1) A mutual fund is a trust that pools savings from investors who share a common financial goal. The fund invests in a portfolio of stocks, bonds, and other instruments, and investors share the income from these investments proportionate to their stake in the fund.
2) Mutual funds first emerged in India in 1964 with the establishment of UTI. Features of mutual funds include professional management, diversification, convenience, return potential, low costs, and liquidity.
3) Mutual fund schemes are categorized by structure (open-ended or closed-ended), objective (income, growth, hybrid, tax-saving), and other factors. All schemes aim to offer returns while balancing risks like market risk
Investment Accounts: Government Stocks and Unit TrustsZibusiso Masuku
This is a short slide on Investment Accounts, mainly covering Government Stocks and Unit Trusts. Prepared by the Freshman students of Actuarial Science (2014/15) at NUST in Bulawayo Zimbabwe!
Many people tend to over complicate saving and investing. This overabundance of information can sometimes generate so many different answers and opinions that you just give up on the question. You don't need brain surgery to fix a sprained wrist, and you don't need to be a pro to build a diversified portfolio and accumulate wealth. This article shows the benefits and the simplicity of investing in a mutual fund.
Hedge funds are like mutual funds in some ways. Investment professionals in a hedge fund pool in money from investors to be managed - exactly like the mutual funds do. And, subject to some minor restrictions, investors in hedge funds can withdraw their money as they can in a mutual fund. Nothing else is similar.
It gives overall idea about the mutual funds. History of Mutual Funds, how it works and the types of mutual funds. Advantages and disadvantages of mutual funds and why mutual funds are subjected to market risks.
Investment Accounts: Government Stocks and Unit TrustsZibusiso Masuku
This is a short slide on Investment Accounts, mainly covering Government Stocks and Unit Trusts. Prepared by the Freshman students of Actuarial Science (2014/15) at NUST in Bulawayo Zimbabwe!
Many people tend to over complicate saving and investing. This overabundance of information can sometimes generate so many different answers and opinions that you just give up on the question. You don't need brain surgery to fix a sprained wrist, and you don't need to be a pro to build a diversified portfolio and accumulate wealth. This article shows the benefits and the simplicity of investing in a mutual fund.
Hedge funds are like mutual funds in some ways. Investment professionals in a hedge fund pool in money from investors to be managed - exactly like the mutual funds do. And, subject to some minor restrictions, investors in hedge funds can withdraw their money as they can in a mutual fund. Nothing else is similar.
It gives overall idea about the mutual funds. History of Mutual Funds, how it works and the types of mutual funds. Advantages and disadvantages of mutual funds and why mutual funds are subjected to market risks.
IDFC Mutual Fund is a leading Mutual Funds Investment Company in India. Invest in SIP, Equity, Debt, Hybrid, Long Term and Tax Saving Mutual Funds online.
This PPt contains Basic information of Mutual Funds, Types of Mutual funds and Advantages & Disadvantages of Mutual Funds. After Reading this u will get Basic information on mutual Funds. For More Information visit : http://www.bankbazaar.com/mutual-funds.html
Understand what is Mutual Fund, advantages of investing in Mutual Funds, its process, etc. To know or invest in mutual funds visit: www.karvyonline.com or call us on 18004198283.
The law firm's investment management practice represents a full range of U.S. domestic and non-U.S. clients
in all aspects of their organization and operations. Our clients include start-up investment managers/advisers and
investment funds, seasoned private equity and venture capital professionals and established/industry-recognized investment companies and institutions.
IDFC Mutual Fund is a leading Mutual Funds Investment Company in India. Invest in SIP, Equity, Debt, Hybrid, Long Term and Tax Saving Mutual Funds online.
This PPt contains Basic information of Mutual Funds, Types of Mutual funds and Advantages & Disadvantages of Mutual Funds. After Reading this u will get Basic information on mutual Funds. For More Information visit : http://www.bankbazaar.com/mutual-funds.html
Understand what is Mutual Fund, advantages of investing in Mutual Funds, its process, etc. To know or invest in mutual funds visit: www.karvyonline.com or call us on 18004198283.
