MUTUAL

FUND

12/20/2013

INTRODUCTION

1,44,000 CRORE INDUSTRY TODAY THAT SELLS DREAMS

NO, ITS NOT BOLLYWOOD

ITS DALAL STREET- IN PARTICULAR: THE MUTUAL FUND INDUSTRY- THE FIRST CHOICE OF GENERATION NEXT

12/20/2013

COLLECTIVE POOLED INVESTMENT

YOU I

MONEY TO INVEST WHERE?

SMART PERSONNAME

MANMOHAN

RETURN

12/20/2013

WHAT IS MUTUAL FUND

AMAR

AKBAR

ANTHONY

MUTUALFUND

FUND MANAGER

STOCKS BONDS DERIVATIVES

12/20/2013

FLOW CHART DESCRIBE WORKING OF M.F

12/20/2013

HISTORY OF M.F IN INDIA

PHASE 1

PHASE 2

PHASE 3

PHASE 4

12/20/2013

FIRST PHASE- 1964-1987

UNIT TRUST OF INDIA

1N 1963

SCHEME UNIT 64

NEXT 24 YEARS WAS SOLE PLAYER

12/20/2013

SECOND PHASE – 1987-1993

IN 1987

o OPEN TO PUBLIC SECTOR

o STATE BANK OF INDIA WAS FIRST

o PNB, BOI, LIC FOLLOWS NEXT

12/20/2013

THIRD PHASE -1993-1994

IN 1993

ENTRY OF PRIVATE SECTOR FUNDS

KOTHARI PIONEER (FRANKLIN TEMPLETON) WAS FIRST

12/20/2013

FOURTH PHASE – 1994- TILL NOW

IN 1994

ENTRY OF FOREIGN MUTUAL FUNDS

MORGAN STANLEY WAS FIRST

12/20/2013

WHAT ARE THE ADVANTAGES

PROFESSIONAL MANAGEMENT

DIVERSIFICATION

MONEY AT CALL

DIVIDEND

MINIMUM INVESTMENT

12/20/2013

STATUTORY WARNING

NO GUARANTEE OF RETURN

DIVERSIFICATION

LOAD OF COST

12/20/2013

BASIC TERMINOLOGIES

NET ASSET VALUE

COST INVOLVED

12/20/2013

NAV

• 10 PEOPLE• 1 LACS EACH

• IN 1 YEAR• GROW 10L TO

15 L• MANAGER

FEES 2% OF ASSETS= 30000/-

• NEW BUYER WANTS TO BUY FOR 1 LAC

10 LACS RS

EVERYONE GETS 10000

UNITS

FUND MANAGER INVESTS

AMT. LEFT 14.70L

NO. OF UNITS 10000

NAV P.U 14.7

NO. OF UNITS 100000/14.7=

6802.7211 UNITS

LESSER UNITS

12/20/2013

LOADS

ENTRY LOAD (NOW BANNED)o e.g. 2% ENTRY LOADo FOR 100000 INVESTMENT, ONLY 98000 INVESTED

o EXIT LOAD (TO PREVENT REPEATED EXITS)o MIGHT VANISH AFTER A PERIODo 30 DAYS, 1-2 YEARS

o COMMISSIONS TO DISTRIBUTORS (INTERMEDIARIES)

o FROM MANAGEMENT FEESo OR EXIT LOAD

12/20/2013

AMC CHARGES (FOR MANAGING MONEY)

LIMITED TO 2.5% OF “ASSET UNDER MANAGEMENT”

12/20/2013

THINGS TO WATCH BEFORE INVESTING

12/20/2013

EXPENSE RATIO (< 1%)

LOAD (No Penalty for early withdrawal)

12/20/2013

12/20/2013

CLASSIFICATION

12/20/2013

SCHEMES ACCORDING TO MATURITY PERIOD

AVAILABLE FOR SUBSCRIPTION & REPURCHASE ON A CONTINUOUS BASIS

THESE FUNDS DO NOT HAVE FIXED MATURITY PERIOD

OPEN ENDED SCHEME

12/20/2013

OPEN FOR SUBSCRIPTION ONLY FOR SPECIFIED PERIOD

HAVE STIPULATED MATURITY PERIOD e.g:- 3- 5 YEARS

CLOSE ENDED SCHEME

12/20/2013

SCHEME ACCORDING TO INVESTMENT OBJECTIVE

AIM= PROVIDE CAPITAL APPRECIATION

OVER LONG PERIOD

RISK= HIGH

OPTIONS TO INVESTOR= DIVIDEND/

CAPITAL APPRECIATION OPTION

GROWTH/ EQUITY ORIENTED SCHEME

12/20/2013

EQUITY/GROWTH FUND

12/20/2013

AIM= PROVIDE REGULAR & STEDY INCOME

RISK= LESS

INVEST= IN FIXED INCOME SECURITIES

INCOME/ DEBT ORIENTED FUND

12/20/2013

AIM= PROVIDE BOTH GROWTH & REGULAR INCOME

INVEST= BOTH IN EQUITES & FIXED INCOME SECURITIES

RISK= MODERATE

BALANCED FUND

12/20/2013

AIM= PROVIDING EASY LIQUIDITY, PRESERVATION OF CAPITAL & MODERATE INCOME

INVEST= IN SAFER S.T INVESTMENTS e.g. COMMERCIAL PAPERS, GOVT SECURITIES

GOOD= FOR SHORT PERIODS

MONEY MARKET

12/20/2013

INVEST = EXCLUSIVELY IN GOVT SECURITIES

RISK= ZERO

INVEST= SECURITIES IN SAME WEIGHTAGE COMPRISING OF AN INDEX

RISK= RISE/FALL= DEPEND UPON INDEX

GILT FUNDS

INDEX FUNDS

12/20/2013

VARIOUS M.F e.g. IN INDIA

GROWTH

INCOME

BALANCED

OPEN ENDED

CLOSE ENDE

HDFC GROWTH

TEMPLETON INDIA

PRUDENTIAL INDIA

RELIANCE INCOME

RELIANCE FIXED

12/20/2013

12/20/2013