mutual fund final group 1
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PRESENTED BY:
KUNAL GALA (PG12044)NISHANT SHAH (PG12053)ANKUR RAMBHIA (PG12033)1
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TYPES OF INVESTMENTPRODUCT RETURN SAFETY LIQUIDITY TAX
BENEFI
T
CONVINIENC
E
BANK DEPOSIT LOW HIGH HIGH NO HIGH
EQUITY HIGH LOW HIGH ORLOW
NO MODERATE
DEBT MODERATE MODERATE
LOW NO LOW
PPF MODERATE HIGH LOW YES MODERATE
LIFE INSURANCE MODERATE HIGH LOW YES MODERATE
NSC MODERATE HIGH LOW YES MODERATE
MUTUAL FUNDS
(OPEN ENDED)
MODERATE MODERATE
HIGH NO HIGH
MUTUAL FUNDS
(CLOSE ENDED)
MODERATE MODERAT
E
HIGH YES HIGH
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A
B
C
MUTUALFUND
STOCKS
DERIVATIVES
BONDS/
DEBT
FUNDMANAGER
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DEFINITION
Definition:-
According to SEBI (mutual funds) Regulations Act 1993defines mutual fund as, a fund established in the form ofa trust by a sponsor to raise monies by the trusteesthrough the sale of units to the public under one or moreschemes for investing in securities.
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HISTORY Unit Trust of India was the first mutual fund set up
in India in the year 1963.
First phase (1964-87)
Second phase - (1987- 1993)
Third phase (1993-2003)
Fourth phase since Feb 2003
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Growth in AUM
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FEATURES OF MF
Funds are purchased from the fund itself or through abroker.
Funds per share (NAV) plus and shareholder feesimposed at the time of purchase
Mutual fund shares are Redeemable.
Investors money is managed by a separate entity.
Since the unit held by investor evidences the ownership,
the NAV determines the value of the investor9
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Private sector - Indian Cholamandalam Asset Management Co.Ltd
JM Financial Mutual fund
Kotak Mahindra asset management company
Reliance capital Asset management Ltd
Sundaram Asset management Co.Ltd
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Indian Joint Ventures Birla Sun life Asset management company
DSP Merill Lynch Fund Managers company
HDFC Asset management company
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Ventures
ABN AMRO Asset Management (I) Ltd.
Deutsche Asset Management (India) Pvt. Ltd.
Fidelity Fund Management Private Limited.
Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.
HSBC Asset Management (India) Private Ltd.
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PROFESSIONALMANAGEMENT
MINIMUMINVESTMENT
DIVERSIFICATION
CONVINIENTADMINISTRATION
TRANSPARENCY
LIQUIDITY
LOW COSTS
RETURNPOTENTIAL
FLEXIBILITY
CHOICE OFSCHEMES
TAX BENEFITS
WELLREGULATED
ADVANTAGES
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DISADVANTAGES
Subject to market fluctuation
No fixed return
No control
No Guarantees
Management Risk
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Organisation of a Mutual Fund
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SPONSOR (TIER 1) Akin to the promoter of the company
Contributes atleast 40% of the net worth of the AMC.
Posses sound financial record over five years period
Establishes the fund
Gets the fund registered with SEBI
Forms a trust and appoints a board of trustee
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TRUSTEES (TIER 2) Holds assets on behalf of unit holders in trust
Trustees are caretaker of unit holders money.
Two third of the trustees shall be independentpersons (not associated with the sponsor).
Trustees ensure that the system, processes &personnel are in place
Resolves Unitholders Grievances
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AMC (TIER 3) Floats schemes and manages according to SEBI.
Chairman of AMC cannot be a trustee of any MF.
