INVESTMENT ANALYSIS AND PORTFOLIO

MANAGEMENT

MUTUAL FUNDS:
DEFINITION & FEATURES
A trust that pools the savings of investors who share a common financial
goal. The money collected is then invested in financial instruments such
as shares, debentures and other securities. The income and capital
appreciation realized are shared by its unit holders in proportion to the
number of units owned by them.

Investment spread over a wide section of industries

reduces the RISK of the portfolio
Mobilize funds (SMALL SAVINGS) by selling their own
shares known as units.
Benefit of professional and EXPERT MANAGEMENT of
their funds
Always available and the units are mandatorily listed
providing better LIQUIDITY
REGULATED by legislative provisions given by SEBI to
protect the investor interest
FLEXIBILITY to investors to switch from various
available schemes
Offer TAX BENEFITS through tax saving schemes

MUTUAL FUNDS: THE

FLOW
CYCLE
R

eir
h
t
l
eturns are
o
po
in
s
g
n
i
shared by
v
sa
its unit
Return
Investoa trust a
g
n
i
r
holders in
a
h
s
rs s mon
proportion
com
ial
c
n
to the
a
n
fi
MUT
number of
goal.
UAL
units
FUN
owned by
DS
them
Shares
Fund
Manager
Debentur Securit
ies
Invest in
es
capital
Other
market
securities
Mutual Funds offer the opportunity to invest
in eants
instrum
diversified, professionally managed basket of securities at

MUTUAL FUNDS:
TYPES
Type of
Mutual Fund
Schemes

Structure

Investment
Objective

Special
Schemes

Open Ended
Funds

Growth Funds

Industry Specific
Schemes

Close Ended
Funds

Income Funds

Index
Schemes

Balanced Funds

Sectoral
Schemes

Money Market
Funds

INVESTMENT STRATEGIES
INVESTME
NT
STRATEGIE
S
SYSTEMATI
C
INVESTME
NT PLAN

SYSTEMATI
C
WITHDRA
WAL PLAN

SYSTEMATIC INVESTMENT PLAN [ SIP]

Invest using small periodic
amounts instead of lump sums
Auto debited from bank account and
invested in a specific mutual fund
scheme
Frequency of investment : weekly,
monthly or quarterly
Rupee Cost Averaging: More units
when price is low; Less units when
price is high
Recommended to Retail Investors
who do not have resources to pursue

Discipline
d Saving

Flexibility

WH
Y
SIP?

Convenience

Long
Term
Gains

INVESTMENT STRATEGIES
SYSTEMATIC WITHDRAWAL PLAN [ SWP]
Specific payout amount to the
shareholder at predetermined
intervals
Amount and Frequency decided by
the investor
Frequency of withdrawal :
weekly, monthly, quarterly or
annually
Strategy for Generation of regular
income

Companies offering
Systematic Plans: Reliance
Mutual Funds, ICICI, SBI Mutual
Fund, HDFC Mutual Fund, etc.

Regular
ity

Inflation
protection

WH
Y
SWP
?

Taxatio
n

Drawback of Systematic
Plans: Lower Returns in
consistently rising markets

EQUITY LINKED SAVING

SCHEMES

Majority of corpus invested in equity

A Tax Saving instrument EEE category
Deduction under 80C up to Rs 1.5 Lakh
Equity Linked Returns
High Risk

ELSS

Flexibility - SIP

PPF
NSC
8.16%
6 Years

8.50%
15 Years

15%20%
3 Years

EQUITY LINKED SAVING

SCHEMES

Long Term
Performance

Fund
Managers
Approach

Expense
Ratio of Fund

ELSS
Dividend
Option

Growth
Option

Constan
t Income
Threshold value of RS 500

Capital
Gains