The law firm's investment management practice represents a full range of U.S. domestic and non-U.S. clients
in all aspects of their organization and operations. Our clients include start-up investment managers/advisers and
investment funds, seasoned private equity and venture capital professionals and established/industry-recognized investment companies and institutions.
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.
This presentation include Introduction, Origin, Indian scenario, Definition, Growth, category ,Prospectus, Function, Quality Problem and Guideline for Merchant Banking.
A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments .
Portfolio management is the centralized management of one or more portfolios, which includes identifying, prioritizing,
authorizing, managing, and controlling projects, programs and other related work to achieve specific strategic business
objectives.
1. MUTUAL FUNDS
What is Mutual Fund:
A Mutual Fund is a trust
pools the savings of a number of investors
share a common financial goal
a diversified portfolio of financial instruments
equities, debentures / bonds or other instruments
the fund is then deployed in:
investment alternatives
Income is shared by unit holders
In proportion to their investment
2. MUTUAL FUNDS
Emergence of Mutual Fund in India
Mutual funds in India began in 1964
Unit Trust of India (UTI) was the first
Remains the market leader even today
Having about 68% of the market share
Lost monopoly in 1987
With entry of public sector mutual funds
Promoted by public sector banks
and insurance companies
Industry was open to foreign institutions in 1993
Real competitive structure began only then
3. MUTUAL FUNDS
Features / Advantages of Mutual Fund
Professional management
Diversification
Convenient administration
Return potential
Low Costs
Liquidity
Transparency
4. MUTUAL FUNDS
Schemes of the Mutual Funds (by structure)
A. Open ended mutual funds:
Redeemable on demand
available through out the year
Not Listed on the Stock Exchange
Fund would be ready to buy the shares
May issue new shares in lieu of them
Buy back on Net Asset Value (NAV)
Value depends on:
performance of select securities at exchange
5. MUTUAL FUNDS
Schemes of the Mutual Funds (by structure)
B. Close ended mutual funds:
Limited number of shares
Having Certain Maturity period
Subscription during a specified period
Listed on the exchange and traded
Listing and trading is to create liquidity
As they cannot be redeemed before maturity
These are similar to equity shares
6. MUTUAL FUNDS
Schemes of the Mutual Funds (by objective)
A. Income Oriented Schemes:
Fund offers fixed income to the investors
Fund itself invests the money in:
fixed income yielding bonds etc.
Ideal for capital stability and regular income
Capital appreciation might be low
Has a reduced risk
7. MUTUAL FUNDS
Schemes of the Mutual Funds (by objective)
B. Growth Oriented Schemes:
Fund offers Growth potential
Invests fund in:
Dividend paying companies
Companies with rapid capital appreciation
focus on low risk high yield equity
Ideal for long term growth
No regular income
8. MUTUAL FUNDS
Schemes of the Mutual Funds (by objective)
C. High Growth schemes:
Fund offers High Growth potential
Invests fund in:
Dividend paying companies
Companies with rapid capital appreciation
focus on high risk high yield equity
subject to lot of volatility
Ideal for aggressive investors
9. MUTUAL FUNDS
Schemes of the Mutual Funds (by objective)
D. Hybrid schemes:
Fund offers Income + Growth potential
Invests fund in:
Debentures and bonds; and
Equity in Dividend paying companies
Companies with capital appreciation
focus on Balanced investment
Hence they are also known as Balanced funds
10. MUTUAL FUNDS
Schemes of the Mutual Funds (by objective)
E. Tax saving schemes:
Fund offers Tax rebate
Investment in exempted avenues
Equity linked savings schemes
pension schemes
focus on Tax saving and appreciation
11. MUTUAL FUNDS