Cannot undertake any other business activityother than PMS
Atleast 50% of independent directors
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CUSTODIANS Holds the funds securities in safekeeping
Settles securities transaction for the fund
Collects interest & dividends paid on securities
Records information on corporate actions
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REGISTRAR AND TRANSFERAGENTS (RTAs)
Maintains records of unit holders accounts andtransactions
Disburses & receives funds from unitholdertransactions
Prepares and distributes a/c settlements
Tax information, handles unit holdercommunication
Provides unit holder transaction services20
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INDIA(AMFI)
Incorporated on 22 Aug, 1995
Modeled on the lines of SRO
Professional and healthy market
Protects and promotes the interest of investors
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Objectives of AMFI
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SEBI GUIDELINES Formation of trust.
Set up of board of trustees
Minimum net worth of the AMC should be 5 crs
AMC and trustees 2 separate entities
Approval of SEBI
Registration of MF schemes
90% minimum distribution of profits
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PROCEDURE FORREGISTERING
Submit an application form
Satisfying the conditions:
Being in the financial services
Positive net worth
Having net profit
Executing the trust deed
Setting up a trustee
Payment of registration fees
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Investors Rights and Obligations Mutual,beneficial and proportional owners
Receive dividend within 30 days of declaration
In case of redemption, 10 working days. If the
AMC fails, an interest of 15% is paid.
In case of failure to claim the redemption
proceeds, then NAV is applicable
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Investors Rights and Obligations
Right to receive audited annual reports and otherrelevant information
Right to wound up a scheme if unitholders representing75% of schemes assets pass a resolution
Right to be informed about the fundamental attributes
of a scheme
Can approach Investor relations officer for grievance
redressal26
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Key Terminologies
AUM
Portfolio turnover
Expense ratio
Sales/redemption price
Assured return
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NEW FUND OFFER (NFO)
NFO mutual fund is a fund which has come out forsubscription for the first time.
A security offering in which investors may purchaseunits of a closed-end mutual fund.
A new fund offer occurs when a mutual fund islaunched, allowing the firm to raise capital forpurchasing securities.
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OFFER DOCUMENT
Key document that provides essential information about thescheme to help investors make informed decisions aboutwhether to purchase the units being offered.
Investment Objective
Asset Allocation
Risk Factor
Minimum Investment
Past PerformanceData
Initial issue expenses
Entry or Exit loads
Sponsors track record
Performance in the past
Penalties imposed and pendinglitigations29
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NET ASSET VALUE (NAV)
If all the schemes assets are realised and the schemesdues other than to unit holders are paid out, what remainsis the net assets of the scheme.
The amount divided by the number of units is the NetAsset Value (NAV) per unit.
Market value of the funds investments +
Receivables + Accrued Income (Liabilities + Accrued expenses)
================================
====Number of units outstanding
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HOW IT IS CALCULATED..??
LIABILITIES RS
CRS
ASSETS RS
CRS
UNIT CAPITAL 300 SHARES 345
RESERVES AND SURPLUS 85.7 DEBENTURES 23
MONEY MARKET INSTRUMENTS 12
ACCRUED EXPENDITURE 1.5 ACCRUED INCOME 2.3
OTHER CURRENT LIABILITIES 0.5 OTHER CURRENT ASSETS 1.2
DEFERRED REVENUEEXPENDITURE
4.2
387.7 387.7
UNITS ISSUED (Cr.) 30
FACE VALUE (RS.) 10
NET ASSETS (RS.) 385.7
NAV (RS.) 12.8631
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SCHEMES
WHICH OPTION IS
BETTER???
DIVERSIFIED EQUITY SCHEMES
X PERSON INVESTMENT(A)
9000 9000
CURRENT NAV (B) 15 90
TOTAL NO. OF UNITS (A/B) 600 100
MARKETS GO UP BY 10%
NAV GOES UP BY 10% (C) 16.50 99
TOTAL NO. OF UNITS (D) 600 100
INVESTMENT (C/D) 9900 9900
BOTH ARESAME
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IMPORTANCE OF NAV
NAV is the price per unit of a mutual fund.
Calculated on a daily basis after market hours andweekly basis in case of close ended schemes
Performance of a fund can be tracked by rise and fall in
its NAV.
