amc &types of mutual funds

8/8/2019 AMC &Types of Mutual Funds

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Presentation

OnAMCand Types of Mutual Fund

Prepare By,Shrenik Shah (03)Aagam Shah (14)


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WHAT IS AMC???

An Asset Management Company (AMC) is aninvestment management firm that invests the pooled

funds of retail investors in securities in line with thestated investment objectives.

T he investment company provides more

diversification, liquidity, and professional managementconsulting service than is normally available toindividual investors.


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T he diversification of portfolio is done by investingin such securities which are inversely correlated toeach other. T hey collect money from investors byway of floating various mutual fund schemes.

Investment management services' includes elementsof financial statement analysis, asset selection (realestate), securities (stocks, bonds and other securities),

plan implementation and ongoing monitoring of

investments.


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Fund ManagerF und manager refers to provides investmentmanagement serv ic es and an individual whod ire c ts fund management decisions.

W hat FM do?

1. Asset allocation2. Long-term returns

3. Diversification4. Risk-adjusted performance measurement (hedging)5. Performance measurement


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KEY PROBL E MS OF RUNNINGSUCH BUSIN E SS E S

revenue is directly linked to market valuations, soa major fall in asset prices causes a precipitousdecline in revenues relative to costs;

above-average fund performance is difficult tosustain, and clients may not be patient during timesof poor performance.

successful fund managers are expensive and may be headhunted by competitors


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Abo ut IndustryT he industry is dominated by the institutionalinvestors.Among those, there are some Indian companies as

well as some foreign/joint venture companies.However, Indian players are outperforming theforeign counterparts in every area, viz. revenues,assets, and profitability.

According to the latest report, asset management business in India is going to increase at least 33%annually


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AU M (Assets under Management)

Total AUM with all AMC is68755953.71 `.

AMC Total AUM

` ( inla c s)

Rel ian c e Mutual Fund 10451123

HDFC Mutual Fund 9017874

ICICI Prudent ial Mutual Fund 6876863

UTI Mutual Fund 6417280

B irla Sun L ife Mutual Fund 6421751

SBI Mutual Fund 3855179

DSP Black

Rock

Mutual Fund 2415346


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By Structure

OpenEnded

CloseEnded

Interval

By InvestmentObjective

Growth

Income

Balance

MoneyMarket

OtherSchemes

TaxSaving

SpecialSchemes

Index

SectorSpecific

Types of MutualFunds


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T ypes of Mutual Fund


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ByStructure

OpenEnded

CloseEnded

Interval

Not have a fixed maturity / Locking Period

Liquidity

Any time Deposit or withdraw money

Fixed Maturity / Locking PeriodWe can t withdraw money before its locking period

over

Good Growth Opportunity

Features of open-ended and close-ended schemes

For some time it work as close ended and then

after it becomes open ended.


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ByInvestmentObjective

Growth

Income

Balance

The aim of growth funds is to provide capitalappreciation

Return is reinvestedInvest Mostly in EquityFor medium or Long term time horizon

T he aim of income fund is capital stability andregular income.

Return is distributed by dividendInvest in fixed income security like bonds,

corporate debenturescapital stability and regular income.

Mixture of Growth scheme and Income Scheme


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MoneyMarket

Provide easy liquidity, preservation of capital and

moderate income

Invest in safer short-term instruments such as

treasury bills, certificates of deposit, commercial

paper

SpecialSchemes

Index

SectorSpecific

B ase on B SE Sensex, NIF TY 50, S & P 500, etc

Invest in index scripts as per their weightage.

NAV rise as index rise

Invest only in the industries specified in the offer

document

E.g. FMCG, Pharmaceuticals, Power, Cement etc


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Other

Schemes

TaxSaving

Tax rebates to the investors

ELSS and Pension scheme are allowed asdeduction u/s 88 of Income Tax act 1961


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amc &types of mutual funds

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