Schemes of the Mutual Funds (by objective)
F. Money market mutual funds:
Investment in:
short term debt securities
Such as deposits and bonds
Focus on high yielding short term investments
Tax saving and appreciation
12. MUTUAL FUNDS
Schemes of the Mutual Funds (by objective)
G. Other funds; such as:
Real Estate Funds
Off-shore funds
hedge funds
fund of funds
Exchange trade funds (ETFs)
13. MUTUAL FUNDS
Risks involved in the Mutual Funds
Market risk:
Market influenced by outside factors
Affecting particular or all industries
Prices of the scripts fall and rise
without connection with the performance
of the Company
14. MUTUAL FUNDS
Risks involved in the Mutual Funds
Inflation risk
Fall in rupee value
Reduced purchase power
Resulting in in-sufficient earnings
Credit risk
Weak financial position of the borrowing company
Affecting the payment of interest
Affecting the repayment of principal amount
15. MUTUAL FUNDS
Risks involved in the Mutual Funds
Investment risk
Investment may not be in proper sectors
Growth sectors might be ignored
Resulting in lesser returns than anticipated
Liquidity risk
Thin trading in the invested securities
Affecting the sale value
Hence returns not as anticipated
16. MUTUAL FUNDS
Computation of net asset value:
Fixed/unlimited number of shares are issued
By the fund at once or from time to time
The money received is referred to as Fund
Each scheme invests the fund in:
pre-promised nature of securities
These investments are termed as Assets
Redemption of the shares is done
on the basis of Net Asset Value
i.e. the proportion of the Net Assets to each share
or
Total net assets of the scheme
No. of units/shares outstanding
17. MUTUAL FUNDS
Risks involved in the Mutual Funds
Other risks:
Excessive diversification of the portfolio
Focus only on blue chip securities
Frequent buying and selling resulting
in brokerage and commission
Poor planning
Negligence of the fund managers
18. MUTUAL FUNDS
Constitution and management of Mutual Funds
Mutual fund shall be in the form of a trust
Trust deed shall be registered
under Indian Registration Act, 1908
Sponsor and Trustees shall be the parties
to the Trust Deed
Who can be a trustee
Person of ability, integrity and standing
Shall be independent (not associate with sponsor)
Cannot be a trustee of more than one fund
-unless he is an independent trustee
19. MUTUAL FUNDS
Constitution and management of Mutual Funds
Who can be a Sponsor:
Person of ability, integrity and standing
Sound track record; meaning:
Associated with financial services with 5 years
Positive net worth for preceding 5 years
has closed the 5th year in profits
40% contribution to the net worth of the AMC
20. MUTUAL FUNDS
Constitution and management of Mutual Funds
Incorporation of an Asset Management Company:
Every mutual fund shall have an AMC
Incorporated under Companies Act, 1956
AMC should be approved by SEBI
Enter into an agreement with Trustees
Shall formulate schemes
Raise money against units
Invest the funds in approved securities
Distribute income to the shareholder of the funds
21. MUTUAL FUNDS
Constitution and management of Mutual Funds
Registration of a mutual Fund:
Sponsor with a sound track record
Eligible trustees
Execution and Registration of trust deed
Incorporation of AMC
Agreement of AMC with the Trustees
Sponsor to contribute 40% of Net worth of AMC
Appointment of a Custodian
22. MUTUAL FUNDS
Restriction on investments by mutual funds
Investment in debts instruments (rated below
Investment) shall not exceed 15% of NAV
Debt instruments issued by a single issuer
only upto 10% of the NAV
Not more than 10% of the paid up capital in any Co.
Issue expenses shall not exceed 6% of the fund
No investment in unlisted associate company
23. MUTUAL FUNDS
Restriction on business activities of mutual funds
No activity other than management of the scheme
Shall not act as trustee of any scheme
Shall not invest in any of the schemes floated by it
Unless disclosed in the offer document