Cost of a scheme in terms of its NAV has nothing to
do with returns.
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Can the scheme be changed? Unless written communication
Advertisement in a English daily newspaper
Have the right to exit the scheme
Similar procedure in case of change in sponsor
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INVESTMENT FROM A NUMBER OF
SCHEMES?
Offer document
Past track record of the performance of scheme
Compare the performance with other schemes
In case of debt, ratings need to be given special attention
Similarly in case of equity, quality of portfoly should beseen
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EXPENSES
TRANSACTIONFEES
PERIODIC FEES
LOADSOTHER OPERATING
EXPENSES
EXPENSES
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Various Expenses
Transaction
Fees
Purchase Fees
Redemption Fees
Exchange Fees
Periodic fees
Management fees
Account fees
Other
operating
expenses
Transaction costs
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LOADS
LOAD
NO LOAD
Load is fee payable by the investor when they
enter/exit an MF scheme
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CONTINGENT DEFERRED SALESCHARGE (CDSC)
EXIT TIME CDSC
EXIT WITHIN FIRST 3 YEARS 3%
EXIT WITHIN FIRST 3 TO 5 YEARS 2%
EXIT AFTER 5 YEARS NILMODIFIED
FORM OF EXIT
LOAD
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WHAT IS PMS AND HOW IT IS
DIFFERENT
Offered to HNIS
Minimum investment limit Rs 5 lakh presently
Investors share a part of the gains on the PMS portfoliohowever the losses are entirely borne by the investor
Separate portfolio/separate KYC
Responsibility to pretect the investment lies with theinvestor unlike mutual funds.
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COMPARISON
HEDGE
FUNDS
PRIVAT
E
EQUITY
FUNDS
VENTUR
E
CAPITA
LFUNDS
MUTUA
L
FUNDS
Investment Tradablesecurities
Privatecompanies
Start ups Stocks,bonds,
derivatives
etc
Risk Very high medium High Low
Availability Only to HNIS Everyone Everyone Everyone
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Mutual funds are not permitted to borrow to invest.
Mutual funds therefore not permitted to indulge in short-
selling transactions.
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INVESTMENT BY MF
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INVESTMENT BY MFSCHEMES EQUITY
DEBT
DERIVATIVES
GOLD
REAL ESTATE
INTERNATIONAL INVESTMENTS
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EQUITY
A Scheme cannot invest more than 10% of its assetsin a single companys shares.
Sector funds can have a higher investment in asingle company
Index funds as per the index they track.
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Investment
Unlisted
Open endedschemes
5% of NetAssets
Closeended
schemes
10% of NetAssets
Listed
Open andclose ended
schemes
10% of NetAssets
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DEBT
Can invest in debt securities but cannot give loans.
Restricted to 15% of its Net Assets and the limit mayextend to 20% if prior approval of the boards of the AMCand the trustees is taken.
In Unrated paper, a lower limit of 10% and overall cap of25% of net assets of the scheme.
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DERIVATIVES
Permitted to invest in financial derivatives.
Can enter into forward rate agreements andinterest rate swaps
Can also invest in derivatives traded onexchanges abroad
However gross exposure through debt, equityand derivatives cannot exceed 100% of thenet assets of the scheme.
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GOLD
Primarily invest in gold and gold- relatedinstruments.
Invest in short term deposits
If it is not in the form of standard bars, it should beassayed and converted into standard bars
Maintains liquidity48
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Real estate
Permitted to invest in direct real estate assets and realestate securities.
Population over a million.
Construction should be completed and the asset shouldbe usable.
Real estate asset should have valid title deeds.49
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SEBI LIMITS
At least 75% of the Net Assets should be invested indirect real estate, mortgage backed securities andequity shares or debentures.
At least 35% has to be invested in direct real estate.
No real estate mutual fund scheme can invest morethan 15% of its net assets in equity shares or
debentures of any unlisted company.
