Mutual Fund

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Group Members:

JIML-11-187
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Overview of mutual fund

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. ClickTheedit Master subtitle style is then invested in to money thus collected capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. 7/19/12

FLOW CYCLE

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RELATION OF RISK AND RETURN

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BY STRUCTURE (prachi)

Open ended Mutual fund are common compared to close ended. The fund house continuously buys and sells units from investors. New units are created and issued if there is demand and old units are eliminated if there is redemption pressure. There is no fixed on which the units would be permanently redeemed or terminated. Top 5 schemes:
DSP Black Rock Small and Mid Cap Fund -

Institutional - Growth

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Closed ended: The units of a close-ended mutual fund are very similar to individual shares. The units of a close ended scheme are issued only at the time of the New Fund Offer (NFO). These units are issued with a fixed tenure or duration, for example, 5 years. New units are not issued on an ongoing basis, and existing units are not eliminated before the term of the fund ends.

Top schemes: (prachi)

Principal Pnb Long Term Equity Fund 3 Year

Series II - Growth
ICICI Prudential Fusion Fund - Growth Principal Pnb Long Term Equity Fund - 3

Year - Series I - Growth

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 Equity Funds: Equity funds aim to provide capital growth by investing in the shares of individual companies. Any dividends received by the fund can be reinvested by the fund manager to provide further growth or paid to investors. Both risk and returns are high but equity funds could be a good investment if you have a longterm perspective and can stay invested for at least five years. Top

By Investment Objective

equity fund:

SBI MAGNUM SECTOR FUNDS

UMBRELLA - PHARMA GROWTH

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 Debt fund or Income fund: The aim of debt or income funds is to provide you with a steady income. These funds generally invest in securities such as bonds, corporate debentures, government securities (gilts) and money market instruments. Top

debt funds:

>SBI MAGNUM INCOME FUND GROWTH >UTI DYNAMIC BOND FUND - GROWTH

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 Balanced

fund: The aim of balanced funds

is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. The investor may wish to balance his risk between various sectors such as asset size, income or growth. Therefore the fund is a balance between various attributes desired, however, NAVs of such funds are likely to be less volatile compared to pure equity funds.

Top 2 balanced fund:(Arpita)

BARODA PIONEER DYNAMIC BOND FUND GROWTH

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 Liquid funds: Liquid funds are a safe place to park your money; it is an appealing alternative to bank deposits because they aim to provide liquidity, capital preservation and slightly higher interest rates than bank accounts. Returns on these funds fluctuate much less compared to other funds as the fund manager invests in 'cash' assets such as treasury bills, certificates of deposit and commercial paper. Top

3 liquid funds:

Escorts Liquid Plan Pramerica Liquid Plan Tata Liquidity Management Plan
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Index Funds-(Bhola) Index funds are passively managed funds i.e. the fund manager attempts to mirror the performance of a benchmark index like the BSE Sensex or the S&P CNX Nifty, by being invested in the same stocks. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index.
Top

Index fund:

Kotak Nifty ETF

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Other Schemes(Abhinav)
>Tax Saving Schemes such as ELSS: it functions just like mutual fund scheme, the only difference being that ELSS comes with a lock-in period. The instrument has a 3 year lock-in period post the investment, after which the investor may liquidate or continue with the investment in the ELSS. >Special Schemes (ETFs)

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Governed by SEBI (Mutual Fund) Regulation 1996 All MFs registered with it, constituted as trusts ( under Indian Trusts Act, 1882) Bank operated MFs supervised by RBI too AMC registered as Companies registered under Companies Act, 1956 SEBI- Very detailed guidelines for disclosures in offer document, offer period, investment guidelines etc. NAV to be declared everyday for open-ended, every week for closed ended Disclose on website, AMFI, newspapers Half-yearly results, annual reports Select Benchmark depending on scheme and compare
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Regulator(Abhimanyu)

Advantages (Abhishek)

Affordability

A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the investment objective of the scheme. An investor can buy in to a portfolio of equities, which would otherwise be extremely expensive. Each unit holder thus gets an exposure to such portfolios with an investment as modest as Rs.5000/-.
Diversification
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Risks Associated with Mutual Funds(Apurv)

Professional Management-

Some funds dont perform in the market, as their management is not dynamic enough to explore the available opportunity in the market.

Costs The biggest source of AMC

income is generally from the entry & exit load which they charge from investors, at the time of purchase. The 7/19/12 mutual fund industries are thus

Conclusion(Anand) Amutual fundbrings together a group of people and invests their money in stocks, bonds, and other securities.
The

advantages of mutual are professional management,diversification,econo mies of scale, simplicity and liquidity.
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Thank You !!

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Portfolio of various scheme

Name of Retur Risk Mini. the scheme n Invest ment DSP Black Rock Beta 5000 Small and Mid Cap Fund - Institutional - .87
Growth

Exit load

Net asset Value

0 16.70 Months to 12 Months ; Exit load is 1%

ICICI Prudential

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