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Mutual Funds    Presented By-    Sonam Bansal        10803861
Objective• To study about the benefits  available from mutual funds  investments.• To study the types of schemes  availabl...
What is a Mutual Fund?• A Mutual Fund is a trust that pools the  savings of a number of investors who  share a common fina...
• The money collected is invested  by the fund manager in different  types of securities. These could  range from shares t...
What Mutual Funds are not?• MFs are not “get rich quick investments”.• MFs are not “risk free investments”.• MFs are not “...
Working of a Mutual Fund
Types of Mutual    Funds
Risk-Return of different      schemes
OBJECTIVES OF MUTUAL       FUNDS• Diversification.• Growth.• Income.• International exposure.
Advantages of Mutual Fund
Disadvantages of Mutual           Fund• No Guarantees- The value of your  mutual fund investment, unlike a bank  deposit, ...
• Costs- If the fund is purchased in a  taxable account, taxes may have to be  paid on capital gains. Keep track of the  c...
10 REASONS TO INVEST IN          MUTUAL FUNDS• Expert on your side: When you invest in a  mutual fund, you buy into the ex...
• Investor protection: A mutual fund in  India is registered with SEBI, which  also monitors the operations of the  fund t...
• Convenience: You can invest directly with  a fund house, or through your bank  or financial adviser, or even over the  i...
Top Mutual Fund Companies         in India• HDFC Bank.   • TATA.• HSBC.        • UTI.• ING Vysya.   • Reliance.• Kotak    ...
CONCLUSION• The Mutual Fund industry is a  growing industry.• Mutual Funds covers a  spectrum of investment options.• We c...
Mutual funds by Sonam Bansal
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Mutual funds by Sonam Bansal

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Mutual funds by Sonam Bansal

  1. 1. Mutual Funds Presented By- Sonam Bansal 10803861
  2. 2. Objective• To study about the benefits available from mutual funds investments.• To study the types of schemes available.• To study about the regulations of
  3. 3. 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.• Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds.• These investors buy units of a particular Mutual Fund scheme that has a defined investment objective and strategy.
  4. 4. • The money collected is invested by the fund manager in different types of securities. These could range from shares to debentures to money market instruments, depending upon the scheme’s stated objectives.• The income earned through these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them.
  5. 5. What Mutual Funds are not?• MFs are not “get rich quick investments”.• MFs are not “risk free investments”.• MFs are not “assured return investment”.• MFs are not “ a universal solution to all investment needs.”
  6. 6. Working of a Mutual Fund
  7. 7. Types of Mutual Funds
  8. 8. Risk-Return of different schemes
  9. 9. OBJECTIVES OF MUTUAL FUNDS• Diversification.• Growth.• Income.• International exposure.
  10. 10. Advantages of Mutual Fund
  11. 11. Disadvantages of Mutual Fund• No Guarantees- The value of your mutual fund investment, unlike a bank deposit, could fall and be worth less than the principle initially invested.• The Diversification "Penalty“- Diversification can help to reduce your risk of loss from holding a single security, but it limits your potential for a "home run" if a single security increases dramatically in value. Remember, too, that diversification does not protect you from an overall decline in the market.
  12. 12. • Costs- If the fund is purchased in a taxable account, taxes may have to be paid on capital gains. Keep track of the cost basis of your initial purchase and new shares that are acquired by reinvesting distributions. Its important to compare the costs of funds you are considering. Always look at "net" returns when comparing fund performances. Net return is the bottom line; an investments true return after all costs are deducted.
  13. 13. 10 REASONS TO INVEST IN MUTUAL FUNDS• Expert on your side: When you invest in a mutual fund, you buy into the experience and skills of a fund manager and an army of professional analysts• Limited risk: Mutual funds are diversification in action and hence do not rely on the performance of a single entity.• More for less: For the price of one blue chip stock for instance, you could get yourself a number of units across a number of companies and industries when you invest in a fund!
  14. 14. • Investor protection: A mutual fund in India is registered with SEBI, which also monitors the operations of the fund to protect your interests.• Quick access to your money: Its good to know that should you need your money at short notice, you can usually get it in four working days.• Transparency: As an investor, you get updates on the value of your units, information on specific investments made by the mutual fund and the fund managers strategy and outlook.
  15. 15. • Convenience: You can invest directly with a fund house, or through your bank or financial adviser, or even over the internet.• Easy investing: You can invest in a mutual fund with as little as Rs. 5,000. Salaried individuals also have the option of investing in a monthly savings plan.• Low transaction costs: A mutual fund, by sheer scale of its investments is able to carry out cost-effective brokerage transactions.
  16. 16. Top Mutual Fund Companies in India• HDFC Bank. • TATA.• HSBC. • UTI.• ING Vysya. • Reliance.• Kotak • ABN-AMRO. Mahindra. • Baroda pioneer• LIC. mutual fund.• Morgan • Deutsche. Stanley.• SBI.
  17. 17. CONCLUSION• The Mutual Fund industry is a growing industry.• Mutual Funds covers a spectrum of investment options.• We can invest directly or through a professional money

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