Not permitted to engage in lending or housing financeactivity.
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VALUATION OF
INVESTMENTS BY
MUTUAL FUNDSCHEMES51
VALUATION OF INVESTMENTS BY
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VALUATION OF INVESTMENTS BY
MF SCHEMES
EQUITY
DEBT
GOLD REALESTATE
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EQUITY
Securities are valued at thelast quoted closing price onthe stock exchange.TRADED
Trades less than Rs. 5 lakh in
value and 50,000 shares involume.
Valued as per appropriatevaluation methods
NONTRADED
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DEBT
Valued at weighted average price.
If not traded on a particular day,then on Amortization basis.
RESIDUALMATURITY
OF UPTO 91DAYS
Valued at weighted average price.
If not traded on a particular day,then on YTM basis.
RESIDUALMATURITY
OF OVER 91DAYS
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REAL ESTATE
Cost price on the date of theiracquisition
Cost includes purchase price and any otherdirectly attributable expenditure.
Fair price on every 90th from the day of
their purchase Fair value means the amount for which an asset
can be exchanged between knowledgeable.
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Types of Mutual Funds
Equity funds Money market mutual funds
Debt funds
Hybrid funds
Gilt funds
Other funds
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Equity funds
Diversified Equity Fund: These funds aim todiversify the investments across companies andacross sectors.
Small and Mid-Cap Funds: These funds areaggressive in their investment nature with an aim togenerate long term appreciation from a portfolio thatis substantially constituted of equity and equity relatedsecurities, which are not part of top 100 stocks.
Sector Specific Funds: These invest into sectors
which are mentioned in their objective or offerdocuments, such as banking, FMCG, etc.
Tax Saving Funds (ELSS): It offers tax rebates toinvestor u/s 80C of I. T. Act.
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Liquid funds
Also known as Money Market Schemes
These funds provide easy liquidity and preservation ofcapital.
These schemes invest in short-term instruments likeTreasury Bills, inter-bank call money market, CPs andCDs.
These funds are meant for short-term cashmanagement of corporate houses and are meant foran investment horizon of 1 day to 3 months.
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Debt Funds
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Debt Funds
Gilt Funds: Invest their corpus in securities issued by government.
These funds carry zero default risk but are associated with InterestRate Risk.
Income Funds: Invest a major portion into various debt instruments
such as bonds, corporate debentures and government securities.
Monthly Income Plan (MIPs): MIPS invests maximum of their totalcorpus in debt instruments while they take minimum exposure in
equities. It gets benefit of both equity and debt market.
Short Term Plans (STPs): These investments are meant for ahorizon of three to six months. These funds primarily invest in short
term papers like Certificate of Deposits (CDs) and Commercial61
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FIXED MATURITY PLANS (FMPs):
Fixed Maturity plans commonly known as FMPs havepredetermined fixed maturity date before which investors cannotwithdraw their investments.
BALANCED/HYBRID FUNDS:
As the name suggest, they are a mix of both equity and debtfunds. They invest in both equities and fixed income securities,which are in line with pre-defined investment objective of thescheme. These schemes aim to provide investors with the bestof both the worlds. Equity part provides growth and the debt partprovides stability in returns.
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Systematic Investment Plan
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Systematic Investment Plan
(SIP)
An SIP is a method of investing a fixed sum,on a regular basis, in a mutual fund scheme. Itis similar to regular saving schemes like arecurring deposit. An SIP allows one to buy
units on a given date each month or quarter,so that one can implement a saving plan forthemselves.
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Systematic Withdrawal Plan
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Systematic Withdrawal Plan
(SWP)
SWP is a smart way to plan for your futureneeds by withdrawing amounts systematicallyfrom your existing portfolio either to reinvest inanother portfolio or to meet your expenses.
Your savings no longer remain idle. Yourmoney can earn better returns if reinvested,instead of lying idle in a savings account formeeting your regular payments.
