Mutual funds, Marketing mutual funds ,Pre and post mutual funds

1. Mutual Funds
Presented By
Litty Sylus

2. Mutual Funds
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, and or
other securities.

3. Characteristics of Mutual Fund
1.Diversification: Mutual funds invest in a variety of assets, which
helps spread risk. This diversification can reduce the impact of poor
performance in any single investment.
2.Professional Management: A team of experienced fund managers
makes investment decisions on behalf of the investors. They conduct
research, select securities, and actively manage the portfolio to
achieve the fund's stated objectives.
3.Transparency: Mutual funds provide regular reports to investors,
including the fund's NAV, portfolio holdings, and performance. This
transparency helps investors make informed decisions.
4.Affordability: Mutual funds are accessible to investors with various
budgets. Some funds have low minimum investment requirements,
making them suitable for both small and large investors.
5.Risk and Return: The risk and return profile of a mutual fund
depends on its underlying investments. For example, equity funds
tend to have higher potential returns but come with higher risk, while
bond funds are generally lower risk but offer potentially lower
returns.

4. Structure Of Mutual Funds
Asset Management
Company

5. Factors Influencing Mutual Fund performance
1.Investment Objective: The fund's stated investment objective
plays a significant role in its performance. Different funds have
different goals, such as growth, income, or capital preservation.
The fund's portfolio manager will make investment decisions in
line with these objectives.
2.Asset Allocation: Asset allocation is the strategy of dividing a
fund's assets among different asset classes like stocks, bonds,
and cash equivalents. The mix of these asset classes can
significantly impact performance. A well-diversified portfolio can
help manage risk.
3.Fund Size: Fund size can impact performance. Extremely large
funds may find it challenging to generate significant returns
without taking on excessive risk, while very small funds may not
have the resources to effectively manage assets.

6. 4. Dividend and Capital Gains Distributions: The timing and
size of dividend and capital gains distributions can affect a
fund's returns. These distributions are typically taxable for
investors.
5. Regulatory Changes: Changes in regulatory or tax policies
can impact the fund's performance. For example, changes in
tax rates on dividends or capital gains can affect after-tax
returns.
6. Investor Behavior: Investor behavior can also influence
mutual fund performance. If investors engage in excessive
buying or selling of fund shares, it can create pressure on the
fund manager to make suboptimal investment decisions.

7. How To Determine Mutual Fund Market Top
Performing Funds
1.Set Clear Investment Goals: Define your financial
objectives, risk tolerance, and time horizon to guide
your fund selection.
2.Understand Fund Categories: Familiarize yourself
with different types of mutual funds, such as equity,
fixed-income, and hybrid funds, to match your goals
with the appropriate category.
3.Analyze Historical Performance: Evaluate a fund's
past performance compared to its benchmark and peers
over a significant period (e.g., 3-5 years).

8. 4. Consider Costs: Pay attention to the fund's expense
ratio and other fees, as lower expenses can boost
your overall returns.
5. Assess Fund Managers: Research the fund
manager's experience, track record, and investment
strategy to gauge their ability to deliver consistent
results.
6. Diversify Your Portfolio: Spread your investments
across different asset classes and funds to reduce risk
and achieve a balanced portfolio.

9. Interest
Interest is the cost of borrowing money or the return earned on
an investment. It is typically expressed as a percentage of the
principal amount (the initial sum of money) and is calculated over
a specific period of time. Interest can be associated with various
financial transactions, such as loans, savings accounts, bonds,
and investments.

10. MARKETING
MUTUAL
FUNDS

11. How to Identifying prospective customers
for marketing mutual funds
1.Market Segmentation: Divide your target market into segments based on
characteristics such as age, income, risk tolerance, investment goals, and
financial knowledge. This helps tailor your marketing efforts to specific
groups with relevant mutual fund options.
2.Customer Profiling: Create detailed customer profiles by analyzing
existing customers who have successfully invested in mutual funds. Look
for common traits, behaviors, and preferences that can help you identify
similar prospects.
3.Financial Advisors: Collaborate with financial advisors and wealth
management professionals who can introduce potential clients to your
mutual fund offerings. They often have insights into the financial needs
and goals of their clients.
4.Online Marketing: Use digital marketing strategies, including social media
advertising, search engine optimization (SEO), and content marketing, to
reach a broader audience. Consider targeting individuals who search for

12. 5. Events and Seminars: Host investment seminars, webinars,
or workshops to educate potential investors about mutual
funds and investment strategies. Collect contact information
from attendees for follow-up marketing.
6. Networking: Attend industry conferences, investment clubs,
and local business events to build relationships with
individuals interested in finance and investments.
7. Referral Programs: Encourage your existing clients to refer
friends and family who may be interested in mutual funds.
Offer incentives for successful referrals.
8. Direct Mail and Email Campaigns: Create targeted direct
mail or email campaigns to reach potential investors who
have opted in to receive financial information or have shown
interest in similar products.

