Upload
zd3r8
View
224
Download
0
Embed Size (px)
Citation preview
8/6/2019 mf final_2
1/18
8/6/2019 mf final_2
2/18
INTRODUCTION TYPES OF MUTUAL FUNDS
BENEFITS OF INVESTMENTS IN MUTUALFUNDS
INDIAN MUTUAL FUNDS WITHRESPECTIVE SCHEMES
LINK TO MUTUAL FUNDS WEBSITES
SEBI MUTUAL FUNDS REGULATIONS
UNIT TRUST OF INDIA
8/6/2019 mf final_2
3/18
WHAT IS A MUTUAL FUND?
SEBI Mutual Fund Regulation act, 1996, defines
a Mutual Fund as a fund established in the formof a trust by a sponsor to raise money by the
Trustees through the sale of units to the public
under one or more schemes for investing in
securities in accordance with these regulations.
8/6/2019 mf final_2
4/18
PRE-REQUISITES OF FLOATING A
MUTUAL FUNDS
The sponsor should have a sound track record
and good reputation.
The sponsor should be persisting in the
financial services business for at least 5 years.
The net worth of the sponsor must be equal
to/ more than 5000 crores.
The sponsors must contribute at least 40% of
the net worth of the Assets Management
Company.
8/6/2019 mf final_2
5/18
PROCEDURE OF FLOATING A
MUTUAL FUND
A draft offer document is to be prepared at the time of launching the
fund it pre specifies the investment objectives of the fund, the riskassociated, the costs involved in the process and the broad rules for
entry into and exit from the fund and other areas of operation.
SEBI looks at track records of the sponsor and its financial strength
in granting approval to the fund for commencing operations.
A sponsor then hires an asset management company to invest thefunds according to the investment objective.
8/6/2019 mf final_2
6/18
Investments from public are received and they are issued a specific
number of units of the mutual fund on the basis of their proportional
investment.
The pool of investment thus collected is given to the asset
management company
The fund managerinvests the sum in a number of companies across a
broad cross-section of industries and sectors.
The income earned through these investments and the capitalappreciation realized by the scheme are shared by its unit holders in
proportion to the number of units owned by them (pro rata
8/6/2019 mf final_2
7/18
Fund Managers
Fund managers are responsible for implementing a
consistent investment strategy that reflects the
goals and objectives of the fund. Normally, fund
managers monitor market and economic trendsand analyze securities in order to make informed
investment decisions to ensure that the
investments being made are fruitful and
would lend solidarity to the commonobjectives.
8/6/2019 mf final_2
8/18
Asset Management company
An asset management company is the cardinalelement of a mutual fund as it undertakes theinception of various schemes and their
subsequent management while maintainingharmony with the funds pre stated objectivesthat are aimed at bringing opulence for the unitholders along with security.
8/6/2019 mf final_2
9/18
Net Asset Value
Net Asset Value is the total asset value (netof expenses) per unit of the fund and is
calculated by the AMC at the end of everybusiness day. NAV on a particular date
reflects the realizable value that the
investor will get foe each unit that he has
as holding if the scheme is liquidated onthat date.
8/6/2019 mf final_2
10/18
NAV per Unit= Mkt./fair value of securities
+ receivables + other assets+ unamortised issue expenses
- accrued expenses payables
- other liabilities
____________________________________
No. of units outstanding of a scheme
8/6/2019 mf final_2
11/18
STRUCTURE BASED OBJECTIVE BASED OTHER FUNDS
TYPES OF MUTUAL FUNDS
TYPES OF MUTUAL FUNDS
8/6/2019 mf final_2
12/18
MUTU L FUNDS SCHEME BY
STRUCTURE
Open-Ended Funds
it is open for subscriptionall through the year
Close-Ended FundsIt is open during a limited period
Interval FundsIt combines both features of open-ended and close-ended
8/6/2019 mf final_2
13/18
Mutual Fund Scheme by Objectives
Growth unds
alanced unds oney arket unds
Income unds
8/6/2019 mf final_2
14/18
Other Funds
Tax Saving Scheme
Sectorial schemes
Index Schemes Loan Funds
No-Loan Funds
8/6/2019 mf final_2
15/18
Money Market Mutual Funds
In 1992, RBI introduced a scheme of MMMF as
to provide additional short term securities toinvestors and to bring money instruments within
their reach.
8/6/2019 mf final_2
16/18
Benefits of Investments in
Mutual funds Professional Management :
Mutual Funds employ the service of experiencedand skilled professionals and dedicated
investment research team.The whole teamanalyses the performance and balance sheet ofcompanies and select them to achieve theobjective of the scheme.
Potential Return:-Mutual Funds have the potential to provide ahigher return to an investor than any otheroption over reasonable period of time.
8/6/2019 mf final_2
17/18
Diversification:-Mutual Funds invest in anumber of companies across a wide cross section
of industries and sectors.
Liquidity ;- The investor can get the moneypromptly at the net asset value related pricesfrom the Mutual funds open-ended schemes.
Low Cost :-Investments in Mutual Funds is aless expensive way in comparison to a directinvestment in market.
T
ransparency:-Mutual Funds have todisclose their holdings, investment pattern andthe necessary information before all investorsunder a regular framework
8/6/2019 mf final_2
18/18
Flexibility :-Investment in Mutual Funds offer
a lot of flexibility with features of schemes suchas regular investment plan, regular withdrawalplans and dividend reinvestment plans enablingsystematic investment withdrawal of funds.
Affordability:- Small investors with lowinvestments fund are unable to high-grade orblue chip stocks. An investor through mutualfunds can be benefited from a portfolio includingof high priced stock.
Well Regulated:- All Mutual Funds areregistered with SEBI, and SEBI acts a watchdog,so the Mutual Funds are well regulated.