Presented by:

Puja Kumari
Shweta Singh
Amisha Goel
Ashraful Aman
 Limitations of Mutual Fund
• Lack of portfolio customisation:
A unit holder in the scheme is just one of the several thousand investor in the scheme, an thus investment
management is left to the fund management.
• Choice Overload:
Multiple mutual fund scheme offered by several mutual fund houses.
• No control over cost:
Cost incurred for managing the scheme are shared by all the unit holders in proportion to their holding of unit.
• No guaranteed return:
The performance of the investment are depend on specific market movement, performance of individual
securities and skill of the investment management team.
 Classifications of Mutual Fund
• By the structure of fund:
 Open - ended fund
Allow investor to enter or exit anytime.
 Close – ended fund
It has fixed maturity, investor can buy units only during its NFO.
 Interval Fund
Combine feature of both open ended and close ended.
• By the management of portfolio:
1. Active fund:
Fund manager has the flexibility to choose the investment portfolio within broad parameters of
investment objectives.
2. Passive fund:
Invest on the basis of specified index, whose performance it seeks to track.

• By the management of universe:

Looks at the investment universe where the scheme may invest i.e. equity, fixed, money market,
gold, international fund etc.
 Types of mutual fund

 Systematic Investment Plan (SIP):

• Investment tool.
• Allow investor to invest in fixed amount.
• Regular interval.
• Encourage disciplined investment.
• It is flexible.
 Lumpsum:
• Popular way of investment.
• Depositing the entire amount at one go.
• In a particular scheme
• Specific duration.
 Equity Schemes
1 Large cap Fund :
• Market cap around 20000 crores.
• Large Cap Companies have good truck Record.
• Top 100 companies listed in the stock market on basis of market cap

2 Mid cap Fund :

• 101 to 250th company in terms of market capitalization.
• More risk than large- cap fund.
• Average Returns of mid-cap from the past 5 years were around 10.28%.

3. Small cap Fund :

• 251st position onwards in terms of market capitalization.
• More Volatile and have less liquidity.
Equity Linked Saving Scheme
• Lock in period of three years.
• Section 80C of Income Tax Act 1961.

Flexi –cap Fund:

• Flexi- cap funds are equity funds that invest a minimum of 65% of their assets in equity
and equity – related instruments.
• Ex – UTI Flexi – cap fund ,SBI Flexi –cap fund , Aditya Birla Sun Life Flexi- cap Fund
 Debt schemes
1 Overnight Fund :
• overnight fund or one- day fund.
• Low Risk Factor and high liquidity

2 Liquid Fund :
• Maturity of up to 91 days.
• Treasury bills, commercial paper

3 Money Market Fund : - Short- term Maturity during up to 1 year.

4 Low Duration Fund : - Maintain fund duration between six and twelve .

5 Banking and PSU Fund

Hybrid Funds
• Mutual Fund Scheme
• More than one asset class
• Diversification
• Less Risk
• Better Return than Debt Funds
• Less riskier than Equity Funds
Types of Hybrid Funds:-
1. Aggressive Hybrid Fund-
• 65% and 80% of assets in Equity
• Rest in debt & money market
2. Conservative Hybrid Fund-
• Investing in debt instruments
• 75% and 90% of assets in Fixed Income
• Rest in Equity and Equity related instrument
3. Dynamic Asset Allocation Fund
• Invest in Equity & Debt
4. Multi Asset Allocation Fund
• 10% in Equity, Debt & Gold related instrument.
5. Arbitrage Fund
• 65% of Total Asset
6. Equity Saving
• 65% in Equity and Equity related instrument
• 10% in Debt
Solution Oriented Mutual Funds:-
• Lock in period of 5 years
• Longer Duration

Types:-
1. Retirement Fund
2. Children’s Fund
Advantages of Hybrid Funds:-
• Balance Risk & Return
• Diversification
• Suited for first time investors
• Systematic Investment Plan
• Higher Returns
• Lower expenses
Disadvantages of Hybrid Funds:-
• Market Risk
• Lack of Expertise
• Lack of Control
• Interest Rate Risk
Best Performing Hybrid Mutual Funds Expense Ratio
1. Kotak Equity Hybrid Fund 0.64%
2. ICICI Prudential Multi Asset Fund 1.2%
3. Quant Absolute Fund 0.56%
 The Team

Puja Kumari Shweta Singh Amisha Goyal Ashraful Aman