13. 9. Content Marketing: Produce high-quality, educational
content related to mutual funds and investment strategies.
Share this content through blogs, newsletters, and social
media to attract and engage potential investors.
10.Data Analytics: Use data analytics tools to identify individuals
who exhibit online behavior indicative of interest in mutual
funds. This can include tracking website visits, clicks on
investment-related content, and engagement with financial
calculators.
11.Customer Surveys: Conduct surveys to gather insights about
individuals' financial goals, risk tolerance, and investment
preferences. Use this data to tailor your marketing messages
and offerings.

14. Advantages of Mutual Funds
1.Diversification: Mutual funds spread investments across a wide
range of assets, reducing the risk associated with individual
securities. This diversification helps protect investors from the poor
performance of any single asset.
2.Professional Management: Mutual funds are managed by
professional fund managers who make investment decisions on
behalf of investors. Their expertise can help in making informed
investment choices.
3.Liquidity: Mutual fund shares are typically easy to buy and sell,
making them a liquid investment. Investors can redeem their shares
at the current Net Asset Value (NAV) price at the end of each trading
day.
4.Affordability: Many mutual funds have low minimum investment
requirements, making them accessible to a wide range of investors.
5.Automatic Investment: Investors can set up automatic investment
plans, such as SIPs (Systematic Investment Plans), which allow
them to invest a fixed amount regularly, promoting disciplined
savings.

15. Disadvantages of Mutual Funds
1.Fees and Expenses: Mutual funds charge fees and expenses,
including management fees, administrative costs, and sales loads (if
applicable). These fees can eat into your returns over time.
2.Lack of Control: When you invest in a mutual fund, you relinquish
control over the individual securities within the fund. You are subject
to the fund manager's decisions.
3.Taxes: Mutual fund distributions, such as capital gains and
dividends, can trigger tax liabilities, even if you haven't sold any
shares. Tax efficiency can vary between funds.
4.Market Risk: Although diversification reduces risk, mutual funds are
still subject to market volatility. If the overall market performs poorly,
your mutual fund investments may suffer as well.
5.Lack of Transparency: Mutual funds are required to disclose their
holdings periodically, but there can be a lag in obtaining this
information. This lack of transparency can be a disadvantage for
some investors

16. Types Of Mutual Funds
• Equity Funds: These funds invest primarily in stocks or
equities. They can be further categorized into:
• Large-Cap Funds: Invest in large, well-established companies with
stable growth.
• Mid-Cap Funds: Invest in medium-sized companies with potential for
growth.
• Small-Cap Funds: Invest in smaller companies with higher growth
potential but also higher risk.
• Money Market Funds: These funds invest in short-term, highly
liquid, and low-risk instruments like Treasury bills and
commercial paper. They are suitable for parking cash
temporarily and preserving capital.

17. • Commodity Funds: These funds invest in physical
commodities like gold, silver, oil, or agricultural products. They
can provide diversification and hedge against inflation.
• Hybrid or Balanced Funds: These funds invest in a mix of
both equities and fixed-income securities. They aim to provide a
balance between growth and income.
• Debt Funds: These funds invest in fixed-income securities
such as bonds, government securities, and money market
instruments. Debt funds are generally considered lower risk
compared to equity funds.
• International or Global Funds: These funds invest in
securities from foreign markets, allowing investors to diversify
their portfolios internationally.

