYPES OF MUTUAL FUNDs 
Mutual 
Funds 
By Maturity 
Period 
Open 
ended 
Close 
ended 
By Investment 
Objective 
Equity 
Balance 
fund 
Income 
Gilt 
fund 
Money 
market 
Index 
fund
Maturity period 
A)Open ended 
 Subscription and repurchase on continuous 
basis . 
Does not have fixed maturity period 
B)Close ended 
Stipulated maturity period
Investment objective 
Equity 
• To provide capital appreciation over the medium to long-term 
• High risk 
Income 
• Regular and steady income to investors. 
• Bonds, corporate debentures, Government securities and 
money market instruments.
Investment objective 
Balance fund 
• Provide both growth and regular income 
• Equities and fixed income securities 
Money market 
• To provide easy liquidity, preservation of capital and 
moderate income 
• Treasury bills, commercial paper and government 
securities, etc.
Investment objective` 
Gilt fund 
• In government securities. 
• No default risk. 
Index fund 
• Rise or fall in accordance with the rise or fall in the 
index
Objectives 
Money market Mutual Funds 
Asset Allocation Funds 
Stock Mutual Funds 
Bond Funds
advantages 
Instant Diversification 
Level the playing field between professional 
and individual investors 
Share administrative expenses 
Liquidity 
Minimal transaction costs 
Convenience
disadvantages 
Lower than Market Performance 
Costs
Services offered by mutual funds 
Automatic investments and withdrawal plans 
Automatic re-investment of interest, dividends 
and capital gains 
Wiring and funds express options 
Phone or internet switching 
Check writing 
Book keeping and help with taxes
Buying A mutual fund 
STEP 1 – Determine risk preferences 
STEP 2 – Determine asset allocation 
STEP 3 – Identify family of funds that meet 
your objective 
STEP 4 – Evaluate the funds
Mutual fund

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Mutual fund

  • 1. A SMALL PRESENTATION ON, MUTUAL FUND PRESENTED BY, VIDYADHARA.G
  • 2. LEARNING OUTCOMES What is mutual fund. Concept of Mutual funds. TYPES OF MUTUAL FUNDs Objectives Advantages disadvantages Buying A mutual fund. Services offered by mutual funds
  • 4. MUTUAL FUND A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities. Blah.. Bla bla…
  • 5. Concept of Mutual funds A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them.  Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in diversified professionally managed basket of securities at a relatively low cost.
  • 7. TYPES OF MUTUAL FUNDs Mutual Funds By Maturity Period Open ended Close ended By Investment Objective Equity Balance fund Income Gilt fund Money market Index fund
  • 8. Maturity period A)Open ended  Subscription and repurchase on continuous basis . Does not have fixed maturity period B)Close ended Stipulated maturity period
  • 9. Investment objective Equity • To provide capital appreciation over the medium to long-term • High risk Income • Regular and steady income to investors. • Bonds, corporate debentures, Government securities and money market instruments.
  • 10. Investment objective Balance fund • Provide both growth and regular income • Equities and fixed income securities Money market • To provide easy liquidity, preservation of capital and moderate income • Treasury bills, commercial paper and government securities, etc.
  • 11. Investment objective` Gilt fund • In government securities. • No default risk. Index fund • Rise or fall in accordance with the rise or fall in the index
  • 12. Objectives Money market Mutual Funds Asset Allocation Funds Stock Mutual Funds Bond Funds
  • 13. advantages Instant Diversification Level the playing field between professional and individual investors Share administrative expenses Liquidity Minimal transaction costs Convenience
  • 14. disadvantages Lower than Market Performance Costs
  • 15. Services offered by mutual funds Automatic investments and withdrawal plans Automatic re-investment of interest, dividends and capital gains Wiring and funds express options Phone or internet switching Check writing Book keeping and help with taxes
  • 16. Buying A mutual fund STEP 1 – Determine risk preferences STEP 2 – Determine asset allocation STEP 3 – Identify family of funds that meet your objective STEP 4 – Evaluate the funds