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Mutual Funds: Presentation On
Mutual Funds: Presentation On
Mutual Funds: Presentation On
Mutual Funds
NAV Exit Load Factsheets Open Ended Growth Redemption Investment Objective Portfolio Dividend
Sale Price
Entry Load
Asset Allocation
Snapshot.
Mutual Fund
An old Axiom :
was probably in the minds of those who formed the first mutual fund.
Indian Institute of Capital Markets
Contents
Flow Cycle of a Mutual Fund Regulatory Aspects Diff. b/w MF and Direct Investmen t History of Mutual Funds in India Risk Manageme nt Balance sheet of a Bank and Mutual Fund Riskreturn structure of schemes Investmen ts Checklists Tracking Mutual Funds Organizati onal Structure of a Mutual Fund Classificati on of Mutual Fund Schemes Mutual Fund Compariso n
Expenses
Expenses
Expenses
Diff. b/w MF and Direct Investment Mutual fund investing vs. Direct investing
Professional investment management Risk reduction through diversification Convenience Availability of alternative portfolio objectives Unit holders account administration and services
Risk Manageme nt
Expenses
Difference between Bank and Mutual Fund Mutual Fund Balance Bank Balance Sheet
Sheet Assets Liabilities Liabilities Assets
Difference between Bank and Mutual FundBalance Sheet Mutual Fund Balance Bank
Sheet Assets Liabilities Liabilities Share Capital Deposits Assets Loans and Advances Unit Capital Investment in Financial Securities
Expenses
Trustees
Distributor / Agents
Sell units on the behalf of the fund, It can be bank, NBFCs, individuals.
Expenses
By Investment Objective
Equity (Growth) only in Stocks Long Term (3 years or more) Debt (Income) only in Fixed Income Securities Liquid/Money Market Short-term Money Market (CPs, CDs, Treasury Bills) Balanced/Hybrid Stocks + Fixed Income Securities (1-3 years) Gilt Funds primarily in G-Sec
Other Schemes
Tax Saving Schemes such as ELSS Special Schemes (ETFs, foreign funds)
Indian Institute of Capital Markets
Expenses
Expenses
Regulatory Aspects
Flow Cycle of a Mutual Fund Regulatory Aspects Diff. b/w MF and Direct Investmen t History of Mutual Funds in India Risk Manageme nt Balance sheet of a Bank and Mutual Fund Riskreturn structure of schemes Investmen ts Checklists Tracking Mutual Funds Organizati onal Structure of a Mutual Fund Classificati on of Mutual Fund Schemes Mutual Fund Compariso n
Expenses
Expenses
Risk Management
Flow Cycle of a Mutual Fund Regulatory Aspects Diff. b/w MF and Direct Investmen t History of Mutual Funds in India Risk Manageme nt Balance sheet of a Bank and Mutual Fund Riskreturn structure of schemes Investmen ts Checklists Tracking Mutual Funds Organizati onal Structure of a Mutual Fund Classificati on of Mutual Fund Schemes Mutual Fund Compariso n
Expenses
Investment Checklists
Flow Cycle of a Mutual Fund Regulatory Aspects Diff. b/w MF and Direct Investmen t History of Mutual Funds in India Risk Manageme nt Balance sheet of a Bank and Mutual Fund Riskreturn structure of schemes Investmen ts Checklists Tracking Mutual Funds Organizati onal Structure of a Mutual Fund Classificati on of Mutual Fund Schemes Mutual Fund Compariso n
Expenses
Expenses
Benchmark returns
SEBI directs Fund's returns compared to its benchmark
Time period
Equal to time for which you plan to invest Equity- compare for 5 years, Debt- for 6 months
Market conditions
Proved its mettle in bear market
Expenses
Flow Cycle of a Mutual Fund Regulatory Aspects Diff. b/w MF and Direct Investmen t History of Mutual Funds in India Risk Manageme nt Balance sheet of a Bank and Mutual Fund Riskreturn structure of schemes Investmen ts Checklists Tracking Mutual Funds Organizati onal Structure of a Mutual Fund Classificati on of Mutual Fund Schemes Mutual Fund Compariso n
Expenses
An asterisk * indicates fee which is included in a funds expense ratio. As per SEBI Rule, expense ratio should be 2.5% for equity & 2.25% for debt fund of fund value.
Expenses
Warning Signals
Flow Cycle of a Mutual Fund Regulatory Aspects Diff. b/w MF and Direct Investmen t History of Mutual Funds in India Risk Manageme nt Balance sheet of a Bank and Mutual Fund Riskreturn structure of schemes Investmen ts Checklists Tracking Mutual Funds Organizati onal Structure of a Mutual Fund Classificati on of Mutual Fund Schemes Mutual Fund Compariso n
Expenses
Expenses
Stock Funds have become a mainstream product. Liquid Plus Funds and FMPs have seen aggressive inflows due to regulatory changes. New asset classes like ETFs and FoFs have emerged.
Total Assets Under Management as on March 2009 Rs 493286 crores Total No. of players - 36
Indian Institute of Capital Markets
Expenses
Note: Penetration of Mutual Funds is still low as compared to Banks and Insurance Companies.
Indian Institute of Capital Markets
Expenses
What Mutual Funds are not? MFs are not get rich quick investments MFs are not risk free investment MFs are not assured return investment MFs are not a universal solution to all investment needs
Thank You
Indian Institute of Capital Markets