Mutual funds pool the savings of investors who share a common financial goal. The money is invested in stocks, bonds, and other securities by fund managers. Returns from capital appreciation and income are shared by unit holders proportionate to their investment. Mutual funds provide diversification of risk across different industries as investment is spread widely. They allow small investors to invest in a variety of instruments and are managed by professionals.

1. MUTUAL funds
By :
lakshmisha C R
REVA University

2. Introduction :
 A trust that pools the savings of investors who share a common financial goal
is known as mutual fund.
 The money collected is then invested in financial instruments such as shares,
debentures and other securities the income and capital appreciation realized
are shared by its unit holders in proportion to the number of units owned by
them.
 Investment in securities are spread over a wide cross section of industries and
sectors reducing the risk of the portfolio.
 Mutual funds are mobilizers of saving of the small investors in instruments
like stock and money market instruments.
 Mutual funds are corporation that accept money from investors and use this
money to buy stocks, long term bonds, short term debt instruments issued by
businesses or Govt.

3. Cycle of Mutual funds
Investors
Fund
managers
Securities
Returns

4. Features of Mutual Funds
 Mobilizing small savings:
 Investment Avenue:
 Professional management:
 Diversified investment:
 Better liquidity
 Reduced risks:
 Investment protection
 Switching facility:
 Tax benefits:
 Low transaction cost:
 Economic development:
 Convenience:

5. Advantages
 Portfolio diversification:
 Professional management:
 Reduction/Diversification of Risks:
 Reduction of transaction costs:
 Wide Choice to suit risk-return
profile
 Liquidity
 Convenience and Flexibility
 Transparency
Disadvantages
 No control over costs
 No tailor-made portfolios
 Managing a portfolio of
funds
 Delay in redemption

6. Types of Mutual funds
 By Structure:
 Open-ended Funds
 Closed-ended Funds
 Interval Funds
 By Investment Objective:
 Growth Funds
 Income Funds
 Equity fund
 Debt funds
 Balanced funds

7. Few MUTUAL fund companies
 ICICI Prudential Equity & Debt Fund
 Mirae Asset Hybrid Equity Fund
 Axis Bluechip Fund
 ICICI Prudential Bluechip Fund
 L&T Midcap Fund
 HDFC Mid-Cap Opportunities Fund
 L&T Emerging Businesses Fund
 HDFC Small Cap Fund
 Motilal Oswal Multicap 35 Fund
 Kotak Standard Multicap Fund
Credits : The economic Times

10. THANK YOU