Mutual funds

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- Sponsor - who provides funds
- Trustee - investment - returns - return to sponsor
- AMC - Asset mgmt company - fund mgmr who invests in St mk
- Custodian - who verifies the accuracy of investment
- MF Distribution company -

Defination of MF
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is a Investment Vehicle which pulls money from public and invest in different
securities for earning profit with a pre determined Objective

Advantages
----
1. Professional mgmt
2. Less risk
3. Assured return
4. Tax benefits

Investment Styles
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Active Portfolio Management style - volatile/fluctuating - Mk fall -Low level price
of a stock - mk bounce back - Abnormal profits (Risk high)
Passive Portfolio management Style - Constant - Best stock - just below proce -
investment - decent returns (Low risk - low return)

Type of MF
-------
Index funds - Majority od funds - indexed shares
Income fund - Majority od funds - High dividend companies
Growth fund - Majority od funds - Business has potential to grow further
Equity Fund - Majority of funds - Equity shares
Debt Fund - Majority of funds - Debt Securities like bonds,debentures
Liquid fund - Majority of funds - Which are easily convertible into cash like CD,
CP,LOC
Balance fund - Majority of funds - 50% equity and 50% in debt
Fund of Funds- Majority of funds - Invest in another MF
Off Shore Funds - Majority of funds - in foriegn companies
Gilt Edge Funds - Majority of funds - Short term Govt securities - Treasury bills
Fixed Income fund - Majority of funds - fied income securies - Preference shares,
debentures,bonds

200
--- = Rs 20
10

How to measure MF
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Net Asset Value (NAV) - rate of return on a MF unit ( Total fund Market value -
admin exp/ No .of mutual fund unit holders)
Annalized Return - How much return a MF is giving year on yaer until till date

Charges in MF
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Load - commission charged on a Mutual fund
Entry Load - commission charged at the time of taking the MF units
Exit load - commission charged at the time of withdrawing the MF units

Schemes in MF
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Open Ended Scheme - Buy and see anytime - No lock in period - no tax benefits
Closed Ended Scheme - Buy today and call sell after lock in period - Min 3 years -
Tax Benefits

Systematic Investment Plan (SIP)

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- every month certain amount

Sector allocation
Company wide
Asset Allocation
fund type
Investment fund
fund mgr
return
NAV
AUM