Prepared by: Harsh Bhutada(4) Jeenal Karani(16) Kanav Karol(17) Shubham Misra(27) Rohit Sawant(45)

Type of an Investment Professionally Managed Pools the money from investors Stated Objective
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FUND SPONSOR

TRUSTEE

HDFC TRUSTEE COMPANY LIMITED

MUTUAL FUND
HDFC Asset Management Co. Ltd.

AMC

Promoters Appoints Trustees E.g. :

HDFC & Standard Life Insurance

SPONSO R

HDFC MUTUAL FUNDS

Legally approved by SEBI Safeguards the interest of investors

Supervises in AMC activities

Once the TRUST is registered with SEBI it is known as MUTUAL FUND
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Appointed by the trustees Approved by SEBI

Manages Investors money

Floats new schemes under the name of Trust Charges fees for the services provided
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Responsible for Implementing funds investing strategies Managing funds trading activities Buy and sell on basis of market understanding Diversification of portfolio

Ensuring maximum returns

Representation of mutual fund in stock market
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Portfolio Load Corpus AUM NFO Net Asset Value (NAV) SIP

Portfolio: Collection of Investments Load: Type of Commission

Entry Load Exit Load

Corpus: Total Money invested by all investors AUM: Market value of all assets under Mutual Fund NFO: A new fund offer when a mutual fund is launched
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Net Asset Value

o

Value of single mutual fund Unit

Calculated every day (also depends upon type of mutual fund)

Formula:

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Simple Example of NAV Particulars Assets Liabilities O/S shares

Solution :

Amt. in $ 1,000,000.00 100,000.00 100000 shares

Therefore, NAV = $9 per share

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Systematic investment plan

Method to invest Fixed amounts @ fixed period of time Usually: Monthly, Quarterly or daily

Amount remains same but units can change depending upon NAV

SIP

Bank Account

Mutual Fund

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Schemes Of Mutual Funds

According to Maturity

According to Investment Objectives

Other Schemes

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Open-Ended Fund Freedom NO Fix Maturity Period NAV Declared Daily

Close-Ended Fund Restriction Fixed Maturity Period NAV Declared Weekly

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Growth Funds

Income Funds
Balanced Funds Money Market Funds
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Tax Saving Schemes Industry Specific Schemes Index Schemes

Sectoral Schemes
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Association of Mutual Funds in India

Incorporated in 1995 Principal Objectives:

Promotes the interest of Mutual Funds & Regulators Promote Best Business Practices Undertake Investor Awareness Program Provides Training & Certification
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 Professional expertise
Diversification Low cost of asset management Liquidity Ease of process Well regulated Economies of Scale

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Professional expertise

Diversification
Low cost of asset management Liquidity Ease of process Well regulated Economies of Scale

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Professional expertise Diversification

Low cost of asset management

Liquidity Ease of process Well regulated Economies of Scale

21

Professional expertise Diversification Low cost of asset management

Liquidity
Ease of process Well regulated Economies of Scale

22

Professional expertise Diversification Low cost of asset management Liquidity

Ease of process
Well regulated Economies of Scale

23

Professional expertise Diversification Low cost of asset management Liquidity Ease of process

Well regulated
Economies of Scale

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Professional expertise Diversification Low cost of asset management Liquidity Ease of process Well regulated

Economies of Scale

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Hidden fees
No guaranties / insurance Transfer Difficulties

Loss of Control

Tax disadvantage

Poor Performance

Lack of Transparency

Poor Trade Execution

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Hidden fees No guaranties / insurance

Transfer Difficulties

Loss of Control

Tax disadvantage

Poor Performance

Lack of Transparency

Poor Trade Execution

27

Hidden fees No guaranties / insurance Transfer Difficulties

Loss of Control

Tax disadvantage
Lack of Transparency

Poor Performance

Poor Trade Execution

28

Hidden fees No guaranties / insurance Transfer Difficulties

Loss of Control

Tax disadvantage

Poor Performance

Lack of Transparency
Poor Trade Execution

29

Hidden fees No guaranties / insurance Transfer Difficulties

Loss of Control

Tax disadvantage

Poor Performance

Lack of Transparency

Poor Trade Execution

30

Hidden fees No guaranties / insurance Transfer Difficulties

Loss of Control

Tax disadvantage

Poor Performance
Poor Trade Execution

Lack of Transparency

31

Hidden fees No guaranties / insurance Transfer Difficulties

Loss of Control
Poor Performance

Tax disadvantage

Lack of Transparency

Poor Trade Execution

32

Hidden fees

No guaranties / insurance

Transfer Difficulties

Loss of Control

Tax disadvantage

Poor Performance

Lack of Transparency

Poor Trade Execution

33

 The ruling done by SEBI: entry load Shift in assets b/w the banking system & asset

management companies. Lack of awareness among the people. Bank deposits rate moved up. Who will benefit:offcourse the investors Brought greater degree of transparency,2.25 were lopped off. Who lost:the real distributors Lost over 2 million investors in past year,13000 in 2009.

 The Past UTI scam Myths of investing Stock picking

Track record investing

Market timing

Not knowing what is in the recipe Less average number of holdings for the funds Turnover rate averaged more than 100 percent The management fees the funds charge

ICICI Prudential Mutual Funds

HDFC Mutual Funds Sponsor Housing Development Finance Corporation Limited; Standard Life Investments Limited

Prudential Plc and ICICI Bank Ltd

Trustee
ICICI Prudential Trust Ltd. ICICI Prudential Asset Management Company Limited 546 CORPUS Rs. 75286.6642 crs Rs. 91827.1119 crs
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HDFC Trustee Company Limited AMC HDFC Asset Management Company Limited 281

NOS OF SCHEMES

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