18. PRE AND POST SALE
MUTUAL FUNDS

19. Steps To Purchase Mutual Fund
Shares:
1.Select the Mutual Fund: First, you need to choose the mutual fund
you want to invest in. There are various types of mutual funds,
including equity funds, bond funds, money market funds, and hybrid
funds. Consider your financial goals, risk tolerance, and investment
horizon when selecting a fund.
2.Choose the Investment Platform: You can buy mutual fund shares
through various channels, including:
a) Directly from the Mutual Fund Company: Many mutual fund companies
allow investors to buy their funds directly through their websites or by
contacting their customer service.
b) Through a Brokerage Account: You can use a brokerage account to
invest in mutual funds. Many brokerage firms offer a wide selection of
mutual funds from different fund families.
c) Employer-Sponsored Retirement Plans: If you have a 401(k) or similar
retirement plan through your employer, you can invest in mutual funds
through these accounts.
d) Financial Advisor or Investment Professional: You can work with a
financial advisor who can help you select and purchase mutual funds that
align with your financial goals.

20. 3. Complete Required Documentation: Depending on the method you
choose, you may need to fill out paperwork to open an account or
purchase mutual fund shares. This may include providing personal
information, financial details, and agreeing to the fund's terms and
conditions.
4. Fund Your Account: To invest in mutual funds, you'll need to transfer
money into the investment account you've set up. The minimum initial
investment amount can vary widely between funds, so make sure you
meet the minimum requirements.
5. Place Your Order: Once your account is funded, you can place an order
to purchase mutual fund shares. You can specify the number of shares
or the dollar amount you want to invest. Be aware that mutual funds are
priced based on their net asset value (NAV), which is calculated at the
end of each trading day.
6. Confirmation and Account Statement: After your purchase order is
executed, you will receive a confirmation of the transaction. Additionally,
you'll receive regular account statements showing your holdings and
transaction history.
7. Monitor Your Investment: Keep track of your mutual fund investment
and review your portfolio periodically to ensure it aligns with your
financial goals. You may want to make additional investments or redeem
shares as needed.

21. Payment Methods in mutual fund
1.Online Purchase: Many mutual fund companies offer online
platforms where investors can open an account and purchase
mutual fund shares electronically. This typically involves linking
a bank account to the mutual fund account for easy transfers.
2.Direct Investment: Investors can directly invest in mutual
funds through the mutual fund company itself. They can visit the
company's office or contact them by phone to make
investments.
3.Automatic Investment Plan (AIP): An AIP allows investors to
set up regular, automatic contributions to their mutual fund
accounts. This can be linked to a bank account, and a fixed
amount is deducted at specified intervals (e.g., monthly or
quarterly).

22. Different ways to Collection of Mutual Fund
Certificate
• Physical Certificates: In most countries and for most mutual funds, physical
certificates representing ownership of mutual fund shares are no longer
issued or required. Instead, investors receive electronic statements and
confirmations that serve as evidence of their holdings.
• Electronic Record-Keeping: Mutual fund companies have transitioned to
electronic record-keeping to streamline processes, reduce paperwork, and
enhance efficiency. Investors can access their account information,
holdings, and transaction history online.
• Account Statements: Investors typically receive periodic account
statements (e.g., quarterly or annually) from the mutual fund company or
the financial institution where they hold their mutual fund investments.
These statements provide details about their holdings, transactions, and
account balances.

23. • Online Access: Many mutual fund companies offer online access to
investor accounts, allowing them to view and manage their
investments electronically. Investors can log in to their accounts
through the mutual fund company's website or app.
• Transaction Confirmations: When investors buy or sell mutual fund
shares, they receive electronic transaction confirmations that detail
the specifics of the transaction, including the number of shares
bought or sold, the price, and the date.
• Safekeeping of Documents: In the rare cases where physical
certificates are still issued, investors should securely store these
certificates in a safe place, as they represent ownership of the mutual
fund shares. Losing physical certificates can create complications
when redeeming or transferring shares.

24. What are the documents required to invest
in mutual funds?
• The documents for KYC (Know Your Client) include proof of address
and proof of identity. Here is a list of officially valid documents (OVD)
admissible.
• PROOF OF IDENTITY:
1.PAN Card (Mandatory)
2.Voter ID Card
3.Driving License
4.Passport
5.Aadhaar Card
6.Any other valid identity card issued by the Central or State
Government

25. • PROOF OF ADDRESS
1.Voter ID Card
2.Driving License
3.Passport
4.Ration Card
5.Aadhaar Card
6.Bank account statement or bank passbook
7.Utility bills like electricity or gas bills