1) A mutual fund pools the savings of investors and invests it in securities like stocks and bonds. The money is managed by a fund manager on behalf of the investors. 2) There are different types of mutual funds categorized by maturity period and investment objectives, which determine the level of risk. Money market funds have the lowest risk while sectoral or index funds have higher risks. 3) Systematic investment plans (SIPs) allow investors to invest small regular amounts in mutual funds at fixed intervals like monthly or quarterly. This disciplined approach to investing can help achieve financial goals like saving for education or retirement over the long run.

1. {
R.S.KUMAR
Guided By :
Mrs. Indumathi

2. WHAT IS A MUTUAL FUND ?
A mutual fund is a trust that pools the savings of a
number of investors who share a common financial goal.
The money thus collected is then invested in capital
market securities or instruments such as shares,
debentures and other securities.

3. Investors
PASSED
BACK TO
POOL THEIR
MONEY WITH
Fund
Manager
Returns
{
INVEST IN
GENERATES
Securities

4. TYPES OF MUTUAL FUNDS : Schemes according to maturity period :
 Schemes according to investment objective :

5. NATURE OF RISK :
NATURE OF RISK
(WITH COLOUR CODE)
CATEGORIES OF FUND
Low Risk :
 Money Market Funds
 Growth funds
Moderate Risk :
{
 Income Funds
 Short-term Plans
 Balanced Funds
High Risk Funds :
 Index Funds
 Sectoral Funds

6. WHAT IS SIP ?

It is an investment strategy where an investor invests a
fixed amount in a fund at a stipulated periodic
interval.

{
It can be made daily, weekly, monthly or quarterly.

It is a financial planning tool that allows you to invest
in mutual funds through small and periodic
installments.

Moreover you can also select the tenure of your
investments.

It helps you to set aside a fixed amount every month
for investments thus contributing towards your
financial goals.

7. LET’S TAKE AN EXAMPLE…..
 Mr. Salman is a businessman. He is married to Tina, who is a homemaker.
He has a son and daughter, both are in school.
 Over next couple of years, he desires to follow a savings plan to build
wealth for his children’s education/marriage and buy a bigger house.
 In order to hedge against uncertainties of business , he has been regularly
investing in fixed income instruments.
 The lower interest rates over the years have been worrying him.
 He decides to take the help of Yash Kumar, Financial Advisor.
 After carefully evaluating his financial goals and time required to achieve
his financial goals, he advises him to invest in Mutual Funds through SIP.
 For following reasons….

8. CONTINUED…..
 SIMPLE TO INVEST
 LOW ACQUISITION COSTS
 DISCIPLINED INVESTMENT
 SUPERIOR RETURNS
 HELPS IN COMPOUNDING YOUR WEALTH

9. CONTINUIED…..
 However, SALMAN is not comfortable investing into mutual funds as
they are volatile ; therefore risky and avoidable.
 Yash Kumar advises SALMAN to register for Systematic Investment Plan
and make use of volatility in the market rather than get worried and
avoid investing in Mutual Funds.
 SALMAN is not clear as to how Systematic Investment Plan will work to
his advantage and requests him for more details.
 Yash Kumar explains him with an example, which is as follows….

10. CONTINUED…
Rahul & Viru are two friends. Rahul decides to invest
Rs. 1000/- per month using SIP whereas Viru decides to
make lump-sum investment of Rs. 12000.
Go to Example

11. CONCLUSION :
From the above EXAMPLE we can understand that : A SIP method of investment is better than the LUMP-SUM investment.
 When markets are high you buy less units, but when markets are low you
buy more units.
 SIP is truly small on savings but big on benefits.
 Disciplined
 Convenient

12. THE FOUR STEPS TO POTENTIAL WEALTH
CREATION THROUGH SIP
Select a mutual
fund Scheme of
your choice
• Step 1
Select the
amount you can
afford to invest
every month
• Step 2
Decide on the
frequency with
which you will
invest
• Step 3
Decide the
length of the
investment
period
• Step 4

13. My SIP Calculator

14. My SIP Calculator
My SIP Calculator is very easy to access and understand. Any common
man could easily make out the difference.
The calculator consists following features :
 It can be applied to any fund scheme.
 It generate a positive Return On Investment(ROI).
 It calculates the Net Present Value(NPV).
 It displays a graphical chart on every calculation.
Take Me To Calculate

15. RISK FACTOR :
 There is no guarantee that every SIP will always produce a profit.
 Please consult your financial advisor before investing.

16. THANK YOU