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Systematic Transfer Plan (STP)
A plan that allows the investor to give a mandateto the fund to periodically and systematicallytransfer a certain amount from one scheme toanother.
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Example How does a Systematic Transfer Plan work
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Example How does a Systematic Transfer Plan work
This is best understood using an example. Say you want totransfer2,000 from an equity MF scheme to a debt MF schemeevery month.
Month 1
Equity MF units before transfer: 1,000Debt MF units before transfer: 0
Equity MF unit NAV:20Debt MF unit NAV:15
Equity MF units needed (redeemed from your account) =2,000 /20= 100
Debt MF units allotted =2,000 /15 = 133.33Equity MF units after transfer = 1000100 = 900
Debt MF units after transfer= 0 + 133.33 = 133.33
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Month 2
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Month 2
Equity MF units before transfer: 900Debt MF units before transfer: 133.33
Equity MF unit NAV:22Debt MF unit NAV:16
Equity MF units needed ( redeemed from your account)=2,000 /22 = 90.91Debt MF units allotted =2,000 /16 = 125
Equity MF units after transfer = 90090.91 = 809.09Debt MF units after transfer = 133.33 + 125 = 258.33
And so on
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Absolute return and Annualized
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Absolute return and Annualizedreturn
Example :1) If you invest Rs. 100 ; after 1 year returns is20% so end of the year it becomes Rs. 100 + 20=Rs. 120.
2) Now second year also you make a profit of20% so your money is Rs. 120 + 24 = Rs. 144
3) After 2 years your money of Rs. 100 is now Rs.144 so your
Absolute returns for 2 years is 44% whereasAnnualized returns is 20% year on year.
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Quantitative Evaluation of Mutual
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Quantitative Evaluation of Mutual
Fund Schemes
Returns XIRR
Dividend Re-investment (CAGR)
Compounding ofPeriodic Returns
Risk Standard Deviation
Beta
Weighted AverageMaturity
Modified Duration
Risk Adjusted Returns Sharpe Ratio
Sortino Ratio Treynor Ratio
Jensens Alpha
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Calculation of Return using XIRR
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Calculation of Return using XIRR
Function
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Axis equity fund offer document
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Dividend Re investment (CAGR)
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Dividend Re-investment (CAGR)
The compounded annual growth rate(CAGR) can be calculated as follows:CAGR = 100 X {(I2 I1) (1r)}-1i.e. 100 X {(19,127 14,000)(365382} - 1i.e. 34.74%
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Compounding of Periodic
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p gReturns
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Standard Deviation
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Standard Deviation Beta compares a fund's returns with a benchmark,
standard deviation measures how far a fund's recentnumbers stray from its long-term average.
Fund X has a 10% average rate of return and a standarddeviation of 5%, most of the time, its return will range from
5% to 15%.
Large standard deviation supposedly shows a more riskyfund than a smaller one
Higher the deviation, higher the risk & vice versa.
It is calculated by taking the square root of variance.78
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Standard Deviation
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BETA
compares a mutual fund's volatility with that of abenchmark
A statistical measure which shows how sensitive thefund is to the market volatility
Calculation of Beta: Y = a + X
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Weighted Average MaturityFixed rate debt instruments have a price risk. When interest rates in the
market go up, the debt instruments already issued, based on theerstwhile lower interest rates, lose value. Similarly, when interest rates inthe market go down fixed rate debt instruments gain value.
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Modified Duration
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Modified Duration
The implication is that if the yields in the marketwere to change by 1%, this debt security is likely tochange in value by 1.68%.
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Sharpe Ratio
It quantifies how a fund performs relative to the risk ittakes
Sharpe index measures risk premium of a portfolio,relative to the total amount for risk in the portfolio
Sharpe Index =
(Rp) (Rt)
Standard Deviations of the Portfolio Return
Portfolio Average Return (Rp)
Risk Free Rate of Interest (Rt)
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S(market) = (.10-.05)/.18 = .278
S(manager X) = (.14-.05)/.11 = .818
S(manager Y) = (.17-.05)/.20 = .600
S(manager Z) = (.19-.05)/.27 = .519
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Treynor ratio
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y
(Portfolio Return Risk-Free Rate) / Beta
The numerator identifies the risk premium and thedenominator corresponds with the risk of the portfolio.
