This document summarizes information about mutual funds, portfolio management, and microfinance. It defines mutual funds as a way for small investors to access diversified portfolios professionally managed at low prices. It describes different types of mutual funds and lists some top performing funds. It defines portfolio management as selecting investments to achieve maximum returns with minimum risk. It discusses portfolio construction, revision, and evaluation. It then defines financial inclusion and microfinance as efforts to make financial services accessible to low-income individuals, and outlines their importance and characteristics.

1. Mutual Funds, Portfolio Management
&
Micro Finance
Conducted by
Mr. Sushil B. Bansode

2. Mutual Funds
• A mutual fund is a type of financial vehicle made up of a pool of
money collected from many investors to invest in securities like stocks,
bonds, money market instruments, and other assets.
• A mutual fund is a type of investment vehicle consisting of a portfolio of
stocks, bonds, or other securities.
• Mutual funds give small or individual investors access to diversified,
professionally managed portfolios at a low price.
• Mutual funds are divided into several kinds of categories, representing the
kinds of securities they invest in, their investment objectives, and the type
of returns they seek.
• Mutual funds charge annual fees (called expense ratios) and, in some cases,
commissions, which can affect their overall returns.
• The overwhelming majority of money in employer-sponsored retirement
plans goes into mutual funds.

3. Importance of Mutual Fund
• Convenience
• Diversification
• Ease Of Investment
• Spoilt For Choice
• Professional Management

4. Types of Mutual Funds
• Money Market Funds
• Income Funds
• Bond Funds
• Balanced Funds
• Equity Funds
• International Funds
• Specialty Funds
• Index Funds
• Exchange-Traded Funds

5. Top 10 Mutual Funds
• ICICI Prudential Focused Bluechip Equity Fund
• Aditya Birla Sun Life Small & Midcap Fund
• Tata Equity PE Fund
• HDFC Monthly Income Plan – MTP
• L&T Tax Advantage Fund
• SBI Nifty Index Fund
• Kotak Corporate Bond Fund
• Canara Robeco Gilt PGS
• DSP BlackRock Balanced Fund
• Axis Liquid Fund

6. Portfolio Management
• A portfolio refers to a collection of investment tools such as
stocks, shares, mutual funds, bonds, cash and so on
depending on the investor’s income, budget and convenient
time frame.
• The art of selecting the right investment policy for the
individuals in terms of minimum risk and maximum return
is called as portfolio management.
• Portfolio management refers to managing money of an
individual under the expert guidance of portfolio managers.
• In a layman’s language, the art of managing an individual’s
investment is called as portfolio management.

7. Portfolio construction
Portfolio construction refers to a process
of selecting the optimum mix of securities for
the purpose of achieving maximum returns by
taking minimum risk.

8. Portfolio Revision
The process of addition of more assets in an
existing portfolio or changing the ratio of funds
invested is called as portfolio revision.
The sale and purchase of assets in an
existing portfolio over a certain period of time to
maximize returns and minimize risk is called
as Portfolio revision.

9. Portfolio Evaluation
Portfolio evaluation refers to
the evaluation of the performance of the portfolio.
It is essentially the process of comparing the
return earned on a portfolio with the return earned
on one or more other portfolios or on a
benchmark portfolio.

10. Financial Inclusion
Financial inclusion refers to efforts to make
financial products and services accessible and
affordable to all individuals and businesses,
regardless of their personal net worth or company
size.

11. Needs of Financial inclusion
Financial inclusion is needed for all and sundry,
and especially the world’s poor population working in
the informal sector. The inclusion helps individuals to
make daily payments reliably. It helps them to access
credit which can be invested in their small-scale
income-generating activities. It also helps people save
their cash so that they can make future investments or
respond to unforeseeable risks.
Financial inclusion improves access to insurance
products and services which are critical towards
addressing vulnerabilities in any type of business.

12. Micro-Finance
Microfinance, also called microcredit,
is a type of banking service provided to
unemployed or low-income individuals or
groups who otherwise would have no
other access to financial services.

14. Characteristics of Micro Finance
• Mostly it is collateral free
• MFIs go to client rather than clients go to MFIs
• Simplified saving and loan procedure
• Small size of loans and saving
• Repeat Loans
• Loan size increase in the repeated loans or subsequent
cycle.

15. Need of Microfinance
• Microfinance is a proven part of the formula for beating
extreme poverty.
• Microfinance can boost agriculture and promote food
security.
• Microfinance offers access to healthcare where other
options are simply not available.
• Microfinance promotes gender equality and empowers
women and girls.
• Microfinance promotes inclusive economic growth and
stimulates productive employment for the poor.

16. Present Position of Microfinance in
India
• The Indian Microfinance sector has been rated as one of the fastest
growing sectors in the world
• There are 1,000 MFIs operating in India (as of March 2009)
• MFIs have reached 234 of the 331 poorest districts identified by the
government
• At present lending to the economically active poor both rural and
urban is pegged at around Rs 7000 carores in the Indian banks‟
credit outstanding.
• As against this, according to even the most conservative estimates,
the total demand for credit requirements for this part of Indian
society is somewhere around Rs 2,00,000 carores.

17. Thank You…