The resulting value represents the portfolio's return perunit risk
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Now, you can compute the Treynor value foreach:
T(market) = (.10-.05)/1 = .05
T(manager A) = (.10-.05)/0.90 = .056
T(manager B) = (.14-.05)/1.03 = .087
T(manager C) = (.15-.05)/1.20 = .083
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Jensens Alpha
Alpha is the risk-adjusted return on an investmentAlpha demonstrates whether your investment
outperformed or underperformed a risk-relatedbenchmark
The formula for alpha is expressed as follows:a = Rp [Rf + (Rm Rf) ]
Where:
Rp = Realized return of portfolio Rm = Market return
Rf = risk-free rate
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First, we calculate the portfolio's expected return:
ER(D)= .05 + 0.90 (.10-.05) = .0950 or 9.5% return
ER(E)= .05 + 1.10 (.10-.05) = .1050 or 10.50% return
ER(F)= .05 + 1.20 (.10-.05) = .1100 or 11% return
Then, we calculate the portfolio's alpha by subtracting theexpected return of the portfolio from the actual return:
Alpha D = 11%- 9.5% = 1.5%
Alpha E = 15%- 10.5% = 4.5%
Alpha F = 15%- 11% = 4.0%
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Axis Equity BNP Paribas HDFC Index
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q y
Fund Equity - GrowthHDFC Index
Fund
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CRISIL Mutual Fund Ranking
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Methodology
Superior Return Score The superior return score (SRS) is the relative measure
of the schemes returns and risks (volatility) compared
to their peer group.
Mean Return and Volatility
Downside Risk Probability (DRP)
DRP measures the probability of the investment earninglower returns compared to short tenor risk freesecurities.
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Portfolio Concentration Analysis
Liquidity Analysis
Asset Quality
Modified Duration /Average Maturity
Asset Size
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Non Resident Investment in Indian MF
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Schemes
Non Resident investment comprises ofinvestment by
1. NRI Investments
2. Foreign Institutional Investors
3. Qualified Foreign Investors
Portfolio investment route for NR investmentsliberalised for KYC norms.
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Investment by NRIs
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Investment by NRIs
Meaning of NRI
Provisions regarding Investment by NRIs- Repatriable basis
- Non - repatriable basis
Guidelines for investing in mutual funds by an NRI
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Investment by Foreign Institutional
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Investors
Meaning of FI investment
Who all are permitted to register as FIIs ??
Broad based funds w.r.t. to certain FII
participants
Guidelines for FII registration
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Investment by Qualified Foreign
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Investors Meaning of QFIs
is not resident in India;
is not registered with SEBI as a Foreign Institutional Investor
or as a Sub-account.
Resident of the country complaint with
- FATF standards
- Signatory to IOSCOs Multilateral Memorandum ofUnderstanding (MMoU)
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Investment ceiling applicable for QFIs in:1. Equity schemes upto 10 million USD
2. Debt schemes upto 3 million USD
Investment Route for QFIs 1. Direct Route (Demat) --- 3 parties involved namely QFI,
Qualified DP & MF
2. Indirect Route (UCR Unit Confirmation Receipt) --- 4 parties
involved namely QFI, Custodian Bank, MF & UCR
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Investment by Indians in
l h
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International MF Schemes
International fund different from global fund.
Helps in diversificationof portfolio
Investment routed throughthe fund of funds (FOF) route
- a mutual fund that invests in other funds is afund of funds is known as fund of funds
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Investment by Indians in
I t ti l MF S h
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International MF Schemes
Structure of fund of fund (FOF) route
1. Feeder Fund - receives money in India inIndian rupees.
2. Master Fund acts as target abroad for thefeeder fund to invest in.
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List of some of the InternationalF d
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Funds
Franklin Asia Equity Fund (Growth)
Kotak Global Emerging Market (Growth)
L & T Indo Asia Fund (Growth)
ICICI Pru Indo Asia Equity RP (Growth)
L & T Global Real Assets (Growth)
Birla SL International Equity A (Growth)
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Points to consider w.r.tI t ti l I t t
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International Investments
Need to understand the international financialmarket
Need to understand regulations regardingpermissible investment
Need to understand regulations regardingtaxation
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Need to understand regulations regardingrepatriation
Foreign currency risk
Transaction costs
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MUTUAL FUND TAXATION
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MUTUAL FUND TAXATION107
Securities Transaction Tax(STT)
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(STT)
STT introduced w.e.f. 1st Oct., 2004
Applicable to equity oriented funds only
Taxable transactions under STT
Service Tax, Surcharge & Education Cess notapplicable
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Securities Transaction Tax(STT)
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(STT)
On schemes purchase of equity
shares in the stock exchange
0.10 %
On schemes sale of equity shares in
stock exchange0.10 %
On schemes sale of futures & options in
stock exchange0.017%
STT on equity-oriented schemes of mutualfunds
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Capital Gains Tax
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Capital Gains Tax
1. Equity oriented schemes ---
a. Long Term capital Gains - NIL
b. Short Term Capital Gains 15% + Surcharge + EducationCess
2. Other Schemes ---
a. Long term capital Gains 10% + Surcharge+ EducationCess
b. Short term capital gains Nil / 10% / 20% / 30% depending
on tax slab
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TDS / Withholding Tax
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S / o d g a
No TDS on dividend or re purchase amountfor resident investors
Withholding tax rates for NRIs or foreigncompanies are
1. Interest 20%
2. Dividends 10%
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Dividend Stripping / DoubleI d ti B fit
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Indexation Benefit
Dividend Stripping
Tax avoidance strategy
Dividend stripping is the purchase of sharesjust before a dividend is paid, and the sale ofthose shares after that payment
Double Indexation Benefit
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MUTUAL FUND TAXATION -FMP
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FMP
Benefits of FMP w.r.t. taxation
1. Often preferred by HNIs
2. Indexation a key reason as it ensures betterpost tax returns as compared to Bank FD
3. Double Indexation benefit
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FMP V/S FIXED DEPOSIT
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FMP v/s FD taking into consideration
Dividend option
Growth option
- With Indexation- Without indexation
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Future of Mutual Fund Industry
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Diverse range of products
Stringent regulations for MF Distributors
Eligibility norms of AMC should be revised
Trading through stock exchange platforms
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Future of Mutual Fund Industry
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y
Growth of Real Estate Mutual Funds
Expansion of MF network in Tier II cities &rural areas due to increased level ofawareness
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Projected Growth by 2015
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j y
2009 20122015 (P)
2009 20122015 (P)
SOURCE - KPMG
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Indian v/s US Mutual FundIndustry
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Industry
PARTICULARS INDIAN MUTUAL FUNDINDUSTRY
US MUTUAL FUNDINDUSTRY
ORGANIZATION /STRUCTURE OF MF
ACTS AS A TRUST4 INDEPENDENTENTITIES
EXTERNALLY MANAGED
TOTAL AUM US$110 billion US$11 trillionNO. OF SCHEMES LESS IN COMPARISON HIGHER THAN THE NO.
OF LISTED COMPANIESIN INDIA
TAX SECURITIES
TRANSACTION TAX
DEFAZIO HARKIN
TAXTAX INCENTIVES MODERATE HIGH IN COMPARISON
OPTION OF CHOOSINGFUNDS
NOT ALLOWED ALLOWED
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Latest Updates
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p
Updated till 31st July, 2013
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CONCLUSION
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Mutual Fund Investmentsare Subject to Market
Risk. Please Read theOffer Document carefully
before Investing
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